Sienna Senior Living (SIA) Q1 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in Q1 2025, with total adjusted revenue up 12.1% to CAD 241.8 million, driven by higher occupancy and rental rates in both retirement and long-term care segments.

• Expanded asset base with nearly CAD 600 million in acquisitions and developments expected by Q3, surpassing 100 properties, including major expansions in Alberta and Ottawa.

• Focused on team member retention and cost reduction, achieving a 30% drop in turnover and 70% reduction in agency costs year-over-year.

• Raised CAD 144 million in equity in February 2025 to fund acquisitions and developments, supporting a strong liquidity position of CAD 445 million as of March 31, 2025.

• Launched an At-The-Market Equity Distribution Program to support future growth and maintain financial flexibility.

Financial highlights

• Q1 2025 total adjusted revenues rose 12.1% year-over-year to CAD 241.8 million, driven by occupancy and rental rate growth.

• Adjusted same property NOI increased 8.5% to CAD 42.5 million, with retirement segment up 16.7% and long-term care up 2.2%.

• Operating funds from operations (OFFO) grew 27.5% to CAD 24.7 million; AFFO per share increased 7.7% to CAD 0.266.

• AFFO payout ratio improved to 91%, or 86% excluding the February share offering.

• Debt to adjusted gross book value decreased to 38.5% from 44.3%; debt to adjusted EBITDA improved to 7.4x from 8.4x.

Outlook and guidance

• Retirement segment NOI guidance for 2025 raised to exceed 10%, with a target for stabilized occupancy of 95% by Q1 2026.

• Long-term care NOI expected to grow in the low single digits, in line with inflation and excluding one-time funding.

• Retirement margin growth targeted at 100–150 basis points increase.

• Three development projects underway totaling CAD 307 million, expected to boost AFFO per share by about 3% upon completion.

• Acquisition pipeline remains robust, focusing on both retirement and long-term care assets across multiple provinces.