Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Q4 2021 Earnings Presentation
44 slides from Diversified Healthcare Trust's earnings presentation, Feb 23, 2022
Slide 1: Fourth Quarter 2021 Supplemental Operating and Financial Data
FOURTH QUARTER 2021 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Muse at Torrey Pines San Diego, CA Exhibit 99.2
Slide 2: Table of Contents
Supplemental Q4 2021 2 CORPORATE INFORMATION Company Profile ...............................................................................................................................................................................................................................................
Slide 3: Company Profile
Supplemental Q4 2021 3 The Company: Diversified Healthcare Trust, or DHC, we, our or us, is a real estate investment trust, or REIT, which owns healthcare related properties, including medical office and life science buildings, senior living communities and wellness centers located throughout the U.
Slide 4: Investor Information
Supplemental Q4 2021 4 Board of Trustees: Jennifer F. Francis John L. Harrington Lisa Harris Jones Managing Trustee Independent Trustee Lead Independent Trustee Daniel F. LePage Adam D. Portnoy Jeffrey P. Somers Independent Trustee Chair of the Board & Managing Trustee Independent Trustee Executive
Slide 5: Research Coverage
Supplemental Q4 2021 5 Equity Research Coverage: B. Riley Securities, Inc. BofA Securities Colliers Securities LLC Bryan Maher Joshua Dennerlein David Toti (646) 885-5423 (646) 855-1681 (401) 488-4797 bmaher@brileyfin.com joshua.dennerlein@bofa.com david.toti@colliers.com JMP Securities RBC Capital
Slide 6: Key Financial Data
Supplemental Q4 2021 6 Key Financial Data RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Selected Balance Sheet Data: Total gross assets $ 8,361,321 $ 8,907,220 $ 8,972,324 $ 9,285,312 $ 8,171,325 Total assets $ 6,623,514 $ 7,066,
Slide 7: Condensed Consolidated Balance Sheets
Supplemental Q4 2021 7 December 31, 2021 December 31, 2020 Assets Real estate properties: Land $ 741,501 $ 789,125 Buildings and improvements 6,072,055 6,621,605 Total real estate properties, gross 6,813,556 7,410,730 Accumulated depreciation (1,737,807) (1,694,901) Total real estate properties, net
Slide 8: Consolidated Statements of Income (Loss)
Supplemental Q4 2021 8 For the Three Months Ended December 31, For the Year Ended December 31, 2021 2020 2021 2020 Revenues: Rental income $ 102,034 $ 106,272 $ 408,589 $ 427,215 Residents fees and services 234,697 278,637 974,623 1,204,811 Total revenues 336,731 384,909 1,383,212 1,632,026 Expenses
Slide 9: Consolidated Statements of Income (Loss) (Additional Data)
Supplemental Q4 2021 9 For the Three Months Ended December 31, For the Year Ended December 31, 2021 2020 2021 2020 Additional Data: General and administrative expenses / total assets (at end of period) 0.1 % 0.1 % 0.5 % 0.5 % Non-cash straight line rent adjustments included in rental income $ 2,042
Slide 10: Debt Summary
Supplemental Q4 2021 10 Coupon Interest Principal Maturity Due at Years to Rate Rate Balance Date Maturity Maturity Floating Rate Debt: Revolving credit facility (1) (2) 2.850% 2.850% $ 800,000 1/15/2023 $ 800,000 1.0 Weighted average rate / total floating rate debt 2.850% 2.850% $ 800,000 $ 800,000
Slide 11: Debt Maturity Schedule
Supplemental Q4 2021 11 $800,000 $250,000 $1,000,000 $500,000 $1,100,000 $39,067 $16,413 $1,834 $2,001 $904 $302 $315 $330 $346 $7,623 Floating Rate Debt Unsecured Fixed Rate Debt Secured Fixed Rate Debt 2022 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter $0 $200,000 $400,000 $600,000 $800,000 $
Slide 12: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q4 2021 12 Leverage Ratios, Coverage Ratios and Public Debt Covenants RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Leverage Ratios: Net debt / total gross assets 32.3% 39.8% 38.9% 40.9% 42.4% Net debt / gross book v
Slide 13: Summary of Capital Expenditures
Supplemental Q4 2021 13 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) Summary of Capital Expenditures RETURN TO TABLE OF CONTENTS For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Office Portfolio lease related costs $ 15,941 $ 5,910 $ 10,044 $ 8,3
Slide 14: Office Portfolio Redevelopment Information
