MARKHAM, Ontario, March 11, 2022 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. ("Sienna" or the "Company") (TSX:SIA) announced today that it has entered into an agreement to acquire a 50% ownership interest in a retirement residence consisting of 186 high-quality, private-pay suites in Saskatoon, Saskatchewan (“The Village at Stonebridge” or “Stonebridge”). Sienna will acquire the asset in partnership with Sabra Health Care REIT, Inc. (“Sabra”), who is acquiring the other 50% interest of the asset, with Sienna acting as the manager of the property.
“Over the past month, we have assembled an impressive portfolio which will expand Sienna’s asset base in new and growing markets,” said Nitin Jain, President and CEO of Sienna Senior Living. “With the acquisition of one of the most desirable retirement residences in Saskatoon, we will have a sizeable presence in this market and a substantial platform in the Province of Saskatchewan. We believe that with this transaction we will further increase the scale and depth of our operating platform, providing more opportunities to add shareholder value.”
Built in 2016 with luxury amenities and a contemporary design, The Village at Stonebridge is one of the most coveted retirement residences in Saskatoon, consisting of 159 independent living (“IL”) suites and 27 assisted living ("AL") suites. This property will be complementary to Sienna’s previously announced acquisition of four other retirement residences in Saskatchewan as part of its joint venture with Sabra, and enhances Sienna's scale and leadership in the province.
Sienna's share of the purchase price for Stonebridge is approximately $36 million, and the Company expects the acquisition to generate an approximate 6% unlevered yield in the first twelve months following closing of the transaction. The Company also expects the contributions of the acquisition to be accretive to Sienna's Operating Funds From Operations ("OFFO") and Adjusted Funds From Operations ("AFFO") per common share on a leverage neutral basis. Completion of the acquisition is subject to customary closing conditions and regulatory approvals, with closing of the transaction expected to occur in late Q2 2022.
The purchase price for Stonebridge and related transaction costs are being financed through a combination of: (i) net proceeds of the Company’s recently announced equity offering; (ii) proceeds from the previously announced dispositions of Rideau Retirement Residence and Camilla Care Community; and (iii) draws on the Company’s existing credit facilities.
ABOUT SIENNA SENIOR LIVING
Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors' living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna's approximately 12,000 employees are passionate about helping residents live fully every day. For more information, please visit www.siennaliving.ca.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information based on management’s current expectations, estimates and projections about the future results, performance, achievements, prospects or opportunities for Sienna. Forward-looking statements include: the successful closing of the acquisition and the timing thereof; the expected benefits of the acquisition to Sienna shareholders, including that the acquisition is anticipated to be accretive to the Company’s OFFO and AFFO per common share; expected future growth; the financing of the acquisition through proceeds from the equity offering, dispositions or draws on the Company's existing credit facilities; and the anticipated closing date of the acquisition. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements.
The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. Material factors or assumptions that were applied to drawing a conclusion or making an estimate set out in forward-looking statements include: the views of management of Sienna regarding current and anticipated market conditions; expected government priorities and spending; absence of material changes to government and environmental regulations affecting Sienna’s operations; management’s views as to demographic trends; Sienna’s ability to maintain good relationships with employees; the successful completion of the acquisition and the financing thereof, and the financial and operating attributes of Sienna and the acquisition as at the date hereof.
Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of Sienna as at the date of this news release and speak only as at the date of this news release. Sienna does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
There can be no assurance that forward-looking information will prove to be accurate, as actual results could differ materially from those expected, estimated or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are more fully described under “Risk Factors” in the short form prospectus, in the "Risk Factors" section of Sienna’s most recent management’s discussion and analysis, and in materials filed with the securities regulatory authorities in Canada from time to time, including, but not limited to, the Company’s most recent annual information form.
NON-IFRS MEASURES
Certain terms used in this news release, such as OFFO per common share and AFFO per common, are not measures defined under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS. OFFO and AFFO should not be construed as alternatives to “net income (loss) from continuing operations” or “cash flow from operating activities” determined in accordance with IFRS as indicators of the Company’s performance. The Company’s method of calculating OFFO and AFFO may differ from other issuers’ methods and accordingly, these measures may not be comparable to measures used by other issuers. The Company believes that OFFO is useful in the assessment of its operating performance, and AFFO is a relevant measure of its ability to earn cash and pay dividends on its common shares. The definitions of these non-IFRS measures and an example of the reconciliation of OFFO and AFFO to the most directly comparable IFRS measure are provided in the Company’s most recent management’s discussion and analysis.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Karen Hon
Chief Financial Officer and Senior Vice President
(905) 489-0254
karen.hon@siennaliving.ca
Nancy Webb
Senior Vice President, Public Affairs and Marketing
(905) 489-0788
nancy.webb@siennaliving.ca
