Earnings call transcript: Sienna Senior Living Q1 2025 sees strong revenue growth

Sienna Senior Living Inc. (SIA) reported a robust financial performance for the first quarter of 2025, exceeding revenue forecasts and showcasing significant growth across various segments. The company achieved a 12.1% year-over-year increase in total adjusted revenues, reaching $241.8 million, surpassing the forecasted $239.4 million. According to InvestingPro data, Sienna maintains a "GREAT" financial health score of 3.21/5 and offers an attractive 6.24% dividend yield, having maintained dividend payments for 16 consecutive years. Despite these positive results, Sienna’s stock saw a slight decline of 1.47% in after-hours trading, closing at $16.79, reflecting mixed investor sentiment.

Key Takeaways

• Revenue for Q1 2025 increased by 12.1% year-over-year to $241.8 million.
• Operating FFO rose by 27.5% to $24.7 million, indicating strong operational performance.
• The company ended the quarter with $445 million in liquidity, providing a solid financial foundation.
• Sienna’s stock price fell 1.47% following the earnings release, despite revenue exceeding expectations.

Company Performance

Sienna Senior Living demonstrated a robust start to 2025, with notable increases in revenue and net operating income (NOI) across its segments. The retirement segment, in particular, showed strong performance with a $2.9 million increase in NOI. The company’s focus on operational efficiency and strategic initiatives contributed to these positive results. In comparison to previous quarters, Sienna continues to capitalize on the growing demand for senior housing, positioning itself well within the industry.

Financial Highlights

• Revenue: $241.8 million, up 12.1% year-over-year
• Total adjusted same property NOI: $42.5 million, up 8.5%
• Operating FFO: $24.7 million, up 27.5%
• AFFO per share: $0.266, up 7.7%
• Liquidity: $445 million

Earnings vs. Forecast

Sienna’s actual revenue of $241.8 million surpassed the forecasted $239.4 million, marking a positive surprise of approximately 1%. This performance reflects the company’s ability to effectively manage its operations and capitalize on market opportunities, continuing a trend of exceeding expectations in recent quarters.

Market Reaction

Despite the positive earnings report, Sienna’s stock experienced a 1.47% decline in after-hours trading. The stock’s current price is $16.79, slightly below its 52-week high of $17.65. InvestingPro analysis indicates the stock generally trades with low volatility (Beta: 0.65) and is currently trading near its Fair Value. This decline may be attributed to broader market trends or investor concerns about future growth potential, despite the company’s strong financial results.

Outlook & Guidance

Looking ahead, Sienna has increased its 2025 Retirement NOI guidance to exceed 10%, reflecting confidence in continued growth. The company is on track to add nearly $600 million in assets by the third quarter of 2025, supported by an active acquisition strategy across key markets in Ontario, British Columbia, and Alberta. These strategic initiatives aim to strengthen Sienna’s market position and drive future performance. For deeper insights into Sienna’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top stocks with expert analysis and actionable intelligence.

Executive Commentary

CEO Nitin Jain emphasized the company’s resilience and growth potential, stating, "At a time of broader economic uncertainty, this Canadian senior living sector continues to demonstrate stability, resilience, and opportunity for growth." Jain also highlighted the accelerating demand for senior housing, coupled with a decline in new supply, as key factors supporting Sienna’s positive outlook.

Risks and Challenges

• Supply chain disruptions could impact construction and redevelopment projects.
• Market saturation in certain regions may limit growth opportunities.
• Economic uncertainties could affect consumer spending and occupancy rates.
• Regulatory changes in the healthcare sector might pose operational challenges.

Q&A

During the earnings call, analysts inquired about the potential for occupancy growth in new acquisitions, strategies for margin expansion, and the performance of the repositioning portfolio. Sienna’s management provided insights into their approach to enhancing operational efficiency and exploring future redevelopment opportunities.

Full transcript - Sienna Senior Living Inc (SIA) Q1 2025:

Conference Call Moderator: Ladies and gentlemen, welcome to Sienna Senior Living Inc. Q4 twenty twenty four Conference Call. Today’s call is hosted by Nitin Jain, President and Chief Executive Officer and David Hung, Chief Financial Officer of Sienna Senior Living Inc. Please be aware that certain statements or information discussed today are forward looking and actual results could differ materially.

