Attached files
| file | filename |
|---|---|
| 8-K - 8-K - DIVERSIFIED HEALTHCARE TRUST | a11-2082_48k.htm |
| EX-99.1 - EX-99.1 - DIVERSIFIED HEALTHCARE TRUST | a11-2082_4ex99d1.htm |
Exhibit 99.2
SENIOR HOUSING PROPERTIES TRUST
Fourth Quarter 2010
Supplemental Operating and Financial Data
All amounts in this report are unaudited.
TABLE OF CONTENTS
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CORPORATE INFORMATION |
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Company Profile |
5 |
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Investor Information |
6 |
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Research Coverage |
7 |
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FINANCIAL INFORMATION |
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Key Financial Data |
9 |
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Condensed Consolidated Balance Sheet |
10 |
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Condensed Consolidated Statement of Income |
11 |
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Condensed Consolidated Statement of Cash Flows |
12 |
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Calculation of EBITDA |
13 |
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Calculation of Funds from Operations (FFO) |
14 |
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Debt Summary |
15 |
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Debt Maturity Schedule |
16 |
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Leverage Ratios, Coverage Ratios and Public Debt Covenants |
17 |
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Acquisitions / Dispositions Information Since 1/1/2010 |
18 |
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PORTFOLIO INFORMATION |
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Portfolio Summary by Facility Type and Tenant |
20 |
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Occupancy by Property Type and Tenant |
21 |
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% Private Pay by Senior Living Property Type and Tenant |
22 |
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Rent Coverage by Tenant (excluding MOBs) |
23 |
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Portfolio Lease Expiration Schedule |
24 |
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.
CORPORATE INFORMATION
Senior Housing Properties Trust
Supplemental Operating and Financial Data
December 31, 2010
COMPANY PROFILE
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.
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Stock Exchange Listing: |
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Corporate Headquarters: |
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New York Stock Exchange |
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Two Newton Place |
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255 Washington Street, Suite 300 |
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Trading Symbol: |
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Newton, MA 02458-1634 |
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(t) (617) 796-8350 |
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Common Shares — SNH |
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(f) (617) 796-8349 |
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Senior Unsecured Debt Ratings: |
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Moody’s — Baa3 |
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Standard & Poor’s — BBB- |
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Portfolio Concentration by Facility Type (as of 12/31/10) ($ in 000):
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Number of |
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Number of |
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Units/Beds or |
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Carrying Value of |
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Annualized |
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Properties |
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Square Feet |
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Investment (1) |
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Percent |
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Rental Income (2) |
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Percent |
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Independent living (3) |
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43 |
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11,524 |
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$ |
1,137,193 |
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30.2% |
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$ |
112,293 |
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28.7% |
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Assisted living (3) |
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131 |
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9,342 |
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1,035,639 |
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27.5% |
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96,346 |
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24.6% |
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Nursing homes (3) |
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52 |
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5,514 |
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225,629 |
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6.0% |
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19,734 |
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5.1% |
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Rehabilitation hospitals |
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2 |
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364 |
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69,075 |
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1.9% |
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10,323 |
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2.6% |
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Wellness centers |
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10 |
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812,000 |
sq. ft. |
180,017 |
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4.8% |
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17,337 |
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4.4% |
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Medical office buildings (MOBs) |
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82 |
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5,162,635 |
sq. ft. |
1,114,159 |
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29.6% |
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135,381 |
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34.6% |
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Total |
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320 |
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$ |
3,761,712 |
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100.0% |
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$ |
391,414 |
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100.0% |
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Operating Statistics by Tenant ($ in 000):
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Number of |
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As Of Or For The Last 12 Months Ended September 30, 2010 |
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Number of |
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Units/Beds or |
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Annualized |
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Rent |
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Percent |
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Tenant |
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Properties |
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Square Feet |
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Rental Income (2) |
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Coverage (4) |
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Occupancy (4) |
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Private Pay (4) (5) |
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Five Star (Lease No. 1) |
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88 |
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6,421 |
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$ |
54,271 |
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1.26x |
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87% |
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65% |
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Five Star (Lease No. 2) |
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46 |
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5,885 |
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50,464 |
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1.34x |
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82% |
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52% |
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Five Star (Lease No. 3) |
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28 |
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5,618 |
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63,160 |
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1.51x |
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88% |
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87% |
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Five Star (Lease No. 4) |
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26 |
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2,720 |
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23,341 |
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1.12x |
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84% |
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66% |
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Sunrise Senior Living, Inc. / Marriott (6) |
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14 |
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4,091 |
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32,493 |
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1.35x |
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90% |
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74% |
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Brookdale Senior Living, Inc. |
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18 |
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894 |
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8,443 |
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2.18x |
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94% |
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99% |
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6 private companies (combined) |
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8 |
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1,115 |
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6,524 |
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2.14x |
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85% |
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23% |
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Wellness centers |
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10 |
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812,000 |
sq. ft. |
17,337 |
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2.18x |
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100% |
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NA |
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Multi-tenant MOBs |
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82 |
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5,162,635 |
sq. ft. |
135,381 |
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NA |
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97% |
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NA |
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Total |
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320 |
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$ |
391,414 |
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(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.
