Global Healthcare REIT Reports 2014 Results
Company to Issue Dividend of $0.01 per Share in Q1 and Q2 2015, With Plans to Increase Dividend to $0.02 per Share in Q3
Tweet
Share
E-mailATLANTA, GA -- (Marketwired) -- 03/31/15 -- Global Healthcare REIT, Inc. (OTCQB: GBCS), a leading real estate investment trust that owns healthcare properties and leases them to senior care facility operators, reported results for the year ended December 31, 2014.
2014 Highlights
- Completed acquisitions of seven properties for $27.9 million in total
- Rental revenue increased 318% to $1.9 million versus the period from March 13, 2013 (date of inception) through December 31, 2013
- Net income to common shareholders improved to $1.3 million or $0.06 per diluted share from a net loss to common shareholders of $0.7 million or $0.09 per basic and diluted share in the period from March 13, 2013 (date of inception) through December 31, 2013
- Total assets up 270% to $46.5 million versus the period from March 13, 2013 (date of inception) through December 31, 2013
- Paid quarterly cash dividend of $0.01 in Q1 and Q4 of 2014
2014 Financial Summary Rental revenue increased 318% to $1.9 million in 2014, as compared to $443,000 in the period from March 13, 2013 (date of inception) through December 31, 2013. The increase in revenue was due to the additional days of operation and the contribution of facilities acquired in 2014, with the number of facilities totaling 11 as of December 31, 2014 versus two at December 31, 2013. Rental revenue in 2014 was derived from eight out of 11 facilities in the company's portfolio, and does not reflect the full run rate the company expects from its healthcare property portfolio. As of March 1, 2015, 10 of the facilities were contributing rental revenue, with the Southern Hills independent living facility currently undergoing renovations that are scheduled for completion by the end of the year.
Total expenses were $2.1 million in 2014, compared to $0.8 million in the period from March 13, 2013 (date of inception) through December 31, 2013. The increase in total expenses was due the greater number of days of operation, as well as increased general and administrative expenses, and increased depreciation expense due to the addition of properties to the company's portfolio in 2014. As the company continues its acquisition campaign for healthcare real estate, it anticipates revenue and cash flow will increase while holding general and administrative costs relatively flat and fixed costs at approximately $205,000 per quarter.
Net income to common shareholders improved to $1.3 million or $0.06 per diluted share in 2014 as compared to a net loss of $0.7 million or $0.09 per basic and diluted share in the period from March 13, 2014 (date of inception) through December 31, 2013. The improvement in net income was partly due to a gain of $3.0 million that resulted from the excess of fair value in the acquisition of Southern Hills Retirement Center.
Cash and cash equivalents totaled $0.5 million as of December 31, 2014, as compared to $1.2 million as of December 31, 2013.
2014 Acquisition Activity During 2014, Global Healthcare REIT completed acquisitions of seven properties for $27.9 million in total. Six were skilled nursing facilities and one property was a senior living campus comprised of a skilled nursing facility, assisted living facility and independent living facility.
The 2014 acquisitions bring the company's total properties owned to nine (see "Summary of Property Portfolio," below, for more details.) There are no capital improvement and recurring capital expenditure commitments at the properties, except for renovations at the company's Southern Hills Retirement Center, which are expected to be completed by the end of 2015.
Management Commentary "In 2014, we experienced extraordinary growth as our rental revenue increased four-fold over last year, driven by nine senior care facility acquisitions," said Global Healthcare REIT's president and CEO, Christopher Brogdon. "The successful 2014 acquisitions expanded our footprint from only Georgia to Arkansas, Kansas and Oklahoma. We plan to continue this expansion by acquiring four skilled nursing facilities in Texas, as well as other acquisitions in key states. Our current plan is to double our portfolio to more 20 facilities by the end of this year."
Quarterly Dividend As previously announced, the company declared a regular quarterly cash dividend in the amount of $0.01 per common share for the first quarter of 2015. The dividend will be paid April 30, 2015 to shareholders of record on the close of business on April 10, 2015.
