Senior Housing Properties Trust Announces Third Quarter 2017 Results
Third Quarter Net Income Attributable to Common Shareholders of
Third Quarter Normalized FFO of
“Operating results were stable during the quarter with Normalized FFO of
Results for the Quarter Ended
Net income attributable to common shareholders was
Reconciliations of net income attributable to common shareholders determined in accordance with
Results for the Nine Months Ended
Net income attributable to common shareholders was
Reconciliations of net income attributable to common shareholders determined in accordance with GAAP to FFO and Normalized FFO for the nine months ended
Portfolio Operating Results:
For the quarter ended
For the quarter ended
For the quarter ended
Our 10 wellness centers remained 100% leased as of
Consolidated same property Cash Basis NOI increased 0.5% for the quarter ended
Reconciliations of net income determined in accordance with GAAP to same property Cash Basis NOI by operating segment for the quarters ended
Financing Activities:
In
Also in
Investment Activities:
In
In
In August and
In
During the quarter ended
Conference Call:
On
A live audio webcast of the conference call will also be available in a listen only mode on the company’s website, which is located at www.snhreit.com. Participants wanting to access the webcast should visit the company’s website about five minutes before the call. The archived webcast will be available for replay on the company’s website following the call for about one week. The transcription, recording and retransmission in any way of SNH’s third quarter conference call are strictly prohibited without the prior written consent of SNH.
Supplemental Data:
A copy of SNH’s Third Quarter 2017 Supplemental Operating and Financial Data is available for download at SNH’s website, www.snhreit.com. SNH’s website is not incorporated as part of this press release.
SNH is a real estate investment trust, or REIT, which owns senior living communities, medical office and life science properties 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 and Normalized FFO, and NOI and Cash Basis NOI and reconciliations of net income attributable to common shareholders and net income, respectively, determined in accordance with GAAP to these amounts.
(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 | . | |
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 DISCUSSES CERTAIN AMENDMENTS AND TERMS APPLICABLE TO SNH’S REVOLVING CREDIT FACILITY AND
$200 MILLION TERM LOAN; HOWEVER, CONTINUED AVAILABILITY OF BORROWINGS UNDER SNH’S REVOLVING CREDIT FACILITY IS SUBJECT TO SNH’S SATISFYING CERTAIN FINANCIAL COVENANTS AND OTHER CREDIT FACILITY CONDITIONS THAT IT MAY BE UNABLE TO SATISFY; ACTUAL COSTS UNDER SNH’S REVOLVING CREDIT FACILITY WILL BE HIGHER THAN LIBOR PLUS A PREMIUM BECAUSE OF FEES AND EXPENSES ASSOCIATED WITH THE FACILITY; INCREASING THE MAXIMUM BORROWING AVAILABILITY UNDER SNH’S REVOLVING CREDIT FACILITY IS SUBJECT TO SNH’S OBTAINING ADDITIONAL COMMITMENTS FROM LENDERS, WHICH MAY NOT OCCUR; SNH’S RIGHT TO EXTEND THE MATURITY DATE OF ITS REVOLVING CREDIT FACILITY IS SUBJECT TO ITS PAYMENT OF A FEE AND MEETING OTHER CONDITIONS AND SUCH CONDITIONS MAY NOT BE MET; AND FUTURE CHANGES IN SNH’S CREDIT RATINGS MAY CAUSE THE INTEREST AND FEES SNH PAYS ON ITS REVOLVING CREDIT FACILITY AND$200 MILLION TERM LOAN TO INCREASE. - THIS PRESS RELEASE INCLUDES A STATEMENT THAT SNH EXPECTS THE ADDITIONAL INVESTMENTS IT REGULARLY MAKES AT ITS OWNED MOBS AND ITS OWNED 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 OR REMAIN AT CURRENT LEVELS. IN FACT, THE COMPETITIVE POSITION OF, AND SNH’S REVENUES FROM, THOSE PROPERTIES MAY DECLINE.
