Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Q4 2022 Earnings Presentation
46 slides from Diversified Healthcare Trust's earnings presentation, Mar 1, 2023
Slide 1: Fourth Quarter 2022 Supplemental Operating and Financial Data
FOURTH QUARTER 2022 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Muse at Torrey Pines San Diego, CA
Slide 2: Table of Contents
Supplemental Q4 2022 2 CORPORATE INFORMATION Company Profile ...............................................................................................................................................................................................................................................
Slide 3: Company Profile
Supplemental Q4 2022 3 The Company: Diversified Healthcare Trust, or DHC, we, our or us, is a real estate investment trust, or REIT, which owns healthcare related properties, including medical office and life science buildings, senior living communities and wellness centers located throughout the U.
Slide 4: Investor Information
Supplemental Q4 2022 4 Board of Trustees: John L. Harrington Lisa Harris Jones Daniel F. LePage Independent Trustee Lead Independent Trustee Independent Trustee David A. Pierce Jeffrey P. Somers Independent Trustee Independent Trustee Jennifer F. Francis Adam D. Portnoy Managing Trustee Chair of the
Slide 5: Research Coverage
Supplemental Q4 2022 5 Equity Research Coverage: B. Riley Securities, Inc. BofA Securities Colliers Securities LLC Bryan Maher Joshua Dennerlein David Toti (646) 885-5423 (646) 855-1681 (401) 488-4797 bmaher@brileyfin.com joshua.dennerlein@bofa.com david.toti@colliers.com JMP Securities RBC Capital
Slide 6: Key Financial Data
Supplemental Q4 2022 6 Key Financial Data RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Selected Balance Sheet Data: Total gross assets $ 7,830,445 $ 7,857,421 $ 7,884,243 $ 8,465,059 $ 8,361,321 Total assets $ 6,002,093 $ 6,072,
Slide 7: Condensed Consolidated Balance Sheets
Supplemental Q4 2022 7 December 31, 2022 December 31, 2021 Assets Real estate properties: Land $ 668,918 $ 741,501 Buildings and improvements 6,023,625 6,072,055 Total real estate properties, gross 6,692,543 6,813,556 Accumulated depreciation (1,828,352) (1,737,807) Total real estate properties, net
Slide 8: Consolidated Statements of Income (Loss)
Supplemental Q4 2022 8 For the Three Months Ended December 31, For the Year Ended December 31, 2022 2021 2022 2021 Revenues: Rental income $ 68,973 $ 102,034 $ 260,740 $ 408,589 Residents fees and services 267,912 234,697 1,022,826 974,623 Total revenues 336,885 336,731 1,283,566 1,383,212 Expenses:
Slide 9: Consolidated Statements of Income (Loss) (Additional Data)
Supplemental Q4 2022 9 For the Three Months Ended December 31, For the Year Ended December 31, 2022 2021 2022 2021 Additional Data: General and administrative expenses / total assets (at end of period) 0.1 % 0.1 % 0.4 % 0.5 % Non-cash straight line rent adjustments included in rental income $ 1,723
Slide 10: Debt Summary
Supplemental Q4 2022 10 Coupon Interest Principal Maturity Due at Years to Rate Rate Balance Date Maturity Maturity Secured Floating Rate Debt: Credit facility (1) (2) (3) 6.884% 6.884% $ 700,000 1/15/2024 $ 450,000 1.0 Weighted average rate / total secured floating rate debt 6.884% 6.884% $ 700,000
Slide 11: Debt Maturity Schedule
Supplemental Q4 2022 11 $113,627 $586,373 $250,000 $500,000 $500,000 $500,000 $600,000 $16,413 $1,834 $2,001 $904 $302 $315 $330 $346 $362 $7,261 Secured Floating Rate Debt Unsecured Fixed Rate Debt Secured Fixed Rate Debt 2023 2024 2025 2026 2027 2028 2029 2030 2031 Thereafter $0 $100,000 $200,000
Slide 12: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q4 2022 12 Leverage Ratios, Coverage Ratios and Public Debt Covenants RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Leverage Ratios: Net debt / total gross assets 30.6% 29.2% 28.4% 25.2% 32.3% Net debt / gross book v
Slide 13: Summary of Capital Expenditures
Supplemental Q4 2022 13 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) Summary of Capital Expenditures RETURN TO TABLE OF CONTENTS For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Office Portfolio lease related costs $ 9,558 $ 4,277 $ 4,633 $ 6,759
Slide 14: Redevelopment Information - Office Portfolio
Supplemental Q4 2022 14 Project Location Type of Property Square Feet (1) Estimated Project Costs Total Costs Incurred as of December 31, 2022 Estimated Completion Date 10030 North MacArthur Boulevard Irving, TX Medical Office 94,137 $ 3.5 $ 2.4 Q1 2023 1415 West 3rd Street Tempe, AZ Life Science 82
Slide 15: Redevelopment Information (continued) - SHOP
Supplemental Q4 2022 15 Project Location Type of Property Number of Units Estimated Project Costs (1) Total Costs Incurred as of December 31, 2022 Estimated Completion Date Five Star Premier Residences of Teaneck Teaneck, NJ IL/AL 218 $ 9.8 $ 7.0 Q2 2023 Leisure Park Lakewood, NJ IL/AL/MC 355 $ 9.0
