Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Investor Presentation (November 2019)
26 slides from Selectis Health,inc's investor presentation, Nov 19, 2019
Slide 1: Global Healthcare REIT Investor Presentation November 2019
O GLOBAL HEALTHCARE REIT November 2019 Investor Presentation HEALTHCARE REIT
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: Company Overview
Company Overview
Slide 4: About Global Healthcare
About Global Healthcare * Global Healthcare REIT (Ticker: GBCS) owns senior healthcare properties across the West South Central and South Atlantic — 11 senior healthcare facilities — Global owns high rent properties as well as operates several of its facilities — Solid base of revenue-generating ass
Slide 5: Summary of Stabilized Property Portfolio
Summary of Stabilized Property Portfolio ALF = Assisted Living Facility SNF = Skilled Nursing Facility Property Name Property Facility Count Beds/Units Stabilized Annual ILF= Independent Living Facility Location Type Property EBITDA 2020 (3) Middle Georgia 1 SNF 100 beds $720,000 Eastman, GA Glen Ea
Slide 6: Annual Cash Flow Run-Rate by Property in 2020
Annual Cash Flow Run-Rate by Property in 2020 Property Names Projected EBITDA Cash Flow Middle Georgia $720,000 $305,160 $414,840 Glen Eagle $600,000 $263,520 $336,480 Warrenton $636,480 $233,419 $403,061 Southern Hills SNF $720,000 $263,283 $456,717 Southern Hills ALF $300,000 $263,283 $36,717 Sout
Slide 7: Stabilized Net Operating Income
Stabilized Net Operating Income 2020 Stabilized Property EBITDA 4 S 5,481,580 Expected Debt Service 2,752,908 Total Expected Property Cash Flow 2,728,672 Total Operating Costs 2 750,000 Operating Cash Flow S 1,978,672 Adjusted Funds From Operations S 0.07 (AFFO) Stabilized AFFO Multiple? 3.47x O $12
Slide 8: 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 ¢ Annual Escalation clauses between 2 and 3% ¢ Strategic combination of short-
Slide 9: Operational Flexibility/Focus
Operational Flexibility/Focus ¢ Global Healthcare internally operates and manages 3 facilities — Selected various facilities to manage based on the underlying opportunity set: * Glen Eagle in Abbeville, GA * Southern Hills SNF in Tulsa, OK * Southern Hills ILF in Tulsa, OK e Allows direct influence
Slide 10: Successful Turnaround Creates New Business Model
Successful Turnaround Creates New Business Model * Management inherited a bankrupt operator in 4 of its 11 buildings, three closed facilities and a company on the brink of insolvency in 2016 * Repositioned several assets with strong operators capable of driving dependable, stable performance - Sold
Slide 11: Company Opportunities
Company Opportunities
Slide 12: Global Healthcare Acquisition Strategy
Global Healthcare Acquisition Strategy * — Identify properties with historical high patient occupancy (census) that have recently underperformed due to financial constraints of the owner or poor management: Location, Location, Location — Global seeks to purchase discounted properties that require mo
Slide 13: 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 or managed independently * Asthe company continues its acquisition campaign for healthcare real estate, it anticipates re
Slide 14: Short-term Leases Allow the Company to Increase Rental Revenue
Short-term Leases Allow the Company to Increase Rental Revenue * Global signed three long-term operating Three Long-term Leases to Increase leases for its Greene Pointe, Providence and Warrenton facilities in Georgia, replacing Annual Rental Revenue existing leases which expired on June 30, (S in Mi
Slide 15: Tulsa Campus Presents Significant Upside
Tulsa Campus Presents Significant Upside Opportunity to Boost Cash Flow * — The Tulsa SNF continues to demonstrate encouraging performance following its renovation and new leadership — We reached a settlement agreement with the Receivership to execute an OTA to transfer the CON and license to an ent
Slide 16: Macon Facility Call Option
Macon Facility Call Option * — Archway in Macon, GA, reopened in December 2016 with lease commencement in February 2017. Subject to escalating base rent in addition to occupancy based rent with a carve out to sell 72 beds * Operator has a right of first refusal to transfer and operate the 72 beds. I
Slide 17: Traditional & HUD Refinancing Opportunities to Lower Interest Rates
Traditional & HUD Refinancing Opportunities to Lower Interest Rates on Facilities Closed a HUD refinance on Sparta in October 2017 at 3.88% for 30 years — Cash flow neutral after including the $3,000 monthly contribution to the replacement reserve (restricted cash) * Closed a HUD refinance on Warren
Slide 18: Abbeville Property Acquisition
Abbeville Property Acquisition * In March 2017, after working closely with state officials, we saved the CON for a closed SNF in Abbeville, GA, and put it in our control dba Glen Eagle Healthcare & Rehab * — In April 2017, we successfully bid $2.1mm for the SNF at the foreclosure sale * — Utilizing
Slide 19: Industry Dynamics
Industry Dynamics
Slide 20: Aging Population a Strong Market Driver
Aging Population a Strong Market Driver Why Senior Healthcare Facilities? U.S. Population Growth of Age 65 & 85° * Demographic “tidal wave” heading toward the senior care industry * Seniors are the fastest growing population in m@ 85+ the world? @ 65+ * Affordable Care Act introducing seniors into t
Slide 21: 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% 22% oe 29% H Top 10 BH Top 25 © Remaining Market Source: IBISWorld, Provider Magazine and B
Slide 22: Key Takeaways
Key Takeaways * Strong industry tailwinds for senior housing properties * Company’s turnaround in the later stages ¢ Shifting to operating our properties internally to increase cash flow *« Macon Facilities and the Tulsa Campus present immediate near-term opportunities to boost the existing revenue
Slide 23: Appendix
Appendix
Slide 24: Board of Directors
Board of Directors ¢ Lance Baller-CEO Mr Baller started as interim CEO in November 2015. Mr Baller serves as a director and sole or principal shareholder of several privately owned businesses. He is also the co-founder, former CEO and President of lofina plc, a technology leader in the production of
Slide 25: Key Statistics
Key Statistics (ore.cacs; Stock Price (as of 11/15/2019) $0.22 Revenue (ttm) $4.8M 52 Week Low-High $0.18-S0.42 Diluted EPS (ttm) $(0.05)' Avg. Daily Vol. (30 day) 24,000 Cash (mrq) $1.3M Shares Outstanding 27.4M Total Assets (mrq) $40.0M Public Float (est.) 21.5M Total Debt (mrq) $38.0M insider Hol
Slide 26: 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 Investme
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