The company does not undertake to update any forward looking statement or information. Please refer to the forward looking information and risk factors sections in the company’s public filings, including its most recent MD and A and AIF for more information. You will also find more fulsome discussion of the company’s results in its MD and A and financial statements for the period, which are posted on SEDAR plus and can be found on the company’s website, cianaliving.ca. Today’s call is being recorded and a replay will be available. Instructions for accessing the call are posted on the company’s website and the details are provided in the company’s news release.

The company has posted slides which accompany the host’s remarks on the company website under Events and Presentations. With that, I will now turn the call over to Mr. Jane. Please go ahead, Mr. Jane.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Thank you. Good morning, everyone, and thank you for joining us today. We had a great start to 2025. We maintain our growth momentum, which is reflected in our financial results. So far, we are also on track to add nearly $600,000,000 of assets through acquisitions and developments by the third quarter, and we see significant potential for future growth throughout the balance of the year.

Our increasing scale comes at a time when demand for senior living is accelerating and supply remains highly constrained. This positions us extremely well for continued growth. With respect to Sienna’s operating results, our key performance indicators continue to trend in a positive direction in the first quarter. Adjusted same property NOI increased by 16.7% in the Retirement segment and 2.2% in the Long Term Care segment. On Retirement, increasing occupancy and rental rate growth were the key drivers of the double digit increase.

Average same property occupancy was up two sixty basis points year over year and has reached 92.5% in the first quarter and we remain confident to reach a stabilized occupancy target of 95% by Q1 twenty twenty six. Our robust sales platform and focused marketing campaigns continue to generate strong interest in our residences. Our call center leads remain strong and our recent national open house had significant higher attendance and tours than in recent years. In addition, we remain focused on maintaining excellent relationships with healthcare partners in the local communities of our residences. On long term care, our fully occupied homes with growing waitlist added to the continued stability of this segment, which reinforces the strength of our operating platform.

Moving to Slide six, 2025 is shaping up to be the year of considerable growth through acquisitions and developments. By the third quarter, our platform will exceed 100 properties and we will not end there.

Unidentified Speaker, Sienna Senior Living Inc.: To date, we have closed $250,000,000 of acquisitions in British Columbia, Alberta and Ontario. And just yesterday announced an $85,000,000 acquisition of a Class A retirement residence in Ottawa with an anticipated closing date this summer.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: The residence is currently 93% occupied and we feel confident with our platform we will get it to stabilize occupancy of 95% within the next twelve months. The closing of our portfolio acquisition in Alberta at the beginning in April, we established platform in one of Canada’s fastest growing provinces. This acquisition of four properties has provided immediate scale and positions us well for continued growth in Alberta. Each acquisition is expected to be immediately accretive to Sienna’s AFFO per share and we remain very active in the acquisition market and see strong potential to create long term value as we continue to scale our business. On the development side, we are ahead of schedule to complete Sienna’s first two long term care redevelopment projects in North Bay and Brantford.

Both projects remain on budget and will be completed this summer. With no lease up risk, the redevelopments would immediately contribute to Sienna’s financial performance about opening. Each project is expected to grow Sienna’s AFFO per share by about 3%. At our Brantford location, we are also nearing the completion of a new 147 retirement residence. By developing a retirement residence next to our long term care redevelopment, we have enhanced the economic viability of this $140,000,000 project with an expected development yield of 8.5%.

Moving to our team members, investing in our team members and building a workforce that is fully aligned is fundamental to growth and scaling our operations. We are particularly proud of our share ownership program, which allows team members to participate in the growth and success of Sienna. Starting this year, we have expanded the program beyond this original one time award. Under Sienna’s new SOAR for service, team members will receive additional shares as they celebrate milestone work anniversaries working for the company. Programs like SOAR ensure a strong sense of ownership and shared purpose among our team members and have delivered clear results.

For two years in a row, we are able to reduce turnover by about 30, which has led to a significant reduction in the use of agency staff and year over year agency costs are down nearly 70%. With that, I’ll turn it over to David for an update on our financial results.

