Senior Housing Properties Trust (SNH) Misses Q3 EPS by 14c

Senior Housing Properties Trust (NASDAQ: SNH) reported Q3 EPS of ($0.12), $0.14 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $255.83 million versus the consensus estimate of $255.23 million.

Results for the Quarter Ended September 30, 2019:

• Net loss attributable to common shareholders was $29.4 million, or $0.12 per share, for the quarter ended September 30, 2019 compared to net income attributable to common shareholders of $45.8 million, or $0.19 per share, for the quarter ended September 30, 2018. The net loss attributable to common shareholders for the quarter ended September 30, 2019 includes:
• a decrease in gains and losses on equity securities, net, of $35.1 million for the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018, primarily as a result of SNH\'s sale of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., class A common stock on July 1, 2019;
• $33.1 million of impairment charges during the quarter ended September 30, 2019 compared to $4.5 million of impairment charges during the quarter ended September 30, 2018;
• a decrease in rental income of $25.6 million during the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018, primarily as a result of the reduction in rent paid to SNH by Five Star Senior Living Inc. (Nasdaq: FVE), or Five Star, during the three months ended September 30, 2019 pursuant to the transaction agreement SNH entered into with Five Star in April 2019, or the Transaction Agreement, as well as dispositions since July 1, 2018; and
• a decrease in general and administrative expenses during the quarter ended September 30, 2019 compared to the quarter ended September 30, 2018, primarily as a result of no business management incentive fees accrued for the quarter ended September 30, 2019 compared to $18.8 million of business management incentive fees accrued for the quarter ended September 30, 2018.

“During the third quarter, we made further progress in completing the transformative restructuring of our business arrangement with our largest tenant, Five Star Senior Living, and we remain on target to close the transaction on January 1, 2020,” stated Jennifer Francis, President and Chief Operating Officer of Senior Housing Properties Trust. “Additionally, in conjunction with this restructuring, our third quarter results were within our expectations given our disposition activity and the reduced rent from Five Star. Furthermore, we are encouraged by both the pricing and active interest in the assets we are marketing for disposition, with approximately $564 million of assets sold or under agreement to sell and an additional $180 million of assets in first and second round offers stages, and we remain on pace to have approximately $900 million of assets sold or under agreement to sell by year end 2019.”

For earnings history and earnings-related data on Senior Housing Properties Trust (SNH) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Cisco rating cut at HSBC as analyst sees a lack of catalysts
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery