Latest news with #BrandonRibar
Business Wire
a day ago
- Business
- Business Wire
Sonida Closes Two Previously Announced Senior Living Asset Acquisitions
DALLAS--(BUSINESS WIRE)--Sonida Senior Living, Inc. ('Sonida' or the 'Company') (NYSE: SNDA), a leading owner, operator and investor in senior living communities, announced today the closing of its latest acquisitions. The Company continues to execute on its inorganic growth strategy, which aims to further expand, densify and upgrade its portfolio to fully leverage operating scale and efficiencies. 'Sonida remains focused on executing its disciplined growth strategy through thoughtful deal structuring and careful selection of high-quality communities purchased at meaningful discounts to replacement cost,' said Brandon Ribar, President and Chief Executive Officer. 'With no material near-term debt maturities and continued favorable demographic and supply dynamics, we continue to capitalize on compelling and accretive investment opportunities to complement the significant upside potential in our existing portfolio.' Senior Housing Community Acquisition in Atlanta Submarket On June 1, 2025, the Company finalized the acquisition of a single senior living community in the Atlanta MSA for $11 million, or approximately $125,000 per unit, reflecting a significant discount to replacement cost. The upscale and amenitized asset has 88 units (64 Assisted Living / 24 Memory Care) and was completed in 2017. The community is located in Alpharetta, a high-growth submarket of Atlanta with favorable demographics and is strategically situated near Sonida's recently acquired Atlanta assets, further leveraging operating scale through cost efficiencies, local resource pooling and enhanced marketing presence. Consistent with the Company's strategy of regional densification, the acquisition brings Sonida's greater Atlanta portfolio total to four assets. Sonida funded the transaction with cash on hand and proceeds from its senior secured revolving credit facility. The Company expects a double-digit cap rate upon stabilization. Senior Housing Community Acquisition in Tampa Submarket On May 30, 2025, the Company finalized the acquisition of a single senior living community in an affluent and growing submarket of Tampa. The asset, completed in 2017, was purchased for $11 million, or approximately $172,000 per unit, reflecting a significant discount to replacement cost. The community is located in Tarpon Springs, a high-growth submarket of Tampa, and complements Sonida's recently acquired central Florida assets. The asset has 64 Memory Care units in a high-end purpose-built plant with significant amenity space thoughtfully designed for memory care specific needs. Sonida will implement its Magnolia Trails TM personalized memory care programming and services to activate the community while leveraging its regional sales and marketing support to drive occupancy. Consistent with the Company's strategy of regional densification, the acquisition brings Sonida's Florida portfolio total to eight assets. Sonida funded the transaction with cash on hand and a new $9 million non-recourse mortgage from the asset's existing lender. The loan has an initial 3-year term with two 1-year extensions and carries an interest rate of SOFR + 0%, which will step up by 1% in years 2 and 3 and end at SOFR + 3% if the Company elects the extension. The Company expects a double-digit cap rate upon stabilization. Safe Harbor The forward-looking statements in this press release, including, but not limited to, statements relating to the Company's acquisitions, are subject to certain risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under 'Item. 1A. Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the 'SEC') on March 17, 2025, and also include the following: the Company's ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short and long-term debt obligations and to fund the Company's acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities; elevated market interest rates that increase the cost of certain of our debt obligations; increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in immigration or overtime laws; the Company's ability to obtain additional capital on terms acceptable to it; the Company's ability to extend or refinance its existing debt as such debt matures; the Company's compliance with its debt agreements, including certain financial covenants and the risk of cross-default in the event such non-compliance occurs; the Company's ability to complete acquisitions and dispositions upon favorable terms or at all, including the possibility that the expected benefits and the Company's projections related to such acquisitions may not materialize as expected; the risk of oversupply and increased competition in the markets which the Company operates; the Company's ability to maintain effective internal controls over financial reporting and remediate the identified material weakness discussed in Item 9A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; changes in reimbursement rates, methods or timing of payment under government reimbursement programs, including Medicaid; risks associated with current global economic conditions and general economic factors such as elevated labor costs due to shortages of medical and non-medical staff, competition in the labor market, increased costs of salaries, wages and benefits, and immigration laws, the consumer price index, commodity costs, fuel and other energy costs, supply chain disruptions, increased insurance costs, tariffs, elevated interest rates and tax rates; the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis; the Company's ability to maintain the security and functionality of its information systems, to prevent a cybersecurity attack or breach, and to comply with applicable privacy and consumer protection laws, including HIPAA; and changes in accounting principles and interpretations. About Sonida Dallas-based Sonida Senior Living, Inc. is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults. The Company provides compassionate, resident-centric services and care as well as engaging programming at our senior housing communities. As of June 1, 2025, the Company owned, managed or invested in 96 senior housing communities in 20 states with an aggregate capacity of approximately 10,150 residents, including 83 owned senior housing communities (including four owned through joint venture investments in consolidated entities, and four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company managed on behalf of a third-party.
