Normalized FFO Per Share for the Fourth Quarter
Increases by 4.7% to $0.45 Compared to Last Year
Same Property NOI Growth in Each Major Business
Segment
Senior Housing Properties Trust (NYSE: SNH) today announced its
financial results for the quarter and year ended December 31,
2014.
SNH President and Chief Operating Officer
David Hegarty made the following statement:
“I am pleased with our business performance
in the fourth quarter. In addition to growing Normalized FFO per
share by 4.7% during the quarter, we generated strong operating
results in each of our three major business segments, including
growth in same property NOI of 3.5% in our triple net lease senior
living portfolio and 1.6% in our managed senior living portfolio.
We also generated a 4.7% increase in same property Cash Basis NOI
in our MOB portfolio. In addition, we are excited about the
recently closed MOB portfolio acquisition for $539 million as well
as the recently announced senior living acquisition for $790
million, both of which we believe improves the characteristics of
our portfolio of properties.”
Results for the quarter ended December 31, 2014:
Normalized funds from operations, or Normalized FFO, for the
quarter ended December 31, 2014 were $91.3 million, or $0.45 per
basic and diluted share. This compares to Normalized FFO for the
quarter ended December 31, 2013 of $80.5 million, or $0.43 per
basic and diluted share. The increase in Normalized FFO per share
is primarily the result of acquisitions during 2014.
Net income was $45.3 million, or $0.22 per basic and diluted
share, for the quarter ended December 31, 2014, compared to net
income of $72.2 million, or $0.38 per basic and diluted share, for
the quarter ended December 31, 2013.
The basic and diluted weighted average number of common shares
outstanding were 203.7 million and 203.8 million, respectively, for
the quarter ended December 31, 2014, and 188.0 million and 188.2
million, respectively, for the quarter ended December 31, 2013.
A reconciliation of net income determined in accordance with
U.S. generally accepted accounting principles, or GAAP, to funds
from operations, or FFO, and Normalized FFO for the quarters ended
December 31, 2014 and 2013 appears later in this press release.
Results for the year ended December 31, 2014:
Normalized FFO for the year ended December 31, 2014 were $347.6
million, or $1.75 per basic and diluted share. This compares to
Normalized FFO for the year ended December 31, 2013 of $317.4
million, or $1.69 per basic and diluted share.
Net income was $158.6 million, or $0.80 per basic and diluted
share, for the year ended December 31, 2014, compared to net income
of $151.2 million, or $0.81 per basic and diluted share, for the
year ended December 31, 2013.
The basic and diluted weighted average number of common shares
outstanding were 198.9 million for the year ended December 31,
2014, and 187.3 million and 187.4 million, respectively, for the
year ended December 31, 2013.
A reconciliation of net income determined in accordance with
GAAP to FFO and Normalized FFO for the year ended December 31, 2014
and 2013 appears later in this press release.
Segment Operating Results for the quarter ended December 31,
2014:
For the three months ended December 31, 2014, 39.5% of SNH’s net
operating income, or NOI, came from 98 MOBs including 9.1 million
square feet of leaseable area. As of December 31, 2014, 95.9% of
our MOB square feet were leased, compared to 95.6% as of September
30, 2014 and 94.9% as of December 31, 2013. Same property occupancy
for MOBs owned continuously since October 1, 2013 increased to
95.3% as of December 31, 2014, compared to 95.0% as of December 31,
2013. Same property NOI and cash basis NOI increased 2.8% and 4.7%,
respectively, during the quarter ended December 31, 2014.
For the three months ended December 31, 2014, 45.0% of SNH’s
consolidated NOI came from 215 triple net leased senior living
communities with 24,136 living units. Occupancy at triple net
leased senior living communities was 84.6% during the most recently
reported period, compared to 85.3% during the comparable period
last year.(1) Same property occupancy at triple net leased senior
living communities owned continuously since October 1, 2013 was
85.4% during the most recently reported period, compared to 85.5%
during the comparable period last year.(1) Same property NOI
increased 3.5% during the quarter ended December 31, 2014.
