Sienna Reports Second Quarter 2025 Financial Results and Publishes 2025 Impact Report

MARKHAM, Ontario, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today announced its financial results for the three and six months ended June 30, 2025.

Highlights

• Average Same Property Occupancy in retirement segment up 150 basis points (“bps”) year-over-year to 92.1% in Q2 2025 and further increased to 93.1% in July 2025
• Revenue, Proportionate Basis, excluding One-Time Items, increased by 17.4% to $253.6 million in Q2 2025
• Same Property Net Operating Income (“NOI”), excluding One-Time Items, up 8.2% to $45.1 million in Q2 2025
  • Retirement Segment up 12.3% year-over-year in Q2 2025
  • Long-Term Care (“LTC”) Segment up 4.8% year-over year in Q2 2025
• Adjusted Funds from Operations (“AFFO”), excluding One-Time Items, increased by 21.0%, and on a per share decreased 4.0% in Q2 2025
• Completed $315 million in acquisitions in Alberta and Ontario during Q2 2025
• Entered into $60 million purchase agreement for Credit River Retirement Residence in the Greater Toronto Area
• Completed $80 million Northern Heights LTC redevelopment project in North Bay, Ontario
• Published 2025 Impact Report highlighting Sienna’s broad impact on its stakeholders
• Recognized by Time Magazine as one of Canada’s Best Companies in 2025
  
  
  
  

“During the second quarter, we continued to execute on our strategic growth initiatives, both through growth within our existing operations as well as acquisitions and developments,” said Nitin Jain, President and Chief Executive Officer. “Sienna’s recent recognition by Time Magazine as one of Canada’s Best Companies in 2025 reflects not only our track record of sustainable growth, but also the meaningful impact we’re making as we continue to invest in the future of Canadian senior living and its stakeholders.”

2025 Growth Momentum

Sienna focuses its growth strategy on newer properties predominantly located in large urban markets. The table below lists all acquisitions completed in Q2 2025 or currently under contract:

Financial and Operating Results

The following table represents the Key Performance Indicators adjusted for One-Time Items for the periods ended June 30:

Financial Performance - Q2 2025

• Revenue, Proportionate Basis, excluding One-Time Items increased by 17.4%, or $37.5 million, to $253.6 million, compared to Q2 2024. In the Retirement segment, the increase is primarily attributable to occupancy increases, rental rate adjustments in line with market conditions, higher care revenue and contributions from acquisitions completed in 2025. In the LTC segment, the increase is primarily due to higher flow-through funding for direct care, private accommodation revenue increases and contributions from acquisitions completed in 2025.
• NOI, excluding One-Time Items increased by 18.8% to $50.6 million, compared to Q2 2024. The Retirement segment NOI, excluding One-Time Items, increased by $3.9 million, primarily attributable to occupancy increases, rental rate adjustments in line with market conditions, increased care revenue, and contributions from acquisitions completed in 2025, partially offset by increases in operating expenses related to higher labour, culinary and maintenance costs. The LTC segment NOI, excluding One-Time Items, increased by $4.2 million mainly due to higher flow-through funding for direct care, private accommodation revenue increases and contributions from acquisitions completed in 2025, offset in part by higher direct care labour and operating expenses.
• Same Property NOI, excluding One-Time Items increased by 8.2% to $45.1 million, compared to Q2 2024, including a 4.8% increase to $24.1 million in the LTC segment, and a 12.3% increase to $20.9 million in the Retirement segment.
• OFFO, excluding One-Time Items increased by 24.3% in Q2 2025, or $5.7 million, to $29.3 million compared to Q2 2024. The increase was primarily due to higher NOI in Q2 2025. OFFO per share, excluding One-Time Items decreased by 1.5% in Q2 2025, or $0.005, to $0.318.
• AFFO, excluding One-Time Items increased by 21.0% in Q2 2025, or $4.2 million, to $24.1 million compared to Q2 2024. The increase was primarily related to the increase in OFFO, offset by an increase in maintenance capital expenditure and a decrease in construction funding income. AFFO per share, excluding One-Time Items, decreased by 4.0% in Q2 2025 to $0.262.
• AFFO payout ratio, excluding One-Time Items, was 89.5%, compared to 85.7% in Q2 2024.
  
  
  
  The increase in AFFO payout ratio and decreases in OFFO per share and AFFO per share, excluding One-Time Items, are the result of the temporary dilution in connection with the Company's equity issuances in August 2024 and February 2025 in order to support Sienna’s growth strategy.

