Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — FY2018 Earnings Presentation
41 slides from Diversified Healthcare Trust's earnings presentation, Mar 1, 2019
Slide 1: Second Quarter 2018 Supplemental Operating and Financial Data
Senior Housing Properties Trust Exhibit 99.2 Second Quarter 2018 Supplemental Operating and Financial Data 845 N New Ballas Court, Creve Coeur, MO Major Tenant: Signature Health Services, Inc. Square Feet: 82,280 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE CORPORATE INFORMATION 6 Company Profile 7 Investor Information 8 Research Coverage 9 FINANCIALS 10 Key Financial Data 11 Condensed Consolidated Balance Sheets 12 Consolidated Statements of Income 13 TABLE OF CONTENTS TABLE Consolidated Statements of Income (Additional Data) 14
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER WE USE WORD
Slide 4: Forward Looking Statements Risk Factors
OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF OPERATIONS, FINANCIAL CONDITION, FUNDS F
Slide 5: Forward Looking Statements Continued
• CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY IS SUBJECT TO OUR SATISFYING CERTAIN FINANCIAL COVENANTS AND OTHER CREDIT FACILITY CONDITIONS THAT WE MAY BE UNABLE TO SATISFY, • ACTUAL COSTS UNDER OUR REVOLVING CREDIT FACILITY OR OTHER FLOATING RATE DEBT WILL BE HIGHER THA
Slide 6: Corporate Information
Senior Housing Properties Trust 6 Supplemental Operating and Financial Data, December 31, 2018 6
Slide 7: 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, Two Newton Place which owns properties leased to medical providers, medical related businesses, clinics and 255 Washington Street Suite 300 biotech
Slide 8: 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 Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management Jennifer F. Francis Richa
Slide 9: Research Coverage
RESEARCH COVERAGE Equity Research Coverage B. Riley FBR Jefferies & Company JMP Securities Bryan Maher Omotayo Okusanya Peter Martin (646) 885-5423 (212) 336-7076 (415) 835-8904 bmaher@brileyfbr.com tokusanya@jefferies.com pmartin@jmpsecurities.com Morgan Stanley Raymond James RBC Capital Markets Vi
Slide 10: Financials
Senior Housing Properties Trust 10 Supplemental Operating and Financial Data, December 31, 2018 10
Slide 11: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Selected Balance Sheet Data: Total gross assets (1) $ 8,694,818 $ 9,061,046 $ 8,991,390 $ 8,889,491 $ 8,748,496 Total assets $ 7,160,426 $ 7,453,4
Slide 12: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data) As of As of December 31, 2018 December 31, 2017 ASSETS Real estate properties: Land $ 844,567 $ 824,879 Buildings and improvements 7,031,733 6,999,884 7,876,300 7,824,763 Accumulated depreciation (1,534,392) (1,454,477)
Slide 13: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2018 2017 2018 2017 Revenues: Rental income $ 178,680 $ 179,585 $ 700,641 $ 681,022 Residents fees and services 106,542 98,958 416,523 393,707 Total
Slide 14: Consolidated Statements of Income (Additional Data)
CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) (dollars in thousands) For the Three Months Ended December 31, For the Year Ended December 31, 2018 2017 2018 2017 Additional Data: General and administrative expenses / total assets (at end of period) (1) 0.0% 0.6% 1.2% 1.4% Business management in
Slide 15: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Year Ended December 31, 2018 2017 Cash flows from operating activities: Net income $ 292,414 $ 151,803 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 286,235 276,861 Amor
Slide 16: Consolidated Statements of Cash Flows (Continued)
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (amounts in thousands) For the Year Ended December 31, 2018 2017 Increase in cash and cash equivalents and restricted cash $ 22,750 $ 11,743 Cash and cash equivalents and restricted cash at beginning of period 47,321 35,578 Cash and cash equivalents
Slide 17: Debt Summary
DEBT SUMMARY (Dollars in thousands) As of December 31, 2018 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) 3.616% 3.616% $ 139,000 1/15/2022 $
Slide 18: Debt Maturity Schedule
DEBT MATURITY SCHEDULE (dollars in thousands) As of December 31, 2018 Unsecured Unsecured Secured Floating % of Fixed % of Fixed Rate % of % of Year Rate Debt Total Rate Debt Total Debt (1) Total Total Total 2019 $ — $ 400,000 $ 46,140 $ 446,140 2020 350,000 200,000 3,785 553,785 2021 — 300,000 4,08
Slide 19: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Leverage Ratios: Total debt (1) / total gross assets (2) 42.4% 41.3% 41.2% 41.4% 42.3% Total debt (1) / gross book value of real estate assets (3) 43.7%
Slide 20: 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 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 MOB tenant improvements (1) $ 4,283 $ 5,073 $ 1,089 $ 1,600 $ 3,487 MOB leasing costs (2) 845 3,686 1,225 422 2,097 MOB
Slide 21: Property Acquisitions / Dispositions Information Since January 1, 2018
PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE JANUARY 1, 2018 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) JANUARY 1, 2018 JANUARY MOB Acquisitions: Weighted Average Number of Properties Purchase Purchase Price Remaining Lease Date Acquired Location Type (Buildings)
Slide 22: Calculation and Reconciliation of NOI and Cash Basis NOI
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (amounts in thousands) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 178,680
