Sienna Senior Living Completes Acquisition of 50% Ownership Interest in 11 Properties in Ontario and Saskatchewan
MARKHAM, Ontario, May 17, 2022 (GLOBE NEWSWIRE) — Sienna Senior Living Inc. (“Sienna” or the “Company“) (TSX:SIA) announced that it has finalized its previously announced acquisition of a 50% ownership interest in a portfolio of 11 seniors’ living assets in Ontario and Saskatchewan consisting of 1,048 high-quality, private-pay suites (the “Portfolio” or “Acquisition”). Sienna acquired the Portfolio in partnership with Sabra Health Care REIT, Inc. (“Sabra”), who is acquiring the other 50% interest, with Sienna as the manager of the Portfolio.
“We are adding quality residences to our retirement platform and in doing so, have seized a rare opportunity to enhance the growth prospects of our retirement operations, achieve immediate scale in Saskatchewan and expand our portfolio in key locations in Ontario,” said Nitin Jain, President and Chief Executive Officer of Sienna. “We are excited to welcome the residents, their families and over 800 team members at our new locations and look forward to offering them a compelling resident and team member experience and a purpose-driven culture.”
Sienna’s share of the purchase price for the Portfolio is $153.75 million. The Company expects the Acquisition to generate an approximate 6% unlevered yield in the first twelve months following closing of the transaction. As of April 30, 2022, the occupancy of the Portfolio was approximately 87.5%, excluding one property in lease-up that opened in 2019.
The Acquisition and related transaction costs were financed through a combination of: (i) net proceeds from the Company’s March 23, 2022 equity raise; ii) net proceeds from recent dispositions; iii) a one-time drawdown of $90 million on the acquisition term loan; and iv) the assumption of two CMHC-insured property-level mortgages at a weighted-average interest rate of 2.24%.
ABOUT SIENNA SENIOR LIVING
Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors’ living options, including independent living and assisted living under its Aspira retirement brand, 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
Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as “anticipate,” “continue,” “could,” “expect,” “may,” “will,” “estimate,” “believe,” “goals” or other similar words. These statements are based on the Company’s expectations, estimates, forecasts and projections and include, without limitation, statements with respect to the Company’s financial return expectations of the Acquisition.
These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.
FOR FURTHER INFORMATION, PLEASE CONTACT:
David Hung
Chief Financial Officer and Executive Vice President
(905) 489-0258
david.hung@siennaliving.ca
Nancy Webb
Senior Vice President, Public Affairs and Marketing
(905) 489-0788
nancy.webb@siennaliving.ca
