SECOND QUARTER NORMALIZED FFO PER SHARE OF
$0.36
$1.2 BILLION OF ACQUISITIONS
ANNOUNCED/COMPLETED YEAR TO DATE
New Senior Investment Group Inc. (“New Senior” or the “Company”)
(NYSE:SNR) announced today its results for the quarter ended June
30, 2015.
2Q 2015 BUSINESS
HIGHLIGHTS
- Total managed portfolio occupancy
increased 310 basis points for 2Q’15 vs. 2Q’14
- Same store occupancy for the managed
portfolio increased 120 basis points for 2Q’15 vs. 2Q’14
- Same store occupancy for the triple net
portfolio increased 240 basis points for 2Q’15 vs. 2Q’14
- 4.5% same store net operating income
(“NOI”) growth for the managed portfolio for 2Q’15 vs. 2Q’14
- Completed $98 million of acquisitions
comprising 2 assisted living / memory care (“AL/MC”) properties and
1 rental continuing care retirement community (“CCRC”)
- Announced $640 million acquisition of
28 independent living (“IL”) properties
- Raised $267 million of net proceeds
through common stock offering
- Previously announced a 13% increase for
the second quarter common stock dividend
2Q 2015 FINANCIAL
HIGHLIGHTS
- Total NOI of $48.4 million compared to
$33.4 million for 2Q 2014, a 45% increase
- Normalized Funds from Operations
(“NFFO”) of $24.1 million, or $0.36 per basic and diluted
share
- AFFO of $20.5 million, or $0.31 per
basic share and $0.30 per diluted share
- Normalized Funds Available for
Distribution (“FAD”) of $19.1 million, or $0.28 per basic and
diluted share
- Net loss of ($21.2) million, or ($0.32)
per basic and diluted share
“Our second quarter earnings reflect a full quarter’s
contribution from our significant acquisition and refinancing
activities completed during the beginning of the year, and I am
pleased to report that these results have exceeded our
expectations,” New Senior Chief Executive Officer Susan Givens
said. “Our portfolio of private pay senior housing properties
delivered another strong quarter of results, including solid
performance from our same store managed portfolio with occupancy
increasing 120 basis points and NOI growth of 4.5%, along with a
240 basis point increase in occupancy for our same store triple net
portfolio. We were also pleased to provide our shareholders with a
significant increase in our dividend of 13%.”
Ms. Givens continued, “Furthermore, we have announced or
completed $1.2 billion of accretive, private pay senior housing
acquisitions year to date. With 92% of our portfolio NOI from
private pay assisted living and independent living properties that
have delivered superior growth relative to the industry, we remain
excited about our prospects for 2015 and beyond.”
SECOND QUARTER 2015
RESULTS
Dollars in thousands, except per share data
For the
Quarter Ended June 30, 2015 Amount Per
Share(B)
Non-GAAP(A)
NOI $48,376 -- FFO 18,384 $0.27 Normalized FFO 24,063 $0.36 AFFO
20,461 $0.30 Normalized FAD
19,051
$0.28
GAAP
Net loss (21,190) ($0.32)
(A) See end of press release for reconciliation of
non-GAAP measures to net loss.
(B) Per share amounts are based on 67.8 million diluted shares
outstanding for non-GAAP amounts and 66.9 million diluted shares
outstanding for net loss. See the appendix in the second quarter
presentation posted in the Investor Relations section of the
Company's website for an explanation of the difference between
basic and diluted shares.
ACQUISITION ACTIVITY
Year to date, the Company has closed or announced $1.2 billion
of acquisitions, which include 49 IL properties, 2 AL/MC properties
and 1 rental CCRC.
During the second quarter, the Company closed $98 million of
acquisitions at an expected blended initial cash NOI yield of
approximately 7.0%. The acquisitions included 2 AL/MC properties
that were added to the Company’s managed portfolio and 1 rental
CCRC that was added to the Company’s triple net lease
portfolio.
During the second quarter, the Company announced the acquisition
of 28 private pay, IL properties (the “Portfolio”) from affiliates
of Holiday Retirement (“Holiday”) for approximately $640 million.
The Portfolio is 100% private pay and contains 3,298 IL units
located across 21 states and had an average occupancy rate of 88%
as of May 2015. The Company expects the Portfolio to generate an
initial cash NOI yield of approximately 6.4% and closing of the
acquisition to occur by the end of the third quarter of 2015.
