Diversified Healthcare Trust · NASDAQ:DHC
Diversified Healthcare Trust — Senior Housing Properties Trust — Q1 2016 Earnings Presentation
40 slides from Diversified Healthcare Trust's earnings presentation, May 5, 2016
Slide 1: Senior Housing Properties Trust First Quarter 2016 Supplemental Operating and Financial Data
Exhibit 99.2 Senior Housing Properties Trust First Quarter 2016 Supplemental Operating and Financial Data The Forum at Deer Creek, Deerfield Beach, FL Independent Living Facility Operator: Five Star Senior Living Living Units: 291 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS TABLE OF CONTENTS PAGE/EXHIBIT CORPORATE INFORMATION 6 Company Profile 7 Investor Information 10 Research Coverage 11 FINANCIAL INFORMATION 12 Key Financial Data 13 Condensed Consolidated Balance Sheets 15 Condensed Consolidated Statements of Income 16 Condensed Consolidated Statem
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTH
Slide 4: Forward Looking Statements (continued)
FORWARD LOOKING STATEMENTS (continued) OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF O
Slide 5: Forward Looking Statements (continued)
FORWARD LOOKING STATEMENTS (continued) • CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY IS SUBJECT TO OUR SATISFYING CERTAIN FINANCIAL COVENANTS AND OTHER CUSTOMARY CREDIT FACILITY CONDITIONS THAT WE MAY BE UNABLE TO SATISFY, • ACTUAL COSTS UNDER OUR REVOLVING CREDIT FACILI
Slide 6: Corporate Information
CORPORATE INFORMATION 21 Spurs Lane, San Antonio, TX Medical Office Building Tenant: Ear Medical Group Square Feet: 125,000 6
Slide 7: Company Profile
COMPANY PROFILE COMPANY PROFILE The Company: Corporate Headquarters: Senior Housing Properties Trust, or SNH, we, our or us, is a real estate investment trust, or REIT, Two Newton Place which owns independent and assisted living communities, continuing care retirement communities, 255 Washington Str
Slide 8: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Portfolio Concentration by Facility Type (as of March 31, 2016) ($ in 000): Number of Number of Units/Beds or Carrying Value of % of Total % of Q1 2016 Properties Square Feet Investment (1) Investment Q1 2016 NOI (2) Total NOI (2) Independent l
Slide 9: Company Profile (continued)
COMPANY PROFILE (continued) COMPANY PROFILE (continued) Property Mix Geographic Diversification (based on Q1 2016 NOI)(1) (based on 3/31/16 Carrying Value of Investment)(2) Wellness Centers IN 3% NY 3% 3% VA 3% MD 4% Independent WI 4% Living 29% 33 Other States + D.C. 37% GA 5% MOBs 41% TX 7% Assist
Slide 10: Investor Information
INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees John L. Harrington Lisa Harris Jones Jeffrey P. Somers Independent Trustee Independent Trustee Lead Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee Managing Trustee Senior Management David J. Hegarty Richard W. Siedel,
Slide 11: Research Coverage
RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage 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 & Company RBC Capital Markets Omotayo Okusanya Michael Carroll (212
Slide 12: Financial Information
FINANCIAL INFORMATION Summit Place of Daniel Island, Charleston, SC Assisted Living Facility Operator: Five Star Senior Living Living Units: 67 12
Slide 13: Key Financial Data
KEY FINANCIAL DATA KEY FINANCIAL DATA (share amounts and dollars appearing in the table below are in thousands, except per share data) As of and For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Shares Outstanding: Common shares outstanding (at end of period) 237,472 237,
Slide 14: Key Financial Data (Continued)
KEY FINANCIAL DATA (Continued) KEY FINANCIAL DATA (Continued) (share amounts and dollars appearing in the table below are in thousands, except per share data) As of and For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Selected Balance Sheet Data: (1) Total gross assets $
