Senior Housing Properties Trust Announces Second Quarter 2018 Results
Second Quarter Net Income Attributable to Common Shareholders of
Second Quarter Normalized FFO Attributable to Common Shareholders of
“Generally, our overall portfolio, which consists of a diversified mix of high quality healthcare properties, continued to perform well during the quarter, with consolidated same property Cash Basis NOI increasing 0.9%. Each of our different healthcare property segments experienced solid same property Cash Basis NOI growth during the quarter, except for our managed senior living segment, which saw a decline primarily because of higher operating expenses.”
“We also continue to experience headwinds in our senior living properties from the recent overbuilding in the industry, which has led to occupancy pressure and increasing operating expenses. To help address this issue, we are focused on recycling capital from dispositions into life science and medical office properties. During the quarter, life science properties and medical office properties represented approximately 23% and 21%, respectively, of our consolidated NOI, and we hope to grow both these healthcare property portfolios in the future.”
Results for the Quarter Ended
Net income attributable to common shareholders was
Reconciliations of net income 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 Six Months Ended
Net income attributable to common shareholders was
Reconciliations of net income attributable to common shareholders determined in accordance with GAAP to FFO attributable to common shareholders and Normalized FFO attributable to common shareholders for the six months ended June 30, 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 remained 100% leased as of
Reconciliations of net income determined in accordance with GAAP to consolidated NOI, Cash Basis NOI and same property NOI and Cash Basis NOI by operating segment for the quarters ended
Investment Activities:
In
During the quarter ended
Disposition Activities:
In
In
Financing Activities:
In
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 second quarter conference call are strictly prohibited without the prior written consent of SNH.
Supplemental Data:
A copy of SNH’s Second 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.
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(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.
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:
- MS. FRANCIS’S STATEMENTS IN THIS PRESS RELEASE REGARDING SNH’S OVERALL PORTFOLIO PERFORMANCE AND INCREASED CONSOLIDATED SAME PROPERTY CASH BASIS NOI MAY IMPLY THAT SIMILAR OR BETTER RESULTS WILL BE ACHIEVED IN THE FUTURE. HOWEVER, SNH CANNOT BE SURE THAT IT WILL REALIZE SIMILAR OR BETTER RESULTS IN THE FUTURE.
- THIS PRESS RELEASE INCLUDES A STATEMENT THAT SNH HOPES TO GROW ITS LIFE SCIENCE AND MEDICAL OFFICE PROPERTIES PORTFOLIOS IN THE FUTURE. HOWEVER, SNH CANNOT BE SURE THAT FOCUSING ON THESE PORTFOLIOS WILL BE EFFECTIVE IN OVERCOMING THE CURRENT TRENDS IN ITS SENIOR LIVING PROPERTIES PORTFOLIO OR THAT SNH WILL IN FACT GROW ITS LIFE SCIENCE AND MEDICAL OFFICE BUILDING PORTFOLIOS OR THE NOI REALIZED BY SNH FROM EITHER SUCH PORTFOLIO.
- 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 POSITION OF THOSE PROPERTIES AND MAY INCREASE ITS OPERATING REVENUE FROM THOSE PROPERTIES. HOWEVER, THERE CAN BE NO ASSURANCE THAT THE FUTURE COMPETITIVE POSITION OF, OR THE OPERATING REVENUE FROM, THOSE PROPERTIES WILL INCREASE AS A RESULT OF THESE INVESTMENTS OR OTHERWISE. IN FACT, THE COMPETITIVE POSITION OF, AND SNH’S REVENUES FROM, THOSE PROPERTIES MAY DECLINE.
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.
