Welcome to the Sienna Senior Living 2026 Annual Meeting of Shareholders. I will now turn the call over to Shelly Jamieson, Chair of the Board of Sienna Senior Living.
Good morning, everyone, and welcome to The Annual Meeting of Shareholders of Sienna Senior Living. My name is Shelly Jamieson. I am Chair of the Board of Directors of Sienna, and I will act as the Chair of today's meeting. I would like to thank our shareholders who have taken the time to join us today. We appreciate your continued confidence in Sienna and our ability to meet the needs of Canada's aging population. With me today, in addition to the executive team members who I will introduce shortly, are all of the members of the Board who are also standing for election at this meeting. I am pleased to introduce Barbara Bellissimo, Paul Boniferro, Dr. Gina Parvaneh Cody, Nitin Jain, Brian Johnston, and Stephen Sender. It is my honor to serve with these dedicated board members. 2025 was a year of significant value creation for Sienna.
This comes at a time the senior living sector is experiencing fast-growing demand. Canada's aging population is no longer a future trend. It's a present reality. The oldest baby boomers are now turning 80, and over the next 10 years, Canada's population over 85 is expected to increase by 65%. As a result, demand for senior living will continue to accelerate. At Sienna, this demographic shift is not new to us. We've been planning for it, building the platforms, services, and capacity required to serve today's seniors and the next generation who will entrust us with their care. The long-term fundamentals of our sector are expected to remain exceptionally strong for years to come, and Sienna is well positioned to meet this growing need. A key strength of Sienna is our diversified business model, from government-funded long-term care to private pay retirement living and seniors' apartments.
This model supports both stability and growth. On behalf of the board, I would like to recognize Sienna's 15,500 team members who are at the core of everything we do for our residents. Team members, the majority of whom are also shareholders, have a direct stake in our success. By living our values and our purpose of cultivating happiness in daily life, they help make Sienna an exceptional place to live and work. We thank them for the vital role they play in serving Canadian seniors. We also recognize the leadership of our President and Chief Executive Officer, Nitin Jain, along with the executive and senior leadership teams. Executing on our strategy requires a specific kind of leadership, one that combines operational rigor, clinical expertise, hospitality expertise, and a clear growth mindset.
We have built a leadership team equipped to deliver on growing our footprint in Canadian senior living, expanding our services, and supporting residents as their needs evolve over time. With that, I will now turn to the formal business of today's meeting. The format for today's meeting will be divided into two parts. First, I will deal with the formal aspects of the meeting, following which there will be a management presentation by our President and Chief Executive Officer, Nitin Jain, and our Chief Financial Officer and Executive Vice President, Investments, David Hung.
Adam Walsh, our General Counsel, Executive Vice President, Legal, and Corporate Secretary, will assist us throughout the meeting. Before we begin, please be aware that certain information to be presented or discussed today may be forward-looking. If you logged into the webcast, I refer you to the cautionary note on the presentation slide. The cautionary note applies to our presentation and discussions this morning. For everyone else, I pause here while the note is read.
Thanks, Shelly. Certain information in this presentation may contain forward-looking information. Actual results could differ materially from conclusions, forecasts, or projections in the forward-looking information. 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 risks that may 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 annual information form. In addition, the presentation contains certain non-GAAP financial measures. These items are defined in Sienna's management discussion and analysis, which is available on Sienna's website and on SEDAR+.
I will now begin with the formal part of the meeting. I now call the meeting to order. With the consent of the meeting, Adam Walsh, the company's Corporate Secretary, will act as secretary of the meeting, and Jennifer Hough of Broadridge will act as Scrutineer for today's meeting. The secretary of the meeting has advised me that we received the affidavit of mailing from Broadridge, confirming that the notice calling the meeting and related material were provided to shareholders of record on the record date for the meeting. With the consent of the meeting, I will dispense with the reading of the notice calling the meeting. The secretary of the meeting has advised me that a quorum is present for the meeting based on shareholders we know to be in attendance, including by proxy and documented in the preliminary report of the scrutineer.
