Third Quarter Net Income of $0.12 Per Share
Third Quarter Normalized FFO of $0.45 Per Share
NEWTON, Mass.--(BUSINESS WIRE)--
Senior Housing Properties Trust (Nasdaq: SNH) today announced its
financial results for the three and nine months ended September 30, 2016.
“During the third quarter we continued to focus on managing our
portfolio and balance sheet,” said David Hegarty, President and
Chief Operating Officer. “We sold $20.4 million of properties
during the quarter; subsequent to the quarter end, we acquired a MOB for
$18.5 million and agreed to acquire two assisted living communities for
$18.6 million. In July 2016, we completed $620.0 million of secured
financing at an attractive 10 year, interest only rate of 3.53% per
annum.”
Results for the Quarter Ended September 30, 2016:
Net income was $27.9 million, or $0.12 per diluted share, for the
quarter ended September 30, 2016, compared to $38.2 million, or $0.16
per diluted share, for the quarter ended September 30, 2015, which
represents a decrease of $0.04 per diluted share. The decline in net
income per diluted share for the quarter ended September 30, 2016
compared to the quarter ended September 30, 2015 primarily resulted from
an increase in interest expense of approximately $4.4 million, or $0.02
per diluted share, and non-cash impairment of asset charges of
approximately $4.6 million, or $0.02 per diluted share, recorded during
the three months ended September 30, 2016.
Normalized funds from operations, or Normalized FFO, were $105.7
million, or $0.45 per diluted share, for the quarter ended September 30,
2016, compared to $108.9 million, or $0.46 per diluted share, for the
quarter ended September 30, 2015, which represents a decrease of $0.01
per diluted share. The decrease of $0.01 from the comparison period is
primarily attributable to increased interest expense of $0.02 per
diluted share.
Cash basis net operating income, or Cash Basis NOI, was $154.9 million
for the quarter ended September 30, 2016, compared to $151.8 million for
the quarter ended September 30, 2015, which represents an increase of
2.1%. Contributions to the increase in Cash Basis NOI include $2.5
million from acquisitions and $0.6 million of increases at the same
properties over the comparison period.
Reconciliations of net income determined in accordance with U.S.
generally accepted accounting principles, or GAAP, to funds from
operations, or FFO, and Normalized FFO for the quarters ended
September 30, 2016 and 2015 appear later in this press release.
Reconciliations of net operating income, or NOI, and Cash Basis NOI to
net income determined in accordance with GAAP for the quarters ended
September 30, 2016 and 2015 also appear later in this press release. In
addition, calculations and reconciliations of NOI, Cash Basis NOI, same
property NOI and same property Cash Basis NOI by SNH’s operating
segments for the quarters ended September 30, 2016 and 2015 appear later
in this press release.
Results for the Nine Months Ended September 30, 2016:
Net income was $98.4 million, or $0.41 per diluted share, for the nine
months ended September 30, 2016, compared to $114.4 million, or $0.49
per diluted share, for the nine months ended September 30, 2015, which
represents a decrease of $0.08 per diluted share. The decline in net
income per diluted share for the nine months ended September 30, 2016
primarily resulted from non-cash impairment of asset charges of $16.9
million, or $0.07 per diluted share, recorded during the nine months
ended September 30, 2016, as well as an increase in interest expense of
approximately $11.0 million, or $0.03 per diluted share, partially
offset by a gain on sale of $4.1 million, or $0.02 per diluted share,
recorded during the nine months ended September 30, 2016, related to the
sale of one skilled nursing facility in June 2016.
Normalized FFO were $327.7 million, or $1.38 per diluted share, for the
nine months ended September 30, 2016, compared to $309.1 million, or
$1.34 per diluted share, for the nine months ended September 30, 2015,
which represents an increase of $0.04 per diluted share. The increase of
$0.04 per diluted share from the comparison period is primarily
attributable to acquisitions, partially offset by increased interest
expense of $0.03 per diluted share.
Cash Basis NOI was $466.9 million for the nine months ended
September 30, 2016, compared to $437.0 million for the nine months ended
September 30, 2015, which represents an increase of 6.8%. Contributions
to the increase in Cash Basis NOI include $24.0 million from
acquisitions and $5.9 million of increases at the same properties over
the comparison period.
Reconciliations of net income determined in accordance with GAAP to FFO
and Normalized FFO for the nine months ended September 30, 2016 and 2015
appear later in this press release. Reconciliations of NOI and Cash
Basis NOI to net income determined in accordance with GAAP for the nine
months ended September 30, 2016 and 2015 also appear later in this press
release. In addition, calculations and reconciliations of NOI, Cash
Basis NOI, same property NOI and same property Cash Basis NOI by SNH’s
operating segments for the nine months ended September 30, 2016 and 2015
appear later in this press release.
Portfolio Operating Results:
For the quarter ended September 30, 2016, same property Cash Basis NOI
increased 0.4% and same property NOI decreased 0.2% compared to the
quarter ended September 30, 2015.
For the quarter ended September 30, 2016, 41.0% of SNH’s NOI came from
119 properties leased to medical providers, medical related businesses,
clinics and biotech laboratory tenants, or MOBs, with 11.4 million
leasable square feet. SNH’s MOB same property Cash Basis NOI increased
0.2% and same property NOI decreased 0.6% for the quarter ended
September 30, 2016 compared to the quarter ended September 30, 2015. As
of September 30, 2016, 95.9% of SNH’s MOB square feet were leased
compared to 96.0% as of September 30, 2015. Same property occupancy at
SNH’s MOBs was 96.3% as of September 30, 2016 and June 30, 2016,
compared to 96.0% as of September 30, 2015.