For the three months ended December 31, 2014, 12.4% of SNH’s NOI
came from 46 managed senior living communities with 7,278 living
units. Occupancy at managed senior living communities was 88.4%
during the quarter ended December 31, 2014, compared to 87.7%
during the comparable period last year. Same property occupancy for
managed senior living communities owned continuously since October
1, 2013 increased to 88.3% during the quarter ended December 31,
2014, from 87.8% during the comparable period last year. Same
property NOI increased 1.6% during the quarter ended December 31,
2014.
A reconciliation of NOI and cash basis NOI to net income,
determined in accordance with GAAP, for the quarters and years
ended December 31, 2014 and 2013 appears later in this press
release.
(1) Most recent reported data is based upon the operating
results provided by our tenants for the 12 months ended September
30, 2014 and 2013 or the most recent prior period for which tenant
operating results are available.
Recent Investment and Sales Activities:
In December 2014, SNH agreed to acquire 38 senior living
communities with 3,466 units located in 16 states for $790.0
million, excluding closing costs, and including the assumption of
approximately $153.0 million of mortgage debt with a weighted
average interest rate of 4.8%. Eighteen of the 38 communities, with
1,847 living units, are currently leased to six senior living
operators. The remaining 20 communities, with 1,619 living units,
are currently managed by six senior living operators (including one
manager who also leases one of the 18 leased communities).
In January 2015, SNH acquired 23 MOBs, for approximately $539.0
million, including the assumption of approximately $30.0 million of
mortgage debt with a weighted average interest rate of 4.7%. The
MOBs contain approximately 2.2 million square feet and are located
in 12 states. The 23 properties were purchased in connection with
the acquisition by Select Income REIT (NYSE: SIR) of Cole Corporate
Income Trust, or CCIT.
In December 2014, SNH acquired one senior living community with
52 private pay assisted living units located in Jackson, WI for
approximately $7.0 million, excluding closing costs. Also in
December 2014, SNH acquired one senior living community with 176
private pay independent and assisted living units located in
Madison, WI for approximately $40.4 million, excluding closing
costs. SNH acquired these communities using taxable REIT subsidiary
structures and entered into long term management agreements with
Five Star Quality Care, Inc. to manage these communities.
In October 2014, SNH sold one senior living community with 70
units located in Virginia for $2.85 million, excluding closing
costs. Also in October 2014, SNH sold two senior living communities
with 177 units located in Arizona for $5.9 million, excluding
closing costs. In the aggregate for the year ended December 31,
2014, the majority of the combined revenues from the three sold
senior living communities came from government funded programs,
including Medicare and Medicaid. In February 2015, SNH sold one
senior living community with 120 units located in Pennsylvania for
$250,000, excluding closing costs.
SNH is also currently marketing for sale three senior living
communities with 192 living units classified as held for sale and
one MOB (four buildings) with an aggregate of 323,541 square feet
that is included in discontinued operations. In aggregate for the
year ended December 31, 2014, the majority of the combined revenues
generated from the three senior living communities listed for sale
came from government funded programs, including Medicare and
Medicaid.
Recent Financing Activities:
In February 2015, SNH issued 31,050,000 common shares in a
public offering, raising gross proceeds of approximately $689.3
million, before underwriting discounts and expenses. SNH used part
of the net proceeds of this offering (approximately $660.0 million)
to repay borrowings outstanding under its unsecured revolving
credit facility and intends to use the remainder for general
business purposes, including the possible partial funding of the
pending acquisition noted above.
In October 2014, SNH prepaid a $14.7 million loan incurred in
connection with certain revenue bonds that were scheduled to mature
in December 2027. That loan had an interest rate of 5.9%. Also in
October 2014, SNH prepaid a mortgage note encumbering one property
with a principal balance of approximately $11.9 million and an
interest rate of 6.3% that was scheduled to mature in May 2015. In
December 2014, SNH prepaid a mortgage note encumbering one property
with a principal balance of $11.3 million and an interest rate of
6.4% that was scheduled to mature in July 2015. SNH recognized a
net loss on early extinguishment of debt of approximately $12,000
related to these mortgage note prepayments.
