Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q4 2014 Earnings Presentation
38 slides from Diversified Healthcare Trust's earnings presentation, Feb 26, 2015
Slide 1: Senior Housing Properties Trust Fourth Quarter 2014 Supplemental Operating and Financial Data
Exhibit 99.2 Senior Housing Properties Trust Fourth Quarter 2014 Supplemental Operating and Financial Data Rio Las Palmas 877 East March Lane, Stockton, CA Independent Living Facility Tenant: Five Star Quality Care, Inc. Living Units: 164 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS TABLE OF CONTENTS PAGE/EXHIBIT CORPORATE INFORMATION 5 Company Profile 6 Investor Information 9 Research Coverage 10 FINANCIAL INFORMATION 11 Key Financial Data 12 Condensed Consolidated Balance Sheets 14 Condensed Consolidated Statements of Income 15 Condensed Consolidated Stateme
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) FOR EXAMPLE: • FIVE STAR IS OUR LARGEST TENANT AND MANAGES CERTAIN OF OUR SENIOR LIVING COMMUNITIES FOR OUR ACCOUNT AND FIVE STAR MAY EXPERIENCE FINANCIAL DIFFICULTIES AS A RESULT OF A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO: • MATERIAL WEAKNESSES IN IT
Slide 5: Corporate Information
CORPORATE INFORMATION 14100 Magellan Plaza, Maryland Heights, MO Medical Office Building Tenant: Magellan Health Square Feet: 232,521
Slide 6: 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 Two Newton Place owns independent and assisted living communities, continuing care retirement communities, nursing 255 Washin
Slide 7: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Portfolio Concentration by Facility Type (as of December 31, 2014) ($ in 000) (1): Number of Number of Units/Beds or Carrying Value of % of Total % of Q4 2014 Properties Square Feet Investment (2) Investment Q4 2014 NOI (3) Total NOI Independen
Slide 8: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Property Mix(1) Geographic Diversification(1) (based on Q4 2014 NOI)(2) (based on 12/31/14 Carrying Value of Investment)(3) 3% VA 3% NY 3% PA 3% Independent living GA 4% MD 5% Assisted living 31% Nursing homes WI 5% 39% 28 Other States + D.C. M
Slide 9: Investor Information
INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees John L. Harrington Jeffrey P. Somers Frederick N. Zeytoonjian Independent Trustee Independent Trustee Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee Managing Trustee Senior Management David J. Hegarty Richard A. Doyle
Slide 10: Research Coverage
RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Bank of America / Merrill Lynch RBC Capital Markets Juan Sanabria Michael Carroll (646) 855-1589 (440) 715-2649 juan.sanabria@baml.com michael.carroll@rbccm.com Jefferies & Company Stifel Nicolaus Omotayo Okusanya Daniel Bernstein (212) 33
Slide 11: Financial Information
FINANCIAL INFORMATION 2555 East Camelback Road, San Antonio, TX Medical Office Building Tenant: Medtronic Square Feet: 145,025
Slide 12: 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 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Shares Outstanding: Common shares outstanding (at end of period) 203,910 203
Slide 13: 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 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Selected Balance Sheet Data: Total assets $ 5,968,26
Slide 14: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data) As of As of December 31, 2014 December 31, 2013 ASSETS Real estate properties: Land $ 683,979 $ 623,756 Buildings, improvements and equipment 5,554,632 4,639,869 6,238,
Slide 15: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Revenues: (1) Rental income $ 149,364 $ 122,912 $ 526,703 $ 459,380 Resident
Slide 16: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Year Ended 12/31/2014 12/31/2013 Cash flows from operating activities: Net income $ 158,637 $ 151,164 Adjustments to reconcile net income to cash provided by operating activ
Slide 17: Debt Summary
DEBT SUMMARY DEBT SUMMARY (1) (dollars appearing in the table below are in thousands) As of December 31, 2014 Coupon Interest Principal Maturity Due at Years to (2) (3) Rate Rate Balance Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: (4) Unsecured revolving credit facility (LIB
Slide 18: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE (1) (dollars appearing in the table below are in thousands) As of December 31, 2014 Unsecured Unsecured Secured Floating Fixed Fixed Rate (2) Year Rate Debt Rate Debt Debt Total 2015 $ - $ - $ 71,541 $ 71,541 2016 - 250,000 160,660 410,660 2017 - 65,941
Slide 19: 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 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Leverage Ratios: Total debt / total market capitalization 38.3% 38.0% 35.8% 31.4% 31.2% Total
Slide 20: Summary of Capital Expenditures
SUMMARY OF CAPITAL EXPENDITURES SUMMARY OF CAPITAL EXPENDITURES (dollars and sq. ft. in thousands, except per sq. ft. and per unit data) For the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 (1) (2) MOB tenant improvements $ 1,620 $ 2,294 $ 1,330 $ 1,807 $ 1,286 (1) (3) MOB
