New Senior Investment Group Inc (NYSE: SNR) Reports a $13.3 Million Net Loss After Merger With Ventas, Inc. (NYSE: VTR)

New Senior Investment Group Inc (NYSE: SNR), commonly known as New Senior, recently announced its results for the second quarter of 2021. The company reported a net loss of $0.16 per diluted share ($13.3 million).

In line with the company’s guidance

The company’s total net operating income was $29.4 million, with a total same-store cash net operating income of $22.4 million, a 15.7% decrease from the second quarter of 2020. It also reported adjusted funds from operations of $0.13 per diluted share ($11.3 million), in line with the company’s guidance for the period. Normalized Funds Available for Distribution stood at $0.10 per diluted share ($8.5 million).

In the second quarter of 2021, the company announced its entry into a definitive merger agreement with Ventas, Inc. (NYSE: VTR). Ventas will acquire all the stock of New Senior with an enterprise value of around $2.3 billion. The transaction is expected to be completed in the second half of the year after customary closing conditions, including company shareholder approval.

Cash Net Operating Income and adjusted funds from operations results in the second quarter of 2021 were consistent with the company’s guidance for the quarter. In addition, same-store ending occupancy grew from the first quarter sequentially by 150bps to the second quarter, in line with the company’s guidance for the quarter. Occupancy trends also grew significantly in the second quarter, with a sequential increase every month.

Changing dividend payment and recording dates

As required by the Ventas acquisition merger agreement, both companies have agreed to synchronize the payment and record date for their dividends to October 14, 2021, and October 1, 2021, respectively, both of which are Venta’s regular dates. Accordingly, the new Senior’s dividend for the second quarter is expected to remain $0.065 as it was in the first quarter. However, it is still subject to the approval of the company’s board of directors.

As of June 30, 2021, the company owned 102 Independent Living Properties and a Continuing Care Retirement Community. Their 103 properties host an estimated 10,000 residents and are managed by four different operators.

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