Slide 23: Consolidated NOI and Cash Basis NOI
CONSOLIDATED NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2018 12/31/2017 % Change 12/31/2018 12/31/2017 % Change NOI: Life Science $ 37,511 $ 35,003 7.2 % $ 149,760 $ 138,413 8.2 % Medical Office 32,846 32,761 0.3 % 135
Slide 24: 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 Year Ended (3) 12/31/2018 12/31/2017 % Change 12/31/2018 12/31/2017 % Change NOI: Life Science $ 34,852 $ 34,281 1.7 % $ 137,516 $ 136,958 0.4 % Medical Office 31,115 32,001 (2.8)% 127,274 128,423
Slide 25: NOI Reconciliation by Segment, Three Months Ended December 31
2017 CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI), CASH BASIS NOI, SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI BY SEGMENT (1) (dollars in thousands) AND For the Three Months Ended December 31, 2018 For the Three Months Ended December 31, 2017 Triple Net Triple Net Leased Manag
Slide 26: NOI Reconciliation by Segment, Year Ended December 31
(1) 2017 CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI), CASH BASIS NOI, SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI BY SEGMENT (dollars in thousands) AND For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 Triple Net Triple Net Leased Managed Leased Manage
Slide 27: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1) (amounts in thousands) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Net (loss) income $ (117,182) $ 47,202 $ 124,988 $ 237,405 $ 66,328 $ 292,414 $ 151,803 Inte
Slide 28: Reconciliation of FFO and Normalized FFO
CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS (1) (amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Net (loss) in
Slide 29: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI The calculations of NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI exclude certain components of net income (loss) in order to provide results that are
Slide 30: Portfolio Information
Senior Housing Properties Trust 30 Supplemental Operating and Financial Data, December 31, 2018 30
Slide 31: Portfolio Summary by Geographic Diversification and Property Type
PORTFOLIO SUMMARY BY GEOGRAPHIC DIVERSIFICATION AND PROPERTY TYPE Geographic Diversification Property Type (based on Cost of Real Estate Properties as of December 31, 2018) (1) (based on Q4 2018 NOI) (2) VA: 3% IN: 3% Wellness NC: 3% Centers: 3% MD: 4% WI: 4% Medical Independent GA: 5% Office: 19% L
Slide 32: 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 December 31, 2018 % of % of Square Feet Carrying Investment Per Q4 2018 Q4 2018 Number of or Number of Value % of Total Square Foot Q4 2018 Total Q4 2018 Total Properties Units of In
Slide 33: Occupancy by Property Type and Tenant
OCCUPANCY BY PROPERTY TYPE AND TENANT (1) For the Twelve Months Ended (2) 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Property Type: Life science 98.8% 98.8% 97.6% 97.4% 97.4% Medical office 93.6% 93.8% 93.6% 93.5% 94.9% Weighted average occupancy MOBs (3) 95.6% 95.7% 95.1% 95.0% 95.8% Indepe
Slide 34: Rent Coverage by Tenant
RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) (1) For the Twelve Months Ended Tenant 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Five Star 1.00x 1.05x 1.12x 1.15x 1.15x AND WELLNESS CENTERS) Brookdale Senior Living 2.10x 2.15x 2.23x 2.30x 2.38x 10
Slide 35: MOB Portfolio Segment and Same Property Results, Three Months
) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) 2017 As of and For the Three Months Ended December 31, 2018 As of and For the Three Months Ended December 31, 2017 Life Science Medical Office Total MOB Life Science Medical Office Total MOB AND Number of Properties 2
Slide 36: MOB Portfolio Segment and Same Property Results, Year
) MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) 2017 As of and For the Year Ended December 31, 2018 As of and For the Year Ended December 31, 2017 Life Science Medical Office Total MOB Life Science Medical Office Total MOB AND Number of Properties 25 104 129 23 102
Slide 37: Triple Net Leased Senior Living Communities 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 December 31, As of and For the Year Ended December 31, 2018 2017 2018 2017 Number of Properties 228 235 228 235 Number of Units 24,030 25,790 24,030 25,790 Occu
Slide 38: Managed Senior Living Communities 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 December 31, As of and For the Year Ended December 31, 2018 2017 2018 2017 Number of Properties (1) 76 70 76 70 Number of Units (1) 9,766 9,043 9
Slide 39: 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 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Properties 129 129 129 129 125 Buildings 155 155 155 155 151 Total sq. ft. (1) 12,600 12,600 12,600 12,602 12,066 Occupancy (2) 94.
Slide 40: Tenants Representing 1% or More of Annualized Rental Income
TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENTAL INCOME (dollars in thousands) As of December 31, 2018 % of Annualized Annualized Rental Tenant Facility Type Rental Income (1) Income (1) Expiration 1 Five Star Senior Living Inc. Senior living $ 213,189 27.6% 2024 - 2032 2 Vertex Pharmaceut
Slide 41: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) As of December 31, 2018 Annualized Rental Income (1) Cumulative Percent of Total Percentage of Senior Living Wellness Annualized Rental Annualized Rental Year MOBs Communities (2) Centers Total Income Expiring Income Expiring 2019 (3) $ 45,1
Senior Housing Properties Trust — FY2018 Earnings Presentation on 6ix