The Kendal System, The Kendal System, established in 1971, is a collaborative network of interdependent not-for-profit senior-living programs, communities, and services inspired by the principles of the Religious Society of Friends (Quakers). Kendal’s Values and Practices, shared among all Affiliates, form the foundation of our operations. The System has evolved into a federal-style model, now encompassing 10 operating Affiliates across the country with one under development in Southern California. Each Kendal Affiliate functions as a locally governed 501(c)(3) organization with an independent Board of Directors and leadership team, maintaining strong ties to their respective local communities.
In this federal-style model, The Kendal Corporation (TKC) serves as the supporting organization, coordinating services, implementing model practices, and fostering mission-aligned growth throughout the Kendal System. Each Kendal organization manages its financial resources and obligations independently, which allows for both local responsiveness and the collective scale of a larger, values-driven system.
The Kendal Corporation has a pivotal role in the stability and expansion of the Kendal System. In 2023, TKC focused on strengthening the relationships across all Affiliates and enhancing our Quaker legacy. Key initiatives included the implementation of new technology platforms to streamline administrative processes and improve resident services. TKC also spearheaded efforts to enhance staff training programs, ensuring that employees are well-equipped to provide exceptional service and support to residents.
In 2023, we celebrated the official opening of Ensó Village, the newest Kendal, in Northern California. Ensó Village, a Zen-inspired senior living community, embodies Kendal’s commitment to innovative and holistic approaches to healthy aging. The addition of Ensó Village marks a significant milestone, being the first new Kendal community in a decade.
The Kendal Group Health Plan continued to provide comprehensive health benefits to approximately 420 employees and their dependents, maintaining a robust reserve of $3,800,000 at yearend. In alignment with our commitment to employee welfare, we have also expanded our retirement benefits. The Kendal-sponsored retirement plans, including 403(b), 401(a), and 457 retirement savings plans, now boast a combined market value of approximately $80,000,000, offering secure retirement options to over 7,500 participants. This expansion reflects our ongoing efforts to attract and retain top talent within the senior living sector.
Throughout 2023, Kendal Affiliates engaged in numerous community outreach and sustainability initiatives. Our commitment to environmental stewardship saw the implementation of energyefficient systems across several communities, significantly reducing our carbon footprint. Additionally, Kendal Affiliates collaborated on community service projects, strengthening our ties with local communities and enhancing the lives of those we serve.
As we look forward in 2024 and to 2025, The Kendal Corporation remains dedicated to fostering a supportive, innovative, and values-driven environment for all Affiliates, ensuring that we continue to provide exceptional services and support to residents and members. —Amy Harrison, Chief Financial Officer
BARCLAY FRIENDS — At Barclay Friends, our commitment to fostering a vibrant, nurturing community remains unwavering. 2023 was a testament to our resilience and dedication to providing exceptional services, support, and companionship to residents. Despite regulatory and labor market headwinds, our census remained strong with an average occupancy of 92%. The increase in net assets was positive at over $1.5 million and all debt covenants were met. Barclay’s net asset position remains strong at over $33 million with cash and unrestricted investment balance in excess of $19 million. —Jennie Bury, Chief Financial Officer
COLLINGTON — Collington came out of the challenges of 2022 and ended 2023 with a positive year-end balance. Average occupancy for 2023 was 90.9% with December 2023 occupancy at 92%. Long Term Debt Service Coverage Ratio increased significantly by year-end at 2.45x compared to the prior year’s 1.48x. Days Cash on Hand also increased to 182 days compared to 2022’s 164 days at the end of 2023. The biggest increase was noted in the Net Operating Margin Ratio, ending the year at 9.31%. 2023’s financial success was due to many factors including an improved investment market, better management of expenses, and the continuation of excellent service to residents.
In early 2023, Collington delicensed the 44 accomodations in the skilled nursing wing and increased assisted living residences by 12, bringing the total number of assisted living residences to 77. This change was due to the declining need and occupancy of the skilled nursing accommodations. Collington was able to make this change and save approximately $900,000 per year in additional costs without reducing the workforce.
The Collington Foundation raised $375,329 in monetary and in-kind contributions. This helped fund $46,969 in scholarship grants for team members and $272,311 in fellowship grants for residents.
Overall, Collington continues to improve the community’s financial status, update the bucolic campus, and provide excellent service to all campus residents.
