Sienna Senior Living Inc.

and Executive Vice President Investments of Ciena Senior Living Inc. Please be aware that certain statements or information discussed today are forward-looking and the actual results could differ materially. The company does not undertake to update any forward-looking statement or information. Please refer to the forward-looking information and risk factors section in the company's public filings, including its most recent MD&A and AIF, for more information. You will also find a more fulsome discussion of the company's results in its MD&A and financial statements for the period, which are posted on CDAR Plus and can be found on the company's website, vianaliving.ca. Today's call is being recorded and a replay will be available. Instructions for accessing the call are posted on the company's website and the details are provided in the company's news release. The company has posted slides which accompany the host's remarks on the company website under Events and Presentations. With that, I will now turn the call to Mr. James. Please go ahead, Mr. James.

Thank you, Sarah. Good morning, everyone, and thank you for joining us today. The third quarter set the stage for a strong finish to this year. There's positive momentum across every part of our company. We achieved strong operational results in both lines of our business, successfully completed two development projects in Ontario, and continue to grow through acquisitions. We're on track to make 2025 a year that marks the next stage of Ciena's growth journey. Both operating platforms delivered strong results in the third quarter. Same property NOI increased by 13.2% in the retirement segment and by 6.7% in long-term care. Key drivers of the double-digit increase in the retirement segment were a strong occupancy increase and rental rate growth as well as higher care revenue. Average same property occupancy was up 230 basis point year over year and has reached 94.1% in the third quarter. Following the quarter, monthly occupancy increased to 94.7% in October, putting us well on our way to achieve a 95% target by the end of this year. Our results also reflect an increase in care revenue. We increasingly apply our expertise in clinical care at our retirement platform, which allows residents to stay with us longer as their care needs change. Additional key drivers behind the strong performance in our retirement segment are our robust sales platform and focused marketing campaigns. Our call center leads remain high, and the number of tours in our properties have significantly increased each quarter this year. Our Q3 leads have increased by 37% year-over-year compared to the same period last year, and we are also encouraged by the results of our recently hosted National Open House in October. We generated a much stronger double-digit increase of new leads compared to our previous event in July. In addition, we maintain a robust focus on hospital outreach and excellent relationships with healthcare and business partners in the communities we operate in. All of these initiatives are expected to drive increasing lead generation and future movements. Beyond the strong same property performance and retirement segment, we are pleased with the results of our optimization efforts in five of our properties. Occupancy increased by 970 basis point year-over-year in Q3 in the optimization portfolio and supported NOI growth of over 40%. Our initiatives to better position these assets within the local markets are clearly delivering results. With respect to our long-term care operations, our fully occupied homes with growing wait lists, high revenue from private accommodations, and annual government funding increases all added to the strength of our results. Our government-funded long-term care operations add significant value to our business and as they provide stability and are largely insulated from market volatility or economic uncertainty. In the coming quarters, we will also start to see the contributions from our recently opened redevelopment projects. Moving to slide six, in September we opened our redeveloped long-term care community in North Bay, followed by a campus of care in Brantford in October. These large-scale projects are complex, require deep expertise and trusted partnerships. And we're especially proud to have delivered them on time and on budget. Once fully stabilized, each of our long-term care redevelopment is expected to grow Ciena's AFFO per share by about 3%. With long wait lists, we expect to see the homes to be fully occupied within 60 days after they open. We are also on track to complete our next redevelopment project in Keswick in 2027. With respect to our development pipeline, we are encouraged by the funding improvements announced by the Ontario government this summer. Improvements for projects in the Greater Toronto Area are especially important to us, given that over 80% of our remaining redevelopment pipeline is, in fact, in the GTA. As a result of these improvements, we expect to start construction of one to two projects next year. Since the beginning of the year, we have also been very active on the acquisition front. The majority of the properties we acquired in 2025 are less than 10 years old and are strategically located in large urban centers. During the third quarter, we strengthened our footprint in the greater Toronto area with the addition of a previously announced 133-suite retirement residence and a 192-bed long-term care home. Since the end of the quarter, we are also entered into two additional acquisition agreements in Ontario. Last week, we signed a purchase agreement for Highgate on Lexington, a 216-suite retirement residence in the city of Waterloo. We will acquire the property in this desirable market for approximately $93.3 million. Highgate also includes a 4.7-acre development site, which is zoned for a retirement residence or residential condominium. Two days ago, we signed a purchase agreement for LaSalle Park, a 123-suite retirement residence in Burlington. A suburb in GTA, we will initially acquire a 78.2% interest in the property for approximately $67.2 million, followed by an additional 10.9% in January 2026, and the final 10.9% in five years. This is our third high-quality acquisition in the Greater Toronto Area this year. where we already have a significant presence and continue to build scale. Collectively, we have added over $800 million of assets through acquisitions and developments to our platform in 2025, and our pipeline continues to stay very strong. Investing in our team members, as we grow and scale our operations, investing in our team members is fundamental to the success of Ciena. With over 15,000 employees, we recognize the importance of programs focused on learning and development, leadership skills, recognition and rewards, all designed to attract and retain a highly engaged workforce. The positive impact of these initiatives is reflected in our most recent employee engagement survey, which was completed in September. The participation rate reached an all-time high of 86%, and the team member engagement score rose for the fifth consecutive time. We're extremely proud of this achievement, which is crucial for the continued success of Ciena. Our investment in our team members was also recognized by Time Magazine, who named Ciena one of Canada's best companies in 2025. With that, I'd turn it over to David for an update on our financial results. Thank you, Nitin, and good morning, everyone.

