Table of Contents

 

Item Page
   
Financial and Operating Highlights 3
Consolidated Balance Sheets 4
Consolidated Statements of Income 5
   
Portfolio 6 - 9
Business Summary 6
Quarterly Revenue and NOI 7
Portfolio Diversification by State 8
Seniors Housing / MSA Characteristics 9
   
Segment Reporting 10 - 14
Medical Office Buildings 10 - 11
Triple-Net Leased 12 - 13
Seniors Housing - Operating 14
   
Debt Structure 15
Non-GAAP Reconciliations 16
Definitions 17 - 18
Property List 19 - 24

 

The data and other information described in this supplemental is as of the dates indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties.

 

This presentation contains certain statements that are American Realty Capital Healthcare Trust, Inc.’s (“HCT” or the “Company”) and its management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward-looking statements under federal securities laws. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties. HCT’s actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to these forward-looking statements to reflect changes after we’ve made the statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in HCT’s filings with the Securities and Exchange Commission (“SEC”) including, but not limited to, HCT’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q, as well as HCT’s press releases.


PAGE 2 OF 24

 

Financial and Operating Highlights            
Amounts in thousands, except per share data, ratios and percentages         
   Quarter ended June 30,  Year to Date June 30,
Financial and Operating Information  2014  2013  2014  2013
Total revenues  $64,769   $23,937   $120,758   $42,615 
Net operating income (NOI)  $38,531   $16,493    68,582    29,938 
Adjusted EBITDA  $33,409   $15,243    63,991    28,457 
                     
Dividends paid per common share  $0.17   $0.17   $0.34   $0.34 
                     
Funds from operations (FFO)  $(66,425)  $9,335    (44,607)   17,270 
FFO per diluted share  $(0.38)  $0.05    (0.25)   0.14 
                     
Normalized funds from operations (NFFO)  $27,097   $12,048    52,337    26,440 
NFFO per diluted share  $0.15   $0.07    0.29    0.21 
                     
Adjusted funds from operations (AFFO)  $25,791   $11,524    50,664    25,457 
AFFO per diluted share  $0.15   $0.07    0.28    0.21 
                     
Interest expense  $7,108   $3,315    12,651    6,404 
                     
Adjusted interest coverage ratio   5.7x    5.5x    6.3x    5.3x 
Adjusted fixed charge coverage ratio   5.4x    5.3x    5.9x    5.2x 
                     
Same store NOI increase/decrease1                    
Medical office   3.0%   N/A    N/A    N/A 
Triple-net leased   N/A    N/A    N/A    N/A 
Seniors housing - operating   N/A    N/A    N/A    N/A 
                     
Seniors housing - operating: operating margin2   35.9%   N/A    N/A    N/A 
                     
    As of June 30,             
Capitalization Data   2014    2013           
Real estate investments, net  $1,972,317   $833,029           
Total assets, gross  $2,077,525   $1,724,480           
                     
Total debt  $811,707   $215,784           
Non-controlling interests  $14,487   $3,895           
Total shareholders' equity  $1,150,157   $1,479,102           
                     
Common shares and units outstanding3   170,760    177,391           
Share price, end of period  $10.89   $10.00           
                     
Total market capitalization  $1,859,578   $1,773,909           
Total enterprise value  $2,642,590   $1,137,453           
                     
Debt to total assets, gross   39.1%   12.5%          
Debt to total market capitalization   43.7%   12.2%          
Debt to total book capitalization   30.7%   19.0%          
Secured debt to total assets, gross   14.6%   12.5%          

 

1.At June 30, 2014, approximately 50% of the Medical Office Building (“MOB”) portfolio met the conventional definition of “same store.” The Company will commence same store reporting for the other business segments once the level of net operating income from stabilized assets held for a period of five consecutive quarters exceeds 50%.

 

2.Reflects the operating margin for seven stabilized properties in this buisness segment that have been owned for five consecutive quarters. Operating margin is the ratio of operating income divided by revenue.

 

3.Includes common share equivalents.

 

PAGE 3 OF 24

 

Consolidated Balance Sheets               
Amounts in thousands               
   Q2 2014  Q1 2014  Q4 2013  Q3 2013  Q2 2013
Assets                         
                          
Real estate investments, at cost                         
Land  $143,505   $121,978   $107,719   $112,766   $60,086 
Buildings, fixtures and improvements   1,729,130    1,556,438    1,363,858    1,147,659    719,065 
Construction in progress   19,262    16,148    11,112    4,819    - 
Acquired intangible lease assets   228,963    199,630    181,264    158,804    97,658 
Total real estate investments at cost   2,120,860    1,894,194    1,663,953    1,424,048    876,809 
Less: accumulated depreciation and amortization   (148,543)   (116,558)   (87,350)   (61,156)   (43,780)
Total real estate investments, net   1,972,317    1,777,636    1,576,603    1,362,892    833,029 
                          
Cash and cash equivalents   28,695    142,928    103,447    308,911    852,240 
Other assets   76,513    70,346    54,523    63,830    39,211 
Total assets  $2,077,525   $1,990,910   $1,734,573   $1,735,633   $1,724,480 
                          
Liabilities And Equity                         
Mortgage notes payable  $304,207   $298,650   $259,348   $239,067   $215,784 
Line of credit   207,500    131,500    -    -    - 
Unsecured term loan   300,000    100,000    -    -    - 
Accounts payable, accrued expenses and other liabilities   101,174    47,092    39,481    35,840    25,699 
Total liabilities   912,881    577,242    298,829    274,907    241,483 
                          
Common stock   1,691    1,821    1,805    1,788    1,771 
Additional paid in capital   1,462,108    1,607,456    1,591,941    1,576,011    1,560,226 
Accumulated other comprehensive loss   (987)   (1,597)   (3,243)   (3,241)   (1,285)
Accumulated deficit   (312,655)   (195,863)   (158,378)   (117,649)   (81,610)
Total shareholders' equity   1,150,157    1,411,817    1,432,125    1,456,909    1,479,102 
Non-controlling interests   14,487    1,851    3,619    3,817    3,895 
Total equity   1,164,644    1,413,668    1,435,744    1,460,726    1,482,997 
Total liabilities and equity  $2,077,525   $1,990,910   $1,734,573   $1,735,633   $1,724,480 
                          
PAGE 4 OF 24

 

