EX-99.2 3 a10-5794_3ex99d2.htm EX-99.2

Exhibit 99.2

 

 

SENIOR HOUSING PROPERTIES TRUST

 

First Quarter 2010

 

Supplemental Operating and Financial Data

 

 

 

All amounts in this report are unaudited.

 


 

TABLE OF CONTENTS

 

 

Page

 

 

CORPORATE INFORMATION

 

 

 

Company Profile

5

Investor Information

6

Research Coverage

7

 

 

FINANCIAL INFORMATION

 

 

 

Key Financial Data

9

Condensed Consolidated Balance Sheet

10

Condensed Consolidated Statement of Income

11

Condensed Consolidated Statement of Cash Flows

12

Calculation of EBITDA

13

Calculation of Funds from Operations (FFO)

14

Debt Summary

15

Debt Maturity Schedule

16

Leverage Ratios, Coverage Ratios and Public Debt Covenants

17

2010 Acquisitions / Dispositions Information

18

 

 

PORTFOLIO INFORMATION

 

 

 

Portfolio Summary by Facility Type and Tenant

20

Occupancy by Property Type and Tenant

21

% Private Pay by Senior Living Property Type and Tenant

22

Rent Coverage by Tenant (excluding MOBs)

23

Portfolio Lease Expiration Schedule

24

 

 

2

 


 

WARNING CONCERNING

FORWARD LOOKING STATEMENTS

 

THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT CONTAINS STATEMENTS AND IMPLICATIONS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS.  ALSO, WHENEVER WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS.  THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.  FORWARD LOOKING STATEMENTS IN THIS REPORT RELATE TO VARIOUS ASPECTS OF OUR BUSINESS, INCLUDING :

 

·                  OUR ABILITY TO PURCHASE OR SELL PROPERTIES;

·                  OUR ABILITY TO RAISE DEBT OR EQUITY CAPITAL;

·                  OUR ABILITY TO PAY INTEREST AND DEBT PRINCIPAL AND MAKE DISTRIBUTIONS, AND PAY THE AMOUNT OF ANY SUCH DISTRIBUTIONS;

·                  OUR ABILITY TO RETAIN OUR EXISTING TENANTS AND MAINTAIN CURRENT RENTAL RATES;

·                  OUR ABILITY TO RENEW OR REFINANCE OUR REVOLVING CREDIT FACILITY; AND

·                  OTHER MATTERS.

 

OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.  FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF OPERATIONS, FINANCIAL CONDITION, FUNDS FROM OPERATIONS, CASH AVAILABLE FOR DISTRIBUTION, CASH FLOWS, LIQUIDITY AND PROSPECTS INCLUDE, BUT ARE NOT LIMITED TO:

 

·                  THE IMPACT OF CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS ON US AND OUR TENANTS;

·                  ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH OUR MANAGING TRUSTEES, FIVE STAR QUALITY CARE, INC, OR FIVE STAR, AND REIT MANAGEMENT & RESEARCH LLC AND ITS RELATED ENTITIES AND CLIENTS;

·                  COMPLIANCE WITH, AND CHANGES TO, FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS, ACCOUNTING RULES, TAX RATES AND SIMILAR MATTERS;

·                  LIMITATIONS IMPOSED ON OUR BUSINESS AND OUR ABILITY TO SATISFY COMPLEX RULES IN ORDER FOR US TO QUALIFY AS A REAL ESTATE INVESTMENT TRUST FOR U.S. FEDERAL INCOME TAX PURPOSES; AND

·                  COMPETITION WITHIN THE HEALTHCARE AND REAL ESTATE INDUSTRIES.

 

FOR EXAMPLE:

 

·                  FIVE STAR MAY EXPERIENCE FINANCIAL DIFFICULTIES AS A RESULT OF A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO:

·                  CHANGES IN MEDICARE AND MEDICAID PAYMENTS WHICH COULD RESULT IN A REDUCTION OF RATES OR A FAILURE OF THESE RATES TO MATCH FIVE STAR’S COST INCREASES;

·                  CHANGES IN REGULATIONS EFFECTING ITS OPERATIONS;

·                  CHANGES IN THE ECONOMY GENERALLY OR GOVERNMENTAL POLICIES WHICH REDUCE THE DEMAND FOR THE SERVICES FIVE STAR OFFERS;

·                  INCREASES IN INSURANCE AND TORT LIABILITY COSTS; AND

·                  INEFFECTIVE INTEGRATION OF NEW ACQUISITIONS.

·                  IF FIVE STAR’S OPERATIONS BECOME UNPROFITABLE, FIVE STAR MAY BECOME UNABLE TO PAY OUR RENTS;

·                  OUR OTHER TENANTS MAY EXPERIENCE LOSSES AND BECOME UNABLE TO PAY OUR RENTS;

·                  IF THE AVAILABILITY OF DEBT CAPITAL BECOMES RESTRICTED, WE MAY BE UNABLE TO RENEW, REFINANCE OR REPAY OUR REVOLVING CREDIT FACILITY OR OUR OTHER DEBT OBLIGATIONS WHEN THEY BECOME DUE OR ON TERMS WHICH ARE AS FAVORABLE AS WE NOW HAVE;

·                  OUR ABILITY TO MAKE FUTURE DISTRIBUTIONS DEPENDS UPON A NUMBER OF FACTORS, INCLUDING OUR FUTURE EARNINGS.  WE MAY BE UNABLE TO MAINTAIN OUR CURRENT RATE OF DISTRIBUTIONS AND FUTURE DISTRIBUTIONS MAY BE SUSPENDED OR PAID AT A LESSER RATE THAN THE DISTRIBUTIONS WE NOW PAY;

·                  OUR ABILITY TO GROW OUR BUSINESS AND INCREASE OUR DISTRIBUTIONS DEPENDS IN LARGE PART UPON OUR ABILITY TO BUY PROPERTIES AND LEASE THEM FOR RENTS WHICH EXCEED OUR CAPITAL COSTS.  WE MAY BE UNABLE TO IDENTIFY PROPERTIES THAT WE WANT TO ACQUIRE OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES, ACQUISITION FINANCING OR LEASE TERMS FOR NEW PROPERTIES;

·                  SOME OF OUR TENANTS MAY NOT RENEW EXPIRING LEASES, AND WE MAY BE UNABLE TO LOCATE NEW TENANTS TO MAINTAIN THE HISTORICAL OCCUPANCY RATES OF, OR RENTS FROM, OUR PROPERTIES;

·                  RENTS THAT WE CAN CHARGE AT OUR PROPERTIES MAY DECLINE; AND

·                  OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY UNDER “ITEM 1A. RISK FACTORS” IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2009.

