New Senior Investment Group Inc. (SNR)

[Enterprising Investor]

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