1075415--3/13/2006--SENIOR_HOUSING_PROPERTIES

related topics

{debt, indebtedness, cash}

{capital, credit, financial}

{investment, property, distribution}

{provision, law, control}

{loan, real, estate}

{tax, income, asset}

{stock, price, share}

{regulation, government, change}

{interest, director, officer}

{loss, insurance, financial}

{financial, litigation, operation}

{acquisition, growth, future}

{cost, regulation, environmental}

{competitive, industry, competition}

Financial and other difficulties at Five Star could adversely affect us. Five Star s termination of its Sunrise management agreements resulted in a significant loss and may not improve its future earnings. Five Star may be unable to lease the two hospitals we own or may not be able to operate them profitably. Sunrise s operation of our properties may adversely affect us and Five Star. We are being adversely affected by our ongoing litigation with HealthSouth. The operations of some of our facilities are dependent upon payments from the Medicare and Medicaid programs. Our tenants are faced with significant potential litigation and rising insurance costs that not only affect their ability to obtain and maintain adequate liability and other insurance, but also may affect their ability to pay their lease payments and fulfill their insurance and indemnification lease obligations to us. Our properties and their operations are subject to complex regulations. Increasing investor interest in our sector and consolidation at the operator or REIT level could increase competition and reduce our growth. We may be unable to access the capital necessary to repay debts or to grow. An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or sell assets. Also, interest rate changes often affect the value of dividend paying securities. Acquisitions that we make may not be successful. Competition may adversely affect some of our facilities. Our business dealings with our managing trustees and affiliated entities may create conflicts of interest. Our business dealings with Five Star may create conflicts of interest. HRPT, our largest shareholder, may be able to significantly influence our actions. In addition, future sales of our shares by HRPT, or the perception that such sales could occur, could have an adverse effect on the market price of our common shares. Ownership limitations and anti-takeover provisions in our declaration of trust, bylaws and rights plan and under Maryland law may prevent our shareholders from receiving a takeover premium. The loss of our tax status as a REIT would have significant adverse consequences to us and reduce the value of our shareholders common shares. Real estate ownership creates risks and liabilities. There is no assurance that we will make distributions in the future. We may have substantial debt obligations and may incur additional debt. Any notes we may issue will be effectively subordinated to the debts of our subsidiaries and to our secured debt. We may be required to prepay our debts upon a change of control. Our notes may be redeemed before maturity, and our noteholders may be unable to reinvest proceeds at the same or a higher rate. There may be no public market for notes we may issue and one may not develop.

Full 10-K form ▸

1075415--3/13/2006--SENIOR_HOUSING_PROPERTIES_TRUST