Exhibit 99.1

 

 

 
 

 

 

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 September 30,   Year to Date September 30, 
Financial and Operating Information  2014   2013   2014   2013 
Total revenues  $73,609   $34,148   $194,367   $76,763 
Net operating income (NOI)  $42,294   $20,208    113,335    50,187 
Adjusted EBITDA  $36,408   $18,778    100,399    47,259 
                     
Dividends paid per common share  $0.17   $0.17   $0.51   $0.51 
                     
Funds from operations (FFO)  $19,754   $11,543    (24,853)   28,873 
FFO per diluted share  $0.12   $0.06    (0.14)   0.20 
                     
Normalized funds from operations (NFFO)  $28,270   $14,650    80,607    36,731 
NFFO per diluted share  $0.17   $0.08    0.46    0.26 
                     
Adjusted funds from operations (AFFO)  $27,555   $14,547    78,219    35,645 
AFFO per diluted share  $0.16   $0.08    0.44    0.25 
                     
Interest expense  $7,942   $4,350    20,593    10,754 
                     
Adjusted interest coverage ratio   5.5x   5.7x   6.0x   5.5x
Adjusted fixed charge coverage ratio   5.2x   5.5x   5.6x   5.4x
                     
Same store NOI increase/decrease1   N/A    N/A    N/A    N/A 
Medical office   1.8%   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   35.3%   N/A    N/A    N/A 

 

   As of September 30,         
Capitalization Data  2014   2013         
Real estate investments, net  $2,055,108    1,362,892          
Total assets, gross  $2,148,337   $1,735,633           
                     
Total debt  $923,231   $239,067           
Non-controlling interests  $11,757   $3,817           
Total shareholders’ equity  $1,110,084   $1,456,909           
                     
Common shares and units outstanding3   170,760    179,229           
Share price, end of period  $10.48   $10.00           
                     
Total market capitalization  $1,789,566   $1,792,291           
Total enterprise value4  $2,679,345   $1,722,447           
                     
Debt to total assets, gross   43.0%   13.8%          
Debt to total market capitalization   51.6%   13.3%          
Debt to total enterprise value   34.5%   13.9%          
Secured debt to total assets, gross   14.1%   13.8%          

 

1.At September 30, 2014, over 50% of the 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 ten stabilized properties in this business 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.
4.Total enterprise value reflects total market capitalization plus debt, less cash and cash equivalents, at September 30, 2014.

 

PAGE 3 OF 24
 

 

 

Consolidated Balance Sheets                    
Amounts in thousands                    
   Q3 2014   Q2 2014   Q1 2014   Q4 2013   Q3 2013 
Assets                         
Real estate investments, at cost                         
Land  $149,964   $143,505   $121,978   $107,719   $112,766 
Buildings, fixtures and improvements   1,826,348    1,729,130    1,556,438    1,363,858    1,147,659 
Construction in progress   19,673    19,262    16,148    11,112    4,819 
Acquired intangible lease assets   240,402    228,963    199,630    181,264    158,804 
Total real estate investments at cost   2,236,387    2,120,860    1,894,194    1,663,953    1,424,048 
Less: accumulated depreciation and amortization   (181,279)   (148,543)   (116,558)   (87,350)   (61,156)
Total real estate investments, net   2,055,108    1,972,317    1,777,636    1,576,603    1,362,892 
                          
Cash and cash equivalents   33,452    28,695    142,928    103,447    308,911 
Other assets   59,777    76,513    70,346    54,523    63,830 
Total assets  $2,148,337   $2,077,525   $1,990,910   $1,734,573   $1,735,633 
                          
Liabilities And Equity                         
Mortgage notes payable  $303,831   $304,207   $298,650   $259,348   $239,067 
Line of credit   119,400    207,500    131,500    -    - 
Unsecured term loan   500,000    300,000    100,000    -    - 
Accounts payable, accrued expenses and other liabilities   103,265    101,174    47,092    39,481    35,840 
Total liabilities   1,026,496    912,881    577,242    298,829    274,907 
                          
Common stock   1,691    1,691    1,821    1,805    1,788 
Additional paid in capital   1,462,165    1,462,108    1,607,456    1,591,941    1,576,011 
Accumulated other comprehensive loss   (219)   (987)   (1,597)   (3,243)   (3,241)
Accumulated deficit   (353,553)   (312,655)   (195,863)   (158,378)   (117,649)
Total shareholders' equity   1,110,084    1,150,157    1,411,817    1,432,125    1,456,909 
Non-controlling interests   11,757    14,487    1,851    3,619    3,817 
Total equity   1,121,841    1,164,644    1,413,668    1,435,744    1,460,726 
Total liabilities and equity  $2,148,337   $2,077,525   $1,990,910   $1,734,573   $1,735,633 

 

PAGE 4 OF 24
 

 

 

