EXHIBIT 99.2
SENIOR HOUSING PROPERTIES TRUST
First Quarter 2006
Supplemental Operating and Financial Data
Unless otherwise noted, all amounts in this report are unaudited.
TABLE OF CONTENTS
Page
CORPORATE INFORMATION
Company Profile 5
Investor Information 6
Research Coverage 7
FINANCIAL INFORMATION
Key Financial Data 9
Consolidated Balance Sheet 10
Consolidated Statement of Income 11
Consolidated Statement of Cash Flows 12
Calculation of EBITDA 13
Calculation of Funds from Operations (FFO) 14
Debt Summary 15
Debt Maturity Schedule 16
Leverage Ratios, Coverage Ratios and Public Debt Covenants 17
2006 Investments/Dispositions Information 18
2006 Financing Activities 19
PORTFOLIO INFORMATION
Portfolio Summary by Facility Type and Tenant 21
Occupancy by Facility Type and Tenant 22
% Private Pay by Facility Type and Tenant 23
Rent Coverage by Tenant 24
Portfolio Lease Expiration Schedule 25
2
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS DOCUMENT CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES
LAWS. THESE STATEMENTS REPRESENT OUR PRESENT BELIEFS AND EXPECTATIONS, BUT THEY
MAY NOT OCCUR FOR VARIOUS REASONS. FOR EXAMPLE:
o A MASSACHUSETTS TRIAL COURT HAS RULED THAT OUR TERMINATION OF HEALTHSOUTH
CORPORATION'S LEASE OF TWO HOSPITALS WAS PROPER AND ORDERED HEALTHSOUTH TO
PAY US THE NET PATIENT REVENUES, LESS A MANAGEMENT FEE AND OPERATION COSTS,
SINCE OCTOBER 26, 2004. HOWEVER, HEALTHSOUTH HAS FILED A NOTICE OF APPEAL
OF THESE DECISIONS AND HEALTHSOUTH'S APPEAL MAY BE SUCCESSFUL.
o A MASSACHUSETTS TRIAL COURT HAS ORDERED HEALTHSOUTH TO COOPERATE WITH US TO
LICENSE A NEW TENANT FOR OUR HOSPITALS OPERATED BY HEALTHSOUTH. HEALTHSOUTH
HAS FILED A NOTICE TO APPEAL THIS DECISION AND THAT APPEAL HAS NOT BEEN
DECIDED, ALTHOUGH A STAY PENDING APPEAL SOUGHT BY HEALTHSOUTH WAS DENIED.
HEALTHSOUTH RECENTLY FILED A MOTION IN THE TRIAL COURT SEEKING TO LIMIT ITS
COOPERATION WITH THE LICENSING PROCESS AND FOR OTHER RELIEF. FUTURE ACTIONS
BY HEALTHSOUTH, FUTURE DECISIONS BY COURTS WITH JURISDICTION OVER THESE
MATTERS OR DECISIONS BY HEALTH REGULATORY AUTHORITIES MAY DELAY OR PREVENT
OUR ENTERING A LEASE WITH A NEW TENANT FOR OUR HOSPITALS DESPITE THE
EXISTING COURT ORDERS.
o THE COURT HAS ORDERED HEALTHSOUTH TO CONTINUE OPERATIONS OF OUR HOSPITALS
DURING THE PERIOD OF TRANSITION TO A NEW TENANT. HEALTHSOUTH MAY BE
UNWILLING OR UNABLE TO CONTINUE ITS OPERATIONS. IN SUCH CIRCUMSTANCES, WE
MAY SEEK DAMAGES FROM HEALTHSOUTH AND TO CONTINUE THE HOSPITALS' OPERATIONS
WITH APPROPRIATE REGULATORY APPROVALS, BUT WE MAY BE UNABLE TO COLLECT SUCH
DAMAGES FROM HEALTHSOUTH OR TO CONTINUE THE HOSPITALS' OPERATIONS.
o IN A SECOND LITIGATION, WE ARE SEEKING TO COLLECT INCREASED RENT FROM
HEALTHSOUTH SINCE JANUARY 2002. THE FACT THAT WE HAVE RECEIVED A FAVORABLE
RULING IN A SEPARATE LITIGATION MAY IMPLY THAT WE WILL ALSO SUCCEED IN THIS
INCREASED RENT LITIGATION. HOWEVER, THE ISSUES IN THESE TWO LITIGATIONS ARE
SOMEWHAT DIFFERENT AND ARE PENDING IN DIFFERENT COURTS. WE BELIEVE ALL OF
OUR CLAIMS ARE VALID. HOWEVER, NOT ALL OF OUR CLAIMS HAVE BEEN FINALLY
DETERMINED AND THE FACT THAT WE HAVE RECEIVED FAVORABLE RULINGS IN ONE CASE
DOES NOT MEAN WE WILL SUCCEED IN THE OTHER CASE.
o THE IMPLICATION OF THE FORWARD LOOKING STATEMENTS IN THIS DOCUMENT
REGARDING OUR LITIGATIONS WITH HEALTHSOUTH MAY BE THAT WE WILL EVENTUALLY
RECOGNIZE MORE INCOME FROM OUR OWNERSHIP OF THE TWO HOSPITALS THAN $725,000
PER MONTH. HOWEVER, THIS IMPLICATION MAY NOT BE REALIZED FOR MANY DIFFERENT
REASONS: OUR REVIEW OF HEALTHSOUTH'S CALCULATIONS OF AMOUNTS DUE TO US MAY
RESULT IN ADJUSTMENTS THAT DECREASE OR INCREASE THE FINAL AMOUNTS DUE TO
US. HEALTHSOUTH MAY BECOME UNABLE TO PAY THE INCREASED AMOUNTS, IF ANY, DUE
TO US. WE MAY BE UNABLE TO IDENTIFY A NEW TENANT FOR THESE HOSPITALS WHO
OBTAINS APPROPRIATE LICENSES AND WHO IS WILLING OR ABLE TO PAY INCREASED
RENTS. HEALTHSOUTH'S APPEAL MAY BE SUCCESSFUL AND ITS LEASE MAY BE
REINSTATED. THE FINANCIAL RESULTS OF THE HOSPITALS' OPERATIONS MAY DECLINE
AND THIS DECLINE MAY BE MATERIAL. IN FACT, HEALTHSOUTH MAY CEASE PAYING
AMOUNTS DUE TO US UNTIL A NEW TENANT IS INSTALLED AT THE HOSPITALS.