Associated Press
a day ago
- Business
- Associated Press
Sonida Closes Two Previously Announced Senior Living Asset Acquisitions
DALLAS--(BUSINESS WIRE)--Jun 9, 2025-- Sonida Senior Living, Inc. ('Sonida' or the 'Company') (NYSE: SNDA), a leading owner, operator and investor in senior living communities, announced today the closing of its latest acquisitions. The Company continues to execute on its inorganic growth strategy, which aims to further expand, densify and upgrade its portfolio to fully leverage operating scale and efficiencies. 'Sonida remains focused on executing its disciplined growth strategy through thoughtful deal structuring and careful selection of high-quality communities purchased at meaningful discounts to replacement cost,' said Brandon Ribar, President and Chief Executive Officer. 'With no material near-term debt maturities and continued favorable demographic and supply dynamics, we continue to capitalize on compelling and accretive investment opportunities to complement the significant upside potential in our existing portfolio.' Senior Housing Community Acquisition in Atlanta Submarket On June 1, 2025, the Company finalized the acquisition of a single senior living community in the Atlanta MSA for $11 million, or approximately $125,000 per unit, reflecting a significant discount to replacement cost. The upscale and amenitized asset has 88 units (64 Assisted Living / 24 Memory Care) and was completed in 2017. The community is located in Alpharetta, a high-growth submarket of Atlanta with favorable demographics and is strategically situated near Sonida's recently acquired Atlanta assets, further leveraging operating scale through cost efficiencies, local resource pooling and enhanced marketing presence. Consistent with the Company's strategy of regional densification, the acquisition brings Sonida's greater Atlanta portfolio total to four assets. Sonida funded the transaction with cash on hand and proceeds from its senior secured revolving credit facility. The Company expects a double-digit cap rate upon stabilization. Senior Housing Community Acquisition in Tampa Submarket On May 30, 2025, the Company finalized the acquisition of a single senior living community in an affluent and growing submarket of Tampa. The asset, completed in 2017, was purchased for $11 million, or approximately $172,000 per unit, reflecting a significant discount to replacement cost. The community is located in Tarpon Springs, a high-growth submarket of Tampa, and complements Sonida's recently acquired central Florida assets. The asset has 64 Memory Care units in a high-end purpose-built plant with significant amenity space thoughtfully designed for memory care specific needs. Sonida will implement its Magnolia Trails TM personalized memory care programming and services to activate the community while leveraging its regional sales and marketing support to drive occupancy. Consistent with the Company's strategy of regional densification, the acquisition brings Sonida's Florida portfolio total to eight assets. Sonida funded the transaction with cash on hand and a new $9 million non-recourse mortgage from the asset's existing lender. The loan has an initial 3-year term with two 1-year extensions and carries an interest rate of SOFR + 0%, which will step up by 1% in years 2 and 3 and end at SOFR + 3% if the Company elects the extension. The Company expects a double-digit cap rate upon stabilization. Safe Harbor The forward-looking statements in this press release, including, but not limited to, statements relating to the Company's acquisitions, are subject to certain risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under 'Item. 1A. Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the 'SEC') on March 17, 2025, and also include the following: the Company's ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short and long-term debt obligations and to fund the Company's acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities; elevated market interest rates that increase the cost of certain of our debt obligations; increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in immigration or overtime laws; the Company's ability to obtain additional capital on terms acceptable to it; the Company's ability to extend or refinance its existing debt as such debt matures; the Company's compliance with its debt agreements, including certain financial covenants and the risk of cross-default in the event such non-compliance occurs; the Company's ability to complete acquisitions and dispositions upon favorable terms or at all, including the possibility that the expected benefits and the Company's projections related to such acquisitions may not materialize as expected; the risk of oversupply and increased competition in the markets which the Company operates; the Company's ability to maintain effective internal controls over financial reporting and remediate the identified material weakness discussed in Item 9A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; changes in reimbursement rates, methods or timing of payment under government reimbursement programs, including Medicaid; risks associated with current global economic conditions and general economic factors such as elevated labor costs due to shortages of medical and non-medical staff, competition in the labor market, increased costs of salaries, wages and benefits, and immigration laws, the consumer price index, commodity costs, fuel and other energy costs, supply chain disruptions, increased insurance costs, tariffs, elevated interest rates and tax rates; the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis; the Company's ability to maintain the security and functionality of its information systems, to prevent a cybersecurity attack or breach, and to comply with applicable privacy and consumer protection laws, including HIPAA; and changes in accounting principles and interpretations. About Sonida Dallas-based Sonida Senior Living, Inc. is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults. The Company provides compassionate, resident-centric services and care as well as engaging programming at our senior housing communities. As of June 1, 2025, the Company owned, managed or invested in 96 senior housing communities in 20 states with an aggregate capacity of approximately 10,150 residents, including 83 owned senior housing communities (including four owned through joint venture investments in consolidated entities, and four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company managed on behalf of a third-party. For more information, visit or connect with the Company on Facebook, X or LinkedIn. View source version on CONTACT: Investor Relations Jason Finkelstein IGNITION IR [email protected] KEYWORD: UNITED STATES NORTH AMERICA GEORGIA FLORIDA TEXAS INDUSTRY KEYWORD: HEALTH CONSUMER RESIDENTIAL BUILDING & REAL ESTATE SENIORS MANAGED CARE CONSTRUCTION & PROPERTY SOURCE: Sonida Senior Living, Inc. Copyright Business Wire 2025. PUB: 06/09/2025 08:30 AM/DISC: 06/09/2025 08:28 AM
Yahoo
a day ago
- Business
- Yahoo
Sonida Closes Two Previously Announced Senior Living Asset Acquisitions
Completes purchases in Atlanta and Tampa submarkets for a combined purchase price of $22 million DALLAS, June 09, 2025--(BUSINESS WIRE)--Sonida Senior Living, Inc. ("Sonida" or the "Company") (NYSE: SNDA), a leading owner, operator and investor in senior living communities, announced today the closing of its latest acquisitions. The Company continues to execute on its inorganic growth strategy, which aims to further expand, densify and upgrade its portfolio to fully leverage operating scale and efficiencies. "Sonida remains focused on executing its disciplined growth strategy through thoughtful deal structuring and careful selection of high-quality communities purchased at meaningful discounts to replacement cost," said Brandon Ribar, President and Chief Executive Officer. "With no material near-term debt maturities and continued favorable demographic and supply dynamics, we continue to capitalize on compelling and accretive investment opportunities to complement the significant upside potential in our existing portfolio." Senior Housing Community Acquisition in Atlanta Submarket On June 1, 2025, the Company finalized the acquisition of a single senior living community in the Atlanta MSA for $11 million, or approximately $125,000 per unit, reflecting a significant discount to replacement cost. The upscale and amenitized asset has 88 units (64 Assisted Living / 24 Memory Care) and was completed in 2017. The community is located in Alpharetta, a high-growth submarket of Atlanta with favorable demographics and is strategically situated near Sonida's recently acquired Atlanta assets, further leveraging operating scale through cost efficiencies, local resource pooling and enhanced marketing presence. Consistent with the Company's strategy of regional densification, the acquisition brings Sonida's greater Atlanta portfolio total to four assets. Sonida funded the transaction with cash on hand and proceeds from its senior secured revolving credit