The Rmr Group Inc. · NASDAQ:RMR
The Rmr — RMR Group — Investor Presentation (January 2016)
94 slides from The Rmr's investor presentation, Jan 15, 2016
Slide 1: Warning Regarding Forward Looking Statements
WA R N I N G R E G A R D I N G F O RWA R D L O O K I N G S TAT E M E N T S This presentation contains statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever The RMR Group Inc. (“RMR”) uses w
Slide 2: Agenda
Agenda Topic RMR Overview Hospitality Properties Trust TravelCenters of America LLC Sonesta International Hotels Corporation Senior Housing Properties Trust Five Star Quality Care, Inc. Select Income REIT Government Properties Income Trust RMR Real Estate Income Fund RMR Property & Asset Management
Slide 3: RMR Overview
RMR Overview Adam Portnoy Managing Director, President & Chief Executive Managing Trustee, HPT, SNH, SIR, GOV Officer, RMR & RIF
Slide 4: The RMR Group
The RM RG r oup • RMR is an alternative asset management company with $21.0 billion of assets under management, including more than 1,300 real estate properties. RMR’s business primarily consists of providing management services to: • Four publicly traded REITs. Three real estate operating companies
Slide 5: Managed Companies
M anagedCom pani es Four publicly traded REITs: • • The managed REITs have no employees; RMR is responsible for all their day to day operations. RMR earns fees pursuant to 20 year Business Management Agreements and 20 year Property Management Agreements with the managed REITs. Business management re
Slide 6: Stable Revenue Base
St abl e Revenue Base Management Services Revenues(1) Other, 1.6% • RMR’s revenues are primarily from recurring fees earned agreements with high companies. under long term credit quality Managed Operators, 15.8% • 82.6% of RMR’s management services revenues are from the managed REITs.(1) Managed REI
Slide 7: Diverse Sources of Revenues
Di ver seSour cesof Revenues Assets Under Management(1) Real Estate Securities, 1.1% Industrial Properties, 7.6% R Prope 14. l ies, Office Properties, 34.9% Senior Living Communities, 19.2% H s, 22.9% 8 (1) Based on historical cost of real estate at managed REITs and RIF’s total managed assets as of
Slide 8: RMR Operates a Large, Nationwide Real Estate Platform
RM R O per at esaLar ge, Nat i onw i de RealEst at ePl at f or m Minneapolis Newton Philadelphia Long Island Sacramento Chicago Cleveland Baltimore Washington D.C. (3) Denver Indianapolis Kansas City Albuquerque Los Angeles Phoenix Columbia San Diego Atlanta (2) Dallas Honolulu (2) Austin 9 In 2015,
Slide 9: Quality and Depth of Management
Q ual i t y and Dept h of M anagem ent Mark Kleifges, Chief Financial Officer Andrew Rebholz, Chief Financial Officer Mark Kleifges, Chief Financial Officer 10 * Member of the RMR Executive Operating Committee Senior management has worked together through several business cycles in which they acquir
Slide 10: Strong Alignment of Interests
St r ong Al i gnm ent of I nt er est s The RMR Group Inc. Summary Corporate Structure Public Shareholders (7.1 million shares of Class A Common Stock) Managed REITs (HPT, SNH, SIR & GOV) ABP Trust (Barry Portnoy & Adam Portnoy) The RMR Group LLC Indirect Economic Interest(1) Public Shareholders (7.1
Slide 11: Hospitality Properties Trust, TravelCenters of America, Sonesta
Hospitality Properties Trust TravelCenters of America Sonesta International Hotels Corporation John Murray Executive Vice President, RMR President & Chief Operating Officer, HPT
Slide 12: Hospitality Properties Trust
Jco(HPT\ HPT ·· Hospitality Properties Trust 'N''Y''"SuE.
