Global Healthcare REIT Reports 2014 Results

ATLANTA, GA--(Marketwired - Mar 31, 2015) -  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

Property Name		Property Count		Facility Type		Beds/Units		Gross Annual Rent		Membership Interest		Location		Date Acquired
Middle Georgia		1		SNF		100 beds		$570,000		88%		Eastman, GA		3-15-2013
Warrenton		1		SNF		110 beds		$334,448		95%		Warrenton, GA		12-31-2013
				SNF		106 beds		$420,000
Southern Hills		1		ILF		86 units		Under renovations		100%		Tulsa, OK		2-7-2014
				ALF		32 beds		$240,000
Goodwill		1		SNF		152 beds		$734,400		90%		Macon, GA		5-19-2014
Edwards Redeemer		1		SNF		106 beds		$540,000		100%		Oklahoma City, OK		9-16-2014
Golden Years Manor		1		SNF		141 beds		$763,000		78%		Lonoke, AK		9-16-2014
Sparta		1		SNF		71 beds		$237,372		83%		Sparta, GA		9-16-2014
Greene Point		1		SNF		71 beds		$254,220		100%		Union Point, GA		9-16-2014
Meadowview		1		SNF		90 beds		$361,000		100%		Seville, OH		9-30-2014
Total		9		11		1,065		$4.5 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 (unaudited)				December 31, 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
					Year Ended December 31, 2014 (unaudited)				March 13, 2013 (date of inception) to December 31, 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