Senior Housing Properties Trust (NYSE: SNH) today announced its
financial results for the quarter ended March 31, 2009, as
follows:
Results for the quarter ended March 31, 2009:
Net income was $31.5 million, or $0.27 per share, for the
quarter ended March 31, 2009, compared to net income of $23.3
million, or $0.26 per share, for the quarter ended March 31,
2008.
Funds from operations, or FFO, for the quarter ended March 31,
2009 was $52.1 million, or $0.44 per share. This compares to FFO
for the quarter ended March 31, 2008 of $38.3 million, or $0.42 per
share.
The weighted average number of common shares outstanding totaled
117.9 million and 91.1 million for the quarters ended March 31,
2009 and 2008, respectively.
A reconciliation of net income determined according to U.S.
generally accepted accounting principles, or GAAP, to FFO follows
later in this press release.
Investing Activities:
In May 2008, we entered into a series of agreements to acquire
48 medical office, clinic and biotech laboratory buildings, or
MOBs, from HRPT Properties Trust, or HRP, an affiliate, for an
aggregate purchase price of approximately $565.0 million. To date,
we have acquired 38 of these buildings for approximately $366.0
million, excluding closing costs. We funded these acquisitions
using cash on hand, proceeds from equity issuances, borrowings
under our revolving credit facility and by assuming three mortgage
loans on two properties, totaling $10.8 million with a weighted
average interest rate of 7.1% per annum and a weighted average
maturity in 2018. One of the remaining buildings with an allocated
value of $3.0 million is no longer subject to our purchase
agreement. The remaining nine buildings are scheduled to close in
2010, but we and HRP may mutually agree to accelerate the closings
of these acquisitions.
Conference Call:
On Wednesday, May 6, 2009, at 1:00 p.m. Eastern Time, David J.
Hegarty, President and Chief Operating Officer, and Richard A.
Doyle, Chief Financial Officer, will host a conference call to
discuss the results for the first quarter ended March 31, 2009. The
conference call telephone number is 800-239-9838. Participants
calling from outside the United States and Canada should dial
913-312-1294. 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 4:00 p.m. Eastern Time, Wednesday, May
13, 2009. To hear the replay, dial 719-457-0820. The replay pass
code is 2216684.
A live audio web cast of the conference call will also be
available in listen only mode on the SNH website. Participants
wanting to access the webcast should visit the website about five
minutes before the call. The archived webcast will be available for
replay on the SNH website for about one week after the call.
Supplemental Data:
A copy of SNH�s First Quarter 2009 Supplemental Operating and
Financial Data is available for download from the SNH website,
www.snhreit.com.
Senior Housing Properties Trust is a real estate investment
trust, or REIT, that owns 272 properties located in 34 states and
Washington, D.C. SNH is headquartered in Newton, Massachusetts.
Senior Housing Properties
Trust
Financial Information
(in thousands, except per share
data)
� �
Income Statement:
�
Quarter Ended March 31,
2009
2008
Revenues: Rental income $68,377 $49,039 Interest and other income
208 514 Total revenues 68,585 49,553 Expenses: Property operating
expenses 2,955 - Interest 10,776 9,518 Depreciation 18,389 13,023
Acquisition costs (1) 112 - General and administrative 4,820 3,696
Total expenses 37,052 26,237 � Net income $31,533 $23,316 �
Weighted average shares outstanding 117,853 91,080 Per share data:
Net income $0.27 $0.26
Balance Sheet:
� � �
At March 31, 2009
At December 31,
2008
Assets
Real estate properties $2,838,751 $2,807,256 Less accumulated
depreciation 398,946 381,339 2,439,805 2,425,917 Cash and cash
equivalents 5,566 5,990 Restricted cash 4,777 4,344 Deferred
financing fees, net 5,303 5,068 Acquired real estate leases, net
30,636 30,546 Other assets 22,455 25,009 Total assets $2,508,542
$2,496,874 �
Liabilities and Shareholders� Equity
Unsecured revolving credit facility $181,000 $257,000 Senior
unsecured notes, net of discount 322,053 322,017 Secured debt and
capital leases 150,665 151,416 Total debt 653,718 730,433 Acquired
real estate lease obligations, net 8,166 7,974 Other liabilities
27,259 27,109 Total liabilities 689,143 765,516 Shareholders�
equity 1,819,399 1,731,358 Total liabilities and shareholders�
equity $2,508,542 $2,496,874
(1) Acquisition costs are expensed under Statement of Financial
Accounting Standards No. 141(R), �Business Combinations�,
commencing January 1, 2009.