Consolidated Statements of Income               
Amounts in thousands, except per share data and ratios  Q2 2014  Q1 2014  Q4 2013  Q3 2013  Q2 2013
Revenues:                         
Rental income  $55,584   $47,517   $41,597   $29,285   $20,885 
Operating expense reimbursement   4,267    4,184    3,626    2,859    2,474 
Resident services and fee income   4,918    4,288    3,367    2,004    578 
Total revenues   64,769    55,989    48,590    34,148    23,937 
Property operating   26,238    23,479    20,089    13,940    7,444 
Net operating income   38,531    32,510    28,501    20,208    16,493 
Asset management fees to affiliate   2,352    -    -    -    - 
Equity based compensation   97    10    68    13    10 
Acquisition and transaction related   35,372    3,422    5,748    3,107    2,713 
Estimated value of listing note   58,150    -    -    -    - 
General and administrative   2,673    1,918    1,618    1,416    1,240 
Depreciation and amortization   31,714    28,943    25,907    17,141    12,714 
Operating income (loss)   (91,827)   (1,783)   (4,840)   (1,469)   (184)
Other income (expenses)                         
Interest expense   (7,108)   (5,543)   (5,089)   (4,350)   (3,315)
Income from investments   830    300    49    354    255 
Total other expense   (6,278)   (5,243)   (5,040)   (3,996)   (3,060)
Net income (loss)   (98,105)   (7,026)   (9,880)   (5,465)   (3,244)
Net income (loss) attributable to non-controlling interests   817    (9)   (12)   (10)   (13)
Net income (loss) attributable to shareholders  $(97,288)  $(7,035)  $(9,892)  $(5,475)  $(3,257)
Basic weighted average shares outstanding   175,129    181,621    179,930    178,231    170,125 
Basic net loss per share attributable to shareholders  $(0.56)  $(0.04)  $(0.05)  $(0.03)  $(0.02)
Funds from operations:                         
Net loss in accordance with GAAP  $(98,105)  $(7,026)  $(9,880)  $(5,465)  $(3,244)
Depreciation and amortization   31,713    28,943    25,907    17,140    12,714 
Proportionate share of adjustments related to non-controlling interests   (33)   (99)   (133)   (132)   (135)
Funds from operations  $(66,425)  $21,818   $15,894   $11,543   $9,335 
Acquisition fees and expenses   35,372    3,422    5,748    3,107    2,713 
Estimated value of listing note   58,150    -    -    -    - 
Funds from operations, normalized  $27,097   $25,240   $21,642   $14,650   $12,048 
Amortization of above-market lease assets and liabilities   95    95    98    160    119 
Straight-line rent   (2,662)   (1,930)   (1,851)   (1,357)   (1,174)
Accretion of discount/amortization of premiums   (384)   (264)   (233)   (226)   (188)
Deferred financing costs   1,629    1,561    1,520    1,209    637 
Non-cash equity compensation   97    10    68    13    11 
Loss on sale of investments   (335)   -    300    -    - 
OPP   516    -    -    -    - 
Distributions on Class B units   12    139    103    63    37 
Proportionate share of adjustments related to non-controlling interests   2    22    31    35    34 
Capital expenditures   (276)   -    -    -    - 
Adjusted funds from operations (AFFO)  $25,791   $24,873   $21,678   $14,547   $11,524 
Diluted weighted average shares outstanding   176,766    182,478    180,546    178,621    170,357 
Distributions paid in cash  $24,303   $13,818   $13,865   $13,960   $11,663 
Distributions reinvested   5,721    16,533    16,537    16,519    12,954 
Distributions on unvested shares   2    3    6    3    3 
Distributions on Class B units   12    139    103    63    37 
Distributions on OP Units   166    -    -    -    - 
Total distributions paid  $30,204   $30,493   $30,511   $30,545   $24,657 
FFO per diluted share  $(0.38)  $0.12   $0.09   $0.06   $0.05 
FFO payout ratio   -45%   140%   192%   265%   264%
Normalized FFO per diluted share   0.15    0.14    0.12    0.08    0.07 
Normalized FFO payout ratio   111%   121%   141%   208%   205%
AFFO per diluted share  $0.15   $0.14   $0.12   $0.08   $0.07 
AFFO payout ratio   117%   123%   141%   210%   214%

 

PAGE 5 OF 24

 

Business Summary                    
Amounts in thousands, except number of properties, number of units / beds, square feet and percentages
             
  Number of No. Units /     Gross   Annualized   Annualized  
  Properties Beds Square Feet States Asset Value % of Total Revenue1 % of Total NOI1 % of Total
By Business Segment                    
Medical office 78 - 3,957,555 24 $1,038,994 49% $99,403 36% $79,946 49%
Triple-net leased 34 2,400 1,416,373 10 404,307 19% 40,497 15% 39,909 24%
Seniors housing - operating 33 2,716 2,148,410 11 653,530 31% 137,683 50% 44,068 27%
Land 2 - - 2 3,020 0% - 0% (52) 0%
Total 147 5,116 7,522,338 30 $2,099,850 100% $277,583 100% $163,871 100%
                     
By Investment Type                    
Medical office 78 - 3,957,555 24 $1,038,994 49% $99,403 36% $79,946 49%
Seniors housing 46 3,361 2,692,922 15 741,194 35% 145,749 53% 52,081 32%
Post acute / skilled nursing 14 1,311 508,190 8 150,726 7% 16,897 6% 16,664 10%
Hospital 7 444 363,671 2 165,916 8% 15,534 6% 15,233 9%
Land 2 - - 2 3,020 0% - 0% (52) 0%
Total 147 5,116 7,522,338 30 $2,099,850 100% $277,583 100% $163,871 100%

 

1.Annualized revenue and NOI represent Trailing Twelve Month (“TTM”) figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

 

PAGE 6 OF 24

 

Quarterly Revenue and Net Operating Income by Business Segment and Investment Type        
Amounts in thousands            
   Q2 2014  Q1 2014  Q4 2013  Q3 2013  Q2 2013
Revenues               
By Business Segment                         
Medical office  $24,946   $23,993   $22,791   $15,735   $13,660 
Triple-net leased   8,812    4,793    4,436    3,197    3,140 
Seniors housing - operating   31,011    27,203    21,364    15,216    7,137 
Land   -    -    -    -    - 
Total  $64,769   $55,989   $48,590   $34,148   $23,937 
                          
By Investment Type                         
Medical office  $24,946   $23,993   $22,791   $15,735   $13,660 
Seniors housing   33,021    28,121    21,609    15,417    7,333 
Post acute / skilled nursing   3,812    806    649    494    480 
Hospital   2,990    3,069    3,541    2,503    2,463 
Land   -    -    -    -    - 
Total  $64,769   $55,989   $48,590   $34,148   $23,937 
                          
Net Operating Income                         
By Business Segment                         
Medical office  $20,030   $19,221   $18,554   $12,422   $11,011 
Triple-net leased   8,648    4,569    4,050    3,038    2,993 
Seniors housing - operating   9,868    8,733    5,914    4,748    2,488 
Land   (15)   (13)   (18)   -    - 
Total  $38,531   $32,510   $28,501   $20,208   $16,493 
                          
By Investment Type                         
Medical office  $20,030   $19,221   $18,554   $12,422   $11,011 
Seniors housing   11,864    9,649    6,160    4,948    2,685 
Post acute / skilled nursing   3,754    763    589    460    460 
Hospital   2,898    2,889    3,215    2,378    2,338 
Land   (15)   (13)   (18)   -    - 
Total  $38,531   $32,510   $28,501   $20,208   $16,493 

 

PAGE 7 OF 24

 

Portfolio Diversification by State
Amounts in thousands, except number of properties and percentages
                             
