January 19, 2010

Dear Residents:

It has been known for some time now regarding my retirement. In fact, so long some residents have said “goodbye” several different times. One resident spoke the obvious by asking, “You haven’t left yet?” Maybe that is what one is left with when the question is asked too many times, “Have you left yet?” The nice thing is I have been sufficiently wished well with good luck to feel as though there has been a spiritual “laying on of hands” offering an aura of protection for many years to come.

You have been so very gracious not just of my now factual (it’s real!) departure this week. Your kindness and friendship extend over many years. It has been one of the joys of the job to become acquainted with you, in many situations to live with you through challenge. I regret the lost opportunities to know all of you with the intimacy of close friendship. I leave with cherished memories to embrace those quiet moments of contemplation. I leave, however, confident of the continuing leadership and direction coming from the Friendship Senior Options and Friendship Village Boards of Directors. Importantly, I am especially proud of our new President and Chief Executive Officer, Steve Yenchek, and his superb team of staff officers and directors. They are backed by no doubt the most exemplary team of associates within our field today. The dedication and loyalty of these six hundred employees are instructive to all of us. I look forward to staying in touch with the organization’s progress toward the future.

Thirteen years ago we charted a course to position Friendship Village to continue the best of its then twenty year history while transforming our community to offer existing and future residents exceptional facilities, services and programs. A dynamic and competitive market place was underway, and our goal was to become the very best of these communities. As a result, to ensure both continuity and longevity of service so that there is pride in what we offer and, importantly, residents would find comfort in the organization’s stability. These efforts continue, but there is no doubt we are better positioned today to meet the challenges of the times in which we live. The coming years will be exciting as the work progresses, and the ambitions we all have for Friendship Village and Friendship Senior Options, are actualized.

You have taught me so much which I attempt to incorporate into my daily life. It can best be summarized in a love of today, courage in the face of tribulation, the importance of making and having friends, patience – yet a striving for improving, doing instead of wishing, and humor. From you, I am learning not to take myself so seriously, for there are things over which we have control, but much we simply cannot change. You taught me there is an “art” to happiness. In the first place, we must want happiness to gain it; we must act happy to be happy; we must learn to deal with but let go of burdens which, if persisted and nursed, will rob us of the joy of our days. I have had the good fortune to observe you day-to-day as you interact, and what I have learned is this: life comes to you only by your going toward life. You exemplify this later with such robust enthusiasm it is certification to me of its truism. Thank you so much for these and the other lessons you so willingly shared with me sometimes not even to your knowing. I am very, very proud of all of you!

Lib and I are at that place of new beginnings, which, as I shared with the Board of Directors, was a personal ambition earlier for the naming of the faux bridge at the entrance to our campus: “The Bridge to New Beginnings!” It is not my first idea that did not make the grade. You know well about new beginnings. I always have so enjoyed the planning phase while observing and working on the implementation of a new project or program. As such, this new phase for Lib and me we embrace with excitement and a strong planning effort. At the same time, there will be those special places where we will husband and recall the innumerable and wondrous memories of our days at Friendship Village. Thank you so much for the privilege of serving you. No retiring chief executive officer could have a better way to end a career. My best to all of you.

Sincerely,

Robert M. Alston

Toni Dini, Friendship Village Resident Council President for the last 3 years with newly elected President Jim Quigley

At the November meeting of the Friendship Village Resident Council, the newly elected President Jim Quigley and Recording Secretary Shirley Odeeguard were inducted into office.

The Friendship Village Resident Council members are liasons between all management departments and residents. The members report the plans and accomplishments of each department in an open monthly forum.

Mr. Quigley’s duties include presiding over all Resident Council meetings, attending events and all committee meetings. Ms. Odeeguard will maintain the minutes of the meetings and is now responsible for all written records of the Council.

CEO and President Bob Alston, with Vice President Steve Yenchek, presented the outgoing officers with a plaque and gratitude for their service from the Friendship Village Board of Directors

October 26, 2009

Dear Resident,

In recent days, you may have heard or seen news reports about Erickson Retirement Communities’ plans to reorganize its company through a bankruptcy proceeding. This news is of particular relevance in Chicagoland, where Erickson is developing two communities- Sedgebrook in Lincolnshire and Monarch Landing in Naperville. Erickson has acknowledged that its ambitious plans for development were derailed by the challenging economy.

We wanted to take this opportunity to share with you some factual information about the steps that are taken to guard the financial integrity of Friendship Village. We hope that you will take comfort – even pride – in the fact that our organization has taken steps for many years to ensure that highly qualified outside observers are in a position to examine our finances at regular intervals:

* Friendship Village is among the 12 percent of communities nationally that submit themselves to an independent, outside review by the Continuing Care Accreditation Commission (CCAC), the only accrediting body in our field. The CCAC measures our performance against 800 measures of quality, and EACH YEAR it measures our performance against standards for financial integrity.

* We were the first Continuing Care Retirement Community (CCRC) in Illinois to earn accreditation and the only one to be re-accredited four times.  Our current accreditation extends through 2013. At our last re-accreditation in 2008, Friendship Village was cited for “exemplary conformance” in preparation of highly detailed and comprehensive reports for our investors.