—Courtney Corcoran, Chief Financial Officer
ENSÓ VILLAGE — With the construction of a brand new $297 million campus nearing completion, Ensó Village welcomed the first residents on November 21, 2023, officially marking the end of construction! In just six weeks of operations, Ensó Village ended 2023 with over 100 residents calling it home and another 100 residents already scheduled to move in during the early months of 2024.
Despite the brief operational period in 2023, Ensó Village collected almost $76 million in Entrance Fees and expects to collect another $60 million by the end of Q1 2024. While the increase in staffing costs is a challenge, we are not facing it alone. Thanks to the incredible campus, employee members are actively seeking to join the community! By the end of 2023, all leadership positions were filled, and Ensó Village proudly employs over 35 employees, with plans to grow to 90 by the end of 2024. —Adam Bulatewicz, Controller
KENDAL AT HANOVER recognized an “Excess of Revenues over Expenses” of approximately $7,080,000 in FY 2023. Some of the financial bright notes for Kendal at Hanover during FY 2023 were the following:
- Kendal at Hanover continues to maintain a “BBB+ positive outlook” investment grade rating through Fitch Ratings due to its steady financial performance, strong market position, steady and consistent entrance fee receipts, and Days Cash on Hand ratio that ended FY 2023 at 801 days.
- The growth and financial strength of our prospective residents’ Wait List, which increased from 678 to 719 apartment applications.
- The strong net entrance fee receipts that grew from $9,833,711 in FY 2022 to $12,864,839 during FY 2023.
- Kendal at Hanover recognized a strong investment portfolio market with non-operating gains of nearly $4,823,000 and contributions without donor restrictions of approximately $299,000.
- In conversations with the State of New Hampshire
Insurance Department in FY 2023, Kendal at Hanover received approval to transfer $4,000,000 of overfunded New Hampshire Reserve Funds to our unrestricted investment portfolio. In addition, with the sale of the overfunded New Hampshire Reserve Funds and additional rebalancing during FY 2023 with the strong investment portfolio market, Kendal at Hanover recognized approximately $1,387,000 in realized gains in the fiscal year.
Like many Kendal Affiliates, Kendal at Hanover continues to make progress in addressing the workforce challenges found within our field. We are noticing less of a reliance on nursing agencies, further building on our reputation that Kendal at Hanover is a great place to work. —Brent Edgerton, Chief Financial Officer
KENDAL AT HOME As we approach our 20th anniversary in 2024, we reflect on our journey from inception to the present and look ahead to future opportunities. This past year, the theme of “Stability” has been pivotal as we have strengthened our foundation to support current members and expanded our reach organically and without accruing debt. This strategic expansion allows us to serve a growing number of individuals committed to aging successfully in their preferred settings.
At the core of a Kendal at Home membership are three pillars: Healthy Aging, Care Management, and Care Coverage. Our membership tiers are designed to ensure proactive planning for healthy aging, personalized care management advocacy, and a selection of care coverage levels tailored to meet individual financial circumstances and provide peace of mind. This year, we introduced a new Foundation Plan, priced more accessibly and supporting the first two pillars. This plan was chosen by 40% of new members in 2023, signaling a strong start toward reaching a broader audience.
Membership growth was robust, with the addition of 36 new members, reaching a total served of 399 this year. Our prior expansions into Massachusetts and Kentucky were particularly successful, accounting for 47% of new memberships. On the philanthropic front, we’ve deepened our commitment through initiatives such as the Possibilities Fund, which supports the skilled healthcare personnel we contract to assist members, and the Member Assistance Fund, which helps members who may outlive their resources. A highlight of the year was receiving our first legacy gift, marking a significant milestone in the organization’s history.
Our focus on financial stability has paid off, leading to reduced operating expenses and a strong operating surplus. As we stand on the cusp of the next 20 years, we are well-positioned for growth, driven by our unwavering dedication to serving members, investing in staff and operations, and embracing innovation in the face of challenges. This past year’s achievements are not just reflections of our financial health but also stepping stones toward future excellence. —Karen Graham, Chief Financial Officer
KENDAL AT ITHACA — 2023 stood out as a year of impressive achievement and success. After a rigorous survey process, Kendal at Ithaca again earned a five-year CARF Accreditation that recognizes the organization’s commitment to quality resident care and services. The surveyors identified numerous organizational strengths, including the level of resident and employee engagement, a local community collaboration to enhance the lives of older adults, and a focus on data to support decisionmaking and benchmarking of performance. 2023 was also a banner year for Independent Living (IL) occupancy, averaging 94.1% and finishing the year at 95.3%. Not since 2013 had IL occupancy averaged above 90%. The IL census growth helped Resident Fee revenue increase by 9.3% over the prior year.
