01:06 PM EDT, 10/17/2024 (MT Newswires) -- Sienna Senior Living ( LWSCF ) announced the acquisition of 540 continuing care suites spread across four homes in Alberta for $181 million ($336k/suite) at a 6.5% cap rate. Since the recent equity deal in August, National Bank has been expecting Sienna to make an acquisition.

The quoted yield within the Sienna release does not include any potential upside if the Alberta Health Services were to announce funding increases to compensate operators for inflationary pressures recently experienced. "Assuming the AHS were to award operators with a similar increase as the MLTC did in Ontario, we estimate the accretion from this deal could improve to ~4%," National Bank said.

Sienna is rated Outperform, with a $19 target at National Bank.

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