Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q3 2014 Earnings Presentation
35 slides from Diversified Healthcare Trust's earnings presentation, Nov 3, 2014
Slide 1: Third Quarter 2014 Supplemental Operating and Financial Data
Exhibit 99.2 Senior Housing Properties Trust Third Quarter 2014 Supplemental Operating and Financial Data Remington Club I & II 16916 & 16925 Hierba Drive, San Diego, CA Continuing Care Retirement Community Tenant: Five Star Quality Care, Inc. Living Units: 405 All amounts in this report are unaudit
Slide 2: Table of Contents
TABLE OF CONTENTS TABLE OF CONTENTS PAGE/EXHIBIT CORPORATE INFORMATION 5 Company Profile 6 Investor Information 8 Research Coverage 9 FINANCIAL INFORMATION 10 Key Financial Data 11 Condensed Consolidated Balance Sheets 13 Condensed Consolidated Statements of Income 14 Condensed Consolidated Statemen
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING WARNING CONCERNING FORWARD LOOKING STATEMENTS 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 OTH
Slide 4: Forward Looking Statements (continued)
FORWARD LOOKING STATEMENTS (continued) FOR EXAMPLE: • FIVE STAR IS OUR LARGEST TENANT AND MANAGES CERTAIN OF OUR SENIOR LIVING COMMUNITIES FOR OUR ACCOUNT AND FIVE STAR MAY EXPERIENCE FINANCIAL DIFFICULTIES AS A RESULT OF A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO: • MATERIAL WEAKNESSES IN IT
Slide 5: Corporate Information
1450 Busch Parkway, Buffalo Grove, IL Medical Office Building Primary Tenant: Northwest Community Health Services Inc. Square Feet: 64,860 Senior Housing Properties Trust CORPORATE INFORMATION Supplemental Operating and Financial Data, September 30, 2014
Slide 6: Company Profile
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, which Two Newton Place owns independent and assisted living communities, continuing care retirement communities, nursing 255 Washin
Slide 7: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Portfolio Concentration by Facility Type (as of September 30, 2014) ($ in 000) (1) : Number of Number of Units/Beds or Carrying Value of % of Total % of Q3 2014 Properties Square Feet Investment (2) Investment Q3 2014 NOI (3) Total NOI (4) Inde
Slide 8: Investor Information
INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees John L. Harrington Jeffrey P. Somers Frederick N. Zeytoonjian Independent Trustee Independent Trustee Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee Managing Trustee Senior Management David J. Hegarty Richard A. Doyle
Slide 9: Research Coverage
RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Bank of America / Merrill Lynch Raymond James Juan Sanabria Collin Mings (646) 855-1589 (727) 567-2585 juan.sanabria@baml.com collin.mings@raymondjames.com Janney Capital Markets RBC Capital Markets Michael P. Gorman Michael Carroll (215)
Slide 10: Financial Information
Stratford Court of Boca Raton 6343 Via de Sonrisa del Sur, Boca Raton, FL Continuing Care Retirement Community Tenant: Sunrise Senior Living Living Units: 527 Senior Housing Properties Trust FINANCIAL INFORMATION Supplemental Operating and Financial Data, September 30, 2014
Slide 11: Key Financial Data
KEY FINANCIAL DATA KEY FINANCIAL DATA (share amounts and dollars appearing in the table below are in thousands, except per share data) As of and For the Three Months Ended 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 (1) Shares Outstanding : Common shares outstanding (at end of period) 203,873
Slide 12: Key Financial Data (Continued)
KEY FINANCIAL DATA (Continued) KEY FINANCIAL DATA (Continued) (share amounts and dollars appearing in the table below are in thousands, except per share data) As of and For the Three Months Ended 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Selected Balance Sheet Data: Total assets $ 5,989,122
Slide 13: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data) As of As of September 30, 2014 December 31, 2013 ASSETS Real estate properties: Land $ 680,994 $ 623,756 Buildings, improvements and equipment 5,503,074 4,639,869 6,184
Slide 14: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Revenues: (1) Rental income $ 137,614 $ 112,319 $ 377,339 $ 336,468 Resid
Slide 15: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Nine Months Ended 9/30/2014 9/30/2013 Cash flows from operating activities: Net income $ 113,350 $ 78,957 Adjustments to reconcile net income to cash provided by operating a
Slide 16: Debt Summary
DEBT SUMMARY DEBT SUMMARY (dollars appearing in the table below are in thousands) As of September 30, 2014 Coupon Interest Principal Maturity Due at Years to (1) (2) Rate Rate Balance Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: (3) Unsecured revolving credit facility (LIBOR
Slide 17: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE (dollars appearing in the table below are in thousands) As of September 30, 2014 Unsecured Unsecured Secured Floating Fixed Fixed Rate (1) Year Rate Debt Rate Debt Debt Total 2014 $ - $ - $ 3,230 $ 3,230 2015 - - 94,742 94,742 2016 - 250,000 160,660 410,
Slide 18: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Leverage Ratios: Total debt / total market capitalization 39.3% 35.8% 31.4% 31.2% 30.4% Total