Consolidated Statements of Income                    
Amounts in thousands, except per share data and ratios  Q3 2014   Q2 2014   Q1 2014   Q4 2013   Q3 2013 
Revenues:                         
Rental income  $63,311   $55,584   $47,517   $41,597   $29,285 
Operating expense reimbursement   4,557    4,267    4,184    3,626    2,859 
Resident services and fee income   5,741    4,918    4,288    3,367    2,004 
Total revenues   73,609    64,769    55,989    48,590    34,148 
Property operating   31,315    26,238    23,479    20,089    13,940 
Net operating income   42,294    38,531    32,510    28,501    20,208 
Asset management fees to affiliate   2,711    2,352    -    -    - 
Equity based compensation   605    97    10    68    13 
Acquisition and transaction related   10,266    35,372    3,422    5,748    3,107 
Estimated value of listing note   (1,750)   58,150    -    -    - 
General and administrative   2,570    2,673    1,918    1,618    1,416 
Depreciation and amortization   32,606    31,714    28,943    25,907    17,141 
Operating income (loss)   (4,714)   (91,827)   (1,783)   (4,840)   (1,469)
Other income (expenses)                         
Interest expense   (7,942)   (7,108)   (5,543)   (5,089)   (4,350)
Other income (expense), net   (144)   830    300    49    354 
Total other expense   (8,086)   (6,278)   (5,243)   (5,040)   (3,996)
Net income (loss)   (12,800)   (98,105)   (7,026)   (9,880)   (5,465)
Net loss (income) attributable to non-controlling interests   679    817    (9)   (12)   (10)
Net income (loss) attributable to shareholders  $(12,121)  $(97,288)  $(7,035)  $(9,892)  $(5,475)
Basic weighted average shares outstanding   169,090    175,129    181,621    179,930    178,231 
Basic net loss per share attributable to shareholders  $(0.07)  $(0.56)  $(0.04)  $(0.05)  $(0.03)
Funds from operations:                         
Net income (loss) in accordance with GAAP  $(12,800)  $(98,105)  $(7,026)  $(9,880)  $(5,465)
Depreciation and amortization   32,606    31,713    28,943    25,907    17,140 
Adjustments related to joint ventures and non-real estate assets   (52)   (33)   (99)   (133)   (132)
Funds from operations  $19,754   $(66,425)  $21,818   $15,894   $11,543 
Acquisition fees and expenses   10,266    35,372    3,422    5,748    3,107 
Estimated value of listing note   (1,750)   58,150    -    -    - 
Funds from operations, normalized  $28,270   $27,097   $25,240   $21,642   $14,650 
Amortization of above-market lease assets and liabilities   98    95    95    98    160 
Straight-line rent   (3,081)   (2,662)   (1,930)   (1,851)   (1,357)
Proportionate share of adjustments related to non-controlling interests   1    2    22    31    35 
Accretion of discount/amortization of premiums   (389)   (384)   (264)   (233)   (226)
Deferred financing costs   1,637    1,629    1,561    1,520    1,209 
Non-cash equity compensation   605    97    10    68    13 
Loss on sale of investments   464    (335)   -    300    - 
OPP   183    516    -    -    - 
Distributions on Class B units   -    12    139    103    63 
Capital expenditures   (233)   (276)   -    -    - 
Adjusted funds from operations (AFFO)  $27,555   $25,791   $24,873   $21,678   $14,547 
Diluted weighted average shares outstanding   170,760    176,766    182,478    180,546    178,621 
Distributions paid in cash  $28,745   $24,303   $13,818   $13,865   $13,960 
Distributions reinvested   -    5,721    16,533    16,537    16,519 
Distributions on unvested shares   31    2    3    6    3 
Distributions on Class B units   -    12    139    103    63 
Distributions on OP Units   247    166    -    -    - 
Total distributions paid  $29,023   $30,204   $30,493   $30,511   $30,545 
FFO per diluted share  $0.12   $(0.38)  $0.12   $0.09   $0.06 
FFO payout ratio   147%   (45)%   140%   192%   265%
Normalized FFO per diluted share   0.17    0.15    0.14    0.12    0.08 
Normalized FFO payout ratio   103%   111%   121%   141%   208%
AFFO per diluted share  $0.16   $0.15   $0.14   $0.12   $0.08 
AFFO payout ratio   105%   117%   123%   141%   210%

 

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   79    -    4,006,227    24   $1,052,007    47%  $101,032    34%  $80,914    47%
Triple-net leased   36    2,457    1,493,057    10    430,382    19%   42,756    14%   42,248    25%
Seniors housing - operating   35    2,965    2,426,068    13    728,809    33%   152,880    52%   48,440    28%
Land   3    -    -    3    3,769    0%   -    0%   (52)   0%
Total   153    5,422    7,925,352    31   $2,214,967    100%  $296,668    100%  $171,550    100%
                                                   
By Investment Type                                                  
Medical office   79    -    4,006,227    24   $1,052,007    47%  $101,032    34%  $80,914    47%
Seniors housing   49    3,675    3,023,964    17    830,384    37%   162,305    55%   57,833    34%
Post acute / skilled nursing   14    1,311    508,190    8    150,726    7%   16,843    6%   16,579    10%
Hospital   8    436    386,971    2    178,081    8%   16,488    6%   16,277    9%
Land   3    -    -    3    3,769    0%   -    0%   (52)   0%
Total   153    5,422    7,925,352    31   $2,214,967    100%  $296,668    100%  $171,550    100%

 

