-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B05BkVOGlSZ6yWeK2wbVqZda+CZsbYbmprwry20jrjvicU3yP9FZ/U75e2YF7dB3 3NdksBWZ1RNlcmR7GU7bgw== 0000908737-07-000106.txt : 20070228 0000908737-07-000106.hdr.sgml : 20070228 20070228120020 ACCESSION NUMBER: 0000908737-07-000106 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20070228 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070228 DATE AS OF CHANGE: 20070228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENIOR HOUSING PROPERTIES TRUST CENTRAL INDEX KEY: 0001075415 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 043445278 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15319 FILM NUMBER: 07656064 BUSINESS ADDRESS: STREET 1: 400 CENTRE STREET CITY: NEWTON STATE: MA ZIP: 02458 BUSINESS PHONE: 6173323990 8-K 1 snh_8k.htm SNH 8-K SNH_8K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): February 28, 2007

SENIOR HOUSING PROPERTIES TRUST

Maryland
001-15319
04-3445278
(State of organization)
(Commission file number)
(I.R.S. Employer Identification Number)
 
 
400 Centre Street, Newton, Massachusetts 02458

 
617-796-8350
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 28, 2007, Senior Housing Properties Trust, or the Company, issued a press release setting forth the Company’s results of operations and financial condition for the quarter and year ended December 31, 2006 and also provided certain supplemental operating and financial data for the quarter and year ended December 31, 2006. Copies of the Company’s press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d)      Exhibits

The Company hereby furnishes the following exhibits:

99.1
Press Release dated February 28, 2007.
   
99.2
Fourth Quarter 2006 Supplemental Operating and Financial Data.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
SENIOR HOUSING PROPERTIES TRUST
 
By: /s/ David J. Hegarty
   
David J. Hegarty
President and Chief Operating Officer


Date: February 28, 2007
 
 
 
 
 
 
 
 
 
 
 
EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1
 
400 Centre Street, Newton, MA 02458-2076
 
tel: (617) 796-8350 fax: (617) 796-8349

Exhibit 99.1

 
FOR IMMEDIATE RELEASE
  
 
 
Contact:
 
Timothy Bonang
 
Manager of Investor Relations
 
(617) 796-8350
 
www.snhreit.com


Senior Housing Properties Trust Announces Results for the Periods Ended December 31, 2006
 

Newton, MA (February 28, 2007): Senior Housing Properties Trust (NYSE: SNH) today announced its financial results for the quarter and year ended December 31, 2006, as follows:
 
Results for the quarter ended December 31, 2006:

Income from continuing operations was $27.6 million, or $0.37 per share, for the quarter ended December 31, 2006, compared to $15.7 million, or $0.23 per share for the quarter ended December 31, 2005.

Net income for the quarter ended December 31, 2006, was $27.5 million, or $0.37 per share, compared to net income of $20.9 million, or $0.30 per share, for the quarter ended December 31, 2005.

Funds from operations (FFO) for the quarter ended December 31, 2006, was $35.0 million, or $0.47 per share. This compares to FFO for the quarter ended December 31, 2005 of $26.3 million, or $0.38 per share.

Weighted average number of common shares outstanding totaled 74.6 million and 69.4 million for the quarters ended December 31, 2006 and 2005, respectively.

Results for the year ended December 31, 2006:

Income from continuing operations was $66.1 million, or $0.91 per share, for the year ended December 31, 2006, compared to $58.0 million, or $0.84 per share, for the year ended December 31, 2005.

Net income for the year ended December 31, 2006 was $66.1 million, or $0.91 per share, compared to net income of $63.9 million, or $0.93 per share, for the year ended December 31, 2005.

FFO for the year ended December 31, 2006 was $114.0 million, or $1.57 per share. This compares to FFO for the year ended December 31, 2005 of  $103.4 million, or $1.50 per share.

Weighted average number of common shares outstanding totaled 72.5 million and 68.8 million for the years ended December 31, 2006 and 2005, respectively.

Conference Call:
 
On Wednesday, February 28, 2007, at 1:00 p.m. EST, David J. Hegarty, president and chief operating officer, John R. Hoadley, treasurer and chief financial officer, and Rick Doyle, our announced future treasurer and chief financial officer, will host a conference call to discuss the results for the fourth quarter and year ended December 31, 2006. The conference call telephone number is 800-818-5264. Participants calling from outside the United States and Canada should dial 913-981-4910. No pass code is
 
 
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.


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 Tuesday, March 6, 2007. To hear the replay, dial 719-457-0820. The replay pass code is 1290741.

A live audio web cast of the conference call will also be available in listen only mode on the SNH web site. Participants wanting to access the webcast should visit the web site about five minutes before the call. The archived webcast will be available for replay on the SNH web site for about one week after the call.

Supplemental Data:
 
A copy of SNH’s Fourth Quarter 2006 Supplemental Operating and Financial Data is available for download from the SNH web site, www.snhreit.com.
 
Senior Housing Properties Trust is a real estate investment trust, or REIT, that owns 196 senior living properties located in 32 states. SNH is headquartered in Newton, Massachusetts.

 
Senior Housing Properties Trust
Financial Information
(in thousands, except per share data)
 
 Income Statement:
(in thousands, except per share data)

   
Quarter Ended December 31,
  
Year Ended December 31,
  
   
2006
  
2005
  
2006
  
2005
  
Revenues:
                          
Rental income(1)
  
$
54,645
  
$
43,776
  
$
178,372
  
$
161,265
  
Interest and other income
    
400
    
335
    
1,434
    
1,922
  
Total revenues
    
55,045
    
44,111
    
179,806
    
163,187
  
Expenses:
                          
Interest
    
12,269
    
12,048
    
47,020
    
46,633
  
Depreciation
    
11,443
    
11,266
    
44,073
    
43,694
  
General and administrative(2)
    
3,775
    
3,356
    
14,645
    
13,117
  
Impairment of assets
    
-
    
1,762
    
1,420
    
1,762
  
Loss on early extinguishment of debt(3)
    
-
    
-
    
6,526
    
-
  
Total expenses
    
27,487
    
28,432
    
113,684
    
105,206
  
Income from continuing operations
    
27,558
    
15,679
    
66,122
    
57,981
  
(Loss) gain on sale of properties
    
(21
)
  
5,214
    
(21
)
  
5,931
  
Net income
  
$
27,537
  
$
20,893
  
$
66,101
  
$
63,912
  
                           
Weighted average shares outstanding
    
74,641
    
69,445
    
72,529
    
68,757
  
Per share data:
                          
Income from continuing operations
  
$
0.37
  
$
0.23
  
$
0.91
  
$
0.84
  
Net income
  
$
0.37
  
$
0.30
  
$
0.91
  
$
0.93
  


Balance Sheet:
(in thousands)

 
   
At December 31, 2006
  
At December 31, 2005
  
Assets
          
Real estate properties
  
$
1,814,358
  
$
1,686,169
  
Less accumulated depreciation
    
276,507
    
239,031
  
     
1,537,851
    
1,447,138
  
Cash and cash equivalents
    
5,464
    
14,642
  
Restricted cash
    
2,435
    
2,529
  
Deferred financing fees, net
    
8,173
    
10,961
  
Other assets
    
30,851
    
25,371
  
Total assets
  
$
1,584,774
  
$
1,500,641
  
Liabilities and Shareholders’ Equity
              
Unsecured revolving bank credit facility
  
$
112,000
  
$
64,000
  
Senior unsecured notes, net of discount
    
341,673
    
393,938
  
Junior subordinated debentures due 2041
    
-
    
28,241
  
Secured debt and capital leases
    
91,412
    
70,141
  
Total debt
    
545,085
    
556,320
  
Other liabilities
    
20,223
    
21,137
  
Total liabilities
    
565,308
    
577,457
  
Shareholders’ equity
    
1,019,466
    
923,184
  
Total liabilities and shareholders’ equity
  
$
1,584,774
  
$
1,500,641
  
 
(1)  
Rental income for the quarters ended December 31, 2006 and 2005, includes $8.3 million and $2.2 million, respectively, and for the years ended December 31, 2006 and 2005, includes $14.8 million and $8.7 million, respectively, of rental income from two hospitals formerly leased and operated by HealthSouth Corporation, or HealthSouth.

Beginning in 2003 until November 2006, we were involved in two separate litigations with HealthSouth seeking to increase the rent due under an amended lease of two hospitals to HealthSouth and to terminate the amended lease and repossess the hospitals. On November 8, 2006, we and HealthSouth agreed to settle our litigations, to recognize HealthSouth’s lease until September 30, 2006 and to increase the annual rent due under the lease from $8.7 million to $9.9 million for the period from January 2, 2002 to September 30, 2006. As a result of the settlement, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, for periods through September 30, 2006, which we recognized as rental income in the fourth quarter of 2006. On October 1, 2006, Five Star Quality Care Inc., or Five Star, assumed the operations of these two hospitals and began leasing them from us for an annual rent of $10.25 million.

(2)  
Expenses incurred related to the HealthSouth litigation were approximately $260,000 and $600,000, respectively, for the quarters ended December 31, 2006 and 2005, and $1,670,000 and $1,850,000, respectively, for the years ended December 31, 2006 and 2005, and are included in general and administrative expenses.
 
(3)  
On January 9, 2006 we redeemed $52.5 million of our 7 7/8% senior unsecured notes. The loss on early extinguishment of debt includes a $4.1 million redemption premium and a $1.1 million write off of deferred financing fees and unamortized discount related to these senior notes. On June 15, 2006, we redeemed all of our $28.2 million of 10.125% junior subordinated debentures. The loss on early extinguishment of debt includes a $1.3 million write off of unamortized deferred financing fees related to these debentures.
 
 
Senior Housing Properties Trust
Funds from Operations
(in thousands, except per share data)
 

Calculation of Funds from Operations (FFO) (1):
   
Quarter Ended December 31,
  
Year Ended December 31,
  
   
2006
  
2005
  
2006
  
2005
  
Income from continuing operations(2)
  
$
27,558
  
$
15,679
  
$
66,122
  
$
57,981
  
Add:  Depreciation expense
    
11,443
    
11,266
    
44,073
    
43,694
  
Impairment of assets
    
-
    
1,762
    
1,420
    
1,762
  
Loss on early extinguishment of debt
    
-
    
-
    
6,526
    
-
  
Less: Deferred percentage rent(3)
    
(4,016
)
  
(2,402
)
  
-
    
-
  
Loss on early extinguishment of debt settled in cash(4)
    
-
    
-
    
(4,134
)
  
-
  
FFO
  
$
34,985
  
$
26,305
  
$
114,007
  
$
103,437
  
                           
Weighted average shares outstanding
    
74,641
    
69,445
    
72,529
    
68,757
  
                           
FFO per share
  
$
0.47
  
$
0.38
  
$
1.57
  
$
1.50
  
Distributions declared
  
$
0.34
  
$
0.32
  
$
1.32
  
$
1.28
  

 
(1)
 
We compute FFO as shown in the calculation above. This calculation begins with income from continuing operations or, if that amount is the same as net income, with net income. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO because we include deferred percentage rent in FFO as discussed in Note 3 below and we exclude loss on early extinguishment of debt not settled in cash from FFO. We consider FFO to be an appropriate measure of performance for a real estate investment trust, or REIT, 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 costs, such as depreciation expense and gain or loss on sale of properties, FFO can facilitate comparison of current 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 or liquidity. FFO is one important factor considered by our board of trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future performance.
 
(2)
 
Income from continuing operations includes legal expenses incurred related to the HealthSouth litigation of approximately $260,000 and $600,000, respectively, for the quarters ended December 31, 2006 and 2005, and $1,670,000 and $1,850,000, respectively, for the years ended December 31, 2006 and 2005.
 
(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 for purposes of calculating net income, the calculation of FFO for the first three quarters includes estimated amounts with respect to those periods. The fourth quarter FFO calculation excludes the amounts recognized during the first three quarters.
 
(4)
 
FFO for the year ended December 31, 2006, includes a $4.1 million, or $0.06 per share, loss for the cash premium paid for our redemption of $52.5 million of our 7 7/8% senior notes.
 
