Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q1 2017 Earnings Presentation
37 slides from Diversified Healthcare Trust's earnings presentation, May 5, 2017
Slide 1: First Quarter 2017 Supplemental Operating and Financial Data
Senior Housing Properties Trust First Quarter 2017 Supplemental Operating and Financial Data All amounts in this report are unaudited. Tenant: Advanced Bionics 146,385 Sq. Ft. Valencia, CA
Slide 2: Table of Contents
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 T A B L E O F C O N T E N T S TABLE OF CONTENTS PAGE CORPORATE INFORMATION 6 Company Profile 7 Investor Information 8 Research Coverage 9 FINANCIALS 10 Key Financial Data 11 Condensed Consolidated Balance Sheet
Slide 3: Warning Concerning Forward Looking Statements
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 W A R N I N G C O N C E R N I N G F O R W A R D L O O K I N G S T A T E M E N T S 3 • • OUR ABILITY TO RETAIN OUR EXISTING TENANTS, ATTRACT NEW TENANTS AND MAINTAIN OR INCREASE CURRENT RENTAL RATES, • THE CREDI
Slide 4: Warning Concerning Forward Looking Statements (continued)
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017W ARNING CONCERNING FO R W ARD LOOKING S T A T EMENTS (continued ) 4 • • • • • • • • • • THE IMPACT OF CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS ON FIVE STAR AND ITS RESIDENTS AND OTHER CUSTOMERS, • COMPETI
Slide 5: Warning Concerning Forward Looking Statements (continued)
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017W ARNING CONCERNING FO R W ARD LOOKING S T A T EMENTS (continued ) 5 • • • • • • • • • • • • CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY IS SUBJECT TO OUR SATISFYING CERTAIN FINANCIA
Slide 6: Corporate Information
CORPORATE INFORMATION 6 Tenant: AtriCure 95,780 Sq. Ft. Mason, OH
Slide 7: Company Profile
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C O M P A N Y P R O F I L E 7 The Company: Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 796-8350 (f) (617) 796-8349 Management: Stock Exchange Listin
Slide 8: Investor Information
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 I N V E S T O R I N F O R M A T I O N 8 John L. Harrington Lisa Harris Jones Jeffrey P. Somers Independent Trustee Independent Trustee Lead Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee
Slide 9: Research Coverage
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 R E S E A R C H C O V E R A G E 9 Bank of America / Merrill Lynch JMP Securities Robert W. Baird & Co. Juan Sanabria Peter Martin Drew Babin (646) 855-1589 (415) 835-8904 (610) 238-6634 juan.sanabria@baml.com p
Slide 10: Financials
FINANCIALS 10 Bozeman Lodge 131 Independent and Assisted Living Units Bozeman, MT Tenant: Radiant Senior Living
Slide 11: Key Financial Data
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 K E Y F I N A N C I A L D A T A 11 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 Selected Balance Sheet Data: Total gross assets (1) 8,597,102$ 8,555,765$ 8,510,876$ 8,501,876$ 8,347,701$ Total assets 7,22
Slide 12: Condensed Consolidated Balance Sheets
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C O N D E N S E D C O N S O L I D A T E D B A L A N C E S H E E T S 12 As of March 31, 2017 As of December 31, 2016 ASSETS Real estate properties: Land 805,827$ 803,773$ Buildings and improvements 6,961,929 6,9
Slide 13: Condensed Consolidated Statements of Income
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E 13 2017 2016 Revenues: Rental income 166,443$ 161,421$ Residents fees and services 98,118 96,954 Total revenues 264,561 258,375 Expe
Slide 14: Condensed Consolidated Statements of Income (Additional Data)
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E ( A D D I T I O N A L D A T A ) 14 2017 2016 Additional Data: General and administrative expenses / total revenues 5.7% 4.2% General
Slide 15: Consolidated Statements of Cash Flows
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C O N S O L I D A T E D S T A T E M E N T S O F C A S H F L O W S 15 2017 2016 Cash flows from operating activities: Net income 32,281$ 31,272$ Adjustments to reconcile net income to cash provided by operating
Slide 16: Debt Summary
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 D E B T S U M M A R Y 16 Coupon Interest Principal Maturity Due at Years to Rate Rate (1) Balance (2) Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: Unsecured revolving credit facility (LI
Slide 17: Debt Maturity Schedule
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 DEBT M A TURIT Y SCHEDUL E 17 Unsecured Unsecured Secured Floating Fixed Fixed Rate Year Rate Debt Rate Debt Debt (1) Total 2017 —$ —$ 19,157$ (2) 19,157$ 2018 97,000 (3) — 109,768 206,768 2019 — 400,000 320,91
Slide 18: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 L E V E R A G E R A T I O S , C O V E R A G E R A T I O S A N D P U B L I C D E B T C O V E N A N T S 18 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 Leverage Ratios: Total debt (book value) (1) / total g
Slide 19: Summary of Capital Expenditures
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 S U M M A R Y O F C A P I T A L E X P E N D I T U R E S 19 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 MOB tenant improvements (1) 2,265$ 7,453$ 2,652$ 1,743$ 389$ MOB leasing costs (2) 1,108 1,828 1,220
Slide 20: Property Acquisitions / Dispositions Information Since January 1, 2017