facility. The Company expects a double-digit cap rate upon stabilization. Senior Housing Community Acquisition in Tampa Submarket On May 30, 2025, the Company finalized the acquisition of a single senior living community in an affluent and growing submarket of Tampa. The asset, completed in 2017, was purchased for $11 million, or approximately $172,000 per unit, reflecting a significant discount to replacement cost. The community is located in Tarpon Springs, a high-growth submarket of Tampa, and complements Sonida's recently acquired central Florida assets. The asset has 64 Memory Care units in a high-end purpose-built plant with significant amenity space thoughtfully designed for memory care specific needs. Sonida will implement its Magnolia TrailsTM personalized memory care programming and services to activate the community while leveraging its regional sales and marketing support to drive occupancy. Consistent with the Company's strategy of regional densification, the acquisition brings Sonida's Florida portfolio total to eight assets. Sonida funded the transaction with cash on hand and a new $9 million non-recourse mortgage from the asset's existing lender. The loan has an initial 3-year term with two 1-year extensions and carries an interest rate of SOFR + 0%, which will step up by 1% in years 2 and 3 and end at SOFR + 3% if the Company elects the extension. The Company expects a double-digit cap rate upon stabilization. Safe Harbor The forward-looking statements in this press release, including, but not limited to, statements relating to the Company's acquisitions, are subject to certain risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under "Item. 1A. Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the "SEC") on March 17, 2025, and also include the following: the Company's ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short and long-term debt obligations and to fund the Company's acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities; elevated market interest rates that increase the cost of certain of our debt obligations; increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in immigration or overtime laws; the Company's ability to obtain additional capital on terms acceptable to it; the Company's ability to extend or refinance its existing debt as such debt matures; the Company's compliance with its debt agreements, including certain financial covenants and the risk of cross-default in the event such non-compliance occurs; the Company's ability to complete acquisitions and dispositions upon favorable terms or at all, including the possibility that the expected benefits and the Company's projections related to such acquisitions may not materialize as expected; the risk of oversupply and increased competition in the markets which the Company operates; the Company's ability to maintain effective internal controls over financial reporting and remediate the identified material weakness discussed in Item 9A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; changes in reimbursement rates, methods or timing of payment under government reimbursement programs, including Medicaid; risks associated with current global economic conditions and general economic factors such as elevated labor costs due to shortages of medical and non-medical staff, competition in the labor market, increased costs of salaries, wages and benefits, and immigration laws, the consumer price index, commodity costs, fuel and other energy costs, supply chain disruptions, increased insurance costs, tariffs, elevated interest rates and tax rates; the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis; the Company's ability to maintain the security and functionality of its information systems, to prevent a cybersecurity attack or breach, and to comply with applicable privacy and consumer protection laws, including HIPAA; and changes in accounting principles and interpretations. About Sonida Dallas-based Sonida Senior Living, Inc. is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults. The Company provides compassionate, resident-centric services and care as well as engaging programming at our senior housing communities. As of June 1, 2025, the Company owned, managed or invested in 96 senior housing communities in 20 states with an aggregate capacity of approximately 10,150 residents, including 83 owned senior housing communities (including four owned through joint venture investments in consolidated entities, and four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company managed on behalf of a third-party. For more information, visit or connect with the Company on Facebook, X or LinkedIn. View source version on Contacts Investor Relations Jason FinkelsteinIGNITION IRir@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 Sonida Senior Living Inc Earnings Call
Jason Finkelstein; Investor Relations; Sonida Senior Living Inc Brandon Ribar; President, Chief Executive Officer, Director; Sonida Senior Living Inc Kevin Detz; Chief Financial Officer, Executive Vice President; Sonida Senior Living Inc Ronald Kamdem; Analyst; Morgan Stanley Operator Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Senada Senior Living Q1 2025 earnings call. (Operator Instructions). Thank you. I would now like to turn the call over to Jason Finkelstein, Investor Relations. Please go ahead. Jason Finkelstein Thank you, operator. All statements made today, May 12, 2025, which are not historical facts, may be deemed to be forward-looking statements within the meaning of Federal Securities laws. The company expressly disclaims any obligation to update these statements in the future. Actual results or performance may differ materially from forward-looking statements. Certain factors that can cause actual results to differ are detailed in the earnings release that the company issued earlier today, as well as in the reports that the company files with the SEC from time-to-time, including the risk factors contained in the annual report on Form 10-K and quarterly report on Form 10-Q. Please see today's press release for this full safe harbor statement which may be found in the 8-K filing from this morning at the company's Investor Relations page found at investors. Please note that during this call, the company will present non-GAAP financial measures for reconciliation of these non-GAAP measures to the most comparable GAAP measure, please see today's earnings release. If you'd like to follow along during today's call, you can find Sonita's first quarter 2025 earnings presentation at in the Investor Relations section. In addition, we've included supplemental earnings information within our presentation consistent with the prior quarter release. At today's call, I am joined by President and CEO, Brandon Ribar; and Chief Financial Officer Kevin Detz. At this time, I'd like to turn the call over to Brandon for opening remarks. Brandon Ribar Thanks, Jason. Good morning and thank you all for joining us on our First Quarter earnings call. 2025 is off to a strong start with encouraging momentum across each of our strategic objectives. Our top priority remains driving community performance through tailored operating plans and detailed execution. Growth in our same store portfolio continued along a strong trajectory fueled by operational discipline that drove improvements in occupancy, resident rates, and margins. Additionally, accelerated operating performance in the acquisition portfolio further demonstrates the benefit of our owner, operator, investor platform. Finally, our strategic inorganic growth plan remains on track, and we are excited to announce two new acquisitions expected to close in the second quarter. Both reflecting our focus on deploying capital accretively and strategically. Entering the year, we outlined a plan to deliver year-over-year net operating income growth in line with the high end of our peers. slide 5 in the investor presentation summarizes our first quarter performance highlights. Our same store portfolio NOI grew by 19.3% year-over-year, and the acquisition portfolio NOI increased 31.3% sequentially from Q4 2024. Together this generated a total portfolio NOI growth of 37.6% year over year. Our Q1 annualized NOI for the acquisition portfolio implies a 9.1% yield on cost, excluding the one unopened asset acquired at year end. Additionally, we achieved a portfolio-wide 6.6% average renewal rate increase on March 1st, impacting nearly 70% of our resident base. and directly supported by our excellent resident satisfaction and our team's ability to offer a high value experience to our residents. These rate increases are consistent with the levels we achieved in 2024 and position the business for further NOI growth during the course of the year. Occupancy improved 100 basis points year-over-year in our same store portfolio and 70 basis points sequentially from Q4 in our acquisition portfolio, including the communities purchased in 2024, many of which required significant operational turnarounds. Our total company occupancy of 84.7% provides substantial margin and revenue upside as we continue