EX-99.2 3 a11-2082_4ex99d2.htm EX-99.2

Exhibit 99.2

 

GRAPHIC

 

SENIOR HOUSING PROPERTIES TRUST

 

Fourth 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

 

Acquisitions / Dispositions Information Since 1/1/2010

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 WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS.  WHENEVER WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS.  THESE FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS 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;

·                              THE FUTURE AVAILABILITY OF BORROWINGS UNDER, AND 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;

·                              THE IMPACT OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT, OR PPACA, ON OUR TENANTS AND THEIR ABILITY TO PAY RENT;

·                              ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH OUR MANAGING TRUSTEES, FIVE STAR QUALITY CARE, INC., OR FIVE STAR, COMMONWEALTH REIT 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, INCLUDING THOSE RESULTING FROM PPACA, WHICH COULD RESULT IN REDUCED RATES OR A FAILURE OF THESE RATES TO MATCH FIVE STAR’S COST INCREASES;

·                              CHANGES IN REGULATIONS AFFECTING 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 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 ARRANGE FOR THEIR PROFITABLE OPERATION OR 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, MANAGEMENT CONTRACTS 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; AND

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

 

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

 

THE INFORMATION CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING UNDER “RISK FACTORS” IN OUR PERIODIC REPORTS, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS.  OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION ARE AVAILABLE ON ITS WEBSITE AT WWW.SEC.GOV.

 

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON OUR 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.

 

3


 

CORPORATE INFORMATION

 


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

COMPANY PROFILE


The Company:

Senior Housing Properties Trust, or SNH, we, our, 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 office buildings leased to medical providers or medical related businesses, clinics and biotech laboratory tenants, or collectively MOBs, located throughout the United States, or U.S. 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 December 31, 2010, RMR managed one of the largest portfolios of publicly owned real estate in North America, including nearly 1,400 properties located in 46 states, Washington, D.C., Puerto Rico and Ontario, Canada. RMR also manages a relatively small real estate portfolio located in Australia. RMR has approximately 650 employees in its headquarters and regional offices located throughout the U.S. In addition to managing SNH, RMR manages CommonWealth REIT, 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 primarily 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 publicly offered mutual funds, which principally invests in securities of unaffiliated real estate companies. The public companies managed by RMR and its affiliates had combined total gross assets of over $18 billion as of December 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 (1) 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 (2) 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 managers, 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

 

Two Newton Place

 

 

255 Washington Street, Suite 300

Trading Symbol:

 

Newton, MA 02458-1634

 

 

(t)  (617) 796-8350

Common Shares — SNH

 

(f)  (617) 796-8349

 

 

 

Senior Unsecured Debt Ratings:

 

 

 

 

 

Moody’s — Baa3

 

 

Standard & Poor’s — BBB-

 

 

 

Portfolio Concentration by Facility Type (as of 12/31/10) ($ in 000):

 

 

 

 

 

Number of

 

 

 

 

 

 

 

 

 

 

 

Number of

 

Units/Beds or

 

Carrying Value of

 

 

 

Annualized

 

 

 

 

 

Properties

 

Square Feet

 

Investment (1)

 

Percent

 

Rental Income (2)

 

Percent

 

Independent living (3) 

 

43

 

11,524

 

$

1,137,193

 

30.2%

 

$

112,293

 

28.7%

 

Assisted living (3) 

 

131

 

9,342

 

1,035,639

 

27.5%

 

96,346

 

24.6%

 

Nursing homes (3) 

 

52

 

5,514

 

225,629

 

6.0%

 

19,734

 

5.1%

 

Rehabilitation hospitals

 

2

 

364

 

69,075

 

1.9%

 

10,323

 

2.6%

 

Wellness centers

 

10

 

812,000

 sq. ft.

180,017

 

4.8%

 

17,337

 

4.4%

 

Medical office buildings (MOBs)

 

82

 

5,162,635

 sq. ft.

1,114,159

 

29.6%

 

135,381

 

34.6%

 

Total

 

320

 

 

 

$

3,761,712

 

100.0%

 

$

391,414

 

100.0%

 

 

Operating Statistics by Tenant ($ in 000):

 

 

 

 

 

Number of

 

 

 

As Of Or For The Last 12 Months Ended September 30, 2010

 

 

 

Number of

 

Units/Beds or

 

Annualized

 

Rent

 

 

 

Percent

 

Tenant

 

Properties

 

Square Feet

 

Rental Income (2)

 

Coverage (4)

 

Occupancy (4)

 

Private Pay (4) (5)

 

Five Star (Lease No. 1)

 

88

 

6,421

 

$

54,271

 

1.26x

 

87%

 

65%

 

Five Star (Lease No. 2)

 

46

 

5,885

 

50,464

 

1.34x

 

82%

 

52%

 

Five Star (Lease No. 3)

 

28

 

5,618

 

63,160

 

1.51x

 

88%

 

87%

 

Five Star (Lease No. 4)

 

26

 

2,720

 

23,341

 

1.12x

 

84%

 

66%

 

Sunrise Senior Living, Inc. / Marriott (6)

 

14

 

4,091

 

32,493

 

1.35x

 

90%

 

74%

 

Brookdale Senior Living, Inc.

 

18

 

894

 

8,443

 

2.18x

 

94%

 

99%

 

6 private companies (combined)

 

8

 

1,115

 

6,524

 

2.14x

 

85%

 

23%

 

Wellness centers

 

10

 

812,000

 sq. ft.

17,337

 

2.18x

 

100%

 

NA

 

Multi-tenant MOBs

 

82

 

5,162,635

 sq. ft.

135,381

 

NA

 

97%

 

NA

 

Total

 

320

 

 

 

$

391,414

 

 

 

 

 

 

 

 

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

(2)          Annualized rental income is rents pursuant to signed leases as of 12/31/2010, including estimated expense reimbursements for certain net and modified gross leases and excluding lease value amortization in certain of the MOBs and wellness centers.  Includes percentage rents totaling $10.3 million based on increases in gross revenues at certain short and long term residential care facilities.

(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)          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.

(5)          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.

(6)          Marriott International, Inc., or Marriott, guarantees this lease.

 

5


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 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,

Two Newton Place

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

255 Washington Street, Suite 300

or rdoyle@snhreit.com.