        Medical Office Buildings       Triple-net Leases         Seniors Housing  
                         
    Total1   Single & Multi-Tenants Seniors housing Post acute / skilled nursing Hospital Operating Properties
  Number     Number     Number     Number     Number     Number    
Top 20 States of Annualized % of of Annualized % of of Annualized % of of Annualized % of of Annualized % of of Annualized % of
Properties NOI2 Total Properties NOI2 Total Properties NOI2 Total Properties NOI2 Total Properties NOI2 Total Properties NOI2 Total
1. Texas 17  $25,896 16% 9 $7,128 9% 1 $1,115 14% 1 $1,220 7% 5 $11,741 77% 1 $4,692 11%
2. Georgia 17  14,649 9% 8 5,462 7% 0 - 0% 0 - 0% 0 - 0% 8 9,236 21%
3. Illinois 15  13,883 8% 7 9,571 12% 7 3,905 49% 0 - 0% 0 - 0% 1 407 1%
4. California 7  13,239 8% 3 4,944 6% 0 - 0% 2 979 6% 0 - 0% 2 7,316 17%
5. Wisconsin 11  11,037 7% 6 8,281 10% 2 762 10% 3 1,995 12% 0 - 0% 0 - 0%
6. Florida 11  10,842 7% 5 5,155 6% 0 - 0% 0 - 0% 0 - 0% 5 5,691 13%
7. Indiana 6 8,416 5% 6 8,416 11% 0 - 0% 0 - 0% 0 - 0% 0 - 0%
8. Arizona 6 6,638 4% 2 1,500 2% 1 802 10% 1 845 5% 2 3,492 23% 0 - 0%
9. Oregon 7 6,545 4% 0 - 0% 0 - 0% 0 - 0% 0 - 0% 7 6,545 15%
10. Pennsylvania 4 5,948 4% 4 5,948 7% 0 - 0% 0 - 0% 0 - 0% 0 - 0%
11. Washington 5 5,579 3% 0 - 0% 0 - 0% 0 - 0% 0 - 0% 5 5,579 13%
12. Missouri 3 5,036 3% 1 867 1% 0 - 0% 2 4,169 25% 0 - 0% 0 - 0%
13. Nevada 5 4,945 3% 5 4,945 6% 0 - 0% 0 - 0% 0 - 0% 0 - 0%
14. Michigan 4 4,443 3% 4 4,443 6% 0 - 0% 0 - 0% 0 - 0% 0 - 0%
15. South Carolina 3 3,682 2% 2 2,647 3% 0 - 0% 0 - 0% 0 - 0% 1 1,035 2%
16. West Virginia 2 3,593 2% 0 - 0% 0 - 0% 2 3,593 22% 0 - 0% 0 - 0%
17. Rhode Island 2 2,949 2% 0 - 0% 0 - 0% 2 2,949 18% 0 - 0% 0 - 0%
18. Virginia 2 2,621 2% 2 2,621 3% 0 - 0% 0 - 0% 0 - 0% 0 - 0%
19. North Dakota 2 2,098 1% 1 1,048 1% 1 1,050 13% 0 - 0% 0 - 0% 0 - 0%
20. North Carolina 2 2,061 1% 1 802 1% 0 - 0% 0 - 0% 0 - 0% 1 1,259 3%
States 1 to 20 131    $154,099 94% 66   $73,776 92% 12   $7,633 95% 13  $15,751 95% 7 $15,233 100% 31   $41,759 95%
Subtotal                                    
                                     
All other states 16   $9,772 6% 12   $6,170 8% 1 $379 5% 1 $913 5% 0 $- 0% 2 $2,310 5%
                                     
Total 147    $163,871 100% 78   $79,946 100% 13   $8,012 100% 14   $16,664 100% 7 $15,233 100% 33   $44,068 100%

 

1.Totals include two holdings in land properties.

 

2.Annualized NOI represents TTM figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

 

PAGE 8 OF 24

 

Seniors Housing Position Compared to Metropolitan Statistical Area (“MSA”) Characteristics

 

 

 

        MSA Statistics
    Annualized     Median    
    NOI2   Population % Population Household    
By MSA / Location No. Properties (in thousands) % of Total Growth3 Over 654 Income4 Unemployment %5  
Atlanta, GA 7 $7,920 15.2% 4.1% 9.9% $54,628 7.6%  
Houston, TX 1 $4,692 9.0% 6.1% 9.2% 55,910 5.4%  
Los Angeles, CA 1 $3,804 7.3% 2.2% 11.7% 57,271 7.4%  
Sacramento, CA 1 $3,511 6.7% 2.8% 13.0% 56,813 6.9%  
Seattle, WA 2 $2,517 4.8% 4.7% 11.6% 65,677 5.0%  
Portland, OR 3 $1,976 3.8% 3.7% 12.3% 56,978 6.1%  
Salem, OR1 2 $1,935 3.7% 2.3% 14.9% 49,161 6.9%  
Orlando, FL 1 $1,804 3.5% 6.0% 13.0% 46,020 5.8%  
Cleveland, OH 1 $1,363 2.6% -0.5% 15.9% 46,944 7.5%  
Athens, GA1 1 $1,316 2.5% 2.3% 11.5% 47,209 6.3%  
                 
Top Ten Markets 20 30,838 59.2% 3.4% 12.3% 53,661 6.5%  
                 
Remaining Markets 26 21,243 40.8% 1.9% 15.4% 49,911 5.9%  
                 
Total 46 $52,081 100.0% 2.4% 14.3% $51,204 5.3%  
                 
      US National Average 2.7% 12.8% $57,150 6.3%  

 

1.Are not within defined MSAs. For statistical comparison, statewide data is presented.

 

2.Annualized NOI represents TTM figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

 

3.Source: United States Census Bureau: Annual Estimates 2010 - 2013.

 

4.Source: United States Census Bureau: 2012 American Community Survey.

 

5.Source: Bureau of Labor Statistics: 2014 Unemployment Rates for Metropolitan Areas.

 

PAGE 9 OF 24

 

Segment Reporting: Medical Office Buildings          
Amounts in thousands, except property count, square feet, per square foot, age and percentages
 
      Gross Annualized Annualized Average Age  
MOB Classification Property Count Square Feet Asset Value Revenue1 NOI1 (years) Occupancy
Affiliated 60 2,939,683 $807,586 $78,221 $61,449 11.7 96.3%
Non-Affiliated 18 1,017,872 231,409 21,182 18,497 13.2 97.9%
Total 78 3,957,555 $1,038,994 $99,403 $79,946 12.0 96.7%
               
On campus 26 1,356,321 $364,777 $34,511 $26,522 12.0 96.9%
Off campus 52 2,601,234 674,217 64,892 53,424 12.0 96.7%
Total 78 3,957,555 $1,038,994 $99,403 $79,946 12.0 96.7%
               
Single Tenant 49 2,514,691 $653,722 $55,835 $50,901 11.2 100.0%
Multi-Tenant 29 1,442,864 385,272 43,568 29,045 13.4 91.1%
Total 78 3,957,555 $1,038,994 $99,403 $79,946 12.0 96.7%
               
Property Summary Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013    
Properties 78 77 75 71 52    
Average Age (years) 12.0 12.1 11.9 11.8 10.5    
Square feet 3,957,555 3,914,661 3,768,063 3,560,439 2,160,132    
Gross Asset Value $1,038,994 $1,026,470 $989,291 $943,603 $604,050    
Occupancy 96.7% 96.7% 96.5% 95.5% 94.8%    
               
Revenues (annualized)1 $99,403 $97,259 $92,915 $87,473 $59,765    
NOI (annualized)1 $79,946 $78,901 $75,826 $72,467 $47,775    
Total Cap-Ex/TI/Leasing $933 $432 $358 $140 $50    
Revenues per square foot $25.96 $25.71 $25.55 $25.71 $29.19    
NOI per square foot $20.88 $20.85 $20.85 $21.30 $23.33    
               
Newly Leased square feet 2,499 - 5,164 11,533 15,470    
Retained square feet 2,821 5,345 3,923 - -    
Expired square feet 2,821 8,703 7,869 - 1,526    
Retention rate 100.0% 61.4% 49.9% 0.0% 0.0%    

 

1.Annualized revenue and NOI represent TTM figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

 

PAGE 10 OF 24

 

Segment Reporting: Medical Office Buildings            
Amounts in thousands, except square feet and percentages
               
Lease Expirations 2014 2015 2016 2017 2018 2019   Beyond 2019
Square feet 12,885 43,502 139,344 155,378 348,768 153,748 2,974,855
$/SF $33.98 $23.89 $21.94 $22.86 $21.27 $24.69 $21.48
% of MOB portfolio 0.3% 1.1% 3.6% 4.1% 9.1% 4.0% 77.7%
Diversification by Tenant1   Annualized NOI2 % of Total Square Feet % of Total Credit Rating    
UnitedHealth Group Incorporated   $9,754 12.2% 610,670 16.0% Moody's: A1    
Aurora Health Care   5,025 6.3% 226,046 5.9% Moody's: A3    
Crozer-Keystone Health System   4,580 5.7% 259,716 6.8% Moody's: Baa3    
Rush Copley Medical Center   4,044 5.1% 160,088 4.2% Moody's: A2    
Ascension Health   3,256 4.1% 179,138 4.7% Moody's: Aa2    
Carson Tahoe Regional Healthcare   3,144 3.9% 193,048 5.0% S&P: BBB+    
Spartanburg Regional Healthcare System   2,647 3.3% 90,948 2.4% Moody's: A1    
Bronson Healthcare Group   2,361 3.0% 100,321 2.6% Moody's: A2    
IU Health   2,152 2.7% 63,000 1.6% Moody's: A1    
Methodist HCS (Iowa Health)   1,944 2.4% 73,302 1.9% Moody's: A2    
Top 10 Tenants   38,907 48.7% 1,956,277 51.1%      
                 
Remaining Tenants   41,039 51.3% 1,872,203 48.9%      
Total   $79,946 100.0% 3,828,480 100.0%      

 

1.Includes multi-tenant buildings for which the tenant is the anchor tenant in the building.