(END)
 

EX-99.2 3 ex99-2.htm EXHIBIT 99.2 ex99-2
Exhibit 99.2


 





SENIOR HOUSING PROPERTIES TRUST

Fourth Quarter 2006

Supplemental Operating and Financial Data






Unless otherwise noted, all amounts in this report are unaudited.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



TABLE OF CONTENTS


   
Page
     
     
CORPORATE INFORMATION
  
     
 
Company Profile
4
 
Investor Information
5
 
Research Coverage
6
     
FINANCIAL INFORMATION
  
     
 
Key Financial Data
8
 
Consolidated Balance Sheet
9
 
Consolidated Statement of Income
10
 
Consolidated Statement of Cash Flows
11
 
Calculation of EBITDA
12
 
Calculation of Funds from Operations (FFO)
13
 
Debt Summary
14
 
Debt Maturity Schedule
15
 
Leverage Ratios, Coverage Ratios and Public Debt Covenants
16
 
2006 Investments/Dispositions Information
17
 
2006 Financing Activities
18
     
PORTFOLIO INFORMATION
  
     
 
Portfolio Summary by Facility Type and Tenant
20
 
Occupancy by Facility Type and Tenant
21
 
% Private Pay by Facility Type and Tenant
22
 
Rent Coverage by Tenant
23
 
Portfolio Lease Expiration Schedule
24
     


2
 
 
 
 
 
 
 


 


 
 
 
 
 
 

 


CORPORATE INFORMATION

 
 
 
 
 
 
 
 
 
 
 

 



Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
COMPANY PROFILE
 
The Company:
 
Senior Housing Properties Trust, or SNH, is a real estate investment trust, or REIT, which owns independent and assisted living properties, continuing care retirement communities, nursing homes and hospitals located throughout the United States. We are included in a number of stock indices, including the Russell 2000®, the MSCI US REIT Index, FTSE EPRA/NAREIT United States Index and the S&P REIT Composite Index.
 
Management:
 
Senior Housing Properties Trust is managed by Reit Management & Research LLC, or RMR. RMR is a large real estate management company which was founded in 1986 to manage public investments in real estate. As of December 31, 2006, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including approximately 1,000 properties, with more than 93 million square feet, located in 43 states, Washington, DC, Puerto Rico and Ontario, Canada. RMR has over 450 employees in its headquarters and regional offices located throughout the country. In addition to managing SNH, RMR and its affiliates also manage Hospitality Properties Trust, a publicly traded REIT that owns hotels, HRPT Properties Trust, a publicly traded REIT that primarily owns office buildings, and five mutual funds which invest in unaffiliated real estate companies. The public companies managed by RMR and its affiliates had combined total market capitalization of approximately $14 billion as of December 31, 2006. We believe that being managed by RMR is a competitive advantage for SNH because RMR provides SNH with a depth of management and experience which may be unequaled in the real estate industry. We also believe RMR is able to provide management services to SNH at costs that are lower than SNH would have to pay for similar quality services.
  
Strategy:
 
Our present business plan is to maintain an investment portfolio of independent and assisted living properties, continuing care retirement communities and nursing homes and to acquire additional senior living properties primarily for income and secondarily for appreciation potential. Our current growth strategy is generally focused on making portfolio acquisitions of geographically diverse, primarily independent and assisted senior living properties where the majority of the residents pay for occupancy and services with their private resources rather than through government programs. We base our acquisition decisions on the historical and projected operating results of the target properties and the financial strength of the proposed tenants and their guarantors, among other considerations. We also sometimes consider investing in properties other than senior living properties. Our present financial strategy is to maintain a conservative capital structure which limits the amount of debt that we issue. We do not have any investments in joint ventures or partnerships. Also, the majority of our debt is fixed rate, and we have no significant debt maturities until 2012.
 
Stock Exchange Listing:
 
New York Stock Exchange
 
Corporate Headquarters:
 
400 Centre Street
Newton, MA 02458
(t) (617) 796-8350
(f) (617) 796-8349
 
Trading Symbol:
 
Common Shares -- SNH 
 
Senior Unsecured Debt Ratings:
 
Moody's -- Ba2
Standard & Poor's -- BB+
 
Portfolio Data (as of 12/31/06):
      
       
Total properties
   
196
 
Total units / beds
   
24,207
 
Percent of rent from private pay properties
   
84.8%
 (1)
 
Portfolio Concentration by Facility Type (as of 12/31/06):
   
Number of
 
Number of
 
Carrying Value of
       
Annualized
     
   
Properties
 
Units/Beds
 
Investment (2)
 
Percent
   
Current Rent
 
Percent
 
Independent Living (IL) (3)
   
41
   
11,295
 
$
989,442
    
54.6
%
  
$
98,062
    
54.6
%
Assisted Living (AL)
   
95
   
6,679
   
566,708
   
31.2
%
    
54,250
   
30.2
%
Nursing Homes
   
58
   
5,869
   
214,655
   
11.8
%
    
17,006
   
9.5
%
Rehabilitation Hospitals
   
2
   
364
   
43,553
   
2.4
%
    
10,250
   
5.7
%
Total
   
196
   
24,207
 
$
1,814,358
    
100.0
%
  
$
179,568
    
100.0
%
 
Operating Statistics by Tenant:
 
               
Q3 2006
 
   
Number of
 
Number of
 
Annualized
 
Rent
     
Percent
 
Tenant
 
Properties
 
Units/Beds
 
Current Rent
 
Coverage (4)
 
Occupancy (4)
 
Private Pay (4)
 
Five Star / Sunrise (5)
    
30
   
7,275
 
$
65,012
    
1.50x
    
92
%
  
80
%
Five Star
    
114
   
9,424
   
49,139
   
1.53x
    
88
%
  
51
%
Sunrise / Marriott (6)
    
14
   
4,091
   
31,490
   
NA
   
NA
   
NA
 
Five Star Rehabilitation Hospitals (7)
    
2
   
364
   
10,250
   
NA
   
NA
   
NA
 
NewSeasons / IBC (8)
    
10
   
1,019
   
9,289
   
1.14x
    
85
%
  
100
%
Alterra / Brookdale (9)
    
18
   
894
   
7,632
   
2.21x
    
89
%
  
98
%
Genesis HealthCare Corporation
    
1
   
156
   
1,535
   
2.41x
    
96
%
  
24
%
5 Private Companies (combined)
    
7
   
984
   
5,221
   
1.83x
    
88
%
  
26
%
     
196
   
24,207
 
$
179,568
                    
 
(1)
Represents the percentage of SNH's rental income that is derived from properties where the underlying operating revenues are greater than 80% private pay.
(2)
Amounts are before depreciation, but after impairment write downs.
(3)
Properties where the majority of units are independent living apartments are classified as independent living communities.
(4)
All tenant operating data presented are based upon the operating results provided by our tenants for the indicated periods. Rent coverage is calculated as operating cash flow from our tenants’ facility operations, before subordinated charges and capital expenditure reserves, divided by rent payable to us. We have not independently verified our tenants’ operating data.
(5)
These 30 properties are leased to Five Star Quality Care, Inc., or Five Star. Historically, these properties were managed by Sunrise Senior Living Services, Inc., or Sunrise, but effective December 1, 2006, Five Star began managing all 30 of these properties. Prior to that, Sunrise managed seven properties during the third quarter. The rent that Five Star pays to us was subordinate to the management fees paid by Five Star to Sunrise, but is not subordinate to Five Star's internal management costs. For meaningful comparison purposes, the rent coverage presented for this lease is before management fees paid to Sunrise for all 30 properties.
(6)
Marriott International, Inc., or Marriott, guarantees this lease. Sunrise has not filed its Quarterly Reports on Form 10-Q with the Securities and Exchange Commission in 2006 due to an accounting issue. Because we do not know what impact the resolution of this accounting issue may have on the reported performance of our properties, we do not report operating data for this tenant.
(7)
On October 1, 2006, Five Star assumed the operations of two rehabilitation hospitals and began leasing them from us for annual rent of $10.25 million. These hospitals were formerly operated by HealthSouth Corporation, or HealthSouth. Because we do not have reliable information about the operations of the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
(8)
Independence Blue Cross, or IBC, a Pennsylvania health insurer, guarantees this lease.
(9)
Brookdale Senior Living, Inc., or Brookdale, guarantees this lease.
 
4

Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
   
   
INVESTOR INFORMATION
   
   
Board of Trustees
   
Barry M. Portnoy
Gerard M. Martin
Managing Trustee
Managing Trustee
   
   
Frank J. Bailey
Frederick N. Zeytoonjian
Independent Trustee
Independent Trustee
   
   
John L. Harrington
  
Independent Trustee
  
   
   
   
   
Senior Management
   
David J. Hegarty
John R. Hoadley
President, Chief Operating Officer and Secretary
Treasurer and Chief Financial Officer
   
   
   
   
   
Contact Information
   
Investor Relations
Inquiries
Senior Housing Properties Trust
Financial inquiries should be directed to John R. Hoadley,
400 Centre Street
Treasurer and Chief Financial Officer, at (617) 796-8350
Newton, MA 02458
or jhoadley@snhreit.com.
(t) (617) 796-8350
  
(f) (617) 796-8349
Investor and media inquiries should be directed to
(email) info@snhreit.com
Timothy A. Bonang, Manager of Investor Relations, at
(website) www.snhreit.com
(617) 796-8149 or tbonang@snhreit.com.


5


Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
   
RESEARCH COVERAGE
   
Equity Research Coverage
   
Cantor Fitzgerald
Stifel, Nicolaus
Philip Martin
Jerry Doctrow
(312) 469-7485
(410) 454-5142
   
Merrill Lynch
UBS
David Tsoupros
Omotayo Okusanya
(212) 449-9697
(212) 713-1864
   
Raymond James
Wachovia Securities
Paul Puryear
Stephen Swett
(727) 573-3800
(212) 909-0954
   
RBC
  
Mike Salinsky
  
(216) 378-7627
  
   
Debt Research Coverage
   
UBS
Wachovia Securities
Ray Garson
Dan Sullivan
(203) 719-6415
(704) 383-6441
   
   
Rating Agencies
   
Moody’s Investor Service
Standard and Poor’s
Lori Marks
George Skoufis
(212) 553-1098
(212) 438-2608
   

SNH is followed by the analysts and its publicly held debt is rated by the rating agencies listed above. Please note that any opinions, estimates or forecasts regarding SNH's performance made by these analysts or agencies do not represent opinions, forecasts or predictions of SNH or its management. SNH does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.
 
