Market Updates & Recent Developments
A Recovery in Occupancy Post-Pandemic Could Provide Significant
Earnings Growth
The COVID-19 pandemic has had a significant impact on the occupancy in our Safety and Community
segments. An eventual recovery in occupancy to pre-pandemic levels would provide significant growth in
earnings and cash flows.
Occupancy Q1 2020, just prior to COVID-19
Occupancy for quarter ended March 31, 2023
Reduction in Occupancy
79.00%
70.10%
8.90%
Number of Safety and Community beds at March 31, 2023
71,068
Bed utilization necessary to return to pre-pandemic occupancy
6,325
Average margin per bed - Q1 2023
$20.52
EBITDA potential at pre-pandemic occupancy(1)
$47,373,374
1.
Filling available beds to pre-pandemic occupancy at the margins we achieved
for the first quarter of 2023, could generate approximately $0.30 of additional
EPS and Adjusted Funds From Operations per diluted share.
The above table is for illustrative purposes only and represents the potential EBITDA contribution of Safety and Community facilities returning to pre-pandemic occupancy levels. We are not predicting a return to
pre-pandemic occupancy levels in 2023, and we make no representation about when occupancy could return to pre-pandemic levels, if ever. Actual margins associated with an increase in occupancy would 8
likely be higher than the average margin achieved because minimal incremental fixed costs would be required to manage the additional utilization at facilities already operational.View entire presentation