Sienna Senior Living Inc. (SIA-T) has announced the acquisitions of a retirement home in Ottawa and a long-term care home in Mississauga for a total of $81 million as it continues to expand its seniors' living portfolios.

Announced alongside its Q4 2024 and year-end 2024 financials, Sienna said it purchased the 165-suite Wildpine Residence located in the Ottawa suburb of Stittsville, and the 192-bed long-term care home Cawthra Gardens earlier in February.

Wildpine Residence was acquired for $48 million, Cawthra Gardens for $32.6 million.

"We are excited to further expand our operations with two high quality acquisitions in Ontario, generating immediate synergies with our existing portfolio and enhancing the size and quality of our diversified asset base," David Hung, chief financial officer and executive vice-president of investments at Sienna, said in a release.

As of Sept. 30, 2024, the Markham, Ont.-based company owned and operated 82 residences in Ontario, British Columbia, Saskatchewan and Alberta, and managed 12 additional properties for third parties.

Wildpine Residence and Cawthra Gardens

Wildpine Residence, opened in 2019, has 119 independent living and 46 assisted living units. The four-storey building includes luxury suites with balconies and patios, a pub, a lounge, and health and fitness facilities.

Occupancy is stabilized and management of the property is expected to benefit from other nearby properties owned by Sienna, and improving market fundamentals in Ottawa.

The acquisition, which is expected to close by mid-2025, will be financed through assuming approximately $25 million in debt insured by the Canada Mortgage and Housing Corporation and general corporate funds for the remainder. The capitalization rate for Wildpine Residence is 6.25 per cent.

Cawthra Gardens, a three-storey class-A long-term-care home, was built in 2003 and is nearby two other Sienna long-term care homes in Mississauga. With 120 private beds and 72 basic beds, it is in a market with a long wait list for long-term care homes and constrained supply, which Sienna said makes it “a very attractive investment opportunity.”

The property will be acquired using general corporate funds, and includes a $2-million capital allowance which Sienna plans to use within the first 12 months after closing. It will be acquired at a capitalization rate of 6.75 per cent, and is expected to close in early 2026.

Sienna’s Q4, year-end 2024 financials

Sienna reported an improvement in total adjusted revenue, going from $817 million in 2023 to $930 million in 2024 — a 14 per cent increase.

Debt to adjusted gross book value fell from 44.6 per cent in 2023 to 41.1 per cent in 2024.

Adjusted funds from operations went up over 31 per cent — from $1.030 per unit in 2023 to $1.353 per unit in 2024.

Q4 2024 total adjusted revenue was $246 million, an improvement from $219 million in Q4 2023.

Sienna’s strategy for 2025

Sienna noted strong long-term fundamentals in Canadian senior living driven by an aging population and limited supply.

The company said it will focus on portfolio optimization, raising its occupancy rate and increasing its operating income and margin growth.

Adding to Sienna’s optimism are projects under development in Brantford, North Bay and Keswick, all in Ontario. The long-term care properties will total 480 beds, 147 suites and $307 million in development costs.

The Brantford and North Bay projects are scheduled to be finished in Q4 2025; Keswick in Q1 2027.