Newton, MA 02458-1634

 

(t) (617) 796-8350

Investor and media inquiries should be directed to

(f) (617) 796-8349

Timothy A. Bonang, Vice President, Investor Relations, or

(email) info@snhreit.com

Elisabeth Heiss, Manager, Investor Relations

(website) www.snhreit.com

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

 

6


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

RESEARCH COVERAGE

 

Equity Research Coverage

 

Bank of America / Merrill Lynch

RBC

Jeffrey Spector

Frank Morgan

(646) 855-1363

(615) 372-1331

 

 

Jefferies & Company

R.W. Baird

Tayo Okusanya

David AuBuchon

(212) 336-7076

(314) 863-4235

 

 

JMP Securities

Stifel Nicolaus

Peter Martin

Jerry Doctrow

(415) 835-8904

(443) 224-1309

 

 

Keefe, Bruyette & Woods

UBS

Daniel Cooney

Dustin Pizzo

(212) 887-7740

(212) 713-4847

 

 

Raymond James

Wells Fargo Securities

Paul Puryear

Todd Stender

(727) 567-2253

(212) 214-8067

 

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

 

 

 

12/31/2010

 

9/30/2010

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding (1):

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

141,855

 

127,480

 

127,413

 

127,403

 

127,378

 

Weighted average common shares outstanding during period

 

130,136

 

127,423

 

127,408

 

127,380

 

127,378

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

21.94

 

$

23.50

 

$

20.11

 

$

22.15

 

$

21.87

 

High during period

 

$

25.28

 

$

24.57

 

$

23.36

 

$

22.57

 

$

22.80

 

Low during period

 

$

20.42

 

$

19.31

 

$

19.25

 

$

19.59

 

$

18.19

 

Annualized dividends paid per share (2) 

 

$

1.48

 

$

1.44

 

$

1.44

 

$

1.44

 

$

1.44

 

Annualized dividend yield (at end of period) (2) 

 

6.7%

 

6.1%

 

7.2%

 

6.5%

 

6.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

1,204,890

 

$

1,091,017

 

$

1,080,993

 

$

1,038,058

 

$

1,042,219

 

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

 

3,112,299

 

2,995,780

 

2,562,275

 

2,821,976

 

2,785,757

 

Total market capitalization

 

$

4,317,189

 

$

4,086,797

 

$

3,643,268

 

$

3,860,034

 

$

3,827,976

 

Total debt / total market capitalization

 

27.9%

 

26.7%

 

29.7%

 

26.9%

 

27.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

1,204,890

 

$

1,091,017

 

$

1,080,993

 

$

1,038,058

 

$

1,042,219

 

Plus: total shareholders’ equity

 

2,127,977

 

1,852,772

 

1,862,559

 

1,885,317

 

1,900,650

 

Total book capitalization

 

$

3,332,867

 

$

2,943,789

 

$

2,943,552

 

$

2,923,375

 

$

2,942,869

 

Total debt / total book capitalization

 

36.2%

 

37.1%

 

36.7%

 

35.5%

 

35.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,392,656

 

$

2,999,712

 

$

2,993,227

 

$

2,966,022

 

$

2,987,926

 

Total liabilities

 

$

1,264,679

 

$

1,146,940

 

$

1,130,668

 

$

1,080,705

 

$

1,087,276

 

Gross book value of real estate assets (3) 

 

$

3,761,712

 

$

3,378,618

 

$

3,348,752

 

$

3,324,345

 

$

3,317,983

 

Total debt / gross book value of real estate assets (3) 

 

32.0%

 

32.3%

 

32.3%

 

31.2%

 

31.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

Total revenues (4) 

 

$

97,295

 

$

81,164

 

$

81,008

 

$

80,704

 

$

87,245

 

EBITDA (5) 

 

$

78,128

 

$

73,755

 

$

73,927

 

$

73,300

 

$

71,456

 

Net income

 

$

33,864

 

$

28,078

 

$

24,559

 

$

29,984

 

$

32,106

 

Funds from operations (FFO) (6) 

 

$

57,189

 

$

53,460

 

$

53,336

 

$

54,808

 

$

52,376

 

Common distributions paid (2) 

 

$

47,167

 

$

45,869

 

$

45,865

 

$

45,856

 

$

45,856

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

0.26

 

$

0.22

 

$

0.19

 

$

0.24

 

$

0.25

 

FFO (6) 

 

$

0.44

 

$

0.42

 

$

0.42

 

$

0.43

 

$

0.41

 

Common distributions paid (2) 

 

$

0.37

 

$

0.36

 

$

0.36

 

$

0.36

 

$

0.36

 

FFO payout ratio (2) (6) 

 

84.1%

 

85.7%

 

85.7%

 

83.7%

 

87.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA (5) / interest expense

 

3.7x

 

3.6x

 

3.6x

 

4.0x

 

3.8x

 

 

(1)

SNH has no outstanding common shares equivalents, such as units, convertible debt or stock options.

(2)

The amounts stated are based on the amounts paid during the periods.

(3)

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

(4)

During the fouth quarters of 2010 and 2009, we recognized $10.3 million and $9.1 million of percentage rent for the years ended December 31, 2010 and 2009, respectively.

(5)

See page 13 for calculation of EBITDA.

(6)

See page 14 for calculation of FFO.

 

9


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

CONSOLIDATED BALANCE SHEET

(amounts in thousands, except share data)

 

 

 

As of
December 31,
2010

 

As of
December 31,
2009

 

ASSETS

 

 

 

 

 

Real estate properties:

 

 

 

 

 

Land

 

$

446,622

 

$

365,576

 

Buildings, improvements and equipment

 

3,315,090

 

2,952,407

 

 

 

3,761,712

 

3,317,983

 

Less accumulated depreciation

 

538,872

 

454,317

 

 

 

3,222,840

 

2,863,666

 

 

 

 

 

 

 

Cash and cash equivalents

 

10,866

 

10,494

 

Restricted cash

 

4,994

 

4,222

 

Deferred financing fees, net

 

16,262

 

14,882

 

Acquired real estate leases, net

 

63,593

 

42,769

 

Other assets

 

74,101

 

51,893

 

Total assets

 

$

3,392,656

 

$

2,987,926

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Unsecured revolving credit facility

 

$

128,000

 

$

60,000

 

Senior unsecured notes due 2012, 2015 and 2020, net of discount

 

422,880

 

322,160

 

Secured debt and capital leases

 

654,010

 

660,059

 

Accrued interest

 

14,993

 

13,693

 

Acquired real estate lease obligations, net

 

18,239

 

9,687

 

