Nationwide Health Properties Inc
Nationwide Health Properties — Q4 2010 Earnings Presentation
60 slides from Nationwide Health Properties's earnings presentation, Feb 28, 2011
Slide 1: Supplemental Information December 31, 2010
Supplemental Information December 31, 2010
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other st
Slide 3: Contents
Contents Consolidated Income Statements Reconciliation of Net Income to Funds from Operations (FFO) Reconciliation of Net Income to Funds Available for Distribution (FAD) Consolidated Balance Sheets Other Assets Capitalization Debt Maturities and Debt Composition Debt Covenants: Credit Facility & Bo
Slide 4: Company Fact Sheet
Company Fact Sheet REIT structure provides opportunity to invest directly in real estate and indirectly in healthcare industry Quality healthcare real estate portfolio Long-term triple-net master leases with quality operators Strong affiliations with premiere hospital systems in growing medical offi
Slide 5: Financial Results
Nationwide Health BZ. brs Properties FINANCIAL RESULTS
Slide 6: Consolidated Income Statements
Consolidated Income Statements
Slide 7: Reconciliation of Net Income to Funds From Operations (FFO)
Reconciliation of Net Income to Funds From Operations (FFO) See Financial Measures Definitions
Slide 8: Reconciliation of Net Income to Funds Available for Distribution (FAD)
Reconciliation of Net Income to Funds Available for Distribution (FAD) See Financial Measures Definitions
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets
Slide 10: Other Assets
Otner assets In thousands December 31 December 31, 2010 ‘Other receivables, net s 68200 $ 68,535, ‘Straight-line rent receivables, net 39.931 27.450 Prepaid ground leases 12,804 ‘01051 Investments and restricted funds 12587 9,545 Interest rate swaps 11157 Deferred financing costs 8,586 11,368 ‘Capit
Slide 11: Capitalization
Capitalization See Financial Measures Definitions
Slide 12: Capitalization
Capitalization (2) MOBs NHP/PMB 72 NHP/PMB Under Contruction 28 Equity Debt Investments 66 34 MrktCap TotDebt Investments 74 26 Undepreciated Book Basis Enterprise Value 66% Equity 34% Debt 74% Equity 26% Debt 72% 28% MOBs NHP/PMB 87 NHP/PMB Under Contruction 13 87% 13% Unsecured Secured Fixed Varia
Slide 13: Debt Maturities and Debt Composition
Debt Maturities and Debt Composition
Slide 14: Debt Covenants
Dent Covenants a a Minimum Maximum Covenant Requirement Requirement __ Actual ‘status Credit Facility Covenants Unsecured Debt to Unencumbered Asset Rato 60% 256% InCompliance 43% ofthe maximum ‘Seouedindettedness Rao = 80% 82K IMComplance 31% ofthe maximum Fixed Charges Rato 175% 335% InCompliance
Slide 15: Credit Facility Covenants
Credit Facility Covenants Ss As Unsecured Debt to Enencumbered ‘Secured Indebtedness Ratio Fixed Charges Ratio ‘Asset Ratio ig EEbo : il Total Liabilities to Capitalization Net Asset Value ($0008) Value se inimum 1. wit our erent asset value, we can increase otal debt by upto $24 ion and remain in c
Slide 16: Bond Covenants (Bonds Issued Prior to 2006)
Bond Covenants (Bonds Issued Prior to 2006)
Slide 17: New Bond Covenants (Bonds Issued After 2006)
New Bond Covenants (Bonds Issued After 2006)
Slide 18: Interest and Fixed Charge Coverage
Interest and Fixed Charge Coverage See Financial Measures Definitions
Slide 19: Unconsolidated Joint Venture Financial Statements - Balance Sheet
Unconsolidated Joint Venture Financial Statements - Balance Sheet
Slide 20: Unconsolidated Joint Venture Financial Statements - Income Statements
Unconsolidated Joint Venture Financial Statements - Income Statements
Slide 21: Financial Measures Definitions
Financial Measures Definitions Adjusted Fixed Charge Coverage Ratio: We believe that the Adjusted Fixed Charge Coverage Ratio is an important supplemental liquidity measure that reflects a company's ability to meet its interest and preferred dividend payment obligations and allows investors to compa
