Investor Presentation June 2019
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 applied in drawing conclusions or making forecasts or projections as reflected in the forward-looking information. Additional information about the material factors, assumptions and/or risks that could cause actual results to differ materially from the conclusions, forecasts or projections in the forward-looking information, and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information are as disclosed in the company’s disclosure documents filed on SEDAR from time to time, including but not limited to the company’s most recent AIF (www.sedar.com). Sienna Senior Living 2
Our Compa Our Company ny & & Investment Highlig Investment Highlights hts 3
~$2.2B Sienna at-a-glance Enterprise Value ~$1.2B Market Cap 12,000+ Dedicated Team Members 70 70 ow owned hi high h qua uali lity res esidences ( ~ 10 10,100 0 bed eds/s /suit ites) + 47 47 17 17 man anaged res esid idenc nces ( ~ ~ 1,9 1,900 00 bed eds/suit ites) 8 5 years of operations 4 230%+ Retirement Residences (RR) Long Term Care (LTC) 22 22 Total Shareholder Return 35 35 Managed Residences (RR and LTC) 13 13 since IPO $0.92 Sienna Senior Livi Sienna Senior Living Inc ng Inc. . is is one of one of Canada's Canada's leadi leading ng owners owners and and operators operato rs of of seniors seniors' ' resi esidenc dences es wi with hi th high q gh quality a uality ass ssets ets in gr in great eat Annualized Dividend/Share loca locations. tions. Sienna Senior Living 4
Well established in a sector with significant demand and barriers to entry Why Why Sienna? Sienna? Strong seniors living operating platform High quality portfolio in key markets Strong financial position with an A (low) bond rating Robust development pipeline Sienna Senior Living 5
Industry Fundamentals Incr Increasi easing af ng affluen fluence a ce among mong se seni niors ors Compelling demographics With ith th the 75+ 75+ age group proje jected As s hous housing ma ing market rkets s have ve so soar ared ed ov over to gr to grow ow on avera on average ge ~3.9 ~3.9% % ov over r the past the st tw two o deca cades, in incr creasin ing many y the next the xt 20 ye years rs seniors’ net worth Continuou Conti nuous s mar market adj ket adjus ustments tments Hi High gh bar barrie riers t rs to o entry entry Within ithin a fra fragmented se secto tor tha that t is is In a highly highly regul egulat ated ed industr industry tha that t co contin inuously ad adjusting justing to th o the e fast fast-pa paced ced requires lice licensi sing and exp xperie ienced gr growt owth in seniors’ living opera op rator ors Strong industry fundamentals in Sienna’s key markets Sienna Senior Living 6
Senior Living Demand & Supply Increasing demand for Seniors Living for Canadians Estim stimated Po Popula latio ion in n Can anada's 80+ 80+ Ag Age Coho hort Mark arket t vac acancy rate ates (Reti etirement) 4,500 Ontario British Columbia 14.0% 4,000 12.8% 12. 12.0% 3,500 9.9% 9. Population (000's) 10.0% 3,000 7. 7.2% 2,500 8.0% 2,000 6.0% 1,500 4.0% 2.5% 2. 1,000 2.0% 500 0.0% 0 2013 2014 2015 2016 2017 2018 2018 2020 2025 2030 2035 2040 Statistics Canada - Table: 17-10-0057-01 Ontario LTC waitlist of ~32,000 Vacancy rates in Sienna’s key Retirement markets • • (Ontario & British Columbia) have decreased LTC average time to placement is 146 days in Ontario • significantly over the past 5 years Sienna Senior Living 7
Grow the company Retirement acquisitions Development of campuses (RR/LTC) Our Our Organic growth Strategy Strategy & & Enhance the operating platform Goals Goals Provide great resident experience Build a high performing team and great culture Maintain a strong balance sheet Optimize leverage Increase liquidity Maintain favourable credit rating Sienna Senior Living 8
Portfolio Transformation Med ediu ium-term ob obje jective e Q1 1 201 2019 Ann Annuali lized NOI I Mix 201 2010 IPO IPO NOI I Mix (by by 202 2022) Oth ther 6% 6% Reti tirement Funded 46% 46% Funded 54% 54% 50% 50% 94% 94% Funded unded Ret etir irement Total otal NOI $41. $41.5M Total otal NOI ~$1 $156M Total otal Beds Beds/S /Suite tes: : 4,42 4,423 Total otal Beds Beds/S /Suite tes 10, 10,091 ~5,0 5,000 Emp Employe yees ~12 12,0 ,000 Emp Employe yees Funded Retirement (Private-pay) - Care is paid for by the government with extensive wait lists - Market-driven rates - Residents pay co-payment; rate is set annually by regulatory body - Supply varies by market - Eligibility determined by third party Sienna Senior Living 9