Other liabilities

 

26,557

 

21,677

 

Total liabilities

 

1,264,679

 

1,087,276

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

149,700,000 shares authorized, 141,854,657 and 127,377,665 shares issued and outstanding at December 31, 2010 and December 31, 2009, respectively

 

1,418

 

1,273

 

Additional paid in capital

 

2,510,373

 

2,226,474

 

Cumulative net income

 

756,518

 

640,033

 

Cumulative distributions

 

(1,153,868

)

(969,111

)

Unrealized gain on investments

 

13,536

 

1,981

 

Total shareholders’ equity

 

2,127,977

 

1,900,650

 

Total liabilities and shareholders’ equity

 

$

3,392,656

 

$

2,987,926

 

 

10


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

CONSOLIDATED STATEMENT OF INCOME

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2010

 

12/31/2009

 

12/31/2010

 

12/31/2009

 

 

 

 

 

 

 

 

 

 

 

Rental income (1) 

 

$

96,836

 

$

86,992

 

$

339,009

 

$

296,777

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Depreciation

 

23,270

 

21,870

 

90,409

 

78,583

 

Property operating expenses

 

6,075

 

3,987

 

19,195

 

14,273

 

General and administrative

 

5,408

 

4,900

 

21,865

 

19,899

 

Acquisition related costs

 

2,885

 

1,416

 

3,610

 

3,327

 

Total expenses

 

37,638

 

32,173

 

135,079

 

116,082

 

Operating income

 

59,198

 

54,819

 

203,930

 

180,695

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

459

 

253

 

1,162

 

1,003

 

Interest expense

 

(20,862

)

(18,972

)

(80,017

)

(56,404

)

Loss on early extinguishment of debt (2) 

 

—

 

—

 

(2,433

)

—

 

Impairment of assets (3) 

 

(4,870

)

(4,281

)

(5,965

)

(15,530

)

Gain on sale of properties (4) 

 

—

 

397

 

109

 

397

 

Equity in earnings (losses) of an investee

 

16

 

(2

)

(1

)

(134

)

Income before income tax expense

 

33,941

 

32,214

 

116,785

 

110,027

 

Income tax expense

 

(77

)

(108

)

(300

)

(312

)

Net income

 

$

33,864

 

$

32,106

 

$

116,485

 

$

109,715

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

130,136

 

127,378

 

128,092

 

121,863

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

$

0.26

 

$

0.25

 

$

0.91

 

$

0.90

 

 

 

 

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

 

 

 

 

General and administrative expenses / rental income

 

5.6%

 

5.6%

 

6.4%

 

6.7%

 

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

 

0.2%

 

0.2%

 

0.6%

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

Straight-line rent included in rental income (1)

 

$

1,625

 

$

1,694

 

$

6,093

 

$

4,608

 

Lease Value Amortization included in rental income (1) 

 

$

(136

)

$

(293

)

$

(891

)

$

(1,006

)

Deferred percentage rent (5) 

 

$

(7,700

)

$

(6,900

)

$

—

 

$

—

 

Amortization of deferred financing fees and debt discounts

 

$

649

 

$

756

 

$

2,496

 

$

2,563

 

Non-cash stock based compensation

 

$

365

 

$

334

 

$

1,445

 

$

1,127

 

Loss on early extinguishment of debt settled in cash (2) 

 

$

—

 

$

—

 

$

1,280

 

$

—

 

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 amortization of intangible lease  assets and liabilities.

(2)

During the second quarter of 2010, we redeemed all $97.5 million of our outstanding 7.875% senior notes due 2015. As a result of this redemption, we recorded a loss on early extinguishment of debt of $2.4 million consisting of the debt prepayment premium of approximately $1.3 million and the write off of  unamortized deferred financing fees and debt discount of approximately $1.1 million.

(3)

During the fourth quarters of 2010 and 2009, we recognized an impairment of assets charge of $4.9 million related to two properties and $4.3 million  related to three properties, respectively. During the years ended December 31, 2010 and 2009, we recognized an impairment of assets charge of $6.0  million related to seven properties and $15.5 million related to 11 properties, respectively.

(4)

During the third quarter of 2010, we sold four skilled nursing facilities located in Nebraska with an aggregate 196 licensed beds for $1.5 million and  recognized a gain on sale of approximately $109. During the fourth quarter of 2009, we sold two skilled nursing facilities for $1.9 million and  recognized a gain on sale of approximately $397.

(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 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. During the fourth quarters of 2010 and 2009, we  recognized $10.3 million and $9.1 million of percentage rent for the years ended December 31, 2010 and 2009, respectively.

 

11


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

CONSOLIDATED STATEMENT OF CASH FLOWS

(amounts in thousands)

 

 

 

For the Year Ended

 

 

 

12/31/2010

 

12/31/2009

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

116,485

 

$

109,715

 

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

 

 

 

 

 

Depreciation

 

90,409

 

78,583

 

Amortization of deferred financing fees and debt discounts

 

2,496

 

2,563

 

Amortization of acquired real estate leases

 

891

 

1,006

 

Loss on early extinguishment of debt

 

2,433

 

—

 

Impairment of assets

 

5,965

 

15,530

 

Gain on sale of properties

 

(109

)

(397

)

Equity in losses of an investee

 

1

 

134

 

Change in assets and liabilities:

 

 

 

 

 

Restricted cash

 

(772

)

122

 

Other assets

 

(10,733

)

(7,842

)

Accrued interest

 

1,300

 

2,572

 

Other liabilities

 

6,939

 

7,406

 

Cash provided by operating activities

 

215,305

 

209,392

 

 

 

 

 

 

 

Cash flows used for investing activities:

 

 

 

 

 

Acquisitions

 

(467,441

)

(547,603

)

Investment in Five Star Quality Care, Inc.