For the quarter ended September 30, 2016, 41.4% of SNH’s NOI came from
234 triple net leased senior living communities with 26,094 living
units. Same property Cash Basis NOI and same property NOI from triple
net leased senior living communities increased 1.9% and 1.3%,
respectively, for the quarter ended September 30, 2016 compared to the
quarter ended September 30, 2015. Occupancy at triple net leased senior
living communities decreased to 85.3% for the most recently available
12-month period, compared to 85.8% for the comparable period last year(1). Same
property occupancy at triple net leased senior living communities
decreased to 85.2% for the most recently available 12-month period,
compared to 85.8% for the comparable period last year(1).
For the quarter ended September 30, 2016, 14.8% of SNH's NOI came from
68 managed senior living communities with 8,797 living units. Same
property Cash Basis NOI and same property NOI from managed senior living
communities each decreased 2.9% for the quarter ended September 30, 2016
compared to the quarter ended September 30, 2015. Occupancy at managed
senior living communities was 86.7% for the quarter ended September 30,
2016, compared to 87.7% for the comparable period last year. Same
property occupancy at managed senior living communities owned
continuously since July 1, 2015 was 87.2% for the quarter ended
September 30, 2016 compared to 87.1% for the quarter ended June 30, 2016
and 87.8% for the quarter ended September 30, 2015. Same property
average monthly rates increased 1.4% to $4,229 for the quarter ended
September 30, 2016 compared to the quarter ended September 30, 2015.
(1) Occupancy ratios for triple net leased senior living
communities are based upon operating results provided by SNH’s tenants,
and this information is usually provided to SNH three months after the
end of a fiscal quarter end. As a result, occupancy ratios presented for
triple net leased senior living communities are for the 12 months ended
June 30, 2016 and 2015. SNH has not independently verified tenant
operating data.
Acquisition Activities:
In October 2016, SNH acquired one MOB for approximately $18.5 million,
excluding closing costs. This MOB contains approximately 96,000 square
feet, is located in Ohio and has a remaining lease term of approximately
14 years.
In September 2016, SNH entered into an agreement to acquire two senior
living communities with a combined 126 living units located in Illinois
for approximately $18.6 million, excluding closing costs. SNH expects to
acquire these communities in the fourth quarter of 2016. If these
communities are acquired, SNH expects to lease these communities to Five
Star Quality Care Inc., or Five Star, and that these communities will be
added to one of SNH's existing master leases with Five Star.
During the quarter ended September 30, 2016, SNH spent approximately
$5.3 million on capital investments that will generate additional rent
under its existing senior living communities’ leases.
Disposition Activities:
In July 2016, SNH sold four MOBs located in Oklahoma for approximately
$20.2 million, excluding closing costs. In September 2016, SNH sold one
skilled nursing facility located in Wisconsin for approximately $0.2
million, excluding closing costs. As of September 30, 2016, one MOB
located in Pennsylvania and a former memory care building at a senior
living community located in Florida were classified as held for sale.
Financing Activities:
In July 2016, SNH entered into loan agreements and obtained an aggregate
$620.0 million secured debt financing. These loans are secured by one
MOB (two buildings), located in Massachusetts, and mature in
August 2026. The loans carry a weighted average fixed annual interest
rate of 3.53%. SNH used the proceeds from these loans to repay in part
the then outstanding amount under its unsecured revolving credit
facility and for general business purposes.
In July 2016, SNH prepaid, at par plus accrued interest, a mortgage note
encumbering one property which had a maturity date in November 2016, an
outstanding principal balance of approximately $11.9 million and an
annual interest rate of 6.25%. In September 2016, SNH prepaid, at par
plus accrued interest, mortgage notes encumbering two properties which
had maturity dates in November 2016, an aggregate outstanding principal
balance of approximately $80.0 million and a weighted average annual
interest rate of 5.92%. In October 2016, SNH prepaid, at par plus
prepayment premiums and accrued interest, mortgage notes encumbering
eight properties which had maturity dates in May 2017, an aggregate
outstanding principal balance of approximately $42.5 million and a
weighted average annual interest rate of 6.54%. In October 2016, SNH
gave notice of its intention to prepay, at par plus accrued interest, a
mortgage note encumbering one property which has a maturity date in
March 2017, an outstanding principal balance of $5.4 million and an
annual interest rate of 5.86%; SNH expects to make this prepayment in
December 2016.
Conference Call:
On Friday, November 4, 2016, at 10:00 a.m. Eastern Time, David J.
Hegarty, President and Chief Operating Officer, and Richard W.
Siedel, Jr., Chief Financial Officer and Treasurer, will host a
conference call to discuss the third quarter 2016 financial results. The
conference call telephone number is (877) 329-4297. Participants calling
from outside the United States and Canada should dial (412) 317-5435. 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 11:59 p.m. Eastern Time on Friday, November 11, 2016. To hear
the replay, dial (412) 317-0088. The replay pass code is 10092984.
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 after the call. The
transcription, recording and retransmission in any way of SNH’s third
quarter 2016 conference call are strictly prohibited without the prior
written consent of SNH.
Supplemental Data:
A copy of SNH’s Third Quarter 2016 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 buildings and wellness centers throughout
the United States. SNH is managed by the operating subsidiary of The RMR
Group Inc. (Nasdaq: RMR), an alternative asset management company that
is headquartered in Newton, MA.
