Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Investor Presentation (August 2018)
26 slides from Selectis Health,inc's investor presentation, Aug 27, 2018
Slide 1: Global Healthcare REIT Investor Presentation August 2018
O GLOBAL HEALTHCARE REIT August 2018 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 only owns high rent properties and is NOT a health care operator — Solid base of revenue-generating assets lea
Slide 5: Summary of Stabilized Property Portfolio
Summary of Stabilized Property Portfolio ALF = Assisted Living Facility SNF = Skilled Nursing Facility ILF= Independent Living Facility Property Faci Gross Annual Property Name yas u Beds/Units or Count Type Rent 2018 (3) Middle Georgia 1 SNF 100 beds $720,000 $720,000 Eastman, GA Glen Eagle 1 SNF 1
Slide 6: Annual Cash Flow Run-Rate by Property in 2018
Annual Cash Flow Run-Rate by Property in 2018 Middle Georgia $720,000 $304,800 $415,200 Glen Eagle $504,000 $209,536 $294,464 Warrenton $630,240 $159,389 $470,851 Southern Hills SNF $463,000 $254,081 $208,919 Southern Hills ALF $300,000 $254,081 $45,919 Southern Hills ILF $708,000 $254,081 $453,919
Slide 7: Stabilized Net Operating Income
Stabilized Net Operating Income 2018 Stabilized NOI + Expected Debt Service Total Expected Property Cash Flow Total Operating Costs 2 Operating Cash Flow Adjusted Funds From Operations (AFFO) Stabilized AFFO Multiple? 3) Based on stock price of $0.35 per share fo) GLOBAL HEALTHCARE REIT ies in opera
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: 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 * — Repositioned several assets with strong operators capable of driving dependable, stable performance — Sold one fa
Slide 10: Company Opportunities
Company Opportunities
Slide 11: 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 $1
Slide 12: 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 * As the company continues its acquisition campaign for healthcare real estate, it anticipates revenue & cash flow to in
Slide 13: 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 leases for its Greene Pointe, Providence and Warrenton facilities in Georgia, replacing existing leases which expired on June 30, 2016 * The new leases began on July 1, 2016, with initial term of
Slide 14: 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 — If this performance is sustained, the capital needed to fund the remaining campus improvements of $2.2mm will be re
Slide 15: 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. If
Slide 16: Traditional & HUD Refinancing Opportunities to Lower Interest Rates on Facilities
Traditional & HUD Refinancing Opportunities to Lower Interest Rates on Facilities * Closed a HUD refinancing 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) a * — Currently pursuing a HUD
Slide 17: 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 a
Slide 18: Industry Dynamics
Industry Dynamics
Slide 19: 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 the world? * Affordable Care Act introducing seniors into the market w
Slide 20: 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% 29% H Top 10 BH Top 25 lH Remaining Market Source: IBISWorld, Provider Magazine and Ba
Slide 21: REIT Consolidation Poised to Continue
REIT Consolidation Poised to Continue * In arecent trend, many REITs are pursuing a strategy of simplifying their business models by spinning off units into separate entities and then making acquisitions accretive to Closed Seniors Housing & Care Dollar Volume: earnings $2.1Bn for 4Q17 Seniors Housi
Slide 22: Key Takeaways
Key Takeaways Strong industry tailwinds for senior housing properties Simple, straight-forward business model Replacing several existing short-term leases with long-term leases to increase annual rental revenue Macon Facilities and the Tulsa Campus present opportunities to boost the existing revenue
Slide 23: Appendix
Appendix
Slide 24: Board of Directors
Board of Directors Lance Baller-CEO ‘Me Baller started a: interim CEO in November 2015. Mr Baller serves asa ciector nd cole or principal shareholder of several privately owned businesses. He s also the co-founder, farmer CEO and Presiden of ofina ple technology leader nthe production of oc aid Jodi
Slide 25: Key Statistics
es Key Statistics sorcacs Stock Price (as of 8/24/2018) $0.32 Revenue (ttm) $3.3M 52 Week Low-High $0.30-$0.55 Diluted EPS (ttm) $(0.11)' Avg. Daily Vol. (30aay) 24,000 Cash (mrq) $0.025M Shares Outstanding 27.3M Total Assets (mrq) $38.2M Public Float (est.) 22.0M Total Debt (mrq) $35.4M inelder 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
Global Healthcare REIT — Investor Presentation (August 2018) on 6ix