NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (NYSE: SNR) announced today its results for the quarter ended and full year ended December 31, 2020.

FULL YEAR 2020 & FOURTH QUARTER 2020 FINANCIAL HIGHLIGHTS

• Full year 2020 highlights:
  • Net loss of $6.2 million or $(0.08) per diluted share
  • Total net operating income (“NOI”) of $138.2 million; total same store cash NOI of $135.8 million
  • Total same store cash NOI decreased 5.1% versus full year 2019
  • Adjusted Funds from Operations (“AFFO”) of $59.1 million, or $0.71 per diluted share, above the midpoint of the Company’s 2020 revised expectations

• Fourth quarter 2020 highlights:
  • Declared a dividend of $0.065 per common share
  • Net loss of $3.8 million or $(0.05) per diluted share
  • Total NOI of $33.7 million; total same store cash NOI of $32.5 million
  • Total same store cash NOI decreased 9.6% versus fourth quarter 2019
  • Normalized Funds from Operations (“Normalized FFO”) of $13.5 million, or $0.16 per diluted share
  • AFFO of $14.5 million, or $0.17 per diluted share
  • Normalized Funds Available for Distribution (“Normalized FAD”) of $12.8 million, or $0.15 per diluted share

FULL YEAR 2020 HIGHLIGHTS

• Despite declining occupancy and additional operating expenses related to COVID-19, delivered solid full year 2020 total same store cash NOI and AFFO per diluted share results, consistent with and above the midpoint of the Company’s 2020 revised expectations, respectively
• Completed the sale of the entire Assisted Living/Memory Care portfolio in February 2020, for a gross sale price of $385 million (the “AL/MC Transaction”)
• In conjunction with the AL/MC Transaction, significantly strengthened the balance sheet through the following activities:
  • Repaid approximately $360 million of debt with proceeds from the AL/MC Transaction
  • Completed nearly $400 million of debt refinancing activity, resulting in lower debt costs and an extension of the Company’s average debt maturity by two years at that time
• Took significant steps during the COVID-19 pandemic to manage its impact on the Company’s business:
  • Worked closely with the Company’s operators to implement and adapt protocols and operating strategies to protect the health and safety of residents and associates, while promoting leasing activities and effectively managing expenses
  • Further improved the balance sheet by entering into a 5-year $270 million interest rate swap, increasing the Company’s fixed rate exposure from 52% to 72%
  • Reduced cash general & administrative expenses through targeted initiatives
• Repaid $20 million of preferred stock issued at the time of the Company’s internalization

RECENT BUSINESS HIGHLIGHTS

• Announced new strategic partnership with Atria Senior Living (“Atria”), which includes the transition of the management of 21 properties, marking an important step in the Company’s ongoing efforts to address operator diversification and alignment
• Significant progress being made on vaccine distribution as 83% of the communities in the Company’s portfolio have held at least one vaccine clinic or have a confirmed provider for a future clinic
• Rate of new COVID-19 cases within the Company’s portfolio has declined significantly over the last few weeks – trailing 7-day average of approximately 3 new cases per day is down 78% from the January peak of approximately 13 new cases per day
• Continued to improve corporate governance and appointed two new independent directors to the Board of Directors since November 2020
• Issued 1Q21 guidance based on latest trends and results

Susan Givens, President & Chief Executive Officer of the Company commented, “Concluding an incredibly challenging year, all of us at New Senior are extremely grateful to our operators and the associates at our communities for their dedication and responsiveness throughout the ongoing COVID-19 pandemic. Despite a rise in cases during the fourth quarter, our operators continued to effectively manage the impact of COVID-19 within our communities through their unwavering focus and tenacity. While the pandemic continues to have a significant impact on our business, we are encouraged by the recent declines in case counts nationally and within our communities.”