 

—

 

(8,960

)

Investment in Affiliates Insurance Company

 

(76

)

(5,134

)

Proceeds from sale of properties

 

1,450

 

4,898

 

Cash used for investing activities

 

(466,067

)

(556,799

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from issuance of common shares, net

 

281,986

 

223,973

 

Proceeds from issuance of unsecured senior notes, net of discount

 

197,852

 

—

 

Proceeds from issuance of mortgage debt

 

—

 

512,934

 

Proceeds from borrowings on revolving credit facility

 

461,000

 

204,000

 

Repayments of borrowings on revolving credit facility

 

(393,000

)

(401,000

)

Redemption of senior notes

 

(98,780

)

—

 

Repayment of other debt

 

(8,506

)

(4,291

)

Payment of deferred financing fees

 

(4,661

)

(12,233

)

Distributions to shareholders

 

(184,757

)

(171,472

)

Cash provided by financing activities

 

251,134

 

351,911

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

372

 

4,504

 

Cash and cash equivalents at beginning of period

 

10,494

 

5,990

 

Cash and cash equivalents at end of period

 

$

10,866

 

$

10,494

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

Interest paid

 

$

76,221

 

$

51,267

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

Acquisitions funded by assumed debt

 

(2,458

)

—

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

Assumption of mortgage notes payable

 

2,458

 

—

 

Issuance of common shares pursuant to our equity compensation plans

 

2,058

 

1,764

 

 

12


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

CALCULATION OF EBITDA

(dollars in thousands)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2010

 

12/31/2009

 

12/31/2010

 

12/31/2009

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

33,864

 

$

32,106

 

$

116,485

 

$

109,715

 

Plus:

interest expense

 

20,862

 

18,972

 

80,017

 

56,404

 

 

income tax expense

 

77

 

108

 

300

 

312

 

 

depreciation expense

 

23,270

 

21,870

 

90,409

 

78,583

 

 

acquisition related costs

 

2,885

 

1,416

 

3,610

 

3,327

 

 

loss on early extinguishment of debt (1) 

 

—

 

—

 

2,433

 

—

 

 

impairment of assets (2) 

 

4,870

 

4,281

 

5,965

 

15,530

 

Less:

deferred percentage rent adjustment (3) 

 

(7,700

)

(6,900

)

—

 

—

 

 

gain on sale of properties (4) 

 

—

 

(397

)

(109

)

(397

)

EBITDA

 

 

$

78,128

 

$

71,456

 

$

299,110

 

$

263,474

 

 

(1)

During the second quarter of 2010, we redeemed all $97.5 million of our outstanding 7.875% senior notes due 2015. As a result of this redemption, we recorded a loss on early extinguishment of debt of $2.4 million consisting of the debt prepayment premium of approximately $1.3 million and the write off of unamortized deferred financing fees and debt discount of approximately $1.1 million.

 (2)

During the fourth quarters of 2010 and 2009, we recognized an impairment of assets charge of $4.9 million related to two properties and $4.3 million related to three properties, respectively. During the years ended December 31, 2010 and 2009, we recognized an impairment of assets charge of $6.0 million related to seven properties and $15.5 million related to 11 properties, respectively.

 (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 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. During the fourth quarters of 2010 and 2009, we recognized $10.3 million and $9.1 million of percentage rent for the years ended December 31, 2010 and 2009, respectively.

(4)

During the third quarter of 2010, we sold four skilled nursing facilities located in Nebraska with an aggregate 196 licensed beds for $1.5 million and recognized a gain on sale of approximately $109. During the fourth quarter of 2009, we sold two skilled nursing facilities for $1.9 million and recognized a gain on sale of approximately $397.

 

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  acquisition related costs, if any, loss on early extinguishment of debt, if any, impairment of assets, if any, 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

December 31, 2010

 

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2010

 

12/31/2009

 

12/31/2010

 

12/31/2009

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

33,864

 

$

32,106

 

$

116,485

 

$

109,715

 

Plus: 

depreciation expense

 

23,270

 

21,870

 

90,409

 

78,583

 

 

acquisition related costs

 

2,885

 

1,416

 

3,610

 

3,327

 

 

loss on early extinguishment of debt (1) 

 

—

 

—

 

2,433

 

—

 

 

impairment of assets (2) 

 

4,870

 

4,281

 

5,965

 

15,530

 

Less:

deferred percentage rent adjustment (3) 

 

(7,700

)

(6,900

)

—

 

—

 

 

gain on sale of properties (4) 

 

—

 

(397

)

(109

)

(397

)

FFO

 

$

57,189

 

$

52,376

 

$

218,793

 

$

206,758

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

130,136

 

127,378

 

128,092

 

121,863

 

 

 

 

 

 

 

 

 

 

 

FFO per share

 

$

0.44

 

$

0.41

 

$

1.71

 

$

1.70

 

 

(1)

During the second quarter of 2010, we redeemed all $97.5 million of our outstanding 7.875% senior notes due 2015. As a result of this redemption, we recorded a loss on early extinguishment of debt of $2.4 million consisting of the debt prepayment premium of approximately $1.3 million and the write off of unamortized deferred financing fees and debt discount of approximately $1.1 million.

(2)

During the fourth quarters of 2010 and 2009, we recognized an impairment of assets charge of $4.9 million related to two properties and $4.3 million related to three properties, respectively. During the years ended December 31, 2010 and 2009, we recognized an impairment of assets charge of $6.0 million related to seven properties and $15.5 million related to 11 properties, respectively.

(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 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. During the fourth quarters of 2010 and 2009, we recognized $10.3 million and $9.1 million of percentage rent for the years ended December 31, 2010 and 2009, respectively.

(4)

During the third quarter of 2010, we sold four skilled nursing facilities located in Nebraska with an aggregate 196 licensed beds for $1.5 million and recognized a gain on sale of approximately $109. During the fourth quarter of 2009, we sold two skilled nursing facilities for $1.9 million and recognized a gain on sale of approximately $397.

 

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 loss on early extinguishment of debt, if any, exclude impairment of assets, if any, and exclude acquisition related 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 related 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

December 31, 2010

 

 

DEBT SUMMARY (1)

(dollars in thousands)

 

 

 

Coupon

 

Interest

 

Principal

 

Maturity

 

Due at

 

Years to

 

 

 

Rate

 

Rate (2)

 

Balance

 

Date

 

Maturity

 

Maturity

 

Secured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage - secured by 1 property

 

6.730%

 

6.730%

 

$

2,419

 

6/30/2012

 

$

2,329

 

1.5

 

Mortgage - secured by 16 properties

 

6.330%

 

6.970%

 

31,832

 

7/1/2012

 

30,579

 

1.5

 

Mortgage - secured by 4 properties

 

6.420%

 

6.110%

 

11,169

 

12/1/2013

 

10,565

 

2.9

 

Mortgage - secured by 2 properties

 

6.310%

 

6.910%

 

14,471

 

12/1/2013

 

13,404

 

2.9

 

Mortgage - secured by 1 property

 

6.500%

 

6.500%

 

4,307

 

1/11/2013

 

4,137

 