I will start on slide 10 for financial results. In my commentary, in accordance with our MD&A disclosure, I will make reference to our operating results excluding one-time items. In Q3 2025, revenue on a proportionate basis increased by 16.4% year-over-year to $261.7 million. This increase was largely due to occupancy and rental rate growth, as well as increased care revenue in the retirement segment. Adding to the increase were the contributions from our long-term care platform, including higher flow-through funding for direct care, higher private accommodation revenue, and additional revenue from acquisitions completed in 2025. Same property NOI increased by 9.7% to $46.4 million in Q3 2025, including by 13.2% in our retirement segment and by 6.7% in the long-term care segment. In the retirement segment, same property NOI increased by $2.6 million in Q3 2025 compared to last year, largely as a result of improved occupancy and rate growth. These improvements, in addition to generating higher care revenue and maintaining a strict focus on operating expenses, supported the year-over-year 220 basis point improvement of our same property operating margin. In addition, we are making good progress with respect to our asset optimization initiatives, which includes five assets in the company's retirement portfolio. Q3 NOI in the optimization portfolio increased by over 40% year-over-year with an average margin increase of approximately 540 basis points compared to the same period in 2024. In the long-term care segment, NOI increased by $1.5 million. Fully occupied homes with growing wait lists and continued improvements in private occupancy supported the year-over-year growth. During Q3 2025, operating funds from operations increased by 33.3% to $31.8 million compared to last year, primarily due to higher NOI. Adjusted funds from operations increased by 36.1% to $27.7 million compared to last year. The increase was mainly due to higher OFFO offset by an increase in maintenance capital expenditures. On a per share basis, OFFO and AFFO increased by 9.6% and 12% respectively in Q3 2025. Our Q3 2025 AFFO payout ratio was 78.7% compared to 91.3% in Q3 2024. This significant improvement highlights Ciena's strong operating results and our successful initiatives of deploying capital we raised to fund our growth. In the coming quarters, we also expect to see contributions from our recently completed redevelopment projects reflected in our AFFO. Each redevelopment is expected to contribute on average an additional $4.7 million to Ciena's annual AFFO once it is fully operational. This represents an approximate 3% increase in ASFO per share for each project. In addition, these projects will enhance our balance sheet and further elevate the quality of our asset pool. Throughout the third quarter, we maintained our strong financial position and balance sheet. We ended the quarter with $464 million of liquidity and $1.3 billion of unencumbered assets. On August 21st, we issued $175 million in unsecured debentures at an interest rate of 4.112% to finance our growth initiatives. The significant demand for the debenture resulted in the offering being multiple times oversubscribed. With respect to Ciena's upcoming debt maturities, including the maturity of our $175 million Series B unsecured debenture in Q1 2026, We have multiple attractive financing options available to us. With that, I will turn the call back to Nitin for his closing remarks.