Conference Call:
On Thursday, February 26, 2015, at 1:00 p.m. Eastern Time, David
J. Hegarty, President and Chief Operating Officer, and Richard A.
Doyle, Chief Financial Officer, will host a conference call to
discuss the financial results for the quarter and year ended
December 31, 2014. The conference call telephone number is (800)
230-1085. Participants calling from outside the United States and
Canada should dial (612) 288-0329. No pass code is necessary to
access the call from either number. Participants should dial in
about 15 minutes prior to the scheduled start of the call. A replay
of the conference call will be available through 11:59 p.m. Eastern
Time on Thursday, March 5, 2015. To hear the replay, dial (320)
365-3844. The replay pass code is 352026.
A live audio webcast of the conference call will also be
available in a listen-only mode on the company’s website, which is
located at www.snhreit.com. Participants wanting to access the
webcast should visit the company’s website about five minutes
before the call. The archived webcast will be available for replay
on the company’s website for about one week after the call.
The transcription, recording and retransmission in any way of
SNH’s fourth quarter conference call are strictly prohibited
without the prior written consent of SNH.
Supplemental Data:
A copy of SNH’s Fourth Quarter 2014 Supplemental Operating and
Financial Data is available for download from the SNH website,
www.snhreit.com. SNH’s website is not incorporated as part of this
press release.
SNH is a real estate investment trust, or REIT, that owned 370
properties (397 buildings) located in 38 states and Washington,
D.C. as of December 31, 2014. SNH is headquartered in Newton,
MA.
Please see the pages attached hereto for a more detailed
statement of SNH’s operating results and financial condition.
WARNING CONCERNING
FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO,
WHENEVER SNH USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”,
“INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS, SNH IS MAKING
FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE
BASED UPON SNH’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT
FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT
OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN
OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF
VARIOUS FACTORS. FOR EXAMPLE:
- THIS PRESS RELEASE QUOTES DAVID HEGARTY
AS BELIEVING THAT THE RECENTLY CLOSED MOB PORTFOLIO ACQUISITION FOR
$539 MILLION AS WELL AS THE RECENTLY ANNOUNCED SENIOR LIVING
ACQUISITION FOR $790 MILLION IMPROVES THE CHARACTERISTICS OF SNH’S
PORTFOLIO OF PROPERTIES. MR. HEGARTY’S OR SNH’S BELIEFS ABOUT THE
QUALITY OF SNH’S PROPERTY CHARACTERISTICS ARE, IN PART, PERSONAL
AND SUBJECTIVE, AND THERE IS NO GUARANTEE THAT THESE ACQUISITIONS
WILL IMPROVE THE CHARACTERISTICS OF SNH’S PORTFOLIO OF PROPERTIES.
IN FACT, MARKET PARTICIPANTS MAY HAVE DIFFERENT BELIEFS OR REACH
DIFFERENT CONCLUSIONS ABOUT THE IMPACT OF THESE ACQUISITIONS ON THE
CHARACTERISTICS OF SNH’S PORTFOLIO OF PROPERTIES.
- THIS PRESS RELEASE STATES THAT SNH HAS
AGREED TO ACQUIRE 38 SENIOR LIVING COMMUNITIES FOR APPROXIMATELY
$790 MILLION. THIS ACQUISITION IS SUBJECT TO CLOSING CONDITIONS.
THESE CONDITIONS MAY NOT BE SATISFIED AND THE ACQUISITION MAY NOT
OCCUR, MAY BE DELAYED OR THE PRICE AND TERMS MAY CHANGE.
- THIS PRESS RELEASE STATES THAT SNH
CURRENTLY EXPECTS TO ASSUME APPROXIMATELY $153 MILLION OF MORTGAGE
DEBT ON CERTAIN OF THE SENIOR LIVING COMMUNITIES TO BE ACQUIRED.