Health Center occupancy was also steady throughout 2023, with occupancy for Assisted Living and Skilled Nursing averaging 96.3% and 85.0%, respectively. The revenue growth helped Kendal at Ithaca meet the challenge of rising expenses, particularly labor costs. As a result, Kendal at Ithaca showed a Gain from Operations of just over $1.0 million and maintained strength in key financial indicators. Days Cash on Hand ended FY 2023 at a healthy 759 days, and the Debt Service Coverage Ratio was a solid 3.13 at yearend. In addition, the Actuarial Compilation Report, as of December 31, 2023, showed all key actuarial measures continuing to trend higher, indicating that the long-term financial position is extremely healthy. —Gregory Sommers, Chief Financial Officer
KENDAL AT LEXINGTON — As Kendal at Lexington reflects on 2023, the community is incredibly proud and grateful for its accomplishments. Kendal at Lexington continued to focus on its infrastructure as it implemented a few significant projects. One was the replacement of 23-year-old roofs for the Anderson Center and North and South apartment buildings. In addition, the community began installing a door access system that will limit access to the main building during specified hours.
Kendal at Lexington established partnerships with external organizations to bolster community initiatives. Among these collaborations, Kendal at Lexington supported various outside entities such as ConnectionsPlus Healthcare + Hospice and Habitat for Humanity. Our contributions have played a pivotal role in constructing homes for families facing housing insecurity and providing vital assistance to the community during times when hospice care is required.
Kendal at Lexington also worked closely with students on two capstone projects with nearby Washington & Lee University and internshipworkforce development programs with Rockbridge County High School, Mountain Gateway Community College, and Virginia’s registered apprenticeship program.
Financially, the community’s total operating revenue was 6.9% higher than the previous year, while total expenses increased by slightly over $1.0 million (5.7%). The result was an operating gain of $1.6 million and a total increase in net assets of $5.6 million.
Residential living occupancy was strong, with an average of 93.1% for the year, and the net residential services revenue was slightly over $9.5 million. The average occupancy of the Webster Assisted Living
Center declined from the previous year to 81.6%, with a revenue of $961,000. The average occupancy for the Borden Health Center also declined to 59.7%, with a revenue of $4.1 million.
With the market improving, Kendal at Lexington recognized almost $1.6 in investment income and $3.6 in unrealized gains on investments. This attributed to the community’s highest Days Cash on Hand of 940 days. Kendal at Lexington welcomed 19 new residential residents with total entry fees of $6.7 million. The Debt Service Coverage Ratio was 2.97.
At year-end, Kendal at Lexington embarked on a market study initiative to review current building plans and programs and explore options for repositioning and expanding services on campus.
Kendal at Lexington is looking forward, planning for its future and excited for the new opportunities.—Felicia Bush, Chief Financial Officer
KENDAL AT OBERLIN — Kendal at Oberlin celebrated its 30th anniversary in 2023, reflecting on the past with a focus on the future! There were several significant financial accomplishments completed in 2023 that included:
Kendal at Oberlin’s $60+ million investment portfolio transitioned to a new investment advisory firm to serve as Kendal at Oberlin’s Chief Investment Officer, with a significant focus on ESG investing. This is consistent with Kendal’s Quaker Values.
A new Entry Fee Assistance Fund was established and seeded in 2023 through philanthropic support. This new fund is a long-term investment and supports the Strategic Plan goal of Diversity, Equity, Inclusion and Belonging (DEIB).
Continued evaluation of growth opportunities on and off the campus using the “Growth Toolkit” developed by Kendal at Oberlin’s Board of Directors.
There is ongoing investment in outreach in the greater “CommUnity,” with a special focus on the College Village Apartments, an affordable housing complex adjacent to Kendal at Oberlin’s main campus. In 2023, Kendal Northern Ohio, Kendal at Oberlin’s outreach arm, invested over $700,000 into the College Village Apartments to improve the building envelope and enhance the lives of those who live there.
