Second Quarter Net Income of $0.17 Per
Share, an Increase of 13.3% Year over Year
Second Quarter Normalized FFO of $0.47 Per
Share, an Increase of 6.8% Year over Year
Senior Housing Properties Trust (Nasdaq: SNH) today announced
its financial results for the quarter and six months ended June 30,
2016.
Results for the Quarter Ended June 30, 2016:
Net income was $39.2 million, or $0.17 per diluted share, for
the quarter ended June 30, 2016, compared to $36.4 million, or
$0.15 per diluted share, for the quarter ended June 30, 2015, which
represents an increase of 7.8%. The increase in net income per
diluted share for the quarter ended June 30, 2016 primarily
resulted from acquisitions and improved performance from properties
owned continuously since April 1, 2015.
Normalized funds from operations, or Normalized FFO, were $111.7
million for the quarter ended June 30, 2016, compared to $104.2
million for the quarter ended June 30, 2015, which represents an
increase of 7.2%. Normalized FFO per diluted share for the quarter
ended June 30, 2016 was $0.47, compared to $0.44 for the quarter
ended June 30, 2015.
Cash basis net operating income, or Cash Basis NOI, was $157.6
million for the quarter ended June 30, 2016, compared to $147.3
million for the quarter ended June 30, 2015, which represents an
increase of 7.0%. Contributions to the increase in Cash Basis NOI
include $7.5 million from acquisitions and $2.8 million of
increases at the same properties over the comparison period.
Reconciliations of net income determined in accordance with U.S.
generally accepted accounting principles, or GAAP, to funds from
operations, or FFO, and Normalized FFO for the quarters ended June
30, 2016 and 2015 appear later in this press release.
Reconciliations of net operating income, or NOI, and Cash Basis NOI
to net income determined in accordance with GAAP for the quarters
ended June 30, 2016 and 2015 also appear later in this press
release. In addition, calculations and reconciliations of NOI, Cash
Basis NOI, same property NOI and same property Cash Basis NOI by
SNH’s operating segments for the quarters ended June 30, 2016 and
2015 appear later in this press release.
Results for the Six Months Ended June 30, 2016:
Net income was $70.5 million, or $0.30 per diluted share, for
the six months ended June 30, 2016, compared to $76.2 million, or
$0.33 per diluted share, for the six months ended June 30, 2015,
which represents a decrease of 7.4%. The decline in net income per
diluted share for the six months ended June 30, 2016 primarily
resulted from non-cash impairment of asset charges of $12.4
million, or $0.05 per diluted share, recorded during the six months
ended June 30, 2016, partially offset by a gain on sale of $4.1
million, or $0.02 per diluted share, recorded during the six months
ended June 30, 2016, related to the sale of one skilled nursing
facility described below.
Normalized FFO were $222.0 million for the six months ended June
30, 2016, compared to $200.2 million for the six months ended June
30, 2015, which represents an increase of 10.9%. Normalized FFO per
diluted share for the six months ended June 30, 2016 was $0.94,
compared to $0.88 for the six months ended June 30, 2015.
Cash Basis NOI was $312.0 million for the six months ended June
30, 2016, compared to $285.2 million for the six months ended June
30, 2015, which represents an increase of 9.4%. Contributions to
the increase in Cash Basis NOI include $21.6 million from
acquisitions and $5.2 million of increases at the same properties
over the comparison period.
Reconciliations of net income determined in accordance with GAAP
to FFO and Normalized FFO for the six months ended June 30, 2016
and 2015 appear later in this press release. Reconciliations of NOI
and Cash Basis NOI to net income determined in accordance with GAAP
for the six months ended June 30, 2016 and 2015 also appear later
in this press release. In addition, calculations and
reconciliations of NOI, Cash Basis NOI, same property NOI and same
property Cash Basis NOI by SNH’s operating segments for the six
months ended June 30, 2016 and 2015 appear later in this press
release.
Operating Results:
For the quarter ended June 30, 2016, same property NOI and Cash
Basis NOI increased 1.4% and 2.0%, respectively, compared to the
quarter ended June 30, 2015.