Slide 16: Property Acquisitions / Dispositions Information
Supplemental Q4 2022 16 Property Acquisitions / Dispositions Information Since January 1, 2022 Acquisitions: Date Acquired Location Type of Property Number of Properties Sq. Ft. Gross Purchase Price Gross Purchase Price per Sq. Ft. Cap Rate (1) Weighted Average Remaining Lease Term (2) Occupancy (3)
Slide 17: Investments in Unconsolidated Joint Ventures
Supplemental Q4 2022 17 Investments in Unconsolidated Joint Ventures (1) (dollars in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2022 Year Ended December 31, 2022 Joint Venture Location Type of Property Number of Properties Square Feet Occupancy at December 31, 2022 Weighted Average Le
Slide 18: Investments in Unconsolidated Joint Ventures (continued)
Supplemental Q4 2022 18 Investments in Unconsolidated Joint Ventures (continued) (1) (dollars in thousands) RETURN TO TABLE OF CONTENTS As of December 31, 2022 (1) Our property list, including properties owned by these unconsolidated joint ventures, is available on our website. (2) Based on the aggr
Slide 19: Calculation and Reconciliation of NOI and Cash Basis NOI
Supplemental Q4 2022 19 Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Calculation of NOI and Cash Basis NOI: Revenues:
Slide 20: NOI and Cash Basis NOI
Supplemental Q4 2022 20 For the Three Months Ended For the Year Ended 12/31/2022 12/31/2021 % Change 12/31/2022 12/31/2021 % Change NOI: Life Science $ 14,848 $ 28,079 (47.1) % $ 41,742 $ 121,916 (65.8) % Medical Office 20,034 29,558 (32.2) % 86,349 118,368 (27.1) % Total Office Portfolio 34,882 57,
Slide 21: Same Property NOI and Cash Basis NOI
Supplemental Q4 2022 21 Same Property NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2022 12/31/2021 % Change 12/31/2022 12/31/2021 % Change NOI: Life Science $ 7,124 $ 6,398 11.3 % $ 27,043 $ 25,880 4.5 % Medical Office
Slide 22: Reconciliation of NOI by Segment - Office Portfolio
Supplemental Q4 2022 22 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment RETURN TO TABLE OF CONTENTS (dollars in thousands) Office Portfolio For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2022 9/30/2022 6/30
Slide 23: Reconciliation of NOI by Segment - SHOP
Supplemental Q4 2022 23 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) SHOP For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2022 9/30/2022 6/30
Slide 24: Reconciliation of NOI by Segment - Non-Segment
Supplemental Q4 2022 24 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) Non-Segment For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2022 9/30/20
Slide 25: Reconciliation of NOI by Segment - Consolidated
Supplemental Q4 2022 25 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) Consolidated For the Three Months Ended Calculation of NOI and Cash Basis NOI: 12/31/2022 9/30/2
Slide 26: Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q4 2022 26 Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss) income $ (65,322) $ (81,492) $ (109,383) $ 240,42
Slide 27: Calculation and Reconciliation of FFO and Normalized FFO
Supplemental Q4 2022 27 Calculation and Reconciliation of FFO and Normalized FFO Attributable to Common Shareholders (amounts in thousands, except per share data) RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022
Slide 28: Portfolio Summary by Geographic Diversification and Property Type
Supplemental Q4 2022 28 FL: 10% CA: 9% TX: 9% GA: 6% MD: 5% NC: 4% WI: 4% VA: 4% IL: 4% IN: 4% 26 Other States + D.C.: 41% (based on Gross Book Value of Real Estate Assets as of December 31, 2022) (1) Senior living communities are categorized by the type of living units which constitute a majority o
Slide 29: Portfolio Summary
Supplemental Q4 2022 29 Portfolio Summary RETURN TO TABLE OF CONTENTS (dollars in thousands, except investment per square foot or unit) As of December 31, 2022 Number of Properties Square Feet or Number of Units Gross Book Value of Real Estate Assets % of Total Gross Book Value of Real Estate Assets
Slide 30: SHOP Unit Count
Supplemental Q4 2022 30 SHOP Unit Count RETURN TO TABLE OF CONTENTS Unit Count as of December 31, 2022 Manager Location Number of Properties (1) Assisted Living Independent Living and Active Adult Memory Care Skilled Nursing Total Five Star Senior Living National 119 6,494 9,685 1,544 — 17,723 Oaks-
Slide 31: Rent Coverage and Occupancy
Supplemental Q4 2022 31 Rent Coverage and Occupancy Rent Coverage (1): For the Twelve Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Triple net leased senior living communities 1.23 x 1.24 x 1.24 x 1.27 x 1.26 x Wellness centers (2) 1.80 x 1.72 x 1.59 x 1.68 x 1.60 x Total 1.39 x 1.
