Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Investor Presentation (October 2016)
22 slides from Selectis Health,inc's investor presentation, Oct 6, 2016
Slide 1: Global Healthcare REIT – September 2016
O GLOBAL HEALTHCARE REIT September 2016 Strictly Confidential
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: Company Overview
Company Overview fe) GLOBAL
Slide 4: About Global Healthcare
About Global Healthcare * Global Healthcare REIT owns senior healthcare properties across the Southwest and South Atlantic — 10 senior healthcare facilities — Solid base of revenue-generating assets leased to proven facility operators in the senior care industry — 1,000+ beds fe) GLOBAL
Slide 5: Projected Cash Flow by Property Q1 2017
Projected Cash Flow by Property Q1 2017 Middle Georgia $720,000 $221,178 $498,822 Warrenton 600,000 149,295 384,588 Southern Hills SNF 432,000 135,708 296,292 Southern Hills ALF 300,000 306,923 (6,923) Southern Hills ILF 708,000 306,923 384,278 Providence Sparta 420,000 153,852 266,148 Goodwill 488,
Slide 6: Stabilized Net Operating Income
Stabilized Net Operating Income 2016 Stabilized NOI * $ 5,300,200 Expected Debt Service 2,253,058 Total Expected Property Cash Flow 3,047,142 Total Operating Costs 2 555,000 Corporate Interest Costs After Savings 202,155 Operating Cash Flow $ 2,289,987 Adjusted Funds From Operations $0.09 (AFFO) Sta
Slide 7: Key Statistics
Key Statistics (orc-cscs Stock Price (os « 6/30/2016) $0.40 Revenue (ttm) $3.0M 52 Week Low-High $0.29-$1.10 __ Diluted EPS (mrq) $(0.16) Avg. Daily Vol. (30 day) 12,425 Cash (mrq) $2.1M Shares Outstanding 24.9M Total Assets (mrq) $39.1M Public Float (est.) 72% Total Debt (mrq) $34.1M imi Molres ETO
Slide 8: Total Enterprise Value (at market value)
Total Enterprise Value (et marcet vaiuey Total Debt $ 34,143,000 Total Enterprise Value (at Market Value) Preferred stock 776,000 mTotal Debt mi Preferred Stock Market value of equity Market value of 10,000,000 equity Total Enterprise $44,919,000 Ja Value fe} GLOBAL 1) as of June 30, 2016
Slide 9: Typical Lease Structure
Typical Lease Structure Lease structures favorable to Global Healthcare “Triple net basis” terms; lessee is typically obligated for all liabilities of the property including: Insurance Taxes Facility Maintenance * Annual Escalation clauses between 2 and 3% * Strategic combination of short- and long-
Slide 10: Industry Dynamics
Industry Dynamics fe) GLOBAL
Slide 11: Trillion Dollar Market Opportunity
Trillion Dollar Market Opportunity * $1 trillion U.S. Healthcare Real Estate Market" US. Senior Housing Market Growth: 2005 - 2019E* + Target segment of Senior Housing and Skilled Nursing ” om comprises 25% or $250 billion of the total Healthcare bs sn REIT market omg som + Strong growth in target m
Slide 12: Aging Population a Strong Market Driver
Aging Population a Strong Market Driver Why Senior Healthcare Facilities? US. populationG hof * Demographic “tidal wave” heading toward to Bb eae) 2 senior care industry Age 65 & 85 + Seniors are the fastest growing population in the world! * Affordable Care Act introducing seniors into the market w
Slide 13: Competitive Landscape: Highly Fragmented
Competitive Landscape: Highly Fragmented Industry Industry Highly Fragmented and Dominated by Small, Private Facil Independent Living Companies Assisted Living Companies Nursing Facility Companies 15% 20% 22% 25% 29% 37% H Top 10 @ Top 25 Remaining Market Source: IBISWorld, Provider Magazine and Bar
Slide 14: REIT Consolidation Poised to Continue
REIT Consolidation Poised to Continue fe) In a 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,
Slide 15: Company Opportunities
Company Opportunities fe) GLOBAL
Slide 16: 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 + Asthe company continues its acquisition campaign for healthcare real estate, it anticipates revenue & cash flow to incre
Slide 17: Summary of Stabilized Property Portfolio
Summary of Stabilized Property Portfolio ALF = Assisted Living Facility _ SNF = Skilled Nursing Facility ILF= Independent Living Facility Pi Facilit Gross Annual Property Name moperty) | FaGity peds/Units ree atte ete Location Count Type Rent 2016 Rent Middle Georgia 1 | SNF | 100 beds $720,000 $806
Slide 18: New Long-term Leases to Increase Rental Revenue
New Long-term Leases to Increase Rental Revenue fe) 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 of 10 years and
Slide 19: Traditional & HUD Refinancing Opportunities to Lower Interest Rates
Traditional & HUD Refinancing Opportunities to Lower Interest Rates on Facilities + Currently HUD refinancing Middle Georgia, Warrenton & Sparta facilities at a long term rate that is expected to be under 4% * Company expects HUD refinancing to further improve its funds from operations (FFO) by gene
Slide 20: Key Takeaways
Key Takeaways * Strong industry tailwinds for senior housing properties * Simple, straight-forward business model * Traditional & HUD refinancing opportunites to further improve FFO * Replacing several existing short-term leases with long-term leases to increase annual rental revenue * Board & Manag
Slide 21: Appendix
fe) GLOBAL Appendix 20
Slide 22: 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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