SNH’S ASSUMPTION OF THE $153 MILLION OF MORTGAGE DEBT WILL REQUIRE
THE APPROVAL OF THE MORTGAGEES WHICH MAY NOT BE OBTAINED.
- THIS PRESS RELEASE STATES THAT SNH HAS
THREE SENIOR LIVING COMMUNITIES AND ONE MOB CURRENTLY LISTED FOR
SALE. SNH MAY NOT BE ABLE TO SELL THESE PROPERTIES ON TERMS
ACCEPTABLE TO IT, AND THE SALES OF ANY OR ALL OF THESE PROPERTIES
MAY NOT OCCUR.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION “RISK
FACTORS” IN ITS PERIODIC REPORTS, OR INCORPORATED THEREIN,
IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES
FROM SNH’S FORWARD LOOKING STATEMENTS. SNH’S FILINGS WITH THE SEC
ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON SNH’S FORWARD LOOKING
STATEMENTS.
EXCEPT AS REQUIRED BY LAW, SNH DOES NOT INTEND TO UPDATE OR
CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE.
SENIOR HOUSING PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF
INCOME
(amounts in thousands, except per share
data)
(unaudited)
Three Months Ended Year Ended December
31, December 31, 2014
2013 2014 2013 Revenues:
Rental income $ 149,364 $ 122,912 $ 526,703 $ 459,380 Residents
fees and services 80,445 77,424 318,184
302,058 Total revenues 229,809 200,336 844,887 761,438
Expenses: Property operating expenses 84,268 76,985 324,564 299,878
Depreciation 50,257 38,554 185,391 153,026 General and
administrative 10,696 8,042 38,946 32,657 Acquisition related costs
1,957 788 4,607 3,378 Impairment of assets (10) 2,314
(10) 7,989 Total expenses 147,168
126,683 553,498 496,928 Operating income
82,641 73,653 291,389 264,510 Interest and other income 89
99 425 711 Interest expense (35,901) (29,284) (135,114) (117,819)
Loss on early extinguishment of debt (12) —
(12) (797)
Income from continuing operations before
income tax expense and equity in earnings of an
investee
46,817 44,468 156,688 146,605 Income tax expense (74) (195) (576)
(600) Equity in earnings of an investee 28 115
87 334 Income from continuing operations 46,771 44,388
156,199 146,339 Discontinued operations: (Loss) income from
discontinued operations (123) 1,281 1,362 5,043 Impairment of
assets from discontinued operations (4,260) (9,714)
(4,377) (37,610) Income before gain on sale of
properties 42,388 35,955 153,184 113,772 Gain on sale of properties
2,900 36,251 5,453 37,392 Net income $
45,288 $ 72,206 $ 158,637 $ 151,164 Weighted average common
shares outstanding (basic) 203,742 188,017
198,868 187,271 Weighted average common shares outstanding
(diluted) 203,754 188,168 198,894
187,414 Basic and diluted per common share amounts: Income
from continuing operations $ 0.24 $ 0.43 $ 0.81 $ 0.98 Loss from
discontinued operations (0.02) (0.05) (0.01)
(0.17) Net income $ 0.22 $ 0.38 $ 0.80 $ 0.81
SENIOR HOUSING PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF FUNDS FROM
OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS
(amounts in thousands, except per share
data)
(unaudited)
Calculation of Funds from Operations
(FFO) and Normalized FFO (1):
Three Months Ended Year Ended December 31,
December 31, 2014 2013
2014 2013 Net income $
45,288 $ 72,206 $ 158,637 $ 151,164 Depreciation expense from
continuing operations 50,257 38,554 185,391 153,026 Depreciation
expense from discontinued operations — — — 799 Gain on sale of
properties (2,900) (36,251) (5,453) (37,392) Impairment of assets
(10) 2,314 (10) 7,989 Impairment of assets from discontinued
operations 4,260 9,714 4,377 37,610 FFO
96,895 86,537 342,942 313,196 Estimated business management
incentive fees(2) — — — 75 Acquisition related costs from
continuing operations 1,957 788 4,607 3,378 Loss on early
extinguishment of debt 12 — 12 797 Percentage rent adjustment(3)
(7,600) (6,800) — — Normalized FFO $
91,264 $ 80,525 $ 347,561 $ 317,446 Weighted average shares
outstanding (basic) 203,742 188,017 198,868
187,271 Weighted average shares outstanding (diluted)
203,754 188,168 198,894 187,414 Basic
