Nexliving Communities Inc · TSXV:NXLV
Nexliving Communities — Investor Presentation (May 2023)
22 slides from Nexliving Communities's investor presentation, May 2023
Slide 1: Investor Presentation
May 2023 Investor Presentation
Slide 2: Disclaimer
Disclaimer Forward-Looking Information This presentation contains certain statements, which may constitute “forward looking information” under Canadian securities law requirements and “forward looking statements” under applicable securities laws (collectively, “forward-looking information”). Forward
Slide 3: NexLiving Communities At a Glance
NexLiving Communities At a Glance 1,166 97% +13.2% 7 Years Average Building Suites Occupancy SPNOI Age * As of May 25, 2023 * As of March 31, 2023 * As of Q1 2023 * Excludes properties being repositioned $0.13 $0.24 5.49% Share Price NAV per Share Implied Cap Rate * As of May 25, 2023 * As of March
Slide 4: Corporate Overview
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Slide 5: Company Snapshot
Company Snapshot Description Annualized NOI and Margin NexLiving is focused on the acquisition and management of 9 .0 65% multi-family rental properties in Atlantic Canada and Ontario: 8 .0 7.7 6.7 • Targeting low and mid-rise properties, with close 7 .0 6.0 proximity to nature trails and parks, ame
Slide 6: Experienced Management Team and Board of Directors
Experienced Management Team and Board of Directors Management & Operating Team Board of Directors STAVRO STATHONIKOS, President & CEO RICHARD TURNER, Chairman • 17-year capital markets career with broad experience in the areas of • President, Chairman and CEO of Titanstar Investment Group Inc. insti
Slide 7: Company Strategy
Company Strategy NexLiving
Slide 8: The Secondary Market Opportunity
The Secondary Market Opportunity § Rising home prices and ownership costs, especially in core markets, driving higher rental absorption across the country § Target markets experiencing significant rent growth as a results of out-migration from Strong Macro major cities Backdrop § Increased federal i
Slide 9: NexLiving Capitalizing on Opportunity
NexLiving Capitalizing on Opportunity Acquire Increase Balanced Focused on ROIC and Smart Asset Value Capital Structure Per Share Metrics § Acquire assets in secondary § Active property management § Laddered debt maturity profile § Growing NAV and FFO per markets with strong population share through
Slide 10: Organic Growth
Organic Growth Sustainable Organic Growth NexLiving offers a unique value proposition situated in the highest population growth region of the country: • NexLiving has reported above average organic growth without relying on one-time occupancy gains • Achieving leading NOI growth organically via cost
Slide 11: High Organic Free Cash Flow
High Organic Free Cash Flow Young Portfolio Results in Lower Capex NexLiving offers a unique value proposition with a young portfolio with below market rents located primarily in markets with no rent control: • Overall capex per unit is dramatically lower than those of public REIT peers due to young
Slide 12: Advantageous Corporate Structure
Advantageous Corporate Structure Capital Structure Strategy NexLiving’s structure as a corporation allows it to retain internally generated cash flow, which facilitates the creation of a substantial internal capital pool. The Company’s lower risk capital structure drives higher shareholder returns a
Slide 13: Strong Track Record of Creating Value per Share
Strong Track Record of Creating Value per Share Nex has consistently grown NAV per share … … and cash flow per share … $80 $0.30 0.71c 0.62c $0.24 0.52c 0.54c 0.52c 0.54c $70 0.36c 0.31c $0.25 0.33c 0.33c 0.36c 0.31c $0.22 0.20c 0.20c $60 $0.20 $50 $0.16 $ Millions $40 $0.15 (0.22c) (0.22c) $30 $0.1
Slide 14: New Brunswick
New Brunswick NexLiving Nag
Slide 15: Population Growth
Population Growth Relevant News Articles New Brunswick Population Growth 2008-2022 30,000 NB sees record population growth, adding 25,000 people in past year. NB’s population stood at 820,786 as of October 1. - CBC News, Dec 28, 2022 25,000 This population growth rate is the highest in the 20,000 pr
Slide 16: New Brunswick Economy
New Brunswick Economy Employment by Sector New Brunswick Employment Trends Construction 390 14. 0% 8% 13.3% Manufacturing 8% Other Services 31% 380 Other Goods- Producing 5% 12. 0% 10.9% 370 10.1% Healthcare 9.6% 10. 0% 16% 360 8.6% 8.4% 8.3% Employment ('000s) Education 8% 8.1% 8. 0% 350 Public Who
Slide 17: Population Growth, Vacancy Rates and Rents by City
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Moncton Edmonton 5.4% Halifax Saskatoon KW & Cambridge Regina TSXV: NXLV PEI Winnipeg Vacancy Rates Calgary Calgary London Oshawa 2.6% Oshawa Lethbridge 3.0%2.9% Vancouver Ottawa Edmonton Montréal Lethbridge Canada 1.9% Saskatoon Londo
Slide 18: Peak to Trough Home Prices
Peak to Trough Home Prices Rapid Declines in home prices that saw large increases ahead of rate hike TSXV: NXLV 18
Slide 19: Ontario
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Slide 20: Ontario Strategy Overview
Ontario Strategy Overview Secondary Markets Value-Add Strategy Before and After Pictures § Strategy to acquire midcap buildings in secondary markets that have a significant rental uplift opportunity. § Drive meaningful increase in property NOI by: • strategic capital spending • unlocking current vs.
Slide 21: Capital Structure Summary
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Slide 22: Balanced Capital Structure
Balanced Capital Structure Current Capitalization Debt Maturity Profile $60 4.46% 5. 00% 4. 50% $50 3.68% 4. 00% 3.36% 3. 50% $40 $ Millions 2.49% 3. 00% $30 2.18% 2. 50% 1.76% 2. 00% $20 1. 50% 1. 00% $10 0. 50% $- 0. 00% 2023 2024 2025 2026 2027 Thereafter Mo rtgage Debt WA IR Note: As of May 25,
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