Sienna Senior Living Inc.

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. Operating funds from operations increased 24% to $34.2 million, adjusted funds from operations increased 19.8% to $27.9 million, OFFO per share rose 7.5%, and AFFO per share rose 3.9%. The Q4 AFFO payout ratio improved to 80.7% from 83.1% a year ago. 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%, respectively, or 5.8% and 4.7% per share. Sienna ended 2025 with over $500 million in liquidity, $1.5 billion of unencumbered assets, no major debt maturities until 2027, and had $250 million of unsecured debentures issued in December alongside repayment of a $175 million debenture. In 2026 guidance, management expects same-property NOI growth in excess of 10% in Retirement and low-single-digit growth in Long-Term Care, with operating expenses rising roughly in line with inflation.

Nitin Jain framed 2025 as a year of long-term value creation, emphasizing scale, operating momentum and balance-sheet strength. He said Sienna added over $800 million of assets, reached strong organic growth for the 12th consecutive quarter, expanded the workforce by about 2,000 people, and is positioned for a multiyear growth phase. He was upbeat about Retirement occupancy, the optimization portfolio, and long-term demand from Canadian seniors, while stressing disciplined execution and selective growth.

David Hung focused on the financial outperformance and capital structure. 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 a payout ratio of 80.7%, and noted the Retirement same-property operating margin improved by 300 basis points. He also highlighted over $500 million of liquidity, $1.5 billion of unencumbered assets, the $250 million debenture issuance, repayment of the $175 million maturity, and the renewal of the ATM for another $150 million of share issuance capacity.

Analysts focused on what underpins the 2026 Retirement NOI target, and management said it comes from rental growth, care revenue growth, and some further occupancy improvement, with rental growth expected to stay around 4%. There was also discussion of the optimization portfolio, where management said margins were around 24% in Q4 and should move back toward same-property margins over the medium term, though no specific timeline was given. Questions on Glen Rouge centered on funding, bed count, and yield; management said the $250 million project would be financed with a mix of debt sources, is expected to deliver a 7.5% to 8% yield, and uses existing land at the site.