to stabilize the portfolio. Lead volume increased across our same store portfolio by 7% in the first quarter, and we remain highly focused on conversion tactics to support higher move in volume. These efforts are supported by our highly engaged resident base, programming, and access to health and wellness services across each of our product types. Our average length of stay, a key metric for understanding velocity of resident turnover, has remained stable over the last year. Allowing leadership to plan labor needs more effectively and tailor sales and marketing strategies to backfill vacancies. Investments in our clinical health information system, resident fall detection, nurse call, and employee scheduling will be fully implemented by Q3 this year. Further enhancing our clinical and operating infrastructure, benefiting both resident services and our business intelligence and reporting capabilities. Lastly, over the past two years, we have invested in our employees and introduced leadership incentive plans focused on aggressively reducing employee turnover. These investments resulted in our lowest total company turnover percentage for a quarter since we began tracking this metric, and we are seeing further reduction in the second quarter. I'll now turn the call over to Kevin for detailed discussion of our Q1 financial performance. Kevin Detz Thanks Brandon. Before I discuss our first quarter operating results, I wanted to identify a change in the composition of our portfolio categories as seen on slide 11. Beyond the same store and acquisition portfolios that we've previously reported on, we will now add a repositioning portfolio for assets that are undergoing significant renovations and or business model changes. As more fully described later in the presentation, we have identified five such assets for strategic repositioning to capture a higher rate private pay customer base. This repositioning will require tailored operating platform changes and medium range capital reinvestment plans. These communities will be excluded from our same store until these strategic plans have been fully executed. Starting on slide 12 with the same store comparison of year-over-year quarters, the company drove up occupancy 100 basis points to 86.8%. Coupled with a 5.5% RevPOR increase over the same period, annualized same store revenues increased $16 million or 7.4%. With 65% of the increased revenues flowing through to NOI, the company grew same store NOI by 19.3% and realized a 27.6% margin, a 280-basis point increase of the 24.8% posted in the first quarter of last year. Moving on to slide 13. Our 2024 acquisition communities continue to deliver strong sequential growth. Note that these figures contemplate the at share results of our two joint venture investments and exclude the December 30th first acquisition of our Airy Hills community, which is scheduled to open later this year. Comparing to the fourth quarter of 2024, occupancy gained 70 basis points and RevPOR increased by 2.3%. The full impact of the rate profile is temporarily muted by the disparate timing of when the previous operators pushed through their last resident rate increases. We expect the rate increase profile to align more with our same stored rate trajectory once all communities are in a full annual renewal cycle. Again, using sequential quarters for the acquisition communities that share, resident revenue grew $5.2 million on an annualized basis, with nearly 80% of this growth flowing through to NOI. This resulted in 31.3% NOI growth and a 26.3% NOI margin, a 450 basis point increase from the fourth quarter when the company was onboarding 10 communities from the October and November acquisitions. As we move through the year, the operating team will be focused on continued integration of Sonida's operating platform to unlock additional value from these acquisitions. On slide 14, we've laid out similar metrics on the total portfolio, which rolls up the same-store portfolio, the acquisition portfolio and the repositioning portfolio that Brandon will touch on in more depth shortly. Note that the overall decrease in year-over-year occupancy is simply attributed to the addition of acquisition communities at lower average occupancy and that were not included in the first quarter 2024 results. With another successful annual rate renewal completed in March, the total portfolio's NOI margin of 25.7% would expand further with a full quarter's impact from these elevated rental rates. Moving ahead to slide 16. On a same-store basis, the average annual rent renewal on March 1 was 6.9%, which was applicable to 71% of the total residents. When comparing to the previous quarter last year, the blended private pay and Medicaid rate increased 4.9%. We believe another strong year of resident rate increases combined with the 100-basis point occupancy expansion is a continued testament to the value Sonida provides to our residents and their loved ones. The company continues to expand its level of care revenues with an annualized year-over-year increase of $1.8 million or 13.6% on its same-store portfolio. This was driven by strong and wide adoption of our recently introduced software system that helps us track resident usage of clinical staff resources to better price our services. Additionally, and 2024, the company modified its memory care pricing structure to introduce a level of care surcharge that appropriately differentiates the degree of care being provided by our staff. Both the utilization of our clinical software and new pricing structure led to immediate value creation across the recently onboarded acquisition communities. Diving into more of the margin drivers, we will move ahead to slide 17 to discuss operating expense trends. As a percent of revenue, total labor, excluding benefits for the first quarter decreased 110 basis points as compared to the same quarter in 2024. This relative decrease in labor yielded 71% and incremental flow-through on the additional revenue for the same period and is reflective of continued stabilization of total hours work and average hourly wage profile. This flow-through profile is anchored by a strong employee base with increasing year-over-year retention, as Brandon referenced in his earlier comments. On the nonlabor expense front, absolute costs increased only $200,000 from Q1 2024 to Q1 2025. This is largely the result of our ability to hold fixed cost increases to inflationary levels in areas such as insurance and real estate taxes, while also utilizing the total portfolio scale to drive down our per unit cost profile in areas such as food and service contracts. Closing out the P&L for this quarter's earnings, our G&A has shown stabilization following the onetime build-out of our business development and operational excellence functions in 2024 to support the overall growth initiatives of the company. This quarter's strong operating results from our acquisition portfolio were tied directly to our team's ability to swiftly integrate these communities into the Sonida operating model. G&A, excluding non-cash stock compensation expense, and one-time transaction severance costs decreased $200,000 from $7.7 million recognized during the fourth quarter. Notwithstanding material acquisitions, the company's goal is to continue to maintain its current G&A composition. Moving to the balance sheet on slide 18. Our total debt at shares comprised of 61% fixed rate debt. Without the inclusion of the company's secured credit facility, the weighted average rate is 5.2%, with the variable rate debt nearly fully hedged. With the inclusion of the credit facility, the weighted average interest rate is 5.4% for the portfolio. Currently, the company has $90 million of capacity remaining under its facility with approximately $43 million immediately available as of the end of the quarter. The company anticipates an increase in availability as the underlying borrowing base assets securing the facility continued to expand their NOI profile. The company continues to execute on its long-term strategy of delevering the balance sheet with a target of seven times based on acquisition NOI stabilization, continued same-store growth and responsible debt management. Finally, as of today, the company is in compliance with all financial covenants required under its mortgages and credit facility. And finally, on slide 19, last year, we introduced a bridge to $100 million of NOI based on 2024's pro forma in-place NOI of $78 million and an assumption-driven placeholder for growth through community stabilization of $22 million. We were able to share only limited visibility into attainment during our year-end earnings report due to acquiring 10 of the 19 operating acquisition communities in the final quarter of the year. Today, we are excited to report that with our first full quarter of total portfolio stabilization behind us, we were able to realize $12 million in annualized NOI growth attributed to incremental actual portfolio NOI recognized in Q1 2025 as well as the run rate impact to NOI from another successful annual rate increase campaign. As