Exhibit 99.2
SENIOR HOUSING PROPERTIES TRUST
First Quarter 2008
Supplemental Operating and Financial Data
Unless otherwise noted, all amounts in this report are unaudited.
TABLE OF CONTENTS
| | | Page |
| | | |
CORPORATE INFORMATION | | | |
| | | |
| Company Profile | | 4 |
| Investor Information | | 5 |
| Research Coverage | | 6 |
| | | |
FINANCIAL INFORMATION | | |
| | | |
| Key Financial Data | | 8 |
| Consolidated Balance Sheet | | 9 |
| Consolidated Statement of Income | | 10 |
| Consolidated Statement of Cash Flows | | 11 |
| Calculation of EBITDA | | 12 |
| Calculation of Funds from Operations (FFO) | | 13 |
| Debt Summary | | 14 |
| Debt Maturity Schedule | | 15 |
| Leverage Ratios, Coverage Ratios and Public Debt Covenants | | 16 |
| 2008 Investments/Dispositions Information | | 17 |
| 2008 Financing Activities | | 18 |
| | | |
PORTFOLIO INFORMATION | | |
| | | |
| Portfolio Summary by Facility Type and Tenant | | 20 |
| Occupancy by Facility Type and Tenant | | 21 |
| % Private Pay by Facility Type and Tenant | | 22 |
| Rent Coverage by Tenant | | 23 |
| Portfolio Lease Expiration Schedule | | 24 |
| | | | |
2
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
The Company: | | Strategy: |
| | |
Senior Housing Properties Trust, or SNH, is a real estate investment trust, or REIT, which owns independent and assisted living properties, continuing care retirement communities, nursing homes, hospitals, and wellness centers located throughout the United States. We are included in a number of stock indices, including the Russell 2000®, the MSCI US REIT Index, FTSE EPRA/NAREIT United States Index and the S&P REIT Composite Index. Management: Senior Housing Properties Trust is managed by Reit Management & Research LLC, or RMR. RMR is a large real estate management company which was founded in 1986 to manage public investments in real estate. As of March 31, 2008, RMR manages one of the largest portfolios of publicly owned real estate in the United States, including approximately 1,300 properties located in 45 states, the District of Columbia, Puerto Rico and Ontario, Canada. RMR has approximately 500 employees in its headquarters and regional offices located throughout the Country. | | Our present business plan is to maintain an investment portfolio of independent and assisted living properties, continuing care retirement communities and nursing homes and to acquire additional healthcare related properties primarily for income and secondarily for appreciation potential. Our current growth strategy is generally focused on making acquisitions of geographically diverse, primarily independent and assisted senior living properties where the majority of the residents pay for occupancy and services with their private resources rather than through government programs. We base our acquisition decisions on the historical and projected operating results of the target properties and the financial strength of the proposed tenants and their guarantors, among other considerations. We also sometimes consider investing in properties other than senior living properties, such as the wellness centers we acquired in October and November 2007. Our present financial strategy is to maintain a conservative capital structure which limits the amount of debt that we issue. We do not have any investments in joint ventures or partnerships. Also, the majority of our debt is fixed rate, and we have no significant debt maturities until 2010. |
In addition to managing SNH, RMR and its affiliates also manage Hospitality Properties Trust (HPT), a publicly traded REIT that owns hotels and travel centers, and HRPT Properties Trust (HRP), a publicly traded REIT that primarily owns office buildings and industrial properties. An affiliate of RMR, RMR Advisors, is the investment manager of eight publicly offered mutual funds as of March 31, 2008, which principally invests in securities of real estate companies (excluding securities of companies managed by RMR and its affiliates). The public companies managed by RMR and its affiliates had a combined total market capitalization of approximately $15 billion as of March 31, 2008. We believe that being managed by RMR is a competitive advantage for SNH because RMR provides SNH with a depth of management and experience which may be unequaled in the real estate industry. We also believe RMR is able to provide management services to SNH at costs that are lower than SNH would have to pay for similar quality services. | | Stock Exchange Listing:
New York Stock Exchange
Trading Symbol:
Common Shares — SNH
Senior Unsecured Debt Ratings:
Moody’s — Ba1 Standard & Poor’s — BB+ | Corporate Headquarters:
400 Centre Street
Newton, MA 02458 (t) (617) 796-8350 (f) (617) 796-8349 |
Portfolio Data (as of 3/31/08):
Total properties | | 221 | |
Total living units / beds | | 25,673 | |
Percent of rent at senior living properties from private pay properties | | 90.4% | (1) |
Portfolio Concentration by Facility Type (as of 3/31/08):
| | Number of | | Number of | | Carrying Value of | | | | Annualized | | | |
| | Properties | | Units/Beds | | Investment (2) | | Percent | | Current Rent | | Percent | |
Independent Living (IL) (3) | | 41 | | 11,213 | | $ | 1,035,000 | | 46.4% | | $ | 102,765 | | 47.3% | |
Assisted Living (AL) | | 114 | | 8,227 | | 839,771 | | 37.7% | | 78,179 | | 36.0% | |
Nursing Homes | | 58 | | 5,869 | | 225,080 | | 10.1% | | 19,268 | | 8.9% | |
Rehabilitation Hospitals | | 2 | | 364 | | 49,468 | | 2.2% | | 10,723 | | 4.9% | |
Wellness Centers (4) | | 6 | | — | | 79,972 | | 3.6% | | 6,519 | | 2.9% | |
Total | | 221 | | 25,673 | | $ | 2,229,291 | | 100.0% | | $ | 217,454 | | 100.0% | |
Operating Statistics by Tenant:
| | | | | | | | Q4 2007 | |
| | Number of | | Number of | | Annualized | | Rent | | | | Percent | |
Tenant | | Properties | | Units/Beds | | Current Rent | | Coverage (5) | | Occupancy (5) | | Private Pay (5) | |
Five Star (Lease No. 1) | | 133 | | 11,036 | | $ | 75,192 | | 1.41x | | 89% | | 53% | |
Five Star (Lease No. 2) | | 30 | | 7,275 | | 69,003 | | 1.66x | | 91% | | 79% | |
Five Star Rehabilitation Hospitals (6) | | 2 | | 364 | | 10,723 | | 0.92x | | 62% | | 33% | |
Sunrise / Marriott (7) | | 14 | | 4,091 | | 31,746 | | NA | | NA | | NA | |
NewSeasons / IBC (8) | | 10 | | 873 | | 9,298 | | 0.94x | | 81% | | 100% | |
Alterra / Brookdale (9) | | 18 | | 894 | | 7,873 | | 1.85x | | 91% | | 98% | |
6 Private Companies (combined) | | 8 | | 1,140 | | 7,100 | | 1.94x | | 88% | | 24% | |
Starmark (4) | | 6 | | — | | 6,519 | | 1.95x | | NA | | 100% | |
Total | | 221 | | 25,673 | | $ | 217,454 | | | | | | | |
(1) Represents the percentage of SNH’s rental income that is derived from senior living properties where the operating revenues are greater than 80% from sources other than Medicare and Medicaid.
