MARKHAM, Ontario, Nov. 09, 2022 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. ("Sienna" or the "Company") (TSX: SIA) today announced year-over-year growth in its financial results for the three and nine months ended September 30, 2022. The Consolidated Financial Statements and accompanying Management's Discussion and Analysis ("MD&A") are available on the Company's website at www.siennaliving.ca and on SEDAR at www.sedar.com.
Occupancy gains and rental rate increases helped offset cost increases as a result of labour shortages and high inflation during Q3 2022.
"Strong occupancy gains in our retirement segment, reaching a level not seen in over three years, supported our third quarter results amid continued cost pressures and an expected economic slowdown," said Nitin Jain, President and Chief Executive Officer. "As we adjust our business in a more challenging economic climate, we continued to put initiatives into motion to stand apart as an operator and employer in Canadian seniors' living, backed by a solid balance sheet. We further expanded Sienna's liquidity position in October through a $100 million upsizing and two-year extension of our unsecured credit facility, a strong vote of confidence in the future of our Company and our sector."
On October 26, Sienna upsized its unsecured revolving credit facility by $100 million to $300 million and extended its maturity term by two years to March 2027. Borrowings under the Unsecured Revolving Credit Facility can take place by way of Canadian Bankers' Acceptance Rates at 145 bps per annum over the floating BA rate, or at the Canadian prime rate plus 45 bps per annum.
Financial performance - Q3 2022
Financial performance - Nine months ended September 30, 2022
The Company maintained a strong financial position during Q3 2022:
As a result of the upsizing of the unsecured revolving facility on October 26, 2022, the Company's liquidity position increased by $100 million and was $351 million as of November 9, 2022.
Financial and Operating Results
|Three Months Ended||Nine Months Ended|
|$000s except occupancy, per share and ratio data||September 30, 2022||September 30, 2021||September 30, 2022||September 30, 2021|
|Retirement - Average same property occupancy||88.4||%||81.6||%||87.2||%||80.0||%|
|LTC - Average total occupancy||89.7||%||86.2||%||88.4||%||82.7||%|
|LTC - Average total occupancy excl. 3 and 4 ward beds and isolation beds||96.7||%||n/a||95.2||%||n/a|
|Total Adjusted Revenue(1)||$||189,192||$||170,423||$||543,625||$||494,319|
|Same property NOI(1)||$||32,830||$||32,657||$||97,603||$||105,198|
|OFFO per share(1)||$||0.246||$||0.272||$||0.722||$||0.876|
|AFFO per share(1)||$||0.227||$||0.234||$||0.705||$||0.838|
|AFFO payout ratio(1)||103.1||%||100.0||%||99.6||%||83.8||%|
(1) Total Adjusted Revenue, Same property NOI, Total NOI, OFFO per share, AFFO per share, AFFO payout ratio are non-IFRS measures. These measures do not have standardized meanings prescribed by IFRS and, therefore, may not be comparable to similar measures used by other issuers. These measures are used by management in evaluating operating and financial performance. Please refer to the heading "Non-IFRS Performance Measures" on page 2 of the MD&A.
Retirement - Sienna's retirement operations reached an average same property occupancy rate of 88.6% in October 2022, and the Company forecasts to end 2022 at a similar level, supported by continued investments in sales and marketing initiatives and its operating platforms. In addition, as a result of the successful integration of the 12 recently acquired retirement residences in Ontario and Saskatchewan, Sienna expects occupancy trends of these 12 residences to be in line with the overall retirement portfolio of the Company as it continues to capitalize on the growing demand for quality seniors living.
Sienna further expects year-over-year NOI growth in the retirement segment in 2022 to be supported by occupancy improvements, rental rate increases in line with market rates and added scale from acquisitions. These factors are expected to contribute to revenue growth, while cost pressures will remain for some time due to labour shortages, increased insurance premiums, higher utility rates and high overall inflation. In addition, the Company expects continued unfunded pandemic expenses in its retirement segment of less than $1 million in Q4 2022.
Taking all factors into account, we expect Q4 2022 operating margins to be similar to Q3 2022.
Long-term Care - In Sienna's LTC portfolio, average same-property occupancy, excluding the unavailable 3rd and 4th beds in multi-bed rooms due to capacity limitation and isolation beds, reached 96.7% during the third quarter. In February 2022, the Government of Ontario reinstated occupancy targets of 97% required for full funding. Given the long waiting list for long-term care beds, Sienna anticipates to meet the required occupancy targets at the vast majority of its care communities for full funding in 2022 and beyond.
With respect to government-funding for our long-term care operations, the Company anticipates cost pressures to remain for some time due to labour shortages and high overall inflation and utilities costs. Together with other participants in the seniors' living sector, Sienna is working with the government to receive funding that is aligned with the significant inflationary and cost pressures. In addition, the Company expects continued unfunded pandemic expenses of between $3 million to $4 million in Q4 2022 within its long-term care segment.
Developments - Current supply chain issues and high inflation are key considerations as the Company moves forward with its development program planning. Sienna is closely monitoring cost escalations with respect to material and labour and their impact on construction starts, estimated development yields and economic feasibility for current and future projects.
The toll-free dial-in number for participants is 1-800-715-9871, conference ID: 1149537. A webcast of the call will be accessible via Sienna's website at www.siennaliving.ca/investors/events-presentations. It will be available for replay until November 10, 2023 and archived on Sienna's website.
About Sienna Senior Living
Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors' living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna's approximately 12,000 employees are passionate about cultivating happiness in daily life. For more information, please visit www.siennaliving.ca.
Refer to the risk factors disclosed in the Company's MD&A for the nine months ended September 30, 2022, and its most recent Annual Information Form for more information.
Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as "anticipate," "continue," "could," "expect," "may," "will," "estimate," "believe," "goals" or other similar words and are based on the Company's expectations, estimates, forecasts and projections. These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Chief Financial Officer and Executive Vice President
Senior Vice President, Public Affairs and Marketing
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