Sienna Senior Living Inc. · TSX:SIA
Sienna Senior Living — Investor Presentation (May 2016)
32 slides from Sienna Senior Living's investor presentation, May 2016
Slide 1: Investor Presentation May 2016
Investor Presentation May 2016
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 Canada’s 5th largest owner and operator of seniors housing • TSX: SIA , TSX: SIA.DB • Market Capitalization: ~$610M • Enterprise Value: ~$1.2B • 44 Years of Operations • Recent close: $16.95 (May 12, 2016) • Dividend: $0.90/year • Shares outstanding: 36.5M • 52-week low/high: $14.2
Slide 4: Business Overview: Portfolio Composition
Business Overview Portfolio Composition – Beds/Suites NOI Contribution* Private 2,267 Retirement 33% Retirement LTC Semi-Private LTC Long Term Retirement 1,206 5,733 857 76% 24% 17% 83% 12% Care Basic & Other 2,609 38% *Fiscal 2015; Continuing Operations Well Positioned for Organic and External Grow
Slide 5: Performance Since IPO (March 2010)
Performance Since IPO (March 2010) Increased Increased Doubled the market cap by EBITDA by enterprise value to 200% 100% $1.2B OVER OVER OVER Total Shareholder Return 155.5% 5 *All statements above are as of March 31, 2016
Slide 6: Investment Highlights
Investment Highlights Sound Industry Fundamentals with Barriers to Entry Diversified Portfolio Why Strong Financial Position with an A (Low) Bond Rating Sienna? Strong Seniors Living Operating Platform Well-positioned for Organic and External Growth 6
Slide 7: Our Story
Our Story 2010 2011 2012 2013 2014 2015 2016 $120M $254M $322M $255M $190M $95M “Sienna” Acquisition of Acquisition of Issuance of Acquisition of Initial Public Acquisition of Branding 3 Retirement 4 Retirement 3.474% Senior 2 Retirement Offering 2 Retirement Residences; Residences & Secured Residen
Slide 8: Brand Evolution
Brand Evolution • Repositioning the company as a high quality and diversified senior living provider • Harmonization of all of the sub-brands under one unifying brand • Re-naming homes to reflect the community they serve o Every home and community is diverse 8
Slide 9: Demand for Seniors Living
Demand for Seniors Living Growing Demand Favourable Demographics Strong Market Fundamentals Canadians over the age of 75 British Columbia 5.5% 4.2% Age 75 to 84 Age 85+ 3.3% 7,000 2.3% 1.3% 6,000 0.9% 33% 5,000 Population (000’s) 2013 2014 2015 2013 2014 2015 30% Supply Growth Demand Growth 4,000 28
Slide 10: Retirement
Retirement
Slide 11: Retirement Communities
Retirement Communities • Re-branding initiatives • Strengthening the operating platform o Assisted living services o Leisure services o Culinary services 14.0% 13.0% Growth in same Growth in same property NOI property NOI (Q1 2016) (2015) 85% Resident and Resident and Family Family satisfaction Sati
Slide 12: Retirement Performance
Retirement Performance Net Operating Income ($M) As at Occupancy ~144% growth since 2012 through organic 19,675 86.8% 86.8% 88.8% 92.3% 93.6% 91.5% growth and acquisition activities 17,416 82.9% 75.5% 12,076 8,076 2012 2013 2014 2015 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Well Well P
Slide 13: Long Term Care
Long Term Care
Slide 14: Long Term Care
Long Term Care • Largest owner and operator in Ontario with 35 homes and 5,733 residents • Great locations, quality assets; 61% are Class A 3.4% Growth in same 1.7% Growth in same property NOI property NOI (Q1 2016) (2015) 100% Quality indicators Resident and at or better than Family provincial aver
Slide 15: Long Term Care Performance
Long Term Care Performance Net Operating Income ($M) Occupancy ~43% growth since 2012 through organic 63,191 64,295 98.8% 98.9% 98.7% 98.1% 98.5% 99.1% 98.8% 98.6% growth and acquisition activities 48,082 45,031 2012 2013 2014 2015 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Well Position
Slide 16: Ontario LTC Enhanced Renewal Plan
Ontario LTC Enhanced Renewal Plan • Approximately half of the 77,500 LTC beds in Ontario need to be redeveloped • Waitlist of 24,500 with no additional beds planned for the province at this time • Opportunities available to use land for best use and create senior living campuses • Senior living camp