(2) Amounts are before depreciation, but after impairment write downs, if any.
(3) Properties where the majority of living units are independent living apartments are classified as independent living communities.
(4) In October and November 2007, we acquired six wellness centers that are leased to Starmark Holdings, LLC, or Starmark.
(5) All tenant operating data presented are based upon the operating results provided by our tenants for the indicated periods. Rent coverage is calculated as operating cash flow from our tenants’ facility operations, before subordinated charges, divided by the minimum rent payable to us. We have not independently verified our tenants’ operating data.
(6) Occupancy percentage is based on 342 available beds capacity.
(7) Marriott International, Inc., or Marriott, guarantees this lease. Sunrise Senior Living, Inc., or Sunrise, has not filed its Annual Report on Form 10-K for 2007 or Quarterly Reports on Form 10-Q for the three quarters of 2007 with the Securities and Exchange Commission, or SEC, due to accounting issues. Because we do not know what impact the resolution of these accounting issues may have on the reported performance of our properties, we do not report operating data for this tenant.
(8) Independence Blue Cross, or IBC, a Pennsylvania health insurer, guarantees this lease.
(9) Brookdale Senior Living, Inc., or Brookdale, guarantees this lease.
4
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
Board of Trustees |
| | |
Barry M. Portnoy | | Adam D. Portnoy |
Managing Trustee | | Managing Trustee |
| | |
Frank J. Bailey | | Frederick N. Zeytoonjian |
Independent Trustee | | Independent Trustee |
| | |
John L. Harrington | | |
Independent Trustee | | |
| | |
Senior Management |
| | |
David J. Hegarty | | Richard A. Doyle |
President, Chief Operating Officer and Secretary | | Treasurer and Chief Financial Officer |
| | |
Contact Information |
| | |
Investor Relations | | Inquiries |
| | |
Senior Housing Properties Trust | | Financial inquiries should be directed to Richard A. Doyle, |
400 Centre Street | | Treasurer and Chief Financial Officer, at (617) 219-1405 |
Newton, MA 02458 | | or rdoyle@snhreit.com. |
(t) (617) 796-8350 | | |
(f) (617) 796-8349 | | Investor and media inquiries should be directed to |
(email) info@snhreit.com | | Timothy A. Bonang, Manager of Investor Relations, or |
(website) www.snhreit.com | | Katherine L. Johnston, Investor Relations Analyst, at |
| | (617) 796-8234 or tbonang@snhreit.com, or kjohnston@snhreit.com. |
5
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
Equity Research Coverage |
| | |
Cantor Fitzgerald | | RBC |
Philip Martin | | Kevin Ellich |
(312) 469-7485 | | (612) 313-1247 |
| | |
Keefe, Bruyette & Woods | | Stifel, Nicolaus |
Steve Swett | | Jerry Doctrow |
(212) 887-3680 | | (443) 224-1309 |
| | |
Merrill Lynch | | UBS |
Chris Pike | | Omotayo Okusanya |
(212) 449-1153 | | (212) 713-1864 |
| | |
Raymond James | | |
Paul Puryear | | |
(727) 567-2253 | | |
| | |
Debt Research Coverage |
| | |
UBS | | |
Steven Valiquette | | |
(203) 719-2347 | | |
| | |
Rating Agencies |
| | |
Moody’s Investor Service | | Standard and Poor’s |
Lori Marks | | George Skoufis |
(212) 553-1098 | | (212) 438-2608 |
SNH is followed by the analysts and its publicly held debt is rated by the rating agencies listed above. Please note that any opinions, estimates or forecasts regarding SNH’s performance made by these analysts or agencies do not represent opinions, forecasts or predictions of SNH or its management. SNH does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.
