David B. Ferguson

Financial uncertainty made 2009 a challenging year for residents, employees and ABHOW, as for most organizations. Nonetheless, we have much to be grateful for as Thanksgiving approaches. The economy is starting to improve and, because of the joint efforts of residents and staff, ABHOW remains strong. In fact, the company is weathering the storm even better than anticipated. Prudent planning remains essential, but it is encouraging to see signs of better times ahead as the holiday season begins.

ABHOW posted a strong performance for the fiscal year that ended in September. That would not have been possible without the creativity and cooperation of many hands. Employees found ways to do more with less, while residents contributed important ideas to the budget process. Everyone involved with budget matters kept in mind that providing housing, health care and supportive services is the heart of ABHOW’s mission. Shared resolve to fulfill this charge allowed us to deliver the same level of services while keeping fee increases modest.

As is always the case, the budget process included planning for the company’s ongoing vitality. We know our residents’ long-term interests are best served when ABHOW retains dedicated, talented employees and sustains a solid financial foundation. Toward that end, we are implementing programs to encourage high-performing employees, and we are working hard to maintain competitive occupancy levels, our most significant indicator of financial health.

As we learn of the failure of some senior living developments from real estate and financing challenges, our strategy of phased growth seems validated. Moreover, our practice of maintaining solid margins provided a cushion against investment declines in the market.

ABHOW’s investments are now starting to recover, and next year’s budget projections look strong. But we will continue to be diligent stewards. We will, for instance, refinance debt to lock in historic low fixed rates. We will also keep finding creative ways to attract prospective residents, such as offering delayed entry fees to those struggling to sell a home in the still-sluggish real estate market.

We will continue to keep staff and residents posted on ABHOW’s financial progress, and we are grateful to everyone who has had a role in that progress.

We also give thanks for a number of significant milestones this year. We celebrated the company’s 60th anniversary. All 10 of our continuing care retirement communities achieved the senior living industry’s highest level of accreditation. Seven of our affordable housing communities attained the highly regarded “Communities of Quality” designation from the National Association of Housing Management Agents. We opened a new affordable housing community and saw others begin to take shape. Perhaps most important, residents and employees reported a high level of satisfaction in recent surveys.

All of this points to one thing: that our mission endures even amid economic challenges. Across all of our communities, we are blessed with the opportunity to “enhance the independence, well-being and security of older people.” For that mission, we are grateful.