First Quarter Net Income Attributable to
Common Shareholders of $0.14 Per Share
First Quarter Normalized FFO of $0.46 Per
Share
Senior Housing Properties Trust (Nasdaq: SNH) today announced
its financial results for the quarter ended March 31,
2017.
“In the first quarter of 2017, we continued
to execute our strategy of disciplined capital allocation,
highlighted by our first joint venture transaction,” said David
Hegarty, President and Chief Operating Officer. “This transaction
allowed us to showcase the value of a portion of our portfolio,
reduce our concentration risk by tenant and asset, decrease our
leverage and demonstrate our ability to access cost efficient
capital. Also, during the quarter we acquired one medical office
building for $15 million and continued to invest capital in our
existing senior living properties in order to remain competitive
with new supply.”
Results for the Quarter Ended March 31, 2017:
Net income attributable to common shareholders was $32.2
million, or $0.14 per diluted share, for the quarter ended
March 31, 2017, compared to $31.3 million, or $0.13 per
diluted share, for the quarter ended March 31, 2016. This
increase in net income attributable to common shareholders is
primarily the result of acquisitions since January 1, 2016 and a
loss on impairment of assets recognized for the quarter ended March
31, 2016, partially offset by an increase in interest expense.
Normalized funds from operations, or Normalized FFO, were $108.4
million and $110.3 million, respectively, or $0.46 per diluted
share, for each of the quarters ended March 31, 2017 and
March 31, 2016.
Cash basis net operating income, or Cash Basis NOI, was $158.6
million for the quarter ended March 31, 2017, compared to
$154.4 million for the quarter ended March 31, 2016, which
represents an increase of 2.7%. The increase in Cash Basis NOI of
$4.2 million is primarily the result of acquisitions since January
1, 2016.
Reconciliations of net income attributable to common
shareholders 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 March 31, 2017 and
2016 appear later in this press release. Reconciliations of net
income determined in accordance with GAAP to net operating income,
or NOI, and Cash Basis NOI for the quarters ended March 31,
2017 and 2016 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 March 31, 2017 and 2016 appear
later in this press release.
Portfolio Operating Results:
For the quarter ended March 31, 2017, 41.3% of SNH’s NOI
came from 120 properties leased to medical providers, medical
related businesses, clinics and biotech laboratory tenants, or
MOBs, with 11.6 million leasable square feet. As of March 31,
2017, 96.4% of SNH’s MOB square feet were leased compared to 95.8%
as of March 31, 2016. Same property occupancy at SNH’s MOBs
decreased to 96.2% as of March 31, 2017 from 96.3% as of
March 31, 2016. SNH’s MOB same property Cash Basis NOI
increased by $0.5 million and same property NOI decreased by $0.5
million for the quarter ended March 31, 2017 compared to the
quarter ended March 31, 2016.
For the quarter ended March 31, 2017, 41.1% of SNH’s NOI
came from 236 triple net leased senior living communities with
26,220 living units. Occupancy at triple net leased senior living
communities and same property triple net leased senior living
communities decreased to 85.0% for the most recently available 12
month period, compared to 85.4% for the comparable period last
year(1). Same property Cash Basis NOI and same property NOI from
triple net leased senior living communities increased by $1.0
million and $0.7 million, respectively, for the quarter ended
March 31, 2017 compared to the quarter ended March 31,
2016.
For the quarter ended March 31, 2017, 14.8% of SNH's NOI
came from 68 managed senior living communities with 8,798 living
units. Occupancy at managed senior living communities was 86.0% for
the quarter ended March 31, 2017, compared to 87.5% for the
quarter ended March 31, 2016. Same property occupancy at
managed senior living communities owned and managed by the same
operator continuously since January 1, 2016 was 86.1% for the
quarter ended March 31, 2017, compared to 87.2% for the
quarter ended March 31, 2016. Same property average monthly
rates increased by 1.8% to $4,349 for the quarter ended
March 31, 2017 compared to the quarter ended March 31,
2016. Same property Cash Basis NOI and same property NOI from
managed senior living communities each decreased by 3.1% for the
quarter ended March 31, 2017 compared to the quarter ended
March 31, 2016.