Slide 13: HPT Company Overview
HPTCom panyO ver vi ew HPT is a large hospitality REIT: 495 properties with an historical cost of $8.5 billion as of September 30, 2015. 302 hotels (45,864 rooms) 193 travel centers; almost all at U.S. interstate highway exits. Located in 45 states, Puerto Rico and Ontario, Canada. HPT’s properties
Slide 14: HPT is the Second Largest Hospitality REIT
H P T i s t h e S e c o n d L a r g e s t H o s p i t a l i t y R E I T, H a s t h e M o s t D i v e r s i f i e d P o r t f o l i o b u t • • $8.5 billion investment portfolio (historical investment basis)(1). Total of 495 properties located in 45 states, Puerto Rico and Canada. 302 hotels with 45,
Slide 15: HPT Hotel Managers and Unique Agreements
H P T h a s $ 5 . 4 B i l l i o n I n v e s t e d i n 3 0 2 F u l l S e r v i c e , S e l e c t S e r v i c e a n d E x t e n d e d S t a y H o t e l s HPT Hotel Managers Unique Agreements (by $ invested)(1) • • 9 Hotel Management Agreements/Leases. HPT’s operating agreements are generally structure
Slide 16: HPT Recent Investments in Hotel Renovations
H P T B e l i e v e s i t s R e c e n t I n v e s t m e n t s i n H o t e l R e n o v a t i o n sH a v e R e s u l t e d i n O u t p e r f o r m a n c e • From 2010 through 3Q15, HPT has completed renovations at 270 hotels at a cost of approximately $1 billion. Renovations are substantially complete
Slide 17: HPT Financial Summary
HPT Fi nanci alSum m ar y As of and for the three months ended September 30, As of and for the nine months ended September 30, ($ and shares in 000s, except per share data) 2015 2014 2015 2014 (1) HPT defines coverage as combined total property level revenues minus FF&E reserve escrows, if any, and
Slide 18: HPT Conservative Financial Profile
HPTConser vat i veFi nanci al Pr of i l e As of September 30, 2015 ($ in millions) Market Capitalization Book Capitalization $3,276 44% $2,976 48% $4,176 56% $3,276 52% Unsecured debt Equity market capitalization Unsecured debt Shareholders' book equity 19 HPT’s unsecured debt is investment grade ra
Slide 19: HPT Investment Highlights
HPTI nvest m entHi ghl i ght s • Favorable market trends currently exist for both the lodging and travel center industry. • HPT owns a diversified portfolio of recently renovated, high quality properties. • HPT has long term portfolio agreements that can provide security of cash flow. • HPT’s hotel
Slide 20: HPT Investment Highlights
HPT Investment Highlights * Favorable market trends currently exist for both the lodging and travel center industry. * HPT owns a diversified portfolio of recently renovated, high quality properties. * HPT has long term portfolio agreements that can provide security of cash flow. * HPT's hotel RevPA
Slide 21: TA Company Overview
TA Com panyO ver vi ew • TravelCenters of America (TA) began its management relationship with The RMR Group in 2007 when HPT acquired TA, kept most of the real estate and spun off the operations to HPT’s shareholders. HPT and TA Management own approximately 17% of TA’s common shares. • TA sells dies
Slide 22: TA Has a Leading Position in the Travel Center Industry
TA H a s a L e a d i n g P o s i t i o n i n t h e Tr a v e l C e n t e r I n d u s t r y a n d a G r o w i n g P r e s e n c e i n t h e C o n v e n i e n c e S t o r e I n d u s t r y • TA believes it has significant competitive advantages in the travel center industry. 253 locations in 43 states
Slide 23: TA Recent Financial Results
TA RecentFi nanci al Resul t s (in 000s, except per share and per gallon data) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 24 (1) See exhibits herein for a reconciliation to nearest GAAP measure. Fuel volumes sold 550,306 513,611 1,585,711 1,525,663 Fuel reve
Slide 24: TA Investment Highlights
TA I nvest m entHi ghl i ght s • Favorable Economic Environment Slow, steady expansion in U.S. economy. Freight volumes expected to increase 2.3% p.a. over next 11 years per American Trucking Association study. Size/Scale Competitive Advantages TA’s truck stop operation is one of only three nationwi
Slide 25: TA Investment Highlights
eg TA Investment Highlights Favorable Economic Environment > Slow, steady expansion in U.S. economy. Freight volumes expected to increase 2.3% p.a. over next 11 years per American Trucking Association study. Size/Scale Competitive Advantages >» TAs truck stop operation is one of only three nationwid