Thank you, David. Our disciplined approach to enhancing our operations is clearly reflected in our results. Combined with our success in growing through acquisitions and developments, it reinforces our confidence and outlook for Ciena, both in the near term and in the years ahead. We are on track to end the year with same property occupancy of 95% in the retirement segment ahead of our original Q1 2026 target. In line with strong year-to-date performance, we also updated our same-property NOI growth targets. In our retirement segment, we expect same-property NOI to increase between 13% to 14% year-over-year, and in long-term care, we anticipate year-over-year NOI growth of 4% or 5% in our same-property portfolio. Our company is at the beginning of an exceptional growth phase. Supply is expected to remain constrained in the foreseeable future, while demand and operating fundamentals continue to strengthen. With our growing scale and the support of our highly engaged team members, we believe that we have a tremendous opportunity to generate sustained growth for many, many years to come. On behalf of our entire team and our board of directors, I want to thank our shareholders and for all of you on this call for your continued support.

Sarah, are we ready for questions?

Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Please ensure that your phone is not on mute when called upon. Thank you. Your first question comes from Jonathan Kelcher with TD Cowan. Your line is open.

Thanks. Good morning. First question, just on the operations front, looks on the retirement side, looks like you are sort of hitting it out of the ballpark a little bit here at 95, hitting the 95%. What should we think about going forward in terms of rent growth once you sort of meet that target?

Thank you, Jonathan, and good morning. We expect our rental growth to be in the range of 4% to 5%, which is a combination of annual escalations. Plus, there would be some opportunity to, in fact, look at market rents again when you are running at those high occupancy. And even though your question was not around margin, we have said before that once we get to that higher margin, a lot of that revenue will continue to fall on the bottom line. So, The NOI growth, rental revenue will be a part of it, but there will be multiple other levers which will drive the NOI growth.

Okay, fair enough. And then just secondly on the acquisitions, could you maybe give a little bit more color on LaSalle? Just in terms of like the remaining 22%, is that pricing set? Do you see a lot of runway for rent growth there? Like the 5.7% cap rate is a little bit on the low side for what you guys have been buying in retirement.

Yeah, no, thanks for that question, Jonathan. So just in terms of the structure, we are buying 78% now at $67.2 million. We're going to buy another 11% in Q1 of 2026. Also at the same price that we're buying now, so it would be at 100%, the value would be $86 million. And then five years from now, it would be at the fair market value at that time, and we'll have some predetermined metrics for how we calculate that. I think that in terms of rental rate growth, you know, it's going to be similar to what Nitin said. We see, you know, opportunity in the range of, you know, 4% to 5% rental rate growth within that market. So, you know, and a lot of that will also fall to the bottom line and expand the margins within that property.

Okay. Thanks. I'll turn it back.

The next question comes from Himanshu Gupta with Scotiabank. Your line is open.

Thank you and good morning. So first on long-term care, what led to NOI growth here? I mean, I know you have been guiding to around like 2% type growth and we got like 4% to 5% in the year so far. So is there like a margin expansion story in LTC as well here?

Yeah, it's a couple of factors, Himeshu. One is higher funding from all three provinces in Ontario, Alberta, and BC. And that has run a little bit higher than our increase in expenses. The second is around preferred revenues. So, you know, we have been driving growth through, you know, filling in our beds with residents who pay private accommodation rates. And then there's a little bit around the acquisition of Nikola. We did buy that earlier in the year. So that's contributing moderately to the growth in long-term care and a lot.

