Sienna Senior Living Q4 Earnings Call Highlights

Core Insights - Sienna Senior Living reported strong organic growth in Q4 2025, marking the 12th consecutive quarter of positive performance, with significant increases in same-property net operating income (NOI) across both retirement and long-term care segments [5][6] Financial Performance - Proportionate revenue for Q4 2025 increased by 14.2% year-over-year to CAD 278.4 million, driven by higher occupancy and rent growth in retirement, increased care revenue, and contributions from long-term care [7] - Same-property NOI rose by 10.1% to CAD 47.4 million in Q4, with retirement same-property NOI increasing by CAD 3.0 million and long-term care same-property NOI increasing by CAD 1.3 million [8] - Operating funds from operations (OFFO) increased by 24% to CAD 34.2 million in Q4, while adjusted funds from operations (AFFO) rose by 19.8% to CAD 27.9 million [9] - For the full year 2025, same-property NOI increased by 14.3% in retirement and 4.8% in long-term care, with OFFO and AFFO increasing by 27.1% and 25.7%, respectively [10] Growth Strategy - Sienna added over CAD 800 million in assets in 2025 through acquisitions and developments, expanding its workforce by about 2,000 team members [12] - In Q4, Sienna completed three acquisitions in Ontario, adding CAD 193 million in assets [12] - The company has a strong acquisition pipeline, having added CAD 79 million through acquisitions entering 2026, including a purchase agreement for a retirement residence in the Greater Toronto Area [13] Development Initiatives - Sienna began seeing contributions from two recently completed projects in Q4, including a redeveloped long-term care community and a campus of care [14] - The company announced its largest project to date, a redevelopment at its Glen Rouge site in Toronto, with an estimated cost of CAD 250 million and an expected yield of 7.5% to 8% [14] Balance Sheet and Liquidity - Sienna ended 2025 with over CAD 500 million in liquidity and CAD 1.5 billion in unencumbered assets, having issued CAD 250 million in unsecured debentures [16] - The company fully deployed its at-the-market program in Q4, issuing shares for gross proceeds of approximately CAD 101 million [16] 2026 Outlook - The company expects same-property NOI growth of more than 10% in retirement and low single digits in long-term care for 2026, with retirement rent growth assumptions remaining around 4% [17] - Management anticipates operating expense growth in 2026 to align with inflation, supported by prior efficiency improvements [18]