Nexliving Communities Inc · TSXV:NXLV
Nexliving Communities — Investor Presentation (August 2023)
22 slides from Nexliving Communities's investor presentation, August 2023
Slide 1: Investor Presentation
August 2023 Investor Presentation
Slide 2: Disclaimer
Disclaimer Forward-Looking Information This presentation contains certain statements, which may constitute “forward looking information” under Canadian securities law requirements and “forward looking statements” under applicable securities laws (collectively, “forward-looking information”). Forward
Slide 3: NexLiving Communities At a Glance
NexLiving Communities At a Glance 1,166 98% +10.2% 7 Years Average Building Suites Occupancy SPNOI Age * As of September 18, 2023 * As of June 30, 2023 * As of YTD Q2 2023 * Excludes properties being repositioned $2.00 $4.85 5.72% Share Price NAV per Share Implied Cap Rate * As of September 18, 2023
Slide 4: Corporate Overview
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Slide 5: Company Snapshot
Company Snapshot Description Annualized NOI and Margin NexLiving is focused on the acquisition and management of 1 0.0 65% 8.8 multi-family rental properties in Atlantic Canada and Ontario: 9 .0 8 .0 7.7 • Targeting low and mid-rise properties, with close 7 .0 6.7 proximity to nature trails and park
Slide 6: Experienced Management Team and Board of Directors
Experienced Management Team and Board of Directors Management & Operating Team Board of Directors STAVRO STATHONIKOS, President & CEO RICHARD TURNER, Chairman • 17-year capital markets career with broad experience in the areas of • President, Chairman and CEO of Titanstar Investment Group Inc. insti
Slide 7: Company Strategy
Company Strategy NexLiving
Slide 8: The Secondary Market Opportunity
The Secondary Market Opportunity § Rising home prices and ownership costs, especially in core markets, driving higher rental rates across the country Strong Macro § Target markets experiencing significant rent growth as a results of out-migration from major cities Backdrop § Increased federal immigr
Slide 9: NexLiving Capitalizing on Opportunity
NexLiving Capitalizing on Opportunity Acquire Increase Balanced Focused on ROIC and Smart Asset Value Capital Structure Per Share Metrics § Acquire assets in secondary § Active property management § Well-laddered debt maturity § Growing NAV and FFO per markets with strong population profile share th
Slide 10: High Organic Free Cash Flow
High Organic Free Cash Flow Young Portfolio Results in Lower Capex NexLiving offers a unique value proposition with a young portfolio with below market rents located primarily in favorable landlord markets: • Overall capex per unit is dramatically lower than those of public REIT peers due to young p
Slide 11: Organic Growth
Organic Growth Sustainable Organic Growth NexLiving offers a unique value proposition situated in the highest population growth region of the country: • NexLiving has reported above average organic growth without relying on one-time occupancy gains • NexLiving has operated at 98-99% occupancy since
Slide 12: Advantageous Corporate Structure
Advantageous Corporate Structure Capital Structure Strategy NexLiving’s structure as a corporation allows it to retain internally generated cash flow, which facilitates the creation of a substantial internal capital pool. The Company’s lower risk capital structure drives higher shareholder returns a
Slide 13: Strong Track Record of Creating Value per Share
Strong Track Record of Creating Value per Share Nex has consistently grown NAV per share … … and cash flow per share … $80 $5.50 $4.81 $0.14 $0.14 $0.12 $70 $4.34 $0.10 $0.11 $0.07 $0.07 $0.06 $4.50 $60 $0.04 $3.28 $3.50 $50 $ Millions $40 $1.93 $2.50 $(0.04) $30 $1.32 $1.50 $(0.14) $20 $(0.20) $0.5
Slide 14: New Brunswick
New Brunswick NexLiving Nag
Slide 15: Population and Employment
Population and Employment Employment by Sector New Brunswick Population Growth 2008-2023 Construction 8% Manufacturing “New Brunswick added more people in the past 24 7% Other Services Other Goods- months than the previous 29 years” 32% Producing 5% – CBC News, September 29, 2023 30,000 Healthcare 1
Slide 16: Vacancy, Rents and Population Growth by City
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Edmonton Moncton 5.4% Saskatoon Halifax Regina KW & Cambridge TSXV: NXLV Winnipeg PEI Vacancy Rates Calgary Calgary Oshawa London 2.6% Lethbridge Oshawa 3.0%2.9% Ottawa Vancouver Montréal Edmonton Canada Lethbridge 1.9% London Saskatoo
Slide 17: Ontario
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Slide 18: Ontario Strategy Overview
Ontario Strategy Overview Secondary Markets Value-Add Strategy Post Renovation Units § Strategy to acquire midcap buildings in secondary markets that have a significant rental uplift opportunity. § Drive meaningful increase in property NOI by: • strategic capital spending • unlocking current vs. mar
Slide 19: Lindsay Acquisition 18 Months Later
Lindsay Acquisition 18 Months Later NOI Growth ($000s) Value-add Program Sensitivities $845k Cap Rate Building Value April 2022 18 Months 3-Year Goal Acquisition Post-Acquisition 70% Renovation $685k 5.00% - 13.7 16.9 4.75% - 14.4 17.8 4.50% - 15.2 18.8 $435k 4.25% - 16.1 19.9 4.00% - 17.1 21.1 3.75
Slide 20: Capital Structure Summary
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Slide 21: Balanced Capital Structure
Balanced Capital Structure Current Capitalization Debt Maturity Profile $70 4.60% 4.47% 5. 00% 4. 50% $60 3.68% 4. 00% 3.38% $50 3. 50% $ Millions $40 3. 00% 2.18% 2. 50% $30 1.76% 2. 00% $20 1. 50% 1. 00% $10 0. 50% $- 0. 00% 2023 2024 2025 2026 2027 Thereafter Mo rtgage Debt WA IR Note: As of June
Slide 22: Non-IFRS Financial Measures
Non-IFRS Financial Measures Non-IFRS Financial Measures This presentation contains several non-IFRS financial measures and ratios that management believes provide relevant supplementary information to both management and investors in measuring the operating and financial performance of the Company.
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