Slide 22: Financial Measures Definitions (2)
Financial Measures Definitions (2) FAD and FFO Payout Ratio and Coverage: The Payout Ratio is calculated by dividing the common dividend per share by diluted FAD or FFO per share for any given period. Coverage is calculated by dividing diluted FAD or FFO per share by the common dividend per share fo
Slide 23: Financial Measures Definitions (3)
Financial Measures Definitions (3) FFO in accordance with the National Association of Real Estate Investment Trusts' definition. FFO is defined as net income (computed in accordance with GAAP) excluding gains and losses from the sale of real estate plus real estate related depreciation and amortizat
Slide 24: Investments & Dispositions
==) 7 a || || INVESTMENTS & DISPOSITIONS
Slide 25: 4th Quarter 2010 Investments
4th Quarter 2010 Investments
Slide 26: ALF Loan Acquisition (November 2010)
ALF LOAN ACQUISITION (November 2010) Location Washington Washington Key Stats Loan Amount: $6M Loan to Value: 60% Age: 12 years No. of Facilities: 1 Facility Type: ALF No. of Units: 38 Occupancy: 82%
Slide 27: ALF Acquisition | Ascend Senior Properties (December 2010)
ALF ACQUISITION | Ascend Senior Properties (December 2010) Location California (2), Colorado (2), Indiana, Oregon, and Texas California (2), Colorado (2), Indiana, Oregon, and Texas Key Stats Purchase Price: $36M Price per Unit: $103K Lease: Triple Net Age: 10 years No. of Facilities: 7 Facility Typ
Slide 28: ALF Acquisition | Veritas InCare (December 2010)
ALF ACQUISITION | Veritas InCare (December 2010) Location Florida Florida Key Stats Purchase Price: $17M Price per Unit: $109K Lease: Triple Net Age: 11 years No. of Facilities: 4 Facility Type: ALF No. of Units: 156 Occupancy: 87%
Slide 29: SNF & CCRC Acquisition | Trisun Healthcare (December 2010)
SNF & CCRC ACQUISITION | Trisun Healthcare (December 2010) Location Texas Texas Key Stats Purchase Price: $69M Price per Bed: $77K Lease: Triple Net Age: 10 years No. of Facilities: 6 Facility Type: 5 SNFs & 1 CCRC No. of Beds: 894 Occupancy: 80% Q-Mix: 59%
Slide 30: MOB Acquisition | Meadows & Ohly (December 2010)
MOB ACQUISITION | Meadows & Ohly (December 2010) Location Georgia Georgia Key Stats Purchase Price: $29M Price per SQFT: $175 Lease: Multi-Tenant Facility Type: MOB Average Age: 7 years No. of Facilities: 2 Rentable Square Feet: 168,077 Occupancy: 93.7%
Slide 31: MOB Acquisition | Genesis (December 2010)
MOB ACQUISITION | Genesis (December 2010) Location Ohio Ohio Key Stats Purchase Price: $43M Price per SQFT: $134 Lease: Multi-Tenant Facility Type: MOB Average Age: 17 years No. of Facilities: 12 Rentable Square Feet: 319,330 Occupancy: 98.8%
Slide 32: MOB Acquisition | Columbia Medical Plaza (December 2010)
MOB ACQUISITION | Columbia Medical Plaza (December 2010) Location Washington Washington Key Stats Purchase Price: $5M Price per SQFT: $226 Lease: Multi-Tenant Facility Type: MOB Age: 18 years No. of Facilities: 1 Rentable Square Feet: 22,966 Occupancy: 100%
Slide 33: Year to Date December 31, 2010 Investments
Year to Date December 31, 2010 Investments
Slide 34: Rent Loss from Dispositions and Lease Restructuring
Rent Loss from Dispositions and Lease Restructuring
Slide 35: Projected Funding Obligations through 2013
Projected Funding Obligations through 2013 (as of December 31, 2010)
Slide 36: Development Projects
Dota intoueande extmates Cconpiton Dato Development Projects ‘KEE Bogs December 2011 ‘Su-'Sonae, CA ony 2012 MOB toe Aris, CA Novem 2012 “etl deveopmei projets 1) Expansion ot SMF subject ein an, Nesiongs Best | aaa Geer 4) 2070 SE
Slide 37: Triple-Net Lease Expirations and Mortgage Loans Receivable Principal Payments
