Senior Housing Properties Trust Announces Fourth Quarter and Year End 2018 Results
Fourth Quarter Net Loss Attributable to Common Shareholders of
Fourth Quarter Normalized FFO Attributable to Common Shareholders of
Results for the Quarter Ended
Net loss attributable to common shareholders was
Normalized funds from operations attributable to common shareholders, or Normalized FFO attributable to common shareholders, were
Reconciliations of net income (loss) attributable to common shareholders determined in accordance with GAAP to funds from operations attributable to common shareholders, or FFO attributable to common shareholders, and Normalized FFO attributable to common shareholders for the quarters ended
Results for the Year Ended
Net income attributable to common shareholders was
Normalized FFO attributable to common shareholders were
Reconciliations of net income (loss) attributable to common shareholders determined in accordance with GAAP to FFO attributable to common shareholders and Normalized FFO attributable to common shareholders for the year ended December 31, 2018 and 2017 appear later in this press release.
Portfolio Operating Results:
For the quarter ended
For the quarter ended
For the quarter ended
For the quarter ended
SNH's 10 wellness centers were 100% leased as of each of
Reconciliations of net income (loss) determined in accordance with GAAP to consolidated NOI, Cash Basis NOI, same property NOI and Cash Basis NOI by operating segment for the quarters ended
_____________________________________________________________________________________________________________________________
(1) SNH reports rent coverage one quarter in arrears because operating results from tenants are usually provided to SNH three months after the end of a fiscal quarter. Operating data from triple net leased senior living communities are provided by tenants and SNH has not independently verified this information.
(2) Excludes data for periods prior to SNH's ownership of certain properties, as well as properties sold or classified as held for sale during the periods presented.
Investment Activities:
During the quarter ended
Disposition Activities:
In
In
Also in
Conference Call:
At
A live audio webcast of the conference call will also be available in a listen-only mode on SNH’s website, which is located at www.snhreit.com. Participants wanting to access the webcast should visit SNH’s website about five minutes before the call. The archived webcast will be available for replay on SNH’s website following the call for about one week. 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 2018 Supplemental Operating and Financial Data is available for download at SNH’s website, which is located at 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 owns medical office and life science properties, senior living communities and wellness centers throughout
Please see the pages attached hereto for a more detailed statement of SNH’s operating results and financial condition, and for an explanation of SNH’s calculation of FFO attributable to common shareholders, Normalized FFO attributable to common shareholders, NOI and Cash Basis NOI and a reconciliation of those amounts to amounts determined in accordance with GAAP.
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”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE 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 SNH’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
- THIS PRESS RELEASE INCLUDES A STATEMENT THAT SNH EXPECTS THE ADDITIONAL INVESTMENTS IT REGULARLY MAKES AT ITS MOBS AND MANAGED SENIOR LIVING COMMUNITIES MAY MAINTAIN OR ENHANCE THE COMPETITIVE POSITIONS OF THOSE PROPERTIES AND MAY INCREASE ITS OPERATING REVENUE FROM THOSE PROPERTIES. HOWEVER, SNH CANNOT BE SURE THAT THE FUTURE COMPETITIVE POSITIONS OF, OR SNH'S OPERATING REVENUE FROM, THOSE PROPERTIES WILL INCREASE AS A RESULT OF THESE INVESTMENTS OR OTHERWISE. IN FACT, THE COMPETITIVE POSITIONS OF, AND SNH’S OPERATING REVENUE FROM, THOSE PROPERTIES MAY DECLINE.
