Senior Housing Properties Trust SNH
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/29/2013

Operator: Good day, and welcome to the Senior Housing Properties Trust First Quarter Financial Results Conference Call. This call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to the Vice President of Investor Relations, Mr. Tim Bonang. Please go ahead, sir.

Timothy A. Bonang - VP, IR: Thank you, and good afternoon, everyone. Joining me on today's call are David Hegarty, President and Chief Operating Officer and Rick Doyle, Treasurer and Chief Financial Officer.

Today's call includes a presentation by management followed by a question-and-answer session. I would also note that the recording and retransmission of today's conference call is strictly prohibited without prior written consent of Senior Housing.

Before we begin, I would like to state that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon Senior Housing's present beliefs and expectations as of today, April 29, 2013.

The Company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than through filings with the Securities and Exchange Commission regarding this reporting period.

In addition, this call may contain non-GAAP numbers including normalized funds from operations or normalized FFO. A reconciliation of normalized FFO to net income and the components to calculate AFFO, CAD, or FAD are available in our Supplemental Operating and Financial Data package found on our website at

Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements.

Now I would like to turn the call over to Dave Hegarty.

David J. Hegarty - President and COO: Thank you, Tim, and good afternoon, everyone and thank you for joining us on today's call. Earlier this morning, we reported normalized funds from operations or normalized FFO of $0.43 per share for the first quarter of 2013 in line with our expectations. Rick will discuss our year-over-year quarterly results in further detail later on in this call, but to start off I'd like to review some of the important highlights from the first quarter and we continue to have an industry-leading 94% of our revenues derived from private pay tenants.

I think it's best to discuss the portfolio on three operating primary segments, approximately 49% of our net operating income or NOI is derived from triple net fee living investments, 32% for medical office buildings, and another 15% from managed senior living communities, which are leased to a taxable REIT subsidiary or TRS.

In addition, 4% of our NOI's derived from Wellness Centers. Occupancy and rental coverage in our triple net senior living communities was strong and essentially unchanged for the 12 months ended December 31, 2012 over the prior year period. Our managed senior living communities began to demonstrate internal growth and we believe these properties have the potential to add significant long-term growth to our overall portfolio.

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