Senior Housing Properties Trust Announces Business Updates
30 Diciembre 2019 - 7:00AM
Business Wire
Senior Housing Properties Trust (Nasdaq: SNH) today announced
that it remains on schedule to complete the restructuring of its
business arrangements with its largest tenant, Five Star Senior
Living Inc. (Nasdaq: FVE), or Five Star, as of January 1, 2020.
In addition, SNH announced the completion of $207.8 million in
property sales during the fourth quarter of 2019 as part of its
previously announced plan to sell up to $900 million of properties
in connection with the restructuring. SNH also recently completed
the acquisition of a 169-unit Active Adult rental property in
Plano, TX for approximately $50.3 million and obtained a new,
short-term $250 million senior unsecured term loan.
Disposition Update:
Since the conference call regarding SNH’s third quarter 2019
financial results, SNH has completed the sale of approximately
$149.8 million of senior living and medical office properties. The
sales include:
- a portfolio of seven senior living communities with a combined
566 units located in California, Oregon, Arizona, Florida and Rhode
Island for approximately $103.3 million.
- a 150-unit senior living community located in Redmond, WA for
$32.5 million, and
- a 95,000 square foot medical office building located in
Atlanta, GA for $14 million.
As part of this disposition plan, SNH has sold, or currently has
under agreement to sell, approximately $678 million of properties.
SNH also currently has an additional $231 million of properties
with offers from prospective buyers. SNH expects to use the
proceeds from these sales to repay debt and for general business
purposes, including potential acquisitions.
Acquisition of 169-Unit, Active Adult
rental property in Plano, TX:
During the fourth quarter of 2019, SNH acquired a 169-unit,
Class A, Active Adult rental property built in 2016 and located in
Plano, TX, a submarket of Dallas, for approximately $50.3 million.
SNH funded this acquisition with proceeds from dispositions and
borrowings under its $1 billion unsecured revolving credit
facility. Within a 10 mile radius of this property, SNH owns two
senior living facilities: the 245-unit Forum at Park Lane and the
143-unit Premier Residences of Dallas.
“SNH is excited to add this high-quality asset to our diverse
portfolio of healthcare properties,” said Jennifer Francis,
President and Chief Operating Officer of SNH. “The age-restricted
Active Adult rental apartment segment has gained popularity with
baby boomers due to their interest in the active lifestyle,
wellness and socialization benefits offered in these communities
without the services and care that are provided in more traditional
senior living communities. We believe the addition of this Active
Adult property to our portfolio will capture the evolving real
estate needs of the baby boomer generation, provide additional
diversification of our assets and create synergies with our
existing independent and assisted living communities.”
Short-Term $250 Million Senior
Unsecured Term Loan Facility:
SNH also announced that, on December 12, 2019, it obtained a new
short-term $250 million senior unsecured term loan. The maturity
date of the term loan is June 12, 2020, which may be extended by
six months subject to the satisfaction of certain conditions,
including the payment of an extension fee. SNH used the net
proceeds from this term loan, together with proceeds from its
property dispositions, borrowings under its revolving credit
facility and cash on hand, to prepay in full its $350 million
senior unsecured term loan that was scheduled to mature on January
15, 2020. The interest rate on the new term loan is LIBOR plus 125
basis points, subject to adjustment based on changes to SNH’s
credit ratings.
SNH is a real estate investment trust, or REIT, that owns
medical office and life science properties, senior living
communities and wellness centers throughout the United States. SNH
is managed by The RMR Group LLC, the majority owned operating
subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative
asset management company that is headquartered in Newton, MA.
WARNING REGARDING
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other securities laws.
Also, whenever SNH uses words such as “believe”, “expect”,
“anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and
negatives or derivatives of these or similar expressions, SNH is
making forward-looking statements. These forward-looking statements
are based upon SNH’s present intent, beliefs or expectations, but
forward-looking statements are not guaranteed to occur and may not
occur. Actual results may differ materially from those contained in
or implied by SNH’s forward-looking statements as a result of
various factors. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, some of which are
beyond SNH's control. For example:
- This press release states that SNH remains on schedule to
complete the restructuring of its business arrangement with Five
Star as of January 1, 2020. The completion of the restructuring is
subject to conditions, including, among others, the continued
effectiveness of Five Star’s registration statement on Form S-1 for
the related Five Star common share issuances and the receipt of
certain regulatory approvals. SNH cannot be sure that these
conditions will be satisfied. Accordingly, the restructuring may
not become effective as of January 1, 2020 or at all, or the terms
of such transactions may change.
- This press release states that the property sales announced
today were part of SNH’s previously announced disposition plan to
sell up to $900 million of properties. SNH cannot be sure when or
if it will be able to sell additional properties or that any
additional properties it may sell, when combined with proceeds from
previous sales, will aggregate or exceed $900 million. Further, SNH
is not obligated to continue to pursue this disposition plan and it
may elect to abandon pursuit of this disposition plan at any time.
If SNH does not complete its disposition plan, its credit ratings
may be adversely impacted, and it may be limited in pursuing its
business strategies.
- This press release states that SNH expects to use the net
proceeds from the sale of properties announced today to repay debt
and for general business purposes, including potential
acquisitions. However, SNH may elect to use these proceeds for
other reasons. Further, any reduction in SNH’s debt that may result
from any repayment of its debt with these proceeds may be offset by
future borrowings that SNH may incur.
- Ms. Francis discusses in this press release certain benefits
SNH may receive from the addition of the Active Adult community to
its portfolio. However, such benefits may not materialize as
expected, or at all.
- This press release states that SNH has the option to extend the
maturity date of the new term loan by six months subject to the
satisfaction of certain conditions, including the payment of an
extension fee. However, the applicable conditions may not be met.
In addition, actual costs under the new term loan will be higher
than LIBOR plus a premium because of fees and expenses associated
with such debt.
The information contained in SNH’s filings with the Securities
and Exchange Commission, or SEC, including under “Risk Factors” in
SNH’s periodic reports, or incorporated therein, identifies other
important factors that could cause SNH’s actual results to differ
materially from those stated in or implied by SNH’s forward-looking
statements. SNH’s filings with the SEC are available on the SEC's
website at www.sec.gov.
You should not place undue reliance upon forward-looking
statements.
Except as required by law, SNH does not intend to update or
change any forward-looking statements as a result of new
information, future events or otherwise.
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed on the
Nasdaq. No shareholder, Trustee or officer is personally
liable for any act or obligation of the Trust.
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version on businesswire.com: https://www.businesswire.com/news/home/20191230005079/en/
Michael Kodesch, Director, Investor Relations (617) 796-8234
www.snhreit.com
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