6
Senior Housing Properties Trust
Supplemental Operating and Financial Data
(share amounts and dollars in thousands, except per share data)
| | As Of and For The Three Months Ended | |
| | 3/31/2008 | | 12/31/2007 | | 9/30/2007 | | 6/30/2007 | | 3/31/2007 | |
| | | | | | | | | | | |
Shares Outstanding: | | | | | | | | | | | |
Common shares outstanding (at end of period) | | 94,901 | | 88,692 | | 83,689 | | 83,654 | | 83,646 | |
Weighted average common shares outstanding - basic and diluted (1) | | 91,080 | | 84,505 | | 83,659 | | 83,649 | | 80,815 | |
| | | | | | | | | | | |
Common Share Data: | | | | | | | | | | | |
Price at end of period | | $ | 23.70 | | $ | 22.68 | | $ | 22.06 | | $ | 20.35 | | $ | 23.90 | |
High during period | | $ | 25.21 | | $ | 24.66 | | $ | 22.85 | | $ | 24.83 | | $ | 26.83 | |
Low during period | | $ | 18.01 | | $ | 19.20 | | $ | 16.22 | | $ | 20.10 | | $ | 21.75 | |
Annualized dividends paid per share | | $ | 1.40 | | $ | 1.40 | | $ | 1.36 | | $ | 1.36 | | $ | 1.36 | |
Annualized dividend yield (at end of period) | | 5.9% | | 6.2% | | 6.2% | | 6.7% | | 5.7% | |
| | | | | | | | | | | |
Market Capitalization: | | | | | | | | | | | |
Total debt (book value) | | $ | 541,374 | | $ | 426,852 | | $ | 411,980 | | $ | 412,360 | | $ | 412,742 | |
Plus: market value of common shares (at end of period) | | 2,249,154 | | 2,011,535 | | 1,846,179 | | 1,702,359 | | 1,999,139 | |
Total market capitalization | | $ | 2,790,528 | | $ | 2,438,387 | | $ | 2,258,159 | | $ | 2,114,719 | | $ | 2,411,881 | |
Total debt / total market capitalization | | 19.4% | | 17.5% | | 18.2% | | 19.5% | | 17.1% | |
| | | | | | | | | | | |
Book Capitalization: | | | | | | | | | | | |
Total debt | | $ | 541,374 | | $ | 426,852 | | $ | 411,980 | | $ | 412,360 | | $ | 412,742 | |
Plus: total shareholders’ equity | | 1,370,034 | | 1,249,410 | | 1,145,537 | | 1,153,377 | | 1,163,023 | |
Total book capitalization | | $ | 1,911,408 | | $ | 1,676,262 | | $ | 1,557,517 | | $ | 1,565,737 | | $ | 1,575,765 | |
Total debt / total book capitalization | | 28.3% | | 25.5% | | 26.5% | | 26.3% | | 26.2% | |
| | | | | | | | | | | |
Selected Balance Sheet Data: | | | | | | | | | | | |
Total assets | | $ | 1,936,972 | | $ | 1,701,894 | | $ | 1,576,938 | | $ | 1,584,631 | | $ | 1,590,932 | |
Total liabilities | | $ | 566,938 | | $ | 452,484 | | $ | 431,401 | | $ | 431,254 | | $ | 427,909 | |
Gross book value of real estate assets (2) | | $ | 2,229,291 | | $ | 1,940,347 | | $ | 1,847,192 | | $ | 1,831,525 | | $ | 1,824,002 | |
Total debt / gross book value of real estate assets (2) | | 24.3% | | 22.0% | | 22.3% | | 22.5% | | 22.6% | |
| | | | | | | | | | | |
Selected Income Statement Data: | | | | | | | | | | | |
Total revenues (3) | | $ | 49,553 | | $ | 53,084 | | $ | 45,224 | | $ | 44,962 | | $ | 44,752 | |
EBITDA (4) | | $ | 47,807 | | $ | 44,701 | | $ | 43,357 | | $ | 43,174 | | $ | 42,636 | |
Income from continuing operations | | $ | 23,316 | | $ | 26,519 | | $ | 20,613 | | $ | 20,649 | | $ | 17,522 | |
Net income | | $ | 23,316 | | $ | 26,519 | | $ | 20,613 | | $ | 20,649 | | $ | 17,522 | |
Funds from operations (FFO) (3) | | $ | 38,289 | | $ | 35,222 | | $ | 34,134 | | $ | 34,014 | | $ | 30,993 | |
Common distributions paid | | $ | 33,215 | | $ | 31,042 | | $ | 29,291 | | $ | 28,442 | | $ | 28,440 | |
| | | | | | | | | | | |
Per Share Data: | | | | | | | | | | | |
Income from continuing operations | | $ | 0.26 | | $ | 0.31 | | $ | 0.25 | | $ | 0.25 | | $ | 0.22 | |
Net income | | $ | 0.26 | | $ | 0.31 | | $ | 0.25 | | $ | 0.25 | | $ | 0.22 | |
FFO (5) | | $ | 0.42 | | $ | 0.42 | | $ | 0.41 | | $ | 0.41 | | $ | 0.38 | |
Common distributions paid | | $ | 0.35 | | $ | 0.35 | | $ | 0.34 | | $ | 0.34 | | $ | 0.34 | |
FFO payout ratio (5) | | 83.3% | | 83.3% | | 82.9% | | 82.9% | | 89.5% | |
| | | | | | | | | | | |
Coverage Ratios: | | | | | | | | | | | |
EBITDA (3) / interest expense | | 5.0x | | 4.7x | | 4.7x | | 4.7x | | 4.3x | |
(1) SNH has no outstanding common share equivalents, such as units, convertible debt or stock options.
(2) Gross book value of real estate assets is real estate properties, at cost, after impairment write downs, if any.
(3) During the fourth quarter of 2007, we recognized $6.6 million of percentage rent as income for the year ended December 31, 2007.
(4) See page 12 for calculation of EBITDA.
(5) See page 13 for calculation of FFO.
8
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
CONSOLIDATED BALANCE SHEET |
(in thousands, except share data)
| | As of
March 31,
2008 | | As of
December 31,
2007 | |
| | | | (audited) | |
ASSETS | | | | | |
Real estate properties, at cost: | | | | | |
Land | | $ | 238,296 | | $ | 217,236 | |
Buildings and improvements | | 1,990,995 | | 1,723,111 | |
| | 2,229,291 | | 1,940,347 | |
Less accumulated depreciation | | 336,914 | | 323,891 | |
| | 1,892,377 | | 1,616,456 | |
| | | | | |
Cash and cash equivalents | | 5,192 | | 43,521 | |
Restricted cash | | 3,957 | | 3,642 | |
Deferred financing fees, net | | 5,486 | | 5,974 | |
Other assets | | 29,960 | | 32,301 | |
Total assets | | $ | 1,936,972 | | $ | 1,701,894 | |
| | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | |
Unsecured revolving credit facility | | $ | 115,000 | | $ | — | |
Senior unsecured notes due 2012 and 2015, net of discount | | 321,909 | | 321,873 | |
Secured debt and capital leases | | 104,465 | | 104,979 | |
Accrued interest | | 8,129 | | 10,849 | |
Other liabilities | | 17,435 | | 14,783 | |
Total liabilities | | 566,938 | | 452,484 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Shareholders’ equity: | | | | | |
Common shares of beneficial interest, $0.01 par value: | | | | | |
99,700,000 shares authorized; 94,901,249 and 88,691,892 shares issued and outstanding at March 31, 2008 and December 31, 2007, respectively | | 949 | | 887 | |
Additional paid-in capital | | 1,606,031 | | 1,476,675 | |
Cumulative net income | | 447,123 | | 423,807 | |
Cumulative distributions | | (684,267 | ) | (653,225 | ) |
Unrealized gain on investments | | 198 | | 1,266 | |
Total shareholders’ equity | | 1,370,034 | | 1,249,410 | |
Total liabilities and shareholders’ equity | | $ | 1,936,972 | | $ | 1,701,894 | |
9
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
CONSOLIDATED STATEMENT OF INCOME |
(in thousands, except per share data)
| | For the Three Months Ended | |
| | 3/31/2008 | | 3/31/2007 | |
Revenues: | | | | | |
Rental income | | $ | 48,983 | | $ | 44,301 | |
Interest and other income | | 570 | | 451 | |
Total revenues | | 49,553 | | 44,752 | |
| | | | | |
Expenses: | | | | | |
Interest | | 9,518 | | 9,893 | |
Depreciation | | 13,023 | | 11,595 | |
General and administrative | | 3,696 | | 3,716 | |
Loss on early extinguishment of debt (1) | | — | | 2,026 | |
Total expenses | | 26,237 | | 27,230 | |
Net income | | $ | 23,316 | | $ | 17,522 | |
| | | | | |
Weighted average common shares outstanding | | 91,080 | | 80,815 | |
| | | | | |
Basic and diluted earnings per share: | | | | | |
Net income | | $ | 0.26 | | $ | 0.22 | |
| | | | | |
Additional Data: | | | | | |
Straight-line rent included in rental income (2) | | $ | 23 | | $ | 142 | |
Deferred percentage rent (3) | | $ | 1,950 | | $ | 1,600 | |
(1) In January 2007, we purchased and retired $20.0 million of our 8 5/8% senior notes due 2012 and paid a premium of $1.8 million and wrote off $276,000 of deferred financing fees and unamortized discount related to these senior notes.