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, Normalized FFO, NOI and Cash Basis NOI.
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:
-
SNH HAS AGREED TO ACQUIRE TWO SENIOR LIVING COMMUNITIES LOCATED IN
ILLINOIS AND EXPECTS THE CLOSING TO OCCUR IN THE FOURTH QUARTER OF
2016. IF THESE ACQUISITIONS ARE COMPLETED, SNH EXPECTS THAT IT WILL
LEASE THESE COMMUNITIES TO FIVE STAR. THIS TRANSACTION IS SUBJECT TO
CONDITIONS. AS A RESULT, THESE ACQUISITIONS AND LEASING ARRANGEMENTS
MAY NOT OCCUR, MAY BE DELAYED OR THE 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.
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SENIOR HOUSING PROPERTIES TRUST
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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(amounts in thousands, except per share data)
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(unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2016
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2015
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2016
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2015
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Revenues:
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Rental income
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$
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165,503
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$
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158,863
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$
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490,922
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$
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460,193
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Residents fees and services
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98,480
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96,412
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292,803
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271,061
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Total revenues
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263,983
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255,275
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783,725
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731,254
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Expenses:
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Property operating expenses
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103,347
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96,927
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298,776
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276,313
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Depreciation and amortization
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72,344
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70,016
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214,938
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186,234
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General and administrative
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12,107
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10,316
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34,931
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32,563
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Acquisition and certain other transaction related costs
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824
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742
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1,443
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6,517
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Impairment of assets
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4,578
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(98
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)
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16,930
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(98
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)
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Total expenses
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193,200
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177,903
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567,018
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501,529
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Operating income
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70,783
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77,372
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216,707
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229,725
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Dividend income
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659
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|
—
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1,449
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|
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—
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Interest and other income
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89
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57
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330
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274
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Interest expense
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(43,438
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)
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(38,989
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)
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(123,837
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)
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(112,838
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)
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Loss on early extinguishment of debt
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|
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(84
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)
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(21
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)
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(90
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)
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|
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(1,469
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)
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Income from continuing operations before income tax expense and
equity in earnings (losses) of an investee
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28,009
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38,419
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94,559
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115,692
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Income tax expense
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|
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(119
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)
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|
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(146
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)
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(318
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)
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(385
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)
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Equity in earnings (losses) of an investee
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13
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(24
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)
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107
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70
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Income from continuing operations
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27,903
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38,249
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94,348
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115,377
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Discontinued operations:
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Loss from discontinued operations