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Three Months Ended |
Six Months Ended |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 174,585 | $ | 166,647 | $ | 348,313 | $ | 333,090 | ||||||||
Residents fees and services | 102,663 | 98,366 | 204,750 | 196,484 | ||||||||||||
Total revenues | 277,248 | 265,013 | 553,063 | 529,574 | ||||||||||||
Expenses: | ||||||||||||||||
Property operating expenses | 110,092 | 102,795 | 218,235 | 203,851 | ||||||||||||
Depreciation and amortization | 72,300 | 69,669 | 142,639 | 142,844 | ||||||||||||
General and administrative (1) | 29,078 | 22,922 | 54,196 | 38,005 | ||||||||||||
Acquisition and certain other transaction related costs | 77 | — | 97 | 292 | ||||||||||||
Impairment of assets | 548 | 5,082 | 548 | 5,082 | ||||||||||||
Total expenses | 212,095 | 200,468 | 415,715 | 390,074 | ||||||||||||
Operating income | 65,153 | 64,545 | 137,348 | 139,500 | ||||||||||||
Dividend income | 659 | 659 | 1,318 | 1,319 | ||||||||||||
Unrealized gains and losses on equity securities, net (2) | 23,265 | — | 50,506 | — | ||||||||||||
Interest and other income | 60 | 76 | 114 | 195 | ||||||||||||
Interest expense | (44,813 | ) | (40,800 | ) | (88,365 | ) | (84,289 | ) | ||||||||
Loss on early extinguishment of debt | — | (7,353 | ) | (130 | ) | (7,353 | ) | |||||||||
Income from continuing operations before income tax expense and equity in earnings of an investee | 44,324 | 17,127 | 100,791 | 49,372 | ||||||||||||
Income tax expense | (105 | ) | (99 | ) | (365 | ) | (191 | ) | ||||||||
Equity in earnings of an investee | 7 | 374 | 51 | 502 | ||||||||||||
Income before gain on sale of properties | 44,226 | 17,402 | 100,477 | 49,683 | ||||||||||||
Gain on sale of properties | 80,762 | — | 261,916 | — | ||||||||||||
Net income | 124,988 | 17,402 | 362,393 | 49,683 | ||||||||||||
Net income attributable to noncontrolling interest |
(1,401 | ) | (1,360 | ) | (2,784 | ) | (1,486 | ) | ||||||||
Net income attributable to common shareholders | $ | 123,587 | $ | 16,042 | $ | 359,609 | $ | 48,197 | ||||||||
Weighted average common shares outstanding (basic) | 237,487 | 237,399 | 237,483 | 237,395 | ||||||||||||
Weighted average common shares outstanding (diluted) | 237,529 | 237,445 | 237,506 | 237,433 | ||||||||||||
Per common share data (basic and diluted): |
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Net income attributable to common shareholders | $ | 0.52 | $ | 0.07 | $ | 1.51 | $ | 0.20 | ||||||||
(1) | General and administrative expenses include estimated business management incentive fee expense of |
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(2) | Unrealized gains and losses on equity securities, net, represent the adjustment required to adjust the carrying value of SNH's investments in |
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Calculation of FFO and Normalized FFO Attributable to Common Shareholders(1): |
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Three Months Ended |
Six Months Ended |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income attributable to common shareholders | $ | 123,587 | $ | 16,042 | $ | 359,609 | $ | 48,197 | ||||||||
Depreciation and amortization expense | 72,300 | 69,669 | 142,639 | 142,844 | ||||||||||||
Noncontrolling interest's share of net FFO adjustments | (5,300 | ) | (5,305 | ) | (10,600 | ) | (5,761 | ) | ||||||||
Gain on sale of properties | (80,762 | ) | — | (261,916 | ) | — | ||||||||||
Impairment of assets | 548 | 5,082 | 548 | 5,082 | ||||||||||||
FFO attributable to common shareholders | 110,373 | 85,488 | 230,280 | 190,362 | ||||||||||||
