Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Investor Presentation (March 2016)
20 slides from Selectis Health,inc's investor presentation, Mar 31, 2016
Slide 1: Global Healthcare REIT
O GLOBAL HEALTHCARE REIT February 2016 Strictly Confidential
Slide 2: Important Cautions Regarding Forward Looking Statements
Important Cautions Regarding Forward Looking Statements This presentation may contain projections and other forward-looking statements. Any such statement reflects the company's current views with respect to future events and financial performance. No assurances can be given, however, that these eve
Slide 3: About Global Healthcare
About Global Healthcare * Global Healthcare REIT owns senior healthcare properties across the Southwest and South Atlantic. — 11senior healthcare facilities — Solid base of revenue-generating assets leased to proven facility operators in the senior care industry — 1,000+beds fe) GLOBAL
Slide 4: Cash Flow Projections
Cash Flow Projections Q4 2015 (Projected) Q1 2016 (Projected) Property Names | Actual Rent ‘Cash Flow [iM PropertyNames | Actual Rent Cash Flow (a4 2015) (a4 2015) Middle Georgi $570,000 $229,705 $340,295 Middle Georg $570,000 $229,705 $340,295 Warrenton 335,000 215,400 119,600 Warrenton 335,000 215
Slide 5: Projected Cash Flow by Property Q3 2016
Projected Cash Flow by Property Q3 2016 ae Middle Georg’ $570,000 $229,705 $340,295 Warrenton 624,000 215,400 408,600 Southern Hills SNF 420,000 135,708 284,292 Southern Hills ALF 240,000 137,379 102,621 Southern Hills ILF 691,000 274,758 416,442 Providence, Sparta 480,000 154,515 325,485, Greene Po
Slide 6: Key Statistics
Key Statistics (ore-cecs Stock Price (osof11/3/2015) $0.85 Revenue (ttm) $3.72M 52 Week Low-High $0.74-$1.10 Diluted EPS (mrq) $(0.03) Avg. Daily Vol. (30 aay) 8,460 Cash (mrq) $.5M Shares Outstanding 22.3M. Total Assets (mrq) $44.8M ic Float (est) 72% Total Debt (mrq) $36.4M Insider Holdings “17% T
Slide 7: Stabilized Net Operating Income
Stabilized Net Operating Income 2016 Stabilized NOI $ 6,322,500 Expected Debt Service 2,949,395 Total Expected Cash Flow 3,373,105 General & Administrative 955,000 Operating Cash Flow $ 2,418,105 Adjusted Funds From Operations $0.11 (AAFO) Stabilized AFFO Multiple ISX fo) GLOBAL
Slide 8: Total Capitalization (at Market Value)
Total Capitalization (atmaretvaiue” equity Total Debt $ 37,300,000 Preferred stock 776,000 Market value of 18,921,000 Total Market Capitalization $ 55,000,000 fe) GLOBAL Total Debt 1% Total Capitalization (at Market Value) Preferred Stock ui Market value of equity
Slide 9: Typical Lease Structure
Typical Lease Structure Lease structures favorable to Global Healthcare “Triple net basis” terms; lessee is typically obligated for all liabilities of the property including: Insurance Taxes Facility Maintenance « AnnualEscalation clauses between 2 and 3% * Strategic combination of short- and long-t
Slide 10: Trillion Dollar Market Opportunity
Trillion Dollar Market Opportunity * $1 trillion U.S. Healthcare Real Estate Market? US. Senior Housing Market Growth: 2005 - 2019 + Target segment of Senior Housing and Skilled Nursing * som comprises 25% or $250 billion of the total Healthcare = ob REIT market exe * Strong growth in target market
Slide 11: Aging Population a Strong Market Driver
Aging Population a Strong Market Driver Why Senior Healthcare Facilities? + Demographic “tidal wave” heading toward to U.S. Population clon of senior care industry Age 65 & 85 + Seniors are the fastest growing population in the world * Affordable Care Act introducing seniors into the market who can
Slide 12: Competitive Landscape: Highly Fragmented Industry
Competitive Landscape: Highly Fragmented Industry Industry Highly Fragmented and Dominated by Small, Private Facilities Independent Living Companies _—_ Assisted Living Companies Nursing Facility Companies 15% 20% 22% 25% 29% 37% H Top 10 HM Top 25 Remaining Market Source: IBISWorld, Provider Magazi
Slide 13: REIT Industry Trend: Billion Dollar Healthcare REIT Spin-off
REIT Industry Trend: Billion Dollar Healthcare REIT Spin- off Healthcare Facilities to be Pure Play + Inarecent trend, many REITs are pursuinga . . strategy of simplifying their business models Sales Transactions of Senior by spinning off units into separate identities Housing & Nursing Care and the
Slide 14: Asset Acquisition Campaign
Asset Acquisition Campaign * Building a solid base of revenue- generating assets through measured investments in high-quality healthcare facilities leased by experienced operators * — As the company continues its acquisition campaign for healthcare real estate, it anticipates revenue & cash flow to
Slide 15: Summary of Stabilized Property Portfolio & Pending Acquisition
Summary of Stabilized Property Portfolio & Pending Acquisition ALF = Assisted Living Facility SNF = Skilled Nursing Facility Property Faci Property Name (lea) Count Type Beds/Units Gross Annual Rent Straight-line Rent ILF= Independent Living Facility Location | Middle Georgia | 1 SNF 100 beds $570,0
Slide 16: New Long-term Leases to Increase Rental Revenue
New Long-term Leases to Increase Rental Revenue = Global signed three long-term operating leases for its Greene Pointe, Providence and Warrenton facilities in Georgia, replacing existing leases which are set to expire on June 30, 2016. = The new leases will begin on July 1, 2016, with initial term o
Slide 17: Traditional & HUD Refinancing Opportunities to Lower Interest Rates
Traditional & HUD Refinancing Opportunities to Lower Interest Rates of Facilities * Currently HUD refinancing Middle Georgia & Sparta facilities at a long term rate that is expected to be under 4% * Company expects HUD refinancing to further improve its funds from operations (FFO) by generating annu
Slide 18: Q2 2015 Financial Highlights
Q2 2015 Financial Highlights * Rental revenue increased 273% to Total Asset Growth $1.2Mvs. the same year-ago ($ in millions) quarter * Strong quarter-over-quarter growth in rental revenue reflects company’s acquisition of six skilled nursing facilities since the year-ago quarter * Funds from operat
Slide 19: Key Takeaways
Key Takeaways + Strong healthcare REIT growth industry + Simple, straight forward business model + Traditional & HUD refinancing opportunites to further improve FFO + Replacing several existing short-term leases with long-term leases to increase annual rental revenue + Board & CEO on same side of in
Slide 20: Note Regarding Non-GAAP Financial Measures
Note Regarding Non-GAAP Financial Measures Beginning with the reporting of results for the first quarter of 2015, the company began to report the measures of funds from operations (FFO) and FFO per share. Funds from Operations (FFO), as defined by the National Association of Real Estate Investment T
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