Sienna Senior Living Inc. Provides Business Update
5 October 2020
MARKHAM, Ontario, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today provided the following business update. The health and well-being of residents and team members remain the Company’s top priority. Sienna has advanced critical steps necessary to manage COVID-19 across its 83 residences ahead of a second wave, including securing a robust supply of personal protective equipment, strengthening infection prevention and control practices, putting in place staffing plans, and ensuring the Company’s frontline employees have the training and support they need. “Over the past weeks we further strengthened our financial position and our development plans have been gaining momentum as we continue to navigate through the pandemic and beyond,” said Nitin Jain, President and Chief Executive Officer of Sienna Senior Living. “With the support of the health care experts on our team, the numerous infection prevention and control practices we put in place and our request for everyone to do their part in keeping our residents, caregivers and team members safe, we will fight the pandemic as we enter its second wave.” Business Update Development and Redevelopment of Long-Term Care Residences: Sienna and Scarborough Health Network explore potential partnership Sienna has submitted applications with the Ministry of Long-term Care for the development/re-development of a number of its Class B/C long-term care residences in Ontario. The Company’s development plans include the active pursuit of a partnership between Sienna and Scarborough Health Network (“SHN”) to develop a new 320-bed long-term care campus to provide integrated care for the growing needs of the local community. The plans explore the opportunity to develop Sienna’s Altamont Care Community (“Altamont”) into a campus-style community, including the redevelopment of Altamont’s 159 existing beds and the development of approximately 161 new beds. In addition to the potential partnership with SHN at Altamont, three development projects previously announced in Keswick, Brantford and North Bay are in advanced stages of planning and approval with regulatory and local authorities. Sienna continues to evaluate how the Government of Ontario’s new funding model, which caters to regional development needs, will impact and benefit the Company’s portfolio of 5,733 long-term care beds in Ontario, of which approximately 2,200 beds are located in 15 older Class B/C homes. Ontario Government Update on Additional Long-term Care Funding We are encouraged by the Government of Ontario’s recent update with respect to additional funding of over $0.5 billion for long-term care. Major funding components include: On September 29, Sienna has been allocated additional funding of approximately $6.4 million and expects to receive further funding in the fourth quarter of 2020. We are also grateful for the Government of Ontario’s support for personal support workers through a temporary wage increase of $3/hour effective October 1, 2020, which will help recognize the extraordinary efforts of our frontline employees and stabilize staffing as we enter the second wave of the pandemic. COVID-19 Update As of October 4, 2020, nine residences are in outbreak, with only one active resident COVID-19 case. Over the past eight weeks, the number of active resident COVID-19 cases across Sienna’s 83 owned or managed residences remained at zero to one case at any given time. Retirement Occupancy and Rent Collection In Sienna’s retirement portfolio, average same property occupancy in September 2020 improved from the previous month, and rent collection levels remained high. During Q3 2020, the Company continued to record an increased level of deposits from prospective residents compared to Q2 2020 and the comparative prior year period as a result of the reopening of residences for in-person visits and increased marketing efforts. Balance Sheet Update Sienna continued to strengthen its financial position with the closing of a combined $275 million of debt financings on October 2, 2020, which were used for general corporate purposes and to repay existing indebtedness, including the redemption of all of the outstanding 3.474% Series B Senior Secured Debentures due February 3, 2021. As a result, the Company further enhanced its balance sheet and significantly reduced its near-term debt maturities. As at October 2, 2020, Sienna’s liquidity was approximately $227.7 million, comprised of $86.2 million of cash and cash equivalents, $40.0 million of short-term investments as well as $101.5 million of available credit facilities. The Company’s pool of unencumbered assets increased by more than $300 million from $540 million as at June 30, 2020 to approximately $841 million as at October 2, 2020. About Sienna Senior Living Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors' living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna's approximately 13,000 employees are passionate about helping residents live fully every day. For more information, please visit www.siennaliving.ca. Risk Factors Refer to the risk factors on “General Business Risks” and “COVID-19 and Other Outbreaks” disclosed in the Company’s Management Discussion and Analysis for the three months ended June 30, 2020, and other risk factors disclosed in its most recent annual Management Discussion and Analysis and Annual Information Form for more information. Forward-Looking Information 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 and include, without limitation, statements with respect to the Company’s pursuit of a potential partnership with Scarborough Health Network with respect to the development of Altamont Care Community into a long-term care campus. 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: Karen Hon Nancy Webb July 2020 August 2020 September 2020 Retirement same property occupancy (average) 81.2% 81.1% 81.7% Retirement rent collection 99.8% 99.6% 99.4%
Chief Financial Officer and Senior Vice President
(905) 477-4006 x3069
karen.hon@siennaliving.ca
Senior Vice President, Public Affairs and Marketing
(905) 415-7623
nancy.webb@siennaliving.ca
Sienna Senior Living Inc. Provides Business Update
15 September 2020
