AGM Presentation - Investor Relations

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AGM Presentation - Investor Relations

Amica 2012

Annual Meeting

of Shareholders

2

September 27, 2012

www.amica.ca


THE AMICA BRAND: Innovation & Execution

Colin Halliwell, Chief Operating Officer

www.amica.ca


A BRAND

“A Brand is that

quintessential

quality that makes

people believe

there is absolutely

no substitute.”

t Milton Glaser,

Designer of I Love NY Logo

www.amica.ca


Wellness &

People Marketing Dining Physical

Vitality

Building

Operating

Standards

d

www.amica.ca


PEOPLE

• Caring

• Passionate

• Positive

• Enthusiastic

• Service Oriented

• Ethical

• Motivated

• Team Players

• Professional

• Genuine

• Qualified

• Supportive

• Energetic

• Compassionate

www.amica.ca


WELLNESS & VITALITY

• Wellness & Vitality Centre

• Wellness & Vitality Coordinators

• mPOWER Program

• Innovative Exercise Programs

• Social activities

• Home theatre and lectures

• Crafts and hobbies

• Bus outings

• Internet lounges

• Lifeline system

• Assisted Living (VITALIS) Floor

• Assisted Living services (VITALIS)

www.amica.ca


MARKETING

• The very best marketing staff

Relationship marketing strategy

• National brand identity program

• Leading edge advertising programs

• Amica graphics & design standards

• Strong Head Office marketing support

• Comprehensive website

• High quality collateral materials

• Educational Programs

• Advocate for seniors

• Shatter stereotypes

• Social media strategy

www.amica.ca


DINING SERVICES

• Highest quality food & service

• Hospitality trained staff (managed by

executive chef)

• Dietary programs managed by

Registered Dietitian

• Fine dining experience

• Choices & excitement in daily dining

(bistro, café, etc.)

• Family & holiday dining

• English pub

• Private dining room

• Open seating

www.amica.ca


PHYSICAL BUILDINGS

• Industry leading environmental

design for mature lifestyles

• Quality construction and reliable

building systems

• Ergonomically appropriate furniture,

fixtures and equipment

• Stimulating suite plans

• Safe and supportive interior &

exterior environments

• Wide range of recreational amenity

& functional spaces

• Energy efficient “smart” building

systems

• Optimally maintained premises

• Asset management support from

Head Office

www.amica.ca


OPERATING STANDARDS

• Comprehensive Policies & Procedures

for Mature Adults

• Amica intranet company wide

communication and reporting

• On-going employee training &

induction programs

• HR and employee relations support

• Employee health & safety programs

• Best hiring practices

• Life, fire & safety programs

• Staff appreciation awards & programs

• Preventative & on-going maintenance

programs

• Power-buying programs for furniture,

fixtures and equipment

www.amica.ca


Wellness &

People Marketing Dining Physical

Vitality

Building

Operating

Standards

d

www.amica.ca


OUR BRAND IS

100% RESIDENT

FOCUSED

www.amica.ca


Every decision we make

Choices and flexibility

www.amica.ca


is centred on what is best for our

www.amica.ca


Residents

www.amica.ca


A SEAMLESS BLEND OF

HOSPITALITY

&

CLINICAL

www.amica.ca


www.amica.ca

Successful Branding is GLOBAL


Brand Equity = The value of the brand

$4.99 $24.99

www.amica.ca


Amica’s Brand Equity is reflected in our occupancy levels and the rents we achieve

Mature same community occupancy & MARPAS

www.amica.ca


OCCUPANCY OVERVIEW

www.amica.ca


96%

OCCUPANCY

Occupancy Trend in Mature Communities

94%

92%

90%

88%

86%

May-08 Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12

Achieving close to historical occupancy levels:

