MARKHAM, Ontario, Feb. 23, 2023 (GLOBE NEWSWIRE) — Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today announced its financial results for the three months and year ended December 31, 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.
2022 was a significant year for Sienna, positioning the Company well for sustainable long-term growth in a more challenging macro-economic environment in 2023.
“Our Q4 results are a reflection of the growth potential embedded in our business, as well as the current macro-economic challenges we face,” said Nitin Jain, President and Chief Executive Officer. “In 2023, we intend to capture the growth potential inherent in our retirement segment, advance our long-term care redevelopment initiatives, and continue with our platform enhancements. These initiatives, coupled with the support of our strong balance sheet and liquidity, position us well to execute on our strategic objectives and help us achieve sustainable, long-term success.”
Operating Highlights
Continued strong lead generation, with qualified leads up 29% year over year compared to Q4 2021, is expected to support further occupancy gains in 2023.
Portfolio Update and Development Highlights
Financing Highlights
Financial performance – Q4 2022
Financial performance – Year ended December 31, 2022
Financial position
The Company maintained a strong financial position during Q4 2022:
Financial and Operating Results
Three Months Ended | Year Ended | |||
$000s except occupancy, per share and ratio data | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 |
Retirement – Average same property occupancy | 88.6% | 84.2% | 87.3% | 80.8% |
LTC – Average total occupancy | 89.9% | 88.9% | 88.8% | 85.2% |
LTC – Average total occupancy excl. 3 and 4 ward beds and isolation beds | 96.3% | n/a | 95.5% | n/a |
Total Adjusted Revenue(1) | 193,216 | 174,175 | 736,841 | 668,494 |
Same property NOI(1) | 31,150 | 32,596 | 128,753 | 137,957 |
Total NOI(1) | 32,517 | 33,446 | 133,893 | 142,141 |
OFFO per share(1) | 0.243 | 0.272 | 0.965 | 1.148 |
AFFO per share(1) | 0.237 | 0.247 | 0.943 | 1.085 |
AFFO payout ratio(1) | 98.7% | 94.7% | 99.3% | 86.3% |
(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.
Outlook
Retirement – Heading into 2023, the Company intends to continue to capitalize on the growing demand for quality seniors’ living. Average Q1 2023 occupancy is expected to remain at a similar level as Q4 2022. For the full year ending December 31, 2023, Sienna expects average same property occupancy to exceed 90% and average occupancy in the acquisition portfolio to exceed 87%.
In addition, the Company expects continued unfunded pandemic expenses in its retirement operations to be to be approximately $0.4 million in Q1 2023.
Taking all factors into account, the operating margin in the Company’s retirement segment in Q1 2023 is expected to be similar to the full year margin of 35.7% in 2022. Sienna further expects the 2023 operating margin for the full year to improve by approximately 150 bps – 200 bps compared to 2022.
Long-term Care – Sienna expects continued unfunded pandemic expenses of between $2 million to $3 million in Q1 2023 within its long-term care segment, primarily as a result of additional labour costs, although some of these expenses may be covered by retroactive government funding in future periods.
Taking all factors into account, Sienna expects its 2023 NOI for the full year in the LTC segment to remain at a similar level compared to 2022.
Developments – In December 2022, as a result of significant inflationary and cost pressures, the Ontario government announced a time-limited supplemental increase to the construction funding subsidy for long-term care projects with a construction start by August 31, 2023. Based on the revised construction funding model, eligible projects will receive an additional construction subsidy of up to $35 per bed, per day for 25 years.
As a result, Sienna expects to have a total of 480 beds under construction by mid-2023, including projects in North Bay, Keswick as well as a campus of care development in Brantford, Ontario. In addition, over 1,000 beds are currently in the planning stages in the Greater Toronto Area, including in Scarborough and Mississauga.
Conference Call
Sienna will host a conference call on Friday, February 24, 2023 at 4:00 p.m. (ET). The toll-free dial-in number for participants is 1-800-715-9871, conference ID: 8818813. 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 February 24, 2024 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.
Risk Factors
Refer to the risk factors disclosed in the Company’s MD&A for the year ended December 31, 2022, and its most recent Annual Information Form for more information.
Forward-Looking Statements
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:
David Hung
Chief Financial Officer and Executive Vice President
(905) 489-0258
david.hung@siennaliving.ca
Nancy Webb
Senior Vice President, Public Affairs and Marketing
(905) 489-0788
nancy.webb@siennaliving.ca
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