Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q3 2019 Earnings Presentation
39 slides from Diversified Healthcare Trust's earnings presentation, Nov 7, 2019
Slide 1: Third Quarter 2019 Supplemental Operating and Financial Data
Senior Housing Properties Trust Third Quarter 2019 Supplemental Operating and Financial Data __ > 28515 Westinghouse Place, Valencia, CA- Tenant: Advanced Bionics LL Square Feet: 146,3 AM amounts i in this reporta are re unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE CORPORATE INFORMATION 3 Company Profile .................................................................................................................................................................................................................... 4 Investor Information..
Slide 3: Senior Housing Properties Trust 3 Supplemental Operating and Financial Data, September 30, 2019 3
Senior Housing Properties Trust 3 Supplemental Operating and Financial Data, September 30, 2019 3
Slide 4: Company Profile
COMPANY PROFILE The Company: Corporate Headquarters: Senior Housing Properties Trust, or SNH, we, our or us, is a real estate investment trust, or REIT, which owns Two Newton Place properties leased to medical providers, clinics, medical related businesses and biotech laboratory tenants, or 255 Wash
Slide 5: Investor Information
INVESTOR INFORMATION Board of Trustees John L. Harrington Lisa Harris Jones Jeffrey P. Somers Independent Trustee Lead Independent Trustee Independent Trustee Jennifer B. Clark Adam D. Portnoy Managing Trustee Chair of the Board & Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management Jenn
Slide 6: Research Coverage
RESEARCH COVERAGE Equity Research Coverage B. Riley FBR Bank of America / Merrill Lynch JMP Securities Bryan Maher Joshua Dennerlein Peter Martin (646) 885-5423 (646) 855-1681 (415) 835-8904 bmaher@brileyfbr.com joshua.dennerlein@bofa.com pmartin@jmpsecurities.com Morgan Stanley Raymond James RBC Ca
Slide 7: Senior Housing Properties Trust 7 Supplemental Operating and Financial Data, September 30, 2019
Senior Housing Properties Trust 7 Supplemental Operating and Financial Data, September 30, 2019
Slide 8: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Selected Balance Sheet Data: Total gross assets (1) $ 8,572,131 $ 8,713,990 $ 8,706,590 $ 8,694,818 $ 9,061,046 Total assets $ 6,916,990 $ 7,098,71
Slide 9: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data) As of As of September 30, 2019 December 31, 2018 ASSETS Real estate properties: Land $ 825,451 $ 844,567 Buildings and improvements 7,019,361 7,031,733 Total real estate properties, gross 7,844,812 7,876,300 Accumulated
Slide 10: Condensed Consolidated Statements of Income (Loss)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (amounts in thousands, except per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Revenues: Rental income $ 148,011 $ 173,648 $ 459,349 $ 521,961 Residents fees and services 107,816 10
Slide 11: Condensed Consolidated Statements of Income (Loss) (Additional Data)
DATA) DATA) CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (ADDITIONAL DATA) (dollars in thousands) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Additional Data: General and administrative expenses / total assets (at end of period) (1) 0.1%
Slide 12: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Nine Months Ended September 30, 2019 2018 Cash flows from operating activities: Net (loss) income $ (32,258) $ 409,596 Adjustments to reconcile net (loss) income to cash provided by operating activities: Depreciation and
Slide 13: Condensed Consolidated Statements of Cash Flows (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (amounts in thousands) For the Nine Months Ended September 30, 2019 2018 (Decrease) increase in cash and cash equivalents and restricted cash $ (6,622) $ 108,671 (CONTINUED) Cash and cash equivalents and restricted cash at beginning of peri
Slide 14: Debt Summary