- SNH HAS AGREED TO SELL THREE MOBS FOR AN AGGREGATE SALES PRICE OF APPROXIMATELY
$4.7 MILLION , EXCLUDING CLOSING COSTS. THESE SALES ARE SUBJECT TO CONDITIONS. THESE CONDITIONS MAY NOT BE MET AND THESE SALES MAY NOT OCCUR, MAY BE DELAYED BEYOND THE SECOND QUARTER OF 2019 OR THEIR TERMS MAY CHANGE.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN SNH’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE SNH’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN OR IMPLIED BY 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 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.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental income | $ | 178,680 | $ | 179,585 | $ | 700,641 | $ | 681,022 | ||||||||||||||||
Residents fees and services | 106,542 | 98,958 | 416,523 | 393,707 | ||||||||||||||||||||
Total revenues | 285,222 | 278,543 | 1,117,164 | 1,074,729 | ||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Property operating expenses | 117,440 | 104,842 | 451,581 | 413,492 | ||||||||||||||||||||
Depreciation and amortization | 71,935 | 67,398 | 286,235 | 276,861 | ||||||||||||||||||||
General and administrative (1) | 657 | 45,813 | 85,885 | 103,694 | ||||||||||||||||||||
Acquisition and certain other transaction related costs | 56 | 255 | 194 | 403 | ||||||||||||||||||||
Impairment of assets | 61,273 | — | 66,346 | 5,082 | ||||||||||||||||||||
Total expenses | 251,361 | 218,308 | 890,241 | 799,532 | ||||||||||||||||||||
Gain on sale of properties | — | 46,055 | 261,916 | 46,055 | ||||||||||||||||||||
Dividend income | 923 | 659 | 2,901 | 2,637 | ||||||||||||||||||||
Unrealized losses on equity securities(2) | (106,367 | ) | — | (20,724 | ) | — | ||||||||||||||||||
Interest and other income | 305 | 83 | 667 | 406 | ||||||||||||||||||||
Interest expense | (45,506 | ) | (40,625 | ) | (179,287 | ) | (165,019 | ) | ||||||||||||||||
Loss on early extinguishment of debt | — | — | (22 | ) | (7,627 | ) | ||||||||||||||||||
(Loss) income from continuing operations before income tax expense and equity in (losses) earnings of an investee | (116,784 | ) | 66,407 | 292,374 | 151,649 | |||||||||||||||||||
Income tax expense | (32 | ) | (154 | ) | (476 | ) | (454 | ) | ||||||||||||||||
Equity in (losses) earnings of an investee | (366 | ) | 75 | 516 | 608 | |||||||||||||||||||
Net (loss) income | (117,182 | ) | 66,328 | 292,414 | 151,803 | |||||||||||||||||||
Net income attributable to noncontrolling interest | (1,361 | ) | (1,328 | ) | (5,542 | ) | (4,193 | ) | ||||||||||||||||
Net (loss) income attributable to common shareholders | $ | (118,543 | ) | $ | 65,000 | $ | 286,872 | $ | 147,610 | |||||||||||||||
Weighted average common shares outstanding (basic) | 237,568 | 237,467 | 237,511 | 237,420 | ||||||||||||||||||||
Weighted average common shares outstanding (diluted) | 237,573 | 237,475 | 237,546 | 237,452 | ||||||||||||||||||||
Per common share data (basic and diluted): | ||||||||||||||||||||||||
Net (loss) income attributable to common shareholders | $ | (0.50 | ) | $ | 0.27 | $ | 1.21 | $ | 0.62 | |||||||||||||||
(1) General and administrative expenses include the reversal of
(2) Unrealized losses on equity securities represent the adjustment required to adjust the carrying value of SNH's investments in
FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(amounts in thousands, except per share data)
(unaudited)
Calculation of FFO and Normalized FFO Attributable to Common Shareholders(1):
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||
Net (loss) income attributable to common shareholders | $ | (118,543 | ) | $ | 65,000 | $ | 286,872 | $ | 147,610 | |||||||||||||||
Depreciation and amortization expense | 71,935 | 67,398 | 286,235 | 276,861 | ||||||||||||||||||||
FFO attributable to noncontrolling interest | (5,300 | ) | (5,304 | ) | (21,200 | ) | (16,370 | ) | ||||||||||||||||
Gain on sale of properties | — | (46,055 | ) | (261,916 | ) | (46,055 | ) | |||||||||||||||||
Impairment of assets | 61,273 | — | 66,346 | 5,082 | ||||||||||||||||||||
FFO attributable to common shareholders | 9,365 | 81,039 | 356,337 | 367,128 | ||||||||||||||||||||
Estimated business management incentive fees (2) | (50,708 | ) | (22,048 | ) | — | — | ||||||||||||||||||
Acquisition and certain other transaction related costs | 56 | 255 | 194 | 403 | ||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 22 | 7,627 | ||||||||||||||||||||
