Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Q1 2021 Earnings Presentation
41 slides from Diversified Healthcare Trust's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Supplemental Operating and Financial Data
FIRST QUARTER 2021 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Muse at Torrey Pines San Diego, CA 6700 W 115th Street Overland Park, KS
Slide 2: Table of Contents
Supplemental Q1 2021 2 CORPORATE INFORMATION Company Profile.............................................................................................................................................................................................................................. 3 Investor Inform
Slide 3: Company Profile
Supplemental Q1 2021 3 The Company: Diversified Healthcare Trust, or DHC, we, our or us, is a real estate investment trust, or REIT, which owns healthcare related properties including medical office and life science buildings, senior living communities and wellness centers located throughout the U.S
Slide 4: Investor Information
Supplemental Q1 2021 4 Board of Trustees: Jennifer B. Clark John L. Harrington Lisa Harris Jones Managing Trustee Independent Trustee Lead Independent Trustee Daniel F. LePage Adam D. Portnoy Jeffrey P. Somers Independent Trustee Chair of the Board & Managing Trustee Independent Trustee Executive Of
Slide 5: Research Coverage
Supplemental Q1 2021 5 Equity Research Coverage: B. Riley Securities, Inc. BofA Securities Colliers Securities LLC Bryan Maher Joshua Dennerlein David Toti (646) 885-5423 (646) 855-1681 (401) 488-4797 bmaher@brileyfin.com joshua.dennerlein@bofa.com david.toti@colliers.com JMP Securities Morgan Stanl
Slide 6: Key Financial Data
Supplemental Q1 2021 6 Key Financial Data RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Selected Balance Sheet Data: Total gross assets $ 9,285,312 $ 8,171,325 $ 8,186,982 $ 8,266,767 $ 8,316,051 Total assets $ 7,542,706 $ 6,476,4
Slide 7: Condensed Consolidated Balance Sheets
Supplemental Q1 2021 7 1305 Corporate Center Drive Eagan, MN As of As of March 31, 2021 December 31, 2020 Assets Real estate properties: Land $ 792,923 $ 789,125 Buildings and improvements 6,695,854 6,621,605 Total real estate properties, gross 7,488,777 7,410,730 Accumulated depreciation (1,742,606
Slide 8: Condensed Consolidated Statements of Income (Loss)
Supplemental Q1 2021 8 For the Three Months Ended March 31, 2021 2020 Revenues: Rental income $ 102,758 $ 110,498 Residents fees and services 259,966 331,969 Total revenues 362,724 442,467 Expenses: Property operating expenses 287,391 316,585 Depreciation and amortization 66,153 68,430 General and a
Slide 9: Condensed Consolidated Statements of Income (Loss) (Additional Data)
Supplemental Q1 2021 9 For the Three Months Ended March 31, 2021 2020 Additional Data: General and administrative expenses / total assets (at end of period) 0.1 % 0.1 % Non-cash straight line rent adjustments included in rental income $ 804 $ 1,153 Lease value amortization included in rental income
Slide 10: Debt Summary
Supplemental Q1 2021 10 Coupon Interest Principal Maturity Due at Years to Rate Rate Balance Date Maturity Maturity Floating Rate Debt: Revolving credit facility (1) (2) 2.850 % 2.850 % $ 800,000 1/15/2022 $ 800,000 0.8 Weighted average rate / total floating rate debt 2.850 % 2.850 % $ 800,000 $ 800
Slide 11: Debt Maturity Schedule
Supplemental Q1 2021 11 $800,000 $300,000 $250,000 $1,000,000 $500,000 $1,100,000 $2,380 $39,067 $16,413 $1,834 $2,001 $620,904 $302 $315 $330 $7,969 Floating Rate Debt Unsecured Fixed Rate Debt Secured Fixed Rate Debt 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter $0 $200,000 $400,000 $600
Slide 12: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q1 2021 12 Leverage Ratios, Coverage Ratios and Public Debt Covenants RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Leverage Ratios: Net debt / total gross assets 40.9 % 42.4 % 42.3 % 41.9 % 42.2 % Net debt / gross bo
Slide 13: Summary of Capital Expenditures
Supplemental Q1 2021 13 (dollars and sq. ft. in thousands, except per sq. ft. and unit data) Summary of Capital Expenditures RETURN TO TABLE OF CONTENTS For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Office Portfolio lease related costs $ 8,358 $ 6,071 $ 4,411 $ 3,918
