Enterprising Investor
8 years ago
New Senior Announces Fourth Quarter and Full Year 2015 Results (2/25/16)
Fourth Quarter Normalized FFO of $0.35 Per Basic Share
And AFFO of $0.30 Per Basic Share
Fourth Quarter Dividend of $0.26 Per Share
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today its results for the quarter and full year ended December 31, 2015.
2015 AND RECENT BUSINESS HIGHLIGHTS
• 2015 total managed portfolio average occupancy increased 310 basis points to 86.6% vs. 2014
• 2015 same store net operating income (“NOI”) growth for the managed portfolio of 4.5% vs. 2014
• 2015 same store average occupancy for the managed portfolio increased 150 basis points vs. 2014
• Occupancy of the triple net portfolio increased 110 basis points for 4Q’15 vs. 4Q’14
• Completed $1.3 billion of acquisitions in 2015, adding 54 majority private pay properties
• Raised $1.2 billion of debt in 2015 and lowered the effective interest rate of total debt by 80bps to 4.0%
• Repurchased $40 million of common stock at a weighted average price of $9.05 per share
4Q 2015 FINANCIAL HIGHLIGHTS
• Total NOI of $57.7 million compared to $38.7 million for 4Q 2014, a 49% increase
• Normalized Funds from Operations (“Normalized FFO”) of $29.8 million, or $0.35 per basic and $0.34 per diluted share
• AFFO of $25.7 million, or $0.30 per basic and diluted share
• Normalized Funds Available for Distribution (“Normalized FAD”) of $23.3 million, or $0.27 per basic and diluted share
• Net loss of ($22.0) million, or ($0.26) per basic and diluted share
“In our first full year as a public company, we are pleased to have delivered strong same store NOI growth of 4.5% for 2015, generated a 58% increase in our AFFO per share for 4Q’15 versus 4Q’14 and provided our shareholders with a 13% increase in our quarterly dividend,” New Senior Chief Executive Officer Susan Givens said. “Furthermore, we significantly increased our exposure to private pay independent living properties, which now account for 71% of our NOI, and lowered the effective interest rate of our debt by 80 basis points while lengthening our overall weighted average debt maturity. For 2016, we remain intently focused on driving organic growth in our private pay senior housing portfolio and pursuing selective asset sales.”
2015 ACQUISITION ACTIVITY
In 2015, the Company closed on $1.3 billion of acquisitions, which included 49 independent living (“IL”) properties, four assisted living / memory care (“AL/MC”) properties and one rental continuing care retirement community (“CCRC”). These acquisitions increased the Company’s private pay independent living exposure from 61% of NOI for 4Q 2014 to 71% for 4Q 2015.
PORTFOLIO PERFORMANCE
Total NOI increased 49% to $57.7 million compared to $38.7 million for 4Q 2014.
For the managed portfolio, 2015 total average occupancy increased 310 basis points to 86.6% compared to 83.5% for 2014, and same store average occupancy increased 150 basis points to 84.2% compared to 82.7% for 2014. Same store NOI for 2015 increased 4.5% to $40.1 million compared to $38.4 million for 2014. As previously disclosed, same store information excludes one property that was not fully operational during 2015 and a $122,000 write-off of a receivable acquired in connection with an acquisition in 2013. Including these adjustments, same store occupancy growth for 2015 was 90 basis points and same store NOI growth was 2.0% compared to 2014.
For the triple net portfolio, total portfolio average occupancy increased 110 basis points to 88.9% compared to 87.8% for 4Q 2014. Triple net average occupancy is presented one quarter in arrears from the date reported on a trailing twelve month basis.
SHARE REPURCHASE PROGRAM
On December 1, 2015, New Senior’s Board of Directors authorized the repurchase of up to $100.0 million of the Company’s common stock over the next 12 months. During December, the Company repurchased 1,112,000 shares at an average price of $9.22 per share, for a total cost of $10.3 million (including transaction costs).
On December 17, 2015, the Company commenced a modified “Dutch auction” self-tender offer (“Tender Offer”) to repurchase up to $30.0 million of shares of our common stock. The Tender Offer expired on January 19, 2016. The Company invested $30.8 million, including transaction costs, to repurchase 3,333,333 shares at a price of $9.00 per share.
FOURTH QUARTER DIVIDEND
On February 23, 2016, the Company’s Board of Directors declared a cash dividend of $0.26 per share for the quarter ended December 31, 2015. The dividend is payable on March 22, 2016 to shareholders of record on March 8, 2016.
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 February 25, 2016 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 Fourth Quarter and Full Year 2015 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 March 25, 2016 by dialing (855) 859-2056 (from within the U.S.) or (404) 537-3406 (from outside the U.S.); please reference access code “48845559.”
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 154 properties located across 37 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.
http://www.businesswire.com/news/home/20160225005577/en/Senior-Announces-Fourth-Quarter-Full-Year-2015
Enterprising Investor
8 years ago
New Senior Announces Final Results of Modified “Dutch Auction” Self-Tender Offer
Company Purchases 3,333,333 Shares At $9.00 Per Share
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) today announced the final results of its modified “Dutch auction” self-tender offer, which expired at 5:00 p.m., New York City time, on January 19, 2016.