(2) We report rental income on a straight line basis over the terms of the respective leases. Rental income includes non-cash straight line rent adjustments.
(3) 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 revenue is deferred until the fourth quarter, deferred percentage rent for the first three quarters includes estimated amounts of deferred percentage rents with respect to those periods. The fourth quarter calculation excludes the amounts recognized during the first three quarters.
10
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
CONSOLIDATED STATEMENT OF CASH FLOWS |
(in thousands)
| | For the Three Months Ended | |
| | 3/31/2008 | | 3/31/2007 | |
Cash flows from operating activities: | | | | | |
Net income | | $ | 23,316 | | $ | 17,522 | |
Adjustments to reconcile net income to cash provided by operating activities: | | | | | |
Depreciation | | 13,023 | | 11,595 | |
Amortization of deferred financing fees and debt discounts | | 524 | | 542 | |
Amortization of acquired real estate leases | | (29 | ) | — | |
Loss on early extinguishment of debt | | — | | 2,026 | |
Change in assets and liabilities: | | | | | |
Restricted cash | | (315 | ) | (185 | ) |
Other assets | | 1,193 | | 3,171 | |
Accrued interest | | (2,720 | ) | (3,763 | ) |
Other liabilities | | 2,761 | | (517 | ) |
Cash provided by operating activities | | 37,753 | | 30,391 | |
| | | | | |
Cash flows used for investing activities: | | | | | |
Acquisitions | | (288,944 | ) | (9,644 | ) |
Cash used for investing activities, net | | (288,944 | ) | (9,644 | ) |
| | | | | |
Cash flows from financing activities: | | | | | |
Proceeds from issuance of common shares, net | | 129,418 | | 151,720 | |
Proceeds from borrowings on revolving credit facility | | 176,000 | | 22,000 | |
Repayments of borrowings on revolving credit facility | | (61,000 | ) | (134,000 | ) |
Redemption of senior notes | | — | | (21,750 | ) |
Repayment of other debt | | (514 | ) | (434 | ) |
Distributions to shareholders | | (31,042 | ) | (26,389 | ) |
Cash provided by (used for) financing activities | | 212,862 | | (8,853 | ) |
| | | | | |
(Decrease) increase in cash and cash equivalents | | (38,329 | ) | 11,894 | |
Cash and cash equivalents at beginning of period | | 43,521 | | 5,464 | |
Cash and cash equivalents at end of period | | $ | 5,192 | | $ | 17,358 | |
| | | | | |
Supplemental cash flow information: | | | | | |
Interest paid | | $ | 11,714 | | $ | 13,114 | |
| | | | | |
Non-cash financing activities: | | | | | |
Issuance of common shares pursuant to our incentive share award plan | | $ | — | | $ | 784 | |
11
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
(dollars in thousands)
| | For the Three Months Ended | |
| | 3/31/2008 | | 3/31/2007 | |
| | | | | |
Net income | | $ | 23,316 | | $ | 17,522 | |
Plus: | interest expense | | 9,518 | | 9,893 | |
| depreciation expense | | 13,023 | | 11,595 | |
| loss on early extinguishment of debt (1) | | — | | 2,026 | |
| deferred percentage rent adjustment (2) | | 1,950 | | 1,600 | |
EBITDA | | $ | 47,807 | | $ | 42,636 | |
(1) In January 2007, we purchased and retired $20.0 million of our 8 5/8% senior notes due 2012 and paid a premium of $1.8 million and wrote off $276,000 of deferred financing fees and unamortized discount related to these senior notes.
(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 is deferred until the fourth quarter, for purposes of this calculation, total revenues for the first three quarters includes estimated amounts of deferred percentage rents with respect to those periods. The fourth quarter calculation excludes the amounts recognized during the first three quarters.
We compute EBITDA as shown in the calculation above. This calculation begins with income from continuing operations, or if such amount is the same as net income, with net income, which we believe is the closest U.S. generally accepted accounting principles, or GAAP, measure of our performance. We consider EBITDA to be an appropriate measure of our performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe EBITDA provides useful information to our investors because by excluding the effects of certain historical costs, such as interest and depreciation and amortization expense, EBITDA can facilitate a comparison of our current operating performance with our past operating performance and of operating performance among REITs. EBITDA 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.
