Sienna Senior Living (SIA) Q2 2024 earnings summary

Executive summary

• Achieved six consecutive quarters of year-over-year same property NOI growth, driven by strategic initiatives, government funding, and favorable demographics.

• Retirement segment benefited from growing demand, limited new supply, and targeted marketing, leading to improved occupancy and rate increases.

• Fully occupied long-term care homes and increased government funding in Ontario supported results.

• Published 2023-2024 ESG Report, highlighting emergency preparedness, community engagement, and alignment with company values.

• Continued progress on development projects in North Bay, Brantford, and Keswick, with expected completions in 2025.

Financial highlights

• Q2 2024 adjusted revenue rose 10.7% year-over-year to $219.5M; six-month revenue up 15.3% to $458.9M.

• Q2 2024 same property NOI increased 18.5% to $46.1M; LTC same property NOI up 26.6%, retirement same property NOI up 9.5%.

• Q2 2024 OFFO grew 21.6% to $26.1M ($0.357 per share); AFFO up 14.6% to $22.4M ($0.307 per share); AFFO payout ratio improved to 76.2%.

• Results include a $3.4M one-time WSIB refund and $27.0M in one-time and retroactive government funding in H1 2024.

• Six-month LTC same property NOI up 82.9% to $71.7M; retirement segment up 6.3% to $38.3M.

Outlook and guidance

• Long-term care NOI for 2024, excluding one-time funding, expected to grow in the low double-digit percentage range year-over-year.

• Retirement operations same-property NOI anticipated to grow in the high single-digit percentage range, supported by occupancy and rental rate growth.

• Retirement segment targeting stabilized average occupancy of 95%.

• Recent government funding improvements expected to stabilize LTC operations and support redevelopment initiatives.

• Easing inflation and potential interest rate cuts add to positive outlook; ample liquidity supports strategic initiatives.