Givens continued, “We continue to see features unique to our Independent Living properties that have allowed our operators to adjust protocols within our communities and effectively manage the spread of the virus while also reducing expenses in response to lower occupancy levels. Further, decisions we made heading into 2020 to strengthen our balance sheet with lower-cost floating rate debt allowed us to significantly benefit from the volatility in the interest rate environment. As a result, we are pleased to finish 2020 with AFFO per share results consistent with both our revised expectations, as well as with the initial guidance that we provided in February 2020 prior to the onset of the pandemic.”

“Going forward, we remain focused on continuing to safely navigate through the pandemic and position New Senior for growth. To that end, I am excited to announce our new partnership with Atria Senior Living, a best-in-class senior housing operator. Atria is one of the most well-respected operators in the industry and has a proven track record of driving strong occupancy and financial performance at communities similar to those in our transition portfolio. In addition to transitioning 21 communities to Atria under an incentive-aligned management contract, we expect the relationship to improve our operator diversification, provide new perspectives on the long-term performance of our Independent Living portfolio and additional growth opportunities,” Givens concluded.

STRATEGIC PARTNERSHIP WITH ATRIA SENIOR LIVING

New Senior announced today that it has entered into a strategic partnership with Atria Senior Living, which represents a significant step in the Company’s ongoing efforts to address operator diversification and alignment. Under the terms of the new partnership, New Senior intends to transition the management of 21 properties from Holiday Retirement (“Holiday”) to Atria in the second quarter of 2021. Post-transition, Atria will manage 20% of the properties in the Company’s Independent Living portfolio and Holiday will continue to be its largest operator relationship, managing 75% of its Independent Living properties.

Atria is a leading national operator of senior housing communities across the United States and Canada, including independent living communities similar to those within New Senior’s portfolio. They have a proven track record of successfully transitioning other independent living portfolios and improving occupancy and financial results. Atria’s experienced management team has built a data-driven organization which utilizes proprietary tools and technologies to optimize sales and operations. Over the past year, they have been at the forefront of the senior housing industry’s response to the COVID-19 pandemic and have taken extensive actions to combat the pandemic. New Senior expects these transitions to drive strong performance at these properties over time.

New Senior expects the partnership to result in the following benefits:

• Establishes relationship with one of the largest and most innovative operators in the senior housing industry
• Improves operator diversification
• Creates alignment between owner and operator through incentive-driven management agreement
• Provides the Company with new perspectives and best practices to drive long-term, organic growth
• Access to experienced development team with a strong track record of managing capital expenditure projects
• Cultivates future growth opportunities

FOURTH QUARTER 2020 RESULTS

FULL YEAR 2020 RESULTS

(A) See end of press release for reconciliation of non-GAAP measures to net loss.

FOURTH QUARTER 2020 GAAP RESULTS

New Senior recorded a GAAP net loss of $3.8 million, or $(0.05) per diluted share, for the fourth quarter of 2020, compared to a GAAP net loss of $6.7 million, or $(0.08) per diluted share, for the fourth quarter of 2019. The year-over-year increase was primarily driven by the reduction of interest expense.

FOURTH QUARTER AND FULL YEAR 2020 PORTFOLIO PERFORMANCE

		Same Store Cash NOI - Fourth Quarter
		Properties		4Q 2019			4Q 2020			YoY
IL Properties		102		$	34,502		$	31,011		(10.1%)
CCRC		1			1,450			1,490		2.7%
Total Portfolio		103		$	35,952		$	32,501		(9.6%)
Total Portfolio		103		$	35,952		$	32,501		(9.6%)
COVID-19 Related Expenses		-			-			442		-
Total Portfolio Adjusted for COVID-19 Related Expenses		103		$	35,952		$	32,943		(8.4%)
		Same Store Cash NOI - Full Year
		Properties		2019			2020			YoY
IL Properties		102		$	137,307		$	129,870		(5.4%)
CCRC		1			5,749			5,907		2.7%
Total Portfolio		103		$	143,056		$	135,777		(5.1%)
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