SNH Buys Three Properties for $31.2 Million
October 02 2006 - 9:15AM
Business Wire
Senior Housing Properties Trust (NYSE: SNH) today announced it has
acquired three senior living properties for $31.2 million.
Simultaneously, SNH entered a long term lease arrangement with Five
Star Quality Care, Inc. (AMEX: FVE) for these same properties. The
rent payable by FVE to SNH for these three communities will be
$2,621,000 per year, creating an initial return of 8.4% per annum,
plus future rent escalators based upon increases in gross revenues
at the facilities. These communities will be added to a combination
lease for 109 communities from SNH to FVE which has a current term
ending in 2020, plus tenant renewal options thereafter. The three
properties that SNH has acquired have a total of 304 living units
and are summarily described as follows: Type of Property Units
�Private Pay Revenues Location IL AL SNF Total Savannah, GA CCRC
112� 42� 40� 194� 93% Oxford, MS AL 0� 55� 0� 55� 100% Southhaven,
MS AL 0� 55� 0� 55� 100% TOTAL 112� 152� 40� 304� � CCRC means
continuing care retirement community. IL means independent living.
AL means assisted living. SNF means skilled nursing facility.
Private Pay Revenues means revenues which are not Medicare or
Medicaid. SNH has funded this transaction by drawing under its
revolving bank credit facility and by assuming a pre-existing
mortgage on the Savannah, GA property for approximately $19
million. Senior Housing Properties Trust is a real estate
investment trust, or REIT, that owns 196 healthcare and senior
living properties located in 33 states. SNH is headquartered in
Newton, Massachusetts. Senior Housing Properties Trust (NYSE: SNH)
today announced it has acquired three senior living properties for
$31.2 million. Simultaneously, SNH entered a long term lease
arrangement with Five Star Quality Care, Inc. (AMEX: FVE) for these
same properties. The rent payable by FVE to SNH for these three
communities will be $2,621,000 per year, creating an initial return
of 8.4% per annum, plus future rent escalators based upon increases
in gross revenues at the facilities. These communities will be
added to a combination lease for 109 communities from SNH to FVE
which has a current term ending in 2020, plus tenant renewal
options thereafter. The three properties that SNH has acquired have
a total of 304 living units and are summarily described as follows:
-0- *T Units Private Type of Pay Location Property IL AL SNF Total
Revenues ------------------------------ --------- ---- ---- ---
----- --------- Savannah, GA CCRC 112 42 40 194 93% Oxford, MS AL 0
55 0 55 100% Southhaven, MS AL 0 55 0 55 100% TOTAL 112 152 40 304
CCRC means continuing care retirement community. IL means
independent living. AL means assisted living. SNF means skilled
nursing facility. Private Pay Revenues means revenues which are not
Medicare or Medicaid. *T SNH has funded this transaction by drawing
under its revolving bank credit facility and by assuming a
pre-existing mortgage on the Savannah, GA property for
approximately $19 million. Senior Housing Properties Trust is a
real estate investment trust, or REIT, that owns 196 healthcare and
senior living properties located in 33 states. SNH is headquartered
in Newton, Massachusetts.
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