PORTFOLIO PERFORMANCE
Total NOI increased 45% to $48.4 million compared to $33.4
million for 2Q 2014.
For the managed portfolio, total occupancy increased 310 basis
points to 86.2% compared to 83.1% for 2Q 2014, and same store
occupancy increased 120 basis points to 84.4% compared to 83.2% for
2Q 2014. Same store NOI increased 4.5% to $11.4 million compared to
$10.9 million for 2Q 2014.
For the triple net portfolio, same store occupancy increased 240
basis points to 90.4% compared to 88.0% for 2Q 2014. Triple net
occupancy is presented one quarter in arrears from the date
reported on a trailing twelve month basis.
FINANCING ACTIVITY
On June 29, 2015, the Company issued 20,114,090 shares of common
stock in a public offering at a price of $13.75, for proceeds of
$267 million, net of issuance costs. The Company intends to use the
net proceeds from the offering to fund a portion of the purchase
price for the acquisition of the Portfolio and for general
corporate purposes.
DIVIDEND
On April 6, 2015, the Company announced that its Board of
Directors declared its first quarter dividend of $0.23 per share
payable to shareholders of record on April 17, 2015. This dividend
was paid on April 30, 2015.
On June 8, 2015, the Company announced that its Board of
Directors declared its second quarter dividend of $0.26 per share,
an increase of 13% from the previous quarter’s dividend. The
dividend was payable to shareholders of record on June 18, 2015 and
was paid on August 3, 2015.
ADDITIONAL INFORMATION
For additional information that management believes to be useful
for investors, please refer to the presentation posted in the
Investor Relations section of the Company’s website,
www.newseniorinv.com.
EARNINGS CONFERENCE CALL
Management will host a conference call on August 6, 2015 at 9:00
A.M. Eastern Time. The conference call may be accessed by dialing
(855) 734-8393 (from within the U.S.) or (970) 315-0985 (from
outside of the U.S.) ten minutes prior to the scheduled start of
the call; please reference “New Senior Second Quarter Earnings
Call.” A simultaneous webcast of the conference call will be
available to the public on a listen-only basis at
www.newseniorinv.com. Please allow extra time prior to the call to
visit the website and download any necessary software required to
listen to the internet broadcast.
A telephonic replay of the conference call will also be
available approximately two hours following the call’s completion
through 11:59 P.M. Eastern Time on September 7, 2015 by dialing
(855) 859-2056 (from within the U.S.) or (404) 537-3406 (from
outside the U.S.); please reference access code “84979867.”
ABOUT NEW SENIOR
New Senior is a real estate investment trust focused on
investing in senior housing properties across the United States.
The Company is the only pure play senior housing REIT and is one of
the largest owners of senior housing properties. Currently, New
Senior owns 124 properties located across 32 states. New Senior is
managed by an affiliate of Fortress Investment Group LLC, a global
investment management firm. More information about New Senior can
be found at www.newseniorinv.com.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain items in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements regarding the Company’s
belief that completed acquisitions will be accretive, expected
initial cash NOI yields, which represent a portfolio’s expected
cash NOI for a full year period divided by the purchase price, the
completion of the Holiday acquisition and the expected timing
thereof, and the expected use of proceeds from the equity offering
completed in June. These statements are not historical facts. They
represent management’s current expectations regarding future events
and are subject to a number of trends and uncertainties, many of
which are beyond our control, that could cause actual results to
differ materially from those described in the forward-looking
statements. Accordingly, you should not place undue reliance on any
forward-looking statements contained herein. For a discussion of
some of the risks and important factors that could affect such
forward-looking statements, see the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s annual and
quarterly reports filed with the Securities and Exchange
Commission, which are available on the Company’s website
(www.newseniorinv.com). New risks and uncertainties emerge from
time to time, and it is not possible for New Senior to predict or
assess the impact of every factor that may cause its actual results
to differ from those contained in any forward-looking statements.
Forward-looking statements contained herein speak only as of the
date of this press release, and New Senior expressly disclaims any
obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in New Senior's expectations with regard thereto or change in
events, conditions or circumstances on which any statement is
based.