MARKHAM, Ontario, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today provided the following business update. The health and well-being of residents and team members remain the Company’s top priority. Sienna continues to take the critical steps necessary to make solid progress against and minimize the impact of new COVID-19 outbreaks, including preparing for a potential second wave, while providing the best quality care for its residents. “We have emerged from the first wave of the pandemic stronger, more knowledgeable and better positioned for a potential second wave,” said Nitin Jain, President and Chief Executive Officer. “We have been working on numerous initiatives to keep our team members and residents healthy and safe, our development plans are gaining momentum and we are encouraged by the increased level of deposits from future residents in our retirement residences.” COVID-19 Update One resident case of COVID-19 in Sienna’s residences As of September 14, 2020, five residences are in outbreak, with only one active resident COVID-19 case. Over the past month, the number of active resident COVID-19 cases across Sienna’s 83 owned or managed residences remained at zero to one case at any given time, highlighting the effectiveness of the Company’s measures to fight COVID-19. Business Update Preparedness for Potential Second Wave and Hospital Management With Sienna’s enhanced healthcare expertise with respect to seniors’ care and infectious diseases, and the support of our hospital partners, associations and governments, the Company will continue to take the critical steps necessary to ensure preparedness for a potential second wave. Sienna is continuing to secure a robust supply of personal protective equipment, strengthening infection prevention and control practices, putting in place staffing plans, and ensuring the Company’s frontline employees have the training and support they need. In addition, Sienna implemented important new strategies to strengthen family and team member communications to keep them apprised of new initiatives and developments. During September 2020, the voluntary hospital management agreements for two of Sienna’s long-term care communities have concluded and Sienna is implementing recommendations to strengthen operations. Sienna is grateful for the expertise of our hospital partners in navigating through the pandemic and appreciates their willingness to provide future support, if required. Retirement Occupancy and Rent Collection The Company’s August 2020 average same property occupancy and rent collection levels in the Retirement portfolio remained at levels similar to the previous month. Since July 2020, the Company continued to record an increased level of deposits from prospective residents compared to Q2 2020 and comparative prior year periods as a result of the reopening of residences for in-person visits and increased marketing efforts. We expect that these deposits will help support occupancy in our retirement segment. Pandemic Expenses and Funding We are encouraged by the Government of Ontario’s recent announcement for additional funding for COVID-19 prevention and containment and the Government of British Columbia’s funding announcement to cover extra staffing costs dedicated to safe social visitations. Sienna expects to continue to incur an increased level of expenses to support the costs of managing COVID-19. While certain temporary expenses are expected to be covered by government funding, other expenses may not be covered. In addition, there may be timing differences between the time of incurring these expenses and the funding of such expenses. The following table summarizes the government assistance and pandemic expenses recognized in Q2 2020 and to date in Q3 2020: (1) Total government assistance and pandemic expense for Q2 2020 include $1,429 and $10,941 for flow-through frontline pandemic pay and single site staffing for the Retirement and LTC segments, respectively. (2) Total government assistance and pandemic expense for July/August 2020 include $1,366 and $9,666 for flow-through frontline pandemic pay and single site staffing for the Retirement and LTC segments, respectively. Ontario Government Update on Long-term Care Construction and Redevelopment We are pleased with the September 10, 2020 update by the Government of Ontario with respect to the new funding model for the long-term care development program which caters to regional development needs. As part of the new funding model, With the more favorable financial economics of the program, Sienna is evaluating how this program will impact and benefit the Company’s current portfolio of 5,733 long-term care beds in Ontario, of which approximately 2,200 beds are located in 15 older Class B/C homes. Early indicators of the impact on Sienna’s development plans are positive. Three development projects in Keswick, Brantford and North Bay are in advanced stages of planning, and we are working with regulatory authorities through the approval process. About Sienna Senior Living Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors' living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna's approximately 13,000 employees are passionate about helping residents live fully every day. For more information, please visit www.siennaliving.ca. Risk Factors Refer to the risk factors on “General Business Risks” and “COVID-19 and Other Outbreaks” disclosed in the Company’s Management Discussion and Analysis for the three months ended June 30, 2020, and other risk factors disclosed in its most recent annual Management Discussion and Analysis and Annual Information Form for more information. Forward-Looking Information 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 and include, without limitation, statements with respect to the impact of COVID-19 and measures taken to mitigate the impact and statements with respect to the Company’s ability to refinance debt maturities. 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: Karen Hon Nancy Webb June 2020 July 2020 August 2020 Retirement same property occupancy (average) 82.3% 81.2% 81.1% Retirement rent collection 99.2% 99.8% 99.6% $000s Q2 2020 July/August 2020 Retirement LTC Administrative Total Retirement LTC Administrative Total Total government assistance 2,065 22,852 — 24,917(1) 1,704 14,285 — 15,989(2) Total pandemic expense 3,426 29,152 2,981 35,559(1) 2,381 21,009 1,262 24,652(2) Total net pandemic expenses 1,361 6,300 2,981 10,642 677 6,724 1,262 8,663