we continue to drive occupancy expansion and leverage pricing power to pass through renewal and market rate increases, while driving our unit cost economics down, we continue to believe that this $100 million of NOI is an achievable near-term target with meaningful upside thereafter. Back to you, Brandon. Brandon Ribar Thanks, Kevin. Starting on slide 21 with capital allocation in our existing portfolio, I will expand on the repositioning communities Kevin referenced in his comments. Within this repositioning category, we identified an opportunity to design an offering consistent with the private pay landscape in these markets while reducing our exposure to government reimbursement. In late 2024, the Indiana Medicaid program converted to a managed Medicaid model, creating significant disruption by limiting both the timing and authorization for residents to access to benefits for assisted living and memory care services. As a result, we intentionally reduced the number of medicate admissions, thereby decreasing overall occupancy in these communities. We are now removing units from service, converting the product type to a different unit mix and investing capital to upgrade the physical plant where the demographic income profile supports a private pay model. We are projecting capital spend of $4 million to $5 million in total across the five communities. Completion of these projects will meaningfully reduce the company's Medicaid percentage of total revenue, currently at 9%, and we expect return on investment to exceed 30%. Shifting gears, capital markets today continue to be shaped by liquidity seeking and debt motivated sellers. This backdrop is generating a steady pipeline of investment opportunities with attractive risk-adjusted returns for Sonida. We remain focused on acquiring high-quality assets at a discount to replacement cost, where we can unlock value through operational improvement. In these situations, we benefit from owning well-located real estate at a favorable basis with upside for market improvement combined with the unique alpha generated by our operating platform and leadership. On page 24 of our Investor Presentation, we highlight one of our initial 2024 investments, the Stone joint venture, which closed in May. We acquired four recent vintage high-quality assets for $64 million or approximately $140,000 per unit. At acquisition, the portfolio was generating just $1.5 million of NOI, reflecting low occupancy and elevated expenses. Upon assuming management, Sonida stabilized leadership through targeted personnel transitions and robust training and mentorship. We also equipped community teams with our business intelligence tools, expense and revenue management processes and regional support structure to rebuild each community's operating model. As a result of our focus on people and process, NOI has grown fourfold, all while improving the quality of services delivered to residents even as occupancy remains below stabilized potential. Turning to page 25. As we shifted to offense early last year, we identified a strategic opportunity to expand in the Southeast, targeting high-growth markets where we have deep operating expertise and strong regional support. We ultimately acquired two portfolios totaling 10 assets for approximately $135 million or $180,000 per unit. These assets served as the cornerstone of our successful equity and debt raise last summer and closed in Q4 2024. Since acquisition, we focused on operational integration and made targeted capital investments of approximately $2 million across the portfolio, addressing deferred maintenance needs and selectively upgrading furniture and finishes. Early results are encouraging, with margin improvement driven by both disciplined expense management and active revenue strategies, including level of care assessments. The 10 assets delivered a combined NOI yield in excess of 10% in Q1, with significant upside remaining as we continue to grow occupancy and drive healthy rate growth. In addition, we are under contract to acquire two more communities in major southeastern markets for a combined $22 million with closings expected in Q2. These off-market deals reflect the same profile as many of our other recent investments, quality assets in attractive markets with operational upside, and we look forward to providing additional details soon. Looking ahead to the broader 2025 investment landscape, we are not simply pursuing growth for growth's sake. We remain disciplined deploying capital where we see accretive opportunities that offer compelling risk-adjusted returns and clear strategic value. The current environment is presenting a wealth of these opportunities. And as we continue to refine our operational integration playbook, we believe we are uniquely positioned to capitalize on this opportunity set. Sonida's focused on results-driven operational strategies, operational excellence and capital allocation yielded another quarter of strong performance and accelerating growth in the newly acquired communities. The combination of in-place revenue and NOI growth, responsible and attractive investment activity and broader application of our owner-operator platform uniquely positions Sonida as a leader within the senior living and real estate landscape. Our team is highly focused on operational execution and committed to continued excellence and value creation for the remainder of 2025 and beyond. This concludes our prepared remarks Operator, please open the line for any questions. Operator (Operator Instructions). Ronald Kamdem, Morgan Stanley. Ronald Kamdem Just two quick ones. First is on the repositioning portfolio. So the 5 assets that were moved out of the pool into the portfolio, it sounds like from your opening comments, there was a -- it sounds like a Medicaid change and in Indiana, if I heard correctly. Just a little bit more color there. I know you talked about the dollar spent for those assets. But just what kind of time line, any occupancy targets that you're thinking through? Just would love to hear a little bit more about sort of the repositioning assets. Brandon Ribar Thanks, Ron, and good to speak with you. So I think the repositioning portfolio for us is a story around opportunity within our portfolio to invest some dollars to fully align those communities with our long-term business model. So we are, as heavy private pay. And the opportunity to continue to reduce our exposure to the Medicaid program presented itself when there was a change in the program that ultimately made it a little bit more difficult for people to access the Medicaid benefits in the state of Indiana and in order to get ahead of any kind of long-term detriment to it. We looked at these five communities, which have the heaviest exposure to the Medicaid program. And they're in good markets where they do support a private pay model but we felt the assets needed to be positioned with capital investment to make sure that we could really appeal to the private pay individuals. . And so that meant in order to get the investments completed and to make sure that we were appropriately managing the margin in those communities that we were taking units out of service continue to take units out of service in the first and second quarter here. So that we can get that capital invested and ultimately shift the business model in those communities to a far more heavily focused private pay reimbursement model that matches with the long-term vision for our company as a whole. So we thought it was a really good opportunity to use some of our dry powder to deliver what we think is going to be a strong return profile for those internal capital investments. Ronald Kamdem Great. And then my second question would just be what about the remaining private pay? Any other sort of assets that could potentially be on that repositioning bucket? And then if you could also talk about just the two acquisitions that you guys have tied up and sort of any color on those on the pipeline. Brandon Ribar Yes. Happy to do so. I think that within our portfolio, the repositioning bucket, these five are the most immediate opportunities there. We have done quite a bit of investment over the last couple of years across the portfolio. So I wouldn't say that there's an expectation around a large-scale kind of transition of communities into that repositioning bucket or need there. So I think we'll continue to evaluate that. Just as our portfolio grows, just shy of 100 assets now, there may be opportunities down the road where we want to use that same concept where the business model does need an adjustment or we're going to make a major capital investment that would change the trajectory of the business, but would create near-term disruption. So we'll continue to monitor that, but nothing on the immediate horizon within the portfolio. So we'll continue to show the results of this repositioning effort. And feel confident that the results will really show the benefit from a capital investment and repositioning of these assets. And then just on the two additional acquisitions that we mentioned, these are strong southern markets in Florida and Georgia, where we have a couple of individual acquisitions that are very, very consistent with what we purchased in the kind of the latter part of 2024, where these are communities that will benefit from our operational overhaul. They're very nice kind of new vintage communities. And again, kind of the return expectations are consistent with what we bought towards the end of last year where we feel like these can stabilize with low double-digit yields. And so we think this is representative of an ongoing opportunity to use our platform to identify strong, very high-quality assets that just need some operational kind of capabilities and transitions. And then can stabilize with really solid operating metrics in the very near future. Operator (Operator Instructions). There are no further questions at this time. I will now turn the call back over to Mr. Brandon Ribar for closing remarks. Brandon Ribar Thank you all for participating this morning, and this concludes today's conference call. Operator Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
