Investor Presentation June 2019 Cautionary Note Certain - - PowerPoint PPT Presentation

June 2019

Investor Presentation

Sienna Senior Living

Cautionary Note

2

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).

Our Compa Our Company ny & & Investment Highlig Investment Highlights hts

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Sienna Senior Living

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Sienna at-a-glance

Sienna Sienna Senior Livi Senior Living Inc ng Inc. . is is one of

• ne of Canada's

Canada's leadi leading ng owners

• wners and

and

• perato
• perators

rs of

• f seniors

seniors' ' resi esidenc dences es wi with hi th high q gh quality a uality ass ssets ets in gr in great eat loca locations. tions.

230%+

Total Shareholder Return since IPO Market Cap

~$2.2B

Enterprise Value

12,000+ $0.92

Annualized Dividend/Share

~$1.2B

Dedicated Team Members

Retirement Residences (RR) Long Term Care (LTC)

5 22 22

70 70 ow

• wned hi

high h qua uali lity res esidences (~ 10 10,100 0 bed eds/s /suit ites) + 17 17 man anaged res esid idenc nces (~ ~ 1,9 1,900 00 bed eds/suit ites)

Managed Residences (RR and LTC)

4 13 13 8 35 35

47 47

years of operations

Sienna Senior Living

Why Why Sienna? Sienna?

Well established in a sector with significant demand and barriers to entry Strong seniors living operating platform High quality portfolio in key markets Strong financial position with an A (low) bond rating Robust development pipeline

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Sienna Senior Living

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Industry Fundamentals

Strong industry fundamentals in Sienna’s key markets Compelling demographics

With ith th the 75+ 75+ age group proje jected to to gr grow

• w on avera
• n average

ge ~3.9 ~3.9% % ov

• ver

r the the next xt 20 ye years rs

Incr Increasi easing af ng affluen fluence a ce among mong se seni niors

• rs

As s hous housing ma ing market rkets s have ve so soar ared ed ov

• ver

the the past st tw two

• deca

cades, in incr creasin ing many y seniors’ net worth

Hi High gh bar barrie riers t rs to

• entry

entry

In a highly highly regul egulat ated ed industr industry tha that t requires lice licensi sing and exp xperie ienced

• p
• pera

rator

• rs

Conti Continuou nuous s mar market adj ket adjus ustments tments

Within ithin a fra fragmented se secto tor tha that t is is co contin inuously ad adjusting justing to th

• the

e fast fast-pa paced ced gr growt

• wth in seniors’ living

Sienna Senior Living

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Increasing demand for Seniors Living for Canadians

• Vacancy rates in Sienna’s key Retirement markets

(Ontario & British Columbia) have decreased significantly over the past 5 years

Statistics Canada - Table: 17-10-0057-01

12. 12.8% 9. 9.9% 7. 7.2% 2. 2.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2013 2014 2015 2016 2017 2018 Ontario British Columbia Mark arket t vac acancy rate ates (Reti etirement)

• Ontario LTC waitlist of ~32,000
• LTC average time to placement is 146 days in Ontario

Senior Living Demand & Supply

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2018 2020 2025 2030 2035 2040

Estim stimated Po Popula latio ion in n Can anada's 80+ 80+ Ag Age Coho hort

Population (000's)

Sienna Senior Living

Our Our Strategy Strategy & & Goals Goals

Grow the company Enhance the operating platform Maintain a strong balance sheet

Retirement acquisitions Development of campuses (RR/LTC) Organic growth Provide great resident experience Build a high performing team and great culture Optimize leverage Increase liquidity Maintain favourable credit rating

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Sienna Senior Living

9 Total

• tal NOI $41.

