SNDA

Image source: The Motley Fool. Monday, August 10, 2026 at 11:00 a.m. ET VP of Investor Relations - Megan Caldwell President and Chief Executive Officer - Brandon Ribar Executive Vice President and Chief Financial Officer - Kevin J. Detz Need a quote from a Motley Fool analyst? Email [email protected] Operator: Hello, everyone. Thank you for joining us and welcome to the Sonida Senior Living Second Quarter 26 Earnings Call. After today's prepared remarks, we will host a question and answer session. To withdraw your question, press 1 again. I will now hand the conference over to Megan Caldwell, VP of Investor Relations. Megan? Please go ahead. Megan Caldwell: Thank you, operator. All statements made today, 08/10/2026, which are not historical facts, are forward looking statements within the meaning of federal securities laws. The company expressly disclaims any obligation to update these statements in the future except as required by law. Actual results or performance may differ materially from forward looking statements. Certain factors that could 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 including the risk factors contained in the annual report on Form 10 k And quarterly reports on Form 10 Q. Please see today's press release for the full Safe Harbor and forward looking statements which may be found in the Form 8-K filing from this morning or at the company's Investor Relations page found at investors.sonidaseniorliving.com. As previously disclosed, the company completed its acquisition of CNL Health Properties Inc, or CHP, on 03/11/2026. Unless otherwise specifically noted or the context otherwise requires, the financial and operating results we are discussing today and that are included in our earnings release and presentation, represent the combined company on a pro forma basis for any period presented in which we did not own CHP for the full period, including CHP as if the acquisition had closed on the first day of the period. We believe this pro forma information provides a meaningful method of comparing the performance of the combined business over historical periods. This pro forma information giving effect to the CHP acquisition has not been prepared in compliance with article 11 of regulation SX and does not reflect the actual results we may have achieved had the CHP acquisition occurred on the first day of the applicable period. And may not be predictive of future results. Please note that our GAAP financials reflect CHP's results from the closing date only, and our second quarter 26 financials reflect CHP for the full period without any adjustment. See the disclaimer slide in our presentation for additional information about the preparation of and the limitations associated with this pro forma financial information. Please also note that during this call, the company will present non GAAP financial measures. For reconciliations of these non GAAP measures to the most comparable GAAP measure, please see today's earnings release and presentation. If you would like to follow along during today's call, you can find Sonida second quarter 26 earnings presentation in the Investor Relations section of the company's website. Addition, we have included supplemental earnings information within our presentation consistent with prior quarter releases. I would now like to turn the call over to Sonida, President and CEO, Brandon Ribar. Brandon Ribar: Thanks, Megan. Good morning, and thank you for joining us on our second quarter 26 earnings call. Last quarter, we outlined Sonida's shift from building its foundation to compounding on it, transitioning from survival and stabilization to now, in 2026, compounding. Our compounding phase is well underway with today's results showing clear fundamental momentum, and I am pleased to report a strong second quarter. On a same store basis, weighted average occupancy increased 240 basis points year over year to 87.8%. Reflecting continued gains in move in volume and sustained execution by our sales, operations, and clinical teams. That top line growth continued to flow through efficiently to profitability. We are encouraged that this momentum continued into the third quarter, with our total portfolio occupancy increasing sequentially by 40 basis points in July versus June. Q2 same store community NOI grew 16.9% with NOI margin expanding 250 basis points year over year to 32.6%. Underscoring the operating leverage embedded in the portfolio. We are pleased that our operational efforts have demonstrated a significant expansion from our 14% year over year same community NOI growth in Q1. On a total portfolio basis, for the second quarter, normalized FFO per share was $0.48 with adjusted $50 million both reflecting the earnings power of the platform as it scales. The strength of these results highlights the caliber of leadership across the operating platform. The effectiveness of our proprietary SPIN business intelligence tools, and the operational discipline to balance onboarding new communities while delivering consistent performance in our core portfolio. The continued integration of the CHP portfolio remains on track. And our pipeline of additional near term investment opportunities continues to expand. Both of which I will cover in more detail later in my remarks. Our primary objective remains generating durable per share value through the combination of a stronger balance sheet a differentiated operating model, and a deeper leadership bench. We are also pleased to formally introduce Anton D. Nikodemus, as our Chief Operating Officer. A newly created and vital role as we focus on continuing to compound value. Anton's arrival reflects a deliberate investment in enhancing the resident and overall customer experience as we build on a strong operating foundation and position Sonida for long term competitive advantage as an owner operator. Anton brings a valuable perspective rooted in hospitality. At its best, senior living is not simply a care business. It is an experience business. Culinary quality, service consistency, resident programming, and the design of the physical environment together with disciplined sales, marketing, and revenue management, are details that drive renewals, generate referrals, and sustain pricing power through market cycles. They are also the most difficult things to replicate at scale. As Sonida's platform grows, our ability to embed a hospital hospitality driven culture at the community level and to hold that standard across a larger and more diverse portfolio is a key source of differentiation in our business model. Anton is here to build and sustain that capability, and we are excited to have him leading that work. This mandate is especially relevant given the pace of integration work underway. As of July 1, 14 communities more than a quarter of the CHP SHOP portfolio, have transitioned to Sonida management. The execution was smooth, more importantly, it was instructive. Our operational excellence team built over the last several years since we began acquiring assets in 2024 continues to accelerate asset transitions and data migration onto our SPIN platform. Enhancing a playbook refined through 2 years of integration work. To contextualize this a bit, the 6 communities transitioned at the beginning of May delivered year over year NOI improvement exceeding 60%, and expanded NOI margin by 850 basis points compared to Q2 25. Ongoing investment in detailed training