 
6
 
 
 
 
 
 
 
 
 
 
FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
 
KEY FINANCIAL DATA
(share amounts and dollars in thousands, except per share data)

   
As of and For the Three Months Ended
 
   
12/31/2006
  
9/30/2006
  
6/30/2006
  
3/31/2006
  
12/31/2005
  
                       
Shares Outstanding:
                               
Common shares outstanding (at end of period)
   
77,613
   
71,860
   
71,820
   
71,812
   
71,812
 
Weighted average common shares outstanding - basic and diluted (1)
   
74,641
   
71,824
   
71,817
   
71,812
   
69,445
 
                                 
Common Share Data:
                               
Price at end of period
 
$
24.48
  
$
21.34
  
$
17.91
  
$
18.10
  
$
16.91
  
High during period
 
$
24.60
  
$
21.98
  
$
18.18
  
$
19.08
  
$
19.35
  
Low during period
 
$
20.50
  
$
17.61
  
$
16.56
  
$
16.75
  
$
16.84
  
Annualized dividends paid per share
 
$
1.32
  
$
1.32
  
$
1.32
  
$
1.28
  
$
1.28
  
Annualized dividend yield (at end of period)
   
5.4
%
  
6.2
%
  
7.4
%
  
7.1
%
  
7.6
%
                                 
Market Capitalization:
                               
Total debt (book value)
 
$
545,085
  
$
642,475
  
$
561,763
  
$
545,444
  
$
556,320
  
Plus: market value of common shares (at end of period)
   
1,899,966
   
1,533,492
   
1,286,296
   
1,299,797
   
1,214,341
 
Total market capitalization
 
$
2,445,051
  
$
2,175,967
  
$
1,848,059
  
$
1,845,241
  
$
1,770,661
  
Total debt / total market capitalization
   
22.3
%
  
29.5
%
  
30.4
%
  
29.6
%
  
31.4
%
                                 
Book Capitalization:
                               
Total debt
 
$
545,085
  
$
642,475
  
$
561,763
  
$
545,444
  
$
556,320
  
Plus: total shareholders' equity
   
1,019,466
   
894,433
   
901,824
   
912,159
   
923,184
 
Total book capitalization
 
$
1,564,551
  
$
1,536,908
  
$
1,463,587
  
$
1,457,603
  
$
1,479,504
  
Total debt / total book capitalization
   
34.8
%
  
41.8
%
  
38.4
%
  
37.4
%
  
37.6
%
                                 
Selected Balance Sheet Data:
                               
Total assets
 
$
1,584,774
  
$
1,559,745
  
$
1,490,557
  
$
1,480,557
  
$
1,500,641
  
Total liabilities
 
$
565,308
  
$
665,312
  
$
588,733
  
$
568,398
  
$
577,457
  
Gross book value of real estate assets (2)
 
$
1,814,358
  
$
1,767,047
  
$
1,699,202
  
$
1,691,499
  
$
1,686,169
  
Total debt / gross book value of real estate assets (2)
   
30.0
%
  
36.4
%
  
33.1
%
  
32.2
%
  
33.0
%
                                 
Selected Income Statement Data:
                               
Total revenues (3)
 
$
55,045
  
$
42,317
  
$
41,276
  
$
41,169
  
$
44,111
  
EBITDA (4)
 
$
47,254
  
$
39,492
  
$
39,371
  
$
39,028
  
$
38,353
  
Income from continuing operations
 
$
27,558
  
$
15,418
  
$
12,686
  
$
10,460
  
$
15,679
  
Net income
 
$
27,537
  
$
15,418
  
$
12,686
  
$
10,460
  
$
20,893
  
Funds from operations (FFO) (5)
 
$
34,985
  
$
27,659
  
$
27,825
  
$
23,523
  
$
26,305
  
Common distributions paid
 
$
25,612
  
$
23,714
  
$
23,701
  
$
22,980
  
$
22,980
  
                                 
Per Share Data:
                               
Income from continuing operations
 
$
0.37
  
$
0.21
  
$
0.18
  
$
0.15
  
$
0.23
  
Net income
 
$
0.37
  
$
0.21
  
$
0.18
  
$
0.15
  
$
0.30
  
FFO (5)
 
$
0.47
  
$
0.39
  
$
0.39
  
$
0.33
  
$
0.38
  
Common distributions paid
 
$
0.33
  
$
0.33
  
$
0.32
  
$
0.32
  
$
0.32
  
FFO payout ratio (5)
   
70.2
%
  
84.6
%
  
82.1
%
  
97.0
%
  
84.2
%
                                 
Coverage Ratios:
                               
EBITDA (3) / interest expense
   
3.9x
    
3.3x
    
3.4x
    
3.4x
    
3.2x
  
 
(1)
SNH has no outstanding common share equivalents, such as units, convertible debt or stock options.
(2)
Gross book value of real estate assets is real estate properties, at cost, after impairment write downs.
(3)
During the fourth quarters of 2006 and 2005, we recognized $5.3 million and $3.3 million of percentage rent as income for the years ended December 31, 2006 and 2005, respectively.
(4)
See page 12 for calculation of EBITDA.
(5)
See page 13 for calculation of FFO. As a result of the litigation settlement with HealthSouth, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, which we recognized as rental income in the fourth quarter of 2006. 
 
8
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
CONSOLIDATED BALANCE SHEET
(share amounts and dollars in thousands, except per share data)
 

   
As of December 31, 2006
 
As of December 31, 2005
 
       
(audited)
  
ASSETS
         
Real estate properties, at cost:
             
Land
 
$
198,887
  
$
185,819
  
Buildings and improvements
   
1,615,471
   
1,500,350
 
     
1,814,358
   
1,686,169
 
Less accumulated depreciation
   
276,507
   
239,031
 
     
1,537,851
   
1,447,138
 
               
Cash and cash equivalents
   
5,464
   
14,642
 
Restricted cash
   
2,435
   
2,529
 
Deferred financing fees, net
   
8,173
   
10,961
 
Other assets
   
30,851
   
25,371
 
Total assets
 
$
1,584,774
  
$
1,500,641
  
               
LIABILITIES AND SHAREHOLDERS' EQUITY
             
Unsecured revolving bank credit facility
 
$
112,000
  
$
64,000
  
Senior unsecured notes due 2012 and 2015, net of discount
   
341,673
   
393,938
 
Junior subordinated debentures due 2041
   
-
   
28,241
 
Secured debt and capital leases
   
91,412
   
70,141
 
Accrued interest
   
11,694
   
13,089
 
Other liabilities
   
8,529
   
8,048
 
Total liabilities
   
565,308
   
577,457
 
               
Commitments and contingencies
             
               
Shareholders' equity:
             
Common shares of beneficial interest, $0.01 par value:
             
79,700,000 shares authorized;77,613,127 and 71,812,227 shares issued  
              
and outstanding, respectively  
    
776
   
718
 
Additional paid-in capital
   
1,214,863
   
1,093,480
 
Cumulative net income
   
338,504
   
272,403
 
Cumulative distributions
   
(540,663
)
  
(447,289
)
Unrealized gain on investments
   
5,986
   
3,872
 
Total shareholders' equity  
    
1,019,466
   
923,184
 
Total liabilities and shareholders' equity
 
$
1,584,774
  
$
1,500,641
  
 
 
9
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
 
   
For the Three Months Ended
 
For the Twelve Months Ended
 
   
12/31/2006
 
12/31/2005
 
12/31/2006
 
12/31/2005
  
Revenues:
                 
Rental income (1)  
  
$
54,645
  
$
43,776
  
$
178,372
  
$
161,265
  
Interest and other income  
    
400
   
335
   
1,434
   
1,922
 
 Total revenues
   
55,045
   
44,111
   
179,806
   
163,187
 
                           
Expenses:
                         
Interest  
    
12,269
   
12,048
   
47,020
   
46,633
 
Depreciation  
    
11,443
   
11,266
   
44,073
   
43,694
 
General and administrative (2)  
    
3,775
   
3,356
   
14,645
   
13,117
 
Impairment of assets  
    
-
   
1,762
   
1,420
   
1,762
 
Loss on early extinguishment of debt (3)  
    
-
   
-
   
6,526
   
-
 
 Total expenses
   
27,487
   
28,432
   
113,684
   
105,206
 
                           
Income from continuing operations
   
27,558
   
15,679
   
66,122
   
57,981
 
(Loss) gain on sale of property
   
(21
)
  
5,214
   
(21
)
  
5,931
 
Net income
 
$
27,537
  
$
20,893
  
$
66,101
  
$
63,912
  
                           
Weighted average common shares outstanding
   
74,641
   
69,445
   
72,529
   
68,757
 
                           
Basic and diluted earnings per share:
                         
Income from continuing operations  
  
$
0.37
  
$
0.23
  
$
0.91
  
$
0.84
  
Gain on sale of property  
    
-
   
0.07
   
-
   
0.09
 
Net income  
  
$
0.37
  
$
0.30
  
$
0.91
  
$
0.93
  
                           
                           
Additional Data:
                         
Straight-line rent included in rental income (4)  
  
$
140
  
$
107
  
$
391
  
$
429
  
Deferred percentage rent (5)  
  
$
(4,016
)
$
(2,402
)
$
-
  
$
-
  
Litigation expenses included in general and administrative expenses (6)  
  
$
260
  
$
600
  
$
1,670
  
$
1,850
  
 
(1)
Rental income for the quarters ended December 31, 2006 and 2005, includes $8.3 million and $2.2 million, respectively, and for the years ended December 31, 2006 and 2005, includes $14.8 million and $8.7 million, respectively, of rental income from two hospitals formerly leased and operated by HealthSouth. Beginning in 2003 until November 2006, we were involved in two separate litigations with HealthSouth seeking to increase the rent due under an amended lease of two hospitals to HealthSouth and to terminate the amended lease and repossess the hospitals. On November 8, 2006, we and HealthSouth agreed to settle our litigations, to recognize HealthSouths lease until September 30, 2006 and to increase the annual rent due under the lease from $8.7 million to $9.9 million for the period from January 2, 2002 to September 30, 2006. As a result of the settlement, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, for periods through September 30, 2006, which we recognized as rental income in the fourth quarter of 2006. On October 1, 2006, Five Star Quality Care Inc., or Five Star, assumed the operations of these two hospitals and began leasing them from us for an annual rent of $10.25 million.
(2)
Expenses incurred related to the HealthSouth litigation were approximately $260,000 and $600,000, respectively, for the quarters ended December 31, 2006 and 2005, and $1,670,000 and $1,850,000, respectively, for the years ended December 31, 2006 and 2005, and are included in general and administrative expenses.
(3)
On January 9, 2006 we redeemed $52.5 million of our 7 7/8% senior unsecured notes. The loss on early extinguishment of debt includes a $4.1 million redemption premium and a $1.1 million write off of deferred financing fees and unamortized discount related to these senior notes. On June 15, 2006, we redeemed all of our $28.2 million of 10.125% junior subordinated debentures. The loss on early extinguishment of debt includes a $1.3 million write off of unamortized deferred financing fees related to these debentures.
(4)
We report rental income on a straight line basis over the terms of the respective leases. Rental income includes non-cash straight line rent adjustments.
(5)
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, for purposes of this calculation, total revenues for the first three quarters included estimated amounts with respect to those periods. The fourth quarter calculation excludes the amounts recognized during the first three quarters. During the fourth quarters of 2006 and 2005, we recognized $5.3 million and $3.3 million of percentage rent as income for the years ended December 31, 2006 and 2005, respectively. 
(6)
 These expenses relate to our HealthSouth litigation described in Notes 1 and 2 above.
 
10
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
 
   
For the Years Ended
 
   
12/31/2006
  
12/31/2005
  
Cash flows from operating activities:
         
Net income
 
$
66,101
  
$
63,912
  
Adjustments to reconcile net income to cash provided by operating activities:
             
Depreciation
   
44,073
   
43,694
 
Impairment of assets
   
1,420
   
1,762
 
Loss on early extinguishment of debt
   
2,392
   
-
 
Loss (gain) on sale of property
   
21
   
(5,931
)
Amortization of deferred financing fees and debt discounts
   
1,852
   
2,212
 
Change in assets and liabilities:
             
Restricted cash  
    
94
   
(523
)
Other assets  
    
(3,364
)
  
(813
)
Accrued interest  
    
(1,395
)
  
570
 
Other liabilities  
    
1,141
   
(661
)
Cash provided by operating activities
   
112,335
   
104,222
 
               
Cash flows from investing activities:
             
Acquisitions
   
(133,132
)
  
(97,480
)
Mortgage financing provided
   
-
   
(24,000
)
Mortgage financing repaid
   
-
   
24,000
 
Proceeds from sale of real estate
   
6,879
   
12,537
 
Cash used for investing activities
   
(126,253
)
  
(84,943
)
               
Cash flows from financing activities:
             
Proceeds from issuance of common shares, net
   
120,781
   
58,170
 
Proceeds from borrowings on revolving bank credit facility
   
213,000
   
143,000
 
Repayments of borrowings on revolving bank credit facility
   
(165,000
)
  
(116,000
)
Redemption of senior notes
   
(52,500
)
  
-
 
Redemption of junior subordinated debentures
   
(28,241
)
  
-
 
Repayment of other debt
   
11,296
   
(1,851
)
Deferred financing fees
   
(1,222
)
  
(3,643
)
Distributions to shareholders
   
(93,374
)
  
(87,722
)
Cash provided by (used for) financing activities
   
4,740
   
(8,046
)
               
(Decrease) increase in cash and cash equivalents
   
(9,178
)
  
11,233
 
Cash and cash equivalents at beginning of period
   
14,642
   
3,409
 
Cash and cash equivalents at end of period
 
$
5,464
  
$
14,642
  
               
Supplemental cash flow information:
             
