Element Lifestyle Retirement Inc.
Climate Impact & Sustainability Data (2017-03 to 2017-02)
Reporting Period: 2017-03 to 2017-02
Environmental Metrics
Social Achievements
- Strengthened management team by promoting Mr. Graham to Chief Operating Officer and appointing Mr. Duda as CFO, strengthening corporate governance initiatives.
Climate Goals & Targets
Short-term Goals:
- Complete construction of the OPAL Project in the first quarter of 2019.
- Take the OASIS project through to third reading within the calendar year.
- Add at least one significant property in BC to the Company’s management portfolio this year.
Environmental Challenges
- Reduced revenue from development fees compared to the previous year.
- Increased operating expenses due to amortization, salaries, wages, benefits, and rent.
- Liquidity risk due to decreased working capital.
- General business risks inherent in the seniors' housing industry and real property ownership.
- Real property investment risks, including economic downturns and lack of portfolio diversification.
- Growth dependence on successful contract acquisitions, ownership interests, and construction financing.
- Risk of co-owners not meeting obligations in joint developments.
- Market risk due to variable-rate mortgages and potential impact of interest rate changes.
- Global economic and financial conditions impacting growth and financing strategies.
- Tax risks associated with tax filings and potential audits.
- Geographic concentration of business in British Columbia.
- Competition in the seniors' housing industry.
- Reliance on attracting seniors with sufficient resources to pay.
- Reliance on rentals and rental increases.
- Reliance on attracting co-owners for new developments.
- Operational risks inherent in managing and owning retirement properties.
- Risks of damage from fire or other calamities.
- Liability and insurance risks.
- Potential for litigation and disputes.
- Dependence on executives and other personnel.
- Changes in the regulatory environment.
- Risks related to personal information security.
- Volatile market price for common shares.
- Financial market uncertainty impacting access to financing.
- Dilution and future sales of common shares.
- Potential conflicts of interest.
Mitigation Strategies
- Focus on generating sales revenue and not pursuing additional financing (for liquidity risk).
- Measures to reduce monthly cash burn by eliminating non-essential expenditures.
- Growth plan includes property acquisitions, development, and management to achieve economies of scale.
- Evaluation of additional potential acquisitions to create a strong portfolio.
- Entering into co-tenancy agreements with other investors to reduce development risk.
- Maintaining insurance to cover some operational risks.
- Following provisions of the Business Corporations Act (BC) to address conflicts of interest.