In accordance with the terms of the self-tender offer and based on the final count by American Stock Transfer & Trust Company, LLC, the depositary for the self-tender offer, New Senior has accepted for purchase 3,333,333 shares of its common stock at a purchase price of $9.00 per share on a pro rata basis, except for tenders of odd lots, which were accepted in full, for a total cost of approximately $30,000,000, excluding fees and expenses relating to the self-tender offer. New Senior has determined that the proration factor for the self-tender offer, after giving effect to the priority of odd lots, is approximately 37.5%. The shares accepted for purchase in the self-tender offer represent approximately 3.90% of New Senior’s issued and outstanding common stock as of January 22, 2016. The depositary for the self-tender offer will promptly pay for the shares accepted for purchase and will return all other shares tendered and not purchased pursuant to the terms of the self-tender offer. New Senior will fund the repurchase of shares in the self-tender offer using a portion of its cash and cash equivalents on hand.
After completion of its repurchase of shares in the self-tender offer, New Senior estimates that its remaining capacity under its previously announced share repurchase program is $89.7 million. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions. The amount and timing of any repurchases will depend on a number of factors including the price and availability of the Company's shares, trading volume, capital availability, Company performance and general economic and market conditions. The Company may also from time to time establish a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate repurchases of shares. The share repurchase program may be suspended or discontinued at any time.
Morgan Stanley & Co. LLC is serving as dealer manager for the self-tender offer. Innisfree M&A Incorporated is serving as information agent for the self-tender offer and American Stock Transfer & Trust Company, LLC is serving as depositary for the self-tender offer. Stockholders and investors who have questions or need information about the self-tender offer may contact Innisfree M&A Incorporated at 1-888-750-5834.
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 154 properties located across 37 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.
http://www.businesswire.com/news/home/20160125006568/en/Senior-Announces-Final-Results-Modified-%E2%80%9CDutch-Auction%E2%80%9D
Enterprising Investor
8 years ago
New Senior Announces Expiration And Preliminary Results Of Modified “Dutch Auction” Self-Tender Offer (1/20/16)
Company Remains Committed To Returning Capital To Stockholders Through Share Repurchase Program
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) today announced the expiration and preliminary results of its modified “Dutch auction” self-tender offer to repurchase up to $30,000,000 in cash of shares of its common stock.
New Senior’s modified “Dutch auction” self-tender offer expired at 5:00 p.m., New York City time, on January 19, 2016. Based on the preliminary count by American Stock Transfer & Trust Company, LLC, the depositary for the self-tender offer, 8,791,816 shares of New Senior’s common stock, including 2,112,044 shares that were tendered through notice of guaranteed delivery, were properly tendered and not properly withdrawn at a price at or below the expected final purchase price of $9.00 per share. In accordance with the terms of the self-tender offer, and based on these preliminary results, New Senior expects to repurchase 3,333,333 shares of its common stock at a purchase price of $9.00 per share on a pro rata basis, except for tenders of odd lots, which will be accepted in full, for a total cost of approximately $30,000,000, excluding fees and expenses relating to the self-tender offer. As such, the Company has determined that the preliminary proration factor for the tender offer is approximately 37.9%. The shares expected to be repurchased in the self-tender offer represent approximately 3.90% of New Senior’s issued and outstanding common stock as of January 19, 2016.
The number of shares expected to be repurchased in the self-tender offer, the purchase price and the proration factor referred to above are preliminary and subject to change. New Senior will fund the repurchase of shares in the self-tender offer using a portion of its cash and cash equivalents on hand. Payment for shares of New Senior common stock accepted for purchase in the self-tender offer will occur promptly after the final number of shares properly tendered and not properly withdrawn and the final purchase price is confirmed by the depositary for the self-tender offer.
New Senior remains committed to returning capital to its stockholders through its previously announced share repurchase program. Based on the preliminary results described above, New Senior estimates that its remaining capacity under this program is $89.7 million. Under the program, the Company may repurchase its shares from time to time in the open market or in privately negotiated transactions. The amount and timing of any repurchases will depend on a number of factors including the price and availability of the Company's shares, trading volume, capital availability, Company performance and general economic and market conditions. The Company may also from time to time establish a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate repurchases of shares. The share repurchase program may be suspended or discontinued at any time.
Morgan Stanley & Co. LLC is serving as dealer manager for the self-tender offer. Innisfree M&A Incorporated is serving as information agent for the self-tender offer and American Stock Transfer & Trust Company, LLC is serving as depositary for the self-tender offer. Stockholders and investors who have questions or need information about the self-tender offer may contact Innisfree M&A Incorporated at 1-888-750-5834.