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Thank you, Nitin, and good morning, everyone. I will start on Slide nine for financial results. In my commentary, in accordance with our MD and A disclosure, I will make reference to our operating results excluding one time items in order to provide a clearer picture of Sienna’s underlying performance. In Q1 twenty twenty five, total adjusted revenues increased by 12.1% year over year to $241,800,000 This increase was largely due to occupancy and rental rate growth as well as increased care revenue in the retirement segment. Adding

Unidentified Speaker, Sienna Senior Living Inc.: to

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: the increase were the significant contributions, our long term care platform, including higher flow through funding for direct care and higher private accommodation revenues. Total adjusted same property NOI increased by 8.5% to $42,500,000 in Q1 twenty twenty five including by 16.7% in our Retirement segment and by 2.2 in the Long Term Care segment. In the Retirement segment, adjusted NOI increased by $2,900,000 in Q1 twenty twenty five compared to the prior year largely as a result of improved occupancy and rental rate growth. These improvements in addition to generating higher care revenue and maintaining a strict focus on operating expenses supported the year over year two ten basis point improvement of our same property operating margin. We expect the margin expansion to continue as we get closer to our 95% occupancy target and achieve additional efficiencies through scale.

In addition, we are progressing well with respect to our asset optimization initiative, which includes five assets in the company’s retirement portfolio that will benefit from a range of initiatives. These initiatives target a better market fit and include renovations, the change in suite mix, additional services or the alternative use of a property. Occupancy in our optimization portfolio increased by 500 basis points year over year adding to the strength of our Q1 results in the retirement segment. In the long term care segment, NOI increased by $05,000,000 and reflects the segment stability which is supported by fully occupied homes and growing waitlist. During Q1 twenty twenty five, operating funds from operations increased by 27.5% to $24,700,000 compared to last year, primarily due to higher NOI.

OFFO per share increased by 8.3% to $0.02 $87 in Q1 twenty twenty five. Adjusted funds from operations increased by 27.1% to $22,900,000 compared to the prior year. The increase was mainly due to higher OFFO and a decrease in maintenance capital expenditures offset by lower construction funding income. AFFO per share increased by 7.7% to $0.02 $66 in Q1 twenty twenty five. Our Q1 twenty twenty five AFFO payout ratio was 91%, a three ninety basis point improvement compared to Q1 twenty twenty four.

Excluding the impact of the February share offering, our payout ratio was 86% in Q1 twenty twenty five. Moving to Slide 10, throughout the first quarter, we further strengthened our financial position and balance sheet. We ended the quarter with $445,000,000 in liquidity, 1,100,000,000 of unencumbered assets with no major debt maturities until Q1 twenty twenty six. At the February, we successfully raised $144,000,000 in equity and we are on track to deploy our cash on hand into accretive acquisitions and developments. Yesterday, we announced the acquisition of Hazel Dean Gardens in Ottawa.

We will acquire this 172 suite retirement residence at a purchase price of $85,250,000 and added investment yield of 6.33% with additional upside through synergies. Hazel Dean is our second acquisition in the Ottawa region this year and will be acquired at a significant discount to replacement cost. Our expansion in Ottawa reflects our confidence in this market where our existing portfolio has shown an impressive performance in recent quarters. With that, I will turn the call back to Nitin for his closing remarks.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Thank you, David. I’ll start on Slide 11. The fundamentals in Canadian senior living remain exceptionally strong. Demand for senior housing continues to accelerate while new supply dropped below 1% of the total inventory in the past two years. And it is expected to remain below 2% for at least next five years.

In addition, an aging infrastructure further adds to the significant supply constraint. These trends not only make our assets more valuable, but they also make Canadian senior living an increasingly attractive sector for long term investments. Looking ahead, we expect same property NOI in our Retirement segment to benefit from continued occupancy and rental rate increases. We remain on track to reach a stabilized occupancy target of 95% by Q1 of twenty twenty six. Based on our strong first quarter results and outlook for the balance of the year, we have increased the guidance for Ciena’s twenty twenty five Retirement NOI segment target to exceed now 10%.

