Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q4 2015 Earnings Presentation
41 slides from Diversified Healthcare Trust's earnings presentation, Feb 23, 2016
Slide 1: Senior Housing Properties Trust Fourth Quarter 2015 Supplemental Operating and Financial Data
Exhibit 99.2 Senior Housing Properties Trust Fourth Quarter 2015 Supplemental Operating and Financial Data W231 N1440 Corporate Court, Pewaukee, WI Medical Office Building Tenant: Aurora Health Care Square Feet: 148,022 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS TABLE OF CONTENTS PAGE/EXHIBIT CORPORATE INFORMATION 6 Company Profile 7 Investor Information 10 Research Coverage 11 FINANCIAL INFORMATION 12 Key Financial Data 13 Condensed Consolidated Balance Sheets 15 Consolidated Statements of Income 16 Consolidated Statements of Income (Addi
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTH
Slide 4: Forward Looking Statements (continued)
FORWARD LOOKING STATEMENTS (continued) OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF O
Slide 5: Forward Looking Statements (continued)
FORWARD LOOKING STATEMENTS (continued) • SPECIAL COMMITTEES OF EACH OF OUR BOARD OF TRUSTEES AND FIVE STAR’S BOARD OF DIRECTORS COMPOSED SOLELY OF OUR INDEPENDENT TRUSTEES AND FIVE STAR’S INDEPENDENT DIRECTORS WHO ARE NOT ALSO TRUSTEES OR DIRECTORS OF THE OTHER PARTY AND WHO WERE REPRESENTED BY SEPA
Slide 6: Corporate Information
CORPORATE INFORMATION Premier Residences of Chevy Chase, Chevy Chase, MD Independent Living Facility Operator: Five Star Senior Living Living Units: 335
Slide 7: Company Profile
COMPANY PROFILE COMPANY PROFILE The Company: Corporate Headquarters: Senior Housing Properties Trust, or SNH, we, our or us, is a real estate investment trust, or REIT, which owns Two Newton Place independent and assisted living communities, continuing care retirement communities, skilled nursing fa
Slide 8: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Portfolio Concentration by Facility Type (as of December 31, 2015) ($ in 000): Number of Number of Units/Beds or Carrying Value of % of Total % of Q4 2015 Properties Square Feet Investment (1) Investment Q4 2015 NOI (2) Total NOI Independent li
Slide 9: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Property Mix Geographic Diversification (based on 2015 NOI)(1) (based on 12/31/15 Carrying Value of Investment)(2) Wellness Centers IN 3% NY 3% 3% VA 3% MD 4% Independent WI 4% Living 29% 33 Other States + D.C. 37% GA 5% MOBs 42% TX 7% Assisted
Slide 10: Investor Information
INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees John L. Harrington Lisa Harris Jones Jeffrey P. Somers Independent Trustee Independent Trustee Lead Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee Managing Trustee Senior Management David J. Hegarty Richard W. Siedel,
Slide 11: Research Coverage
RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Bank of America / Merrill Lynch Raymond James Juan Sanabria Jonathan Hughes (646) 855-1589 (727) 567-2438 juan.sanabria@baml.com jonathan.hughes@raymondjames.com FBR & Co. RBC Capital Markets Daniel Altscher Michael Carroll (703) 312-1651
Slide 12: Financial Information
FINANCIAL INFORMATION 11 Fan Pier Blvd. & 50 Northern Ave., Boston, MA Biotech Medical Office Buildings Primary Tenant: Vertex Pharmaceuticals Square Feet: 1,651,000
Slide 13: Key Financial Data
KEY FINANCIAL DATA KEY FINANCIAL DATA (share amounts and dollars appearing in the table below are in thousands, except per share data) As of and For the Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Shares Outstanding: Common shares outstanding (at end of period) 237,472 237
Slide 14: Key Financial Data (Continued)
KEY FINANCIAL DATA (Continued) KEY FINANCIAL DATA (Continued) (share amounts and dollars appearing in the table below are in thousands, except per share data) As of and For the Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Selected Balance Sheet Data: Total assets $ 7,183,97
Slide 15: Condensed Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data) As of As of December 31, 2015 December 31, 2014 ASSETS Real estate properties: Land $ 781,426 $ 681,808 Buildings, improvements and equipment 6,675,514 5,540,552 7,456,940 6,222,
Slide 16: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Revenues: (1) Rental income $ 170,706 $ 149,364 $ 630,899 $ 526,703 (2) Residents fees and servi
Slide 17: Consolidated Statements of Income (Additional Data)
CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) (amounts in thousands) For the Three Months Ended For the Year Ended 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Additional Data: General and administrative expenses / total revenues 3.8% 4.7% 4.3
Slide 18: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Year Ended 12/31/2015 12/31/2014 Cash flows from operating activities: Net income $ 123,968 $ 158,637 Adjustments to reconcile net income to cash provided by operating activities: Depreciation
Slide 19: Debt Summary
DEBT SUMMARY DEBT SUMMARY (dollars appearing in the table below are in thousands) As of December 31, 2015 Coupon Interest Principal Maturity Due at Years to (1) (2) Rate Rate Balance Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: Unsecured revolving credit facility (LIBOR + 130
Slide 20: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE (dollars appearing in the table below are in thousands) As of December 31, 2015 Unsecured Unsecured Secured Floating Fixed Fixed Rate (1) (2) (3) Year Rate Debt Rate Debt Debt Total (4) 2016 $ - $ - $ 130,380 $ 130,380 2017 - - 69,838 69,838 (5) 2018 775
Slide 21: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Leverage Ratios: Total debt / total market capitalization 49.9% 47.6% 45.2% 34.3% 38.3% Total
Slide 22: Summary of Capital Expenditures