1.Annualized revenue and NOI represent Trailing Twelve Month (TTM) figures through the period ended September 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

 

   Q3 2014   Q2 2014   Q1 2014   Q4 2013   Q3 2013 
Revenues                         
By Business Segment                         
Medical office  $25,137   $24,946   $23,993   $22,791   $15,735 
Triple-net leased   10,567    8,812    4,793    4,436    3,197 
Seniors housing - operating   37,905    31,011    27,203    21,364    15,216 
Land   -    -    -    -    - 
Total  $73,609   $64,769   $55,989   $48,590   $34,148 
                          
By Investment Type                         
Medical office  $25,137   $24,946   $23,993   $22,791   $15,735 
Seniors housing   40,152    33,021    28,121    21,609    15,417 
Post acute / skilled nursing   4,238    3,812    806    649    494 
Hospital   4,082    2,990    3,069    3,541    2,503 
Land   -    -    -    -    - 
Total  $73,609   $64,769   $55,989   $48,590   $34,148 
                          
Net Operating Income                         
By Business Segment                         
Medical office  $20,044   $20,030   $19,221   $18,554   $12,422 
Triple-net leased   10,345    8,648    4,569    4,050    3,038 
Seniors housing - operating   11,909    9,868    8,733    5,914    4,748 
Land   (4)   (15)   (13)   (18)   - 
Total  $42,294   $38,531   $32,510   $28,501   $20,208 
                          
By Investment Type                         
Medical office  $20,044   $20,030   $19,221   $18,554   $12,422 
Seniors housing   14,153    11,864    9,649    6,160    4,948 
Post acute / skilled nursing   4,155    3,754    763    589    460 
Hospital   3,946    2,898    2,889    3,215    2,378 
Land   (4)   (15)   (13)   (18)   - 
Total  $42,294   $38,531   $32,510   $28,501   $20,208 

 

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 of   Annualized   % of   of   Annualized   % of   of   Annualized   % of   of   Annualized   % of   of   Annualized   % of   of   Annualized   % of 
Top 20 States  Properties   NOI2   Total   Properties   NOI2   Total   Properties   NOI2   Total   Properties   NOI2   Total   Properties   NOI2   Total   Properties   NOI2   Total 
1. Texas   18   $26,868    16%   9   $7,221    9%   1   $1,113    12%   1   $1,216    7%   6   $12,785    79%   1   $4,535    9%
2. Georgia   17    14,505    8%   8    5,447    7%   0     -    0%   0     -    0%   0     -    0%   8    9,106    19%
3. Illinois   15    14,007    8%   7    9,715    12%   7    3,884    41%   0     -    0%   0     -    0%   1    409    1%
4. California   7    12,759    7%   3    4,927    6%   0     -    0%   2    971    6%   0     -    0%   2    6,861    14%
5. Wisconsin   11    11,015    6%   6    8,273    10%   2    757    8%   3    1,984    12%   0     -    0%   0      -    0%
6. Florida   11    10,667    6%   5    5,124    6%   0     -    0%   0     -    0%   0     -    0%   5    5,546    11%
7. Arizona   7    8,937    5%   2    1,497    2%   1    803    9%   1    845    5%   2    3,492    21%   1    2,301    5%
8. Indiana   6    8,459    5%   6    8,459    10%   0     -    0%   0     -    0%   0     -    0%   0      -    0%
9. Oregon   7    6,600    4%   0     -    0%   0     -    0%   0     -    0%   0     -    0%   7    6,600    14%
10. Missouri   5    6,407    4%   1    867    1%   1    1,393    15%   2    4,146    25%   0     -    0%   0      -    0%
11. Washington   5    6,012    4%   0     -    0%   0     -    0%   0     -    0%   0     -    0%   5    6,012    12%
12. Pennsylvania   4    5,931    3%   4    5,931    7%   0     -    0%   0     -    0%   0     -    0%   0      -    0%
13. Nevada   5    4,938    3%   5    4,938    6%   0     -    0%   0     -    0%   0     -    0%   0      -    0%
14. Michigan   4    4,454    3%   4    4,454    6%   0     -    0%   0     -    0%   0      -    0%   0      -    0%
15. South Carolina   3    3,703    2%   2    2,628    3%   0     -    0%   0     -    0%   0      -    0%   1    1,075    2%
16. West Virginia   2    3,568    2%   0     -    0%   0     -    0%   2    3,568    22%   0      -    0%   0      -    0%
17. Rhode Island   2    2,920    2%   0     -    0%   0     -    0%   2    2,920    18%   0      -    0%   0      -    0%
18. New York   3    2,775    2%   3    2,775    3%   0     -    0%   0     -    0%   0      -    0%   0      -    0%
19. Virginia   2    2,618    2%   2    2,618    3%   0     -    0%   0     -    0%   0      -    0%   0      -    0%
20. New Mexico   1    2,276    1%   0     -    0%   0         0%   0         0%   0      -    0%   1    2,276    5%
States 1 to 20   135   $159,417    93%   67   $74,873    93%   12   $7,950    85%   13   $15,650    94%   8   $16,277    100%   32   $44,719    92%
Subtotal                                                                                          
                                                                                           