2.0

 

Mortgage - secured by 8 properties (3) 

 

6.540%

 

6.540%

 

48,565

 

5/1/2017

 

42,334

 

6.3

 

Mortgage - secured by 28 properties (4) 

 

6.710%

 

6.710%

 

303,948

 

9/1/2019

 

266,704

 

8.7

 

Mortgage - secured by 1 property (5) 

 

7.310%

 

7.310%

 

3,742

 

1/1/2022

 

41

 

11.0

 

Mortgage - secured by 1 property (5) 

 

7.850%

 

7.850%

 

1,833

 

1/1/2022

 

21

 

11.0

 

Capital leases - 2 properties

 

7.700%

 

7.700%

 

14,575

 

4/30/2026

 

—

 

15.3

 

Tax exempt bonds - secured by 1 property

 

5.875%

 

5.875%

 

14,700

 

12/1/2027

 

14,700

 

16.9

 

Weighted average rate / total secured fixed rate debt

 

6.657%

 

6.714%

 

$

451,561

 

 

 

$

384,814

 

8.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage - secured by 28 properties (4) 

 

6.393%

 

6.393%

 

$

202,449

 

9/1/2019

 

$

176,119

 

8.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate / total secured debt

 

6.576%

 

6.615%

 

$

654,010

 

 

 

$

560,933

 

8.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 80 b.p.) (6) 

 

1.060%

 

1.060%

 

$

128,000

 

12/31/2011

 

$

128,000

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2012

 

8.625%

 

8.625%

 

$

225,000

 

1/15/2012

 

$

225,000

 

1.0

 

Senior notes due 2020

 

6.750%

 

6.750%

 

200,000

 

4/15/2020

 

200,000

 

9.3

 

Weighted average rate / total unsecured fixed rate debt

 

7.743%

 

7.743%

 

$

425,000

 

 

 

$

425,000

 

4.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate / total unsecured debt

 

6.196%

 

6.196%

 

$

553,000

 

 

 

$

553,000

 

4.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average rate / total secured fixed rate debt

 

6.657%

 

6.714%

 

$

451,561

 

 

 

$

384,814

 

8.0

 

Weighted average rate / total secured variable rate debt

 

6.393%

 

6.393%

 

202,449

 

 

 

176,119

 

8.7

 

Weighted average rate / total unsecured floating rate debt

 

1.060%

 

1.060%

 

128,000

 

 

 

128,000

 

1.0

 

Weighted average rate / total unsecured fixed rate debt

 

7.743%

 

7.743%

 

425,000

 

 

 

425,000

 

4.9

 

Weighted average rate / total debt

 

6.402%

 

6.423%

 

$

1,207,010

 

 

 

$

1,113,933

 

6.3

 

 

(1)

Excludes $250.0 million principal balance of our 4.30% senior notes due 2016 issued by us in January 2011.

(2)

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.

(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)

These two mortgages are secured by one property.

(6)

Represents amounts outstanding on SNH’s $550.0 million revolving credit facility at December 31, 2010.

 

15


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

DEBT MATURITY SCHEDULE (1)

(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

(2)

Rate Debt

 

Total

 

2011

 

$

6,791

 

$

2,349

 

$

128,000

 

$

—

 

$

137,140

 

2012

 

38,949

 

2,469

 

—

 

225,000

 

266,418

 

2013

 

34,099

 

2,670

 

—

 

—

 

36,769

 

2014

 

6,045

 

2,848

 

—

 

—

 

8,893

 

2015

 

6,502

 

3,037

 

—

 

—

 

9,539

 

2016

 

6,935

 

3,205

 

—

 

—

 

10,140

 

2017

 

48,549

 

3,453

 

—

 

—

 

52,002

 

2018

 

6,690

 

3,683

 

—

 

—

 

10,373

 

2019

 

272,001

 

178,735

 

—

 

—

 

450,736

 

2020 and thereafter

 

25,000

 

—

 

—

 

200,000

 

225,000

 

 

 

$

451,561

 

$

202,449

 

$

128,000

 

$

425,000

 

$

1,207,010

 

 

(1)           Excludes $250.0 million principal balance of our 4.30% senior notes due 2016 issued by us in January 2011.

(2)           Represents amounts outstanding on SNH’s $550.0 million revolving credit facility at December 31, 2010.

 

16


 

Senior Housing Properties Trust

Supplemental Operating and Financial Data

December 31, 2010

 

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

 

 

 

As of and For the Three Months Ended

 

 

 

12/31/2010

 

9/30/2010

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

35.5%

 

36.4%

 

36.1%

 

35.0%

 

34.9%

 

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

 

32.0%

 

32.3%

 

32.3%

 

31.2%

 

31.4%

 

Total debt / total market capitalization

 

27.9%

 

26.7%

 

29.7%

 

26.9%

 

27.2%

 

Total debt / total book capitalization

 

36.2%

 

37.1%

 

36.7%

 

35.5%

 

35.4%

 

Secured debt / total assets

 

19.3%

 

21.9%

 

22.0%

 

22.2%

 

22.1%

 

Variable rate debt / total debt

 

27.6%

 

19.8%

 

18.9%

 

25.2%

 

25.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (2) / interest expense

 

3.7x

 

3.6x

 

3.6x

 

4.0x

 

3.7x

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Debt Covenants (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / adjusted total assets - allowable maximum 60.0%

 

30.8%

 

31.2%

 

31.1%

 

30.3%

 

30.5%

 

Secured debt / adjusted total assets - allowable maximum 40.0%

 

16.7%

 

18.8%

 

19.0%

 

19.2%

 

19.3%

 

Consolidated income available for debt service / debt service - required minimum 1.50x / 2.00x

 

3.72x

 

3.75x

 

3.70x

 

3.57x

 

3.84x

 

Total unencumbered assets to unsecured debt - required minimum 1.50x

 

5.75x

 

6.31x

 

6.42x

 

7.05x

 

7.00x

 

 

(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

 

ACQUISITIONS / DISPOSITIONS INFORMATION SINCE 1/1/2010

(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 year ended December 31, 2010.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOB Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase

 

 

 

Average

 

 

 

 

 

Date 

 

 

 

 

 

Number of

 

 

 

Purchase

 

Price

 

Cap

 

Remaining

 

Percent

 

 

 

Acquired

 

Location

 

Type of Property

 

Properties

 

Sq. Ft.

 

Price (2)

 

per Sq. Ft.