Unrealized losses on equity securities(3) | 106,367 | — | 20,724 | — | ||||||||||||||||||||
Normalized FFO attributable to common shareholders | $ | 65,080 | $ | 59,246 | $ | 377,277 | $ | 375,158 | ||||||||||||||||
Weighted average common shares outstanding (basic) | 237,568 | 237,467 | 237,511 | 237,420 | ||||||||||||||||||||
Weighted average common shares outstanding (diluted) | 237,573 | 237,475 | 237,546 | 237,452 | ||||||||||||||||||||
Per common share data (basic and diluted): | ||||||||||||||||||||||||
Net (loss) income attributable to common shareholders | $ | (0.50 | ) | $ | 0.27 | $ | 1.21 | $ | 0.62 | |||||||||||||||
FFO attributable to common shareholders | $ | 0.04 | $ | 0.34 | $ | 1.50 | $ | 1.55 | ||||||||||||||||
Normalized FFO attributable to common shareholders | $ | 0.27 | $ | 0.25 | $ | 1.59 | $ | 1.58 | ||||||||||||||||
Distributions declared | $ | 0.39 | $ | 0.39 | $ | 1.56 | $ | 1.56 | ||||||||||||||||
(1) SNH calculates FFO attributable to common shareholders and Normalized FFO attributable to common shareholders as shown above. FFO attributable to common shareholders is calculated on the basis defined by the
(2) Incentive fees under SNH’s business management agreement are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in general and administrative expense in SNH’s consolidated statements of income. In calculating net income (loss) attributable to common shareholders in accordance with GAAP, SNH recognizes estimated business management incentive fee expense, if any, in the first, second and third quarters. Although SNH recognizes this expense, if any, in the first, second and third quarters for purposes of calculating net income (loss) attributable to common shareholders, SNH does not include these amounts in the calculation of Normalized FFO attributable to common shareholders until the fourth quarter, when the amount of the business management incentive fee expense for the calendar year, if any, is determined. Normalized FFO attributable to common shareholders includes business management incentive fee expense of
(3) Unrealized losses on equity securities represent the adjustment required to adjust the carrying value of SNH's investments in
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI
(amounts in thousands)
(unaudited)
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||
Calculation of NOI and Cash Basis NOI(1): | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental income | $ | 178,680 | $ | 179,585 | $ | 700,641 | $ | 681,022 | ||||||||||||||||
Residents fees and services | 106,542 | 98,958 | 416,523 | 393,707 | ||||||||||||||||||||
Total revenues | 285,222 | 278,543 | 1,117,164 | 1,074,729 | ||||||||||||||||||||
Property operating expenses | (117,440 | ) | (104,842 | ) | (451,581 | ) | (413,492 | ) | ||||||||||||||||
Property net operating income (NOI): | 167,782 | 173,701 | 665,583 | 661,237 | ||||||||||||||||||||
Non-cash straight line rent adjustments | (1,720 | ) | (3,473 | ) | (10,227 | ) | (13,958 | ) | ||||||||||||||||
Lease value amortization | (1,497 | ) | (1,386 | ) | (5,787 | ) | (5,349 | ) | ||||||||||||||||
Non-cash amortization included in property operating expenses(2) | (200 | ) | (200 | ) | (797 | ) | (798 | ) | ||||||||||||||||
Cash Basis NOI | $ | 164,365 | $ | 168,642 | $ | 648,772 | $ | 641,132 | ||||||||||||||||
Reconciliation of Net (Loss) Income to Cash Basis NOI: | ||||||||||||||||||||||||
Net (loss) income | $ | (117,182 | ) | $ | 66,328 | $ | 292,414 | $ | 151,803 | |||||||||||||||
Equity in losses (earnings) of an investee | 366 | (75 | ) | (516 | ) | (608 | ) | |||||||||||||||||
Income tax expense | 32 | 154 | 476 | 454 | ||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 22 | 7,627 | ||||||||||||||||||||
Interest expense | 45,506 | 40,625 | 179,287 | 165,019 | ||||||||||||||||||||
Interest and other income | (305 | ) | (83 | ) | (667 | ) | (406 | ) | ||||||||||||||||
Unrealized losses on equity securities | 106,367 | — | 20,724 | — | ||||||||||||||||||||
Dividend income | (923 | ) | (659 | ) | (2,901 | ) | (2,637 | ) | ||||||||||||||||
Gain on sale of properties | — | (46,055 | ) | (261,916 | ) | (46,055 | ) | |||||||||||||||||
Impairment of assets | 61,273 | — | 66,346 | 5,082 | ||||||||||||||||||||
Acquisition and certain other transaction related costs | 56 | 255 | 194 | 403 | ||||||||||||||||||||