For the quarter ended June 30, 2016, 41.6% of SNH’s NOI came
from 123 properties leased to medical providers, medical related
businesses, clinics and biotech laboratory tenants, or MOBs, with
11.6 million leasable square feet. As of June 30, 2016, 95.9% of
SNH’s MOB square feet were leased compared to 95.8% as of March 31,
2016 and 96.4% as of June 30, 2015.
Same property occupancy for SNH’s MOBs owned continuously since
April 1, 2015 decreased to 95.8% as of June 30, 2016, compared to
96.4% as of June 30, 2015. SNH’s MOB same property NOI remained
substantially unchanged and same property Cash Basis NOI increased
0.7% for the quarter ended June 30, 2016 compared to the quarter
ended June 30, 2015.
For the quarter ended June 30, 2016, 39.7% of SNH’s NOI came
from 236 triple net leased senior living communities with 26,432
living units. Same property NOI and Cash Basis NOI for SNH’s triple
net leased senior living communities increased 0.8% and 1.4%,
respectively, for the quarter ended June 30, 2016 compared to the
quarter ended June 30, 2015. Occupancy at triple net leased senior
living communities decreased to 85.4% for the most recently
reported period, compared to 85.8% for the comparable period last
year.(1) Same property occupancy decreased to 84.9% for the most
recently reported period, compared to 85.8% for the same period
last year.(1)
For the quarter ended June 30, 2016, 15.9% of SNH’s NOI came
from 67 managed senior living communities with 8,634 living units.
Same property NOI and Cash Basis NOI for SNH’s managed senior
living communities each increased 8.5% for the quarter ended June
30, 2016 compared to the quarter ended June 30, 2015. Occupancy for
managed senior living communities was 87.1% for the quarter ended
June 30, 2016, compared to 88.2% for the comparable period last
year. Same property occupancy for managed senior living communities
owned continuously since April 1, 2015 decreased to 86.6% for the
quarter ended June 30, 2016 from 87.9% for the comparable period
last year. Same property average monthly rates increased 1.7% to
$4,357 for the quarter ended June 30, 2016 compared to the quarter
ended June 30, 2015.
Acquisition Activity:
In May 2016, SNH acquired one senior living community with 38
private pay assisted living units, located in Georgia, for a
purchase price of approximately $8.4 million, excluding closing
costs. SNH acquired this community using a taxable REIT subsidiary
structure and entered into a management agreement with Five Star
Quality Care, Inc., or Five Star, to manage this community.
Also in May 2016, SNH acquired one MOB (one building), located
in Florida, with approximately 166,000 square feet for a purchase
price of $45.0 million, excluding closing costs.
In June 2016, SNH completed a $112.4 million sale and leaseback
transaction with Five Star whereby SNH acquired seven senior living
communities, located in four states (North Carolina: 3; South
Carolina: 2; Tennessee: 1; and Virginia: 1), from Five Star and
simultaneously entered into a new combination lease with Five Star
for those communities for 12.5 years plus renewal options
thereafter. The initial annual rent payable by Five Star under the
lease is $8.4 million. In connection with entering the sale and
leaseback transaction, SNH and Five Star also amended certain terms
of the management agreements under which Five Star manages senior
living communities for taxable REIT subsidiaries of SNH.
During the quarter ended June 30, 2016, SNH spent approximately
$7.6 million on capital investments that will generate additional
rent under its existing senior living communities’ leases.
Disposition Activity:
In June 2016, SNH sold one skilled nursing facility, located in
Pennsylvania, for approximately $9.1 million, excluding closing
costs, and recognized a gain on sale of approximately $4.1 million.
In July 2016, SNH sold four MOBs (four buildings), located in
Oklahoma, for approximately $20.2 million, excluding closing costs.
These MOBs and one other MOB (one building), located in
Pennsylvania, were classified as held for sale as of June 30,
2016.
Financing Activity:
In July 2016, SNH entered into loan agreements and obtained an
aggregate $620.0 million secured debt financing. These loans are
secured by one MOB (two buildings), located in Massachusetts, and
mature in August 2026. The loans carry a weighted average fixed
annual interest rate of 3.53%. SNH used the proceeds from these
loans to repay in part the outstanding amount under its unsecured
revolving credit facility and for general business purposes.