Slide 21: Acquisitions / Dispositions Information Since 1/1/2014
ACQUISITIONS / DISPOSITIONS INFORMATION SINCE 1/1/2014 ACQUISITIONS / DISPOSITIONS INFORMATION SINCE 1/1/2014 (dollars and sq. ft. appearing in the table below are in thousands, except per unit and per sq. ft. amounts) Senior Living Acquisitions: (1) Purchase Initial Date Number of Number of Purchas
Slide 22: Portfolio Information
5213 South Alston Avenue, Durham, NC Medical Office Building Tenant: Duke University Health System Square Feet: 126,225 Senior Housing Properties Trust PORTFOLIO INFORMATION Supplemental Operating and Financial Data, December 31, 2014
Slide 23: Portfolio Summary by Property Type and Tenant
PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (1) (dollars in thousands, except investment per unit / bed or square foot) As of December 31, 2014 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q4 2014 (2) (3)
Slide 24: 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 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Property Type: Independent living 87.8% 87.7% 87.6% 87.6% 87.5% Assisted living 86.5% 86.4% 86.3% 86.4% 86.8% Nursing homes 79.2% 79.2% 7
Slide 25: Rent Coverage by Senior Living Tenant
COMMUNITIES) RENT COVERAGE BY SENIOR LIVING TENANT (EXCLUDING MANAGED SENIOR LIVING RENT COVERAGE BY SENIOR LIVING TENANT (EXCLUDING MANAGED SENIOR LIVING COMMUNITIES) (1) For the Twelve Months Ended Tenant 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Five Star (Lease No. 1) 1.12x 1.17x 1.16x
Slide 26: Triple Net Leased Senior Living Communities Results of Operations
TRIPLE NET LEASED SENIOR LIVING COMMUNITIES CONSOLIDATED AND SAME PROPERTY – RESULTS OF OPERATIONS TRIPLE NET LEASED SENIOR LIVING COMMUNITIES CONSOLIDATED - RESULTS OF OPERATIONS (1) (dollars in thousands) As of and For the Three Months Ended As of and For the Year Ended 12/31/2014 12/31/2013 12/31
Slide 27: Managed Senior Living Communities Results of Operations
MANAGED SENIOR LIVING COMMUNITIES CONSOLIDATED AND SAME PROPERTY – RESULTS OF OPERATIONS MANAGED SENIOR LIVING COMMUNITIES CONSOLIDATED - 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 12/31/2014 12/31/2013
Slide 28: MOB Portfolio Consolidated and Same Property Results of Operations
RESULTS OF OPERATIONS MOB PORTFOLIO CONSOLIDATED AND SAME PROPERTY - MOB PORTFOLIO CONSOLIDATED - 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 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Number of Properties 98 96 98 9
Slide 29: 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 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Properties 98 98 98 96 96 Buildings 122 122 122 119 119 (2) Total sq. ft. 9,142 9,142 9,143 7,882 7,882 (3)
Slide 30: Tenants Representing 1% or More of Total Rent
TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT (1) (dollars in thousands) Annualized % of Rental Income Annualized Rental (2) (2) Tenant Facility Type 12/31/2014 Income Expiration 1 Five Star Senior living $ 196,415 31.3% 2024 - 2032 2 Vertex Pharmaceutic
Slide 31: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE (1) PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) (2) Annualized Rental Income Percent of Total Cumulative Annualized Percentage of Senior Living Wellness Rental Income Annualized Rental (3) Year Communities MOBs Centers Total Expiring Income Expiring
Slide 32: Exhibits
Premier Residences of Plantation 8500 West Sunrise Boulevard, Plantation, FL Independent Living Facility Operator: Five Star Quality Care, Inc. Living Units: 270 EXHIBITS
Slide 33: 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 12/31/2014 12/31/2013 12/31/2014 1
Slide 34: Same Property NOI by Segment, Three Months Ended Dec 31, 2014 and 2013
Basis NOI by Segment for the Three Months Ended December 31, 2014 and 2013 Calculation and Reconciliation of Same Property Net Operating Income (NOI) and Same Property Cash EXHIBIT A-2 Calculation and Reconciliation of Same Property Net Operating Income (NOI) and Same Property Cash Basis NOI by Segm
Slide 35: Same Property NOI by Segment, Year Ended Dec 31, 2014 and 2013
Basis NOI by Segment for the Year Ended December 31, 2014 and 2013 Calculation and Reconciliation of Same Property Net Operating Income (NOI) and Same Property Cash EXHIBIT A-3 Calculation and Reconciliation of Same Property Net Operating Income (NOI) and Same Property Cash Basis NOI by Segment (1)
Slide 36: 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) (dollars appearing in the table below are in thousands) EXHIBIT B For the Three Months Ended For the Year Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Net income $ 45,28
Slide 37: 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) For the Three Months Ended For the Year Ended EXHIBIT C
Slide 38: 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 calculation of NOI and Cash Basis NOI excludes certain components of net income in order to provide results that are more closely related to our properties' results of ope
Senior Housing Properties Trust — Q4 2014 Earnings Presentation on 6ix