The following is a summary of the Sienna Senior Living Inc. (LWSCF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Sienna Senior Living Inc. reported a total adjusted revenue increase of 12.5% year-over-year to $224.8 million in Q3 2024, primarily driven by growth in occupancy and rental rates, alongside increased care revenue in the retirement segment and higher government funding and private accommodation revenue in the LTC segment.
Adjusted same property NOI grew by 14.7% to $43.4 million in Q3 2024, compared to $37.8 million in the same quarter of the previous year.
Operating funds from operations increased by 19% to $23.9 million, attributed to higher NOI, reduced transaction costs, and lower interest expenses, partly offset by higher income tax.AFFO per share decreased by 1.1% to $0.266 in Q3 2024, attributed to the temporary dilution caused by a recent equity issuance.
Business Progress:
Sienna Senior Living successfully expanded into Alberta with a $182 million acquisition of four continuing care homes, expected to be finalized in early 2025.
The development projects in Ontario are ongoing with substantial investments aimed to contribute significantly to Sienna's operating results and reduce AFFO payout ratios.
Launched a new long-term care redevelopment project in Keswick, replacing an existing facility with 160 beds, significantly expanding capacity.
Initiated the acquisition of a remaining 30% interest in Nicola Lodge to increase ownership to 100%.
Opportunities:
Sienna has leveraged strong market demand facilitated by demographic trends, including an aging population, to strengthen its financial performance and expand through acquisitions and developments.
The company's strategic entry into Alberta and the anticipated regulatory approvals showcase opportunities for growth and synergies in Western Canada's fast-growing markets.
Risks:
The growth from retirement home operations is expected to become more rate-driven as occupancy approaches 95%, potentially implying challenges in continually increasing rates in highly occupied markets.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