In April 2016, SNH prepaid, at par plus accrued interest, a
mortgage note encumbering one property which had a maturity date in
July 2016, an outstanding principal balance of $18.0 million and an
annual interest rate of 4.65%. In July 2016, SNH prepaid, at par
plus accrued interest, another mortgage note encumbering one
property which had a maturity date in November 2016, an outstanding
principal balance of approximately $11.9 million and an annual
interest rate of 6.25%. Also in July 2016, SNH gave notice of its
intention to prepay, at par plus accrued interest, two mortgage
notes encumbering two properties which have maturity dates in
November 2016, an aggregate outstanding principal balance of $80.0
million and a weighted average annual interest rate of 5.92%; SNH
expects to make these prepayments in September 2016.
Conference Call:
On Friday, August 5, 2016, at 10:00 a.m. Eastern Time, David J.
Hegarty, President and Chief Operating Officer, and Richard W.
Siedel, Jr., Chief Financial Officer and Treasurer, will host a
conference call to discuss the second quarter 2016 financial
results. The conference call telephone number is (877) 329-4297.
Participants calling from outside the United States and Canada
should dial (412) 317-5435. No pass code is necessary to access the
call from either number. Participants should dial in about 15
minutes prior to the scheduled start of the call. A replay of the
conference call will be available through 11:59 p.m. Eastern Time
on Friday, August 12, 2016. To hear the replay, dial (412)
317-0088. The replay pass code is 10088726.
A live audio webcast of the conference call will also be
available in a listen only mode on the company's website, which is
located at www.snhreit.com. Participants wanting to access the
webcast should visit the company's website about five minutes
before the call. The archived webcast will be available for replay
on the company's website after the call. The transcription,
recording and retransmission in any way of SNH’s second quarter
2016 conference call are strictly prohibited without the prior
written consent of SNH.
Supplemental Data:
A copy of SNH’s Second Quarter 2016 Supplemental Operating and
Financial Data is available for download at SNH’s website,
www.snhreit.com. SNH’s website is not incorporated as part of this
press release.
SNH is a real estate investment trust, or REIT, which owns
senior living communities, medical office buildings and wellness
centers throughout the United States. SNH is managed by the
operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an
alternative asset management company that is headquartered in
Newton, MA.
Please see the pages attached hereto for a more detailed
statement of SNH’s operating results and financial condition, and
for an explanation of SNH’s calculation of FFO, Normalized FFO, NOI
and Cash Basis NOI.
(1) Occupancy ratios for triple net leased senior living
communities are based upon operating results provided by SNH’s
tenants, and this information is usually provided to SNH three
months after the end of a fiscal quarter end. As a result,
occupancy ratios presented for triple net leased senior living
communities are for the 12 months ended March 31, 2016 and 2015.
SNH has not independently verified our tenants’ operating data.
WARNING CONCERNING
FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO,
WHENEVER SNH USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”,
“INTEND”, “PLAN”, “ESTIMATE”, “MAY” OR SIMILAR EXPRESSIONS, SNH IS
MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS
ARE BASED UPON SNH’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT
FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT
OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN
OR IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS AS A RESULT OF
VARIOUS FACTORS. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT SNH
EXPECTS TO PREPAY, AT PAR PLUS ACCRUED INTEREST, TWO MORTGAGE NOTES
IN SEPTEMBER 2016. THERE CAN BE NO ASSURANCE THAT SNH WILL PREPAY
THESE MORTGAGE NOTES.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN
SNH’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER
IMPORTANT FACTORS THAT COULD CAUSE SNH’S ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE STATED IN OR IMPLIED BY SNH’S FORWARD LOOKING
STATEMENTS. SNH’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S
WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING
STATEMENTS.
EXCEPT AS REQUIRED BY LAW, SNH DOES NOT INTEND TO UPDATE OR
CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE.