Consolidated Statements of
Operations (unaudited) (dollars in thousands, except share
data) Three Months Ended June 30, Six Months
Ended June 30, 2015 2014 2015 2014
Revenues Resident fees and services $ 63,470 $ 37,277 $
110,658 $ 72,814 Rental revenue 27,730 22,346
54,402 44,644 Total revenues
91,200 59,623 165,060
117,458
Expenses Property operating
expense 42,824 26,196 77,095 51,755 Depreciation and amortization
39,574 23,177 69,731 46,012 Interest expense 16,984 14,097 32,295
27,402 Acquisition, transaction and integration expense 5,199 4,013
9,117 8,236 Management fee to affiliate 3,071 1,726 6,122 3,379
General and administrative expense 4,129 817 7,539 1,655 Loss on
extinguishment of debt - - 5,091 - Other expense 480
- 480 - Total expenses $
112,261 $ 70,026 $ 207,470 $ 138,439
Loss Before Income Taxes (21,061 ) (10,403 ) (42,410
) (20,981 ) Income tax expense 129 627
34 987
Net Loss $ (21,190 ) $
(11,030 ) $ (42,444 ) $ (21,968 )
Loss Per Share of
Common Stock Basic and diluted (A) $ (0.32 ) $ (0.17 ) $ (0.64
) $ (0.33 )
Weighted Average Number of Shares of Common
Stock Outstanding Basic and diluted (B) 66,857,483
66,399,857 66,637,670
66,399,857
Dividends Declared Per Share of Common
Stock (C) $ 0.49 $ - $ 0.49 $ -
(A) Basic EPS is calculated by dividing net income by the
weighted average number of shares of common stock outstanding for
the period. Diluted EPS is computed by dividing net income by the
weighted average number of shares of common stock outstanding plus
the additional dilutive effect, if any, of common stock equivalents
during each period.
(B) For the purposes of computing income per share of common
stock for periods prior to the spin-off on November 6, 2014, the
Company treated the common shares issued in connection with the
spin-off as if they had been outstanding for all periods presented.
All 7.5 million outstanding options were excluded from the diluted
share calculation as their effect would have been
anti-dilutive.
(C) The three months ended June 30, 2015 includes a dividend of
$15,276, or $0.23 per common share, which is attributable to the
first quarter and was announced on April 6, 2015.
Consolidated Statements of Cash Flows
(unaudited) (dollars in thousands) Six Months
Ended June 30, 2015 2014 Cash Flows From
Operating Activities Net loss $ (42,444 ) $ (21,968 )
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation of tangible assets and amortization of
intangible assets 69,804 46,012 Amortization of deferred financing
costs 4,473 4,059 Amortization of deferred community fees (1,112 )
(598 ) Amortization of premium on mortgage notes payable 305 425
Non-cash straight line rent (12,540 ) (12,136 ) Loss on
extinguishment of debt 5,091 - Equity-based compensation 17 -
Provision for bad debt 824 437 Unrealized loss on interest rate
caps 480 - Changes in: Receivables and other assets (4,432 ) (7,592
) Due to affiliates 2,559 3,904 Accrued expenses and other
liabilities 9,932 16,298 Net cash
provided by operating activities $ 32,957 $ 28,841
Cash Flows From Investing Activities Cash paid for
acquisitions, net of deposits $ (584,932 ) $ (227,535 ) Capital
expenditures (4,978 ) (3,836 ) Funds reserved for future capital
expenditures (292 ) (540 ) Deposits paid for real estate
investments (10,855 ) (649 ) Net cash used in
investing activities $ (601,057 ) $ (232,560 )
Cash Flows
From Financing Activities Proceeds from mortgage notes payable
$ 757,572 $ 32,857 Principal payments of mortgage notes payable
(7,911 ) (6,271 ) Repayments of mortgage notes payable (289,484 ) -
Payment of exit fee on extinguishment of debt (1,499 ) - Payment of
deferred financing costs (8,798 ) (457 ) Payment of common stock
dividend (30,552 ) - Purchase of interest rate caps (1,037 ) -
Proceeds from issuance of common stock 276,569 - Costs related to
issuance of common stock (10,056 ) - Contributions - 216,167
Distributions - (21,431 ) Net cash provided by
financing activities $ 684,804 $ 220,865
Net
Increase in Cash and Cash Equivalents 116,704 17,146
Cash
and Cash Equivalents, Beginning of Period 226,377
30,393
Cash and Cash Equivalents, End of
Period $ 343,081 $ 47,539
Supplemental
Disclosure of Cash Flow Information Cash paid during the period
for interest expense $ 26,734 $ 21,529 Cash paid during the period
for income taxes 190 1,110
Supplemental Schedule of
Non-Cash Investing and Financing Activities Common stock