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 154 properties located across 37 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.
http://www.businesswire.com/news/home/20160120005475/en/Senior-Announces-Expiration-Preliminary-Results-Modified-%E2%80%9CDutch
Enterprising Investor
8 years ago
New Senior Announces Commencement of Tender Offer to Repurchase up to $30 Million of Its Common Stock (12/17/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE: SNR) announced today the commencement of a modified “Dutch auction” self-tender offer to repurchase up to $30,000,000 in cash of shares of its common stock at a price per share within the range of $9.00 to $10.00, less applicable withholding taxes and without interest. The NYSE closing price of New Senior’s common stock on December 16, 2015 was $9.51 per share.
Our decision to pursue a tender offer demonstrates our continued focus on creating value for our shareholders. We believe that our current valuation continues to represent a significant discount to the value of our portfolio of private pay senior housing properties,” New Senior Chief Executive Officer Susan Givens said. “This tender offer, combined with our $10 million of open market repurchases completed since the beginning of December, will amount to $40 million of stock repurchases at very attractive levels that are accretive to our earnings and net asset value and, we believe, more accretive than alternative investments given current market conditions. Importantly, we intend to fund the tender offer with cash on hand, and effecting repurchases through a tender offer enhances our ability to complete a sizable repurchase quickly. Going forward, we expect to make additional repurchases pursuant to the $100 million repurchase program announced on December 1 and to fund them with proceeds from asset sales so long as we can monetize assets at higher valuations than where we trade today.”
The tender offer will expire on January 19, 2016 at 5:00 p.m., New York City time, unless the tender offer is extended or withdrawn by the Company. Tenders of shares must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer, in each case in accordance with the procedures described in the tender offer materials that are being distributed to stockholders.
The Company believes that the modified “Dutch auction” tender offer mechanism is a prudent use of the Company’s financial resources and an efficient way to return capital to stockholders who wish to receive cash for all or a portion of their shares. The Company previously announced a share repurchase program providing for repurchases of common stock of up to $100 million, pursuant to which approximately $10.3 million of common stock has been repurchased as of December 10, 2015. This tender offer is being made pursuant to an upsizing of the original repurchase authorization to an aggregate of $130 million.
A modified “Dutch auction” self-tender offer allows stockholders to tender their shares pursuant to (i) auction tenders whereby stockholders indicate at what price within the Company’s specified range (in increments of $0.10 per share) they wish to tender or (ii) purchase price tenders whereby stockholders indicate they are willing to sell their shares to the Company at the purchase price determined in the tender offer. When the tender offer expires, the Company will determine the purchase price, which will be the lowest price per share within the range that will enable the Company to purchase $30,000,000 of its common stock (or a lower amount if the offer is not fully subscribed), taking into account the number of shares tendered pursuant to auction tenders and purchase price tenders and the prices specified by stockholders tendering shares pursuant to auction tenders.
All shares accepted for payment will be purchased at the same purchase price, regardless of whether any stockholder tendered such shares at a lower price within the range. Stockholders will receive the purchase price in cash, less any applicable withholding taxes and without interest, for shares properly tendered (and not properly withdrawn) at prices equal to or less than the purchase price. If more than the maximum number of shares sought is tendered, tendering stockholders owning fewer than 100 shares, or “odd lot” holders, will have their shares purchased without proration and all other tendered shares will be purchased on a pro rata basis, subject to the conditional tender provisions described in the Offer to Purchase. The terms and conditions of the tender offer are set forth in an Offer to Purchase, Letter of Transmittal and related documentation that are being distributed to holders of the Company’s shares and have been filed with the U.S. Securities and Exchange Commission (the “SEC”). Stockholders whose shares are purchased in the tender offer will be paid the purchase price net in cash, less applicable withholding taxes and without interest, promptly after the expiration of the tender offer. All shares tendered at prices above the purchase price will not be purchased and will be returned promptly to the tendering stockholders. Stockholders whose shares are not purchased in the tender offer will have their shares returned, free of charge, promptly after the expiration of the tender offer. The tender offer will remain open for at least 20 business days. The Company also reserves the right to purchase up to an additional 2% of its shares outstanding pursuant to and without amending or extending the tender offer.
New Senior will use a portion of its cash and cash equivalents on hand to fund the repurchase of shares in the tender offer. The tender offer is not conditioned upon obtaining financing or any minimum number of shares being tendered; however, the tender offer is subject to a number of other terms and conditions, which are specified in the Offer to Purchase.
Fortress Operating Entity I LP, an affiliate of the Company’s manager, and the Company’s directors and executive officers, have informed the Company of their intention not to tender any shares in the tender offer.
Morgan Stanley & Co. LLC will serve as dealer manager for the tender offer. Innisfree M&A Incorporated will serve as information agent for the tender offer and American Stock Transfer & Trust Company LLC will serve as depositary for the tender offer. For more information about the tender offer, please contact Innisfree M&A Incorporated at 1-888-750-5834.
While the Company’s board of directors authorized the tender offer, it has not made and will not be making any recommendation to the Company’s stockholders as to whether to tender or refrain from tendering their shares or as to the price or prices at which stockholders may choose to tender their shares. Stockholders must make their own decision as to whether to tender their shares and, if so, how many shares to tender and the price or prices at which to tender them. Stockholders are urged to discuss their decision with their tax advisors, financial advisors and/or brokers.
