Q uarters at Laram ie Investo r Up d ate | Q 4 2020 Michael Sather, CFO Tailwind Gro up
Good News
Current Occupancy at 98% New Site Staff making immediate impacts to pre-leasing (up 12% from last year) Amenities now open 24/7; greatly improving resident engagement. Increased rents on 2/15. Resident surveys are out and getting great response rates. Addressing concerns directly and immediately.
Challenges
o
COVID-19 has caused a reduction in resident engagement due to limited use of amenities. Recently moved to 24/7 clubhouse which is having a positive affect.
o
University will not announce fall plans for in person classes until early June.
o
Budgeting for some needed capital improvements such as landscaping and building repairs.
Property Updates
Current Occupancy
30%
Pre-Leasing Velocity 2021-2022
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Pre-Lease
2017-2018
2018-2019
Current Lease-Up
Velocity Goals
2019-2020
31-Aug
15-Aug
1-Aug
15-Jul
1-Jul
15-Jun
1-Jun
15-May
1-May
15-Apr
1-Apr
15-Mar
1-Mar
15-Feb
1-Feb
15-Jan
1-Jan
15-Dec
1-Dec
15-Nov
1-Nov
15-Oct
1-Oct
As of February 15th
Pre-leasing in motion and exceeding prior year and velocity goal pace! New site staff continues to implement and execute new strategies to drive pre-leasing
Enrollment Trend
13,500 13,000
12,738 12,648 12,397
12,500
13,124
12,450
12,336
12,000
12,891
12,994
Undergraduate enrollment decreased by 4.7% Non-resident enrollment fell 6.7% YOY
12,249 11,829
11,500 11,000 2015
2016
2017
2018
2019 2020 Total Students
2021f 2022F 2023F 2024F *F is for Forecast Data is from AxioMetrics
Executive Sum m ary Q uarters at Laram ie
Net Operating Income
Pre-Leasing
Occupancy
Q4 2020: $327,000
Current: 30%
Q4 2020: 95%
2019 Avg: $304,000
Prior Year: 18%
2019: 80%
Metrics and KPIs Q4
Q3
Q2
Q1
YTD Average
Prior Year Average
OOP**
NOI
$
327 $
332 $
273 $
286 $
304 $
304 $
321
Cash Flow
$
136 $
118 $
(58) $
77 $
68 $
79 $
133
61%
64%
59%
61%
61%
61%
55%
9.39%
9.55%
7.86%
8.21%
8.75%
8.75%
9.23%
Occupancy
95%
93%
81%
81%
n/a
80%
95%
Pre-Leasing
17%
2%
92%
81%
n/a
n/a
n/a
Profit Margin YOC*
Dollars in thousands *Annualized **Original Operating Plan for the 2020 Academic Year
Metrics and KPIs Recap Q4 Net Operating Income (NOI) 7% growth compared to 2020 YTD average Positives:
Setbacks: × ×
Net Revenue Growth of 14% 95% Occupancy vs. 81% in Q1 Collecting on delinquent accounts Equipment replacement and repairs Snow removal contract
Full-Year 2020 95% to Original Operating Plan (OOP) Positives:
Setbacks: × ×
Market Rent 3.5% > OOP Utilities 55% < OOP High Concessions Occupancy at 81% in Q1 and Q2
Metrics and KPIs Recap cont. Q4 2020 Cash Flow 7% growth compared to 2020 YTD average Positives:
Occupancy Minimizing One-Time Expenses
Current Assets $377,000 • • • • •
Current Ratio
Cash: $111,000 Accounts Receivable: $24,000 Escrow: $145,000 Prepaids: $28,000 Amortizing Concessions: 68,000
Current Liabilities $350,000 • • • •
Accounts Payable: $43,000 Security Deposits: $11,000 Prepaid Rent: $175,000 Accrued Expenses: $122,000
Current Ratio is calculated by dividing Current Assets over Current Liabilities. Our goal is to create a liquidity position of 1X.
Investm ent Perform ance and D ebt Metrics
Investor D istrib utions
Capital Balance: $3,575,000 •
Return Rate : 10.9%
•
Monthly Distribution: $40,000
Debt Summary Loan Type: Fannie Mae Servicer: Grandbridge Real Estate Capital, LLC Amount: $12,635,000 Interest Rate: 5.06% Maturity Date: 12/2030 (12 years) Debt Terms Long-term, Fixed Rate
Interest Only Period: 4 years Amortization: 360 months; after interest only
What's Next
Continue Pre-Leasing momentum Site staff working to build relationships with athletics department Continue Cap Ex projects to improve curb appeal Replace Water Heaters Painting Exterior
Michael Sather, CFO Tailwind Group msather@thetailwindgroup.com investo rs@thetailwindgroup.com