Interest paid
 
$
46,563
  
$
43,851
  
               
Non cash investing activity:
             
Increase in capital lease assets
 
$
(9,975
)
$
-
  
               
Non cash financing activities:
             
Increase in capital lease obligations
 
$
9,975
  
$
-
  
Issuance of common shares
   
660
   
657
 
Release of restricted cash to us
   
-
   
4,170
 
Repayment of debt with cash previously restricted
   
-
   
(4,170
)
 
11
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
CALCULATION OF EBITDA
(dollars in thousands)
 
        
For the Three Months Ended
 
For the Twelve Months Ended
        
12/31/2006
 
12/31/2005
 
12/31/2006
 
12/31/2005
  
                        
Income from continuing operations (1)
       
$
27,558
  
$
15,679
  
$
66,122
  
$
57,981
  
Plus: interest expense
    
 
    
12,269
   
12,048
   
47,020
   
46,633
 
  depreciation expense
         
11,443
   
11,266
   
44,073
   
43,694
 
  impairment of assets
         
-
   
1,762
   
1,420
   
1,762
 
  loss on early extinguishment of debt
         
-
   
-
   
6,526
   
-
 
Less: deferred percentage rent adjustment (2)
    
 
 
  
(4,016
)
  
(2,402
)
  
-
   
-
 
EBITDA
       
$
47,254
  
$
38,353
  
$
165,161
  
$
150,070
  
 
 
(1)
Income from continuing operations includes expenses incurred related to our HealthSouth litigation of approximately $260,000 and $600,000 for the quarters ended December 31, 2006, and 2005, respectively, and $1,670,000 and $1,850,000 for the years ended December 31, 2006 and 2005, respectively. As a result of the settlement, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, for that period, which we recognized as rental income in the fourth quarter of 2006. See also Note 1 on page 10 for additional information regarding our HealthSouth litigation.
(2)
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, for purposes of this calculation total revenues for the first three quarters includes estimated amounts with respect to those periods. The fourth quarter calculation excludes the amounts recognized during the first three quarters.
 
We compute EBITDA as shown in the calculation above. This calculation begins with income from continuing operations or, if that amount is the same as net income, with net income. We consider EBITDA to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. EBITDA does not represent cash generated by operating activities in accordance with generally accepted accounting principals, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.
 
 
12
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
CALCULATION OF FUNDS FROM OPERATIONS (FFO)
(dollars in thousands)
 
        
For the Three Months Ended
 
For the Twelve Months Ended
 
        
12/31/2006
 
12/31/2005
 
12/31/2006
 
12/31/2005
  
                        
Income from continuing operations (1)
       
$
27,558
  
$
15,679
  
$
66,122
  
$
57,981
  
Plus:   depreciation expense
    
 
    
11,443
   
11,266
   
44,073
   
43,694
 
impairment of assets
         
-
   
1,762
   
1,420
   
1,762
 
loss on early extinguishment of debt
         
-
   
-
   
6,526
   
-
 
Less:  deferred percentage rent adjustment (2)
    
 
 
  
(4,016
)
  
(2,402
)
  
-
   
-
 
loss on early extinguishment of debt settled in cash (3)
         
-
   
-
   
(4,134
)
  
-
 
FFO
       
$
34,985
  
$
26,305
  
$
114,007
  
$
103,437
  
                                 
Weighted average shares outstanding
         
74,641
   
69,445
   
72,529
   
68,757
 
                                 
Income from continuing operations per share
       
$
0.37
  
$
0.23
  
$
0.91
  
$
0.84
  
FFO per share
       
$
0.47
  
$
0.38
  
$
1.57
  
$
1.50
  
                                 
Supplemental data:
                               
Straight-line rent included in rental income (4)
       
$
140
  
$
107
  
$
391
  
$
429
  
Amortization of deferred financing fees and debt discounts
       
$
496
  
$
483
  
$
1,852
  
$
2,212
  
 
(1)
Income from continuing operations includes expenses incurred related to our HealthSouth litigation of approximately $260,000 and $600,000 for the quarters ended December 31, 2006, and 2005, respectively, and $1,670,000 and $1,850,000 for the years ended December 31, 2006 and 2005, respectively. As a result of the settlement, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, for periods through September 30, 2006, which we recognized as rental income in the fourth quarter of 2006. See also Note 1 on page 10 for additional information regarding our HealthSouth litigation.
(2)
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, for purposes of this FFO calculation total revenues for the first three quarters includes estimated amounts with respect to those periods. The fourth quarter calculation of FFO excludes the amounts recognized during the first three quarters.
(3)
 FFO for the year ended December 31, 2006, includes a $4.1 million, or $0.06 per share, loss for the cash premium paid for our redemption of $52.5 million of our 7 7/8% senior notes.
(4)
We report rental income on a straight line basis over the terms of the respective leases. Rental income includes non-cash straight line rent adjustments.
 
We compute FFO as shown in the calculation above. This calculation begins with income from continuing operations or, if that amount is the same as net income, with net income. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO because we include deferred percentage rent as discussed in Note 2 above, and exclude loss on early extinguishment of debt not settled in cash. We consider FFO to be an appropriate measure of performance for a REIT 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 costs, such as depreciation expense and gain or loss on sale of properties, FFO can facilitate a comparison of our current operating performance with our past operating performance and of operating performances among REITs. FFO does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our board of trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future performance.
 
 
13
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
DEBT SUMMARY
(dollars in thousands)
 
   
Coupon
 
Interest
 
Principal
 
Maturity
 
Due at
 
Years to
 
 
 
Rate
 
Rate
 
Balance
 
Date
 
Maturity
 
Maturity
 
                           
Secured Fixed Rate Debt:
                          
 Tax exempt bonds - secured by 1 property
   
5.875
%
  
5.875
%
 $
14,700
    
12/1/27
  
$
14,700
    
20.9
 
 Mortgage - secured by 16 properties (1)
   
6.970
%
  
6.330
%
  
35,788
   
6/2/12
    
30,069
   
5.4
 
 Mortgage - secured by 4 properties (1)
   
6.110
%
  
6.420
%
  
12,214
   
11/30/13
    
10,218
   
6.9
 
 Mortgage - secured by 1 properties (1)
   
7.150
%
  
6.440
%
  
12,911
   
6/30/08
    
11,877
   
1.5
 
 Capital leases - 2 properties
   
7.700
%
  
7.700
%
  
15,799
   
4/30/26
    
-
   
19.3
 
 Total / weighted average secured fixed rate debt
   
6.831
%
  
6.521
%
 $
91,412
        
$
66,864
    
10.0
 
                                       
                                       
Unsecured Debt:
                                      
                                       
Unsecured Floating Rate Debt: 
                                      
 Revolving credit facility (LIBOR + 80 b.p.) (2)
   
6.150
%
  
6.150
%
 $
112,000
    
12/31/10
  
$
112,000
    
4.0
 
                                       
Unsecured Fixed Rate Debt: 
                                      
 Senior notes due 2012
   
8.625
%
  
8.625
%
 $
245,000
    
1/15/12
  
$
245,000
    
5.0
 
 Senior notes due 2015 (3)
   
7.875
%
  
7.875
%
  
97,500
   
4/15/15
    
97,500
   
8.3
 
 Total / weighted average unsecured fixed rate debt
   
8.411
%
  
8.411
%
 $
342,500
        
$
342,500
    
6.0
 
                                       
 Total / weighted average unsecured debt
   
7.854
%
  
7.854
%
 $
454,500
        
$
454,500
    
5.5
 
                                       
                                       
                                       
                                       
Total / weighted average secured debt fixed rate debt
   
6.831
%
  
6.521
%
 $
91,412
        
$
66,864
    
10.0
 
Total / weighted average unsecured floating rate debt
   
6.150
%
  
6.150
%
  
112,000
         
112,000
   
4.0
 
Total / weighted average unsecured fixed rate debt
   
8.411
%
  
8.411
%
  
342,500
         
342,500
   
6.0
 
Total / weighted average debt  
    
7.683
%
  
7.631
%
 $
545,912
        
$
521,364
    
6.2
 
 
(1)
Includes the effect of mark to market accounting for certain assumed mortgages.
(2)
On November 15, 2006, we amended our $550 million revolving bank credit facility. As a result, interest paid on drawings under the facility were reduced from LIBOR plus 100 b.p. to LIBOR plus 80 b.p. and the maturity date was extended from November 30, 2009 to December 31, 2010.
(3)
On January 9, 2006, we redeemed $52.5 million of these notes. In connection with the redemption, we paid a premium of $4.1 million and wrote off $1.1 million of deferred financing fees and unamortized discount. The remaining $97.5 million can be repaid at par, plus a premium, beginning in April 2008.
 
 
14
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
DEBT MATURITY SUMMARY
(dollars in thousands)
 

   
Scheduled Principal Payments During Period
 
   
Secured
 
 
  
 
  
 
  
   
Fixed Rate
 
Unsecured
 
Unsecured
 
 
  
   
Debt and
 
Floating
 
Fixed
 
 
  
Year
 
Capital Leases
 
Rate Debt
 
Rate Debt
 
Total
 
2007
  
$
2,110
  
$
-
  
$
-
  
$
2,110
  
2008
    
13,595
   
-
   
-
   
13,595
 
2009
    
1,605
   
-
   
-
   
1,605
 
2010
    
1,714
   
112,000
   
-
   
113,714
 
2011
    
1,829
   
-
   
-
   
1,829
 
2012
    
31,418
   
-
   
245,000
   
276,418
 
2013
    
11,016
   
-
   
-
   
11,016
 
2014
    
544
   
-
   
-
   
544
 
2015
    
614
   
-
   
97,500
   
98,114
 
2016 and thereafter
    
26,967
   
-
   
-
   
26,967
 
   
$
91,412
  
$
112,000
  
$
342,500
  
$
545,912
  

 
 
 
 
 
 
 
 
 
 
 
 
15
 
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS
 
   
As Of And For The Three Months Ended
 
   
12/31/2006
9/30/2006
6/30/2006
3/31/2006
12/31/2005
Leverage Ratios:
                               
                                 
Total debt / total assets
   
34.4
%
  
41.2
%
  
37.7
%
  
36.8
%
  
37.1
%
Total debt / gross book value of real estate assets (1)
   
30.0
%
  
36.4
%
  
33.1
%
  
32.2
%
  
33.0
%
Total debt / total market capitalization
   
22.3
%
  
29.5
%
  
30.4
%
  
29.6
%
  
31.4
%
Total debt / total book capitalization
   
34.8
%
  
41.8
%
  
38.4
%
  
37.4
%
  
37.6
%
Secured debt / total assets
   
5.8
%
  
5.1
%
  
5.3
%
  
4.7
%
  
4.7
%
Variable rate debt / total debt
   
20.5
%
  
34.6
%
  
25.1
%
  
19.4
%
  
11.5
%
                                 
                                 
Coverage Ratios:
                               
                                 
EBITDA (2)(3) / interest expense
   
3.9x
    
3.3x
    
3.4x
    
3.4x
    
3.2x
  
                                 
                                 
Public Debt Covenants (3) (4):
                               
                                 
Total debt / adjusted total assets - allowable maximum 60.0%
   
29.4
%
  
35.4
%
  
32.4
%
  
30.0
%
  
30.5
%
Secured debt / adjusted total assets - allowable maximum 40.0%
   
4.9
%
  
4.3
%
  
4.6
%
  
4.1
%
  
4.1
%
Consolidated income available for debt service / debt service - required minimum 2.00x
   
4.00x
    
3.47x
    
3.75x
    
3.83x
    
3.53x
  
Total unencumbered assets to unsecured debt - required minimum 1.50x
   
3.75x
    
2.97x
    
3.30x
    
3.55x
    
3.49x
  
                                 
 

(1)
Gross book value of real estate assets is real estate properties, at cost, less impairment write downs.
(2)
See page 12 for the calculation of EBITDA.
(3)
The quarter ended December 31, 2006 includes $5.7 million of additional rental income related to our settlement of litigation with HealthSouth.
(4)
Adjusted total assets and unencumbered assets include original cost of real estate assets less impairment write downs and exclude depreciation and amortization, accounts receivable and intangible assets. Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, taxes, gains and losses on sales of property and amortization of deferred charges.
 