For the quarter ended March 31, 2017, consolidated same
property Cash Basis NOI increased to $152.3 million compared to
$151.5 million for the quarter ended March 31, 2016, and
consolidated same property NOI decreased to $156.8 million compared
to $157.3 million for the quarter ended March 31, 2016.
Joint Venture Transaction:
In March 2017, SNH entered into a joint venture with a sovereign
institutional investor for one of SNH's MOBs (two buildings)
located in Boston, Massachusetts. The investor contributed
approximately $260.9 million for a 45% equity interest in the joint
venture, and SNH retained the remaining 55% equity interest in the
joint venture. The investment amount was based on a property
valuation of $1.2 billion, less $620.0 million of existing mortgage
debts on the property at the time of the investment.
The property included in the joint venture was acquired by SNH
in May 2014 for $1.1 billion and consists of two 15 story, class A
LEED® Gold Certified life-science buildings with structured
parking located in Boston’s Seaport District. The two buildings are
95% leased to Vertex Pharmaceuticals, Inc. through 2028 and include
1.1 million rentable square feet of lab, corporate office and
street level retail space. SNH used the net proceeds from this
transaction to repay a portion of the amounts outstanding under its
revolving credit facility.
Financing Activities:
In April and May 2017, SNH prepaid, at an aggregate premium to
par of approximately $5.4 million, plus accrued interest,
approximately $288.4 million of secured debt with a weighted
average annual interest rate of 6.69%. SNH funded these prepayments
with cash on hand and borrowings under its revolving credit
facility. In May 2017, SNH gave notice of its intention to prepay,
at par plus accrued interest, approximately $8.8 million of secured
debt with an annual interest rate of 5.95%; SNH expects to make
this prepayment in June 2017.
Investment Activities:
In January 2017, SNH acquired one MOB for approximately $15.1
million, excluding closing costs. This MOB contains approximately
117,000 square feet. It is located in Kansas, is primarily leased
to the University of Kansas Health System and it has a remaining
lease term of approximately 10.6 years as of the date of
acquisition.
During the quarter ended March 31, 2017, SNH invested
approximately $11.6 million on improvements at its owned senior
living communities that will generate additional rent under the
terms of its existing senior living communities’ leases. SNH
regularly makes additional investments at its owned MOBs and its
owned and managed senior living communities that it expects may
increase its operating revenue from those properties.
Conference Call:
On Friday, May 5, 2017, at 1:00 p.m. Eastern Time,
President and Chief Operating Officer, David Hegarty, and Chief
Financial Officer and Treasurer, Rick Siedel, will host a
conference call to discuss SNH's first quarter 2017 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, May 12, 2017. To hear the replay, dial (412) 317-0088.
The replay pass code is 10104367.
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 following the call for about one week.
The transcription, recording and retransmission in any way of
SNH’s first quarter conference call are strictly prohibited without
the prior written consent of SNH.
Supplemental Data:
A copy of SNH’s First Quarter 2017 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 and Normalized FFO,
and NOI and Cash Basis NOI and reconciliations of net income
attributable to common shareholders and net income, respectively,
determined in accordance with GAAP to these amounts.
(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. As a result, occupancy
ratios presented for triple net leased senior living communities
are for the 12 months ended December 31, 2016 and 2015. SNH has not
independently verified tenant 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”, "WILL", “MAY” AND NEGATIVES OR
DERIVATIVES OF THESE 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:
- MR. HEGARTY'S STATEMENT IN THIS PRESS
RELEASE THAT SNH CONTINUED TO INVEST CAPITAL IN ITS EXISTING
PROPERTIES DURING THE FIRST QUARTER OF 2017 TO REMAIN COMPETITIVE
WITH NEW SUPPLY MAY IMPLY THAT SNH WILL CONTINUE TO INVEST CAPITAL
IN ITS PROPERTIES. HOWEVER, SNH MAY REDUCE OR DISCONTINUE SUCH
INVESTMENTS, AND SNH'S PROPERTIES MAY NOT BE ABLE TO SUCCESSFULLY
COMPETE WITH NEWER PROPERTIES DESPITE ITS CAPITAL INVESTMENTS.