o LITIGATION IS EXPENSIVE. SINCE THE CURRENT LITIGATIONS BETWEEN US AND
HEALTHSOUTH BEGAN IN APRIL 2003, WE HAVE SPENT APPROXIMATELY $2.7 MILLION
IN LITIGATION COSTS. WE EXPECT THAT THESE EXPENSES WILL CONTINUE AND MAY
INCREASE SO LONG AS THE LITIGATIONS CONTINUE. MOREOVER, WE ARE UNABLE TO
PROVIDE ANY PROJECTIONS AS TO WHEN THESE LITIGATIONS MAY END OR THE AMOUNTS
OF FUTURE LITIGATION COSTS. WE HAVE REQUESTED THAT THE COURT ORDER
HEALTHSOUTH TO PAY SOME OF OUR LITIGATION COSTS. HEALTHSOUTH HAS OPPOSED
THIS REQUEST AND WE DO NOT KNOW HOW THE COURTS WILL RULE OR WHETHER
HEALTHSOUTH WILL BE WILLING OR ABLE TO HONOR ANY AWARD WHICH MAY BE MADE.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS. EXCEPT AS
MAY BE REQUIRED BY APPLICABLE LAW, WE UNDERTAKE NO OBLIGATION TO UPDATE OR
REVISE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.
3
CORPORATE INFORMATION
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
COMPANY PROFILE
- -------------------------------------------------------------------------------
The Company:
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 and nursing homes located throughout the United States.
We are included in a number of stock indices, including the Russell 2000(R), 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 was founded in 1986 to manage public investments in real estate. As of
March 31, 2006, RMR managed one of the largest portfolios of publicly owned real
estate in the United States, including approximately 980 properties, with
approximately 89.0 million square feet, located in 42 states, Washington, DC,
Puerto Rico and Ontario, Canada. RMR has over 400 employees in its headquarters
and regional offices located throughout the country. In addition to managing
SNH, RMR and its affiliates also manage Hospitality Properties Trust, a publicly
traded REIT that owns hotels, HRPT Properties Trust, a publicly traded REIT that
primarily owns office buildings and four mutual funds which invest in
unaffiliated real estate companies. The public companies managed by RMR and its
affiliates had combined total market capitalization of approximately $12.0
billion as of March 31, 2006. 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.
Strategy:
Our present business plan is to maintain an investment portfolio of independent
living properties, assisted living properties and nursing homes and to acquire
additional senior living properties primarily for income and secondarily for
appreciation potential. Our current growth strategy is generally focused on
making portfolio acquisitions of geographically diverse, primarily independent
and assisted senior living properties where the majority of the residents pay
for occupancy and services from 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. 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 2012.
Stock Exchange Listing: Corporate Headquarters:
New York Stock Exchange 400 Centre Street
Newton, MA 02458
Trading Symbol: (t) (617) 796-8350
(f) (617) 796-8349
Common Shares -- SNH
Senior Unsecured Debt Ratings:
Moody's -- Ba2
Standard & Poor's -- BB+
Portfolio Data (as of 3/31/06):
Total properties 188
Total units / beds 23,282
Percent of rent from private pay properties 84.4% (1)
Portfolio Concentration by facility type (as of 3/31/06):
Carrying Value
Number of Number of of Annualized
Properties Units/Beds Investment (2) Percent Current Rent Percent
---------------------------------------------------------------------------------
Independent Living (IL) (3) 36 10,412 $908,977 53.7% $90,522 54.3%
Assisted Living (AL) 89 6,197 516,674 30.6% 50,272 30.1%
Nursing Homes 61 6,309 222,295 13.1% 17,334 10.4%
Hospitals 2 364 43,553 2.6% 8,700 5.2%
---------------------------------------------------------------------------------
Total 188 23,282 $1,691,499 100.0% $166,828 100.0%
=================================================================================
Operating Statistics by tenant (Q1 2006):
Number of Number of Annualized Rent Percent
Tenant Properties Units/Beds Current Rent Coverage (4) Occupancy (4) Private Pay (4)
- ----------------------------------------------------------------------------------------------------------------------
Five Star / Sunrise (5) 30 7,307 $ 64,246 1.33x 93% 82%
Five Star 106 8,467 39,780 1.49x 91% 48%
Sunrise / Marriott (6) 14 4,091 31,087 1.26x 92% 80%
NewSeasons / IBC (7) 10 1,019 9,287 1.16x 85% 100%
HealthSouth (8) 2 364 8,700 NA NA NA
Alterra / Brookdale (9) 18 894 7,232 2.04x 90% 98%
Genesis HealthCare Corporation 1 156 1,535 1.77x 97% 17%
5 Private Companies (combined) 7 984 4,961 1.56x 90% 26%
--------------------------------------
188 23,282 $ 166,828
======================================
<FN>
(1) Represents the percentage of SNH's rental income that is derived from properties where the underlying operating revenues are
greater than 80% private pay.