 
16
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 

2006 INVESTMENTS/DISPOSITIONS INFORMATION
(dollars in thousands)
 

Acquisitions (1):

Date
Acquired
 
Tenant
 
Type of Property
 
Number of
Properties
 
Units
 
Purchase
Price
 
Purchase
Price
Per Unit
  
Cap
Rate
 
                               
8/31/06
    
Five Star
   
IL/AL/CCRC
   
5
   
783
 
$
61,500
  
$
78.5
    
8.25
%
10/1/06
    
Five Star
   
AL
   
2
   
110
 
$
12,400
  
$
112.7
    
8.25
%
10/1/06
    
Five Star
   
IL/CCRC
   
1
   
276
 
$
19,100
  
$
69.2
    
8.50
%
11/1/06
    
Five Star
   
AL
   
1
   
75
 
$
6,000
  
$
80.0
    
8.25
%
11/6/06
    
Five Star
   
AL/SNF
   
1
   
54
 
$
5,200
  
$
96.3
    
8.25
%
12/31/06
    
Five Star
   
AL
   
1
   
48
 
$
3,300
  
$
68.8
    
8.25
%
            Total / weighted average      11     
1,346
   
$
107,500
    
$
79.9
    
8.29
  
%


Dispositions:
 

Date
Sold
 
Location
 
Type of Property
 
Number of
Properties
 
Sale Price
 
NBV
 
Book Gain (Loss)
on Sale (2)
 
                           
11/1/06
    
New Haven, CT
   
SNF
   
1
   
3,762
   
3,525
   
(77
)
11/1/06
    
Waterbury, CT
   
SNF
   
1
   
2,488
   
2,375
   
(136
)
12/22/06
    
Milwaukee, WI
   
SNF
   
1
   
1,650
   
1,000
   
192
 
         
Total 
    
3
   
7,900
   
6,900
   
(21
)
 

(1)
Excludes investments in existing properties.
(2)
Calculated after deducting selling costs.
 
 
17
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 

2006 FINANCING ACTIVITIES
(share amounts and dollars in thousands)

 
   
For the Three Months Ended
 
   
12/31/2006
  
9/30/2006
  
6/30/2006
  
3/31/2006
  
                   
Debt Transactions:
                         
New debt raised
 
$
-
  
$
-
  
$
-
  
$
-
  
New debt assumed as part of acquisitions (1)
    
12,785
   
-
   
-
   
-
 
Total new debt
   
12,785
   
-
   
-
   
-
 
                           
Debt retired
   
-
   
-
   
28,241
   
52,500
 
Net debt
 
$
12,785
  
$
-
  
$
(28,241
)
$
(52,500
)
                           
Equity Transactions:
                         
New common shares issued
   
5,750
   
-
   
-
   
-
 
New common equity raised, net
 
$
120,780
  
$
-
  
$
-
  
$
-
  
                           
Revolving Credit Facility Transactions (2):
                         
Balance oustanding at beginning of period
 
$
222,000
  
$
141,000
  
$
106,000
  
$
64,000
  
Drawings during period
   
14,000
   
109,000
   
43,000
   
47,000
 
Repayments during period
   
(124,000
)
  
(28,000
)
  
(8,000
)
  
(5,000
)
Balance oustanding at end of period
 
$
112,000
  
$
222,000
  
$
141,000
  
$
106,000
  
                           
Balance available for drawing
 
$
438,000
  
$
328,000
  
$
409,000
  
$
444,000
  
 

(1)
 Amount represents the original mortgage we assumed related to the Savannah, Georgia acquisition on October 1, 2006.  This amount does not include the adjustment for FAS 141.
(2)
On November 15, 2006, we amended our $550 million revolving bank credit facility. As a result, interest paid on drawings under the facility were reduced from LIBOR plus 100 b.p. to LIBOR plus 80 b.p. and the maturity date was extended from November 30, 2009 to December 31, 2010.
 
 
18
 
 
 
 
 
 
 
 
 
PORTFOLIO INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
19
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 

PORTFOLIO SUMMARY BY FACILITY TYPE AND TENANT
(dollars in thousands)
 
   
Number of
Properties
 
Number of
Units/Beds
 
Carrying Value of
Investment (1)
 
Percent
 
Investment
per unit
 
Annualized
Current Rent
 
Percent
 
Facility Type:
                                           
Independent Living (IL) (2)
    
41
   
11,295
 
$
989,442
    
54.6
%
 $
87.6
  
$
98,062
    
54.6
%
Assisted Living (AL)
    
95
   
6,679
   
566,708
   
31.2
%
  
84.8
   
54,250
   
30.2
%
Nursing Homes
    
58
   
5,869
   
214,655
   
11.8
%
  
36.6
   
17,006
   
9.6
%
Rehabilitation Hospitals (3)
    
2
   
364
   
43,553
   
2.4
%
  
119.7
   
10,250
   
5.7
%
Total
   
196
   
24,207
 
$
1,814,358
    
100.0
%
 $
75.0
  
$
179,568
    
100.0
%
                                             
Tenant:
                                            
Five Star / Sunrise (4)
    
30
   
7,275
 
$
651,865
    
35.9
%
 $
89.6
  
$
65,012
    
36.2
%
Five Star
    
114
   
9,424
   
595,606
   
32.8
%
  
63.2
   
49,139
   
27.4
%
Sunrise / Marriott (5)
    
14
   
4,091
   
325,473
   
18.0
%
  
79.6
   
31,490
   
17.5
%
Five Star Rehabilitation Hospitals (3)
    
2
   
364
   
43,553
   
2.4
%
  
119.7
   
10,250
   
5.7
%
NewSeasons / IBC (6)
    
10
   
1,019
   
87,641
   
4.8
%
  
86.0
   
9,289
   
5.2
%
Alterra / Brookdale (7)
    
18
   
894
   
61,126
   
3.4
%
  
68.4
   
7,632
   
4.3
%
Genesis HealthCare Corporation
    
1
   
156
   
13,007
   
0.7
%
  
83.4
   
1,535
   
0.8
%
5 Private Companies (combined)
    
7
   
984
   
36,087
   
2.0
%
  
36.7
   
5,221
   
2.9
%
Total
   
196
   
24,207
 
$
1,814,358
    
100.0
%
 $
75.0
  
$
179,568
    
100.0
%
 

(1)
Amounts are before depreciation, but after impairment write downs.
(2)
Properties where the majority of units are independent living apartments are classified as independent living communities.
(3)
Beginning in 2003 until November 2006, we were in two separate litigations with HealthSouth seeking to increase the rent due under an amended lease with HealthSouth and to terminate the amended lease and repossess the hospitals. On November 8, 2006, we and HealthSouth agreed to settle our litigations, to recognize HealthSouth’s lease until September 30, 2006 and to increase the annual rent due under the lease for the period from January 2, 2002 to September 30, 2006. As a result of the settlement, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, for periods through September 30, 2006, which we recognized as rental income in the fourth quarter of 2006. On October 1, 2006, Five Star Quality Care Inc., or Five Star, assumed the operations of these two hospitals and began leasing them from us for an annual rent of $10.25 million.
(4)
These 30 properties are leased to Five Star. Historically, these properties were managed by Sunrise, but effective December 1, 2006, Five Star began managing all 30 of these properties. Prior to that, Sunrise managed seven properties during the third quarter.
(5)
Marriott guarantees this lease.
(6)
IBC guarantees this lease.
(7)
Brookdale guarantees this lease.
 
 
20
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006

 
OCCUPANCY BY FACILITY TYPE AND TENANT
 
   
For the Three Months Ended
  
   
9/30/2006
6/30/2006
3/31/2006
12/31/2005
9/30/2005
Facility Type:
                                
Independent Living (IL) (1)
    
93
%
  
92
%
  
93
%
  
92
%
  
91
%
Assisted Living (AL) (1)
    
91
%
  
89
%
  
90
%
  
91
%
  
88
%
Nursing Homes
    
88
%
  
89
%
  
92
%
  
91
%
  
89
%
Rehabilitation Hospitals (2)
    
NA
    
NA
    
NA
    
NA
    
NA
  
                                 
                                 
Tenant:
                                
Five Star / Sunrise (3)
    
92
%
  
93
%
  
93
%
  
93
%
  
92
%
Five Star (4)
    
88
%
  
89
%
  
90
%
  
89
%
  
86
%
Sunrise / Marriott (5)
    
NA
    
NA
    
NA
    
NA
    
NA
  
Five Star Rehabilitation Hospitals (2)
    
NA
    
NA
    
NA
    
NA
    
NA
  
NewSeasons / IBC
    
85
%
  
85
%
  
85
%
  
80
%
  
80
%
Alterra / Brookdale
    
89
%
  
86
%
  
90
%
  
90
%
  
88
%
Genesis HealthCare Corporation
    
96
%
  
97
%
  
97
%
  
97
%
  
94
%
5 Private Companies (combined)
    
88
%
  
89
%
  
90
%
  
88
%
  
84
%
 
 
(1)
Includes operating statistics provided by Sunrise that may not be accurate due to an accounting issue at Sunrise. See Note 5 below. However, the Sunrise statistics do not materially affect the cumulative occupancy percentages for these two facility type leases.
(2)
On October 1, 2006, Five Star assumed the operations of the two rehabilitation hospitals and began leasing them from us for annual rent of $10.25 million. These hospitals were formerly operated by HealthSouth. Because we do not have reliable information about the operations for the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
(3)
These 30 properties are leased to Five Star. Historically, these properties were managed by Sunrise, but effective December 1, 2006, Five Star began managing all 30 of these properties. Prior to that, Sunrise managed seven properties during the third quarter.
(4)
Includes data for periods prior to our ownership of certain properties included in this lease.
(5)
Sunrise has not filed its Quarterly Reports on Form 10-Q with the Securities and Exchange Comission in 2006 due to an accounting issue. Because we do not know what impact the resolution of this accounting issue may have on the reported performance of our properties, we do not report operating data for this tenant.
   
 
All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We have not independently verified our tenants’ operating data.
 
 
21
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006

 
% PRIVATE PAY BY FACILITY TYPE AND TENANT
 

   
For the Three Months Ended
  
   
9/30/2006
6/30/2006
3/31/2006
12/31/2005
9/30/2005
Facility Type:
                                
Independent Living (IL) (1)
    
86
%
  
83
%
  
84
%
  
87
%
  
83
%
Assisted Living (AL) (1)
    
99
%
  
94
%
  
94
%
  
93
%
  
94
%
Nursing Homes
    
28
%
  
28
%
  
28
%
  
27
%
  
32
%
Rehabilitation Hospitals (2)
    
NA
    
NA
    
NA
    
NA
    
NA
  
                                 
                                 
Tenant:
                                
Five Star / Sunrise (3)
    
80
%
  
81
%
  
82
%
  
84
%
  
84
%
Five Star (4)
    
51
%
  
50
%
  
50
%
  
48
%
  
54
%
Sunrise / Marriott (5)
    
NA
    
NA
    
NA
    
NA
    
NA
  
Five Star Rehabilitation Hospitals (2)
    
NA
    
NA
    
NA
    
NA
    
NA
  
NewSeasons / IBC
    
100
%
  
100
%
  
100
%
  
100
%
  
100
%
Alterra / Brookdale
    
98
%
  
98
%
  
98
%
  
98
%
  
98
%
Genesis HealthCare Corporation
    
24
%
  
19
%
  
17
%
  
17
%
  
20
%
5 Private Companies (combined)
    
26
%
  
27
%
  
26
%
  
24
%
  
24
%
 

(1)
Includes operating statistics provided by Sunrise that may not be accurate due to an accounting issue at Sunrise. See Note 5 below. However, the Sunrise statistics do not materially affect the cumulative private pay percentages for these two facility type leases.
(2)
On October 1, 2006, Five Star assumed the operations of the two rehabilitation hospitals and began leasing them from us for annual rent of $10.25 million. These hospitals were formerly operated by HealthSouth. Because we do not have reliable information about the operations for the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
(3)
These 30 properties are leased to Five Star. Historically, these properties were managed by Sunrise, but effective December 1, 2006, Five Star began managing all 30 of these properties.Prior to that, Sunrise managed seven properties during the third quarter.
(4)
Includes data for periods prior to our ownership of certain properties included in this lease.
(5)
Sunrise has not filed its Quarterly Reports on Form 10-Q with the Securities and Exchange Commission in 2006 due to an accounting issue. Because we do not know what impact the resolution of this accounting issue may have on the reported performance of our properties, we do not report operating data for this tenant.
   