- MR. HEGARTY'S STATEMENT IN THIS PRESS
RELEASE THAT SNH'S RECENT JOINT VENTURE TRANSACTION DECREASED SNH
LEVERAGE MAY IMPLY THAT SNH’S LEVERAGE WILL BE SUSTAINED AT A
REDUCED LEVEL. SNH'S DEBT LEVERAGE MAY INCREASE IN THE FUTURE.
- THE STATEMENT IN THIS PRESS RELEASE
THAT SNH EXPECTS THE ADDITIONAL INVESTMENTS IT REGULARLY MAKES AT
ITS MOBS AND MANAGED SENIOR LIVING COMMUNITIES MAY INCREASE
OPERATING REVENUE FROM THOSE PROPERTIES. HOWEVER, THERE CAN BE NO
ASSURANCE THAT OPERATING REVENUE FROM THOSE PROPERTIES WILL
INCREASE OR REMAIN AT CURRENT LEVELS OR THAT FUTURE INVESTMENTS IN
SNH’S PROPERTIES WILL INCREASE OPERATING REVENUE FROM THOSE
PROPERTIES. IN FACT, SNH’S REVENUES MAY DECLINE.
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 March 31, 2017
2016 Revenues: Rental income $ 166,443 $
161,421 Residents fees and services 98,118 96,954
Total revenues 264,561 258,375 Expenses: Property operating
expenses 101,057 97,949 Depreciation and amortization 73,175 71,223
General and administrative 15,083 10,863 Acquisition and certain
other transaction related costs 292 439 Impairment of assets —
7,390 Total expenses 189,607 187,864
Operating income 74,954 70,511 Dividend income 659 —
Interest and other income 120 64 Interest expense (43,488 ) (39,280
) Loss on early extinguishment of debt — (6 )
Income from continuing operations before
income tax expense
and equity in earnings of an investee
32,245 31,289 Income tax expense (92 ) (94 ) Equity in earnings of
an investee 128 77 Net income 32,281 31,272 Net
income attributable to noncontrolling interest (126 ) — Net
income attributable to common shareholders $ 32,155 $ 31,272
Weighted average common shares outstanding (basic)
237,391 237,315 Weighted average common shares
outstanding (diluted) 237,416 237,329
Per common share
data (basic and diluted):
Net income attributable to common shareholders $ 0.14 $ 0.13
SENIOR HOUSING PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF FFO AND
NORMALIZED FFO
(amounts in thousands, except per share
data)
(unaudited)
Calculation of FFO and Normalized
FFO (1):
Three Months EndedMarch
31,
2017 2016 Net income attributable to
common shareholders $ 32,155 $ 31,272 Depreciation and amortization
expense 73,175 71,223 Noncontrolling interest's share of net FFO
adjustments (456 ) — Impairment of assets — 7,390 FFO
104,874 109,885 Estimated business management incentive fees
(2) 3,266 — Acquisition and certain other transaction related costs
292 439 Loss on early extinguishment of debt — 6 Normalized
FFO $ 108,432 $ 110,330 Weighted average common
shares outstanding (basic) 237,391 237,315 Weighted average
common shares outstanding (diluted) 237,416 237,329
Per common share
data (basic and diluted):
Net income attributable to common shareholders $ 0.14 $ 0.13
FFO $ 0.44 $ 0.46 Normalized FFO $ 0.46 $ 0.46
Distributions declared $ 0.39 $ 0.39 (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
attributable to common shareholders, 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 and the difference between net income attributable to
common shareholders and FFO attributable to noncontrolling
interest, 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 be payable
when all contingencies for determining such fees are determined at
the end of the calendar year, and SNH excludes acquisition and
certain other transaction related costs such as legal and
professional fees associated with SNH's acquisition and disposition
activities, gains and losses on early extinguishment of debt, if
any, and Normalized FFO from noncontrolling interest, net of FFO,
if any. SNH considers FFO and Normalized FFO to be appropriate
