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.

 

 

 

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			5.5	x			5.7	x			6.0	x			5.5	x
Adjusted fixed charge coverage ratio			5.2	x			5.5	x			5.6	x			5.4	x
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.

 

 

 

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

 

 

 

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	%

 

 

 

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.

 

 

 

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

 

 

 

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.

 

 

 

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.

 

  

 

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.

 

  

 

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.

 

 

 

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.

 

  

 

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			1.16	x			1.20	x			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			5.23	x			4.77	x			5.51	x			5.87	x			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			1.45	x			2.30	x			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.

 

  

 

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.

 

  

 

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

6.2

x

6.0

x

5.5

x

Fixed charge coverage

5.8

x

5.6

x

5.2

x

 

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.

 

  

 

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			5.5	x			5.7	x			7.2	x			7.2	x			5.7	x
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			5.2	x			5.4	x			6.7	x			6.7	x			5.5	x

 

 

 

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

 

 

 

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.

 

 

 

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

 

 

 

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

 

 

 

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		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				14,347
Athens Medical Complex - Athens GA		2142 West Broad Street, Athens, GA		GA			55,752								2011				19,503				18,273
Spartanburg Regional MOB - Spartanburg SC		100 East Wood Street, Spartanburg, SC		SC			64,800								1986				20,121				18,769
Capital Regional MOB I - Tallahassee FL		2626 Care Drive, Tallahassee, FL		FL			38,225								1998				9,046				7,982
Riverdale MOB - Riverdale GA		34 Upper Riverdale Road, Riverdale, GA		GA			39,301								2005				10,410				9,922
Durango Medical Plaza - Las Vegas NV		8530 W Sunset Road, Las Vegas, NV		NV			73,094								2008				23,248				18,081
Northside East Cobb - Marietta GA		1121 & 1163 Johnson Ferry Rd, Marietta, GA		GA			68,447								1991				19,491				17,223
Legacy Heart Center- Plano, TX		6601 Preston Road, Plano, TX		TX			42,894								2005				11,592				11,311
North Country Medical Center - Watertown, NY		1571 Washington Street, Watertown, NY		NY			48,672								2001				13,000				12,906
MOB Multi Tenant Subtotal/Average							1,491,536								2002			$	398,224			$	351,204
MOB Subtotal/Average							4,006,227								2001			$	1,052,007			$	953,249
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				7,787
Wellington ALF - Minot ND		601 24th Ave SW, Minot, ND		ND			83,710				67				2005				11,650				11,250
Villas of Holly Brook - Herrin, IL		505 Rushing Drive, Herrin, IL		IL			46,139				50				2012				6,672				6,445
Villas of Holly Brook, Shelbyville, IL		2201 West Main Street, Shelbyville, IL		IL			39,735				45				2011				5,955				5,761
Villas of Holly Brook - Marshall, IL		17050 N. Quality Lime Road, Marshall, IL		IL			29,269				46				2012				6,071				5,880
Villas of Holly Brook - Effingham, IL		404 W Evergreen Ave, Effingham, IL		IL			46,130				46				2011				6,327				6,116
Lakeside ALF - San Antonio, TX		8627 Lakeside Parkway, San Antonio, TX		TX			56,500				68				2013				13,150				12,775
Villas of St. James - Breese, IL		14335 Jamestown Road, Breese, IL		IL			53,878				65				2009				6,500				6,310
Villas of Holly Brook - Chatham, IL		825 E Walnut Street, Chatham, IL		IL			46,130				50				2012				6,567				6,402
Villas of Holly Brook - Newton, IL		101 South Gregory St, Newton, IL		IL			34,985				41				2011				5,343				5,211
Rose Garden Nursing and Rehabilitation - Bloomer WI		1900 Priddy St, Bloomer, WI		WI			23,612				26				1997				3,903				3,810
Parkside Nursing and Rehabilitation - Black River Falls WI		109 North 14th St, Black River Falls, WI		WI			14,900				32				1970				3,471				3,388
Countryside Four Seasons - Sioux City IA		3009 Lilac Lane, Sioux Ciy, IA		IA			43,553				61				1986				3,648				3,556
Assisted Living at the Meadowlands - O'Fallon, MO		135 Meadowlands Estates Lane, O'Fallon, MO		MO			53,384				65				2009				13,910				13,809
Triple-Net Seniors Housing Subtotal/Average							597,896				710				2007			$	101,575			$	98,501
TRIPLE NET: SKILLED NURSING
CareMeridian Rehab - Phoenix AZ		5301 E Thomas Road, Phoenix, AZ		AZ			13,500				31				2008				9,016				7,556
Village Healthcare Center - Santa Ana CA		18792 East 17th Street, Santa Ana, CA		CA			7,750				9				2008				4,482				4,002
CareMeridian - La Mesa CA		5640 Aztec Drive, La Mesa, CA		CA			9,000				15				2012				6,000				5,498
TriSun Care Center - San Antonio TX		8707 Lakeside Parkway, San Antonio, TX		TX			42,853				120				2012				12,250				11,697