All other states   18   $12,133    7%   12   $6,041    7%   2   $1,443    15%   1   $928    6%   0   $-    0%   3   $3,721    8%
                                                                                           
Total   153   $171,550    100%   79   $80,914    100%   14   $9,392    100%   14   $16,579    100%   8   $16,277    100%   35   $48,440    100%

 

1.Totals include three holdings in land properties.
2.Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended September 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   $7,821    13.5%   4.1%   9.9%  $54,628    8.0%
Houston, TX   1    4,535    7.8%   6.1%   9.2%   55,910    5.4%
Los Angeles, CA   1    3,536    6.1%   2.2%   11.7%   57,271    7.7%
Sacramento, CA   1    3,325    5.7%   2.8%   13.0%   56,813    7.0%
Seattle, WA   2    2,643    4.6%   4.7%   11.6%   65,677    5.3%
Phoenix-Mesa-Scottsdale, AZ   1    2,301    4.0%   4.5%   13.2%   51,359    6.3%
Albuquerque, NM   1    2,276    3.9%   1.5%   13.3%   46,725    7.3%
St. Louis, MO1   2    1,985    3.4%   0.4%   14.1%   52,243    6.6%
Portland, OR   3    1,944    3.4%   3.7%   12.3%   56,978    6.6%
Salem, OR1   2    1,935    3.3%   2.3%   14.9%   49,161    7.4%
                                    
Top Ten Markets   21   $32,301    55.9%   3.6%   11.6%  $55,104    6.9%
                                    
Remaining Markets   28   $25,532    44.1%   2.0%   14.9%  $49,720    6.2%
                                    
                                    
Total   49   $57,833    100.0%   2.9%   13.1%  $52,727    6.6%
                                    
              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 Trailing Twelve Month (TTM) figures through the period ended September 30, 2014 for properties owned for the entire TTM period, and annualized figures for properties acquired during such period.
3.United States Census Bureau: Annual Estimates 2010 - 2013.
4.United States Census Bureau: 2012 American Community Survey.
5.Bureau of Labor Statistics: 2014 Unemployment Rates for Metropolitan Areas, August 2014.

 

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             
MOB Classification  Property Count   Square Feet   Asset Value   Revenue1   Annualized NOI1   Average Age (years)   Occupancy 
Affiliated   61    2,988,355   $820,821   $79,844   $62,491    11.7    96.7%
Non-Affiliated   18    1,017,872    231,186    21,188    18,423    13.2    97.6%
Total   79    4,006,227   $1,052,007   $101,032   $80,914    12.0    96.9%
                                    
On campus   26    1,356,321   $364,958   $34,899   $26,637    12.0    97.4%
Off campus   53    2,649,906    687,050    66,134    54,277    12.0    96.6%
Total   79    4,006,227   $1,052,007   $101,032   $80,914    12.0    96.9%
                                    
Single Tenant   49    2,514,691   $653,784   $55,758   $50,713    11.2    100.0%
Multi-Tenant   30    1,491,536    398,224    45,274    30,201    13.4    91.7%
Total   79    4,006,227   $1,052,007   $101,032   $80,914    12.0    96.9%
                                    
Property Summary   Q3 2014    Q2 2014    Q1 2014    Q4 2013    Q3 2013           
Properties   79    78    77    75    71           
Average Age (years)   12.0    12.0    12.1    11.9    11.8           
Square feet   4,006,227    3,957,555    3,914,661    3,768,063    3,560,439           
Gross Asset Value  $1,052,007   $1,038,994   $1,026,470   $989,291   $943,603           
Occupancy   96.9%   96.8%   96.7%   96.5%   95.5%          
                                    
Revenues (annualized)1  $101,032   $99,403   $97,259   $92,915   $87,473           
NOI (annualized)1  $80,914   $79,946   $78,901   $75,826   $72,467           
Total Cap-Ex/TI/Leasing  $254   $933   $432   $358   $140           
Revenues per square foot  $26.02   $25.96   $25.70   $25.55   $25.71           
NOI per square foot  $20.84   $20.88   $20.85   $20.85   $21.30           
                                    
Newly Leased square feet   11,108    2,499    -    5,164    11,533           
Retained square feet   3,178    2,821    5,345    3,923    -           
Expired square feet   12,851    2,821    8,703    7,869    -           
Retention rate   24.7%   100.0%   61.4%   49.9%   0.0%          

 

1.Annualized revenue and NOI represent Trailing Twelve Month (TTM) figures through the period ended September 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   5,836    47,023    143,056    158,301    352,595    162,035    3,013,392 
$/SF  $35.24   $24.17   $22.01   $23.02   $21.27   $24.49   $21.53 
% of MOB portfolio   0.2%   1.2%   3.7%   4.1%   9.1%   4.1%   77.6%

 