supplemental measures of operating performance for a REIT, along
with net income attributable to common shareholders and operating
income. SNH believes that FFO and Normalized FFO provide useful
information to investors, because by excluding the effects of
certain historical amounts, such as depreciation and amortization
expense, FFO and Normalized FFO may facilitate a comparison of
SNH's 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, net income attributable to common shareholders 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, net income attributable
to common shareholders and operating income as presented in SNH’s
Condensed Consolidated Statements of Income. Other REITs and real
estate companies may calculate FFO and Normalized FFO differently
than SNH does. (2) Incentive fees under SNH’s business
management agreement are payable after the end of each calendar
year, are calculated based on common share total return, as
defined, and are included in general and administrative expense in
SNH’s Condensed Consolidated Statements of Income. In calculating
net income attributable to common shareholders in accordance with
GAAP, SNH recognizes estimated business management incentive fee
expense, if any, in the first, second and third quarters. Although
SNH recognizes this expense, if any, in the first, second and third
quarters for purposes of calculating net income attributable to
common shareholders, SNH does not include these amounts in the
calculation of Normalized FFO until the fourth quarter, when the
amount of the business management incentive fee expense for the
calendar year, if any, is determined.
SENIOR HOUSING PROPERTIES TRUST
CALCULATION AND RECONCILIATION OF NET
OPERATING INCOME (NOI) AND CASH BASIS NOI
(amounts in thousands)
(unaudited)
Three Months Ended March 31, 2017
2016
Calculation of
NOI and Cash Basis NOI(1):
Revenues: Rental income $ 166,443 $ 161,421 Residents fees and
services 98,118 96,954 Total revenues 264,561 258,375
Property operating expenses (101,057 ) (97,949 ) Property net
operating income (NOI): 163,504 160,426 Non-cash straight line rent
adjustments (3,429 ) (4,561 ) Lease value amortization (1,291 )
(1,254 ) Lease termination fee amortization — (42 ) Non-cash
amortization included in property operating expenses(2) (199 ) (199
) Cash Basis NOI $ 158,585 $ 154,370
Reconciliation of
Net Income to Cash Basis NOI:
Net income $ 32,281 $ 31,272 Equity in earnings of an
investee (128 ) (77 ) Income tax expense 92 94 Loss on early
extinguishment of debt — 6 Interest expense 43,488 39,280 Interest
and other income (120 ) (64 ) Dividend income (659 ) —
Operating income 74,954 70,511 Impairment of assets — 7,390
Acquisition and certain other transaction related costs 292 439
General and administrative expense 15,083 10,863 Depreciation and
amortization expense 73,175 71,223 Property NOI
163,504 160,426 Non-cash amortization included in property
operating expenses(2) (199 ) (199 ) Lease termination fee
amortization — (42 ) Lease value amortization (1,291 ) (1,254 )
Non-cash straight line rent adjustments (3,429 ) (4,561 ) Cash
Basis NOI $ 158,585 $ 154,370 (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. 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
and operating income as presented in SNH’s Condensed Consolidated
Statements of Income. 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 March 31, 2017 For the
Three Months Ended March 31, 2016 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 $ 67,252 $ 98,118 $ 94,646 $ 4,545 $ 264,561 $ 65,308 $
96,954 $ 91,582 $ 4,531 $ 258,375 Property operating expenses —