SENIOR HOUSING PROPERTIES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(amounts in thousands, except per share
data)
(unaudited)
Three Months Ended Six
Months Ended June 30, June 30, 2016
2015 2016 2015 Revenues: Rental income
$ 163,997 $ 155,546 325,419 $ 301,329 Residents fees and services
97,370 91,856 194,323
174,649 Total revenues 261,367 247,402 519,742
475,978 Expenses: Property operating expenses 97,474 93,592
195,422 179,386 Depreciation and amortization 71,372 62,511 142,594
116,218 General and administrative 11,965 11,674 22,828 22,248
Acquisition related costs 180 4,617 619 5,775 Impairment of assets
4,961 — 12,351 —
Total expenses 185,952 172,394
373,814 323,627 Operating income
75,415 75,008 145,928 152,351 Dividend income 789 — 789 —
Interest and other income 177 142 242 217 Interest expense (41,118
) (37,907 ) (80,399 ) (73,848 ) Loss on early extinguishment of
debt — (39 ) (6 ) (1,448 )
Income from continuing operations before
income tax expenseand equity in earnings of an investee
35,263 37,204 66,554 77,272 Income tax expense (108 ) (129 )
(202 ) (239 ) Equity in earnings of an investee 17
23 94 95 Income from
continuing operations 35,172 37,098 66,446 77,128 Discontinued
operations: Loss from discontinued operations — (109 ) — (350 )
Impairment of assets from discontinued operations —
(602 ) — (602 ) Income before gain on
sale of properties 35,172 36,387 66,446 76,176 Gain on sale of
properties 4,061 — 4,061
— Net income $ 39,233 $ 36,387
70,507 $ 76,176 Weighted average shares
outstanding (basic) 237,325 235,549
237,320 228,501 Weighted average shares
outstanding (diluted) 237,363 235,592
237,349 228,534 Per common share
amounts (basic and diluted): Income from continuing operations $
0.17 $ 0.16 $ 0.30 $ 0.34 Loss from discontinued operations
— (0.01 ) — (0.01 ) Net income
per share $ 0.17 $ 0.15 $ 0.30 $ 0.33
SENIOR HOUSING PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF FUNDS FROM
OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS
(amounts in thousands, except per share
data)
(unaudited)
Calculation of Funds from Operations
(FFO) and Normalized FFO (1)(2):
Three Months Ended Six
Months Ended June 30, June 30, 2016
2015 2016 2015 Net income $
39,233 $ 36,387 $ 70,507 $ 76,176 Depreciation and amortization
expense 71,372 62,511 142,594 116,218 Gain on sale of properties
(4,061 ) — (4,061 ) — Impairment of assets from continuing
operations 4,961 — 12,351 — Impairment of assets from discontinued
operations — 602 — 602
FFO 111,505 99,500 221,391 192,996 Acquisition related costs
180 4,617 619 5,775 Loss on early extinguishment of debt —
39 6 1,448 Normalized FFO $
111,685 $ 104,156 $ 222,016 $ 200,219 Weighted
average shares outstanding (basic) 237,325
235,549 237,320 228,501 Weighted average
shares outstanding (diluted) 237,363 235,592
237,349 228,534 Net income per share
(basic and diluted) $ 0.17 $ 0.15 $ 0.30 $ 0.33 FFO
per share (basic and diluted) $ 0.47 $ 0.42 $ 0.93 $
0.84 Normalized FFO per share (basic and diluted) $ 0.47 $
0.44 $ 0.94 $ 0.88 Distributions declared per share $ 0.39
$ 0.39 $ 0.78 $ 0.78
(1) SNH calculates FFO and Normalized FFO as shown above. FFO is
calculated on the basis defined by the National Association of Real
Estate Investment Trusts, or NAREIT, which is net income,
calculated in accordance with GAAP, excluding any gain or loss on
sale of properties and impairment of real estate assets, plus real
estate depreciation and amortization, as well as certain other
adjustments currently not applicable to SNH. SNH’s calculation of
Normalized FFO differs from NAREIT’s definition of FFO because SNH
includes business management incentive fees, if any, only in the
fourth quarter versus the quarter when they are recognized as
expense in accordance with GAAP due to their quarterly volatility
not necessarily being indicative of SNH’s core operating
performance and the uncertainty as to whether any such business
management incentive fees will ultimately be payable when all
contingencies for determining any such fees are determined at the
end of the calendar year and SNH excludes acquisition related costs
and gains and losses on early extinguishment of debt, if any. SNH
considers FFO and Normalized FFO to be appropriate supplemental
measures of operating performance for a REIT, along with net
income, operating income and cash flow from operating activities.