and development of new leadership coupled with community level incentive structures, are keeping teams focused and results steady throughout the integration process. We remain confident in the performance of our remaining third party managers. They have preserved operational continuity and institutional knowledge at the community level. And in a handful of cases are evolving into longer term strategic partnerships. A dynamic that is opening incremental opportunities for us across a range of fronts. Whether that is deal flow, sourcing networks, or regional density advantages. That same playbook mentality building infrastructure that gets smarter with each transition, extends beyond the integration itself. It is what underpins the Sonita Performance Insight Navigator or SPIN. Our proprietary operating platform that provides real time insights around occupancy, rate, and labor trends with datasets coming from over 100 of our communities. We introduced SPIN to our investors for the first time in our April shareholder letter and in further detail on our Q1 call. Though it reflects work we have been building for years. SPIN is a proprietary system. With layered best in class third party capabilities specifically tailored to how we operate. Bringing resident care, workforce, and community level data into a single real time view. what is changed since last quarter is scale. Each community acquisition we integrate enriches that dataset and drives further development of predictive insights into resident clinical profiles, and labor efficiency. Pivoting to capital allocation. Our investment focus remains return driven, not category driven. Every dollar deployed is measured against accretion to free cash flow and net asset value per share. We underwrite with the same rigor and cost of capital discipline as an institutional investor, but the Sonida advantage lives in what will happen after the deal closes. Execute as a best in class operator converting operational upside directly into NOI, in a way a pure capital allocator cannot. That operating advantage shapes our conviction about the types of assets that create the most value for Sonida shareholders. We are drawn to assets that reward not just an owner, but an operator. Where our operational capabilities allow us to lean into a deal, specifically, high quality assets available at a discount to replacement cost in markets with favorable supplydemand dynamics where we see multiple levers to grow occupancy, rate, and margin. Rather than a single thesis dependent on cap rate compression. Regional density is a particularly important part of that thesis. Today, local operating density is becoming harder to replicate and more valuable. Our concentrated presence in key markets such as Dallas Fort Worth, Northern Florida, and Atlanta. Deepens access to the operating and market data that sharpens our capital deployment decisions. While regional clustering drives referral networks, purchasing power, and labor efficiencies that optimize our operational opportunity. This density is also reinforced by how we are perceived in the market. We believe our platform is resonating with sellers who care about what happens to their communities after a transaction closes. We expect that to become an increasingly important differentiator to our sourcing efforts over time. Together, these dynamics feed the flywheel we described last quarter. Where every acquisition deepens our operator relationships, adds to the SPIN dataset, and strengthens our density in the markets that matter most. The value of SPIN, our broader integration and operations playbook increasingly reflected in our results. Our Stone joint venture is a case in point. Formed in 2024 to acquire 4 highly distressed communities across the Midwest. The portfolio NOI has grown 5.6x, driven by a complete overhaul of the operating model to drive both top line and margin growth. That performance yielded a cash out refinancing that closed this quarter, returning the full amount of invested capital to Sonida and our joint venture partner, with attractively priced long duration flexible mortgage debt. Importantly, we believe the growth from this acquisition is far from finished. The portfolio remains in the stabilization phase, with meaningful upside opportunities ahead. We have previously discussed our 2024 cohort. Which is currently yielding approximately 11.5% relative to our cost basis, with meaningful further upside ahead. Our 2025 cohort is showing similarly strong momentum. Since Q4 25 the first full quarter of ownership occupancy and NOI are up 1.4 thousand basis points and 1.6 thousand basis points, respectively. Notably, occupancy for the 2025 cohort sits at 70.4% as of June. Reflecting significant upside ahead. The Stone JV and our other 1 off acquisitions to date reflect the kind of value creation we look to replicate as we continue to deploy capital. And we are seeing that same opportunity set in our current pipeline. Today, we are under contract to acquire approximately $88 million of assets that share these same characteristics. Attractive markets, and well located buildings where our operating prowess can drive significant uplift in performance. We anticipate these assets to generate a mid teens unlevered IRR and accretion to normalized FFO and NAV per share on a stabilized basis. This is all consistent with the approach laid out in our April shareholder letter where we are looking for acquisitions that generate outsized return on unlevered cost of capital when compared to our current implied cost of capital in the public markets. We continue to build the pipeline behind this initial $88 million which remains deep and compelling. And our acquisitions team is as busy as it is ever been. We look forward to sharing more on our acquisition efforts in the upcoming calls. With that, I will turn the call over to Kevin to walk through the financial results balance sheet, and asset recycling efforts in more detail. Kevin J. Detz: Thanks, Brandon. Turning to slide 16 in the investor deck, a quick reminder on how we are structuring portfolio reporting. As we outlined last quarter, we report across 3 groupings. Same store, non same store, and triple net lease. A framework designed to provide a clean read on our core earnings base while isolating the parts of the portfolio still in motion. That second bucket, non same store, is where our active portfolio management shows up most directly. It includes newly acquired and stabilizing communities, assets undergoing reinvestment or care model conversion, and a targeted set of communities identified for disposition as part of our ongoing portfolio optimization strategy. On that last group, we are making significant progress towards an efficient exit of these noncore positions to redeploy that capital into higher quality communities that better align with our growth and margin profile. The capital recycling of these 14 communities which represent less than 2% of total NOI for Q2, should have a deleveraging impact on the company's balance sheet beyond enhancing overall quality and earnings power. We see this as 1 of the clearest ways to show disciplined capital in action, and it is a dynamic we expect to keep pointing to as the portfolio accelerates a shift to higher quality higher growth assets. The net lease portfolio includes the 15 communities we own that have operating leases in place. Initial lease maturities are between