Ciena’s long term care portfolio is expected to benefit from the continued stability of this segment. The 2025 target for long term care is expected to be in the low single digits in line with inflation. In addition, we expect Sienna’s growth through acquisitions and development to continue. So far, we are on track to add nearly $600,000,000 of assets by Q3 and we see significant potential for additional growth during the balance of the year. At a time of broader economic uncertainty, this Canadian senior living sector continues to demonstrate stability, resilience and opportunity for growth.

Coupled with Sienna’s increasing scale and strong balance sheet, we have never been more confident about the opportunities ahead. On behalf of our entire team and our Board of Directors, I want to thank our shareholders and all of you on this call for your continued support. And with that, we’ll open it up for your questions.

Conference Call Moderator: Thank you. Your first question comes from the line of Lorne Kalmar with Desjardins. Please go ahead with your question, sir.

Lorne Kalmar, Analyst, Desjardins: Morning and congrats on another solid result here. Maybe just on the guidance side of things for the retirement homes. Was there perhaps an element of conservatism built in? Or in the last couple of months, have you guys really seen a change that warranted the bump in the guidance?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Good morning, Ron. That’s always the challenge when you provide guidance. You don’t want to undersell and you don’t want to oversell. So you’re always trying to find the right balance. When we started the year, we are making significant changes to our platform.

We wanted to we are trying to expand our margin and we’re seeing those results. So we wanted to make sure that our programs work before we start giving strengthening our guidance. And our Q1 results show that we are on track. So our same property NOI was around 17%. And now that is giving us confidence to put a little bit more optimism into our numbers, which is the 10% plus guidance.

Lorne Kalmar, Analyst, Desjardins: Okay. And then so you guys you said 17% this quarter. Is there any reason to believe you can’t repeat that over the balance of the year? Do you expect it to kind of trend down over the balance of the year?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: It’s too early to say that just yet. So we don’t want to give you guidance and not meet those. So I think at this stage, we’ll stick to it will be 10% plus. And you’re right, 17% is 10% plus, but so is 11%. So I think at this stage, it’s a bit early to commit to an offer.

Lorne Kalmar, Analyst, Desjardins: Fair enough. Better than under promise. And then maybe just last one, I think this time last year, you guys had the update around the LTC funding for Ontario. Just wondering if there’s any update to be provided there or if you guys are still waiting.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: We still the budget is supposed to come out in the next two weeks and that’s when we expect the funding announcement to come out as well. Obviously, one knows what government will decide, but the sector expects the funding should grow in line with inflation, not only is needed for the existing homes, but it is much needed to continue to grow long term care as there’s the waitlist only grows to continue.

Lorne Kalmar, Analyst, Desjardins: Okay. Thank you very much.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Thank you.

Conference Call Moderator: Your next question comes from the line of Pammi Bir with RBC Capital Markets. Please go ahead with your question.

Pammi Bir, Analyst, RBC Capital Markets: Thanks. Good morning. Just Nitin, just coming back to the comments you just made on changes in the platform. Can you maybe just expand on that? You’re certainly seeing momentum, but what are some of the key pieces that are driving perhaps the upsized outlook?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Sure, Pammi. One of the things and that was a common question last year, we have seen we saw significant uptick in occupancy and our view is for every occupancy change, it’s $2,000,000 in revenue, nearly 75% goes to NOI, but we were not seeing that last year. And we have done a few things. One is just looking at operating platforms efficiencies, we have done that or in the process of completing it. The second is care.

Residents in our portfolio, which is more care focused. So we’ve not so the good part is you don’t see a lot of slowdown with economic uncertainty, but people do need more care. And the way we were charging for that care, the way we were structured for it need some work. I would say we are in the early stages of fixing that and we would continue to see that momentum going forward.

