Since your post lastmonth the price has dropped about 8 cents and you collected a dividend of 6 cents. If this holding is part of a balanced portfolio then stay the course. YOu are earning 6.2% after tax which is probably like 9% that would be required if you were holding corporate bonds.
SNH is not getting much for its up front purchase. For this price SNH could have entirely internalized its management and services and got rid of the conflicted interest issues. With the dilution that will occur lets all hope that our stock dividend is not cut.
Why not just not renew the contracts with RMR and internalize the services and get rid of the conflict of interest that has been hurting the stock owners forever. With the new arrangement the REITS are agreeing to another 20 years of conflict of interest arrangements. This stock is a dog.
The only negative that was not even discussed in conference call is that NYRT has large loan due in next year or two and is currently paying a very low rate. All thinks equal the company will need to refinance at a certainly higher rate in the not so distant future. I do not think this should warrant the recent price declines.
Large institutions were aware of the conflicts that management had and were proven correct. With departure of former chairman (what's his name) perhaps some of conflict issues have been reduced. Unfortunately we are suffering until new management proves itself.