Sienna Senior Living Inc. Reports 2018 Second Quarter Financial Results and Announces 2% Dividend Increase
2018 Second Quarter Highlights
Strong operating performance
- Revenue increased by 17.9% to
$162.1 million in Q2 2018, compared to Q2 2017; - Retirement Same Property Net Operating Income (“NOI”) increased by 6.2% to
$8.3 million in Q2 2018 compared to Q2 2017, and Overall Same Property NOI increased by 3.7% to$30.5 million in Q2 2018 compared to Q2 2017; - Diluted Operating Funds from Operations (“OFFO”) increased by 12.7% to
$0.372 per share in Q2 2018, compared to Q2 2017, driven by strong operating results, lower general and administrative expenses due to timing and favourable mark-to-market adjustments on deferred share units; - Diluted Adjusted Funds from Operations (“AFFO”) increased by 4.1% to
$0.384 per share in Q2 2018, compared to Q2 2017, driven by strong operating results.
Improved balance sheet
- Lowered Debt to Gross Book Value by 210 bps to 49.4% from 51.5% year-over-year;
- Improved interest coverage ratio to 4.1x in Q2 2018 from 3.8x in Q2 2017;
- Fully repaid the Bridge Loan of
$115 million in Q2 2018 that was drawn upon the acquisition of ten retirement residences in Q1 2018; - Redemption of all remaining Convertible Debentures as of
May 23, 2018 , including$31.5 million converted into 1,881,129 common shares during Q2 2018 (at$16.75 per common share), and$13.0 million redeemed in cash.
Continued growth and industry recognition
- Acquired an additional 16% interest in
Glenmore Lodge inBritish Columbia for$6.2 million , before closing costs and subject to customary closing adjustments, increasing the Company’s interest from 61% to 77% onMay 1, 2018 ; - Awarded four-year Accreditation with Exemplary Standing, the highest distinction awarded by Accreditation Canada, for Sienna’s Residential Care communities in
British Columbia .
Dividend Increase
The Board of Directors has approved an increase in Sienna’s monthly dividend from
“We are delighted with the strong second quarter results, which reflect significant contributions from our recent portfolio acquisition in Q1 in addition to strong organic growth,” said
Financial and Operating Highlights:
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Retirement Same Property – Average occupancy | 93.2% | 94.2% | 93.4% | 94.2% | ||||
Retirement Acquisitions – Average occupancy | 90.3 | N/A | 90.3% | N/A | ||||
Retirement – Average total occupancy | 91.6% | 94.2% | 91.8% | 94.2% | ||||
LTC/RC – Average total occupancy | 98.3% | 98.5% | 98.1% | 98.1% | ||||
LTC/RC – Average private occupancy | 98.3% | 98.9% | 98.4% | 98.7% |
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Revenue | $162,124 | $307,481 | ||||||||||
Operating expenses | $122,734 | $235,687 | ||||||||||
NOI (1) | $39,390 | $71,794 | ||||||||||
Net income | $3,548 | $4,581 | ||||||||||
Operating Funds from Operations (OFFO)(1) | $24,199 | $42,670 | ||||||||||
Adjusted Funds from Operations (AFFO)(1) | $25,018 | $45,834 | ||||||||||
Net income per share, diluted | $0.054 | $0.072 | ||||||||||
OFFO per share, diluted | $0.372 | $0.679 | ||||||||||
AFFO per share, diluted | $0.384 | $0.729 | ||||||||||
Dividends declared per share | $0.225 | $0.450 | ||||||||||
Payout Ratio(2) | 57.8% | 58.9% | 60.6% | 60.6% | Notes: |
NOI, OFFO and AFFO are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. NOI, OFFO and AFFO are supplemental measures of a company's performance, and management of the Company believes that NOI and OFFO are relevant measures of the Company’s earnings performance, and AFFO is a relevant measure of the Company’s ability to earn cash and pay dividends. The IFRS measurement most directly comparable to OFFO and AFFO is net income and cash flow from operating activities, respectively.- Payout Ratio is calculated using dividends declared per share divided by the basic AFFO per share for the respective periods.
2018 Second Quarter Summary
Revenue increased by 17.9%, or
Operating expenses increased by 13.5%, or
NOI increased by 33.9%, or
The Company generated net income of
OFFO increased by 53.6%, or
AFFO increased by 41.7%, or
2018 Six Months Summary
Revenue increased by 13.3%, or
Operating expenses increased by 9.8%, or
NOI increased by 26.2%, or
The Company generated net income of
OFFO increased by 42.5%, or
AFFO increased by 33.5%, or
Conference Call
About
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/residential 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:
Chief Financial Officer & Chief Investment Officer
(905) 489-0787
Nitin.Jain@siennaliving.ca
Source: Sienna Senior Living