May 2030 and July 2032 all include 5-year tenant renewal options. Turning to slide 17. Our same store portfolio generated strong operating gains in the second quarter. Picked up 240 basis points of occupancy on a year over year basis. The percentage of same store communities with occupancy above 90% grew from 43% in 2Q 25 to 54% today. While the percentage below 80% declined from 30% to 20%. These occupancy gains are supported by increased lead volume from our focused digital marketing efforts coupled with a higher conversion to tour ratio. RevPOR grew 4.9% year over year reflecting continued rate strength following the annual renewal of 70% of the company's resident leases in Q1. The overall strong performance in revenue was complemented by well controlled operating expenses, which yielded an NOI margin of 32.6% for the quarter an increase of 250 basis points year over year. The continued discipline in labor and non labor cost management drove an incremental flow through of 63.4% on the increase in revenue for the same quarter and prior year. Also contributing to the widening margins within our same store portfolio is a steady stabilization of the 2024 acquisition cohort. Which continues to increase its absolute NOI contribution with each consecutive quarter. While we are encouraged by Q2's strong operating results, which were highlighted by 16.9% year over year increase in NOI, we see several avenues for margin expansion and a still maturing same store portfolio. All anchored into the utilization of the SPIN platform by our community leaders and regional teams. Moving to total portfolio results on slide 18. Total SHOP NOI grew 17.5% supported primarily by growth in the same store portfolio. Weighted average occupancy increased 170 basis points year over year to 86.6%. Reflecting continued strength across the stabilized core portfolio while incorporating acquired communities with lower starting occupancy basis. Assets still in transition and assets that are being actively recycled out. In addition to these occupancy gains, total shop RevPAR also grew 4.9%. With rate opportunities still embedded in our newer and repositioning communities as they continue to mature. As Brandon mentioned, the 2025 cohort's occupancy trajectory has been a standout. And that momentum has flown through to a profitability as well. NOI margin across these 4 communities moved from negative 1% in Q4 25 the first full quarter in which all 4 assets were included, to 15% this quarter. With plenty of runway left on these assets, the pace of stabilization should support meaningful year over year NOI contribution when they slip into same store in 2027. More broadly, total SHOP NOI margin for the quarter was 29.9%, a level that we expect to build upon as we execute on our strategies across acquisitions stabilization community transitions, and portfolio pruning. We will move to slide 19 now to look at our same store portfolio in more depth. The steady increase of RevPAR over the last 5 quarters reflects the company's focus on optimizing resident rates through SPIN, as well as the staggered nature of the legacy CHP rate renewal conventions. The combination of these 2 factors should provide further rate increase capture throughout the year and beyond. The company continues to appropriately match level of care revenues to its acuity based staffing model within SPIN. Providing another lever to widen margin profile while both occupancy and operational efficiencies climb. Moving to slide 20, you will see our same store labor efficiency continues to drive up incremental margin flow. In Q2, total labor costs declined 130 basis points as a percentage of revenue year over year to 40.4%, a portfolio low primarily highlighted by a 100 basis point improvement in direct labor. With both contract and other labor remaining minimal and stable. These continued improvements in our labor profile are the direct result of utilization and proficiency of real time SPIN labor metrics by our community teams. Other nonlabor operating expenses also continue to down relative to increasing revenues. Contributing to a 410 basis point spread between RevPOR and ExPOR, and ultimately, the 16.9% increase in NOI from Q2 in the prior year. This 3 quarter trajectory reflects the continued evolution of our SPIN labor modules and more importantly, they are broadening adoption and utilization across our community and regional teams. Turning to slides 22 and 23. Our balance sheet continues to strengthen as we advance toward our targeted near term leverage range of 6x to 6.5x. As of June 30, the company's capitalization includes 2 term loans totaling $575 million which includes an additional $25 million commitment received in Q2. The 2 term loans are priced as SOFR plus 195 basis points with step downs that allow pricing to compress to as low as SOFR 130 basis points as leverage is reduced. Subsequent to quarter end on August 7, we completed a $380 million 5-year term loan, including 2 extension options with Ally Bank. The proceeds from the Ally term loan were used to fully settle the $170 million bridge loan and the existing allied term loan of $122 million. With the remaining proceeds used to pay down the senior revolving credit facility to increase availability to fund future acquisitions. The LA term loan, along with the 2 term loan from the CHP merger in Q1, meaningfully extend our debt maturity profile and addresses any near term refinancing risk associated with the company's debt stack. Including the Allied term loan transaction, on a pro forma basis, total debt stands at approximately $1.6 billion at a weighted average interest rate of 5.43%. 86% of our total debt is either fixed rate or floating hedge. The Ally refinancing also reshapes our maturity ladder meaningfully. With 97% of total debt maturing in 2029 or later and 43% maturing in 2031 or later. Prior to the inclusion of extension options. As of the date of the Ally term loan financing, the secured revolving credit facility carries a total commitment of $455 million. Of which roughly $166 million is available immediately and continues to provide meaningful incremental capacity to support future growth. Finally, in July, the company issued 672 thousand shares of common stock under ATM program at an average price of $41.05. Resulting in net $27.3 million. We anticipate these funds to be used for the equitization of the nearest term community within our pipeline. We remain pleased with the quality flexibility, and duration of our capital structure following this transaction as we execute on our growth and delevering strategy. With that, I will pass the call back to Brandon for closing remarks. Brandon Ribar: Thanks, Kevin. And thank you all for joining us today. Taken together, our second quarter results reflect the strength and durability of the operating momentum we have built across the portfolio. Same store and total shop performance both point to a business generating meaningful top line growth while translating that growth into outsized margin expansion. And our recent balance sheet actions have further strengthened our financial flexibility to support that momentum going forward. None of this happens without the people behind it. Our team members across each of our communities and in our support roles show up every day for our residents with genuine care and pride. And that dedication is the foundation everything else that the Sonida story is