Supplemental Q4 2021 14 Project Location Type of Property Square Feet (1) Estimated Project Costs Total Costs Incurred as of December 31, 2021 Estimated Completion Date 4 Maguire Road Lexington, MA Life Science 54,633 $ 29.2 $ 18.8 Q2 2022 1415 West 3rd Street Tempe, AZ Life Science 82,257 $ 11.0 $
Slide 15: Property Acquisitions / Dispositions Information
Supplemental Q4 2021 15 Property Acquisitions / Dispositions Information Since January 1, 2021 Acquisitions: We have not acquired any properties since January 1, 2021. Dispositions: Date Sold Location Type of Property Number of Properties Gross Sales Price 2/23/2021 Plymouth Meeting, PA Medical Offi
Slide 16: Investment in Unconsolidated Joint Venture
Supplemental Q4 2021 16 Investment in Unconsolidated Joint Venture (dollars and sq. ft. in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2021 Joint Venture Location DHC Ownership DHC Carrying Value of Investment at December 31, 2021 Number of Properties Square Feet Occupancy at December
Slide 17: Calculation and Reconciliation of NOI and Cash Basis NOI
Supplemental Q4 2021 17 Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Calculation of NOI and Cash Basis NOI: Revenues:
Slide 18: NOI and Cash Basis NOI
Supplemental Q4 2021 18 For the Three Months Ended For the Year Ended 12/31/2021 12/31/2020 % Change 12/31/2021 12/31/2020 % Change NOI: Life Science $ 28,079 $ 32,862 (14.6) % $ 121,916 $ 133,724 (8.8) % Medical Office 29,558 29,279 1.0 % 118,368 119,885 (1.3) % Total Office Portfolio 57,637 62,141
Slide 19: Same Property NOI and Cash Basis NOI
Supplemental Q4 2021 19 Same Property NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2021 12/31/2020 % Change 12/31/2021 12/31/2020 % Change NOI: Life Science $ 9,299 $ 9,700 (4.1) % $ 37,428 $ 39,494 (5.2) % Medical Offi
Slide 20: NOI Reconciliation by Segment: Office Portfolio
Supplemental Q4 2021 20 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment RETURN TO TABLE OF CONTENTS (dollars in thousands) Office Portfolio For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2021 9/30/2021 6/30
Slide 21: NOI Reconciliation by Segment: SHOP
Supplemental Q4 2021 21 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) SHOP For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2021 9/30/2021 6/30
Slide 22: NOI Reconciliation by Segment: Non-Segment
Supplemental Q4 2021 22 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) Non-Segment For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2021 9/30/20
Slide 23: NOI Reconciliation by Segment: Consolidated
Supplemental Q4 2021 23 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) Consolidated For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2021 9/30/2
Slide 24: Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q4 2021 24 Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net income (loss) $ 366,758 $ (88,004) $ (32,645) $ (66,183)
Slide 25: Calculation and Reconciliation of FFO and Normalized FFO
Supplemental Q4 2021 25 Calculation and Reconciliation of FFO and Normalized FFO Attributable to Common Shareholders (amounts in thousands, except per share data) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021
Slide 26: Portfolio Summary by Geographic Diversification and Property Type
Supplemental Q4 2021 26 (based on Gross Book Value of Real Estate Assets as of December 31, 2021) (1) Senior living communities are categorized by the type of living units which constitute a majority of the living units at the community. (2) Memory care communities are classified as assisted living
Slide 27: Portfolio Summary
Supplemental Q4 2021 27 Portfolio Summary RETURN TO TABLE OF CONTENTS (dollars in thousands, except investment per square foot or unit) As of December 31, 2021 Number of Properties Square Feet or Number of Units Gross Book Value of Real Estate Assets % of Total Gross Book Value of Real Estate Assets
Slide 28: SHOP Unit Count
Supplemental Q4 2021 28 SHOP Unit Count Assisted Living units: 10,591: 42% Independent Living and Active Adult units: 10,417: 41% SNF units: 1,439: 6% Memory Care units: 2,898: 11% RETURN TO TABLE OF CONTENTS SHOP Unit Count as of December 31, 2021 Assisted Living units: 6,451: 36% Independent Livin
Slide 29: Rent Coverage and Occupancy
Supplemental Q4 2021 29 Rent Coverage and Occupancy Rent Coverage (1): For the Twelve Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Other triple net leased senior living communities 1.21 x 1.27 x 1.38 x 1.48 x 1.61 x Wellness centers 1.23 x 1.17 x 0.94 x 0.91 x 1.05 x Total 1.21 x
Slide 30: Office Portfolio - Results of Operations
