Sienna Senior Living Reports Robust Q1 Growth

Sienna Senior Living ((TSE:SIA)) has held its Q1 earnings call. Read on for the main highlights of the call.

Sienna Senior Living’s recent earnings call painted a picture of robust financial growth, driven by significant increases in revenue and net operating income (NOI), particularly within the retirement segment. The company is actively pursuing expansion through acquisitions and developments, with a strong emphasis on enhancing team member engagement and reducing costs. However, the long-term care segment showed only moderate growth, which presents a minor concern amidst the overall positive performance.

Strong Financial Growth

The company reported a substantial increase in total adjusted revenues, which rose by 12.1% year-over-year to $241.8 million. Additionally, total adjusted same-property NOI saw an 8.5% increase, reaching $42.5 million in the first quarter of 2025. This financial growth underscores Sienna’s effective strategies in boosting profitability.

Retirement Segment Performance

The retirement segment was a standout performer, with adjusted same-property NOI increasing by 16.7%, driven by rising occupancy and rental rate growth. Average same-property occupancy reached 92.5% in Q1, with a target set for 95% by Q1 2026, reflecting the segment’s strong market demand and operational efficiency.

Acquisition and Development Success

Sienna successfully closed $250 million in acquisitions and announced an additional $85 million acquisition of a Class A retirement residence in Ottawa. The company’s platform is expected to exceed 100 properties by the third quarter of 2025, highlighting its aggressive expansion strategy.

Team Member Investment

Sienna’s investment in its workforce has paid off, with a 30% reduction in turnover leading to a 70% reduction in the use of agency staff. This improvement is attributed to the expansion of the shared ownership program, which has enhanced team member engagement and satisfaction.

Strong Liquidity and Financial Position

The company ended the quarter with $445 million in liquidity and $1.1 billion of unencumbered assets, with no major debt maturities until the first quarter of 2026. This strong financial position provides Sienna with the flexibility to pursue further growth opportunities.

Moderate Long-Term Care Segment Growth

The long-term care segment experienced only a 2.2% increase in adjusted same-property NOI, indicating slower growth compared to the retirement segment. This moderate growth highlights an area for potential improvement in Sienna’s portfolio.

Forward-Looking Guidance

During the earnings call, Sienna provided guidance indicating a robust start to the fiscal year, with plans to add nearly $600 million in assets through acquisitions and developments by the third quarter. The company expects continued growth in NOI for the retirement segment at over 10% for 2025, supported by strategic acquisitions, developments, and operational efficiencies. Meanwhile, the long-term care segment is projected to see low single-digit growth.

In summary, Sienna Senior Living’s earnings call conveyed a positive outlook, driven by strong financial growth and strategic expansion efforts. While the retirement segment continues to thrive, the long-term care segment’s moderate growth presents an area for potential improvement. Overall, Sienna’s robust liquidity and strategic investments position the company well for future success.