SNH believes that FFO and Normalized FFO provide useful information
to investors because by excluding the effects of certain historical
amounts, such as depreciation expense, FFO and Normalized FFO may
facilitate a comparison of its operating performance between
periods and with other REITs. FFO and Normalized FFO are among the
factors considered by SNH’s Board of Trustees when determining the
amount of distributions to its shareholders. Other factors include,
but are not limited to, requirements to maintain SNH’s
qualification for taxation as a REIT, limitations in SNH’s
revolving credit facility and term loan agreements and SNH’s public
debt covenants, the availability to SNH of debt and equity capital,
SNH’s expectation of its future capital requirements and operating
performance, and SNH’s expected needs and availability of cash to
pay its obligations. FFO and Normalized FFO do not represent cash
generated by operating activities in accordance with GAAP and
should not be considered as alternatives to net income or operating
income as an indicator of SNH’s operating performance or as a
measure of SNH’s liquidity. These measures should be considered in
conjunction with net income, operating income and cash flow from
operating activities as presented in SNH’s Condensed Consolidated
Statements of Income and Condensed Consolidated Statements of Cash
Flows. Other REITs and real estate companies may calculate FFO and
Normalized FFO differently than SNH does.
(2) Effective with the quarter ended June 30, 2016, SNH has
changed its calculation of Normalized FFO to no longer include
adjustments for estimated percentage rent. Historically, when
calculating Normalized FFO, SNH estimated an amount of percentage
rental income for each of the first three quarters of the year and
then, in the fourth quarter, excluded the amounts that had been
included in the first three quarters. In calculating net income in
accordance with GAAP, SNH recognizes percentage rental income for
the full year in the fourth quarter, which is when all
contingencies are met and the income is earned. Normalized FFO for
historical periods has been restated to be comparable with the
current period calculation.
SENIOR HOUSING PROPERTIES TRUST
CALCULATION AND RECONCILIATION OF NET
OPERATING INCOME (NOI) AND CASH BASIS NOI
(amounts in thousands)
(unaudited)
Three Months Ended Six
Months Ended June 30, June 30, June
30, June 30, 2016 2015 2016
2015
Calculation of
NOI and Cash Basis NOI(1):
Revenues: Rental income $ 163,997 $ 155,546 $ 325,419 $ 301,329
Residents fees and services 97,370 91,856 194,323 174,649 Total
revenues 261,367 247,402 519,742 475,978 Property operating
expenses (97,474) (93,592) (195,422) (179,386) Property net
operating income (NOI): 163,893 153,810 324,320 296,592 Non-cash
straight line rent adjustments (4,745) (5,191) (9,306) (8,699)
Lease value amortization (1,303) (1,178) (2,558) (2,376) Lease
termination fee amortization — (163) (42) (268) Non-cash
amortization included in property operating expenses(2) (199) —
(398) — Cash Basis NOI $ 157,646 $ 147,278 $ 312,016 $ 285,249
Reconciliation of
Cash Basis NOI to Net Income:
Cash Basis NOI $ 157,646 $ 147,278 $ 312,016 $ 285,249 Non-cash
straight line rent adjustments 4,745 5,191 9,306 8,699 Lease value
amortization 1,303 1,178 2,558 2,376 Lease termination fee
amortization — 163 42 268 Non-cash amortization included in
property operating expenses(2) 199 — 398 — Property NOI 163,893
153,810 324,320 296,592 Depreciation and amortization expense
(71,372) (62,511) (142,594) (116,218) General and administrative
expense (11,965) (11,674) (22,828) (22,248) Acquisition related
costs (180) (4,617) (619) (5,775) Impairment of assets (4,961) —
(12,351) — Operating income 75,415 75,008 145,928 152,351
Dividend income 789 — 789 — Interest and other income 177 142 242
