Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (November 2016)
24 slides from Sonida Senior Living's investor presentation, Nov 1, 2016
Slide 1: Capital Senior Living: A Leading Pure-Play Senior Housing Owner-Operator
Exhibit 99.2 Capital Senior Living A Leading Pure-Play Senior Housing Owner-Operator
Slide 2: Forward-Looking Statements
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: Non-GAAP Financial Measures
Non-GAAP Financial Measures • Adjusted EBITDAR, Adjusted EBITDAR Margin, Adjusted Net Income and Adjusted CFFO are financial measures of operating performance that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures may have mater
Slide 4: Capital Senior Living Investment Rationale
Capital Senior Living Investment Rationale 1 Attractively Positioned in the Highly Fragmented Senior Housing Market 2 Executing a Long-Term, Sustainable Growth Strategy with a Focus on Real Estate Ownership 3 Capital Plan Supports Long-Term Growth Initiatives 4 Track Record of Strong Growth and Uniq
Slide 5: Attractively Positioned in the Highly Fragmented Senior Housing Market
• Attractively Positioned in the Highly 1 Fragmented Senior Housing Market 5
Slide 6: Top-10 Operator and Pure-Play Senior Housing Company
Top-10 Operator and Pure-Play Senior Housing Company Capital Senior Living operates 129 communities in geographically concentrated regions with the capacity to serve 16,300 residents Portfolio Mix (Average Units) MN. Resident Capacity By State 173 MA. WI. NY. 302 741 MI. 537 244 CT. IA. 42.9% NE. NJ
Slide 7: One of the Largest Senior Housing Owners by Percentage of Ownership
One of the Largest Senior Housing Owners by Percentage of Ownership Ownership Evolution Advantages to Real Estate Ownership Owned Leased Joint Venture Maximizes cash flow and real estate value by providing valuation support 129 Total 129 Total Properties Properties Stronger margin profile 77 Total 4
Slide 8: CSU's Pure-Play Private-Pay Senior Housing Model Has Many Similarities to Multi-Family and Lodging
CSU’s Pure-Play Private-Pay Senior Housing Model has Many Similarities to the Multi-Family and Lodging Sectors, While Historically Providing Investors with Higher Returns Key Housing Sector Drivers Benchmarking the Housing Sector Multi-Family Lodging Senior Housing M-RevPAF (1) Expected Actual & Mom
Slide 9: The Senior Living Market Offers Attractive Long Term Fundamentals
The Senior Living Market Offers Attractive Long Term Fundamentals... U.S. Seniors Population Trends (75+ years old) 35,000 • U.S. population 75+ years old is expected to increase from ~6% of 30,000 total current population to 12% by 2030 25,000 • Current penetration rate implies 20,000 demand growth
Slide 10: ...and a Highly Constructive Current Operating Environment
...and a Highly Constructive Current Operating Environment Occupancy Stabilizing Across the Country Senior Housing Rent Growth at Seven Year Highs 100.0% 4.5% 95.0% 3.6% 90.0% 2.7% 85.0% 1.8% 80.0% 0.9% 75.0% 0.0% 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 Senior
Slide 11: CSU Has Limited Exposure to the Top MSAs with the Highest Levels of Construction
CSU Has Limited Exposure to the Top 10 MSAs with the Highest Levels of Construction Senior Housing Construction vs. Inventory Across the U.S. Top 10 Highest Construction in MSAs Construction CSU Metro CSU Units vs. Inventory Occupancy Baton Rouge, LA 28.4 % -- -- Charleston, SC 26.1 % -- -- Austin,
Slide 12: Executing a Long-Term, Sustainable Growth Strategy with a Focus on Real Estate Ownership
• Executing a Long-Term, Sustainable Growth 2 Strategy with a Focus on Real Estate Ownership 12
Slide 13: Executing a Long-Term, Sustainable Growth Strategy with a Focus on Real Estate Ownership
