Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q3 2016 Earnings Presentation
38 slides from Diversified Healthcare Trust's earnings presentation, Nov 4, 2016
Slide 1: Third Quarter 2016 Supplemental Operating and Financial Data
Senior Housing Properties Trust Third Quarter 2016 Supplemental Operating and Financial Data Morningside of Pekin 61 Living Units Pekin, IL All amounts in this report are unaudited.
Slide 2: Table of Contents
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 S
Slide 3: Warning Concerning Forward Looking Statements
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 C
Slide 4: Warning Concerning Forward Looking Statements (continued)
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016W ARNING CONCERNING FO R W ARD LOOKING S T A T EMENTS (continued ) 4 • • • • • • • • • • CHANGES IN REGULATIONS AFFECTING FIVE STAR'S OPERATIONS, • CHANGES IN THE ECONOMY OR GOVERNMENTAL POLICIES WHICH REDUC
Slide 5: Warning Concerning Forward Looking Statements (continued)
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016W ARNING CONCERNING FO R W ARD LOOKING S T A T EMENTS (continued ) 5 • • • • • • • • • • • • FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016, APPROXIMATELY 97% OF OUR NOI WAS GENERATED FROM PROPERTIES WHERE A
Slide 6: Corporate Information
CORPORATE INFORMATION 6 Baylor Medical Center Tenant: North Garland Surgery Center 44,731 Sq. Ft. North Garland, TX
Slide 7: Company Profile
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 Li
Slide 8: Investor Information
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 Trus
Slide 9: Research Coverage
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 R E S E A R C H C O V E R A G E 9 Bank of America / Merrill Lynch Raymond James Juan Sanabria Jonathan Hughes (646) 855-1589 (727) 567-2438 juan.sanabria@baml.com jonathan.hughes@raymondjames.com Jefferies
Slide 10: Financials
FINANCIALS 10 Premier Residences of Plantation 272 Living Units Plantation, FL
Slide 11: Key Financial Data
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 K E Y F I N A N C I A L D A T A 11 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 Selected Balance Sheet Data: Total gross assets (1) 8,510,876$ 8,501,876$ 8,347,701$ 8,307,630$ 8,429,231$ Total assets
Slide 12: Condensed Consolidated Balance Sheets
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 September 30, 2016 As of December 31, 2015 ASSETS Real estate properties: Land 798,343$ 781,426$ Buildings and improvements 6,869
Slide 13: Condensed Consolidated Statements of Income
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 2016 2015 2016 2015 Revenues: Rental income 165,503$ 158,863$ 490,922$ 460,193$ Residents fees and services 98,480 96,412 292
Slide 14: Condensed Consolidated Statements of Income (Additional Data)
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 2016 2015 2016 2015 Additional Data: General and administrative expenses / total revenues 4.6
Slide 15: Condensed Consolidated Statements of Cash Flows
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 C A S H F L O W S 15 2016 2015 Cash flows from operating activities: Net income 98,409$ 114,425$ Adjustments to reconcile net income to cash
Slide 16: Debt Summary
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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
Slide 17: Debt Maturity Schedule
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 DEBT M A TURIT Y SCHEDUL E 17 Unsecured Unsecured Secured Floating Fixed Fixed Rate Year Rate Debt Rate Debt Debt (1) Total 2016 -$ -$ 3,178$ 3,178$ 2017 - - 69,838 (2) 69,838 2018 215,000 (3) 109,768 324,7
Slide 18: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 Leverage Ratios: Total debt (book value) (1) / tot
Slide 19: Summary of Capital Expenditures
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 MOB tenant improvements (1) 2,652$ 1,743$ 389$ 3,808$ 2,568$ MOB leasing costs (2) 1,220 965 857
Slide 20: Property Acquisitions / Dispositions Information Since January 1, 2016
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 6 20 Triple Net Leased Senior Living Acquisitions: Weighted Purchase Initial Average
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 9/30/2016 9/30/2
Slide 22: Consolidated and Same Property NOI and Cash Basis NOI
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 9/30/2016 9/30/2015 % Change 9/30/2016 9/30/2015 % Change NOI: Triple Net
Slide 23: NOI Reconciliation by Segment, Three Months Ended September 30
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 ) , C A S H B A S I S N O I , S A M E P R O P E R T Y N O I A N D S A M E P R O P E R T Y C A S H B A
Slide 24: NOI Reconciliation by Segment, Nine Months Ended September 30
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 ) , C A S H B A S I S N O I , S A M E P R O P E R T Y N O I A N D S A M E P R O P E R T Y C A S H B A
Slide 25: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 25 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 9/30/2016 9/30/2015 Net income 27,903$ 39,233$
Slide 26: Calculation and Reconciliation of FFO and Normalized FFO
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 F U N D S F R O M O P E R A T I O N S ( F F O ) A N D N O R M A L I Z E D F F O 26 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 9/30/2016 9/
Slide 27: Definitions of Certain Non-GAAP Financial Measures
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 27 NOI and Cash Basis NOI The calculations of NOI and Cash Basis NOI exclude certain components of net income in ord
Slide 28: Portfolio Information
Tenant: GN Hearing Care Corporation 48,911 Sq. Ft. Glenview, IL PORTFOLIO INFORMATION 28
Slide 29: Portfolio Summary by Property Mix and Geographic Diversification
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 29 Independent Living 28% Assisted Living 25% MOBs 41% SNFs 3% Wellness Centers 3% Property
Slide 30: Portfolio Summary by Property Type and Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 30 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q3 2016 Properties or Square Fee
Slide 31: Occupancy by Property Type and Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 31 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Property Type: Independent living 86.9% 87.1% 87.3% 87.4% 87.6% Assisted living 86.6% 86
Slide 32: Rent Coverage by Tenant
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 ) 32 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Five Star 1.2
Slide 33: Triple Net Leased Senior Living Communities Segment and Same Property Results
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 33 2016 2015 2016 2015 Number of Properties 234 232 234 232 Number o
Slide 34: Managed Senior Living Communities Segment and Same Property Results
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 34 2016 2015 2016 2015 Number of Properties (1) 68 65 68 65 Nu
Slide 35: MOB Portfolio Segment and Same Property Results
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 35 2016 2015 2016 2015 Number of Properties 119 121 119 121 Number of Buildings 145 145 145 145 Sq
Slide 36: MOB Leasing Summary
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 M O B L E A S I N G S U M M A R Y 36 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 Properties 119 123 122 121 121 Buildings 145 149 148 145 145 Total sq. ft. (1) 11,401 11,610 11,444 11,316 11,315 Occu
Slide 37: Tenants Representing 1% or More of Total Rent
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 37 % of Annualized Annualized Rental Facility Type Rental Income (1) Income (1) Expiration 1 Five Star Senior living 206,982$ 27.4
Slide 38: Portfolio Lease Expiration Schedule
Senior Housing Properties Trust Supplemental Operating and Financial Data, September 30, 2016 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 38 Year Senior Living Communities (2) MOBs Wellness Centers Total Percent of Total Annualized Rental Income Expiring Cumulative Percentage of
Senior Housing Properties Trust — Q3 2016 Earnings Presentation on 6ix