Slide 26: Sonesta Company Overview
Sonest aCom panyO ver vi ew • Sonesta is a hotel brand and management company founded in 1937. • Sonesta was acquired by affiliates of The RMR Group in 2012. • Since 2012, Sonesta has grown its business in the United States from 3 hotels to 35, and added a new upscale extended stay brand. • Sonesta
Slide 27: A Global Portfolio of Distinctive Brands
A G l obal Por t f ol i o of Di st i nct i ve Br ands Rooms Rooms 28 Note: Data presented is as of December 31, 2015. Sonesta Hotel Brand Type of Hotel Number of Hotels / Guest USA Upper upscale to luxury level full service hotels in urban or resort locations 5 / 1,867 USA, LATIN AMERICA, MIDDLE EAS
Slide 28: A Global Portfolio and Pipeline
A G l obal Por t f ol i o and Pi pel i ne 30 29 29 U.S. Full Service Hotels 25 US Extended Stay Hotels 16 10 International Hotels 8 3 0 2011 32 2013 53 2015 65 Hotels: Keys: 6,595 10,114 11,445 2015+ Pre-2012 2012-2013 • Focus on full-service “billboard” hotels. Continue rapid growth of extended sta
Slide 29: Benefits of Recent Renovations Demonstrated by Improved Performance
T h e B e n e f i t s o f t h e R e c e n t R e n o v a t i o n s a r e D e m o n s t r a t e d b y I m p r o v e d P e r f o r m a n c e • The recent investments in renovations along with improved revenue management, sales and marketing and a business like operational focus has repositioned these h
Slide 30: Senior Housing Properties Trust, Five Star Quality Care
Senior Five Housing Properties Trust Star Quality Care, Inc. David Hegarty Executive Vice President, RMR President & Chief Operating Officer, SNH
Slide 31: Senior Housing Properties Trust
11Fan Pier Boulevard & 50 Northern Avenue, Boston, MA Biotech Medical Office Buildings Primary Tenant: Vertex Pharmaceuticals Square Feet: 1,650,000 SNH Senior Housing Properties Trust NYSE. II F.jllu
Slide 32: SNH Company Overview
SNHCom pany O ver vi ew • SNH is a healthcare REIT: Substantial size: $7.4 billion investment portfolio. Property Mix(3) Focused growth: Private pay senior living communities and medical office buildings. Private Pay Senior Living 55% Limited government funding exposure: Approximately 97% of NOI com
Slide 33: SNH Geographic Diversification
SNHG eogr aphi cDi ver si f i cat i on $7.4 billion invested in 428 properties located in 43 states and Washington, D.C. By Investments By Total Rents IN 3% NY 3% VA 3% PA 3% VA 3% NY 3% WI 4% MD 4% MD 4% WI 4% 33 Other States + D.C. 37% 33 Other States + D.C. 36% GA 4% GA 5% TX 7% TX 7% FL 7% FL 9%
Slide 34: Senior Living Portfolio
Seni or Li vi ng Por t f ol i o Property Mix (based on Q3 2015 NOI)(1) IL 30% MOBs 42% AL 25% SNF 3% Note: Data presented as of September 30, 2015. (1) See exhibits herein for a reconciliation to nearest GAAP measure. 35 Operator Unit Mix Number of Communities Units Five Star Quality Care IL, AL, AL
Slide 35: MOB Portfolio: High Quality Assets and Tenants
M O B Por t f ol i o: Hi gh Q ual i t y Asset s and Tenant s MOB Annualized Rental Income Expiring 50% $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $-8% 7% 6% 2% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+ 36 Note: Actual as of September 30, 2015. Annualized re
Slide 36: SNH Financial Summary
SNHFi nanci alSum m ar y For the three months ended September 30, For the nine months ended September 30, ($ in 000s, except per share data) 2015 2014 2015 2014 Rental income Residents fees and services (managed properties) Total revenues Property net operating income (NOI)(1) NOI margin % Adjusted
Slide 37: SNH Conservative Financial Profile
SNHConser vat i veFi nanci al Pr of i l e As of September 30, 2015 ($ in millions) Market Capitalization Book Capitalization $2,762 38% $2,762 39% $3,847 52% $3,506 50% $739 10% $739 11% Unsecured debt Secured debt Shareholders' book equity Unsecured debt Secured debt Equity market capitalization 38
Slide 38: SNH Investment Highlights
SNHI nvest m entHi ghl i ght s • High quality portfolio. Predominantly private pay assets with limited exposure to the politics of government healthcare payment programs. Diversification by geography, tenants and types of properties. Active asset management programs and capital investment to maintai
Slide 39: Five Star Quality Care, Inc.