Triple-Net Lease Expirations and Mortgage Loans Receivable Principal Payments
Slide 38: Portfolio Overview
Nationwide Ap— Health BZ’ Z Properties oa TS ta PORTFOLIO OVERVIEW
Slide 39: Portfolio Summary
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Slide 40: Portfolio Performance Summary
Portfolio Performance Summary
Slide 41: Portfolio Overview
Portfolio Overview Private Pay Medicare Medicaid Investments 72 10 18 Asset Type Pay Source Locations Tenant/Operator (based on investment) (based on investment*) (based on revenue) *Investment includes all asset types Private Pay 72% Medicaid 18% Medicare 10% Skilled Assissted Other MOBs Investment
Slide 42: Consolidated Portfolio Performance by Asset Type
Consolidated Portfolio Performance by Asset Type
Slide 43: Consolidated Portfolio Performance
Consolidated Portfolio Performance
Slide 44: Consolidated Non-Stabilized Portfolio Performance by Asset Type
Consolidated Non-Stabilized Portfolio Performance by Asset Type
Slide 45: Tenant Concentration
rots vest and anualzes ca ent in tovsands Nonber of Nomberot— Bedlunte Annuaized Parcen'by Average Remaining ESITOARM Tenant Concentration Faoltes In Sens ScashRensNol Cash Rent__"Age’__Term Coverage 4 Brookle Senor Lig ne, oS Ssod Sst oor bd s oe vere 2 Hearhstone Sener ung. LP (8) aye sas 92% n 18
Slide 46: Geographic Performance Metrics
Geographic Performance Metrics
Slide 47: Geographic Performance Metrics - ALF
Geographic Performance Metrics - ALF
Slide 48: Geographic Performance Metrics - SNF
Geographic Performance Metrics - SNF
Slide 49: SNF Performance Metrics
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Slide 50: Asset Class Composition Trends (by Investment)
Portfolio Performance Summary | Asset Class Composition Trends (by Investment)
Slide 51: Private Pay Composition Trends (by Revenue)
Portfolio Performance Summary | Private Pay Composition Trends (by Revenue)
Slide 52: Top Tenant Concentration Trends (by Revenue)
Portfolio Performance Summary | Top Tenant Concentration Trends (by Revenue)
Slide 53: Unconsolidated JV Portfolio Performance Metrics
Unconsolidated JV Portfolio Performance Metrics
Slide 54: Medical Office Building Portfolio Performance Metrics
Medical Office Building Portfolio Performance Metrics
Slide 55: Medical Office Building Portfolio - Geographic Performance Metrics
Medical Office Building Portfolio - Geographic Performance Metrics
Slide 56: Medical Office Building Lease Expirations and Mortgage Loan Receivable Principal Payments
Medical Office Building Lease Expirations and Mortgage Loan Receivable Principal Payments
Slide 57: Medical Office Building Leasing Activity
Medical Office Building Leasing Activity
Slide 58: Portfolio Performance Measures Definitions
Portfolio Performance Measures Definitions Annualized Cash Rent/NOI: For our triple-net lease portfolio, Annualized Cash Rent is equal to the total cash rent due from our tenants based on the trailing twelve-month period, one month in arrears from the period presented. For our medical office buildin
Slide 59: Portfolio Performance Measures Definitions (2)
Portfolio Performance Measures Definitions (2) All facility financial information was derived solely from information provided by our tenants and borrowers, and we have not verified such information. Annualized Revenue: For medical office buildings, the revenue is equal to the actual year to date re
Slide 60: Portfolio Performance Measures Definitions (3)
Portfolio Performance Measures Definitions (3) Same Property (Performance): Results shown under the Same Property caption present the financial or other performance measures for only those facilities that were in our portfolio for more than twelve months at the end of all periods presented.
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