built on. We are also grateful for the continued confidence of our investors. Have partnered with us through this journey and share in our excitement about where Sonida is headed. Thank you again for your time today. We look forward to speaking with many of you in the weeks ahead. Operator, you can open the line for any questions. Operator: We will now begin the question and answer session. If you would like to ask a question, To withdraw your question, press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question from the line of Ronald Kamdem with Morgan Stanley. Ronald, your line is open. Please go ahead. Ronald Kamdem: Great. I guess just a couple of quick ones for me. Starting with the normalized FFO, $0.48 in the quarter, which looked pretty strong. Can you guys just remind us when you plan to give sort of normalized FFO guidance and how the thinking is going through there. Kevin J. Detz: Hey, Ronald. Good morning. Our goal is to start issuing guidance for the full year 2027. As we just continue to pull the entire portfolio together and work through the completion of the integrations from the CHP deal. As well as the other acquisitions we have in our pipeline. So that is the goal. Ronald Kamdem: Great. that is really helpful. And then as you sort of take a step back, I am just curious, when you look at the portfolio right now where in your mind you think stabilized occupancy can get to over time. And if you can just overlay what sort of the new COO hire, as well as the SPIN platform the SPIN platform, excuse me, how that plays into that occupancy trajectory. Thanks. Brandon Ribar: Certainly, I would say that from an occupancy perspective, we see continued improvement. We have seen good year over year growth and do not see any major headwinds to that continuing here in the next you know, the foreseeable future. So, getting into the low to mid-90s seems from our perspective, very achievable. Obviously, PACE will depend on our performance and the market. And I would say that the hiring of Anton was a big piece of just the continued improvement in trajectory of the business. His experience over 30 years in adjacent industries and what he will be able to do in terms of the overall resident and customer experience as we continue to build out, you know, just our exceptional operating platform is something we are incredibly excited about. His knowledge of the customer and how to create the right type of offering to match and exceed their expectations. Is something that even in the first couple of months of his joining our team, we have been super impressed with. And so, how we continue to build out the operating platform for the future resident and their family is something we are, excited to continue down very quickly. And then I would say just on the SPIN tool, the more that we have been able to add communities into our overall just base of analytics, the more we learn about areas of opportunity. Both on the staffing side, which is exciting because we just have a very real time view of what is going on in our communities. But also as we think about continuing to push through and expand our rate profile just understanding how long units are on the market, how quickly we can get them filled up and priced appropriately, and then just doing more on a real time pricing basis as we build out our product and grow that occupancy is really important because as you know, when you start exceeding 90% occupancy, it is absolutely foundational that you get very strong rate growth. And so we are always trying to balance the growth of the rate with our occupancy as well. And excited to have Anton on board to help us drive the continued build out of our SPIN platform and our overall customer offering. Ronald Kamdem: Helpful. that is it for me. Thank you so much. Thank you, Ronald. Operator: Your next question from the line of Rich Anderson with Cantor Fitzgerald. Rich, your line is open. Please go ahead. Rich Anderson: Alright. Thanks. Good morning. Nice quarter. I just wanted to talk about good morning. Brandon Ribar: So I want to talk about the triple net portfolio. And the recycling plan there. You mentioned, the lease expirations and the extensions. To what degree, can that process start rolling sooner rather than later? And, you know, what is your what is your mindset around cap rates and redeploying, what the spread would be to redeploying into growth year assets and so on. Any incremental color you can give on timing and the economics to that strategy would be helpful. Thanks. Rich Anderson: Yeah. Absolutely. Brandon Ribar: I would say that as we built the relationship with both of our tenants, we have been impressed with their capabilities and you know, they are both structures that we have a lot confidence in from a stability perspective. But as we have talked about before, ultimately, we are not really in growing the triple net business. And so I think, just continuing to get market color on you know, what that would look like, should we go down a path here in the near to midterm. We are not in any real hurry because, you know, it is still very strong cash flowing assets. That have good underlying metrics. I think just we can obviously continue to evaluate opportunities for more of a shop style profile of those assets. But I would say that, you know, here in the next probably 6 months to a year, we wanna make sure that we are we are clear on, you know, whether or not that is something we wanna pursue from a market transaction perspective. Or not. And I would say that the spread there you know, based on what we are seeing in the marketplace and kind of the asset profile that we referenced in our pipeline. You know, that there would be clearly a solid spread to where the triple net would trade today. You know? And I guess it is fair to say that there is differing opinions on what the cap rate would be on the triple net side until you really were to pursue a market type of a transaction. But that is what we will look at is can we can we recycle that and buy it at a 100, 200 basis point type of a spread. Rich Anderson: Okay. Cool. Last second for me. You are very unique operating model. I think we all can appreciate everything under 1 roof or almost everything. And, you know, transitioning those that are not at the moment. When you are out in the market looking for activity though, is there any situation where you are taken out of the running because an operator may wanna still be an operator and does not wanna lose that business. And so because you are you are more than likely to transition to the Sonida operating platform, is there a hesitancy to do business with Sonida in some cases? Thanks. Brandon Ribar: I would say, overwhelmingly, the opportunity for it to be part of the Sonida platform has been part of the reason that we have been successful. And there are occasions where an operator might have that stipulation if they have a very close relationship. with the party that is selling. I think, more realistically, are not interested in limiting the value opportunity when they are taking transactions to market. And so they are open to multiple types of structures. And I would say that, you know, similar to what we did with the CHP opportunity, if there is strategic opportunities within the that operating platform or that operator, we are we are not going to be so set on our ways that they could not potentially stay a part of that or be a part