Sunrise Lease Termination Boosts Five Star, SNH’s Q4 Earnings

Senior Housing Properties Trust Reports Income Gain in Q4, Acquires 11 Properties

Senior Housing Properties Trust (NYSE: SNH) reported a net income gain for the quarter ended December 31, 2012 at $44.6 million, or $0.25 per share.

Total revenues for the same period was $194.1 million, up 42% from the fourth quarter in 2011. 

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The total net income includes a gain on lease terminations of approximately $479,000 related to the company’s agreement with subsidiaries of Sunrise Senior Living, Inc. to terminate leases of 10 senior living communities. 

In December, SNH acquired a 90-unit senior living community in Tennessee for $11.5 million, managed by Five Star Quality Care. Five Star also entered into a management agreement with SNH with respect to all 10 of the formerly Sunrise-managed communities whose leases were terminated.

View the fourth quarter earnings report. 

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Five Star Quality Care Enters Agreement with Senior Housing Properties Trust, Transitions Management of 10 Communities 

Five Star Quality Care, Inc. (NYSE: FVE) reported net income of $3.5 million for the fourth quarter of 2012, or $0.07 per basic and diluted share. 

FVE’s total revenues for the fourth quarter increased 14.4% to $359.1 million compared to the same period in the previous year. 

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For 2012, FVE saw its total revenues increase by 12.1% to $1.4 billion.

Income from the company’s continuing operations for the year totaled $13.4 million, or $0.28 per basic and diluted share. Included in these earnings is a gain on settlement of FVE litigation with Sunrise of $1.9 million.  

Some of the company’s fourth quarter of 2012 highlights include seeing occupancy at its owned and leased senior living communities increase to 85.7%, compared to 86.2% for the same period in 2011. 

The percentage of revenues derived from residents’ private resources modestly decreased to 74.5% from 74.7% during the period. 

Other highlights include the management of nine senior living communities with a combined 2,233 living units for Senior Housing Properties Trust (SNH).

View the fourth quarter earnings report.

Written by Jason Oliva

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