DEBT SUMMARY (dollars in thousands) As of September 30, 2019 Coupon Interest Principal Maturity Due at Years to Rate Rate (1) Balance (2) Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: Unsecured revolving credit facility (LIBOR + 120 b.p.) (3) 3.147% 3.147% $ 589,000 1/15/2022
Slide 15: Debt Maturity Schedule
DEBT MATURITY SCHEDULE (dollars in thousands) As of September 30, 2019 Unsecured Unsecured Secured Floating % of Fixed % of Fixed Rate % of % of Year Rate Debt Total Rate Debt Total Debt (1) Total Total Total 2019 $ — $ — $ 907 $ 907 2020 350,000 200,000 3,799 553,799 2021 — 300,000 4,097 304,097 20
Slide 16: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Leverage Ratios: Net debt (1) / total gross assets (2) 42.4% 42.9% 42.8% 41.7% 40.8% Net debt (1) / gross book value of real estate assets (3) 42.5% 43.1
Slide 17: Summary of Capital Expenditures
SUMMARY OF CAPITAL EXPENDITURES (dollars and sq. ft. in thousands, except per sq. ft. and unit data) For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 MOB tenant improvements (1) $ 2,584 $ 2,008 $ 5,000 $ 4,283 $ 5,073 MOB leasing costs (2) 2,038 1,144 4,132 845 3,686 MOB
Slide 18: Property Acquisitions / Dispositions Information Since January 1, 2019
PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE JANUARY 1, 2019 (dollars in thousands) Acquisitions: We have not acquired any properties since January 1, 2019. Dispositions: (1) Date Sold Location Type of Property Number of Buildings Gross Sales Price (2) 2/21/2019 Alachua, FL Life Science 1
Slide 19: Calculation and Reconciliation of NOI and Cash Basis NOI
CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI (1) (amounts in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 9/30/2019 9/30/2018 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 148,011 $ 153,097 $ 158,241
Slide 20: NOI and Cash Basis NOI
NOI AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2019 9/30/2018 % Change 9/30/2019 9/30/2018 % Change NOI: Life Science $ 35,565 $ 37,654 (5.5)% $ 111,240 $ 112,249 (0.9)% Medical Office 30,261 34,186 (11.5)% 97,490 102,475 (4.9)% Total MOB
Slide 21: Same Property NOI and Cash Basis NOI
SAME PROPERTY NOI AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended (2) For the Nine Months Ended (3) 9/30/2019 9/30/2018 % Change 9/30/2019 9/30/2018 % Change NOI: Life Science $ 34,378 $ 33,888 1.4 % $ 97,555 $ 96,313 1.3 % Medical Office 30,263 32,256 (6.2)% 92,069 94,191 (
Slide 22: Calculation and Reconciliation of NOI by Segment (Quarter)
CALCULATION AND RECONCILIATION OF NOI, CASH BASIS NOI, SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI BY SEGMENT (1) 2018 (dollars in thousands) AND For the Three Months Ended September 30, 2019 For the Three Months Ended September 30, 2018 Triple Net Triple Net Leased Managed Leased Senior Mana
Slide 23: Calculation and Reconciliation of NOI by Segment (Nine Months)
CALCULATION AND RECONCILIATION OF NOI, CASH BASIS NOI, SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI BY SEGMENT (1) 2018 (dollars in thousands) AND For the Nine Months Ended September 30, 2019 For the Nine Months Ended September 30, 2018 Triple Net Triple Net Leased Managed Leased Senior Manage
Slide 24: Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
re CALCULATION AND RECONCILIATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) (amounts in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 9/30/2019 9/30/2018 Net (loss) income $ (27,946) $ (35,816) $ 31,504 $ (117,182) $ 47,202 $ (
Slide 25: Calculation and Reconciliation of FFO and Normalized FFO
CALCULATION AND RECONCILIATION OF FFO AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS (1) (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 9/30/2019 9/30/2018 Net (loss) income attributable to
Slide 26: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures We present certain "non-GAAP financial measures" within the meaning of applicable Securities and Exchange Commission, or SEC, rules, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property
Slide 27: Senior Housing Properties Trust 27 Supplemental Operating and Financial Data, September 30, 2019 27