(2) Amounts are before depreciation, but after impairment write downs.
(3) Properties where the majority of units are independent living apartments are classified as independent living communities.
(4) All tenant operating data presented are based upon the operating results provided by our tenants for the indicated periods,
or the most recent prior period for which tenant operating results are available to us from our tenants. Rent coverage is
calculated as operating cash flow from our tenants' facility operations, before subordinated charges and capital expenditure
reserves, divided by rent payable to us. We have not independently verified our tenants' operating data.
(5) These 30 properties are leased to Five Star Quality Care, Inc., or Five Star, and 17 were managed by Sunrise Senior Living,
Inc., or Sunrise, at March 31, 2006. As of March 31, 2006, Five Star operated 13 of these 30 properties and intends to begin
operating 10 additional properties during the second quarter of 2006. Sunrise does not guaranty Five Star's lease
obligations. The rent that Five Star pays to us is subordinate to the management fees paid by Five Star to Sunrise, but is
not subordinate to Five Star's internal management costs. The rent coverage presented for this lease has been adjusted to
exclude management fees paid to Sunrise during the first quarter for the 23 properties that Five Star currently manages and
expects to manage in the second quarter of 2006.
(6) Marriott International, Inc., or Marriott, guarantees the lease for these 14 properties leased to Sunrise.
(7) Independence Blue Cross, or IBC, a Pennsylvania health insurer, guarantees the lease for the 10 properties leased to
NewSeasons Assisted Living Communities, Inc., or NewSeasons.
(8) In March 2006, HealthSouth filed late an Annual Report on Form 10-K for the period ending December 31, 2005. The financial and
operating data included in HealthSouth's Form 10-K show a substantial negative net worth and a history of substantial
operating losses. Also, HealthSouth's management identified several material weaknesses in its internal control over
financial reporting and stated that it did not maintain effective internal control over financial reporting as of December
31, 2005. Because we do not have reliable current information about the operations or financial performance of HealthSouth or
our hospitals, we do not show operating data for this operator. See also Note 1 on page 11 regarding our litigation with
HealthSouth.
(9) Brookdale Senior Living, Inc., or Brookdale, guarantees the lease for 18 properties leased to Alterra Healthcare Corporation,
or Alterra.
</FN>
5
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
INVESTOR INFORMATION
- --------------------------------------------------------------------------------
Board of Trustees
- --------------------------------------------------------------------------------
Barry M. Portnoy Gerard M. Martin
Managing Trustee Managing Trustee
Frank J. Bailey Frederick N. Zeytoonjian
Independent Trustee Independent Trustee
John L. Harrington
Independent Trustee
Senior Management
- --------------------------------------------------------------------------------
David J. Hegarty John R. Hoadley
President, Chief Operating Officer Treasurer and Chief Financial Officer
and Secretary
Contact Information
- --------------------------------------------------------------------------------
Investor Relations Inquiries
Senior Housing Properties Trust Financial inquiries should be directed
400 Centre Street to John R. Hoadley, Treasurer and Chief
Newton, MA 02458 Financial Officer, at (617) 796-8350
(t) (617) 796-8350 or jhoadley@reitmr.com.
(f) (617) 796-8349
(email) info@snhreit.com Investor and media inquiries should be
(website) www.snhreit.com directed to Timothy A. Bonang, Manager
of Investor Relations, at
(617) 796-8149 or tbonang@snhreit.com.
6
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
RESEARCH COVERAGE
- --------------------------------------------------------------------------------
Equity Research Coverage
- --------------------------------------------------------------------------------
Merrill Lynch Stifel, Nicolaus
David Tsoupros Jerry Doctrow
(212) 449-9697 (410) 454-5142
Raymond James Wachovia Securities
Paul Puryear Stephen Swett
(727) 573-3800 (212) 909-0954
Debt Research Coverage
- --------------------------------------------------------------------------------
UBS Wachovia Securities
Ray Garson Dan Sullivan
(203) 719-6415 (704) 383-6441
Rating Agencies
- --------------------------------------------------------------------------------
Moody's Investor Service Standard and Poor's
Lori Halpern 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.