The discussion of the tender offer contained in this press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares. The offer to purchase and the solicitation of the Company’s shares are made only pursuant to the Offer to Purchase, the related Letter of Transmittal, and other related materials mailed or otherwise delivered to all stockholders, at no expense to stockholders. Stockholders should read those materials and the documents incorporated therein by reference carefully when they become available because they will contain important information, including the various terms and conditions of the tender offer. The Company will file a Tender Offer Statement on Schedule TO (the “Tender Offer Statement”) with the SEC. The Tender Offer Statement, including the Offer to Purchase, the related Letter of Transmittal and other related materials, will also be available to stockholders at no charge on the SEC’s website at www.sec.gov or from the information agent for the tender offer, Innisfree M&A Incorporated. Stockholders are urged to read those materials carefully prior to making any decisions with respect to the tender offer.
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 154 properties located across 37 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.
http://www.businesswire.com/news/home/20151217005389/en/Senior-Announces-Commencement-Tender-Offer-Repurchase-30
Enterprising Investor
8 years ago
New Senior Announces Authorization of Share Repurchase Program (12/02/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE: SNR) announced today that the Company's Board of Directors authorized the repurchase of up to $100 million of the Company's common stock over the next 12 months. Under the program, the Company may purchase its shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company's shares, trading volume, capital availability, Company performance and general economic and market conditions. The Company may also from time to time establish a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate purchases of its shares under this authorization. The stock repurchase program may be suspended or discontinued at any time.
“We are pleased that our Board of Directors has authorized a share repurchase program,” New Senior Chief Executive Officer Susan Givens said. “We view our current valuation as a significant discount to the underlying value of our unique and hard-to-replicate portfolio of private pay senior housing properties. Our team is focused on enhancing shareholder value, and we believe that, given current market conditions, buying back shares of our common stock represents an attractive investment.”
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 154 properties located across 37 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.
http://www.businesswire.com/news/home/20151201005566/en/Senior-Announces-Authorization-Share-Repurchase-Program
Enterprising Investor
8 years ago
New Senior Announces Third Quarter 2015 Results (11/05/15)
Pro Forma Quarterly AFFO Per Share of $0.30
Third Quarter Dividend of $0.26 Per Share
NEW YORK--(BUSINESS WIRE)-- New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today its results for the quarter ended September 30, 2015.
3Q 2015 BUSINESS HIGHLIGHTS
• Total managed portfolio occupancy increased 290 basis points for 3Q’15 vs. 3Q’14
• Same store occupancy for the managed portfolio increased 210 basis points for 3Q’15 vs. 3Q’14
• Same store occupancy for the triple net portfolio increased 180 basis points for 3Q’15 vs. 3Q’14
• Same store net operating income (“NOI”) growth of 6.0% for the managed portfolio for 3Q’15 vs. 3Q’14
• Completed $640 million acquisition of 28 independent living (“IL”) properties
• Raised $465 million of secured debt with a term of 10 years at an attractive fixed rate of 4.25%
• Declared a third quarter dividend of $0.26 per share
3Q 2015 FINANCIAL HIGHLIGHTS
• Total NOI of $53.2 million compared to $38.4 million for 3Q 2014, a 39% increase
• Normalized Funds from Operations (“NFFO”) of $26.3 million, or $0.30 per basic and diluted share
• AFFO of $22.9 million, or $0.27 per basic share and $0.26 per diluted share
• Normalized Funds Available for Distribution (“Normalized FAD”) of $20.9 million, or $0.24 per basic and diluted share
• Net loss of ($18.0) million, or ($0.21) per basic and diluted share
3Q 2015 PRO FORMA HIGHLIGHTS
• Pro forma total NOI of $58.4 million
• Pro forma NFFO of $28.9 million, or $0.33 per diluted share
• Pro forma AFFO of $25.8 million, or $0.30 per diluted share
• Pro forma Normalized FAD of $23.2 million, or $0.27 per diluted share
See note below for an explanation of pro forma amounts.
“New Senior’s portfolio once again delivered strong results during the third quarter, with superior same store managed NOI growth of 6.0% and a same store occupancy increase of 210 basis points, exceeding our peers and the industry averages,” New Senior Chief Executive Officer Susan Givens said. “These results speak to the significant embedded growth potential we have in our portfolio as a result of our unique acquisition strategy. We closed on our largest acquisition year to date in August, which included 28 private pay independent living properties for $640 million, and the portfolio has realized strong increases in occupancy of over 300bps since May 2015 to finish September at 91.2% occupancy. We look forward to continuing to deliver strong organic growth from our existing portfolio, and we are committed to a disciplined approach to capital allocation decisions.”
[tables deleted]
ACQUISITION ACTIVITY
Year to date, the Company has closed $1.3 billion of acquisitions, which includes 49 IL properties, 4 assisted living / memory care (“AL/MC”) properties and 1 rental continuing care retirement community (“CCRC”).