 

THESE RESULTS COULD OCCUR DUE TO MANY DIFFERENT CIRCUMSTANCES, SOME OF WHICH ARE BEYOND OUR CONTROL, SUCH AS THE APPLICATION AND INTERPRETATION OF RECENTLY PASSED OR NEW LAWS AFFECTING OUR BUSINESS, NATURAL DISASTERS OR CHANGES IN OUR MANAGERS’ OR TENANTS’ REVENUES OR COSTS, OR CHANGES IN CAPITAL MARKETS OR THE ECONOMY GENERALLY.

 

THE INFORMATION CONTAINED ELSEWHERE IN OUR ANNUAL REPORT ON FORM 10-K OR INCORPORATED THEREIN AND SUBSEQUENT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM OUR FORWARD LOOKING STATEMENTS.

 

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

 

EXCEPT AS REQUIRED BY LAW, WE DO NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

 


 

 

 

 

 

 

 

 

CORPORATE INFORMATION

 

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

COMPANY PROFILE

 

The Company:

Senior Housing Properties Trust, or SNH, we, or us, is a real estate investment trust, or REIT, which owns independent and assisted living properties, continuing care retirement communities, nursing homes, hospitals, wellness centers and medical office, clinic and biotech laboratory buildings, or MOBs, located throughout the United States.  We are included in a number of stock indices, including the S&P 400 MidCap Index, Russell 1000® Index, the MSCI US REIT Index, FTSE EPRA/NAREIT United States Index and the S&P REIT Composite Index.

 

Management:

SNH is managed by Reit Management & Research LLC, or RMR.  RMR is a real estate management company which was founded in 1986 to manage public investments in real estate.  As of March 31, 2010, RMR manages one of the largest portfolios of publicly owned real estate in North America, including 1,360 properties located in 45 states, Washington, D.C., Puerto Rico and Ontario, Canada.  RMR has  more than 600 employees in its headquarters and regional offices located throughout the U.S.  In addition to managing SNH, RMR manages HRPT Properties Trust, a publicly traded REIT that primarily owns office  and industrial properties, Hospitality Properties Trust, or HPT, a publicly traded REIT that owns hotels and travel centers, and Government Properties Income Trust, a publicly traded REIT that owns buildings majority leased to government tenants located throughout the U.S. RMR also provides management services to Five Star Quality Care, Inc., or Five Star, a healthcare services company which is our largest tenant, and to TravelCenters of America LLC, an operator of travel centers which is a tenant of HPT.  An affiliate of RMR, RMR Advisors, Inc., is the investment manager of mutual funds, which principally invest in securities of unaffiliated real estate companies. The public companies managed by RMR and its affiliates had combined total gross assets of over $17 billion as of March 31, 2010.  We believe that being managed by RMR is a competitive advantage for SNH because RMR provides us with a depth and quality of management and experience which may be unequaled in the real estate industry.  We also believe RMR provides management services to us at costs that are lower than we would have to pay for similar quality services.

 

Strategy:

Our business plan is to maintain our investment portfolio of independent and assisted living properties, continuing care retirement communities, nursing homes, hospitals and MOBs and to acquire additional healthcare related properties primarily for income and secondarily for appreciation potential.  Our current growth strategy is focused on making 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  and to acquire MOBs.  We also may sometimes invest in other properties, such as the wellness centers, which offer special services intended to promote healthy living. 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 currently do not have any investments in off balance sheet entities.

 

 

 

 

Stock Exchange Listing:

 

Corporate Headquarters:

 

 

 

 

New York Stock Exchange

400 Centre Street

 

 

Newton, MA  02458

 

Trading Symbol:

(t)  (617) 796-8350

 

 

(f)  (617) 796-8349

 

Common Shares — SNH

 

 

Senior Unsecured Debt Ratings:

 

 

 

 

 

Moody’s — Ba1

Standard & Poor’s — BBB-

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Concentration by Facility Type (as of 3/31/10) ($ in 000):

 

 

 

 

 

Number of

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

Units/Beds or

 

 

Carrying Value of

 

 

 

Annualized

 

 

 

 

 

Properties

 

Square Feet

 

 

Investment (1)

 

Percent

 

Current Rent

 

Percent

 

Independent living (2)

 

43

 

11,524

 

 

 

$

1,124,891

 

33.9

%

$

111,618

 

33.8

%

Assisted living (2)

 

131

 

9,342

 

 

 

1,029,649

 

31.0

%

94,424

 

28.6

%

Nursing homes (2)

 

56

 

5,707

 

 

 

226,911

 

6.8

%

20,353

 

6.2

%

Rehabilitation hospitals

 

2

 

364

 

 

 

64,130

 

1.9

%

9,884

 

3.0

%

Wellness centers

 

10

 

812,000

 

sq. ft.

 

180,017

 

5.4

%

17,069

 

5.2

%

Medical office buildings (MOBs)

 

56

 

2,867,862

 

sq. ft.

 

698,747

 

21.0

%

76,347

 

23.2

%

Total

 

298

 

 

 

 

 

$

3,324,345

 

100.0

%

$

329,695

 

100.0

%

 

 

Operating Statistics by Tenant ($ in 000):

 

 

 

 

 

Number of

 

 

As Of Or For The Last 12 Months Ended December 31, 2009

 

 

Number of

 

Units/Beds or

 

Annualized

 

Rent

 

 

 

Percent

 

Tenant

 

Properties

 

Square Feet

 

Current Rent

 

Coverage (3)

 

Occupancy (3)

Private Pay (3) (4)

Five Star (Lease No. 1)

 

89

 

6,468

 

$

53,895

 

1.28x

 

86%

 

61%

 

Five Star (Lease No. 2)

 

49

 

6,031

 

49,579

 

1.30x

 

82%

 

52%

 

Five Star (Lease No. 3)

 

28

 

5,618

 

61,991

 

1.51x

 

89%

 

87%

 

Five Star (Lease No. 4)

 

26

 

2,720

 

23,026

 

1.05x

 

85%

 

67%

 

Sunrise Senior Living, Inc. / Marriott (5)

14

 

4,091

 

32,507

 

1.39x

 

89%

 

71%

 

Brookdale Senior Living, Inc.

 

18

 

894

 

8,349

 

2.11x

 

91%

 

100%

 

6 private companies (combined)

 

8

 

1,115

 

6,932

 

1.94x

 

84%

 

23%

 

Wellness centers

 

10

 

812,000

  sq. ft.

17,069

 

2.27x

 

100%

 

NA

 

Multi-tenant MOBs

 

56

 

2,867,862

  sq. ft.

76,347

 

NA

 

96%

 

NA

 

Total

 

298

 

 

 

$

329,695

 

 

 

 

 

 

 

 

(1)

Amounts are before depreciation, but after impairment write downs, if any.

(2)

Properties are categorized by the type of living units/beds which constitute a majority of the total living units/beds at the property.

