Diversified Healthcare Trust · NASDAQ:DHC

Diversified Healthcare Trust — Senior Housing Properties Trust — Q1 2019 Earnings Presentation

37 slides from Diversified Healthcare Trust's earnings presentation, May 9, 2019

  1. Slide 1: Supplemental Operating and Financial Data

    Senior Housing Properties Trust Exhibit 99.2 Second Quarter 2018 Supplemental Operating and Financial Data 845 N New Ballas Court, Creve Coeur, MO Major Tenant: Signature Health Services, Inc. Square Feet: 82,280 All amounts in this report are unaudited.

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS PAGE CORPORATE INFORMATION 3 Company Profile 4 Investor Information 5 Research Coverage 6 FINANCIALS 7 Key Financial Data 8 Condensed Consolidated Balance Sheets 9 Condensed Consolidated Statements of Income 10 TABLE OF CONTENTS TABLE Condensed Consolidated Statements of Income (Ad

  3. Slide 3: Corporate Information

    Senior Housing Properties Trust 3 Supplemental Operating and Financial Data, March 31, 2019 3

  4. Slide 4: 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, Two Newton Place which owns properties leased to medical providers, medical related businesses, clinics and 255 Washington Street, Suite 300 biotec

  5. Slide 5: Investor Information

    INVESTOR INFORMATION Board of Trustees John L. Harrington Lisa Harris Jones Jeffrey P. Somers Independent Trustee Lead Independent Trustee Independent Trustee Jennifer B. Clark Adam D. Portnoy Managing Trustee Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management Jennifer F. Francis Richa

  6. Slide 6: Research Coverage

    RESEARCH COVERAGE Equity Research Coverage B. Riley FBR Jefferies & Company JMP Securities Bryan Maher Omotayo Okusanya Peter Martin (646) 885-5423 (212) 336-7076 (415) 835-8904 bmaher@brileyfbr.com tokusanya@jefferies.com pmartin@jmpsecurities.com Morgan Stanley Raymond James RBC Capital Markets Vi

  7. Slide 7: Financials

    Senior Housing Properties Trust 7 Supplemental Operating and Financial Data, March 31, 2019 7

  8. Slide 8: Key Financial Data

    KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Selected Balance Sheet Data: Total gross assets (1) $ 8,706,590 $ 8,694,818 $ 9,061,046 $ 8,991,390 $ 8,889,491 Total assets $ 7,145,900 $ 7,160,42

  9. Slide 9: Condensed Consolidated Balance Sheets

    CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data) As of As of March 31, 2019 December 31, 2018 ASSETS Real estate properties: Land $ 837,575 $ 844,567 Buildings and improvements 7,022,101 7,031,733 Total real estate properties, gross 7,859,676 7,876,300 Accumulated depr

  10. Slide 10: Condensed Consolidated Statements of Income

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended March 31, 2019 2018 Revenues: Rental income $ 158,241 $ 173,728 Residents fees and services 108,045 102,042 Total revenues 266,286 275,770 Expenses: Property operating expenses 117,22

  11. Slide 11: Condensed Consolidated Statements of Income (Additional Data)

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) (dollars in thousands) For the Three Months Ended March 31, 2019 2018 Additional Data: General and administrative expenses / total assets (at end of period) (1) 0.1% 0.3% Business management incentive fees (2) $ — $ 14,347 Straight line r

  12. Slide 12: Condensed Consolidated Statements of Cash Flows

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Three Months Ended March 31, 2019 2018 Cash flows from operating activities: Net income $ 31,504 $ 237,405 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization expens

  13. Slide 13: Condensed Consolidated Statements of Cash Flows (Continued)

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (amounts in thousands) For the Three Months Ended March 31, 2019 2018 (Decrease) increase in cash and cash equivalents and restricted cash $ (15,319) $ 5,920 (CONTINUED) Cash and cash equivalents and restricted cash at beginning of period 7

  14. Slide 14: Debt Summary as of March 31, 2019

    DEBT SUMMARY AS OF MARCH 31, 2019 (Dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate (1) Balance (2) Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: Unsecured revolving credit facility (LIBOR + 120 b.p.) (3) 3.608% 3.608% $ 225,000 1/15/2022 $ 22

  15. Slide 15: Debt Maturity Schedule as of March 31, 2019

    DEBT MATURITY SCHEDULE AS OF MARCH 31, 2019 (dollars in thousands) As of March 31, 2019 Unsecured Unsecured Secured Floating % of Fixed % of Fixed Rate % of % of Year Rate Debt Total Rate Debt Total Debt (1) Total Total Total 2019 (2) (3) $ — $ 400,000 $ 45,035 $ 445,035 2020 350,000 200,000 3,799 5

  16. Slide 16: Leverage Ratios, Coverage Ratios and Public Debt Covenants

    LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Leverage Ratios: Total debt (1) / total gross assets (2) 43.3% 42.4% 41.3% 41.2% 41.4% Total debt (1) / gross book value of real estate assets (3) 44.8%

  17. Slide 17: 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 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 MOB tenant improvements (1) $ 5,000 $ 4,283 $ 5,073 $ 1,089 $ 1,600 MOB leasing costs (2) 4,132 845 3,686 1,225 422 MOB b

  18. Slide 18: Property Acquisitions / Dispositions Information Since January 1, 2019

    PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE JANUARY 1, 2019 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) Acquisitions: We have not acquired any properties since January 1, 2019. Dispositions: (1) Date Sold Location Type of Property Number of Buildings Gross Sales P

  19. Slide 19: Calculation and Reconciliation of NOI and Cash Basis NOI

    CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (amounts in thousands) For the Three Months Ended 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 158,241 $ 178,680 $ 173,648 $ 174,585 $ 173,728 Re