- SNH HAS ENTERED AGREEMENTS TO ACQUIRE TWO MOBS FOR
$71.1 MILLION , EXCLUDING CLOSING COSTS. THESE ACQUISITIONS ARE SUBJECT TO CONDITIONS. THESE CONDITIONS MAY NOT BE MET AND THESE ACQUISITIONS MAY NOT OCCUR, MAY BE DELAYED OR THEIR TERMS MAY CHANGE. - SNH HAS ENTERED AN AGREEMENT TO ACQUIRE SIX SENIOR LIVING COMMUNITIES FROM FIVE STAR FOR APPROXIMATELY
$104.0 MILLION , INCLUDING SNH’S ASSUMPTION OF APPROXIMATELY$33.7 MILLION OF MORTGAGE DEBT AND EXCLUDING CLOSING COSTS, AND SNH EXPECTS TO ENTER MANAGEMENT AND POOLING ARRANGEMENTS WITH FIVE STAR FOR FIVE STAR TO MANAGE THESE SENIOR LIVING COMMUNITIES FOR SNH. THESE ACQUISITIONS ARE SUBJECT TO CONDITIONS. THESE CONDITIONS MAY NOT BE MET AND THESE ACQUISITIONS AND RELATED MANAGEMENT AND POOLING ARRANGEMENTS MAY NOT OCCUR, MAY BE DELAYED BEYOND THE FIRST QUARTER OF 2018 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.
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||
(amounts in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
|
|
|||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental income | $ | 168,348 | $ | 165,503 | $ | 501,437 | $ | 490,922 | ||||||||||||
Residents fees and services | 98,331 | 98,480 | 294,816 | 292,803 | ||||||||||||||||
Total revenues | 266,679 | 263,983 | 796,253 | 783,725 | ||||||||||||||||
Expenses: | ||||||||||||||||||||
Property operating expenses | 104,714 | 103,347 | 308,565 | 298,776 | ||||||||||||||||
Depreciation and amortization | 66,619 | 72,344 | 209,463 | 214,938 | ||||||||||||||||
General and administrative | 19,883 | 12,107 | 57,889 | 34,931 | ||||||||||||||||
Acquisition and certain other transaction related costs | — | 824 | 292 | 1,443 | ||||||||||||||||
Impairment of assets | — | 4,578 | 5,082 | 16,930 | ||||||||||||||||
Total expenses | 191,216 | 193,200 | 581,291 | 567,018 | ||||||||||||||||
Operating income | 75,463 | 70,783 | 214,962 | 216,707 | ||||||||||||||||
Dividend income | 659 | 659 | 1,978 | 1,449 | ||||||||||||||||
Interest and other income | 128 | 89 | 323 | 330 | ||||||||||||||||
Interest expense | (40,105 | ) | (43,438 | ) | (124,394 | ) | (123,837 | ) | ||||||||||||
Loss on early extinguishment of debt | (274 | ) | (84 | ) | (7,627 | ) | (90 | ) | ||||||||||||
Income from continuing operations before income tax expense |
||||||||||||||||||||
and equity in earnings of an investee |
35,871 | 28,009 | 85,242 | 94,559 | ||||||||||||||||
Income tax expense | (109 | ) | (119 | ) | (300 | ) | (318 | ) | ||||||||||||
Equity in earnings of an investee | 31 | 13 | 533 | 107 | ||||||||||||||||
Income before gain on sale of properties | 35,793 | 27,903 | 85,475 | 94,348 | ||||||||||||||||
Gain on sale of properties | — | — | — | 4,061 | ||||||||||||||||
Net income | 35,793 | 27,903 | 85,475 | 98,409 | ||||||||||||||||
Net income attributable to noncontrolling interest | (1,379 | ) | — | (2,865 | ) | — | ||||||||||||||
Net income attributable to common shareholders | $ | 34,414 | $ | 27,903 | $ | 82,610 | $ | 98,409 | ||||||||||||
Weighted average common shares outstanding (basic) | 237,421 | 237,347 | 237,404 | 237,329 | ||||||||||||||||
Weighted average common shares outstanding (diluted) | 237,460 | 237,396 | 237,445 | 237,369 | ||||||||||||||||
Per common share data (basic and diluted): |
||||||||||||||||||||
Net income attributable to common shareholders | $ | 0.14 | $ | 0.12 | $ | 0.35 | $ | 0.41 | ||||||||||||
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FFO AND NORMALIZED FFO |
||||||||||||||||||||
(amounts in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