Estimated business management incentive fees (2) | 17,610 | 10,760 | 31,957 | 14,026 | ||||||||||||
Acquisition and certain other transaction related costs | 77 | — | 97 | 292 | ||||||||||||
Loss on early extinguishment of debt | — | 7,353 | 130 | 7,353 | ||||||||||||
Unrealized gains and losses on equity securities, net (3) | (23,265 | ) | — | (50,506 | ) | — | ||||||||||
Normalized FFO attributable to common shareholders | $ | 104,795 | $ | 103,601 | $ | 211,958 | $ | 212,033 | ||||||||
Weighted average common shares outstanding (basic) | 237,487 | 237,399 | 237,483 | 237,395 | ||||||||||||
Weighted average common shares outstanding (diluted) | 237,529 | 237,445 | 237,506 | 237,433 | ||||||||||||
Per common share data (basic and diluted): |
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Net income attributable to common shareholders | $ | 0.52 | $ | 0.07 | $ | 1.51 | $ | 0.20 | ||||||||
FFO attributable to common shareholders | $ | 0.46 | $ | 0.36 | $ | 0.97 | $ | 0.80 | ||||||||
Normalized FFO attributable to common shareholders | $ | 0.44 | $ | 0.44 | $ | 0.89 | $ | 0.89 | ||||||||
Distributions declared | $ | 0.39 | $ | 0.39 | $ | 0.78 | $ | 0.78 | ||||||||
(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 |
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(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 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 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. | |
(3) | Unrealized gains and losses on equity securities, net, represent the adjustment required to adjust the carrying value of SNH's investments in |
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Three Months Ended |
Six Months Ended |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Calculation of NOI and Cash Basis NOI(1): |
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Revenues: | ||||||||||||||||
Rental income | $ | 174,585 | $ | 166,647 | $ | 348,313 | $ | 333,090 | ||||||||
Residents fees and services | 102,663 | 98,366 | 204,750 | 196,484 | ||||||||||||
Total revenues | 277,248 | 265,013 | 553,063 | 529,574 | ||||||||||||
Property operating expenses | (110,092 | ) | (102,795 | ) | (218,235 | ) | (203,851 | ) | ||||||||
Property net operating income (NOI): | 167,156 | 162,218 | 334,828 | 325,723 | ||||||||||||
Non-cash straight line rent adjustments | (3,030 | ) | (3,435 | ) | (6,023 | ) | (6,865 | ) | ||||||||
Lease value amortization | (1,416 | ) | (1,320 | ) | (2,797 | ) | (2,610 | ) | ||||||||
Non-cash amortization included in property operating expenses(2) | (199 | ) | (199 | ) | (398 | ) | (399 | ) | ||||||||
Cash Basis NOI | $ | 162,511 | $ | 157,264 | $ | 325,610 | $ | 315,849 | ||||||||
Reconciliation of Net Income to Cash Basis NOI: |
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Net income | $ | 124,988 | $ | 17,402 | $ | 362,393 | $ | 49,683 | ||||||||
Gain on sale of properties | (80,762 | ) | — | (261,916 | ) | — | ||||||||||
Income before gain on sale of properties | 44,226 | 17,402 | 100,477 | 49,683 | ||||||||||||
Equity in earnings of an investee | (7 | ) | (374 | ) | (51 | ) | (502 | ) | ||||||||
Income tax expense | 105 | 99 | 365 | 191 | ||||||||||||
Loss on early extinguishment of debt | — | 7,353 | 130 | 7,353 | ||||||||||||
Interest expense | 44,813 | 40,800 | 88,365 | 84,289 | ||||||||||||
Interest and other income | (60 | ) | (76 | ) | (114 | ) | (195 | ) | ||||||||
Unrealized gains and losses on equity securities, net | (23,265 | ) | — | (50,506 | ) | — | ||||||||||
Dividend income | (659 | ) | (659 | ) | (1,318 | ) | (1,319 | ) | ||||||||
Operating income | 65,153 | 64,545 | 137,348 | 139,500 | ||||||||||||