Senior Housing Properties
Trust
Funds from Operations
(in thousands, except per share
data)
� �
Calculation of Funds from
Operations (FFO) (1):
�
Quarter Ended March 31,
2009
2008
Net income $31,533 $23,316 Add: Depreciation expense 18,389 13,023
Acquisition costs (2)
112 - Deferred percentage rent (3) 2,100 1,950 FFO $52,134 $38,289
� Weighted average shares outstanding 117,853 91,080 � FFO per
share $0.44 $0.42 Distributions declared $0.35 $0.35
(1) We consider FFO to be an important measure of our
performance along with net income and cash flow from operating,
investing and financing activities. We believe that FFO provides
useful information to investors because by excluding the effects of
certain historical amounts, such as depreciation expense,
acquisition costs and gain on sale of properties, FFO can
facilitate a comparison of performance during different periods and
of operating performance among REITs. FFO does not represent cash
generated by operating activities in accordance with U.S. generally
accepted accounting principles, or GAAP, and should not be
considered an alternative to net income or cash flow from operating
activities as a measure of financial performance and liquidity.
FFO, as defined by the National Association of Real Estate
Investment Trusts, or NAREIT, represents net income (computed in
accordance with GAAP), plus real estate depreciation and
amortization (excluding amortization of deferred financing fees).
Our calculation of FFO differs from NAREIT�s definition of FFO
because we include deferred percentage rent in FFO as discussed in
Note 3 below and we exclude acquisition costs as described in Note
2 below. Other companies may calculate FFO differently than we
do.
(2) Acquisition costs are expensed under Statement of Financial
Accounting Standards No. 141(R), �Business Combinations�,
commencing January 1, 2009.
(3) Our percentage rents are generally calculated on an annual
basis. We recognize percentage rental income received during the
first, second and third quarters in the fourth quarter when all
contingencies related to percentage rents are satisfied. Although
recognition of revenue is deferred until the fourth quarter, our
FFO calculation for the first three quarters includes estimated
amounts of deferred percentage rents with respect to those periods.
The fourth quarter calculation of FFO excludes the amounts
recognized during the first three quarters.
WARNING CONCERNING FORWARD LOOKING
STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS.
WHENEVER WE USE WORDS SUCH AS �BELIEVE�, �EXPECT�, �ANTICIPATE�,
�INTEND�, �PLAN�, �ESTIMATE� OR SIMILAR EXPRESSIONS, WE ARE MAKING
FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE
BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD
LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.
OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR
IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS
FACTORS. FOR EXAMPLE, THIS PRESS RELEASE STATES THAT WE HAVE AGREED
TO PURCHASE MEDICAL OFFICE, CLINIC AND BIOTECH LABORATORY
BUILDINGS. OUR OBLIGATIONS TO COMPLETE THE CURRENTLY PENDING
PURCHASES ARE SUBJECT TO VARIOUS CONDITIONS TYPICAL OF LARGE
COMMERCIAL REAL ESTATE PURCHASES. AS A RESULT OF ANY FAILURE OF
THESE CONDITIONS, SOME OF THE PROPERTIES MAY NOT BE PURCHASED OR
SOME OF THESE PURCHASES MAY BE ACCELERATED OR DELAYED.
OTHER IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE IN OUR FORWARD LOOKING STATEMENTS ARE
DESCRIBED MORE FULLY UNDER �ITEM 1A. RISK FACTORS� IN OUR ANNUAL
REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2008.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING
STATEMENTS.
EXCEPT AS REQUIRED BY LAW, WE DO NOT INTEND TO UPDATE OR CHANGE
ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION,
FUTURE EVENTS OR OTHERWISE.
A Maryland Real Estate Investment
Trust with transferable shares of beneficial interest listed on the
New York Stock Exchange. No shareholder, Trustee or officer is
personally liable for any act or obligation of the Trust.
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