Sienna Reports First Quarter 2025 Financial Results and Continues Platform Expansion

/EIN News/ -- MARKHAM, Ontario, May 06, 2025 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today announced its financial results for the three months ended March 31, 2025.

Q1 2025 Highlights

• Average Same Property Occupancy in retirement segment up 260 basis points (“bps”) year-over-year to 92.5% in Q1 2025
• Total Adjusted Revenue, excluding One-Time Items increased by 12.1% in Q1 2025, to $241.8 million
• Total Adjusted Same Property Net Operating Income (“NOI”), excluding One-Time Items up 8.5% to $42.5 million in Q1 2025
  • Retirement Segment up 16.7% year-over-year in Q1 2025
  • Long-Term Care (“LTC”) Segment up 2.2% year-over year in Q1 2025
• OFFO per share, excluding One-Time Items increased by 8.3% in Q1 2025 to $0.287
• Raised $144 million in equity on February 27, 2025
• Increased liquidity to $445.0 million as at March 31, 2025
• Completed over $250 million in acquisitions to date in 2025 with significant pipeline of opportunities
• Signed $85.3 million purchase agreement for Hazeldean Gardens Retirement Residence in Ottawa

“Sienna continues its strong growth momentum, with our key performance indicators continuing to move in a positive direction,” said Nitin Jain, President and Chief Executive Officer. “We are confident to sustain this ongoing trend well into the future. Rising demand from an aging population coupled with constrained supply, the continued strength of our operations, and our ability to execute on acquisitions and development projects are all contributing to our optimistic outlook. During a time of broader economic uncertainty, the Canadian senior living sector continues to demonstrate stability, resilience and opportunity for growth.”

Growth momentum continues
Sienna continued its growth momentum and successfully completed three previously announced acquisitions to date in 2025, with a number of additional opportunities under contract or in advanced stages of negotiation. Each acquisition is expected to be immediately accretive to the Company’s AFFO:

• $26.5 million acquisition of additional 30% interest in Nicola Lodge on February 28, 2025, increasing Sienna’s ownership to 100%;
• $181.6 million acquisition of four continuing care homes in Alberta on April 1, 2025, supporting Sienna’s expansion efforts in Alberta;
• $48.0 million acquisition of Wildpine Residence on April 15, 2025, a 165-suite retirement residence in Ottawa, a market benefitting from rapidly improving supply/demand fundamentals; and
• Inaugural At-The-Market Equity Distribution Program (“ATM Program”) launched to support Sienna’s continued growth plans.

Financial and Operating Results
The following table represents the Key Performance Indicators ("KPIs") adjusted for One-Time Items for the periods ended March 31:

	Three months ended March 31,
Thousands of Canadian dollars, except occupancy, share and ratio data	2025		2024		Change
OCCUPANCY
Retirement - Average Same Property	92.5	%	89.9	%	2.6	%
Retirement - Average Growth and Optimization	75.4	%	65.8	%	9.6	%
Retirement - Average total occupancy	90.1	%	86.6	%	3.5	%
LTC - Average total occupancy	98.0	%	97.5	%	0.5	%
FINANCIAL
Total Adjusted Revenue excluding One-Time Items	241,846		215,729		26,117
Total Adjusted Same Property NOI, excluding One-Time Items	42,546		39,197		3,349
Total Adjusted NOI, excluding One-Time Items	44,065		39,834		4,231
Administrative expenses	9,134		9,249		(115	)
OFFO, excluding One-Time Items	24,694		19,364		5,330
AFFO Payout ratio, excluding One-Time Items	91.0	%	94.9	%	(3.9	)%
PER SHARE INFORMATION
OFFO per share, excluding One-Time Items	0.287		0.265		0.022
AFFO per share, excluding One-Time Items	0.266		0.247		0.019
FINANCIAL RATIOS
Debt to Adjusted Gross Book Value at period end	38.5	%	44.3	%	(5.8	)%
Weighted Average Cost of Debt at period end	3.8	%	3.7	%	0.1	%
Debt to Adjusted EBITDA at period end, excluding One-Time Items	7.4		8.4		(1.0	)
CHANGE IN TOTAL ADJUSTED SAME PROPERTY NOI, EXCLUDING ONE-TIME ITEMS
Retirement					16.7	%
LTC					2.2	%
Total					8.5	%

Note: Refer to Sienna’s Management Discussion and Analysis (“MD&A”) for the three months ended March 31, 2025 published on May 6, 2025 for further details. This MD&A can be found on Company’s website at www.siennaliving.ca.

