REPOSITIONING FOR SUSTAINABILITY AND THE NEW CONSUMER FIFTY IS THE - - PowerPoint PPT Presentation

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REPOSITIONING FOR SUSTAINABILITY AND THE NEW CONSUMER FIFTY IS THE - - PowerPoint PPT Presentation

Nov 07, 2022 363 likes •1.11k views

REPOSITIONING FOR SUSTAINABILITY AND THE NEW CONSUMER FIFTY IS THE NEW THIRTY MICHELLE JUST PRESIDENT AND CEO, BEATITUDES CAMPUS PHASE I 2000 2008 Master Planning Process 199 Central Park Apartments Phase I 124 Courtyard Apartments

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REPOSITIONING FOR SUSTAINABILITY AND THE NEW CONSUMER

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FIFTY IS THE NEW THIRTY

MICHELLE JUST

PRESIDENT AND CEO, BEATITUDES CAMPUS

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PHASE I

2000 – 2008 Master Planning Process 199 Central Park Apartments – Phase I 124 Courtyard Apartments – Phase II Town Plaza Completion

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TOWN PLAZA 2008

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ALIGNING PARTNERSHIPS

 Beatitudes Campus Executive Team  Beatitudes Campus Board of Directors  Sawgrass Partners  Ziegler  Orcutt Winslow  Angell Marketing

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COLLABORATIVE APPROACH

 Multiple plan options  Isolating the best approach

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50 50

Is Is Fiv Five e Perf erfect ect

0s 1

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PLAYING WITH THE NUMBERS

MARK STREICHER

PRINCIPAL, SAWGRASS PARTNERS

The importance of financial planning in developing a successful project

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MASTER PLANNING PREREQUISITES

Strategic Planning

  • Mission & Vision
  • Environmental Assessment –

Internal & External

  • Strategic goals to meet the

mission & vision

  • Prioritized strategic initiatives

Market Research

  • Demographic, economic &

consumer trends

  • Competitive landscape
  • Market risks & opportunities
  • Preliminary project parameters,

such as size & pricing

Financial Analysis

  • Existing debt covenants & debt

incurrence provisions

  • Debt capacity analyses
  • High-level analysis of

incremental project capacity

  • vs. cost
  • Detailed, multi-year financial

projections

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KEY DEVELOPMENT LEVERS

Existing Liquidity & Debt Capacity Incremental Project Capacity Project Costs Plan of Finance

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EXISTING LIQUIDITY & DEBT CAPACITY

Building Capacity to Act Debt Covenants Improving Current Operations

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IMPROVING CURRENT OPERATIONS

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INCREMENTAL CAPACITY FROM PROJECT

 Density  Incremental Revenues & Expenses  Initial & Turnover Entrance Fees

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YTD Actual Annualized 8/31/13 Phase I Combined Existing and Phase I Phase II Combined Existing, Phase I and Phase II Phase III Total Project Income available for Debt Service 3,230,000 $ 1,270,000 $ 4,500,000 $ 2,011,000 $ 6,511,000 $

  • $

6,511,000 $ Net Turnover EF received 2,000,000 $ 390,000 $ 2,390,000 $ 922,000 $ 3,312,000 $

  • $

3,312,000 $ Income available for Debt Service 5,230,000 $ 1,660,000 $ 6,890,000 $ 2,933,000 $ 9,823,000 $

  • $

9,823,000 $ Debt Service Coverage Target 1.40 1.40 1.40 1.40 1.40 1.40 1.40 Annual Debt Service 3,736,000 $ 1,186,000 $ 4,922,000 $ 2,095,000 $ 7,017,000 $

  • $

7,017,000 $ Long-term Debt Capacity 46,360,000 $ 14,717,000 $ 61,077,000 $ 25,997,000 $ 87,074,000 $

  • $

87,074,000 $ Short-Term Debt Capacity

  • $

11,080,000 $ 11,080,000 $ 26,195,000 $ 37,275,000 $

  • $

37,275,000 $ Total Debt Capacity 46,360,000 $ 25,797,000 $ 72,157,000 $ 52,192,000 $ 124,349,000 $