217 Interest expense (41,118) (37,907) (80,399) (73,848) Loss on
early extinguishment of debt — (39) (6) (1,448) Income before
income tax expense and equity in earnings of an investee 35,263
37,204 66,554 77,272 Income tax expense (108) (129) (202) (239)
Equity in earnings of an investee 17 23 94 95 Income from
continuing operations 35,172 37,098 66,446 77,128 Discontinued
operations Loss from discontinued operations — (109) — (350)
Impairment of assets from discontinued operations — (602) — (602)
Income before gain on sale of properties 35,172 36,387 66,446
76,176 Gain on sale of properties 4,061 — 4,061 — Net income $
39,233 $ 36,387 $ 70,507 $ 76,176
(1) The calculations of NOI and Cash Basis NOI exclude certain
components of net income in order to provide results that are more
closely related to SNH’s property level results of operations. SNH
calculates NOI and Cash Basis NOI as shown above excluding
properties classified as discontinued operations. SNH defines NOI
as income from its real estate less its property operating
expenses. NOI excludes amortization of capitalized tenant
improvement costs and leasing commissions because SNH records those
amounts as depreciation and amortization. SNH defines Cash Basis
NOI as NOI excluding non-cash straight line rent adjustments, lease
value amortization, lease termination fee amortization, if any, and
non-cash amortization included in property operating expenses. SNH
considers NOI and Cash Basis NOI to be appropriate supplemental
measures to net income because they may help both investors and
management to understand the operations of SNH’s properties. SNH
uses NOI and Cash Basis NOI internally to evaluate individual and
company wide property level performance, and it believes that NOI
and Cash Basis NOI provide useful information to investors
regarding its results of operations because these measures reflect
only those income and expense items that are generated and incurred
at the property level and may facilitate comparisons of its
operating performance between periods and with other REITs. NOI and
Cash Basis NOI do not represent cash generated by operating
activities in accordance with GAAP and should not be considered as
an alternative to net income or operating income as an indicator of
SNH’s operating performance or as a measure of SNH’s liquidity.
These measures should be considered in conjunction with net income,
operating income and cash flow from operating activities as
presented in SNH’s Condensed Consolidated Statements of Income and
Condensed Consolidated Statements of Cash Flows. Other REITs and
real estate companies may calculate NOI and Cash Basis NOI
differently than SNH does.
(2) SNH recorded a liability for the amount by which the
estimated fair value for accounting purposes exceeded the price SNH
paid for its investment in RMR common stock in June 2015. A portion
of this liability is being amortized on a straight line basis
through December 31, 2035 as a reduction to property management
fees, which are included in property operating expenses.
SENIOR HOUSING PROPERTIES TRUST Calculation and
Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same
Property Cash Basis NOI by Segment (1) (dollars in
thousands) (unaudited)
For the Three Months Ended June 30, 2016 For the
Three Months Ended June 30, 2015
Calculation of NOI and Cash Basis
NOI:
Triple NetLeased
SeniorLiving Communities
ManagedSenior
LivingCommunities
MOBs
Non-Segment (2)
Total
Triple NetLeased
SeniorLivingCommunities
ManagedSenior
LivingCommunities
MOBs Non-Segment (2)
Total Rental income / residents fees and services $ 66,441
$ 97,370 $ 92,978 $ 4,578 $ 261,367 $ 61,347
$ 91,856 $ 89,591 $ 4,608 $ 247,402 Property
operating expenses (423 ) (71,642 ) (25,409 )
- (97,474 ) - (69,792 )
(23,800 ) - (93,592 ) Property net operating income
(NOI) $ 66,018 $ 25,728 $ 67,569 $ 4,578
