Sienna Senior Living Inc. · TSX:SIA
Sienna Senior Living — Investor Presentation (August 2017)
26 slides from Sienna Senior Living's investor presentation, August 2017
Slide 1: Investor Presentation
Investor Presentation August 2017
Slide 2: Cautionary Note
Cautionary Note Certain information in this presentation and oral answers to questions may contain forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material factors or assumptions were appli
Slide 3: Business Overview
Business Overview 58 High Quality Seniors Living Residences1 in key markets of Ontario and British Columbia, 8,459 beds/suites Retirement Baltic Long Term Care 15 Residences 8 Communities 35 Care Communities 1,591 Suites 1,135 Beds/Suites 5,733 Beds 1,781 Private Pay Suites 6,678 Funded beds 1,666 3
Slide 4: Business Overview
Business Overview One of Canada’s leading providers of senior’s living 45 Years of Operations, with over 7 5-Year annualized Revenue Years as a Public Company Growth of ~11.4%1 Sienna Senior Living • TSX: SIA , TSX: SIA.DB • 2016 Total Revenue2: ~$497.9M Inc. has had • Shares outstanding: ~46M • 201
Slide 5: Investment Highlights
Investment Highlights Strong financial position with an A (low) bond rating High Quality Portfolio in key markets Why Robust development pipeline of excess land opportunities for Sienna? intensification Sound industry fundamentals with barriers to entry Strong seniors living operating platform 5
Slide 6: Sienna Senior Living
Sienna Senior Living Vision Mission Values To awaken our Respect communities to the To help you live fully, positive every day Passion possibilities of life’s Teamwork next chapters Responsibility Growth 6
Slide 7: Portfolio Transformation
Portfolio Transformation Initial Public Offering (2010) Present (2017) 4,341 FUNDED BEDS 6,678 FUNDED BEDS 1,781 PRIVATE PAY BEDS/SUITES 82 PRIVATE PAY SUITES Total Beds/Suites: 4,423 Total Beds/Suites 8,459 Increase in private pay Total beds/suites beds/suites mix from nearly doubled 1.8% to 21% 7
Slide 8: Performance Since IPO (March 2010)
Performance Since IPO (March 2010) Increased Increased Doubled the market cap by EBITDA by enterprise value to 300% 200% $1.5B OVER OVER OVER Total Shareholder Return* 183% 8 *Total Shareholder Return as of August 10, 2017.
Slide 9: Demand for Seniors Living
Demand for Seniors Living Favourable Demographics Canadians over the age of 75 Age 75 to 84 Age 85+ 7,000 6,000 33% 5,000 Population (000’s) 30% 4,000 28% 3,000 27% 67% 30% 70% 2,000 30% 72% 73% 1,000 70% 70% 0 2016 2020 2025 2030 2035 2040 Source: CANSIM table 052-0005 • Ontario LTC waitlist of ~25
Slide 10: Strategic Priorities
Strategic Priorities Strong Balance Sheet Strong Operating Maximizing Platform Portfolio Value Residents & Team Members 10
Slide 11: Operating Performance: Retirement Results
Operating Performance Retirement Results Net Operating Income ($M) As at Occupancy ~116% ~11.8 % Occupancy growth 94.5% 94.7% growth since 2013 through organic $26,078 since 2013 93.6% growth and acquisition activities 86.8% $19,675 82.9% $17,416 $12,076 2013 2014 2015 2016 2013 2014 2015 2016 Q2 20
Slide 12: Operating Performance: Long Term Care Results
Operating Performance Long Term Care Results Net Operating Income ($M) Average Occupancy ~35% growth since 2013 through organic Consistent High Occupancy Levels growth and acquisition activities $63,191 $64,295 $64,860 98.9% 98.7% 98.7% 98.8% 98.8% $48,082 2013 2014 2015 2016 2013 2014 2015 2016 Q2
Slide 13: Financial Overview
Financial Overview
Slide 14: Financial Summary
