Selectis Health,inc. · OTC:GBCS
Selectis Health,inc — Global Healthcare REIT — Investor Presentation (May 2017)
26 slides from Selectis Health,inc's investor presentation, May 16, 2017
Slide 1: Global HealthCare REIT Investor Presentation May 2017
o Global HealthCare REIT May 2017 Investor Presentation GLOBAL
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: Company Overview
Company Overview {o) GLOBAL HEALTHCARE REIT
Slide 4: About Global Healthcare
About Global Healthcare * Global Healthcare REIT (OTCBB: GBCS) owns senior healthcare properties across the Southwest and South Atlantic — 12 senior healthcare facilities — Solid base of revenue-generating assets leased to proven facility operators in the senior care industry — 1,100+ beds * Global’
Slide 5: Annual Cash Flow Run-Rate by Property
Annual Cash Flow Run-Rate by Property in 2018 Middle Georgia $720,000 $304,800 $415,200 Glen Eagle 504,000 272,522 231,478 Warrenton 630,240 149,295 480,945 Southern Hills SNF 463,000 209,041 253,959 Southern Hills ALF 300,000 321,193 (21,193) Southern Hills ILF 708,000 321,193 386,807 Providence Sp
Slide 6: Stabilized Net Operating Income
Stabilized Net Operating Income 2018 Stabilized NOI+ $5,918,056 EO Total Expected Property Cash Flow 3,082,571 i Operating Cash Flow $ 2,482,571 (egy Tmetomonemene Stabilized AFFO Multiple? 5.24x 4) Stabilized NOlincludes current cash rent from properties in operation as wellas properties with lease
Slide 7: Key Statistics
LT Key Statistics ore: cscs) Stock Price (os 5/15/2017) $0.45 Revenue (ttm) $2.9M 52 Week Low-High $0.26-$0.58 Diluted EPS (ttm) $(0.11)' Avg. Daily Vol. (30 day) 16,900 Cash (mrq) $0.6M Shares Outstanding 25.8M. Total Assets (mrq) $37.5M Public Float (est.) 73% Total Debt (mrq) $32.0M Insider Holdi
Slide 8: Total Enterprise Value (at Market Value)
Total Enterprise Value (at Market Value) Total Debt $ 32,037,000 Preferred stock 776,000 Market value of 11,500,000 equity Total Enterprise $44,313,000 Value fo) GLOBAL 1) as of December 31, 2016 Total Enterprise Value (at Market Value) Total Debt m Preferred Stock lm Market value of equity
Slide 9: Typical Lease Structure
Typical Lease Structure * Lease structures favorable to Global Healthcare “Triple net basis” terms; lessee is typically obligated for all liabil including: + Insurance ‘ies of the property + Taxes + Facility Maintenance * Annual Escalation clauses between 2 and 3% * Strategic combination of short- a
Slide 10: Industry Dynamics
Industry Dynamics {o) GLOBAL HEALTHCARE REIT
Slide 11: Trillion Dollar Market Opportunity
Trillion Dollar Market Opportunity * — $1 trillion U.S. Healthcare Real Estate Market* USS. Senior Housing Market Growth: 2005 - 20196? + Target segment of Senior Housing and Skilled * 308 Nursing comprises 25% or $250 billion of the total Healthcare REIT market smd * Strong growth in target market
Slide 12: Aging Population a Strong Market Driver
Aging Population a Strong Market Driver Why Senior Healthcare Facilities? * Demographic “tidal wave” heading toward to senior care industry * Seniors are the fastest growing population in the world? + Affordable Care Act introducing seniors into the market who can now better afford care Seniors Hous
Slide 13: Competitive Landscape: Highly Fragmented
Competitive Landscape: Highly Fragmented Industry Industry Highly Fragmented and Dominated by Small, Private Facilities Independent Living Companies Assisted Living Companies Nursing Facility Companies 15% 22% oH 29% H Top 10 HB Top 25 © Remaining Market Source: IBISWorld, Provider Magazine and Barc
Slide 14: REIT Consolidation Poised to Continue
REIT Consolidation Poised to Continue fo) In arecent trend, many REITs are pursuing a strategy of simplifying their business models by spinning off units into separate entities and then making acquisitions accretive to earnings — Example: Ventas, one of the largest owners of health-care properties,
Slide 15: Company Turnaround
Company Turnaround {o) GLOBAL HEALTHCARE REIT
Slide 16: Challenges Overcome
Challenges Overcome * Management inherited a bankrupt operator in 4 of its 11 buildings, three closed facilities and a company on the brink of insolvency * Repositioned several assets with strong operators capable of driving dependable, stable performance = Sold one facility to recapitalize the comp
Slide 17: Company Opportunities
Company Opportunities {o) GLOBAL HEALTHCARE REIT
Slide 18: Summary of Stabilized Property Portfolio
Summary of Stabilized Property Portfolio ALF = Assisted Living Facility | SNF = Skilled Nursing Facility ILF= Independent Living Facility Property Facility Gross Annual Property Name Beds/Units Location Count Type Rent 2018 () idle Georgia 1 SNF | 100 beds $720,000 Eastman, GA Glen Eagle 1 SNF | 101
Slide 19: Short-term Leases Allow the Company to Increase Rental Revenue
Short-term Leases Allow the Company 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 expired on June 30, 2016 * The new leases began on July 1, 2016, with initial term of
Slide 20: Macon Facilities and Tulsa Campus Present Upside Opportunities
Macon Facilities and Tulsa Campus Present Upside Opportunities to Boost Cash Flow * Archway in Macon, GA, reopened in December 2016 with lease commencement in February 2017. Subject to escalating base rent in addition to occupancy based rent with a carve out to sell 72 beds * Operator has a right of
Slide 21: Traditional & HUD Refinancing Opportunities to Lower Interest Rates
Traditional & HUD Refinancing Opportunities to Lower Interest Rates on Facilities + Currently HUD refinancing Sparta & Warrenton facilities at a long term rate that is expected to be under 4% — Sparta expected to close in third quarter 2017 — Warrenton expected to close by first quarter 2018 \ » * C
Slide 22: 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 inc
Slide 23: Abbeville Property Acquisition
Abbeville Property Acquisition * In March 2017, after working closely with state officials, we saved the CON for a closed SNF in Abbeville, GA, and put it in our control dba Glen Eagle Healthcare & Rehab * In April 2017, we successfully bid $2.1 million for the SNF at the foreclosure sale + Weare fi
Slide 24: Key Takeaways
Key Takeaways * — Strong industry tailwinds for senior housing properties * Simple, straight-forward business model * Replacing several existing short-term leases with long-term leases to increase annual rental revenue * Macon Facilities and the Tulsa Campus present opportunities to boost the existi
Slide 25: Appendix
Appendix {o) GLOBAL HEALTHCARE REIT
Slide 26: 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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