Supplemental Q4 2021 30RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended December 31, 2021 As of and For the Three Months Ended December 31, 2020 Life Science Medical Office Total Office Portfolio Life Science
Slide 31: Office Portfolio and Same Property - Results of Operations (continued)
Supplemental Q4 2021 31 Office Portfolio and Same Property - Results of Operations (continued) RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Year Ended December 31, 2021 As of and For the Year Ended December 31, 2020 Life Sc
Slide 32: Office Portfolio - Results of Operations (Sequential)
Supplemental Q4 2021 32 (1) Same property includes those properties classified as same property for the three months ended December 31, 2021 for all periods presented. RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Mont
Slide 33: SHOP Segment and Same Property - Results of Operations
Supplemental Q4 2021 33 SHOP Segment and Same Property - Results of Operations RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Number of Prope
Slide 34: SHOP Segment - Results of Operations
Supplemental Q4 2021 34RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended December 31, 2021 As of and For the Three Months Ended December 31, 2020 Five Star Retained Communities Operator Transition
Slide 35: SHOP Segment - Results of Operations (Annual)
Supplemental Q4 2021 35RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Year Ended December 31, 2021 As of and For the Year Ended December 31, 2020 Five Star Retained Communities Operator Transitioned Communities T
Slide 36: Office Portfolio Leasing Summary
Supplemental Q4 2021 36 Office Portfolio Leasing Summary The leasing summary on this page is based on leases entered into during the periods indicated. (dollars and sq. ft. in thousands, except per sq. ft. data) RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2021 9/30/2021 6/
Slide 37: Tenants Representing 1% or More of Annualized Rental Income
Supplemental Q4 2021 37 As of December 31, 2021 (1) In March 2021, we entered into a 12-year lease with Surgalign Holdings, Inc. The lease relates to a recently redeveloped property we own in San Diego, CA. The term of the lease commences in the first quarter of 2022. (2) In July 2021, we entered in
Slide 38: Office Portfolio Lease Expiration Schedule
Supplemental Q4 2021 38 Office Portfolio Lease Expiration Schedule RETURN TO TABLE OF CONTENTS (dollars in thousands) As of December 31, 2021 Office Portfolio Annualized Rental Income Expiring Year Annualized Rental Income Percent of Total Annualized Rental Income Expiring Cumulative Percentage of A
Slide 39: Non-Segment Lease Expiration Schedule
Supplemental Q4 2021 39 Non-Segment Annualized Rental Income Expiring Year Number of Properties Number of Units or Square Feet Annualized Rental Income Percent of Total Annualized Rental Income Expiring Cumulative Percentage of Annualized Rental Income Expiring 2022 — — $ — — % — % 2023 — — — — % —
Slide 40: Non-GAAP Financial Measures
Supplemental Q4 2021 40 Non-GAAP Financial Measures We present certain "non-GAAP financial measures" within the meaning of applicable rules of the SEC, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property Cash Basis NOI, earnings before interest, income tax, depre
Slide 41: Definitions: Adjusted Total Assets and Related Terms
Supplemental Q4 2021 41 Adjusted total assets Adjusted total assets is the original cost of real estate assets calculated in accordance with GAAP before depreciation and after impairment write downs, if any, and excludes accounts receivable and intangible assets. AlerisLife AlerisLife, or AlerisLife
Slide 42: Definitions: Gross Book Value and Related Terms
Supplemental Q4 2021 42 Gross book value of real estate assets Gross book value of real estate assets is real estate assets at cost plus certain acquisition costs, before depreciation and purchase price allocations, less impairment writedowns, if any. Gross purchase price Gross purchase price includ
Slide 43: Definitions: Office Portfolio
Supplemental Q4 2021 43 Office Portfolio Office Portfolio consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. Our medical office and life science property
Slide 44: Forward-Looking Statements
Supplemental Q4 2021 44 This presentation of supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as “believe”, “expect”, “anticipate”, “intend
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