New Senior Investment Group Inc
New Senior Investment — Q1 2021 Earnings Presentation
30 slides from New Senior Investment's earnings presentation, May 5, 2021
Slide 1: Company Update May 5, 2021
Company Update May 5, 2021 Aspen ViewBillings, MT
Slide 2: Forward-Looking Statements, Non-GAAP and Other Information
Forward-Looking Statements, Non-GAAP and Other Information 1 IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” Throu
Slide 3: Table of Contents
Table of Contents SECTIONS PAGES I. Overview and Executive Summary 3 – 8 II. COVID-19 Situation Update 9 – 12 III. Financial Update 13 – 18 IV. Industry Outlook 19 – 21 V. Appendix 22 – 29 2
Slide 4: New Senior Overview
New Senior Overview New Senior Investment Group Inc. (NYSE: SNR) is a publicly-traded REIT with a portfolio of 102 Independent Living (IL) properties and one NNN leased property Pure Play REIT Uniquely Positioned Geographic Diversification & Scale Experienced Operator Mix Uniquely positioned to capi
Slide 5: Geographically Diversified Portfolio
Geographically Diversified Portfolio Properties located in 36 different states, generally outside of major metropolitan areas65% of NOI generated from properties located in secondary and tertiary markets(1) 4 As defined by National Investment Center for Seniors Housing & Care (NIC); Tertiary markets
Slide 6: Executive Summary
Executive Summary Dogwood EstatesDenton, TX
Slide 7: 1Q21 Results In Line With Guidance, Improving Occupancy Trends
1Q21 Results In Line With Guidance Improving Occupancy Trends Recent Highlights 6 Successfully completed the transition of 21 properties to Atria Senior Living on April 1st `Represents a significant step in our ongoing effort to improve operator diversification and alignment Other Business Updates C
Slide 8: New Senior Operator Mix
New Senior Operator Mix(1) 7 New Senior currently has five different operating partners Holiday Retirement is our largest operating partner – currently manages 75% of our portfolioHoliday is the 3rd largest operator in the U.S. and primarily focused on IL Successfully completed transition of 21 prop
Slide 9: Benefits of Independent Living
Benefits of Independent Living 8 100% Private Pay ~3 YearsLength of stay ~40% Operating margins ~60% Residents under 85 years of age Not exposed to payment risk from changes in government reimbursement programs Less regulatory oversight since properties do not require healthcare licenses Longer aver
Slide 10: COVID-19 Situation Update
COVID-19 Situation Update
Slide 11: Vaccine Update
10 Vaccine Update 100% of the properties in our portfolio have had access to the vaccine91% of properties have completed all planned clinics; expect to have all clinics completed this monthOperators able to successfully organize vaccine clinics despite IL being excluded from Phase 1a of federal prog
Slide 12: COVID-19 Cases & Trends
COVID-19 Cases & Trends As of May 3, our portfolio has 3 active cases (1 resident and 2 associates) across 3 propertiesRate of new cases within our portfolio slowed again in April after the significant decline in March12 new total cases in April, down 95% from the peak in DecemberOnly 4 new resident
Slide 13: COVID-19 Impact on Senior Housing
COVID-19 Impact on Senior Housing(1) Industry occupancy has declined significantly since the start of the pandemic – down 830bps since 1Q20In addition, expenses increased as operators adapted components of the business to keep residents and employees safe While the entire sector has been significant
Slide 14: Financial Update
Financial Update PinegateMacon, GA
Slide 15: Financial Results – 1Q 2021
14 Financial Results – 1Q 2021 Ending occupancy down 160bps QoQ and down 720bps YoY (slightly better than guidance of down 170bps QoQ) IL RevPOR growth of 0.3% YoYSame store cash NOI down 16% YoY (as compared to guidance of down approximately 15% YoY)AFFO per share of $0.14 (in line with guidance ra
Slide 16: Key Observations: Recent Occupancy & Financial Trends
Key Observations: Recent Occupancy & Financial Trends 15 Occupancy & Revenue Results were consistent with 1Q21 expectations and guidance range2Q21 guidance assumes occupancy growth continues into May and June based on positive sales trends observedFinancial results in 2Q21 could represent a trough i
Slide 17: IL Lead and Move-in Trends
