Sienna Senior Living Inc. Reports 2017 Second Quarter Financial Results

MARKHAM, Ontario, Aug. 09, 2017 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. SIA ("Sienna Senior Living" or the "Company") today announced its financial results for the three and six months ended June 30, 2017. The Unaudited Condensed Interim Consolidated Financial Statements and accompanying Management's Discussion and Analysis are available on the Company's website at www.siennaliving.ca and on SEDAR at www.sedar.com.

Second Quarter 2017 Highlights

• Diluted Operating Funds from Operations ("OFFO diluted") up 10.0% from Q2 2016 to $0.33 per share in Q2 2017
• Overall Same Property Retirement Net Operating Income ("NOI") up 10.1% from Q2 2016 to $6.8 million in Q2 2017
• Debt to Gross Book Value at 51.5% (48.4% excluding Convertible Debentures) compared to 53.5% (49.5% excluding Convertible Debentures), representing a decline of 200 bps
• Completed the previously announced acquisition of Rosewood Retirement Residence, a 68-suite private-pay retirement residence located in Kingston, Ontario
• Subsequent to the end of the second quarter, completed the acquisition of Retirement Suites of Kawartha Lakes, an independent and assisted living retirement residence located in Bobcaygeon, Ontario (rebranded by the Company as Kawartha Lakes Retirement Residence) 

"We are pleased with our strong second quarter performance, with an overall 2.8% increase in same property NOI, including continued growth in Retirement's same property NOI of 10% and maintaining Retirement occupancy of 94.2%" said Lois Cormack, President and Chief Executive Officer of Sienna. "Management remains focused on strengthening Sienna's operating platform and disciplined portfolio growth, a strategic approach that we expect to drive sustainable growth in earnings and long-term shareholder value."

Financial and Operating Highlights:

Notes:

(1) NOI, FFO, OFFO and AFFO are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. NOI, FFO, OFFO and AFFO are supplemental measures of a company's performance and management believes that NOI, FFO, OFFO and AFFO are relevant measures of its earnings performance and its ability to pay dividends on the Company's common shares. The IFRS measurement most directly comparable to AFFO is cash flow from operations.

(2) Payout Ratio is calculated using dividends declared per share divided by the basic AFFO per share for the respective periods.

Second Quarter 2017

The Company generated NOI of $29.4 million for the three months ended June 30, 2017, representing an increase of $6.8 million or 30.3% over the comparable prior year period. Same property NOI increased by $0.6 million or 2.8% over the comparable prior year period.

OFFO increased by $4.4 million or 38.4% to $15.8 million over the comparable prior year period. The increase was principally related to improved NOI contribution from same and newly acquired properties.

AFFO increased by $4.2 million or 31.1% to $17.7 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above, partially offset by an increase in maintenance capital expenditures.

2017 First Half Results Summary

The Company generated NOI of $56.9 million for the six months ended June 30, 2017, representing an increase of $12.9 million or 29.2% over the comparable prior year period. Same property NOI increased by $1.5 million or 3.4% over the comparable prior year period.

OFFO increased by $7.7 million or 34.9% to $29.9 million over the comparable prior year period. The increase was principally related to improved NOI contribution from same and newly acquired properties.

AFFO increased by $7.7 million or 28.8% to $34.3 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above.

Conference Call

The toll-free dial-in number for participants is 1-844-543-5234, please enter pass code: 49104245. A webcast of the call will be accessible via Sienna's website at www.siennaliving.ca/Investors/Events-Presentations.aspx. The webcast of the call will be available for replay until August 10, 2018 and archived on Sienna's website.

About Sienna Senior Living

Sienna Senior Living SIA is a leading seniors' living provider, serving over 8,000 residences in key markets in Canada.  The Company offers a continuum of seniors' living, including independent and assisted living, long-term care and specialized seniors programs and services, in addition to providing expert management services.  We are committed to national growth, while driving long-term value creation for our shareholders. The Company's over 11,000 employees are passionate about helping residents live fully, every day. For more information, please visit www.siennaliving.ca.

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" or other similar words and include, among other things, statements related to the Company's financial results or strategic plans. 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, including the funding of long-term care facilities by government entities. Other material factors or assumptions that were applied in formulating the forward-looking statements contained herein include the assumption that the business and economic conditions affecting the Company's operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity and government regulations.

Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of the Company as at the date of this news release and speak only as at the date of this news release. 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:

Nitin Jain
Chief Financial Officer & Chief Investment Officer
(905) 489-0787
Nitin.Jain@siennaliving.ca