New Senior Investment Group Inc. (SNR)

[Enterprising Investor]

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 [phone] (from within the U.S.) or [phone] (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 [phone] (from within the U.S.) or [phone] (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.

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