12
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
CALCULATION OF FUNDS FROM OPERATIONS (FFO) |
(amounts in thousands, except per share data)
| | For the Three Months Ended | |
| | 3/31/2008 | | 3/31/2007 | |
| | | | | |
Net income | | $ | 23,316 | | $ | 17,522 | |
Plus: | depreciation expense | | 13,023 | | 11,595 | |
| loss on early extinguishment of debt | | — | | 2,026 | |
| deferred percentage rent adjustment (1) | | 1,950 | | 1,600 | |
Less: | loss on early extinguishment of debt settled in cash (2) | | — | | (1,750 | ) |
FFO | | $ | 38,289 | | $ | 30,993 | |
| | | | | |
Weighted average shares outstanding | | 91,080 | | 80,815 | |
| | | | | |
Net income | | $ | 0.26 | | $ | 0.22 | |
FFO per share | | $ | 0.42 | | $ | 0.38 | |
| | | | | |
Supplemental data: | | | | | |
Straight-line rent included in rental income (3) | | $ | 23 | | $ | 142 | |
Amortization of deferred financing fees and debt discounts | | $ | 524 | | $ | 542 | |
(1) | | 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 revenue is deferred until the fourth quarter, our FFO calculation for the first three quarters include 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. |
| | |
(2) | | FFO for the quarter ended March 31, 2007 includes a $1.8 million cash loss relating to our early retirement of $20.0 million of our 8 5/8% senior notes due 2012. |
| | |
(3) | | We report rental income on a straight line basis over the terms of the respective leases. Rental income includes non-cash straight line rent adjustments. |
| | We compute FFO as shown in the calculation above. This calculation begins with income from continuing operations or, if that amount is the same as net income, with net income, which we believe is the closest GAAP measure of our performance. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO because we include deferred percentage rent in FFO as discussed in Note 3 above, and we exclude loss on early extinguishment of debt not settled in cash from 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 costs, such as depreciation expense and gain or loss on sale of properties, FFO can facilitate a comparison of our current operating performance with our past operating performance and of operating performance 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. FFO is one important factor considered by our board of trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future performance. |
13
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
(dollars in thousands)
| | Coupon | | Interest | | Principal | | Maturity | | Due at | | Years to | |
| | Rate | | Rate | | Balance | | Date | | Maturity | | Maturity | |
| | | | | | | | | | | | | |
Secured Fixed Rate Debt: | | | | | | | | | | | | | |
Tax exempt bonds - secured by 1 property | | 5.875% | | 5.875% | | $ | 14,700 | | 12/1/2027 | | $ | 14,700 | | 19.7 | |
Mortgage - secured by 16 properties (1) | | 6.970% | | 6.330% | | 34,654 | | 6/2/2012 | | 30,069 | | 4.2 | |
Mortgage - secured by 4 properties (1) | | 6.110% | | 6.420% | | 11,915 | | 11/30/2013 | | 10,218 | | 5.7 | |
Mortgage - secured by 1 properties (1) (2) | | 7.150% | | 6.440% | | 12,523 | | 6/30/2008 | | 12,530 | | 0.2 | |
Mortgage - secured by 2 properties (1) | | 6.910% | | 6.310% | | 15,221 | | 12/1/2013 | | 13,482 | | 5.7 | |
Capital leases - 2 properties | | 7.700% | | 7.700% | | 15,452 | | 4/30/2026 | | — | | 18.1 | |
Weighted average rate / total secured fixed rate debt | | 6.839% | | 6.489% | | $ | 104,465 | | | | $ | 80,999 | | 8.3 | |
| | | | | | | | | | | | | |
Weighted average rate / total secured debt | | 6.839% | | 6.489% | | $ | 104,465 | | | | $ | 80,999 | | 8.3 | |
| | | | | | | | | | | | | |
Unsecured Debt: | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Unsecured Floating Rate Debt: | | | | | | | | | | | | | |
Revolving credit facility (LIBOR + 80 b.p.) | | 3.400% | | 3.400% | | $ | 115,000 | | 12/31/2010 | | $ | 115,000 | | 2.8 | |
| | | | | | | | | | | | | |
Unsecured Fixed Rate Debt: | | | | | | | | | | | | | |
Senior notes due 2012 | | 8.625% | | 8.625% | | $ | 225,000 | | 1/15/2012 | | $ | 225,000 | | 3.8 | |
Senior notes due 2015 | | 7.875% | | 7.875% | | 97,500 | | 4/15/2015 | | 97,500 | | 7.0 | |
Weighted average rate / total unsecured fixed rate debt | | 8.398% | | 8.398% | | $ | 322,500 | | | | $ | 322,500 | | 4.8 | |
| | | | | | | | | | | | | |
Weighted average rate / total unsecured debt | | 7.084% | | 7.084% | | $ | 437,500 | | | | $ | 437,500 | | 4.2 | |
| | | | | | | | | | | | | |
Weighted average rate / total debt | | 7.037% | | 7.985% | | $ | 541,965 | | | | $ | 518,499 | | 5.0 | |
| | | | | | | | | | | | | |
Summary Debt: | | | | | | | | | | | | | |
Weighted average rate / total secured fixed rate debt | | 6.839% | | 6.489% | | $ | 104,465 | | | | $ | 80,999 | | 8.3 | |
Weighted average rate / total unsecured floating rate debt | | 3.400% | | 3.400% | | 115,000 | | | | 115,000 | | 2.8 | |
Weighted average rate / total unsecured fixed rate debt | | 8.398% | | 8.398% | | 322,500 | | | | 322,500 | | 4.8 | |
Weighted average rate / total debt | | 7.037% | | 6.970% | | $ | 541,965 | | | | $ | 518,499 | | 5.0 | |
(1) Includes the effect of mark to market accounting for certain assumed mortgages.
(2) Repaid on April 1, 2008.
