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. 


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. 


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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