Sienna Senior Living Inc. Reports 2018 Third Quarter Financial Results
2018 Third Quarter Highlights
Strong operating performance
- Revenue increased by 18.0% to
$165.0 million in Q3 2018, compared to Q3 2017; - Net Operating Income (“NOI”) increased by 31.7% to
$40.5 million in Q3 2018 compared to Q3 2017; - Retirement Same Property NOI increased by 4.2% to
$8.9 million in Q3 2018 compared to Q3 2017; - Long-term Care (“LTC”)/ Residential Care (“RC”) Same Property NOI increased by 3.5% to
$23.0 million in Q3 2018 compared to Q3 2017; - Diluted Operating Funds from Operations (“OFFO”) increased by 4.6% to
$0.362 per share in Q3 2018, compared to Q3 2017; - Monthly dividend per share increased by 2% to
$0.0765 per share, starting with theAugust 2018 dividend paid inSeptember 2018 .
Improved balance sheet
- Lowered debt to gross book value by 350 bps to 48.3% from 51.8% year-over-year;
- Improved interest coverage ratio to 4.0x in Q3 2018 from 3.9x in Q3 2017;
- Increased weighted average term of debt maturity to 5.0 years at the end of Q3 2018 from 4.6 years at the end of Q3 2017.
“With another solid quarter of operating results and the favourable ruling by the
Financial and Operating Highlights:
$000s except occupancy, per share and ratio data | Three months ended |
Three months ended |
Nine months ended |
Nine months ended |
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Retirement Same Property – Average occupancy (1) | 91.8 | % | 94.0 | % | 92.8 | % | 94.1 | % |
Retirement Acquisitions – Average occupancy | 91.0 | % | N/A | 90.3 | % | N/A | ||
Retirement – Average total occupancy (2) | 91.4 | % | 94.0 | % | 91.6 | % | 94.1 | % |
LTC/RC – Average total occupancy | 98.7 | % | 98.6 | % | 98.3 | % | 98.3 | % |
LTC/RC – Average private occupancy | 98.6 | % | 98.5 | % | 98.2 | % | 98.5 | % |
Revenue | ||||||||
Operating expenses | ||||||||
NOI (3) | ||||||||
Net income | ||||||||
Operating Funds from Operations (OFFO)(3) | ||||||||
Adjusted Funds from Operations (AFFO)(3) | ||||||||
Net income per share, diluted | ||||||||
OFFO per share, diluted | ||||||||
AFFO per share, diluted | ||||||||
Dividends declared per share | ||||||||
Payout Ratio(4) | 61.6 | % | 57.3 | % | 60.3 | % | 60.5 | % |
Notes:
- Quarter-over-quarter and year-over-year decreases in Retirement same property occupancy are due to increased resident turnover.
- Quarter-over-quarter and year-over-year decreases in total Retirement occupancy are due to acquisitions with lower levels of occupancy and higher levels of short term stays, increased resident turnover, and a more severe and prolonged flu season in early 2018.
- 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 Third Quarter Summary
Average occupancy in our LTC/RC portfolio remained high at 98.7% in Q3 2018, a 0.1% increase over Q3 2017. Average occupancy in the Retirement portfolio was 91.4% in Q3 2018 compared to 94.0% in Q3 2017, largely due to the impact of acquisitions with lower levels of occupancy and increased resident turnover during the quarter. Average occupancy in Retirement same property was 91.8% in Q3 2018 compared to 94.0% in Q3 2017, and trended higher at the end of Q3 2018 to 93.0%.
Revenue increased by 18.0%, or
Operating expenses increased by 14.1%, or
NOI increased by 31.7%, or
The Company generated net income of
OFFO increased by 43.8%, or
AFFO increased by 33.2%, or
2018 Nine Months Summary
Revenue increased by 14.9%, or
Operating expenses increased by 11.3%, or
NOI increased by 28.2%, or
The Company generated net income of
OFFO increased by 43.0%, or
AFFO increased by 37.6%, or
Proposed Class Action Discontinued
On
Conference Call
The toll-free dial-in number for participants is 1-844-543-5234, conference ID: 9089533. A webcast of the call will be accessible via Sienna's website at: www.siennaliving.ca/Investors/Events-Presentations.aspx. The webcast of the call will be available for replay until
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