14
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
(dollars in thousands)
| | Scheduled Principal Payments During Period | |
| | Secured | | | | | | | |
| | Fixed Rate | | Unsecured | | Unsecured | | | |
| | Debt and | | Floating | | Fixed | | | |
Year | | Capital Leases | | Rate Debt | | Rate Debt | | Total | |
2008 (1) | | $ | 13,856 | | $ | — | | $ | — | | $ | 13,856 | |
2009 | | 1,893 | | — | | — | | 1,893 | |
2010 | | 2,019 | | 115,000 | | — | | 117,019 | |
2011 | | 2,155 | | — | | — | | 2,155 | |
2012 | | 31,765 | | — | | 225,000 | | 256,765 | |
2013 | | 24,764 | | — | | — | | 24,764 | |
2014 | | 544 | | — | | — | | 544 | |
2015 | | 614 | | — | | 97,500 | | 98,114 | |
2016 and thereafter | | 26,855 | | — | | — | | 26,855 | |
| | $ | 104,465 | | $ | 115,000 | | $ | 322,500 | | $ | 541,965 | |
(1) | On April 1, 2008, we paid in full a mortgage loan on one of our properties for $12.6 million. This loan had a maturity date of June 30, 2008. |
15
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS |
| | As Of And For The Three Months Ended | |
| | 3/31/2008 | | 12/31/2007 | | 9/30/2007 | | 6/30/2007 | | 3/31/2007 | |
Leverage Ratios: | | | | | | | | | | | |
| | | | | | | | | | | |
Total debt / total assets | | 27.9% | | 25.1% | | 26.1% | | 26.0% | | 25.9% | |
Total debt / gross book value of real estate assets (1) | | 24.3% | | 22.0% | | 22.3% | | 22.5% | | 22.6% | |
Total debt / total market capitalization | | 19.4% | | 17.5% | | 18.2% | | 19.5% | | 17.1% | |
Total debt / total book capitalization | | 28.3% | | 25.5% | | 26.5% | | 26.3% | | 26.2% | |
Secured debt / total assets | | 5.4% | | 6.2% | | 5.7% | | 5.7% | | 5.7% | |
Variable rate debt / total debt | | 21.2% | | 0.0% | | 0.0% | | 0.0% | | 0.0% | |
| | | | | | | | | | | |
Coverage Ratios: | | | | | | | | | | | |
| | | | | | | | | | | |
EBITDA (2)(3) / interest expense | | 5.0x | | 4.7x | | 4.7x | | 4.7x | | 4.3x | |
| | | | | | | | | | | |
Public Debt Covenants (3): | | | | | | | | | | | |
| | | | | | | | | | | |
Total debt / adjusted total assets - allowable maximum 60.0% | | 23.7% | | 21.0% | | 21.7% | | 21.8% | | 22.5% | |
Secured debt / adjusted total assets - allowable maximum 40.0% | | 4.6% | | 5.2% | | 4.8% | | 4.8% | | 4.8% | |
Consolidated income available for debt service / debt service - required minimum 2.00x | | 5.31x | | 4.99x | | 4.98x | | 5.01x | | 6.06x | |
Total unencumbered assets to unsecured debt - required minimum 1.50x | | 4.76x | | 5.69x | | 5.32x | | 5.31x | | 5.74x | |
| (1) | Gross book value of real estate assets is real estate properties, at cost, less impairment write downs, if any. |
| | |
| (2) | See page 12 for the calculation of EBITDA. |
| | |
| (3) | Adjusted total assets and unencumbered assets include original cost of real estate assets less impairment write downs and exclude depreciation and amortization, accounts receivable and intangible assets. Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, taxes, gains and losses on sales of property and amortization of deferred charges. |
16
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
2008 INVESTMENTS/DISPOSITIONS INFORMATION |
(dollars in thousands)
Acquisitions: (1)
| | | | | | | | | | | | Purchase | | | |
Date | | | | | | Number of | | | | Purchase | | Price | | Lease | |
Acquired | | Tenant | | Type of Property | | Properties | | Units | | Price (2) | | Per Unit | | Rate | |
| | | | | | | | | | | | | | | |
1/1/2008 | | Five Star Quality Care, Inc | | Assisted / Independent Living / Skilled Nursing | | 5 | | 568 | | $ | 66,650 | | $ | 117 | | 8.00% | |
2/7/2008 | | Five Star Quality Care, Inc | | Assisted Living | | 2 | | 98 | | $ | 10,250 | | $ | 105 | | 8.00% | |
2/17/2008 | | Five Star Quality Care, Inc | | Assisted / Independent Living / Skilled Nursing | | 1 | | 138 | | $ | 9,250 | | $ | 67 | | 8.00% | |
3/1/2008 | | Five Star Quality Care, Inc | | Assisted Living | | 1 | | 228 | | $ | 48,500 | | $ | 213 | | 8.00% | |
3/31/2008 | | Five Star Quality Care, Inc | | Assisted Living | | 10 | | 660 | | $ | 135,000 | | $ | 205 | | 8.00% | |
| | | | | | | | | | | | | | | |
| | Total | | | | 19 | | 1,692 | | $ | 269,650 | | $ | 159 | | | |
Dispositions:
Date | | | | | | Number of | | | | | | Book Gain (Loss) | | | |
Sold | | Location | | Type of Property | | Properties | | Sale Price | | NBV | | on Sale | | Units | |
| | | | | | | | | | | | | | | |
| | There were no dispositions during the three months ended March 31, 2008. | |
| (1) | During the three months ended March 31, 2008, as permitted by our leases with Five Star, we purchased from Five Star, at cost, $16.6 million of improvements made to our properties leased by Five Star, and, as a result, Five Star’s annual rent payable to us increased approximately $1.6 million. |
| | |
| (2) | Purchase price excludes closing costs. |
17
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
2008 FINANCING ACTIVITIES |
(share amounts and dollars in thousands)
| | For the Three Months Ended | |
| | 3/31/2008 | | 12/31/2007 | | 9/30/2007 | | 6/30/2007 | |
| | | | | | | | | |
Debt Transactions: | | | | | | | | | |
New debt raised | | $ | — | | $ | — | | $ | — | | $ | — | |
New debt assumed as part of acquisitions (1) | | — | | 14,875 | | — | | — | |
Total new debt | | — | | 14,875 | | — | | — | |
| | | | | | | | | |
Debt retired | | — | | — | | — | | — | |
Net debt | | $ | — | | $ | 14,875 | | $ | — | | $ | — | |
| | | | | | | | | |
Equity Transactions: | | | | | | | | | |
New common shares issued | | 6,209 | | 5,000 | | — | | — | |
