Sienna Senior Living Inc.

Ladies and gentlemen, welcome to Ciena Senior Living Inc's Q4 2025 conference call. Today's call is hosted by Nitin Jain, President and Chief Executive Officer, and David Hung, Chief Financial Officer and Executive Vice President, Investments of Ciena Senior Living Inc. Please be aware that certain statements or information discussed today are forward-looking and 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+, and can be found on the company's website, cianaliving.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 turn the call to Mr. James. Please go ahead, Mr. James.

Thank you, Audra. Good morning, everyone, and thank you for joining us today. 2025 was a year of long-term value creation for Ciena. We added over $800 million of assets to our platform, ended the year with strong organic growth for the 12th consecutive quarter, and enhanced Ciena's balance sheet with the continued support of the capital markets. We issued nearly $700 million of equity and debt, with each issuance being met with strong investor demand. We also expanded our workforce by adding approximately 2,000 team members, and further deepen our impact in the communities we serve. These achievements have increased the scale and quality of Ciena's diversified platform and positioned the company well for continued growth at a compelling time in Canadian senior living. During the fourth quarter, both operating platforms delivered strong results and contributed a successful finish to the year. Same property NOI increased by 15.4% in the retirement segment and by 5.6 percent in long-term care. Key driver of the double-digit increase in the retirement segment were the continued occupancy increase and rental rate growth. Average same-property occupancy was up by 180 basis point year-over-year and has reached 94.7 percent in the fourth quarter. Following the quarter, monthly occupancy was 95.2 percent in January. The result of CNA's retirement segment also reflect higher care revenue. We apply our expertise in clinical care at our retirement platform, which allows residents to stay with us longer as their care needs change. Beyond the strong same property performance in our retirement segment, we are pleased with the results of the company's optimization portfolio. This portfolio includes assets that are undergoing renovations, changes in service offerings, or the addition of new services. Occupancy increased by 790 basis point year-over-year in the optimization portfolio in Q4, and NOI grew by 22.1%. Our focus on better positioning assets within the local markets is clearly delivering results. Additional key driver behind the strong performance of retirement operations are robust sales platform and focused marketing campaigns. Year-over-year, call center leads grew by over 50% in the fourth quarter, and the number of tours in our properties have increased each quarter in 2025. We also maintain a robust focus on hospital outreach and excellent relationships with healthcare partners in the local communities where we operate. All of these initiatives are expected to drive strong lead generation and future movements. With respect to Ciena's long-term care operations, fully occupied homes with growing wait lists, high revenue from private accommodations, and annual inflationary government funding increases all added to the strength of the results. Ciena's government-funded long-term care operations add significant value to our business and provide stability given that they are largely insulated from market volatility or economic uncertainty. Now moving to slide six. In Q4, we started to see the contributions from two recently completed development projects. We opened our redeveloped long-term care community in North Bay in September, followed by our campus of care in Brantford in October. Large-scale development projects require deep expertise and trusted partnerships. With both in place, we are excited to move forward with our next project, which will be our first in the City of Toronto. Located at our existing Glen Rouge site in Scarborough, it will be Siena's largest project to date, with 448 beds and an estimated development cost of about $250 million. The development yield for this project is approximately 7.5% to 8%. After several years of planning, the significant government funding improvements for projects in the GTA were a key driver for us to move forward. The Glen Rouge redevelopment, which is expected to be completed in 2030, will replace 363 existing beds and add 85 much-needed new beds in the Scarborough community. With this development, we will further modernize and strengthen Ciena's Ontario's platform and support the continued growth of companies' long-term care business. 