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 P R O P E R T Y A C Q U I S I T I O N S / D I S P O S I T I O N S I N F O R M A T I O N S I N C E J A N U A R Y 1 , 2 0 1 7 20 Acquisitions: Weighted Number of Purchase Average Date Properties Purchase Price Ca
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C A L C U L A T I O N A N D R E C O N C I L I A T I O N O F N E T O P E R A T I N G I N C O M E ( N O I ) A N D C A S H B A S I S N O I 21 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 Calculation of NOI a
Slide 22: Consolidated and Same Property NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C O N S O L I D A T E D A N D S A M E P R O P E R T Y N E T O P E R A T I N G I N C O M E ( N O I ) A N D C A S H B A S I S N O I 22 3/31/2017 3/31/2016 % Change NOI: Triple Net Leased Senior Living Communities
Slide 23: Calculation of NOI and Cash Basis NOI by Segment
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 Calculation of NOI and Cash Basis NOI: Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs Non-Segment (2) Total Triple Net Leased Senior Living Communities Managed Senior Living
Slide 24: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 C A L C U L A T I O N A N D R E C O N C I L I A T I O N O F E B I T D A A N D A D J U S T E D E B I T D A 24 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 Net income 32,281$ 42,885$ 27,903$ 39,233$ 31,272$
Slide 25: Calculation and Reconciliation of FFO and Normalized FFO
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 CALCUL A TION AND RECONCILI A T I O N O F F F O A N D N O R M A L I Z E D F F O 25 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 Net income attributable to common shareholders 32,155$ 42,885$ 27,903$ 39,23
Slide 26: Definitions of Certain Non-GAAP Financial Measures
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 D E F I N I T I O N S O F C E R T A I N N O N - G A A P F I N A N C I A L M E A S U R E S 26 NOI and Cash Basis NOI The calculations of NOI and Cash Basis NOI exclude certain components of net income in order t
Slide 27: Portfolio Information
PORTFOLIO INFORMATION 27 The Forum at Deer Creek 291 Independent Living , Assisted Living and Skilled Nursing Units Deerfield Beach, FL Tenant: Five Star Senior Living
Slide 28: Portfolio Summary by Property Mix and Geographic Diversification
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 P O R T F O L I O S U M M A R Y B Y P R O P E R T Y M I X A N D G E O G R A P H I C D I V E R S I F I C A T I O N 28 Independent Living 28% Assisted Living 25% MOBs 41% SNFs 3% Wellness Centers 3% Property Mix
Slide 29: Portfolio Summary by Property Type and Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 P O R T F O L I O S U M M A R Y B Y P R O P E R T Y T Y P E A N D T E N A N T 29 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q1 2017 Properties or Square Feet In
Slide 30: Occupancy by Property Type and Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 O C C U P A N C Y B Y P R O P E R T Y T Y P E A N D T E N A N T 30 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 Property Type: Independent living 86.9% 86.9% 86.9% 87.1% 87.3% Assisted living 85.9% 86.2%
Slide 31: Rent Coverage by Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 R E N T C O V E R A G E B Y T E N A N T (TRIPLE NET LEASED SENIO R L I V I N G C O M M U N I T I E S A N D W E L L N E S S C E N T E R S ) 31 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 Five Star 1.19x
Slide 32: Triple Net Leased Senior Living Communities Segment Results of Operations
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 TRIPLE NET LEASED SENIOR LIVING C O M M U N I T I E S S E G M E N T A N D S A M E P R O P E R T Y – R E S U L T S O F O P E R A T I O N S 32 2017 2016 Number of Properties 236 231 Number of Units 26,220 26,114
Slide 33: Managed Senior Living Communities Segment Results of Operations
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 M A N A G E D S E N I O R L I V I N G C O M M U N I T I E S S E G M E N T A N D S A M E P R O P E R T Y – R E S U L T S O F O P E R A T I O N S 33 2017 2016 Number of Properties (1) 68 65 Number of Units (1) 8,
Slide 34: MOB Portfolio Segment Results of Operations
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 M O B P O R T F O L I O S E G M E N T A N D S A M E P R O P E R T Y - R E S U L T S O F O P E R A T I O N S 34 2017 2016 Number of Properties 120 122 Number of Buildings 146 148 Square Feet (1) 11,552 11,444 Oc
Slide 35: MOB Leasing Summary
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 M O B L E A S I N G S U M M A R Y 35 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 Properties 120 119 119 123 122 Buildings 146 145 145 149 148 Total sq. ft. (1) 11,552 11,431 11,401 11,610 11,444 Occupanc
Slide 36: Tenants Representing 1% or More of Total Rent
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 T E N A N T S R E P R E S E N T I N G 1 % O R M O R E O F T O T A L R E N T 36 % of Annualized Annualized Rental Facility Type Rental Income (1) Income (1) Expiration 1 Five Star Senior living 209,930$ 27.5% 20
Slide 37: Portfolio Lease Expiration Schedule
Senior Housing Properties Trust Supplemental Operating and Financial Data, March 31, 2017 P O R T F O L I O L E A S E E X P I R A T I O N S C H E D U L E 37 Year Senior Living Communities (2) MOBs Wellness Centers Total Percent of Total Annualized Rental Income Expiring Cumulative Percentage of Annu
Senior Housing Properties Trust — Q1 2017 Earnings Presentation on 6ix