 
All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We have not independently verified our tenants’ operating data.
 

22
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 

RENT COVERAGE


   
For the Three Months Ended
  
Tenant
 
9/30/2006
  
6/30/2006
  
3/31/2006
  
12/31/2005
  
9/30/2005
  
Five Star / Sunrise (1)
    
1.50x
    
1.50x
    
1.42x
    
1.46x
    
1.52x
  
Five Star (2)
    
1.53x
    
1.45x
    
1.49x
    
1.82x
    
1.72x
  
Sunrise / Marriott (3)
    
NA
    
NA
    
NA
    
NA
    
NA
  
Five Star Rehabilitation Hospitals (4)
    
NA
    
NA
    
NA
    
NA
    
NA
  
NewSeasons / IBC
    
1.14x
    
1.21x
    
1.16x
    
1.10x
    
1.17x
  
Alterra / Brookdale
    
2.21x
    
1.97x
    
2.04x
    
1.98x
    
1.87x
  
Genesis HealthCare Corporation
    
2.41x
    
2.15x
    
1.77x
    
2.16x
    
1.96x
  
5 Private companies (combined)
    
1.83x
    
1.95x
    
1.67x
    
1.92x
    
1.81x
  
 
 
(1)
These 30 properties are leased to Five Star. Historically, these properties were managed by Sunrise, but effective December 1, 2006, Five Star began managing all 30 of these properties. Prior to that, Sunrise managed seven properties during the third quarter. The rent that Five Star pays to us is subordinate to the management fees paid by Five Star to Sunrise, but our rent is not subordinate to Five Star's internal management costs. For meaningful comparison purposes, the rent coverage presented for this lease is before management fees paid to Sunrise for all 30 properties.
(2)
Includes data for periods prior to our ownership of certain properties included in this lease.
(3)
Sunrise has not filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission in 2006 due to an accounting issue. Because we do not know what impact the resolution of this accounting issue may have on the reported performance of our properties, we do not report operating data for this tenant.
(4)
On October 1, 2006, Five Star assumed the operations of the two rehabilitation hospitals and began leasing them from us for annual rent of $10.25 million. These hospitals were formerly operated by HealthSouth. Because we do not have reliable information about the operations for the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
   
 
All tenant operating data presented are based upon the operating results provided by our tenants for the indicated periods. Rent coverage is calculated as operating cash flow from our tenants’ facility operations, before subordinated charges and capital expenditure reserves, if any, divided by rent payable to us. We have not independently verified our tenants’ operating data.
 
 
 
23
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2006
 
 
PORTFOLIO LEASE EXPIRATION SCHEDULE
(dollars in thousands)
 

   
Annualized
Current Rent
  
% of Annualized Current Rent
  
Cumulative % of Annualized Current Rent
  
2006
  
$
-
    
-
   
0.0
%
2007
    
-
   
-
   
0.0
%
2008
    
-
   
-
   
0.0
%
2009
    
-
   
-
   
0.0
%
2010
    
1,295
   
0.7
%
  
0.7
%
2011
    
-
   
-
   
0.7
%
2012
    
-
   
-
   
0.7
%
2013
    
31,490
   
17.5
%
  
18.3
%
2014
    
-
   
-
   
18.3
%
2015
    
2,020
   
1.1
%
  
19.4
%
2016 and thereafter
    
144,763
   
80.6
%
  
100.0
%
Total
  
$
179,568
    
100.0
%
      
                     
Weighted average remaining
            
lease term (in years)
    
11.5
             
                     
 
 
 
