SOURCE: Sienna Senior Living Inc.

Sienna Senior Living Inc.

February 16, 2017 16:33 ET

Sienna Senior Living Inc. Reports 2016 Fourth Quarter Financial Results

MARKHAM, ON --(Marketwired - February 16, 2017) - Sienna Senior Living Inc. (TSX: SIA) ("Sienna Senior Living" or the "Company") today announced its financial results for the year ended December 31, 2016. The Audited 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.

Fourth Quarter 2016 Highlights

  • Overall Same Property Retirement NOI up 7.1%
  • Diluted Operating Funds from Operations ("OFFO') per share of $0.32, up 4.6%
  • Strong Balance Sheet: Debt to Gross Book Value at 51.5%, vs 55.6% year-over-year, a decline of 410 bps. Debt to Gross Book Value would be 48.4% as at year end if all outstanding Convertible Debentures were converted to equity.

"We are pleased to deliver another strong quarter to round out the year, achieving 94.5% occupancy in our retirement residences," said Lois Cormack, President and Chief Executive Officer of Sienna. "With the successful integration of the portfolio of seniors living residences in British Columbia, focus on improving the resident experience, investment in our operating platform and executing on growth strategies, we believe we are well positioned to continue to deliver value for our shareholders in 2017."

 
Financial and Operating Highlights:
 
   Three months
ended
December 31,
2016
 Three months
ended
December 31,
2015
 Year ended
December 31,
2016
 Year ended
December 31,
2015
Average total occupancy (LTC)  98.7%  98.8%  98.8%  98.7%
Average private occupancy (LTC)  98.7%  99.9%  99.8%  99.8%
Average occupancy (Retirement)  95.2%  93.4%  93.2%  89.3%
As at occupancy (Retirement)  94.5%  93.6%  94.5%  93.6%
Average total occupancy (Baltic)  97.9%  n/a  97.9%  n/a
Average private occupancy (Baltic)  96.3%  n/a  96.1%  n/a
             
$000s except occupancy, per share and ratio data  Three months
ended
December 31,
2016
 Three months
ended
December 31,
2015
 Year ended
December 31,
2016
 Year ended
December 31,
2015
Net Operating Income (NOI) (1)  $27,409  $22,010  $97,822  $85,402
Operating Funds from Operations (OFFO) (1)  $15,106  $11,453  $52,780  $43,007
OFFO per share, diluted  $0.318  $0.304  $1.259  $1.148
Adjusted Funds from Operations (AFFO) (1)  $15,241  $12,180  $59,116  $49,451
AFFO per share, diluted  $0.321  $0.323  $1.405  $1.312
AFFO per share, basic  $0.331  $0.334  $1.460  $1.359
Dividends declared per share  $0.225  $0.225  $0.900  $0.900
Payout Ratio (2)  68.0%  67.4%  61.6%  66.2%
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.

Fourth Quarter 2016

The Company generated NOI of $27.4 million for the three months ended December 31, 2016, representing an increase of $5.4 million or 24.5% over the comparable prior year period. Same property NOI increased by $0.4 million or 1.8% over the comparable prior year period.

OFFO increased by $3.7 million or 31.9% to $15.1 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 $3.1 million or 25.1% to $15.2 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above, partially offset by timing of capital expenditures.

2016 Year End Results Summary

The Company generated NOI of $97.8 million for the year ended December 31, 2016, representing an increase of $12.4 million or 14.5% over the comparable prior year period. Same property NOI increased by $3.2 million or 3.8% over the prior year.

OFFO increased by $9.8 million or 22.7% to $52.8 million over the prior year. The increase was principally related to improved NOI contribution noted above from same and newly acquired properties.

AFFO increased by $9.7 million or 19.5% to $59.1 million over the prior year. The increase was principally related to the increase in OFFO noted above.

Conference Call

Lois Cormack, President and CEO, and Nitin Jain, Executive Vice President and CFO, will host a conference call for the investment community the following day, Friday, February 17, 2017 at 9:30 a.m. (EST). The call-in numbers for participants are 416-340-2216 or 866-225-0198. A webcast of the call will be accessible via Sienna's website at: www.siennaliving.ca/Investors/Events-Presentations.aspx.

A replay of the call will be available until March 3, 2017. To access the replay, dial 905-694-9451 or 800-408-3053 (pass code: 1152672). The webcast will be archived on Sienna's website.

About Sienna Senior Living
Sienna Senior Living (TSX: SIA) is one of Canada's leading seniors living providers serving the continuum of independent living, independent supportive living, assisted living, memory care and long-term care/ residential care through the operation of its 55 residences. We are committed to national growth, while driving long-term value creation for our shareholders. Our 9,000 employees are dedicated to 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.

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