Calculation of FFO and Normalized FFO (1): |
||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Net income attributable to common shareholders | $ | 34,414 | $ | 27,903 | $ | 82,610 | $ | 98,409 | ||||||||||||
Depreciation and amortization expense | 66,619 | 72,344 | 209,463 | 214,938 | ||||||||||||||||
Noncontrolling interest's share of net FFO adjustments | (5,305 | ) | — | (11,066 | ) | — | ||||||||||||||
Gain on sale of properties | — | — | — | (4,061 | ) | |||||||||||||||
Impairment of assets | — | 4,578 | 5,082 | 16,930 | ||||||||||||||||
FFO | 95,728 | 104,825 | 286,089 | 326,216 | ||||||||||||||||
Estimated business management incentive fees (2) | 8,022 | — | 22,048 | — | ||||||||||||||||
Acquisition and certain other transaction related costs | — | 824 | 292 | 1,443 | ||||||||||||||||
Loss on early extinguishment of debt | 274 | 84 | 7,627 | 90 | ||||||||||||||||
Normalized FFO | $ | 104,024 | $ | 105,733 | $ | 316,056 | $ | 327,749 | ||||||||||||
Weighted average common shares outstanding (basic) | 237,421 | 237,347 | 237,404 | 237,329 | ||||||||||||||||
Weighted average common shares outstanding (diluted) | 237,460 | 237,396 | 237,445 | 237,369 | ||||||||||||||||
Per common share data (basic and diluted): |
||||||||||||||||||||
Net income attributable to common shareholders | $ | 0.14 | $ | 0.12 | $ | 0.35 | $ | 0.41 | ||||||||||||
FFO | $ | 0.40 | $ | 0.44 | $ | 1.20 | $ | 1.37 | ||||||||||||
Normalized FFO | $ | 0.44 | $ | 0.45 | $ | 1.33 | $ | 1.38 | ||||||||||||
Distributions declared | $ | 0.39 | $ | 0.39 | $ | 1.17 | $ | 1.17 |
(1) | SNH calculates FFO and Normalized FFO as shown above. FFO 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 Condensed 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 until the fourth quarter, when the amount of the business management incentive fee expense for the calendar year, if any, is determined. | ||
|
||||||||||||||||
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI |
||||||||||||||||
(amounts in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Calculation of NOI and Cash Basis NOI(1): |
||||||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 168,348 | $ | 165,503 | $ | 501,437 | $ | 490,922 | ||||||||
Residents fees and services | 98,331 | 98,480 | 294,816 | 292,803 | ||||||||||||
Total revenues | 266,679 | 263,983 | 796,253 | 783,725 | ||||||||||||
Property operating expenses | (104,714 | ) | (103,347 | ) | (308,565 | ) | (298,776 | ) | ||||||||
Property net operating income (NOI): | 161,965 | 160,636 | 487,688 | 484,949 | ||||||||||||
Non-cash straight line rent adjustments | (3,621 | ) | (4,292 | ) | (10,485 | ) | (13,598 | ) | ||||||||
Lease value amortization | (1,352 | ) | (1,236 | ) | (3,963 | ) | (3,795 | ) | ||||||||
Lease termination fee amortization | — | — | — | (42 | ) | |||||||||||
Non-cash amortization included in property operating expenses(2) | (199 | ) | (199 | ) | (598 | ) | (597 | ) | ||||||||
Cash Basis NOI | $ | 156,793 | $ | 154,909 | $ | 472,642 | $ | 466,917 | ||||||||
Reconciliation of Net Income to Cash Basis NOI: |
||||||||||||||||
Net income | $ | 35,793 | $ | 27,903 | $ | 85,475 | $ | 98,409 | ||||||||
Gain on sale of properties | — | — | — | (4,061 | ) | |||||||||||
Income before gain on sale of properties | 35,793 | 27,903 | 85,475 | 94,348 | ||||||||||||
Equity in earnings of an investee | (31 | ) | (13 | ) | (533 | ) | (107 | ) | ||||||||
Income tax expense | 109 | 119 | 300 | 318 | ||||||||||||
Loss on early extinguishment of debt | 274 | 84 | 7,627 | 90 | ||||||||||||