Impairment of assets | 548 | 5,082 | 548 | 5,082 | ||||||||||||
Acquisition and certain other transaction related costs | 77 | — | 97 | 292 | ||||||||||||
General and administrative expense | 29,078 | 22,922 | 54,196 | 38,005 | ||||||||||||
Depreciation and amortization expense | 72,300 | 69,669 | 142,639 | 142,844 | ||||||||||||
Property NOI | 167,156 | 162,218 | 334,828 | 325,723 | ||||||||||||
Non-cash amortization included in property operating expenses(2) | (199 | ) | (199 | ) | (398 | ) | (399 | ) | ||||||||
Lease value amortization | (1,416 | ) | (1,320 | ) | (2,797 | ) | (2,610 | ) | ||||||||
Non-cash straight line rent adjustments | (3,030 | ) | (3,435 | ) | (6,023 | ) | (6,865 | ) | ||||||||
Cash Basis NOI | $ | 162,511 | $ | 157,264 | $ | 325,610 | $ | 315,849 | ||||||||
(1) | The calculations of NOI and Cash Basis NOI exclude certain components of net income 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 considers NOI and Cash Basis NOI to be appropriate supplemental measures to net income because they may help both investors and management to understand the operations of SNH’s properties. SNH uses NOI and Cash Basis NOI to evaluate individual and company wide property level performance, and it believes that NOI and Cash Basis NOI provide useful information to investors regarding its results of operations because these measures reflect only those income and expense items that are generated and incurred at the property level and may facilitate comparisons of its operating performance between periods and with other REITs. NOI and Cash Basis NOI do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income, net income attributable to common shareholders or operating income as indicators of SNH’s operating performance or as measures of SNH’s liquidity. These measures should be considered in conjunction with net income, net income attributable to common shareholders and operating income as presented in SNH’s condensed consolidated statements of income. Other real estate companies and REITs may calculate NOI and 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 |
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For the Three Months Ended |
For the Three Months Ended |
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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 | $ | 103,854 | $ | 66,113 | $ | 102,663 | $ | 4,618 | $ | 277,248 | $ | 94,651 | $ | 67,426 | $ | 98,366 | $ | 4,570 | $ | 265,013 | ||||||||||||||||||||
Property operating expenses | (31,183 | ) | — | (78,909 | ) | — | (110,092 | ) | (27,646 | ) | — | (75,149 | ) | — | (102,795 | ) | ||||||||||||||||||||||||
Property net operating income (NOI) | $ | 72,671 | $ | 66,113 | $ | 23,754 | $ | 4,618 | $ | 167,156 | $ | 67,005 | $ | 67,426 | $ | 23,217 | $ | 4,570 | $ | 162,218 | ||||||||||||||||||||
NOI change | 8.5 | % | (1.9 | )% | 2.3 | % | 1.1 | % | 3.0 | % | ||||||||||||||||||||||||||||||
Property NOI | $ | 72,671 | $ | 66,113 | $ | 23,754 | $ | 4,618 | $ | 167,156 | $ | 67,005 | $ | 67,426 | $ | 23,217 | $ | 4,570 | $ | 162,218 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 2,338 | 555 | — | 137 | 3,030 | 2,520 | 778 | — | 137 | 3,435 | ||||||||||||||||||||||||||||||
Lease value amortization | 1,361 | — | — | 55 | 1,416 | 1,265 | — | — | 55 | 1,320 | ||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 199 | — | — | — | 199 | 199 | — | — | — | 199 | ||||||||||||||||||||||||||||||
Cash Basis NOI | $ | 68,773 | $ | 65,558 | $ | 23,754 | $ | 4,426 | $ | 162,511 | $ | 63,021 | $ | 66,648 | $ | 23,217 | $ | 4,378 | $ | 157,264 | ||||||||||||||||||||