Conversion of the note receivable from Kendal Northern Ohio of $650,000 to Community Benefit by the Kendal at Oberlin Board of Directors.
The continued planning for Kendal at Oberlin’s future technology needs through people, process, and evaluation of new software systems to support operational improvements and enhance the resident experience.
The Fitch Rating Agency affirmed Kendal at Oberlin’s A+ rating with a stable outlook. Fitch indicated the rating reflects Kendal at Oberlin’s strong market position, with a national draw and minimal local competition for its Type “A” contract, midrange operating risk, and a history of solid operating metrics and steady capital spending.
Kendal at Oberlin celebrated its 30th anniversary and reflected on its impact on enriching resident lives, supporting economic growth and impacting the larger community. It has created a strong financial foundation that will continue to support Kendal at Oberlin as a leader in the field of aging. —Ann O’Malley, Chief Financial Officer
KENDAL NORTHERN OHIO — Kendal Northern
Ohio is the outreach arm of Kendal at Oberlin, which promotes intergenerational activities and develops innovative services for older adults that complement those of existing organizations. The following accomplishments have been highlighted for Kendal Northern Ohio:
The support of two community entities as the Fiscal Agent, including:
- The OberlinKids Collaborative which supports young children and families in the Oberlin area regarding educational readiness from birth to school-age children.
- The Oberlin Community Land Trust seeks “to strengthen diversity and grow communities by holding land in trust for permanently affordable, sustainable housing, home ownership, and other community needs.”
With financial support from Kendal at Oberlin, Kendal Northern Ohio purchased an affordable housing complex (College Village Apartments) located next to Kendal at Oberlin’s campus. This strategic investment supports Kendal’s vision to expand its mission to serve a broader market demographic and maintain affordable housing in the City of Oberlin. In 2023, Kendal Northern Ohio could reinvest in the complex using a construction loan secured as part of the permanent financing. Kendal Northern Ohio spent over $700,000 on The College Village Apartments building envelope and heating and cooling equipment to enhance the lives of those who live there.
The note payable to Kendal at Oberlin of $650,000 was approved to be converted to Community Benefit by Kendal at Oberlin’s Board of Directors. This will enhance Kendal Northern Ohio’s future balance sheet and statement of operations.
Continued participation in a special membership agreement with another non-profit organization to support home health services for residents of Kendal at Oberlin, Lorain County, and specific zip codes in Cuyahoga County.
Ongoing development of a community outreach plan focused on supporting healthy aging and access to health care, transportation needs in Lorain County and housing needs in the City of Oberlin. —Ann M. O’Malley, Chief Financial Officer
KENDAL ON HUDSON ended 2023 in strong financial condition with 95.5% occupancy in Independent Living, 1,039 days cash on hand and a debt service coverage ratio of 4.65x. There were 16 move-ins for the year, generating net entrance fee proceeds of approximately $9.9 million. Total operating revenue for the 12 months ended December 31, 2023 approximated $39.5 million.
Health care occupancy was strong in Assisted Living at 88.9% for the year and lower in Memory
Care and Skilled Nursing at approximately 65.7% and 71.2% for the year, respectively. Total operating expenses for the 12 months ended December 31, 2023 approximated $35.7
million, an increase of 3.5% compared to 2022. Investments grew by $4.8 million, an increase of 8.4%. Kendal on Hudson is in compliance with all debt covenants at the end of the year. —Jean Eccelston, Chief Financial Officer & CEO
LATHROP — The Lathrop Community continues to perform significantly better than budget in 2022. Occupancy levels have remained high resulting in revenue 4% above budget. We have kept expenses below budget which allowed us to achieve a 12.4% operating margin as opposed to the budget of 5.2%. The waiting list remains strong. Lathrop’s financial position is stable and improving. We paid off close to $200,000 of long-term debt, invested close to $1.5 million in improvements to the campus, and cash on hand reduced only slightly due to the downturn in investment value. In 2024, we plan to continue to build financial resiliency by meeting or exceeding our budget goals, creating capital reserves, and continuing to improve and invest in our campuses and facilities. —Holly Smith-Bové, Chief Financial Officer