$41.5M Total

• tal Beds

Beds/S /Suite tes: : 4,42 4,423 ~5,0 5,000 Emp Employe yees Total

• tal NOI ~$1

$156M Total

• tal Beds

Beds/S /Suite tes 10, 10,091 ~12 12,0 ,000 Emp Employe yees

Funded 94% 94% Oth ther 6% 6%

201 2010 IPO IPO NOI I Mix Ret etir irement Funded unded 50% 50%

Med ediu ium-term ob

• bje

jective e

(by by 202 2022)

Portfolio Transformation

• Care is paid for by the government with extensive wait lists
• Residents pay co-payment; rate is set annually by regulatory body
• Eligibility determined by third party
• Market-driven rates
• Supply varies by market

Funded Retirement (Private-pay)

Reti tirement 46% 46% Funded 54% 54%

Q1 1 201 2019 Ann Annuali lized NOI I Mix

Sienna Senior Living

• 50%

0% 50% 100% 150% 200% 250%

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

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241.4 .4% Tot

• tal

l Retu turn | 27.8% CAGR 205.3 .3% | 25.0% CAGR 48.0% | 8.2% CAGR S&P/T /TSX Capp pped d REIT 160.6% | 21.1% CAGR

Note: Total return is defined as investment return from dividends and stock price appreciation

S&P/T /TSX Low

• w Vola

latilit ility y 131.7% % | 18.3% CAGR

Industry-leading Share Performance

S&P S&P/TSX /TSX Co Composite te Index ndex

Sienna Senior Living

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%

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2018 Highlights

Lowered debt to gross book value by 190 190 bps bps to 47 47.7% .7%

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Sienna Senior Living

Our Culture and Values

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Vision ision Mission Mission

To awaken our communities to the positive possibilities of life’s next chapters To help you live fully, every day

Cor Corpor porate te Cul Cultur ture Values alues

Respect • Passion • Teamwork

• Responsibility • Growth
• Sie

Sienna Se Senior r Livi iving named one of Canada’s Mos

• st

t Admired Co Corp rpora rate Cu Cultures.

Sienna joins a prestigious club of past winners:

Sienna Senior Living

Senior Senior Executive Executive Team eam

Lois Cormack

Director, President & CEO

Nitin Jain

Chief Financial Officer & Chief Investment Officer

Joanne Dykeman

Executive Vice-President, Operations

Olga Giovanniello

Executive Vice-President, People & Culture

Lisa Kachur

Executive Vice-President, Operations

Cristina Alaimo

Vice-President, General Counsel 13

Nancy Webb

Vice-President, Marketing & Communications

Sienna Senior Living

Boar Board o d of f Dir Directors ectors

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Dino Chiesa

Chair and Director

Lois Cormack

Director

• Jack. C. MacDonald

Director

Janet Graham

Director

Paula Jourdain Coleman

Director

Stephen Sender

Director

Brian Johnston

Director

BW: I asked Ruth for a better picture

Str Strong

• ng Operating

Operating Platfor Platform

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Sienna Senior Living

$63.2 $64.3 $72.0 $85.4 $88.4

2014 2015 2016 2017 2018

$17.4 $19.7 $26.1 $32.7 $62.8

2014 2015 2016 2017 2018

Operating Performance

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Retirement NOI I ($M)

260% 260%

since 2014

Strong operating performance driven by organic growth & acquisitions

LTC NOI ($M)

40% 40%

since 2014

Sienna Senior Living

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Consistent margin uplift since 2014 as a result of increasing retirement portfolio with higher margins

NOI Margin Growth

18% 18% 20% 21% 24% 22% 23% 27% 28% 42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%

2014 2015 2016 2017 2018 NOI Margin Retirement Mix

Sienna Senior Living

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Strong value creation through same-property growth

NOI Same-Property Growth

3.4% 3.4%

5-year r Same-Property ty NOI I Grow

• wth

2.5% 4.2% 3.8% 3.7% 2.7% 0.9% 0.7%

• 0.2%

0.2% 2.3%

2014 2015 2016 2017 2018

Sienna Peer Group*

*Peer group comprised of Canadian REITs that have been public during the same period as Sienna