Slide 14: Office Portfolio Redevelopment Information
Supplemental Q1 2021 14 Project Location Type of Property Square Feet (1) Estimated Project Costs Total Costs Incurred as of March 31, 2021 Estimated Completion Date 4 Maguire Road Lexington, MA Life Science 53,905 $ 23.2 $ 3.1 Q4 2021 1415 West 3rd Street Tempe, AZ Life Science 82,257 $ 11.4 $ 0.6
Slide 15: Property Acquisitions / Dispositions Information
Supplemental Q1 2021 15 Property Acquisitions / Dispositions Information Since January 1, 2021 Acquisitions: (1) We have not acquired any properties since January 1, 2021. Dispositions: Date Sold Location Type of Property Number of Buildings Gross Sales Price 2/23/2021 Plymouth Meeting, PA Medical O
Slide 16: Calculation and Reconciliation of NOI and Cash Basis NOI
Supplemental Q1 2021 16 Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Calculation of NOI and Cash Basis NOI: Revenues: Rental income $ 102,758 $ 106,272 $ 104,2
Slide 17: NOI and Cash Basis NOI
Supplemental Q1 2021 17 For the Three Months Ended 3/31/2021 3/31/2020 % Change NOI: Life Science $ 32,088 $ 34,412 (6.8) % Medical Office 29,942 31,652 (5.4) % Total Office Portfolio 62,030 66,064 (6.1) % SHOP 3,868 48,090 (92.0) % Non-Segment 9,435 11,728 (19.6) % Total $ 75,333 $ 125,882 (40.2) %
Slide 18: Same Property NOI and Cash Basis NOI
Supplemental Q1 2021 18 Same Property NOI and Cash Basis NOI (dollars in thousands) RETURN TO TABLE OF CONTENTS For the Three Months Ended 3/31/2021 3/31/2020 % Change NOI: Life Science $ 30,481 $ 31,298 (2.6) % Medical Office 29,640 30,561 (3.0) % Total Office Portfolio 60,121 61,859 (2.8) % SHOP 4
Slide 19: NOI Reconciliation by Segment: Office Portfolio
Supplemental Q1 2021 19 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment RETURN TO TABLE OF CONTENTS (dollars in thousands) Office Portfolio For the Three Months Ended Calculation of NOI and Cash Basis NOI: 3/31/2021 12/31/2020 9/30
Slide 20: NOI Reconciliation by Segment: SHOP
Supplemental Q1 2021 20 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) SHOP For the Three Months Ended Calculation of NOI and Cash Basis NOI: 3/31/2021 12/31/2020 9/30
Slide 21: NOI Reconciliation by Segment: Non-Segment
Supplemental Q1 2021 21 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) Non-Segment For the Three Months Ended Calculation of NOI and Cash Basis NOI: 3/31/2021 12/31/20
Slide 22: NOI Reconciliation by Segment: Consolidated
Supplemental Q1 2021 22 Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment (continued) RETURN TO TABLE OF CONTENTS (dollars in thousands) Consolidated For the Three Months Ended Calculation of NOI and Cash Basis NOI: 3/31/2021 12/31/2
Slide 23: Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q1 2021 23 Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net (loss) income $ (66,183) $ (14,920) $ (105,788) $ (24,742) $ 11,143 Interest expense 60,091 57,768
Slide 24: Reconciliation of FFO and Normalized FFO
Supplemental Q1 2021 24 Calculation and Reconciliation of FFO and Normalized FFO Attributable to Common Shareholders (amounts in thousands, except per share data) RETURN TO TABLE OF CONTENTS For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net (loss) income attributable
Slide 25: Portfolio Summary by Geographic Diversification and Property Type
Supplemental Q1 2021 25 (based on Gross Book Value of Real Estate Assets as of March 31, 2021) (1) Senior living communities are categorized by the type of living units which constitute a majority of the living units at the community. (2) Memory care communities are classified as assisted living com
Slide 26: Portfolio Summary
Supplemental Q1 2021 26 Portfolio Summary RETURN TO TABLE OF CONTENTS (dollars in thousands, except investment per unit or square foot) As of March 31, 2021 Number of Properties Square Feet or Number of Units Gross Book Value of Real Estate Assets % of Total Gross Book Value of Real Estate Assets In
Slide 27: SHOP Unit Count
Supplemental Q1 2021 27 SHOP Unit Count Assisted Living units: 10,669: 40% Independent Living and Active Adult units: 10,414: 39% SNF units: 2,957: 11% Memory Care units: 2,923: 10% RETURN TO TABLE OF CONTENTS SHOP Unit Count as of March 31, 2021 (1) Excludes 1,532 SNF units that are scheduled for c
Slide 28: Rent Coverage and Occupancy
