=DJ Senior Housing 2Q Profit Down 20% As Interest Costs Double
DOW JONES NEWSWIRES
Senior Housing Properties Trust's (SNH) second-quarter earnings fell 20% as interest costs doubled and funds from operations, a key profit measure for real-estate investment trusts, declined slightly on a per-share basis.
The company is a REIT whose holdings include assisted-living communities, nursing homes and rehabilitation hospitals. It and other health-care REITs have seen results remain fairly steady during the recession, contrasting the woes felt by REITs that specialize in other types of properties.
Senior Housing reported a profit of $24.6 million, or 19 cents a share, down from $30.5 million, or 25 cents, a year earlier. On a per-share basis, FFO, a gauge of profitability for REITs, fell to 42 cents from 44 cents while revenue jumped 16% to $80.8 million.
Analysts polled by Thomson Reuters had most recently forecast earnings of 23 cents, FFO of 42 cents and revenue of $80.6 million.
Operating margin rose to 60% from 59.4%, but that was more than offset by the interest cost jump.
Shares closed at $22.55 Friday and were inactive premarket. The stock has risen 21% in the past year, outpacing the broader market.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;
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(END) Dow Jones Newswires
August 02, 2010 08:32 ET (12:32 GMT)
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