-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QMLfC2iPY3WJIvsLtyTHmtZnRQdkX8EMu7hcx+FzDN3Bocn4wewrkYRxRNRxMiRS H0w12Rpol1Sa2SUzssokCg== 0000908737-07-000285.txt : 20070730 0000908737-07-000285.hdr.sgml : 20070730 20070730121223 ACCESSION NUMBER: 0000908737-07-000285 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20070730 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070730 DATE AS OF CHANGE: 20070730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENIOR HOUSING PROPERTIES TRUST CENTRAL INDEX KEY: 0001075415 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 043445278 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15319 FILM NUMBER: 071008682 BUSINESS ADDRESS: STREET 1: 400 CENTRE STREET CITY: NEWTON STATE: MA ZIP: 02458 BUSINESS PHONE: 6173323990 8-K 1 snh_8k.htm 8K snh_8k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): July 30, 2007 (July 30, 2007)

SENIOR HOUSING PROPERTIES TRUST

Maryland
001-15319
04-3445278
(State of organization)
(Commission file number)
(I.R.S. Employer Identification Number)
 
 
400 Centre Street, Newton, Massachusetts 02458

 
617-796-8350
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 

 
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 30, 2007, Senior Housing Properties Trust, or the Company, issued a press release setting forth the Company’s results of operations and financial condition for the quarter and six months ended June 30, 2007 and also provided certain supplemental operating and financial data for the quarter and six months ended June 30, 2007. Copies of the Company’s press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.


ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

 (d)           Exhibits

 The Company hereby furnishes the following exhibits:

 99.1         Press Release dated July 30, 2007.

 99.2         Second Quarter 2007 Supplemental Operating and Financial Data.





 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
SENIOR HOUSING PROPERTIES TRUST
 
By: /s/ Richard A. Doyle
   
Richard A. Doyle
Treasurer and Chief Financial Officer
 
Date: July 30, 2007
 
 
 
EX-99.1 2 ex99-1.htm EX 99-1 ex99-1.htm
400 Centre Street, Newton, MA 02458-2076
 
tel: (617) 796-8350 fax: (617) 796-8349
Exhibit 99.1

 
FOR IMMEDIATE RELEASE
  
 
 
Contact:
 
Timothy Bonang
 
Manager of Investor Relations
 
(617) 796-8350
 
www.snhreit.com


Senior Housing Properties Trust Announces Results for the Periods Ended June 30, 2007
 
    Newton, MA  (July 30, 2007):  Senior Housing Properties Trust (NYSE: SNH) today announced its financial results for the quarter and six months ended June 30, 2007, as follows:

Results for the quarter ended June 30, 2007:

Net income for the quarter ended June 30, 2007, was $20.6 million, or $0.25 per share, compared to net income of $12.7 million, or $0.18 per share, for the quarter ended June 30, 2006. During the three months ended June 30, 2006, we recognized (1) an impairment of assets charge of $1.4 million, or $0.02 per share, related to three properties that we later sold during the fourth quarter of 2006 and (2) a loss on early extinguishment of debt of $1.3 million, or $0.02 per share, related to the $28.2 million redemption of all of SNH’s 10.125% junior subordinated debentures.

Funds from operations (FFO) for the quarter ended June 30, 2007, was $34.0 million, or $0.41 per share. This compares to FFO for the quarter ended June 30, 2006 of $27.8 million, or $0.39 per share.

The weighted average number of common shares outstanding totaled 83.6 million and 71.8 million for the quarters ended June 30, 2007 and 2006, respectively.

Results for the six months ended June 30, 2007:

Net income for the six months ended June 30, 2007, was $38.2 million, or $0.46 per share, compared to net income of $23.1 million, or $0.32 per share, for the six months ended June 30, 2006. Net income for the six months ended June 30, 2007, includes a loss on early extinguishment of debt of $2.0 million, or $0.02 per share, related to the purchase and retirement of $20.0 million of SNH’s 8 5/8% senior notes due 2012. Net income for the same period in 2006 includes (1) an impairment of assets charge of $1.4 million, or $0.02 per share, related to three properties that we later sold during the fourth quarter of 2006, (2) a loss on early extinguishment of debt of $1.3 million, or $0.02 per share, related to the $28.2 million redemption of all of SNH’s 10.125% junior subordinated debentures and (3) a loss on early extinguishment of debt of $5.2 million, or $0.07 per share, related to the $52.5 million redemption of SNH’s 7 7/8% senior notes due 2015.

FFO for the six months ended June 30, 2007, was $65.0 million, or $0.79 per share. FFO includes a loss on early extinguishment of debt paid in cash of $1.8 million, or $0.02 per share, related to the purchase and retirement of the senior notes due 2012 described above. This compares to FFO for the six months ended June 30, 2006 of $51.3 million, or $0.72 per share. FFO for the six months ended June 30, 2006, includes a $4.1 million, or $ 0.06 per share, loss for the cash premium paid for partial redemption of the senior notes due 2015 described above.

The weighted average number of common shares outstanding totaled 82.2 million and 71.8 million for the six months ended June 30, 2007 and 2006, respectively.
 
 
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

1 of 4

A reconciliation of FFO to net income determined according to U.S. generally accepted accounting principles, or GAAP, is set forth below.

Conference Call:
 
On Monday, July 30, 2007, at 1:00 p.m. EST, David J. Hegarty, president and chief operating officer, and Richard A. Doyle, treasurer and chief financial officer, will host a conference call to discuss the results for the second quarter ended June 30, 2007.  The conference call telephone number is 1-888-202-2422. Participants calling from outside the United States and Canada should dial 1-913-981-5592. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through midnight Sunday, August 5th, 2007. To hear the replay, dial 1-719-457-0820. The replay pass code is 6569134.

A live audio web cast of the conference call will also be available in listen only mode on the SNH web site. Participants wanting to access the webcast should visit the web site about five minutes before the call. The archived webcast will be available for replay on the SNH web site for about one week after the call.

 
Supplemental Data:
 
A copy of SNH’s Second Quarter 2007 Supplemental Operating and Financial Data is available for download from the SNH website, www.snhreit.com.
 