dividend declared but not paid $ 17,268 $ -
Reconciliation of NOI to Net Loss (dollars in
thousands) For the Quarter Ended June 30, 2015
Total revenues $ 91,200 Property operating expense (42,824 )
NOI 48,376 Depreciation and amortization
(39,574 ) Interest expense (16,984 ) Acquisition, transaction and
integration expense (5,199 ) Management fee to affiliate (3,071 )
General and administrative expense (4,129 ) Other expense (480 )
Income tax expense (129 )
Net Loss $
(21,190 ) Reconciliation of Net Loss to
FFO, Normalized FFO, AFFO and Normalized FAD (dollars and
shares in thousands, except per share data) For the
Quarter Ended June 30, 2015 Net loss $ (21,190)
Adjustments: Depreciation and amortization 39,574
FFO
$ 18,384 FFO per diluted share $0.27
Acquisition, transaction and integration expense 5,199 Other
expense 480
Normalized FFO $ 24,063
Normalized FFO per diluted share $0.36
Straight-line rent (6,374) Amortization of deferred financing costs
2,275 Amortization of premium on mortgage notes payable 75
Amortization of deferred community fees and other(1) 422
AFFO $ 20,461 AFFO per diluted share
$0.30 Maintenance capital expenditures
(1,410)
Normalized FAD
$ 19,051
Normalized FAD per diluted share $0.28
Weighted average basic shares outstanding 66,857 Weighted average
diluted shares outstanding(2) 67,772
(1) Includes net change in deferred community fees, above/below
market lease amortization and other non-cash GAAP adjustments.
(2) Includes dilutive effect of options.
Reconciliation of Same-Store NOI (unaudited)
(dollars in thousands)
2Q 2014 2Q 2015 Non-Same
Non-Same Same Store Store Same Store
Store NNN Managed Managed NNN
Managed Managed Properties
Properties Properties Total
Properties Properties Properties
Total NOI $22,346 $10,863
$218 $33,427 $27,730
$11,357 $9,289 $48,376
Depreciation and amortization (23,177 ) (39,574 ) Interest expense
(14,097 ) (16,984 ) Acquisition, transaction and integration
expense (4,013 ) (5,199 ) Management fee to affiliate (1,726 )
(3,071 ) General and administrative expense (817 ) (4,129 ) Other
expense
-
(480 ) Income tax expense (627 ) (129 )
Net Loss
($11,030 ) ($21,190 )
The tables above set forth reconciliations of non-GAAP measures
to net income (loss), which is the most directly comparable GAAP
financial measure. A non-GAAP financial measure is a measure of
historical or future financial performance, financial position or
cash flows that excludes or includes amounts that are not excluded
from or included in the most comparable GAAP measure.
We believe that net income (loss), as defined by GAAP, is the
most appropriate earnings measurement. However, we consider certain
non-GAAP financial measures to be useful supplemental measures of
our operating performance.
We believe that Normalized Funds from Operations, or Normalized
FFO, is useful because it allows investors, analysts and our
management to compare our operating performance to the operating
performance of other real estate companies and between periods on a
consistent basis without having to account for differences caused
by period specific items and events such as transaction costs. In
addition, we believe Adjusted Funds from Operations, or AFFO, and
normalized FAD are useful as supplemental measures of our ability
to fund dividend payments.
The non-GAAP financial measures we present may not be identical
to those presented by other real estate companies due to the fact
that not all real estate companies use the same definitions. You
should not consider these measures as alternatives to net income
(determined in accordance with GAAP) as indicators of our financial
performance or as alternatives to cash flow from operating
activities (determined in accordance with GAAP) as measures of our
liquidity, nor are these measures necessarily indicative of
sufficient cash flow to fund all of our needs. In order to
facilitate a clear understanding of our consolidated historical
operating results, you should examine these measures in conjunction
with net income as presented in our Consolidated Financial
Statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150806005495/en/
New Senior Investment Group Inc.David Smith, 212-479-3140
New Senior Investment (NYSE:SNR)
Historical Stock Chart
From Sep 2024 to Oct 2024
New Senior Investment (NYSE:SNR)
Historical Stock Chart
From Oct 2023 to Oct 2024