NEWTON, Mass., May 04, 2010 (BUSINESS WIRE) -- Senior Housing Properties Trust (NYSE: SNH) today announced its
financial results for the quarter ended March 31, 2010.
Results for the quarter ended March 31, 2010:
Funds from operations, or FFO, for the quarter ended March 31, 2010 were
$54.8 million, or $0.43 per share. This compares to FFO for the quarter
ended March 31, 2009 of $52.1 million, or $0.44 per share.
Net income was $30.0 million, or $0.24 per share, for the quarter ended
March 31, 2010, compared to net income of $31.5 million, or $0.27 per
share, for the quarter ended March 31, 2009.
The weighted average number of common shares outstanding totaled 127.4
million and 117.9 million for the quarters ended March 31, 2010 and
2009, respectively.
A reconciliation of net income determined according to U.S. generally
accepted accounting principles, or GAAP, to FFO appears later in this
press release.
Recent Activities:
In April 2010, we acquired a medical office building located in Colorado
with 14,695 rentable square feet for approximately $4.5 million,
excluding closing costs. We funded this acquisition using cash on hand
and by assuming a mortgage loan totaling $2.5 million with an interest
rate of 6.73% per annum.
In April 2010, we entered into a purchase and sale agreement to acquire
a medical office building located in Texas with approximately 55,800
rentable square feet for approximately $12.2 million, excluding closing
costs. We expect to fund this acquisition using cash on hand and
borrowings under our revolving credit facility, if necessary. The
purchase of this property is contingent upon completion of our diligence
and other customary closing conditions; accordingly, we can provide no
assurance that we will purchase this property.
In April 2010, we sold $200.0 million of senior unsecured notes. The
notes require interest at a fixed rate of 6.75% per annum and are due in
2020. Net proceeds from the sale of the notes, after underwriting
discounts and other expenses, were approximately $195.0 million.
Interest on the notes is payable semi-annually in arrears. No principal
payments are due until maturity. We used a portion of the net proceeds
of this offering to repay $58.0 million in borrowings under our
revolving credit facility and we intend to use the remaining net
proceeds of this offering to fund the redemption of our $97.5 million
outstanding 7.875% senior notes due 2015 and for general business
purposes, including pending and possible future acquisitions. In April
2010, we called all of the outstanding 7.875% senior notes due 2015 for
redemption on May 17, 2010.
Conference Call:
On Tuesday, May 4, 2010, at 11:00 a.m. Eastern Time, David J. Hegarty,
President and Chief Operating Officer, and Richard A. Doyle, Treasurer
and Chief Financial Officer, will host a conference call to discuss the
results for the first quarter ended March 31, 2010. The conference call
telephone number is 888-263-2786. Participants calling from outside the
United States and Canada should dial 913-312-1430. No pass code is
necessary to access the call from either number. Participants should
dial in about 15 minutes prior to the scheduled start of the call. A
replay of the conference call will be available through 2:00 p.m.
Eastern Time, Tuesday, May 11, 2010. To hear the replay, dial
719-457-0820. The replay pass code is 7509854.
A live audio web cast of the conference call will also be available in
listen only mode on the SNH website at www.snhreit.com. Participants
wanting to access the webcast should visit the website about five
minutes before the call. The archived webcast will be available for
replay on the SNH website for about one week after the call. The
recording and retransmission in any way of SNH's fourth quarter and year
end conference call is strictly prohibited without the prior written
consent of SNH.
Supplemental Data:
A copy of SNH's First Quarter 2010 Supplemental Operating and Financial
Data is available for download from the SNH website, www.snhreit.com.
SNH's website is not incorporated as part of this press release.
SNH is a real estate investment trust, or REIT, that owns 299 properties
located in 35 states and Washington, D.C. SNH is headquartered in
Newton, MA.
