Sienna Reports Third Quarter 2025 Financial Results and Continues Growth in Greater Toronto Area

Core Insights - Sienna Senior Living Inc. is experiencing significant growth momentum across its business segments, driven by occupancy gains, project completions, and acquisitions, positioning the company for continued growth in 2025 [3][20][21] Financial Performance - For Q3 2025, revenue increased by 16.4% year-over-year to $261.7 million, primarily due to occupancy growth and rental rate increases in the Retirement segment [13] - Same Property Net Operating Income (NOI) rose by 9.7% year-over-year to $46.4 million in Q3 2025, with the Retirement segment up 13.2% and the Long-Term Care (LTC) segment up 6.7% [5][13] - Adjusted Funds from Operations (AFFO) increased by 36.1% year-over-year to $27.7 million in Q3 2025, with a per-share increase of 12.0% [5][13] - The AFFO Payout Ratio improved to 78.7% in Q3 2025 from 91.3% in Q3 2024, reflecting strong operating results [5][13] Portfolio Expansion - Sienna has completed $652 million in acquisitions and developments in 2025, with an additional $161 million under contract, bringing total portfolio expansion to over $800 million [5][21] - The company has made three significant acquisitions in the Greater Toronto Area in 2025, enhancing its market presence [10][21] Occupancy and Growth Targets - Average Same Property occupancy in the Retirement segment increased by 230 basis points year-over-year to 94.1% in Q3 2025, with expectations to reach 95% by year-end 2025 [5][22] - The company anticipates Same Property NOI growth of approximately 13% - 14% in the Retirement segment for 2025, with margin growth targets increased to 200 - 250 basis points compared to 2024 [24][28] Development Projects - Sienna completed two long-term care redevelopment projects and a retirement development in Ontario during Q3 2025, which are expected to provide stable, government-funded cash flows [16] - The company expects to achieve full occupancy at these redeveloped communities within two months of opening, targeting annual improvements to AFFO of approximately $4.7 million per project [16][17] Leadership Changes - Ali Mir joined Sienna as Executive Vice President, Long-Term Care Operations, bringing extensive experience in health care and senior care [19] Market Outlook - The long-term fundamentals in Canadian senior living are driven by the increasing needs of seniors and limited new supply, positioning Sienna to leverage these dynamics for growth [20][21]