  • $

124,349,000 $ Less: Existing Debt (22,028,000) $

  • $

(22,028,000) $

  • $

(22,028,000) $

  • $

(22,028,000) $ Less: Financing Related Costs 18% (8,345,000) $ (4,643,000) $ (12,988,000) $ (9,395,000) $ (22,383,000) $

  • $

(22,383,000) $ Incremental Project Cost Capacity 15,987,000 $ 21,154,000 $ 37,141,000 $ 42,797,000 $ 79,938,000 $

  • $

79,938,000 $ Estimated Project Costs

  • $

30,145,000 $ 30,145,000 $ 49,142,000 $ 79,287,000 $ 4,620,000 $ 83,907,000 $ 15,987,000 $ (8,991,000) $ 6,996,000 $ (6,345,000) $ 651,000 $ (4,620,000) $ (3,969,000) $ Liquidity Existing 8/31/13 balances: Cash and cash equivalents 1,427,000 $ 1,427,000 $ 1,427,000 $ 1,427,000 $ 1,427,000 $ 1,427,000 $ 1,427,000 $ Current portion of AWUIL 2,034,000 $ 2,034,000 $ 2,034,000 $ 2,034,000 $ 2,034,000 $ 2,034,000 $ 2,034,000 $ Long-term portion of AWUIL 6,137,000 $ 6,137,000 $ 6,137,000 $ 6,137,000 $ 6,137,000 $ 6,137,000 $ 6,137,000 $ Total Existing Cash and AWUIL 9,598,000 $ 9,598,000 $ 9,598,000 $ 9,598,000 $ 9,598,000 $ 9,598,000 $ 9,598,000 $ Projected DSRF 3,736,000 $ 4,922,000 $ 4,922,000 $ 7,017,000 $ 7,017,000 $ 7,017,000 $ 7,017,000 $ Total Projected Cash and AWUIL 13,334,000 $ 14,520,000 $ 14,520,000 $ 16,615,000 $ 16,615,000 $ 16,615,000 $ 16,615,000 $ Total Long-Term Debt Outstanding 46,360,000 $ 61,077,000 $ 61,077,000 $ 87,074,000 $ 87,074,000 $ 87,074,000 $ 87,074,000 $ Projected Cash-to-Debt Ratio 29% 24% 24% 19% 19% 19% 19%

  • 1,232,000

1,232,000 2,911,000 4,143,000 4,143,000 4,143,000 Entrance Fees utilized to fund Start-up Losses Excess Capacity / (Fundraising requirement)

INCREMENTAL CAPACITY FROM PROJECT

EXAMPLE

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PROJECT COSTS

 Hard & Soft Costs  New Construction

  • vs. Renovation

 Duration, Phasing & Escalation  New Revenue Streams

  • vs. Reinvestment
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BREAKDOWN OF PROJECT USES OF FUNDS

Categor gory Low High Median an Construction 39% 64% 52% 52% Land & Related 0% 12% 4% Design & Engineering 1% 7% 2% FF&E 1% 9% 3% Contingency 1% 7% 3% Marketing 1% 8% 4% Development Fees 0% 11% 4% Prefinance Capital Return 0% 7% 2% Other 0% 5% 2% Total Project Related 64% 87% 76% 76% Funded Interest & Fees 6% 17% 12% Debt Service Reserve Funds 2% 9% 6% Working Capital & Operating Reserves 0% 24% 3% 3% Costs of Issuance 2% 4% 3% Total Financing & Other Costs 13% 36% 24% 24%

EXAMPLE

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Existing Liquidity & Debt Capacity Project-Related Borrowing Fundraising

PLAN OF FINANCE

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COMPARISON OF FINANCING STRUCTURES