 

Rate (3)

 

Lease Term (4)

 

Leased (5)

 

Major Tenant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4/1/2010

 

Colorado

 

Clinic

 

1

 

15

 

$

4,450

 

$

297

 

9.8%

 

9.8

 

100.0%

 

Clear Creek Surgery Center LLC

 

6/4/2010

 

Texas

 

Medical Office

 

1

 

56

 

12,175

 

217

 

9.7%

 

14.0

 

100.0%

 

Covenant Health System

 

9/16/2010

 

Illinois

 

Medical Office

 

1

 

65

 

18,400

 

283

 

8.1%

 

7.5

 

88.0%

 

Northwest Community Health Services, Inc.

 

9/30/2010

 

Georgia

 

Medical Office

 

1

 

38

 

9,800

 

258

 

8.5%

 

8.3

 

91.0%

 

Wilder Dialysis LLC (Davita)

 

10/26/2010

 

Texas

 

Clinic

 

1

 

59

 

15,000

 

254

 

9.2%

 

13.8

 

100.0%

 

Montgomery County Management Company, LLC

 

11/22/2010

 

California

 

Medical Office

 

2

 

331

 

226,400

 

684

 

9.0%

 (6)

3.1

 

99.9%

 

Cedars Sinai Medical Center

 

12/22/2010

 

Minnesota

 

Medical Office

 

1

 

141

 

16,880

 

120

 

9.0%

 (6)

4.6

 

100.0%

 

Prime Therapeutics LLC

 

12/22/2010

 

Texas

 

Medical Office

 

1

 

30

 

5,360

 

179

 

9.0%

 (6)

4.0

 

100.0%

 

HCA Inc.

 

12/22/2010

 

Pennsylvania

 

Medical Office

 

1

 

132

 

9,921

 

75

 

9.0%

 (6)

4.0

 

77.5%

 

Aetna Life Insurance

 

12/22/2010

 

Pennsylvania

 

Medical Office

 

1

 

50

 

5,501

 

110

 

9.0%

 (6)

1.3

 

100.0%

 

Merck & Co., Inc.

 

12/22/2010

 

Connecticut

 

Medical Office

 

1

 

32

 

3,714

 

116

 

9.0%

 (6)

2.6

 

100.0%

 

Source Medical Solutions, Inc.

 

12/22/2010

 

New Mexico

 

Medical Office

 

1

 

244

 

29,386

 

120

 

9.0%

 (6)

2.3

 

70.6%

 

Boeing Corporation

 

12/22/2010

 

South Carolina

 

Medical Office

 

1

 

54

 

4,702

 

87

 

9.0%

 (6)

4.8

 

100.0%

 

PSS World Medical, Inc.

 

12/22/2010

 

South Carolina

 

Medical Office

 

1

 

50

 

5,266

 

105

 

9.0%

 (6)

1.7

 

100.0%

 

Medical Mutual of Ohio

 

12/22/2010

 

Connecticut

 

Medical Office

 

1

 

65

 

6,206

 

95

 

9.0%

 (6)

3.1

 

100.0%

 

The Blackstone Group L.P.

 

12/22/2010

 

Massachusetts

 

Medical Office

 

3

 

315

 

31,126

 

99

 

9.0%

 (6)

6.6

 

100.0%

 

Covidien PLC

 

12/22/2010

 

New Mexico

 

Medical Office

 

4

 

324

 

11,331

 

35

 

9.0%

 (6)

3.5

 

100.0%

 

Presbyterian Healthcare Services

 

12/22/2010

 

Arizona

 

Medical Office

 

1

 

126

 

11,472

 

91

 

9.0%

 (6)

8.8

 

100.0%

 

Blue Cross Blue Shield of Arizona

 

12/22/2010

 

Ohio

 

Medical Office

 

1

 

125

 

2,821

 

23

 

9.0%

 (6)

3.3

 

100.0%

 

Cardinal Health Inc.

 

12/22/2010

 

New Mexico

 

Medical Office

 

1

 

48

 

4,044

 

84

 

9.0%

 (6)

3.9

 

100.0%

 

Sitel Operating Corporation

 

1/25/2011

 

Minnesota

 

Medical Office

 

1

 

83

 

14,150

 

171

 

9.7%

 

8.2

 

100.0%

 

WuXi AppTec

 

1/26/2011

 

Massachusetts

 

Medical Office

 

1

 

99

 

28,446

 

287

 

9.0%

 (6)

15.2

 

100.0%

 

Children’s Hospital Corp.

 

1/26/2011

 

New Hampshire

 

Medical Office

 

1

 

211

 

25,343

 

120

 

9.0%

 (6)

3.3

 

100.0%

 

Anthem Health Plans of New Hampshire, Inc.

 

1/26/2011

 

Georgia

 

Medical Office

 

1

 

95

 

17,773

 

187

 

9.0%

 (6)

2.7

 

100.0%

 

The Emory Clinic, Inc.

 

1/26/2011

 

Pennsylvania

 

Medical Office

 

1

 

235

 

13,306

 

57

 

9.0%

 (6)

2.1

 

100.0%

 

Owens & Minor Distribution

 

1/26/2011

 

Pennsylvania

 

Medical Office

 

1

 

31

 

3,950

 

127

 

9.0%

 (6)

1.9

 

86.0%

 

Workflow Solutions LLC

 

1/26/2011

 

Texas

 

Medical Office

 

1

 

66

 

7,052

 

107

 

9.0%

 (6)

4.6

 

61.0%

 

Covenant Management Systems

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total MOB Acquisitions

 

33

 

3,120

 

$

543,975

 

$

174

 

9.0%

 

5.5

 

95.3%

 

 

 

 

Dispositions:

 

Date

 

 

 

 

 

Number of

 

 

 

 

 

Book Gain

 

Sold 

 

Location

 

Type of Property

 

Properties

 

Sale Price (7)

 

NBV

 

on Sale

 

8/1/2010

 

Nebraska

 

Skilled nursing

 

4

 

$

1,450

 

$

1,341

 

$

109

 

 

(1)

 

During the fourth quarter and year ended December 31, 2010, pursuant to the terms of our leases with Five Star, we purchased from Five Star, at cost, $8.1 million and $31.9 million, respectively, of improvements made to our properties leased by Five Star, and, as a result, Five Star’s annual rent payable to us increased approximately $650 and $2.6 million, respectively.

(2)

 

Purchase price includes real estate and related intangible assets and liabilities and excludes closing costs.

