Sienna Senior Living Inc. Provides Business Update
MARKHAM, Ontario,
The health and well-being of residents and team members remain the Company’s top priority. Sienna continues to take the critical steps necessary to make solid progress against and minimize the impact of new COVID-19 outbreaks, including preparing for a potential second wave, while providing the best quality care for its residents.
“We have emerged from the first wave of the pandemic stronger, more knowledgeable and better positioned for a potential second wave,” said
COVID-19 Update
One resident case of COVID-19 in Sienna’s residences
As of
Over the past month, the number of active resident COVID-19 cases across Sienna’s 83 owned or managed residences remained at zero to one case at any given time, highlighting the effectiveness of the Company’s measures to fight COVID-19.
Business Update
Preparedness for Potential Second Wave and Hospital Management
With Sienna’s enhanced healthcare expertise with respect to seniors’ care and infectious diseases, and the support of our hospital partners, associations and governments, the Company will continue to take the critical steps necessary to ensure preparedness for a potential second wave. Sienna is continuing to secure a robust supply of personal protective equipment, strengthening infection prevention and control practices, putting in place staffing plans, and ensuring the Company’s frontline employees have the training and support they need. In addition, Sienna implemented important new strategies to strengthen family and team member communications to keep them apprised of new initiatives and developments.
During
Retirement Occupancy and Rent Collection
The Company’s
Retirement same property occupancy (average) | 82.3% | 81.2% | 81.1% | |||
Retirement rent collection | 99.2% | 99.8% | 99.6% |
Since
Pandemic Expenses and Funding
We are encouraged by the Government of Ontario’s recent announcement for additional funding for COVID-19 prevention and containment and the Government of British Columbia’s funding announcement to cover extra staffing costs dedicated to safe social visitations.
Sienna expects to continue to incur an increased level of expenses to support the costs of managing COVID-19. While certain temporary expenses are expected to be covered by government funding, other expenses may not be covered. In addition, there may be timing differences between the time of incurring these expenses and the funding of such expenses.
The following table summarizes the government assistance and pandemic expenses recognized in Q2 2020 and to date in Q3 2020:
$000s |
Q2 2020 | July/ |
|||||||||||||||||||||||||
Retirement | LTC |
Administrative | Total |
Retirement | LTC |
Administrative | Total |
||||||||||||||||||||
Total government assistance | 2,065 | 22,852 | — | 24,917(1) | 1,704 | 14,285 | — | 15,989(2) | |||||||||||||||||||
Total pandemic expense | 3,426 | 29,152 | 2,981 | 35,559(1) | 2,381 | 21,009 | 1,262 | 24,652(2) | |||||||||||||||||||
Total net pandemic expenses | 1,361 | 6,300 | 2,981 | 10,642 | 677 | 6,724 | 1,262 | 8,663 |
(1) Total government assistance and pandemic expense for Q2 2020 include
(2) Total government assistance and pandemic expense for July/
Ontario Government Update on
We are pleased with the
- the base construction funding subsidy per diem ranges from
$20.53 to$23.78 per bed, depending on the market segment, an increase of approximately 14% to 32% from$18.03 in the previous model; and - the development grant ranges from 10% to 17% of total eligible project costs, based on the location of the project, up to the applicable maximum grant amount.
With the more favorable financial economics of the program, Sienna is evaluating how this program will impact and benefit the Company’s current portfolio of 5,733 long-term care beds in
Three development projects in
About
Risk Factors
Refer to the risk factors on “General Business Risks” and “COVID-19 and Other Outbreaks” disclosed in the Company’s Management Discussion and Analysis for the three months ended
Forward-Looking Information
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 include, without limitation, statements with respect to the impact of COVID-19 and measures taken to mitigate the impact and statements with respect to the Company’s ability to refinance debt maturities. 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:
Chief Financial Officer and Senior Vice President
(905) 477-4006 x3069
karen.hon@siennaliving.ca
Senior Vice President, Public Affairs and Marketing
(905) 415-7623
nancy.webb@siennaliving.ca
Source: Sienna Senior Living