Slide 19: Summary of Capital Expenditures
SUMMARY OF CAPITAL EXPENDITURES SUMMARY OF CAPITAL EXPENDITURES (dollars and sq. ft. in thousands, except per sq. ft. and per unit data) For the Three Months Ended 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 (1) (2) MOB tenant improvements $ 2,294 $ 1,330 $ 1,807 $ 1,286 $ 1,066 (1) (3) MOB l
Slide 20: Acquisitions / Dispositions Information Since 1/1/2014
ACQUISITIONS / DISPOSITIONS INFORMATION SINCE 1/1/2014 ACQUISITIONS / DISPOSITIONS INFORMATION SINCE 1/1/2014 (dollars and sq. ft. appearing in the table below are in thousands, except per sq. ft. amounts) Senior Living Acquisitions: (1) Purchase Initial Date Number of Number of Purchase Price Lease
Slide 21: Portfolio Information
21823 30th Drive SE, Bothell, WA Medical Office Building Primary Tenant: Seattle Genetics Square Feet: 63,900 Senior Housing Properties Trust PORTFOLIO INFORMATION Supplemental Operating and Financial Data, September 30, 2014
Slide 22: Portfolio Summary by Property Type and Tenant
PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (1) (dollars in thousands, except investment per unit / bed or square foot) As of September 30, 2014 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q3 2014 Proper
Slide 23: Occupancy by Property Type and Tenant
OCCUPANCY BY PROPERTY TYPE AND TENANT OCCUPANCY BY PROPERTY TYPE AND TENANT (1) (2) For the Twelve Months Ended 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Property Type: Independent living 87.7% 87.6% 87.6% 87.5% 87.5% Assisted living 86.2% 86.1% 86.2% 86.4% 86.5% Nursing homes 79.3% 79.1% 7
Slide 24: Rent Coverage by Senior Living Tenant
RENT COVERAGE BY SENIOR LIVING TENANT (EXCLUDING MANAGED SENIOR LIVING COMMUNITIES) RENT COVERAGE BY SENIOR LIVING TENANT (EXCLUDING MANAGED SENIOR LIVING COMMUNITIES) For the Twelve Months Ended (1) (1) Tenant 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Five Star (Lease No. 1) NA NA 1.18x 1.
Slide 25: Triple Net Leased Senior Living Communities Results of Operations
TRIPLE NET LEASED SENIOR LIVING COMMUNITIES CONSOLIDATED AND SAME PROPERTY – RESULTS OF OPERATIONS TRIPLE NET LEASED SENIOR LIVING COMMUNITIES CONSOLIDATED - RESULTS OF OPERATIONS (1) (dollars in thousands) As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2014 9/30/2013
Slide 26: Managed Senior Living Communities Results of Operations
MANAGED SENIOR LIVING COMMUNITIES CONSOLIDATED AND SAME PROPERTY – MANAGED SENIOR LIVING COMMUNITIES CONSOLIDATED - RESULTS OF OPERATIONS RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2014 9/30/
Slide 27: MOB Portfolio Consolidated and Same Property Results of Operations
MOB PORTFOLIO CONSOLIDATED AND SAME PROPERTY - RESULTS OF MOB PORTFOLIO CONSOLIDATED - RESULTS OF OPERATIONS (1) OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Number of Properties 98 93 9
Slide 28: MOB Leasing Summary
MOB LEASING SUMMARY MOB LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) (1) As of and For the Three Months Ended 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Properties 98 98 96 96 93 Buildings 122 122 119 119 116 (2) Total sq. ft. 9,142 9,143 7,882 7,882 7,819 (3)
Slide 29: Tenants Representing 1% or More of Total Rent
TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT (1) (dollars in thousands) Annualized % of Rental Income Annualized Rental (2) (2) Tenant Facility Type 9/30/2014 Income Expiration 1 Five Star Senior living $ 197,131 31.7% 2024 - 2032 2 Vertex Pharmaceutica
Slide 30: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE (1) PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) (2) Annualized Rental Income Percent of Total Cumulative Annualized Percentage of Senior Living Wellness Rental Income Annualized Rental (3) Year Communities MOBs Centers Total Expiring Income Expiring
Slide 31: Exhibits
Crimson Pointe 7130 Crimson Ridge Drive, Rockford, IL Assisted Living Facility Tenant: Five Star Quality Care, Inc. Living Units: 73 Senior Housing Properties Trust EXHIBITS Supplemental Operating and Financial Data, September 30, 2014
Slide 32: Calculation and Reconciliation of NOI and Cash Basis NOI
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (amounts appearing in the table below are in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2014 9/30/2013 9/30/20
Slide 33: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars appearing in the table below are in thousands) EXHIBIT B For the Three Months Ended For the Nine Months Ended 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Net income $ 37
Slide 34: Calculation and Reconciliation of FFO and Normalized FFO
CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) (amounts appearing in the table below are in thousands, except per share data) For the Three Months Ended For the Nine Months Ended EX
Slide 35: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES NOI and Cash Basis NOI We calculate NOI and Cash Basis NOI as shown in Exhibit A. We define NOI as income from our real estate less our property operating expenses. NOI excludes amortization of EXHI
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