Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q4 2017 Earnings Presentation
40 slides from Diversified Healthcare Trust's earnings presentation, Feb 27, 2018
Slide 1: Fourth Quarter 2017 Supplemental Operating and Financial Data
Senior Housing Properties Trust Fourth Quarter 2017 Supplemental Operating and Financial Data All amounts in this report are unaudited. 11 Fan Pier Blvd. & 50 Northern Ave., Boston, MA Tenant: Vertex Pharmaceuticals Square Feet: 1,651,000 Exhibit 99.2
Slide 2: Table of Contents
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 2 TABLE OF CONTENT S TABLE OF CONTENTS PAGE CORPORATE INFORMATION 6 Company Profile 7 Investor Information 8 Research Coverage 9 FINANCIALS 10 Key Financial Data 11 Condensed Consolidated Balance Sheets 12 C
Slide 3: Warning Concerning Forward Looking Statements
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 3 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENT S WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD
Slide 4: Warning Concerning Forward Looking Statements (continued)
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 4 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENTS (continued ) OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.
Slide 5: Warning Concerning Forward Looking Statements (continued)
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 5 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENTS (continued ) • CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY IS SUBJECT TO OUR SATISFYING CERTAIN FINANCIAL COVENANTS AND OTHER
Slide 6: Corporate Information
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 6 CORPORATE INFORMATION 6 2265 North Lakeshore Drive, Rockwall, TX Tenant: Texas Health Presbyterian Hospital Square Feet: 16,605
Slide 7: Company Profile
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 7 COM PAN Y PROFIL E The Company: Senior Housing Properties Trust, or SNH, we, our or us, is a real estate investment trust, or REIT, which owns independent and assisted living communities, continuing care r
Slide 8: Investor Information
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 8 INVES TOR INFORM ATIO N INVESTOR INFORMATION Board of Trustees John L. Harrington Lisa Harris Jones Jeffrey P. Somers Independent Trustee Independent Trustee Lead Independent Trustee Adam D. Portnoy Managi
Slide 9: Research Coverage
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 9 RESEARCH COVERAG E RESEARCH COVERAGE Equity Research Coverage Bank of America / Merrill Lynch JMP Securities Robert W. Baird & Co. Juan Sanabria Peter Martin Drew Babin (646) 855-1589 (415) 835-8904 (610)
Slide 10: Financials
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 10 FINANCIALS Rio Las Palmas, Stockton, CA Tenant: Five Star Senior Living 164 Living Units 10
Slide 11: Key Financial Data
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 11 KE Y FINANCIA L D AT A KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016 Selected Balance Sheet Data
Slide 12: Condensed Consolidated Balance Sheets
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 12 CONDENSED CONSOLID ATED BALANCE SHEET S As of December 31, 2017 As of December 31, 2016 ASSETS Real estate properties: Land $ 824,879 $ 792,728 Buildings and improvements 6,999,884 6,824,819 7,824,763 7,6
Slide 13: Consolidated Statements of Income
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 13 CONSOLID ATED S TA TEMENTS OF INCOM E CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2017 2016 2017
Slide 14: Consolidated Statements of Income (Additional Data)
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 14 CONSOLID ATED S TA TEMENTS OF INCOME (ADDITIONA L D AT A) CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) (dollars in thousands) For the Three Months Ended December 31, For the Year Ended December 31,
Slide 15: Consolidated Statements of Cash Flows
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 15 CONSOLID ATED S TA TEMENTS OF CASH FLOW S CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Year Ended December 31, 2017 2016 Cash flows from operating activities: Net income $ 151,803
Slide 16: Debt Summary
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 16 DEBT SUMMA RY DEBT SUMMARY(dollars in thousands) As of December 31, 2017 Coupon Interest Principal Maturity Due at Years to Rate Rate (1) Balance (2) Date Maturity Maturity Unsecured Debt: Unsecured Float
Slide 17: Debt Maturity Schedule
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 17 DEBT M ATURIT Y SCHEDUL E DEBT MATURITY SCHEDULE (dollars in thousands) As of December 31, 2017 Unsecured Unsecured Secured Floating % of Total Fixed % of Total Fixed Rate % of Total % of TotalYear Rate D
Slide 18: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 18 LEVERAGE R ATIOS, COVERAGE R ATIOS AND PUBLIC DEBT COVENANT S LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31
Slide 19: Summary of Capital Expenditures
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 19 SUMMA RY OF CAPI TA L EXPENDITURE S SUMMARY OF CAPITAL EXPENDITURES (dollars and sq. ft. in thousands, except per sq. ft. and unit data) For the Three Months Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017
Slide 20: Property Acquisitions / Dispositions Information Since January 1, 2017
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 20 PROPERT Y ACQUISITIONS / DISPOSITIONS INFORM ATION SINC E JANUA RY 1, 201 7 PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE JANUARY 1, 2017 (dollars and sq. ft. in thousands, except per sq. ft. and