Senior Housing Properties Trust is a real estate investment trust, or REIT, that owns 196 senior living properties located in 32 states.  SNH is headquartered in Newton, Massachusetts.
 
 
 
 
 
 
 
 
 
 
 
 

 
2 of 4
Senior Housing Properties Trust
Financial Information
(in thousands, except per share data)

Income Statement:
 
   
Quarter Ended June 30,
    
Six Months Ended June 30,
  
   
2007
    
2006
    
2007
    
2006
  
Revenues:
                        
Rental income
   $
44,406
     $
40,921
     $
88,708
     $
81,744
  
Interest and other income
    
556
      
355
      
1,006
      
701
  
     Total revenues
    
44,962
      
41,276
      
89,714
      
82,445
  
Expenses:
                                
Interest
    
9,160
      
11,546
      
19,053
      
22,917
  
Depreciation
    
11,704
      
10,922
      
23,299
      
21,653
  
General and administrative
    
3,449
      
3,383
      
7,165
      
6,783
  
Impairment of assets(1)
    
-
      
1,420
      
-
      
1,420
  
Loss on early extinguishment of debt(2)
    
-
      
1,319
      
2,026
      
6,526
  
Total expenses
    
24,313
      
28,590
      
51,543
      
59,299
  
Net income
   $
20,649
     $
12,686
     $
38,171
     $
23,146
  
                                 
Weighted average shares outstanding
    
83,649
      
71,817
      
82,240
      
71,814
  
Per share data:
                                
Net income
   $
0.25
     $
0.18
     $
0.46
     $
0.32
  

Balance Sheet:
 
   
At June 30, 2007
    
At December 31, 2006
  
Assets
            
Real estate properties
   $
1,831,525
     $
1,814,358
  
Less accumulated depreciation
    
299,806
      
276,507
  
     
1,531,719
      
1,537,851
  
Cash and cash equivalents
    
8,924
      
5,464
  
Restricted cash
    
2,478
      
2,435
  
Investments in trading securities
    
10,153
      
-
  
Deferred financing fees, net
    
6,949
      
8,173
  
Other assets
    
24,408
      
30,851
  
  Total assets
   $
1,584,631
     $
1,584,774
  
 
Liabilities and Shareholders’ Equity
            
Unsecured revolving credit facility
   $
-
     $
112,000
  
Senior unsecured notes, net of discount
    
321,801
      
341,673
  
Secured debt and capital leases
    
90,559
      
91,412
  
  Total debt
    
412,360
      
545,085
  
Other liabilities
    
18,894
      
20,223
  
  Total liabilities
    
431,254
      
565,308
  
Shareholders’ equity
    
1,153,377
      
1,019,466
  
  Total liabilities and shareholders’ equity
   $
1,584,631
     $
1,584,774
  

(1)
During the three months ended June 30, 2006, we recognized an impairment of assets charge of $1.4 million related to three properties that were sold during the fourth quarter of 2006.
 
(2)
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.  In June 2006, we redeemed all of our $28.2 million of 10.125% junior subordinated debentures; the loss on early extinguishment of debt of $1.3 million is the write off of unamortized deferred financing fees related to these debentures. In January 2006, we redeemed $52.5 million of our 7 7/8% senior unsecured notes and paid a $4.1 million redemption premium and wrote off $1.1 million of deferred financing fees and unamortized discount related to these senior notes.
 
3 of 4

Senior Housing Properties Trust
Funds from Operations
(in thousands, except per share data)
 

Calculation of Funds from Operations (FFO) (1):

 
   
Quarter Ended June 30,
    
Six Months Ended June 30,
   
2007
    
2006
    
2007
    
2006
Net income
   $
20,649
     $
12,686
     $
38,171
     $
23,146
  
Add: Depreciation expense
    
11,704
      
10,922
      
23,299
      
21,653
  
Impairment of assets
    
-
      
1,420
      
-
      
1,420
  
Loss on early extinguishment of debt
    
-
      
1,319
      
2,026
      
6,526
  
Deferred percentage rent (2)
    
1,661
      
1,478
      
3,261
      
2,737
  
Less: Loss on early extinguishment of debt settled in cash (3)
    
-
      
-
       (1,750 )     (4,134 )
FFO
   $
34,014
     $
27,825
     $
65,007
     $
51,348
  
                             
Weighted average shares outstanding
    
83,649
      
71,817
      
82,240
      
71,814
  
                             
FFO per share
   $
0.41
     $
0.39
     $
0.79
     $
0.72
  
Distributions declared
   $
0.34
     $
0.33
     $
0.68
     $
0.65
  

 

 
(1)
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.  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 footnote (2) below 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 real estate investment trust, or 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 comparison of current operating performance among REITs.  FFO does not represent cash generated by operating activities in accordance with U.S. generally accepted accounting principles, 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.  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.
 
(2)
Our percentage rents are generally calculated on an annual basis. We recognize percentage rental income received during the first, second and third quarters in the fourth quarter when all contingencies related to percentage rents are satisfied.  Although recognition of revenue is deferred until the fourth quarter, our FFO calculation for the first three quarters includes estimated amounts of deferred percentage rents with respect to those periods. The fourth quarter calculation of FFO excludes the amounts recognized during the first three quarters.
 
(3)
FFO for the six months ended June 30, 2007, includes a $1.8 million loss for the cash premium paid for our retirement of $20.0 million of our 8 5/8% senior notes due 2012.  FFO of the six months ended June 30, 2006, includes a $4.1 million loss for the cash premium paid for our redemption of $52.5 million of our 7 7/8% senior notes due 2015.
 

(END)
 
 
  4 of 4
EX-99.1 3 ex99-2.htm EX 99-2 ex99-2.htm
Exhibit 99.2
 
 
SENIOR HOUSING PROPERTIES TRUST
 
Second Quarter 2007
 
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
 
2007 Investments/Dispositions Information
17
 
2007 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

 
CORPORATE INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
June 30, 2007
 
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, nursing homes and hospitals 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 real estate management company which was founded in 1986 to manage public investments in real estate. As of June 30, 2007, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including over 1,270 properties, with 300 million square feet, located in 44 states, Washington, DC, Puerto Rico and Ontario, Canada. RMR has over 460 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 and travel centers, HRPT Properties Trust, a publicly traded REIT that primarily owns office buildings, and six 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 $16 billion as of June 30, 2007. 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 and assisted living properties, continuing care retirement communities 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 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. 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 2016.
 