Senior Housing Properties Trust 27 Supplemental Operating and Financial Data, September 30, 2019 27
Slide 28: Portfolio Summary by Geographic Diversification and Property Type
PORTFOLIO SUMMARY BY GEOGRAPHIC DIVERSIFICATION AND PROPERTY TYPE Geographic Diversification Property Type (based on Gross Book Value of Real Estate Assets as of September 30, 2019) (1) (based on Q3 2019 NOI) (2) IL: 3% VA: 3% Wellness NC: 3% Centers: 4% MD: 4% WI: 4% Independent GA: 5% Medical Livi
Slide 29: Portfolio Summary by Property Type and Tenant
PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (dollars in thousands, except investment per unit or square foot) As of September 30, 2019 % of % of Square Feet Carrying Investment Per Q3 2019 Q3 2019 Number of or Number of Value % of Total Square Foot Q3 2019 Total Q3 2019 Total Properties Units of I
Slide 30: Occupancy by Property Type and Tenant
OCCUPANCY BY PROPERTY TYPE AND TENANT (1) As of and For the Twelve Months Ended (2) 6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018 Property Type: Life science 97.9% 97.8% 99.0% 98.8% 98.8% Medical office 89.1% 91.7% 91.7% 93.6% 93.8% Weighted average occupancy MOBs (3) 92.5% 94.0% 94.5% 95.6% 95
Slide 31: Rent Coverage by Tenant
RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) (1) (dollars in thousands) For the Twelve Months Ended Tenant 6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018 AND WELLNESS CENTERS) Five Star (2) 1.52x 1.53x 0.96x 1.00x 1.06x Brookdale Senior Living 1.95x
Slide 32: MOB Portfolio Segment - Results of Operations (Quarter)
) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) 2018 As of and For the Three Months Ended September 30, 2019 As of and For the Three Months Ended September 30, 2018 Life Science Medical Office Total MOB Life Science Medical Office Total MOB AND Number of Buildings
Slide 33: MOB Portfolio Segment - Results of Operations (Nine Months)
) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) 2018 As of and For the Nine Months Ended September 30, 2019 As of and For the Nine Months Ended September 30, 2018 Life Science Medical Office Total MOB Life Science Medical Office Total MOB AND Number of Buildings 35
Slide 34: Triple Net Leased Senior Living Communities Segment - Results of Operations
TRIPLE NET LEASED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (1) (dollars in thousands) As of and For the Three Months Ended September 30, As of and For the Nine Months Ended September 30, 2019 2018 2019 2018 Number of Properties 209 229 209 229 Number of Units 22,242 24,298 22,242 24
Slide 35: Managed Senior Living Communities Segment - Results of Operations
MANAGED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended September 30, As of and For the Nine Months Ended September 30, 2019 2018 2019 2018 Number of Properties (1) 77 75 77 75 Number of Units (1) 10,1
Slide 36: MOB Leasing Summary
MOB LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Buildings 140 145 153 155 155 Total sq. ft. (1) 12,179 12,372 12,547 12,600 12,600 Occupancy (2) 92.3% 92.5% 94.0% 94.5% 95.6% Leasi
Slide 37: Tenants Representing 1% or More of Total Annualized Rental Income
TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENTAL INCOME (dollars in thousands) As of September 30, 2019 % of Annualized Annualized Rental Tenant Facility Type Rental Income (1) Income (1) Expiration 1 Five Star Senior Living Inc. (2) Senior living $ 129,785 20.0% 2019 2 Vertex Pharmaceutic
Slide 38: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE (1) (dollars in thousands) As of September 30, 2019 MOB Annualized Rental Income Expiring Cumulative Percentage of Annualized Rental Percent of Total Annualized Annualized Rental Income Year Income(2) Rental Income Expiring Expiring 2019 $ 7,588 2.0% 2.0% 2020 30,814 8.0% 1
Slide 39: Warning Concerning Forward-Looking Statements
WARNING CONCERNING FORWARD-LOOKING STATEMENTS 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”,
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