 

 

 

Property List as of September 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
Cherry Hills Nursing and Rehabilitation - Kansas City MO		724 Northeast 79th Terrace, Kansas City, MO		MO			32,238				150				1983				15,623				15,210
Worthington Nursing and Rehabilitation - Parkersburg WV		2675 36th Street, Parkersburg, WV		WV			33,100				105				1999				21,138				20,555
Sharpe Care Nursing and Rehabilitation - Oconto Falls WI		100 E. Highland Dr, Oconto Falls, WI		WI			43,847				99				1988				10,658				10,363
Hetzel Care Nursing and Rehabilitation - Bloomer WI		1840 Priddy Street, Bloomer, WI		WI			25,000				31				1983				1,858				1,806
Garden Valley Nursing and Rehab - Kansas City MO		8575 N. Granby Ave, Kansas City, MO		MO			39,239				156				1983				20,568				20,024
Family Heritage Nursing and Rehabilitation - Black River Falls WI		1311 Tyler St., Black River Falls, WI		WI			23,800				50				1966				4,818				4,684
Nicholas County Nursing and Rehabilitation - Richwood WV		18 Fourth Street, Richwood, WV		WV			32,532				97				1980				10,028				9,751
Countryside Nursing and Rehabilitation - Sioux City IA		6120 Morningside Ave, Sioux City, IA		IA			68,457				130				1965				8,288				8,058
Trinity Health and Rehabilitation Center - Woonsocket, RI		4 Saint Joseph Street, Woonsocket, RI		RI			70,700				185				1984				17,600				17,284
Herbert Nursing Home - Smithfield, RI		180 Log Road, Smithfield, RI		RI			66,174				133				1990				8,400				8,263
Triple-Net Skilled Nursing Subtotal/Average							508,190				1,311				1990			$	150,726			$	144,751
TRIPLE NET: HOSPITAL
Reliant Rehabilitation - Dallas TX		7930 Northaven, Dallas, TX		TX			64,600				60				2009				33,798				28,821
Select Rehabilitation - San Antonio TX		19126 Stonehue, San Antonio, TX		TX			40,828				42				2010				16,526				13,993
Reliant Rehabilitation - Houston TX		20180 Chasewood Park Drive, Houston, TX		TX			65,000				60				2012				31,593				27,650
Baylor Institute for Rehabilition - Ft. Worth TX		6601 Harris Parkway, Fort Worth, TX		TX			40,000				40				2008				16,000				14,160
Sun City LTAC - Sun City, AZ		13818 North Thunderbird Blvd, Sun City, AZ		AZ			48,000				100				2012				20,000				18,896
Mesa LTAC - Mesa, AZ		215 South Power Road, Mesa, AZ		AZ			48,000				100				2012				20,000				18,896
Baylor Orthopedic & Spine - Arlington TX		707 W. Highlander Boulevard, Arlington, TX		TX			57,243				24				2009				28,000				26,466
Victory Surgical Hospital East Houston - Houston, TX		12590 East Freeway, Houston, TX		TX			23,300				10				2012				12,165				12,106
Triple-Net Hospital Subtotal/Average							386,971				436				2010			$	178,081			$	160,989
Triple-Net Subtotal/Average							1,493,057				2,457				2003			$	430,382			$	404,241
LAND
Arbor Terrace - Decatur GA (Land)		1899 Lawrenceville Highway, Decatur, GA		GA															1,788				1,788
Lexington Park - Lady Lake FL (Land)		930 Highway 466, Lady Lake, FL		FL															1,231				1,231
Assisted Living at the Meadowlands - O'Fallon, MO (Land)		135 Meadowlands Estates Lane, O'Fallon, MO		MO															750				750
Land Subtotal/Average																		$	3,769			$	3,769
CONSTRUCTION IN PROGRESS
Aurora Healthcare - Kenosha, WI		7145 120th Ave, Kenosha, WI		WI			54,820								2014				21,420				21,420
Construction in Progress Subtotal/Average							54,820								2014			$	21,420			$	21,420

 

  

 