New common equity raised, net | | $ | 129,418 | | $ | 108,777 | | $ | — | | $ | — | |
| | | | | | | | | |
Revolving Credit Facility Transactions: | | | | | | | | | |
Balance oustanding at beginning of period | | $ | — | | $ | — | | $ | — | | $ | — | |
Drawings during period | | 176,000 | | 65,000 | | — | | — | |
Repayments during period | | (61,000 | ) | (65,000 | ) | — | | — | |
Balance oustanding at end of period | | $ | 115,000 | | $ | — | | $ | — | | $ | — | |
| | | | | | | | | |
Balance available for drawing | | $ | 435,000 | | $ | 550,000 | | $ | 550,000 | | $ | 550,000 | |
(1) | Amount represents the original mortgage we assumed related to the Starmark acquistion on November 30, 2007. This amount does not include intangible assets and liabilities. |
18
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
PORTFOLIO SUMMARY BY FACILITY TYPE AND TENANT |
(dollars in thousands)
| | Number of
Properties | | Number of
Units/Beds | | Carrying Value of
Investment (1) | | Percent | | Investment
per unit | | Annualized
Current Rent | | Percent | |
Facility Type: | | | | | | | | | | | | | | | |
Independent Living (IL) (2) | | 41 | | 11,213 | | $ | 1,035,000 | | 46.4% | | $ | 92.3 | | $ | 102,765 | | 47.3% | |
Assisted Living (AL) | | 114 | | 8,227 | | 839,771 | | 37.7% | | 102.1 | | 78,179 | | 36.0% | |
Nursing Homes | | 58 | | 5,869 | | 225,080 | | 10.1% | | 38.4 | | 19,268 | | 8.9% | |
Rehabilitation Hospitals | | 2 | | 364 | | 49,468 | | 2.2% | | 135.9 | | 10,723 | | 4.9% | |
Wellness Centers (3) | | 6 | | — | | 79,972 | | 3.6% | | NA | | 6,519 | | 2.9% | |
Total | | 221 | | 25,673 | | $ | 2,229,291 | | 100.0% | | $ | 83.7 | | $ | 217,454 | | 100.0% | |
| | | | | | | | | | | | | | | |
Tenant: | | | | | | | | | | | | | | | |
Five Star (Lease No. 1) | | 133 | | 11,036 | | $ | 899,899 | | 40.4% | | $ | 81.5 | | $ | 75,192 | | 34.6% | |
Five Star (Lease No. 2) | | 30 | | 7,275 | | 676,930 | | 30.4% | | 93.0 | | 69,003 | | 31.7% | |
Five Star Rehabilitation Hospitals | | 2 | | 364 | | 49,468 | | 2.2% | | 135.9 | | 10,723 | | 4.9% | |
Sunrise / Marriott (4) | | 14 | | 4,091 | | 325,165 | | 14.6% | | 79.5 | | 31,746 | | 14.6% | |
NewSeasons / IBC (5) | | 10 | | 873 | | 87,641 | | 3.9% | | 100.4 | | 9,298 | | 4.3% | |
Alterra / Brookdale (6) | | 18 | | 894 | | 61,122 | | 2.7% | | 68.4 | | 7,873 | | 3.6% | |
6 Private Companies (combined) | | 8 | | 1,140 | | 49,094 | | 2.2% | | 43.1 | | 7,100 | | 3.4% | |
Starmark (3) | | 6 | | — | | 79,972 | | 3.6% | | NA | | 6,519 | | 2.9% | |
Total | | 221 | | 25,673 | | $ | 2,229,291 | | 100.0% | | $ | 83.7 | | $ | 217,454 | | 100.0% | |
(1) | | Amounts are before depreciation, but after impairment write downs, if any. |
| | |
(2) | | Properties where the majority of units are independent living apartments are classified as independent living communities. |
| | |
(3) | | In October and November 2007, we acquired six wellness centers that are leased to Starmark. The carrying value of this investment is before depreciation and includes intangible assets and liabilities. |
| | |
(4) | | Marriott guarantees this lease. |
| | |
(5) | | IBC guarantees this lease. |
| | |
(6) | | Brookdale guarantees this lease. |
20
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
OCCUPANCY BY FACILITY TYPE AND TENANT |
| | For the Three Months Ended | |
| | 12/31/2007 | | 9/30/2007 | | 6/30/2007 | | 3/31/2007 | | 12/31/2006 | |
Facility Type: | | | | | | | | | | | |
Independent Living (IL) (1) | | 91% | | 91% | | 90% | | 91% | | 91% | |
Assisted Living (AL) (1) | | 90% | | 91% | | 89% | | 88% | | 88% | |
Nursing Homes | | 89% | | 88% | | 89% | | 89% | | 89% | |
Rehabilitation Hospitals (2) | | 62% | | 60% | | 59% | | 61% | | 60% | |
Wellness Centers (3) | | NA | | NA | | NA | | NA | | NA | |
| | | | | | | | | | | |
Tenant: | | | | | | | | | | | |
Five Star (Lease No. 1) (4) | | 89% | | 90% | | 89% | | 88% | | 88% | |
Five Star (Lease No. 2) | | 91% | | 92% | | 91% | | 92% | | 92% | |
Five Star Rehabilitation Hospitals (2) | | 62% | | 60% | | 59% | | 61% | | 60% | |
Sunrise / Marriott (5) | | NA | | NA | | NA | | NA | | NA | |
NewSeasons / IBC | | 81% | | 82% | | 83% | | 83% | | 84% | |
Alterra / Brookdale | | 91% | | 91% | | 87% | | 87% | | 88% | |
6 Private Companies (combined) | | 88% | | 88% | | 89% | | 88% | | 89% | |
Starmark (3) | | NA | | NA | | NA | | NA | | NA | |
(1) | | Includes operating data provided by Sunrise that may not be accurate due to accounting issues at Sunrise. See note 5 below. We believe, however, that the data provided by Sunrise does not materially affect the cumulative occupancy percentages for these two facility type leases. |
| | |
(2) | | The occupancy percentage is based on 342 available beds capacity. |
| | |
(3) | | In October and November 2007, we acquired six wellness centers that are leased to Starmark. We do not report occupancy data for the wellness centers because this data is not applicable to wellness centers. |
| | |
(4) | | Includes data for periods prior to our ownership of certain properties included in this lease. |
| | |
(5) | | Sunrise has not filed its Annual Report on Form 10-K for 2007 or Quarterly Reports on Form 10-Q for the first three quarters of 2007 with the SEC due to accounting issues. Because we do not know what impact the resolution of these accounting issues may have on the reported performance of our properties, we do not report operating data for this tenant. |
| | |
| | All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We have not independently verified our tenants’ operating data. |