Okay. Okay. Fair enough. Oh, and I mean, sticking to LTC, but on the developments, Brantford and Northway is complete now. When do you start receiving construction funding? And when will you start, you know, reflecting that in the financials? And I guess it will be like a breakdown between like interest income and contribution to ASFO.

that's right so cfs funding starts when the building uh is open and in the case of northern heights uh we opened the building and uh had our first welcomed our first residence on september 7th so cfs started flowing on september 7th uh and then oakwood commons which is in branford opened up in october and that's when the cfs would start flowing at that time so So we've actually already started seeing a little bit of the CFS flowing through in Q3. We're going to see the full impact of that, at least for Northern Heights in Q4, and then Brantford would be Q1. In terms of the breakdown of the CFS, we've actually disclosed that in our MD&A. So out of the $3.3 million, around $2.2 million would be interest income, and the other $1.1 million approximately would be an add-back to our AFFO.

Got it. Okay. Very helpful. My last question is on the retirement home side. I mean, I think that then obviously you mentioned 4% to 5% kind of rental growth. And if I look on the expenses side, same probably expenses, I think they were up like 2% to 4% in 2025 so far. Is that a good run rate for expenses for Q4 and beyond?

Yeah, I think that's a good assumption, what you just talked about, about the rental growth and expense growth. One of the things that we have, you know, the one idea which most people talk about is how more of it falls to the bottom line. The second part is when homes are stabilized, first of all, we use very less incentives. Our incentives are around 1% to 2% of revenue, but our ability to remove those, that definitely helps. And also from expense perspective, when you have consistency in the number of residents in the home, you can become a lot more consistent in scheduling and other things which also drive down costs. So as a starting point, the assumptions you talked about, Himanshu, are not unreasonable, but we do expect an opportunity to in fact drive them lower from expense perspective.

Okay, very helpful. Maybe just the last, last question here. On the retirement home occupancy, I think you mentioned Q3 leads were up like double digits, if I heard it correctly. So it doesn't look like, you know, occupancy is going to stop here at like 95. Is that a fair assumption given how the leads are coming in and you still have more opportunity to wrap it up?

Yeah, I mean, that is a fair assumption. Out of our 44 homes, roughly, 25% of them up close to 100%. if not 100%, and then the other are, you know, call it 95% to 98%. So it is not unusual to see really high occupancy. At a portfolio basis, it remains to be seen what can be sustainable, and I think the idea that it should not stop at 95% is, you know, that's not unreasonable. I think what remains to be seen, what will go to 98% or would the next number be 96%, but I think that remains to be seen as an industry.

Okay, awesome. Thank you, guys, and I'll turn it back.

Thanks so much. Thank you.

The next question comes from Seram Srinivas with Cormark Securities. Your line is open.

Thank you, operator. Good morning, Nathan and David. Just looking at the redevelopments you guys completed, How should we be thinking about the stabilization time? I know here and I know the residents have been coming in. So should we look at probably 12 months when it's 98% or 99%?

Thank you. One of the things which is not well understood is really how well the long-term care redevelopment works, especially after the government funding. So David mentioned on September 7th, we opened our North Bay properties. On day one, you get fully funded. And the expectations from the government is that you will be fully leased up within 60 days, and we are fully leased up in North Bay in 60 days. The Brantford opened in October, and we get full funding on day one, and it would be fully leased up in 60 days. So, in fact, there is no lease up in long-term care. In Brantford, we also have a campus of care which has retirement home attached to it, and that is also leasing quite well.

And when it comes to Banford, it's a mix of both retirement and LTC over there. How does the funding work? Are governments more incentivized to actually provide funding for these kind of projects?

So government's funding is dedicated just to long-term care, and there is a whole mechanism to ensure your expenses, capital expenses are properly allocated just to long-term care. Your operational expenses are properly allocated just to long-term care. So And we have many other campuses, and there are a few others who have campuses. So this is well-established space in the industry.