Five Star Quality Care, Inc. NYSE. f iVE STAR .F.,V ,.E.,,
Slide 40: Five Star Company Overview
Fi ve St arCom pany O ver vi ew • Premier Residences of Boca Raton, FL 214 units Five Star operates a total of 272 high quality senior living communities with 31,310 living units across the U.S. Leases 181 communities with 20,035 units. Owns 31 private pay communities with 3,064 units. Manages 60 se
Slide 41: Five Star Across the Senior Living Spectrum
Fi ve St ar Acr oss t he Seni or Li vi ng Spect r um Skilled Nursing Alzheimer’s / Assisted Living Free Standing SNF Independent Living Facility (SNF) / Memory Care (ALZ) (AL) (IL) Continuing Care One or two beds per room. Extensive nursing care to residents 24 hours per day. Includes post-acute car
Slide 42: Five Star Recent Financial Results
Fi ve St ar RecentFi nanci al Resul t s ($ in 000s) For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 2,717 2,438 7,939 7,296 Management fee revenue Total revenues $344,572 $334,339 $1,020,814 $995,549 $135,133 $135,507 $404,737 $402,469 Senior livi
Slide 43: Five Star Investment Highlights
Fi ve St arI nvest m entHi ghl i ght s • • • • One of the largest publicly traded senior living operators in the U.S. Private pay revenues account for 78% of total senior living revenues. Industry demographics and supply/demand trends are favorable. Internal and external growth opportunities. The Fo
Slide 44: Select Income REIT
Select Income REIT John Popeo Executive Vice President, RMR Chief Financial Officer, SIR
Slide 45: Select Income REIT
Select Income REIT .S.,,I.R.o NYSE
Slide 46: SIR Company Overview
SI R Com panyO ver vi ew • Completed initial public offering in March 2012. $947 million invested in 30 properties. Acquired an additional $1.0 billion of net leased mainland properties from March 2012 through December 2014. • office and industrial Primarily headquarter locations leased to strong cr
Slide 47: Impact of Recent Acquisitions and Financings
I m pact of Recent Acqui si t i ons andFi nanci ngs As of 9/30/2014 As of 9/30/2015 (1) Simple average based upon weighted average year built or substantially renovated. (2) Based on annualized rental revenue and calculated as the annualized contractual rents, as of September 30, 2015, from tenants
Slide 48: SIR Portfolio Metrics
SI R Por t f ol i o M et r i cs Portion of the Former Damon Estate Approximate Square Feet: 9,600,000 Honolulu, HI Historical Hawaii Rent Resets MeadWestvaco Corporate Headquarters Approx. Square Feet: 311,000 Richmond, VA Annualized Rental Revenue Before Reset(3) Annualized Rental Revenue After Res
Slide 49: SIR Financial Summary
SI R Fi nanci alSum m ar y For the three months ended September 30, For the nine months ended September 30, ($ in 000s, except per share data) 2015 2014 2015 2014 50 (1) See exhibits herein for a reconciliation to nearest GAAP measure. Total revenues $111,942 $56,700 $313,571 $166,285 Property net o
Slide 50: SIR Conservative Financial Profile
SI R Conser vat i veFi nanci al Pr of i l e As of September 30, 2015 ($ in millions) Market Capitalization Book Capitalization $1,699 42% $2,170 48% $2,090 46% $2,090 51% $287 $287 Unsecured debt Secured debt Shareholders' book equity Unsecured debt Secured debt Equity market capitalization 51 SIR’s
Slide 51: Government Properties Income Trust, RMR Real Estate Income Fund
Government Properties Income Trust RMR Real Estate Income Fund Mark Kleifges Executive Vice President, RMR Chief Financial Officer, HPT Chief Financial Officer, GOV Chief Financial Officer, RIF
