Senior Housing Properties Trust (SNH - Snapshot Report), a real estate investment trust (REIT), recently announced its plan to offer 8 million shares to increase its liquidity. To cover the over-allotment options, Senior Housing also intends to offer a 30-day option to the underwriters for purchasing an additional 1.2 million shares.
The net proceeds generated from this offering are expected to be utilized to repay debt outstanding under its revolving credit facility.
Senior Housing reported first quarter 2012 adjusted FFO (funds from operations) of 45 cents per share compared with 44 cents in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income
During the first quarter 2012, Senior Housing, repaid $225.0 million of 8.625% unsecured senior notes on its maturity date. The repayment was funded by borrowings under its revolving credit facility. Additionally, the company also repaid a mortgage loan that had a balance of approximately $12.4 million with an interest of 6.03%. As of March 31, 2012, the company had $25.3 million in cash and cash equivalents.
Senior Housing primarily invests in senior housing properties in the United States. The company invests in hospitals, nursing homes, senior apartments, independent living properties, and assisted living properties. As of March 31, 2012, Senior Housing owned 370 properties in 38 states and Washington D.C.
Senior Housing currently has Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, HCP, Inc (HCP - Analyst Report) also holds a Zacks #3 Rank.