Cash Basis NOI change | 9.1 | % | (1.6 | )% | 2.3 | % | 1.1 | % | 3.3 | % | ||||||||||||||||||||||||||||||
Reconciliation of NOI to Same Property NOI: | ||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 72,671 | $ | 66,113 | $ | 23,754 | $ | 4,618 | $ | 167,156 | $ | 67,005 | $ | 67,426 | $ | 23,217 | $ | 4,570 | $ | 162,218 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
NOI not included in same property | 4,824 | 1,744 | 1,514 | — | 8,082 | (2 | ) | 4,071 | (97 | ) | — | 3,972 | ||||||||||||||||||||||||||||
Same property NOI (4) | $ | 67,847 | $ | 64,369 | $ | 22,240 | $ | 4,618 | $ | 159,074 | $ | 67,007 | $ | 63,355 | $ | 23,314 | $ | 4,570 | $ | 158,246 | ||||||||||||||||||||
Same property NOI change | 1.3 | % | 1.6 | % | (4.6 | )% | 1.1 | % | 0.5 | % | ||||||||||||||||||||||||||||||
Reconciliation of Same Property NOI to Same Property Cash Basis NOI: | ||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 67,847 | $ | 64,369 | $ | 22,240 | $ | 4,618 | $ | 159,074 | $ | 67,007 | $ | 63,355 | $ | 23,314 | $ | 4,570 | $ | 158,246 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 2,040 | 572 | — | 137 | 2,749 | 2,522 | 738 | — | 137 | 3,397 | ||||||||||||||||||||||||||||||
Lease value amortization | 1,424 | — | — | 55 | 1,479 | 1,264 | — | — | 55 | 1,319 | ||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 199 | — | — | — | 199 | 199 | — | — | — | 199 | ||||||||||||||||||||||||||||||
Same property cash basis NOI (4) | $ | 64,184 | $ | 63,797 | $ | 22,240 | $ | 4,426 | $ | 154,647 | $ | 63,022 | $ | 62,617 | $ | 23,314 | $ | 4,378 | $ | 153,331 | ||||||||||||||||||||
Same property cash basis NOI change | 1.8 | % | 1.9 | % | (4.6 | )% | 1.1 | % | 0.9 | % | ||||||||||||||||||||||||||||||
(1) | See above for the calculation of NOI and a reconciliation of net income determined in accordance with GAAP to that amount. For a definition of NOI and 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 8. | |
(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 |
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(4) | Consists of properties owned continuously and properties owned and managed continuously by the same operator since |
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For the Six Months Ended |
For the Six Months Ended |
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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 | $ | 205,005 | $ | 134,088 | $ | 204,750 | $ | 9,220 | $ | 553,063 | $ | 189,297 | $ | 134,678 | $ | 196,484 | $ | 9,115 | $ | 529,574 | ||||||||||||||||||||
Property operating expenses | (62,121 | ) | — | (156,114 | ) | — | (218,235 | ) | (54,823 | ) | — | (149,028 | ) | — | (203,851 | ) | ||||||||||||||||||||||||
Property net operating income (NOI) | $ | 142,884 | $ | 134,088 | $ | 48,636 | $ | 9,220 | $ | 334,828 | $ | 134,474 | $ | 134,678 | $ | 47,456 | $ | 9,115 | $ | 325,723 | ||||||||||||||||||||
NOI change | 6.3 | % | (0.4 | )% | 2.5 | % | 1.2 | % | 2.8 | % | ||||||||||||||||||||||||||||||
Property NOI | $ | 142,884 | $ | 134,088 | $ | 48,636 | $ | 9,220 | $ | 334,828 | $ | 134,474 | $ | 134,678 | $ | 47,456 | $ | 9,115 | $ | 325,723 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 4,574 | 1,174 | — | 275 | 6,023 | 5,035 | 1,554 | — | 276 | 6,865 | ||||||||||||||||||||||||||||||
Lease value amortization | 2,687 | — | — | 110 | 2,797 | 2,500 | — | — | 110 | 2,610 | ||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 398 | — | — | — | 398 | 399 | — | — | — | 399 | ||||||||||||||||||||||||||||||
Cash Basis NOI | $ | 135,225 | $ | 132,914 | $ | 48,636 | $ | 8,835 | $ | 325,610 | $ | 126,540 | $ | 133,124 | $ | 47,456 | $ | 8,729 | $ | 315,849 | ||||||||||||||||||||