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Senior Housing Properties Trust |
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Supplemental Operating and Financial Data |
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December 31, 2010 |
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INVESTOR INFORMATION |
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Board of Trustees |
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Barry M. Portnoy |
Adam D. Portnoy |
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Managing Trustee |
Managing Trustee |
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John L. Harrington |
Jeffrey P. Somers |
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Independent Trustee |
Independent Trustee |
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Frederick N. Zeytoonjian |
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Independent Trustee |
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Senior Management |
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David J. Hegarty |
Richard A. Doyle |
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President & Chief Operating Officer |
Treasurer & Chief Financial Officer |
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Contact Information |
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Investor Relations |
Inquiries |
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Senior Housing Properties Trust |
Financial inquiries should be directed to Richard A. Doyle, |
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Two Newton Place |
Treasurer & Chief Financial Officer, at (617) 219-1405 |
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255 Washington Street, Suite 300 |
or rdoyle@snhreit.com. |
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Newton, MA 02458-1634 |
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(t) (617) 796-8350 |
Investor and media inquiries should be directed to |
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(f) (617) 796-8349 |
Timothy A. Bonang, Vice President, Investor Relations, or |
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(email) info@snhreit.com |
Elisabeth Heiss, Manager, Investor Relations |
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(website) www.snhreit.com |
(617) 796-8234, tbonang@snhreit.com or eheiss@snhreit.com. |
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Senior Housing Properties Trust |
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Supplemental Operating and Financial Data |
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December 31, 2010 |
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RESEARCH COVERAGE |
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Equity Research Coverage |
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Bank of America / Merrill Lynch |
RBC |
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Jeffrey Spector |
Frank Morgan |
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(646) 855-1363 |
(615) 372-1331 |
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Jefferies & Company |
R.W. Baird |
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Tayo Okusanya |
David AuBuchon |
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(212) 336-7076 |
(314) 863-4235 |
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JMP Securities |
Stifel Nicolaus |
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Peter Martin |
Jerry Doctrow |
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(415) 835-8904 |
(443) 224-1309 |
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Keefe, Bruyette & Woods |
UBS |
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Daniel Cooney |
Dustin Pizzo |
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(212) 887-7740 |
(212) 713-4847 |
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Raymond James |
Wells Fargo Securities |
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Paul Puryear |
Todd Stender |
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(727) 567-2253 |
(212) 214-8067 |
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Rating Agencies |
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Moody’s Investors Service |
Standard and Poor’s |
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Lori Marks |
James Fielding |
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(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.
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FINANCIAL INFORMATION |
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Senior Housing Properties Trust |
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Supplemental Operating and Financial Data |
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KEY FINANCIAL DATA |
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(share amounts and dollars in thousands, except per share data) |
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As of and For the Three Months Ended |
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12/31/2010 |
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9/30/2010 |
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6/30/2010 |
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3/31/2010 |
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12/31/2009 |
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Shares Outstanding (1): |
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Common shares outstanding (at end of period) |
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141,855 |
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127,480 |
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127,413 |
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127,403 |
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127,378 |
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Weighted average common shares outstanding during period |
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130,136 |
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127,423 |
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127,408 |
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127,380 |
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127,378 |
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Common Share Data: |
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Price at end of period |
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$ |
21.94 |
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$ |
23.50 |
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$ |
20.11 |
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$ |
22.15 |
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$ |
21.87 |
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High during period |
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$ |
25.28 |
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$ |
24.57 |
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$ |
23.36 |
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$ |
22.57 |
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$ |
22.80 |
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Low during period |
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$ |
20.42 |
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$ |
19.31 |
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$ |
19.25 |
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$ |
19.59 |
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$ |
18.19 |
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Annualized dividends paid per share (2) |
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$ |
1.48 |
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$ |
1.44 |
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$ |
1.44 |
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$ |
1.44 |
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$ |
1.44 |
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Annualized dividend yield (at end of period) (2) |
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6.7% |
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6.1% |
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7.2% |
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6.5% |
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6.6% |
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Market Capitalization: |
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Total debt (book value) |
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$ |
1,204,890 |
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$ |
1,091,017 |
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$ |
1,080,993 |
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$ |
1,038,058 |
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$ |
1,042,219 |
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Plus: market value of common shares (at end of period) |
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3,112,299 |
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2,995,780 |
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2,562,275 |
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2,821,976 |
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2,785,757 |
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Total market capitalization |
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$ |
4,317,189 |
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$ |
4,086,797 |
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$ |
3,643,268 |
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$ |
3,860,034 |
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$ |
3,827,976 |
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Total debt / total market capitalization |
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27.9% |
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26.7% |
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29.7% |
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26.9% |
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27.2% |
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Book Capitalization: |
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Total debt |
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$ |
1,204,890 |
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$ |
1,091,017 |
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$ |
1,080,993 |
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$ |
1,038,058 |
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$ |
1,042,219 |
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Plus: total shareholders’ equity |
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2,127,977 |
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1,852,772 |
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1,862,559 |
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1,885,317 |
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1,900,650 |
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Total book capitalization |
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$ |
3,332,867 |
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$ |
2,943,789 |
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$ |
2,943,552 |
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$ |
2,923,375 |
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$ |
2,942,869 |
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Total debt / total book capitalization |
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36.2% |
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37.1% |
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36.7% |
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35.5% |
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35.4% |
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Selected Balance Sheet Data: |
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Total assets |
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$ |
3,392,656 |
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$ |
2,999,712 |
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$ |
2,993,227 |
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$ |
2,966,022 |
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$ |
2,987,926 |
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Total liabilities |
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$ |
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. |
|
Senior Housing Properties Trust |
|
Supplemental Operating and Financial Data |
|
December 31, 2010 |
|
CONSOLIDATED BALANCE SHEET |
|
(amounts in thousands, except share data) |
|
|
|
As of |
|
As of |
| ||
|
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 |
|
|
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. |
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 |
| ||
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.
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.
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. |
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.
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.
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. |
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.
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.
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.
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.
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 |
|
MOBs |
|
Wellness |
|
Total |
|
Percent of |
|
Cumulative |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
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 |
|
Percent of |
|
Cumulative |
|
MOBs |
|
Wellness |
|
Total Square Feet |
|
Percent of |
|
Cumulative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.