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—
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—
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—
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(350
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)
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Impairment of assets from discontinued operations
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—
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—
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—
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(602
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)
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Income before gain on sale of properties
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27,903
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38,249
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94,348
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114,425
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Gain on sale of properties
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|
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—
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|
|
—
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|
|
|
4,061
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|
|
—
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Net income
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|
$
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27,903
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|
|
|
$
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38,249
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|
|
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$
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98,409
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|
|
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$
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114,425
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Weighted average shares outstanding (basic)
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237,347
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237,263
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|
|
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237,329
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|
|
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231,454
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Weighted average shares outstanding (diluted)
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237,396
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237,293
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237,369
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|
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231,486
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Per common share amounts (basic and diluted):
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Income from continuing operations
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$
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0.12
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$
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0.16
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$
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0.41
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$
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0.50
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Loss from discontinued operations
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—
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—
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—
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(0.01
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)
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Net income per share
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$
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0.12
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$
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0.16
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$
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0.41
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$
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0.49
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SENIOR HOUSING PROPERTIES TRUST
|
|
CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS AND NORMALIZED
FUNDS FROM OPERATIONS
|
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(amounts in thousands, except per share data)
|
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(unaudited)
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|
|
|
|
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|
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Calculation of Funds from Operations (FFO) and Normalized FFO
(1)(2):
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2016
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2015
|
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2016
|
|
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2015
|
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Net income
|
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$
|
27,903
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$
|
38,249
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|
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$
|
98,409
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$
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114,425
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Depreciation and amortization expense
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72,344
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|
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70,016
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214,938
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186,234
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Gain on sale of properties
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—
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|
—
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|
|
|
(4,061
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)
|
|
|
—
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Impairment of assets from continuing operations
|
|
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4,578
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|
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(98
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)
|
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16,930
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(98
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Impairment of assets from discontinued operations
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—
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|
|
—
|
|
|
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—
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|
602
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FFO
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104,825
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108,167
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326,216
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|
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301,163
|
|
|
|
|
|
|
|
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|
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|
|
|
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Acquisition and certain other transaction related costs
|
|
|
824
|
|
|
|
742
|
|
|
|
1,443
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|
|
|
6,517
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|
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Loss on early extinguishment of debt
|
|
|
84
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|
|
|
21
|
|
|
|
90
|
|
|
|
1,469
|
|
|
Normalized FFO
|
|
|
$
|
105,733
|
|
|
|
$
|
108,930
|
|
|
|
$
|
327,749
|
|
|
|
$
|
309,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (basic)
|
|
|
237,347
|
|
|
|
237,263
|
|
|
|
237,329
|
|
|
|
231,454
|
|
|
Weighted average shares outstanding (diluted)
|
|
|
237,396
|
|
|
|
237,293
|
|
|
|
237,369
|
|
|
|