Stock Exchange Listing:
 
New York Stock Exchange
 
Corporate Headquarters:
 
400 Centre Street
Newton, MA 02458
(t) (617) 796-8350
(f) (617) 796-8349
 
Trading Symbol:
 
Common Shares -- SNH 
 
Senior Unsecured Debt Ratings:
 
Moody's -- Ba2
Standard & Poor's -- BB+
 
Portfolio Data (as of 6/30/07):
 
Total properties
196
 
Total units / beds
23,981
 
Percent of rent from private pay properties
84.6%
(1)
 
Portfolio Concentration by Facility Type (as of 6/30/07):
                          
   
Number of
    
Number of
    
Carrying Value of
          
Annualized
        
   
Properties
    
Units/Beds
    
Investment (2)
    
Percent
    
Current Rent
    
Percent
  
 Independent Living (IL) (3)
    
41
      
11,213
     $
1,012,139
       55.2 %   $
98,921
       54.5 %
 Assisted Living (AL)
    
95
      
6,535
      
556,026
       30.4 %    
54,661
       30.1 %
 Nursing Homes
    
58
      
5,869
      
219,807
       12.0 %    
17,521
       9.7 %
 Rehabilitation Hospitals
    
2
      
364
      
43,553
       2.4 %    
10,250
       5.7 %
     Total
    
196
      
23,981
     $
1,831,525
       100.0 %   $
181,353
       100.0 %
 
 
 Operating Statistics by Tenant:
                    
Q1 2007      
  
   
Number of
    
Number of
    
Annualized
    
Rent
          
Percent
  
 Tenant
  
Properties
    
Units/Beds
    
Current Rent
    
Coverage (4)
    
Occupancy (4)
    
Private Pay (4)
  
Five Star (Lease No. 1)
    
114
      
9,344
     $
50,125
      
1.29x
      
88%
      
54%
  
Five Star (Lease No. 2)
    
30
      
7,275
      
65,703
      
1.45x
      
92%
      
80%
  
Five Star Rehabilitation Hospitals
    
2
      
364
      
10,250
      
0.98x
      
61%
      
32%
  
Sunrise / Marriott (5)
    
14
      
4,091
      
31,490
    
NA
    
NA
    
NA
  
NewSeasons / IBC (6)
    
10
      
873
      
9,289
      
1.06x
      
83%
      
100%
  
Alterra / Brookdale (7)
    
18
      
894
      
7,740
      
2.03x
      
87%
      
98%
  
Genesis HealthCare Corporation
    
1
      
156
      
1,535
      
2.29x
      
98%
      
25%
  
5 Private Companies (combined)
    
7
      
984
      
5,221
      
1.55x
      
86%
      
25%
  
     Total
    
196
      
23,981
     $
181,353
                          
 
 
(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.  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)
Marriott International, Inc., or Marriott, guarantees this lease.  Sunrise has not filed its Annual Reports on Form 10-K for 2005 and 2006, and Quarterly Reports on Form 10-Q for the three quarters of 2006 and first quarter of 2007 with the Securities and Exchange Commission 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.
(6)
Independence Blue Cross, or IBC, a Pennsylvania health insurer, guarantees this lease.
(7)
Brookdale Senior Living, Inc., or Brookdale, guarantees this lease.
 
 
4
 
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
June 30, 2007

INVESTOR INFORMATION
   
   
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
400 Centre Street
Newton, MA 02458
(t) (617) 796-8350
(f) (617) 796-8349
(email) info@snhreit.com
(website) www.snhreit.com
Financial inquiries should be directed to Richard A. Doyle,
Treasurer and Chief Financial Officer, at (617) 219-1405
or rdoyle@snhreit.com.
 
Investor and media inquiries should be directed to
Timothy A. Bonang, Manager of Investor Relations, at
(617) 796-8149 or tbonang@snhreit.com.
 
 
 
5
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
June 30, 2007
 
RESEARCH COVERAGE
   
Equity Research Coverage
   
Cantor Fitzgerald
RBC
Philip Martin
Mike Salinsky
(312) 469-7485
(216) 378-7627
   
Merrill Lynch
Stifel, Nicolaus
Chris Pike
Jerry Doctrow
(212) 449-1153
(410) 454-5142
   
Raymond James
UBS
Paul Puryear
Omotayo Okusanya
(727) 573-3800
(212) 713-1864
   
 
  
   
Debt Research Coverage
   
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Dan Sullivan
 
(704) 383-6441
 
   
   
Rating Agencies
   
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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

 
FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
   
 KEY FINANCIAL DATA
  
(share amounts and dollars in thousands, except per share data)
  
                               
   
As of and For the Three Months Ended      
  
   
6/30/2007
    
3/31/2007
    
12/31/2006
    
9/30/2006
    
6/30/2006
  
                               
 Shares Outstanding:
                              
 Common shares outstanding (at end of period)
    
83,654
      
83,646
      
77,613
      
71,860
      
71,820
  
 Weighted average common shares outstanding - basic and diluted (1)
    
83,649
      
80,815
      
74,641
      
71,824
      
71,817
  
                                         
 Common Share Data:
                                        
 Price at end of period
   $
20.35
     $
23.90
     $
24.48
     $
21.34
     $
17.91
  
 High during period
   $
24.83
     $
26.75
     $
24.60
     $
21.98
     $
18.18
  
 Low during period
   $
20.10
     $
21.79
     $
20.50
     $
17.61
     $
16.56
  
 Annualized dividends paid per share
   $
1.36
     $
1.36
     $
1.32
     $
1.32
     $
1.32
  
 Annualized dividend yield (at end of period)
     6.7 %     5.7 %     5.4 %     6.2 %     7.4 %
                                         
 Market Capitalization:
                                        
 Total debt (book value)
   $
412,360
     $
412,742
     $
545,085
     $
642,475
     $
561,763
  
 Plus: market value of common shares (at end of period)
    