Financial Summary Consolidated 2.8% 3.4% Q2 2017 $23.4M Q2 2017 YTD $45.4M Same Property NOI Q2 2016 $22.7M Q2 2016 YTD $43.9M Retirement Residences 10.1% 10.1% Q2 2017 $6.8M Q2 2017 YTD $13.2M Same Property NOI Q2 2016 $6.1M Q2 2016 YTD $12.1M Long Term Care Same Property NOI Q2 2017 $16.6M Q2 2016
Slide 15: Financial Summary
Financial Summary Diluted Operating Funds 7.0% Q2 2017 YTD $0.63 10.0% Q2 2017 $0.33 from Operations per share Q2 2016 $0.30 Q2 2016 YTD $0.59 Diluted Adjusted Funds 4.5% 2.4% Q2 2017 $0.37 Q2 2017 YTD $0.72 from Operations per share Q2 2016 YTD $0.70 Q2 2016 $0.35 Strong Year Over Year Performance
Slide 16: Financial Position
Financial Position OFFO Per Share AFFO Per Share ~24 % ~17 % per share growth $1.41 per share growth since 2013 $1.26 since 2013 $1.31 $1.29 $1.12 $1.15 $1.21 $1.02 2013 2014 2015 2016 2013 2014 2015 2016 Payout Ratio 72.4% 72.8% 66.2% 61.6% 2013 2014 2015 2016 16 Current Annual Dividend of $0.90, R
Slide 17: Financial Position
Financial Position Debt to 200bps Q2 2017 51.5% Excluding Convertible Debentures Gross Book Value Q2 2016 53.5% the Q2 2017 Debt to GBV is 48.4% Debt to 0.3x 0.3x Q2 2017 7.0x Q2 2017 YTD 7.0x EBITDA Ratio Q2 2016 7.3x Q2 2016 YTD 7.3x Interest 0.3x 0.3x Q2 2017 3.8x Q2 2017 YTD 3.7x Coverage Ratio
Slide 18: Debt Overview
Debt Overview Debt Composition Debt Overview As of June 30, 2017 Focus on building a debt maturity profile over time: • Weighted Average Term: 5.2 Years • Debt Ladder • Weighted Average Rate: 3.80% • Reduce Leverage 800,000 400,000 700,000 350,000 600,000 300,000 500,000 250,000 400,000 200,000 300,
Slide 19: Growth Strategy
Growth Strategy
Slide 20: Development Pipeline
Development Pipeline Expansion Opportunities Ontario LTC Enhanced Renewal Plan • Excess land well positioned for future expansion • Sienna positioned to redevelop its 2,239 Class B & C portfolio to create senior living campuses Property Location Kawartha Lakes Bobcaygeon ON • Senior living campuses
Slide 21: Development – Senior Living Campus
Development – Senior Living Campus Planned Development PHASE ONE PHASE TWO (Years 1 to 5) (Years 6 to 10) TOTAL Number of 1,000 LTC + 1,239 LTC + 550 new 2,239 LTC + 1,000 new Redeveloped 450 new RET suites RET suites RET suites Suites Cost $290M to $360M $350M to $440M $640M to $800M Part of the lo
Slide 22: Development – Senior Living Campus: Illustrative Case Study
Development – Senior Living Campus Illustrative Case Study – Project A Overview • Redevelop 160 Class C beds to 160 Class A beds on new site • Add ~ 100 retirement suites on same site as the long term care beds to create a senior living campus COST Long Term Retirement TOTAL FINANCIALS Long Term Ret
Slide 23: Recent Transactions: 2016
Recent Transactions: 2016 Portfolio Expansion Nicola Lodge British Columbia (BC) Port Coquitlam, BC 8 seniors residences 256 Beds 984 beds/suites 40% interest for purchase price of ~$28 $255M purchase price million ~7.0% portfolio cap rate 7.0% cap rate 23
Slide 24: Recent Transactions: 2017
Recent Transactions: 2017 Kawartha Lakes Retirement Residence Glenmore Lodge Rosewood Retirement Residence Bobcaygeon, ON Kelowna, BC Kingston, ON 118 beds 68 retirement suites 94 retirement suites 61% interest for purchase price $10M purchase price $21M purchase price of $20 million 7.25% cap rate
Slide 25: Contact Information
Contact Information Sienna Senior Living Inc. 302 Town Centre Blvd, Suite 300 Markham, ON L3R 0E8 t: (905) 477-4006 e:[email protected] siennaliving.ca Lois Cormack President & Chief Executive Officer t: (905) 415-7612 e: [email protected] Nitin Jain Chief Financial Officer & Chie
Slide 26: The warmth of human connection
The warmth of human connection
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