Pammi Bir, Analyst, RBC Capital Markets: Okay. That’s helpful. And then just on the acquisition pipeline, it sounds like it’s active still. In terms of maybe what’s under review beyond the deal that you just announced, but can you quantify that in terms of what else is under review? And what sort of potential do you see in terms of total acquisitions for the year?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: I will be a bit hesitant giving those pipeline because a lot of times there are people who are just getting the tires, their properties are for sale, but it’s not really for sale. Having said so, the pipeline continues to be very robust. In Q1, we guided that we have a pipeline of 150,000,000 to two fifty million Since then, we have announced close to $150,000,000 of acquisitions already. So I think just to maybe at a 10,000 feet level, would say that pipeline continues to be in that quantum.

Pammi Bir, Analyst, RBC Capital Markets: Okay. And then maybe just stepping back, big picture here, as you work towards driving a stronger valuation, is there any shift in your thinking between the long term mix of the business between retirement and long term care or just are you comfortable keeping it where it is or toward that fifty-fifty target?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: I mean, we’re not really fussed about a fifty-fifty. I think what we are focused on is making continue to be diversified. And doing the acquisitions we have done so far reflects that doing $250,000,000 of acquisition in all three provinces, it is possible because we’re growing in all those three in both segments of the business, that’s Second in the Western Provinces, there are quite a few more campuses, which has the benefit of both long term care and retirement. And as we are seeing ourselves in Brantford, where we’re building both, it is nearly impossible to get 8.5% yield in our retirement home, but we’re getting that because it’s combined with long term care. And the third part is, I think there is still a big valuation gap in the private markets and public markets for long term care.

We bought a long term care home in Ontario for around 6.75 percent cap rate and it competitive. We were not the highest bid. And we bought four continuing care homes called a long term care light in Alberta at around 6.5% cap rate and it was competitive and we were not the highest price. Because the business has stabilized significantly, all signals from government is that funding will continue to grow with inflation and staffing has gone better significantly. So I do think that business fundamentals has changed all for the better, but somehow it is not reflected in the public markets yet, but we remain optimistic and confident that that would happen.

Pammi Bir, Analyst, RBC Capital Markets: Okay. I will turn it back. Thank you.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Thank you.

Conference Call Moderator: Your next question is from the line of Jonathan Kelcher with TD Cowen. Please go ahead.

Lorne Kalmar, Analyst, Desjardins: Thanks. Just continuing on the acquisition and pipeline, which of your markets are you seeing the most opportunities? I guess secondly, what is the seller profile look like?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: So I think all these markets Ontario, BC, Alberta, we continue to be active. We see opportunities in all of those markets, more opportunities on the retirement side and some opportunities on the campus side. So we’ll continue to focus on that. I would expect a big part of our long term care growth is going to come through acquisitions which is a pretty unique time in Ontario considering that you have the inflationary growth and then you can grow nearly AFFO about 3% per project which is unique and I think that should stay with us for the next five years. The kind of sellers, Jonathan, is really similar to what has been in the past.

So it might be companies who are focusing on one part of the business versus another. So we’ve saw that when we bought this pre portfolio two years back, we saw that with another smaller regional senior housing where they were focused on retirement and wanted to exit from a long term care side. The properties we bought in Alberta were developers where their goal is to build them and sell it at stabilized, which works perfectly for us because our development dollars are going to be tied to Ontario. So it’s really continues to be a mixture of all of those kind of sellers and we remain active in all those three provinces and expect to do so for the balance of the year and next year.

Lorne Kalmar, Analyst, Desjardins: Okay, that’s helpful. And Hazel Dean, that’s stable, like what’s the occupancy on that? I’m assuming it’s stabilized.

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Yes, it is, Jonathan. It’s at 93%.

Lorne Kalmar, Analyst, Desjardins: Okay. And then just on the margins, two ten basis point improvement on the same property. Obviously, that’s I’m guessing that’s part of your confidence in increasing your guidance. But if we think about the repositioning portfolio, do you think margin expansion there could be a little bit higher than the stabilized portfolio?

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Our target, Jonathan, is to get the repositioning portfolio to be same or similar as our same property portfolio. So we’re currently at around 38% right now on same property. We would anticipate, that the repositioning portfolio can get there.

Lorne Kalmar, Analyst, Desjardins: Over and what are you now on the repositioning?

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Currently at 26% in Q1.

Lorne Kalmar, Analyst, Desjardins: Okay. And I’m assuming that’s a multiyear goal, not for 2026?