During the third quarter, the Company closed a $640 million acquisition of 28 private pay, IL properties from affiliates of Holiday Retirement (“Holiday”). The portfolio is 100% private pay, contains 3,296 IL units located across 21 states and is expected to generate an initial cash NOI yield of approximately 6.4%. Occupancy for the portfolio has increased 330bps from 87.9% in May 2015 to 91.2% in September 2015. The acquisition was integrated into the Company’s managed portfolio.
In October, the Company closed a $40 million acquisition of two AL/MC properties that were added to the Company’s managed portfolio.
PORTFOLIO PERFORMANCE
Total NOI increased 39% to $53.2 million compared to $38.4 million for 3Q 2014.
For the managed portfolio, total occupancy increased 290 basis points to 86.9% compared to 84.0% for 3Q 2014, and same store occupancy increased 210 basis points to 85.6% compared to 83.5% for 3Q 2014. Same store NOI increased 6.0% to $11.4 million compared to $10.8 million for 3Q 2014. Same store information excludes one property that, although owned during both comparison periods, was not fully operational and had units that were not available for rent during the third quarter of 2015. Including this property, same store occupancy growth was 150 basis points and same store NOI growth was 3.5%.
For the triple net portfolio, same store occupancy increased 180 basis points to 90.7% compared to 88.9% for 3Q 2014. Triple net occupancy is presented one quarter in arrears from the date reported on a trailing twelve month basis.
FINANCING ACTIVITY
In August, the Company completed a $465 million first mortgage loan secured by the 28 independent living properties acquired from Holiday with Freddie Mac. The loan bears interest at a fixed rate of 4.25% and has a maturity of ten years. Proceeds from the loan were used to finance the acquisition from Holiday and to pay down $15 million of existing floating rate debt.
DIVIDEND
On November 4, 2015, the Company’s Board of Directors declared a cash dividend of $0.26 per share for the quarter ended September 30, 2015. The dividend is payable on December 2, 2015 to shareholders of record on November 18, 2015.
EXPLANATION OF 3Q 2015 PRO FORMA HIGHLIGHTS
The pro forma financial information herein is calculated based on 3Q’15 actual results with adjustments to reflect a full quarter of income/expense (as estimated in the Company’s underwriting models) associated with the acquisitions described under “Acquisition Activity” above, as well as the related financings.
The pro forma information included herein are illustrative/hypothetical values and do not represent New Senior’s historical performance or management’s projections for any future reporting period.
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 November 5, 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 Third 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 December 5, 2015 by dialing (855) 859-2056 (from within the U.S.) or (404) 537-3406 (from outside the U.S.); please reference access code “60708069.”
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 154 properties located across 37 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.
http://www.businesswire.com/news/home/20151105005579/en/Senior-Announces-Quarter-2015-Results
Enterprising Investor
9 years ago
Walker & Dunlop Closes $465 Million Financing for New Senior Investment Group, Inc. (8/19/15)
BETHESDA, Md., Aug. 19, 2015 /PRNewswire/ -- Walker & Dunlop, Inc. (NYSE: WD) (the "Company") announced today it originated 28 loans totaling $464,680,000, secured by a portfolio of 28 independent living properties acquired by New Senior Investment Group, Inc. (the "Sponsor").
Vice Presidents Russell Dey and Laura Beaton led the Walker & Dunlop team that closed the portfolio. The properties are located in 21 states with the highest concentration in California, Florida, North Carolina, and Oregon. The loans were structured as 10-year fixed rate CME loans with five years interest-only, followed by a 30 year amortization schedule, utilizing the Freddie Mac Seller/Servicer Program. The properties were sold to the Sponsor by affiliates of Holiday Retirement, the 2nd largest operator of seniors housing in the United States, who will continue to manage the properties post acquisition. The Walker & Dunlop team previously closed a 52-property portfolio for the Sponsor in April 2015.
Chairman and CEO of Walker & Dunlop, Willy Walker, commented, "Walker & Dunlop established a strategy to grow our seniors housing lending business dramatically in 2015, and with this financing, we have done over $1.2 billion of seniors financing this year. This is the second major financing we have done for New Senior this year, reflective of the great partnership we have created with one of the fastest growing seniors housing owners in the industry."
New Senior Investment Group (NYSE: SNR) is one of the largest publicly-traded owners of senior housing properties, with a portfolio of 152 properties including independent living and assisted living/memory care, located throughout the country.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has almost 500 professionals in 24 offices across the nation with an unyielding commitment to client satisfaction.
http://www.prnewswire.com/news-releases/walker--dunlop-closes-465-million-financing-for-new-senior-investment-group-inc-300130924.html
Enterprising Investor
9 years ago
New Senior Announces Completion of $640 Million Acquisition of Independent Living Assets (8/17/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today that it completed on August 12, 2015 the previously announced acquisition of 28 private pay, independent living properties (the “Portfolio”) from affiliates of Holiday Retirement (“Holiday”) for $640 million. The Portfolio is 100% private pay, contains 3,298 units located across 21 states and had an average occupancy rate of 89.8% for July 2015. The Portfolio will continue to be operated by Holiday under new property management agreements.