General and administrative expense | 657 | 45,813 | 85,885 | 103,694 | ||||||||||||||||||||
Depreciation and amortization expense | 71,935 | 67,398 | 286,235 | 276,861 | ||||||||||||||||||||
Property NOI | 167,782 | 173,701 | 665,583 | 661,237 | ||||||||||||||||||||
Non-cash amortization included in property operating expenses(2) | (200 | ) | (200 | ) | (797 | ) | (798 | ) | ||||||||||||||||
Lease value amortization | (1,497 | ) | (1,386 | ) | (5,787 | ) | (5,349 | ) | ||||||||||||||||
Non-cash straight line rent adjustments | (1,720 | ) | (3,473 | ) | (10,227 | ) | (13,958 | ) | ||||||||||||||||
Cash Basis NOI | $ | 164,365 | $ | 168,642 | $ | 648,772 | $ | 641,132 | ||||||||||||||||
(1) The calculations of NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI exclude certain components of net income (loss) in order to provide results that are more closely related to SNH’s property level results of operations. SNH calculates NOI and Cash Basis NOI as shown above. 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 that SNH records as depreciation and amortization. SNH defines Cash Basis NOI as NOI excluding non-cash straight line rent adjustments, lease value amortization, lease termination fee amortization, if any, and non-cash amortization included in property operating expenses. SNH calculates same property NOI and same property Cash Basis NOI in the same manner that it calculates the corresponding NOI and Cash Basis NOI amounts, except that it only includes same properties in calculating same property NOI and same property Cash Basis NOI. SNH considers NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI to be appropriate supplemental measures to net income (loss) and net income (loss) attributable to common shareholders because they may help both investors and management to understand the operations of SNH’s properties. SNH uses NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI to evaluate individual and company wide property level performance, and SNH believes that NOI, Cash Basis NOI, same property NOI and same property 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 generated and incurred at the property level and may facilitate comparisons of its operating performance between periods and with other REITs. NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) or net income (loss) attributable to common shareholders as indicators of SNH’s operating performance or as measures of SNH’s liquidity. These measures should be considered in conjunction with net income (loss) and net income (loss) attributable to common shareholders as presented in SNH’s consolidated statements of income. Other real estate companies and REITs may calculate NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI differently than SNH does.
(2) SNH recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price SNH paid for its investment in
Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (1)
(dollars in thousands)
(unaudited)
For the Three Months Ended |
For the Three Months Ended |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of NOI and Cash Basis NOI: | MOBs |
Triple Net |
Managed |
Non- |
Total | MOBs |
Triple Net |
Managed |
Non- |
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income / residents fees and services | $ | 103,316 | $ | 70,886 | $ | 106,542 | $ | 4,478 | $ | 285,222 | $ | 96,714 | $ | 78,301 | $ | 98,958 | $ | 4,570 | $ | 278,543 | ||||||||||||||||||||||||||||||||||||||||
Property operating expenses | (32,959 | ) | — | (84,481 | ) | — | (117,440 | ) | (28,950 | ) | — | (75,892 | ) | — | (104,842 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Property net operating income (NOI) | $ | 70,357 | $ | 70,886 | $ | 22,061 | $ | 4,478 | $ | 167,782 | $ | 67,764 | $ | 78,301 | $ | 23,066 | $ | 4,570 | $ | 173,701 | ||||||||||||||||||||||||||||||||||||||||
NOI change | 3.8 | % | (9.5 | )% | (4.4 | )% | (2.0 | )% | (3.4 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 70,357 | $ | 70,886 | $ | 22,061 | $ | 4,478 | $ | 167,782 | $ | 67,764 | $ | 78,301 | $ | 23,066 | $ | 4,570 | $ | 173,701 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 1,703 | 130 | — | (113 | ) | 1,720 | 2,577 | 759 | — | 137 | 3,473 | |||||||||||||||||||||||||||||||||||||||||||||||||
