Senior Housing Properties Trust Divests More Five Star SNFs
Senior Housing Properties Trust (SNH) continued its Five Star Senior Living (FVE) portfolio restructuring with the sale of 15 skilled nursing facilities in the Midwest. Mike Segal, Ben Firestone and Steve Thomes of Blueprint Healthcare Real Estate Advisors handled the transaction for SNH, which made a strategic decision to sell the entire portfolio in one deal to one buyer. The sale was part of SNH’s previously announced disposition plan to sell up to $900 million of assets in connection with the FVE restructuring. The portfolio consists of 10 facilities in Nebraska, four in Iowa and one in Kansas, and sold for a combined $8 million. According to FVE’s 2018 Annual Report, the Nebraska... Read More »
Senior Housing Properties Trust Dividend Takes a Dive
If you read our lead story in the April issue of The SeniorCare Investor, you may have thought it couldn’t get much worse for Senior Housing Properties Trust (SNH) and its tenant Five Star Senior Living (FVE). And then on Thursday, SNH officially dropped its quarterly dividend by 61.5% from $0.39 to just $0.15 per share, with a forward yield of 7.43%. The company had previously mentioned that they would lower its annual dividend to between $0.55 and $0.65 (and deciding on $0.60), but if a dividend decline is bad on its own, it’s even worse for SNH whose high, double-digit yield was probably its best asset in the eyes of its shareholders. Now, SNH’s yield still ranks higher than a number of... Read More »
Senior Housing Properties Trust Still Falling
It has been more than a week since Senior Housing Properties Trust (SNH) and Five Star Senior Living made their announcement about a complete restructuring of the relationship. Five Star’s shares have not recovered, nor were they expected to. But for Senior Housing Properties Trust it has been down, down and down. SNH’s shares have dropped for eight days in a row since the announcement, for a cumulative loss of 29%, so far. And the share price is down 40% from its 2019 high of $14.25. At the low end of the estimated range for the new dividend rate (55 cents to 65 cents annually), the yield would now be 6.3%. That is down from the current 18%. But actually, a 6.3% yield may be too high for... Read More »
Five Star Finally Restructures With Landlord
Five Star Senior Living and Seniors Housing Properties Trust announce a dramatic restructuring of their relationship, and all shareholders seem to lose, at least for now. Five months after Five Star Senior Living issued its “going concern” announcement, the financially troubled company finally came to an agreement with its landlord, Senior Housing Properties Trust, to restructure its leases. Looking at the terms, it appears that both companies had a gun to their heads, as there really do not appear to be any winners here. Five Star will have the leases convert to a management contract by the end of this year, with reduced rents in the meantime, which obviously gives them a cash flow break,... Read More »Schedule a demo
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