1,702,359
      
1,999,139
      
1,899,966
      
1,533,492
      
1,286,296
  
 Total market capitalization
   $
2,114,719
     $
2,411,881
     $
2,445,051
     $
2,175,967
     $
1,848,059
  
 Total debt / total market capitalization
     19.5 %     17.1 %     22.3 %     29.5 %     30.4 %
                                         
 Book Capitalization:
                                        
 Total debt
   $
412,360
     $
412,742
     $
545,085
     $
642,475
     $
561,763
  
 Plus:  total shareholders' equity
    
1,153,377
      
1,163,023
      
1,019,466
      
894,433
      
901,824
  
 Total book capitalization
   $
1,565,737
     $
1,575,765
     $
1,564,551
     $
1,536,908
     $
1,463,587
  
 Total debt / total book capitalization
     26.3 %     26.2 %     34.8 %     41.8 %     38.4 %
                                         
 Selected Balance Sheet Data:
                                        
 Total assets
   $
1,584,631
     $
1,590,932
     $
1,584,774
     $
1,559,745
     $
1,490,557
  
 Total liabilities
   $
431,254
     $
427,909
     $
565,308
     $
665,312
     $
588,733
  
 Gross book value of real estate assets (2)
   $
1,831,525
     $
1,824,002
     $
1,814,358
     $
1,767,047
     $
1,699,202
  
 Total debt / gross book value of real estate assets (2)
     22.5 %     22.6 %     30.0 %     36.4 %     33.1 %
                                         
 Selected Income Statement Data:
                                        
 Total revenues (3)
   $
44,962
     $
44,752
     $
55,045
     $
42,317
     $
41,276
  
 EBITDA (4)
   $
43,174
     $
42,636
     $
47,254
     $
39,492
     $
39,371
  
 Income from continuing operations
   $
20,649
     $
17,522
     $
27,558
     $
15,418
     $
12,686
  
 Net income
   $
20,649
     $
17,522
     $
27,537
     $
15,418
     $
12,686
  
 Funds from operations (FFO) (5)
   $
34,014
     $
30,993
     $
34,985
     $
27,659
     $
27,825
  
 Common distributions paid
   $
28,442
     $
28,440
     $
25,612
     $
23,714
     $
23,701
  
                                         
 Per Share Data:
                                        
 Income from continuing operations
   $
0.25
     $
0.22
     $
0.37
     $
0.21
     $
0.18
  
 Net income
   $
0.25
     $
0.22
     $
0.37
     $
0.21
     $
0.18
  
 FFO (5)
   $
0.41
     $
0.38
     $
0.47
     $
0.39
     $
0.39
  
 Common distributions paid
   $
0.34
     $
0.34
     $
0.33
     $
0.33
     $
0.32
  
 FFO payout ratio (5)
     83.6 %     88.7 %     70.2 %     84.6 %     82.1 %
                                         
 Coverage Ratios:
                                        
 EBITDA (3) / interest expense
    
4.7x
      
4.3x
      
3.9x
      
3.3x
      
3.4x
  
 
(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.
(3)
During the fourth quarter of 2006, we recognized $5.7 million of additional rent from HealthSouth Corporation, or HealthSouth, and $5.3 million of percentage rent as income for the year ended December 31, 2006.
(4)
See page 12 for calculation of EBITDA.
(5)
See page 13 for calculation of FFO.  As a result of a litigation settlement with HealthSouth, HealthSouth paid us additional rent of $5.7 million, or $0.08 per share, which we recognized as rental income in the fourth quarter of 2006.

 
8
 
 
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
 June 30, 2007
  
   
CONSOLIDATED BALANCE SHEET
  
(in thousands, except share data)
  
               
     
As of 
June 30, 2007
    
As of 
December 31, 2006
  
           
(audited)
  
 ASSETS
              
        Real estate properties, at cost:
            
 
 Land
   $
198,883
     $
198,887
  
 
 Buildings and improvements
    
1,632,642
      
1,615,471
  
       
1,831,525
      
1,814,358
  
 
 Less accumulated depreciation
    
299,806
      
276,507
  
       
1,531,719
      
1,537,851
  
                   
        Cash and cash equivalents
    
8,924
      
5,464
  
        Restricted cash
    
2,478
      
2,435
  
        Investments in trading securities
    
10,153
      
-
  
        Deferred financing fees, net
    
6,949
      
8,173
  
        Other assets
    
24,408
      
30,851
  
        Total assets
   $
1,584,631
     $
1,584,774
  
                   
 LIABILITIES AND SHAREHOLDERS' EQUITY
                
        Unsecured revolving credit facility
   $
-
     $
112,000
  
        Senior unsecured notes due 2012 and 2015, net of discount
    
321,801
      
341,673
  
        Secured debt and capital leases
    
90,559
      
91,412
  
        Accrued interest
    
10,722
      
11,694
  
        Other liabilities
    
8,172
      
8,529
  
        Total liabilities
    
431,254
      
565,308
  
                   
        Commitments and contingencies
                
                   
        Shareholders' equity:
                
 
 Common shares of beneficial interest, $0.01 par value:
                
 
 86,700,000 shares authorized; 83,653,912 and 77,613,127 shares issued
                
 
 and outstanding, respectively
    
837
      
776
  
 
 Additional paid-in capital
    
1,367,431
      
1,214,863
  
 
 Cumulative net income
    
376,675
      
338,504
  
 
 Cumulative distributions
     (595,491 )     (540,663 )
 
 Unrealized gain on investments
    
3,925
      
5,986
  
 
 Total shareholders' equity
    
1,153,377
      
1,019,466
  
        Total liabilities and shareholders' equity
   $
1,584,631
     $
1,584,774
  
                   
 
 
 
9
 
 Senior Housing Properties Trust
  
 Supplemental Operating and Financial Data
  
 June 30, 2007
  
   
 CONSOLIDATED STATEMENT OF INCOME
  
 (in thousands, except per share data)
  
                         
   
For the Three Months Ended
    
For the Six Months Ended
  
   
6/30/2007
    
6/30/2006
    
6/30/2007
    
6/30/2006
  
 Revenues:
                        