• Debt - The Company's Debt to Adjusted Gross Book Value decreased by 150 bps to 42.2% at the end of Q2 2025, from 43.7% at the end of Q2 2024, primarily due the Company’s growing asset base as a result of acquisitions and development projects. The Weighted Average Cost of Debt increased by 20 bps to 3.9% at the end of Q2 2025, from 3.7% at the end of Q2 2024. The Weighted Average Term to Maturity increased to 6.3 years from 5.5 years in Q2 2024. The Company is in compliance with all of its debt covenants.
  
  
  
  On August 1, 2025, Morningstar DBRS announced the confirmation of the Company’s BBB Issuer Rating and ratings on its Senior Unsecured Debentures, with trends remaining “Stable”
  
  
  
  

Financial Performance - Six Months ended June 30, 2025

• Revenue, proportionate basis, excluding One-Time Items increased by 14.7%, or $63.6 million, to $495.5 million, compared to the six months ended June 30, 2024. In the Retirement segment, the increase is primarily attributable to occupancy increases, rental rate adjustments in line with market conditions, and higher care revenue. In the LTC segment, the increase is primarily due to higher flow-through funding for direct care, higher funding utilization and private accommodation revenue increases.
• NOI, excluding One-Time Items increased by 14.9% to $94.7 million, compared to the six months ended June 30, 2024. Retirement segment NOI, excluding One-Time Items, increased by $7.6 million primarily attributable to occupancy increases, rental rate adjustments in line with market conditions and higher care revenue, offset by increases in operating expenses related to higher labour, culinary, maintenance and property-related expenses. LTC segment NOI, excluding One-Time Items increased by $4.7 million mainly due to higher flow-through funding for direct care, private accommodation revenue increases and contributions from acquisitions completed in 2025, offset in part by increases in direct care labour and operating expenses.
• Same Property NOI, excluding One-Time Items increased by 8.4% to $87.6 million, compared to to the six months ended June 30, 2024, including a 3.6% increase to $46.7 million in the LTC segment, and a 14.4% increase to $40.9 million in the Retirement segment.
• OFFO, excluding One-Time Items increased by 25.6%, or $11.0 million, to $54.0 million compared to the six months ended June 30, 2024. The increase was primarily due to higher NOI. OFFO per share, excluding One-Time Items, increased by 2.7%, or $0.016, to $0.605 compared to the six months ended June 30, 2024.
• AFFO, excluding One-Time Items increased by 23.7%, or $9.0 million, to $46.9 million compared to the six months ended June 30, 2024. The increase was primarily related to the increase in OFFO, offset by an increase in maintenance capital expenditure and a decrease in construction funding income. AFFO per share, excluding One-Time Items, increased by 1.2%, or $0.006, to $0.526 compared to the six months ended June 30, 2024.
• AFFO payout ratio, excluding One-Time Items was 90.3%, compared to 90.1% for the six months ended June 30, 2024.
  
  
  
  

Completion of First Redevelopment Project in North Bay, Ontario

In July 2025, Sienna completed the construction of Northern Heights, a 160-bed long-term care community in North Bay, Ontario, which replaces 148 older Class C beds at the Company’s Waters Edge Community. The total development cost for the property is approximately $80.0 million, with an expected development yield of 8.0%. In connection with the completion of this project, the Company received a $4.0 million development grant from the Government of Ontario in July 2025, and will further receive an annual construction subsidy of approximately $3.3 million over the next 25 years. The addition of Sienna’s first long-term care redevelopment marks a significant milestone for the Company, reflecting both its growth momentum and its deep commitment to Canadian seniors.

Outlook

The long-term fundamentals in Canadian senior living are fueled by the rising needs of seniors, who make up the fastest-growing demographic in Canada, and limited new supply of senior living accommodations.

Looking ahead, we will continue to leverage these sector dynamics as we grow through portfolio optimization, achieve retirement occupancy improvements towards our 95% target and drive retirement NOI and margin growth.

Retirement Operations – Average occupancy in the Company's Same Property portfolio was 92.1% in Q2 2025, a 150 bps increase year-over-year. Our focus on generating strong interest in our residences, as well as continued improvements to our operations and favourable supply/demand fundamentals supported the year-over-year occupancy improvement.