 
  24
GRAPHIC 4 snh_logo.jpg begin 644 snh_logo.jpg M_]C_X``02D9)1@`!``$`8`!@``#__@`?3$5!1"!496-H;F]L;V=I97,@26YC M+B!6,2XP,0#_VP"$`!0.#Q$/#!01$!$7%108'C,A'AP<'CXL+R4S2D%.3$A! M1T917'5C45=O6$9'9HMG;WE]@X6#3V*0FH^`F76!@WX!%1<7'AH>/"$A/'Y4 M1U1^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^?GY^ M?GY^?GY^?O_$`:(```$%`0$!`0$!```````````!`@,$!08'"`D*"P$``P$! M`0$!`0$!`0````````$"`P0%!@<("0H+$``"`0,#`@0#!04$!````7T!`@,` M!!$%$B$Q008346$'(G$4,H&1H0@C0K'!%5+1\"0S8G*""0H6%Q@9&B4F)R@I M*C0U-CH.$A8:' MB(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7 MV-G:X>+CY.7FY^CIZO'R\_3U]O?X^?H1``(!`@0$`P0'!00$``$"=P`!`@,1 M!`4A,08205$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6& MAXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76 MU]C9VN+CY.7FY^CIZO+S]/7V]_CY^O_``!$(`-@`HP,!$0`"$0$#$0'_V@`, M`P$``A$#$0`_`,1-1OS&I.H7>2/^>[_XUT*$6CG M0?VA?_\`/_=_^!#_`.-'LXASR#^T+_\`Y_[O_P`"'_QH]G$.>0@O[X#`O[L` M?]-W_P`:/9Q#GD+_`&A?_P#/_=_^!#_XT>SB'/(/[0O_`/G_`+O_`,"'_P`: M/9Q#GD']H7__`#_W?_@0_P#C1[.(<\@_M"__`.?^[_\``A_\:/9Q#GD']H7_ M`/S_`-W_`.!#_P"-'LXASR#^T+__`)_[O_P(?_&CV<0YY!_:%_\`\_\`=_\` M@0_^-'LXASR$%_?`8%_=@#_IN_\`C1[.(<\A?[0O_P#G_N__``(?_&CV<0YY M!_:%_P#\_P#=_P#@0_\`C1[.(<\@_M"__P"?^[_\"'_QH]G$.>0?VA?_`//_ M`'?_`($/_C1[.(<\@_M"_P#^?^[_`/`A_P#&CV<0YY%6;5M264A=1NP!_P!- MV_QK":L[(W@[J[$C_P!4GT%=,=D<\MV.IDA0`4`%`!0`4`%`!0`4`%`!0`4` M%`!0`4`%`!0`4`%`%*X_U[?A_*N:I\1TP^$MQ_ZI/H*Z([(PENQU,D*`#(]: M!AD>M`!D>M`!D>M`!D>M`!D>M`!D>M`!D>M`!D>M`!D>M`!D>M`!D>M`!D>M M`!D>M`!F@04`%`%*X_U[?A_*N:I\1TP^$MQ_ZI/H*Z([(PENQU,DM6=REOO5 M_,`&I M_P"?^`T]`U#=<_\`/#4_\_\``:-`U#=<_P#/#4_\_P#`:-`U#=<_\\-3_P`_ M\!HT#4-US_SPU/\`S_P&C0-0W7/_`#PU/_/_``&C0-0W7/\`SPU/_/\`P&C0 M-0W7/_/#4_\`/_`:-`U#=<_\\-3_`,_\!HT#4-US_P`\-3_S_P`!HT#4-US_ M`,\-3_S_`,!HT#4-US_SPU/_`#_P&C0-0W7/_/#4_P#/_`:-`U(KR<1PM`YN M&DD0965P?+^8$<8ZX'_CU"743=M#-JS,*`*5Q_KV_#^5;_H%P_\`?;__`!=%_,/D'V>; M_H%P_P#?;_\`Q=%_,/D'V>;_`*!;_H%P_]]O\`_%T7 M\P^0?9YO^@7#_P!]O_\`%T7\P^0?9YO^@7#_`-]O_P#%T7\P^0?9YO\`H%P_ M]]O_`/%T7\P^0?9YO^@7#_WV_P#\71?S#Y#X;5VDQ)IL*KM8YWOUPF2%`%*X_U[?A_*N:I\1TP^$MQ M_P"J3Z"NB.R,);L=3))+=I$N8GB7=(K@H,9R<\#'>A[#6Y?GMI4D41Z3E=B' M_5R'DJ">_KFH3\S1I]B/R+C_`*`__D*3_&G==Q6?8;<0%;)GELOL[B10IVLN M00V>I]A0GKN)K0I8'I5$CHHGF<)&A9NN!Z>OL/>C8%=EQ+")(Q)/)E3W5@JG MZ,<[L?[*M]:GF[%\MMQ=VGIQL1O1EC=_YNO\J/>"\0\W3SUB!^L#`?I+1:07 MB*+2UN.('^<]D;=^&U@#^1:E=H+)E6>U>`;B%9,[0Z],^GJ#['!JD[DM-$.! MZ4Q%BQB66Z"&+S?D2$)'3GJ!2EHAQU9/Y%Q_T!__`"%)_C2NNY5GV#R+ MG_H#_P#D*3_&BZ[A9]ANI(\3I$;;R(Q\RC:PR2%W=?H*(BD4JH@*`*5Q_KV_ M#^5/?T]Z3V*C MN:5P\:Q/<1W$C)O(Q&JX'L..W'YC&:A=BWW*\5RLTR1))/N=@JY"=2<>E5:P MD[DMW"DEI(L*2>HVM#+AB::58TP">YX``Y) M/L!S5MV,TKEZ66.SA$4:[BP#!7'7N&<=SW"]`,9R34)7+;Y45XX)KP2W,DJA M4QOEE8]3T'I)#I<\\\D,+Q2.D8D`#'YU..G'N!CWI9;F;SHT57"'=NR"_.!CFE+L.)/*2U&]!+5TNIA&LLX]]B?0#\20/QH>@+49J*A[6"2*421 MI\I.`,L2QSQ[#'_`1V(HCN$MC.JS,*`*5Q_KV_#^56[MRP1@-^"L5L)L]\G<>. MIZ=>9U!#`LRGNJD`#Z,Y&?9#3>K".B*3NTCL[ ML6=B2Q/4D]ZHAZE_3);F""5DM1=VLC!)HBI.>X/'0]<'_P"M42LRXW19FMEL M[J^^P^8H6V20*>6B;S$.T^XQ23O:X[6O82]1+C36O;=0!=7$>Z-?X9`K[@!Z M'((^M"T=F#U5T:(.?&DB"T3=\Q\SY]V/+//7'MTJ?L%?:.5P1P1@CJ#6QBS1 MLS]JMC;MRPPG/H3\A_X"Q`SZ.14/1W+6JL1:;,TU3HBMQ8UGC+.$F0!68EK%4!P,X+`@ MCIU%&G],-C.NKU[E`FQ8T!SA>YY_Q/3U/>K2L0Y7*U,D*`*5Q_KV_#^5I_\"5_PHNPLA/L]I_ST M_P#)A/\`"B["R'I';Q!S'(-S(R\W"XY'!Z=C@_A2U&DD1[D;5;IHR"C+.5(Z M8*-3Z(%\3+$"JT=JK*I"R0D`@'&=Y/YX'Y"DQK86,`^K?]MO_`$2U3+J70A]1EQ<20NB M1[%411G'EJ>J`GMZT)7!NQ%]MN/[R?\`?M?\*=D+F8?;;C^\G_?M?\*+(.9A M]MN/[R?]^U_PHL@YF37=U,DP"E`/+C.!&O4H">WJ:20VR'[;K?\`;;_T2U3+J70A]0&!?`E5;;:!@&4,,B'(X/%'3^NX_M#;.Y> M6]@CDCMRCR*K#[/&,@G_`':&K(2DVR..0PV".B1%FD8$O$K\`+Z@^IHM=A>R M%,IFL9BZ1`JZ8*1(A&=W<`46LPO=$K';)7.`J8Z@^I_.BUV%[(1Y3- MI\K.D0994`*1*AP0^>@'H*+687NB9O\`D*3_`/7*3_T4:.@UN3V_W+?_`'X/ MY24F-;!%]U_]R#_TG>E_7XC[F16AB%`!0!2N/]>WX?RKFJ?$=,/A+?_M"CI_7%Q_OQ_^S4=06Q/)_KI_^O2/_P!!2D4R"Q_X^T^C?^@FF]B8 M[@__`"#(/^NTG_H,='4;^$1?^0;/_P!=H_\`T%Z.H+8LM_R%)_\`KE)_Z*-+ MH-;D]O\`WX?R MKFJ?$=,/A+7M]+C_ M`-$+4E(@ONNH?]?8_P#:E4NA#ZB?\OA_Z\__`&A1T_KN/J0:?_R$K7_KJO\` M.G+8F.XA_P"0;%_UU?\`]!6CJ#V%C_X\+C_?C_\`9J.H+8GD_P!=/_UZ1_\` MH*4BF06/_'VGT;_T$TWL3'<'_P"09!_UVD_]!CHZC?PB+_R#9_\`KM'_`.@O M1U!;%EO^0I/_`-?_`+0HZ?UW'U(- M/_Y"5K_UU7^=-[$QW$/_`"#8O^NK_P#H*T=0>PL?_'A7M]+C_P!$+4E(@ONNH?\`7V/_`&I5+H0^I%<2O#=( M\9PWD1CH#P8P#UIK5";LQ@O9U(*F-2.A$2`C]*+(.9C(KB6)-B%=N2]O(K62,2H[P_*B MPKA+1(>.":IW0E9C4$*64D M?_H*4BF06/\`Q]I]&_\`033>Q,=P?_D&0?\`7:3_`-!CHZC?PB+_`,@V?_KM M'_Z"]'4%L66_Y"D__7*3_P!%&ET&MR>W^Y;_`._!_*2DQK8(ONO_`+D'_I.] M+^OQ'W,BM#$*`"@"E*]@D=X`B2*S'SX^`#]:&]!)69''$9K!%1HPRRL2& MD53@A?4CT-/9ANA3$T-C,':++.F`LJL3C=V!-+=A:R)6&ZYE3[_^`47^-*S_ M`*95T'VN'_GN_P#X!1?XT68717O)HYFC,7\*;68QJFXY)S@<="!^%-*Q,FBO M3)"@"E&07-Y-<1P_;IT+L%R9&X)H:26P)MNQ:2.^>\NK;^TY`ULK,YWO@[?O8I M:6O8>M[7((VU69`\4UTRMG;^].7QUP,Y./:G[J%[PTRZD(HI3&&;4@LK&XN`(CM?,Q!4^F,T6B%Y#Y3JL*,\DURH3&\&8Y7/3(SD?C1 M[H>\BG++),VZ61Y&`QEV)./QJK6);N,H$%`%*X_U[?A_*N:I\1TP^$MQ_P"J M3Z"NB.R,);L=3)"@"[IC744[S63@2HOW#CYU)Y&#U^E3*W4N-^AJ(MN-4M98 MX8X9G@D-Q"C?(AVL!],YZ=N*C6S+TN4[8SVOFSQ0BWD2`%0"3R)%.>?8'CT! M[53L]!+34NV8MQ?:?);LHB=II=F?]5E`-I_$$#\*EWL[E*Q4A5I5TDQL%%N< M2Y./*(?)+>G'-/:Y/8MPRV[%9B%"O?RR0NQ(5"<;&8?W6"EPQ?[+]JVM%@;>XSD\_A5)Y%4Q@*-N<@G=_LGG%'-8.49<64%ND9,\C,\"S M#]R,#/8G=^N/2A-L'&Q+-I44;S*+IB(!&TC-%@!7QR,$Y(W=..])2!Q&_8+8 MK;'[5(/M'*`P#^_MY^;ZFGS,.5=PDTZ&))V:>0^5<_9\+""6///WO8TP*UG>&.9I'CD9'S'MQ@XR.3D'G\J:=Q M2216IDA0!2N/]>WX?RKFJ?$=,/A+E+E M=[E.2M82/4H$O(;[$OVB*()LVC:6"[0#\P]?TI(HI65)#J M0$PB/.W:-P.W;ZUGROEL:I1?:K6YF$KRQH8I3Q\ZX*AAS][!Z=\=: M?*[6%S*]RN);401VY:9HP[.S[`",K@8&>V,]:=GN*ZV);F_2X%FLCRRF`G=, MZC>1D$#KSC!ZGO0HVN-R3L5;Z9+B_N)X]VR21G&X8(R"M$__9 ` end GRAPHIC 5 snhlogo_light.jpg begin 644 snhlogo_light.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_X0`\17AI9@``24DJ``@````!`#$!`@`9 M````&@````````!%1$=!4FEZ97(@4V]F='=AH.$A8:'B(F*DI.4E9:7F)F:HJ.DI::G MJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7V-G:X>+CY.7FY^CIZO'R\_3U M]O?X^?K_Q``?`0`#`0$!`0$!`0$!`````````0(#!`4&!P@)"@O_Q`"U$0`" M`0($!`,$!P4$!``!`G<``0(#$00%(3$&$D%1!V%Q$R(R@0@40I&AL<$)(S-2 M\!5B7J"@X2%AH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2U MMK>XN;K"P\3%QL?(RKR\_3U]O?X^?K_V@`, M`P$``A$#$0`_`/OOXB_`?X%?LI>.K;X1^--?MWT2XT*SD\'WFH:5\/=/E"QH M\$UF\FJZ=$;MT$"SB1&=R)W$@38CRY_G_LD_]#!IG_@P^$7_`,CU[=\7?"'[ M3WQ#_:/OM$\.>-]:MK3PY=6GB+P8=&U_1[6&T@FT^73G61;O0[R1YC*VHDAI M'39)$05(VK=_X5I^WKU_X7)XJ_\`"M\,_P#S)U[,<1>*%/_E'4RQE*+L[?>_\`Y$N.&J25U?[E_F?(GG_L MD_\`0P:9_P"##X1?_(]'G_LD_P#0?TS_`,&'PB_^1Z]5\=_';PWX.DM[;1OV M]OBOXEEO)7CL'T2R\%16M\R';(EK>7NE6]I>RHWRO!;S2S(W!C!R*Q&^+/[2 MUP6N+'XE?'>*`^.:VC4Q^%?AIXO\`'7AZU\6^"?\`@H+\0-8TJ^0O9:GI5OX1N;>X4$J2DD>BE7`( M(R">0:SGB%3^)?B__D2Z=+VOPO\`"/\`\D?*OG_LD_\`0?TS_P`&'PB_^1Z/ M/_9)_P"A@TS_`,&'PB_^1Z^O%^`WQ9+`?\-O_%'G_J%>%/\`Y1UY-\/=,_;8 M^)W@+0_B3X7^,7C5=-\0Z/:ZGIZWWB?PO',L%Q$LL8D5?"K!7"N`P#,`<@$C MDD,33FKJWS;7YQ*E0E%V=_N3_)GB&KVG[/WB9[3P%\,=>TQO$WB*_MM-T4BW M^%NH_9GN+F&V:\:TL[.2XN([?SQ,Z(G(3#-&K&1?IC_AW5\*?^AQN?\`PW?@ MW_Y1UP/Q+^'_`.V=X+GM/BM?_$[Q5/K-O$/#FB3OXM\.-'#)JU]8P*9$7PN@ M:/[1':%VY941]H).