of the Sonida platform as well. So you know, we like to maintain that flexibility as we are, as we are bidding on assets. But, we have not seen that to be a barrier of any significance on the deals we have we have been bidding on. Rich Anderson: And quick 1, just a follow-up for me. You mentioned regional density being a high priority ticket item for you guys. Dallas, North Florida, and Atlanta were mentioned. Where do you see an immediate need to build scale and density, that did not make that top 3 list? Today? Brandon Ribar: I would say that we are continuing to look at assets in the Midwest. We have seen really strong performance. We talked about the Stone portfolio, and those 4 assets are positioned really well across markets in the Midwest that we are interested in additional density. I would say that kind of the Mid Atlantic, the, you know, Carolinas, and Virginia are areas that we are looking at as well. I think that, though, we have seen a lot of success and the profile of the assets that are in our pipeline are being layered into markets where we already have you know, a solid presence, but not a ton of density, I would say. So markets like in Atlanta or Northern Florida, you still have plenty of runway to grow where you can identify other suburbs or complementary product types. That can be added into the portfolio. So we think that there is, you know, really still plenty of room to grow in those key markets and expand it in others in the kind of Midwest and Southeast as well. Rich Anderson: Great. Great color. Thanks very much, everybody. Thank you. Operator: Star 1 to raise your hand. To withdraw your question, press star 1 again. Your next question comes from the line of Wesley Golladay with Baird. Wesley, your line is open. Please go ahead. Wes Golladay: Hey. Good morning, everyone. I want to go to the topic of margin expansion. With the merger, I think you inherited some contracts from vendors, and now you have a lot more scale. Do you think you can get after some of these contracts by 2027 and start to see that benefit of scale? Kevin J. Detz: Good morning, Wesley. Thanks for the comment. So we are already getting out under the master contract in instances where we share the same vendor as the community or the operating company that we are now working with. So a lot of that is already in motion. And, generally, the contracts are short term in nature. So if it is things like purchasing food or insurance, all those, are 1 year or less. So do not see any headwinds relative to optimizing kind of the scale purchasing power of the combined company. Wes Golladay: Okay. Thank you for that. And then when you look at your acquisition pipeline, what type of deals are you seeing? I think you commented on geography already, but maybe talk about you seeing more value add, newer assets what is in the pipeline there? Brandon Ribar: I would say the pipeline is very consistent with the assets that we were purchasing in 2024 and 2025. So there are some that have a little bit heavier lift to them, and definitely a risk adjusted return that is stronger. And we are also looking at those that we can apply our operating model, but they are not fully stabilized at this point. They are not massive recoveries, but things like mid- to high eighties occupancy And we look at the kind of market rate profile and see pretty interesting opportunities to adjust those to higher market level rates. So I would say that our confidence in these deals comes from the fact that they look and feel very, very similar to those we have had success with in 2024 and 2025. And we are still buying them at attractive pricing relative to replacement value and feel like there is a really good near term path to driving good strong NOI recovery once we bring them on board. Wes Golladay: Great. Thank you for the time. Thank you. Operator: Your next question from the line of Benjamin Hendrix. RBC Capital Markets. Benjamin, your line is open. Please go ahead. Benjamin Hendrix: Great. Thank you very much. And Appreciate the comments about the spin advancement, particularly the RevPOR and XPOR spread, the incremental spread you are getting there. I am wondering if you could provide some additional commentary around how much of occupancy gain you might be able to attribute to some of this added leadership capacity, marketing, programming, and facility enhancements. Any way to think about how much the 240 basis points of same store occupancy growth came from these SPIN transition facilities? Thanks. Brandon Ribar: Ben, I would say we have seen good consistent growth across the board. 1 thing we included this quarter hopefully it is helpful for investors is a breakdown of the occupancy levels across just the various segments in terms of total numbers of communities at or above 90%, 95%, and then those that are still have plenty of room for recovery. And I think that tells a really nice story of balance that we have you know, a significant amount of upside in the bottom kind of 20% that are still below 80% occupancy, and a lot of those are communities that have transitioned into the portfolio as well as those that we bought in 2024 that still have good runway to them. And so I think we have been able to hold a high number of our communities in that 90% and over level. We generally run right around 10% or so of our communities that are full, and those are the areas where we can keep focusing on rate growth. But I would say there is a good mix of kind of legacy same store opportunity as well as you know, the chance to keep moving at those types of occupancy improvement levels with the assets that we are rolling in. And so we think about, like, the 2025 cohort that we talked about that is still in the low seventies in terms of its overall occupancy. So start rolling that into the same store next year and feel like we are gonna be able to continue to generate those good strong year over year occupancy gains. In the same store portfolio. Great. Benjamin Hendrix: Thanks. And then as you look at the SPIN platform's analytical capability, and kind of the insight it can give you, is there any indication of that any expansion of the pipeline, the M and A pipeline, related specifically to that? Is it opening up the pipeline, maybe making, new markets more attractive, or are we kind of continuing really with that focus on your core markets where you are where you are building clusters? Brandon Ribar: I think what it is really doing is reiterating where we can be very successful in terms of things like the markets we wanna play in, what type of density in the market that we really wanna target, the mix of products, whether it is IL, AL, or memory care, being able to tie that into the performance of existing assets within both our same store and non same store cohorts is really helpful because we are moving very quickly on deals that are off market and feel like we can underwrite them against what we have been able to do in other circumstances. Feel like our track record in terms of performance on those acquisitions is something that is also giving us a leg up when we are we are having discussions on deals. And so we apply those metrics that we are seeing in an individual community or a cluster of communities to the underwriting we are doing for new assets. And that means what is the overall percent and kind of structure of our labor model look like. In the potential acquisition opportunity. what is the rate growth profile and how quickly and how do we think about the types of units, you know, 1-bedrooms, 2-bedrooms, studios that are in the assets that we are looking at. So we really focus on how to translate our direct kind of in the 4 walls operating knowledge into our underwriting. So we are ultimately giving ourselves a very high chance of success. In delivering on an accretive transaction and ensuring that it gets integrated in a very timely fashion. As well. So I think there is all components of the SPIN that we apply when our team's underwriting the acquisition opportunities. As an operator, Thank you. Benjamin Hendrix: Thanks, man. Operator: There are no further questions at this time. I will now turn the call back to Brandon Ribar for closing remarks. Brandon Ribar: Thank you all for joining our call this morning. Have a great week. Take care. Operator: This concludes today's call. Thank you for attending. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Sonida Senior Living (SNDA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