Supplemental Q1 2021 28 Rent Coverage and Occupancy Rent Coverage (1): As of and For the Twelve Months Ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Other triple net leased senior living communities 1.48 x 1.61 x 1.63 x 1.66 x 1.69 x Wellness centers (2) 0.91 x 1.05 x 1.30 x 1.73 x 1.82
Slide 29: Office Portfolio - Results of Operations
Supplemental Q1 2021 29RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months Ended March 31, 2021 As of and For the Three Months Ended March 31, 2020 Life Science Medical Office Total Office Portfolio Life Science Medic
Slide 30: Office Portfolio - Results of Operations (continued)
Supplemental Q1 2021 30 (1) Same property includes those properties classified as same property for the three months ended March 31, 2021 for all periods presented. RETURN TO TABLE OF CONTENTS OFFICE PORTFOLIO - RESULTS OF OPERATIONS (dollars and sq. ft. in thousands) As of and For the Three Months
Slide 31: SHOP Segment and Same Property - Results of Operations
Supplemental Q1 2021 31 SHOP Segment and Same Property - Results of Operations RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Number of Proper
Slide 32: SHOP Segment - Results of Operations
Supplemental Q1 2021 32RETURN TO TABLE OF CONTENTS SHOP SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended March 31, 2021 As of and For the Three Months Ended March 31, 2020 Five Star Retained Communities Operator Transition Commu
Slide 33: Office Portfolio Leasing Summary
Supplemental Q1 2021 33 Office Portfolio Leasing Summary The leasing summary on this page is based on leases entered into during the periods indicated. (dollars and sq. ft. in thousands, except per sq. ft. data) RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 3/31/2021 12/31/2020 9/
Slide 34: Tenants Representing 1% or More of Total Annualized Rental Income
Supplemental Q1 2021 34 As of March 31, 2021 (1) The life science property leased by this tenant is owned in a joint venture arrangement in which we own a 55% equity interest. Rental income presented includes 100% of rental income consistent with GAAP. (2) The property associated with this tenant wa
Slide 35: Office Portfolio Lease Expiration Schedule
Supplemental Q1 2021 35 Office Portfolio Lease Expiration Schedule RETURN TO TABLE OF CONTENTS (dollars in thousands) As of March 31, 2021 Office Portfolio Annualized Rental Income Expiring Year Annualized Rental Income Percent of Total Annualized Rental Income Expiring Cumulative Percentage of Annu
Slide 36: Non-Segment Lease Expiration Schedule
Supplemental Q1 2021 36 Non-Segment Annualized Rental Income Expiring Year Number of Properties Number of Units or Square Feet Annualized Rental Income Percent of Total Annualized Rental Income Expiring Cumulative Percentage of Annualized Rental Income Expiring 2021 — — $ — — % — % 2022 — — — — % —
Slide 37: Non-GAAP Financial Measures
Supplemental Q1 2021 37 Non-GAAP Financial Measures We present certain "non-GAAP financial measures" within the meaning of applicable rules of the SEC, including net operating income, or NOI, Cash Basis NOI, same property NOI, same property Cash Basis NOI, earnings before interest, income tax, depre
Slide 38: Definitions: Adjusted Total Assets and Other Terms
Supplemental Q1 2021 38 Adjusted total assets Adjusted total assets is the original cost of real estate assets calculated in accordance with GAAP before depreciation and after impairment write downs, if any, and excludes accounts receivable and intangible assets. Annualized dividend yield Annualized
Slide 39: Definitions: Gross Book Value and Other Terms
Supplemental Q1 2021 39 Gross book value of real estate assets Gross book value of real estate assets is real estate assets at cost plus certain acquisition costs, before depreciation and purchase price allocations, less impairment writedowns, if any. Includes four properties with gross book value o
Slide 40: Definitions: Office Portfolio and Other Terms
Supplemental Q1 2021 40 Office Portfolio Office Portfolio consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. Our medical office and life science property
Slide 41: Forward-Looking Statements
Supplemental Q1 2021 41 This presentation of supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as “believe”, “expect”, “anticipate”, “intend
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