Fitch Ratings, which provides credit ratings, commentary and research on public companies, has upgraded Lenbrook’s investment grade rating to ‘BBB’ with a stable outlook. In issuing the rating, Fitch noted that Lenbrook has a strong market position that comes from its favorable reputation, solid operations and desirable location.
“The upgrade to ‘BBB’ reflects Lenbrook’s successful completion of the Kingsboro independent living unit expansion project, which was completed on time and under budget in October 2021,” the Fitch Ratings announcement noted. It also noted that over the past three fiscal years, Lenbrook has averaged a solid 93% occupancy rate in its independent living units, 83% in its assisted living units and 84% in its skilled nursing facility beds.
“We are excited about this rating upgrade from Fitch,” said Leslie Dove, Lenbrook’s Chief Financial Officer. “Our team has worked hard to sell out the Kingsboro residences, maintain strong occupancy rates throughout our community, generate solid operational results and cash flow levels and retain our strong market position. Now, we get to celebrate those successes through this upgraded rating.”
Lenbrook has sold all the 53 Kingsboro residences and has fully paid down the expansion project short-term debt of $76.7 million. In addition to the living units, Kingsboro offers a regulation croquet lawn, community amenities and greenspace, and a parking garage.
Dove noted that the upgraded rating is an acknowledgment of Lenbrook’s responsible investment and financial strategy.
“When we financed Kingsboro, it was our solid financial profile that allowed us to get 100% bank financing during a time when the tax-exempt bond markets were shut down due to the pandemic,” she said. “During COVID, it was our financial security that kept us from making reactive short-term decisions that could have hurt the community in the long run.”
Lenbrook’s successfully completed expansion project, strong occupancy, solid operations and upgraded BBB investment grade rating from Fitch Ratings give Lenbrook residents and associates a level of financial security that no other community in Atlanta can offer.
View the full Fitch Ratings report about Lenbrook here.