New Senior Investment Group Inc
New Senior Investment — Q3 2020 Earnings Presentation
28 slides from New Senior Investment's earnings presentation, Oct 30, 2020
Slide 1: Company Update October 30, 2020
Company Update October 30, 2020 Stone LodgeBend, OR
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. Executive Summary & Company Overview 4 – 7 II. COVID-19 Situation Update 9 – 11 III. Financial Update 13 – 20 IV. Reconciliations and Glossary 22 – 27 2
Slide 4: Executive Summary & Company Overview
Executive Summary & Company Overview Madison EstatesSan Antonio, TX
Slide 5: Executive Summary
Executive Summary 4 The COVID-19 pandemic continues to impact our operations and financial results New case activity has trended higher since mid-September but remains low as a percentage of total resident populationAs of October 28, our operators reported 34 active resident cases across 10 properti
Slide 6: 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 7: Geographically Diversified Portfolio
Geographically Diversified Portfolio Portfolio of 103 properties located in 36 different statesProperties located in markets with favorable demographic trends Properties predominately located outside of major metropolitan areas66% of NOI generated from properties located in secondary and tertiary ma
Slide 8: Recent Company Updates
7 Recent Company Updates The Company has evolved significantly since 2019 and is now focused on navigating through the pandemic Completed internalization of managementContinued corporate governance improvements including appointment of new independent directorAddressed underperforming AL/MC portfoli
Slide 9: COVID-19 Situation Update
COVID-19 Situation Update Copley PlaceCopley, OH
Slide 10: Known COVID-19 Cases & Status
Known COVID-19 Cases & Status As of October 28, our operators reported 41 active cases across 14 properties (34 residents and 7 associates)The 34 active resident cases represent 0.3% of our total current resident populationCOVID-19 transmission within properties has remained low, as only 3 of the 14
Slide 11: Property Protocols
Property Protocols Property Protocols Roll out of latest protocols currently underway. Certain protocols may vary by property depending on operator, state or local mandates, or presence of COVID-19 cases. Typical Operating Environment Initial Protocols Initial Recovery Phases Latest Protocols(1) Tim
Slide 12: Trend of New COVID-19 Cases
Trend of New COVID-19 Cases Since the start of the pandemic, the weekly number of new cases in our properties has remained relatively low Average has remained at 6 new cases per week (excluding our one CCRC in downtown Philadelphia)We continue to believe this is a result of effective operator protoc
Slide 13: Financial Update
Financial Update The JeffersonMiddleton, WI
Slide 14: Key Observations From COVID-19 Impact To Date
Key Observations From COVID-19 Impact To Date 13 Occupancy:Improving Occupancy Trend Expenses:Tightly Managing Expenses Earnings:Other Savings Offsetting NOI Decline No healthcare component in IL, which results in fewer interactions between residents and staffDespite uptick in active COVID-19 cases
Slide 15: Summary of 3Q 2020 Results & October Trends
Summary of 3Q 2020 Results & October Trends 14 Ending occupancy down 160bps sequentially from 2Q20 to 3Q20, down 540bps since February (pandemic start)Move-in volume recovered to pre-COVID levels in July and August; October trending to be best month since pandemicMove-outs are trending above histori
Slide 16: Year-to-Date Results and Financial Results – 3Q 2020
Year-to-Date Results YTD2019 YTD2020 YoY 88.5% 83.3% (520bps) $2,697 $2,719 0.8% 40.6% 39.8% (80bps) $102,804 $98,859 (3.8%) $102,804 $101,615 (1.2%) 4,299 4,417 2.7% $107,103 $103,276 (3.6%) $107,103 $106,032 (1.0%) $0.49 $0.53 $0.04 15 Financial Results – 3Q 2020 Same store cash NOI down 7.6% YoY
Slide 17: Lead and Move-in Trends
Lead and Move-in Trends 16 2020 Monthly Lead Trends 2020 Monthly Move-In Trends +67% Total lead volume in September increased 67% from April low pointAfter reaching low point in April, leads grew quickly from May to July and held steady through the rest of 3Q20October leads pacing to increase from S
Slide 18: Move-Out and Occupancy Trends
Move-Out and Occupancy Trends 17 Move-out volume was at historically low levels in 2Q20, but trended higher throughout 3Q20Including October estimate, move-outs will have trended above historical averages for four consecutive monthsDespite recent increase, total year-to-date move-outs are still down
Slide 19: Expense Trends
18 Expense Trends With no healthcare exposure, our IL portfolio has continued to benefit from a more flexible expense structureOperators continue to tightly manage occupancy-related and other controllable expenses (marketing, maintenance) Total expenses in 3Q20 were down 1.4% YoY and down 3.0% exclu
Slide 20: Capital Structure, Debt Maturities & Liquidity
Capital Structure, Debt Maturities & Liquidity(1) Debt information is as of 9/30/2020 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 21: Raising Full Year 2020 Expectations
Raising Full Year 2020 Expectations 20 Revised full year 2020 expectations based on results to date and recent trends3Q20 results were at the top end of our expectations primarily due to occupancy trend and ongoing expense savingsOccupancy trends pacing to improve in October, but 4Q20 impacted by lo
Slide 22: Reconciliations & Glossary
Reconciliations & Glossary Echo RidgeKnoxville, TN
Slide 23: Full Year 2020 Expectations – Non-GAAP Reconciliation
Full Year 2020 Expectations – Non-GAAP Reconciliation 22 Low High Net Loss Attributable to Common Stockholders ($0.09) ($0.06) Gain on sale of real estate (0.24) (0.24) Depreciation & amortization 0.79 0.79 FFO $0.46 $0.49 Compensation expense related to transition awards 0.02 0.02 Loss on extinguis
Slide 24: NOI Reconciliation – 3Q 2020 Year-over-Year
3Q20 3Q19 Managed IL Properties Other Properties Total Managed IL Properties Other Properties Total Same Store Cash NOI (excluding COVID-19 related expenses) $ 32,250 $ 1,490 $ 33,740 $ 34,222 $ 1,450 $ 35,673 COVID-19 related expenses (785) - (785) - - - Same Store Cash NOI 31,465 1,490 32,955 34,2
Slide 25: NOI Reconciliation – 3Q 2020 Quarter-over-Quarter
NOI Reconciliation – 3Q 2020 Quarter-over-Quarter 24 Includes amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives. 3Q20 2Q20 Managed IL Properties Other Properties Total Managed IL Properties Other Propert
Slide 26: GAAP Reconciliation of FFO, Normalized FFO, AFFO and Normalized FAD
GAAP Reconciliation of FFO, Normalized FFO, AFFO and Normalized FAD 25 Primarily includes insurance recoveries and casualty related charges.Includes amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives. 3Q2
Slide 27: 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 28: 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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