2004, 2006 & 2009 Bond Financings. Update



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2004, 2006 & 2009 Bond Financings Update

2004 Bond Financing Issued through St. John s County Issued: $31,590,000 of Fixed Rate Bonds at 4.75% to 5.85%. $12,000,000 of Taxable Variable Rate Bonds that was at 1.15% as of March 17, 2009 This portion of the bond issue is backed by a Letter of Credit from Allied Irish Bank through 2013.

2006 Bond Financing Issued through Orange County Issued: $75,460,000 of Variable Rate Bonds The Interest Rate on these bonds is fixed by two Swaps Lehman Brothers is at 3.61% or 70% of LIBOR Bank of America is at 4.78% or 66% of LIBOR LIBOR London Interbank Offered Rate This bond issue is backed by Radian. Radian is an insurer of Bond Financing. The Lehman Brothers Swap is also guaranteed by Radian. We are still working on our options for the Lehman Swap.

History of Variable Interest Rates on our 2006 Bonds 9.00 8.50 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Jan. 2006 September 24, 2008 January 8, 2009

2006 Bonds We have closed on the Letter of Credit from Branch Banking & Trust Company ( BB&T ). A. Fee is 70 basis points (.70%). B. Existing swaps remain in place which means no payments to Lehman Brothers. C. We are required to move our treasury business to BB&T. Should be completed first of April 2009. D. Radian Insurance on Bonds remains in place. E. Closing costs were $325,000.

Northshore 2009 Bonds We have issued variable rate bonds for $15 million for the purchase and renovation of Northshore. To borrow these funds on a tax-exempt basis we must spend the same amount for renovations as the cost of the building (excluding land). Approximately $5.4 million These bonds are backed by a $15 million three year letter of credit from BB&T.

Northshore 2009 Bonds The $15 million of Bonds are: A variable tax-exempt interest rate which is currently at.55%. The Bonds are part of the PRC Obligated Group debt. Letter of Credit fee is 70 basis points (.70%). 30 year term. Does not require Operating and Debt Service Reserve Funds. Closing costs were $247,000.

Questions Discussion

Westminster Senior Services Provides: Pharmacy to: All of our Continuing Care Retirement Communities All of our Skilled Nursing residents Over 55% of our Assisted Living residents Companion Care: To residents of our Continuing Care Retirement Communities in Pinellas County (St. Petersburg)

Westminster Senior Services Current Goals: Pharmacy: To continue to increase the percentage of Assisted Living residents utilizing the Pharmacy In the next few months offer pharmacy services to the Rental Retirement Communities In early 2010 begin offering pharmacy services to the Residential Living residents in our Continuing Care Retirement Communities. Companion Care to: Expand services to provide Home Health to our residents and the residents of the communities surrounding our campuses in Pinellas County.

Operating Performance For the 11 Months Ended February 28, 2009 40,000 20,000 0-20,000-40,000 Pharmacy Companion Care -60,000-80,000-100,000 April May June July Aug Sept Oct Nov Dec Jan Feb

Operating Performance Number of Prescriptions 12,500 12,000 11,500 11,000 10,500 10,000 9,500 9,000 Sept Oct Nov Dec Jan Feb

Operating Performance Number of Residents Served 950 900 Pharmacy 850 800 750 700 Sept Oct Nov Dec Jan Feb

Operating Performance Number of Hours of Service 5,500 5,250 5,000 Companion Care 4,750 4,500 4,250 4,000 3,750 3,500 3,250 3,000 2,750 2,500 2,250 2,000 April May June July Aug Sept Oct Nov Dec Jan

Questions Discussion

Westminster Retirement Communities Foundation Statement of Activities For the Ten Months Ended January 31, 2009 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Gifts Received Unrestricted Restricted Endowment Actual Prior Year

Westminster Retirement Communities Foundation Statement of Activities Five + Year History $4,000,000 $3,500,000 Gifts Received $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2004 2005 2006 2007 2008 2009

Westminster Retirement Communities Foundation Statement of Activities For the Ten Months Ended January 31, 2009 $5,000,000 $3,000,000 $1,000,000 -$1,000,000 -$3,000,000 -$5,000,000 -$7,000,000 -$9,000,000 -$11,000,000 Investment Income Actual Prior Year

Westminster Retirement Communities Foundation Statement of Activities For the Ten Months Ended January 31, 2009 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Grant Expenditures Unrestricted Restricted Actual Prior Year

Westminster Retirement Communities Foundation Statement of Activities For the Ten Months Ended January 31, 2009 $800,000 $600,000 Actual Prior Year $400,000 $200,000 Benevolent Assistance Grant Expenditures