 

2.Annualized NOI represents TTM figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

 

PAGE 11 OF 24

 

Segment Reporting: Triple-net Leased Diversification by Operators

Amounts in thousands, except property count, units, beds, and percentages

 

Seniors Housing - Triple-net leased          
  Property   Gross Annualized  
Diversification by Operator Count Units Asset Value NOI1 % of Total
Meridian Senior Living 8 410 $55,083 $4,955 62%
Frontier Management 1 48 8,410 802 10%
PM Management 1 68 13,150 1,115 14%
Platinum Healthcare, LLC 3 119 11,021 1,141 14%
Total 13 645 $87,665 $8,012 100%
           
Hospital          
  Property   Gross Annualized  
Leased Properties Count Beds Asset Value NOI1 % of Total
Reliant Rehabilitation 2 120 $65,391 $6,515 43%
Baylor Scott & White Medical System 2 64 44,000 3,731 24%
Global Rehabilitation 1 60 16,525 1,495 10%
Acuity, LLC2 2 200 40,000 3,492 23%
Total 7 444 $165,916 $15,233 100%
           
Post acute / skilled nursing          
  Property   Gross Annualized  
Diversification by Operator Count Beds Asset Value NOI1 % of Total
National Mentor Holdings, Inc. 3 55 $19,497 $1,824 11%
Gentiva Health Services 1 120 12,250 1,220 7%
Platinum Healthcare, LLC 8 818 92,979 10,670 64%
American Senior Living Communities 2 318 26,000 2,949 18%
Total 14 1,311 $150,726 $16,664 100%

 

1.Annualized NOI represents TTM figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.

 

2.Acuity LLC is a replacement manager/tenant in connection with two long term acute care (“LTAC”) facilities formerly leased to Restora, Inc. The annualized NOI reflected in this report represents the annualized NOI the Company will receive under the new lease with Acuity, Inc., which has a 10 year term.

 

PAGE 12 OF 24

 

Segment Reporting: Triple-net Leased Property Summaries

Gross Asset Value amounts in thousands

 

Seniors Housing - Triple-net leased Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013
Property count 13 10 2 1 1
Number of units 645 526 115 48 48
Square Feet 544,512 462,447 109,681 25,971 25,971
Occupancy1 88% 91% 87% 85% 77%
Average remaining lease term 14.5 14.6 14.8 14.5 14.8
Gross Asset Value $87,665 $76,643 $20,060 $8,410 $8,410
Private Pay 91% N/A N/A N/A N/A
EBITDARM CFC2 1.12x N/A N/A N/A N/A

 

Hospital Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013
Property count 7 7 7 6 4
Number of beds 444 444 444 420 220
Square Feet 363,671 363,671 363,671 306,428 210,428
Occupancy1 60% 55% 53% 48% 48%
Average remaining lease term 16.5 16.8 17.0 17.4 18.5
Gross Asset Value $165,916 $165,916 $165,916 $137,916 $97,916
Revenue Quality Mix3 100% N/A N/A N/A N/A
EBITDARM CFC2 5.95x 5.08x 5.44x N/A N/A

 

Post acute / skilled nursing Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013
Property count 14 4 4 3 3
Number of beds 1,311 175 175 55 55
Square Feet 508,190 73,103 73,103 30,250 30,250
Occupancy1 82% 65% 66% 57% 57%
Average remaining lease term 15.1 12.6 12.8 11.9 12.2
Gross Asset Value $150,726 $31,747 $31,747 $19,497 $19,497
Revenue Quality Mix3 42% N/A N/A N/A N/A
EBITDARM CFC2 1.50x N/A N/A N/A N/A

 

1.Occupancy statistics are compiled through reports from operators and have not been independently validated by the company.

 

2.Cashflow coverage is depicted for stabilized properties as earnings before interest, taxes, depreciation & amortization, rent, and management fees.

 

3.Revenue Quality Mix defined as the percentage of facility revenue from non-Medicaid sources, as reported by tenants/operators. Total and subtotals calculated based on segment annualized NOI.

 

PAGE 13 OF 24

 

Segment Reporting: Seniors Housing - Operating          
Amounts in thousands, except property count, units, square feet, age, margin and REVPOR
 
          Gross  
Diversification by Operator Property Count Units Square Feet % of Total Asset Value Annualized NOI1
Arbor Company 9 826 650,519 30% $213,158 $13,365
Frontier Management 10 776 577,992 27% 140,050 10,339
Principal Senior Living Group, LLC 6 413 308,095 14% 96,002 6,672
MBK Senior Living 2 293 231,991 11% 104,582 7,316
Selah Management USA, LLC 1 80 104,525 5% 17,370 1,018
Other 5 328 275,288 13% 82,367 5,359
Total 33 2,716 2,148,410 100% $653,530 $44,068
             
Property Summary Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013  
Property count 33 29 26 22 10  
Number of units 2,716 2,435 2,039 1,686 780  
Square feet 2,148,410 1,939,320 1,633,217 1,188,058 577,449  
Occupancy 92% 93% 92% 92% 92%  
Average age (years) 12.0 11.7 11.8 10.8 8.2  
Gross Asset Value $653,530 $572,502 $442,291 $306,267 $146,936  
             
Revenues (annualized)1 $137,683 $119,980 $95,122 $72,962 $31,380  
NOI (annualized)1 $44,068 $40,490 $32,892 $21,947 $10,838  
Operating margin2 32% 34% 35% 30% 35%  
REVPOR3 $4,576 $4,416 $4,247 $3,922 $3,627  
Capital Expenditures $621 $312 $65 $40 $2  

 

1.Annualized revenue and NOI represent TTM figures through the period ended June 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period. Annualized NOI for operating properties purchased in June 2014 reflect TTM historical NOI prior to the June closing.
2.Operating margin is the ratio of operating income divided by revenue.

 

3.REVPOR means revenue per occupied room per month.