  20. Slide 20: Consolidated NOI and Cash Basis NOI

    CONSOLIDATED NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended 3/31/2019 3/31/2018 % Change NOI: Life Science $ 37,016 $ 36,869 0.4 % Medical Office 34,028 33,344 2.1 % Total MOB Portfolio 71,044 70,213 1.2 % Triple Net Leased Senior Living Communiti

  21. Slide 21: Same Property NOI and Cash Basis NOI

    SAME PROPERTY NOI AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended (2) 3/31/2019 3/31/2018 % Change NOI: Life Science $ 35,375 $ 35,471 (0.3)% Medical Office 32,109 31,750 1.1 % Total MOB Portfolio 67,484 67,221 0.4 % Triple Net Leased Senior Living Communities 49,585 62,522

  22. Slide 22: NOI and Same Property NOI Reconciliation by Segment

    2018 CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI), CASH BASIS NOI, SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI BY SEGMENT (1) (dollars in thousands) AND For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018 Triple Net Triple Net Leased Managed Lea

  23. Slide 23: Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre

    re CALCULATION AND RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) (amounts in thousands) For the Three Months Ended 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Net income (loss) $ 31,504 $ (117,182) $ 47,202 $ 124,988 $ 237,405 AND ADJUSTED EBITDA AND Interest expense 45,611 45,

  24. Slide 24: Reconciliation of FFO and Normalized FFO

    CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS (1) (amounts in thousands, except per share data) For the Three Months Ended 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Net income (loss) attributable to common shareholders $

  25. Slide 25: Definitions of Certain Non-GAAP Financial Measures

    DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures We present certain "non-GAAP financial measures" within the meaning of applicable Securities and Exchange Commission, or SEC, rules, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property

  26. Slide 26: Portfolio Information

    Senior Housing Properties Trust 26 Supplemental Operating and Financial Data, March 31, 2019 26

  27. Slide 27: Portfolio Summary by Geographic Diversification and Property Type

    PORTFOLIO SUMMARY BY GEOGRAPHIC DIVERSIFICATION AND PROPERTY TYPE Geographic Diversification Property Type (based on Cost of Real Estate Properties as of March 31, 2019) (1) (based on Q1 2019 NOI) (2) VA: 3% IN: 3% Wellness NC: 3% Centers: 3% MD: 4% WI: 4% Independent GA: 5% Medical Living: 24% Offi

  28. Slide 28: Portfolio Summary by Property Type and Tenant

    PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (dollars in thousands, except investment per unit or square foot) As of March 31, 2019 % of % of Square Feet Carrying Investment Per Q1 2019 Q1 2019 Number of or Number of Value % of Total Square Foot Q1 2019 Total Q1 2019 Total Properties Units of Inves

  29. Slide 29: Occupancy by Property Type and Tenant

    OCCUPANCY BY PROPERTY TYPE AND TENANT (1) For the Twelve Months Ended (2) 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Property Type: Life science 99.0% 98.8% 98.8% 97.6% 97.4% Medical office 91.7% 93.6% 93.8% 93.6% 93.5% Weighted average occupancy MOBs (3) 94.5% 95.6% 95.7% 95.1% 95.0% Indep

  30. Slide 30: Rent Coverage by Tenant

    RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) (1) For the Twelve Months Ended Tenant 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Five Star (2) 0.99x 1.02x 1.07x 1.13x 1.15x AND WELLNESS CENTERS) Brookdale Senior Living 2.05x 2.10x 2.15x 2.23x 2.30

  31. Slide 31: MOB Portfolio Segment and Same Property Results

    ) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) 2018 As of and For the Three Months Ended March 31, 2019 As of and For the Three Months Ended March 31, 2018 Life Science Medical Office Total MOB Life Science Medical Office Total MOB AND Number of Buildings 35 118 1

  32. Slide 32: Triple Net Leased Senior Living Communities Results

    TRIPLE NET LEASED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (1) (dollars in thousands) As of and For the Three Months Ended March 31, 2019 2018 Number of Properties 228 233 Number of Units 23,853 24,947 Occupancy (2) 83.2 % 83.1% Rent Coverage (2) 1.06x 1.21x Rental Income $ 50,320 $

  33. Slide 33: Managed Senior Living Communities Results

    MANAGED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended March 31, 2019 2018 Number of Properties (1) 76 72 Number of Units (1) 9,766 9,258 Occupancy 86.3 % 85.8% Average Monthly Rate (2) $ 4,275 $ 4,30

  34. Slide 34: 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 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Buildings 153 155 155 155 155 Total sq. ft. (1) 12,547 12,600 12,600 12,600 12,602 Occupancy (2) 94.0% 94.5% 95.6% 95.7% 95.1% Leasi

  35. Slide 35: Tenants Representing 1% or More of Annualized Rental Income

    TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENTAL INCOME (dollars in thousands) As of March 31, 2019 % of Annualized Annualized Rental Tenant Facility Type Rental Income (1) Income (1) Expiration 1 Five Star Senior Living Inc. (2) Senior living $ 132,000 19.0% 2019 2 Vertex Pharmaceuticals

  36. Slide 36: Lease Expiration Schedule

    LEASE EXPIRATION SCHEDULE (1) (dollars in thousands) As of March 31, 2019 MOB Annualized Rental Income Expiring Cumulative Percentage of Annualized Rental Percent of Total Annualized Annualized Rental Income Year Income(2) Rental Income Expiring Expiring 2019 (3) $ 34,707 8.6% 8.6% 2020 34,911 8.7%

  37. Slide 37: Warning Concerning Forward-Looking Statements

    WARNING CONCERNING FORWARD-LOOKING STATEMENTS 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”,

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