Sienna Senior Living

$1.40

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60

2014 2015 2016 2017 2018

OFFO/Sha OFFO/Share

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6.6%

5-year average annual growth rate

Consistent Improvements in OFFO

REIT Industry returns flat

• ver comparable period*

*Comparison includes 27 REITs that report OFFO per share

Sienna Senior Living

Key focus on quality of care and resident safety

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Quality Care

Outperform

Provincial and National averages on publicly reported quality indicators

Over 80%

Residence and Family Satisfaction Scores in 2018 Thr Three ee Year ear Ac Accreditati editation

• n

Fr From

• m CARF Cana

CARF Canada da

99% of quality standards met at all Ontario communities (Oct 2016)

Highest Highest Disti Distinc nction tion Awar warded ded

For BC LTC Communities (Jul 2018)

Financial Financial Highli Highlights ghts

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Sienna Senior Living

Financial Summary

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LTC TC Same Property NOI Reti Retirement ement Same Property NOI Consol Consolid idated ated Total NOI Consol Consolid idated ated Same Property NOI

(1) 2018 same property results exclude HST refund of $1.3M received in Q1 of 2018 (2) Excluding the impact of the statutory holiday, our long-term care segment delivered stable 1.9% growth in Q1 2019

5.4%

2017 $ $ 32.7 32.7M 2018 $ $ 34.5 34.5M

7.3%

Q1 2018 $11. $11.0M Q1 2019 $11. $11.8M

28.0%

2017 $ $ 118. 118.1M 2018 $ $ 151. 151.2M

20.1%

Q1 2018 $32. $32.4M Q1 2019 $38. 38.9M

2.7%

2017 $ $ 118. 118.1M 2018 $ $ 121. 121.2M

5.4%

Q1 2018 $31. $31.1M Q1 2019 $32. 32.8M

1.6%

2017 $ $ 85.3 85.3M 2018 $ $ 86.7 86.7M

4.3%

Q1 2018 $20. $20.1M Q1 2019 $21. $21.0M

( 1 ) ( 1 ) ( 1 ) ( 2 )

Sienna Senior Living

Funds from Operations

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* Includes mark-to-market adjustment of share based compensation. Excluding adjustment, OFFO would be 34 cents and AFFO would be 37 cents

Di Diluted uted Operat Operatin ing g Funds unds from Operations per share Dilut Diluted ed Adjus Adjusted ted Funds Funds from Operations per share

4.2%

2017 $1.3 $1.32 2018 $1.4 $1.40 2017 $1.4 $1.40 2018 $1.4 $1.44

2.6%

Q1 2018 $0.3 $0.31 Q1 2019 $0.3 $0.32* Q1 2018 $0.3 $0.34 Q1 2019 $0.3 $0.35

6.0% 2.5%

Di Divi vidend end Incr ncrease ease in in August 2018 of 2.0% to ~$0.92/share (annualized)

Sienna Senior Living

Strong financial position

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Inte nteres est t Co Coverage erage Rati Ratio Deb Debt t to to Gr Gross Boo Book V k Value lue Deb Debt t to to Adj Adjus usted ted EBITD BITDA Sienna has a 3.8% Weighted Average Cost of Debt and 4.4 Yrs Weighted Avg. Term to Maturity DBRS Reassigned Their A (low) Rating With Stable Outlook On The Series B Debentures. Deb Debt t Ma Maturi turiti ties es

Serie ries B B De Debentures

$92 92M $63 63M $33 335M $33 33M $61 61M $44 446M 2019 2020 2021 2022 2023 Thereafter

