NexLiving Communities (NXLV) investor relations material

Market strategy

• Focus on Canadian secondary markets outside Toronto and Vancouver, citing home prices under half of major-city levels, healthier employment and higher 10-year population growth.

• Average rent growth in target markets was 5% over 10 years; acquisition pricing was described as 10%–20% better than in larger markets.

• Population growth has recently diverged in favor of target markets; Saint John port volumes have increased 5x during the CEO’s tenure and are expected to double again.

• Defense spending, logistics infrastructure, data centers and nuclear power were cited as investment drivers in these communities.

Portfolio and capital allocation

• Portfolio totals ~2,000 apartments, with 2% vacancy versus a cited national average of ~4%; average building age is ~8 years.

• FFO per share exceeded 20% growth in each of the last three years; NOI tripled and FFO per share doubled over three years.

• Shares trade at a stated 50% discount to NAV; implied cap rate is 5.5% versus ~4% debt cost. Dividend is covered 6x by cash flow, with 16% payout; share buybacks are underway.

• Insiders own more than 50% of shares; 2024 per-share growth was distorted by a large share-funded acquisition, followed by growth of ~30% or more.

• Free cash flow yield was cited at 9%; free cash flow is 9% of market cap, with potential to double or triple that level.

Operating model

• Strategy prioritizes tenant retention and service over rapid turnover; amenity packages include gyms, cinemas, community rooms, nurse rooms and massage rooms.

• Annual per-unit CapEx is ~60% below the public-peer average, supporting free cash flow for acquisitions rather than major building reinvestment.

• Three-year peer comparison showed cash flow per share growth at 4x pure multifamily peers; same-store growth was mid-pack, while free cash flow yield was 9%.

• Two property sales generated a combined equity value increase from ~CAD 5.5 million to CAD 18 million over four years, representing a blended ~35% IRR.