Senior Housing Properties' 1Q FFO jumps on higher rent

NEWTON, Mass.—Senior Housing Properties Trust said Wednesday its funds from operations jumped 24 percent in the first quarter as the real estate investment fund collected more rent on its properties.

Senior Housing Properties earned $23.3 million, or 26 cents per share, compared with profit of $17.5 million, or 22 cents per share, in the first quarter last year.

Funds from operations, which real estate investment trusts typically emphasize because it depicts more accurately a REIT's ability to generate cash and make investments, was $38.3 million, or 42 cents per share, compared with FFO of $31 million, or 38 cents per share, in the first quarter last year.

Analysts surveyed by Thomson Financial expected FFO of 43 cents per share.

With a portfolio of 224 properties, Senior Housing Properties owns senior citizen homes and leases them to senior care providers.

Revenue, which the company derives mostly by charging rent, climbed 11 percent to $49.6 million from $44.8 million. Analysts expected revenue of $51 million.

Senior Housing Properties bought 19 properties with 1,692 rooms for a total of $272.3 million during the quarter. The company leased these properties to Five Star Quality Care Inc.

Shares fell 51 cents, or 2.2 percent, to $22.97 in morning trading.