 Rental income
   $
44,406
     $
40,921
     $
88,708
     $
81,744
  
 Interest and other income
    
556
      
355
      
1,006
      
701
  
 Total revenues
    
44,962
      
41,276
      
89,714
      
82,445
  
                                 
 Expenses:
                                
 Interest
    
9,160
      
11,546
      
19,053
      
22,917
  
 Depreciation
    
11,704
      
10,922
      
23,299
      
21,653
  
 General and administrative
    
3,449
      
3,383
      
7,165
      
6,783
  
 Impairment of assets (1)
    
-
      
1,420
      
-
      
1,420
  
 Loss on early extinguishment of debt (2)
    
-
      
1,319
      
2,026
      
6,526
  
 Total expenses
    
24,313
      
28,590
      
51,543
      
59,299
  
                                 
 Net income
   $
20,649
     $
12,686
     $
38,171
     $
23,146
  
                                 
 Weighted average common shares outstanding
    
83,649
      
71,817
      
82,240
      
71,814
  
                                 
 Basic and diluted earnings per share:
                                
 Net income
   $
0.25
     $
0.18
     $
0.46
     $
0.32
  
                                 
                                 
 Additional Data:
                                
 Straight-line rent included in rental income (3)
   $
107
     $
56
     $
249
     $
112
  
 Deferred percentage rent (4)
   $
1,661
     $
1,478
     $
3,261
     $
2,737
  
 
(1)
During the three months ended June 30, 2006, we recognized an impairment of assets charge of $1.4 million related to three properties that were sold during the fourth quarter of 2006.
   
(2)
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.  In June 2006, we redeemed all of our $28.2 million of 10.125% junior subordinated debentures; the loss on early extinguishment of debt is the write off of unamortized deferred financing fees related to these debentures.  In January 2006, we redeemed $52.5 million of our 7 7/8% senior unsecured notes due 2015 and paid a $4.1 million redemption premium and wrote off $1.1 million of deferred financing fees and unamortized discount related to these senior notes.
   
(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.
   
(4)
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 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
 
 June 30, 2007
  
   
 CONSOLIDATED STATEMENT OF CASH FLOWS
  
 (in thousands)
  
             
   
For the Six Months Ended
  
   
6/30/2007
    
6/30/2006
  
 Cash flows from operating activities:
            
      Net income
   $
38,171
     $
23,146
  
 Adjustments to reconcile net income to cash provided by operating activities:
                
 Depreciation
    
23,299
      
21,653
  
 Impairment of assets
    
-
      
1,420
  
 Loss on early extinguishment of debt
    
2,026
      
6,526
  
 Amortization of deferred financing fees and debt discounts
    
1,084
      
909
  
 Change in assets and liabilities:
                
 Restricted cash
     (43 )    
382
  
 Investments in trading securities
     (10,153 )    
-
  
 Other assets
    
5,228
       (6,037 )
 Accrued interest
     (972 )     (841 )
 Other liabilities
     (252 )    
6,806
  
 Cash provided by operating activities
    
58,388
      
53,964
  
                 
 Cash flows used for investing activities:
                
      Acquisitions
     (17,167 )     (11,076 )
 Cash used for investing activities
     (17,167 )     (11,076 )
                 
 Cash flows from financing activities:
                
 Proceeds from issuance of common shares, net
    
151,670
      
-
  
 Proceeds from borrowings on revolving credit facility
    
22,000
      
90,000
  
 Repayments of borrowings on revolving credit facility
     (134,000 )     (13,000 )
 Redemption of senior notes
     (21,750 )     (56,634 )
 Repayment of junior subordinated debentures
    
-
       (28,241 )
 Repayment of other debt
     (853 )     (948 )
 Distributions to shareholders
     (54,828 )     (45,960 )
 Cash used for financing activities
     (37,761 )     (54,783 )
                 
 Increase (decrease) in cash and cash equivalents
    
3,460
       (11,895 )
 Cash and cash equivalents at beginning of period
    
5,464
      
14,642
  
 Cash and cash equivalents at end of period
   $
8,924
     $
2,747
  
                 
 Supplemental cash flow information:
                
      Interest paid
   $
18,942
     $
22,850
  
                 
 Non-cash financing activities:
                
 Increase in capital lease assets
   $
-
     $ (9,975 )
                 
 Non-cash financing activities:
                
 Increase in capital lease obligations
   $
-
     $
9,975
  
 Issuance of common shares
   $
959
     $
132
  
 
 
11
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
 June 30, 2007
  
   
CALCULATION OF EBITDA
  
(dollars in thousands)
  
                           
     
For the Three Months Ended
    
For the Six Months Ended
  
     
6/30/2007
    
6/30/2006
    
6/30/2007
    
6/30/2006
  
                           
Net Income
   $
20,649
     $
12,686
     $
38,171
     $
23,146
  
Plus:
interest expense
    
9,160
      
11,546
      
19,053
      
22,917
  
 
depreciation expense
    
11,704
      
10,922
      
23,299
      
21,653
  
 
impairment of assets
    
-
      
1,420
      
-
      
1,420
  
 
loss on early extinguishment of debt (1)
    
-
      
1,319
      
2,026
      
6,526
  
 
deferred percentage rent adjustment (2)
    
1,661
      
1,478
      
3,261
      
2,737
  
EBITDA
   $
43,174
     $
39,371
     $
85,810
     $
78,399
  
 
 
(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.  In June 2006, we redeemed all of our $28.2 million of 10.125% junior subordinated debentures; the loss on early extinguishment of debt is the write off of unamortized deferred financing fees related to these debentures.  In January 2006, we redeemed $52.5 million of our 7 7/8% senior unsecured notes due 2015 and paid a $4.1 million redemption premium and wrote off $1.1 million 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 of revenue is deferred until the fourth quarter, our EBITDA calculation 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.  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.
 
