Sienna Senior Living reported same-property net operating income of $57.6 million for the second quarter of 2026, up 19.4% from the same quarter a year earlier, and said it has formed a joint venture with Fiera Infrastructure to accelerate long-term care redevelopment in Ontario.
Net operating income (NOI) is property revenue less direct operating costs. Same-property figures exclude acquisitions, so they measure how the existing portfolio performed. The gain came from a 22.6% increase in long-term care and 15.2% in retirement. The long-term care number was helped by items relating to earlier periods: $2.1 million of retroactive government funding and a $0.3 million workers' compensation refund. Stripping those out, same-property NOI rose 14.2%, with long-term care up 13.5%.
Revenue on a proportionate basis rose 13.6% to $288.2 million. Operating funds from operations reached $39.6 million, or $0.370 per share, up 16.4% per share. Adjusted funds from operations (AFFO) came to $34.9 million, or $0.326 per share. The AFFO payout ratio — distributions as a share of AFFO — fell to 72.3% from 89.5%.
Retirement average same-property occupancy was 94.1%, up 150 basis points year-over-year. Long-term care occupancy was flat at 98.5%.
Leverage declined sharply. Net debt to adjusted gross book value was 34.6% at quarter end, down from 41.3%, and net debt to adjusted EBITDA fell to 6.1 times from 8.0 times. Part of that reflects equity issuance rather than debt repayment: Sienna sold $98 million of shares in the quarter under its at-the-market program, bringing the year-to-date total to $248 million. Weighted average cost of debt was unchanged at 3.9%.
The company has closed or contracted $188.1 million of acquisitions in 2026 at a weighted average investment yield of 6.21%, including The Bartlett ($59.4 million) and Rockland Manor ($41.0 million), both completed, and the 224-bed Ballycliffe long-term care home ($68.3 million), still under contract following a May purchase agreement.
The Fiera Infrastructure joint venture, formed August 4 through the manager's Canadian Built Opportunities Fund, is initially targeting roughly $625 million in aggregate construction costs. Sienna's Glen Rouge (448 beds, about $250 million) and Streetsville (256 beds, about $125 million) projects in the Greater Toronto Area are among the first candidates. Both are expected to start construction in early 2027, subject to government approvals, with completion in 2030 and late 2029 respectively.
For the full year, Sienna raised its long-term care same-property NOI growth target to a mid- to high-single-digit percentage from low- to mid-single digits. It continues to target retirement occupancy above 95% and retirement NOI growth above 10%.
Source: GlobeNewswire
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