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Senior Housing Properties Trust: Is The Dividend At Risk?

Published Thu, 14 Mar 2019 15:29:04 -0400 on Seeking Alpha

Senior Housing Properties Trust, Inc. (SNH) might have to cut its dividend over the short haul. The healthcare REIT has a large, diversified healthcare facility portfolio, but its largest operator is causing serious concerns, and Senior Housing Properties Trust's distribution coverage has taken a major hit in the last quarter. Shares are priced for a dividend cut, in my opinion, and yield 12.95 percent at the time of writing.
Senior Housing Properties Trust - Portfolio Snapshot
Senior Housing Properties Trust is a U.S. healthcare real estate investment trust with an equity value of $2.9 billion. The REIT primarily invests in independent and assisted living facilities, medical office properties and life science buildings.
At the end of the December quarter, more than half of the REIT’s net operating income came from independent and assisted living facilities (combined 53 percent) while life science facilities contributed 22 percent and medical office buildings 19 percent of Q4-2018 NOI.
Here’s a portfolio breakdown by property type and geography.

Source: Senior Housing Properties Trust Q4-2018 Supplement
At the end of the December quarter, Senior Housing Properties Trust’s investment portfolio included 443 properties that were valued at $8.4 billion.
Here’s a more detailed portfolio breakdown by property type.

Source: Senior Housing Properties Trust
Senior Housing Properties Trust benefits from an aging U.S. society. Higher... Read more