NexLiving Communities Inc · TSXV:NXLV
NexLiving Communities — Investor Presentation (November 2021)
25 slides from NexLiving Communities's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
November 2021 Investor Presentation
Slide 2: Disclaimer
Disclaimer General A preliminary prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Pri
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Forward Looking Information Cont’d Forward-looking information are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company,
Slide 4: Investment Highlights
Investment Highlights Population Growth in Atlantic Canada is driving demand for multifamily space. New Brunswick rents are up +8.7% YOY1 compared to the average in Canada of +1.6%1 INVESTMENT HIGHLIGHTS Same Property NOI on track to grow +14%, in the six-month period following our last acquisition
Slide 5: Select Financial Summary
Select Financial Summary Pro Forma NOI ($M) Pro Forma FFO ($M) $8.4 $3.7 $4.8 $1.5 (1,2) (3) (1,4) Actual Q3 Annualized Pro Forma Actual Q3 Annualized Pro Forma FFO Per Share FFO Payout Ratio 20% $0.013 15% $0.010 (3) (1,4) (3) Actual Q3 Annualized Pro Forma Actual Q3 Annualized Pro Forma (1,4) 1. S
Slide 6: Why Invest Now?
Why Invest Now? Financial Growth • SG&A costs expected to increase by approximately 10%, while stabilized annualized NOI is expected to increase by ~75%1 • FFOPS immediately accretive and projected to grow approximately ~30%1,2,3,4 once portfolio fully stabilized • Pro forma portfolio rents remain 1
Slide 7: Company Overview
NexLiving communities inc:
Slide 8: Company Snapshot
Company Snapshot • NexLiving Communities Inc. is focused on the acquisition and management of multifamily rental residential properties in Atlantic Canada and Ontario o Targeting specifically low and mid-rise properties, with close proximity to nature trails and parks, amenities and hospitals o Buil
Slide 9: Current Portfolio Overview
Current Portfolio Overview Current Portfolio Building and Suite Progress SAINT TOTAL / 600 20 MONCTON OSHAWA JOHN WTD AVG 18 18 18 17 17 Suites / 167 / 4 362 / 13 20 / 1 549 / 18 500 Buildings 16 15 14 10 400 properties 2014 built Portfolio 12 2015 between Year Built 2020 age of ~8 2018 2004-2008, y
Slide 10: Management and Board of Directors
Management and Board of Directors Management Board of Directors RICHARD TURNER, Chairman MIKE ANAKA, CEO and Director ▪ President and CEO of Titanstar Investment Group Inc. ▪ CEO of NexLiving Communities Inc. ▪ Former Chairman of Pure Industrial REIT (TSX:AAR.UN), ▪ 35-year career with PwC LLP, incl
Slide 11: Market Overview
NexLiving communities inc.
Slide 12: The Opportunity: 55+ Active Living Lifestyle
The Opportunity: 55+ Active Living Lifestyle Multi- Active Independent Assisted Long-term Care High-Acuity Residential Living 55+ Living Living Care A new multifamily segment has emerged over the last 10 years: • The growing 55+ demographic are creating a community-based multifamily alternative that
Slide 13: New Brunswick Overview
New Brunswick Overview New Brunswick is Growing New Brunswick Renter Demographic Trends • New Brunswick economy and population is growing • Downsizing demographic growing(2) faster than Canada on average o Growing number of +65 are choosing to live in o Employment has increased each year from 2016-
Slide 14: New Brunswick Home Prices at Record Levels
New Brunswick Home Prices at Record Levels Population Growth Is Manifesting In Asset Prices • New Brunswick home prices are following the overall country trend and hitting all-time high pricing • Inter-provincial migration is at an all-time high as: o Canadians from all over the country have been mo
Slide 15: NexLiving Positioned in Favourable Rent Markets in Canada
NexLiving Positioned in Favourable Rent Markets in Canada 2019-2020 Population Growth (%)(1) 2020 Average Monthly Rent ($)(2) 3.0% $2,100 $1,800 2.0% $1,500 $1,200 1.0% $900 $600 0.0% $300 – -1.0% Winnipeg NF & L Halifax Vancouver Saint John Toronto Moncton PEI Canada Montreal Peterborough Alberta S
Slide 16: Average Age of Portfolio Drives Low Vacancies
Average Age of Portfolio Drives Low Vacancies New Buildings + Tight Supply = Strong Rents • New Brunswick vacancy rate by age of structure reveals that newer buildings have a better overall demand profile • Overall vacancy in key New Brunswick markets is 2.8-3.0% • Portfolio vacancy is currently bel
Slide 17: Acquisition Portfolio Overview
Acquisition Portfolio Overview
Slide 18: Proposed Acquisitions
Proposed Acquisitions • Portfolio being acquired for a blended acquisition cap rate of 5.0% on a stabilized basis1 RIVERVIEW #1 RIVERVIEW #2 MOUNTAIN ROAD TOTAL / AVG Suites / Buildings 156 / 7 64 / 1 150 / 2 370 / 10 Whitepine & Cleveland 2251 & 2261 Mountain 1009 Cleveland Avenue, Address Avenue,
Slide 19: Proposed Acquisitions
Proposed Acquisitions 1008, 1020 & 1037 Cleveland Avenue 529, 539, 545 & 625 Whitepine Avenue 1009 Cleveland Avenue 1009 Cleveland Avenue 2261 Mountain Road 2251 Mountain Road 19
Slide 20: Financial Summary
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Slide 21: Capitalization and Sources and Uses
Capitalization and Sources and Uses Sources and Uses (C$M) Pro Forma Capitalization (C$M) Current Pro-Forma Sources Issue Price $0.20 $0.20 Expected Mortgage Debt $54.8 Shares Outstanding (F.D) 156.8 156.8 Issued Shares: Brokered 100.0 Non-Brokered Private Placement $4.0 Issued Shares: Non-Brokered
Slide 22: Debt Maturity Profile
Debt Maturity Profile Near Term Maturities Higher Than Market Rates • Potential to refinance debt at lower borrowing costs provides opportunity for accretion o Current average mortgage rate of 2.25% o Last mortgage assumed for a 3-year term at 1.95% o Potential to refinance near term mortgage and co
Slide 23: Offering Summary & Comparables
Offering Summary & Comparables
Slide 24: Term Sheet
Term Sheet ISSUER NexLiving Communities Inc. OFFERING 100,000,000 common shares qualified by way of short form prospectus in certain jurisdictions of Canada OFFERING AMOUNT $20,000,000 OFFERING PRICE $0.20 per common share FORM OF OFFERING Short form prospectus CLOSING DATE On or about November 24,
Slide 25: Comparable Companies
Comparable Companies REDACTED In accordance with Section 13.7(4) of National Instrument 41-101 – General Prospectus Requirements, all the information relating to the Company's comparables and any disclosure relating to the comparables, which is contained in the presentation to be provided to potenti
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