 
12
 
Senior Housing Properties Trust
Supplemental Operating and Financial Data
June 30, 2007
 
CALCULATION OF FUNDS FROM OPERATIONS (FFO)
  
(amounts in thousands, except per share data)
  
                               
     
For the Three Months Ended
  
For the Six Months Ended
  
     
6/30/2007
    
6/30/2006
      
6/30/2007
      
6/30/2006
  
                               
Net Income
   $
20,649
     $
12,686
       $
38,171
       $
23,146
  
Plus:
depreciation expense
    
11,704
      
10,922
        
23,299
        
21,653
  
 
impairment of assets
    
-
      
1,420
        
-
        
1,420
  
 
loss on early extinguishment of debt
    
-
      
1,319
        
2,026
        
6,526
  
 
deferred percentage rent adjustment (1)
    
1,661
      
1,478
        
3,261
        
2,737
  
Less:
loss on early extinguishment of debt settled in cash (2)
    
-
      
-
         (1,750 )       (4,134 )
FFO
   $
34,014
     $
27,825
       $
65,007
       $
51,348
  
                                       
Weighted average shares outstanding
    
83,649
      
71,817
        
82,240
        
71,814
  
                                       
Net Income per share
   $
0.25
     $
0.18
       $
0.46
       $
0.32
  
FFO per share
   $
0.41
     $
0.39
       $
0.79
       $
0.72
  
                                       
Supplemental data:
                                    
Straight-line rent included in rental income (3)
   $
107
     $
56
  
 
   $
249
  
 
   $
112
  
Amortization of deferred financing fees and debt discounts
   $
542
     $
454
       $
1,084
       $
909
  
 
(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 includes estimated amounts of deferred percentage rents with respect to those periods. The fourth quarter calculation of FFO excludes the amounts recognized during the first three quarters.
   
(2)
FFO for the six months ended June 30, 2007, includes a $1.8 million premium paid in cash related to the purchase and retirement of $20 million of our 8 5/8% senior notes due 2012.  FFO for the six months ended June 30, 2006, includes a $4.1 million premium paid in cash for our redemption of $52.5 million of our 7 7/8%  senior notes due 2015.
   
(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.  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 as discussed in Note 1 above, and exclude loss on early extinguishment of debt not settled in cash.  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 performances 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
 
 June 30, 2007
  
   
 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
      
20.4
  
 Mortgage - secured by 16 properties (1)
     6.970 %     6.330 %    
35,342
  
6/2/12
    
30,069
      
4.9
  
 Mortgage - secured by 4 properties (1)
     6.110 %     6.420 %    
12,097
  
11/30/13
    
10,218
      
6.4
  
 Mortgage - secured by 1 properties (1)
     7.150 %     6.440 %    
12,756
  
6/30/08
    
11,877
      
1.0
  
 Capital leases - 2 properties
     7.700 %     7.700 %    
15,664
  
4/30/26
    
-
      
18.8
  
     Total / weighted average secured fixed rate debt
     6.829 %     6.521 %   $
90,559
       $
66,864
      
9.5
  
                                           
Unsecured Debt:
                                          
                                           
Unsecured Floating Rate Debt:
                                          
 Revolving credit facility (LIBOR + 80 b.p.)
     6.12 %     6.12 %   $
-
  
12/31/10
   $
-
      
3.5
  
                                           
Unsecured Fixed Rate Debt:
                                          
 Senior notes due 2012
     8.625 %     8.625 %   $
225,000
  
1/15/12
   $
225,000
      
4.5
  
 Senior notes due 2015
     7.875 %     7.875 %    
97,500
  
4/15/15
    
97,500
      
7.8
  
     Total / weighted average unsecured fixed rate debt
     8.398 %     8.398 %   $
322,500
       $
322,500
      
5.5
  
                                           
     Total / weighted average unsecured debt
     8.398 %     8.398 %   $
322,500
       $
322,500
      
5.5
  
                                           
     Total / weighted average debt
     8.054 %     7.985 %   $
413,059
       $
389,364
      
6.4
  
                                           
                                           
Summary Debt:
                                          
 Total / weighted average secured debt fixed rate debt
     6.829 %     6.521 %   $
90,559
       $
66,864
      
9.5
  
 Total / weighted average unsecured floating rate debt
     6.120 %     6.120 %    
-
        
-
      
3.5
  
 Total / weighted average unsecured fixed rate debt
     8.398 %     8.398 %    
322,500
        
322,500
      
5.5
  
 Total / weighted average debt
     8.054 %     7.987 %   $
413,059
       $
389,364
      
6.4
  
 
(1)           Includes the effect of mark to market accounting for certain assumed mortgages.
 
 
 
 
 
14
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
 June 30, 2007
  
   
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
  
2007
   $
1,165
     $
-
     $
-
     $
1,165
  
2008
    
13,595
      
-
      
-
      
13,595
  
2009
    
1,605
      
-
      
-
      
1,605
  
2010
    
1,714
      
-
      
-
      
1,714
  
2011
    
1,829
      
-
      
-
      
1,829
  
2012
    
31,418
      
-
      
225,000
      
256,418
  
2013
    
11,016
      
-
      
-
      
11,016
  
2014
    
544
      
-
      
-
      
544
  
2015
    
614
      
-
      
97,500
      
98,114
  
2016 and thereafter
    
27,059
      
-
      
-
      
27,059
  
    $
90,559
     $
-
     $
322,500
     $
413,059
  
 
 
 
 
15
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
 June 30, 2007
  
   
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS
  
                               
   
As Of And For The Three Months Ended      
  
   
6/30/2007
    
3/31/2007
    
12/31/2006
    
9/30/2006
    
6/30/2006
  
 Leverage Ratios:
                              
                               
 Total debt / total assets
     26.0 %     25.9 %     34.4 %     41.2 %     37.7 %
 Total debt / gross book value of real estate assets (1)
     22.5 %     22.6 %     30.0 %     36.4 %     33.1 %
 Total debt / total market capitalization
     19.5 %     17.1 %     22.3 %     29.5 %     30.4 %
 Total debt / total book capitalization
     26.3 %     26.2 %     34.8 %     41.8 %     38.4 %
 Secured debt / total assets
     5.7 %     5.7 %     5.8 %     5.1 %     5.3 %
 Variable rate debt / total debt
     0.0 %     0.0 %     20.5 %     34.6 %     25.1 %
                                         
                                         
 Coverage Ratios:
                                        
                                         
 EBITDA (2)(3) / interest expense
    
4.7
 x
    
4.3
  x    
3.4
  x    
3.3
  x    
3.4
  x
                                         
                                         
 Public Debt Covenants (3) (4):
                                        
                                         
 Total debt / adjusted total assets - allowable maximum 60.0%
     21.8 %     22.5 %     29.4 %     35.4 %     32.4 %
 Secured debt / adjusted total assets - allowable maximum 40.0%
     4.8 %     4.8 %     4.9 %     4.3 %     4.6 %
 Consolidated income available for debt service / debt service - required minimum 2.00x
    
5.01
 x
    
6.06
  x    
4.00
  x    
3.47
  x    
3.75
  x
 Total unencumbered assets to unsecured debt - required minimum 1.50x
    
5.31
 x
    
5.74
  x    
3.75
  x    
2.97
  x    
3.30
  x
 
(1)
Gross book value of real estate assets is real estate properties, at cost, less impairment write downs.
   
