Nexliving Communities Inc · TSXV:NXLV
Nexliving Communities — Investor Presentation (November 2024)
19 slides from Nexliving Communities's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
November 2024 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 2,033 96.7% +6.7% 66% Organic YTD of buildings Suites Occupancy NOI growth < 10 years old * As of November 25, 2024 * As of September 30, 2024 * As of September 30, 2024 * Built or fully renovated in past 10 years $2.29 43% 5.55% Share Price Discount to NAV Implied
Slide 4: NexLiving Overview
NexLiving Overview NexLiving
Slide 5: Company Snapshot
Company Snapshot Company Strategy LTM NOI and Margin 12.3 Canadian ▪ We acquire, operate, and manage multi-unit 11.6 11.7 11.0 Secondary residential real estate rental properties in high- 9.9 Market Focus growth Canadian secondary markets. 8.8 7.7 6.7 6.0 ▪ Focus on recently-built or refurbished, mu
Slide 6: Business Update
Business Update Recent Highlights Same Property NOI Growth 2023 YTD 2024 13.9% 13.7% ▪ YTD SPNOI growth of 6.7%. Revenue growth and lower cash operating expenses were partially 11.8% Excellent 10.9% offset by higher property taxes in 2024. Financial Results ▪ FFO per share growth of 18.3% YTD driven
Slide 7: Capital Recycling Case Study
Capital Recycling Case Study Pleasant - Cash Flow Summary McLaughlin - Cash Flow Summary Year Cash Flow Notes Year Cash Flow Notes $2.5MM cash + $1.2MM equity issued to 2020 ($1.0MM) $1.0MM equity issued to vender + fees 2020 ($3.7MM) vendor + fees 2021 +0.1MM FCF 2021 +0.2MM Free Cash Flow (FCF) 20
Slide 8: Focus on Secondary Markets
Focus on Secondary Markets Favorable Demand Fundamentals NexLiving Portfolio Geography ▪ Federal immigration targets remain supportive (485k in 2024, 365k-395k in 2025-2027) Moncton ▪ New Brunswick has experienced 18 consecutive Val D’Or Strong quarters of net positive interprovincial migration Popu
Slide 9: Focus on Secondary Markets (cont’d)
Focus on Secondary Markets (cont’d) Favorable Economic Fundamentals Comparable Rental Growth 287% ▪ Enhanced risk-adjusted return vs. core urban markets 262% Wider − Capitalization Rates +100 bps higher than Acquisition core markets Spreads ▪ CMHC mortgages funded at an average 45-65 bps spread to C
Slide 10: Structure Enhances Returns
Structure Enhances Returns Deliberate Focus and Structure Capex Per Unit $6,116 NexLiving offers a unique value proposition with a young portfolio with below-market rents located $5,020 $4,781 primarily in favorable landlord markets: $4,239 $3,823 ▪ Overall capex per unit is lower than those of publ
Slide 11: Positioned For Continued Strong Growth
Positioned For Continued Strong Growth Strong and Sustainable Growth Quarterly Same Property NOI Growth ▪ Since 2020, LTM NOI has grown from $0.9MM to $11.7MM through 24.0% 23.0% a series of acquisitions and strong organic growth. ▪ Our acquisitions have been disciplined and geographically-focused,
Slide 12: Focus On Per Share Value Creation
Focus On Per Share Value Creation Operating Margins Continue To Improve… … While Keeping Overhead Costs Flat … NOI Margin Value of Properties LTM SG&A % of Prop. 1.73% 60% 61% 60% 60% 1.43% 59% 1.36% 57% 57% 57% 57% 1.11% 56% 0.74% 0.76% 0.75% 56% 56% 0.87% 55% 55% 55% 0.42% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 13: Management Team and Board of Directors
Management Team and Board of Directors Management Team Board of Directors STAVRO STATHONIKOS, President & CEO JEFF YORK, Chairman ▪ 20-year capital markets career with broad experience in the areas of ▪ CEO of Altea Active institutional equities, capital raising and M&A ▪ Former Co-CEO of Farm Boy I
Slide 14: Capital Structure Summary
Capital Structure Summary NexLiving Bil f rave j z Fe 4 4 ( F ; i a I ‘ f } | ‘4 4 , $ ‘on 4 ay 4 Vy ihe if f f An ‘d rs 1% * i
Slide 15: Balanced Capital Structure
Balanced Capital Structure Adjustments for Subsequent Events Debt Maturity Profile $140M 8.00 $119.6M $120M 7.00 Capitalization 30-Sep-24 Adjustments Pro-Forma 5.84% 6.00 $100M 5.20% 5.00 Share price $2.29 $2.29 $80M $68.8M 4.00 Shares outstanding 32.8 32.8 $54.9M 3.75% $60M Vested DSUs 0.3 0.3 $44.
Slide 16: Appendix
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Slide 17: Appendix: New Brunswick - Population and Employment
Appendix: New Brunswick - Population and Employment Employment By Sector New Brunswick Population Growth 2008-2024 Construction 9% “New Brunswick added more people Manufacturing 7% in the past 24 months Other Services Other Goods- 32% Producing 30,000 than the previous 29 years” 4% – CBC News, Septe
Slide 18: Secondary Markets Key Metrics
Moncton Edmonton 10.1% Halifax Saskatoon Oshawa Regina 7.9% KW & Cambridge Winnipeg Calgary Calgary London Oshawa 5.9% 2.6% Saskatoon Ottawa 2022 Vacancy Rates Edmonton Montréal Vancouver London Ottawa Val D'Or Saint John Moncton 3.5% Toronto Cornwall Winnipeg Saint John 1.7% 1.7%1.7% 1.6% 1.6% Regi
Slide 19: Non-IFRS Financial Measures
Non-IFRS Financial Measures Non-IFRS Financial Measures This presentation contains several non-IFRS financial measures and ratios that management believes provide relevant supplementary information to both management and investors in measuring the operating and financial performance of the Company.
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