Senior Housing Properties Trust
Financial Information
(in thousands, except per share data)
(unaudited)
|
|
|
Income Statement:
|
|
|
Quarter Ended March 31,
|
|
2010
|
|
2009
|
Rental income
|
$80,447
|
|
$68,377
|
|
|
|
|
Expenses:
|
|
|
|
Depreciation
|
22,289
|
|
18,389
|
General and administrative
|
5,501
|
|
4,751
|
Property operating expenses
|
4,375
|
|
2,955
|
Acquisition costs
|
35
|
|
112
|
Total expenses
|
32,200
|
|
26,207
|
|
|
|
|
Operating income
|
48,247
|
|
42,170
|
|
|
|
|
Interest and other income
|
257
|
|
208
|
Interest expense
|
(18,414)
|
|
(10,776)
|
Equity in losses of an investee
|
(28)
|
|
-
|
Income before income tax expense
|
30,062
|
|
31,602
|
Income tax expense
|
(78)
|
|
(69)
|
Net income
|
$29,984
|
|
$31,533
|
|
|
|
|
Weighted average shares outstanding
|
127,380
|
|
117,853
|
Per share data:
|
|
|
|
Net income
|
$0.24
|
|
$0.27
|
Balance Sheet:
|
|
|
|
|
At March 31, 2010
|
|
At December 31, 2009
|
Assets
|
|
|
|
Real estate properties
|
$3,324,345
|
|
$3,317,983
|
Less accumulated depreciation
|
475,451
|
|
454,317
|
|
2,848,894
|
|
2,863,666
|
Cash and cash equivalents
|
5,486
|
|
10,494
|
Restricted cash
|
4,643
|
|
4,222
|
Deferred financing fees, net
|
14,942
|
|
14,882
|
Acquired real estate leases, net
|
41,032
|
|
42,769
|
Other assets
|
51,025
|
|
51,893
|
Total assets
|
$2,966,022
|
|
$2,987,926
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
Unsecured revolving credit facility
|
$58,000
|
|
$60,000
|
Senior unsecured notes, net of discount
|
322,196
|
|
322,160
|
Secured debt and capital leases
|
657,862
|
|
660,059
|
Accrued interest
|
10,836
|
|
13,693
|
Acquired real estate lease obligations, net
|
9,318
|
|
9,687
|
Other liabilities
|
22,493
|
|
21,677
|
Total liabilities
|
1,080,705
|
|
1,087,276
|
Shareholders' equity
|
1,885,317
|
|
1,900,650
|
Total liabilities and shareholders' equity
|
$2,966,022
|
|
$2,987,926
|
Senior Housing Properties Trust
Funds from Operations
(in thousands, except per share data)
(unaudited)
|
|
|
Calculation of Funds from Operations (FFO) (1):
|
|
|
|
Quarter Ended March 31,
|
|
2010
|
|
2009
|
Net income
|
$29,984
|
|
$31,533
|
Add: Depreciation expense
|
22,289
|
|
18,389
|
Acquisition costs
|
35
|
|
112
|
Deferred percentage rent (2)
|
2,500
|
|
2,100
|
FFO
|
$54,808
|
|
$52,134
|
|
|
|
|
Weighted average shares outstanding
|
127,380
|
|
117,853
|
|
|
|
|
FFO per share
|
$0.43
|
|
$0.44
|
Distributions declared
|
$0.36
|
|
$0.35
|
(1) 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 impairment of assets, if any, and exclude
acquisition 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 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.
(2) 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 includes 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.
WARNING CONCERNING FORWARD LOOKING
STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS AND IMPLICATIONS WHICH CONSTITUTE
FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. ALSO,
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 ARE BASED
UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING
STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. OUR ACTUAL
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR
FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
-
THIS PRESS RELEASE STATES THAT WE HAVE ENTERED INTO AN AGREEMENT TO
PURCHASE ONE MEDICAL OFFICE BUILDING. OUR OBLIGATION TO COMPLETE THIS
CURRENTLY PENDING ACQUISITION IS SUBJECT TO VARIOUS CONDITIONS TYPICAL
OF COMMERCIAL REAL ESTATE ACQUISITIONS. AS A RESULT OF ANY FAILURE OF
THESE CONDITIONS, WE MAY NOT ACQUIRE THIS PROPERTY.
OTHER IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE IN OUR FORWARD LOOKING STATEMENTS ARE DESCRIBED
MORE FULLY UNDER "ITEM 1A. RISK FACTORS" IN OUR ANNUAL REPORT ON FORM
10-K FOR THE YEAR ENDED DECEMBER 31, 2009.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON 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.
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the New York Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act
or obligation of the Trust.
SOURCE: Senior Housing Properties Trust
Senior Housing Properties Trust
Timothy A. Bonang, 617-796-8234
Vice President, Investor Relations
or
Elisabeth A. Heiss, 617-796-8234
Manager, Investor Relations
www.snhreit.com
Copyright Business Wire 2010