Slide 15: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (1) (amounts in thousands, except share and per share data) As of As of March 31, 2016 December 31, 2015 ASSETS Real estate properties: Land $ 785,388 $ 781,426 Buildings, improvements and equipment 6,704,728 6,675,514 7,490
Slide 16: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended March 31, 2016 2015 Revenues: (1) Rental income $ 161,421 $ 145,784 (2) Residents fees and services 96,954 82,793 Total revenues 258,375 22
Slide 17: Condensed Consolidated Statements of Income (Additional Data)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) CONDENSED CONSOLIDATED STATEMENTS OF INCOME (ADDITIONAL DATA) (amounts in thousands) For the Three Months Ended March 31, 2016 2015 Additional Data: General and administrative expenses / total revenues 4.2% 4.6% General and administrative
Slide 18: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) For the Three Months Ended March 31, 2016 2015 Cash flows from operating activities: Net income $ 31,272 $ 39,789 Adjustments to reconcile net income to cash provided by operating a
Slide 19: Debt Summary
DEBT SUMMARY DEBT SUMMARY (dollars appearing in the table below are in thousands) As of March 31, 2016 Coupon Interest Principal Maturity Due at Years to (1) (2) Rate Rate Balance Date Maturity Maturity Unsecured Debt: Unsecured Floating Rate Debt: (3) Unsecured revolving credit facility (LIBOR + 13
Slide 20: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE (dollars appearing in the table below are in thousands) As of March 31, 2016 Unsecured Unsecured Secured Floating % of Fixed % of Fixed Rate % of % of (1) Year Rate Debt Total Rate Debt Total Debt Total Total Total (2) 2016 $ - $ - $ 120,422 $ 120,422 20
Slide 21: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Leverage Ratios: (1) (2) Total debt (book value) / total gross assets 41.9% 41.9% 41.2% 40.7%
Slide 22: Summary of Capital Expenditures
SUMMARY OF CAPITAL EXPENDITURES SUMMARY OF CAPITAL EXPENDITURES (dollars and sq. ft. in thousands, except per sq. ft. and unit data) For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 (1) (2) MOB tenant improvements $ 389 $ 3,808 $ 2,568 $ 2,457 $ 1,348 (1) (3) MOB leasing
Slide 23: Property Acquisitions / Dispositions Information Since January 1, 2016
JANUARY 1, 2016 PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE PROPERTY ACQUISITIONS / DISPOSITIONS INFORMATION SINCE JANUARY 1, 2016 (dollars and sq. ft. appearing in the table below are in thousands, except unit and per sq. ft. amounts) Senior Living Acquisitions: Purchase Initial Date Num
Slide 24: Portfolio Information
PORTFOLIO INFORMATION 9930 Independence Park Drive, Richmond, VA Medical Office Building Tenant: HCA - Health Services of Virginia Inc. Square Feet: 30,100 24
Slide 25: Portfolio Summary by Property Type and Tenant
PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT PORTFOLIO SUMMARY BY PROPERTY TYPE AND TENANT (dollars in thousands, except investment per unit / bed or square foot) As of March 31, 2016 Number of Investment Number of Units / Beds Carrying Value of % of Total per Unit / Bed % of Q1 2016 (1) (2) (3) (3
Slide 26: Occupancy by Property Type and Tenant
OCCUPANCY BY PROPERTY TYPE AND TENANT OCCUPANCY BY PROPERTY TYPE AND TENANT (1) (2) For the Twelve Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Property Type: Independent living 87.2% 87.5% 87.6% 87.7% 87.8% Assisted living 86.7% 86.9% 87.0% 87.0% 86.9% Skilled nursing facilities
Slide 27: Rent Coverage by Tenant
RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) RENT COVERAGE BY TENANT (TRIPLE NET LEASED SENIOR LIVING COMMUNITIES AND WELLNESS CENTERS) (1) For the Twelve Months Ended Tenant 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Five Star Senior Living (Le
Slide 28: Triple Net Leased Senior Living Communities Segment and Same Property Results