(3)

All tenant operating data presented is 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, divided by minimum rents payable to us. We have not independently verified our tenants’ operating data.

(4)

Represents the percentage of SNH’s rental income that is derived from senior living properties where the operating revenues are greater than 80% from sources other than Medicare and Medicaid.

(5)

Marriott International, Inc., or Marriott, guarantees this lease.

 

 

5

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

 

INVESTOR INFORMATION

 

Board of Trustees

 

Barry M. Portnoy

Adam D. Portnoy

Managing Trustee

Managing Trustee

 

 

 

 

John L. Harrington

Jeffrey P. Somers

Independent Trustee

Independent Trustee

 

 

 

 

Frederick N. Zeytoonjian

 

Independent Trustee

 

 

 

Senior Management

 

David J. Hegarty

Richard A. Doyle

President & Chief Operating Officer

Treasurer & Chief Financial Officer

 

 

Contact Information

 

Investor Relations

Inquiries

Senior Housing Properties Trust

Financial inquiries should be directed to Richard A. Doyle,

400 Centre Street

Treasurer and Chief Financial Officer, at (617) 219-1405

Newton, MA 02458

or rdoyle@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, Vice President, Investor Relations

(website) www.snhreit.com

Elisabeth Heiss, Manager, Investor Relations

 

(617) 796-8234, tbonang@snhreit.com or eheiss@snhreit.com.

 

 

6


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

RESEARCH COVERAGE

 

Equity Research Coverage

 

Bank of America / Merrill Lynch

R.W. Baird

Jeffrey Spector

David AuBuchon

(646) 855-1363

(314) 863-4235

 

 

Jefferies & Company

Stifel Nicolaus

Tayo Okusanya

Jerry Doctrow

(212) 336-7076

(443) 224-1309

 

 

JMP Securities

UBS

Peter Martin

Dustin Pizzo

(415) 835-8904

(212) 713-4847

 

 

Raymond James

Wells Fargo Securities

Paul Puryear

Todd Stender

(727) 567-2253

(212) 214-8067

 

 

RBC

 

Kevin Ellich

 

(612) 313-1247

 

 

 

Debt Research Coverage

 

UBS

Steven Valiquette

(203) 719-2347

 

 

Rating Agencies

 

Moody’s Investors Service

Standard and Poor’s

Lori Marks

James Fielding

(212) 553-1098

(212) 438-2452

 

 

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.

 

 

7


 

 

 

 

 

 

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

 

 

3/31/2010

 

 

 

12/31/2009

 

 

 

9/30/2009

 

 

 

6/30/2009

 

 

 

3/31/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

127,403

 

 

 

127,378

 

 

 

127,378

 

 

 

120,464

 

 

 

120,398

 

Weighted average common shares outstanding during period

 

127,380

 

 

 

127,378

 

 

 

121,665

 

 

 

120,455

 

 

 

117,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

22.15

 

 

 

$

21.87

 

 

 

$

19.11

 

 

 

$

16.32

 

 

 

$

14.02

 

High during period

 

$

22.57

 

 

 

$

22.80

 

 

 

$

22.13

 

 

 

$

18.37

 

 

 

$

18.45

 

Low during period

 

$

19.59

 

 

 

$

18.19

 

 

 

$

15.01

 

 

 

$

13.34

 

 

 

$

10.68

 

Annualized dividends paid per share

 

$

1.44

 

 

 

$

1.44

 

 

 

$

1.44

 

 

 

$

1.44

 

 

 

$

1.40

 

Annualized dividend yield (at end of period)

 

6.5%

 

 

 

6.6%

 

 

 

7.5%

 

 

 

8.8%

 

 

 

10.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

1,038,058

 

 

 

$

1,042,219

 

 

 

$

984,240

 

 

 

$

707,020

 

 

 

$

653,718

 

Plus: market value of common shares (at end of period)

 

2,821,976

 

 

 

2,785,757

 

 

 

2,434,194

 

 

 

1,965,972

 

 

 

1,687,980

 

Total market capitalization

 

$

3,860,034

 

 

 

$

3,827,976

 

 

 

$

3,418,434

 

 

 

$

2,672,992

 

 

 

$

2,341,698

 

Total debt / total market capitalization

 

26.9%

 

 

 

27.2%

 

 

 

28.8%

 

 

 

26.5%

 

 

 

27.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

1,038,058

 

 

 

$

1,042,219

 

 

 

$

984,240

 

 

 

$

707,020

 

 

 

$

653,718

 

Plus: total shareholders’ equity

 

1,885,317

 

 

 

1,900,650

 

 

 

1,916,065

 

 

 

1,809,573

 

 

 

1,819,399

 

Total book capitalization

 

$

2,923,375

 

 

 

$

2,942,869

 

 

 

$

2,900,305

 

 

 

$

2,516,593

 

 

 

$

2,473,117

 

Total debt / total book capitalization

 

35.5%

 

 

 

35.4%

 

 

 

33.9%

 

 

 

28.1%

 

 

 

26.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,966,022

 

 

 

$

2,987,926

 

 

 

$

2,955,036

 

 

 

$

2,560,198

 

 

 

$

2,508,542

 

Total liabilities

 

$

1,080,705

 

 

 

$

1,087,276

 

 

 

$

1,038,971

 

 

 

$

750,625

 

 

 

$

689,143

 

Gross book value of real estate assets (2)

 

$

3,324,345

 

 

 

$

3,317,983

 

 

 

$

3,201,544

 

 

 

$

2,896,734

 

 

 

$

2,838,751

 

Total debt / gross book value of real estate assets (2)

 

31.2%

 

 

 

31.4%

 

 

 

30.7%

 

 

 

24.4%

 

 

 

23.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues (3)

 

$

80,704

 

 

 

$

87,245

 

 

 

$

72,365

 

 

 

$

69,585

 

 

 

$

68,585

 

EBITDA (4)

 

$

73,187

 

 

 

$

69,932

 

 

 

$

64,852

 

 

 

$

62,253

 

 

 

$

62,798

 

Net income

 

$

29,984

 

 

 

$

32,106

 

 

 

$

15,565

 

 

 

$

30,511

 

 

 

$

31,533

 

Funds from operations (FFO) (5)

 

$

54,808

 

 

 

$

52,376

 

 

 

$

49,420

 

 

 

$

52,828

 

 

 

$

52,134

 

Common distributions paid

 

$

45,865

 

 

 

$

45,856

 

 

 

$

45,856

 

 

 

$

43,367

 

 

 

$

42,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

0.24

 

 

 

$

0.25

 

 

 

$

0.13

 

 

 

$

0.25

 

 

 

$

0.27

 

FFO (5)

 

$

0.43

 

 

 

$

0.41

 

 

 

$

0.41

 

 

 

$

0.44

 

 

 

$

0.44

 

Common distributions declared

 

$

0.36

 

 

 

$

0.36

 

 

 

$

0.36

 

 

 

$

0.36

 

 

 

$

0.35

 

FFO payout ratio (5)

 

83.7%

 

 

 

87.8%

 

 

 

87.8%

 

 

 

81.8%

 

 

 

79.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (3) / interest expense

 

4.0x

 

 

 

3.7x

 

 

 

4.1x

 

 

 

5.8x

 

 

 

5.8x

 

 

(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, if any.