"We recently announced our second consecutive quarterly dividend and expect our dividend to grow over time in correlation to the growth in our healthcare facilities portfolio," commented Brogdon. "Given our acquisition pipeline, we expect to issue a quarterly cash dividend in the amount of $0.01 per common share for the second quarter of 2015, with plans to increase the dividend to $0.02 per share in the third quarter of 2015."
Management Appointment During the current quarter, the company promoted Ryan Scates from general counsel and secretary to the new position of executive vice president. Scates previously served in a management capacity at Winter Haven Homes to help facilitate healthcare facility acquisitions. His prior experience also includes working in the Office of the Executive Counsel to the Governor of Georgia and as a member of the University of Georgia's Athletic Association Board of Directors. Scates holds undergraduate and law degrees from the University of Georgia.
Conference Call Global Healthcare REIT will host a conference call tomorrow to discuss the fourth quarter of 2014, followed by a question and answer period.
Date: Wednesday, April 1, 2015 Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time) Dial-In number: 1-888-523-1228 International: 1-719-325-2315 Conference ID: 6073989 Webcast: http://public.viavid.com/index.php?id=113672
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
A replay of the call will be available after 1:00 p.m. Eastern time on the same day through April 8, 2015.
Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay ID: 6073989
Summary of Property Portfolio
ALF = Assisted Living Facility SNF = Skilled Nursing Facility ILF = Independent Living Facility
----------------------------------------------------------------------------
Gross
Property Property Facility Beds/ Annual Membership Location Date
Name Count Type Units Rent Interest Acquired
----------------------------------------------------------------------------
Middle 100 Eastman, 3-15-
Georgia 1 SNF beds $570,000 88% GA 2013
----------------------------------------------------------------------------
110 Warrenton, 12-31-
Warrenton 1 SNF beds $334,448 95% GA 2013
----------------------------------------------------------------------------
106
SNF beds $420,000
-------------------------
Under
Southern 1 ILF 86 renova- 100% Tulsa, OK 2-7-2014
Hills units tions
-------------------------
32
ALF beds $240,000
----------------------------------------------------------------------------
152 5-19-
Goodwill 1 SNF beds $734,400 90% Macon, GA 2014
----------------------------------------------------------------------------
Edwards 106 Oklahoma 9-16-
Redeemer 1 SNF beds $540,000 100% City, OK 2014
----------------------------------------------------------------------------
Golden 141 9-16-
Years Manor 1 SNF beds $763,000 78% Lonoke, AK 2014
----------------------------------------------------------------------------
71 9-16-
Sparta 1 SNF beds $237,372 83% Sparta, GA 2014
----------------------------------------------------------------------------
Greene 71 Union 9-16-
Point 1 SNF beds $254,220 100% Point, GA 2014
----------------------------------------------------------------------------
90 Seville, 9-30-
Meadowview 1 SNF beds $361,000 100% OH 2014
----------------------------------------------------------------------------
$4.5
Total 9 11 1,065 Million
---------------------------------------------
About Global Healthcare REIT Global Healthcare REIT recently completed a reverse acquisition with Global Casinos, Inc. to acquire real estate properties primarily engaged in the healthcare industry, including skilled nursing homes, medical offices, hospitals and emergency care facilities. It intends to make a tax election in the future to take advantage of the tax incentives available to real estate investment trusts. As a REIT, the Company will not operate its healthcare facilities but rather will lease its properties under long term operating leases. It currently owns interest in 11 facilities and plans on acquiring more properties in the future. For further information, visit www.gbcsreit.com.
Forward-looking Statements This press release may contain projection and other forward-looking statements. Any such statement reflects the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur and actual results could differ materially from those presented. A discussion of important factors that could cause actual results to differ from those presented is included in the Company's periodic reports filed with the Securities and Exchange Commission (at http://www.sec.gov).
GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
2014 December 31,
(unaudited) 2013
------------- -------------
ASSETS
Property and Equipment, net $ 40,259,357 $ 8,088,600
Cash and Cash Equivalents 533,597 1,180,192
Advances to Related Parties 353,211 485,300
Restricted Cash 904,157 307,638
Notes Receivable - Related Parties, net of
discount 1,186,822 600,148
Prepaid Expenses, Deferred Loan Costs, and
Other 1,490,634 139,673
Goodwill 1,750,454 1,750,454
------------- -------------
Total Assets $ 46,478,232 $ 12,552,005
============= =============
LIABILITIES AND EQUITY
Liabilities
Debt, net $ 37,610,874 $ 7,332,756
Accounts Payable and Accrued Liabilities 268,942 295,432
Advances from Related Parties 7,345
Lease Security Deposit 176,667 25,000
------------- -------------
Total Liabilities 38,056,483 7,660,533
------------- -------------
Commitments and Contingencies
Equity
Stockholders' Equity
Preferred Stock:
Series A - No Dividends, $2.00 Stated
Value, Non-Voting; 2,000,000 Shares
Authorized, 200,500 Shares Issued and
Outstanding 401,000 401,000
Series D - 8% Cumulative, Convertible,
$1.00 Stated Value, Non-Voting;
1,000,000 Shares Authorized, 375,000
and 700,000 Shares Issued and
Outstanding at December 31, 2014 and
December 31, 2013, respectively
375,000 700,000
Common Stock - $0.05 Par Value; 50,000,000
Shares Authorized, 21,640,051 and
14,556,115 Shares Issued and Outstanding
at December 31, 2014 and December 31,
2013, respectively 1,082,003 727,807
Common Stock Subscribed but Not Issued 106,500
Additional Paid-In Capital 8,540,520 3,768,764
Retained Earnings (Accumulated Deficit) 212,573 (687,057)
------------- -------------
Total Global Healthcare REIT, Inc.
Stockholders' Equity 10,611,096 5,017,014
Noncontrolling Interests (2,189,347) (125,542)
------------- -------------
Total Equity 8,421,749 4,891,472
------------- -------------
Total Liabilities and Equity $ 46,748,232 $ 12,552,005
============= =============
GLOBAL HEALTHCARE REIT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
March 13,
Year Ended 2013 (date of
December 31, inception) to
2014 December 31,
(unaudited) 2013
------------- -------------
Revenue
Rental Revenue $ 1,853,809 $ 443,333
------------- -------------
Expenses
General and Administrative 809,356 330,747
Acquisition Costs 250,909 173,743
Bad Debt 440,219 108,182
Depreciation 624,311 153,847
------------- -------------
Total Expenses 2,124,795 766,519
------------- -------------
Income (Loss) from Operations (270,986) (323,186)
------------- -------------
Other (Income) Expense
Bargain Purchase Gain (3,000,000) -
Loss on Sale of Property and Equipment 381,395 -
Interest Income (91,373) -
Interest Expense 968,613 423,302
------------- -------------
Total Other (Income) Expense (1,741,365) 423,302
------------- -------------
Equity in Loss from Unconsolidated
Partnership (23,292) -
------------- -------------
Net Income (Loss) 1,447,087 (746,488)
------------- -------------
Net (Income) Loss Attributable to
Noncontrolling Interests (89,940) 102,403
------------- -------------
Net Income (Loss) Attributable to Global
Healthcare REIT, Inc. 1,357,147 (644,085)
Series D Preferred Dividends (42,904) (60,089)
------------- -------------
Net Income (Loss) Attributable to Common
Stockholders $ 1,314,243 $ (704,174)
============= =============
Per Share Data:
Net Income (Loss) per Share Attributable
to Common Stockholders -
Basic $ 0.07 $ (0.09)
============= =============
Diluted $ 0.06 $ (0.09)
============= =============
Weighted Average Common Shares Outstanding:
Basic 19,456,590 8,240,492
============= =============
Diluted 22,002,036 8,240,492
============= =============
Company Contact: Ryan Scates, Executive Vice President Global Healthcare REIT, Inc. Tel 404-781-2852 Email Contact Investor Relations Contact: Ron Both Liolios Group, Inc. Tel 949-574-3860 Email Contact
Source: Global Healthcare REIT
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Check-Cap to execute 1-for-7 reverse split ahead of MBody AI merger
- Nocera and INERGX form 50/50 energy joint venture
- BOA Acquisition Corp. II raises $143.75M in Nasdaq IPO
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Dividend, Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