12-05-2025
- Business
- Business Wire
Sonida Senior Living Announces First Quarter 2025 Results
DALLAS--(BUSINESS WIRE)--Sonida Senior Living, Inc. (the 'Company,' 'Sonida,' 'we,' 'our,' or 'us') (NYSE: SNDA), a leading owner, operator and investor of senior housing communities, today announced its results for the first quarter ended March 31, 2025. 'Sonida's strong execution on its organic and inorganic growth strategy plan continued to bear meaningful results in the first quarter, driven by improvements in key metrics. Year-over-year same-store portfolio NOI margin expansion coupled with focused integration and accelerating sequential NOI margin growth in the acquisitions portfolio, demonstrates both the capabilities and potential of our unique owner/operator framework. The Company remains actively involved in the acquisitions market with the goal of creating further density in established regions and entering new and attractive markets. As a whole, Sonida is making tremendous progress towards its goals and is well-positioned for continued NOI growth, based on our foundation of dedicated, passionate team members throughout the Company,' said Brandon Ribar, President and CEO. First Quarter Highlight s Resident revenue increased $18.6 million, or 30.6%, comparing Q1 2025 to Q1 2024. Weighted average occupancy for the Company's same-store portfolio increased 100 basis points to 86.8% in Q1 2025 from 85.8% in Q1 2024 1. Net loss attributable to Sonida shareholders for Q1 2025 was $12.5 million. Q1 2024 net income attributable to Sonida shareholders was $27.0 million due to a $38.1 million gain on the extinguishment of debt, net. Q1 2025 Adjusted EBITDA, a non-GAAP measure, was $13.6 million, as compared to $9.5 million in Q1 2024, representing an increase of $4.1 million, or 43.2%, year-over-year. Results for the Company's same-store portfolio of 56 communities were as follows: Q1 2025 vs. Q1 2024: Revenue Per Available Unit ('RevPAR') increased 6.8% to $3,711. Revenue Per Occupied Unit ('RevPOR') increased 5.5% to $4,274. Q1 2025 Community Net Operating Income, a non-GAAP measure, was $16.1 million compared to $13.5 million for Q1 2024, representing an increase of $2.6 million, or 19.3%. Community Net Operating Income Margin, a non-GAAP measure, was 27.6% as compared to 24.8% for Q1 2024. Q1 2025 vs. Q4 2024: RevPAR increased 1.9% to $3,711. RevPOR increased 1.8% to $4,274. Community Net Operating Income increased $0.7 million to $16.1 million. Community Net Operating Income Margin was 27.6% as compared to 26.8% for Q4 2024. ____________________ 1 Please see page 8 of this release for the definitions of Same-Store Portfolio, RevPAR, and RevPOR. Expand SONIDA SENIOR LIVING, INC. SUMMARY OF CONSOLIDATED FINANCIAL RESULTS THREE MONTHS ENDED MARCH 31, 2025 (in thousands) Results of Operations Three months ended March 31, 2025 as compared to three months ended March 31, 2024 Revenues Resident revenue for the three months ended March 31, 2025 was $79.3 million as compared to $60.7 million for the three months ended March 31, 2024, representing an increase of $18.6 million, or 30.6%. The increase in revenue was primarily due to increased occupancy, increased average rent rates, and 16 additional operating communities acquired during 2024 (including one unoccupied community). Expenses Operating expenses for the three months ended March 31, 2025 were $60.4 million as compared to $46.3 million for the three months ended March 31, 2024, representing an increase of $14.1 million, or 30.5%. The increase was attributable to $11.5 million in operating expenses related to the 16 additional communities acquired during 2024 (including one unoccupied community acquired on December 31, 2024), and an increase of $2.6 million in operating expenses related to the remaining owned communities, driven by $1.4 million increases in labor and $1.2 million increases in other operating expenses. General and administrative expenses for the three months ended March 31, 2025 were $8.5 million as compared to $6.8 million for the three months ended March 31, 2024, representing an increase of $1.7 million. The increase was primarily a result of increases in labor and employee-related expenses of $1.5 million to support the Company's 2024 acquisitions and growth initiatives, and a $0.4 million increase in stock-based compensation expense, partially offset by a net decrease in other expenses of $0.2 million. Transaction, transition and restructuring costs were $0.6 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively. The costs include legal, audit, banking and other costs to support the Company's recent debt, restructuring, as well as investments by the Company. Interest expense for the three months ended March 31, 2025 was $9.4 million as compared to $8.6 million for the three months ended March 31, 2024, representing an increase of $0.8 million, primarily due to the incremental borrowings associated with the Company's 2024 community acquisitions, partially offset by a decrease in the Company's Secured Overnight Financing Rate ('SOFR') based variable rate debt. Gain on extinguishment of debt, net for the three months ended March 31, 2024 was $38.1 million related to the derecognition of notes payable and liabilities as a result of the February 2, 2024 repurchase of the total outstanding principal balance of $74.4 million from a previous lender that was secured by seven of the Company's senior living communities. As a result of the foregoing factors, the Company reported net loss attributable to Sonida shareholders of $12.5 million and net income attributable to Sonida shareholders of $27.0 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Liquidity and Capital Resources Credit Facility During 2024, the Company entered into a credit agreement with BMO Bank, N.A. and Royal Bank of Canada for a senior secured revolving credit facility (the 'Credit Facility'). The Credit Facility has a borrowing capacity of up to $150.0 million, a term of three years, a leverage-based pricing matrix between SOFR plus 2.10% margin and SOFR plus 2.60% margin and is fully recourse to Sonida Senior Living, Inc. and its applicable subsidiaries. The borrowing base by which borrowing availability under the Credit Facility is determined is generally based upon the value of the senior living communities that secure the Company's obligations under the Credit Facility. As of March 31, 2025, $60.0 million of borrowings were outstanding under the Credit Facility at a weighted average interest rate of 6.9%, which was secured by 13 of the Company's senior living communities. As of March 31, 2025, the Company has availability of $43.2 million under the Credit Facility. Cash Flows The table below presents a summary of the Company's net cash provided by (used in) operating, investing, and financing activities (in thousands): In addition to $14.0 million of unrestricted cash as of March 31, 2025, our future liquidity will depend in part upon our operating performance, which will be affected by prevailing economic conditions, and financial, business and other factors, some of which are beyond our control. Principal sources of liquidity are expected to be cash flows from operations, proceeds from equity offerings, including sales of common stock under our ATM Sales Agreement (as defined below), borrowings under our Credit Facility, proceeds from debt, proceeds from debt refinancings or loan modifications, and proceeds from the sale of owned assets. During 2024, we completed the private placement of our common stock pursuant to which we issued and sold an aggregate of approximately 5.0 million shares of our common stock to several of our shareholders for gross cash proceeds of $47.8 million, which enabled us to purchase all the Company's debt then outstanding with a certain lender at a substantial discount, as well as fund future working capital and growth initiatives. Additional financing of $24.8 million for the debt purchase was provided by an expansion of the