That makes sense. And maybe my last question around acquisitions. Obviously, you guys have been pretty active both in the retirement as well as LTC space. When you look at the headlines right now, we do see a lot of infrastructure funds or the private players looking into these kind of assets. So when you compete in the market right now, are you seeing a lot more private funds come in? What's the competition like?

Absolutely. And senior living has been a quite competitive space. One of the key factors for us is we know how to operate them. This is not just a pure rental business. Operations are complex. And the fact that we have 15,000 employees, that might be all the real estate companies combined. Just the nature of the work So one of the things that works in our benefit is really understanding the complexity of operations and driving synergies out of it. And this is also a very relationship-focused business. Even though we all compete with each other, a lot of the sector has been around for a while. Relationships are important in this space. And usually when someone is selling, whether it's generational or whether they built it and they want to sell, they want to make sure that they're selling it to people they know can close it. on a timely basis, and because it has a high number of team members and residents involved, they want to make sure that it gets to the right place. So all those things play, and I think instead of me saying that we have been quite successful, you can just look at the numbers. We have been quite successful in getting these acquisitions and closing them.

No, I hope that makes sense. Sorry, I guess one last from me. You know, you obviously mentioned these are operationally intense businesses, and one huge part of that is labor costs. As you get into 26, do you see any bottlenecks from that perspective, and what are the challenges that might come up from the talent sourcing perspective?

You're talking about labor perspective, Saram?

Yeah.

So I would say it's, you know, the industry as a whole has got better from a labor perspective. Immigration helped significantly. Five years ago, we made a major pivot on the whole idea of you take care of your team, they'll take care of your customer, residents, and business will take care of itself. As simple as it sounds, that has had tremendous outcome for us. In the last two years, our turnover is down by 60%, 6-0. So we are hiring a lot many less people. People are staying much longer. And that helps not only from a labor perspective in retirement homes, Helps us drive occupancy. Residents get comfortable. They're referenced more. In long-term care, it's driving less compliance issues, less quality issues. Residents are happy. So we are seeing massive improvements in labor front. And other than some very hard-to-fill areas, we, in fact, have no vacancies across our portfolio.

That's great, Karan. Thank you. I'll turn it back.

Thank you.

The next question comes from Juliano Thornhill with National Bank Capital Markets. Your line is open.

Hey, guys. Good morning, everyone. I'm just wondering what led to the big occupancy uptick in your same property portfolio in August.

Thank you, Juliano. We have been working. The strategy has been the same. We are very, very local. The relationship with the hospitals, the relationship with other healthcare providers word of mouth, all of those things are important. And it is not, frankly, rocket science. The idea is to ensure you have a set of processes and you want to make sure you get done. So the approach we're taking is not to come up with new programs, but be disciplined on the things that we have and to do them well on a regular basis. That applies to a call center. That applies to how we follow up with leads. That applies to the sales cycle. and we are seeing good results with it at the front, and we do expect that to continue.

Okay, so just like on the retirement portion, is that localized to geography at all, or specific to a couple of properties, or is it more just broad-based?

The occupancy gains is broad-based, so it is not that one home increased occupancy significantly and that move the needle, it is we are seeing a consistent increase across majority of our portfolio.

Okay. And then just another question was just on the capital funding program announced by the government last quarter. I'm wondering if that, I guess, revised funding program has led you to consider or improve the ability to pursue your GTA properties, your Class C GTA properties.

It is, Juliana. So we've been studying the new program with great interest. 80% of our properties are within the GTA, and this program significantly improves the funding within the GTA. We're currently completing some of the analysis in terms of which projects would it make sense to proceed with, but our intention would be to proceed with one to two projects in 2026 within the GTA.

How are you deciding on which ones to pursue within the GTA? How are you factoring the land costs into that decision?