* Friendship Village is among a small collection of CCRCs that seeks to have its debt rated by an outside rating service. The Fitch Bond Rating Service just RE-AFFIRMED Friendship Village’s bond rating with an “evolving” outlook. Fitch attributed the outlook to Bank of America’s desire to shift away from the senior living sector. We are seeking a lending relationship with a new banking partner.

* Friendship Village’s finances are audited annually by KPMG, a “Top Four” firm whose rulings help set “best practice” financial policy for our entire field.

* An independent actuary, A.V. Powell, reviews Friendship Village’s contract structure annually to ensure that the pricing of Entrance Fees and Monthly Service Fees supports the successful long-term operation of the community.

As you probably are aware, Friendship Village has taken a more conservative approach to growth and expansion than other organizations. We have successfully completed two phases of construction on this campus – Crosswell Trace in 2004 and Bridgewater Place/Friendship Center in 2007. Weare now in the midst of a $2 million reinvestment into the original part of our community to improve our market position and ensure that Friendship Village can easily re-selresident apartments when the time comes.

Despite the national economic crisis, Friendship Village has made steady progress both in increasing occupancy and improving its financial performance. During the most recent fiscal year, we increased the average residential living census by 9 percent – at a time when many CCRCs were losing occupancy. We did this with the active help and support of many of you, who willingly referred your friends to us.

We’re also seeing success on another front. Friendship Village’s parent company, Friendship Senior Options, is developing a new CCRC about 25 miles away called GreenFields of Geneva. Apartments have been selling briskly since June, and only 13 more sales are needed before financing can be secured to begin construction. At this point, we expect to start building GreenFields in spring and open in the summer of 2011.

Our sincere hope is that this letter gives you assurance that you made a good choice when you selected Friendship Village for your retirement future.

If you have any questions about this or any other matters, please feel free to share them at our monthly Town Hall Meetings.

Sincerely,

Robert M. Alston

President & CEO

Dear Resident:

            You may have been reading the series in the Chicago Tribune lately regarding certain Illinois nursing homes that provide services to psychiatric patients, including some with criminal histories. The reports were heart-breaking and disturbing, especially in regard to tragic instances when residents came to harm at the hands of another resident.

            I believe you already know, but to offer some reassurance, Friendship Village has never sought a license to receive and care for residents with psychiatric diagnoses. Furthermore, we comply with all state requirements for conduct of criminal background checks both on our prospective employees and on prospective Briarwood residents.

            Friendship Village manages a very large, comprehensive continuum of health-related services to meet the needs of our residents, including Home Services, Assisted Living, Memory Support and Skilled Nursing Care. We are proud of our care team, and every day we work diligently to address the needs of hundreds of residents. Our services are rated highly by regulators and by our peers. 

            What the Chicago Tribune story reminds us in a much larger context is that no “institution” or community is perfect. Mistakes do happen. We occasionally make mistakes here at Friendship Village, even in spite of our best efforts and the superlative team we having working in your behalf. After all, we are a human community working with hundreds of associates on a 24-hour basis. What I believe distinguishes us from many others is that we acknowledge our mistakes and work diligently to correct and learn from our errors. As you know, perfection is a process, never an achievable end. 

            Our Governor will take appropriate remedial steps to address the issues that have come to light regarding those nursing homes that are faced with what must be terrible circumstances. We are fervent proponents of safety throughout our community. Our hearts go out to those patients who have suffered so much and their families. What we also take away from this story is that, each and every day, we re-commit ourselves to serving you the very best we can. Each day we commit anew to become a better organization and to appreciate that our best safeguard by far is for each of us to demonstrate the great esteem that we hold for each of you.    

Sincerely,

Robert M. Alston

President and CEO

Friendship Village of Schaumburg honored Robert M. Alston, its long-time president and chief executive officer, with the annual Sterling Friendship Award. Alston, who also heads parent organization Friendship Senior Options, is planning to retire in January following 13 years of service.

The award, established to honor people age 65 and older who provide positive examples for living and giving, was bestowed at the 12^th annual Sterling Friendship Award Event on Sept. 25. The event was held on the Friendship Village campus to celebrate indoor and outdoor spaces created by a recent expansion under Alston’s leadership.

“With his ongoing contributions both at Friendship Village and within the field of aging services, Bob is a perfect example of the qualities that the Sterling Award was created to recognize,” said Jan L. Tucker, chair of the not-for-profit Friendship Senior Service Foundation, which stages the annual fund-raising event.

This year’s Sterling Event was themed “An Evening With a Southern Gentleman,” a bow to Alston’s courtly manners and roots in Augusta, Ga. Alston joined the field of aging services after taking a master’s in divinity from Emory University and managing the successful fill-up of a federally subsidized housing community for older adults in Atlanta. He subsequently served in leadership roles for Pacific Homes Inc. and FACT Retirement Services in California prior to joining Friendship Village in January 1997 as the fourth executive in the organization’s 32-year history.

This year’s Sterling Event began with a reception in the community’s newest neighborhood, Bridgewater Place. Dinner was served in the Wintergarden, with an awards ceremony in the Assembly Hall of Friendship Center, a new campus community center.

This year’s event was co-chaired by Tom and Carol Johnson of Elgin. Tom Johnson, emeritus dean of William Rainey Harper College of Palatine, ischair of the Friendship Senior Options Board of Directors.

The proceeds from the event benefitted the Land Stewardship Fund and the Friendship Fund, which allows residents who have outlived their resources to continue living at Friendship Village.