The acquisition of the Portfolio was funded with cash on hand and proceeds from a fixed rate, 10-year first mortgage loan (the “Loan”). The Loan, which was obtained from Freddie Mac through Walker & Dunlop, is secured by the Portfolio. The aggregate amount of the Loan is approximately $465 million, and the Loan bears interest at a fixed rate of 4.25%. As a result of the proceeds from the Loan being approximately $15 million higher than originally expected, the Company intends to pay down $15 million of existing floating rate debt on September 1, 2015.
“This acquisition further increases our industry-leading private pay senior housing exposure to 92% of our NOI,” New Senior Chief Executive Officer Susan Givens said. “As the largest operator of independent living properties in the United States, Holiday has a strong track record of outstanding performance for our existing portfolio, and we are excited to grow our relationship with them. In addition, the financing further improves our balance sheet by extending the average maturity of our total debt and increasing our fixed rate debt to approximately 60% of our total debt.”
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 one of the largest owners of senior housing properties and currently owns 152 properties in 37 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 http://www.newseniorinv.com.
http://www.businesswire.com/news/home/20150817006279/en/Senior-Announces-Completion-640-Million-Acquisition-Independent#.VdJO8yGFOUk
Enterprising Investor
9 years ago
New Senior Announces Second Quarter 2015 Results (8/06/15)
SECOND QUARTER NORMALIZED FFO PER SHARE OF $0.36
$1.2 BILLION OF ACQUISITIONS ANNOUNCED/COMPLETED YEAR TO DATE
NEW YORK--(BUSINESS WIRE)--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.”
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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.
http://www.businesswire.com/news/home/20150806005495/en/Senior-Announces-Quarter-2015-Results#.VcPiICHbKUk
Enterprising Investor
9 years ago
New Senior Announces Pricing of Public Offering of Common Stock (6/23/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today the pricing of a public offering of 17,500,000 shares of its common stock at a public offering price of $13.75 per share for gross proceeds of approximately $241 million. The offering is expected to close on June 29, 2015, subject to customary closing conditions.
connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 2,625,000 shares of common stock from the Company.
The Company intends to use the net proceeds from the offering to fund a portion of the purchase price for a $640 million portfolio of independent living senior housing properties, which the Company entered into an agreement to purchase on June 22, 2015, and for general corporate purposes, which may include, but are not limited to, funding additional acquisitions.
BofA Merrill Lynch, Citigroup and Morgan Stanley are the joint book-running managers for the offering. The offering is being made pursuant to the Company’s existing effective shelf registration statement, previously filed with the Securities and Exchange Commission. The offering is being made only by means of a prospectus and a related prospectus supplement. Copies of the prospectus and prospectus supplement may be obtained from: BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department or by emailing dg.prospectus_requests@baml.com; Citigroup, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717 or by calling (800) 831-9146 or by emailing prospectus@citi.com; or Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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 one of the largest owners of senior housing properties and currently owns 124 properties in 32 states. New Senior is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.
http://www.businesswire.com/news/home/20150623006717/en/Senior-Announces-Pricing-Public-Offering-Common-Stock#.VYqabNjbKP8
Enterprising Investor
9 years ago
New Senior Announces Public Offering of Common Stock (6/22/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today the commencement of a public offering of 17,500,000 shares of its common stock.
In connection with the offering, the Company intends to grant the underwriters a 30-day option to purchase up to an additional 2,625,000 shares of common stock from the Company.
The Company intends to use the net proceeds from the offering to fund a portion of the purchase price for a $640 million portfolio of independent living senior housing properties, which the Company today entered into an agreement to purchase, and for general corporate purposes, which may include, but are not limited to, funding additional acquisitions.
BofA Merrill Lynch, Citigroup and Morgan Stanley are the joint book-running managers for the offering. The offering will be made pursuant to the Company’s existing effective shelf registration statement, previously filed with the Securities and Exchange Commission (the “SEC”). The offering will be made only by means of a prospectus and a related prospectus supplement. Copies of the prospectus and prospectus supplement may be obtained from: BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department or by emailing dg.prospectus_requests@baml.com; Citigroup, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717 or by calling (800) 831-9146 or by emailing prospectus@citi.com; or Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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 one of the largest owners of senior housing properties and currently owns 124 properties in 32 states. New Senior is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.
http://www.businesswire.com/news/home/20150622006362/en/Senior-Announces-Public-Offering-Common-Stock#.VYiB3InbKUk
Enterprising Investor
9 years ago
New Senior Announces Agreement to Acquire $640 Million of High Quality Senior Housing Assets (6/22/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today it has entered into an agreement to acquire a 28-property portfolio of private pay, independent living senior housing properties (the “Portfolio”) from affiliates of Holiday Retirement (“Holiday”) for approximately $640 million. The Company expects to invest approximately $190 million of equity and incur approximately $450 million of debt to acquire the Portfolio.
