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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (8746)	10/24/1999 11:31:00 AM
From: LauA	Read Replies (1) \| Respond to of 78644

With SNH, the VTR scenario seems a likely roadmap. However, I'm not totally convinced that a bankruptcy of one to three of the SNH lessees doesn't offer Marriott the opportunity to renegotiate down their leases. This would spiral down the value of the underlying properties. My understanding is that Marriott actually only accounts for 1/3. BLCI is another 11%, superficially appears OK, but I haven't dug into it. Something that concerned me about SNH is the fact that even though Hegarty and Saini come over from HRPT they don't own a lot of stock. However there is an Incentive Share Award Plan with 1.3 million shares reserved. The prospectus notes: "No awards will be granted under the incentive share award plan before completion of the spin-off, and no individuals have yet been selected to receive any awards." For me the compensation package could be a deciding factor. Does anyone have more insight? Lau