IL Lead and Move-in Trends 16 Leads increased in 1Q21 as COVID-19 cases declined and the vaccine rollout progressedMarch exceeded average 2019 volume for the first time since the pandemic began, versus low point of 57% in April 2020In total, 1Q21 leads represented 103% of average 2019 volumeApril le
Slide 18: IL Move-out and Occupancy Trends
IL Move-out and Occupancy Trends 17 Move-outs increased at the end of 1Q21, driven mostly by higher non-controllable move-outsDeaths and higher level of care both trended above typical levels following elevated COVID-19 cases early in the quarterApril move-outs declined 15% from March as non-control
Slide 19: 2Q 2021 Guidance
2Q 2021 Guidance 18 Based on latest results and current trends, we are providing guidance for 2Q21 results Results driven by occupancy declines sustained throughout 2020 and into 1Q21Results could represent an earnings trough if occupancy continues to recover2Q21 same store occupancy up 120bps to 15
Slide 20: Industry Outlook
Industry Outlook Greeley PlaceGreeley, CO
Slide 21: Fundamentals Remain Compelling
Fundamentals Remain Compelling Long-term fundamentals for senior housing continue to be attractiveFavorable macro trends could further support senior housing recovery 20 Senior population growth remains unchanged75+ population growing by over 5 million seniors by 2025 Demographics Remain Intact New
Slide 22: Illustrative NOI Growth Potential
Illustrative NOI Growth Potential Potential for significant organic NOI growth if occupancy recovers – timing depends on speed & shape of recovery Occupancy recovery back to 2019 NOI levels (pre-COVID-19) would result in NOI growth of $25 million Occupancy has declined 8% since the onset of the COVI
Slide 23: Appendix
Appendix Augustine LandingJacksonville, FL
Slide 24: Capital Structure, Debt Maturities & Liquidity
Capital Structure, Debt Maturities & Liquidity(1) Debt information is as of 3/31/2021 and based on current unpaid principal balance.Company has two one-year extension options to extend the maturity date on $49 million, subject to a fee of 13bps of the total commitment on the second extension option.
Slide 25: 2Q 2021 Guidance – Non-GAAP Reconciliation
2Q 2021 Guidance – Non-GAAP Reconciliation 24 Net Loss Attributable to Common Stockholders ($0.11) Depreciation & amortization 0.18 FFO $0.07 Acquisition, transaction & integration expense 0.03 Normalized FFO $0.10 Amortization of deferred financing costs 0.01 Amortization of equity-based compensati
Slide 26: NOI Reconciliation – 1Q 2021 Year-over-Year
NOI Reconciliation – 1Q 2021 Year-over-Year 25 1Q21 1Q20 Total Same Store Cash NOI $29,457 $35,087 Straight-line rental revenue 95 134 Amortization of deferred community fees and other 696 304 Total NOI $30,248 $35,525 Depreciation and amortization (15,889) (17,536) Interest expense (14,353) (17,219
Slide 27: NOI Reconciliation – 1Q 2021 Quarter-over-Quarter
NOI Reconciliation – 1Q 2021 Quarter-over-Quarter 26 1Q21 4Q20 Total Same Store Cash NOI $29,457 $32,501 Straight-line rental revenue 95 95 Amortization of deferred community fees and other 696 1,118 Total NOI $30,248 $33,714 Depreciation and amortization (15,889) (15,769) Interest expense (14,353)
Slide 28: GAAP Reconciliation of FFO, Normalized FFO, AFFO and Normalized FAD
GAAP Reconciliation of FFO, Normalized FFO, AFFO and Normalized FAD 27 Primarily includes insurance recoveries and casualty-related charges.Diluted share amounts have been calculated using the treasury stock method. 1Q21 Net Loss Attributable to Common Stockholders ($7,607) Add (Deduct): Depreciatio
Slide 29: Glossary
Glossary Cash NOI MarginCash NOI margin is equal to Cash NOI divided by Cash Revenue.Discontinued OperationsDiscontinued operations consists of 28 AL/MC properties that represented the entire Managed AL/MC Properties segment prior to the fourth quarter of 2019 and were classified as discontinued ope
Slide 30: Glossary FFO, Normalized FFO, AFFO and Normalized FAD (continued)
Glossary FFO, Normalized FFO, AFFO and Normalized FAD (continued)We define Normalized FAD as AFFO less routine capital expenditures, which we view as a cost associated with the current economic return. Normalized FAD, which does not reflect debt principal payments and certain other expenses, does no
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