National Healthcare Properties, Inc. · NASDAQ:NHP
National Healthcare Properties — Healthcare Trust — Q2 2024 Earnings Presentation
28 slides from National Healthcare Properties's earnings presentation, Aug 29, 2024
Slide 1: Healthcare Trust, Inc. Second Quarter 2024 Investor Webcast Presentation
Healthcare Trust, Inc. Second Quarter 2024 Investor Webcast Presentation 1
Slide 2: Internalization Update
Internalization Update HTI has entered into a definitive agreement to internalize management of the Company ✓ Executed definitive agreement on August 6, 2024, which will result in the internalization of the management of the Company (the “Internalization”) effective upon the closing of the transacti
Slide 3: Q2'24 Company Overview
Q2'24 Company Overview HTI is a $2.6 billion(1) healthcare REIT with a high-quality portfolio focused on two segments, Medical Office Buildings (“MOB”) and Senior Housing Operating Properties (“SHOP”) ✓ High-quality portfolio featuring 207 properties that are 74% MOB and 26% SHOP(2) ✓ Geographically
Slide 4: Portfolio Snapshot
Portfolio Snapshot HTI owns a 9 million SF diversified portfolio that is comprised of an MOB portfolio that is approximately 90% occupied with embedded long-term cash rent growth and a SHOP portfolio totaling over 4,000-units with significant Occupancy(1) upside ($ in millions and SF in thousands) M
Slide 5: Dynamic Portfolio Fundamentals
Dynamic Portfolio Fundamentals HTI is focused on deploying capital into select, high-quality MOB and SHOP assets throughout the United States and increasing portfolio Occupancy Portfolio Highlights High-Quality Portfolio ✓ MOB portfolio that is diversified across 29 states and features long- term ne
Slide 6: Strategic Partners
Strategic Partners HTI tenants and partners include some of the top healthcare brands in well-established markets MOB SHOP ✓ DaVita (NYSE: DVA) and Fresenius (NYSE: FMS) are industry leading publicly traded companies with a combined market cap of almost $30 billion(1) ✓ Developed strong tenant relat
Slide 7: Strategic Disposition Initiative
Strategic Disposition Initiative HTI completed the dispositions of one SHOP property during the second quarter and a seven-property MOB portfolio subsequent to quarter close, for a combined total sale price of $53.8 million ($ in millions, square feet in thousands) Property Number of Square Disposit
Slide 8: Capitalization Highlights
Capitalization Highlights In Q2'24, HTI continued to manage its capital structure to promote financial flexibility by maintaining conservative Net Leverage(1) Debt Capitalization ($mm) Q2'24 Balanced Capital Structure Mortgage Debt Mortgage Notes Payable $828 ▪ HTI has $828.3 million of fixed-rate(2
Slide 9: Key Operating Highlights
Key Operating Highlights In Q2'24, HTI meaningfully increased AFFO(1), along with NOI(1) in both the MOB and SHOP segments Operating Highlights Meaningful SHOP Segment NOI Improvement(1) ✓ AFFO(1) increased by over 200% QoQ from $1.4 million in $8.9 mm Q1’24, and 13.8% YoY from $3.8 million in Q2’23
Slide 10: Company Highlights
Company Highlights In the second quarter, HTI continued to focus on increasing MOB and SHOP NOI, exploring strategic dispositions, and maintaining a conservative balance sheet ✓ High-Quality Portfolio of 205(1) properties comprised of 74% MOB and 26% SHOP properties(2) ✓ Strategic Disposition Progra
Slide 11: Experienced Leadership Team
Experienced Leadership Team (1) Michael Anderson Leslie D. Michelson Scott Lappetito Chief Executive Officer Non-Executive Chairman, Audit Chief Financial Officer, Secretary, and Committee Chair Treasurer Mr. Anderson has served as the Chief Executive Officer since September 2023. Mr. Anderson has M
Slide 12: Dedicated SHOP Team
Dedicated SHOP Team Core team collectively has over 70 years of SHOP experience. This experienced group plays an essential role in managing HTI’s SHOP portfolio Lindsay Gordon Senior Vice President, Senior Housing ✓ 28-year career in senior housing in sales & operations at the community and regional
Slide 13: Legal Notice
q ut Legal Notice
Slide 14: Disclaimer
Disclaimer References in this presentation to the “Company,” “we,” “us” and “our” refer to Healthcare Trust, Inc. (“HTI”) and its consolidated subsidiaries. The statements in this presentation that are not historical facts may be forward-looking statements. These forward-looking statements involve r
Slide 15: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation are “forward-looking statements” (as defined in Section 21E of the Securities Exchange Act of 1934, as amended), which reflect the expectations of the Company regarding future events. The forward-looking statements involve a num
Slide 16: Forward-Looking Statements (Continued)
Forward-Looking Statements (Continued) • We may terminate our advisory agreement in only limited circumstances, which may require payment of a termination fee. • The Estimated Per-Share NAV of our common stock is based upon subjective judgments, assumptions and opinions about future events, and may
Slide 17: Appendix: Financial Definitions
Appendix: Financial Definitions 17
Slide 18: Non-GAAP Financial Measures
Appendix: Financial Definitions Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including funds from operations (“FFO”), adjusted funds from operations (“AFFO”), Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted Earnings b
Slide 19: Caution on the Use of Non-GAAP Measures (continued)
Appendix: Financial Definitions Caution on the Use of Non-GAAP Measures (continued) As a result, we believe that the use of FFO, AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance including relative to our peers and a more informed
Slide 20: Funds from Operations (continued)
Appendix: Financial Definitions Funds from Operations (continued) The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset dim
Slide 21: Earnings before Interest, Taxes, Depreciation, and Amortization
Appendix: Financial Definitions Earnings before Interest, Taxes, Depreciation, and Amortization We believe that EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization is an appropriate measure of our ability to incur and service debt. EBITDA should not be consider
Slide 22: Cash Net Operating Income
Appendix: Financial Definitions Cash Net Operating Income Cash Net Operating Income (“Cash NOI”) is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI (which is separately defined herein) excluding net amortization of above/below mar
Slide 23: Financial Definitions: Leasing Pipeline and Net Debt
Appendix: Financial Definitions Leasing Pipeline: Includes (i) all leases fully executed by both parties as of June 30, 2024, where Tenant has yet to take possession of the space as of June 30, 2024 (ii) all leases fully executed by both parties as of August 15, 2024, but after June 30, 2024, and (i
Slide 24: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 24
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 30, December 31, September 30, Amounts in thousands, except per share data June 30, 2024 2024 2023 2023 June 30, 2023 MOBs: Revenue from tenants $ 34,671 $ 34,599 $ 34,263 $ 33,657 $ 33,920 Property operating and maintenance (9,727) (9,700) (10,182)
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 30, December 31, September Amounts in thousands, except per share data June 30, 2024 2024 2023 30, 2023 June 30, 2023 Net loss attributable to common stockholders (in accordance with GAAP) (119,916) (18,999) (28,269) (19,560) (20,759) Depreciation an
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended Amounts in thousands June 30, 2024 March 30, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Net loss (in accordance with GAAP) $ (116,918) $ (15,549) $ (24,782) $ (16,125) $ (17,289) Interest expense 17,752 16,383 15,869 15,720 18,704 Income tax e
Slide 28: Shareholder account information
▪ For account information, including balances and the status of submitted paperwork, please call us at (866) 902-0063 ▪ Financial Advisors may view client accounts at www.computershare.com/advisorportal HealthcareTrustInc.com ▪ Shareholders may access their accounts at www.computershare.com/hti 28