Nexliving Communities Inc · TSXV:NXLV
Nexliving Communities — Merger or Acquisition (January 2024)
15 slides from Nexliving Communities's merger presentation, Jan 22, 2024
Slide 1: Devcore Portfolio Acquisition
Devcore Portfolio Acquisition January 22, 2024
Slide 2: Disclaimer
Disclaimer Unless otherwise indicated, all references in this presentation to “NexLiving”, “we”, “our”, “us”, the “Company” or similar terms refer to NexLiving Communities Inc. and its consolidated subsidiaries. Forward-Looking Information This presentation contains certain statements, which may con
Slide 3: Transaction Overview
Transaction Overview § Acquisition of a private portfolio of multi-family assets, located across high-growth secondary markets in Québec & Ontario Transaction Summary ‒ The acquisition portfolio produced $13.1 million in revenue for the last 12 months as of September 30, 2023 § Acquisition portfolio
Slide 4: Transaction Highlights
Transaction Highlights Increased Scale and § Portfolio size increases from 1,166 to 2,157 units (~85% increase) Meaningful Financial § In-Place NOI(1) increases from approximately ~$12 to ~$22 million (>80% increase) Accretion § Fully diluted In-Place FFO per share(1) accretion greater than 30% § Ne
Slide 5: Acquisition Portfolio
Acquisition Portfolio Portfolio Overview § The transaction includes 16 properties located across Gatineau, Cornwall, Val-D’Or, Thurso, Embrun, and Limoges ‒ Total of 991 units, average property size of 62 units ‒ Property weighted average year built of 1991(1) with ~450 units renovated over the past
Slide 6: Acquisition Portfolio
Acquisition Portfolio § Transaction portfolio consists of strategically located properties in Southern Québec and Eastern Ontario § Assets consist of a mix of newly constructed buildings, renovated units, and value-add upgrade opportunities Acquisition Portfolio Summary Acquisition Portfolio Locatio
Slide 7: Geographic Diversification
Geographic Diversification (Vend-in portfolio) Standalone Standalone Combined Business New Brunswick Québec New Brunswick Ontario Ontario Québec Ontario 10% Assets by 32% 31% Province(1) 49% % of units 68% 90% 20% Moncton National Capital (Ottawa-Gatineau) National Capital (Ottawa-Gatineau) Saint-Jo
Slide 8: Significant Foothold in Canada's High-Growth Secondary Markets
Moncton Edmonton 10.1% Halifax Saskatoon Oshawa Regina 7.9% KW & Cambridge Winnipeg Calgary Calgary London Oshawa 5.9% 2.6% Saskatoon Ottawa Edmonton Montréal 2022 Vacancy Rates Vancouver London Ottawa Val D'Or Saint John Moncton 3.5% Toronto Cornwall Winnipeg Saint John 1.7%1.7%1.7%1.6%1.6% Regina
Slide 9: Immediate Scale and Financial Accretion
Immediate Scale and Financial Accretion In-Place Financials (C$ MM, unless noted) (Vend-in portfolio) In-Place In-Place In-Place Combined Units (#) 1,166 991 2,157 Monthly revenue / unit (C$) ~$1,400 ~$1,300 ~$1,350 (1) Revenue $20 $15 $35 (2) Property operating expenses ($8) ($6) ($14) Net operatin
Slide 10: Combined Financial Metrics
Combined Financial Metrics Combined NOI(1) (C$ MM) Combined FFO(1) (C$ MM) % >80 0% >16 Average Cost of Debt(2) (%) Diluted FFO Per Share(1,3) (C$) (48 >30% bp ) The transaction is highly additive and accretive to NexLiving shareholders providing an immediate lift to the Company’s Combined In-Place
Slide 11: Attractive Mortgage Portfolio
Attractive Mortgage Portfolio Mortgage Maturity Schedule(1) NexLiving debt (C$ MM) Devcore debt (C$ MM) Weighted average cost of maturing debt (%) $105.2 5.03% $49.9 $69.3 $67.0 3.72% $30.2 $45.6 $45.7 2.86% 2.91% $6.4 $50.8 2.02% $55.3 1.75% $39.2 $29.1 $36.8 $8.0 $16.6 $18.5 $8.0 2024 2025 2026 20
Slide 12: Improved Positioning Relative to Peers
Improved Positioning Relative to Peers LTM G&A as % of NOI(1) LTM NOI Margin(1) Weighted Average Cost of Debt(2) LTM FFO Public Trading Multiples(1) Source: Company filings, equity research, and S&P Capital IQ as of January 19, 2024 Note: Peer set includes Boardwalk, CAPREIT, InterRent, Killam, Main
Slide 13: Post Transaction Board Positioned to Succeed
Post Transaction Board Positioned to Succeed § Served as Co-CEO of Farm Boy Inc. and played a key role in scaling the business and Jeff York ultimate $800 million sale to Empire Co. Ltd in 2018 Chairman § Former President and Chief Operating Officer of Giant Tiger Stores Rick Turner § President, Cha
Slide 14: Key Takeaways
Key Takeaways Scale & Strategic Geographic Diversification Post transaction portfolio of 2,157 units concentrated in high-growth secondary markets Attractive Financial Metrics & Accretion Greater than 30% FFO/share accretion(1), ~48 bps reduction in average mortgage interest(2), larger cash flow bas
Slide 15: Non-IFRS Measures
Non-IFRS Measures Definitions Reconciliation This presentation contains several non-IFRS financial measures and Reconciliation of In-Place Net Operating Income Three months ended September 30, 2023 ratios that management believes provide relevant supplementary Revenue 4,747,734 information to both m
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