today but they received $150 million in debtor
financing. That means there will be money to pay the SNH
rent or lose their $15 million deposit. If Chase
Manhattan came up with some of that money, I think they did
some rigorous due diligence. I think Mariner will be
around for some time to pay their rent. If they back out
of lease they will lose their deposit.
not trade down big time on this news. I think we are
near a bottom on SNH price.
in BK would SNH have unfettered access to $15
million deposit in event of rent default...or would the
BK judge hold it or consider it part of general
assets available to creditors. I doubt the latter, but
consider the former possible.
Not an idle question
since Mariner had substantial negative EBITDAR [Rent
coverage]as of 6/99 qtr and I doubt it's gotten better since.
That's a very good question. I've always assumed
it belongs to SNH. Why else would a landlord ask for
security but for risk of leasing to a tenant. However, I'm
not a lawyer - just married to one. Keep in mind,
Mariner is up to date on rent despite being in BK - why
else would they pay rent in BK but to preserve their
deposit. I suspect that the deposit is subject to
negotiations on how it will be used for further SNH protection
into the next post BK lease. If we have a realestate
lawyer on board maybe they could provide some insight.
I'm honored that you took the time to post my SNH
post on the HRP message board. I see you found your
Also, the President announced a broad
health care proposal tonight (which may not pass) that
includes a $3,000 tax credit for long term care. That
should help SNH and HCN and the other health care reits
open flame - a gas bag like you could explode and
do serious mischief to anyone who happened to be
standing around you. Your posturing and pronouncements
about reits yielding 20%+ has done enough harm to
anyone foolish enough to listen to them.
read your posts on other boards and your idea of
discussion is to immediately denigrate anyone who has an
opinion different than yours. I am happy you decided not
to educate me - I would not like to own the stocks
(PZN, PRT, OHI, MT, CRRR, what else am I missing) that
you have lost up to 75% of your capital with. Your
type of education is where the saying "ignorance is
bliss" came from.
Please don't write another
sanctimonious post about how you have 30 years of investment
experience and people pay for your opinion. I think you have
had 1 year of experience 30 times and suggest that
you refund what ever money you sheared from the poor
dupes putting them in your high yield
For your own good, read the January 3, 2000
Investment Quarterly, published by the Atlanta Journal
Constitution where the author discusses 7 ways to make money
and 7 ways to lose money with stocks. Your investment
philosophy that you so generously spew in your postings
incorporate 5 of the 7 ways to lose money.
Have a nice
The initial debt after the split was $200 Million
on properties that cost $770 Million, that's about
26%. I'm sure the properties are worth less now, but
$428 Million of that are Marriott's and Brookdale's.
So, I can't see how the debt can be too bad
Well at least you are able to look at MY record
of posts and know who I am and what I've said
previously. I'm not a big balless COWARD who is so ahamed at
my posts that I have to create new identies to hide
my stupidity such as you have to do. You are a
really a piece of work and an anathema to these boards.
If you would use only one identity, at least
everyone would know to ignore you and you posts
completely. But, with your multiple identies, popping up a
new one all the time, you don't even leave us that
option. If knew who you were, I certainly wouldn't have
to wasted my time responding to you.
about a gas bag, saying SNH is heading toward $6.00
shows you are short and a real slimebag who is trying
to scare the readers here to sell out so you can
make another dollar. How sorry a person is that. I'm
sorry but your likes sicken me. You want to short, go
ahead and do it. Post facts you deem support your
position, but comeing in here yelling $6.00 is coming is
not the way to do it.
Here's one of your
quotes from another board to another poster:
like you have some sort of crystal ball but you're
just hyping. Why don't you stick to the facts?"
Tsk, tsk, tsk... isn't that all I was asking you to
do... to stop your crystal ball negative predictions
and stick to the facts! Shame on me for saying so but
you are a hypocrit or do you just dislike those with
I'm certainly not going to answer for officejrb,
but in checking my notes, I didn't see anything
relating to HCN.
Mariner does have a $15 Mill.,
deposit and Genesis also has a $235,000 deposit. One of
the private tenants (Frontier) that is in Chapter 11,
does has its rents guaranteed by Sun Healthcare.
Unfortunately, Sun Healthcare is also in Chapter 11 so I'm not
sure if that is worth anything at all. But Frontier
only accounts for less than 3% of revenues.
Now, on the positive side, if SNH only collects 50% of
its scheduled income (not even remotely likely), it
will still have a cash flow (FFO) of over $1.50 per
But that is NOT the case. Companies in
Chapter 11 must pay their rent for the properties they
continue to operate. Those they decide not to operate, in
their reorganization, will be turned back to SNH to
find a new tenant to operate the business. So, while
things at first glance may appear rather bleak, that is
really not the case. SNH gets 34% of its rent from
Marriott. Marriott only receives 6% of revenues from the
Gov't. and its properties with SNH are 93% occupied. SNH
gets another 12% from Brookdale who has all private
pay patients and gets virtually ZERO from Medicare
and Medicaid and a 95% occupancy. That's 46% of the
rent right there. That means to get even to 50%, they
only need to take in 4% of the 54% balance of rents
scheduled to be collected. That is simply a ludicrous
Even at 50% of income, this would result
in sufficient FFO that SNH would not even have to
cut the dividend in half. A more likely scenario is
that SNH will reduce the dividend by maybe as much as
20%-30%, but at todays price, that's still a 17%-20%
Just trying to present some of the facts about SNH as
I see them. If this post is considered by some as
hyping SNH, so be it!
As I understand it, Integrated hasn't paid rent
for at least 2 months and they only filed BK last
week. They have no deposit to lose like Mariner. How do
you see the negotiations proceeding with them. The
dearth of info is killing SNH.
What guarantees have HCN given to SNH?
own HCN stock but do not own SNH. I was reading the
SNH messages because I am actually interested in
buying HRP and since $0.23 of the HRP FFO comes from SNH
I was researching SNH when I came across your
messages talking about HCN guarantees.
1. all of SNH's 200 million in debt
can be paid
by income from leases made and
guaranteed by Mariott Corporation,(these leases produce
about $7 million of cash flow above all debt service)
the balance of the SNH book equity is free and clear,
and unencumbered to work our the troubled
2.OHI has about three times the debt to market cap of
SNH .OHI has huge debt coming due, SNH has
2.SNH has about $150 million available undrawn under a
line of credit where OHI is about fully drawn down.SNH
has the ability to cherry pick and buy assets from
distressed sellers like OHI.
3SNH has outside
parties(HCN), stock(HRP), cash, guarannting some leases of weak
operators like Intergrated.BK will be a hassle but will not
cause SNH to crumble.
4.SNH has a small % of their
total portfolio in mortgages-particularly compared to
OHI.SNH has chosen wisely to be a landlord.Landlords
generally have leases either affirmed 120 days in BK as
opposed to lenders that are subject to cram downs and
other considerations with BK operators.
need to cut it's dividend perhaps up to 30% to reflect
leases that are being reworked, but clearly IMHO that
has been discounted in the current stock price.Do
your own DD.OHI only wishes it was like SNH.