21
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
% PRIVATE PAY BY FACILITY TYPE AND TENANT |
| | For the Three Months Ended | |
| | 12/31/2007 | | 9/30/2007 | | 6/30/2007 | | 3/31/2007 | | 12/31/2006 | |
Facility Type: | | | | | | | | | | | |
Independent Living (IL) (1) | | 81% | | 82% | | 81% | | 82% | | 81% | |
Assisted Living (AL) (1) | | 96% | | 96% | | 96% | | 95% | | 95% | |
Nursing Homes | | 28% | | 29% | | 29% | | 29% | | 28% | |
Rehabilitation Hospitals | | 33% | | 32% | | 31% | | 32% | | 28% | |
Wellness Centers (2) | | 100% | | NA | | NA | | NA | | NA | |
| | | | | | | | | | | |
Tenant: | | | | | | | | | | | |
Five Star (Lease No. 1) (3) | | 53% | | 54% | | 54% | | 54% | | 53% | |
Five Star (Lease No. 2) | | 79% | | 80% | | 80% | | 80% | | 80% | |
Five Star Rehabilitation Hospitals | | 33% | | 32% | | 31% | | 32% | | 28% | |
Sunrise / Marriott (4) | | NA | | NA | | NA | | NA | | NA | |
NewSeasons / IBC | | 100% | | 100% | | 100% | | 100% | | 100% | |
Alterra / Brookdale | | 98% | | 98% | | 98% | | 98% | | 98% | |
6 Private Companies (combined) | | 24% | | 24% | | 25% | | 25% | | 26% | |
Starmark (2) | | 100% | | NA | | NA | | NA | | NA | |
(1) | | Includes operating data provided by Sunrise that may not be accurate due to accounting issues at Sunrise. See note 4 below. We believe, however, that the data provided by Sunrise does not materially affect the cumulative occupancy percentages for these two facility type leases. |
| | |
(2) | | In October and November 2007, we acquired six wellness centers that are leased to Starmark. Because we do not have reliable information about the operations for the wellness centers before we purchased them, we do not report operating for these wellness centers before October 30, 2007. |
| | |
(3) | | Includes data for periods prior to our ownership of certain properties included in this lease. |
| | |
(4) | | Sunrise has not filed its Annual Report on Form 10-K for 2007 or Quarterly Reports on Form 10-Q for the first three quarters of 2007 with the SEC due to accounting issues. Because we do not know what impact the resolution of these accounting issues may have on the reported performance of our properties, we do not report operating data for this tenant. |
All tenant operating data presented are based upon the operating results provided by our tenants for the indicated quarterly periods. We have not independently verified our tenants' operating data.
22
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
| | For the Three Months Ended | |
Tenant | | 12/31/2007 | | 9/30/2007 | | 6/30/2007 | | 3/31/2007 | | 12/31/2006 | |
Five Star (Lease No. 1) (1) | | 1.41x | | 1.63x | | 1.36x | | 1.30x | | 1.46x | |
Five Star (Lease No. 2) (2) | | 1.66x | | 1.70x | | 1.61x | | 1.45x | | 1.58x | |
Five Star Rehabilitation Hospitals | | 0.92x | | 1.08x | | 0.67x | | 0.98x | | 1.52x | |
Sunrise / Marriott (3) | | NA | | NA | | NA | | NA | | NA | |
NewSeasons / IBC | | 0.94x | | 0.79x | | 1.03x | | 1.06x | | 0.66x | |
Alterra / Brookdale | | 1.85x | | 2.05x | | 2.06x | | 2.03x | | 2.01x | |
6 Private companies (combined) | | 1.94x | | 1.78x | | 1.92x | | 1.63x | | 1.98x | |
Starmark (4) | | 1.95x | | NA | | NA | | NA | | NA | |
(1) | Includes data for periods prior to our ownership of certain properties included in this lease. |
| |
(2) | Historically, some of these properties were managed by Sunrise until November 30, 2006. The rent coverage presented for this lease has been adjusted to exclude management fees paid to Sunrise during the periods presented. Some of the data provided by Sunrise may not be accurate. See note 3 below. We believe, however, that the data provided by Sunrise does not materially affect the amounts presented. |
| |
(3) | Sunrise has not filed its Annual Report on Form 10-K for 2007 or Quarterly Reports on Form 10-Q for the first three quarters of 2007 with the SEC due to accounting issues. Because we do not know what impact the resolution of these accounting issues may have on the reported performance of our properties, we do not report operating data for this tenant. |
| |
(4) | In October and November 2007, we acquired six wellness centers that are leased to Starmark. Because we do not have reliable information about the operations for the wellness centers before we purchased them, we do not report operating data for these wellness centers before October 30, 2007. |
| |
| All tenant operating data presented are based upon the operating results provided by our tenants for the indicated periods. Rent coverage is calculated as operating cash flow from our tenants’ facility operations, before subordinated charges and capital expenditure reserves, if any, divided by rent payable to us. We have not independently verified our tenants’ operating data. |
23
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2008
PORTFOLIO LEASE EXPIRATION SCHEDULE |
(dollars in thousands)
| | Annualized
Current Rent | | % of Annualized
Current Rent | | Cumulative % of
Annualized
Current Rent | |
2008 | | $ | — | | — | | 0.0% | |
2009 | | — | | — | | 0.0% | |
2010 | | 1,320 | | 0.5% | | 0.5% | |
2011 | | — | | — | | 0.5% | |
2012 | | — | | — | | 0.5% | |
2013 | | 31,746 | | 14.6% | | 15.1% | |
2014 | | — | | — | | 15.1% | |
2015 | | 2,043 | | 0.9% | | 16.0% | |
2016 and thereafter | | 182,345 | | 84.0% | | 100.0% | |
Total | | $ | 217,454 | | 100.0% | | | |
| | | | | | | |
Weighted average remaining lease term (in years) | | 10.7 | | | | | |
24