One of the things which is quite unique about us is that we own quite a bit of land in GTA, which is usually the most difficult to find. We have been working on these projects for three or four years because the planning process is quite long. We have had four projects, roughly, that we have been nudging along with the intent that one day there would be an appropriate funding and that time has come. So, these projects will be defined where we are in the planning cycle, what the returns are, which one are operationally have the biggest impact. So, for example, we have a couple of homes which will not only solve and build capacity for that site, but in fact, would help us decant another home so we can move all the residents there. So all of those things will go into play. These projects will be bigger than the 160 beds that we've seen in the past. So we would see a material impact of those projects once they're completed.

Okay, thanks. And then just my last question, just on the ATM, how are you guys thinking about that as a funding source? Are you going to anticipate being quite active on that, or are you going to be leaning more on the debt markets for liquidity going forward?

That's a good question, Juliana. So in Q3, we did issue 1.3 million shares under our ATM at an average price of $18.13. We've been quite disciplined in terms of the use of our ATM. We'll consider all forms of capital when we are looking at acquisitions or redevelopment. So we did issue about $24 million on our ATM this quarter, but we also did $175 million in the unsecured debt market because of the attractiveness of the cost of capital there to fund our acquisition. So really we're looking at both, But as it relates to the ATM, we want to make sure that we have specific uses for it as we're issuing shares.

Okay. Thanks, guys.

The next question comes from Pammy Beer with RBC Capital Markets. Your line is open.

Thanks. Good morning. Just coming back to the SAL acquisition, you're buying a non-managing interest at you know, a lower cap rate than what you've done in the past. You know, what made this deal attractive to you versus maybe others in the market? And are there maybe more of these that you expect to do with this vendor?

Thank you, Pami, and good morning. So LaSalle Park is owned by Reichman Senior Housing. We have had a very successful partnership with them, Elgin Falls. We built that home together. They managed for a period of time, and then we will buy that. The 5.75 cap rate is, in fact, not that unusual for really good properties. LaSalle Park is, when I say it's fully occupied, I mean it's not 95, it's closer to 100% occupied. They have strong rental growth. The home is built extremely well, so it will stand the time of competition. And we continue to see good occupancy growth over time. In this case, it was the interest of the the seller to manage it and considering that we have that relationship and we are comfortable with their management, you know, that worked for us. But from a return perspective, we think we will do extremely well in this opportunity.

And then I guess, okay, you mentioned Elgin Falls as well. So is there, you know, are there more of these within their perhaps pipeline that, you know, you might do in like as part of your acquisition protocol over the next year or so?

Yeah, I hope if they ever decide to do more, you know, that they will think of us. Again, I do not know their strategy. Obviously, they have been in this space for a long period of time, and I don't think they're expecting to exit it. This is a one-off opportunity where there were other partners involved and they wanted to sell. And if they have another one, we are hoping that they will consider us first.

Okay. Then just lastly, on the additional care revenue, I think you mentioned that a few times in terms of the source of some of the growth. Can you just expand on what new services are being offered, or is it really just an increase in the volume of maybe the same services that are being offered? I'm just curious if you have a sense of what the growth rate in your service revenue growth has been maybe on a year-to-date basis relative to where it was versus last year.

Absolutely. I think this is, frankly, would be one of the big difference makers for us at Ciena because we are not shy about providing care, and I would say we are quite good at it. So the expertise that we have in long-term care is how do we use that in retirement and not only provide more care but also do it at a price where residents can afford it. So we recently made the change. Jennifer, who led our long-term care, we moved her to retirement. with the intention of how to add the right care services to our retirement living. So the one would be increasing our care services, and we are seeing more and more demand for assisted living and memory care. So that would be one. Second, we looked at pricing of our care. So from 2022 to 2024, our care hours went up significantly, but they were not adding much to the bottom line. We were not pricing it correctly. and we also didn't have the right structure to make sure we can be more efficient, so we have fixed that this year. It is a multi-year strategy because you don't want the big shock to the system. If someone is paying $100, you don't want to change the price to $300. So we will do that over time, so that would change. And then we continue to think about how do we bundle services which are in the best interest of us, team members and residents, and we will do that. So I would say it will be a, Combination of all of those things, and that's why when Jonathan asked the question on just rental rate growth, I think that would be one part of our growth strategy. The other, frankly, is going to come from care services.