 

PAGE 14 OF 24

 

Debt Structure                    
Amounts in thousands, except percentages, term, ratios and shares                  
        Balance   Average Life / Weighted Average Percentage Percentage
        Outstanding   Term (months) Int. Rate Total Debt Gross Assets
        June 30, 2014            
Fixed Rate Debt                  
Secured debt     $304,207   35.3   5.2% 37.5% 14.6%
Total fixed rate debt     $304,207 35.3   5.2% 37.5% 14.6%
Variable Rate Debt                  
Unsecured term loan     $300,000 48.8   1.8% 37.0% 14.4%
Unsecured lline of credit     207,500   24.8   1.8% 25.6% 10.0%
Total variable rate debt     $507,500 39.0   1.8% 62.5% 24.4%
Total Debt     $811,707   37.6   3.0% 100.0% 39.1%
Ratio of debt to market capitalization     43.7%            
    TTM YTD QTR   Scheduled Principal Payments    
Interest expense coverage 6.4x 6.3x 5.7x            
Fixed charge coverage 6.0x 5.9x 5.4x       Unsecured1 Secured Total
            2014   $- $769 $769
Selected Debt Covenants & Credit Ratios         2015   - 120,179 120,179
        2016   207,500 20,935 228,435
        Qtr. Ended   2017   - 94,353 94,353
      Requirement 6/30/2014   2018   300,000 27,778 327,778
Aggregate debt test (debt to gross assets as defined)   55.0% 37.9%   Thereafter   - 40,193 40,193
Secured debt test (secured debt to gross assets as defined)   35.0% 14.2%   Total   $507,500 $304,207 $811,707
Debt service test (EBITDA available for debt service charge, as defined)   1.6 5.4            
Unencumbered asset test (minimum unencumbered assets in borrowing base)     $200,000 $1,225,628            
Unencumbered NOI (NOI related to borrowing base assets)     N/A $102,960   Summary of Preferred Shares    
                  Qtr. Ended
6/30/2014
Qtr. Ended
6/30/2013
      Total preferred shares outstanding N/A N/A
                 
            Summary of Common Shares    
            Weighted average, quarter Qtr. Ended
6/30/2014
Qtr. Ended
6/30/2013
            Diluted shares - FFO 176,765,611 170,356,832
            Diluted shares - EPS 175,129,424 170,124,871
            Total shares and units outstanding at end of period 170,760,153 177,390,911
                 
            Weighted average, YTD YTD
6/30/2014
YTD
6/30/2013
            Diluted shares - FFO 179,606,007 124,009,878
            Diluted shares - EPS 178,357,402 123,834,119
             
   
                   

1. Figures represent outstanding balance at maturity date and facility expiration date for the unsecured term loan and unsecured line of credit, respectively

PAGE 15 OF 24

 

Non-GAAP Reconciliations

Amounts in thousands, except ratios

 

   Q2 2014  Q1 2014  Q4 2013  Q3 2013  Q2 2013
Adjusted EBITDA:                         
Net income/(loss)  $(98,105)  $(7,026)  $(9,880)  $(5,465)  $(3,244)
Acquisition and transaction related   35,372    3,422    5,748    3,107    2,713 
Estimated value of listing note   58,150    -    -    -    - 
Depreciation and amortization   31,714    28,943    25,908    17,140    12,714 
 Interest expense   7,108    5,543    5,089    4,350    3,315 
Loss on investments   (335   -    300    -    - 
Income from preferred investment and other income   (495)   (300)   (349)   (354)   (255)
 Non-controlling interests   -    -    -    -    - 
Adjusted EBITDA   33,409    30,582    26,816    18,778    15,243 
                          
Net Operating Income (NOI):                         
Asset management fees to affiliate   2,352    -    -    -    - 
Equity based compensation   97    10    68    13    10 
General and administrative   2,673    1,918    1,618    1,416    1,240 
NOI   38,531    32,510    28,502    20,207    16,493 
                          
Cash NOI:                         
Amortization of above-market lease assets and liabilities   95    95    98    160    119 
Straight-line rent   (2,662)   (1,930)   (1,851)   (1,357)   (1,174)
Cash NOI  $35,964   $30,675   $26,749   $19,010   $15,438 
                          
Interest coverage ratio:                         
Interest expense  $7,108   $5,543   $5,089   $4,350   $3,315 
Non-cash interest expense   (1,245   (1,297   (1,287   (983   (447
Adjustments related to non-controlling interest   (13)   (12)   (77)   (79)   (78)
Total Interest  $5,850   $4,234   $3,725   $3,288   $2,790 
Adjusted EBITDA   33,409    30,582    26,816    18,778    15,243 
Adjusted interest coverage ratio   5.7x    7.2x    7.2x    5.7x    5.5x 
                          
Fixed charge ratio:                         
Total interest  $5,850   $4,234   $3,725   $3,288   $2,790 
Secured debt principal amortization   371    301    253    133    63 
Total fixed charges  $6,221   $4,535   $3,978   $3,421   $2,853 
Adjusted EBITDA   33,409    30,582    26,816    18,778    15,243 
Adjusted fixed charge ratio   5.4x    6.7x    6.7x    5.5x    5.3x 

 

PAGE 16 OF 24

 

Definitions

 

This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations. Additional detail can be found in the Company’s most recent annual report on Form 10-K as well as other documents filed with or furnished to the SEC from time to time.

 

Adjusted funds from operations (AFFO)

AFFO is core FFO, excluding certain income or expense items that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains or losses on contingent valuation rights, gains and losses on investments and early extinguishment of debt. In addition, by excluding non-cash income and expense items such as amortization of above and below market leases, amortization of deferred financing costs, straight-line rent and non-cash equity compensation from AFFO we believe we provide useful information regarding income and expense items which have no cash impact and do not provide liquidity to the company or require capital resources of the company. We exclude distributions related to Class B units and certain interest expenses related to securities that are convertible to common stock as the shares are assumed to have converted to common stock in our calculation of weighted average common shares-fully diluted.

 

Although our AFFO may not be comparable to that of other real estate investment trusts (“REIT”) and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to stockholders. In addition, we believe that to further understand our liquidity, AFFO should be compared with our cash flows determined in accordance with GAAP, as presented in our consolidated financial statements. AFFO does not represent cash generated from operating activities determined in accordance with GAAP, and AFFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

 

Annualized straight-line rent

Sum of the contractual rent over the term of the lease, including escalations and free rent, divided by the number of months in the lease term and annualized. Excludes contingent rental payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.

 

Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA)

EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is an appropriate measure of our ability to incur and service debt. EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs. EBITDA is adjusted to include our pro-rata share of EBITDA from unconsolidated joint ventures.

 

Cash net operating income (Cash NOI)

NOI, presented on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and fair value lease revenue.

 

Funds from operations (FFO)

Pursuant to the revised definition of funds from operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate funds from operations (FFO), by adjusting net income (loss) attributable to stockholders (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of consolidated real estate, impairment losses on investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management

 

PAGE 17 OF 24

 

Definitions, continued

 

generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to asset sales (land and property), impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.

 

FFO should not be considered as an alternative to net income attributable to stockholders (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income attributable to stockholders and considered in addition to cash flows determined in accordance with GAAP, as presented in our consolidated financial statements.

 

Net operating income (NOI)

Net operating income (NOI) is a non-GAAP financial measure equal to net income attributable to stockholders, the most directly comparable GAAP financial measure, less discontinued operations, plus corporate general and administrative expense, acquisition and transaction costs, depreciation and amortization and interest expense, income from unconsolidated joint ventures, interest and other income and gains from investments in securities. NOI is adjusted to include our pro-rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.

 

Normalized funds from operations (NFFO)

Normalized FFO is FFO, excluding acquisition and transaction related costs as well as certain other costs that management deems to be non-recurring, such as the valuation of the Listing Note. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make distributions to investors. In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. By excluding expensed acquisition costs and other non-recurring costs, management believes Normalized FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties.