(3)          During the fourth quarter of 2009, we recognized $9.1 million of percentage rent for the year ended December 31, 2009.

(4)          See page 13 for calculation of EBITDA.

(5)          See page 14 for calculation of FFO.

 

 

9


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

CONDENSED CONSOLIDATED BALANCE SHEET

(amounts in thousands, except share data)

 

 

 

As of
March 31,
2010

 

 

 

As of
December 31,
2009

 

ASSETS

 

 

 

 

 

 

 

Real estate properties:

 

 

 

 

 

 

 

Land

 

$

365,576

 

 

 

$

365,576

 

Buildings, improvements and equipment

 

2,958,769

 

 

 

2,952,407

 

 

 

3,324,345

 

 

 

3,317,983

 

Less accumulated depreciation

 

475,451

 

 

 

454,317

 

 

 

2,848,894

 

 

 

2,863,666

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

5,486

 

 

 

10,494

 

Restricted cash

 

4,643

 

 

 

4,222

 

Deferred financing fees, net

 

14,942

 

 

 

14,882

 

Acquired real estate leases, net

 

41,032

 

 

 

42,769

 

Other assets

 

51,025

 

 

 

51,893

 

Total assets

 

$

2,966,022

 

 

 

$

2,987,926

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Unsecured revolving credit facility

 

$

58,000

 

 

 

$

60,000

 

Senior unsecured notes due 2012 and 2015, net of discount

 

322,196

 

 

 

322,160

 

Secured debt and capital leases

 

657,862

 

 

 

660,059

 

Accrued interest

 

10,836

 

 

 

13,693

 

Acquired real estate lease obligations, net

 

9,318

 

 

 

9,687

 

Other liabilities

 

22,493

 

 

 

21,677

 

Total liabilities

 

1,080,705

 

 

 

1,087,276

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Common shares of beneficial interest, $0.01 par value: 149,700,000 shares authorized, 127,402,807 and127,377,665 shares issued and outstanding at March 31, 2010 and December 31, 2009, respectively

 

1,274

 

 

 

1,273

 

Additional paid in capital

 

2,227,061

 

 

 

2,226,474

 

Cumulative net income

 

670,017

 

 

 

640,033

 

Cumulative distributions

 

(1,014,967

)

 

 

(969,111

)

Unrealized gain on investments

 

1,932

 

 

 

1,981

 

Total shareholders’ equity

 

1,885,317

 

 

 

1,900,650

 

Total liabilities and shareholders’ equity

 

$

2,966,022

 

 

 

$

2,987,926

 

 

 

10

 

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

 

 

3/31/2010

 

3/31/2009

 

 

 

 

 

 

 

Rental income (1)

 

$

80,447

 

$

68,377

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Depreciation

 

22,289

 

18,389

 

General and administrative

 

5,501

 

4,751

 

Property operating expenses

 

4,375

 

2,955

 

Acquisition costs

 

35

 

112

 

Total expenses

 

32,200

 

26,207

 

 

 

 

 

 

 

Operating income

 

48,247

 

42,170

 

 

 

 

 

 

 

Interest and other income

 

257

 

208

 

Interest expense

 

(18,414)

 

(10,776)

 

Equity in losses of an investee

 

(28)

 

-

 

Income before income tax expense

 

30,062

 

31,602

 

Income tax expense

 

 

(78)

 

(69)

 

Net income

 

$

29,984

 

$

31,533

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

127,380

 

117,853

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Net income

 

$

0.24

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

General and administrative expenses / rental income

 

6.8%

 

6.9%

 

General and administrative expenses / total assets (at end of period)

 

0.2%

 

0.2%

 

 

 

 

 

 

 

Straight-line rent included in rental income (1)

 

$

1,540

 

$

999

 

Lease Value Amortization included in rental income (1)

 

$

(275)

 

$

(159)

 

Deferred percentage rent (2)

 

$

2,500

 

$

2,100

 

Amortization of deferred financing fees and debt discounts

 

$

558

 

$

540

 

Non-cash stock based compensation

 

$

369

 

$

222

 

Lease termination fees included in rental income

 

$

-

 

$

-

 

Capitalized interest expense

 

$

-

 

$

-

 

 

(1)

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. Rental income includes non-cash amortization of intangible lease assets and liabilities.

(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 this revenue is deferred until the fourth quarter, for purposes of providing additional data to investors, we provide estimated amounts of deferred percentage rents with respect to those periods; the fourth quarter calculations exclude the amounts recognized during the first three quarters.

 

 

11

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(amounts in thousands)

 

 

 

For the Three Months Ended

 

 

 

3/31/2010

 

3/31/2009

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

29,984

 

$

31,533

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

Depreciation

 

22,289

 

18,389

 

Amortization of deferred financing fees and debt discounts

 

558

 

540

 

Amortization of acquired real estate leases

 

275

 

160

 

Equity in losses of an investee

 

28

 

-

 

Change in assets and liabilities:

 

 

 

 

 

Restricted cash

 

(421)

 

(433)

 

Other assets

 

747

 

2,274

 

Accrued interest

 

(2,857)

 

(2,941)

 

Other liabilities

 

1,406

 

3,119

 

Cash provided by operating activities

 

52,009

 

52,641

 

 

 

 

 

 

 

Cash flows used for investing activities:

 

 

 

 

 

Acquisitions

 

(6,362)

 

(32,252)

 

Investment in Affiliates Insurance Company

 

(20)

 

-

 

Cash used for investing activities

 

(6,382)

 

(32,252)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from issuance of common shares, net

 

-

 

96,767

 

Proceeds from borrowings on revolving credit facility

 

30,000

 

32,000

 

Repayments of borrowings on revolving credit facility

 

(32,000)

 

(108,000)

 

Repayment of other debt

 

(2,196)

 

(751)

 

Deferred financing fees

 

(583)

 

(739)

 

Distributions to shareholders

 

(45,856)

 

(40,090)

 

Cash used for financing activities

 

(50,635)

 

(20,813)

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

(5,008)

 

(424)

 

Cash and cash equivalents at beginning of period

 

10,494

 

5,990

 

Cash and cash equivalents at end of period

 

$

5,486

 

$

5,566

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

Interest paid

 

$

21,271

 

$

13,717

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

Issuance of common shares

 

590

 

28

 

 

 

12

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

CALCULATION OF EBITDA

(dollars in thousands)

 

 

 

 

For the Three Months Ended

 

 

 

3/31/2010

 

3/31/2009

 

 

 

 

 

 

 

Net income

 

$

29,984

 

$

31,533

 

Plus:

interest expense

 

18,414

 

10,776

 

 

depreciation expense

 

22,289

 

18,389

 

 

deferred percentage rent adjustment (1)

 

2,500

 

2,100

 

EBITDA

 

$

73,187

 

$

62,798

 

 

(1)               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 this revenue is deferred until the fourth quarter, our EBITDA calculation for the first three quarters include estimated amounts of deferred percentage rents with respect to those periods; the fourth quarter calculation of EBITDA excludes the amounts recognized during the first three quarters.

