Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Capital Senior Living — Investor Presentation (October 2005)
28 slides from Sonida Senior Living's investor presentation, Oct 12, 2005
Slide 1: Capital Senior Living Corporation
CAPITAL SENIOR LIVING CORPORATION
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 find suitable acquisition properties at favorable terms, fin
Slide 3: Investment Highlights
Investment Highlights Strong demographic trends and improving metrics Highly fragmented industry with acquisition opportunities Established national platform High quality communities at affordable rates Predominately private pay with minimal federal regulation Financial leverage through joint ventur
Slide 4: Company Overview
Company Overview Resident Capacity Resident Capacity Resident Capacity Resident Capacity Number of Communities IL AL SN Total Wholly Owned 29 4,245 416 170 4,831 JV Ownership/Mgmt. 4 454 244 -- 698 Leased 6 1,052 117 -- 1,169 Management Only 15 1,562 408 -- 1,970 _______ ___________ _______ _______
Slide 5: Senior Living Industry Demographics
Source: U.S. Census Bureau Senior Living Industry Demographics Estimated Growth in Elderly Population 2000 - 2030 17.9 18.5 19.6 22.3 27.0 32.6 16.6 8.9 7.4 6.7 6.4 5.8 4.9 4.2 0 10 20 30 40 2000 2005 2010 2015 2020 2025 2030 Population Age 75+ Population Age 85+ Population (M)
Slide 6: Senior Housing Construction
Senior Housing Construction Total Units and Industry Occupancy Percentages Source: American Seniors Housing Association Seniors Housing Construction Report, 2005 NIC Key Financial Indicators 1997 1998 1999 2000 2001 2002 2003 2004 2005 IL 9671 10206 13042 12415 9274 5077 6028 7216 6843 AL 22380 3266
Slide 7: Senior Living Industry
Senior Living Industry Seniors Housing Property Supply(21,203 properties) (1) Source: American Seniors Housing Association Seniors Housing Construction Report, 2005 Source: American Seniors Housing Association Seniors Housing Statistical Handbook Assisted Living - 35% Independent Living - 30% Senior
Slide 8: Effective Demand for Senior Living
Source: PriceWaterhouseCoopers/National Investment Conference Effective Demand for Senior Living Senior Living Industry Beds (000s) Elderly Population With Income Over $15,000 2000 2005 2010 2015 2020 2025 2030 Independent Living 640 695 750 870 990 1190 1390 Skilled Nursing 670 720 770 865 960 1135
Slide 9: The Capital Advantage: Independent Lifestyles
The Capital Advantage: Independent Lifestyles
Slide 10: Resident Demographics at CSU Communities
Resident Demographics at CSU Communities Average age of resident: 85 years Average age of resident moving in: 82 years Average stay period: 2-3 years Resident turnover is primarily attributed to death or need for higher care 80% of residents are women
Slide 11: The Capital Advantage: High-Quality Communities
The Capital Advantage: High-Quality Communities
Slide 12: The Capital Advantage: Established National Platform
The Capital Advantage: Established National Platform Wholly Owned (29) JV Ownership/Managed (4) Leased (6) Management Only (15) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Dallas Region David Beathard (31) Sally Vann (23) Midwest Region Mark West (19) Gary Fernandez (8) Western Region Lesl
Slide 13: The Capital Advantage: Years of Management Experience
The Capital Advantage: 155 Years of Management Experience James A. Stroud Chairman 20 Keith N. Johannessen President/COO 26 Glen H. Campbell VP Development 30 Industry Experience (Years) David W. Beathard VP Operations 31 Rob L. Goodpaster VP Marketing 28 Lawrence A. Cohen Vice-Chairman/CEO 20
Slide 14: Status of Communities
Status of Communities As of June 30, 2005 Stabilized Lease-up Renovations/ re-leasing Wholly Owned 23 5 1 JV Ownership/Management 2 2 -- Leased 6 -- -- Management Only 13 2 -- Total 44 9 1
Slide 15: The Capital Advantage: Proven Track Record
The Capital Advantage: Proven Track Record Industry Averages CSU IL AL Occupancy1 90.0% 90.0% 88.0% Operating margins2, 3 47.0% 43.9% 38.3% 1. Second Quarter 2005 CSU and First Quarter 2005 NIC Key Financial Indicators 2. Before property taxes, insurance and management fees 3. CSU Second Quarter 200