 

PAGE 18 OF 24

 

Property List as of June 30, 2014              
Amounts in thousands, except square feet              
      Building Size No. Units / Year Built / Gross Asset Net Book
Property Name and Location Address State (Sq. Ft.) Beds¹ Renovated Value Value
MOB: SINGLE TENANT              
Methodist North MOB - Peoria, IL 2338 Van Winkle Way, Peoria, IL IL 73,302   2010 $24,625 $21,447
Odessa Regional MOB - Odessa, TX 520 E. 6th Street, Odessa, TX TX 39,220   2008 7,359 6,166
Cooper Health MOB I - Willingboro, NJ 651 John F. Kennedy Way, Willingboro, NJ NJ 11,000   2010 3,387 2,883
Univ of Wisconsin Health - Monona, WI 1050 East Broadway, Monona, WI WI 31,374   2011 9,161 8,118
Henry Ford Dialysis Center - Southfield, MI 25664 Lahser Road, Southfield, MI MI 10,100   2002 2,878 2,544
East Pointe Medical Plaza - Lehigh Acres, FL 1530 Lee Boulevard, Leigh Acres, FL FL 34,500   1994 10,516 9,402
PAPP Clinic - Newnan, GA 2959 Sharpsburg McCullum Road, Newnan, GA GA 31,213   1994 5,488 4,960
Cooper Health MOB II - Willingboro, NJ 218-C Sunset Road, Willingboro, NJ NJ 16,314   2012 4,620 4,024
Cancer Care Partners - Mishawaka, IN 301 East Day Road, Mishawaka, IN IN 63,000   2010 26,800 24,140
Aurora Health Care - Two Rivers, WI 5300 Memorial Drive, Two Rivers, WI WI 99,266   2006 30,212 27,285
Aurora Health Care - Hartford, WI 1640 East Sumner Street, Hartford, WI WI 88,390   2006 25,522 23,152
Aurora Health Care - Neenah, WI 1136 Westowne Drive, Neenah, WI WI 38,390   2006 10,485 9,465
Bronson Lakeview OPC - Paw Paw, MI 451 Health Parkway, Paw Paw, MI MI 100,321   2006 30,430 27,678
Advocate Beverly Center - Chicago, IL 9831 South Western Avenue, Chicago, IL IL 59,345   1986 16,500 15,156
Wellmont Blue Ridge MOB - Bristol, TN 271 Medical Park Boulevard, Bristol, TN TN 23,277   2001 4,850 4,483
Metro Health - Wyoming, MI 5950 Metro Way SW, Wyoming, MI MI 21,502   2008 6,243 5,805
Michiana Oncology - Mishawaka, IN 5340 Holy Cross Parkway, Mishawaka, IN IN 49,410   2010 21,740 20,286
North Valley Orthopedic Surgery Center - Phoenix, AZ 2262 East Rose Garden Lane, Phoenix, AZ AZ 17,608   2006 9,000 8,405
Scott & White Healthcare - Kingsland, TX 105 FM 2342, Kingsland, TX TX 14,974   2012 4,400 4,102
Salem Medical - Woodstown, NJ 66 East Avenue, Woodstown, NJ NJ 9,350   2010 3,670 3,417
Rex Wellness Center - Garner, NC 1400 Timber Drive East, Garner, NC NC 30,000   2003 9,000 8,453
Spectrum Health - Wyoming, MI 6105 Wilson Avenue SW, Wyoming, MI MI 52,898   2006 16,683 15,728
Memorial Hermann - Houston, TX 14201 East Sam Houston Parkway, Houston, TX TX 30,000   2012 13,331 12,606
UC Davis Medical - Folsom, CA 251 & 271-279 Turnpike Drive, Folsom, CA CA 36,911   1995 9,488 8,955
Via Christi Clinic - Wichita, KS 13213 W 21st Street, Wichita, KS KS 32,540   2006 8,000 7,602
West Valley Medical Center - Buckeye, AZ 525 South Watson Boulevard, Buckeye, AZ AZ 38,734   2011 8,800 8,518
Crozer-Keystone MOB II - Springfield, PA 100 West Sproul Road, Springfield, PA PA 41,935   1998 12,910 12,498
Crozer-Keystone MOB I - Springfield, PA 190 West Sproul Road, Springfield, PA PA 217,781   1996 55,520 53,578
St. Peter's Recovery Center - Guilderland, NY 3 Mercycare Lane, Guilderland, NY NY 30,000   1990 9,110 8,745
Trinity Health Medical Arts Clinic - Minot, ND 400 East Burdick Expressway, Minot, ND ND 114,000   1995 13,420 12,952
Allina Health - Elk River, MN 14181 Business Center Drive NW, Elk River, MN MN 28,175   2002 7,700 7,470
Spartanburg ASC - Spartanburg, SC 720 North Pine Street, Spartanburg, SC SC 26,148   2002 13,800 13,403
Texarkana ASC - Texarkana, TX 5404 Summerhill Road, Texarkana, TX TX 18,268   1994 4,500 3,765
Davita Dialysis - Marked Tree, AR 216 Hester Parker Drive, Marked Tree, AR AR 4,596   2009 1,444 1,181

 

PAGE 19 OF 24

 

Property List as of June 30, 2014, continued            
Amounts in thousands, except square feet              
      Building Size No. Units / Year Built / Gross Asset Net Book
Property Name and Location Address State (Sq. Ft.) Beds¹ Renovated Value Value
MOB: Single Tenant, continued              
Davita Dialysis - Rockford, IL 1302 E State Street, Rockford, IL IL 7,032   2009 2,050 1,728
BioLife Sciences Building - Denton, TX 3455 Quail Creek Drive, Denton, TX TX 15,000   2010 5,747 5,118
Sisters of Mercy Building - Springfield, MO 4520 S. National Avenue, Springfield, MO MO 42,430   2008 11,045 9,789
DaVita Dialysis - Paoli, IN 555 W. Longest St., Paoli, IN IN 5,725   2011 1,874 1,681
Unitron Hearing - Plymouth, MN 14755 27th Avenue North, Plymouth, MN MN 81,927   2011 9,390 8,274
Fresenius Medical - Metairie, LA 3030 North Arnoult Street, Metairie, LA LA 18,149   2012 3,739 3,412
United Healthcare - Cypress, CA 5701 Katella Ave, Cypress, CA CA 214,000   1985 53,904 51,655
United Healthcare - Indianapolis, IN 7440-7500 Woodland Dr, Indianapolis, IN IN 209,184   1988 36,972 35,496
United Healthcare - Onalaska, WI 2700 Midwest Drive, Onalaska, WI WI 66,000   1995 9,195 8,813
United Healthcare - Wawatosa, WI 10701 Research Dr West, Wawatosa, WI WI 121,486   1995 22,267 21,451
Virginia Urology Center - Richmond, VA 9105 Stony Point Drive, Richmond, VA VA 53,318   2004 19,200 18,398
Bay Medical Plaza - Lynn Haven, FL 2851 Martin Luther King, Jr. Boulevard, Lynn Haven, FL FL 80,555   2003 18,625 18,329
Bay Medical Center - Panama City, FL 801 East 6th Street, Panama City, FL FL 66,043   1987 18,122 17,800
               