Diversification by Tenant1  Annualized NOI2   % of Total   Square Feet   % of Total   Credit Rating
UnitedHealth Group Incorporated  $9,724    12.0%   610,670    15.7%  Moody's: A1
Aurora Health Care   5,026    6.2%   226,046    5.8%  Moody's: A3
Crozer-Keystone Health System   4,567    5.6%   259,716    6.7%  Moody's: Baa3
Rush Copley Medical Center   4,164    5.1%   160,088    4.1%  Moody's: A2
Ascension Health   3,267    4.0%   179,138    4.6%  Moody's: Aa2
Carson Tahoe Regional Healthcare   3,211    4.0%   193,048    5.0%  S&P: BBB+
Spartanburg Regional Healthcare System   2,628    3.2%   90,948    2.3%  Moody's: A1
Bronson Healthcare Group   2,371    2.9%   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  $39,055    48.3%   1,956,277    50.4%   
                        
Remaining Tenants   41,859    51.7%   1,925,961    49.6%   
Total  $80,914    100.0%   3,882,238    100.0%   

 

1.Includes multi-tenant buildings for which the tenant is the anchor tenant in the building.
2.Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended September 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

 

           Gross   Annualized     
Diversification by Operator  Property Count   Units   Asset Value   NOI1   % of Total 
Meridian Senior Living   9    475   $68,993   $6,323    67%
PM Management   1    68    13,150    1,113    12%
Platinum Healthcare, LLC   3    119    11,021    1,155    12%
Frontier Management   1    48    8,410    803    9%
Total   14    710   $101,575   $9,392    100%

 

Hospital

 

           Gross   Annualized     
Leased Properties  Property Count   Beds   Asset Value   NOI1   % of Total 
Reliant Rehabilitation   2    120   $65,391   $6,519    40%
Baylor Scott & White Medical System   2    64    44,000    3,720    23%
Global Rehabilitation   1    42    16,526    1,497    9%
Victory Healthcare   1    10    12,165    1,048    6%
Acuity, LLC2   2    200    40,000    3,492    21%
Total   8    436   $178,081   $16,277    100%

 

Post acute / skilled nursing

 

           Gross   Annualized     
Diversification by Operator  Property Count   Beds   Asset Value   NOI1   % of Total 
Platinum Healthcare, LLC   8    818   $92,979   $10,627    64%
American Senior Living Communities   2    318   $26,000   $2,920    18%
National Mentor Holdings, Inc.   3    55   $19,497   $1,816    11%
PM Management   1    120   $12,250   $1,216    7%
Total   14    1,311   $150,726   $16,579    100%

 

1.Annualized NOI represents Trailing Twelve Month (TTM) figures through the period ended September 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 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 leased4  Q3 2014   Q2 2014   Q1 2014   Q4 2013   Q3 2013 
Property count   14    13    10    2    1 
Number of units   710    645    526    115    48 
Square Feet   597,896    544,512    462,447    109,681    25,971 
Occupancy1   81%   88%   91%   87%   85%
Average remaining lease term   14.3    14.5    14.6    14.8    14.5 
Gross Asset Value  $101,575   $87,665   $76,643   $20,060   $8,410 
Private Pay   92%   91%   N/A    N/A    N/A 
EBITDARM CFC2   1.16x   1.20x   N/A    N/A    N/A 
                          
Hospital   Q3 2014    Q2 2014    Q1 2014    Q4 2013    Q3 2013 
Property count   8    7    7    7    6 
Number of beds   436    426    426    426    402 
Square Feet   386,971    363,671    363,671    363,671    306,428 
Occupancy1   63%   60%   55%   53%   48%
Average remaining lease term   15.0    16.5    16.8    17.0    17.4 
Gross Asset Value  $178,081   $165,916   $165,916   $165,916   $137,916 
Revenue Quality Mix 3   91%   100%   N/A    N/A    N/A 
EBITDARM CFC2   5.23x   4.77x   5.51x   5.87x   N/A 
                          
Post acute / skilled nursing5   Q3 2014    Q2 2014    Q1 2014    Q4 2013    Q3 2013 
Property count   14    14    4    4    3 
Number of beds   1,311    1,311    175    175    55 
Square Feet   508,190    508,190    73,103    73,103    30,250 
Occupancy1   82%   82%   65%   66%   57%
Average remaining lease term   14.8    15.1    12.6    12.8    11.9 
Gross Asset Value  $150,726   $150,726   $31,747   $31,747   $19,497 
Revenue Quality Mix3   53%   45%   N/A    N/A    N/A 
EBITDARM CFC2   1.45x   2.30x   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. Facility based reporting reflects EBITDARM coverage one quarter in arrears for trailing periods in a range of 3 to 12 months, depending on the date of acquisition.
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.

4.2Q 2014 cashflow coverage does not include the impact of three properties purchased during the quarter. Coverage data is included in 3Q 2014 for these assets.
5.2Q 2014 cashflow coverage does not include the impact of ten properties purchased during the quarter. Coverage data is included in 3Q 2014 for eight of these assets.