Industry-leading Share Performance 250% 241.4 .4% Tot otal l Retu turn | 27.8% CAGR S&P/TSX S&P /TSX 200% Composite Co te 205.3 .3% | 25.0% CAGR Index ndex S&P/T /TSX Capp pped d REIT 160.6% | 21.1% CAGR 150% S&P/T /TSX Low ow Vola latilit ility y 131.7% % | 18.3% CAGR 100% 48.0% | 8.2% CAGR 50% 0% May- y-10 May- y-11 May- y-12 May- y-13 May- y-14 May- y-15 May- y-16 May- y-17 May- y-18 May- y-19 Sienna Senior Living Extendicare Chartwell S&P/TSX Capped REIT S&P/TSX Low Volatility -50% 10 Note: Total return is defined as investment return from dividends and stock price appreciation Sienna Senior Living
2018 Highlights Acquired $3 $382 mi 2 millio ion n of retirement residences 1 Added 1, 1,00 000 team members 2 Included in S&P/ S&P/TSX TSX Composite Index 3 Raised dividend by 2% 2% 4 Increased Retirement NOI Mix to 44% 5 Lowered debt to gross book value by 190 190 6 bps bps to 47 47.7% .7% 11 Sienna Senior Living
Our Culture and Values Cor Corpor porate te Cul Cultur ture Vision ision • Sie Sienna Se Senior r Livi iving To awaken our communities to the positive possibilities of life’s next named one of chapters Canada’s Mos ost t Admired Co Corp rpora rate Cu Cultures. Mission Mission To help you live fully, every day Sienna joins a prestigious club of past winners: Values alues Respect • Passion • Teamwork • Responsibility • Growth Sienna Senior Living 12
Lois Cormack Nitin Jain Senior Senior Director, President & CEO Chief Financial Officer & Chief Investment Officer Executive Executive Joanne Dykeman Lisa Kachur Executive Vice-President, Executive Vice-President, Team eam Operations Operations Cristina Alaimo Olga Giovanniello Vice-President, General Executive Vice-President, Counsel People & Culture Nancy Webb Vice-President, Marketing & Communications Sienna Senior Living 13
Lois Cormack Dino Chiesa Director Chair and Director Board o Boar d of f Janet Graham Paula Jourdain Coleman Dir Directors ectors Director Director Jack. C. MacDonald Brian Johnston Director Director Stephen Sender Director Sienna Senior Living 14
BW: I asked Ruth for a better picture Str Strong ong Operating Operating Platfor Platform 15
Operating Performance LTC NOI ($M) Retirement NOI I ($M ) 40% 40% 260% 260% $62.8 since 2014 since 2014 $88.4 $85.4 $72.0 $64.3 $63.2 $32.7 $26.1 $19.7 $17.4 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Strong operating performance driven by organic growth & acquisitions Sienna Senior Living 16
NOI Margin Growth 42% 25% 45% 24% 40% 23% 35% 28% 22% 27% 30% 23% 21% 22% 25% 20% 24% 20% 19% 15% 21% 18% 20% 10% 17% 18% 18% 5% 16% 15% 0% 2014 2015 2016 2017 2018 NOI Margin Retirement Mix Consistent margin uplift since 2014 as a result of increasing retirement portfolio with higher margins Sienna Senior Living 17
NOI Same-Property Growth Sienna Peer Group* 4.2% 5-year r Same-Property ty 3.8% 3.7% NOI I Grow owth 2.7% 2.5% 2.3% 3.4% 3.4% 0.9% 0.7% 0.2% -0.2% 2014 2015 2016 2017 2018 *Peer group comprised of Canadian REITs that have been public during the same period as Sienna Strong value creation through same-property growth Sienna Senior Living 18
Consistent Improvements in OFFO OFFO/Share OFFO/Sha $1.60 $1.40 $1.40 6.6% $1.20 $1.00 5-year average $0.80 annual growth rate $0.60 REIT Industry returns flat over comparable period* $0.40 $0.20 $0.00 *Comparison includes 27 REITs that report OFFO 2014 2015 2016 2017 2018 per share Sienna Senior Living 19
Quality Care Highest Disti Highest Distinc nction tion Three Thr ee Year ear Ac Accreditati editation on Outperform Awar warded ded From Fr om CARF Cana CARF Canada da 99% of quality standards met at all For BC LTC Provincial and National averages on Ontario communities (Oct 2016) Communities (Jul 2018) publicly reported quality indicators Over 80% Residence and Family Satisfaction Scores in 2018 Key focus on quality of care and resident safety Sienna Senior Living 20
Financial Financial Highli Highlights ghts 21
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