MOB Single Tenant Subtotal/Average     2,514,691   2003 653,722 610,312
               
MOB: MULTI TENANT              
Carson Tahoe - Specialty Medical Center - Carson City, NV 775 Fleischmann Way, Carson City, NV NV 154,622   1981 29,163 23,332
Spring Creek Medical Plaza - Tomball, TX 24727 Tomball Parkway, Tomball, TX TX 22,345   2006 7,755 6,529
Carson Tahoe MOB West - Carson City, NV 1470 Medical Parkway, Carson City, NV NV 38,426   2007 8,500 7,030
Sunnyvale Medical Plaza - Sunnyvale, TX 241 Wheatfield Drive, Sunnyvale, TX TX 48,910   2009 12,602 10,773
Texas Clinic at Arlington - Arlington, TX 400 W. Arbrook Boulevard, Arlington, TX TX 66,824   2010 21,838 19,009
Pinnacle Health - Harrisburg, PA 2808 Old Post Road, Harrisburg, PA PA 52,600   2002 13,048 11,202
Rush Copley POB I - Aurora, IL 2020 Ogden Avenue, Aurora, IL IL 79,344   1996 26,280 23,678
Rush Copley POB II - Aurora, IL 2040 Ogden Avenue, Aurora, IL IL 80,744   2009 26,168 23,417
Albany Medical Center MOB - Albany, NY 12 & 16 New Scotland Avenue, Albany, NY NY 53,229   2010 15,000 13,991
Crystal Lakes Medical Arts - Crystal Lake, IL 360 Station Drive, Crystal Lake, IL IL 65,052   2007 19,000 17,663
Advocate Good Shepard - Crystal Lake, IL 525 East Congress Parkway, Crystal Lake, IL IL 68,318   2008 9,153 7,995
Dakota Ridge - Littleton, CO 13402 West Coal Mine Avenue, Littleton, CO CO 62,202   2007 8,400 7,271
St. Francis Cancer Center - Midlothian, VA 14051 St. Francis Boulevard, Richmond, VA VA 51,183   2006 19,335 17,611
Fayette MOB - Fayetteville, GA 1279 Highway 54 West, Fayetteville, GA GA 62,016   2004 17,470 16,320
Lutheran Medical Arts - Ft. Wayne, IN 7920 W Jefferson Blvd, Fort Wayne, IN IN 45,858   2000 12,276 11,588
Dupont Road MOB - Ft. Wayne, IN 2512 East Dupont Road, Fort Wayne, IN IN 60,325   2001 9,691 9,179

 

PAGE 20 OF 24

 

Property List as of June 30, 2014, continued            
Amounts in thousands, except square feet and unit/beds
      Building Size No. Units / Year Built / Gross Asset Net Book
Property Name and Location Address State (Sq. Ft.) Beds¹ Renovated Value Value
MOB: MULTI TENANT, continued              
Aventura Medical Plaza - Aventura, FL 21150 Biscayne Blvd, Aventura, FL FL 48,353   1996 15,963 14,714
Athens Medical Complex - Athens, GA 2142 West Broad Street, Athens, GA GA 55,752   2011 19,503 18,580
Spartanburg Regional MOB - Spartanburg, SC 100 East Wood Street, Spartanburg, SC SC 64,800   1986 20,119 19,105
Capital Regional MOB I - Tallahassee, FL 2626 Care Drive, Tallahassee, FL FL 38,225   1998 9,046 8,248
Riverdale MOB - Riverdale, GA 34 Upper Riverdale Road, Riverdale, GA GA 39,301   2005 10,410 10,069
Durango Medical Plaza - Las Vegas, NV 8530 W Sunset Road, Las Vegas, NV NV 73,094   2008 23,486 18,657
Northside East Cobb - Marietta, GA 1121 & 1163 Johnson Ferry Rd, Marietta, GA GA 68,447   1991 19,475 17,531
Legacy Heart Center- Plano, TX 6601 Preston Road, Plano, TX TX 42,894   2005 11,592 11,451
               
MOB Multi Tenant Subtotal/Average     1,442,864   2003 385,272 344,942
               
MOB Subtotal/Average     3,957,555   2003 1,038,994 955,254
               
TRIPLE-NET: SENIORS HOUSING              
Lakeview Terrace - Lake Havasu, AZ 320 Lake Havasu Avenue North, Lake Havasu City, AZ AZ 25,971 48 2009 8,410 7,891
Wellington ALF - Minot, ND 601 24th Ave SW, Minot, ND ND 83,710 67 2005 11,650 11,383
Villas of Holly Brook - Herrin, IL 505 Rushing Drive, Herrin, IL IL 46,139 50 2012 6,672 6,530
Villas of Holly Brook, Shelbyville, IL 2201 West Main Street, Shelbyville, IL IL 39,735 45 2011 5,955 5,834
Villas of Holly Brook - Marshall, IL 17050 N. Quality Lime Road, Marshall, IL IL 29,269 46 2012 6,071 5,951
Villas of Holly Brook - Effingham, IL 404 W Evergreen Ave, Effingham, IL IL 46,130 46 2011 6,327 6,195
Lakeside ALF - San Antonio, TX 8627 Lakeside Parkway, San Antonio, TX TX 56,500 68 2013 13,150 12,935
Villas of St. James - Breese, IL 14335 Jamestown Road, Breese, IL IL 53,878 65 2009 6,500 6,392
Villas of Holly Brook - Chatham, IL 825 E Walnut Street, Chatham, IL IL 46,130 50 2012 6,567 6,484
Villas of Holly Brook - Newton, IL 101 South Gregory St, Newton, IL IL 34,985 41 2011 5,343 5,277
Rose Garden Nursing and Rehabilitation - Bloomer, WI 1900 Priddy St, Bloomer, WI WI 23,612 26 1997 3,903 3,845
Parkside Nursing and Rehabilitation - Black River Falls, WI 109 North 14th St, Black River Falls, WI WI 14,900 32 1970 3,471 3,396
Countryside Four Seasons - Sioux City, IA 3009 Lilac Lane, Sioux Ciy, IA IA 43,553 61 1986 3,648 3,563
               
Triple-Net Seniors Housing Subtotal/Average     544,512 645 2004 87,665 85,676
               
TRIPLE-NET: SKILLED NURSING              
CareMeridian Rehab - Phoenix, AZ 5301 E Thomas Road, Phoenix, AZ AZ 13,500 31 2008 9,016 7,678
Village Healthcare Center - Santa Ana, CA 18792 East 17th Street, Santa Ana, CA CA 7,750 9 2008 4,482 4,045
CareMeridian - La Mesa, CA 5640 Aztec Drive, La Mesa, CA CA 9,000 15 2012 6,000 5,567
TriSun Care Center - San Antonio, TX 8707 Lakeside Parkway, San Antonio, TX TX 42,853 120 2012 12,250 11,863
Cherry Hills Nursing and Rehabilitation - Kansas City, MO 724 Northeast 79th Terrace, Kansas City, MO MO 32,238 150 1983 15,623 15,527
Worthington Nursing and Rehabilitation - Parkersburg, WV 2675 36th Street, Parkersburg, WV WV 33,100 105 1999 21,138 20,936

 

PAGE 21 OF 24

 

Property List as of June 30, 2014, continued            
Amounts in thousands, except square feet and units/beds
        Building Size No. Units / Year Built / Gross Asset Net Book
Property Name and Location   Address State (Sq. Ft.) Beds¹ Renovated Value Value
Sharpe Care Nursing and Rehabiliation - Oconto Falls, WI 100 E. Highland Dr, Oconto Falls, WI WI 43,847 99 1988 10,658 10,530
Hetzel Care Nursing and Rehabilitation - Bloomer, WI 1840 Priddy Street, Bloomer, WI WI 25,000 31 1983 1,858 1,824
Garden Valley Nursing and Rehab - Kansas City, MO 8575 N. Granby Ave, Kansas City, MO MO 39,239 156 1983 20,568 20,363
Family Heritage Nursing and Rehabiliation - Black River Falls, WI 1311 Tyler St., Black River Falls, WI WI 23,800 50 1966 4,818 4,748
Nicholas County Nursing and Rehabiliation - Richwood, WV 18 Fourth Street, Richwood, WV WV 32,532 97 1980 10,028 9,776
Countryside Nursing and Rehabilitation - Sioux City, IA 6120 Morningside Ave, Sioux City, IA IA 68,457 130 1965 8,288 8,130
Trinity Health and Rehabilitation Center - Woonsocket, RI 4 Saint Joseph Street, Woonsocket, RI RI 70,700 185 1984 17,600 17,521
Herbert Nursing Home - Smithfield, RI 180 Log Road, Smithfield, RI RI 66,174 133 1990 8,400 8,366
               