$ 163,893 $ 61,347 $ 22,064 $ 65,791 $
4,608 $ 153,810 NOI change 7.6 % 16.6 % 2.7 % (0.7 %) 6.6 %
Property NOI $ 66,018 $ 25,728 $ 67,569 $ 4,578 $ 163,893 $
61,347 $ 22,064 $ 65,791 $ 4,608 $ 153,810 Less: Non-cash straight
line rent adjustments 1,148 - 3,460 137 4,745 1,251 - 3,803 137
5,191 Lease value amortization - - 1,248 55 1,303 - - 1,123 55
1,178 Lease termination fee amortization - - - - - - - 163 - 163
Non-cash amortization included in property operating expenses (3)
- - 199 -
199 - - - -
- Cash Basis NOI $ 64,870 $ 25,728 $
62,662 $ 4,386 $ 157,646 $ 60,096 $ 22,064
$ 60,702 $ 4,416 $ 147,278 Cash Basis NOI
change 7.9 % 16.6 % 3.2 % (0.7 %) 7.0 %
Reconciliation of
NOI to Same Property NOI: Property NOI $ 66,018 $ 25,728 $
67,569 $ 4,578 $ 163,893 $ 61,347 $ 22,064 $ 65,791 $ 4,608 $
153,810 Less: NOI not included in same property 10,261 4,467 1,795
- 16,523 6,032 2,477 (13 ) - 8,496
Same property NOI (4) $
55,757 $ 21,261 $ 65,774 $ 4,578 $
147,370 $ 55,315 $ 19,587 $ 65,804 $ 4,608 $
145,314 Same property NOI change 0.8 % 8.5 % (0.0 %) (0.7 %)
1.4 %
Reconciliation of Same Property NOI to Same
Property Cash Basis NOI: Same property NOI (4) $ 55,757 $
21,261 $ 65,774 $ 4,578 $ 147,370 $ 55,315 $ 19,587 $ 65,804 $
4,608 $ 145,314 Less: Non-cash straight line rent adjustments 96 -
3,280 137 3,513 444 - 3,803 137 4,384 Lease value amortization - -
1,185 55 1,240 - - 1,123 55 1,178 Lease termination fee
amortization - - - - - - - 163 - 163 Non-cash amortization included
in property operating expenses (3) - -
199 - 199 -
- - - - Same property
cash basis NOI (4) $ 55,661 $ 21,261 $ 61,110
$ 4,386 $ 142,418 $ 54,871 $ 19,587 $ 60,715
$ 4,416 $ 139,589 Same property cash basis NOI change
1.4 % 8.5 % 0.7 % (0.7 %) 2.0 %
(1) See above for the calculation of NOI and a reconciliation of
that amount to net income determined in accordance with GAAP, and
for a definition of NOI and Cash Basis NOI, a description of why
management believes they are appropriate supplemental measures and
a description of how management uses these measures. Excludes
properties classified in discontinued operations.(2) Includes the
operating results of certain properties that offer wellness,
fitness and spa services to members.(3) SNH recorded a liability
for the amount by which the estimated fair value for accounting
purposes exceeded the price SNH paid for its investment in RMR
common stock in June 2015. A portion of this liability is being
amortized on a straight line basis through December 31, 2035 as a
reduction to property management fees, which are included in
property operating expenses.(4) Consists of properties owned
continuously since April 1, 2015.
SENIOR HOUSING PROPERTIES TRUST Calculation and
Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same
Property Cash Basis NOI by Segment (1) (dollars in
thousands) (unaudited) For the Six
Months Ended June 30, 2016 For the Six Months Ended
June 30, 2015 Calculation of NOI and Cash Basis NOI:
Triple NetLeased
SeniorLivingCommunities
ManagedSenior
LivingCommunities
MOBs Non-Segment (2)
Total
Triple NetLeased
SeniorLivingCommunities
ManagedSenior
LivingCommunities
MOBs Non-Segment (2)
Total Rental income / residents fees and services $ 131,749
$ 194,323 $ 184,559 $ 9,111 $ 519,742 $
116,598 $ 174,649 $ 175,592 $ 9,139 $ 475,978
Property operating expenses (786 ) (143,820 )
(50,816 ) - (195,422 ) -
(132,195 ) (47,191 ) - (179,386 ) Property net
operating income (NOI) $ 130,963 $ 50,503 $ 133,743
$ 9,111 $ 324,320 $ 116,598 $ 42,454 $
128,401 $ 9,139 $ 296,592 NOI change 12.3 % 19.0 %
4.2 % (0.3 %) 9.3 % Property NOI $ 130,963 $ 50,503 $
133,743 $ 9,111 $ 324,320 $ 116,598 $ 42,454 $ 128,401 $ 9,139 $
296,592 Less: Non-cash straight line rent adjustments 2,320 - 6,711
275 9,306 1,302 - 7,122 275 8,699 Lease value amortization - -
2,448 110 2,558 - - 2,266 110 2,376 Lease termination fee
