Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Rocky Mountain Microcap Conference 2018
26 slides from Selectis Health,inc's conference presentation, Apr 24, 2018
Slide 1: Global Healthcare REIT Investor Presentation
O GLOBAL HEALTHCARE REIT Rocky Mountain Microcap Conference April 2018 Investor Presentation ° GLOBAL SSS
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: About Global Healthcare
About Global Healthcare + Global Healthcare REIT (Ticker: GBCS) owns senior healthcare properties across the Southwest and South Atlantic — Li senior healthcare facilities = Global only owns high rent properties and is NOT a health care operator — Solid base of revenue-generating assets leased to pr
Slide 4: Annual Cash Flow Run-Rate by Property in 2018
Annual Cash Flow Run-Rate by Property in 2018 i a Middle Georgia $720,000 $304,800 $415,200 Glen Eagle $508,000 $209,536 $294,464 Warrenton $630,240 $159,389 $470,851 Southern Hills SNF $463,000 $254,081 $208,919 Southern Hills ALF $00,000 $254,081 $45,919 Southern His LF $708,000 $254,081 $453,919
Slide 5: 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? $5,831,304 3,007,882 2,823,422 650,000 $2,173,422 $0.08 5.55x
Slide 6: Successful Turnaround Creates New Business Model
Successful Turmaround 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 facility
Slide 7: Company Opportunities
Company Opportunities
Slide 8: Global Healthcare Acquisition Strategy
Global Healthcare Acquisition Strategy + Global Healthcare Acquisitions Identity historical high patient occupancy (census) property's that have recently ‘been underperforming due to financial constraints of the owner OF poor ‘management: Location, Location, Location = Focus only in Certificate of N
Slide 9: 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 increa
Slide 10: Typical Lease Structure
Typical Lease Structure + Lease structures favorable to Global Healthcare igated for all liabilities of the property — “Triple net basis” terms; lessee is typically ol including: + Insurance + Taxes + Facility Maintenance + Annual Escalation clauses between 2 and 3% + Strategic combination of short-
Slide 11: Summary of Stabilized Property Portfolio
Summary of Stabilized Property Portfolio ALF = Assisted Living Facility _ SNF = Skilled Nursing Facility ILF= Independent Living Facility propertyname PEOBEMtY. Facility gs rypieg FOSS Annual — Straightline cation Count Type Rent 2018 Rent Middle Georgia 1 | SNF | 100beds | $720,000 $806,640 | Eastm
Slide 12: 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 o
Slide 13: Macon Facilities and Tulsa Campus Present Upside Opportunities
Macon Facilities and Tulsa Campus Present Upside Opportunities to Boost Cash Flow + 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 g with a carve out to sell 72 beds * Operator has a right
Slide 14: Traditional & HUD Refinancing Opportunities to Lower Interest Rates
Traditional & HUD Refinancing Opportunities to Lower Interest Rates on Facilities * Closed @ 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) * Currently pursuing a HUD ref
Slide 15: 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 $2.1 million for the SNF at the foreclosure sale * Utilizin
Slide 16: Industry Dynamics
Industry Dynamics
Slide 17: Trillion Dollar Market Opportunity
Trillion Dollar Market Opportunity + $1trllion U.S. Healthcare Real Estate Market US Senor Housha Maret Growth: 2005-2086? + Target segment of Senior Housing and Skilled = Nursing comprises 25% or $250 billion ofthe total Healthcare REIT market a + Strong growth in target market segment = f + REITs
Slide 18: Aging Population a Strong Market Driver
Aging Population a Strong Market Driver Why Senior Healthcare Facilities? Demographic “tidal wave” heading toward to senior care industry Seniors are the fastest growing population in the world Affordable Care Act introducing seniors into ‘the market who can now better afford care Seniors Housing Oc
Slide 19: 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 18% 20% 22% 25% 29% 78% rm @ Top 10 B Top 25 © Remaining Market ‘Source: letsWorld, Provider Ma
Slide 20: REIT Consolidation Poised to Continue
REIT Consolidation Poised to Continue + Ina recent 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 earnings — Example: Ventas, one of the largest ‘owners of health-care properties, f
Slide 21: 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
Slide 22: Appendix
Appendix
Slide 23: Board of Directors
Board of Directors + Lance Baller-CEO * Adam Desmond- Director SSeS. GLOBAL
Slide 24: Key Statistics
ee Key Statistics crc.cecs Stock Price jrers2uac $039 Revenue (itm) $3.1M 52 Week Low-High $0.30-80.55 Diluted EPS (rtm) $0.12) ‘aug. Dally VoL. soar) 2,000 Cash ra) $02M Shares Outstanding 268M Total Assets (mra) $38.2M Public Fat (est) Ja% Total Debt(mra) $35.1M esa mom, Total Lables (ra) 359M Ins
Slide 25: Total Enterprise Value (at Market Value)
Total Enterprise Value (atmarket value)! Total Net Debt $ 34,491,000 Preferred stock 776,000 Market value of 10,257,000 equity Total Enterprise $45,524,000 Value fe) GLOBAL 2) cof December 31,2027 Total Enterprise Value (at Market Value) Total Debt 1m Preferred Stock 1m Market value of equity 24
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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