Slide 32: Office Portfolio - Results of Operations
Supplemental Q4 2022 32RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended December 31, 2022 As of and For the Three Months Ended December 31, 2021 Life Science Medical Office Total Office Portfolio Life Science
Slide 33: Office Portfolio and Same Property - Results of Operations (continued)
Supplemental Q4 2022 33 Office Portfolio and Same Property - Results of Operations (continued) RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Year Ended December 31, 2022 As of and For the Year Ended December 31, 2021 Life Sc
Slide 34: Office Portfolio - Results of Operations (quarterly)
Supplemental Q4 2022 34 (1) Same property includes those properties classified as same property for the three months ended December 31, 2022 for all periods presented. RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Mont
Slide 35: SHOP Segment and Same Property - Results of Operations
Supplemental Q4 2022 35 SHOP Segment and Same Property - Results of Operations RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Number of Prope
Slide 36: SHOP Segment - Results of Operations
Supplemental Q4 2022 36RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended December 31, 2022 As of and For the Three Months Ended December 31, 2021 Five Star Managed Communities Other Operator Manag
Slide 37: SHOP Segment - Results of Operations (year)
Supplemental Q4 2022 37RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Year Ended December 31, 2022 As of and For the Year Ended December 31, 2021 Five Star Managed Communities Other Operator Managed Communities(1
Slide 38: Office Portfolio Leasing Summary
Supplemental Q4 2022 38 Office Portfolio Leasing Summary (1) (2) (1) The leasing summary on this page is based on leases entered into during the periods indicated. (2) Effective as of the date of deconsolidation, excludes properties owned by the unconsolidated joint ventures in which we own an equit
Slide 39: Tenants Representing 1% Or More of Total Annualized Rental Income
Supplemental Q4 2022 39 As of December 31, 2022 Tenants Representing 1% Or More of Total Annualized Rental Income RETURN TO TABLE OF CONTENTS (dollars in thousands) Tenant Type of Property Annualized Rental Income % of Annualized Rental Income Expiration 1 Advocate Aurora Health Medical office $ 16,
Slide 40: Office Portfolio Lease Expiration Schedule
Supplemental Q4 2022 40 Office Portfolio Lease Expiration Schedule RETURN TO TABLE OF CONTENTS (dollars in thousands) As of December 31, 2022 Office Portfolio Annualized Rental Income Expiring Year Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of Total A
Slide 41: Non-Segment Lease Expiration Schedule
Supplemental Q4 2022 41 Non-Segment Annualized Rental Income Expiring Year Number of Properties Number of Units or Square Feet Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of Total Annualized Rental Income Expiring 2023 — — $ — —% —% 2024 — — — —% —% 20
Slide 42: Non-GAAP Financial Measures
Supplemental Q4 2022 42 Non-GAAP Financial Measures We present certain "non-GAAP financial measures" within the meaning of applicable rules of the Securities and Exchange Commission, or the SEC, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property Cash Basis NOI,
Slide 43: Definitions: Adjusted Total Assets and Other Terms
Supplemental Q4 2022 43 Adjusted total assets Adjusted total assets is the original cost of real estate assets calculated in accordance with GAAP before depreciation and after impairment write downs, if any, and excludes accounts receivable and intangible assets. AlerisLife AlerisLife means AlerisLi
Slide 44: Definitions: GAAP and Other Terms
Supplemental Q4 2022 44 GAAP GAAP is U.S. generally accepted accounting principles. Gross book value of real estate assets Gross book value of real estate assets is real estate assets at cost plus certain acquisition costs, before depreciation and purchase price allocations, less impairment writedow
Slide 45: Definitions: Office Portfolio and Other Terms
Supplemental Q4 2022 45 Office Portfolio Office Portfolio consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. Our medical office and life science property
Slide 46: Forward-Looking Statements
Supplemental Q4 2022 46 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”, “anticipate”, “intend
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