New Senior Investment Group Inc
New Senior Investment — Q4 2020 Earnings Presentation
32 slides from New Senior Investment's earnings presentation, Feb 25, 2021
Slide 1: Company Update February 25, 2021
Company Update February 25, 2021 Genesee GardensFlint Township, MI
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 – 11 II. COVID-19 Situation Update 12 – 15 III. Financial Update 16 – 22 IV. Appendix 23 – 31 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 Maple SuitesDover, NH
Slide 7: Executive Summary
Executive Summary 6 Almost a year in, the COVID-19 pandemic continues to impact our operations and financial results The health and safety of our residents and associates has been, and remains, our top priorityWhile new case activity trended higher through January, we have recently seen a substantia
Slide 8: Executive Summary (cont'd)
Executive Summary (cont’d) 7 It remains difficult to predict when a recovery will begin and what shape it will take We expect the pandemic to continue to impact operations and financial results in 2021However, increasing leads, declining cases and vaccine rollout provide optimism for a recovery to b
Slide 9: 2020 Summary – Navigating Through The Pandemic
2020 Summary – Navigating Through The Pandemic 8 COVID-19 Management 1 Established principles to guide actions during pandemic, including a focus on safety of our residents and associates Worked closely with operators to track and understand trends; advised & assisted on developing COVID plans Early
Slide 10: New Strategic Partnership with Atria Senior Living
New Strategic Partnership with Atria Senior Living 9 In January 2021, New Senior entered into new strategic partnership with Atria Senior Living (“Atria”)New partnership includes transitioning the management of 21 properties from Holiday Retirement to AtriaExpect to complete transitions in 2Q21Atria
Slide 11: New Senior Operator Mix
New Senior Operator Mix(1) 10 New Senior has relationships with five different operating partners Largest relationship with Holiday Retirement, the 3rd largest operator in the U.S. and primarily focused on ILNew relationship with Atria Senior Living, the 7th largest operator in the U.S. and experien
Slide 12: Benefits of Independent Living
Benefits of Independent Living 11 100% 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 ave
Slide 13: COVID-19 Situation Update
COVID-19 Situation Update
Slide 14: COVID-19 Cases & Trends
COVID-19 Cases & Trends(1) As of February 22, our portfolio has 73 active cases (60 residents and 13 associates) across 23 propertiesSpread within properties has remained relatively low – 20 of the 23 properties have less than 4 active casesAfter increasing from September through January, rate of ne
Slide 15: COVID-19 Impact on Senior Housing
COVID-19 Impact on Senior Housing COVID-19 has had a material impact on senior housing operations, occupancy and financial resultsOperators had to adapt components of the business to keep residents & employees safe, including sales & marketing, dining, activities, housekeeping, maintenance & transpo
Slide 16: Vaccine Update
15 Vaccine Update Despite Independent Living being excluded from Phase 1a of the federal vaccine program, our operators have worked tirelessly to set up and conduct vaccine clinics at our communities83% of the properties in our portfolio have now conducted at least one clinic or have a confirmed pro
Slide 17: Financial Update
Financial Update PeninsulaGig Harbor, WA
Slide 18: Observations on Recent Occupancy & Financial Trends
Observations on Recent Occupancy & Financial Trends 17 Ending occupancy down 150bps sequentially from 3Q20 to 4Q20, an improvement versus the 160bps decline in 3Q20Monthly trend worsened from October through January; move-ins declined due to surge in national COVID casesMonthly leads increased in Ja
Slide 19: Financial Results – 4Q 2020 & Full Year 2020
Full Year Results 2019 2020 YoY 88.7% 81.8% (690bps) $2,700 $2,718 0.7% 40.6% 39.6% (100bps) $137,307 $129,870 (5.4%) 5,749 5,907 2.7% $143,056 $135,777 (5.1%) $0.67 $0.71 $0.04 18 Financial Results – 4Q 2020 & Full Year 2020 4Q20: Same store cash NOI down 9.6% YoY and down 1.4% QoQAFFO per share wa
Slide 20: Lead and Move-in Trends
Lead and Move-in Trends 19 January leads reached a new pandemic-high, and were up over 100% versus the April low pointLead volume slowed in November and December due to holiday seasonality and the resurgence of U.S. COVID activityIn January, leads surged 22% vs. December as the COVID environment beg
Slide 21: Move-out and Occupancy Trends
Move-out and Occupancy Trends 20 January move-outs were flat versus December, and remained 10% below recent peak in AugustMove-outs were above historical averages from July through October, but have trended closer to typical levels sinceNon-controllable move-outs (death, higher level of care) increa
Slide 22: Expense Trends
Expense Trends 21 4Q20 Expenses versus 4Q19 Expenses Historical Operating Margins 1Q 2Q 3Q 4Q With no healthcare exposure, our IL portfolio has continued to benefit from a more flexible expense structureTotal expenses in 4Q20 were down 3.7% YoY, and down 4.7% excluding COVID-19 expenses Continuing t
Slide 23: 1Q 2021 Guidance
1Q 2021 Guidance 22 Based on latest results and current trends, we are providing guidance for 1Q21 results 1Q21 total cash NOI (includes all 103 properties): down approximately 15% YoY Comparable period of 1Q20 was not significantly impacted by COVID-19; occupancy began to decline in March 20201Q21
Slide 24: Appendix
Appendix Springs of NapaNapa, CA
Slide 25: Capital Structure, Debt Maturities & Liquidity
Capital Structure, Debt Maturities & Liquidity(1) Debt information is as of 12/31/2020 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 26: 1Q 2021 Guidance – Non-GAAP Reconciliation
1Q 2021 Guidance – Non-GAAP Reconciliation 25 Low High Net Loss Attributable to Common Stockholders ($0.08) ($0.07) Depreciation & amortization 0.19 0.19 FFO $0.11 $0.12 Acquisition, transaction & integration expense 0.01 0.01 Normalized FFO $0.12 $0.13 Amortization of deferred financing costs 0.01
Slide 27: NOI Reconciliation – 4Q 2020 Year-over-Year
NOI Reconciliation – 4Q 2020 Year-over-Year 26 Includes amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives. 4Q20 4Q19 IL Properties CCRC Total IL Properties CCRC Total Same store cash NOI (excluding COVID
Slide 28: NOI Reconciliation – 4Q 2020 Quarter-over-Quarter
NOI Reconciliation – 4Q 2020 Quarter-over-Quarter 27 Includes amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives. 4Q20 3Q20 IL Properties CCRC Total IL Properties CCRC Total Same store cash NOI (excluding
Slide 29: NOI Reconciliation – Full Year 2020 Year-over-Year
NOI Reconciliation – Full Year 2020 Year-over-Year 28 Includes amounts from two AL/MC properties that were sold in the second quarter of 2019.Includes amortization of deferred community fees and other, which includes the net change in deferred community fees and other rent discounts or incentives. 2
Slide 30: GAAP Reconciliation of FFO, Normalized FFO, AFFO and Normalized FAD
GAAP Reconciliation of FFO, Normalized FFO, AFFO and Normalized FAD 29 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.Dilu
Slide 31: 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 32: Glossary (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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