Serie ries B B De Debenture res 3.4x 3.5x 3.7x 3.9x 3. 3.8x

2015 2016 2017 2018 2019 Q1

7.8x 7.9x 7.4x 6.9x 7.1x

2015 2016 2017 2018 2019 Q1

55.6% 51.5% 49.6% 47.7% 47.8 .8%

2015 2016 2017 2018 2019 Q1

Sienna Senior Living

Acquisitions

25 Pr Prope

• perty

ty Bed Beds/S s/Suit ites Key Key met metri rics cs

Ros Rosew ewood d Ret Retirement ement Resi Residenc dence

Kingston, ON

68 suites

Kawart awartha ha Lakes Lakes Ret Retirement ement Resi Residenc dence

Bobcaygeon, ON

93 suites

Wat aterfo erford d Ret Retirement ement Resi Residenc dences es

Barrie & Kingston, ON

384 suites

Gl Glenmo enmore e Lodg Lodge

Kelona, BC

118 beds

77%(1) interest for purchase price of $26M 7.0% cap rate Purchase price of $10M 7.25% cap rate Purchase price of $21M 7.1% cap rate Purchase price of $164M 6.0% cap rate Waterf rford Ret etirement Res esid idences Bar arrie and and Kingsto ton,

, ON

ON 10 10-pr propert perty y portfo portfolio

Various locations, ON

1,245 suites

Purchase price of $382M 6.1% cap rate

2017 & 2018

(1) Includes 16% interest acquired in 05/2018

Sienna Senior Living

• Sienna positioned to redevelop its ~2,200 Class B&C portfolio to create senior

living campuses

• Senior living campuses will combine LTC as the anchor with private pay Retirement

Residences in key locations

• Estimated Investment Cost of $750 - $850M*
• Phase One Plans: Development of ~1,000 LTC beds and addition of over 500

new retirement suites of senior senior li living ving campuses ampuses (IL/AL/LTC) at an estimated cost of $750 $750M M - $850M $850M

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Senior Living Campuses (IL/AL/LTC)

Growth Through Development

*Note: A portion of the LTC construction costs are funded by the MOHLTC with base funding of $16.65/bed/day for 25 years (~$350M).

Sienna Senior Living

3,224 3,684 Current Pro Forma

Phase One Development Returns

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~$5M

NOI Contribution

Grow

• wth

th in in RET RET

~$8M

NOI Contribution

+14%

Grow

• wth

th in in LTC TC

Return Retirement Long Term Care

Shar Shareholder r Valu alue Crea eati tion

~7.5-8%

Development Yields

Private Beds

Class B/C ($18.00 PRD)

Private Beds

Class A ($26.04 PRD)

Pro Forma Current

Suites Suites

Driving a Meaningful

NAV Increase

De Develo lopmen ent of

• f 1,000 L

1,000 LTC TC Beds Beds, , wi with 60% 60% mix of

• f

Pri rivate vate Roo Rooms

Sienna Senior Living

Intensification Development Opportunities

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• ~50 suite expansion at Island

Park Retirement Residence, Campellford on track to be completed by mid-2019

• Exce

Excess ss land land well positioned for future expansion

Isl sland d Par Park k

(under construction)

Pr Propert rty Location

Lincoln Park Grimsby, ON Kingsmere Alliston, ON Kawartha Lakes Bobcaygeon, ON Lakeview Kelowna, BC

Sienna Senior Living

Gr Growth

• wth Outlook

Outlook

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• Di

Disci scipli plined ned approach with focus on high quality, accretive acquisitions in Canadian key markets ORGANIC GROWTH DEVELOPMENT ACQUISITIONS

• Strategic development that complements existing

platform

• Re

Retir tiremen ement t – Mid single digit NOI growth

• LTC – NOI growth to remain stable

Sienna Senior Living

Contact Information

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Sienna Sienna Senior Living Inc.

302 Town Centre Blvd, Suite 300 Markham, ON L3R 0E8 t: (905) 477-4006 e:investors@siennaliving.ca

siennaliving.ca

Lois Lois Cor Cormac mack

President & Chief Executive Officer t: t: (905) 415-7612 e: e: Lois.Cormack@siennaliving.ca

Ni Nitin tin Ja Jain in

Chief Financial Officer & Chief Investment Officer t: t: (905) 489-0787 e: Nitin.Jain@siennaliving.ca

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