Regional Health Properties, Inc. · OTC:RHEP
Regional Health Properties — Adcare Health Systems — Investor Presentation (November 2015)
13 slides from Regional Health Properties's investor presentation, Nov 23, 2015
Slide 1: November 2015 Investor Presentation
November 2015 Investor Presentation NYSE MKT: ADK AdCare Health Systems, Inc. ® Exhibit 99.1
Slide 2: Forward-Looking Statements
NYSE MKT: ADK Forward-Looking Statements 2 Any forward-looking statements made in this presentation are based on management's current expectations, assumptions and beliefs about the Company’s business and the environment in which AdCare operates. These statements are subject to risks and uncertainti
Slide 3: Investor Highlights
NYSE MKT: ADK Investor Highlights AdCare Health Systems is a healthcare property holding and leasing company Portfolio of 38 operator and geographically diverse senior care properties, primarily skilled nursing facilities, with a total of 4,081 beds/units(1) Similar to REIT, portfolio consists of lo
Slide 4: Strategic Transition Substantially Complete
NYSE MKT: ADK Strategic Transition Substantially Complete 4 In July 2014, the company announced its plan to transition from an owner and operator of skilled nursing facilities to a healthcare property holding and leasing company Since that time, Leadership roles filled with seasoned executives posse
Slide 5: Geographic Diversification
NYSE MKT: ADK OK AR MO OH NC SC AL GA TX Geographic Diversification 5 State # of Facilities Alabama 2 Arkansas 9 Georgia 14 North Carolina 1 Ohio 8 Oklahoma 2 South Carolina 2 Total 38 As of November 2015
Slide 6: Operator Diversification
NYSE MKT: ADK Operator Diversification 6 Operator # of Facilities Leased Aria 9 Beacon 7 C-Ross Management 7 Wellington 4 New Beginnings 3 Symmetry 3 Southwest LTC (1) 2 Total Leased 35 AdCare Managed 3 Total 38 % of Facilities by Operator Aria 24% Beacon 18% C-Ross Mgmt 18% Wellington 11% New Begin
Slide 7: Typical Lease Structure
NYSE MKT: ADK Typical Lease Structure 7 “Triple-net basis” terms; lessee is typically obligated for all liabilities of the property including: Insurance Taxes Facility maintenance Typically 10+ years in duration with renewal options Annual escalation clauses between 2 and 3% Cross collateral and cro
Slide 8: Capital Structure
NYSE MKT: ADK Capital Structure 8 ($ in thousands) As of 9/30/2015 Non-convertible debt(1) 125,261 Convertible subordinated debt 9,200 Total Debt $134,461 Preferred stock 50,119 Total Equity / (Deficit) (17,028) Total Capitalization $167,552 (1) Includes $4.0M in liabilities of a disposal group held
Slide 9: Total Capitalization (at Market Value)
NYSE MKT: ADK Total Capitalization (at Market Value) 9 53% 22% 25% Total debt Preferred stock (at liquidation value) Market value of equity Total Capitalization (at Market Value) ($ in thousands) As of 9/30/2015 Total Debt(1) $134,461 Preferred stock (at liquidation value) $55,084 Market value of eq
Slide 10: Positioned for Growth
NYSE MKT: ADK Positioned for Growth Diverse pipeline of portfolio expansion opportunities Entering Florida market with signing of first post-transition agreement to purchase a 55 bed skilled nursing facility for $4.8 million; transaction expected to close in Q1 2016 Targeting small to mid-sized tran
Slide 11: Entering the Florida Market
NYSE MKT: ADK Entering the Florida Market Signed a letter of intent to purchase first property following the strategic transition Expected to be accretive to earnings and cash flow at point of sale Entry into highly attractive Florida market $4.8 million purchase price, net of reserves 55 bed skille
Slide 12: Returning Capital to Shareholders
NYSE MKT: ADK Declaration Date Returning Capital to Shareholders Recent dividend increase of 9.1% Represents annualized dividend of $0.24 per share Dividend yield of ~7.5% (based on the closing stock price on November 11, 2015 of $3.19 per share) – attractive as compared with other healthcare REITs
Slide 13: Key Stats
NYSE MKT: ADK Stock Price (11/11/15) $3.19 Avg. Daily Vol. (3 mo.) 26,897 52 Week Low/High $2.95 – $4.50 Shares Outstanding (10/31/15) 19.9M Public Float, est. 17.2M Annualized Dividend Yield 7.5% Valuation Measures Market Value of Equity $63.5M Enterprise Value $248.8M Ownership Institutional, est.
Adcare Health Systems — Investor Presentation (November 2015) on 6ix