NEWS | Companies
Joint venture’s basic goal:
jump-start stalled projects
» Skilled Healthcare Group Inc.’s
earnings rose by 11% to more than $9
million, as revenues increased to approxi-
mately $190 million. “We continue to face
a challenging economic environment and By Liza Berger continuing to enter the indus-
an era of reimbursement uncertainty,” A joint venture has been try, but “because the financ-
said Boyd Hendrickson, chairman and formed to capitalize on senior ing situation is so challenging,
CEO of the company. Profits for the first living development and con- those groups are finding they
Photo: Formation Development Group
six months expanded to $19 million. struction projects that have can’t get into the business,”
Revenues climbed to nearly $383 million. been stalled as a result of the Maberry said.
The company recently restated its financial economic downturn. The parent companies of
statements for the three years ended Dec. Formation Shelbourne Part- the joint venture will provide
31, 2008, and each of the quarters from ners is an outgrowth of private equity and financing for For-
Jan. 1, 2007, through March 31, 2009. equity groups Alpharetta, GA- mation Shelbourne Partners.
based Formation Capital LLC Mark Maberry is executive VP of Formation was one of two
» Five Star Quality Care Inc.’s and Shelbourne Healthcare Formation Development Group. companies that acquired the
profits more than doubled in the second Development Group of Rad- nursing home chain Genesis
quarter of 2009 as revenues rose by 10% nor, PA, and their develop- living giant Sunrise Senior Liv- HealthCare Corp. in 2007.
to nearly $300 million. Net income from ment subsidiaries. ing Inc., have been sidelined, T he ne w ve nt u re w i l l
continuing operations included several It aims to take over projects said Mark Maberry, co-founder develop its own projects and
items that, in aggregate, resulted in a posi- that have foundered as a result and executive vice president offer consulting and fee devel-
tive impact of $6.5 million. of the recession. It also wants to of Formation Development opment services to investors,
take advantage of the increased Group, the development com- lenders, operators and devel-
» Ventas Inc. earned nearly $90 million availability and attractive pric- pany of Formation Capital. opers. It will perform market
in the second quarter of 2009. That repre- ing of site locations. Its target “They went from develop- research and lend expertise in
sents a 26% increase from the same quar- settings are freestanding assist- ing a few dozen a year to not various development areas.
ter last year. The real estate investment ed living and Alzheimer’s care developing any more at all,” Maberry noted that despite
trust, which is the landlord of Kindred communities. he said. “There are others that the recession, the fundamen-
Healthcare Inc., reported a 60% rise in There ar