Financial Performance - Q1 2025 (excluding One-Time Items)

• Total Adjusted Revenue, excluding One-Time Items increased by 12.1%, or $26.1 million, to $241.8 million, compared to Q1 2024. In the Retirement segment, the increase is mainly driven by occupancy increases, rental rate adjustments in line with market conditions, and higher care revenue. In the LTC segment, the increase is mainly due to higher flow-through funding for direct care and private accommodation revenue.
• Total Adjusted NOI, excluding One-Time Items increased by 10.6% to $44.1 million, compared to Q1 2024. Retirement segment total adjusted NOI increased by $3.7 million primarily attributable to occupancy increases, rental rate adjustments in line with market conditions and higher care revenue, offset by increases in operating expenses due to higher labour, food, utilities and other operating costs. LTC segment total adjusted NOI increased by $0.5 million mainly due to higher private accommodation revenue and funding, offset by higher labour, higher repairs and maintenance, utilities and inflationary increases in other operating expenses.
• Adjusted Same Property NOI, excluding One-Time Items increased by 8.5% to $42.5 million, compared to Q1 2024, including a 2.2% increase to $22.5 million in the LTC segment, and a 16.7% increase to $20.0 million in the Retirement segment.
• OFFO per share, excluding One-Time Items increased by 8.3%, or $0.022, to $0.287, compared to Q1 2024. The increase was primarily due to higher Adjusted NOI in Q1 2025.
• AFFO per share, excluding One-Time Items increased by 7.7%, or $0.019, to $0.266, compared to Q1 2024. The increase was primarily related to the increase in OFFO, offset by a decrease in construction funding income.
• AFFO payout ratio, excluding One-Time Items was 91.0%, a 3.9% improvement compared to Q1 2024.
• Debt - The Company's Debt to Adjusted Gross Book Value decreased by 580 bps to 38.5% at the end of Q1 2025, from 44.3% at the end of Q1 2024, primarily due to increased gross book value as a result of acquisition completed in Q1 2025, development projects in process and the Company's equity issuance in both August 2024 and February 2025. The Weighted Average Cost of Debt increased by 10 bps to 3.8% at the end of Q1 2025, from 3.7% at the end of Q1 2024. Debt to Adjusted EBITDA, excluding One-Time Items decreased to 7.4 times in Q1 2025 from 8.4 times in Q1 2024. The Company is in compliance with all of its debt covenants.

Outlook
The exceptional long-term fundamentals in Canadian senior living are fueled by the rising needs of seniors, who make up the fastest-growing demographic in Canada, and limited new supply of senior living accommodations.

Looking ahead, we will continue to leverage these outstanding sector dynamics as we grow through portfolio optimization, achieve retirement occupancy improvements towards our 95% target and drive retirement NOI and margin growth.

Retirement Operations – Average occupancy in the Company's Same Property portfolio was 92.5% in Q1 2025, a 260 bps increase year-over-year. Our focus on generating strong interest in our residences, as well as continued improvements to our operations and exceptional supply/demand fundamentals supported this significant year-over-year occupancy improvement.

Going forward, we will continue to focus on expanding the Company's Adjusted NOI with our concentrated marketing and sales initiatives, focus on operational efficiency and our asset optimization efforts. We have increased Sienna’s targeted year-over-year adjusted Same Property NOI growth in our retirement portfolio, expecting it to exceed 10% in 2025 as a result of occupancy growth and rate increases. We are further targeting margin growth in our Same Property portfolio of approximately 100 – 150 bps in 2025 compared to 2024.

Asset Optimization Initiatives – Sienna believes that there is a significant opportunity to create value through asset optimization initiatives at certain properties. These initiatives target a better market fit and include renovations, the changes in suite mix, additional services or the alternative use of a property to reflect the evolving needs of residents. By optimizing our existing portfolio, we expect to unlock substantial NOI growth while modernizing Sienna’s asset base.

We have identified five retirement residences that are well suited for repositioning in the near term. With an average occupancy rate of approximately 80% in Q1 2025, these assets are expected to make a significant contribution to Sienna’s overall NOI growth, once repositioned.

Long-Term Care Operations – Sienna's LTC segment continues to benefit from a stable operating environment, high occupancy levels and an increase in private accommodation revenues as a result of higher private occupancy. For the balance of 2025, we expect to continue to benefit from a favourable operating environment, fully occupied homes and our successful cost management strategy.