(73,880 ) (27,177 ) — (101,057 ) (363 ) (72,178 )
(25,408 ) — (97,949 ) Property net operating income (NOI) $
67,252 $ 24,238 $ 67,469 $ 4,545 $
163,504 $ 64,945 $ 24,776 $ 66,174 $
4,531 $ 160,426 NOI change 3.6 % (2.2 )% 2.0 % 0.3 %
1.9 % Property NOI $ 67,252 $ 24,238 $ 67,469 $ 4,545 $
163,504 $ 64,945 $ 24,776 $ 66,174 $ 4,531 $ 160,426 Less: Non-cash
straight line rent adjustments 776 — 2,515 138 3,429 1,172 — 3,252
137 4,561 Lease value amortization — — 1,236 55 1,291 — — 1,199 55
1,254 Lease termination fee amortization — — — — — — — 42 — 42
Non-cash amortization included in property operating expenses (3) —
— 199 — 199 — —
199 — 199 Cash Basis NOI $ 66,476 $
24,238 $ 63,519 $ 4,352 $ 158,585 $
63,773 $ 24,776 $ 61,482 $ 4,339 $
154,370 Cash Basis NOI change 4.2 % (2.2 )% 3.3 % 0.3 % 2.7
%
Reconciliation of NOI to Same Property NOI:
Property NOI $ 67,252 $ 24,238 $ 67,469 $ 4,545 $ 163,504 $ 64,945
$ 24,776 $ 66,174 $ 4,531 $ 160,426 Less: NOI not included in same
property 2,457 1,262 2,964 — 6,683
846 1,060 1,179 — 3,085
Same property NOI (4) $ 64,795 $ 22,976 $ 64,505
$ 4,545 $ 156,821 $ 64,099 $ 23,716
$ 64,995 $ 4,531 $ 157,341 Same
property NOI change 1.1 % (3.1 )% (0.8 )% 0.3 % (0.3 )%
Reconciliation of Same Property NOI to Same Property Cash Basis
NOI: Same property NOI (4) $ 64,795 $ 22,976 $ 64,505 $ 4,545 $
156,821 $ 64,099 $ 23,716 $ 64,995 $ 4,531 $ 157,341 Less: Non-cash
straight line rent adjustments 777 — 2,178 138 3,093 1,106 — 3,282
137 4,525 Lease value amortization — — 1,199 55 1,254 — — 1,082 55
1,137 Non-cash amortization included in property operating expenses
(3) — — 199 — 199 — —
197 — 197 Same property cash basis NOI
(4) $ 64,018 $ 22,976 $ 60,929 $ 4,352
$ 152,275 $ 62,993 $ 23,716 $ 60,434 $
4,339 $ 151,482 Same property cash basis NOI change
1.6 % (3.1 )% 0.8 % 0.3 % 0.5 % (1) See above
for the calculation of NOI and a reconciliation of net income
determined in accordance with GAAP to that amount. 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, please see footnote 1 to the table
included on page 7. (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 and properties owned and
managed continuously by the same operator since January 1, 2016 and
includes our property subject to a joint venture arrangement and
excludes properties classified as held for sale, if any.
SENIOR HOUSING PROPERTIES TRUST
CONDENSED CONSOLIDATED BALANCE
SHEETS
(amounts in thousands)
(unaudited)
March 31,2017
December 31,2016
ASSETS
Real estate properties $ 7,767,756 $ 7,730,523 Accumulated
depreciation (1,376,898 ) (1,328,011 ) 6,390,858 6,402,512
Cash and cash equivalents 32,272 31,749 Restricted cash 3,126 3,829
Acquired real estate leases and other intangible assets, net
496,620 514,446 Other assets, net 297,328 275,218
Total assets $ 7,220,204 $ 7,227,754
LIABILITIES AND
EQUITY
Unsecured revolving credit facility $ 97,000 $ 327,000 Unsecured
term loans, net 547,246 547,058 Senior unsecured notes, net
1,723,484 1,722,758 Secured debt and capital leases, net 1,114,796
1,117,649 Accrued interest 33,522 18,471 Assumed real estate lease
obligations, net 103,521 106,038 Other liabilities 181,611
189,375 Total liabilities 3,801,180 4,028,349 Total
equity 3,419,024 3,199,405 Total liabilities and
equity $ 7,220,204 $ 7,227,754
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed 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/20170505005178/en/
Senior Housing Properties TrustBrad Shepherd,
617-796-8234Director, Investor Relations
Senior Housing Properties (NASDAQ:SNH)
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