Sienna Reports Fourth Quarter 2025 Financial Results and Continues Platform Growth

Core Insights - Sienna Senior Living Inc. reported strong financial results for 2025, driven by organic growth, strategic acquisitions, and new developments, with expectations to maintain growth momentum in 2026 [3][4][18] Financial Performance - Revenue for 2025 exceeded $1.0 billion, marking a 15.0% increase year-over-year [4][17] - Same Property Net Operating Income (NOI), excluding One-Time Items, rose by 10.1% year-over-year to $47.4 million in Q4 2025 [4][17] - Adjusted Funds from Operations (AFFO), excluding One-Time Items, increased by 19.8% year-over-year in Q4 2025, reaching $27.9 million [4][17] - The AFFO Payout Ratio, excluding One-Time Items, decreased to 80.7% in Q4 2025 from 83.1% in Q4 2024 [4][17] Portfolio Expansion - In 2025, Sienna expanded its portfolio through acquisitions and developments totaling approximately $803 million [19] - The company completed several acquisitions, including properties in Greater Vancouver, Calgary, and Ottawa, with a total investment of $594.7 million [5][7] - A redevelopment project for a 448-bed Long-Term Care facility in Toronto is anticipated to start construction in the second half of 2026, with an estimated cost of $250 million [9] Occupancy and Operational Metrics - Average Same Property Occupancy in the retirement segment increased by 180 basis points year-over-year to 94.7% in Q4 2025, further rising to 95.2% in January 2026 [4][20] - The Retirement segment experienced a 15.4% increase in NOI year-over-year in Q4 2025, while the Long-Term Care (LTC) segment saw a 5.6% increase [4][17] Future Outlook - The company expects to leverage favorable supply/demand fundamentals in Canadian senior living to continue growth in 2026 [3][18] - Key targets for 2026 include achieving over 95% occupancy in the retirement segment and over 10% NOI growth [23] - Sienna plans to optimize its existing portfolio through asset optimization initiatives to unlock substantial NOI growth [22]