231,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share (basic and diluted)
|
|
|
$
|
0.12
|
|
|
|
$
|
0.16
|
|
|
|
$
|
0.41
|
|
|
|
$
|
0.49
|
|
|
FFO per share (basic and diluted)
|
|
|
$
|
0.44
|
|
|
|
$
|
0.46
|
|
|
|
$
|
1.37
|
|
|
|
$
|
1.30
|
|
|
Normalized FFO per share (basic and diluted)
|
|
|
$
|
0.45
|
|
|
|
$
|
0.46
|
|
|
|
$
|
1.38
|
|
|
|
$
|
1.34
|
|
|
Distributions declared per share
|
|
|
$
|
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 National Association of Real
Estate Investment Trusts, or NAREIT, which is net income, calculated in
accordance with GAAP, excluding any gain or loss on sale of properties
and impairment of real estate assets, plus real estate depreciation and
amortization, as well as certain other adjustments currently not
applicable to SNH. SNH’s calculation of Normalized FFO differs from
NAREIT’s definition of FFO because SNH includes business management
incentive fees, if any, only in the fourth quarter versus the quarter
when they are recognized as expense in accordance with GAAP due to their
quarterly volatility not necessarily being indicative of SNH’s core
operating performance and the uncertainty as to whether any such
business management incentive fees will ultimately be payable when all
contingencies for determining any such fees are determined at the end of
the calendar year, and SNH excludes acquisition and certain other
transaction related costs such as legal and professional fees associated
with SNH's acquisition and disposition activities and gains and losses
on early extinguishment of debt, if any. SNH considers FFO and
Normalized FFO to be appropriate supplemental measures of operating
performance for a REIT, along with net income and operating income. SNH
believes that FFO and Normalized FFO provide useful information to
investors, because by excluding the effects of certain historical
amounts, such as depreciation expense, FFO and Normalized FFO may
facilitate a comparison of SNH's operating performance between periods
and with other REITs. FFO and Normalized FFO are among the factors
considered by SNH’s Board of Trustees when determining the amount of
distributions to its shareholders. Other factors include, but are not
limited to, requirements to maintain SNH’s qualification for taxation as
a REIT, limitations in SNH’s revolving credit facility and term loan
agreements and SNH’s public debt covenants, the availability to SNH of
debt and equity capital, SNH’s expectation of its future capital
requirements and operating performance, and SNH’s expected needs and
availability of cash to pay its obligations. FFO and Normalized FFO do
not represent cash generated by operating activities in accordance with
GAAP and should not be considered as alternatives to net income or
operating income as an indicator of SNH’s operating performance or as a
measure of SNH’s liquidity. These measures should be considered in
conjunction with net income and operating income as presented in SNH’s
Condensed Consolidated Statements of Income. Other REITs and real estate
companies may calculate FFO and Normalized FFO differently than SNH does.
(2) Effective as of the quarter ended June 30, 2016, SNH changed its
calculation of Normalized FFO to no longer include adjustments for
estimated percentage rent. Historically, when calculating Normalized
FFO, SNH estimated an amount of percentage rental income for each of the
first three quarters of the year and then, in the fourth quarter,
excluded the amounts that had been included in the first three quarters.
In calculating net income in accordance with GAAP, SNH recognizes
percentage rental income for the full year in the fourth quarter, which
is when all contingencies are met and the income is earned. Normalized
FFO for historical periods has been restated to be comparable with the
current period calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
SENIOR HOUSING PROPERTIES TRUST
|
|
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI)
AND CASH BASIS NOI
|
|
(amounts in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
Calculation of NOI and Cash Basis NOI(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
$
|
165,503
|
|
|
|
$
|
158,863
|
|
|
|
$
|
490,922
|
|
|
|
$
|
460,193
|
|
|
Residents fees and services
|
|
|
|
98,480
|
|
|
|
|
96,412
|
|
|
|
|
292,803
|
|
|
|
|
271,061
|
|
|
Total revenues
|
|
|
|
263,983
|
|
|
|
|
255,275
|
|
|
|
|
783,725
|
|
|
|
|
731,254
|
|
|
Property operating expenses
|
|
|
|
(103,347
|
)
|
|
|
|
(96,927
|
)
|
|
|
|
(298,776
|
)
|
|
|
|
(276,313
|
)
|
|
Property net operating income (NOI):
|
|
|
|
160,636
|
|
|
|
|
158,348
|
|
|
|
|
484,949
|
|
|
|
|
454,941
|
|
|
Non-cash straight line rent adjustments
|
|
|
|
(4,292
|
)
|
|
|
|
(5,040
|
)
|
|
|
|
(13,598
|
)
|
|
|
|
(13,739
|
)
|
|
Lease value amortization
|
|
|
|
(1,236
|
)
|
|
|
|
(1,084
|
)
|
|
|
|
(3,795
|
)
|
|
|
|
(3,461
|
)
|
|
Lease termination fee amortization
|
|
|
|
—
|
|
|
|
|
(244
|
)
|
|
|
|
(42
|
)
|
|
|
|
(512
|
)
|
|
Non-cash amortization included in property operating expenses(2)
|
|
|
|
(199
|
)
|
|
|
|
(204
|
)
|
|
|
|
(597
|
)
|
|
|
|
(204
|
)
|
|
Cash Basis NOI
|
|
|
$
|
154,909
|
|
|
|
$
|
151,776
|
|
|
|
$
|
466,917
|
|
|
|
$
|
437,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash Basis NOI to Net
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Basis NOI
|
|
|
$
|
154,909
|
|
|
|
$
|
151,776
|
|
|
|
$
|
466,917
|
|
|
|
$
|
437,025
|
|
|
Non-cash straight line rent adjustments
|
|
|
|
4,292
|
|
|
|
|
5,040
|
|
|
|
|
13,598
|
|
|
|
|
13,739
|
|
|
Lease value amortization
|
|
|
|
1,236
|
|
|
|
|
1,084
|
|
|
|
|
3,795
|
|
|
|
|
3,461
|
|
|
Lease termination fee amortization
|
|
|
|
—
|
|
|
|
|
244
|
|
|
|
|
42
|
|
|
|
|
512
|
|
|
Non-cash amortization included in property operating expenses(2)
|
|
|
|
199
|
|
|
|
|
204
|
|
|
|
|
597
|
|
|
|
|
204
|
|
|
Property NOI
|
|
|
|
160,636
|
|
|
|
|
158,348
|
|
|
|
|
484,949
|
|
|
|
|
454,941
|
|
|
Depreciation and amortization expense
|
|
|
|
(72,344
|
)
|
|
|
|
(70,016
|
)
|
|
|
|
(214,938
|
)
|
|
|
|
(186,234
|
)
|
|
General and administrative expense
|
|
|
|
(12,107
|
)
|
|
|
|
(10,316
|
)
|
|
|
|
(34,931
|
)
|
|
|
|
(32,563
|
)
|
|
Acquisition and certain other transaction related costs
|
|
|
|
(824
|
)
|
|
|
|
(742
|
)
|
|
|
|
(1,443
|
)
|
|
|
|
(6,517
|
)
|
|
Impairment of assets
|
|
|
|
(4,578
|
)
|
|
|
|
98
|
|
|
|
|
(16,930
|
)
|
|
|
|
98
|
|
|
Operating income
|
|
|
|
70,783
|
|
|
|
|
77,372
|
|
|
|
|
216,707
|
|
|
|
|
229,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend income
|
|
|
|
659
|
|
|
|
|
—
|
|
|
|
|
1,449
|
|
|
|
|
—
|
|
|
Interest and other income
|
|
|
|
89
|
|
|
|
|
57
|
|
|
|
|
330
|
|
|
|
|
274
|
|
|
Interest expense
|
|
|
|
(43,438
|
)
|
|
|
|
(38,989
|
)
|
|
|
|
(123,837
|
)
|
|
|
|
(112,838
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
(84
|
)
|
|
|
|
(21
|
)
|
|
|
|
(90
|
)
|
|
|
|
(1,469
|
)
|
|
Income before income tax expense and equity in earnings (losses) of
an investee
|
|
|
|
28,009
|
|
|
|
|
38,419
|
|
|
|
|
94,559
|
|
|
|
|
115,692
|
|
|
Income tax expense
|
|
|
|
(119
|
)
|
|
|
|
(146
|
)
|
|
|
|
(318
|
)
|
|
|
|
(385
|
)
|
|
Equity in earnings (losses) of an investee
|
|
|
|
13
|
|
|
|
|
(24
|
)
|
|
|
|
107
|
|
|
|
|
70
|
|
|
Income from continuing operations
|
|
|
|
27,903
|
|
|
|
|
38,249
|
|
|
|
|
94,348
|
|
|
|
|
115,377
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(350
|
)
|
|
Impairment of assets from discontinued operations
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(602
|
)
|
|
Income before gain on sale of properties
|
|
|
|
27,903
|
|
|
|
|
38,249
|
|
|
|
|
94,348
|
|
|
|
|
114,425
|
|
|
Gain on sale of properties
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
4,061
|
|
|
|
|
—
|
|
|
Net income
|
|
|
$
|
27,903
|
|
|
|
$
|
38,249
|
|
|
|
$
|
98,409
|
|
|
|
$
|
114,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 because SNH records those amounts 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 as an alternative to net income
or operating income as an indicator of SNH’s operating performance or as
a measure of SNH’s liquidity. These measures should be considered in
conjunction with net income 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 June 2015. A portion of this liability
is being amortized on a straight line basis through December 31, 2035 as
a reduction to property management fees, which are included in property
operating expenses.
