Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q2 2014 Earnings Presentation
33 slides from Diversified Healthcare Trust's earnings presentation, Aug 4, 2014
Slide 1: Senior Housing Properties Trust Second Quarter 2014 Supplemental Operating and Financial Data
Exhibit 99.2 Senior Housing Properties Trust Second Quarter 2014 Supplemental Operating and Financial Data 11 Fan Pier Blvd. & 50 Northern Ave., Boston, MA Biotech Medical Office Buildings Primary Tenant: Vertex Pharmaceuticals Square Feet: 1,651,000 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 8 Research Coverage 9 FINANCIAL INFORMATION 10 Key Financial Data 11 Condensed Consolidated Balance Sheets 12 Condensed Consolidated Statements of Income 13 Condensed Consolidated Statemen
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: • CHANGES IN MEDICARE AND M
Slide 5: Corporate Information
Cameron Hall 114 Penland Street, Ellijay, GA Assisted Living Facility Managed For SNH’s Account Living Units: 59 Senior Housing Properties Trust CORPORATE INFORMATION Supplemental Operating and Financial Data, June 30, 2014
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 owns Two Newton Place independent and assisted living communities, continuing care retirement communities, nursing homes, wel
Slide 7: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Portfolio Concentration by Facility Type (as of June 30, 2014) ($ in 000) (1) : Number of Number of Units/Beds or Carrying Value of % of Total % of Q2 2014 Properties Square Feet Investment (2) Investment Q2 2014 NOI (3) Total NOI (4) Independe
Slide 8: Investor Information
INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees John L. Harrington Jeffrey P. Somers Frederick N. Zeytoonjian Independent Trustee Independent Trustee Independent Trustee Barry M. Portnoy Adam D. Portnoy Managing Trustee Managing Trustee Senior Management David J. Hegarty Richard A. Doyle
Slide 9: Research Coverage
RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Bank of America / Merrill Lynch Raymond James Juan Sanabria Collin Mings (646) 855-1589 (727) 567-2585 juan.sanabria@baml.com collin.mings@raymondjames.com Janney Capital Markets RBC Capital Markets Michael P. Gorman Michael Carroll (215)
Slide 10: Financial Information
Lincoln Medical Center 1 Lincoln Road, Hattiesburg, MS Medical Office Building Primary Tenant: Forrest General Hospital Square Feet: 71,824 Senior Housing Properties Trust FINANCIAL INFORMATION Supplemental Operating and Financial Data, June 30, 2014
Slide 11: 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 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Shares Outstanding (1): Common shares outstanding (at end of period) 203,756
Slide 12: 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 June 30, 2014 December 31, 2013 ASSETS Real estate properties: Land $ 680,937 $ 623,756 Buildings, improvements and equipment 5,486,755 4,639,869 6,167,692
Slide 13: Condensed Consolidated Statement of Income
CONDENSED CONSOLIDATED STATEMENT OF INCOME CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2014 6/30/2013 6/30/2014 6/30/2013 Revenues: (1) Rental income $ 127,669 $ 112,297 $ 239,724 $ 224,150 Residen
Slide 14: Condensed Consolidated Statement of Cash Flows
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Six Months Ended 6/30/2014 6/30/2013 Cash flows from operating activities: Net income $ 76,236 $ 40,833 Adjustments to reconcile net income to cash provided by operating acti
Slide 15: Debt Summary
DEBT SUMMARY DEBT SUMMARY (dollars appearing in the table below are in thousands) As of June 30, 2014 Coupon Interest Principal Maturity Due at Years to (1) (2) Rate Rate Balance Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: (3) Unsecured revolving credit facility (LIBOR + 130
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE (dollars appearing in the table below are in thousands) As of June 30, 2014 Unsecured Unsecured Secured Floating Fixed Fixed Rate (1) Year Rate Debt Rate Debt Debt Total 2014 $ - $ - $ 6,332 $ 6,332 2015 - - 94,742 94,742 2016 - 250,000 160,660 410,660 2
Slide 17: 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 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Leverage Ratios: Total debt / total market capitalization 35.8% 31.4% 31.2% 30.4% 27.4% Total
Slide 18: 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 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 (1) (2) MOB tenant improvements $ 1,330 $ 1,807 $ 1,286 $ 1,066 $ 739 (1) (3) MOB lea
Slide 19: 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 sq. ft. amounts) Senior Living Acquisitions: (1) Purchase Initial Date Number of Number of Purchase Price Lease
Slide 20: Portfolio Information
Savannah Grace at the Palms of Mt. Pleasant 1010 Lake Hunter Circle, Mount Pleasant, SC Independent Living Facility Managed For SNH’s account Living Units: 253 Senior Housing Properties Trust PORTFOLIO INFORMATION Supplemental Operating and Financial Data, June 30, 2014
Slide 21: 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 June 30, 2014 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q2 2014 Properties
Slide 22: 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 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013 Property Type: Independent living 87.6% 87.6% 87.5% 87.5% 87.6% Assisted living 86.1% 86.2% 86.6% 86.7% 86.9% Nursing homes 79.1% 78.9% 7
Slide 23: 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) For the Twelve Months Ended (1) (1) Tenant 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013 Five Star (Lease No. 1) NA NA 1.21x 1.
Slide 24: Triple Net Leased Senior Living Communities Results of Operations
(1) TRIPLE NET LEASED SENIOR LIVING COMMUNITIES CONSOLIDATED AND SAME PROPERTY – TRIPLE NET LEASED SENIOR LIVING COMMUNITIES CONSOLIDATED - RESULTS OF OPERATIONS RESULTS OF OPERATIONS (dollars in thousands) As of and For the Three Months Ended As of and For the Six Months Ended 6/30/2014 6/30/2013 6
Slide 25: 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 Six Months Ended 6/30/2014 6/30/2
Slide 26: MOB Portfolio Consolidated and Same Property Results of Operations
OPERATIONS MOB PORTFOLIO CONSOLIDATED AND SAME PROPERTY - RESULTS OF 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 Six Months Ended 6/30/2014 6/30/2013 6/30/2014 6/30/2013 Number of Properties 98 93 98
Slide 27: MOB Leasing Summary
MOB LEASING SUMMARY MOB LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended (1) 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Properties 98 96 96 93 93 Buildings 122 119 119 116 115 (2) Total sq. ft. 9,143 7,882 7,882 7,819 7,714 Occu
Slide 28: 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 6/30/2014 Income Expiration 1 Five Star Senior living $ 196,505 31.5% 2024 - 2032 2 Vertex Pharmaceutica
Slide 29: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) (1) (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 30: Exhibits
1295 Boylston Street, Boston, MA Medical Office Building Primary Tenant: Boston Children’s Hospital Corp. Square Feet: 99,021 Senior Housing Properties Trust EXHIBITS Supplemental Operating and Financial Data, June 30, 2014
Slide 31: 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 (amounts appearing in the table below are in thousands) For the Three Months Ended For the Six Months Ended 6/30/2014 6/30/2013 6/30/2014 6/
Slide 32: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (dollars appearing in the table below are in thousands) For the Three Months Ended For the Six Months Ended 6/30/2014 6/30/2013 6/30/2014 6/30/2013 EXHIBIT B Net income $ 37,659
Slide 33: 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 (amounts appearing in the table below are in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/20
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