Slide 52: Government Properties Income Trust
O;j ::;:::· r I I r Ultil UJ l L I i:i: Q 1] I UfW := l I 0 •..l! · :;:;:;:: ;:;::;::;:; I I .·•-•-I _. - ---GOV Government Properties Income Trust tltailjo NYSE
Slide 53: GOV Company Overview
G O V Com panyO ver vi ew • Focused on owning and operating properties majority leased to government tenants. $1.9 billion real estate portfolio (historical investment basis) consisting of 71 properties located in 31 states and Washington D.C. containing approximately 10.7 million square feet. Annua
Slide 54: Conservative Strategy Designed to Provide Secure and Stable Income
Conser vat i veSt r at egyDesi gnedt o Pr ovi de Secur eand St abl e I ncom e Enhancing security through leasing: Representative GOV Tenants • Well over 90% of GOV’s rental income is paid by investment grade tenants; significantly above the office REIT average. • On average, government tenants remai
Slide 55: GOV's Diversified Portfolio
G O V’s Di ver si f i ed Por t f ol i o U.S. Government Tenant Diversity(1) State Government Tenant Diversity(1) 20 Massachusetts Avenue, Washington D.C Square Feet: 339,541 Primary Tenant: U.S. Citizenship and Immigration Service (1) Amounts exclude one property (one building) classified as discont
Slide 56: GOV Tenant Retention Expected to Remain High
G O V TenantRet ent i on Expect edt o Rem ai nHi gh • GOV typically begins to discuss renewals with tenants at least two years prior to lease expiration. One Georgia Center, Atlanta, GA Square Feet: 375,952 Tenant: State of GA: Department of Transportation • As of September 30, 2015, leases contribu
Slide 57: GOV Financial Summary
G O V Fi nanci alSum m ar y For the three months ended September 30, For the nine months ended September 30, ($ in 000s, except per share data) 2015 2014 2015 2014 58 (1) See exhibits herein for a reconciliation to nearest GAAP measure. Rental income $62,092 $64,158 $186,864 $186,406 Property net op
Slide 58: GOV Conservative Financial Profile
G O V Conser vat i veFi nanci al Pr of i l e As of September 30, 2015 ($ in millions) Market Capitalization Book Capitalization $1,011 44% $1,011 47% $1,013 47% $1,138 50% $138 6% $ 6% Unsecured debt Secured debt Shareholders' book equity Unsecured debt Secured debt Equity market capitalization 59 G
Slide 59: RMR Real Estate Income Fund (NYSE MKT: RIF)
RMR Real Estate Income Fund (NYSE MKT: RIF) U ---'-j..IWIL.,
Slide 60: RIF Fund Overview
RI F FundO ver vi ew • A closed end mutual fund that invests primarily in common and preferred securities of unaffiliated REITs and other real estate companies. • Approximately $250 million of investments as of September 30, 2015. • RIF’s primary investment objective is to earn and pay a high level
Slide 61: RMR Property & Asset Management
RMR Property & AssetManagement David Blackman Executive Vice President, RMR President & Chief Operating Officer, SIR President & Chief Operating Officer, GOV
Slide 62: RMR Operates a Large, Nationwide Real Estate Platform
RM R O per at esaLar ge, Nat i onw i de RealEst at ePl at f or m Minneapolis Newton Philadelphia Long Island Sacramento Chicago Cleveland Baltimore Washington D.C. (3) Denver Indianapolis Kansas City Albuquerque Los Angeles Phoenix Columbia San Diego Atlanta (2) Dallas Honolulu (2) Austin 63 In 2015
Slide 63: RMR Asset Management & Property Management
RM R AssetM anagem ent& Pr oper t yM anagem ent • While RMR is an alternative asset management company, we principally operate commercial real estate. • The RMR organization includes a property management division that manages all the office and industrial properties for SNH, SIR, GOV, HPT (one prop