 

We define EBITDA as net income plus interest expense, taxes, depreciation and amortization, if any, and less gain on sale of properties, if any.  We also add back impairment of assets and adjust for estimated amounts of deferred percentage rent.  We consider EBITDA to be an important measure of our performance along with net income and cash flow from operating, investing and financing activities. We believe that EBITDA provides useful information to investors because by excluding the effects of certain historical amounts, such as interest, depreciation and amortization expense, EBITDA can facilitate a comparison of performance during different periods and of operating performance among REITs. EBITDA 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. In particular, because EBITDA excludes depreciation and amortization, it does not measure the capital we require to maintain our fixed assets. In addition, because EBITDA does not include interest expense, it does not take into account the total amount of interest we pay on outstanding debt nor does it show trends in interest costs due to changes in borrowings or changes in interest rates. Also, other companies may calculate EBITDA differently than we do.

 

 

13

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

 

 

3/31/2010

 

3/31/2009

 

 

 

 

 

 

 

Net income

 

$

29,984

 

$

31,533

 

Plus:

depreciation expense

 

22,289

 

18,389

 

 

acquisition costs

 

35

 

112

 

 

deferred percentage rent adjustment (1)

 

2,500

 

2,100

 

FFO

 

$

54,808

 

$

52,134

 

 

 

 

 

 

 

Weighted average shares outstanding

 

127,380

 

117,853

 

 

 

 

 

 

 

FFO per share

 

$

0.43

 

$

0.44

 

 

(1)               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 this revenue is deferred until the fourth quarter, our FFO calculation for the first three quarters include estimated amounts of deferred percentage rents with respect to those periods; the fourth quarter calculation of FFO excludes the amounts recognized during the first three quarters.

 

We compute FFO as shown above.  Our calculation of FFO differs from the definition of FFO by the National Association of Real Estate Investment Trusts, or NAREIT, because we include deferred percentage rent, if any, exclude impairment of assets, if any, and exclude acquisition costs, if any, in the determination of FFO. 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 amounts, such as depreciation expense, acquisition costs and gain or loss on sale of properties, FFO can facilitate a comparison of operating performances by a REIT over time and 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.  Also, other REITs may calculate FFO differently than we do.

 

 

14

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

DEBT SUMMARY

(dollars in thousands)

 

 

 

Coupon

 

Interest

 

Principal

 

Maturity

 

Due at

 

Years to

 

 

 

Rate

 

Rate (1)

 

Balance

 

Date

 

Maturity

 

Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage - secured by 16 properties

 

6.330%

 

6.970%

 

$

32,646

 

7/1/2012

 

$

30,579

 

2.3

 

Mortgage - secured by 4 properties

 

6.420%

 

6.110%

 

11,385

 

12/1/2013

 

10,565

 

3.7

 

Mortgage - secured by 2 properties

 

6.310%

 

6.910%

 

14,686

 

12/1/2013

 

13,404

 

3.7

 

Mortgage - secured by 1 property (2) 

 

6.500%

 

6.500%

 

4,364

 

1/11/2013

 

4,137

 

2.8

 

Mortgage - secured by 8 properties (3) 

 

6.540%

 

6.540%

 

49,186

 

5/1/2017

 

42,334

 

7.1

 

Mortgage - secured by 28 properties (4) 

 

6.710%

 

6.710%

 

306,195

 

9/1/2019

 

266,704

 

9.4

 

Mortgage - secured by 1 property (2) 

 

7.310%

 

7.310%

 

3,903

 

1/1/2022

 

41

 

11.8

 

Mortgage - secured by 1 property (2) 

 

7.850%

 

7.850%

 

1,909

 

1/1/2022

 

21

 

11.8

 

Capital leases - 2 properties

 

7.700%

 

7.700%

 

14,831

 

4/30/2026

 

-

 

16.1

 

Tax exempt bonds - secured by 1 property

 

5.875%

 

5.875%

 

 

14,700

 

12/1/2027

 

 

14,700

 

17.7

 

Weighted average rate / total secured fixed rate debt

 

6.657%

 

6.715%

 

$

453,805

 

 

 

$

382,485

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage - secured by 28 properties (4) 

 

6.378%

 

6.378%

 

$

204,057

 

9/1/2019

 

$

176,119

 

9.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 80 b.p.) (5) 

 

1.030%

 

1.030%

 

$

58,000

 

12/31/2010

 

$

58,000

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt (6):

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2012

 

8.625%

 

8.625%

 

$

225,000

 

1/15/2012

 

$

225,000

 

1.8

 

Senior notes due 2015 (7) 

 

7.875%

 

7.875%

 

97,500

 

4/15/2015

 

97,500

 

5.0

 

Weighted average rate / total unsecured fixed rate debt

 

8.398%

 

8.398%

 

$

322,500

 

 

 

$

322,500

 

2.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate / total unsecured debt

 

7.275%

 

7.275%

 

$

380,500

 

 

 

$

380,500

 

2.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate / total secured fixed rate debt

 

6.657%

 

6.715%

 

$

453,805

 

 

 

$

382,485

 

8.8

 

Weighted average rate / total secured variable rate debt

 

6.378%

 

6.378%

 

204,057

 

 

 

176,119

 

9.4

 

Weighted average rate / total unsecured floating rate debt

 

1.030%

 

1.030%

 

58,000

 

 

 

58,000

 

0.8

 

Weighted average rate / total unsecured fixed rate debt

 

8.398%

 

8.398%

 

322,500

 

 

 

322,500

 

2.8

 

Weighted average rate / total debt

 

6.829%

 

6.854%

 

$

1,038,362

 

 

 

$

939,104

 

6.6

 

 

(1)

 

Includes the effect of interest rate protection, mark to market accounting for certain assumed mortgages, and premiums and discounts on certain mortgages and unsecured notes. Excludes effects of offering and transaction costs.

(2)

 

These three mortgages are secured by two properties.