(2)
See page 12 for the calculation of EBITDA.
   
(3)
The quarter ended December 31, 2006 includes $5.7 million of additional rental income related to our settlement of litigation with HealthSouth.
   
(4)
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
June 30, 2007
 
 
2007 INVESTMENTS/DISPOSITIONS INFORMATION
(dollars in thousands)
 
 
Acquisitions:
                             
                               
 
                              
Date Acquired
   
Tenant
   
Type of Property
   
Number of Properties
   
Units
   
Purchase Price
   
Purchase Price Per Unit
    
Cap Rate
 


There were no acquisitions during the six months ended June 30, 2007.
 
 
Dispositions:
                         
                           
                           
Date Sold
   
Tenant
   
Type of Property
   
Number of Properties
   
Sale Price
   
NBV
   
Book Gain (Loss) on Sale
  
 
 
There were no dispositions during the six months ended June 30, 2007.
 
 
 
 
 
 
 
 
 
17
Senior Housing Properties Trust
Supplemental Operating and Financial Data
June 30, 2007
 
 
 
 2007 FINANCING ACTIVITIES
  
 (share amounts and dollars in thousands)
  
             
             
   
For the Three Months Ended
  
   
6/30/2007
    
3/31/2007
  
             
 Debt Transactions:
            
 New debt raised
   $
-
     $
-
  
 New debt assumed as part of acquisitions
    
-
      
-
  
 Total new debt
    
-
      
-
  
                 
 Debt retired
    
-
      
-
  
 Net debt
   $
-
     $
-
  
                 
 Equity Transactions:
                
 New common shares issued
    
-
      
6,000
  
 New common equity raised, net
   $
-
     $
151,670
  
                 
 Revolving Credit Facility Transactions:
                
 Balance oustanding at beginning of period
   $
-
     $
112,000
  
 Drawings during period
    
-
      
22,000
  
 Repayments during period
    
-
       (134,000 )
 Balance oustanding at end of period
   $
-
     $
-
  
                 
 Balance available for drawing
   $
550,000
     $
550,000
  
 
 
 
 
 
 
18
 
 
 
PORTFOLIO INFORMATION
 
 
 
 
 
 
 
 
 
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
 June 30, 2007
  
   
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)
    
41
      
11,213
     $
1,012,139
       55.2 %   $
90.3
     $
98,921
       54.5 %
Assisted Living (AL)
    
95
      
6,535
      
556,026
       30.4 %    
85.1
      
54,661
       30.1 %
Nursing Homes
    
58
      
5,869
      
219,807
       12.0 %    
37.5
      
17,521
       9.7 %
Rehabilitation Hospitals
    
2
      
364
      
43,553
       2.4 %    
119.7
      
10,250
       5.7 %
 Total   
    
196
      
23,981
     $
1,831,525
       100.0 %   $
76.4
     $
181,353
       100.0 %
                                                         
Tenant:
                                                        
Five Star (Lease No. 1)
    
114
      
9,344
     $
605,871
       33.1 %   $
64.8
     $
50,125
       27.6 %
Five Star (Lease No. 2)
    
30
      
7,275
      
658,772
       36.0 %    
90.6
      
65,703
       36.2 %
Five Star Rehabilitation Hospitals
    
2
      
364
      
43,553
       2.4 %    
119.7
      
10,250
       5.7 %
Sunrise / Marriott (3)
    
14
      
4,091
      
325,473
       17.7 %    
79.6
      
31,490
       17.4 %
NewSeasons / IBC (4)
    
10
      
873
      
87,641
       4.8 %    
100.4
      
9,289
       5.1 %
Alterra / Brookdale (5)
    
18
      
894
      
61,121
       3.3 %    
68.4
      
7,740
       4.3 %
Genesis HealthCare Corporation
    
1
      
156
      
13,007
       0.7 %    
83.4
      
1,535
       0.8 %
5 Private Companies (combined)
    
7
      
984
      
36,087
       2.0 %    
36.7
      
5,221
       2.9 %
 Total 
   
196
      
23,981
     $
1,831,525
       100.0 %   $
76.4
     $
181,353
       100.0 %
 
 
(1)
Amounts are before depreciation, but after impairment write downs.
   
(2)
Properties where the majority of units are independent living apartments are classified as independent living communities.
   
(3)
Marriott guarantees this lease.
   
(4)
IBC guarantees this lease.
   
(5)
Brookdale guarantees this lease.

 
20
 
 Senior Housing Properties Trust
 
 Supplemental Operating and Financial Data
 
 June 30, 2007
  
   
OCCUPANCY BY FACILITY TYPE AND TENANT
  
                               
   
For the Three Months Ended   
  
   
3/31/2007
    
12/31/2006
    
9/30/2006
    
6/30/2006
    
3/31/2006
  
Facility Type:
                              
Independent Living (IL) (1)
     91 %     91 %     93 %     92 %     93 %
Assisted Living (AL) (1)
     88 %     88 %     91 %     89 %     90 %
Nursing Homes
     89 %     89 %     88 %     89 %     92 %
Rehabilitation Hospitals (2)
     61 %     60 %  
NA
    
NA
    
NA
  
                                         
                                         
Tenant:
                                        
Five Star (Lease No. 1) (3)
     88 %     88 %     88 %     89 %     90 %
Five Star (Lease No. 2) (1)
     92 %     92 %     92 %     93 %     93 %
Five Star Rehabilitation Hospitals (2)
     61 %     60 %  
NA
    
NA
    
NA
  
Sunrise / Marriott (4)
  
NA
    
NA
    
NA
    
NA
    
NA
  
NewSeasons / IBC
     83 %     84 %     85 %     85 %     85 %
Alterra / Brookdale
     87 %     88 %     89 %     86 %     90 %
Genesis HealthCare Corporation
     98 %     100 %     96 %     97 %     97 %
5 Private Companies (combined)
     86 %     87 %     88 %     89 %     90 %
 
 
(1)
Includes operating data provided by Sunrise that may not be accurate due to accounting issues at Sunrise.  See footnote (4) below.  However, the data provided by Sunrise does not materially affect the cumulative occupancy percentages for these two facility type leases.
   
