Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (November 2010)
21 slides from Sonida Senior Living's investor presentation, Nov 4, 2010
Slide 1: Capital Senior Living Corporation
0 Capital Senior Living Corporation
Slide 2: Forward-Looking Statements
1 Forward-Looking Statements The forward-looking statements in this presentation are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company's ability to complete the refinancing of certain of our wholly owned co
Slide 3: Company Overview
2 Company Overview Capital Senior Living owns and/or operates 77 communities in 23 states with the ability to serve 11,000 residents70 of these communities are owned or leased with resident capacity of 9,453Achieved 95% approval rating in 2009 residents' satisfaction survey Owned Leased Joint Ventur
Slide 4: The Capital Advantage: Senior Living Options - Independent Living
3 The Capital Advantage: Senior Living Options Average 131 units per IL community with large common areas and amenitiesSupportive services, wellness programs, social, recreational, and educational events Average monthly rate of $2,200 100% private pay Average length of resident stay is 34 months Ind
Slide 5: The Capital Advantage: Senior Living Options - Assisted Living
4 The Capital Advantage: Senior Living Options Average 66 units per AL community Assistance with activities of daily living such as medication reminders, bathing, dressing and grooming Average monthly rate of $3,400 96% private pay Average length of resident stay is 26 months Assisted Living - 32% o
Slide 6: Resident Demographics at CSU Communities
5 Resident Demographics at CSU Communities Average age of resident: 85 yearsAverage age of resident moving in: 82 yearsAverage stay period: 2-3 yearsPercent of female residents: 80%Resident turnover is primarily attributed to death or need for higher care
Slide 7: The Capital Advantage: Established Operating Platform
6 The Capital Advantage: Established Operating Platform (Resident Capacity by State) CA. 407 AR. 173 AZ. 189 CT. 178 FL. 182 IA. 122 IL. 648 IN. 1,227 KS. 169 LA. 136 MI. 346 MN. 176 MO. 348 MS. 143 NC. 463 SC. 436 NE. 596 NJ. 98 NY. 387 OH. 1,228 OK. 143 TX. 2,852 VA. 153
Slide 8: The Capital Advantage: Favorable Demographics
7 The Capital Advantage: Favorable Demographics US population 75+ years old is estimated to grow by 3.8 million through 2015Only 1.8 million units serving a population of 18.6 million seniorsCurrent 9.6% penetration rate implies demand growth of 45,000 units per year 2007 2015 East 18.6 22.4 (Popula
Slide 9: The Capital Advantage: Favorable Supply Trends
8 The Capital Advantage: Favorable Supply Trends Source: 2010 ASHA/NIC Seniors Housing Construction Trends Report 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 14629 21895 24810 27007 22342 23566 11651 11165 9442 11513 13
Slide 10: The Capital Advantage: Competitive Strengths
9 The Capital Advantage: Competitive Strengths Experienced on-site, regional, and corporate managementLarger company economies of scale and systems that yield operating efficiencies in highly fragmented industryStrong institutional relationships (debt and equity) with flexible ownership structuresNi
Slide 11: The Capital Advantage: Strategy
10 The Capital Advantage: Strategy Maximize the value of our operations.Enhance geographic concentration and maximize competitive strengths within each of our marketsIncrease levels of care through conversions to AL or MC units, acquisition of communities with levels of care and expansion of ancilla
Slide 12: 2010 Business Plan
11 2010 Business PlanIncrease occupancy and rateExpense ManagementExternal GrowthJV AcquisitionsLeasesDirect acquisitions into Company This 2010 Business Plan is focused on operations, growth and enhancing shareholder value.
Slide 13: Growth Initiatives: Joint Venture Acquisitions
12 Growth Initiatives: Joint Venture Acquisitions Joint venture partnersBlackstone Real Estate AdvisorsGE Healthcare Financial ServicesPrudential Real Estate InvestorsSeven communities are owned with joint venture partnersCo-invest with joint venture partners to participate in economics:10% Capital
Slide 14: Example of Joint Venture Economics
13 Example of Joint Venture Economics Venture CSU Partner NOI $ 8,000,000 Cap Rate 8.0% Purchase Price $100,000,000 Debt $ 70,000,000 Equity $ 30,000,000 $3,000,000 $27,000,000 Revenues $ 24,000,000 Mgt. Fees (5%) $1,200,000 ROE (14.8%) $ 445,000 $ 4,005,000 Total First Year Return $1,645,000 $ 4,00
Slide 15: Growth Initiatives: Acquisition/Lease Transactions
14 Growth Initiatives: Acquisition/Lease Transactions Example of $100 million acquisition/lease transaction:
Slide 16: Recent Significant Transactions
15 Recent Significant Transactions Incremental Impact Incremental Impact Incremental Impact (in millions, except number of properties)
Slide 17: Income Statement: Q3 Comparison
16 Income Statement: Q3 Comparison As adjusted in press release
Slide 18: Balance Sheet Strength
17 Since 2006, CSU has significantly strengthened its balance sheetReduced total mortgage debt by $75.0 millionRefinanced or retired $162 million of variable rate debtReduced average interest rate from 7.5% to 6.0% fixedNo mortgage maturities through July 2015 on all fixed rate debt Balance Sheet St
Slide 19: Balance Sheet
18 Balance Sheet Balance Sheet As of September 30, 2010 (in millions) As of September 30, 2010 (in millions)
Slide 20: Investment Highlights
19 Investment Highlights Favorable demographics and attractive industry fundamentalsExperienced management team with demonstrated ability to operate, acquire and developPredominately private pay with minimal federal regulationStrong same-store community net income growthAcquisition opportunities in
Slide 21: Capital Senior Living Corporation
20 Capital Senior Living Corporation
Capital Senior Living — Investor Presentation (November 2010) on 6ix