7
FINANCIAL INFORMATION
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
KEY FINANCIAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
(share amounts and dollars in thousands, except per share data)
As of and For the Three Months Ended
-------------------------------------------------------------------
3/31/2006 12/31/2005 9/30/2005 6/30/2005 3/31/2005
------------ ------------ ------------ ------------ ------------
SHARES OUTSTANDING:
Common shares outstanding (at end of period) 71,812 71,812 68,562 68,538 68,496
Weighted average common shares outstanding
- basic and diluted (1) 71,812 69,445 68,543 68,537 68,496
COMMON SHARE DATA:
Price at end of period $18.10 $16.91 $19.00 $18.91 $16.68
High during period $19.08 $19.35 $20.00 $19.45 $19.10
Low during period $16.75 $16.84 $17.79 $16.40 $16.20
Annualized dividends paid per share $1.28 $1.28 $1.28 $1.28 $1.28
Annualized dividend yield (at end of period) 7.1% 7.6% 6.7% 6.8% 7.7%
MARKET CAPITALIZATION:
Total debt (book value) $545,444 $556,400 $551,757 $577,175 $535,748
Plus: market value of common shares (at end of period) 1,299,797 1,214,341 1,302,678 1,296,054 1,142,513
---------- ---------- ---------- ---------- ----------
Total market capitalization $1,845,241 $1,770,741 $1,854,435 $1,873,229 $1,678,261
Total debt / total market capitalization 29.6% 31.4% 29.8% 30.8% 31.9%
BOOK CAPITALIZATION:
Total debt $545,444 $556,400 $551,757 $577,175 $535,748
Plus: total shareholders' equity 912,159 917,977 868,086 875,634 881,692
---------- ---------- ---------- ---------- ----------
Total book capitalization $1,457,603 $1,474,377 $1,419,843 $1,452,809 $1,417,440
Total debt / total book capitalization 37.4% 37.7% 38.9% 39.7% 37.8%
SELECTED BALANCE SHEET DATA:
Total assets $1,480,557 $1,499,648 $1,440,403 $1,473,413 $1,436,848
Total liabilities $568,398 $581,671 $572,317 $597,779 $555,156
Gross book value of real estate assets (2) $1,691,499 $1,686,169 $1,632,013 $1,652,231 $1,604,693
Total debt / gross book value of real estate assets (2) 32.2% 33.0% 33.8% 34.9% 33.4%
SELECTED INCOME STATEMENT DATA:
Total revenues $41,169 $44,111 $40,244 $39,605 $39,227
EBITDA (3) $39,028 $38,353 $37,775 $37,293 $36,649
Income from continuing operations $15,667 $10,472 $14,129 $14,316 $13,865
Net income $15,667 $15,686 $14,129 $15,033 $13,865
Funds from operations (FFO) (4) $27,657 $22,171 $25,864 $25,850 $25,426
Common distributions paid $22,980 $22,980 $21,940 $21,932 $21,919
PER SHARE DATA:
Income from continuting operations $0.22 $0.15 $0.21 $0.21 $0.20
Net income $0.22 $0.23 $0.21 $0.22 $0.20
FFO (4) $0.39 $0.32 $0.38 $0.38 $0.37
Common distributions paid $0.32 $0.32 $0.32 $0.32 $0.32
FFO payout ratio (4) 82.1% 100.0% 84.2% 84.2% 86.5%
COVERAGE RATIOS:
EBITDA (3) / interest expense 3.4x 3.2x 3.2x 3.3x 3.3x
<FN>
(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, including purchase
price allocations relating to FAS 141.
(3) See page 13 for calculation of EBITDA.
(4) See Note 1 and Note 3 on page 11.
</FN>
9
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CONSOLIDATED BALANCE SHEET
- ---------------------------------------------------------------------------------------------------
(in thousands, except per share data)
As of As of
March 31, December 31,
2006 2005
------------- ---------------
(audited)
ASSETS
Real estate properties, at cost:
Land $185,819 $185,819
Buildings and improvements 1,505,680 1,500,350
----------- -----------
1,691,499 1,686,169
Less accumulated depreciation 249,763 239,031
----------- -----------
1,441,736 1,447,138
Cash and cash equivalents 1,247 14,642
Restricted cash 1,858 2,529
Deferred financing fees, net 9,551 9,968
Other assets 26,165 25,371
----------- -----------
Total assets $1,480,557 $1,499,648
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Unsecured revolving bank credit facility $106,000 $64,000
Senior unsecured notes due 2012 and 2015, net of discount 341,556 394,018
Junior subordinated debentures due 2041 28,241 28,241
Secured debt and capital leases 69,647 70,141
Accrued interest 8,829 13,089
Other liabilities 14,125 12,182
----------- -----------
Total liabilities 568,398 581,671
----------- -----------
Commitments and contingencies
Shareholders' equity:
Common shares of beneficial interest, $0.01 par value:
80,000,000 shares authorized; 71,812,227 shares issued
and outstanding 718 718
Additional paid-in capital 1,093,480 1,093,480
Cumulative net income 282,863 267,196
Cumulative distributions (470,269) (447,289)
Unrealized gain on investments 5,367 3,872
----------- -----------
Total shareholders' equity 912,159 917,977
----------- -----------
Total liabilities and shareholders' equity $1,480,557 $1,499,648
=========== ===========
10
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CONSOLIDATED STATEMENT OF INCOME
---------------------------------------------------------------------------------------------------
(in thousands, except per share data)
For the Three Months Ended
--------------------------
3/31/2006 3/31/2005
---------- ----------
Revenues:
Rental income (1) $40,823 $38,888
Interest and other income 346 339
------- -------
Total revenues 41,169 39,227
------- -------
Expenses:
Interest 11,371 11,223
Depreciation 10,731 10,746
General and administrative 3,400 3,393
------- -------
Total expenses 25,502 25,362
------- -------
Net income $15,667 $13,865
======= =======
Weighted average common shares outstanding 71,812 68,496
======= =======
Basic and diluted earnings per share:
Net income $ 0.22 $ 0.20
======= =======
Additional Data:
Straight-line rent included in rental income (2) $ 56 $ 107
Deferred percentage rent (3) $ 1,259 $ 815
Litigation expenses included in general and administrative
expenses (4) $ 390 $ 400
<FN>
(1) Rental income for the quarter ended March 31, 2006, includes $2.2 million of income from two
hospitals operated by HealthSouth Corporation, or HealthSouth. Effective January 2, 2002, we entered
an amended lease with HealthSouth for two hospitals. In April 2003, we commenced a lawsuit against
HealthSouth seeking, among other matters, to reform the amended lease, based upon HealthSouth's
fraud, by increasing the rent payable to us from January 2, 2002 until the termination of the
amended lease. This litigation is pending at this time. On October 26, 2004, we terminated the
amended lease for default because HealthSouth failed to deliver to us accurate and timely financial
information as required by the amended lease. On November 2, 2004, HealthSouth brought a second
lawsuit against us seeking to prevent our termination of the amended lease. On September 25, 2005,
the court ruled that our termination was proper. On January 18, 2006, the court ordered HealthSouth
to cooperate with us in licensing a new tenant and to pay us the net patient revenues, after a 5%
management fee and payment of costs and expenses of operation since October 26, 2004. HealthSouth
has filed a notice of appeal of the court's decisions; but HealthSouth's motions for a stay of the
court's decisions during the appeal have been denied by both the trial court and the appeals court.
