Sienna Senior Living ((TSE:SIA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Sienna Senior Living’s recent earnings call painted a picture of robust growth and operational success. The company reported strong financial performance and highlighted successful development and acquisition strategies. Despite acknowledging challenges such as debt levels and labor market issues, the overall sentiment was optimistic about future prospects.
Strong Operational Results
Sienna Senior Living showcased impressive operational results, with a notable increase in same-property NOI by 13.2% in the Retirement segment and 6.7% in Long-Term Care. The company also reported a rise in average same-property occupancy, reaching 94.1% in Q3 and further increasing to 94.7% in October.
Successful Developments and Acquisitions
The company completed two significant development projects in Ontario and made several acquisitions in 2025, adding over $800 million in assets. Noteworthy acquisitions included a 133-suite retirement residence and a 192-bed long-term care home in the Greater Toronto Area, bolstering their portfolio.
Financial Performance
Sienna’s financial performance was strong, with revenue increasing by 16.4% year-over-year to $261.7 million. Operating funds from operations rose by 33.3% to $31.8 million, while adjusted funds from operations grew by 36.1% to $27.7 million, reflecting the company’s solid financial footing.
Recognition for Employee Engagement
Employee engagement at Sienna reached new heights, with the engagement score rising for the fifth consecutive time and survey participation hitting a record 86%. Time Magazine recognized Sienna as one of Canada’s Best Companies in 2025, underscoring their commitment to a positive workplace culture.
Debt Levels
The company’s debt-to-EBITDA ratio stood at 8.8x, with a pro forma basis under 8x. While this level of leverage could pose concerns if not managed carefully, the company appears to be aware of the need for prudent financial management.
Challenges in Labor Markets
Labor market challenges persist, particularly in talent sourcing and retention. While improvements have been noted, these issues remain a concern for Sienna as they continue to navigate the competitive labor landscape.
Forward-Looking Guidance
Looking ahead, Sienna Senior Living aims to achieve a 95% occupancy target by year-end, with lead generation efforts already showing a 37% year-over-year increase in Q3. The company expects continued growth in revenue and funds from operations, supported by strategic acquisitions and developments. With $464 million in liquidity and $1.3 billion in unencumbered assets, Sienna is well-positioned for future expansion.
In summary, Sienna Senior Living’s earnings call reflected a positive outlook, driven by strong operational results, strategic acquisitions, and a focus on employee engagement. While challenges such as debt levels and labor market issues remain, the company’s proactive approach and robust financial performance suggest a promising future.