 

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   8    760    592,675   $203,656   $12,633    26%
Frontier Management   10    776    577,992    140,115    10,642    22%
Principal Senior Living Group, LLC   6    413    308,095    96,002    6,542    14%
Senior Lifestyle Corporation   2    249    277,658    75,350    4,577    9%
MBK Senior Living   2    293    231,991    104,606    6,861    14%
Other   7    474    437,657    109,080    7,184    15%
Total   35    2,965    2,426,068   $728,809   $48,440    100%
                               
Property Summary   Q3 2014    Q2 2014    Q1 2014    Q4 2013    Q3 2013      
Property count   35    33    29    26    22      
Number of units   2,965    2,716    2,435    2,039    1,686      
Square feet   2,426,068    2,148,410    1,939,320    1,633,217    1,188,058      
Occupancy   93%   92%   93%   92%   92%     
Average age (years)   12.1    12.0    11.7    11.8    10.8      
Gross Asset Value  $728,809   $653,530   $572,502   $442,291   $306,267      
                               
Revenues (annualized)1  $152,880   $138,845   $119,980   $95,122   $72,962      
NOI (annualized)1  $48,440   $44,514   $40,490   $32,892   $21,947      
Operating margin2   32%   32%   34%   35%   30%     
REVPOR3  $4,680   $4,615   $4,416   $4,247   $3,922      
Capital Expenditures  $198   $621   $312   $65   $40      

 

1.Annualized revenue and NOI represent Trailing Twelve Month (TTM) figures through the period ended September 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 September 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 
   Sept 30, 2014                 
Fixed Rate Debt                         
Secured debt  $303,831    40.6    5.2%   32.9%   14.1%
Total fixed rate debt  $303,831    40.6    5.2%   32.9%   14.1%
Variable Rate Debt                         
Unsecured term loan  $500,000    45.8    1.8%   54.2%   23.3%
Unsecured lline of credit   119,400    21.8    1.8%   12.9%   5.6%
Total variable rate debt  $619,400    41.2    1.8%   67.1%   28.8%
Total Debt  $923,231    41.0    2.9%   100.0%   43.0%
Ratio of debt to market capitalization   51.6%                    

 

   TTM   YTD   QTR 
Interest expense coverage   6.2x   6.0x   5.5x
Fixed charge coverage   5.8x   5.6x   5.2x

 

Selected Debt Covenants & Credit Ratios        
       Qtr. Ended 
   Requirement   9/30/2014 
Aggregate debt test (debt to gross assets as defined)   55.0%   40.7%
Secured debt test (secured debt to gross assets as defined)   35.0%   13.4%
Debt service test (EBITDA available for debt service charge, as defined)   1.6    4.9 
Unencumbered asset test (minimum unencumbered assets in borrowing base)  $200,000   $1,391,640 
Unencumbered NOI (NOI related to borrowing base assets)   N/A   $117,180 

 

Scheduled Principal Payments

 

   Unsecured1   Secured   Total 
2014  $-   $393   $393 
2015   -    13,937    13,937 
2016   119,400    20,936    140,336 
2017   -    200,596    200,596 
2018   500,000    27,778    527,778 
Thereafter   -    40,191    40,191 
Total  $619,400   $303,831   $923,231 

 

Summary of Preferred Shares

 

  Qtr. Ended 9/30/2014 Qtr. Ended 9/30/2013
Total preferred shares outstanding N/A N/A

 

Summary of Common Shares        
Weighted average, quarter   Qtr. Ended9/30/2014    Qtr. Ended 9/30/2013 
Diluted shares - FFO   170,760,144    178,620,686 
Diluted shares - EPS   169,090,342    178,231,121 
Total shares and units outstanding at end of period   170,760,144    179,229,092 
           
Weighted average, YTD   YTD 9/30/2014    YTD 9/30/2014 
Diluted shares - FFO   176,624,983    142,413,520 
Diluted shares - EPS   175,234,437    142,163,876 

 

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

 

   Q3 2014   Q2 2014   Q1 2014   Q4 2013   Q3 2013 
Adjusted EBITDA:                         
Net income/(loss)  $(12,800)  $(98,105)  $(7,026)  $(9,880)  $(5,465)
Acquisition and transaction related   10,266    35,372    3,422    5,748    3,107 
Gains (losses) on derivative instruments   (1,750)   58,150    -    -    - 
Depreciation and amortization   32,606    31,714    28,943    25,908    17,140 
Interest expense   7,942    7,108    5,543    5,089    4,350 
Loss on investments   464    (335)   -    300    - 
Income from preferred investment and other income   (320)   (495)   (300)   (349)   (354)
Non-controlling interests   -    -    -    -    - 
Adjusted EBITDA   36,408    33,409    30,582    26,816    18,778 
                          
Net Operating Income (NOI):                         
Asset management fees to affiliate   2,711    2,352    -    -    - 
Equity based compensation   605    97    10    68    13 
General and administrative   2,570    2,673    1,918    1,618    1,416 
NOI   42,294    38,531    32,510    28,502    20,207 
                          
Cash NOI:                         
Amortization of above-market lease assets and liabilities   98    95    95    98    160 
Straight-line rent, net   (3,080)   (2,662)   (1,930)   (1,851)   (1,357)
Cash NOI  $39,312   $35,964   $30,675   $26,749   $19,010 
                          
Interest coverage ratio:                         
Interest expense  $7,942   $7,108   $5,543   $5,089   $4,350 
Non-cash interest expense   (1,249)   (1,245)   (1,297)   (1,287)   (983)
Adjustments related to non-controlling interest   (13)   (13)   (12)   (77)   (79)
Total Interest  $6,680   $5,850   $4,234   $3,725   $3,288 
Adjusted EBITDA   36,408    33,409    30,582    26,816    18,778 
Adjusted interest coverage ratio   5.5x   5.7x   7.2x   7.2x   5.7x
                          