During the pendency of these disputes, HealthSouth continued to pay us at the disputed rent amount
of $725,000 per month through January 2006. From February 1, 2006 to April 30, 2006, HealthSouth
paid us an additional $6.0 million which HealthSouth represented to be amounts due from October 26,
2004 to March 31, 2006. The supporting data for the calculations of amounts due to us provided by
HealthSouth appears to be incomplete and contradictory. We have attempted to obtain accurate data
and clarifications from HealthSouth, but HealthSouth has been unwilling or unable to provide such
data. Pending the resolution of HealthSouth's appeal and the conclusion of our review of
HealthSouth's calculations of amounts due to us, we have recognized in income only $2.2 million,
which represents the minimum amount we are entitled to if HealthSouth prevails in its appeal and
HealthSouth's lease is reinstated. We have deferred recognition of the remaining $4.5 million of
cash payments received from HealthSouth. Under Internal Revenue Code laws and regulations applicable
to real estate investment trusts, or REITs, a portion of the payments received from HealthSouth will
be subject to income tax at corporate rates. We have also deferred recognition of $2.3 million of
estimated tax expense, pending the recognition in income of the deferred payments received. In March
2006, HealthSouth filed late an Annual Report on Form 10-K for the period ending December 31, 2005.
The financial and operating data included in HealthSouth's Form 10-K show a substantial negative net
worth and a history of substantial operating losses. Also, HealthSouth's management identified
several material weaknesses in its internal control over financial reporting and stated that it did
not maintain effective internal control over financial reporting as of December 31, 2005. To date we
have been unable to obtain reliable current financial information about the operations of
HealthSouth or our hospitals. Accordingly, we do not know if we will be able to collect any
additional amounts which the courts may determine to be owed to us by HealthSouth.
(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) This amount represents rent with respect to the first quarter that is not included in rental income
for the first quarter. We recognize percentage rental income received during the first, second and
third quarters in the fourth quarter.
(4) These expenses relate to our HealthSouth litigation.
</FN>
11
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CONSOLIDATED STATEMENT OF CASH FLOWS
- -------------------------------------------------------------------------------------------------------------------------
(in thousands)
For the Three Months Ended
-----------------------------------
3/31/2006 3/31/2005
-------------- -------------
Cash flows from operating activities:
Net income $15,667 $13,865
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation 10,731 10,746
Amortization of deferred finance fees and debt discounts 455 531
Change in assets and liabilities:
Restricted cash 671 (351)
Other assets 702 2,998
Accrued interest (4,260) (1,937)
Other liabilities 1,943 (559)
-------- --------
Cash provided by operating activities 25,909 25,293
-------- --------
Cash flows from investing activity:
Acquisitions (5,330) (3,741)
-------- --------
Cash used for investing activity (5,330) (3,741)
-------- --------
Cash flows from financing activities:
Proceeds from borrowings on revolving bank credit facility 47,000 10,000
Repayments of borrowings on revolving bank credit facility (5,000) (9,000)
Redemption of senior notes (52,500) --
Repayment of other debt (494) (471)
Deferred financing fees -- (8)
Distributions to shareholders (22,980) (21,919)
-------- --------
Cash used for financing activities (33,974) (21,398)
-------- --------
Decrease in cash and cash equivalents (13,395) 155
Cash and cash equivalents at beginning of period 14,642 3,409
-------- --------
Cash and cash equivalents at end of period $1,247 $3,564
======== ========
Supplemental cash flow information:
Interest paid $15,176 $12,629
12
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CALCULATION OF EBITDA
- --------------------------------------------------------------------------------
(dollars in thousands)
For the Three Months Ended
-----------------------------
3/31/2006 3/31/2005
------------- -------------
Net income (1) $ 15,667 $ 13,865
Plus: interest expense 11,371 11,223
depreciation expense 10,731 10,746
deferred percentage rent adjustment (2) 1,259 815
------------- -------------
EBITDA $ 39,028 $ 36,649
============= =============
(1) Net income includes legal expenses incurred related to our HealthSouth
litigation of approximately $390,000 for the quarter ended March 31, 2006
and $400,000 for the quarter ended March 31, 2005. See Note 1 on page 11
regarding our HealthSouth litigation.
(2) We recognize percentage rental income received during the first, second and
third quarters in the fourth quarter. Although recognition of revenue is
deferred until the fourth quarter, for purposes of this calculation total
revenues for the first three quarters includes estimated amounts 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. Such calculation
begins with income from continuing operations or, if such amount is the
same as net income, with net income. We consider EBITDA to be an
appropriate measure of performance for a REIT, along with net income and
cash flow from operating, investing and financing activities. EBITDA does
not represent cash generated by operating activities in accordance with
generally accepted accounting principals, or 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.
13
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
CALCULATION OF FUNDS FROM OPERATIONS (FFO)
- -------------------------------------------------------------------------------------------------------
(amounts in thousands, except per share data)
For the Three Months Ended
------------------------------
3/31/2006 3/31/2005
-------------- -------------
Net income (1) $ 15,667 $ 13,865
Plus: depreciation expense 10,731 10,746
deferred percentage rent adjustment (2) 1,259 815
-------------- -------------
FFO $ 27,657 $ 25,426
============== =============
Weighted average shares outstanding 71,812 68,496
Net income per share $ 0.22 $ 0.20
FFO per share $ 0.39 $ 0.37
Supplemental data:
Straight-line rent included in rental income (3) $ 56 $ 107
Amortization of deferred financing fees and debt discounts $ 455 $ 530
<FN>
(1) Net income includes legal expenses incurred related to our HealthSouth litigation of approximately
$390,000 for the quarter ended March 31, 2006 and $400,000 for the quarter ended March 31, 2005.
