Michael Markidis, an analyst from BMO Capital, has initiated a new Buy rating on Sienna Senior Living (SIA).
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Michael Markidis has given his Buy rating due to a combination of factors that highlight Sienna Senior Living’s strong position and growth potential. The recent $143.9 million equity offering is expected to support future acquisitions, enhancing the company’s portfolio and driving growth. This capital raise, along with a robust acquisition pipeline valued between $150 million to $200 million, positions Sienna well to capitalize on opportunities in the market.
Furthermore, Sienna’s retirement segment is projected to perform exceptionally well in 2025, with anticipated SP-NOI growth of about 10%. The company is also focusing on repositioning five retirement properties, which should improve occupancy rates and NOI margins. These strategic initiatives, coupled with favorable supply and demand dynamics in the Canadian seniors housing market, underpin the positive outlook and justify the Buy rating.
SIA’s price has also changed slightly for the past six months – from C$15.210 to C$15.720, which is a 3.35% increase.