Chief Financial Officer and Senior Vice President
(905) 477-4006 x3069
karen.hon@siennaliving.ca
Senior Vice President, Public Affairs and Marketing
(905) 415-7623
nancy.webb@siennaliving.ca
Sienna Senior Living Inc. Provides Business Update
27 July 2020
MARKHAM, Ontario, July 27, 2020 (GLOBE NEWSWIRE) -- Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today provided the following business update. Since the onset of COVID-19, the Company has been singularly focused on steering Sienna through the crisis, learning from it, and positioning Sienna to come out stronger. The health and well-being of our residents and team members remains Sienna’s top priority. “To date, we have made good progress in implementing important measures in our fight against COVID-19,” said Nitin Jain, President and CEO. “We will take all necessary steps to minimize the impact of new outbreaks and a potential second wave on our ability to provide the best quality care for our seniors, while also keeping our team members healthy and safe.” COVID-19 Update No current resident cases of COVID-19 in any of Sienna’s residences As of July 26, 2020, two long-term care residences of our 83 owned or managed residences are in outbreak, with no active resident COVID-19 cases. Business Update Retirement Occupancy and Rent Collection The Company’s average same property occupancy in the Retirement portfolio continued to be affected by COVID-19 restrictions that have reduced move-in activity and the ability to conduct in-home tours. Rent collection levels remained high and consistent with past experience. Subsequent to the end of Q2, the Company resumed in-person tours in its Ontario and British Columbia retirement residences in accordance with public health guidelines. Long-term Care Occupancy and Funding Average occupancy in the Long-Term Care (LTC) portfolio declined to 92.6% in Q2 2020 from 97.9% in Q1 2020. Long-term care residences are fully funded for vacancies caused by temporary closure of admissions due to an infectious outbreak, including COVID-19. The Government of Ontario has announced that the occupancy protection funding will be in place for long-term care residences until December 31, 2020. The Government of Ontario provides long-term care funding for personal care, programming, food and accommodation. With the exception of accommodation, all funding is “flow-through” funding required to be spent entirely on residents, with any excess amounts not allocated to direct resident care returned to the Ministry of Long Term Care. Pandemic Expenses Sienna expects to continue to incur an increased level of expenses to support the costs of managing COVID-19. While certain of these temporary expenses are expected to be covered by government funding, other of these expenses may not be covered. Non-recoverable expenses include expert counsel fees and expenses related to manager pandemic pay programs. There may be timing differences between the time of incurring these expenses and the funding of such expenses. For the three months ended June 30, 2020, the net impact of pandemic related expenses was $10.7 million, mainly comprised of additional staffing and administrative costs, expenditures for personal protective equipment and supplies, and advisory fees. Ontario Government Announcement on Long-term Care Construction and Redevelopment We are pleased with the July 15 announcement by the Government of Ontario of a new funding model for long-term care. The model is expected to help accelerate the much needed construction and redevelopment of long-term care homes across the province. Sienna has long advocated for a revised model, moving from a one-size fits all approach to a funding model that caters to regional development needs. The Company has started to evaluate how this program will impact and benefit Sienna’s current portfolio of 5,733 long-term care beds in Ontario, of which approximately 2,200 beds are located in 15 older Class B/C homes. Balance Sheet and Liquidity Update The Company maintains a strong financial position with significant liquidity and a substantial unencumbered asset pool. Sienna will continue to focus on enhancing its liquidity position and expects to continue to delay new expansion projects and limit capital expenditures to essential maintenance capital. With respect to upcoming debt maturities, including scheduled debt repayments of $10 million for the remainder of 2020 and Q1 2021 maturity of the 3.437% Series B Senior Secured Debentures in the amount of approximately $248 million (net of principal reserve fund), the Company expects it will be able to successfully refinance its maturing debt based on Sienna’s current financial position and debt profile. About Sienna Senior Living Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors' living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna's approximately 12,000 employees are passionate about helping residents live fully every day, and were the driving force behind Sienna being named one of Canada's Most Admired Corporate Cultures. For more information, please visit www.siennaliving.ca. Risk Factors Refer to the risk factors on “General Business Risks” and “COVID-19 and Other Outbreaks” disclosed in the Company’s Management Discussion and Analysis for the three months ended March 31, 2020, and other risk factors disclosed in its most recent annual Management Discussion and Analysis and Annual Information Form for more information. Forward-Looking Information 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 and include, without limitation, statements with respect to the impact of COVID-19 and measures taken to mitigate the impact and statements with respect to the Company’s ability to refinance debt maturities. 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: Karen Hon Nancy Webb April 2020 May 2020 June 2020 Retirement same property occupancy (average) 83.7% 83.0% 82.3% Retirement rent collection 98.5% 99.4% 99.2%
Chief Financial Officer and Senior Vice President
(905) 477-4006 x3069
karen.hon@siennaliving.ca
Senior Vice President, Public Affairs and Marketing
(905) 415-7623
nancy.webb@siennaliving.ca