2025 has been a very active year on the acquisition front. With the acquisition of 10 properties across three provinces, we added nearly 1,800 beds and suites to our asset base. During the fourth quarter, you finalized three acquisitions in Ontario, including Kawartha Gardens, a 192-bed long-term care community, and LaSalle Park, a 123-suite retirement residence, both located in the Greater Toronto Area. In addition, we acquired Highgate, a 213-suite retirement residence in Waterloo, Ontario. These acquisitions added $193 million of assets during the final quarter of 2025, and we carried the growth momentum into 2026. Since the beginning of the year, we added another $79 million through acquisitions. We finalized the purchase of interest in two of our majority-owned properties in Ontario and British Columbia and signed a purchase agreement for the Bartlett, a 129-suite retirement residence in the Greater Toronto Area, for approximately $59.4 million, which will be financed with cash on hand. Ciena's acquisition pipeline remains strong and we are confident to continue our significant acquisition pace in 2026. Moving to our team members, as we continue to grow, investing in Ciena's team members is fundamental to our success. With over 15,000 employees, we recognize the importance of programs that support the company's growing workforce. Ciena's strong culture of ownership and engagement played a key role in the continued reduction in turnover. Average company-wide turnover has reached record level low of approximately 19% in 2025. Along with programs focused on team member development, recognition, and rewards, our initiatives also resulted in the fifth consecutive year of increased team member engagement and further strengthened Ciena's operations. It puts us in a strong position to attract and retain the best in Canadian senior living. We are extremely proud of these achievements that reinforce our belief that if we take good care of our team members, they will provide exceptional service to our residents and support the company's strong operating performance. Our focus on enhancing the work experience for CNS team members and improving resident quality of life is reflected in our most recent accreditation results from CARF, where we maintained the highest achievement status and exceeded every benchmark. This commitment is also evident in the continued improvement in the company's Net Promoter Score, which measures residents' likelihood to recommend our homes. Since introducing this measure at our retirement residences in 2023, scores have increased by well over 30% each and every year. With that, I'll 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 Q4 2025, revenue on a proportionate basis increased by 14.2% year-over-year to $278.4 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, increased private accommodation revenue, and additional revenue from acquisitions and developments completed in 2025. Same property NOI increased by 10.1% to $47.4 million in Q4 2025, including by 15.4% in our retirement segment and by 5.6% in our long-term care segment. In the retirement segment, same property NOI increased by $3 million in Q4 2025 compared to last year, largely as a result of improved occupancy and rate growth. In addition, higher care revenue and maintaining a strict focus on operating expenses supported the year-over-year 300 basis point improvement in our same property operating margin. We are also making good progress with respect to our asset optimization initiatives, which included five assets in the company's retirement portfolio. Q4 NOI in the optimization portfolio increased by over 22% year-over-year compared to the same period in 2024. Effective January 1, 2026, we updated the composition of the optimization portfolio and included two additional assets while returning one asset to our same property portfolio after its successful renovation. Occupancy in this property increased from the low 80% range before its renovation to over 95% today. Based on the updated same property portfolio composition, average monthly occupancy reached or exceeded 95% since last September. In the long-term care segment, same property NOI increased by $1.3 million. Continued improvements in private occupancy were the key driver behind the year-over-year growth. During Q4 2025, operating funds from operations increased by 24% to $34.2 million compared to last year, primarily due to higher NOI as a result of organic growth in addition to contributions from acquisitions and developments completed in 2025. Adjusted funds from operations increased by 19.8% to $27.9 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 7.5% and 3.9% respectively in Q4 2025. 2025 AFFO payout ratio was 80.7% compared to 83.1% in Q4 2024. This improvement highlights Ciena's strong operating results and the disciplined use of capital the company raised to fund its growth. Ciena delivered consistently strong results throughout 2025. In line with Ciena's 2025 growth targets, same property NOI for the full year increased by 14.3 percent in the retirement segment and by 4.8 percent in long-term care. In addition, CNS strong results are reflected in the company's OFFO and AFFO in 2025, which increased by 27.1 percent and 25.7 percent, respectively, or by 5.8 percent and 4.7 percent on a per-share basis. Moving to slide 12, Throughout 2025, Ciena maintained a strong financial position and balance sheet. We ended the year with over $500 million in liquidity and $1.5 billion of unencumbered assets. We continue to have access to a broad range of capital and demand for Ciena's equity and debt remains exceptionally strong. To support Sienna's growth momentum and refinance our debt, we issued $250 million of unsecured debentures in December, and we repaid our $175 million expiring debenture. With this repayment, the company has no major debt maturities until 2027. We also fully deployed our at-the-market distribution program, issuing shares for gross proceeds of approximately $101 million in Q4. And just yesterday, we announced the renewal of the ATM program. This allows the company to issue another $150 million of shares to finance its continued growth initiatives. We will carefully evaluate each opportunity and continue to finance Ciena's growth in a very disciplined manner. With that, I will turn the call back to Nitin for his closing remarks.