DALLAS, August 10, 2026--(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 second quarter ended June 30, 2026. "Sonida's second quarter results reflect continued momentum from the strengthening of our operating platform and deliberate execution on our growth strategy. The Same-Store Portfolio saw occupancy expand 240 basis points year-over-year to 87.8% while NOI grew 16.9%, resulting in 250 basis points of margin expansion," said Brandon Ribar, President and CEO. "With our operating foundation firmly in place, our primary objective continues to be driving sustained strong NOI growth in the existing portfolio, guided by our differentiated resident-first philosophy. We are pairing that organic growth with disciplined pipeline development that is funded by an increasingly flexible balance sheet and underwritten with a return-driven capital allocation framework. Moreover, our acquisitions are further enhanced with SPIN's density and data advantages, which sharpens how we deploy capital and integrate communities. Together, these give us confidence in our ability to deliver durable, long-term value for our shareholders." Second Quarter 2026 Highlights Net loss attributable to common shareholders of $24.5 million, or $(0.52) per share. Normalized Funds from Operations ("FFO") of $23.7 million, or $0.48 per share. Adjusted EBITDA of $50.0 million, an increase of 30.0%, over Adjusted EBITDA (pro forma) for Q2 2025. Same-Store Net Operating Income ("NOI") of $51.5 million, an increase of 16.9% compared to prior year. Same-Store weighted average occupancy of 87.8% and RevPOR of $5,372, representing increases of 240 basis points and 4.9%, respectively, from the same pro forma measures in prior year. Subsequent Events On August 7, 2026 the Company entered into the Second Amended and Restated Term Loan Agreement with Ally Bank ("Ally Term Loan") which provides up to $380 million in borrowings. At closing, the Company drew $372.5 million on the Ally Term Loan and will have a delayed draw of $7.5 million available subject to achieving certain debt yields and debt service coverages ratios. The funds were used to fully repay the existing $122 million term loan with Ally and the $170 million on the bridge debt, with the remaining net proceeds used to pay down $70 million on the senior secured revolving credit facility. The loan has a five-year maturity with two one-year extension options and an interest rate of SOFR plus 185 basis points. The Ally Term Loan is secured by 28 of the Company’s communities. Liquidity and Capital Resources On May 18, 2026, the Company entered into an equity distribution agreement with several sales agents, whereby the Company may sell, at its option, shares of its common stock up to an aggregate offering price of $250 million (the "ATM Program"). The Company has sold 671,732 shares of common stock pursuant to its ATM Program at a weighted average price of $41.05 for $27.3 million in net proceeds. 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 $48.7 million of unrestricted cash as of June 30, 2026, 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, borrowings under our revolving credit facility, proceeds from debt financings, refinancings, and proceeds from equity offerings. These transactions are expected to provide additional financial flexibility to us and increase our liquidity position. 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 June 30, 2026 on Monday, August 10, 2026, at 11:00 a.m. Eastern Time. To participate, dial 833-461-5787 (or +1 585-542-9983 for international callers), meeting ID 658575699. A link to the simultaneous webcast of the teleconference will be available at: https://events.q4inc.com/attendee/658575699. The webcast will be available for replay for 12 months on the Company’s investor relations website and a transcript of the call will be posted shortly after the conference call ends. About the Company Dallas-based Sonida Senior Living, Inc., is one of the largest, pure-play owner-operators and investors in U.S. senior living communities, with a focus on 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 the senior housing communities we operate. As of June 30, 2026, the Company owns, manages or is invested in 164 senior housing communities with over 16,500 total units across 35 states, including 152 owned senior housing communities (inclusive of 48 managed by third-party property managers, 15 leased pursuant to triple-net leases, three owned through a joint venture investment in a consolidated entity and four owned through a joint venture investment in an unconsolidated entity) and 12 communities that the Company manages 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, 2025, filed with the Securities and Exchange Commission (the "SEC") on March 12, 2026, as such factors may be updated from time to time in the Company’s other filings with the SEC, and include the following: the Company’s ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings 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; 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; elevated market interest rates that increase the cost of certain of our debt obligations; 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; our ability to integrate our business with CNL Healthcare Properties, Inc. ("CHP") successfully, and to achieve the anticipated benefits; the possibility that companies that the Company has acquired (including CHP) or may acquire could have undiscovered liabilities, or that companies or assets that the Company has acquired (including CHP) or may acquire could involve other unexpected costs or may strain the Company’s management capabilities; potential adverse reactions or changes to business relationships resulting from the CHP Merger; the risk of oversupply and increased competition in the markets which the Company operates; the Company’s ability to maintain internal controls over financial reporting; the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes; 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 www.sonidaseniorliving.com or connect with the Company on Facebook, X or LinkedIn. DEFINITIONS 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. Our management uses RevPOR for decision making, and we believe the measure provides useful information to investors, because it reflects the average amount of resident revenue we