and diluted per common share amounts: FFO $ 0.48 $ 0.46 $ 1.72 $
1.67 Normalized FFO $ 0.45 $ 0.43 $ 1.75 $ 1.69 Net income $ 0.22 $
0.38 $ 0.80 $ 0.81 Distributions declared per share $ 0.39 $ 0.39 $
1.56 $ 1.56
(1) SNH calculates FFO and Normalized FFO as shown above. FFO is
calculated on the basis defined by the National Association of Real
Estate Investment Trusts, or NAREIT, which is net income,
calculated in accordance with GAAP, excluding any gain or loss on
sale of properties and impairment of real estate assets, plus real
estate depreciation and amortization, as well as certain other
adjustments currently not applicable to SNH. SNH’s calculation of
Normalized FFO differs from NAREIT’s definition of FFO because
SNH’s includes estimated percentage rent in the period to which it
estimates that it relates rather than when it is recognized as
income in accordance with GAAP, includes estimated business
management incentive fees, if any, only in the fourth quarter
versus the quarter they are recognized as expense in accordance
with GAAP and excludes acquisition related costs, gain or loss on
early extinguishment of debt, gain or loss on lease terminations
and loss on impairment of intangible assets, if any. SNH considers
FFO and Normalized FFO to be appropriate measures of operating
performance for a real estate investment trust, or REIT, along with
net income, operating income and cash flow from operating
activities. SNH believes that FFO and Normalized FFO provide useful
information to investors because by excluding the effects of
certain historical amounts, such as depreciation expense, FFO and
Normalized FFO may facilitate a comparison of its operating
performance between periods and with other REITs. FFO and
Normalized FFO are among the factors considered by SNH’s Board of
Trustees when determining the amount of distributions to
shareholders. Other factors include, but are not limited to,
requirements to maintain SNH’s status as a REIT, limitations in its
revolving credit facility agreement, term loan agreement and public
debt covenants, the availability of debt and equity capital, SNH’s
expectation of its future capital requirements and operating
performance and SNH’s expected needs and availability of cash to
pay its obligations. FFO and Normalized FFO do not represent cash
generated by operating activities in accordance with GAAP and
should not be considered as alternatives to net income, operating
income or cash flow from operating activities, determined in
accordance with GAAP, or as indicators of SNH’s financial
performance or liquidity, nor are these measures necessarily
indicative of sufficient cash flow to fund all of SNH’s needs.
These measures should be considered in conjunction with net income,
operating income and cash flow from operating activities as
presented in SNH’s Consolidated Statements of Income and
Comprehensive Income and Consolidated Statements of Cash Flows.
Other REITs and real estate companies may calculate FFO and
Normalized FFO differently than SNH does.
(2) Amounts represent estimated incentive fees under SNH’s
business management agreement payable in common shares after the
end of each calendar year calculated: (i) prior to 2014 based upon
increases in annual Normalized FFO per share and (ii) beginning in
2014 based on common share total return. In calculating net income
in accordance with GAAP, SNH recognizes an estimated business
management incentive fee expense, if any, each quarter. Although
SNH recognizes this expense, if any, each quarter for purposes of
calculating net income, SNH does not include these amounts in the
calculation of Normalized FFO until the fourth quarter, which is
when the actual expense amount for the year is determined.
Adjustments were made to prior period amounts to conform to the
current period Normalized FFO calculation.