Company's existing Ally Bank term loan. In addition, during April 2024, the Company entered into the At-the-Market Issuance Sales Agreement (the 'ATM Sales Agreement'), whereby the Company may sell, at its option and subject to market conditions, shares of its common stock up to an aggregate offering price of $75,000,000. As of March 31, 2025, the Company has received $18.7 million in net proceeds from the ATM sales. During August 2024, the Company completed a public offering and issued 4.8 million shares of common stock for net proceeds of $124.1 million, after deducting underwriting discounts and commissions and the Company's offering expenses. During August 2024, the Company entered into its Credit Facility in which borrowing availability is determined based upon the value of the senior living communities that secure the Company's obligations under the Credit Facility. As of March 31, 2025, the Company had outstanding borrowings under its Credit Facility of $60.0 million and availability of $43.2 million. These transactions are expected to provide additional financial flexibility to us and increase our liquidity position. The Company, from time to time, considers and evaluates financial and capital raising transactions related to its portfolio, including debt financing and refinancings, purchases and sales of assets, equity offerings, and other transactions. There can be no assurance that the Company will continue to generate cash flows at or above current levels, or that the Company will be able to obtain the capital necessary to meet the Company's short- and long-term capital requirements. Recent changes in the current economic environment, and other future changes, could result in decreases in the fair value of assets, slowing of transactions, and the tightening of liquidity and credit markets. These impacts could make securing debt or refinancings for the Company or prospective buyers of the Company's properties more difficult or on terms not acceptable to the Company. The Company's actual liquidity and capital funding requirements depend on numerous factors, including its operating results, its capital expenditures for community investment, and general economic conditions, as well as other factors described in 'Item 1A. Risk Factors' of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 17, 2025. Conference Call Information The Company will host a conference call with senior management to discuss the Company's financial results for the three months ended March 31, 2025 on Monday May 12, 2025, at 11:00 a.m. Eastern Time. To participate, dial 800-715-9871, passcode 4619110. A link to the simultaneous webcast of the teleconference will be available at: For the convenience of the Company's shareholders and the public, the conference call will be recorded and available for replay for 12 months. To access the conference call replay, call 800-770-2030, passcode 4619110. A transcript of the call will be posted in the Investor Relations section of the Company's website. About the Company Dallas-based Sonida Senior Living, Inc. is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults. The Company provides compassionate, resident-centric services and care as well as engaging programming at our senior housing communities. As of March 31, 2025, the Company owned, managed or invested in 94 senior housing communities in 20 states with an aggregate capacity of approximately 10,000 residents, including 81 owned senior housing communities (including four owned through joint venture investments in consolidated entities, and four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company managed on behalf of a third-party. Safe Harbor This release contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under 'Item. 1A. Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the 'SEC') on March 17, 2025, and also include the following: the Company's ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short and long-term debt obligations and to fund the Company's acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities; elevated market interest rates that increase the cost of certain of our debt obligations; increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in immigration or overtime laws; the Company's ability to obtain additional capital on terms acceptable to it; the Company's ability to extend or refinance its existing debt as such debt matures; the Company's compliance with its debt agreements, including certain financial covenants and the risk of cross-default in the event such non-compliance occurs; the Company's ability to complete acquisitions and dispositions upon favorable terms or at all, including the possibility that the expected benefits and the Company's projections related to such acquisitions may not materialize as expected; the risk of oversupply and increased competition in the markets which the Company operates; the Company's ability to maintain effective internal controls over financial reporting and remediate the identified material weakness discussed in Item 9A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; changes in reimbursement rates, methods or timing of payment under government reimbursement programs, including Medicaid; risks associated with current global economic conditions and general economic factors such as elevated labor costs due to shortages of medical and non-medical staff, competition in the labor market, increased costs of salaries, wages and benefits, and immigration laws, the consumer price index, commodity costs, fuel and other energy costs, supply chain disruptions, increased insurance costs, tariffs, elevated interest rates and tax rates; the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis; the Company's ability to maintain the security and functionality of its information systems, to prevent a cybersecurity attack or breach, and to comply with applicable privacy and consumer protection laws, including HIPAA; and changes in accounting principles and interpretations. For information about Sonida Senior Living, visit or connect with the Company on Facebook, X or LinkedIn. Sonida Senior Living, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) March 31, 2025 December 31, 2024 (unaudited) Assets: Current assets Cash and cash equivalents $ 13,988 $ 16,992 Restricted cash 18,429 22,095 Accounts receivable, net of allowance for credit losses of $8.6 million and $7.9 million, respectively 16,463 18,965 Prepaid expenses and other assets 3,829 4,634 Derivative assets 975 1,403 Total current assets 53,684 64,089 Property and equipment, net 735,471 739,884 Investment in unconsolidated entity 10,221 10,943 Intangible assets, net 22,123 24,526 Other assets, net 2,980 2,479 Total assets $ 824,479 $ 841,921 Liabilities: Current liabilities Accounts payable $ 6,107 $ 9,031 Accrued expenses 43,060 45,024 Current portion of debt, net of deferred loan costs 14,621 15,486 Deferred income 6,404 5,361 Federal and state income taxes payable 312 243 Other current liabilities 535 470 Total current liabilities 71,039 75,615 Long-term debt, net of deferred loan costs 636,273 635,904 Other long-term liabilities 1,201 793 Total liabilities 708,513 712,312 Commitments and contingencies Redeemable preferred stock: Series A convertible preferred stock, $0.01 par value; 41 shares authorized, 41 shares issued and outstanding as of March 31, 2025 and December 31, 2024 51,249 51,249 Equity: Sonida's shareholders' equity (deficit): Preferred stock, $0.01 par value: Authorized shares - 15,000 as of March 31, 2025 and December 31, 2024; none issued or outstanding, except Series A convertible preferred stock as noted above — — Common stock, $0.01 par value: Authorized shares - 30,000 as of March 31, 2025 and December 31, 2024, respectively; 18,878 and 18,992 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 189 190 Additional paid-in capital 491,334 491,819 Retained deficit (432,753 ) (420,224 ) Total Sonida shareholders' equity 58,770 71,785 Noncontrolling interest: 5,947 6,575 Total equity 64,717 78,360 Total liabilities, redeemable preferred stock and equity $ 824,479 $ 841,921 Expand Sonida Senior Living, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ (13,025 ) $ 27,019 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 13,686 9,935 Amortization of deferred loan costs 421 324 Gain on sale of assets, net — (192 ) Loss on derivative instruments, net 490 527 Gain on extinguishment of debt, net — (38,148 ) Loss from equity method investment 330 — Provision for credit losses 695 397 Non-cash stock-based compensation expense 973 575 Other non-cash items 179 (3 ) Changes in operating assets and liabilities: Accounts receivable, net 1,807 (2,726 ) Prepaid expenses 805 1,063 Other assets, net (62 ) (41 ) Accounts payable and accrued expenses (3,476 ) (3,123 ) Federal and state income taxes payable 69 73 Deferred income 1,043 214 Customer deposits (112 ) 1 Net cash provided by (used in) operating activities 3,823 (4,105 ) Cash flows from investing activities: Return of investment in unconsolidated entity 392 — Capital expenditures (8,337 ) (5,762 ) Proceeds