Excluding one-time items, we expect the year-over-year increase of our LTC adjusted Same Property NOI for the full year to be in the low single digits, in line with inflation.

Growth Targets – The following table summarizes Sienna’s Same Property 2025 guidance for growth:

Segment	Performance Indicator	Target
Retirement	Reaching 95% Occupancy (Stabilized)	Q1 2026
Retirement	2025 Margin Growth (YoY)	100 - 150 bps
Retirement	2025 Adjusted NOI Growth (YoY)	10%+
LTC	2025 NOI Growth (YoY)	low single-digit percentage range

Developments – Sienna currently has three projects in North Bay, Brantford and Keswick under development, which are expected to exceed $300 million.

Projects	Property Type	Expected Completion	Number of Beds / Suites	Estimated Development Costs	Development Grant	Annual Construction Subsidy (1)	Expected Development Yield
Brantford	LTC / Retirement	Q3 2025	160 / 147	$140M	$4.0M	$3.3M	8.5	%
North Bay	LTC	Q3 2025	160	$80M	$4.0M	$3.3M	8.0	%
Keswick	LTC	Q1 2027	160	$87M	$8.2M	$3.5M	8.5	%
Total			480 / 147	$307M	$16.2M	$10.1M

	Notes:
1.	Total amount receivable each year over a period of 25 years.

Once completed and fully operational, each of our three development projects is expected to have a significant impact on our operating results and improve our AFFO per share by approximately 3%.

Significant Potential for Growth in Adjusted NOI - We see significant growth potential in our business over the next several years and are actively working on a number of initiatives which may contribute to the Company’s Adjusted NOI expansion including:

• Occupancy growth in the Company’s retirement segment, including incremental Adjusted NOI, as we move towards our target for stabilized average occupancy of 95.0% in our same-property portfolio. This would represent a 250 bps increase from our average occupancy of 92.5% in Q1 2025, supporting rental rate growth in line with market rents and targeted margin growth of 100 - 150 bps in 2025.
  
• Contributions from acquisitions, asset optimization and new developments, including incremental Adjusted NOI from:
  

1. The Company’s acquisitions completed to date in 2025, including
   • its remaining interest in Nicola Lodge, expected to generate an Investment Yield of 6.75%;
   • its acquisition of four continuing care properties in Alberta, expected to generate an approximate 6.5% Investment Yield, with potential additional upside; and
   • its acquisition of Wildpine Residence in Ottawa, expected to generate an approximate Investment Yield of 6.25%.
2. The Elgin Falls Retirement Residence, completed in late 2023 for $38.5 million with respect to the Company's 70% joint venture interest, which has an Expected Development Yield of approximately 7.5%; in addition, the Company has the ability to acquire the remaining 30% ownership interest, once the property is fully stabilized;
3. The contributions from the Company’s acquisitions of a retirement residence in Ottawa, expected to close within 60 - 75 days and generate an approximate Investment Yield of 6.33%, before internal synergies, and a long-term care community in the GTA, expected to close in Q3 2025 and generate an approximate Investment Yield of 6.75%.
4. The Company's five assets identified to be repositioned as part of its asset optimization initiatives; and
5. The Company's development projects in North Bay, Brantford, and Keswick, once completed and operational.

These initiatives could have a significant positive impact on the value of Sienna’s business and enhance its financial performance.

Sienna continues to expand retirement platform in Ottawa
The Company is pleased to continue its growth momentum in the Ottawa market. On May 2, 2025, Sienna entered into a purchase agreement to acquire Hazeldean Gardens Retirement Residence, a 172-suite retirement residence consisting of 129 independent living (IL), 31 assisted living (AL), and 12 memory care (MC) units in Stittsville, Ontario, a suburb located in Ottawa’s west end.

Built in 2018, the property is close to stabilization, supported by the rapidly improving supply-demand fundamentals in the Ottawa market. We further expect Hazeldean Gardens to benefit from significant synergies with the nearby properties owned by the Company.

The gross purchase price for the acquisition is $85.25 million, including a performance-based payment of $3.75 million, and is subject to an additional performance-based contingent payment of $1.25 million. Sienna is acquiring Hazeldean Gardens at a Investment Yield of 6.33%, before internal synergies, and will finance the full purchase price with cash on hand. The acquisition will be completed at a significant discount to replacement cost.