Going forward, Sienna will continue to focus on expanding the Company's NOI with concentrated marketing and sales initiatives, operational efficiency and asset optimization efforts. We expect Same Property NOI growth in our retirement portfolio to exceed 10% in 2025, compared to 2024, as a result of occupancy growth and rate increases. We are further targeting margin growth in our Same Property portfolio of approximately 100 – 150 bps in 2025 compared to 2024.

Asset Optimization Initiatives – Sienna believes that there is a significant opportunity to create value through asset optimization initiatives at certain properties. These initiatives target a better market fit and include renovations, the changes in suite mix, additional services or the alternative use of a property to reflect the evolving needs of residents. By optimizing our existing portfolio, we expect to unlock substantial NOI growth while modernizing Sienna’s asset base.

Long-Term Care Operations – Sienna's LTC segment continues to benefit from a stable operating environment, high occupancy levels and an increase in private accommodation revenues as a result of higher private occupancy.

For the balance of 2025, we expect continued benefits from fully occupied homes and our successful cost management strategy.

Excluding one-time items, we expect the year-over-year increase of our LTC Same Property NOI for the full year to be in the low single digits, in line with inflation.

Growth Targets – The following table summarizes Sienna’s 2025 targets for same property growth, excluding One-Time Items:

Developments – The following table summarizes development projects that were under various stages of development during Q2 2025:

Once completed and fully operational, each of our three development projects is expected to have a positive impact on our operating results and improve our AFFO per share by approximately 3%.

Subsequent to the end of Q2 2025, the Ontario Ministry of Long-Term Care announced enhancements to its construction funding program, providing greater funding flexibility and addressing regional differences in construction costs, in particular with respect to higher building costs in the GTA. Sienna is currently assessing the implications of the revised program and is evaluating the feasibility of advancing redevelopment projects within its pipeline.

Significant Potential for Growth in NOI - We see significant growth potential in our business over the next several years and are actively working on a number of initiatives which may contribute to the Company’s NOI expansion including:

• Occupancy growth in the Company’s retirement segment, including incremental NOI, as we move towards our target for stabilized average occupancy of 95.0% in our same-property portfolio. This would represent a 290 bps increase from our average occupancy of 92.1% in Q2 2025, supporting rental rate growth in line with market rents and targeted margin growth of 100 - 150 bps in 2025.
• Contributions from acquisitions, asset optimization and new developments, including incremental Adjusted NOI from:
  1. The Company’s acquisitions completed to date in 2025, including
     • its remaining interest in Nicola Lodge, expected to generate an Investment Yield of 6.75%;
     • its acquisition of four continuing care properties in Alberta, expected to generate an approximate 6.5% Investment Yield; and
     • its acquisitions of Wildpine Residence and Hazeldean Gardens, both located in Ottawa, expected to generate approximate Investment Yields of 6.25% and 6.33%, respectively;
  2. The Elgin Falls Retirement Residence, completed in late 2023 for $38.5 million with respect to the Company's 70% joint venture interest, which has an Expected Development Yield of approximately 7.5%; in addition, the Company has the ability to acquire the remaining 30% ownership interest, once the property is fully stabilized;
  3. The contributions from the Company’s acquisitions of Cawthra Gardens, a long-term care community and Credit River, a retirement residence, both located in the GTA and anticipated to close in Q3 2025, with expected Investment Yields of approximately 6.75% and 5.75%, respectively;
  4. The contributions from the Company's five repositioning assets included in Sienna's Growth and Optimization portfolio; and
  5. The Company's development projects in North Bay, Brantford, and Keswick, once completed and operational.

These initiatives could have a significant positive impact on the value of Sienna’s business and enhance its financial performance.

Conference Call

Sienna will host a conference call on August 13, 2025 at 10:00 a.m. (ET). The toll-free dial-in number for participants is 1-800-715-9871, conference ID: 3837569. A webcast of the call will be accessible via Sienna's website at . It will be available for replay until August 13, 2026 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 and memory care under its Aspira retirement brand, long-term care, and specialized programs and services. Sienna's approximately 14,500 employees are passionate about cultivating happiness in daily life. For more information, please visit

Risk Factors

Refer to the risk factors disclosed in the Company’s MD&A for the year ended December 31, 2024, 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, Investments

(905) 489-0258

Nancy Webb

Executive Vice President, Corporate Affairs and Marketing

(905) 477-4006 ext. 3030