Q2 2024 Sienna Senior Living Inc Earnings Call Transcript
Key Points
- Sienna Senior Living Inc (LWSCF) achieved a year-over-year increase in total same-property NOI by 18.5%, reaching $46.1 million.
- Occupancy rates in retirement homes improved to 88.6%, with further growth to 89% in July, marking the highest monthly occupancy rate in over five years.
- The company saw a significant increase in investor interest, driven by the favorable demographics of an aging population and limited new supply.
- Sienna Senior Living Inc (LWSCF) successfully reduced agency staffing costs by one-third, from $6 million in Q2 2023 to $4 million in Q2 2024.
- The company maintained ample liquidity with $297 million at the end of Q2 2024 and extended the weighted average term to maturity of its debt to 5.5 years.
- Despite improvements, some retirement homes still have lower occupancy rates, with a handful of homes below 80% occupancy.
- The company faces challenges in maintaining and growing margins in the retirement segment due to increased care expenses and marketing spend.
- There is uncertainty regarding the sustainability of recent financial improvements, as one quarter's performance does not constitute a trend.
- Sienna Senior Living Inc (LWSCF) has not made significant acquisitions in the past two years, focusing instead on development projects.
- The company’s debt to adjusted EBITDA ratio remains relatively high at 6.8x, although it has improved from 8x in the previous year.
Ladies and gentlemen, welcome to Sienna Senior Living Inc.'s Q2 2024 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 section of the company's public filings, including in its most recent MD&A and AIF, for more information. You will also find a more fulsome discussion of the company's results in its MD&A and financial statements for the period, which are posted on SEDAR+ and can be found on the company's website, siennaliving.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
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