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Yes. We would see it somewhere between the next, we’ll take twelve to eighteen months. Some of these properties take time, whether it be through renovation, changes in service offering or whatnot. It does take a little bit of time. That being said, we are seeing some very good momentum.

Our margins, for example, this quarter were at 26%, a year ago they were at 22%. So we’re seeing good progress in that portfolio.

Lorne Kalmar, Analyst, Desjardins: Okay. So it should all else equal, it should grow a little bit faster or faster than maybe not even a little bit, but faster than the stabilized?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: We would anticipate that, yes. Okay, thanks. I’ll And we saw that this quarter as well. I mean, that had much bigger growth than our stabilized portfolio and that’s why we separated them out of our same property NOI.

Lorne Kalmar, Analyst, Desjardins: Yes, makes sense. Thanks. I’ll turn it back.

Conference Call Moderator: Your next question comes from the line of Himanshu Gupta with Scotiabank. Please go ahead.

Himanshu Gupta, Analyst, Scotiabank: You and good morning. So just on the Ottawa acquisition, Hazeldin is 93%, I think, occupancy. How do you expect occupancy ramp up here? And is there any near term upside on margins as well?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: I would say the upside in there would be some upside in margin from a synergy perspective, Imanshu, there would also we see a path of 95% from 93% with our operating platform. So this was very good developers and I think they’ve done a great job of stabilizing that home, but it is one home. So given with our call center and our marketing and sales, we do expect our occupancy to be closer to 95. We have multiple other homes in that area and those occupancies are higher. The Ottawa market has changed for the better because people have finally stopped building there after many, many years and now demand is catching up to the supply we had of retirement homes there.

So I think given all of those, we do see a path to 95%, call it in the next twelve months.

Himanshu Gupta, Analyst, Scotiabank: Got it. And I mean, you mentioned multiple homes near to this property and there are some synergies. So synergies are mostly on the cost side or revenue side

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: They’re mostly on cost side. I mean that’s what when you think about procurement, food cost, medical supplies, labor, those are all synergies we can add operational efficiency and how we staff for the homes that’s one. But there when you have multiple homes and they’re not next to each other but they’re far from each other, you can actually sell them. We see that in Kingston where we have four retirement homes and for the lack of better word there are four different levels. For example, one is independent living and other one has memory care.

So if someone is looking for memory care, we set that’s the top of the place to recommend is our own home. So we do see some synergies and revenue as well.

Himanshu Gupta, Analyst, Scotiabank: Got it. Okay. And then if I look at the acquisition price on a dollar per suite basis, I mean, Hazardine looks a bit higher than Wild Pine. I mean, is there a reason like, I mean, are they bigger units better than Profile or what’s causing that?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Absolutely. And I think your answer is in your question, there’s exactly those two things. The suite sizes are bigger and because of suite sizes being bigger, it also has a higher rent. It has a bigger mix of assisted living memory care. The common areas are bigger and obviously that gets into the run.

So that’s it is very reflective of the level of retirement home versus Wildpine.

Himanshu Gupta, Analyst, Scotiabank: Okay, okay. Fair enough. Thank you. Thank you for that. Shifting gears here on NTC NOI growth of 2.2% in Q1, obviously excluding one timers, fair to say this could be the run rate for the full year?

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: That’s right. We anticipate for 2025 that LTC will grow in the low single digit range. So the 2.2% is fairly representative of what we could see through the rest of the year. Again, the low single digit range.

Himanshu Gupta, Analyst, Scotiabank: Fair enough. Last question is on retirement home margins and I know a bit of discussion already. So hundred to 50 basis for margin expansion expectation. What other I mean, like, agency staffing is already down, like, 70%. I mean, you’ve done a lot of progress there.

What other expense or cost items do you think, you know, there is, like further scope to bring it down?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: I would just I would mention what I said already. We saw a significant increase in occupancy last year, but we did not see appropriate levels of margin expansion. So we are working on those. Care is one of them, optimizing our staff to making sure that we’re not over staffing and it is coming at the right shift. That would be second.