(2)
On October 1, 2006, Five Star assumed the operations of these rehabilitation hospitals. These hospitals were formerly operated by HealthSouth.  Because we do not have reliable information about the operations for the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
   
(3)
Includes data for periods prior to our ownership of certain properties included in this lease.
   
(4)
Sunrise has not filed its Annual Reports on Form 10-K for 2005 and 2006, and Quarterly Reports on Form 10-Q for the three quarters of 2006 and the first quarter of 2007 with the Securities and Exchange Comission 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
  
 June 30, 2007
  
   
% PRIVATE PAY BY FACILITY TYPE AND TENANT
  
                               
   
For the Three Months Ended   
  
   
3/31/2007
    
12/31/2006
    
9/30/2006
    
6/30/2006
    
3/31/2006
  
Facility Type:
                              
Independent Living (IL) (1)
     82 %     81 %     81 %     83 %     84 %
Assisted Living (AL) (1)
     95 %     95 %     95 %     94 %     94 %
Nursing Homes
     29 %     28 %     28 %     28 %     28 %
Rehabilitation Hospitals (2)
     32 %     28 %  
NA
    
NA
    
NA
  
                                         
                                         
Tenant:
                                        
Five Star (Lease No. 1)  (3)
     54 %     53 %     51 %     50 %     50 %
Five Star (Lease No. 2) (1)
     80 %     80 %     80 %     81 %     82 %
Five Star Rehabilitation Hospitals (2)
     32 %     28 %  
NA
    
NA
    
NA
  
Sunrise / Marriott (4)
  
NA
    
NA
    
NA
    
NA
    
NA
  
NewSeasons / IBC
     100 %     100 %     100 %     100 %     100 %
Alterra / Brookdale
     98 %     98 %     98 %     98 %     98 %
Genesis HealthCare Corporation
     25 %     25 %     24 %     19 %     17 %
5 Private Companies (combined)
     25 %     26 %     26 %     27 %     26 %
 
 
(1)
Includes operating data provided by Sunrise that may not be accurate due to accounting issues at Sunrise.  See footnote (4) below.  However, the data provided by Sunrise does not materially affect the cumulative private pay percentages for these two facility type leases.
   
(2)
On October 1, 2006, Five Star assumed the operations of these rehabilitation hospitals. These hospitals were formerly operated by HealthSouth.  Because we do not have reliable information about the operations for the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
   
(3)
Includes data for periods prior to our ownership of certain properties included in this lease.
   
(4)
Sunrise has not filed its Annual Reports on Form 10-K for 2005 and 2006, and Quarterly Reports on Form 10-Q for the three quarters of 2006 and the first quarter of 2007 with the Securities and Exchange Comission 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
 
 June 30, 2007
  
   
 RENT COVERAGE
  
   
For the Three Months Ended      
  
Tenant
  
3/31/2007
    
12/31/2006
    
9/30/2006
    
6/30/2006
    
3/31/2006
  
Five Star (Lease No. 1) (1)
    
1.29x
      
1.46x
      
1.53x
      
1.45x
      
1.49x
  
Five Star (Lease No. 2) (1) (2)
    
1.45x
      
1.58x
      
1.50x
      
1.50x
      
1.42x
  
Five Star Rehabilitation Hospitals (3)
    
0.98x
      
1.52x
    
NA
    
NA
    
NA
  
Sunrise / Marriott (4)
  
NA
    
NA
    
NA
    
NA
    
NA
  
NewSeasons / IBC
    
1.06x
      
0.66x
      
1.14x
      
1.21x
      
1.16x
  
Alterra / Brookdale
    
2.03x
      
2.01x
      
2.21x
      
1.97x
      
2.04x
  
Genesis HealthCare Corporation
    
2.29x
      
2.78x
      
2.41x
      
2.15x
      
1.77x
  
5 Private companies (combined)
    
1.55x
      
1.75x
      
1.83x
      
1.95x
      
1.67x
  
 
(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 footnote (4) below.  We believe, however, that the data provided by Sunrise does not materially affect the amounts presented.
   
(3)
On October 1, 2006, Five Star assumed the operations of these rehabilitation hospitals. These hospitals were formerly operated by HealthSouth.  Because we do not have reliable information about the operations for the hospitals by HealthSouth, we do not report operating data for these hospitals before October 1, 2006.
   
(4)
Sunrise has not filed its Annual Reports on Form 10-K for 2005 and 2006, and Quarterly Reports on Form 10-Q for the three quarters of 2006 and the first quarter of 2007 with the Securities and Exchange Comission 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 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
  
 June 30, 2007
  
   
PORTFOLIO LEASE EXPIRATION SCHEDULE
  
(dollars in thousands)
  
                   
                   
   
Annualized 
Current Rent
    
% of Annualized Current Rent
    
Cumulative % of Annualized Current Rent
  
2007
   $
-
      
-
       0.0 %
2008
    
-
      
-
       0.0 %
2009
    
-
      
-
       0.0 %
2010
    
1,295
       0.7 %     0.7 %
2011
    
-
      
-
       0.7 %
2012
    
-
      
-
       0.7 %
2013
    
31,490
       17.4 %     18.1 %
2014
    
-
      
-
       18.1 %
2015
    
2,020
       1.1 %     19.2 %
2016 and thereafter
    
146,548
       80.8 %     100.0 %
    Total
   $
181,353
       100.0 %        
                         
Weighted average remaining
                  
lease term (in years)
    
11.0
                  
 
 
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