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.

• Completed major capital markets initiatives, including $144M equity raise and $150M unsecured debenture issuance, supporting growth and refinancing.

• Team member engagement reached top 5% globally for meaningful work in healthcare, with turnover down 30% year-over-year.

• Acquired $181.6M Alberta continuing care portfolio and announced plan to acquire remaining 30% of Nicola Lodge, diversifying the Western Canada portfolio.

• Development projects in Keswick, North Bay, and Brantford exceed $300M in combined costs, with strong pre-leasing interest.

Financial highlights

• Q3 2024 total adjusted revenue rose 12.5% year-over-year to $224.8M; adjusted same property NOI up 14.7% to $43.4M, with LTC up 18.3% and retirement up 11%.

• Operating funds from operations (OFFO) grew 19% to $23.9M; OFFO per share up 13.5% to $0.312.

• Adjusted funds from operations (AFFO) increased 3.8% to $20.4M; AFFO per share decreased 1.1% to $0.266 due to equity issuance dilution.

• Liquidity increased to $517M at quarter end, with $1.0B in unencumbered assets.

• AFFO payout ratio was 91.3% in Q3 2024 and 67.5% for the nine months ended September 30, 2024.

Outlook and guidance

• LTC same property NOI for 2024 expected to grow in the low double-digit percentage range, excluding one-time and retroactive funding.

• Retirement segment NOI projected to grow in the high single-digit percentage range, driven by occupancy and rental rate increases.

• DRIP program reinstated, effective with November 2024 dividend, allowing shareholders to reinvest at a 3% discount.

• Significant growth potential from occupancy gains, acquisitions, and new developments.

• LTC NOI growth expected to normalize to 0%-2% annually post-pandemic.