derive from an occupied unit per month without factoring occupancy rates. RevPOR is a significant driver of our senior housing revenue performance. Same-Store Portfolio is defined by the Company as SHOP communities that are wholly or partially owned, and operational for the full year in each year beginning as of January 1st of the prior year. Our management uses Same-Store Portfolio operating results and data for decision making and components of executive compensation, and we believe such results and data provide useful information to investors, because it enables comparisons of revenue, expense, and other operating measures for a consistent portfolio over time without giving effect to the impacts of communities that were not consolidated and operational for the comparison periods, communities acquired or disposed during the comparison periods (or planned for disposition). In addition, the CHP SHOP communities were evaluated for inclusion in the Same-Store Portfolio and have been included as if they were owned by the Company at the beginning of the applicable period. Non Same-Store Portfolio is defined by the Company as SHOP communities that are wholly or partially owned and either (i) not operational or not owned for the full year in each year beginning as of January 1st of the prior year or (ii) 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 Portfolio once operating under normal course operating structures for the full year in each year beginning as of January 1st of the prior year. In addition, the CHP SHOP communities that were not included in the Same-Store Portfolio are included in the Non Same-Store Portfolio as if they were owned by the Company at the beginning of the applicable period. Senior Housing Operating Properties (SHOP) "Senior Housing" is defined as residential real estate assets designed to accommodate the needs of senior residents, including but not limited to independent living, assisted living, and memory care facilities. Within this category, "Senior Housing Operating Properties" (SHOP) refers exclusively to those properties in which the Company, directly or through third-party management agreements, maintains operational control and bears the associated risks and rewards of ownership, including but not limited to occupancy, revenue generation, and operating expenses. For the avoidance of doubt, this definition expressly excludes senior housing properties subject to triple net lease ("NNN") agreements or similar lease structures. Under such agreements, operational responsibilities, including property management, operating expenses, and financial performance, are borne solely by the lessee, and the Company’s involvement is limited to receiving fixed rental payments. As such, NNN Portfolio assets are not included within the scope of the SHOP portfolio. NON-GAAP FINANCIAL MEASURES This earnings release contains the financial measures (1) Net Operating Income, (2) Net Operating Income Margin, (3) Adjusted EBITDA, (4) Nareit Funds from Operations (5) Normalized Funds from Operations and Normalized Funds from Operations per share and (6) Same-store amounts for certain of 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, Net Operating Income Margin and Adjusted EBITDA have material limitations as performance measures, including the exclusion of certain expenses that are necessary to operate the Company and oversee its communities. Furthermore, such non-GAAP financial measures 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 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 income (expense), provision for income taxes, management fee income, 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, impairment of long-lived assets, 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. The Company presents these non-GAAP measures on a consolidated community and same-store community basis, and also on an at-share basis. In addition, for periods presented in which we did not own CHP during the full period, includes an adjustment representing the impact to NOI and NOI Margin from CHP (calculated on the same basis as the Company) for the applicable period as if the Company had acquired CHP on the first day of such period. Adjusted EBITDA 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, gain on extinguishment of debt, 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, long-lived asset impairment, casualty losses, and transaction, transition and restructuring costs. The Company presents this non-GAAP measure on an at-share basis. In addition, for periods presented in which we did not own CHP during the full period, includes an adjustment representing the impact to Adjusted EBITDA from CHP (calculated on the same basis as the Company) for the applicable period as if the Company had acquired CHP on the first day of such period. Nareit Funds from Operations and Normalized Funds from Operations Funds from operations ("FFO"), established by the National Association of Real Estate Investment Trusts ("Nareit" and "Nareit FFO") is a non-GAAP performance measure the Company uses which is defined as net income (loss) attributable to common shareholders (calculated in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. The Company defines Normalized FFO as Nareit FFO excluding other income (expense), net, transaction, transition and restructuring costs, net, expenses or recoveries related to significant disruptive events and casualty losses, non-recurring settlement fees, gains of extinguishment of debt, net, gains and losses on derivatives, net and changes in the fair value of financial instruments, and other normalized items related to noncontrolling interests and unconsolidated entities. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminish predictably over time. However, since real estate values historically have risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers Nareit FFO and Normalized FFO to be appropriate supplemental measures of operating performance. Nareit FFO and Normalized FFO presented herein may not be comparable to those presented by other companies, which may define similarly titled measures differently than the Company does. Nareit FFO and Normalized FFO should not be considered as alternatives to net income attributable to common stockholders (determined in accordance with GAAP) as indicators of the Company’s financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, Nareit FFO and Normalized FFO should be examined in conjunction with net income attributable to common stockholders as presented elsewhere herein. NET OPERATING INCOME AND NET OPERATING INCOME MARGIN (UNAUDITED) 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: ADJUSTED EBITDA (UNAUDITED) The following table presents a reconciliation of the Non-GAAP Financial Measure of Adjusted EBITDA before at-share adjustments, Adjusted EBITDA and Adjusted EBITDA, (pro forma) to the most directly comparable GAAP financial measure of net loss for the periods indicated: NAREIT FFO AND NORMALIZED FFO RECONCILIATION (UNAUDITED) The following table presents a reconciliation of the Non-GAAP Financial Measures of Nareit FFO and Normalized FFO to the most directly comparable GAAP financial measure of net loss for the period indicated: PRO FORMA FINANCIAL INFORMATION On March 11, 2026, we completed our previously announced acquisition of CHP through a series of steps ending with a forward merger of CHP with and into a subsidiary of the