(3) In calculating net income in accordance with GAAP, SNH
recognizes percentage rental income received for the first, second
and third quarters in the fourth quarter, which is when all
contingencies are met and the income is earned. Although SNH defers
recognition of this revenue until the fourth quarter for purposes
of calculating net income, it includes these estimated amounts in
its calculation of Normalized FFO for each quarter of the year. The
fourth quarter Normalized FFO calculation excludes the amounts
included during the first three quarters.
SENIOR HOUSING PROPERTIES TRUST
CALCULATION AND RECONCILIATION OF NET
OPERATING INCOME (NOI) AND CASH BASIS NOI
(amounts in thousands)
(unaudited)
For the Three Months Ended For the Year Ended
12/31/2014 12/31/2013
12/31/2014 12/31/2013
Calculation of
NOI and Cash Basis NOI (1):
Revenues: Rental income $149,364 $122,912 $526,703 $459,380
Residents fees and services 80,445 77,424 318,184 302,058 Total
revenues 229,809 200,336 844,887 761,438 Property operating
expenses 84,268 76,985 324,564 299,878 Property net operating
income (NOI): 145,541 123,351 520,323 461,560 Non cash straight
line rent adjustments (2,857) (1,832) (9,663) (7,245) Lease value
amortization (1,211) 863 (2,322) 3,555 Lease termination fees - (4)
- (11) Cash Basis NOI $141,473 $122,378 $508,338 $457,859
Reconciliation of
Cash Basis NOI to Net Income:
Cash Basis NOI $141,473 $122,378 $508,338 $457,859 Non cash
straight line rent adjustments 2,857 1,832 9,663 7,245 Lease value
amortization 1,211 (863) 2,322 (3,555) Lease termination fees - 4 -
11 Property NOI 145,541 123,351 520,323 461,560 Depreciation
expense (50,257) (38,554) (185,391) (153,026) General and
administrative expense (10,696) (8,042) (38,946) (32,657)
Acquisition related costs (1,957) (788) (4,607) (3,378) Impairment
of assets 10 (2,314) 10 (7,989) Operating income 82,641 73,653
291,389 264,510 Interest and other income 89 99 425 711
Interest expense (35,901) (29,284) (135,114) (117,819) Loss on
early extinguishment of debt (12) - (12) (797) Income before income
tax expense and equity in earnings of an investee 46,817 44,468
156,688 146,605 Income tax expense (74) (195) (576) (600) Equity in
earnings of an investee 28 115 87 334 Income from continuing
operations 46,771 44,388 156,199 146,339 Discontinued operations
(Loss) income from discontinued operations (123) 1,281 1,362 5,043
Impairment of assets from discontinued operations (4,260) (9,714)
(4,377) (37,610) Income before gain on sale of properties 42,388
35,955 153,184 113,772 Gain on sale of properties 2,900 36,251
5,453 37,392 Net income $45,288 $72,206 $158,637 $151,164
(1) The calculation of NOI and Cash Basis NOI excludes certain
components of net income in order to provide results that are more
closely related to SNH’s properties' results of operations. SNH
calculates NOI and Cash Basis NOI as shown above excluding
properties classified as discontinued operations. SNH defines NOI
as income from its real estate less its property operating
expenses. NOI excludes amortization of capitalized tenant
improvement costs and leasing commissions. SNH defines Cash Basis
NOI as NOI less non cash straight line rent adjustments, lease
value amortization and lease termination fees, if any. SNH
considers NOI and Cash Basis NOI to be appropriate supplemental
measures to net income because they may help both investors and
management to understand the operations of our properties. SNH uses
NOI and Cash Basis NOI internally to evaluate individual and
company-wide property level performance, and it believes that NOI
and Cash Basis NOI provide useful information to investors
regarding its results of operations because these measures reflect
only those income and expense items that are incurred at the
property level and may facilitate comparisons of its operating
performance between periods and with other REITs. NOI and Cash
Basis NOI do not represent cash generated by operating activities
in accordance with GAAP and should not be considered as an
alternative to net income, operating income or cash flow from
operating activities determined in accordance with GAAP, or as
indicators of SNH’s financial performance or liquidity, nor are
these measures necessarily indicative of sufficient cash flow to
fund all of SNH’s needs. These measures should be considered in
conjunction with net income, operating income and cash flow from
operating activities as presented in SNH’s Consolidated Statements
of Income and Comprehensive Income and Consolidated Statements of
Cash Flows. Other REITs and real estate companies may calculate NOI
and Cash Basis NOI differently than SNH does.