Slide 64: RMR Property Management Division – RMR Real Estate Services
RM R Pr oper t yM anagem entDi vi si on– RM RRealEst at e Ser vi ces( RES) • • National in scope with 226 employees across 25 offices in the U.S. as of September 30, 2015. 77% of RES’s workforce holds industry licenses and certifications and are actively involved in industry associations. Currently
Slide 65: RMR Asset Management
RM R AssetM anagem ent • RMR’s Asset Management is responsible for obtaining the best financial results for our clients’ investments. This is accomplished by: • Writing a strategic business plan for each property and rolling that up to create an operating plan for each client. Implementing each plan
Slide 66: RMR Financial Overview
RMR Financial Overview Matthew Jordan Chief Financial Officer, RMR
Slide 67: Stable Revenue Base from High Quality Clients
St abl e RevenueBasef r om Hi gh Q ual i t y Com pani es Cl i ent ($ in 000s) Three Months Ended September 30, 2015 Management services Reimbursable payroll and related costs Advisory services Total revenues $ 39,837 7,695 579 $ 48,111 Management Services Revenues by Client(1) Management Services Re
Slide 68: Diverse Sources of Revenues
Di ver seSour cesof Revenues Assets Under Management(1) Real Estate Securities, 1.1% Industrial Properties, 7.6% R Prope 14. l ies, Office Properties, 34.9% Senior Living Communities, 19.2% H s, 22.9% (1) Based on historical cost of real estate at managed REITs and RIF’s total managed assets as of S
Slide 69: Demonstrated History of Growth
Dem onst r at ed Hi st or yof G r ow t h • RMR has grown by working with its clients to expand their businesses and by creating new clients. • Since 1986, RMR has assisted its clients in completing over $30.0 billion of financing in over 150 capital raising transactions. Historical Assets Under Mana
Slide 70: Attractive Cash Flow and Dividend Coverage
At t r act i veCashFl ow and Di vi dend Cover age As of and for the Three Months Ended September 30, 2015(1) ($ in 000s, except per share data) Adjusted Revenues Net Income Adjusted EBITDA(2) As a % of Adjusted Revenues Anticipated Dividends(2)(3) As a % of Adjusted EBITDA Adjusted Free Cash Flow(2)
Slide 71: Strong Balance Sheet
St r ong Bal anceSheet As of September 30, 2015 ($ in 000s) Cash and cash equivalents Other assets Total assets $ 34,497 269,395 $ 303,892 Total debt Total liabilities Total equity Total liabilities and equity $ - 90,240 213,652 $ 303,892 • Approximately $5.0 million of Adjusted Free Cash Flow per q
Slide 72: Closing Remarks
Closing Remarks Adam Portnoy Managing Director, President & Chief Executive Managing Trustee, HPT, SNH, SIR, GOV Officer, RMR & RIF
Slide 73: Investment Highlights
I nvest m ent Hi ghl i ght s 1) Stable revenue base from recurring management fees, anchored by 20 year agreements with the managed REITs. 2) Diverse sources of revenues from multiple businesses and a wide range real estate properties located throughout the U.S. of 3) Proven ability to grow fee reve
Slide 74: Investment Highlights
2) 3) Investment Highlights Stable revenue base from recurring management fees, anchored by 20 year agreements with the managed REITs. Diverse sources of revenues from multiple businesses and a wide range of real estate properties located throughout the U.S. Proven ability to grow fee revenues histo
Slide 75: RMR: Calculation of EBITDA and Adjusted EBITDA