Lease value amortization | 1,442 | — | — | 55 | 1,497 | 1,331 | — | — | 55 | 1,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 200 | — | — | — | 200 | 200 | — | — | — | 200 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Basis NOI | $ | 67,012 | $ | 70,756 | $ | 22,061 | $ | 4,536 | $ | 164,365 | $ | 63,656 | $ | 77,542 | $ | 23,066 | $ | 4,378 | $ | 168,642 | ||||||||||||||||||||||||||||||||||||||||
Cash Basis NOI change | 5.3 | % | (8.8 | )% | (4.4 | )% | 3.6 | % | (2.5 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of NOI to Same Property NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 70,357 | $ | 70,886 | $ | 22,061 | $ | 4,478 | $ | 167,782 | $ | 67,764 | $ | 78,301 | $ | 23,066 | $ | 4,570 | $ | 173,701 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI not included in same property | 4,390 | 264 | 1,734 | — | 6,388 | 1,482 | 7,166 | 29 | — | 8,677 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 65,967 | $ | 70,622 | $ | 20,327 | $ | 4,478 | $ | 161,394 | $ | 66,282 | $ | 71,135 | $ | 23,037 | $ | 4,570 | $ | 165,024 | ||||||||||||||||||||||||||||||||||||||||
Same property NOI change | (0.5 | )% | (0.7 | )% | (11.8 | )% | (2.0 | )% | (2.2 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Same Property NOI to Same Property Cash Basis NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 65,967 | $ | 70,622 | $ | 20,327 | $ | 4,478 | $ | 161,394 | $ | 66,282 | $ | 71,135 | $ | 23,037 | $ | 4,570 | $ | 165,024 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 1,390 | 103 | — | (113 | ) | 1,380 | 2,507 | 621 | — | 137 | 3,265 | |||||||||||||||||||||||||||||||||||||||||||||||||
Lease value amortization | 1,505 | — | — | 55 | 1,560 | 1,331 | — | — | 55 | 1,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 199 | — | — | — | 199 | 199 | — | — | — | 199 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same property cash basis NOI (4) | $ | 62,873 | $ | 70,519 | $ | 20,327 | $ | 4,536 | $ | 158,255 | $ | 62,245 | $ | 70,514 | $ | 23,037 | $ | 4,378 | $ | 160,174 | ||||||||||||||||||||||||||||||||||||||||
Same property cash basis NOI change | 1.0 | % | 0.0 | % | (11.8 | )% | 3.6 | % | (1.2 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1) See above for the calculation of NOI and a reconciliation of net income (loss) determined in accordance with GAAP to that amount. For a definition of NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI, a description of why management believes they are appropriate supplemental measures and a description of how management uses these measures, please see footnote 1 to the table included on page 7.
(2) Includes the operating results of certain properties that offer wellness, fitness and spa services to members.
(3) SNH recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price SNH paid for its investment in
(4) Consists of properties owned continuously and properties owned and managed continuously by the same operator since
Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (1)
(dollars in thousands)
(unaudited)
For the Year Ended |
For the Year Ended |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of NOI and Cash Basis NOI: | MOBs |
Triple Net |
Managed |
Non- |
Total | MOBs |
Triple Net |
Managed |
Non- |
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income / residents fees and services | $ | 412,813 | $ | 269,512 | $ | 416,523 | $ | 18,316 | $ | 1,117,164 | $ | 382,127 | $ | 280,641 | $ | 393,707 | $ | 18,254 | $ | 1,074,729 | ||||||||||||||||||||||||||||||||||||||||
Property operating expenses | (127,732 | ) | — | (323,849 | ) | — | (451,581 | ) | (112,930 | ) | — | (300,562 | ) | — | (413,492 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Property net operating income (NOI) | $ | 285,081 | $ | 269,512 | $ | 92,674 | $ | 18,316 | $ | 665,583 | $ | 269,197 | $ | 280,641 | $ | 93,145 | $ | 18,254 | $ | 661,237 | ||||||||||||||||||||||||||||||||||||||||
NOI change | 5.9 | % | (4.0 | )% | (0.5 | )% | 0.3 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 285,081 | $ | 269,512 | $ | 92,674 | $ | 18,316 | $ | 665,583 | $ | 269,197 | $ | 280,641 | $ | 93,145 | $ | 18,254 | $ | 661,237 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 8,189 | 1,851 | — | 187 | 10,227 | 10,346 | 3,063 | — | 549 | 13,958 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Lease value amortization | 5,566 | — | — | 221 | 5,787 | 5,128 | — | — | 221 | 5,349 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 797 | — | — | — | 797 | 798 | — | — | — | 798 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Basis NOI | $ | 270,529 | $ | 267,661 | $ | 92,674 | $ | 17,908 | $ | 648,772 | $ | 252,925 | $ | 277,578 | $ | 93,145 | $ | 17,484 | $ | 641,132 | ||||||||||||||||||||||||||||||||||||||||