See Note 1 on page 11 regarding our HealthSouth litigation.
(2) We recognize percentage rental income received during the first, second and third quarters in the
fourth quarter. Although recognition of revenue is deferred until the fourth quarter for purposes
of calculating income from continuing operations, the calculation of FFO for the first three
quarters includes estimated amounts with respect to those periods. The fourth quarter FFO
calculation excludes the amounts recognized during the first three quarters.
(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.
</FN>
We compute FFO as shown in the calculation above. Such calculation begins
with income from continuing operations or, if such amount is the same as
net income, with net income. 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 2 above. 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 bank credit facility and public debt covenants, the
availability of debt and equity capital to us and our expectation of our
future performance.
14
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
DEBT SUMMARY
- -----------------------------------------------------------------------------------------------------------------------------------
(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 12/1/27 $14,700 21.7
Mortgage - secured by 16 properties (1) 6.970% 6.330% 36,416 6/2/12 30,069 6.2
Mortgage - secured by 4 properties (1) 6.110% 6.420% 12,380 11/30/13 10,218 7.7
Capital leases - 2 properties 7.700% 7.700% 6,151 5/31/16 -- 10.2
-------- -------- --------- ---------- -------
Total / weighted average secured fixed rate debt 6.650% 6.371% $69,647 $54,987 10.1
======== ======== ========= ========== =======
Unsecured Debt:
Unsecured Floating Rate Debt:
Revolving credit facility (LIBOR + 100 b.p.) 5.690% 5.690% $106,000 11/30/09 $106,000 3.7
Unsecured Fixed Rate Debt:
Senior notes due 2012 8.625% 8.625% $245,000 1/15/12 $245,000 5.8
Senior notes due 2015 7.875% 7.875% 97,500 4/15/15 97,500 9.0
Junior subordinated debentures (2) 10.125% 10.125% 28,241 6/15/41 28,241 35.2
-------- -------- --------- ---------- -------
Total / weighted average unsecured fixed rate debt 8.542% 8.542% $370,741 $370,741 8.9
======== ======== ========= ========== =======
Total / weighted average unsecured debt 7.908% 7.908% $476,741 $476,741 7.7
======== ======== ========= ========== =======
Total / weighted average secured debt fixed rate debt 6.650% 6.371% $69,647 $54,987 10.1
Total / weighted average unsecured floating rate debt 5.690% 5.690% 106,000 106,000 3.7
Total / weighted average unsecured fixed rate debt 8.542% 8.542% 370,741 370,741 8.9
-------- -------- --------- ---------- -------
Total / weighted average debt 7.748% 7.712 % $546,388 $531,728 8.0
======== ======== ========= ========== =======
<FN>
(1) Includes the effect of mark to market accounting for certain assumed mortgages.
(2) Our junior subordinated debentures will become prepayable, at par, in June 2006.
</FN>
15
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
DEBT MATURITY SCHEDULE
- ---------------------------------------------------------------------------------------------------
(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
- -------------------- ---------------- ----------- ----------- -----------
2006 $ 1,488 $ - $ - $ 1,488
2007 2,123 - - 2,123
2008 2,265 - - 2,265
2009 2,435 106,000 - 108,435
2010 2,007 - - 2,007
2011 1,703 - - 1,703
2012 31,259 - 245,000 276,259
2013 10,820 - - 10,820
2014 310 - - 310
2015 338 - 97,500 97,838
2016 and thereafter 14,899 - 28,241 43,140
---------------- ----------- ----------- -----------
$ 69,647 $ 106,000 $ 370,741 $ 546,388
================ =========== =========== ===========
16
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS
- ------------------------------------------------------------------------------------------------------------------------------------
As Of And For The Three Months Ended
----------------------------------------------------------
3/31/2006 12/31/2005 9/30/2005 6/30/2005 3/31/2005
----------- ---------- ---------- ---------- ----------
Leverage Ratios:
Total debt / total assets 36.8% 37.1% 38.3% 39.2% 37.3%
Total debt / gross book value of real estate assets (1) 32.2% 33.0% 33.8% 34.9% 33.4%
Total debt / total market capitalization 29.6% 31.4% 29.8% 30.8% 31.9%
Total debt / total book capitalization 37.4% 37.7% 38.9% 39.7% 37.8%
Secured debt / total assets 4.7% 4.7% 4.9% 4.8% 5.3%
Variable rate debt / total debt 19.4% 11.5% 10.7% 14.6% 7.9%
Coverage Ratios:
EBITDA (2) / interest expense 3.4x 3.2x 3.2x 3.3x 3.3x
Public Debt Covenants (3):
Total debt / adjusted total assets - allowable maximum 60.0% 30.0% 30.5% 34.5% 32.6% 31.0%
Secured debt / adjusted total assets - allowable maximum 40.0% 4.1% 4.1% 4.3% 4.2% 4.6%
Consolidated income available for debt service / debt service
- required minimum 2.00x 3.83x 3.53x 3.59x 3.66x 3.67x
Total unencumbered assets to unsecured debt - required minimum 1.50x 3.55x 3.49x 3.38x 3.25x 3.48x
<FN>
(1) Gross book value of real estate assets is real estate properties, at cost, less impairment write downs.
(2) See page 13 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.
