2022 First Quarter Investor Presentation
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2022 first quarter investor presentation
supplemental reporting measures
We believe that presenting supplemental reporting measures, or non-GAAP
measures, such as EBITDA, EBITDAre and Adjusted EBITDAre, is useful to
investors and analysts because it provides important supplemental information
concerning our operating performance exclusive of certain non-cash and other
costs. These non-GAAP measures have limitations as they do not include all
items of income and expense that affect operations. Accordingly, they should
not be considered alternatives to net income as a performance measure and
should be considered in addition to, and not in lieu of, GAAP financial measures.
Our presentation of such non-GAAP measures may not be comparable to
similarly titled measures employed by other companies.
EBITDA, EBITDAre and Adjusted EBITDAre
EBITDA represents earnings (GAAP net income) plus interest expense, income
tax expense, depreciation and amortization.
We compute EBITDAre in accordance with the definition adopted by NAREIT.
NAREIT defines EBITDAre as EBITDA (as defined above) excluding gains (or
losses) from the sales of depreciable property and real estate impairment losses.
To derive Adjusted EBITDAre we modify the NAREIT definition of EBITDAre to
exclude other items included in GAAP net income, such as provisions for loan
losses and executive severance, as such items are not related to our ongoing
performance.
Note: The adjustments to derive Adjusted EBITDAre may not exist in every quarter,
therefore EBITDAre and Adjusted EBITDAre may be equal.
Annualized Adjusted EBITDAre and Adjusted Debt
Annualized Adjusted EBITDAre is calculated by multiplying Adjusted EBITDAre
for the most recently completed fiscal quarter by four.
Annualized Adjusted EBITDAre - Current Estimated Run Rate is based on an
estimated Adjusted EBITDAre calculated as if all leases and loans in place as of
the last date of the most recently completed fiscal quarter had been in place as
of the beginning of such quarter; then annualizing that estimated Adjusted
EBITDAre for the quarter by multiplying it by four. You should not unduly rely
on this metric as it is based on several assumptions and estimates that may
prove to be inaccurate. Our actual reported Adjusted EBITDAre for future
periods may be significantly less than that implied by our reported Annualized
Adjusted EBITDAre - Current Estimated Run Rate for a variety of reasons.
Adjusted Debt represents our outstanding debt obligations excluding
unamortized deferred financing costs and net debt premium, further reduced
for cash and cash equivalents and restricted cash deposits held for the benefit
of lenders. We believe excluding unamortized deferred financing costs and net
debt premium, cash and cash equivalents and restricted cash deposits held for
the benefit of lenders provides an estimate of the net contractual amount of
borrowed capital to be repaid, which we believe is a beneficial disclosure to
investors and analysts.
Adjusted Debt to Annualized Adjusted EBITDAre
Adjusted Debt to Annualized Adjusted EBITDAre, or leverage, is a supplemental
non-GAAP financial measure we use to evaluate the level of borrowed capital
being used to increase the potential return of our real estate investments. We
calculate leverage by dividing Adjusted Debt by Annualized Adjusted EBITDAre.
Because our portfolio growth level is significant to the overall size of the
Company, we believe that presenting this leverage metric on a run rate basis is
more meaningful than presenting the metric for the historical quarterly period,
and we refer to this metric as Adjusted Debt to Annualized Adjusted
EBITDAre-Current Estimated Run Rate. Leverage should be considered as a
supplemental measure of the level of risk to which stockholder value may be
exposed. Our computation of leverage may differ from the methodology
employed by other companies and, therefore, may not be comparable to other
measures.
Note: NAREIT issued a white paper in 2017 recommending that companies
that report EBITDA also report EBITDAre.View entire presentation