(3)

 

Includes eight first mortgages at a weighted average interest rate of 6.54% and seven second mortgages at an interest rate of 6.5%. The weighted average interest rate on these mortgages is 6.54%.

(4)

 

A portion of this loan which is secured by 28 senior living communities requires interest at a fixed rate and a portion of this loan requires interest at a floating rate.

(5)

 

Represents amounts outstanding on SNH’s $550.0 million revolving credit facility at March 31, 2010. Subject to certain conditions, at SNH’s option, this facility’s maturity date can be extended to December 31, 2011 upon payment of a fee.

(6)

 

Excludes $200.0 million principal balance of our 6.75% senior notes due 2020 issued by us on April 9, 2010.

(7)

 

In April 2010, we called all of these notes for redemption on May 17, 2010, utilizing a portion of the net proceeds from our issuance of the 6.75% senior notes due 2020 described in Note 6 above.

 

 

15


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

DEBT MATURITY SCHEDULE

(dollars in thousands)

 

 

 

 

Scheduled Principal Payments During Period

 

 

 

Secured

 

 

 

 

 

 

 

 

 

 

 

Fixed Rate

 

Secured

 

Unsecured

 

Unsecured

 

 

 

 

 

Debt and

 

Floating

 

Floating

 

Fixed

 

 

 

Year

 

Capital Leases

 

Rate Debt

 

Rate Debt

(1)

Rate Debt

(2)

Total

 

2010

 

$

4,679

 

$

1,620

 

$

58,000

 

$

-

 

$

64,299

 

2011

 

6,729

 

2,349

 

-

 

-

 

9,078

 

2012

 

36,592

 

2,469

 

-

 

225,000

 

264,061

 

2013

 

34,065

 

2,670

 

-

 

-

 

36,735

 

2014

 

6,045

 

2,848

 

-

 

-

 

8,893

 

2015

 

6,501

 

3,037

 

-

 

97,500

(3)

107,038

 

2016

 

6,935

 

3,204

 

-

 

-

 

10,139

 

2017

 

48,549

 

3,453

 

-

 

-

 

52,002

 

2018

 

6,690

 

3,683

 

-

 

-

 

10,373

 

2019 and thereafter

 

297,020

 

178,724

 

-

 

-

 

475,744

 

 

 

$

453,805

 

$

204,057

 

$

58,000

 

$

322,500

 

$

1,038,362

 

 

(1)

 

Represents amounts outstanding on SNH’s $550.0 million revolving credit facility at March 31, 2010. Subject to certain conditions, at SNH’s option, this facility’s maturity date can be extended to December 31, 2011 upon payment of a fee.

(2)

 

Excludes $200.0 million principal balance of our 6.75% senior notes due 2020 issued by us on April 9, 2010.

(3)

 

In April 2010, we called all of these notes for redemption on May 17, 2010, utilizing a portion of the net proceeds from our issuance of the 6.75% senior notes due 2020 described in Note 2 above.

 

 

16


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

 

 

 

As of and For the Three Months Ended

 

 

 

3/31/2010

 

12/31/2009

 

9/30/2009

 

6/30/2009

 

3/31/2009

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

35.0%

 

34.9%

 

33.3%

 

27.6%

 

26.1%

 

Total debt / gross book value of real estate assets (1)

 

31.2%

 

31.4%

 

30.7%

 

24.4%

 

23.0%

 

Total debt / total market capitalization

 

26.9%

 

27.2%

 

28.8%

 

26.5%

 

27.9%

 

Total debt / total book capitalization

 

35.5%

 

35.4%

 

33.9%

 

28.1%

 

26.4%

 

Secured debt / total assets

 

22.2%

 

22.1%

 

22.4%

 

5.9%

 

6.0%

 

Variable rate debt / total debt

 

25.2%

 

25.4%

 

20.8%

 

33.2%

 

27.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (2) / interest expense

 

4.0x

 

3.7x

 

4.1x

 

5.8x

 

5.8x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Debt Covenants (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / adjusted total assets - allowable maximum 60.0%

 

30.3%

 

30.5%

 

29.2%

 

23.9%

 

22.4%

 

Secured debt / adjusted total assets - allowable maximum 40.0%

 

19.2%

 

19.3%

 

19.7%

 

5.1%

 

5.2%

 

Consolidated income available for debt service / debt service - required minimum 2.00x

 

3.57x

 

3.84x

 

4.26x

 

6.12x

 

6.14x

 

Total unencumbered assets to unsecured debt - required minimum 1.50x

 

7.05x

 

7.00x

 

8.13x

 

4.89x

 

5.27x

 

 

(1)

 

Gross book value of real estate assets is real estate properties, at cost, less impairment write downs, if any.

(2)

 

See page 13 for the calculation of EBITDA.

(3)

 

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.

 

 

17


 

 

 

Senior Housing Properties Trust

 

 

 

 

 

Supplemental Operating and Financial Data

 

 

 

 

 

March 31, 2010

 

 

 

 

 

 

 

 

 

 

 

2010 ACQUISITIONS / DISPOSITIONS INFORMATION

 

 

 

 

 

(dollars and sq. ft. in thousands, except per sq. ft. amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Living Acquisitions: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase

 

Initial

 

 

 

 

 

 

 

Date

 

 

 

 

 

Number of

 

 

 

Purchase

 

Price

 

Lease

 

 

 

 

 

 

 

Acquired

 

Tenant

 

Type of Property

 

Properties

 

Units

 

Price

 

Per Unit

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no senior living acquisitions during the three months ended March 31, 2010.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOB Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase

 

 

 

Average

 

 

 

 

 

Date

 

 

 

 

 

Number of

 

 

 

Purchase

 

Price

 

Cap

 

Remaining

 

Percent

 

 

 

Acquired

 

Location

 

Type of Property

 

Properties

 

Sq. Ft.

 

Price

 

per Sq. Ft.

 

Rate

 

Lease Term

 

Leased

 

Major Tenant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no MOB acquisitions during the three months ended March 31, 2010.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date

 

 

 

 

 

Number of

 

 

 

 

 

Book Gain / Loss

 

 

 

 

 

 

 

 

 

Sold

 

Location

 

Type of Property

 

Properties

 

Sale Price

 

NBV

 

on Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no dispositions during the three months ended March 31, 2010.

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

During the three months ended March 31, 2010, pursuant to the terms of our leases with Five Star, we purchased from Five Star, at cost, $6.2 million of improvements made to our properties leased by  Five Star, and, as a result, Five Star’s annual rent payable to us increased approximately $495,000.