|
|
|
|
|
|
|
|
|
SENIOR HOUSING PROPERTIES TRUST
|
|
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 September 30, 2016
|
|
|
For the Three Months Ended September 30, 2015
|
|
Calculation of NOI and Cash Basis NOI:
|
|
|
Triple Net
Leased Senior
Living
Communities
|
|
|
Managed
Senior Living
Communities
|
|
|
MOBs
|
|
|
Non-
Segment (2)
|
|
|
Total
|
|
|
Triple Net
Leased Senior
Living
Communities
|
|
|
Managed
Senior Living
Communities
|
|
|
MOBs
|
|
|
Non-
Segment (2)
|
|
|
Total
|
|
Rental income / residents fees and services
|
|
|
$
|
66,520
|
|
|
|
$
|
98,480
|
|
|
|
$
|
94,404
|
|
|
|
$
|
4,579
|
|
|
|
$
|
263,983
|
|
|
|
$
|
64,222
|
|
|
|
$
|
96,412
|
|
|
|
$
|
90,072
|
|
|
|
$
|
4,569
|
|
|
|
$
|
255,275
|
|
|
Property operating expenses
|
|
|
(47
|
)
|
|
|
(74,763
|
)
|
|
|
(28,537
|
)
|
|
|
—
|
|
|
|
(103,347
|
)
|
|
|
—
|
|
|
|
(71,983
|
)
|
|
|
(24,944
|
)
|
|
|
—
|
|
|
|
(96,927
|
)
|
|
Property net operating income (NOI)
|
|
|
$
|
66,473
|
|
|
|
$
|
23,717
|
|
|
|
$
|
65,867
|
|
|
|
$
|
4,579
|
|
|
|
$
|
160,636
|
|
|
|
$
|
64,222
|
|
|
|
$
|
24,429
|
|
|
|
$
|
65,128
|
|
|
|
$
|
4,569
|
|
|
|
$
|
158,348
|
|
|
NOI change
|
|
|
3.5
|
%
|
|
|
(2.9
|
)%
|
|
|
1.1
|
%
|
|
|
0.2
|
%
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property NOI
|
|
|
$
|
66,473
|
|
|
|
$
|
23,717
|
|
|
|
$
|
65,867
|
|
|
|
$
|
4,579
|
|
|
|
$
|
160,636
|
|
|
|
$
|
64,222
|
|
|
|
$
|
24,429
|
|
|
|
$
|
65,128
|
|
|
|
$
|
4,569
|
|
|
|
$
|
158,348
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash straight line rent adjustments
|
|
|
865
|
|
|
|
—
|
|
|
|
3,290
|
|
|
|
137
|
|
|
|
4,292
|
|
|
|
1,373
|
|
|
|
—
|
|
|
|
3,530
|
|
|
|
138
|
|
|
|
5,041
|
|
|
Lease value amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
1,181
|
|
|
|
55
|
|
|
|
1,236
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,029
|
|
|
|
55
|
|
|
|
1,084
|
|
|
Lease termination fee amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
244
|
|
|
|
—
|
|
|
|
244
|
|
|
Non-cash amortization included in property operating expenses (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
199
|
|
|
|
—
|
|
|
|
199
|
|
|
|
—
|
|
|
|
—
|
|
|
|
203
|
|
|
|
—
|
|
|
|
203
|
|
|
Cash Basis NOI
|
|
|
$
|
65,608
|
|
|
|
$
|
23,717
|
|
|
|
$
|
61,197
|
|
|
|
$
|
4,387
|
|
|
|
$
|
154,909
|
|
|
|
$
|
62,849
|
|
|
|
$
|
24,429
|
|
|
|
$
|
60,122
|
|
|
|
$
|
4,376
|
|
|
|
$
|
151,776
|
|
|
Cash Basis NOI change
|
|
|
4.4
|
%
|
|
|
(2.9
|
)%
|
|
|
1.8
|
%
|
|
|
0.3
|
%
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of NOI to Same Property NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property NOI
|
|
|
$
|
66,473
|
|
|
|
$
|
23,717
|
|
|
|
$
|
65,867
|
|
|
|
$
|
4,579
|
|
|
|
$
|
160,636
|
|
|
|
$
|
64,222
|
|
|
|
$
|
24,429
|
|
|
|
$
|
65,128
|
|
|
|
$
|
4,569
|
|
|
|
$
|
158,348
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI not included in same property
|
|
|
2,435
|
|
|
|
(317
|
)
|
|
|
2,146
|
|
|
|
—
|
|
|
|
4,264
|
|
|
|
981
|
|
|
|
(312
|
)
|
|
|
993
|
|
|
|
—
|
|
|
|
1,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property NOI (4)
|
|
|
$
|
64,038
|
|
|
|
$
|
24,034
|
|
|
|
$
|
63,721
|
|
|
|
$
|
4,579
|
|
|
|
$
|
156,372
|
|
|
|
$
|
63,241
|
|
|
|
$
|
24,741
|
|
|
|
$
|
64,135
|
|
|
|
$
|
4,569
|
|
|
|
$
|
156,686
|
|
|
Same property NOI change
|
|
|
1.3
|
%
|
|
|
(2.9
|
)%
|
|
|
(0.6
|
)%
|
|
|
0.2
|
%
|
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Same Property NOI to Same Property Cash Basis
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property NOI (4)
|
|
|
$
|
64,038
|
|
|
|
$
|
24,034
|
|
|
|
$
|
63,721
|
|
|
|
$
|
4,579
|
|
|
|
$
|
156,372
|
|
|
|
$
|
63,241
|
|
|
|
$
|
24,741
|
|
|
|
$
|
64,135
|
|
|
|
$
|
4,569
|
|
|
|
$
|
156,686
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash straight line rent adjustments
|
|
|
948
|
|
|
|
—
|
|
|
|
3,033
|
|
|
|
137
|
|
|
|
4,118
|
|
|
|
1,339
|
|
|
|
—
|
|
|
|
3,594
|
|
|
|
138
|
|
|
|
5,071
|
|
|
Lease value amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
1,118
|
|
|
|
55
|
|
|
|
1,173
|
|
|
|
—
|
|
|
|
—
|
|
|
|
968
|
|
|
|
55
|
|
|
|
1,023
|
|
|
Lease termination fee amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
117
|
|
|
|
—
|
|
|
|
117
|
|
|
Non-cash amortization included in property operating expenses (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
199
|
|
|
|
—
|
|
|
|
199
|
|
|
|
—
|
|
|
|
—
|
|
|
|
199
|
|
|
|
—
|
|
|
|
199
|
|
|
Same property cash basis NOI (4)
|
|
|
$
|
63,090
|
|
|
|
$
|
24,034
|
|
|
|
$
|
59,371
|
|
|
|
$
|
4,387
|
|
|
|
$
|
150,882
|
|
|
|
$
|
61,902
|
|
|
|
$
|
24,741
|
|
|
|
$
|
59,257
|
|
|
|
$
|
4,376
|
|
|
|
$
|
150,276
|
|
|
Same property cash basis NOI change
|
|
|
1.9
|
%
|
|
|
(2.9
|
)%
|
|
|
0.2
|
%
|
|
|
0.3
|
%
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See above for the calculation of NOI and a reconciliation of that
amount to net income determined in accordance with GAAP, and 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.