Fixed charge ratio:                         
Total interest  $6,680   $5,850   $4,234   $3,725   $3,288 
Secured debt principal amortization   376    371    301    253    133 
Total fixed charges  $7,056   $6,221   $4,535   $3,978   $3,421 
Adjusted EBITDA   36,408    33,409    30,582    26,816    18,778 
Adjusted fixed charge ratio   5.2x   5.4x   6.7x   6.7x   5.5x

 

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 NFFO, 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 REITs 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. Terefore, 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 September 30, 2014

Amounts in thousands, except square feet

 

         Building Size   No. Units /   Year Built /   Gross Asset     
Property Name and Location  Address  State  (Sq. Ft.)   Beds¹   Renovated   Value   Net Book Value 
MOB: SINGLE TENANT                               
Methodist North MOB - Peoria IL  2338 Van Winkle Way, Peoria, IL  IL   73,302        2010   $24,625   $21,129 
Odessa Regional MOB - Odessa TX  520 E. 6th Street, Odessa, TX  TX   39,220        2008    7,359    6,047 
Cooper Health MOB I - Willingboro NJ  651 John F. Kennedy Way, Willingboro, NJ  NJ   11,000        2010    3,387    2,832 
Univ of Wisconsin Health - Monona WI  1050 East Broadway, Monona, WI  WI   31,374        2011    9,161    8,006 
Henry Ford Dialysis Center - Southfield MI  25664 Lahser Road, Southfield, MI  MI   10,100        2002    2,878    2,508 
East Pointe Medical Plaza - Lehigh Acres FL  1530 Lee Boulevard, Leigh Acres, FL  FL   34,500        1994    10,516    9,273 
PAPP Clinic - Newnan GA  2959 Sharpsburg McCullum Road, Newnan, GA  GA   31,213        1994    5,488    4,898 
Cooper Health MOB II - Willingboro NJ  218-C Sunset Road, Willingboro, NJ  NJ   16,314        2012    4,620    3,952 
Cancer Care Partners - Mishawaka IN  301 East Day Road, Mishawaka, IN  IN   63,000        2010    26,800    23,820 
Aurora Health Care - Two Rivers WI  5300 Memorial Drive, Two Rivers, WI  WI   99,266         2006    30,212    26,903 
Aurora Health Care - Hartford WI  1640 East Sumner Street, Hartford, WI  WI   88,390         2006    25,522    22,842 
Aurora Health Care - Neenah WI  1136 Westowne Drive, Neenah, WI  WI   38,390         2006    10,485    9,332 
Bronson Lakeview OPC - Paw Paw MI  451 Health Parkway, Paw Paw, MI  MI   100,321         2006    30,430    27,284 
Advocate Beverly Center - Chicago IL  9831 South Western Avenue, Chicago, IL  IL   59,345         1986    16,500    14,944 
Wellmont Blue Ridge MOB - Bristol TN  271 Medical Park Boulevard, Bristol, TN  TN   23,277         2001    4,850    4,422 
Metro Health - Wyoming MI  5950 Metro Way SW, Wyoming, MI  MI   21,502         2008    6,243    5,732 
Michiana Oncology - Mishawaka IN  5340 Holy Cross Parkway, Mishawaka, IN  IN   49,410         2010    21,740    20,043 
North Valley Orthopedic Surgery Center  2262 East Rose Garden Lane, Phoenix, AZ  AZ   17,608         2006    9,000    8,306 
Scott & White Healthcare - Kingsland TX  105 FM 2342, Kingsland, TX  TX   14,974         2012    4,400    4,046 
Salem Medical - Woodstown NJ  66 East Avenue, Woodstown, NJ  NJ   9,350         2010    3,670    3,370 
Rex Wellness Center - Garner NC  1400 Timber Drive East, Garner, NC  NC   30,000         2003    9,040    8,384 
Spectrum Health - Wyoming MI  6105 Wilson Avenue SW, Wyoming, MI  MI   52,898         2006    16,683    15,523 
Memorial Hermann - Houston TX  14201 East Sam Houston Parkway, Houston, TX  TX   30,000         2012    13,331    12,439 
UC Davis Medical - Folsom CA  251 & 271-279 Turnpike Drive, Folsom, CA  CA   36,911         1995    9,488    8,821 
Via Christi Clinic - Wichita KS  13213 W 21st Street, Wichita, KS  KS   32,540         2006    8,000    7,482 
West Valley Medical Center - Buckeye AZ  525 South Watson Boulevard, Buckeye, AZ  AZ   38,734         2011    8,800    8,424 
Crozer-Keystone MOB II - Springfield PA  100 West Sproul Road, Springfield, PA  PA   41,935         1998    12,910    12,361 
Crozer-Keystone MOB I - Springfield PA  190 West Sproul Road, Springfield, PA  PA   217,781         1996    55,520    52,930 
St. Peter's Recovery Center - Guilderland NY  3 Mercycare Lane, Guilderland, NY  NY   30,000         1990    9,110    8,623 
Trinity Health Medical Arts Clinic - Minot ND  400 East Burdick Expressway, Minot, ND  ND   114,000         1995    13,441    12,798 
Allina Health - Elk River MN  14181 Business Center Drive NW, Elk River, MN  MN   28,175         2002    7,700    7,355 
Spartanburg ASC - Spartanburg, SC  720 North Pine Street, Spartanburg, SC  SC   26,148         2002    13,800    13,205 
Texarkana ASC - Texarkana, TX  5404 Summerhill Road, Texarkana, TX  TX   18,268         1994    4,500    3,703 
Davita Dialysis - Marked Tree AR  216 Hester Parker Drive, Marked Tree, AR  AR   4,596         2009    1,444    1,159 