Is the care service revenue growing at a faster rate than that blended 4% to 5% that you mentioned?

Absolutely. I mean, the expenses are also a bit higher there, so those numbers go faster. The care revenue is growing significantly faster than anything else. I mean, it started at a low base, but high double digits is the number that it grew in the last few years, and we expect that to continue on. There's a shortage of long-term care beds in every province we are in. Residents need more care. Hospitals are full, and the right place for residents who do not need long-term care should not be in a hospital. They should be in a retirement home. And the idea is how do we make that possible.

Right. Okay. So a lower margin but higher volume growth in that piece of the business.

Yes. Okay. That's all I have. Thanks so much. Thank you, Pammy.

The next question comes from Tal Woolley with CIBC. Your line is open.

Hi, good morning. I joined late, so if some of the stuff's been answered, please tell me to go look at the transcript. I'm just curious how you see acquisition pricing playing out over the next couple of years. I think for the last five years, anytime we've talked about retirement assets, basically the going-on cap rate's been kind of plus or minus 6%. you know, with your stock prices rising, with the sector, you know, occupancy tightening up, how do you think about the movement of deal pricing expectations goes over the next couple years?

We would see increased competition in the deal space, which is a good thing because that keeps the values high and also, again, goes to the idea of that there is this This sector is not going away anytime soon. There has been significant growth in this space, and as we talked about before, this is the beginning of next 25 years. It would always be competitive, and all the deals that we have closed this year, whether it was our Alberta portfolio or the properties in Ottawa or the property in Waterloo or the one in Mississauga or the one in Burlington, they were all heavily competed against. We don't always get all of them. but we get our fair share. And it's just making sure the deal structure is right for the vendor, our ability to do other things, being flexible with our approach. So a lot of those things go into play. And you're right, it has been stuck at 6% for a while. And for Class A properties, 5.75 is not an unreasonable number. And our Highgate property, for example, in Waterloo, We bought it for around $430,000 a door, and the construction cost for our Brantford property was close to $500,000 a door, and even though it was a much bigger home with long-term care. So it's still significantly below replacement cost.

And in terms of your overall appetite, is the constraining factor capital availability, or are there some real operational management constraints in terms of what you can take on in a given year?

I think it's a combination of all of those things, but the fact we're sitting at $813 million of development acquisition is not by accident. This is our biggest year so far, and our view is this is not an anomaly. We should expect that going forward. And we spend a lot of time on our structure beginning of this year, making sure the right people are working on the right things, because what we don't want to do is have acquisitions derail our operations, and we've seen that in the results, that not only we're acquiring and developing, but our operational results continue to stay strong. So the structure work that we did in the beginning of this year has worked out extremely well for us, and we'll continue to tweak it so we do that work. So I would say we continue to see more and more opportunities. That pipeline stays extremely strong, and I think we'll continue to find opportunities both in development and acquisitions.

And then just lastly on the LaSalle Park transaction, I think if I'm doing my math right, $700,000 a door, give or take. That's probably your most expensive transaction on a per door basis?

It is. And this is, again, one of the things that you factor in is obviously the per door number. The second is how much NOI is it generating. And that home does extremely well. And per door number, for example, not all suites are the same. We have property we bought in Ottawa where the price was close to $300,000 a door. Those suites are on half the size of what LaSalle Park are. The suite mix is quite a bit different, and the location is quite a bit different. So the $700,000 is pretty close to replacement cost in some cases, but it comes fully leased up, and it's an incredible part of Burlington.

And I appreciate you've got the management contract in place. Long term, are these the types of sort of higher value assets, something you guys are interested in playing in more seriously?

