Sienna Senior Living (SIA) Q3 2024 earnings summary

Executive summary

• Achieved seventh consecutive quarter of year-over-year same property NOI growth, driven by operational execution, improved occupancy, and expansion into Alberta and Ontario.

• Raised CAD 144 million in equity and CAD 150 million in unsecured debentures, both oversubscribed, strengthening liquidity and growth capacity.

• Completed or announced major acquisitions, including a CAD 182 million Alberta portfolio and full ownership of Nicola Lodge, with significant development projects underway in Ontario.

• Team member engagement reached a new high, ranking in the top 5% globally for meaningful work in healthcare.

Financial highlights

• Q3 2024 adjusted revenues rose 12.5% year-over-year to CAD 224.8 million, with both LTC and retirement segments contributing.

• Total adjusted same property NOI increased 14.7% to CAD 43.4 million; LTC segment up 18.3%, retirement segment up 11%.

• Operating FFO increased 19% to CAD 23.9 million; OFFO per share up 13.5% to CAD 0.312.

• AFFO per share decreased 1.1% to CAD 0.266 due to temporary equity dilution.

• Liquidity at quarter-end was CAD 516.5 million.

Outlook and guidance

• Long-term care NOI expected to grow in low double digits for 2024, excluding one-time and retroactive funding; retirement segment NOI to grow in high single digits, driven by occupancy and rate increases.

• Rental rate growth in retirement homes averages 5%, with further occupancy gains expected to drive high-margin revenue.

• Long-term care same property growth expected to return to 0%-2% range post-pandemic.

• Continued focus on acquisitions, development, and DRIP program reinstated for shareholder participation starting November 2024.