(3)

 

Represents the ratio of the estimated current GAAP based annual rental income less property operating expenses, if any, to the purchase price on the date of acquisition.

(4)

 

Weighted average remaining lease term based on rental income.

(5)

 

Percent leased as of acquisition date.

(6)

 

During the fourth quarter of 2010, we entered a series of agreements to acquire 27 MOBs for an aggregate purchase price of $470.0 million, excluding closing costs. The cap rate presented for these properties is the expected cap rate for the 27 properties combined.

(7)

 

Sale price excludes closing costs, if any.

 

18

 


 

PORTFOLIO INFORMATION

 


 

 Senior Housing Properties Trust

 Supplemental Operating and Financial Data

  December 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

 

Carrying Value of

 

 

 

per Unit / Bed

 

Annualized

 

 

 

Living Unit, Bed or

 

 

 

Properties

 

or Square Feet

 

Investment (1)

 

Percent

 

or Square Foot

 

Rental Income (2)

 

Percent

 

Square Foot (3)

 

Facility Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent living (4)

 

43

 

11,524

 

$

1,137,193

 

30.2%

 

$

98.7

 

$

112,293

 

28.7%

 

$

9,744

 

Assisted living (4)

 

131

 

9,342

 

1,035,639

 

27.5%

 

$

110.9

 

96,346

 

24.6%

 

$

10,313

 

Nursing homes (4)

 

52

 

5,514

 

225,629

 

6.0%

 

$

40.9

 

19,734

 

5.1%

 

$

3,579

 

Rehabilitation hospitals (5)

 

2

 

364

 

69,075

 

1.9%

 

$

189.8

 

10,323

 

2.6%

 

NA

 

Wellness centers (6) 

 

10

 

812,000

sq. ft.

180,017

 

4.8%

 

$

221.7

 

17,337

 

4.4%

 

NA

 

Medical office buildings (MOBs) (7) 

 

82

 

5,162,635

sq. ft.

1,114,159

 

29.6%

 

$

215.8

 

135,381

 

34.6%

 

$

26

 

Total

 

320

 

 

 

$

3,761,712

 

100.0%

 

 

 

$

391,414

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Five Star (Lease No. 1)

 

88

 

6,421

 

$

632,136

 

16.8%

 

$

98.4

 

$

54,271

 

13.9%

 

$

8,452

 

Five Star (Lease No. 2) (5)

 

46

 

5,885

 

512,519

 

13.6%

 

$

87.1

 

50,464

 

12.9%

 

$

7,271

 

Five Star (Lease No. 3)

 

28

 

5,618

 

632,678

 

16.8%

 

$

112.6

 

63,160

 

16.1%

 

$

11,242

 

Five Star (Lease No. 4)

 

26

 

2,720

 

254,822

 

6.8%

 

$

93.7

 

23,341

 

6.0%

 

$

8,581

 

Sunrise Senior Living, Inc. / Marriott (8)

 

14

 

4,091

 

325,165

 

8.7%

 

$

79.5

 

32,493

 

8.3%

 

$

7,943

 

Brookdale Senior Living, Inc.

 

18

 

894

 

61,122

 

1.6%

 

$

68.4

 

8,443

 

2.1%

 

$

9,444

 

6 private companies (combined)

 

8

 

1,115

 

49,094

 

1.3%

 

$

44.0

 

6,524

 

1.7%

 

$

5,851

 

Wellness centers (6)

 

10

 

812,000

sq. ft.

180,017

 

4.8%

 

$

221.7

 

17,337

 

4.4%

 

NA

 

Multi-tenant MOBs (7)

 

82

 

5,162,635

sq. ft.

1,114,159

 

29.6%

 

$

215.8

 

135,381

 

34.6%

 

$

26

 

Total

 

320

 

 

 

$

3,761,712

 

100.0%

 

 

 

$

391,414

 

100.0%

 

 

 

 

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

(2)          Annualized rental income is rents pursuant to signed leases as of 12/31/2010, including estimated expense reimbursements for certain net and modified gross leases and excluding lease value amortization in certain of the MOBs and wellness centers.  Includes percentage rent totaling $10.3 million based on increases in gross revenues at certain short and long term residential care facilities.

(3)          Represents annualized rental income divided by the number of living units, beds or square feet leased at December 31, 2010.

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

(5)          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.

(6)          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.

(7)          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.

(8)          Marriott guarantees this lease.

 

20


 

 Senior Housing Properties Trust

 Supplemental Operating and Financial Data 

  December 31, 2010

 

OCCUPANCY BY PROPERTY TYPE AND TENANT

 

 

 

As Of and For the Twelve Months Ended

 

 

 

9/30/2010

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

9/30/2009

 

Property Type:

 

 

 

 

 

 

 

 

 

 

 

Independent living

 

87%

 

87%

 

87%

 

87%

 

88%

 

Assisted living

 

88%

 

88%

 

88%

 

88%

 

88%

 

Nursing homes

 

83%

 

84%

 

84%

 

84%

 

84%

 

Rehabilitation hospitals

 

59%

 

58%

 

59%

 

60%

 

61%

 

Wellness centers

 

100%

 

100%

 

100%

 

100%

 

100%

 

MOBs

 

97%

 

97%

 

97%

 

96%

 

98%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant:

 

 

 

 

 

 

 

 

 

 

 

Five Star (Lease No. 1)

 

87%

 

88%

 

88%

 

88%

 

88%

 

Five Star (Lease No. 2)

 

82%

 

82%

 

82%

 

82%

 

83%

 

Five Star (Lease No. 3)

 

88%

 

88%

 

88%

 

89%

 

90%

 

Five Star (Lease No. 4)

 

84%

 

84%

 

84%

 

85%

 

85%

 

Sunrise Senior Living, Inc. / Marriott

 

90%

 

89%

 

89%

 

89%

 

90%

 

Brookdale Senior Living, Inc.