SUMMARY OF CAPITAL EXPENDITURES SUMMARY OF CAPITAL EXPENDITURES (dollars and sq. ft. in thousands, except per sq. ft. and unit data) For the Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 (1) (2) MOB tenant improvements $ 3,808 $ 2,568 $ 2,457 $ 1,348 $ 1,620 (1) (3) MOB leas
Slide 23: Property Acquisitions / Dispositions Information Since January 1, 2015
JANUARY 1, 2015 PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE JANUARY 1, 2015 (dollars and sq. ft. appearing in the table below are in thousands, except unit and per sq. ft. amounts) Senior Living Acquisitions: Purchase Initial Date Num
Slide 24: Portfolio Information
PORTFOLIO INFORMATION Wellstead of Rogers, Rogers, MN Assisted Living Facility Operator: Five Star Senior Living Living Units: 228
Slide 25: Portfolio Summary by Property Type and Tenant
PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (dollars in thousands, except investment per unit / bed or square foot) As of December 31, 2015 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q4 2015 (1) (2) (3)
Slide 26: Occupancy by Property Type and Tenant
OCCUPANCY BY PROPERTY TYPE AND TENANT OCCUPANCY BY PROPERTY TYPE AND TENANT (1) (2) For the Twelve Months Ended 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Property Type: Independent living 87.5% 87.6% 87.7% 87.8% 87.8% Assisted living 86.9% 87.0% 87.0% 86.9% 86.5% Skilled nursing facilities
Slide 27: Rent Coverage by Tenant
RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) (1) For the Twelve Months Ended Tenant 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Five Star Senior Living (Lea
Slide 28: Triple Net Leased Senior Living Communities Segment and Same Property Results
TRIPLE NET LEASED SENIOR LIVING COMMUNITIES SEGMENT AND SAME PROPERTY – RESULTS OF OPERATIONS TRIPLE NET LEASED SENIOR LIVING COM M UNITIES SEGM ENT - RESULTS OF OPERATIONS (1) (dollars in thousands) As of and For the Three Months Ended As of and For the Year Ended 12/31/2015 12/31/2014 12/31/2015 1
Slide 29: Managed Senior Living Communities Segment and Same Property Results
MANAGED SENIOR LIVING COMMUNITIES SEGMENT AND SAME PROPERTY – RESULTS OF OPERATIONS MANAGED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended As of and For the Year Ended 12/31/2015 12/31/2014 12/31/2015
Slide 30: MOB Portfolio Segment and Same Property Results of Operations
MOB PORTFOLIO SEGMENT AND SAME PROPERTY - RESULTS OF OPERATIONS MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (1) (dollars and sq. ft. in thousands) As of and For the Three Months Ended As of and For the Year Ended 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Number of Properties 121 98 121 98 Number
Slide 31: MOB Leasing Summary
MOB LEASING SUMMARY MOB LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) (1) As of and For the Three Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Properties 121 121 121 121 98 Buildings 145 145 145 145 122 (2) Total sq. ft. 11,316 11,315 11,315 11,312 9
Slide 32: Tenants Representing 1% or More of Total Rent
TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT (dollars in thousands) As of December 31, 2015 % of Annualized Annualized Rental (1) (1) Tenant Facility Type Rental Income Income Expiration 1 Five Star Senior Living Senior living $ 197,593 27.0% 2024 - 203
Slide 33: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) As of December 31, 2015 (1) Annualized Rental Income Percent of Cumulative Total Percentage of Annualized Annualized Senior Living Wellness Rental Income Rental Income (2) Year Communities MOBs Centers Tot
Slide 34: Exhibits
The Jefferson, Arlington, VA Independent Living Facility Operator: Sunrise Senior Living Living Units: 422 EXHIBITS
Slide 35: Calculation and Reconciliation of NOI and Cash Basis NOI
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (amounts appearing in the table below are in thousands) For the Three Months Ended For the Year Ended 12/31/2015 9/30/2015 6/30/2015 3/3
Slide 36: Consolidated and Same Property NOI and Cash Basis NOI
CONSOLIDATED AND SAME PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI CONSOLIDATED NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (2) (dollars in thousands) As of and For the Three Months Ended As of and For the Year Ended 12/31/2015 12/31/2014 % Change 12/31/2015 12/31/2014 % Change EXHIB
Slide 37: NOI Reconciliation by Segment, Three Months Ended December 31, 2015
Calculation and Reconciliation of Net Operating Income (NOI), Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment for the Three Months Ended December 31, 2015 Calculation and Reconciliation of Net Operating Income (NOI), Cash Basis NOI, Same Property NOI and Same Property C
Slide 38: NOI Reconciliation by Segment, Year Ended December 31, 2015
Calculation and Reconciliation of Net Operating Income (NOI), Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment for the Year Ended December 31, 2015 Calculation and Reconciliation of Net Operating Income (NOI), Cash Basis NOI, Same Property NOI and Same Property Cash Basi
Slide 39: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1) (amounts appearing in the table below are in thousands) EXHIBIT B For the Three Months Ended For the Year Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015
Slide 40: Calculation and Reconciliation of FFO and Normalized FFO
CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) (amounts appearing in the table below are in thousands, except per share data) EXHIBIT C For the Three Months Ended For the Year Ended
Slide 41: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES NOI and Cash Basis NOI The calculations of NOI and Cash Basis NOI exclude certain components of net income in order to provide results that are more closely related to our property level results of
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