</FN>
17
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
2006 INVESTMENTS/DISPOSITIONS INFORMATION
- --------------------------------------------------------------------------------
(dollars in thousands)
ACQUISITIONS:
Purchase
Date Type of Number of Purchase Price
Acquired Tenant Property Properties Units Price Per Unit
- --------------------------------------------------------------------------------
There were no acquisitions during the three months ended March 31, 2006.
MORTGAGES:
Transaction Type of Number of Investment
Date Borrower Amount Property Properties Units Per Unit
- --------------------------------------------------------------------------------
There were no mortgage investments during the three months ended March 31, 2006.
DISPOSITIONS: Original Sale Price
Allocated Multiple of
Date Type of Number of Sale Purchase Original
Sold Location Property Properties Price Price Purchase Price
- --------------------------------------------------------------------------------
There were no dispositions during the three months ended March 31, 2006.
18
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
2006 FINANCING ACTIVITIES
- --------------------------------------------------------------------------------
(share amounts and dollars in thousands)
For the Three
Months Ended
3/31/2006
---------------
DEBT TRANSACTIONS:
New debt raised $ --
New debt assumed as part of acquisitions --
---------
Total new debt --
Debt retired 52,500
---------
Net debt $(52,500)
=========
EQUITY TRANSACTIONS:
New common shares issued --
New common equity raised, net $ --
REVOLVING CREDIT FACILITY TRANSACTIONS:
Balance oustanding on 1/1/06 $64,000
Drawings 1/1/06 to 3/31/06 $47,000
Repayments 1/1/06 to 3/31/06 $(5,000)
---------
Balance oustanding on 3/31/06 $106,000
Balance available for drawing $444,000
19
PORTFOLIO INFORMATION
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
PORTFOLIO SUMMARY BY FACILITY TYPE AND TENANT
- ----------------------------------------------------------------------------------------------------------------------------------
(dollars in thousands)
Number of Number of Carrying Value of Investment Annualized
Properties Units/Beds Investment (1) Percent per unit Current Rent Percent
---------------------------------------------------------------------------------------------
Facility Type:
Independent Living (IL) (2) 36 10,412 $908,977 53.7% $87.3 $90,522 54.3%
Assisted Living (AL) 89 6,197 516,674 30.6% 83.4 50,272 30.1%
Nursing Homes 61 6,309 222,295 13.1% 35.2 17,334 10.4%
Hospitals (3) 2 364 43,553 2.6% 119.7 8,700 5.2%
---------------------------------------------------------------------------------------------
Total 188 23,282 $1,691,499 100.0% $72.7 $166,828 100.0%
=============================================================================================
Tenant:
Five Star / Sunrise (4) 30 7,307 $634,222 37.5% $86.8 $64,246 38.5%
Five Star 106 8,467 490,390 29.0% 57.9 39,780 23.8%
Sunrise / Marriott (5) 14 4,091 325,473 19.2% 79.6 31,087 18.6%
NewSeasons / IBC (6) 10 1,019 87,641 5.2% 86.0 9,287 5.6%
HealthSouth (3) 2 364 43,553 2.6% 119.7 8,700 5.2%
Alterra / Brookdale (7) 18 894 61,126 3.6% 68.4 7,232 4.3%
Genesis HealthCare Corporation 1 156 13,007 0.8% 83.4 1,535 1.0%
5 Private Companies (combined) 7 984 36,087 2.1% 36.7 4,961 3.0%
---------------------------------------------------------------------------------------------
Total 188 23,282 $1,691,499 100.0% $72.7 $166,828 100.0%
=============================================================================================
<FN>
(1) Amounts are before depreciation, but after impairment write downs, and include purchase price allocations related to FAS 141.
(2) Properties where the majority of units are independent living apartments are classified as independent living communities.
(3) See Note 1 on page 11.
(4) These 30 properties are leased to Five Star and 17 were managed by Sunrise on March 31, 2006. As of March 31, 2006, Five Star
operated 13 of these 30 properties and intends to begin operating ten additional properties during the second quarter of 2006.
Sunrise does not guaranty Five Star's lease obligations.
(5) Marriott guarantees the lease for the 14 properties leased to Sunrise.
(6) IBC guarantees the lease for the 10 properties leased to NewSeasons.
(7) Brookdale guarantees the lease for the 18 properties leased to Alterra.
</FN>
21
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
OCCUPANCY BY FACILITY TYPE AND TENANT
- --------------------------------------------------------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------------------------------
3/31/2006 12/31/2005 9/30/2005 6/30/2005 3/31/2005
------------ ----------- ----------- ------------ ------------
Facility Type:
Independent Living (IL) 93% 92% 91% 91% 91%
Assisted Living (AL) 91% 91% 90% 84% 84%
Nursing Homes 92% 90% 90% 91% 88%
Hospitals (1) NA NA NA NA NA
Tenant:
Five Star / Sunrise 93% 93% 92% 92% 92%
Five Star (2) 91% 91% 90% 87% 87%
Sunrise / Marriott 92% 92% 90% 89% 90%
NewSeasons / IBC 85% 80% 80% 81% 79%
HealthSouth (1) NA NA NA NA NA
Alterra / Brookdale 90% 90% 88% 84% 84%
Genesis HealthCare Corporation 97% 97% 94% 96% 96%
5 Private Companies (combined) 90% 88% 84% 84% 87%
<FN>
(1) In March 2006, HealthSouth filed late an Annual Report on Form 10K for the period ending December 31, 2005. The
financial and operating data included in HealthSouth's Form 10-K show a substantial negative net worth and a
history of substantial operating losses. Also, HealthSouth's management identified several material weaknesses in
its internal control over financial reporting and stated that it did not maintain effective internal control over
financial reporting as of December 31, 2005. Because we do not have reliable current information about the
operations or financial performance of HealthSouth or our hospitals, we do not show operating data for this
operator. See also Note 1 on page 11 regarding our litigation with HealthSouth.