Slide 17: Recent Announcements
Recent Announcements
Slide 18: Strategic Initiatives
Strategic Initiatives Sale of Preferred Sale of Home Care Segment to focus on our core business of Care Health high-quality retirement living and long-term care. NOI contribution of only 2%. Services 2 high-quality private pay retirement residences - 223 IL suites 6 best-in-class predominantly LTC r
Slide 19: Properties
Properties Suites/Beds Potential Property Location by Type Total Expansion IL AL LTC Mayfair Port Coquitlam 85 85 Rideau Manor Burnaby 138 138 Brookside Lodge Surrey 116 116 Lake Country Lodge Winfield 41 49 90 Lakeview Lodge West Kelowna 114 114 134 Mariposa Gardens Osoyoos 26 10 109 145 19 Ridgevi
Slide 20: British Columbia Expansion
British Columbia Expansion With this acquisition, Sienna’s residences in British Columbia increases to 11 and a further total of 1,376 beds/suites. 20
Slide 21: Portfolio Composition
Portfolio Composition Beds/Suites Current Pro Forma 6,939 Beds/Suites 7,923 Beds/Suites Retirement Retirement The BC acquisition would 1,206 1,554 increase Sienna's retirement suites by 29%, Long Term Care Long Term Care long term care beds by 5,733 6,369 11% and total private- pay accommodations by
Slide 22: Option Properties
Option Properties Nicola Lodge Glenmore Lodge • Port Coquitlam, BC • Kelowna, BC • 256 Beds • 118 Beds • Opened in April 2016 • Expected to open in Q2 2017 22
Slide 23: Strategic Acquisition
Strategic Acquisition $255M purchase price Significant $120M bought deal public offering with Expansion 15% over-allotment option for total proceeds of $138M in British Columbia $137M assumed existing mortgages* $10M share issuance to Baltic Principals 23 *As at March 31, 2016
Slide 24: Pro Forma Financials
Pro Forma Financials BC Portfolio Acquisition Strong growth in Debt to Gross Book Value NOI of ~21% expected to remain unchanged 2015 Pro Forma 2015 Pro Forma* $85.4M ~$103M $10M Share Issuance to Baltic Principals 55.6% ~55% 24 *Excludes proceeds from over-allotment subscription.
Slide 25: Financial Review
Financial Review
Slide 26: Financial Summary
Financial Summary Consolidated 4.4% 6.0% 2015 $85.4M Q1 2016 $20.6M Same Property NOI 2014 $81.8M Q1 2015 $19.4M Retirement Residences 13.0% 14.0% 2015 $19.7M Q1 2016 $5.4M Same Property NOI 2014 $17.4M Q1 2015 $4.7M Long Term Care Same Property NOI 2015 2014 $64.3M $63.2M 1.7% Q1 2016 Q1 2015 $15.2
Slide 27: Financial Summary
Financial Summary Diluted Operating Funds 2.5% 11.6% 2015 $1.148 Q1 2016 $0.288 from Operations per share 2014 $1.120 Q1 2015 $0.258 Diluted Adjusted Funds 1.9% 10.5% 2015 $1.312 Q1 2016 $0.348 from Operations per share 2014 $1.287 Q1 2015 $0.315 27
Slide 28: Debt Overview
Debt Overview Debt Composition Debt Overview Focus on building a debt maturity profile over time: • Debt Ladder • Reduce Leverage 400 8.0% 700,000 350 7.0% 600,000 300 6.0% 500,000 250 5.0% 400,000 200 4.0% 300,000 150 3.0% 200,000 100 2.0% 100,000 50 1.0% 0 -% - 2016 2017 2018 2019 2020 Thereafter
Slide 29: Financial Position
Financial Position Debt to GBV 56.4% 56.4% 55.4% 55.4% 55.6% 55.2% 54.7% 52.1% 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Payout Ratio Interest Coverage Ratio 3.6x 3.5x 72.4% 72.8% 3.3x 3.4x 68.1% 67.6% 67.4% 3.1x 3.2x 67.2% 61.8% 62.3% 2.7x 2.8x 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 2012 2013 2
Slide 30: Looking Ahead
Looking Ahead Growth Through… Strategic acquisition Vision opportunities To awaken our communities to the in key Canadian positive possibilities of life’s next markets chapters Maximizing our assets Mission To help you live fully, every day Organic growth 30
Slide 31: Contact Information
Contact Information Sienna Senior Living Inc. 302 Town Centre Blvd, Suite 300 Markham, ON L3R 0E8 t: (905) 477-4006 e:investors@siennaliving.ca siennaliving.ca Nitin Jain Executive Vice President & CFO t: (905) 489-0787 e: Nitin.Jain@siennaliving.ca 31
Slide 32: The warmth of human connection
The warmth of human connection
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