#[G_`&7^U-_T-'A?_OPW_P`;K*M4G)+EDE\[_H7248-I MPD_E;]3X7^->O_`WQ[^UEXP\7>,_A5X3D@U?Q[#H5YKOBWQ5+;7-@EO]GT<3 MFWBN$<6K7D:#<46!-\H,WVG-JVI\9?A)^R=\*?AY>^-]'L/@IXIO+:2".UT# M1?'6H/CZ3\=/"?@J"#Q`O MB:6ZU:\T>UMX+Z^MXM&OWN)/M,B-Y+QVUN9&E53-)%:_9UW"0(?&_'7Q%\=Z MMI>H>%/$&BZN;3_A+3H.H"_\56VI6\D$,^H+T.AWT5U8RVMYJ-[/&LXB(EMK.57M5M9(KRZCNE MO;.WC3Q)J'@[X,_L5>,HM-L#I]KJGQ`\2V6KMII*7^(Y;+QQIXBDU. MB2OT]%T,O M5OC7\%?V7?C)J7P"^$7[/GBCQAX[A\`1>+_$B>'KBRN-7O=(6ZFM(7>?4KR* MZU*420RHD:&7RU5$)B\RW22?Q!_P4C^$OACQ1\;?`.I_#GQ&_&^M^,[R[\":\?B5;W$4NAZA MX>T[0=5TW4E6.,HES!9&?9%YBQW$=G("QMQNZ*>&H3Y743N]]]'IKZ/56T:U MWMKE.O6A?V;5EMMY_CUOJGIHCWGXY?MX?!6P^$WQNO\`XS?LQ>)]=T#X,Z]I MNC>.-"O;/1[U-2GN[:QO8S;12WGES(D6H6;L93$078*&*&F?$CX7>./V2]7F M_:$^#&J7*:',4N/&&AZ_JCRQPC8JM)>7+%VD@4*%:]D+SV*JDGF36,#60^`"\M5\>6$L62,.F6D M7>O49*C(Z@9Q45*2I4XN$6[[K7^6/Z\Q=.;JU9*;2T5GIO>7Z%3,ZQ6UR88&5F3=& MC$*[N@5/*(KZE_8@UOX?W?BWQ_\``?PWXJT;Q7X/\YDTNXM+V/4+.^2&*&*: M`.&=9%CTVZT&*4')DN#=2/EI6)\A^'6K:]\.="\*6/P_\/:@Z:I\#O"^M7AT MOQ(FE-?:DT1B:%Y!;RR7-S,98=DD[)#&J;3(G-7ADZ4:D%>^G6W]6UW,<4U5 ME3G*UM5M?^NAYG^TEX&_9E\-VEY\._!/@7X3^(;C4/#EU*^M^&_&\\AT>=HI MC:.BS7&R>;=;S.L:DRAH8]D;Z_\`##PV'FW* M5-J*?DNGR/(_^"DO_)#[?_KGXD_]0[Q!7A7C[_C\UG_L>-<_]+OB'7NO_!27 M_DA]O_US\2?^H=X@KPKQ]_Q^:S_V/&N?^EWQ#K3#?[JO7_,G%?[U_7D>Q:CH M]_XJ^'WAKP-I*Z5%=ZW\>/%D%MJ>J6MW+_9S177B*Y,T0M+NUE60K;M%D3*- MDSY#`XK:7]DSXML`1\;-&_\`!?XG_P#FEJ#P@,W7PY'_`%<)XS_]`\55A:I\ M-[/5_P!CWQC\7KGX@?$-/$$>@^);Z&_MOBGK\*PSQ27AB9(H[U8XPFQ-J*H5 M0H````K";E&H[2LK]KZMO_(Z(J,MU?3O;9+_`#.E_P"&2OBY_P!%LT;_`,`/ M$_\`\TM+/%?C`1:9I.BI8VNC>/=6TR"+S(IW=O*LKJ*,LS8R MY4L<`$X``YKX7QW-MXE^&VF7.M:IJ"V/Q*\=6=M<:SJ]Q?W`@AN-3BB1I[EW MED"(BHNYCA5`'``J>>JOM;>7E<'&D[6COY^:1>_X9*^+G_1;-&_\`/$__P`T MM!_9*^+?_1;-&_\`!?XG_P#FEKDM!^'-M!^P;H'QL'Q#^(;^)G^&FEZQ)J4W MQ5U^3?>/:0RM(T37IC;+DDH5*'."I!(KT#PM\,M'^*GQ?^*=YXN\6^-/^)7X MXM;'3K;2OB+K6GV]M;_\(_H\^Q(+2[CB7,L\KDAJ(Y?M*LX14):WBR2%Q7@O@L9TSX;L?^B)>#/_`$.UKV[X"W%_ M/\3_`(:IJ.K7]]);^"/'ELESJ>H37=PT<7B#1HHP\TS/)*0B*NYV9CCDDUXC MX+_Y!7PW_P"R)>#/_0[6NG#7O^1\]? M\%)?^2'V_P#US\2?^H=X@KPKQ]_Q^:S_`-CQKG_I=\0Z]U_X*2_\D/M_^N?B M3_U#O$%>%>/O^/S6?^QXUS_TN^(==^&_W5>O^9P8K_>OZ\CW;P=_Q^?#G_LX M3QG_`.@>*ZE7_E'AXT_[%'Q7_P"AWU1>#SB\^'/_`&<)XS_]`\55*,K_`,$\ M/&F1_P`RCXKY_P"!WU<]7XO^WOUD=$-_D_RB=O\`"[_DN?CW_L&:#_Z(GKS_ M`.'7_([^`O\`LK/Q!_\`2S5:[_X6D_\`"\_'N!G_`(EF@]/^N$]#/_0[6 MNW#?'+Y?FSBK?PH?UTB=O^Q)_P`E5\&_]DH?_P!,W@FOKVOD+]B3_DJO@W_L ME#_^F;P37U[7'B_XB]$=V%^&7K_D?/7_``4E_P"2'V__`%S\2?\`J'>(*\*\ M??\`'YK/_8\:Y_Z7?$.O=?\`@I+_`,D/M_\`KGXD_P#4.\05X5X^_P"/S6?^ MQXUS_P!+OB'7=AO]U7K_`)G#BO\`>OZ\CW7PF,W'PZ`Z_P##0?C3I_N>*Z3Q M,/\`@E<-9U,>-?\`AGS^TQ>W']M#5/[!\_[3YC>?Y_F?-YF_?OW<[MV[G-+X M0&;OX*JF)=O^">?C1MYQ_PB'BO^+G[]]7+6C>I>[6MOOE(Z MJ;Z6Z7^Y1-[XU#]@W_A-$_X://PB_P"$C_L^+8?'(TK[=]DW/Y>/M7[SRMWF M;?X<[\=Z^8?VAD\41_%RR;]D'PEKE[X);3?#C>!'^&'B^SM-)N+S^UM7&M1: MA6_P"89H/?_IWGKS_X=8'C M?P&1W^+/Q!S_`.!FJTZ3]A-O>R6^VU_TL163K02VN^F^Z7ZC])7_`()4?VO: M#0!^SS]O^V1?V>++^P?.\_>/*\O;\V_?MVXYSC'-;7Q7'_!/$>/K\?'8_!;_ M`(2L>5_:G_"8?V1_:/\`JD\KS?M'[W_5>7MW?P;<<8K"T=F'_!+?P^-QY^#. MD\`]O[/@KT+X(LW_``M+XQ*&/_)2;7_U&="KG?,DY7>EUOZ?YG1%IM*RUL_O MO_D8GAP?#L?'_P"&8^$G]B_\(S_PJ[Q1_8G_``CGD_8/L_\`:'AW;Y'D?N_+ M]-G%?-O@O_D%?#?_`+(EX,_]#M:]L^`?/Q5^'A/4^%/B&3]?^$ETBO$_!?\` MR"OAO_V1+P9_Z':UW81B.S"_#+U_R/GK_@I+_P`D/M_^ MN?B3_P!0[Q!7A7C[_C\UG_L>-<_]+OB'7=?\%$OCSH'B".[^`>@6=B-;T=KD M7T^N>--#TFW\O4-"OK+*+>WT5Q(8UU%901#Y;F)H_,4[BGBGB3XKC6[C4IH; M3PPBW7C.]O;<-\7?"N?[.N9_$?BIQ^M,^IO"!Q=_#D_]7">,_P#T#Q56?J5W\6[']E?Q9\#[?]FGQO=:Q>:+ MXAL+*2V?2OL]Q)+?"=]H=W??$3QMJ":9J3PM/%!#&[^PAMQOW9PKG]F;QQ!K]O\/M-T.X>1]*^SQ74=K#"Y,@OC^[#*Q+`'@9` M/`KN?#WB#QY\,?BK\2I9_@/XOUBRU_QE;:EI.IZ+_9[0SP#0]*M6/[V[C=2) MK69"&4'Y,C(()V/^$K_:]Z?\*-^&W_AUM0_^4-'_``E?[7W_`$0WX;?^'6U# M_P"4-0^9IJRU\UUMY^12Y4T[O2W1]+^7F<5\%=$\0^'_`(L_#:P\5>'[G2KZ M3P-XZNI=.O&C,T"SZ]HLR*_E.Z;MDBY"LP!.,UX7X+_Y!7PW_P"R)>#/_0[6 MO=?B%JO[5'ACQA!^T3KWPB^':6/@WP3KD%Y8P?$O4)))HIY+"Z:13_8@Y1=. M("8^8R]1MY^6M'^+":7:^&H;'3?#UQ'H'PMT31%DE^+/A2,W&I6#0L1A=4<) M:R"(XGRTBEA^X8'_`(=G3K]]$^)7AB\NFNA8 MZ%;RF.W74PTL*C1I'0H3-)YZ*(%*_-^A>P^HKCQM.<)Q;[>3_K<[,'4A.,DN MYY+^T5J-C\*O".L_'/Q[^U/XL\#^%]%LTDU"/2=)TNZBA&Y47RTETVYN9I9' M956)"[.[JJ)DA:X:S^*?@M=/FU#QQ^WOX]\#F'76T86WQ$T7P[H,LUZ+6*[\ MN`7VD1BY'V>9)-T)=?OJ2&CD5>Z_:QF\"^./@YKWP?U[X?>'OB"VO+;6&I_# MG5-;M;:75[*:>);F.(7$B+YXMS++"&:,-*D8\R//F+\L^&_V3OVT/#=MX+TR M$_$BX\'>#/CY/XB\"6&K^,-&U+Q=X7\--X0U+3&M);V]GEM[L_VEJ$GD))+< MR)9']Y,9`L:U0A2E1]^5GY\NJMTTOOOT[.ZLXK.HJWN*ZMTZ7J&OV7_``4UOIK+2(+"75KV+4O"#164=ZJO9/,XTW$:W"NC0EB!*'!3 M<"*KZCXZ^&&C^'QXMU?_`(*DS6NE'4KG3AJESK/@]+\*G M3]$BN8I9;5V3[9IU]8RW4+LH4JUY%%Q?,RL^'_[,?[3/PQ^(#_&&\^`TGB2* M2W^+VD?\(@=?TY)`GB7Q=%KFG79:6?R/LTEO#Y%T`QFCD6+;#,FYEM4L/RW] MHK]O=[7]-]+F?M*U_@=O67>WKM_P&SW:"]\-W7Q#?X16O_!2+5Y?%D;A)/"\ M=YX2;458Q&8`VPTSS03$#(!MY0%NG-9^N^)H_#WQQMOV<+W]L#XLR^,+WPE= M^)K/3K3P7HLL&/`ES\/[;5]/BUJTB@UN?2?#']F'7+=V*W(EL[Y5E$$SQQ MSV\DI\MYDB4^[?&G]F_QY\1?^"A?AGXW7W@3Q//X,T'X+ZWHDVI^%O'#:/`9(ZG3P].I934ERWNE'>VW_`'"5>< M+N+3O;>6U]]_Z_.?P!\;/A-\1OACX1^,.F?\%)/%.E:#X]M/M7@V?Q79>&]' MGUB#S$C$D-O?:1%,P+2Q`?("?-CX^=<],M]X:>ZN+%/^"D6L-/:>)(_#UU"M MWX3+0ZPX!33G']F96[8$$6YQ(=HG"@E2!H: M.WA?Q);:1?>'_P#@HSJU_#XAO+NTT":SN?"4J:G<6ID%S#;LNF$320F&7S$3 M)C\I]P&TX^:O!/[)_P"TI%\--)\#?#7P!JZ?#/2O'OPQUCP-X3\2>*='U"_\ M-VFDZ^=0U2QMM1MYV^UZ1!;Q6Z627$LER)&F3"0A,1?$+_@FY^TKX[\`^(?A MOX"LM.\,:+\4]"\;3>+;+5]0CSX?\2WVD:QI-IJ<8MGE$L=Y;ZC:_:5C;,;Z M='(%:2XG:I=+#V_B)?);6O\`?_PURE.LVER/[Y=_7^MSZ?\`A>/#7QFG&"6^7P]<>%+U8ED!:+S#;Z82BR*K%3D%@"5/&:]NW'_)KPO\` M9WTG]H;5?CSXE^(OQ)^&UQX(\*3_``[\-Z7HOA*XN-(N#;ZM;SZFU^8IK$/+ M):+%+8K`)I%PS7+""(NV[W+=_LG\JX*ND[)I_=^AVT5[M[6^_P#4_/W]M+]F M<_M=?\%'/$WP-MM;T'1K3Q9^RA/X=U;Q#K'@PZL]L)M:=FCM&^T0)!?QQ-]H MB9C)Y95)?*91SP'B'QA^U]X;^,'QU'68];UN M#PO9?V7HDEK=YM+-3=M/>VURH<33V-U;CR-S)<>]_MK_`/!0KXS_`+-_QTF^ M%W@?POX7N]/CTBVNEEU:SN7F+R;MPS'<(N.!CY<^YKR7_A\)^TN5.?`W@7_P M6WO_`,EUZ=+$5O9Q7*FDDK/\]NIYU2C14WJT[WT_+.=//$$%JD]QXQU*X6QM5AF+ZG= MV^G/:V0:X!ENHK>%IUV2.E80_P""P7[2Q.?^$&\#=/\`H'7O_P`ET@_X+!?M M+#D>!O`P^FG7O_R70ZM3E<5%:^>NR\O)_?Y"4*5T[N_I_P`'^OF8?[,NI_&# MQ7I7C7_A:/Q4^(VFZ5:?#WQCJ7A%5\=Z[,OB2YMO$6IK#<-<22HUC<6%NEFB M6<1*W5KJ%M,9)EA$<&7\9=<^*/@[]GZSU+PQ\7?BB-*]+K=;43$N7N`!@N*[`_\%@OVEB1GP-X&YQ_S#KW_P"2Z3_A M\+^TQC'_``@W@;_P6WO_`,EUI'$353FY%O>U_P#@?UZ:$.C3=/EYGM:]O^": M_P"U!XT\0^%?"%CX\^&'Q=F\4-X>;Q.^J_"WP_\`$/Q*O_"812G3C`NAZLDA MD?6K:%8/(M-LUO)-J%TBB%E,T7KG_!5?P-\-KCX,:!X\UKP7ILVN2_%KX<6S MZA/IJ37`TZU\8:=>SIG#%88H5NYI,?*(TD9CM7(\,_X?"?M+G)_X0?P-_P"" MZ]_^2Z5/^"P?[2PZ>!?`HP.VFWO_`,EUA!U(3A)+X7???9VV.CFI\LEWMT_X M)H:U;^-OA[_P44O?`'PXUCQ'X6^%]G\2_#4-[/H&L:B^F:2MWI-]-+8_V6A% ME%9W]X_DS7@R;>ZEM\1!Y5N(*7PWU3XG^,/V6OAIX5U_]H_Q[X/\4Z+^S]K. MD?$_Q9>7VK7T_AKQ3/JN@V]O+J\?GK(LV[^U?WSR12QVWVJ6*>%%\Y6?\/@_ MVE]N?^$&\"\#_H&WO_R72?\`#X/]I;@_\(+X%XZ?\2V]_P#DNM'5J.*7*M+: M^B:[=;W[7^=\U"FI-\SL[].[3[]+6^\U=$U#Q/\`$O1?@KJGB\>//"5QK'Q[ MOO"'BZW\,_%[Q#<:)K&EP:1KS#4--N#-%-_9UQ?/9O',X4I((($D=(H&;[D_ MX5-8_P#0Y^*/_!]+_C7PCH'_``5T_:0U77[#2[CP1X($=YJ$,$I33KT$*[JI @(S=]<'BOT:V#U- -----END PRIVACY-ENHANCED MESSAGE-----