R M R : C a l c u l a t i o n o f E B I T D A a n d Ad j u s t e d E B I T D A ( 1 ) For the three months months ended September 30, (1) Adjusted Revenues, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are calculated as presented in the tables above. We consider Adjusted Revenues, EBITDA, Adjus
Slide 76: HPT: Calculation of EBITDA and Adjusted EBITDA
E B I T D A a n d Ad j u s t e d E B I T D A ( 1 ) H P T: C a l c u l a t i o n o f ($ in 000s, except per share data) As of and for the three months September 30, As of and for the nine months September 30, 2015 2014 2015 2014 Net income Add: $ 61,185 36,628 $ 49,197 34,304 $ 185,912 107,918 $ 140,
Slide 77: HPT: Calculation of FFO and Normalized FFO
H P T: C a l c u l a t i o n o f F u n d s F r o m O p e r a t i o n s ( F F O ) a n d S h a r e h o l d e r s ( 1 ) N o r m a l i z e d F F O Av a i l a b l e f o r C o m m o n ($ in 000s, except per share data) As of and for the three months September 30, As of and for the nine months September 30
Slide 78: HPT: Definitions of Certain Non-GAAP Financial Measures
H P T: D e f i n i t i o n s o f C e r t a i n N o n - G A A P F i n a n c i a l M e a s u r e s Definition of EBITDA HPT calculates EBITDA and Adjusted EBITDA as shown on page 77. HPT considers EBITDA and Adjusted EBITDA to be appropriate measures of operating performance, along with net income, ne
Slide 79: TA: Calculation of Adjusted EBITDA and EBITDAR
TA: C a l c u l a t i o n o f Ad j u s t e d E B I T D A a n d E B I T D AR ( 1 ) Three Months Ended Septembe r 30, Nine Months Ended September 30, ($ in 000s) 2015 2014 2015 2014 Calculation of Adjusted EBITDA and Adjusted EBITDAR:(1) Net Income Add: income taxes Add: depreciation and amortization
Slide 80: TA: Calculation of Adjusted EBITDA and EBITDAR (continued)
TA: C a l c u l a t i o n o f Ad j u s t e d E B I T D A a n d E B I T D AR ( c o n t i n u e d ) (3) Real estate rent expense recognized under GAAP differs from TA’s obligation to pay cash for rent under its leases. Cash paid under real property lease agreements was $65,138 and $58,545 during the t
Slide 81: SNH: Calculation and Reconciliation of NOI to Net Income
S N H : C a l c u l a t i o n a n d R e c o n c i l i a t i o n o f N e t O p e r a t i n g I n c o m e ( N O I ) t o N e t I n c o m e ( 1 ) ($ in 000s) For the Three Months Ended For the Nine Months Ended 9/30/2015 9/30/2014 9/30/2015 9/30/2014 Revenues: Rental income Residents fees and services T
Slide 82: SNH: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
S N H : C a l c u l a t i o n a n d R e c o n c i l i a t i o n o f E B I T D A a n d Ad j u s t e d E B I T D A ( 1 ) ($ in 000s) For the Three Months Ended For the Nine Months Ended 9/30/2015 9/30/2014 9/30/2015 9/30/2014 Net income Interest expense Income tax expense Depreciation expense from con
Slide 83: SNH: Calculation and Reconciliation of FFO and Normalized FFO
S N H : C a l c u l a t i o n O p e r a t i o n s a n d R e c o n c i l i a t i o n o f F u n d s F r o m F F O ( 1 ) ( F F O ) a n d N o r m a l i z e d ($ in 000s) For the Three Months Ended For the Nine Months Ended 9/30/2015 9/30/2014 9/30/2015 9/30/2014 Net income Depreciation expense from cont
Slide 84: SNH: Definitions of Certain Non-GAAP Financial Measures
S N H : D e f i n i t i o n s o f C e r t a i n N o n - G A A P F i n a n c i a l M e a s u r e s Definition of NOI SNH calculates NOI as shown on page 82. The calculation of NOI excludes certain components of net income in order to provide results that are more closely related to SNH’s property lev
