Sienna Senior Living Inc.

In Q4 2025, revenue on a proportionate basis increased 14.2% year over year to $278.4 million. Same-property NOI increased 10.1% to $47.4 million, including 15.4% growth in Retirement and 5.6% growth in Long-Term Care. Retirement same-property operating margin improved by 300 basis points, and operating FFO rose 24% to $34.2 million while adjusted FFO increased 19.8% to $27.9 million. On a per-share basis, OFFO and AFFO increased 7.5% and 3.9%, respectively, and the AFFO payout ratio improved to 80.7% from 83.1% a year earlier. For full-year 2025, same-property NOI grew 14.3% in Retirement and 4.8% in Long-Term Care, while OFFO and AFFO increased 27.1% and 25.7%, or 5.8% and 4.7% per share. Management guided for 2026 same-property NOI growth in excess of 10% in Retirement and low single digits in Long-Term Care, with operating expenses expected to grow in line with inflation.

Nitin Jain framed 2025 as a year of long-term value creation, highlighting the addition of over $800 million of assets, the 12th straight quarter of organic growth, and the expansion of the workforce by about 2,000 people. He emphasized that rising occupancy, rent growth, and care revenue are supporting Retirement, while Long-Term Care benefits from full homes, wait lists, private accommodations, and government funding. His tone was confident and constructive, repeatedly pointing to a multiyear growth phase supported by demographics, limited supply, and Sienna’s broader platform.

David Hung focused on the financial momentum and balance-sheet strength. He cited Q4 revenue of $278.4 million, same-property NOI of $47.4 million, OFFO of $34.2 million, AFFO of $27.9 million, and an AFFO payout ratio of 80.7%. He also noted over $500 million of liquidity, $1.5 billion of unencumbered assets, the issuance of $250 million of unsecured debentures in December, repayment of a $175 million debenture, and the full deployment of the ATM for about $101 million of gross proceeds in Q4, followed by a new $150 million ATM renewal. He said cash taxes benefited from the December acquisition timing and that 2026 operating expenses should grow roughly in line with inflation.

Analysts pressed on what supports the >10% Retirement NOI outlook, and management said it is a mix of 4% range rental growth, care revenue gains, and some additional occupancy upside, though 95% occupancy is already an unusual level for the portfolio. Questions on the optimization portfolio drew the answer that margins were around 24% in Q4 and should move back toward same-property margins over the medium term, with assets being moved in and out as renovations are completed. On Glen Rouge, management clarified it will combine and replace existing homes on the site, add new beds, be financed with debt, and is expected to deliver roughly a 7.5% to 8% yield. Analysts also asked about acquisition accretion, cash taxes, and supply; management said deals are underwritten debt-neutrally, cash taxes should sit between 2024 and 2025 levels adjusted for acquisition activity, and new supply is not arriving quickly enough to offset demographic demand.