94.5% at May 31, 2012, last achieved in August 2008

www.amica.ca


OCCUPANCY

Overall Occupancy Trend in Mature Communities

96%

94%

92%

90%

88%

86%

Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

94.5% at May 31, 2012, a 2.4% increase from 92.1% at

May 31, 2011

www.amica.ca


OCCUPANCY

Occupancy Trend in Mature Communities - WEST

98%

97%

96%

95%

94%

93%

92%

Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

97.0% at May 31, 2012, a 0.9% increase from 96.1% at

May 31, 2011

www.amica.ca


OCCUPANCY

Occupancy Trend in Mature Communities - EAST

94%

93%

92%

91%

90%

89%

88%

Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

92.6% at May 31, 2012, a 3.5% increase from 89.1% at

May 31, 2011

www.amica.ca


MANAGEMENT FEE GROWTH PIPELINE

Overall occupancy for communities in lease-up

70% 1,152 suites in lease-up

65%

60%

66.1% at May 31, 2012, up

from 42% at August 31, 2010

55%

50%

45%

40%

35%

30%

Significant upside as

communities in

lease-up reach

stabilized levels

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12* Q4/12*

* Includes Quinte Gardens

www.amica.ca


MARPAS

KEY ECONOMIC DRIVER

MARPAS = Monthly Average Revenue Per Available Suite

‣ Yield management concept similar to hospitality industry Revenue per

Available Room calculation

Mature same

community

MARPAS

$3,820

29 consecutive YOY

$3,780 increases in MARPAS

$3,740

Fiscal 2012

Fiscal 2011

Fiscal 2010

$3,700

$3,660

$3,620

$3,580

$3,540

$3,500

$3,460

$3,420

$3,380

$3,340

$3,300

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

www.amica.ca


AMICA BRAND: Innovation

Continue to develop and implement new

programs, services and standards with our

vision in mind: “To be the best in the world at

delivering superior Wellness & Vitality within

exceptional independent living retirement

communities.”

www.amica.ca


Strategy is Great…

Execution is Everything.

www.amica.ca


AMICA BRAND: Execution

Treat our employees fairly and with respect

+

Through their service excellence deliver our

BRAND promise

=

Strong Occupancy and MARPAS Results

www.amica.ca


STATE OF THE BUSINESS ADDRESS

Samir Manji, Chairman, President & CEO

www.amica.ca


AGENDA

• Fiscal 2012 – Key Highlights

• Portfolio Growth

• Fiscal 2013

- S.M.A.R.T. Growth II

- Key Areas of Focus

• Growth Opportunities

• Questions

www.amica.ca


FISCAL 2012 – KEY HIGHLIGHTS

www.amica.ca


FISCAL 2012 – KEY HIGHLIGHTS

Began F2012 at

92.1% overall

occupancy in

mature

communities

Ended F2012 at

94.5% overall

occupancy in

mature communities

July 2011

commenced

construction on

Amica at

Aspen Woods

Nov 2011

Launched

bought deal

financing &

announced

Quinte

Gardens

acquisition

Jan 2012

Completed

Quinte

Gardens

acquisition

& $34.3M

3M

bought deal

equity

financing

Mar 2012

Increased

ownership

in Amica at

Dundas to

50% from

17%

May 2012

Closed

$28.2M

bought deal

equity

financing

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12

www.amica.ca


Suites

4,500

PORTFOLIO GROWTH

Portfolio

4,000 Portfolio

Development Program

3,500

Portfolio

Portfolio

Operating

3,000

2,500

ACC

Owned

ACC

Owned

2,000

1,500

ACC

Owned

ACC

Owned

1,000 62% increase in

suites

owned by Amica

500

0

31-May-10 31-May-11 31-May-12 1-Sep-12

Includes increase in ownership in

Westboro Park & Bearbrook

Note: Richmond Hill is excluded from all figures

www.amica.ca


FISCAL 2013: S.M.A.R.T GROWTH II

www.amica.ca


FISCAL 2013

SMART S.M.A.R.T. Growth II

Sustainable – commitment to ensure all

decisions are sustainable in the long term

Managed – discipline with which we intend

to manage our growth and all implications

associated with growth opportunities we

pursue

Action – commitment to ensure we execute

effectively on all fronts including corporate

operations and our communities

Right – doing the right thing when it comes

to all decisions and actions

Tangible – responsibility to ensure growth

translates into strong shareholder value

creation

www.amica.ca


KEY AREAS OF FOCUS FOR FISCAL 2013

1. Leasing and increased occupancy for communities in

lease-up

2. MARPAS, occupancy and net operating income growth for

mature communities

3. Identifying opportunities for increased ownership in existing

Amica communities, acquisitions of externally developed

retirement residences and obtaining new development sites

4. Commencing construction one or more new developments

including those currently in pre-development

5. Growing dividends and Amica’s capital market profile

www.amica.ca


GROWING OUR MARKET

CAPITALIZATION

Expressed in millions

$300

$250

$272M

$291M

$200

$191M

$150

$100

$50

$62M

$107M

$-

31-May-09 31-May-10 31-May-11 31-May-12 15-Sep-12

www.amica.ca


GROWTH OPPORTUNITIES

1. Opportunity for future “internal consolidations” through

increasing ownership in existing communities

2. Acquisition opportunities that Amica is proactively seeking

which can be readily transitioned to the Amica brand

3. Development of new Amica communities and expansion of

some existing Amica communities

4. Significant upside in occupancy as communities in lease-up

reach stabilized levels (i.e. 95% and higher) and increase in

rents to market on turnover

5. Increasing management fee revenues and EBITDA as new

communities lease-up

www.amica.ca


QUESTIONS

www.amica.ca

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