 

93%

 

92%

 

91%

 

91%

 

92%

 

6 private senior living companies (combined)

 

85%

 

85%

 

84%

 

84%

 

84%

 

Wellness centers

 

100%

 

100%

 

100%

 

100%

 

100%

 

Multi-tenant MOBs

 

97%

 

97%

 

97%

 

96%

 

98%

 

 

All tenant operating data presented are based upon the operating results provided by our tenants for the indicated periods. Mutli-tenant MOBs operating data are presented as of the period ended, all other tenants’ operating data are presented for the twelve months ended.  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

  December 31, 2010

 

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

 

 

 

For the Twelve Months Ended

 

 

 

9/30/2010

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

9/30/2009

 

Property Type:

 

 

 

 

 

 

 

 

 

 

 

Independent living

 

79%

 

79%

 

79%

 

78%

 

78%

 

Assisted living

 

92%

 

92%

 

92%

 

92%

 

92%

 

Nursing homes

 

27%

 

27%

 

27%

 

27%

 

27%

 

Rehabilitation hospitals

 

35%

 

34%

 

34%

 

33%

 

34%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant:

 

 

 

 

 

 

 

 

 

 

 

Five Star (Lease No. 1)

 

65%

 

64%

 

63%

 

62%

 

61%

 

Five Star (Lease No. 2)

 

52%

 

52%

 

52%

 

52%

 

53%

 

Five Star (Lease No. 3)

 

87%

 

87%

 

87%

 

87%

 

87%

 

Five Star (Lease No. 4)

 

66%

 

66%

 

67%

 

67%

 

67%

 

Sunrise Senior Living, Inc. / Marriott

 

74%

 

74%

 

73%

 

71%

 

68%

 

Brookdale Senior Living, Inc.

 

99%

 

99%

 

100%

 

100%

 

100%

 

6 private senior living companies (combined)

 

23%

 

23%

 

23%

 

23%

 

23%

 

 

(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 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

  December 31, 2010

 

 

RENT COVERAGE BY TENANT (EXCLUDING MOBs)

 

 

 

For the Twelve Months Ended

 

Tenant 

 

9/30/2010

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

9/30/2009

 

Five Star (Lease No. 1)

 

1.26x

 

1.28x

 

1.28x

 

1.27x

 

1.28x

 

Five Star (Lease No. 2)

 

1.34x

 

1.33x

 

1.32x

 

1.31x

 

1.29x

 

Five Star (Lease No. 3)

 

1.51x

 

1.49x

 

1.48x

 

1.51x

 

1.54x

 

Five Star (Lease No. 4)

 

1.12x

 

1.11x

 

1.05x

 

1.05x

 

1.09x

 

Sunrise Senior Living, Inc. / Marriott

 

1.35x

 

1.34x

 

1.38x

 

1.39x

 

1.38x

 

Brookdale Senior Living, Inc.

 

2.18x

 

2.14x

 

2.11x

 

2.11x

 

2.09x

 

6 private senior living companies (combined)

 

2.14x

 

2.13x

 

2.04x

 

1.94x

 

1.96x

 

Wellness centers

 

2.18x

 

2.21x

 

2.23x

 

2.27x

 

2.33x

 

 

All tenant operating data presented are based upon the operating results provided by our tenants for the indicated 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

  December 31, 2010

 

PORTFOLIO LEASE EXPIRATION SCHEDULE

 (dollars in thousands)

 

 

 

Annualized Rental Income (1)

 

 

 

 

 

Year

 

Short and Long
Term Residential
Care Facilities

 

MOBs

 

Wellness
Centers

 

Total

 

Percent of
Total
Annualized
Rental
Income
Expiring

 

Cumulative
Percentage of
Annualized Rental
Income Expiring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

$

—

 

$

6,611

 

$

—

 

$

6,611

 

1.7%

 

1.7%

 

2012

 

—

 

14,660

 

—

 

14,660

 

3.7%

 

5.4%

 

2013

 

32,493

 

8,293

 

—

 

40,786

 

10.4%

 

15.8%

 

2014

 

—

 

16,505

 

—

 

16,505

 

4.2%

 

20.0%

 

2015

 

3,013

 

15,148

 

—

 

18,161

 

4.6%

 

24.6%

 

2016

 

2,912

 

9,135

 

—

 

12,047

 

3.1%

 

27.7%

 

2017

 

31,784

 

10,021

 

—

 

41,805

 

10.7%

 

38.4%

 

2018

 

—

 

3,605

 

—

 

3,605

 

0.9%

 

39.3%

 

2019

 

599

 

23,579

 

—

 

24,178

 

6.2%

 

45.5%

 

2020 and thereafter

 

167,895

 

27,824

 

17,337

 

213,056

 

54.5%

 

100.0%

 

Total

 

$

238,696

 

$

135,381

 

$

17,337

 

$

391,414

 

100.0%

 

 

 

 

Average remaining lease term for all properties (weighted by rent): 10.7 years

 

 

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

 

 

 

Living Units / Beds

 

Square Feet

 

Year

 

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

 

Percent of
Total Living
Units / Beds
Expiring

 

Cumulative
Percentage
of Total
Living Units /
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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

—

 

0.0%

 

0.0%

 

136,683

 

—

 

136,683

 

2.3%

 

2.3%

 

2012

 

—

 

0.0%

 

0.0%

 

577,686

 

—

 

577,686

 

9.9%

 

12.2%

 

2013

 

4,091

 

15.3%

 

15.3%

 

228,133

 

—

 

228,133

 

3.9%

 

16.1%

 

2014

 

—

 

0.0%

 

15.3%

 

786,174

 

—

 

786,174

 

13.5%

 

29.6%

 

2015

 

423

 

1.6%

 

16.9%

 

634,637

 

—

 

634,637

 

10.9%

 

40.5%

 

2016

 

517

 

1.9%

 

18.8%

 

374,672

 

—

 

374,672

 

6.4%

 

46.9%

 

2017

 

3,614

 

13.5%

 

32.3%

 

402,154

 

—

 

402,154

 

6.9%

 

53.8%

 

2018

 

—

 

0.0%

 

32.3%

 

102,234

 

—

 

102,234

 

1.8%

 

55.6%

 

2019

 

175

 

0.7%

 

33.0%

 

793,347

 

—

 

793,347

 

13.6%

 

69.2%

 

2020 and thereafter

 

17,924

 

67.0%

 

100.0%

 

972,724

 

812,000

 

1,784,724

 

30.8%

 

100.0%

 

Total

 

26,744

 

100.0%

 

 

 

5,008,444

 

812,000

 

5,820,444

 

100.0%

 

 

 

 

(1)          Annualized rental income is rents pursuant to signed leases as of 12/31/2010, including expense reimbursements for certain net and modified gross leases and excluding lease value amortization in certain of the MOBs and wellness centers.  Includes percentage rent totaling $10.3 million based on increases in gross revenues at certain short and long term residential care facilities.

 

24