A final report will be prepared and filed as part of the record of the meeting. On this basis, I declare the meeting to be properly constituted for the transaction of business. Voting results for resolutions to be voted on today will be formally announced by press release following the meeting. Based on reporting by the Scrutineer, the designated proxy holder for the meeting is holding proxies demonstrating voting in an abundance of favorability for all matters to be voted on. Accordingly, we will try to move through the formal meeting items quickly. To make the best use of our time, we have designated shareholders that will move and second each of the meeting matters. The first item of business is the presentation of the consolidated financial statements of Sienna for the period ended December 31st, 2025, and the related auditor's report.
A copy of the financial statements was provided to those shareholders who requested them, and the statements are available electronically on the company's website and on SEDAR+. Shareholders are not being asked to take any action regarding the statements, but if any shareholder has questions relating to the financial statements, they may be sent to Sienna's investor relations team. The address is investors@siennaliving.ca. We will now proceed with the election of directors. The management circular sets out information for the seven nominees for election to the board. Since I am advised that no further nominations were received by the company prior to the advance notice deadline in the company's articles, the following are the seven director nominees: Barbara Bellissimo, Paul Boniferro, Dr. Gina Parvaneh Cody, Nitin Jain, Brian Johnston, Stephen Sender, and myself, Shelly Jamieson. All corporations listed on the Toronto Stock Exchange are required to elect directors individually.
Consistent with this requirement, shareholders have been provided with the opportunity to vote or withhold their vote for each nominee on an individual basis. In addition, and consistent with Sienna's commitment to its governance practices, the board has adopted a majority voting policy. Under that policy, a director is required to tender his or her resignation if he or she is elected with more votes withheld than are cast in favor of his or her election. Based on the proxies received for the election of directors, none of the nominees have to tender their resignation under Sienna's majority voting policy. In light of this, I propose that we proceed with a motion to elect the nominees. May I have a motion for the election of directors?
Good morning. My name is Ali Mir. I am the Executive Vice President, Long-Term Care Operations and a shareholder of the company. Chair, I move for the election of the seven nominees as directors.
My name is Olga Giovanniello. I am the Chief Human Resources Officer and Executive Vice President, and a shareholder of the company. Chair, I second the motion.
Thank you. We will now vote for the election of directors. Any registered shareholder or duly appointed proxy holder who has not yet voted or who wishes to change their vote with respect to the election of directors, may do so now by clicking on the vote here button on the web portal and following the instructions. The proxies received for the voting of directors show an abundance of favorability for the election of each nominee.
The motion is carried. I declare Barbara Bellissimo, Paul Boniferro, Dr. Gina Parvaneh Cody, Nitin Jain, Brian Johnston, Stephen Sender, and myself, Shelly Jamieson, duly elected as directors of Sienna Senior Living to hold office until the next annual meeting of the shareholders or until successors are duly elected or appointed. We will now proceed with the appointment of auditors and the authorization of the board to fix their remuneration. The directors, on the recommendation of the audit committee, propose that Deloitte LLP be reappointed as the auditors of Sienna, and that the directors be authorized to fix their remuneration. May I have a motion for such appointment and authorization?
I so move.
I second the motion.
Any registered shareholder or duly appointed proxy holder who has not yet voted or who wishes to change their vote with respect to the appointment of the auditor, may do so now by clicking on the vote here button on the web portal and following the instructions. The proxies received show an abundance of favorability for the resolution. Accordingly, the motion is carried. I declare that Deloitte LLP are reappointed as the auditors of Sienna, and that the directors are authorized to fix their remuneration. The next item of business is to hold a non-binding advisory vote on the company's approach to executive compensation. The full text of the advisory resolution is set forth in the management circular.
Since the vote is advisory, it will not be binding on the board, but the Compensation Governance and Nominating Committee of the company will take into account the results of the vote when considering future executive compensation arrangements. I would now ask for a motion to be made to approve the resolution to hold a non-binding advisory vote on the approach to executive compensation as set out in the management circular.
My name is Karen Au-Yeung. I'm the Vice President, Taxation and Treasury, and a shareholder of the company. Chair, I move to approve the resolution to hold a non-binding advisory vote on the approach to executive compensation.
My name is Rachael Lee. I'm the Vice President, Operations Finance, and a shareholder of the company. Chair, I second the motion.