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FINANCIAL TOOLS

 Debt Capacity Analysis  Project Planner Model  In-Depth Financial Projections

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SLIDE 22 CCRC XXX Project Planner Unit Configuration Independent Living Cottages 20 Inflation Independent Living Unit Turnover Independent Living Apartments 120 Revenues 3.00% First Year Stable 5% Assisted Living 40 Expenses 3.00% Skilled Nursing 30 Entrance Fees 3.00% Total 210 Project Development Levers FTEs per 55% FALSE Operations 100 residents Other 41% Revenues Annual 45
  • Wgt. Avg.
Total 25% Operating Cash Cash Operating
  • Wgt. Avg. MSF
Revenues # of FTEs Salary Salary Benefits Percentage Costs Available Margin Independent Living 2,400 $ 4,032,000 $
  • Assisted Living
4,600 $ 2,208,000 $
  • Skilled Nursing
5,500 $ 1,980,000 $
  • Total
8,220,000 $ 88 $27,000 2,381,400 $ 595,350 $ 1,637,213 $ 3,606,038 $ 3,370,200 $ Entrance Fees Average Entrance Fee
  • Wgt. Avg.
Entrance Fee Entrance Fee 95% 77% Initial E.F as a percentage Including Equity Home Value Percentage Entrance Fee Plan Pool Occupancy Debt Repayment Liquidity
  • f Project Costs
Contribution 400,000 100% 400,000 90% refund plan 56,000,000 $ 53,200,000 $ 40,964,000 $ 12,236,000 $ 76.25% 76.25% Pre-Finance Capital Circulation / 0% Marketing Costs 10% Project Costs
  • Wgt. Avg
Common Total Cost per Construction 20% Per ILU Unit Subtotal Land Return of Total
  • sq. ft.
Percentage
  • Sq. Ft.
  • Sq. Ft.
Costs Soft Costs 18,000 Project Costs Purchase 13% Project Costs Independent Living Cottages 1,600 5% 33,600 $130 $4,368,000 $873,600 $360,000 $5,601,600 5,601,600 Independent Living Apartments 1,200 25% 180,000 $140 $25,200,000 $5,040,000 $2,160,000 $32,400,000 32,400,000 Assisted Living 400 25% 20,000 $200 $4,000,000 $800,000
  • $4,800,000
4,800,000 Skilled Nursing 300 25% 11,250 $220 $2,475,000 $495,000 $2,970,000 2,970,000 Common Spaces 80,000 33% 80,000 $250 $20,000,000 $4,000,000 $24,000,000 24,000,000 324,850 $173 $56,043,000 $11,208,600 $2,520,000 $69,771,600 $4,000,000 $959,031 $74,730,631 100% Financing Assumptions Total Project 20% Total Uses Total Short-Term Long-Term Interest Maximum Annual Equity Costs Financing Costs
  • f Funds
Borrowing Bonds Bonds Rate Debt Service Contribution $74,730,631 $14,946,126 $89,676,757 $89,676,757 (40,964,000) $ $48,712,757 6.00% $3,538,929 $0 Debt Service Coverage Ratio Target Metrics Cash Used for Working Capital Interest Income Funds Available for Debt Service 4,934,194 Initial Liquidity 12,236,000 $ Total Cash and AWUIL 15,163,129 Maximum Annual Debt Service 3,538,929 Percent Used for Working Capital 5% Interest Earnings 5.00% DSCR 1.39 1.30 Remaining Liquidity 11,624,200 $ Interest Income 758,156 Cash-to-Debt Ratio Turnover Entrance Fees Cash 11,624,200 Stabilized IL Occupancy 114.00 Debt Service Reserve Fund 3,538,929 Units Turning Over 5.70 Total Cash and AWUIL 15,163,129 Average Net Entrance Fees/Unit $100,000 Total Long-Term Debt $48,712,757 Net Turnover Entrance Fees $570,000 Cash-to-Debt 0.31 0.30 Operating margin percentage ON
  • r OFF

PROJECT PLANNER

EXAMPLE

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DISCOVER WHERE YOU ARE IN THE REPOSITIONING PROCESS AND HOW TO USE ELEMENTS OF A MARKET STUDY IN DEVELOPING A DESIGN AND MASTERPLAN STRATEGY

NEIL TERRY

PARTNER, ORCUTT WINSLOW

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THE CHALLENGE

Improving 50 year-old buildings

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FINDING NEW OPPORTUNITIES

Available land as part of either: Acquired Property Obsolete Product

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FINDING NEW OPPORTUNITIES

Available land as part of either: Acquired Property Obsolete Product

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FINDING NEW OPPORTUNITIES

Available land as part of either: Acquired Property Obsolete Product

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 Zoning in Place  Popular Product  Creates a buffer with the surrounding single family residences