Interest expense | 40,105 | 43,438 | 124,394 | 123,837 | ||||||||||||
Interest and other income | (128 | ) | (89 | ) | (323 | ) | (330 | ) | ||||||||
Dividend income | (659 | ) | (659 | ) | (1,978 | ) | (1,449 | ) | ||||||||
Operating income | 75,463 | 70,783 | 214,962 | 216,707 | ||||||||||||
Impairment of assets | — | 4,578 | 5,082 | 16,930 | ||||||||||||
Acquisition and certain other transaction related costs | — | 824 | 292 | 1,443 | ||||||||||||
General and administrative expense | 19,883 | 12,107 | 57,889 | 34,931 | ||||||||||||
Depreciation and amortization expense | 66,619 | 72,344 | 209,463 | 214,938 | ||||||||||||
Property NOI | 161,965 | 160,636 | 487,688 | 484,949 | ||||||||||||
Non-cash amortization included in property operating expenses(2) | (199 | ) | (199 | ) | (598 | ) | (597 | ) | ||||||||
Lease termination fee amortization | — | — | — | (42 | ) | |||||||||||
Lease value amortization | (1,352 | ) | (1,236 | ) | (3,963 | ) | (3,795 | ) | ||||||||
Non-cash straight line rent adjustments | (3,621 | ) | (4,292 | ) | (10,485 | ) | (13,598 | ) | ||||||||
Cash Basis NOI | $ | 156,793 | $ | 154,909 | $ | 472,642 | $ | 466,917 |
(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 internally to evaluate individual and company wide property level performance, and it believes that NOI and Cash Basis NOI provide useful information to investors regarding its results of operations because these measures reflect only those income and expense items that are 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 REITs and real estate companies 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 RMR common stock 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: |
Triple Net Leased Senior Living Communities |
Managed Senior Living Communities |
MOBs |
Non- |
Total |
Triple Net Leased Senior Living Communities |
Managed Senior Living Communities |
MOBs |
Non- |
Total | ||||||||||||||||||||||||||||||||||||||||
Rental income / residents fees and services | $ | 67,662 | $ | 98,331 | $ | 96,116 | $ | 4,570 | $ | 266,679 | $ | 66,520 | $ | 98,480 | $ | 94,404 | $ | 4,579 | $ | 263,983 | ||||||||||||||||||||||||||||||
Property operating expenses | — | (75,556 | ) | (29,158 | ) | — | (104,714 | ) | (47 | ) | (74,763 | ) | (28,537 | ) | — | (103,347 | ) | |||||||||||||||||||||||||||||||||
Property net operating income (NOI) | $ | 67,662 | $ | 22,775 | $ | 66,958 | $ | 4,570 | $ | 161,965 | $ | 66,473 | $ | 23,717 | $ | 65,867 | $ | 4,579 | $ | 160,636 | ||||||||||||||||||||||||||||||
NOI change | 1.8 | % | (4.0 | )% | 1.7 | % | (0.2 | )% | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 67,662 | $ | 22,775 | $ | 66,958 | $ | 4,570 | $ | 161,965 | $ | 66,473 | $ | 23,717 | $ | 65,867 | $ | 4,579 | $ | 160,636 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 750 | — | 2,733 | 138 | 3,621 | 865 | — | 3,290 | 137 | 4,292 | ||||||||||||||||||||||||||||||||||||||||
Lease value amortization | — | — | 1,297 | 55 | 1,352 | — | — | 1,181 | 55 | 1,236 | ||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | — | — | 199 | — | 199 | — | — | 199 | — | 199 | ||||||||||||||||||||||||||||||||||||||||
Cash Basis NOI | $ | 66,912 | $ | 22,775 | $ | 62,729 | $ | 4,377 | $ | 156,793 | $ | 65,608 | $ | 23,717 | $ | 61,197 | $ | 4,387 | $ | 154,909 | ||||||||||||||||||||||||||||||
Cash Basis NOI change | 2.0 | % | (4.0 | )% | 2.5 | % | (0.2 | )% | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of NOI to Same Property NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 67,662 | $ | 22,775 | $ | 66,958 | $ | 4,570 | $ | 161,965 | $ | 66,473 | $ | 23,717 | $ | 65,867 | $ | 4,579 | $ | 160,636 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
