Recent

% | $
Quotes you view appear here for quick access.

Senior Housing Properties (SNH) Message Board

  • COOLREIT COOLREIT Jan 18, 2000 7:34 PM Flag

    Mariner announced their bancruptcy

    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.
    SNH did
    not trade down big time on this news. I think we are
    near a bottom on SNH price.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 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.

      • 1 Reply to BOBRGR
      • 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.

    • where can I find that info on Mariner??.thanks.

    • 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.

      I have
      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
      selections.

      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
      day.

    • <EOM>

    • 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
      regardless.

    • 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.

      Talk
      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:
      "You act
      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
      positive hype.

    • 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
      year.

      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
      assumption.

      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%
      yield.

      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?

      I
      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.

      Thanks in
      advance.

    • because
      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
      leases.

      2.OHI has about three times the debt to market cap of
      SNH .OHI has huge debt coming due, SNH has
      none.
      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.

      SNH will
      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.

    • View More Messages
 
SNH
23.48+0.36(+1.56%)Sep 28 4:00 PMEDT