Cash Basis NOI change | 6.9 | % | (0.2 | )% | 2.5 | % | 1.2 | % | 3.1 | % | ||||||||||||||||||||||||||||||
Reconciliation of NOI to Same Property NOI: | ||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 142,884 | $ | 134,088 | $ | 48,636 | $ | 9,220 | $ | 334,828 | $ | 134,474 | $ | 134,678 | $ | 47,456 | $ | 9,115 | $ | 325,723 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
NOI not included in same property | 9,759 | 5,370 | 2,539 | — | 17,668 | 519 | 8,152 | (92 | ) | — | 8,579 | |||||||||||||||||||||||||||||
Same property NOI (4) | $ | 133,125 | $ | 128,718 | $ | 46,097 | $ | 9,220 | $ | 317,160 | $ | 133,955 | $ | 126,526 | $ | 47,548 | $ | 9,115 | $ | 317,144 | ||||||||||||||||||||
Same property NOI change | (0.6 | )% | 1.7 | % | (3.1 | )% | 1.2 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Reconciliation of Same Property NOI to Same Property Cash Basis NOI: | ||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 133,125 | $ | 128,718 | $ | 46,097 | $ | 9,220 | $ | 317,160 | $ | 133,955 | $ | 126,526 | $ | 47,548 | $ | 9,115 | $ | 317,144 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 3,951 | 1,143 | — | 275 | 5,369 | 4,975 | 1,475 | — | 276 | 6,726 | ||||||||||||||||||||||||||||||
Lease value amortization | 2,798 | — | — | 110 | 2,908 | 2,505 | — | — | 110 | 2,615 | ||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | 399 | — | — | — | 399 | 399 | — | — | — | 399 | ||||||||||||||||||||||||||||||
Same property cash basis NOI (4) | $ | 125,977 | $ | 127,575 | $ | 46,097 | $ | 8,835 | $ | 308,484 | $ | 126,076 | $ | 125,051 | $ | 47,548 | $ | 8,729 | $ | 307,404 | ||||||||||||||||||||
Same property cash basis NOI change | (0.1 | )% | 2.0 | % | (3.1 | )% | 1.2 | % | 0.4 | % | ||||||||||||||||||||||||||||||
(1) | See above for the calculation of NOI and a reconciliation of net income determined in accordance with GAAP to that amount. For a definition of NOI and 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 8. | |
(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 |
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(4) | Consists of properties owned continuously and properties owned and managed continuously by the same operator since |
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ASSETS |
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Real estate properties | $ | 7,987,732 | $ | 7,824,763 | ||||
Accumulated depreciation | (1,555,754 | ) | (1,454,477 | ) | ||||
6,431,978 | 6,370,286 | |||||||
Cash and cash equivalents | 30,657 | 31,238 | ||||||
Restricted cash | 108,704 | 16,083 | ||||||
Acquired real estate leases and other intangible assets, net | 472,272 | 472,265 | ||||||
Other assets, net | 392,025 | 404,147 | ||||||
Total assets | $ | 7,435,636 | $ | 7,294,019 | ||||
LIABILITIES AND EQUITY |
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Unsecured revolving credit facility | $ | 64,000 | $ | 596,000 | ||||
Unsecured term loans, net | 547,873 | 547,460 | ||||||
Senior unsecured notes, net | 2,214,856 | 1,725,662 | ||||||
Secured debt and capital leases, net | 843,623 | 805,404 | ||||||
Accrued interest | 26,015 | 17,987 | ||||||
Assumed real estate lease obligations, net | 91,080 | 96,018 | ||||||
Other liabilities | 204,616 | 228,300 | ||||||
Total liabilities | 3,992,063 | 4,016,831 | ||||||
Total equity | 3,443,573 | 3,277,188 | ||||||
Total liabilities and equity | $ | 7,435,636 | $ | 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/20180807005208/en/
Director, Investor Relations
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