NOI not included in same property | 350 | 864 | 1,006 | — | 2,220 | (82 | ) | 936 | (60 | ) | — | 794 | ||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 67,312 | $ | 21,911 | $ | 65,952 | $ | 4,570 | $ | 159,745 | $ | 66,555 | $ | 22,781 | $ | 65,927 | $ | 4,579 | $ | 159,842 | ||||||||||||||||||||||||||||||
Same property NOI change | 1.1 | % | (3.8 | )% | 0.0 | % | (0.2 | )% | (0.1 | )% | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of Same Property NOI to Same Property Cash Basis NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 67,312 | $ | 21,911 | $ | 65,952 | $ | 4,570 | $ | 159,745 | $ | 66,555 | $ | 22,781 | $ | 65,927 | $ | 4,579 | $ | 159,842 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 750 | — | 2,632 | 138 | 3,520 | 1,000 | — | 3,304 | 137 | 4,441 | ||||||||||||||||||||||||||||||||||||||||
Lease value amortization | — | — | 1,301 | 55 | 1,356 | — | — | 1,181 | 55 | 1,236 | ||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | — | — | 199 | — | 199 | — | — | 198 | — | 198 | ||||||||||||||||||||||||||||||||||||||||
Same property cash basis NOI (4) | $ | 66,562 | $ | 21,911 | $ | 61,820 | $ | 4,377 | $ | 154,670 | $ | 65,555 | $ | 22,781 | $ | 61,244 | $ | 4,387 | $ | 153,967 | ||||||||||||||||||||||||||||||
Same property cash basis NOI change | 1.5 | % | (3.8 | )% | 0.9 | % | (0.2 | )% | 0.5 | % |
(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 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 RMR common stock 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 Nine Months Ended |
For the Nine Months Ended |
|||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of NOI and Cash Basis NOI: |
Triple Net Leased Senior Living Communities |
Managed Senior Living Communities |
MOBs |
Non- |
Total |
Triple Net Leased Senior Living Communities |
Managed Senior Living Communities |
MOBs |
Non- |
Total | ||||||||||||||||||||||||||||||||||||||||
Rental income / residents fees and services | $ | 202,340 | $ | 294,816 | $ | 285,413 | $ | 13,684 | $ | 796,253 | $ | 198,269 | $ | 292,803 | $ | 278,964 | $ | 13,689 | $ | 783,725 | ||||||||||||||||||||||||||||||
Property operating expenses | — | (224,585 | ) | (83,980 | ) | — | (308,565 | ) | (833 | ) | (218,582 | ) | (79,361 | ) | — | (298,776 | ) | |||||||||||||||||||||||||||||||||
Property net operating income (NOI) | $ | 202,340 | $ | 70,231 | $ | 201,433 | $ | 13,684 | $ | 487,688 | $ | 197,436 | $ | 74,221 | $ | 199,603 | $ | 13,689 | $ | 484,949 | ||||||||||||||||||||||||||||||
NOI change | 2.5 | % | (5.4 | )% | 0.9 | % | (0.0 | )% | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 202,340 | $ | 70,231 | $ | 201,433 | $ | 13,684 | $ | 487,688 | $ | 197,436 | $ | 74,221 | $ | 199,603 | $ | 13,689 | $ | 484,949 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 2,304 | — | 7,769 | 412 | 10,485 | 3,184 | — | 10,002 | 412 | 13,598 | ||||||||||||||||||||||||||||||||||||||||
Lease value amortization | — | — | 3,797 | 166 | 3,963 | — | — | 3,629 | 166 | 3,795 | ||||||||||||||||||||||||||||||||||||||||
Lease termination fee amortization | — | — | — | — | — | — | — | 42 | — | 42 | ||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | — | — | 598 | — | 598 | — | — | 597 | — | 597 | ||||||||||||||||||||||||||||||||||||||||
Cash Basis NOI | $ | 200,036 | $ | 70,231 | $ | 189,269 | $ | 13,106 | $ | 472,642 | $ | 194,252 | $ | 74,221 | $ | 185,333 | $ | 13,111 | $ | 466,917 | ||||||||||||||||||||||||||||||