Patio Homes on acquired parcels

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Future IL (Entry fee) Future Health

  • r IL Rental

Opportunities on available land:

 New Entry Fee Independent Living Apartments  Either New Health Center or New Rental IL Apts

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BUILDING OPPORTUNITIES

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BUILDING OPPORTUNITIES

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KEYS TO SUCCESSFUL MASTER PLANNING:

Ability to Assess any idea that is being considered quickly by:

Rapid program and bubble diagram development

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KEYS TO SUCCESSFUL MASTER PLANNING:

Ability to Assess any idea that is being considered quickly by:

Rapid program and bubble diagram development Reliable Costs Estimating

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Ability to Assess any idea that is being considered quickly:

Rapid program and bubble diagram development Reliable Costs Estimating Comprehensive Master Budget

KEYS TO SUCCESSFUL MASTER PLANNING:

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SLIDE 47

Ability to Assess any idea that is being considered quickly:

Rapid Program and Bubble Diagram development Reliable Costs Estimating Comprehensive Master Budget Master Schedule

KEYS TO SUCCESSFUL MASTER PLANNING:

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SLIDE 48

WYNNE ANGELL

PRESIDENT & CEO, ANGELL MARKETING

RE-BRANDING FOR THE FUTURE

More effectively communicate who you are, differentiate yourself from your competitors and attract future consumers

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Religious Affiliation “Campus of Care”

BRANDING ATTRIBUTES FOR INITIAL BRAND

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Stability History Elegant Conservative Religious Affiliation

BRANDING ATTRIBUTES FOR EXISTING BRAND

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Vibrant Engaged Healthy Fun-Loving Purposeful

BRANDING ATTRIBUTES FOR THE FUTURE

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RE-POSITIONING STARTED NEARLY 5 YEARS AGO

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TIME TO RE-BRAND!

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THE PROCESS

Timing Identified committee Discovery

Adjectives used to describe Beatitudes Campus

Angell Marketing Creative

Internal reviews Client ready presentation

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SLIDE 55

 Inspired  Dedicated  Social justice  Giving  Empowering  Open  Purposeful  Joyful  Affirming  Abundant  Embracing  Spiritual  Meaningful  Community  Faith-based  Nonprofit  Ability to achieve  Inclusive  Opportunity  Partnership  (residents + admin)  Renewed growth  Compassionate  Exceptionalism  Welcoming  Thriving  Engaged  Fun  Happy  Thoughtful  Safe  Transformed  Involved  Friendly  Professional  Creative

ATTRIBUTES FOR THE FUTURE

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A NEW BRAND IS BORN

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A Vibrant Color Palette

Reflects New Brand Strategy

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“B” PHILOSOPHY

BE WHO YOU WANT TO BE.

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( S t a f f m e m b e r ) ( S t a f f m e m b e r ) m I C H E L L E J U S T

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Personalization helps foster brand pride.

“B”.

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“B” Lives In & Around Community

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TURNING TURNING 50 50 LOOKING OOKING 30 30 FEELING 20 20

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UNDERTAKING THE MONUMENTAL TASK OF HIGH VOLUME SALES

ROD BAILEY

  • SR. VP OF SALES AND MARKETING,

BEATITUDES CAMPUS

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50 50

KEEP CA KEEP CALM LM

30 30

IS THE N IS THE NEW EW

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WE REALLY ARE “20”

Positioning an established community in a “new” light.

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SALES IS FAR MORE THAN PRICE

Mission sells and has significant appeal Environment is more than a building

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PAINTING A PICTURE OF PURPOSEFUL LIVING FOR THE FUTURE

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ADDRESSING CONCERNS

Peace of mind Do I/we have sufficient resources…….will my money last? Ease the moving process “Making your new home your own”

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MILESTONES

 Priority program BeVIP kickoff October 12, 2017  30 days  Present

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IS THE BEST!

If you had your way – and your health – what age would you like to be for the rest of your life? Twelve? Twenty? Thirty?

The he ans answer er, based on , based on the the aver erage: fiv ge: five-oh.

  • h.
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&