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 21 CALCUL ATION AND RECONCILI ATION OF NET OPER ATING INCOME (NOI) AND CASH BASIS NO I CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (amounts in thousands) For the Three
Slide 22: Consolidated NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 22 CONSOLID ATED NET OPER ATING INCOME (NOI) AND CASH BASIS NO I CONSOLIDATED NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2017
Slide 23: Same Property NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 23 SAME PROPERT Y NOI AND CASH BASIS NO I SAME PROPERTY NOI AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended (2) For the Year Ended (3) 12/31/2017 12/31/2016 % Change 12/31/2017 12/31
Slide 24: NOI Reconciliation by Segment, Three Months Ended December 31
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 24CALCUL ATION AND RECONCILI ATION OF NET OPER ATING INCOME (NOI), CASH BASIS NOI, SAME PROPERT Y NOI AN D SAME PROPERT Y CASH BASIS NOI B Y SEGMENT FOR THE THREE MONTHS ENDED DECEMBER 31, 2017 AND 201 6 CAL
Slide 25: NOI Reconciliation by Segment, Years Ended December 31
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 25 (1) See page 21 for the calculation of NOI and a reconciliation of net income determined in accordance with GAAP to that amount, and Definitions of Certain Non-GAAP Financial Measures on page 28 for a def
Slide 26: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 26 CALCUL ATION AND RECONCILI ATION OF EBITD A AND ADJUSTED EBITD A CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1) (amounts in thousands) For the Three Months Ended For the Year Ended 12/31
Slide 27: Calculation and Reconciliation of FFO and Normalized FFO
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 27 CALCUL ATION AND RECONCILI ATION O F FUNDS FROM OPER ATIONS (FFO) AND NORMALIZED FF O CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) (amounts in thousands, except per
Slide 28: Definitions of Certain Non-GAAP Financial Measures
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 28 DEFINITIONS OF CER TAIN NON-GAA P FINANCIA L MEASURE S 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
Slide 29: Portfolio Information
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 29 PORTFOLIO INFORMATION 29 The Stratford, Carmel, IN Tenant: Maxwell Group 213 Living Units
Slide 30: Portfolio Summary by Geographic Diversification and Property Type
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 30PORTFOLIO SUMMA RY B Y GEOGRAPHIC DIVERSIFIC ATION AND PROPERT Y TYP E PORTFOLIO SUMMARY BY GEOGRAPHIC DIVERSIFICATION AND PROPERTY TYPE (1) Cost of real estate properties is before depreciation and less i
Slide 31: Portfolio Summary by Property Type and Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 31 PORTFOLIO SUMMA RY B Y PROPERT Y TYPE AND TENAN T PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (dollars in thousands, except investment per unit or square foot) As of December 31, 2017 Number of Number o
Slide 32: Occupancy by Property Type and Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 32 OCCU PANC Y B Y PROPERT Y TYPE AND TENAN T OCCUPANCY BY PROPERTY TYPE AND TENANT (1) For the Twelve Months Ended (2) 9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016 Property Type: Independent living 85
Slide 33: Rent Coverage by Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 33 RENT COVERAGE B Y TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIE S AND WELLNESS CENTERS ) RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) (1) For the Twelve
Slide 34: Triple Net Leased Senior Living Communities Segment and Same Property Results
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 34 TRIPLE NET LEASED SENIOR LIVING COMMUNITIES SEGMENT AND SAME PROPERT Y – RESU LTS OF OPER ATION S TRIPLE NET LEASED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (1) (dollars in thousands) As
Slide 35: Managed Senior Living Communities Segment and Same Property Results
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 35 MANAGED SENIOR LIVING COMMUNITIES SEGMENT AND SAME PROPERT Y – RESU LTS OF OPER ATION S MANAGED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate
Slide 36: MOB Portfolio Segment Results (Three Months Ended December 31)
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 36 MOB PORTFOLIO SEGMENT AND SAME PROPERT Y - RESU LTS OF OPER ATION S (THREE MONTHS ENDED DECEMBER 31, 2017 AND 201 6) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of
Slide 37: MOB Portfolio Segment Results (Years Ended December 31)
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 37 MOB PORTFOLIO SEGMENT AND SAME PROPERT Y - RESU LTS OF OPER ATIONS (YEARS ENDED DECEMBER 31, 2017 AND 201 6) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For
Slide 38: MOB Leasing Summary
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 38 MOB LEASING SUMMA RY MOB LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016 Properties 125
Slide 39: Tenants Representing 1% or More of Total Annualized Rental Income
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 39 TENANTS REPRESENTING 1% OR MORE OF TO TA L ANNUALIZED REN TA L INCOM E TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENTAL INCOME (dollars in thousands) As of December 31, 2017 % of Annualized Annu
Slide 40: Portfolio Lease Expiration Schedule
Senior Housing Properties Trust Supplemental Operating and Financial Data, December 31, 2017 40 PORTFOLIO LEASE EXPIR ATION SCHEDUL E PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) As of December 31, 2017 Annualized Rental Income (1) Year Senior Living Communities (2) MOBs Wellness Cente
Senior Housing Properties Trust — Q4 2017 Earnings Presentation on 6ix