Company Overview: Selectis Health, Inc.

Business Operations

• Industry Focus: Healthcare and real estate, specifically in senior housing and post-acute/skilled nursing facilities.
• Main Activities:
  • Owns and operates healthcare real estate through wholly-owned subsidiaries.
  • Manages Assisted Living Facilities, Independent Living Facilities, and Skilled Nursing Facilities across the South and Southeastern US.
  • Transitions from leasing long-term care facilities to an owner-operator model (shift beginning in 2019).
  • Acquires, develops, leases, manages healthcare properties, and provides financing to healthcare providers.
• Investment Products:
  • Direct ownership of properties
  • Debt investments
  • Developments and redevelopments
  • Investment management
  • RIDEA structures (for senior housing operations)
  • Ownership of healthcare operations

Healthcare Industry Context

• Largest industry in the U.S. based on GDP.
• Healthcare expenditures expected to grow at an annual rate of 5.6% from 2016–2027.
• Healthcare spending to rise from 17.8% of GDP in 2015 to approximately 19.9% by 2025.
• Senior citizens are the largest consumers, notably:
  • The 85+ age group spends 92% more on healthcare than the 65-84 age group.
  • Over 329% more than the overall population average.

Real Estate Portfolio

• Properties Owned (as of December 31, 2024): 12 healthcare facilities.
• Operational Facilities: 9 owned and operated facilities.
• Facility Locations & Types:
  • Arkansas: 1 property
  • Georgia: 4 properties
  • Ohio: 1 property
  • Oklahoma: 6 properties
• Size & Beds:
  • Total square footage of owned properties: approximately 268,673 square feet.
  • Total beds in operating facilities: 893 beds.
• Key Details:
  • One property (Archway) sold in June 2024, ceasing third-party leasing revenue from that property.
  • Pending sale: Four skilled nursing facilities in Georgia (expected to close some time in 2025).

Revenue

• Total Revenue (2024): approximately $39.5 million
  • Healthcare Revenue: $39.17 million (up 13% from 2023)
  • Rental Revenue: $321,352 (down 49% due to sale of Archway property in June 2024)
  • Grant Revenue: None in 2024, down from $1.61 million in 2023

Employees and Staff

• As of March 20, 2025: 614 employees
• As of December 31, 2024: 616 employees
• Noted key personnel include:
  • Adam Desmond (CEO)
  • Jim Creamer (CFO)
  • Sarah Day (VP of Operations)
  • Clifford Neuman (Director, since December 2023)

Financial Highlights (2024)

• Net Loss: approximately $2.45 million
• Total Operating Expenses: about $42.22 million
  • Main expense drivers: Property taxes, insurance, operational costs
• Operational Cash Flow: Negative $1.82 million
• Significant Non-Cash Items:
  • Depreciation & amortization: ~$1.57 million
  • Gain on sale of asset (Goodwill Hunting property): $2.11 million
• Income from Employee Retention Credits: None in 2024 (versus ~$6.87 million in 2023)
• Total Revenue Year-over-Year Increase: approx. $2.72 million (from $36.78M in 2023 to $39.49M in 2024)

Capital Structure & Liquidity

• Total Debt (as of December 31, 2024): approximately $32.13 million
  • Includes senior secured notes, mortgage loans, and other debt
• Cash and Cash Equivalents (2024): about $680,332
• Restricted Cash: about $711,634
• Working Capital Deficiency (2024): $16.1 million
• Long-term Debt: reduced from $25.18 million (2023) to approximately $19.13 million (2024).
• Liens & Collateral: Major debt secured by real estate assets; some guarantees involved.

Summary

Selectis Health, Inc. is a healthcare real estate owner and operator specializing in senior housing and post-acute care facilities in the southeastern U.S. The company has transitioned to an owner-operator model, managing 9 facilities with a focus on providing quality health services. In 2024, it generated nearly $39.5 million in revenue, primarily from healthcare operations, but reported a net loss of about $2.45 million. It owns 12 properties, with plans to sell four skilled nursing facilities in Georgia in 2025. The firm is facing financial challenges including a working capital deficit and considerable debt, with ongoing efforts to improve liquidity and operational efficiency.