Cash Basis NOI change | 7.0 | % | (3.6 | )% | (0.5 | )% | 2.4 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of NOI to Same Property NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 285,081 | $ | 269,512 | $ | 92,674 | $ | 18,316 | $ | 665,583 | $ | 269,197 | $ | 280,641 | $ | 93,145 | $ | 18,254 | $ | 661,237 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI not included in same property | 20,291 | 7,995 | 5,801 | — | 34,087 | 3,816 | 21,713 | (110 | ) | — | 25,419 | |||||||||||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 264,790 | $ | 261,517 | $ | 86,873 | $ | 18,316 | $ | 631,496 | $ | 265,381 | $ | 258,928 | $ | 93,255 | $ | 18,254 | $ | 635,818 | ||||||||||||||||||||||||||||||||||||||||
Same property NOI change | (0.2 | )% | 1.0 | % | (6.8 | )% | 0.3 | % | (0.7 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Same Property NOI to Same Property Cash Basis NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 264,790 | $ | 261,517 | $ | 86,873 | $ | 18,316 | $ | 631,496 | $ | 265,381 | $ | 258,928 | $ | 93,255 | $ | 18,254 | $ | 635,818 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 6,921 | 1,561 | — | 187 | 8,669 | 10,153 | 2,516 | — | 549 | 13,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Lease value amortization | 5,806 | — | — | 221 | 6,027 | 5,141 | — | — | 221 | 5,362 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 796 | — | — | — | 796 | 796 | — | — | — | 796 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same property cash basis NOI (4) | $ | 251,267 | $ | 259,956 | $ | 86,873 | $ | 17,908 | $ | 616,004 | $ | 249,291 | $ | 256,412 | $ | 93,255 | $ | 17,484 | $ | 616,442 | ||||||||||||||||||||||||||||||||||||||||
Same property cash basis NOI change | 0.8 | % | 1.4 | % | (6.8 | )% | 2.4 | % | (0.1 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1) See above for the calculation of NOI and a reconciliation of net income (loss) determined in accordance with GAAP to that amount. For a definition of NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI, a description of why management believes they are appropriate supplemental measures and a description of how management uses these measures, please see footnote 1 to the table included on page 7.
(2) Includes the operating results of certain properties that offer wellness, fitness and spa services to members.
(3) SNH recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price SNH paid for its investment in
(4) Consists of properties owned continuously and properties owned and managed continuously by the same operator since
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
|
|
|||||||||||
ASSETS |
||||||||||||
Real estate properties | $ | 7,876,300 | $ | 7,824,763 | ||||||||
Accumulated depreciation | (1,534,392 | ) | (1,454,477 | ) | ||||||||
6,341,908 | 6,370,286 | |||||||||||
Cash and cash equivalents | 54,976 | 31,238 | ||||||||||
Restricted cash | 15,095 | 16,083 | ||||||||||
Acquired real estate leases and other intangible assets, net | 419,244 | 472,265 | ||||||||||
Other assets, net | 329,203 | 404,147 | ||||||||||
Total assets | $ | 7,160,426 | $ | 7,294,019 | ||||||||
LIABILITIES AND EQUITY |
||||||||||||
Unsecured revolving credit facility | $ | 139,000 | $ | 596,000 | ||||||||
Unsecured term loans, net | 548,286 | 547,460 | ||||||||||
Senior unsecured notes, net | 2,216,945 | 1,725,662 | ||||||||||
Secured debt and capital leases, net | 744,186 | 805,404 | ||||||||||
Accrued interest | 26,182 | 17,987 | ||||||||||
Assumed real estate lease obligations, net | 86,304 | 96,018 | ||||||||||
Other liabilities | 219,653 | 228,300 | ||||||||||
Total liabilities | 3,980,556 | 4,016,831 | ||||||||||
Total equity | 3,179,870 | 3,277,188 | ||||||||||
Total liabilities and equity | $ | 7,160,426 | $ | 7,294,019 | ||||||||
A
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190301005120/en/
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www.snhreit.com
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