but it pays out $0.39 a quarter and has been making far less then that for the last few years, except for the 4th qtr of 2013.
I don't like that they keep issuing more shares and the retained earnings keep going more in the red.
Lots of folks on here love EQC and Corvex. Corvex is their friend and its their "job" to disparage the RMR companies. But the RMR companies pay dividends but the Corvex/EQC boys eliminated theirs, sold many of the assets. What did they do with the money? Maybe they are paying posters who view RMR negatively to write against RMR?
Motives aside, dividends tell the story.
Oldest Boomers are 70; some of them are candidates soon. On the Oregon coast you're not old til you hit 90, but that's because our air & water are the cleanest in the country, and its warmish in winter, cool in summer. Harsher climates or worse pollution send people into "senior living" a lot sooner.
Sentiment: Strong Buy
Portnoy and his gang has locked this one up and until they are ready to unload they will do
nothing to enhance shareholder value. Of course they could take it private and really give the
shareholders a real screwan. They could mess with the dividend and drive the stock lower.
My mother-in-law lives in a high end Senior Living facility. She's 82.Her fellow residents have nicknamed her "The Kid" because she's the youngest person there. All the people betting on baby boomers filling up these places might not be wrong, they're just 10 or 15 years early. Occupancy rates are dropping because boomers don't consider themselves old.
EQC, former RMR company, announces $100 million share repurchase this morning under new leadership. Easy decision with current REIT pricing. Nothing from RMR and SNH despite Q2 discussions re: share buyback...thanks Portnoy and Disaster Dave...stock is stupid cheap because of Portnoy discount...institutional investors are tired of rewarding poor management and unfriendly shareholder structure...
SNH dramatically underperforms its peers and has punished its shareholders. Portnoy & CEO Disaster Dave clearly are not focused on improving the stock price but only on enriching RMR with over $80 million of fees paid to RMR in just the last 3 years ($30.8 million in 2014, $27 million in 2013, $25.4 million in 2012 as per Addendum F-21 on 2014 10K).
Dumb Dave tries to blame the entire market.
5 Year Performance of SNH & Peers:
CSU - up 303%
BKD - up 124%
HCN - up 48%
VTR - up 31% (including CCP spinoff)
HCP - up 11%
SNH - DOWN 34%
OUCH...shareholders lost...PORTNOY won...again...
SNH looks very attractive given yield and discounted valuation, but it is impossible to trust Portnoy and his cronies that only appear to enrich themselves at the expense of shareholders.
At these stock levels, most deals are dilutive with terrible ROI and 5 year CFFO growth under Disaster Dave is another sector low. SNH can't issue stock under $20 without an institutional shareholder revolt. This RMR scheme is about to end, unless RMR and SNH do something dramatic for shareholders, which I don't think has ever happened voluntarily for any RMR portfolio companies.
The SEC should not allow management of a PUBLIC company to work for a third party PRIVATE company (RMR) with shareholders having no ability to impact management or corporate affairs...
NAV discount continues to expand and Disaster Dave continues to enrich Portnoy...
I regret buying this stock. The bleeding is not stopping and any gains from the dividend are more than wiped out in one day. Let's hope for a bounce so I can sell this pos. It's broken every support line and SMA....
It's a pity. SNH was performing admirably for years. Sorry to see it decline so markedly lately. It's not like Baby Boomers won't continue to age and need care. Let's hope the stock makes a comeback soon. I ain't gettin' any younger either.
1. 30% discount to NAV compared to 21% ave premium to NAV for HC REIT sector.
2. 9% yield that looks protected given CFFO with potential to go from $0.39 quarterly to $0.40 quarterly in 2016.
3. 97% private pay - sort of...
4. Well diversified by geography and with MOB & Senior housing primarily AL & IL.
5. Never cut dividends even during 2008-2009 Financial Crisis.
6. Trades at under 10x CFFO compared to ave 15x for HC REIT sector
1. Portnoy control through RMR - taking mitigated steps to better align interests but still zero institutional trust.
2. SS NOI & Occupancy are not impressive and actually fell in Q2 for MOB & AL.
3. More capacity coming online - significant AL & IL construction
4. Higher Interest Rates - 100 bps increase in rates could decrease CFFO by $0.11 annually offset by some hedges.
5. Portnoy discount is unlikely to dissipate without some fundamental structural change or action to prove aligned interests - share buyback or something to drive shareholder return
6. Lack of growth in CFFO - concern is SNH overpays for acquisitions because only cares about driving market cap given RMR incentives.
Risk/Reward looks interesting at $17 given yield and NAV but Portnoy Discount is holding back SNH.
Debka: I agree. My bad. We all should stifle it where Obama is concerned. That Marxist has been an unmitigated disaster.
Real estate goes through down cycles primarily because of overbuilding. The demographics might be great,but occupancy isn't very high and going downwards.
GOV and SNH have high yields. I worry they could be too high. Usually too high a yield means risk. My intention of investing in GOV and SNH was to have a stable boring incme investment.