The Portfolio is 100% private pay and contains 3,298 independent living units located across 21 states and had an average occupancy rate of 88% as of May 2015. The Portfolio is currently operated by Holiday, and the Company expects Holiday will continue to operate the Portfolio following the closing of the acquisition under new property management agreements. The Company expects the Portfolio to generate an initial cash net operating income (“NOI”) yield (after property management fees) of approximately 6.4%.
“We are excited to add 28 independent living properties to our portfolio through this accretive acquisition. This transaction further increases our industry-leading private pay senior housing NOI exposure to 91% of our portfolio,” New Senior Chief Executive Officer Susan Givens said.
Upon closing of the acquisition, the Company’s portfolio will include 152 properties with approximately 18,900 beds across 37 states.
Strategic Benefits of the Acquisition
• Increased and Industry-Leading Private Pay Senior Housing NOI: Upon closing, the Company expects NOI from private pay independent living and assisted living / memory care communities to increase to approximately 91%, the highest among the publicly-traded healthcare REITs. New Senior’s portfolio will be attractively balanced between business models, with its managed portfolio expected to account for approximately 51% of NOI and its triple-net leased portfolio expected to account for approximately 49% of NOI following the acquisition.
• High-Quality Portfolio with an Attractive Yield and Growth Potential: The Portfolio has strong occupancy of 88%. Furthermore, the Portfolio generated strong NOI margins (after property management fees) of approximately 40% for the first quarter of 2015 and is expected to generate an initial cash NOI yield of approximately 6.4%.
• Additional Geographic Diversification: The acquisition will increase the geographic diversification of the Company’s portfolio, adding five new states (AR, SD, SC, HI and IN). Following the acquisition, New Senior’s portfolio will span 37 states.
• Expanded Relationship with a Proven Best-in-Class Senior Housing Operator: The Company expects Holiday, the largest independent living operator in the U.S. with over 300 properties in 43 states, to continue to manage the properties after the closing of the acquisition, which should allow for a seamless transition in the property operations. The terms of the management agreement will include a base management fee along with an incentive fee to align the interests of Holiday and New Senior in driving performance and growth. Holiday is majority owned by private equity funds managed by an affiliate of the Company’s manager.
• Accretive Transaction: The Company expects the acquisition to be accretive to the Company’s adjusted funds from operations (“AFFO”) and normalized funds available for distribution (“Normalized FAD”).
The Company expects the closing of the acquisition to occur by the third quarter of 2015. The closing is subject to customary closing conditions, and there can be no assurance as to the timing or the occurrence of the closing.
The transaction was unanimously approved by a committee of the Company’s Board of Directors composed of the Company’s independent directors (the “Transaction Committee”), with Greenhill & Co., LLC acting as the Transaction Committee’s financial advisor and Davis Polk & Wardell LLP acting as its legal advisor. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Holiday.
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 one of the largest owners of senior housing properties and currently owns 124 properties in 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.
http://www.businesswire.com/news/home/20150622006316/en/Senior-Announces-Agreement-Acquire-640-Million-High#.VYiBBonbKUk
Enterprising Investor
9 years ago
New Senior Declares Common Stock Dividend of $0.23 Per Share (4/06/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today that its Board of Directors has declared a cash dividend on its common stock of $0.23 per share for the quarter ending March 31, 2015. The dividend is payable on April 30, 2015 to shareholders of record on April 17, 2015.
The Company also announced that it intends to declare its future quarterly dividends in conjunction with the announcement of its quarterly earnings. As a result, the next quarterly dividend is expected to be declared at the time the Company announces its results for the quarter ending June 30, 2015.
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 one of the largest owners of senior housing properties and currently owns 121 properties in 31 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.
Contacts
For New Senior Investment Group Inc.
Investor Relations
David Smith, 212-479-3140
http://www.businesswire.com/news/home/20150406005857/en/Senior-Declares-Common-Stock-Dividend-0.23-Share#.VSMGdoktGUk
Enterprising Investor
9 years ago
New Senior Announces Completion of $435 Million Senior Housing Acquisition and Closing of $670 Million Freddie Mac Financing (3/30/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE: SNR) announced today that it has completed the previously announced acquisition of 17 private pay, independent living senior housing properties from affiliates of Hawthorn Retirement Group for approximately $435 million (the “Hawthorn Acquisition”). The portfolio is 100% private pay, contains 2,082 units located across 10 states and had an average occupancy rate of 92.6% for February 2015. The portfolio will be operated by Holiday Retirement, and the Company expects the portfolio to generate an NOI yield of approximately 6.3%. The acquisition was funded with cash on hand and proceeds from a first mortgage loan.
The Company also completed a $670 million first mortgage loan (the “Loan”) secured by 52 senior housing properties with Freddie Mac through Walker & Dunlop. The Loan bears interest at LIBOR + 234bps and has a seven year maturity. Proceeds from the Loan were used to refinance existing floating rate debt and to fund acquisitions, including the Hawthorn Acquisition.