Executing a Long-Term, Sustainable Growth Strategy with a Focus on Real Estate Ownership Accretive Acquisitions Core Organic Growth Increasing Real Estate Conversions Ownership 13
Slide 14: Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment
Core Organic Growth Driven by Occupancy, Pricing Improvements and Cost Containment Increasing Occupancy and Average Monthly Rent Trends Average Rent Occupancy % $3,600 90% $3,400 88% $3,200 86% $3,000 $2,800 84% Core Organic Growth Occupancy improvement where opportunity exists Increasing average re
Slide 15: Strategic Accretive Acquisitions have Achieved 16% Average Cash-On-Cash Returns
Strategic Accretive Acquisitions have Achieved 16% Average Cash-On-Cash Returns Year 1 Cash-On-Cash Returns 17.6% 16.5% 15.8% 15.2% 15.1% 14.1% 2011 2012 2013 2014 2015 2016 YTD Total Purchase $83.4 $181.3 $150.4 $160.2 $162.5 $138.4 Price ($mm) Communities 7 17 11 8 9 8 Units 551 1,367 881 819 791
Slide 16: Increasing Owned Portfolio Provides Increased Financial Flexibility
Increasing Owned Portfolio Provides Increased Financial Flexibility Capital Senior Living’s Ownership History Appreciated Value of Supplemental Loan Properties Owned Leased Joint Venture Original Value Incremental Value Added 129 129 117 121 112 $198.9 101 3 46 3 50 $50.3 84 50 50 $140.9 77 3 50 7 5
Slide 17: Conversions Drive Significant Improvements in Key Financial Metrics
Conversions Drive Significant Improvements in Key Financial Metrics Revenue and NOI Growth – Expected Completion of Units Currently Out of Service (2) 3Q16 vs. 2Q14 (Period prior to Conversions)(1) 76 units were placed in service in September/October2016 and ~708 total units remain out of service; w
Slide 18: Capital Plan Supports Long-Term Growth Initiatives
• Capital Plan Supports Long-Term Growth 3 Initiatives 18
Slide 19: Transaction Overview
Transaction Overview Overview of the Transaction Existing % of Owned Real Estate to PF % of Owned Real Estate 1. CSU will buy back four currently leased properties Owned Leased • Purchase Price: $85mm • CFFO accretion of $1.9mm in Year 1 129 Total 129 Total Properties Properties Benefits of the Tran
Slide 20: Track Record of Strong Growth and Uniquely Positioned for Continued Success
• 4 Track Record of Strong Growth and Uniquely Positioned for Continued Success 20
Slide 21: Strategy and Execution Have Delivered Strong Growth
Strategy and Execution Have Delivered Strong Growth Revenue (1) Adjusted EBITDAR ($ In Millions) ($ In Millions) $144 $412 $133 $384 $120 $110 $114 $106 $343 $332 $92 $305 $305 $69 $257 $197 2010A 2011A 2012A 2013A 2014A 2015A 2015 Q3 2016 Q3 2010A 2011A 2012A 2013A 2014A 2015A 2015 Q3 2016 Q3 YTD Y
Slide 22: Healthy Balance Sheet to Support Future Initiatives
Healthy Balance Sheet to Support Future Initiatives As of September 30, 2016 (in millions) Assets Liabilities & Equity Cash and Securities $ 43.1 Current Liabilities $ 71.8 Other Current Assets 30.8 Long-Term Debt 849.8 Total Current Assets 73.9 Other Liabilities 63.6 Fixed Assets 1,005.0 Total Liab
Slide 23: Ample Financial Capacity to Pursue Growth Initiatives
Ample Financial Capacity to Pursue Growth Initiatives • CSU has ample financial capacity to pursue all initiatives contemplated under its growth strategy • No near term debt maturities • Acquisitions financed with attractive fixed rate non-recourse mortgage loans Debt Maturities $400,000 (In thousan
Slide 24: Capital Senior Living Investment Rationale
Capital Senior Living Investment Rationale 1 Attractively Positioned in the Highly Fragmented Senior Housing Market Accretive Acquisitions 2 Executing a Long-Term, Sustainable Growth Strategy with a Focus on Real Estate Ownership Core Organic 3 Capital Plan Supports Long-Term Growth Growth Initiativ
Capital Senior Living — Investor Presentation (November 2016) on 6ix