Questions Discussion

Westminster Retirement Communities Foundation Status of Reserves February 26, 2009 Investment Committee Meeting: Special Meeting to reaffirm the Committee s decisions at the January 2009 meeting. Reaffirmed: Goal of no more than 65% of Equities in Portfolio Goal of no more than 45% of Fixed in Portfolio Goal of no more than 5% of Cash in Portfolio

Westminster Retirement Communities Foundation Status of Reserves February 26, 2009 Investment Committee Meeting: Reaffirmed: To terminate three underperforming investment managers. This will be done when the CEO and CFO determine the best timing for this change as it will impact one of our bond ratios. One of our bond ratios is impacted by Realized Gains and Losses.

Westminster Retirement Communities Foundation Status of Reserves Current Investment Mix 18% 34% 48% Equities Fixed Cash

Westminster Retirement Communities Foundation Status of Reserves February 26, 2009 Investment Committee Meeting: Reaffirmed: Not to rebalance the investment portfolio at the present time from the current mix to the recommended mix to protect capital during these turbulent investment markets. Update The Committee did do a partial rebalancing of the portfolio on 3/19/09. The portfolio is now a 39/43/18 mix

Westminster Retirement Communities Foundation Status of Reserves New Mix 18% 39% Investment Mix Previous Mix 18% 34% 43% 48% Equities Fixed Cash Equities Fixed Cash

Westminster Retirement Communities Foundation Status of Reserves Investment Returns Jan - Feb 2009 Return Jan - Feb 2009 Index % of Portfolio Total Fund (3.24) (8.08) 100% Total Equity (11.29) (15.05) 34% Total Domestic Equity Total International Equity (12.01) (15.52) 23% (9.77) (14.15) 11% Total Fixed Income 3.41 2.88 48% Cash, Money Markets, US Gov t 2.10 1.9% 18%

Westminster Retirement Communities Foundation Status of Reserves As of February 28, 2009 $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Board Designated Statutory Bond Gift 2/28/2009 1/31/2009 11/30/2008 9/30/2008 3/31/2008

Westminster Retirement Communities Foundation Status of Reserves $140,000,000 $130,000,000 $120,000,000 $110,000,000 $100,000,000 $90,000,000 2/28/2009 1/31/2009 11/30/2008 10/31/2008 9/30/2008 3/31/2008 $80,000,000 Total Reserves

$50,000,000 $45,000,000 Continuing Care Retirement Communities Statement of Revenue and Expenses For the Ten Months Ended January 31, 2009 Revenue $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 Actual Budget Prior Yr $15,000,000 $10,000,000 Residential Skilled Nursing Assisted Living

280 260 240 220 200 180 160 140 120 100 80 60 40 20 0 Continuing Care Retirement Communities Number of Vacant Units From March 30, 2007 through March 14, 2009 Skilled Nursing Assisted Living Residential

Continuing Care Retirement Communities Statement of Revenue and Expenses For the Ten Months Ended January 31, 2009 $96,000,000 $94,000,000 $92,000,000 $90,000,000 $88,000,000 $86,000,000 $84,000,000 Actual Budget Prior Yr $82,000,000 $80,000,000 Total Revenues Total Expenses

Continuing Care Retirement Communities Statement of Revenue and Expenses For the Ten Months Ended January 31, 2009 6.00% 5.00% 4.00% 3.00% 2.00% Actual Budget Prior Yr 1.00% 0.00% Net Operating Revenue

Continuing Care Retirement Communities Statement of Revenue and Expenses For the Ten Months Ended January 31, 2009 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 Entrance Fees Received versus Financed Received Financed Prior Year Received Prior Year Financed

Continuing Care Retirement Communities Statement of Revenue and Expenses Financed Entrance Fees Notes Receivable at 3/31/08 $5,966,873 New Notes Receivable 9,818,524 Notes Paid (10,236,160) Notes Receivable at 2/28/09 $5,549,237

Continuing Care Retirement Communities Statement of Revenue and Expenses For the Ten Months Ended January 31, 2009 $40,000,000 $35,000,000 $30,000,000 $25,000,000 Actual Budget Prior Yr $20,000,000 Capital Expenditures Includes January 2009 Northshore purchase of $9.7 million and the purchase of Pine Laurel at the Oaks for $2.1 million.

Westminster Communities of Going forward: Florida Continue strong marketing efforts Continue our cost controls and cost monitoring Continue our deferral of capital projects until the economy begins to strengthen Monitor the investment markets to determine when to rebalance our investment portfolio

Questions Discussion