"Our expanding presence in Ottawa reflects our confidence in this market and is supported by the impressive performance across our existing portfolio in the region," said David Hung, Chief Financial Officer and Executive Vice President, Investments at Sienna. "Given the property’s close proximity to other Sienna-owned assets in the area, we expect to benefit from immediate synergies and forecast a 6.8% Investment Yield in the first year following closing."

The transaction is subject to regulatory approvals and customary closing conditions, and is expected to close within 60 – 75 days.

Launch of At-The-Market Equity Distribution Program (“ATM Program”)
Sienna is pleased to announce that it has established an ATM Program, allowing the Company to issue up to $125 million of common shares from treasury to the public from time to time during the term of the ATM Program and at Sienna’s discretion. The ATM Program provides an additional and flexible avenue to fund our growth, should it be required in the future. Sienna intends to use the net proceeds from the ATM Program, if any, for future investments, including acquisitions, developments or redevelopments, repayment of indebtedness, and for general corporate purposes.

In connection with the ATM Program, Sienna has entered into an equity distribution agreement (“Distribution Agreement”) with TD Securities Inc. (the “Agent”), dated May 6, 2025. Any common shares sold under the ATM Program will be distributed through the Toronto Stock Exchange or any other permitted marketplace at the market prices prevailing at the time of sale. The volume and timing of distributions under the ATM Program, if any, will be determined at Sienna’s sole discretion. There is no certainty that any common shares will be offered or sold under the ATM Program.

The ATM Program will terminate upon the earliest of (i) December 29, 2026, (ii) the issuance and sale of all of the common shares qualified for distribution under the ATM Program, and (iii) the termination of the Distribution Agreement.

In connection with the ATM Program, Sienna will file a prospectus supplement (the “Prospectus Supplement”) to the final base shelf prospectus dated May 6, 2025 (the “Base Shelf Prospectus”). The Prospectus Supplement, the Distribution Agreement and the Base Shelf Prospectus will be available on SEDAR+ at www.sedarplus.ca. Alternatively, the Agent will send copies of the Prospectus Supplement, the Distribution Agreement and the Base Shelf Prospectus, as applicable, to investors upon request to TD Securities Inc., attn: Symcor, NPM, 1625 Tech Avenue, Mississauga, Ontario, L4W 5P5, or by email at sdcconfirms@td.com, or by phone at 289-360-2009.

This press release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction in which such offer or solicitation is unlawful. This press release is not an offer of securities for sale in the United States (“U.S.”). The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Act”), and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the U.S., its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of the Act.

Conference Call
Sienna will host a conference call on May 7, 2025 at 10:00 a.m. (ET). The toll-free dial-in number for participants is 1-800-715-9871, conference ID: 3491023. A webcast of the call will be accessible via Sienna's website at www.siennaliving.ca/investors/events-presentations. It will be available for replay until May 6, 2026 and archived on Sienna’s website.

Notice of 2025 Annual and Special Meeting of Shareholders
The Company will be holding its Annual and Special Meeting of Shareholders (“Meeting”) on Wednesday, May 28, 2025 at 11:00 am (ET) in a virtual format, by way of audio webcast.
Shareholders will be able to listen and participate in the Meeting in real time through a web-based platform at www.virtualshareholdermeeting.com/sia2025. Shareholders are encouraged to vote on the matters before the Meeting by proxy and to attend the live audio webcast of the Meeting to submit questions.

About Sienna Senior Living
Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors' living options, including independent living, assisted living and memory care under its Aspira retirement brand, long-term care, and specialized programs and services. Sienna's approximately 14,500 employees are passionate about cultivating happiness in daily life. For more information, please visit www.siennaliving.ca.

Risk Factors
Refer to the risk factors disclosed in the Company’s MD&A for the year ended December 31, 2024, and its most recent Annual Information Form for more information.

Forward-Looking Statements
Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as “anticipate,” “continue,” “could,” “expect,” “may,” “will,” “estimate,” “believe,” “goals” or other similar words and are based on the Company’s expectations, estimates, forecasts and projections. These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

FOR FURTHER INFORMATION, PLEASE CONTACT:

David Hung
Chief Financial Officer and Executive Vice President, Investments
(905) 489-0258
david.hung@siennaliving.ca

Nancy Webb
Executive Vice President, Corporate Affairs and Marketing
(905) 477-4006 ext. 3030
nancy.webb@siennaliving.ca