Cash Basis NOI change | 3.0 | % | (5.4 | )% | 2.1 | % | (0.0 | )% | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of NOI to Same Property NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property NOI | $ | 202,340 | $ | 70,231 | $ | 201,433 | $ | 13,684 | $ | 487,688 | $ | 197,436 | $ | 74,221 | $ | 199,603 | $ | 13,689 | $ | 484,949 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
NOI not included in same property | 7,374 | 3,197 | 9,185 | — | 19,756 | 4,650 | 3,596 | 5,771 | — | 14,017 | ||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 194,966 | $ | 67,034 | $ | 192,248 | $ | 13,684 | $ | 467,932 | $ | 192,786 | $ | 70,625 | $ | 193,832 | $ | 13,689 | $ | 470,932 | ||||||||||||||||||||||||||||||
Same property NOI change | 1.1 | % | (5.1 | )% | (0.8 | )% | (0.0 | )% | (0.6 | )% | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of Same Property NOI to Same Property Cash Basis NOI: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same property NOI (4) | $ | 194,966 | $ | 67,034 | $ | 192,248 | $ | 13,684 | $ | 467,932 | $ | 192,786 | $ | 70,625 | $ | 193,832 | $ | 13,689 | $ | 470,932 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash straight line rent adjustments | 2,304 | — | 6,788 | 412 | 9,504 | 3,224 | — | 9,637 | 412 | 13,273 | ||||||||||||||||||||||||||||||||||||||||
Lease value amortization | — | — | 3,689 | 166 | 3,855 | — | — | 3,303 | 166 | 3,469 | ||||||||||||||||||||||||||||||||||||||||
Non-cash amortization included in property operating expenses (3) | — | — | 598 | — | 598 | — | — | 591 | — | 591 | ||||||||||||||||||||||||||||||||||||||||
Same property cash basis NOI (4) | $ | 192,662 | $ | 67,034 | $ | 181,173 | $ | 13,106 | $ | 453,975 | $ | 189,562 | $ | 70,625 | $ | 180,301 | $ | 13,111 | $ | 453,599 | ||||||||||||||||||||||||||||||
Same property cash basis NOI change | 1.6 | % | (5.1 | )% | 0.5 | % | (0.0 | )% | 0.1 | % |
(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 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 RMR common stock 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 | $ | 7,837,448 | $ | 7,730,523 | ||||||
Accumulated depreciation | (1,475,360 | ) | (1,328,011 | ) | ||||||
6,362,088 | 6,402,512 | |||||||||
Cash and cash equivalents | 28,870 | 31,749 | ||||||||
Restricted cash | 14,088 | 3,829 | ||||||||
Acquired real estate leases and other intangible assets, net | 463,802 | 514,446 | ||||||||
Other assets, net | 318,893 | 275,218 | ||||||||
Total assets | $ | 7,187,741 | $ | 7,227,754 | ||||||
|
||||||||||
LIABILITIES AND EQUITY |
||||||||||
Unsecured revolving credit facility | $ | 471,000 | $ | 327,000 | ||||||
Unsecured term loans, net | 547,253 | 547,058 | ||||||||
Senior unsecured notes, net | 1,724,936 | 1,722,758 | ||||||||
Secured debt and capital leases, net | 815,500 | 1,117,649 | ||||||||
Accrued interest | 32,185 | 18,471 | ||||||||
Assumed real estate lease obligations, net | 98,498 | 106,038 | ||||||||
Other liabilities | 210,814 | 189,375 | ||||||||
Total liabilities | 3,900,186 | 4,028,349 | ||||||||
Total equity | 3,287,555 | 3,199,405 | ||||||||
Total liabilities and equity | $ | 7,187,741 | $ | 7,227,754 | ||||||
A
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171109005486/en/
For
Director, Investor Relations
Source:
MPI Launches New Philadelphia Office; Expands Consulting Services to Include Forensic Accounting and Economic Damage Calculations
Sen. Wicker Introduces Bill to Require Insurance Agents to Take Continuing Educational Courses
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News