 

 

18

 


 

 

 

PORTFOLIO INFORMATION

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

PORTFOLIO SUMMARY BY FACILITY TYPE AND TENANT

(dollars in thousands except annualized rental income per living unit, bed or square foot)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized

 

 

 

 

 

Number of

 

 

 

 

 

 

 

Investment

 

 

 

 

 

Rental Income per

 

 

 

Number of

 

Units/Beds or

 

 

 

Carrying Value of

 

 

 

per Unit/Bed or

 

Annualized

 

 

 

Living Unit, Bed or

 

 

 

Properties

 

Square Feet

 

 

 

Investment (1)

 

Percent

 

Square Foot

 

Current Rent

 

Percent

 

Square Foot (2)

 

 

Facility Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent living (3)

 

43

 

11,524

 

 

 

$

1,124,891

 

33.9%

 

$

97.6

 

$

111,618

 

33.8%

 

$

9,686

 

 

Assisted living (3)

 

131

 

9,342

 

 

 

1,029,649

 

31.0%

 

$

110.2

 

94,424

 

28.6%

 

$

10,107

 

 

Nursing homes (3)

 

56

 

5,707

 

 

 

226,911

 

6.8%

 

$

39.8

 

20,353

 

6.2%

 

$

3,566

 

 

Rehabilitation hospitals (4)

 

2

 

364

 

 

 

64,130

 

1.9%

 

$

176.2

 

9,884

 

3.0%

 

NA

 

 

Wellness centers (5)

 

10

 

812,000

 

sq. ft.

 

180,017

 

5.4%

 

$

221.7

 

17,069

 

5.2%

 

NA

 

 

Medical office buildings (MOBs) (6)

 

56

 

2,867,862

 

sq. ft.

 

698,747

 

21.0%

 

$

243.6

 

76,347

 

23.2%

 

$

27

 

 

Total

 

298

 

 

 

 

 

$

3,324,345

 

100.0%

 

 

 

$

329,695

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Five Star (Lease No. 1)

 

89

 

6,468

 

 

 

$

630,767

 

19.0%

 

$

97.5

 

$

53,895

 

16.3%

 

$

8,333

 

 

Five Star (Lease No. 2) (4)

 

49

 

6,031

 

 

 

505,687

 

15.2%

 

$

83.8

 

49,579

 

15.0%

 

$

7,005

 

 

Five Star (Lease No. 3)

 

28

 

5,618

 

 

 

621,643

 

18.7%

 

$

110.7

 

61,991

 

18.8%

 

$

11,034

 

 

Five Star (Lease No. 4)

 

26

 

2,720

 

 

 

252,103

 

7.6%

 

$

92.7

 

23,026

 

7.0%

 

$

8,465

 

 

Sunrise Senior Living, Inc. / Marriott (7)

 

14

 

4,091

 

 

 

325,165

 

9.8%

 

$

79.5

 

32,507

 

9.9%

 

$

7,946

 

 

Brookdale Senior Living, Inc.

 

18

 

894

 

 

 

61,122

 

1.8%

 

$

68.4

 

8,349

 

2.5%

 

$

9,339

 

 

6 private companies (combined)

 

8

 

1,115

 

 

 

49,094

 

1.5%

 

$

44.0

 

6,932

 

2.1%

 

$

6,217

 

 

Wellness centers (5)

 

10

 

812,000

 

sq. ft.

 

180,017

 

5.4%

 

$

221.7

 

17,069

 

5.2%

 

NA

 

 

Multi-tenant MOBs (6)

 

56

 

2,867,862

 

sq. ft.

 

698,747

 

21.0%

 

$

243.6

 

76,347

 

23.2%

 

$

27

 

 

Total

 

298

 

 

 

 

 

$

3,324,345

 

100.0%

 

 

 

$

329,695

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts are before depreciation, but after impairment write downs, if any.

(2)

Represents annualized rent divided by the number of living units, beds or square feet leased at March 31, 2010.

(3)

Properties are categorized by the type of living units/beds which constitute a majority of the total living units/beds at the property.

(4)

Annualized rental income per living unit, bed or square foot excludes the two rehabilitation hospitals because these properties have extensive clinic space for services to both overnight patients and patients who receive treatment and do not stay overnight, and these properties are not comparable to residential senior living properties.

(5)

Annualized rental income per living unit, bed or square foot excludes the wellness centers because these properties have extensive indoor and outdoor recreation space which is not comparable to properties where rent is based on interior space only.

(6)

Our MOB leases include both triple net leases where, in addition to paying fixed rents, the tenants assume the obligation to operate and maintain the properties at their expenses, and net and modified gross leases where we are responsible to operate and maintain the properties and we charge tenants for some or all of the property operating costs. A small percentage of our MOB leases are so-called “full-service” leases where we receive fixed rent from our tenants and no reimbursement for our property operating costs.

(7)

Marriott guarantees this lease.

 

 

20


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

OCCUPANCY BY PROPERTY TYPE AND TENANT

 

 

 

For the Twelve Months Ended

 

 

 

12/31/2009

 

9/30/2009

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

Property Type:

 

 

 

 

 

 

 

 

 

 

 

Independent living

 

87%

 

88%

 

89%

 

89%

 

90%

 

Assisted living

 

87%

 

88%

 

89%

 

89%

 

89%

 

Nursing homes

 

84%

 

84%

 

84%

 

85%

 

86%

 

Rehabilitation hospitals

 

60%

 

61%

 

63%

 

63%

 

64%

 

Wellness centers

 

100%

 

100%

 

100%

 

100%

 

100%

 

MOBs

 

96%

 

98%

 

99%

 

99%

 

99%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant:

 

 

 

 

 

 

 

 

 

 

 

Five Star (Lease No. 1)

 

86%

 

87%

 

88%

 

88%

 

88%

 

Five Star (Lease No. 2)

 

82%

 

82%

 

83%

 

84%

 

84%

 

Five Star (Lease No. 3)

 

89%

 

90%

 

91%

 

91%

 

92%

 

Five Star (Lease No. 4)

 

85%

 

85%

 

87%

 

88%

 

88%

 

Sunrise Senior Living, Inc. / Marriott

 

89%

 

90%

 

90%

 

91%

 

91%

 

Brookdale Senior Living, Inc.

 

91%

 

92%

 

93%

 

93%

 

93%

 

6 private senior living companies (combined)

 

84%

 

82%

 

82%

 

82%

 

84%

 

Wellness centers

 

100%

 

100%

 

100%

 

100%

 

100%

 

Multi-tenant MOBs

 

96%

 

98%

 

99%

 

99%

 

99%

 

 

 

 

All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We report our operating data one quarter in arrears as this is the most recent prior period for which tenant operating results are available to us from our tenants.  We have not independently verified our tenants’ operating data.  Excludes historical data for periods prior to our ownership of certain properties.

