As a result of the sale of 18 skilled nursing facilities during the second and third quarters of 2019, Five Star Senior Living announced that its senior living revenue for the fourth quarter of 2019 decreased 4.6% to $263.7 million from $276.3 million for the same period in 2018.
Conversely, senior living revenue at communities the company operated continuously since Oct. 1, 2018, for the fourth quarter of 2019 in 2019 increased 1.4% to $260.4 million for the fourth quarter of 2019 from $257 million for the same period in 2019.
“The completion of the transformative restructuring of our business arrangements with Diversified Healthcare Trust (formerly known as Senior Housing Properties Trust) on Jan. 1 marks the beginning of a new era for Five Star,” Five Star Senior Living President and CEO Katie Potter said in the company’s 2019 fourth-quarter and year-end earnings release on Monday.
“We believe we are well-positioned to leverage the stability our new management agreements provide to grow as an organization and increase Five Star’s shareholder value,” she said.
Also on Monday, Diversified Healthcare Trust reported quarterly funds from operations of 30 cents per share, in line with the Zacks Consensus Estimate. This compares with FFO of 27 cents per share a year ago.
“We achieved several strategic milestones at the end of 2019, including the closing of the transformative restructuring of our business arrangements with Five Star Senior Living Inc., rebranding ourselves as Diversified Healthcare Trust to more accurately represent our current portfolio and business strategy and continuing to reposition and optimize our portfolio through our disposition efforts,” Diversified Healthcare Trust President and Chief Operating Officer Jennifer Francis said in Monday’s fourth-quarter and year-end earnings release.
“With the disruption associated with the Five Star restructuring transaction behind us, in 2020 we will remain focused on our core competencies in order to increase shareholder value, including through asset management, the continued execution of our redevelopment plans and disciplined capital recycling strategy in order to further refine our high-quality portfolio.”