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Diversified Healthcare Trust (DHC)
NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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The market value of DHC reflects less than half the value of the underlying assets. It is even less than the tangible book value! Could this be due to external management or just the ineptness of RMR management? Compare the book value to market capitalization of WELL and VTR with DHC.
Management panicked at the outset of the pandemic and raised a billion dollars at 10% with all kinds of covenants including cutting dividends to $0.01.
When you look at the long term chart of this company it is a steady decline over the years. I am not sure what the motivations of the RMR group are but they have lost a lot of money for investors over the last many years.
I hope one of them will respond to this post.
"Deep valuation disconnect, which creates an attractive buying opportunity"
This is what they trumpet on the investor presentation with no explanation of how they will remedy the disconnect. Unfortunately this disconnect has existed for a very long time.
Taking on a 9.75% billion dollar debt that requires cutting dividends to a penny is not going to fix the disconnect.
Will management address this issue?
Less than 1 hour ago I stated a clear FACT; that the Keystone pipeline was cancelled by executive order, it was erased from the message board. What kind of board representation; do we have as posters of true information, do we have going forward. The individual who erased this post should understand that the truth should stand and that we still have a 1st. amendment to the Bill of Rights and the constitution was written by our founders for the people; not just a few individuals, to decide what they believe should be written or spoken of. The TRUTH should not be something we are able to share with others; the TRUTH should ALWAYS be embraced, NO matter what your political affiliation. If you want this country to come together; don't be afraid of the TRUTH or FACTS that support the TRUTH.
Market cap should be higher based on assets and debt bit apparently you have to subtract billions more (like debt) because Portnoy has his fingers in the pie. All who have taken a piece of Portnoy pie historically have got food poisoning instead of a good dividend!
steadily going up ..bit by bit
“will receive approximately 0.07 of a Five Star common share for each SNH common share held” What does this mean? Is it .35 per SNH based on 5-to-1 stock ownership? Is it .07 money or percentage of each outstanding FVE to SHN?
Who gets the impression that this restructuring announcement is only benefiting RMR outside managers who get to sign new long term management agreements in which they continue to make boatloads of money.
Closing the door after the horse has left the barn ... "RBC Capital markets downgrades Senior Housing Properties Trust (SNH -1.7%) to Underperform from Sector Perform and slash its stock PT to $8 from $13 saying he is "incrementally more cautious" after the company entered into restructuring arrangement with Five Star Senior Living and announced a dividend cut." Glad that RBC gives us this heads up today. LOL ...
What they did Iam not sure they will recover from they took 1/2 the stock value and destroyed the dividend. management really you shouldn't get one dime. zero
This restructuring had to be done; it bolsters FVE's ability to be an ongoing concern (reduces debt load), moves SNH's dividend to much lower, but also easily covered. This should allow for much more positive growth down the road. Also, SNH is moving to reduce debt load too. Based on the overhang of bad news, the final result will be much more positive than I thought would happen. The restructuring benefits both shareholder bases and puts both companies in a much better financial situation. Yes, the dividend cut is the worst part...
Some key points from the 1Q20 report:
- FFO of $0.29, vs $0.30 4Q19, a good operating result in light of the pandemic
- its medical office biotech building segment performed really well, and that more than half of their business
-senior housing segment held up reasonably well in face of impacts from the pandemic
-debt payment is done for 2020, which is great news for removing liquidity concerns
-with forward price/ffo of just 2.5, it could easily triple when the cloud clears.
My question is related to the RMR incentive payment going forward. All RMR managed REITs are down >50% and far below any index. That should save SNH $70 million in cash going forward. But, RMR is crafty and will figure a way to recalculate their deal.
Had to sell. 2300 shares that I had for many years, like saying goodbye to an old friend.
The ffo they report should not be confused with fad. FFO does not include a deduction for maintenance capital which is about 50MM (.21 ps) annually. Since I do read the footnotes and I know that maintenance capital is not available for distribution, I always deduct it from ffo to get a good comparison of fad and div. Normalized fad for the last two yrs has been 1.38 and 1.37. I have always considered fad as their sustainable div not considering any other adverse factors.
Senior Housing just finished a $500 million bond offering(4.75% coupon Due in 2028). Their bond rating is Baa3/BBB- and their rating outlook hasn't changed since before 2014. I don't think Bankruptcy is in the near future.
Current yield is 7.1%. Not enough Portnoy discount for me. Lots of safer 8% yields around run by folks that take care of shareholders and not just themselves!!
Better news than I expected, however the yield is still not where it needs to be in order to hit proper yield
On March 11, 2019, we entered into a letter agreement with SNH, pursuant to which, with respect to those certain Amended and Restated Master Lease Agreements, Nos. 1-5, or the Master Leases, among certain of our subsidiaries and certain of SNH’s subsidiaries, SNH agreed to defer, until March 31, 2019, payment of the aggregate Minimum Rent (as defined in the Master Leases) due and payable by us to SNH under the Master Leases for February 2019. This is on an 8k just filed by Five Star.
How can this company give out a 39 cent dividend , then the stock price goes up to $14.20 and then come out with a report like this? Give management bonuses and now the price could drop to $11 or less.. They have continued to give a 39 cent dividend for a long time. Is that going to change now because at $11.90 that 39 cent dividend is now 13.11%.
News of so many Covid vaccine coming in couple of months, Should not that help DHC? Their operation cost due to Covid should reduce greatly next year. Hope they reinstate dividend soon
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