MARKHAM, ON--(Marketwired - August 10, 2016) - Sienna Senior Living Inc. (
Second Quarter 2016 Highlights
- Overall Same Property Net Operating Income ("NOI") up 5.2%
- Retirement Same Property NOI up 19.3%; As At Occupancy up 4.7% over Q2 2015
- Completed a $138.3 million bought deal public offering of subscription receipts ("Subscription Receipts"), inclusive of the exercise by underwriters of over-allotment option in full, which were exchanged for common shares of the Company in connection with completion of the Acquisition (see "Subsequent to Second Quarter" below)
- Completed the sale of home care division (Preferred Health Care Services) for cash proceeds of $16.4 million
- Subsequent to Second Quarter:
- Completed the previously announced acquisition (the "Acquisition") of a portfolio of high-quality seniors living assets in British Columbia ("BC"), consisting of eight residences: two private-pay independent living retirement residences and six residences providing private-pay and funded long-term care, independent living and assisted living;
- options to acquire up to a 100% interest, at a discount to fair market value, in two additional newly built seniors living assets (the "Options"); and
- a 50% interest in Pacific Seniors Management General Partnership ("PSM"), the current manager and operator of the residences to be acquired by the Company, (collectively, the "Purchased Assets").
"We continued to deliver solid operating results in the second quarter of 2016," said Lois Cormack, President and Chief Executive Officer of Sienna. "We are also pleased to have recently completed the acquisition of a high-quality seniors living portfolio in British Columbia and an interest in an established operator in the province. We believe the transaction represents a great opportunity to expand our presence in British Columbia, and is in line with our strategy to diversify, both with respect to the mix of seniors living assets in our portfolio and geographically."
Financial and Operating Highlights:
| Three months ended June 30, 2016 |
Three months ended June 30, 2015 |
Six months ended June 30, 2016 |
Six months ended June 30, 2015 |
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| Average total occupancy (LTC) | 98.8% | 98.5% | 98.7% | 98.3% | ||||
| Average private occupancy (LTC) | 99.9% | 99.7% | 99.8% | 99.3% | ||||
| Average occupancy (Retirement) | 92.3% | 87.0% | 92.1% | 86.9% | ||||
| As at occupancy (Retirement) | 93.5% | 88.8% | 93.5% | 88.8% | ||||
| $000s except occupancy, per share and ratio data | Three months ended June 30, 2016 |
Three months ended June 30, 2015 |
Six months ended June 30, 2016 |
Six months ended June 30, 2015 |
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| Net Operating Income (NOI) (1) | $22,567 | $20,950 | $44,007 | $40,948 | ||||
| Operating Funds from Operations (OFFO) (1) | $11,385 | $10,448 | $22,200 | $20,057 | ||||
| OFFO per share, diluted | $0.300 | $0.279 | $0.588 | $0.537 | ||||
| Adjusted Funds from Operations (AFFO) (1) | $13,466 | $12,179 | $26,655 | $24,015 | ||||
| AFFO per share, diluted | $0.353 | $0.324 | $0.701 | $0.639 | ||||
| AFFO per share, basic | $0.368 | $0.335 | $0.729 | $0.661 | ||||
| Dividends declared per share | $0.225 | $0.225 | $0.450 | $0.450 | ||||
| Payout Ratio (2) | 61.1% | 72.8% | 61.7% | 68.1% |
| 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 2016
The Company generated NOI of $22.6 million for the three months ended June 30, 2016, representing an increase of $1.6 million or 7.7% over the comparable prior year period. Same property NOI increased by $1.1 million or 5.2% over the comparable prior year period.
OFFO increased by $0.9 million or 9.0% to $11.4 million over the comparable prior year period. The increase was principally related to improved NOI contribution noted above and lower administrative expenses.
AFFO increased by $1.3 million or 10.6% to $13.5 million over the comparable prior year period. The increase was principally related to the increase in OFFO noted above and lower maintenance capital expenditures.
2016 First Half Results Summary
The Company generated NOI of $44.0 million for the six months ended June 30, 2016, representing an increase of $3.1 million or 7.5% over the comparable prior year period. Same property NOI increased by $2.3 million or 5.6% over the comparable prior year period.
OFFO increased by $2.1 million or 10.7% to $22.2 million over the comparable prior year period. The increase was principally related to improved NOI contribution noted above and lower administrative expenses.
AFFO increased by $2.6 million or 11.0% to $26.7 million over the comparable prior year period. 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 and live internet webcast for the investment community on Thursday, August 11, 2016, at 10:00 a.m. (EDT) to discuss the Company's financial and operating results. The dial-in numbers for participants are 416-340-2220 (for local callers) and 1-866-225-9256 (for all other callers). A webcast of the call will be accessible via the Company's website at: www.siennaliving.ca/Investors/Events-Presentations.aspx.
A replay of the call will be available until August 25, 2016. To access the replay, dial 905-694-9451 or 1-800-408-3053 (pass code: 6069060). The webcast will be archived on the Company's website.
About Sienna Senior Living
Sienna Senior Living (
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.
Contact Information:
Nitin Jain
Executive Vice President & Chief Financial Officer
(905) 489-0787
Nitin.Jain@siennaliving.ca