(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 June 2015. A
portion of this liability is being amortized on a straight line basis
through December 31, 2035 as a reduction to property management fees,
which are included in property operating expenses.
(4) Consists of
properties owned continuously since July 1, 2015 and excludes properties
classified as held for sale.
|
|
|
|
|
|
|
|
|
SENIOR HOUSING PROPERTIES TRUST
|
|
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 September 30, 2016
|
|
|
For the Nine Months Ended September 30, 2015
|
|
Calculation of NOI and Cash Basis NOI:
|
|
|
Triple Net
Leased Senior
Living
Communities
|
|
|
Managed
Senior Living
Communities
|
|
|
MOBs
|
|
|
Non-
Segment (2)
|
|
|
Total
|
|
|
Triple Net
Leased Senior
Living
Communities
|
|
|
Managed
Senior Living
Communities
|
|
|
MOBs
|
|
|
Non-
Segment (2)
|
|
|
Total
|
|
Rental income / residents fees and services
|
|
|
$
|
198,269
|
|
|
|
$
|
292,803
|
|
|
|
$
|
278,964
|
|
|
|
$
|
13,689
|
|
|
|
$
|
783,725
|
|
|
|
$
|
180,820
|
|
|
|
$
|
271,061
|
|
|
|
$
|
265,664
|
|
|
|
$
|
13,709
|
|
|
|
$
|
731,254
|
|
|
Property operating expenses
|
|
|
(833
|
)
|
|
|
(218,582
|
)
|
|
|
(79,361
|
)
|
|
|
—
|
|
|
|
(298,776
|
)
|
|
|
—
|
|
|
|
(204,178
|
)
|
|
|
(72,135
|
)
|
|
|
—
|
|
|
|
(276,313
|
)
|
|
Property net operating income (NOI)
|
|
|
$
|
197,436
|
|
|
|
$
|
74,221
|
|
|
|
$
|
199,603
|
|
|
|
$
|
13,689
|
|
|
|
$
|
484,949
|
|
|
|
$
|
180,820
|
|
|
|
$
|
66,883
|
|
|
|
$
|
193,529
|
|
|
|
$
|
13,709
|
|
|
|
$
|
454,941
|
|
|
NOI change
|
|
|
9.2
|
%
|
|
|
11.0
|
%
|
|
|
3.1
|
%
|
|
|
(0.1
|
)%
|
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property NOI
|
|
|
$
|
197,436
|
|
|
|
$
|
74,221
|
|
|
|
$
|
199,603
|
|
|
|
$
|
13,689
|
|
|
|
$
|
484,949
|
|
|
|
$
|
180,820
|
|
|
|
$
|
66,883
|
|
|
|
$
|
193,529
|
|
|
|
$
|
13,709
|
|
|
|
$
|
454,941
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash straight line rent adjustments
|
|
|
3,184
|
|
|
|
—
|
|
|
|
10,002
|
|
|
|
412
|
|
|
|
13,598
|
|
|
|
2,675
|
|
|
|
—
|
|
|
|
10,651
|
|
|
|
412
|
|
|
|
13,738
|
|
|
Lease value amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
3,629
|
|
|
|
166
|
|
|
|
3,795
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,296
|
|
|
|
166
|
|
|
|
3,462
|
|
|
Lease termination fee amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
42
|
|
|
|
—
|
|
|
|
42
|
|
|
|
—
|
|
|
|
—
|
|
|
|
512
|
|
|
|
—
|
|
|
|
512
|
|
|
Non-cash amortization included in property operating expenses (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
597
|
|
|
|
—
|
|
|
|
597
|
|
|
|
—
|
|
|
|
—
|
|
|
|
203
|
|
|
|
—
|
|
|
|
203
|
|
|
Cash Basis NOI
|
|
|
$
|
194,252
|
|
|
|
$
|
74,221
|
|
|
|
$
|
185,333
|
|
|
|
$
|
13,111
|
|
|
|
$
|
466,917
|
|
|
|
$
|
178,145
|
|
|
|
$
|
66,883
|
|
|
|
$
|
178,867
|
|
|
|
$
|
13,131
|
|
|
|
$
|
437,026
|
|
|
Cash Basis NOI change
|
|
|
9.0
|
%
|
|
|
11.0
|
%
|
|
|
3.6
|
%
|
|
|
(0.2
|
)%
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of NOI to Same Property NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property NOI
|
|
|
$
|
197,436
|
|
|
|
$
|
74,221
|
|
|
|
$
|
199,603
|
|
|
|
$
|
13,689
|
|
|
|
$
|
484,949
|
|
|
|
$
|
180,820
|
|
|
|
$
|
66,883
|
|
|
|
$
|
193,529
|
|
|
|
$
|
13,709
|
|
|
|
$
|
454,941
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI not included in same property
|
|
|
30,382
|
|
|
|
11,572
|
|
|
|
31,065
|
|
|
|
—
|
|
|
|
73,019
|
|
|
|
15,752
|
|
|
|
5,874
|
|
|
|
26,181
|
|
|
|
—
|
|
|
|
47,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property NOI (4)
|
|
|
$
|
167,054
|
|
|
|
$
|
62,649
|
|
|
|
$
|
168,538
|
|
|
|
$
|
13,689
|
|
|
|
$
|
411,930
|
|
|
|
$
|
165,068
|
|
|
|
$
|
61,009
|
|
|
|
$
|
167,348
|
|
|
|
$
|
13,709
|
|
|
|
$
|
407,134
|
|
|
Same property NOI change
|
|
|
1.2
|
%
|
|
|
2.7