”We are excited to add to our portfolio this collection of high-quality, independent living senior housing assets, which will further increase our private pay exposure,” New Senior Chief Executive Officer Susan Givens said. “With an average asset age of seven years and strong occupancy of 92.6%, we expect continued strong growth from this portfolio. In addition, we continue to make progress toward improving our capital structure with New Senior’s $670 million financing with Freddie Mac. The financing was executed at a very attractive rate and lowers the financing cost on our existing debt while also providing attractive financing terms for our new acquisitions.”
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 one of the largest owners of senior housing properties and currently owns 121 properties in 31 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.
http://www.businesswire.com/news/home/20150330005612/en/Senior-Announces-Completion-435-Million-Senior-Housing#.VRlPAYktGUk
Enterprising Investor
9 years ago
New Senior Announces Agreement to Acquire $435 Million of Senior Housing Assets and the Closing of a $16 Million Senior Housing Acquisition (12/22/14)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today it has entered into an agreement to acquire a 17-property portfolio of private pay, independent living senior housing properties (the “Portfolio”) from affiliates of Hawthorn Retirement Group LLC for approximately $435 million. The Company expects to invest approximately $135 million of existing cash to acquire the Portfolio and to fund the remainder of the purchase price with debt.
The Portfolio is 100% private pay and contains 2,082 units located across 10 states and had an average occupancy rate of 92% for November 2014. The Portfolio is currently operated by Holiday Retirement (“Holiday”), and the Company expects Holiday to continue to operate the Portfolio under a new property management agreement. The Company expects the Portfolio to generate a net operating income (“NOI”) yield (after management fees) of approximately 6.3%.
“As the only pure play senior housing REIT, this transaction is consistent with our strategy of focusing on owning private pay senior housing assets, and we are excited to add 17 high-quality independent living properties to our portfolio,” New Senior Chief Executive Officer Susan Givens said.
The Company’s portfolio, inclusive of the Portfolio, will include 117 properties with over 14,500 beds across 30 states.
Strategic Benefits of the Acquisition
• Increased Private Pay Senior Housing NOI: Upon closing, the Company expects cash NOI from private pay independent living and assisted living / memory care communities to increase from 91% as of the third quarter of 2014 to approximately 93%. New Senior’s portfolio will be attractively balanced between business models, with its managed portfolio expected to account for approximately 48% of cash NOI and its triple-net leased portfolio expected to account for approximately 52% of NOI following the acquisition.
• Newer, High-Quality Portfolio with an Attractive Yield and Growth Potential: The Portfolio has an average age of only 6 years and strong occupancy of 92% for November 2014. Furthermore, the Portfolio generates strong NOI margins (after management fees) of approximately 45% and is expected to generate a NOI yield of approximately 6.3%.
• Additional Geographic Diversification: The acquisition will increase the geographic diversification of the Company’s portfolio, adding three new states (MA, WA and NE). Following the acquisition, New Senior’s portfolio will span 30 states.
• Expanded Relationship with Best-in-Class Senior Housing Operator: The Company expects Holiday, the largest independent living operator in the U.S. with over 300 properties in 43 states, to continue to manage the properties upon closing of the transaction, which should allow for a seamless transition in the property operations. Holiday is owned by private equity funds managed by an affiliate of the Company’s manager.
• Enhances New Senior’s Scale: Upon closing, New Senior will own a portfolio of 117 senior housing properties that is expected to generate annual NOI in excess of $180 million (calculated as annualized Q3 NOI plus the projected annual NOI from the acquisition).
The Company expects the closing of the acquisition to occur by the end of the first quarter of 2015. The closing is subject to customary closing conditions, and there can be no assurance as to the timing or the occurrence of the closing.
The Company intends to post a presentation about the acquisition on its website, www.newseniorinv.com.
Illinois Acquisition
Separately, the Company announced it has acquired a 66-bed memory care community located in Illinois for $15.7 million at an NOI yield of 7.8%. The community, built in 2012, will continue to be managed by JEA Senior Living, a leading senior housing operator with over 25 years of operating experience and a current portfolio of 46 properties in 16 states.
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 one of the largest owners of senior housing properties and currently owns 100 properties in 27 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.
http://www.businesswire.com/news/home/20141222005102/en/Senior-Announces-Agreement-Acquire-435-Million-Senior#.VJgbPVs4
Enterprising Investor
9 years ago
New Senior Announces Completion of Spin-Off from Newcastle (11/07/14)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) today announced that its spin-off from Newcastle Investment Corp. (NYSE:NCT; “Newcastle”) was successfully completed on November 6, 2014. Starting on November 7, 2014, New Senior will begin trading on the New York Stock Exchange under the symbol “SNR.”
Holders of Newcastle common stock as of the record date, October 27, 2014, have been electronically issued one share of New Senior common stock for each share of Newcastle common stock held as of the record date.
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 one of the largest owners of senior housing properties and currently owns 99 properties in 27 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.
http://www.businesswire.com/news/home/20141107005073/en/Senior-Announces-Completion-Spin-Off-Newcastle#.VFzQpIl0yUk
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