TRIPLE NET LEASED SENIOR LIVING COMMUNITIES SEGMENT AND SAME PROPERTY – RESULTS OF OPERATIONS TRIPLE NET LEASED SENIOR LIVING COM M UNITIES SEGM ENT - RESULTS OF OPERATIONS (1) (dollars in thousands) As of and For the Three Months Ended March 31, 2016 2015 Number of Properties 231 214 Number of Unit
Slide 29: Managed Senior Living Communities Segment and Same Property Results
MANAGED SENIOR LIVING COMMUNITIES SEGMENT AND SAME PROPERTY – RESULTS OF OPERATIONS MANAGED SENIOR LIVING COMMUNITIES SEGMENT - RESULTS OF OPERATIONS (dollars in thousands, except average monthly rate) As of and For the Three Months Ended March 31, 2016 2015 (1) Number of Properties 65 46 (1) Number
Slide 30: MOB Portfolio Segment and Same Property Results of Operations
MOB PORTFOLIO SEGMENT AND SAME PROPERTY - MOB PORTFOLIO SEGMENT - RESULTS OF OPERATIONS RESULTS OF OPERATIONS (1) (dollars and sq. ft. in thousands) As of and For the Three Months Ended March 31, 2016 2015 Number of Properties 122 121 Number of Buildings 148 145 Square Feet (2) 11,444 11,312 Occupan
Slide 31: MOB Leasing Summary
MOB LEASING SUMMARY MOB LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) (1) As of and For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Properties 122 121 121 121 121 Buildings 148 145 145 145 145 (2) Total sq. ft. 11,444 11,316 11,315 11,315 1
Slide 32: Tenants Representing 1% or More of Total Rent
TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT (dollars in thousands) As of March 31, 2016 % of Annualized Annualized Rental (1) (1) Tenant Facility Type Rental Income Income Expiration 1 Five Star Senior Living Senior living $ 198,625 26.6% 2024 - 2032 2
Slide 33: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars in thousands) As of March 31, 2016 (1) Annualized Rental Income Percent of Cumulative Total Percentage of Annualized Annualized Senior Living Wellness Rental Income Rental Income (2) Year Communities MOBs Centers Total
Slide 34: Exhibits
Bozeman Lodge, Bozeman, MT Assisted Living Facility Operator: Radiant Senior Living Living Units: 131 EXHIBITS 34
Slide 35: Calculation and Reconciliation of NOI and Cash Basis NOI
CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (amounts appearing in the table below are in thousands) For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 (2
Slide 36: Consolidated and Same Property NOI and Cash Basis NOI
CONSOLIDATED AND SAME PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (2) CONSOLIDATED NET OPERATING INCOME (NOI) AND CASH BASIS NOI (dollars in thousands) As of and For the Three Months Ended 3/31/2016 3/31/2015 % Change NOI: Triple Net Leased Senior Living Communities (3) $ 64,945 $ 55,
Slide 37: Reconciliation of NOI, Cash Basis NOI and Same Property NOI by Segment
Same Property Cash Basis NOI by Segment for the Three Months Ended March 31, 2016 Calculation and Reconciliation of Net Operating Income (NOI), Cash Basis NOI, Same Property NOI and Calculation and Reconciliation of Net Operating Income (NOI), Cash Basis NOI, Same Property NOI and Same Property Cash
Slide 38: Calculation and Reconciliation of EBITDA and Adjusted EBITDA
CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA CALCULATION AND RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1) (amounts appearing in the table below are in thousands) EXHIBIT B For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Net income $ 31,272 $ 9,544 $
Slide 39: Calculation and Reconciliation of FFO and Normalized FFO
CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO CALCULATION AND RECONCILIATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) (amounts appearing in the table below are in thousands, except per share data) For the Three Months Ended EXHIBIT C 3/31/2016 12/31/20
Slide 40: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES NOI and Cash Basis NOI The calculations of NOI and Cash Basis NOI exclude certain components of net income in order to provide results that are more closely related to our property level results of
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