Slide 16: The Capital Advantage: Proven Track Record (Same Store)
The Capital Advantage: Proven Track Record Industry Averages CSU IL AL Revenues 6.0% 4.6% 6.1% Operating Expenses 1.0% 4.9% 8.0% NOI 16.0% 5.0% 10.0% Occupancy 2.0% 0.3% 2.1% Source: CSU Second Quarter 2005 and from The State of Seniors Housing 2005 by the American Seniors Housing Association (ASHA)
Slide 17: Yearly Median Increases in Resident Revenue
Yearly Median Increases in Resident Revenue Source: ASHA The State of Seniors Housing 2005 Independent Living Independent Living Assisted Living Assisted Living Existing New Existing New Residents Residents Residents Residents 2004 2003 2002 4% 4% 4% 4% 5% 5% 5% 4% 5% 5% 5% 5% 2001 4.5% 5% 5% 5.5% 2
Slide 18: 2005 Strategic Initiatives
2005 Strategic Initiatives Focus on improving occupancy and operating margins Increase ancillary services offered to residents Participate in acquisitions or co-investments Manage acquired and other communities Selectively develop for third parties
Slide 19: Operating Leverage from Achieving 93% Occupancy
Operating Leverage from Achieving 93% Occupancy in Wholly-Owned Communities $2.2M3 $2.0M2 $40.6M 1 $4.9M3 $2.7M2 $53.3M 1 1. Annualized revenue as of June 2005 2. Effect of a 5% increase in average rents 3. Effect of achieving 93% average occupancy Mature Communities Waterford / Wellington Communiti
Slide 20: Growth Strategies: Joint Ventures
Growth Strategies: Joint Ventures Ventures with Blackstone and Prudential have acquired ten senior housing communities with resident capacity of 1,900 Seeking additional acquisitions of senior housing communities Co-invest with joint venture partners to participate in economics: 5% - 10% CSU 95% - 9
Slide 21: Joint Ventures: Benefits of Financial Leverage
Joint Ventures: Benefits of Financial Leverage 75% Debt / 25% Equity 75% Debt / 25% Equity 70% Debt / 30% Equity 70% Debt / 30% Equity Cap Rate 8% 9% 8% 9% Interest Rate 6.0% 6.0% 6.0% 6.0% ROE 14.0% 18.0% 12.7% 16.0% ROE w/25 year amortization 8.5% 12.5% 8.4% 11.7%
Slide 22: Example of Joint Venture Economics
Example of Joint Venture Economics Venture CSU Partner NOI $ 10,000,000 Cap Rate 8% Purchase Price $125,000,000 Debt $ 93,750,000 Equity $ 31,250,000 $3,125,000 $28,125,000 Revenues $ 30,000,000 Mgt. Fees (5%) $1,500,000 ROE (14%) $ 437,500 $ 3,937,500 Total First Year Return $1,937,500 $ 3,937,500
Slide 23: Ventas Sale/Leaseback Transaction
Ventas Sale/Leaseback Transaction Joint venture between CSU and Blackstone sold six communities to Ventas for $85 million; CSU leased back the communities from Ventas CSU has leased the communities for ten years with two five year renewal options; initial rate is 8% CSU will record a gain of approxi
Slide 24: CGIM Transaction
CGIM Transaction Capital assumed management of 14 communities, increasing resident capacity by approximately 1,800, 78% IL and 22% AL Capital paid $2.0 million in cash at closing in addition to the first of four installment payments of $250k. Additional installments of $300k, $400k and $650k are pot
Slide 25: Income Statement Q2 Comparison
Income Statement Q2 Comparison (in millions, except per share) 2005 2004 Resident & Health Care Revenue $23.5 $22.5 Other Revenue 0.9 0.5 Total Revenues $24.4 $23.0 Operating Expenses 16.2 16.2 General & Administrative Expenses 2.5 2.3 Depreciation & Amortization 3.1 2.9 Total Expenses $21.8 $21.4 I
Slide 26: Balance Sheet
Balance Sheet As of June 30, 2005 (in millions) Cash and Securities $ 15.8 Current Liabilities $ 23.3 Other Current Assets 14.6 Long-Term Debt 250.8 Total Current Assets $ 30.4 Other Liabilities 8.1 Fixed Assets 376.1 Total Liabilities $282.2 Assets Held for Sale 1.5 Stockholders' Equity 146.8 Other
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Slide 28: Capital Senior Living Corporation
CAPITAL SENIOR LIVING CORPORATION
Capital Senior Living — Investor Presentation (October 2005) on 6ix