Triple-Net Skilled Nursing Subtotal/Average     508,190 1,311 1990 150,726 146,873
                 
TRIPLE-NET: HOSPITAL                
Reliant Rehabilitation - Dallas, TX   7930 Northaven, Dallas, TX TX 64,600 60 2009 33,798 29,260
Select Rehabilitation - San Antonio, TX   19126 Stonehue, San Antonio, TX TX 40,828 60 2010 16,526 14,216
Reliant Rehabilitation - Houston, TX   20180 Chasewood Park Drive, Houston, TX TX 65,000 60 2012 31,593 28,058
Baylor Institute for Rehabilition - Ft. Worth, TX 6601 Harris Parkway, Fort Worth, TX TX 40,000 40 2008 16,000 14,381
Sun City LTAC - Sun City, AZ   13818 North Thunderbird Blvd, Sun City, AZ AZ 48,000 100 2012 20,000 19,172
Mesa LTAC - Mesa, AZ   215 South Power Road, Mesa, AZ AZ 48,000 100 2012 20,000 19,172
Baylor Orthopedic & Spine - Arlington, TX 707 W. Highlander Boulevard, Arlington, TX TX 57,243 24 2009 28,000 26,885
                 
Triple-Net Hospital Subtotal/Average       363,671 444 2010 165,916 151,144
                 
Triple-Net Subtotal/Average       1,416,373 2,400 2000 404,307 383,693
                 
LAND                
Arbor Terrace - Decatur, GA (Land)   1899 Lawrenceville Highway, Decatur, GA GA N/A N/A N/A 1,788 1,788
Lexington Park - Lady Lake, FL (Land)   930 Highway 466, Lady Lake, FL FL N/A N/A N/A 1,231 1,231
                 
Land Subtotal/Average             3,020 3,020
CONSTRUCTION IN PROGRESS                
Aurora Healthcare-Kenosha, WI   7145 120th Ave, Kenosha, WI WI 54,820   2014 21,009 21,009
               
Construction in Progress Subtotal/Average     54,820   2014 21,009 21,009

 

PAGE 22 OF 24

 

Property List as of June 30, 2014, continued            
Amounts in thousands, except square feet and units/beds              
      Building Size No. Units / Year Built / Gross Asset Net Book
Property Name and Location Address State (Sq. Ft.) Beds¹ Renovated Value Value
OPERATING PROPERTIES: SENIORS HOUSING              
Benton Village - Palm Coast, FL 100 Magnolia Trace Way, Palm Coast, FL FL 104,525 80 2007 17,370 15,612
Benton House - Douglasville, GA 4999 Prestley Mill Rd., Douglasville, GA GA 40,636 59 2010 14,650 13,546
Benton Village - Stockbridge, GA 195 & 201 Evergreen Terrace, Stockbridge, GA GA 86,520 108 2008 17,102 15,233
Benton House - Sugar Hill, GA 6009 Suwanee Dam Rd., Sugar Hill, GA GA 38,571 59 2010 16,150 14,726
Benton House - Newnan, GA 25 Newnan Lakes Blvd, Newnan, GA GA 47,550 64 2010 20,550 18,564
Pelican Pointe - Klamath Falls, OR 605 Washington Way, Klamath, OR OR 61,045 112 2011 20,957 18,774
Princeton Village - Clackamas, OR 14370 SE Oregon Trail Drive, Clackamas, OR OR 39,450 53 1999 7,173 6,365
Cedar Village - Salem, OR 4452 Lancaster Drive NE, Salem, OR OR 51,585 75 1999 11,587 10,437
Ocean Ridge - Coos Bay, OR 1855 SE Ocean Boulevard, Coos Bay, OR OR 68,139 81 2006 13,606 12,251
Pheasant Pointe - Molalla, OR 835 E. Main Street, Molalla, OR OR 39,428 57 1998 7,939 7,033
Wyndcrest - Rochester, IL 4817 Oak Hill Road, Rochester, IL IL 35,059 37 2005 5,248 4,756
Garden House - Anderson, SC 201 Edgebrook Drive, Anderson, SC SC 50,144 64 2000 13,550 12,403
Arbor Terrace - Largo, FL (Tampa) 333 16th Ave SE, Largo, FL FL 57,844 66 1992 9,349 7,750
Arbor Terrace - Athens, GA 170 Marilyn Farmer Way, Athens, GA GA 38,380 56 1998 19,021 16,915
Barrington Terrace - Naples, FL 5175 Tamiami Trail East, Naples, FL FL 58,169 122 2004 24,335 21,442
Arbor Terrace at Cascade - Atlanta, GA 1001 Research Center Atlanta Dr, Atlanta, GA GA 40,547 68 1999 10,105 8,579
Barrington Terrace - Fort Myers, FL 9731 Commerce Center Court, Fort Meyers, FL FL 54,307 117 2001 18,139 15,642
Arbor Terrace - Knoxville, TN 9051 Cross Park Drive, Knoxville, TN TN 58,113 84 1997 18,607 16,461
Ocean Crest - Coos Bay, OR 192 Norman Avenue, Coos Bay, OR OR 46,696 61 2006 4,207 3,615
Redwood Heights - Salem, OR 4050 12th Street Cut-Off SE, Salem, OR OR 63,879 80 1999 12,009 10,907
Clearwater Springs - Vancouver, WA 201 NW 78th Street, Vancouver, WA WA 62,797 81 2003 11,320 10,313
Benton House - Covington, GA 7155 Dearing Road, Covington, GA GA 44,674 59 2009 14,000 12,830
Arbor Terrace - Asheville, NC 3199 Sweeten Creek Road, Asheville, NC NC 42,000 63 1998 18,725 17,052
Arbor Terrace - Decatur, GA 425 Winn Way, Decatur, GA GA 51,159 66 1990 23,611 21,537
Gardens at Westlake - Westlake, OH 27569 Detroit Road, Westlake, OH OH 102,000 97 1987 22,569 21,157
Solana at Cinco Ranch - Katy, TX 24001 Cinco Village Center Blvd., Katy, TX TX 250,000 184 2010 71,265 68,693
Summerhill Villa - Santa Clarita, CA 24431 Lyons Ave, Santa Clarita, CA CA 90,791 134 2001 52,265 50,625
Casa de Sante Fe - Rocklin, CA 3201 Santa Fe Way, Rocklin, CA CA 141,200 159 2001 52,317 51,022
Lexington Park - Lady Lake, FL 930 Highway 466, Lady Lake, FL FL 74,112 89 2010 25,400 24,701
Bay Pointe - Bremerton, WA 966 Oyster Bay Court, Bermerton, WA WA 75,225 93 1999 21,900 21,900
Edmunds Landing - Edmund, WA 180 Second Ave., Edmonds, WA WA 69,748 83 2001 29,350 29,350
Silverado Senior Living of Everett - Everett, WA 524 75th Street SE, Everett, WA WA 34,018 42 1998 8,650 8,650
Silverado Senior Living of Bellingham - Bellingham, WA 848 West Orchard Drive, Bellingham, WA WA 30,099 63 1999 20,500 20,500
               
Seniors Housing Operating Properties/Average     2,148,410 2,716 2002 653,530 609,341
               
Grand Total/Average     7,577,158 5,116 2002 2,120,860 1,972,317

 

1. Units reported for Senior Housing assets (IL and AL); beds reported for Skilled Nursing facilities, Post-Acute and Hospital assets

PAGE 23 OF 24
 

 

 

 

 

 

 

 

 

 

www.ARCHealthcareTrust.com

 

 

 


The following information was filed by American Realty Capital Healthcare Trust Inc on Tuesday, August 12, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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