 

PAGE 19 OF 24
 

 

   

 

Property List as of September 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    1,700 
BioLife Sciences Building - Denton TX  3455 Quail Creek Drive, Denton, TX  TX   15,000        2010    5,747    5,053 
Sisters of Mercy Building - Springfield MO  4520 S. National Avenue, Springfield, MO  MO   42,430        2008    11,045    9,650 
DaVita Dialysis - Paoli IN  555 W. Longest St., Paoli, IN  IN   5,725        2011    1,874    1,659 
Unitron Hearing - Plymouth MN  14755 27th Avenue North, Plymouth, MN  MN   81,927         2011    9,390    8,145 
Fresenius Medical - Metairie LA  3030 North Arnoult Street, Metairie, LA  LA   18,149         2012    3,739    3,373 
United Healthcare - Cypress CA  5701 Katella Ave, Cypress, CA  CA   214,000         1985    53,904    50,905 
United Healthcare - Indianapolis IN  7440-7500 Woodland Dr, Indianapolis, IN  IN   209,184         1988    36,972    35,003 
United Healthcare - Onalaska WI  2700 Midwest Drive, Onalaska, WI  WI   66,000         1995    9,195    8,686 
United Healthcare - Wawatosa WI  10701 Research Dr West, Wawatosa, WI  WI   121,486         1995    22,267    21,178 
Virginia Urology Center - Richmond VA  9105 Stony Point Drive, Richmond, VA  VA   53,318         2004    19,200    18,131 
Bay Medical Plaza - Lynn Haven, FL  2851 Martin Luther King, Jr. Boulevard, Lynn Haven, FL  FL   80,555         2003    18,625    18,107 
Bay Medical Center - Panama City, FL  801 East 6th Street, Panama City, FL  FL   66,043         1987    18,122    17,558 
                                
MOB Single Tenant Subtotal/Average         2,514,691         2000   $653,784   $602,046 
                                
MOB: MULTI TENANT                               
Carson Tahoe - Specialty Medical Center  775 Fleischmann Way, Carson City, NV  NV   154,622         1981    29,164    22,803 
Spring Creek Medical Plaza - Tomball TX  24727 Tomball Parkway, Tomball, TX  TX   22,345         2006    7,755    6,410 
Carson Tahoe MOB West - Carson City NV  1470 Medical Parkway, Carson City, NV  NV   38,426         2007    8,641    7,014 
Sunnyvale Medical Plaza - Sunnyvale TX  241 Wheatfield Drive, Sunnyvale, TX  TX   48,910         2009    12,602    10,554 
Texas Clinic at Arlington - Arlington TX  400 W. Arbrook Boulevard, Arlington, TX  TX   66,824         2010    21,838    18,666 
Pinnacle Health - Harrisburg PA  2808 Old Post Road, Harrisburg, PA  PA   52,600         2002    13,048    10,981 
Rush Copley POB I - Aurora IL  2020 Ogden Avenue, Aurora, IL  IL   79,344         1996    26,280    23,279 
Rush Copley POB II - Aurora IL  2040 Ogden Avenue, Aurora, IL  IL   80,744         2009    26,168    23,036 
Albany Medical Center MOB - Albany NY  12 & 16 New Scotland Avenue, Albany, NY  NY   53,229         2010    15,000    13,822 
Crystal Lakes Medical Arts - Crystal Lake IL  360 Station Drive, Crystal Lake, IL  IL   65,052         2007    19,000    17,379 
Advocate Good Shepard - Crystal Lake IL  525 East Congress Parkway, Crystal Lake, IL  IL   68,318         2008    9,166    7,761 
Dakota Ridge - Littleton CO  13402 West Coal Mine Avenue, Littleton, CO  CO   62,202         2007    8,400    7,050 
St. Francis Cancer Center - Midlothian VA  14051 St. Francis Boulevard, Richmond, VA  VA   51,183         2006    19,335    17,242 
Fayette MOB - Fayetteville GA  1279 Highway 54 West, Fayetteville, GA  GA   62,016         2004    17,470    16,010 
Lutheran Medical Arts - Ft. Wayne IN  7920 W Jefferson Blvd, Fort Wayne, IN  IN   45,858         2000    12,276    11,358 
Dupont Road MOB - Ft. Wayne IN  2512 East Dupont Road, Fort Wayne, IN  IN   60,325         2001    9,707    9,024 

 

PAGE 20 OF 24
 

 

 

Property List as of September 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