Q: Your comments on 3rd quarter results please.
5i Research Answer:
Adjusted revenue increased by 5.6%, and the company focused on operating efficiencies which led to NOI growth and a double-digit increase in Operating Funds from Operations. Its occupancy grew by 2.5% in Long-Term-Care, and during the quarter it paid down credit facilities, increased its liquidity, and extended its weighted average term to maturity of debt. Higher interest rates may increase its interest expenses in the coming years, but management still expects 1.0% to 1.5% growth in its 2023 operating margins in its retirement segment. These results were OK, but the company does trade at a high valuation and has a high debt load with a net debt/EBITDA ratio of 8.9X. We feel this will take some time to see positive momentum.