Sonida Senior Living Announces First Quarter 2025 Results

DALLAS--(BUSINESS WIRE)--May 12, 2025-- 

Sonida Senior Living, Inc. (the "Company," "Sonida," "we," "our," or "us") $(SNDA)$, 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 Highlights

   -- 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 20241. 
 
   -- 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. 
 

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):

 
                       Three Months Ended March 31, 
                   ------------------------------------ 
                          2025                 2024       Change 
                       -----------          ----------   --------- 
Net cash provided 
 by (used in) 
 operating 
 activities         $        3,823       $      (4,105)  $  7,928 
Net cash used in 
 investing 
 activities                 (7,945)             (5,131)    (2,814) 
Net cash provided 
 by (used in) 
 financing 
 activities                 (2,548)             29,149    (31,697) 
                       -----------          ----------    ------- 
Increase 
 (decrease) in 
 cash and cash 
 equivalents        $       (6,670)      $      19,913   $(26,583) 
                       ===========          ==========    ======= 
 

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

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