(2) Includes data for periods prior to our ownership of certain properties included in this lease.
</FN>
All tenant operating data presented are based upon the operating results
provided by our tenants for the indicated quarterly periods, or the most
recent prior period for which tenant operating results are available to us
from our tenants. We have not independently verified our tenants' operating
data.
22
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
% PRIVATE PAY BY FACILITY TYPE AND TENANT
- ------------------------------------------------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------------
3/31/2006 12/31/2005 9/30/2005 6/30/2005 3/31/2005
-------------- ------------ ----------- ----------- ------------
Facility Type:
Independent Living (IL) 84% 87% 84% 84% 84%
Assisted Living (AL) 93% 92% 94% 93% 92%
Nursing Homes 30% 27% 29% 26% 18%
Hospitals (1) NA NA NA NA NA
Tenant:
Five Star / Sunrise 82% 84% 84% 84% 85%
Five Star (2) 48% 45% 44% 42% 41%
Sunrise / Marriott 80% 80% 79% 81% 80%
NewSeasons / IBC 100% 100% 100% 100% 100%
HealthSouth (1) NA NA NA NA NA
Alterra / Brookdale 98% 98% 98% 98% 98%
Genesis HealthCare Corporation 17% 17% 20% 23% 23%
5 Private Companies (combined) 26% 24% 24% 27% 24%
<FN>
(1) In March 2006, HealthSouth filed late an Annual Report on Form 10K for the period ending December 31,
2005. The financial and operating data included in HealthSouth's Form 10-K show a substantial negative
net worth and a history of substantial operating losses. Also, HealthSouth's management identified
several material weaknesses in its internal control over financial reporting and stated that it did not
maintain effective internal control over financial reporting as of December 31, 2005. Because we do not
have reliable current information about the operations or financial performance of HealthSouth or our
hospitals, we do not show operating data for this operator. See also Note 1 on page 11 regarding our
litigation with HealthSouth.
(2) Includes data for periods prior to our ownership of certain properties included in this lease.
</FN>
All tenant operating data presented are based upon the operating results
provided by our tenants for the indicated quarterly periods, or the most
recent prior period for which tenant operating results are available to us
from our tenants. We have not independently verified our tenants' operating
data.
23
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
RENT COVERAGE BY TENANT
- ----------------------------------------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------
Tenant 3/31/2006 12/31/2005 9/30/2005 6/30/2005 3/31/2005
- -------------------------------- ---------- ----------- ----------- ----------- -----------
Five Star / Sunrise (1) 1.33x 1.27x 1.37x 1.43x 1.41x
Five Star (2) 1.49x 1.78x 1.77x 1.68x 1.77x
Sunrise / Marriott 1.26x 1.25x 1.27x 1.25x 1.25x
NewSeasons / IBC 1.16x 1.10x 1.17x 1.10x 1.11x
HealthSouth (3) NA NA NA NA NA
Alterra / Brookdale 2.04x 1.98x 1.87x 1.80x 1.63x
Genesis HealthCare Corporation 1.77x 2.16x 1.82x 2.03x 1.71x
5 Private companies (combined) 1.56x 1.92x 1.86x 1.65x 1.87x
<FN>
(1) These 30 properties are leased to Five Star and 17 were managed by Sunrise Senior Living, Inc.,
or Sunrise, at March 31, 2006. As of March 31, 2006, Five Star operated 13 of these 30 properties
and intends to begin operating 10 additional properties during the second quarter of 2006.
Sunrise does not guaranty Five Star's lease obligations. The rent that Five Star pays to us is
subordinate to the management fees that Five Star pays to Sunrise, but is not subordinate to Five
Star's internal management costs. The rent coverage presented for this lease has been adjusted to
exclude management fees paid to Sunrise during the periods presented for the 23 properties that
Five Star currently manages and expects to manage in the second quarter of 2006.
(2) Includes data for periods prior to our ownership of certain properties included in this lease.
(3) In March 2006, HealthSouth filed late an Annual Report on Form 10K for the period ending December
31, 2005. The financial and operating data included in HealthSouth's Form 10-K show a substantial
negative net worth and a history of substantial operating losses. Also, HealthSouth's management
identified several material weaknesses in its internal control over financial reporting and
stated that it did not maintain effective internal control over financial reporting as of
December 31, 2005. Because we do not have reliable current information about the operations or
financial performance of HealthSouth or our hospitals, we do not show operating data for this
operator. See also Note 1 on page 11 regarding our litigation with HealthSouth.
</FN>
All tenant operating data presented are based upon the operating results
provided by our tenants for the indicated periods, or the most recent prior
period for which tenant operating results are available to us from our
tenants. 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.
24
Senior Housing Properties Trust
Supplemental Operating and Financial Data
March 31, 2006
PORTFOLIO LEASE EXPIRATION SCHEDULE (1)
- --------------------------------------------------------------------------------
(dollars in thousands)
Cumulative % of
Annualized % of Annualized Annualized
Current Rent Current Rent Current Rent
-------------------------------------------------------
2006 $ -- $ - 0.0%
2007 -- - 0.0%
2008 -- - 0.0%
2009 -- - 0.0%
2010 1,269 0.8% 0.8%
2011 -- - 0.8%
2012 -- - 0.8%
2013 32,162 20.3% 21.1%
2014 -- - 21.1%
2015 2,006 1.3% 22.4%
2016 and thereafter 122,691 77.6% 100.0%
----------- ----------
Total $ 158,128 100.0%
=========== ==========
Weighted average remaining
lease term (in years) 11.5
(1) Excludes the two hospitals operated by HealthSouth. See Note 1 on page 11.
25