Slide 85: FVE: Calculation of EBITDA and Adjusted EBITDA
F V E : C a l c u l a t i o n o f E B I T D A a n d Ad j u s t e d E B I T D A ($ in 000s) For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Loss from continuing operations Add: interest and other expense Add: income tax expense (benefit) Add: depre
Slide 86: SIR: Calculation of Net Operating Income (NOI)
S I R : C a l c u l a t i o n o f P r o p e r t y O p e r a t i n g I n c o m e ( N O I ) ( 1 ) N e t ($ in 000s) For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Calculation of NOI: Rental income Tenant reimbursements and other income Real estate
Slide 87: SIR: Calculation of EBITDA and Adjusted EBITDA
E B I T D A a n d Ad j u s t e d E B I T D A (1 ) S I R : C a l c u l a t i o n o f ($ in 000s) For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Net income Plus: interest expense Plus: income tax expense $ 30,801 20,034 98 $ 23,742 3,033 30 $ 64,00
Slide 88: SIR: Calculation of FFO and Normalized FFO
S I R : C a l c u l a t i o n o f F u n d s f r o m O p e r a t i o n s ( F F O ) At t r i b u t e d t o S I R a n d N o r m a l i z e d F F O At t r i b u t e d t o S I R ( 1 ) (amounts in 000s, except per share data) For the three months ended For the nine months ended Se pte mbe r 30, September 3
Slide 89: SIR: Definitions of Certain Non-GAAP Financial Measures
S I R : D e f i n i t i o n s o f C e r t a i n N o n - G A A P F i n a n c i a l M e a s u r e s NOI The calculation of NOI excludes certain components of net income in order to provide results that are more closely related to SIR’s property level results of operations. SIR calculates NOI as shown
Slide 90: GOV: Calculation of Net Operating Income (NOI)
G O V: C a l c u l a t i o n o f P r o p e r t y O p e r a t i n g I n c o m e ( N O I ) ( 1 ) N e t ($ in 000s) For the three months ended S eptember 30, For the nine months ended S eptember 30, 2015 2014 2015 2014 Calculation of NOI (2): Rental income (3) Operating expenses Property net operating
Slide 91: GOV: Calculation of EBITDA and Adjusted EBITDA
G O V: C a l c u l a t i o n o f E B I T D A a n d Ad j u s t e d E B I T D A ( 1 ) ($ in 000s) For the three months ended S eptember 30, For the nine months ended S eptember 30, 2015 2014 2015 2014 Net income (loss) Add: Interest expense Income tax expense Depreciation and amortization Less: Income
Slide 92: GOV: Calculation of FFO and Normalized FFO
G O V: C a l c u l a t i o n o f F u n d s F r o m O p e r a t i o n s ( F F O ) F F O ( 1 ) a n d N o r m a l i z e d ($ in 000s, except per share data) For the three months ended S eptember 30, For the nine months ended S eptember 30, 2015 2014 2015 2014 Net income (loss) Add: Depreciation and amo
Slide 93: GOV: Definitions of Certain Non-GAAP Financial Measures
G O V: D e f i n i t i o n s o f C e r t a i n N o n - G A A P F i n a n c i a l M e a s u r e s Definition of NOI and Cash Basis NOI The calculation of NOI excludes certain components of net income (loss) in order to provide results that are more closely related to GOV’s property level results of o
Slide 94: GOV: Definitions of Certain Non-GAAP Financial Measures
GOV: Definitions of Certain Non-GAAP Financial Measures The calculation of NO exclides certain components of net income (loss) inorder fo provide resus Tat are moce closely related to GOVs property level results of operations: GOV calculates NOI on 2 GAAP basis as showin on page 91. GOV defines NOI