Property List as of September 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				15,471
Benton House - Douglasville GA		4999 Prestley Mill Rd., Douglasville, GA		GA			40,636				59				2010				14,650				13,426
Benton Village - Stockbridge GA		195 & 201 Evergreen Terrace, Stockbridge, GA		GA			86,520				108				2008				17,102				15,096
Benton House - Sugar Hill GA		6009 Suwanee Dam Rd., Sugar Hill, GA		GA			38,571				59				2010				16,150				14,595
Benton House - Newnan GA		25 Newnan Lakes Blvd, Newnan, GA		GA			47,550				64				2010				20,550				18,412
Pelican Pointe - Klamath Falls		605 Washington Way, Klamath, OR		OR			61,045				112				2011				20,950				18,614
Princeton Village - Clackamas OR		14370 SE Oregon Trail Drive, Clackamas, OR		OR			39,450				53				1999				7,189				6,331
Cedar Village - Salem OR		4452 Lancaster Drive NE, Salem, OR		OR			51,585				75				1999				11,545				10,318
Ocean Ridge - Coos Bay OR		1855 SE Ocean Boulevard, Coos Bay, OR		OR			68,139				81				2006				13,600				12,137
Pheasant Pointe - Molalla OR		835 E. Main Street, Molalla, OR		OR			39,428				57				1998				7,922				6,963
Wyndcrest - Rochester IL		4817 Oak Hill Road, Rochester, IL		IL			35,059				37				2005				5,248				4,715
Garden House - Anderson SC		201 Edgebrook Drive, Anderson, SC		SC			50,144				64				2000				13,550				12,231
Arbor Terrace - Largo FL (Tampa)		333 16th Ave SE, Largo, FL		FL			57,844				66				1992				9,332				7,546
Arbor Terrace - Athens GA		170 Marilyn Farmer Way, Athens, GA		GA			38,380				56				1998				19,005				16,630
Barrington Terrace - Naples FL		5175 Tamiami Trail East, Naples, FL		FL			58,169				122				2004				24,323				21,047
Arbor Terrace at Cascade - Atlanta GA		1001 Research Center Atlanta Dr, Atlanta, GA		GA			40,547				68				1999				10,069				8,357
Barrington Terrace - Fort Myers FL		9731 Commerce Center Court, Fort Meyers, FL		FL			54,307				117				2001				18,109				15,289
Arbor Terrace - Knoxville, TN		9051 Cross Park Drive, Knoxville, TN		TN			58,113				84				1997				18,612				16,185
Bayside Terrace - Coos Bay, OR		192 Norman Avenue, Coos Bay, OR		OR			46,696				61				2006				4,268				3,599
Redwood Heights - Salem OR		4050 12th Street Cut-Off SE, Salem, OR		OR			63,879				80				1999				12,069				10,808
Clearwater Springs - Vancouver WA		201 NW 78th Street, Vancouver, WA		WA			62,797				81				2003				11,320				10,165
Benton House - Covington GA		7155 Dearing Road, Covington, GA		GA			44,674				59				2009				14,000				12,655
Arbor Terrace - Asheville NC		3199 Sweeten Creek Road, Asheville, NC		NC			42,000				63				1998				18,684				16,455
Arbor Terrace - Decatur GA		425 Winn Way, Decatur, GA		GA			51,159				66				1990				23,593				20,827
Gardens at Westlake - Westlake OH		27569 Detroit Road, Westlake, OH		OH			102,000				97				1987				22,549				20,607
Solana at Cinco Ranch - Katy, TX		24001 Cinco Village Center Blvd., Katy, TX		TX			250,000				184				2010				71,260				67,402
Summerhill Villa - Santa Clarita, CA		24431 Lyons Ave, Santa Clarita, CA		CA			90,791				134				2001				52,290				49,665
Casa de Sante Fe - Rocklin, CA		3201 Santa Fe Way, Rocklin, CA		CA			141,200				159				2001				52,316				50,047
Lexington Park - Lady Lake, FL		930 Highway 466, Lady Lake, FL		FL			74,112				89				2010				25,432				24,208
Bay Pointe - Bremerton, WA		966 Oyster Bay Court, Bermerton, WA		WA			75,225				93				1999				21,900				21,412
Edmunds Landing - Edmund, WA		180 Second Ave., Edmonds, WA		WA			69,748				83				2001				29,350				28,833
Silverado Senior Living of Everett - Everett, WA		524 75th Street SE, Everett, WA		WA			34,018				42				1998				8,650				8,409
Silverado Senior Living of Bellingham - Bellingham, WA		848 West Orchard Drive, Bellingham, WA		WA			30,099				63				1999				20,500				20,009
Woodmark at Uptown - Albuquerque, NM		7201 Prospect Place NE, Albuquerque, NM		NM			169,460				117				2000				40,350				39,632
Woodmark at Sun City - Sun City, AZ		17207 N Boswell Blvd, Sun City, AZ		AZ			108,198				132				2000				35,000				34,332
Seniors Housing Operating Properties/Average							2,426,068				2,965				2002			$	728,809			$	672,429
Grand Total/Average							7,980,172				5,422				2002			$	2,236,388			$	2,055,108

 

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

 

 

 

 

 

 

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