How do we do sales and marketing, that’s third, there’s some synergy opportunities for cost there. So it’ll be a combination of all of that. And again, we feel comfortable with that 101 hundred and 50 range so far good results on the work that the team has done.

Himanshu Gupta, Analyst, Scotiabank: Sure. Thank you, Nitin and David. I’ll turn it back. Thank you.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Thank you.

Conference Call Moderator: Your next question comes from the line of Giuliano Thornhill with National Bank. Please go ahead.

Unidentified Speaker, Sienna Senior Living Inc.: Hey guys, good morning. Just a few for me. I’m just wondering how much in remaining spend there is for your current products under construction?

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Yes. So our budget for the three projects were $300,000,000 To date, we’ve spent about 58% of that, so around $175,000,000 And

Unidentified Speaker, Sienna Senior Living Inc.: I know you guys mentioned that the Class A cap rates for LTC, they’re kind of tightened that low fixed areas, what you mentioned earlier. How what’s demand like for the Class C units? And like how is that being underwritten?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: I mean, we haven’t really bought any Class C homes, Julian. So I think most of them, they would trade, it’s a combination of free cash flow for the next ten, fifteen years, value of land and it could it really varies. Like in our case, majority for C Homes, which are not developed now are in GTA. In some cases with significant land value, we have a property in St. George Street, where the land value would be close to $70,000,000 So it really depends where those C Homes are.

Unidentified Speaker, Sienna Senior Living Inc.: Right. And then with your couple of LTC projects being completed soon, what are the kind of key inputs that you’re looking for when greenlighting the next couple?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: So we already started our project in Cedarville, Keswick, So that project is already underway. We have probably another couple of projects ready to go. In the budget, we expect to see you, let’s see what comes out in the construction funding, one of those projects in the GTA, which there has been a long time to get the appropriate construction funding. So we would be ready to start construction, but obviously we will do that if it’s financially viable similar in the range of what we see in North Bay and Brantford. So it’s a bit of a we are ready with drawings and ready to go on ground, but the financial viability still has to get proven out.

Unidentified Speaker, Sienna Senior Living Inc.: Okay. Thanks. I’ll turn it back.

Conference Call Moderator: Your next question comes from the line of Tom Callahan with BMO Capital Markets.

Tom Callahan, Analyst, BMO Capital Markets: Thanks. Good morning, guys. Maybe just two quick ones for me. Appreciate all commentary on the retirement outlook and specifically margins. But maybe just one on that or sticking with that theme, just trying to get a sense of the trajectory over the balance of the year.

Was there anything non recurring or kind of one off either this Q1 or last year that helped drive the very strong performance in Q1?

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: Not really. Think from a balance perspective, we ended the year at around 37.3%. So I would take the total margin percent we expect is the 100 basis to 150 basis points on top of it. So this 38.1% is pretty much in range for that. So I think that nothing abnormal and all the one time items as David said, we stripped them out because we really wanted to compare apples to apples with the growth.

Tom Callahan, Analyst, BMO Capital Markets: Okay. Thanks for that. And then just one other one on the repositioning portfolio, you talked a bit about it, but I think if I look in the disclosure there occupancy of 80% and I think that’s up from 76%, which you noted in Q4. Are there any kind of key drivers there? I’m guessing it still might be a little early for the repositioning programs to be driving this, but just interested in any color there?

David Hung, Chief Financial Officer, Sienna Senior Living Inc.: Yes. We’re we continue to be active in this particular portfolio. So we’ve been doing renovation repositioning of some of the suites and what we’ve seen is that some of that has started taking traction at this point. So that has definitely contributed to the growth in occupancy in that portfolio.

Tom Callahan, Analyst, BMO Capital Markets: Okay. Thanks guys. Appreciate the color. I’ll pass it back.

Conference Call Moderator: There are no other questions at this time. I will now turn the call back over to you guys for closing remarks, please.

Nitin Jain, President and Chief Executive Officer, Sienna Senior Living Inc.: I just want to thank everyone for your time and for your questions and look forward to speaking to you in the next quarter.

Conference Call Moderator: Ladies and gentlemen, this does conclude today’s call. You may now disconnect.

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