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• Total Adjusted Revenue: Increased by 12.5% year-over-year to $224.8 million in Q3 2024.

• Total Adjusted Same Property NOI: Increased by 14.7% to $43.4 million in Q3 2024.

• Long-Term Care Segment NOI: Increased by $3.5 million due to higher revenue offset by inflationary expense increases.

• Retirement Segment NOI: Increased by $2.1 million due to improved occupancy and rental rate growth.

• Operating Funds from Operations (OFFO): Increased by 19% to $23.9 million.

• OFFO Per Share: Increased by 13.5% to $0.312.

• Adjusted Funds from Operations (AFFO): Increased by 3.8% to $20.4 million.

• AFFO Per Share: Decreased by 1.1% to $0.266 due to temporary dilution from equity issuance.

• Liquidity: Increased to $517 million at the end of Q3 2024.

• Debt-to-Adjusted EBITDA: Improved to 7 times from 8.3 times at the end of Q3 2023.

• Debt-to-Adjusted Gross Book Value: 42.3% at the end of Q3 2024.

• Unencumbered Assets: Approximately $1 billion.

• Equity Raised: $144 million at $15 per share in August.

• Unsecured Debentures Issued: $150 million at an interest rate of 4.436%.

• Same Property Occupancy in Retirement Segment: Increased by 250 basis points to 89.6% in Q3 2024.

• Expansion into Alberta: $182 million acquisition of four continuing care homes.

• Warning! GuruFocus has detected 10 Warning Signs with LWSCF.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sienna Senior Living Inc (LWSCF) reported a 14.7% year-over-year increase in total adjusted same property NOI, with significant growth in both long-term care and retirement segments.

• The company successfully raised $144 million in equity and issued $150 million in unsecured debentures, both of which were significantly oversubscribed, indicating strong investor interest.

• Occupancy in the retirement segment increased by 250 basis points year-over-year, reaching over 90% for the first time in over five years.

• Sienna Senior Living Inc (LWSCF) announced a strategic expansion into Alberta with the acquisition of a $182 million portfolio of four continuing care homes, enhancing its growth potential.

• The company has a strong financial position with substantial liquidity of $517 million and no major debt maturities until Q1 2026, providing flexibility for future growth initiatives.

Negative Points

• AFFO per share decreased by 1.1% due to temporary dilution from the recent equity issuance.

• The company faces ongoing challenges with staffing, which remains a significant issue in the senior living sector.

• Despite improvements, some retirement homes still have lower occupancy levels, impacting overall performance.

• The care component in retirement homes is compressing margins due to increased demand for services and labor costs.

• There is strong competition for acquisition assets, which could impact the company's ability to secure favorable deals.