Any registered shareholder or duly appointed proxy holder who has not yet voted or who wishes to change their vote with respect to the resolution to hold a non-binding advisory vote on the approach to executive compensation may do so now by clicking on the Vote Here button on the web portal and following the instructions. The resolution is required to be passed by the affirmative vote of a majority of the votes cast at the meeting.
The proxies received show an abundance of favorability for the resolution. Accordingly, the motion is carried. I declare that the non-binding advisory resolution on the approach to executive compensation, as set out in the management circular, is passed by the affirmative vote of a majority of the votes cast. Now that everyone has had the opportunity to vote, I declare the polls closed. Thank you everyone. We've now completed the formal part of the meeting. If there's no further business, I will ask for a motion to terminate the meeting.
I so move.
I second the motion.
I declare the motion carried and the annual meeting of shareholders of Sienna Senior Living adjourned. On behalf of management and the board, I would like to thank all of you for attending today. This concludes the formal part of the meeting. Before I invite Nitin and David to present, I want again to express my gratitude, and that of my board colleagues, for the tireless efforts of every member of the Sienna team.
Their high engagement is central to our ability to deliver exceptional care and service to residents and drive operational excellence across our platforms. Each day, team members bring the Sienna team purpose to life and play a critical role in advancing the Sienna team strategy. I'd also like to thank my fellow board members and our shareholders for their continued trust and support. We look forward to this next growth-focused chapter at Sienna. With that, I'll now turn it over to Nitin and David.
Thank you, Shelly. Good morning, everyone, and thank you for joining Sienna's annual meeting. I'm pleased to speak to you today about what we've achieved over the past year and the significant opportunities that lie ahead for us. 2025 was a year of exceptional long-term value creation and growth. We accomplished the strategic goals we set out for, from our financial performance to operational improvements and to the most significant platform expansion in the company's 54-year history. Over the course of the year, we acquired 10 properties, welcomed thousands of new team members and residents, and completed the company's first redevelopments. Today, approximately 15,500 team members and 13,500 residents work and live at our communities. These accomplishments put Sienna in a strong position for continued growth at a compelling time for Canadian senior living.
Moving to slide 11, across Canada, demand for our services and care continues to grow as a result of an aging population. Baby boomers are driving the largest and longest lasting surge in seniors. This year, the oldest baby boomers are turning 80, representing the next generation seeking senior living options. At the same time, new supply is expected to remain limited in the years ahead, following a period of record low senior housing construction starts. Supply is also being reduced by older properties that are becoming obsolete. Together, these trends are increasing the pressure on the broader healthcare system. Hospitals face growing capacity constraints, and many seniors who could be cared for in more appropriate settings remain in hospital beds. This environment reinforces the important role senior living providers play and creates a compelling opportunity for Sienna to meet the growing demand.
In an environment where scale matters, we have an opportunity to grow our platform across the full continuum of care. In 2025, we acted on that opportunity, growing through acquisitions and redevelopments ranging from independent living to long-term care. We entered the Alberta market with a portfolio transaction of four continuing care homes, expanded in Ontario with the acquisition of a long-term care community and five retirement residences, and we took full ownership in a property in British Columbia. We also completed our first long-term care redevelopment, located in North Bay and a campus of care in Brantford, Ontario. With strong momentum on our side, we continued our platform growth in 2026 with nearly CAD 200 million of acquisitions closed or under contract. These transactions exemplify that we are in a unique position to invest across the full continuum of care to scale our business.
The real impact of Sienna's business model comes to life in the experience it creates for residents and families. One such example is at our Brantford campus, a development we completed last year. Cathy lives independently at Aspira Brant's Landing, while her husband requires a higher level of care and moved into Oakwood Commons, our long-term care community next door. Brant's Landing and Oakwood Commons are connected, this couple that requires different levels of support can live within the same property without being separated. They are not unique. There are three other couples at our Brantford campus living this way today. As we grow our company, we remain deeply focused on making continued enhancements to our operations. We have the ability to leverage our deep experience in clinical care and hospitality across both of our long-term care and retirement platforms while taking advantage of shared services and scale.