 

 

21


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

 % PRIVATE PAY BY SENIOR LIVING PROPERTY TYPE AND TENANT (1) 

 

 

 

For the Twelve Months Ended

 

 

 

12/31/2009

 

9/30/2009

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

Property Type:

 

 

 

 

 

 

 

 

 

 

 

Independent living

 

78%

 

78%

 

78%

 

78%

 

78%

 

Assisted living

 

92%

 

92%

 

92%

 

92%

 

92%

 

Nursing homes

 

27%

 

27%

 

27%

 

27%

 

28%

 

Rehabilitation hospitals

 

33%

 

34%

 

35%

 

34%

 

33%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant:

 

 

 

 

 

 

 

 

 

 

 

Five Star (Lease No. 1)

 

61%

 

60%

 

60%

 

61%

 

58%

 

Five Star (Lease No. 2)

 

52%

 

52%

 

53%

 

52%

 

52%

 

Five Star (Lease No. 3)

 

87%

 

87%

 

87%

 

87%

 

88%

 

Five Star (Lease No. 4)

 

67%

 

67%

 

68%

 

68%

 

69%

 

Sunrise Senior Living, Inc. / Marriott

 

71%

 

68%

 

66%

 

66%

 

66%

 

Brookdale Senior Living, Inc.

 

100%

 

100%

 

99%

 

99%

 

99%

 

6 private senior living companies (combined)

 

23%

 

23%

 

24%

 

25%

 

26%

 

 

(1)           Private pay excludes revenues from the Medicare and Medicaid programs.

 

 

 

All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We report our operating data one quarter in arrears as this is the most recent prior period for which tenant operating results are available to us from our tenants.  We have not independently verified our tenants’ operating data.  Excludes historical data for periods prior to our ownership of certain properties.

 

 

22


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

RENT COVERAGE BY TENANT (EXCLUDING MOBs)

 

 

For the Twelve Months Ended

 

Tenant

 

12/31/2009

 

9/30/2009

 

6/30/2009

 

3/31/2009

 

12/31/2008

 

Five Star (Lease No. 1)

 

1.28x

 

1.27x

 

1.25x

 

1.21x

 

1.21x

 

Five Star (Lease No. 2)

 

1.30x

 

1.27x

 

1.26x

 

1.27x

 

1.33x

 

Five Star (Lease No. 3)

 

1.51x

 

1.54x

 

1.58x

 

1.59x

 

1.58x

 

Five Star (Lease No. 4)

 

1.05x

 

1.09x

 

1.13x

 

1.21x

 

1.29x

 

Sunrise Senior Living, Inc. / Marriott

 

1.39x

 

1.38x

 

1.43x

 

1.43x

 

1.47x

 

Brookdale Senior Living, Inc.

 

2.11x

 

2.09x

 

2.10x

 

2.11x

 

2.11x

 

6 private senior living companies (combined)

 

1.94x

 

1.96x

 

1.87x

 

1.85x

 

1.96x

 

Wellness centers

 

2.27x

 

2.33x

 

2.36x

 

2.36x

 

2.34x

 

 

 

 

 

All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We report our operating data one quarter in arrears as this is the most recent prior period for which tenant operating results are available to us from our tenants. We have not independently verified our tenants’ operating data. Excludes data for periods prior to our ownership of certain properties. 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.

 

 

23


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

March 31, 2010

 

PORTFOLIO LEASE EXPIRATION SCHEDULE

(dollars in thousands)

 

 

 

Annualized Rent

 

 

 

 

Year

 

Short and Long
Term Residential
Care Facilities

 

MOBs

 

Wellness
Centers

 

Total

 

Percent of
Total
Annualized
Current
Rent
Expiring

 

Cumulative
Percentage of
Annualized
Current Rent
Expiring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

$

1,373

 

$

1,833

 

$

-

 

$

3,206

 

1.0%

 

1.0%

2011

 

-

 

2,146

 

-

 

2,146

 

0.7%

 

1.7%

2012

 

-

 

5,999

 

-

 

5,999

 

1.8%

 

3.5%

2013

 

32,507

 

3,691

 

-

 

36,198

 

11.0%

 

14.5%

2014

 

-

 

3,114

 

-

 

3,114

 

0.9%

 

15.4%

2015

 

2,065

 

6,081

 

-

 

8,146

 

2.5%

 

17.9%

2016

 

2,895

 

6,604

 

-

 

9,499

 

2.9%

 

20.8%

2017

 

31,375

 

1,715

 

-

 

33,090

 

10.0%

 

30.8%

2018

 

-

 

1,898

 

-

 

1,898

 

0.6%

 

31.4%

2019 and after

 

166,064

 

43,266

 

17,069

 

226,399

 

68.6%

 

100.0%

Total

 

$

236,279

 

$

76,347

 

$

17,069

 

$

329,695

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average remaining lease term for all properties (weighted by rent)

 

12.5  years

 

 

 

 

Number of Living Units or Beds or Square Feet with Leases Expiring

Year

 

Short and Long
Term Residential
Care Facilities
(Units/Beds)

 

Percent of
Total Living
Units or Beds
Expiring

 

Cumulative
Percentage
of Total
Living Units

or Beds
Expiring

 

MOBs
(Square Feet)

 

Wellness
Centers
(Square
Feet)

 

Total Square
Feet

 

Percent
of Total
Square
Feet
Expiring

 

Cumulative
Percent of
Total Square
Feet
Expiring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

140

 

0.5%

 

0.5%

 

47,897

 

-

 

47,897

 

1.3%

 

1.3%

2011

 

-

 

0.0%

 

0.5%

 

65,702

 

-

 

65,702

 

1.8%

 

3.1%

2012

 

-

 

0.0%

 

0.5%

 

288,084

 

-

 

288,084

 

8.0%

 

11.1%

2013

 

4,091

 

15.2%

 

15.7%

 

143,974

 

-

 

143,974

 

4.0%

 

15.1%

2014

 

-

 

0.0%

 

15.7%

 

105,884

 

-

 

105,884

 

3.0%

 

18.1%

2015

 

283

 

1.1%

 

16.8%

 

261,693

 

-

 

261,693

 

7.3%

 

25.4%

2016

 

517

 

1.9%

 

18.7%

 

319,831

 

-

 

319,831

 

8.9%

 

34.3%

2017

 

3,614

 

13.4%

 

32.1%

 

47,866

 

-

 

47,866

 

1.3%

 

35.6%

2018

 

-

 

0.0%

 

32.1%

 

55,775

 

-

 

55,775

 

1.6%

 

37.2%

2019 and after

 

18,292

 

67.9%

 

100.0%

 

1,437,823

 

812,000

 

2,249,823

 

62.8%

 

100.0%

Total

 

26,937

 

100.0%

 

 

 

2,774,529

 

812,000

 

3,586,529

 

100.0%

 

 

 

 

24