amortization - - 42 - 42 - - 268 - 268 Non-cash amortization
included in property operating expenses (3) -
- 398 - 398
- - - - - Cash
Basis NOI $ 128,643 $ 50,503 $ 124,144 $ 8,726
$ 312,016 $ 115,296 $ 42,454 $ 118,745
$ 8,754 $ 285,249 Cash Basis NOI change 11.6 % 19.0 % 4.5 %
(0.3 %) 9.4 %
Reconciliation of NOI to Same Property
NOI: Property NOI $ 130,963 $ 50,503 $ 133,743 $ 9,111 $
324,320 $ 116,598 $ 42,454 $ 128,401 $ 9,139 $ 296,592 Less: NOI
not included in same property 19,563 8,180 19,196 - 46,939 6,523
2,520 14,583 - 23,626
Same property NOI (4) $ 111,400
$ 42,323 $ 114,547 $ 9,111 $ 277,381 $
110,075 $ 39,934 $ 113,818 $ 9,139 $ 272,966
Same property NOI change 1.2 % 6.0 % 0.6 % (0.3 %) 1.6 %
Reconciliation of Same Property NOI to Same Property Cash Basis
NOI: Same property NOI (4) $ 111,400 $ 42,323 $ 114,547 $ 9,111
$ 277,381 $ 110,075 $ 39,934 $ 113,818 $ 9,139 $ 272,966 Less:
Non-cash straight line rent adjustments 188 - 5,225 275 5,688 506 -
5,863 275 6,644 Lease value amortization - - 2,367 110 2,477 - -
2,283 110 2,393 Lease termination fee amortization - - 42 - 42 - -
268 - 268 Non-cash amortization included in property operating
expenses (3) - - 351
- 351 - - -
- - Same property cash basis NOI (4) $
111,212 $ 42,323 $ 106,562 $ 8,726 $
268,823 $ 109,569 $ 39,934 $ 105,404 $ 8,754 $
263,661 Same property cash basis NOI change 1.5 % 6.0 % 1.1
% (0.3 %) 2.0 %
(1) See above for the calculation of NOI and a reconciliation of
that amount to net income determined in accordance with GAAP, and
for a definition of NOI and Cash Basis NOI, a description of why
management believes they are appropriate supplemental measures and
a description of how management uses these measures. Excludes
properties classified in discontinued operations.(2) Includes the
operating results of certain properties that offer wellness,
fitness and spa services to members.(3) SNH recorded a liability
for the amount by which the estimated fair value for accounting
purposes exceeded the price SNH paid for its investment in RMR
common stock in June 2015. A portion of this liability is being
amortized on a straight line basis through December 31, 2035 as a
reduction to property management fees, which are included in
property operating expenses.(4) Consists of properties owned
continuously since January 1, 2015.
SENIOR HOUSING PROPERTIES TRUST
CONDENSED CONSOLIDATED BALANCE
SHEETS
(amounts in thousands)
(unaudited)
Balance Sheet:
June 30, December
31, 2016 2015
ASSETS
Real estate properties $ 7,655,032 $ 7,456,940 Accumulated
depreciation (1,236,109 ) (1,147,540 ) 6,418,923
6,309,400 Cash and cash equivalents 25,633 37,656 Restricted cash
7,026 6,155 Acquired real estate leases and other intangible
assets, net 556,845 604,286 Other assets, net 257,340
202,593 Total assets $ 7,265,767 $ 7,160,090
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Unsecured revolving credit facility $ 749,000 $ 775,000 Unsecured
term loans, net 546,681 546,305 Senior unsecured notes, net
1,721,306 1,478,536 Secured debt and capital leases, net 647,176
679,295 Accrued interest 18,433 16,974 Assumed real estate lease
obligations, net 111,712 115,363 Other liabilities 185,891
188,857 Total liabilities 3,980,199 3,800,330
Total shareholders’ equity 3,285,568
3,359,760 Total liabilities and shareholders’ equity $
7,265,767 $ 7,160,090
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest on the Nasdaq.
No shareholder, Trustee or officer is
personally liable for any act or obligation of the Trust.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160805005152/en/
Senior Housing Properties TrustBrad Shepherd,
617-796-8234Director, Investor Relationswww.snhreit.com
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Aug 2024 to Sep 2024
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Sep 2023 to Sep 2024