|
%
|
|
|
0.7
|
%
|
|
|
(0.1
|
)%
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Same Property NOI to Same Property Cash Basis
NOI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same property NOI (4)
|
|
|
$
|
167,054
|
|
|
|
$
|
62,649
|
|
|
|
$
|
168,538
|
|
|
|
$
|
13,689
|
|
|
|
$
|
411,930
|
|
|
|
$
|
165,068
|
|
|
|
$
|
61,009
|
|
|
|
$
|
167,348
|
|
|
|
$
|
13,709
|
|
|
|
$
|
407,134
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash straight line rent adjustments
|
|
|
275
|
|
|
|
—
|
|
|
|
7,855
|
|
|
|
412
|
|
|
|
8,542
|
|
|
|
748
|
|
|
|
—
|
|
|
|
8,867
|
|
|
|
412
|
|
|
|
10,027
|
|
|
Lease value amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
3,339
|
|
|
|
166
|
|
|
|
3,505
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,134
|
|
|
|
166
|
|
|
|
3,300
|
|
|
Lease termination fee amortization
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
153
|
|
|
|
—
|
|
|
|
153
|
|
|
Non-cash amortization included in property operating expenses (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
519
|
|
|
|
—
|
|
|
|
519
|
|
|
|
—
|
|
|
|
—
|
|
|
|
176
|
|
|
|
—
|
|
|
|
176
|
|
|
Same property cash basis NOI (4)
|
|
|
$
|
166,779
|
|
|
|
$
|
62,649
|
|
|
|
$
|
156,825
|
|
|
|
$
|
13,111
|
|
|
|
$
|
399,364
|
|
|
|
$
|
164,320
|
|
|
|
$
|
61,009
|
|
|
|
$
|
155,018
|
|
|
|
$
|
13,131
|
|
|
|
$
|
393,478
|
|
|
Same property cash basis NOI change
|
|
|
1.5
|
%
|
|
|
2.7
|
%
|
|
|
1.2
|
%
|
|
|
(0.2
|
)%
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See above for the calculation of NOI and a reconciliation of that
amount to net income determined in accordance with GAAP, and 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. Excludes properties classified in
discontinued operations.
(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 June 2015. A portion of this
liability is being amortized on a straight line basis through
December 31, 2035 as a reduction to property management fees, which are
included in property operating expenses.
(4) Consists of properties
owned continuously since January 1, 2015 and excludes properties
classified as held for sale.
|
|
|
|
|
|
|
|
|
|
|
SENIOR HOUSING PROPERTIES TRUST
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(amounts in thousands)
|
|
(unaudited)
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Real estate properties
|
|
|
$
|
7,667,919
|
|
|
|
$
|
7,456,940
|
|
|
Accumulated depreciation
|
|
|
|
(1,280,778
|
)
|
|
|
|
(1,147,540
|
)
|
|
|
|
|
|
6,387,141
|
|
|
|
|
6,309,400
|
|
|
Cash and cash equivalents
|
|
|
|
40,773
|
|
|
|
|
37,656
|
|
|
Restricted cash
|
|
|
|
6,325
|
|
|
|
|
6,155
|
|
|
Acquired real estate leases and other intangible assets, net
|
|
|
|
532,205
|
|
|
|
|
604,286
|
|
|
Other assets, net
|
|
|
|
263,654
|
|
|
|
|
202,593
|
|
|
Total assets
|
|
|
$
|
7,230,098
|
|
|
|
$
|
7,160,090
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Unsecured revolving credit facility
|
|
|
$
|
215,000
|
|
|
|
$
|
775,000
|
|
|
Unsecured term loans, net
|
|
|
|
546,869
|
|
|
|
|
546,305
|
|
|
Senior unsecured notes, net
|
|
|
|
1,722,032
|
|
|
|
|
1,478,536
|
|
|
Secured debt and capital leases, net
|
|
|
|
1,168,827
|
|
|
|
|
679,295
|
|
|
Accrued interest
|
|
|
|
33,130
|
|
|
|
|
16,974
|
|
|
Assumed real estate lease obligations, net
|
|
|
|
109,164
|
|
|
|
|
115,363
|
|
|
Other liabilities
|
|
|
|
196,108
|
|
|
|
|
188,857
|
|
|
Total liabilities
|
|
|
|
3,991,130
|
|
|
|
|
3,800,330
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity
|
|
|
|
3,238,968
|
|
|
|
|
3,359,760
|
|
|
Total liabilities and shareholders’ equity
|
|
|
$
|
7,230,098
|
|
|
|
$
|
7,160,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest on the Nasdaq.
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/20161104005154/en/
Source: Senior Housing Properties Trust