Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (September 2017)
27 slides from Sonida Senior Living's investor presentation, Sep 5, 2017
Slide 1: Capital Senior Living
Exhibit 99.1 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 is a financial valuation measure and Adjusted Net Income and Adjusted CFFO are financial performance measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures may have materia
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
1 Attractively Positioned in the Highly 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 16,500 residents Portfolio Mix (Average Units) MN. Resident Capacity By State 173 MA. WI. NY. 323 741 MI. 603 173 CT. IA. NE. NJ.238 1
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 Properties Stronger margin profile 77 Total Properties 46 Eliminat
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) • U.S. population 75+ years old is expected to increase from ~6% of total current population to 12% by 2030 • Current penetration rate implies demand growth of ~40K units per annum Ind
Slide 10: ...and a Highly Constructive Current Operating Environment
...and a Highly Constructive Current Operating Environment Occupancy Stabilizing Across the Country Senior Housing Rent is Seeing Growth After Recent Declines Senior Housing IL AL Industry Supply is Stabilizing in IL and Senior Housing Since 2Q 2016, overall industry supply has flat lined across Sen
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 CSU Metro vs Inventory Units Occupancy Trenton, NJ 25.7% - - Fort Myers, FL 24.6% - - Charleston, SC 24.3
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 % $3,800 90% $3,600 88% $3,400 86% $3,200 84% $3,000 82% $2,800 80% Core Organic Growth Occupancy improvement where opportunity exists Increa
Slide 15: Laser Focused on Execution - Taking Immediate Action to Drive Sustainable Profitable Growth
Laser Focused on Execution - Taking Immediate Action to Drive Sustainable Profitable Growth and Enhance Shareholder Value Executing comprehensive strategy to drive higher revenues, enhance cash flow and maximize value of real estate portfolio Instituting new operating model and realigning sales team
Slide 16: Moving to Centralized Platform to Improve Community Operations While Serving New Residents
Moving to Centralized Platform to Improve Community Operations While Serving New Residents Implementing immediate occupancy growth plans and budget recovery goals for each community Leveraging operational scale to optimize supply chain and large expense categories Revised sales and marketing structu
Slide 17: Upholding Highest Standards of Core Pillars to Improve Resident Experience
Upholding Highest Standards of Core Pillars to Improve Resident Experience The Capital Operating System drives all facets of our community operations Quality Service People Growth Cost Continuously focused on improving resident satisfaction by upholding the highest quality standards for each communi
Slide 18: 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% 15.2% 15.1% 15.8% 15.0% 14.1% 2011 2012 2013 2014 2015 2016 2017 YTD Total Purchase $ 83.4M $ 181.3 $ 150.4 $ 160.2 $ 162.5 $ 138.4 $ 85.0 Price ($mm) Communities 7 17 11 8 9 8 4 U
Slide 19: 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 $296.0 3 50 46 3 50 50 50 $75.9 3 7 50 $140.9 49 45 79 83 $53.4 67 71 $220
Slide 20: Conversions Drive Significant Improvements in Key Financial Metrics
Conversions Drive Significant Improvements in Key Financial Metrics Revenue and NOI Growth – Expected Completion of Units Out of Service (2) 2Q17 vs. 2Q14 (Period prior to Conversions)(1) 776 total units were out of service at the beginning of 2017; when stabilized, the total 776 units are expected
Slide 21: Capital Plan Supports Long-Term Growth Initiatives
3 Capital Plan Supports Long-Term Growth Initiatives 21
Slide 22: Transaction Overview
Transaction Overview Overview of the Transaction Percentage of Owned Real Estate 1. CSU purchased four previously leased properties in January Owned Leased 2017 129 Total 129 Total • Purchase Price: $85mm Properties Properties • CFFO accretion of $3.0mm in Year 1 50 46 Benefits of the Transaction Ma
Slide 23: Track Record of Strong Growth and Uniquely Positioned for Continued Success
4 Track Record of Strong Growth and Uniquely Positioned for Continued Success 23
Slide 24: Strategy and Execution Have Delivered Strong Growth
Strategy and Execution Have Delivered Strong Growth Revenue (1) Adjusted EBITDAR ($ In Millions) ($ In Millions) $448 $153 $144 $412 $133 $384 $120 $110 $343 $92 $305 $69 $257 $197 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2010A 2011A 2012A 2013A 2014A 2015A 2016A Adjusted CFFO (2) ($ In Millions) $
Slide 25: Healthy Balance Sheet to Support Future Initiatives
Healthy Balance Sheet to Support Future Initiatives As of June 30, 2017 (in millions) Assets Liabilities & Equity Cash and Securities $ 29.6 Current Liabilities $ 81.1 Other Current Assets 26.0 Long-Term Debt 939.2 Total Current Assets 55.6 Other Liabilities 76.4 Fixed Assets 1,111.9 Total Liabiliti
Slide 26: 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 $500,000 (In thousan
Slide 27: 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 (September 2017) on 6ix