FVE - Senior Housing Properties Has Five Star Problems
We recently looked into Senior Housing Properties Trust (SNH) and concluded that a dividend cut was likely close on account of its key tenant Five Star Senior Living Inc. (FVE) getting into financial trouble.
We stress that this is our view and not written in stone deep into Mount Rushmore. SNH can delay the problems possibly through smaller incentives and rent deferrals to FVE that might achieve an illusion of stability. Our thinking, though, is that this is far past the repair point, and quarterly (not the annual shown by the