SENIOR HOUSING PROPERTIES TRUST Calculation and
Reconciliation of Same Property Net Operating Income (NOI) and Same
Property Cash Basis NOI by Segment (1) (amounts in
thousands) (unaudited)
For the
Three Months Ended December 31, 2014 For the Three Months
Ended December 31, 2013
Calculation of NOI to Same Property
NOI:
Triple NetLeased
SeniorLivingCommunities (2)
ManagedSenior
LivingCommunities (3)
MOBs (4) Non-Segment (5) Total
Triple NetLeased Senior
LivingCommunities (2)
ManagedSenior
LivingCommunities (3)
MOBs (4) Non-Segment (5) Total
Rental income / residents fees and services $ 65,394 $ 80,445 $
79,452 $ 4,518 $ 229,809 $ 66,442 $ 77,424 $ 52,102 $ 4,368 $
200,336 Property operating expenses - (62,352
) (21,916 ) - (84,268 ) -
(59,863 ) (17,122 )
-
(76,985 ) Property net operating income (NOI) 65,394 18,093
57,536 4,518 145,541 66,442 17,561 34,980 4,368 123,351
Less: NOI not included in same property 38 512 21,631 - 22,181
3,296 260 58 - 3,614
Same property NOI (6) $ 65,356 $
17,581 $ 35,905 $ 4,518 $ 123,360 $
63,146 $ 17,301 $ 34,922 $ 4,368 $ 119,737
Same property NOI growth 3.5 % 1.6 % 2.8 % 3.4 % 3.0 % -- --
-- -- --
Reconciliation of Same Property NOI to
SameProperty Cash Basis NOI:
Same property NOI (6) $ 65,356 $ 17,581 $ 35,905
$ 4,518 $ 123,360 $ 63,146 $ 17,301
$ 34,922 $ 4,368 $ 119,737 Less: Non cash
straight line rent adjustments 129 - 918 138 1,185 (9 ) - 1,701 138
1,830 Lease value amortization - - (755 ) 55 (700 ) - - (918 ) 55
(863 ) Lease termination fees - -
- - - -
- 4 - 4 129
- 163 193
485 (9 ) - 787 193
971 Same property cash basis NOI $ 65,227 $
17,581 $ 35,742 $ 4,325 $ 122,875 $
63,155 $ 17,301 $ 34,135 $ 4,175 $ 118,766
Same property cash basis NOI growth 3.3 % 1.6 % 4.7 % 3.6 %
3.5 % -- -- -- -- --
(1) For a calculation, reconciliation and definition of NOI and
Cash Basis NOI, please see pages 10 and 11.
(2) Includes triple net senior living communities that provide
short term and long term residential care and dining services for
residents.
(3) Includes managed senior living communities that provide
short term and long term residential care and dining services for
residents.
(4) Includes properties where medical related activities occur
but where residential overnight stays and dining services are not
provided.
(5) Includes the operating results of certain properties that
offer fitness, wellness and spa services to members.
(6) Consists of properties owned continuously since October 1,
2013.
