Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Investor Presentation (April 2016)
18 slides from Selectis Health,inc's investor presentation, Apr 5, 2016
Slide 1: Global Healthcare REIT
O GLOBAL HEALTHCARE REIT March 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: About Global Healthcare
About Global Healthcare * Global Healthcare REIT owns senior healthcare properties across the Southwest and South Atlantic. — 11senior healthcare facilities — Solid base of revenue-generating assets leased to proven facility operators in the senior care industry — 1,000+beds fe) GLOBAL
Slide 4: Projected Cash Flow by Property Q3 2016
Projected Cash Flow by Property Q3 2016 a Middle Georg’ $582,000 $229,705 $352,295 Warrenton 624,000 215,400 408,600 Southern Hills SNF 420,000 135,708 284,292 Southern Hills ALF 240,000 137,379 102,621 Southern Hills ILF 691,000 274,758 416,442 Providence Sparta 480,000 154,515 325,485, Greene Poin
Slide 5: Stabilized Net Operating Income
Stabilized Net Operating Income 2016 Stabilized NOI $ 5,573,088 Expected Debt Service 2,563,616 Total Expected Cash Flow 3,009,472 Total Operating Costs 855,000 Operating Cash Flow $ 2,154,472 Adjusted Funds From Operations $ 0.09 (AFFO) Stabilized AFFO Multiple 4.28x fo) GLOBAL
Slide 6: Key Statistics
Key Statistics (ore-cecs Data source: S&PCapita IO Stock Price (as of2/25/2015) $0.41 Revenue (ttm) $3.72M 52 Week Low-High $0.35-$1.10 Diluted EPS (mrq) $(0.03) Avg. Daily Vol. (30 aay) 12,425 Cash (mrq) $.5M Shares Outstanding 22.3M. Total Assets (mrq) $44.8M ic Float (est) 72% Total Debt (mrq) $3
Slide 7: Total Enterprise Value (at Market Value)
Total Enterprise Value (atmaretvatue)” Value Total Debt $ 37,300,000 Preferred stock 776,000 Market value of 9,125,000 equity Total Enterprise $47,201,000 fe) GLOBAL Total Debt 1% Total Enterprise Value (at Market Value) Preferred Stock 4 Market value of equity
Slide 8: 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 « AnnualEscalation clauses between 2 and 3% * Strategic combination of short- and long-t
Slide 9: Trillion Dollar Market Opportunity
Trillion Dollar Market Opportunity * $1trillion U.S. Healthcare Real Estate Market" USS. Senior Housing Market Growth: 2005 - 2019E + Target segment of Senior Housing and Skilled Nursing * om comprises 25% or $250 billion of the total Healthcare = ob REIT market amg * Strong growth in target market
Slide 10: Aging Population a Strong Market Driver
Aging Population a Strong Market Driver Why Senior Healthcare Facilities? ted Wer + Demographic “tidal wave” heading toward to Gi [ea] EL ea senior care industry Age 65 & 85” + Seniors are the fastest growing population in the world? * Affordable Care Act introducing seniors into the market who can
Slide 11: Competitive Landscape: Highly Fragmented Industry
Competitive Landscape: Highly Fragmented Industry Industry Highly Fragmented and Dominated by Small, Private Facilities Independent Living Companies _— Assisted Living Companies Nursing Facility Companies 15% 20% 22% 25% 29% 37% H Top 10 HM Top 25 Remaining Market Source: IBISWorld, Provider Magazin
Slide 12: REIT Industry Trend: Billion Dollar Healthcare REIT Spin-off
REIT Industry Trend: Billion Dollar Healthcare REIT Spin- off Healthcare Facilities to be Pure Play + Inarecent trend, many REITs are pursuing a strategy of simplifying their business models Sales Transactions of Senior by spinning off units into separate identities Housing & Nursing Care and then m
Slide 13: 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 * — As the company continues its acquisition campaign for healthcare real estate, it anticipates revenue & cash flow to
Slide 14: Summary of Stabilized Property Portfolio & Pending Renovations
Summary of Stabilized Property Portfolio & Pending Renovations ALF = Assisted Living Facility SNF = Skilled Nursing Facility Property Name Beds/Units Gross Annual Rent Stré ILF= Independent Living Facility | Middle Georgia 1 SNF | 100beds $582,000 $564,000 | Eastman, GA Warrenton 1 SNF | 110beds $62
Slide 15: New Long-term Leases to Increase Rental Revenue
New Long-term Leases to Increase Rental Revenue = Global signed three long-term operating leases for its Greene Pointe, Providence and Warrenton facilities in Georgia, replacing existing leases which are set to expire on June 30, 2016. = The new leases will begin on July 1, 2016, with initial term o
Slide 16: Traditional & HUD Refinancing Opportunities to Lower Interest Rates
Traditional & HUD Refinancing Opportunities to Lower Interest Rates of Facilities * Currently HUD refinancing Middle Georgia & 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 generating addi
Slide 17: Key Takeaways
Key Takeaways * Strong healthcare REIT growth industry * Simple, straight forward business model * Traditional & HUD refinancing opportunites to further improve FFO * Replacingseveral existing short-term leases with long-term leases to increase annual rental revenue * Board & CEO on same side of inv
Slide 18: 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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