Well, absolutely. I mean, we have those today. We've bought the two Waterford properties in Ottawa and Kingston many years ago. We just bought Hazel Bean, which is an $85 million home, 170 suites, around $500,000 a door. Our properties in B.C. are of high end. So our model is we have three different kind of properties, call them the St. Regis of the world, which have full services, a lot more amenity, the full service, call it the Sheraton of the world, and I'm using these because I came with a hotel background. And then we would have some which are in smaller communities, which are limited services, and that's exactly what the residents need. So I would say we have those three tiers, and we're very comfortable with with operating all those three tiers, acquiring all those three tiers, and building all those three tiers.

And do you have any, like, particular view on, like, where the demand ultimately is going to lie as this market, you know, really starts to grow in terms of, you know, the population?

That is such an interesting question because, you know, you would think that all this demand would be – In the big cities, such as Toronto and Vancouver, which is true, these markets continue to be very strong. But having said that, we see very strong demands in Waterloo market. We just bought Highgate, as we talked about. We have two other properties there. They're running close to 100% full. Our market in BC is very, very strong. Even our properties in Oshawa, we have a home that we did a strategic renovation, and that's running close to 100%. So I would say there is going to be demand all over. So the whole idea that there are not enough places for seniors to live, we are seeing that play out. So other than some very, very specific markets or very, very specific locations, I think you will see occupancy gains all around.

Okay. Thanks very much, Nitin.

Thank you, Kyle. Thanks for joining.

The next question comes from Tom Callahan with BMO Capital Markets. Your line is open.

Thanks, Operator. Good morning, guys. Maybe just one for me on the balance sheet. Obviously, there's significant opportunity ahead on both the internal and external growth for the business. So I'm just kind of curious to get your thinking on the balance sheet from a leverage perspective. Is there kind of a debt to EBITDA you have in mind and think about on kind of a run rate basis? And conversely, if the right external opportunity pops up and it's a bit chunkier, where are you comfortable leverage-wise?

Yeah, that's a great question, Tom. From a debt-to-EBITDA perspective, we've been talking about the last couple of years being under eight times debt-to-EBITDA. We realize that currently our debt-to-EBITDA is at 8.8 times, but I would point out the fact that that's at a moment in time because the debt is as of September 30th, whereas the EBITDA is a trailing 12 months. So if we looked on a pro-forma basis, we would find that our debt to EBITDA on a run rate basis would be under eight times. And that's where we would feel comfortable over the medium term. If something chunky came up and we really liked it, we might temporarily go up above that point. But over the medium term, we'd like to get back down under eight times.

Okay. That makes sense. Appreciate it. I'll hop back. Thanks, guys.

Your next question is a follow-up from Juliano Thornhill with National Bank Capital Markets. Your line is open.

Hey, guys. Sorry, I just had one follow-up. Of the acquisitions you've done here to date, how have they, the integration, has that really met your expectations or is it tracking ahead? And I guess, like, occupancy, margin, and why?

Thank you. And I think that's when we talk about our ability to close and I think most people think doing the acquisition is the most difficult part, and I would just argue that I think competitively operating is a lot more difficult. And this is where we are really seeing great success. In Alberta, for example, the four properties, they're in fact running ahead of schedule. We had some income support which we've withdrawn and expect to give it back to the owners, which is a win-win. And the two properties we bought in Ottawa, One of them had an earn-out structure for the seller, and we would be giving them an earn-out structure, and we share that so the property is doing better than what we expected it to be. The home we just bought in Mississauga, which is a long-term care home, it's full. We know that extremely well. So on day one, we add synergies, and it's going to perform better than what we underwrote. And Nicola Lodge, the home we bought in B.C., we already owned a majority of it, so that fit extremely well. And when the others close, we do expect them to perform because of the work that we do to make sure we underwrite it correctly and then how do we integrate it.

All right. Thank you. Thank you, Nitin.

This concludes the question and answer session and does conclude today's conference call. We thank you for joining. You may now disconnect.