SENIOR HOUSING PROPERTIES TRUST
Calculation and Reconciliation of Same Property Net Operating
Income (NOI) and Same Property Cash Basis NOI by Segment
(1) (amounts in thousands) (unaudited)
For the Year Ended December 31, 2014 For the Year Ended
December 31, 2013 Calculation of NOI to Same Property
NOI:
Triple NetLeased
SeniorLivingCommunities (2)
ManagedSenior
LivingCommunities (3)
MOBs (4) Non-Segment (5) Total
Triple NetLeased
SeniorLivingCommunities (2)
ManagedSenior
LivingCommunities (3)
MOBs (4) Non-Segment (5)
Total Rental income / residents fees and services $ 230,718
$ 318,184 $ 278,041 $ 17,944 $ 844,887 $ 237,209 $ 302,058 $
204,594 $ 17,577 $ 761,438 Property operating expenses -
(245,093 ) (79,471 ) -
(324,564 ) - (233,711 ) (66,167 )
- (299,878 ) Property net operating income (NOI)
230,718 73,091 198,570 17,944 520,323 237,209 68,347 138,427 17,577
461,560 Less: NOI not included in same property 2,775 3,504
64,556 - 70,835 14,861 1,054 5,708 - 21,623
Same property NOI
(6) $ 227,943 $ 69,587 $ 134,014 $ 17,944
$ 449,488 $ 222,348 $ 67,293 $ 132,719
$ 17,577 $ 439,937 Same property NOI growth 2.5 % 3.4
% 1.0 % 2.1 % 2.2 % -- -- -- -- --
Reconciliation of Same Property NOI to
SameProperty Cash Basis NOI:
Same property NOI (6) $ 227,943 $ 69,587 $ 134,014
$ 17,944 $ 449,488 $ 222,348 $ 67,293
$ 132,719 $ 17,577 $ 439,937 Less: Non
cash straight line rent adjustments 280 - 3,810 550 4,640 (104 ) -
5,689 1,129 6,714 Lease value amortization - - (2,799 ) 221 (2,578
) - - (3,672 ) 221 (3,451 ) Lease termination fees -
- - - -
- - 11 - 11
280 - 1,011
771 2,062 (104 ) -
2,028 1,350 3,274 Same property cash
basis NOI $ 227,663 $ 69,587 $ 133,003 $
17,173 $ 447,426 $ 222,452 $ 67,293 $
130,691 $ 16,227 $ 436,663 Same property cash basis
NOI growth 2.3 % 3.4 % 1.8 % 5.8 % 2.5 % -- -- -- -- --
(1) For a calculation, reconciliation and definition of NOI and
Cash Basis NOI, please see pages 10 and 11.
(2) Includes triple net senior living communities that provide
short term and long term residential care and dining services for
residents.
(3) Includes managed senior living communities that provide
short term and long term residential care and dining services for
residents.
(4) Includes properties where medical related activities occur
but where residential overnight stays and dining services are not
provided.
(5) Includes the operating results of certain properties that
offer fitness, wellness and spa services to members.
(6) Consists of properties owned continuously since January 1,
2013.
SENIOR HOUSING PROPERTIES TRUST
CONDENSED CONSOLIDATED BALANCE
SHEETS
(amounts in thousands)
(unaudited)
Balance Sheet:
December 31, December 31, 2014
2013
ASSETS
Real estate properties $ 6,238,611 $ 5,263,625 Less accumulated
depreciation (983,850) (840,760) 5,254,761 4,422,865
Cash and cash equivalents 27,594 39,233 Restricted cash 10,544
12,514 Deferred financing fees, net 30,549 27,975 Acquired real
estate leases and other intangible assets, net 472,788 103,494
Other assets 172,033 158,585 Total assets $ 5,968,269
$ 4,764,666
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Unsecured revolving credit facility $ 80,000 $ 100,000 Unsecured
term loan 350,000 — Senior unsecured notes, net of discount
1,743,628 1,093,337 Secured debt and capital leases 627,076 699,427
Accrued interest 20,046 15,839 Assumed real estate lease
obligations, net 122,826 12,528 Other liabilities 72,286
66,546 Total liabilities 3,015,862 1,987,677 Total
shareholders’ equity 2,952,407 2,776,989 Total
liabilities and shareholders’ equity $ 5,968,269 $ 4,764,666
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed on the New York
Stock Exchange.No shareholder, Trustee or officer is personally
liable for any act or obligation of the Trust.
Senior Housing Properties TrustKimberly Brown,
617-796-8237Director, Investor Relationswww.snhreit.com
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Apr 2023 to Apr 2024