Sienna Reports Second Quarter 2025 Financial Results and Publishes 2025 Impact Report

Executive Summary

• Sienna Senior Living Inc. reported financial results for the three and six months ended June 30, 2025, highlighting strong revenue growth and occupancy improvements across its Retirement and Long-Term Care (LTC) segments.
• The company completed $315 million in acquisitions in Q2 2025 and entered into a $60 million purchase agreement for Credit River Retirement Residence, signaling continued aggressive expansion.
• Operational metrics showed significant gains, with Average Same Property Occupancy in the retirement segment rising to 92.1% in Q2 2025, and Same Property NOI increasing by 8.2% year-over-year.

Key Details

• Q2 2025 Financial Highlights (Excluding One-Time Items):
  • Revenue (Proportionate Basis): $253.6 million, up 17.4% year-over-year.
  • Same Property NOI: $45.1 million, up 8.2% year-over-year.
  • Total NOI: $50.6 million, up 18.8% year-over-year.
  • OFFO: $29.3 million, up 24.3% year-over-year.
  • AFFO: $24.1 million, up 21.0% year-over-year.
  • AFFO per share: $0.262, down 4.0% year-over-year (attributed to temporary dilution from equity issuances).
  • AFFO Payout Ratio: 89.5%.
• Six Months Ended June 30, 2025 Financial Highlights (Excluding One-Time Items):
  • Revenue (Proportionate Basis): $495.5 million, up 14.7% year-over-year.
  • Same Property NOI: $87.6 million, up 8.4% year-over-year.
  • Total NOI: $94.7 million, up 14.9% year-over-year.
  • OFFO: $54.0 million, up 25.6% year-over-year.
  • AFFO: $46.9 million, up 23.7% year-over-year.
  • AFFO per share: $0.526, up 1.2% year-over-year.
• Operational Metrics:
  • Retirement Average Same Property Occupancy: 92.1% in Q2 2025 (up 150 bps YoY); increased to 93.1% in July 2025.
  • LTC Average Total Occupancy: 98.5% in Q2 2025.
  • Retirement Segment NOI Growth: Up 12.3% YoY in Q2.
  • LTC Segment NOI Growth: Up 4.8% YoY in Q2.
• Acquisitions and M&A Activity:
  • Completed $314.9 million in acquisitions in Q2 2025:
    • Alberta Portfolio / LTC (Calgary, Edmonton, etc.): 540 beds, $181.6 million.
    • Wildpine / Retirement (Ottawa): 165 suites, $48.0 million.
    • Hazeldean Gardens / Retirement (Ottawa): 172 suites, $85.3 million.
  • Entered into purchase agreements for Q3 2025 closing:
    • Cawthra Gardens / LTC (GTA): 192 beds, $32.6 million.
    • Credit River Retirement Residence (GTA): 133 suites, $60.2 million.
  • Expected Investment Yields: Nicola Lodge (6.75%), Alberta properties (~6.5%), Wildpine (6.25%), Hazeldean (6.33%), Cawthra Gardens (~6.75%), Credit River (5.75%).
• Development Projects:
  • Completed Northern Heights LTC redevelopment in North Bay, Ontario (July 2025):
    • 160 beds, replacing 148 older beds.
    • Total development cost: ~$80.0 million.
    • Expected development yield: 8.0%.
    • Received $4.0 million development grant; expects $3.3 million annual construction subsidy over 25 years.
  • Pipeline Projects:
    • Brantford (LTC/Retirement): Expected completion Q3 2025, 160 LTC/147 Retirement beds, $140M cost, 8.5% yield.
    • Keswick (LTC): Expected completion Q1 2027, 160 beds, $87M cost, 8.5% yield.
• Debt and Credit:
  • Debt to Adjusted Gross Book Value: 42.2% (down from 43.7% in Q2 2024).
  • Weighted Average Cost of Debt: 3.9% (up from 3.7% in Q2 2024).
  • Weighted Average Term to Maturity: 6.3 years.
  • Credit Rating: BBB Issuer Rating confirmed by Morningstar DBRS with "Stable" trends.
• 2025 Outlook and Targets:
  • Retirement Same Property NOI Growth: Target >10% YoY.
  • Retirement Margin Growth: Target 100–150 bps YoY.
  • LTC Same Property NOI Growth: Target low single-digit percentage range.
  • Retirement Occupancy Target: 95% stabilized by Q1 2026.

Notable Quotes

• “During the second quarter, we continued to execute on our strategic growth initiatives, both through growth within our existing operations as well as acquisitions and developments,” said Nitin Jain, President and Chief Executive Officer. “Sienna’s recent recognition by Time Magazine as one of Canada’s Best Companies in 2025 reflects not only our track record of sustainable growth, but also the meaningful impact we’re making as we continue to invest in the future of Canadian senior living and its stakeholders.”