In retirement living, residents are arriving with higher care needs, and families are looking for homes that can support them as those needs change over time without requiring another move. At the same time, the first wave of baby boomers is moving into senior living with very different expectations around lifestyle, hospitality, and services. We are preparing for this shift by ensuring our residences are well-positioned to meet what this next generation of seniors need and expect. In long-term care, our resident care circle approach combines services excellence and quality clinical care with a greater focus on hospitality. Our strong third-party accreditation results validate how we operate. They are a reflection of these efforts and of our team members who show up every day with professionalism and compassion. As leaders in senior living, our ability to recruit and retain team members has never been stronger.
Our employees are the driving force behind the high-quality services and care we provide to approximately 13,500 Canadian seniors. We will continue to invest in our team members so that they are empowered to deliver exceptional resident experiences every day. We recognize that a strong culture of ownership and engagement is fundamental to achieving this. That is why our initiatives range from town halls that foster learning and connections, leadership development to recognition, and share ownership programs, through which shares have been awarded to over 12,000 team members. In 2025, we expanded the program to award team members additional shares as they celebrate milestone work anniversaries. Team members like Anna Maria, who served residents at Sienna's Rockcliffe Community in Scarborough as a dietary aide for 50 years before retiring at the beginning of this year.
Through the SOAR for Service program, Anna received additional shares and took part in opening the Toronto Stock Exchange last June in celebration of Sienna's 50-year anniversary on the TSX. This was a defining moment for all of us at Sienna. Team members have been telling us that Sienna's culture of ownership makes them feel truly recognized and, just as important, helps them see a long-term future with us. The results show it. Sienna's team member engagement is at an all-time high. For the third year in a row, turnover declined and reached a record low of less than 20% in 2025. All of this played a significant role in not only reducing costs, but improving both the team member and resident experience alike. With that, I'll turn it over to David.
Thank you, Nitin, and good morning, everyone. 2025 has been a defining year of growth for Sienna. For the third year in a row, operating results grew across both lines of business. Same-property net operating income increased by 14.3% in the retirement segment and by 4.8% in long-term care. Our long-term care homes are fully occupied with growing wait lists. Supporting the long-term care operations were government funding increases and higher preferred accommodation revenues. In our retirement segment, rising demand, coupled with limited new supply and our focused marketing and sales campaigns, were the key drivers of the occupancy gains in 2025, which increased to 93.4% for the full year and reached 94.7% in the fourth quarter of 2025. In addition, higher care revenue and maintaining a strict focus on operating expenses supported the strong results across our retirement platform.
We ended 2025 with the 12th consecutive quarter of year-over-year growth in same-property net operating income, a trend that continued in the first quarter of 2026. The financial strength of our company is also reflected in Sienna's balance sheet, liquidity, and capital markets activity. We closed out 2025 with a net debt to gross book value of 40.7%, over CAD 500 million of liquidity, and approximately CAD 1.5 billion of unencumbered assets. In terms of our capital markets activity, we successfully used the equity and debt markets throughout the year to raise approximately CAD 700 million of capital to support our growth initiatives and to refinance expiring debt. Each of these capital market activities was highly sought after by investors. One of the highlights of 2025 was the completion of our development projects in North Bay and Brantford, Ontario.
With no lease-up risk, the long-term care redevelopments immediately contributed to Sienna's financial performance after opening last fall. At our Brantford location, we also opened a 147-suite retirement residence as part of a campus of care, which is currently in lease-up. We have one retirement redevelopment project under construction in Keswick, Ontario, which is expected to be completed in the second half of 2027. We are also getting ready to start construction at Sienna's first project in the city of Toronto later this year, where we are redeveloping a 448-bed long-term care community at our existing Glen Rouge site. Glen Rouge is one of several projects in our nearly 1,700-bed pipeline.
Over 80% of our planned redevelopments are in the GTA, where new funding has significantly improved the development fundamentals. Each completed redevelopment will modernize and strengthen our long-term care platform, help address the growing need for modern long-term care beds in Ontario, and contribute to the continued growth of our business. With that, I will turn the call back to Nitin for his closing remarks.
Thank you, David. In 2025, Sienna received a recognition from Time Magazine as one of Canada's best companies. We owe this recognition to our team members who bring our purpose of cultivating happiness and life each and every day, work tirelessly to make our communities the best places to live and work, and take great pride in being part of Sienna. Team members like Anita, who works as a server at one of our retirement homes in Aspira Barrie View in Barrie, Ontario. When she found 30 centimeters of snow blocking her car this past winter, rather than turning back, she walked nearly five kilometers in the early morning hours to make sure residents received their breakfast on time.
