American Realty Capital Healthcare Trust Iii Inactive
Filed: 29 Sep 17, 12:00am
Exhibit (c)(12)
Suggested Valuation Approach ▪ KeyBanc recommends the following valuation: – Assume the 9.5% in our initial bid is appropriate for all assets except: • three top-tier high quality MOBs (Woodlake Office Center, Beaumont Medical Center, Madison Medical Plaza) • three second-tier high quality MOBs (Rockwall Medical Plaza, Decatur MOB, Lee Memorial Outpatient Center) • three dialysis treatment centers (DaVita Bay Breeze, DaVita Hudson, and RAI Care Center) • RIDEA seniors housing asset with strong operator (Cedarhurst of Collinsville) – Assume these assets are purchased at lower, closer-to-market cap rates – NOI is adjusted down $144K at Beaumont (based on new lease being negotiated) and $64K at Arcadian (this represents a 1.25x coverage on 2016 EBITDAR) KBCM - Previous KBCM - Revised Orig. Cost 17 Adj. NOI Cap Rate Implied Price Cap Rate Implied Price 17 Adj. NOI Medical Office Building Portfolio ($in mm) DaVita BayBreeze Dialysis Center $0.1 9.50% $1.2 8.00% $1.5 $1.7 RAI Cancer Center 0.4 9.50% 3.7 8.00% 4.4 4.8 DaVita Dialysis 0.2 9.50% 2.1 8.00% 2.5 2.7 Rockwall Medical Plaza 0.5 9.50% 4.9 7.50% 6.2 6.6 Decatur MOB 0.5 9.50% 5.0 7.50% 6.4 5.1 MetroHealth Buckeye Health Center 0.4 9.50% 4.4 9.50% 4.4 5.6 Phillips Professional Center 0.6 9.50% 6.7 9.50% 6.7 9.0 Illinois CancerCare Clinic 0.3 9.50% 2.7 9.50% 2.7 3.4 Galesburg VA Outpatient Clinic 0.2 9.50% 1.9 9.50% 1.9 2.6 Woodlake Office Center 1.0 6.80% 15.2 6.80% 15.2 14.9 Greenfield Medical Center 0.5 9.50% 5.6 9.50% 5.6 7.0 Lee Memorial Health System Outpatient Center 0.4 9.50% 4.0 7.50% 5.1 5.3 Beaumont Medical Center 1.0 6.67% 14.8 6.67% 14.8 13.7 Madison Medical Plaza 1.2 6.30% 19.8 6.30% 19.8 19.5 UnityPoint Muscatine 0.4 9.50% 4.3 9.50% 4.3 5.9 UnityPoint Moline 0.3 9.50% 2.8 9.50% 2.8 3.8 Medical Office Building Portfolio - Total $8.0 $99.4 $104.5 $111.4 Implied Cap Rate - Medical Office Building 8.0% 7.6% 7.2% Seniors Housing Portfolio ($in mm) Arcadian Cove Assisted Living $0.3 9.50% $3.1 9.50% $3.1 $4.8 Cedarhurst of Collinsville 0.9 9.50% 9.5 7.50% 12.0 11.6 Seniors Housing Portfolio - Total $1.2 $12.6 $15.1 $16.4 Implied Cap Rate - Seniors Housing 9.5% 7.9% 7.3% Total Portfolio $9.2 $112.0 $119.6 $127.8 Implied Cap Rate - Total Portfolio 8.2% 7.7% 7.2% KeyBanc Capital Markets 1