from sale of assets — 631 Net cash used in investing activities (7,945 ) (5,131 ) Cash flows from financing activities: Proceeds from issuance of common stock, net of issuance costs — 47,641 Proceeds from notes payable — 24,830 Repayments of notes payable (918 ) (41,999 ) Dividends paid on Series A convertible preferred stock (1,409 ) — Distributions to noncontrolling investors in joint ventures (132 ) — Purchase of derivative assets — (554 ) Deferred loan costs paid (38 ) (549 ) Other financing costs (51 ) (220 ) Net cash provided by (used in) financing activities (2,548 ) 29,149 Increase (decrease) in cash and cash equivalents and restricted cash (6,670 ) 19,913 Cash, cash equivalents, and restricted cash at beginning of period 39,087 17,750 Cash, cash equivalents, and restricted cash at end of period $ 32,417 $ 37,663 Expand DEFINITIONS RevPAR, or average monthly revenue per available unit, is defined by the Company as resident revenue for the period, divided by the weighted average number of available units in the corresponding portfolio for the period, divided by the number of months in the period. RevPOR, or average monthly revenue per occupied unit, is defined by the Company as resident revenue for the period, divided by the weighted average number of occupied units in the corresponding portfolio for the period, divided by the number of months in the period. Same-Store Community Portfolio, is defined by the Company as communities that are consolidated, wholly or partially owned, and operational for the full year in each year beginning as of January 1st of the prior year. Consolidated communities excluded from the same-store community portfolio include the Acquisition Community Portfolio, the Repositioning Portfolio, and certain communities that have experienced a casualty event that has significantly impacted their operations. Acquisition Community Portfolio, is defined by the Company as communities that are wholly or partially owned, acquired in the current year or prior comparison year, and are not operational in both comparison years. An operational community is defined as a community that has maintained its certificate of occupancy and has made at least 80% of its wholly owned or partially owned units available for five consecutive quarters. Repositioning Portfolio, is defined by the Company as communities that are wholly or partially owned, and have undergone or are undergoing strategic repositioning as a result of significant changes in the business model, care offerings, and/or capital re-investment plans, that in each case, have disrupted, or are expected to disrupt, normal course operations. These communities will be included in the Same-Store Community Portfolio once operating under normal course operating structures for the full year in each year beginning as of January 1st of the prior year. NON-GAAP FINANCIAL MEASURES This earnings release contains the financial measures (1) Net Operating Income, (2) Net Operating Income Margin, (3) Adjusted EBITDA, and (4) Same-store amounts for these metrics, each of which is not calculated in accordance with U.S. Generally Accepted Accounting Principles ('GAAP'). Presentations of these non-GAAP financial measures are intended to aid investors in better understanding the factors and trends affecting the Company's performance and liquidity. However, investors should not consider these non-GAAP financial measures as a substitute for financial measures determined in accordance with GAAP, including net income (loss), income (loss) from operations, net cash provided by (used in) operating activities, or revenue. Investors are cautioned that amounts presented in accordance with the Company's definitions of these non-GAAP financial measures may not be comparable to similar measures disclosed by other companies because not all companies calculate non-GAAP measures in the same manner. Investors are urged to review the reconciliations of these non-GAAP financial measures from the most comparable financial measures determined in accordance with GAAP, which are included below. The Company believes that presentation of Net Operating Income and Net Operating Income Margin as performance measures is useful to investors because such measures are some of the metrics used by the Company's management to evaluate the performance of the Company's owned portfolio of communities, to review the Company's comparable historic and prospective core operating performance of the Company's owned communities, and to make day-to-day operating decisions. The Company also believes that the presentation of such non-GAAP financial measures and Adjusted EBITDA is useful to investors because such measures provide an assessment of operational factors that management can impact in the short-term, primarily revenues and the controllable cost structure of the organization, by eliminating items related to the Company's financing and capital structure and other items that management does not consider as part of the Company's underlying core operating performance and that management believes impact the comparability of performance between periods. Net Operating Income and Net Operating Income Margin have material limitations as performance measures, including the exclusion of general and administrative expenses that are necessary to operate the Company and oversee its communities. Furthermore, such non-GAAP financial measures and Adjusted EBITDA exclude (i) interest that is necessary to operate the Company's business under its current financing and capital structure, and (ii) depreciation, amortization, and impairment charges that may represent the wear and tear and/or reduction in value of the Company's communities and other assets and may be indicative of future needs for capital expenditures. The Company may also incur income/expense similar to those for which adjustments may be made and such income/expense may significantly affect the Company's operating results. Net Operating Income and Net Operating Income Margin (Unaudited) Net Operating Income and Net Operating Income Margin are non-GAAP performance measures that the Company defines as net income (loss) excluding: general and administrative expenses (inclusive of stock-based compensation expense), interest income, interest expense, other expense, provision for income taxes, management fees, and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, or organizational restructuring items that management does not consider as part of the Company's underlying core operating performance and that management believes impact the comparability of performance between periods. For the periods presented herein, such other items include depreciation and amortization expense, transaction, transition and restructuring costs, gain on extinguishment of debt, loss from equity method investment, casualty loss, non-recurring settlement fees, non-income tax, and non-property tax. Net Operating Income Margin is calculated by dividing Net Operating Income by resident revenue. Adjusted Net Operating Income and Adjusted Net Operating Income Margin are further adjusted to exclude the impact from any non-recurring state grant funds received by the Company. The Company presents these non-GAAP measures on a consolidated community and same-store community basis. The following table presents a reconciliation of the Non-GAAP Financial Measures of Net Operating Income and Net Operating Income Margin, in each case, on a consolidated community and same-store community basis to the most directly comparable GAAP financial measure of net income (loss) for the periods indicated: (1) Q1 2025 and Q4 2024 exclude 16 senior living consolidated communities acquired by the Company in 2024 (including one unoccupied community acquired on December 31, 2024) and the five Repositioning communities. (2) Includes casualty loss, non-recurring settlement fees, non-income tax and non-property tax. Expand ADJUSTED EBITDA (UNAUDITED) Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: depreciation and amortization expense, interest income, interest expense, other expense/income, provision for income taxes; and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, or organizational restructuring items that management does not consider as part of the Company's underlying core operating performance and that management believes impact the comparability of performance between periods. For the periods presented herein, such other items include stock-based compensation expense, provision for credit losses, gain on extinguishment of debt, executive transition costs, casualty losses, and transaction, transition and restructuring costs. The following table presents a reconciliation of the Non-GAAP Financial Measures of Adjusted EBITDA to the most directly comparable GAAP financial measure of net income (loss) for the periods indicated: (1) Casualty losses relate to non-recurring insured claims for unexpected events. (2) Transaction, transition and restructuring costs relate to legal and professional fees incurred for transactions, restructuring projects, or related projects. Expand