All our team members at Sienna's Trillium Community in Kingston, which had made it possible for Ron, a resident at the community, to travel to Calgary to visit his daughter and meet his grandson for the very first time. For many, this seemed like a simple family visit, but for residents living in long-term care, a journey like this can feel almost impossible. Our team looked beyond the logistics and challenges. They focused on what matters most to Ron, and they made it happen. These are the moments that define Sienna. Team members who show up through the night shifts, the early mornings, and the storm days, and who understand what matters most to each and every resident.
As we continue to grow, this commitment will remain at the center of who we are, not only providing quality care and services, but creating communities where residents' happiness is part of daily life and makes the moment we share together better. I would like to conclude by recognizing our team members who make Sienna's success possible and inspire us each and every day.
We are deeply grateful and want to thank you for your commitment to living Sienna's value and for your efforts and passion you bring to your roles. To our valued shareholders, we appreciate your ongoing support, and we look forward to delivering on our strategic plan. To our board of directors, I want to extend our deep appreciation for your guidance and unwavering commitment to the company. I will now turn the meeting over to Nancy Webb, Executive Vice President, Corporate Affairs and Marketing, to facilitate the questions and answer portion of the meeting.
Thank you, Nitin. If you've not yet submitted a question but wish to do so, please do so now by submitting your questions through the Ask a Question text box provided on the web portal. As a reminder, only shareholders or duly appointed proxy holders in attendance at the meeting will be able to ask questions. Our first question is, I read the annual report and couldn't find any information on the directors. How do I access information before next year so I can make informed choices?
Yes. Thanks, Nancy, for that question, and thank you for joining the meeting. The meeting materials, including the director biographies and their attendance record, are all set forth in the management information circular. The circular can be referenced at our website at siennaliving.ca or at SEDAR+. Further information regarding our directors and leadership team can be found on our website. If you'd like a printed copy of the circular, please send us your contact details at legalnotice@siennaliving.ca.
Thank you. Our next question is, do you have any concerns about future staffing and agency costs?
Thank you, Nancy. Staffing has been a big challenge since 2020. We find ourselves today at one of the best places for staffing. Our turnover is at an all-time low, at less than 20%. Our employee engagement is now in top 5% of companies globally, which we are very proud of. Last year at that employee survey, we had more than 85% participation.
Our employees are telling us what is working and telling us what we need to change to continue to make a place at Sienna a better place to work. Our agency cost, which used to be significant, and we're trending close to CAD 50 million a year, are now tracking to less than 1% of our overall labor cost and close to CAD 5 million a year. This is an area we'll continue to focus on, but at this stage, we find ourselves at one of the best places as it relates to staffing and resources.
Thank you, Nitin. What regions are you planning to grow in, and does that include any new products?
We are in four provinces today, in Ontario, British Columbia, Saskatchewan, and Alberta, we continue to find opportunities in all these four provinces to grow, including significant development opportunities in Ontario of long-term care. One of the provinces that we're also looking into expansion is Quebec, which Quebec has more than 50% of retirement homes in all of Canada. When we find the right platform, we will look for the right opportunity to enter that province.
The next question is, what is the reasoning behind the ATM program and how is it going?
Yeah. Thank you for that question. The at-the-market program is a very important part of Sienna's broader capital strategy, and it provides us with flexibility as we continue to grow the business. In 2025, Sienna fully deployed its CAD 125 million at-the-market program, and in Q1 of 2026, we again fully deployed an additional CAD 150 million of our ATM program, and it really reflects the strong investor demand for the company shares. The capital that were raised through the ATM program has helped support our acquisitions as well as our development growth strategy over the past year, and it also supports our balance sheet strength. What we really like about the at-the-market structure is that it allows Sienna to raise capital in smaller increments over time, and that flexibility helps us align capital raising more closely with the timing of our acquisitions and our development spend.
Thank you, David. There are no further questions. This concludes the Sienna Senior Living 2026 annual meeting of shareholders. Thank you for attending. You may now disconnect.