Company (the "CHP Merger"), with such subsidiary surviving the CHP Merger, as a result of which we now indirectly own all of the assets of CHP. For periods presented in which we did not own CHP during the full period, we present certain historical measures during our earnings call and in this earnings release on a "pro forma" basis as if the CHP Merger was consummated on the first day of the applicable period presented, as we believe such historical pro forma information provides investors with useful information about the combined business and a meaningful method of comparing the performance of combined business over historical periods. The historical pro forma information is being presented for informational purposes only and does not reflect the actual results we would have achieved had the CHP Merger occurred on the first day of the applicable period and may not be predictive of future results. The historical CHP information used to prepare the historical pro forma information included herein is based on CHP’s books and records and, in certain cases, has been adjusted to conform to the Company’s presentation of certain metrics. For example, for NOI, NOI Margin and Adjusted EBITDA, we have included pro forma adjustments representing the impact of CHP as if we acquired CHP on the first day of the applicable period. These pro forma adjustments were calculated on the same basis as the Company calculates NOI, NOI Margin and Adjusted EBITDA. Accordingly, to the extent standalone CHP information is presented herein for historical periods it may not conform to similar information previously disclosed by CHP in its SEC filings prior to the consummation of the CHP Merger. We believe that the historical pro forma information represents a reasonable estimate of the results of the combined business for the periods preceding the consummation of the CHP Merger; however, the pro forma information has not been audited. Further, the historical pro forma information does not reflect the cost of any integration activities or benefits from the CHP Merger that may be derived, both of which may have a material effect on our consolidated results in periods following completion of the CHP Merger. As a result, there can be no assurance that the historical pro forma information accurately reflects the actual results of the combined business for the periods preceding the consummation of the CHP Merger. The historical "pro forma" information presented during our earnings call and herein should not be viewed as a substitute for consolidated financial results presented in accordance with United States generally accepted accounting principles ("GAAP") or pro forma financial statements prepared in accordance with Article 11 of Regulation S-X. Please refer to our consolidated financial statements in our Form 10-Q filed with the SEC on August 10, 2026 for our actual historical results presented in accordance with GAAP for the quarter ended June 30, 2026 and our Current Report on Form 8-K filed with the SEC on May 18, 2026 for our actual pro forma combined results prepared in accordance with Article 11 of Regulation S-X for the year ended December 31, 2025 and the three months ended March 31, 2026. Our independent registered public accounting firm has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the historical combined information included herein and does not express an opinion or any other form of assurance with respect thereto. CHP PRO FORMA ADJUSTMENTS (UNAUDITED) The following table presents historical CHP pro forma information for the periods indicated: View source version on businesswire.com: https://www.businesswire.com/news/home/20260808259182/en/ Contacts Investor Relations Megan CaldwellVP, Investor [email protected] [email protected] Jason [email protected]

This article first appeared on GuruFocus. Same-Store Occupancy: Weighted average occupancy increased 240 basis points year-over-year to 87.8%. Same-Store NOI: Grew 16.9% year-over-year in Q2. Same-Store NOI Margin: Expanded 250 basis points year-over-year to 32.6%. RevPOR (Same-Store): Grew 4.9% year-over-year. Total Portfolio Occupancy: Weighted average occupancy increased 170 basis points year-over-year to 86.6%. Total Shop NOI: Grew 17.5% year-over-year. Total Shop NOI Margin: 29.9% for the quarter. Normalized FFO per Share: $0.48 for the second quarter. Adjusted EBITDA: $50 million for the second quarter. Same-Store Labor Costs: Declined 130 basis points as a percentage of revenue year-over-year to 40.4%. Incremental Flow-Through: 63.4% on the increase in revenue for the same quarter and prior year. 2025 Acquisition Cohort Occupancy: Up 1,400 basis points since Q4 2025, reaching 70.4% as of June. 2025 Acquisition Cohort NOI: Up 1,600 basis points since Q4 2025, with NOI margin improving from negative 1% in Q4 2025 to 15% in Q2 2026. 2024 Acquisition Cohort Yield: Approximately 11.5% relative to cost basis. Acquisition Pipeline: Under contract to acquire approximately $88 million of assets. Total Debt: Approximately $1.6 billion at a weighted average interest rate of 5.43% on a pro forma basis. ATM Program: Issued approximately 672,000 shares at an average price of $41.50, resulting in net proceeds of $27.3 million. Warning! GuruFocus has detected 10 Warning Signs with SNDA. Is SNDA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sonida Senior Living Inc (NYSE:SNDA) reported strong same-store occupancy growth of 240 basis points year-over-year to 87.8%, with momentum continuing into Q3 with a 40 basis point sequential increase in July. Same-store community NOI grew 16.9% year-over-year, with NOI margin expanding 250 basis points to 32.6%, demonstrating significant operating leverage. The company successfully transitioned 14 CHP communities to Sonida management, with six communities transitioned in May delivering over 60% year-over-year NOI improvement and 850 basis points of margin expansion. Sonida Senior Living Inc (NYSE:SNDA) completed a $380 million five-year term loan with Ally Bank, extending its debt maturity profile with 97% of total debt maturing in 2029 or later and reducing near-term refinancing risk. The company has an $88 million acquisition pipeline under contract, expected to generate mid-teens levered IRRs, and is seeing strong performance from its 2025 cohort with occupancy up 1,400 basis points since Q4 2025. The Stone joint venture portfolio achieved a cash-out refinancing, returning the full amount of invested capital to Sonida and its partner, with NOI growing 5.6 times since acquisition. Sonida Senior Living Inc (NYSE:SNDA) has not yet provided normalized FFO guidance, with plans to issue guidance only for full year 2027, leaving investors without near-term financial targets. The 2025 acquisition cohort still has significant upside ahead with occupancy at only 70.4% as of June, indicating a prolonged stabilization period before these assets contribute fully to same-store results. The company is actively recycling 14 non-core communities representing less than 2% of total NOI, which may signal ongoing portfolio quality issues and potential near-term revenue drag. Sonida Senior Living Inc (NYSE:SNDA) continues to rely on third-party managers for some communities, which could limit operational control and integration speed across the portfolio. The company's leverage remains elevated at approximately $1.6 billion in total debt, with a weighted average interest rate of 5.43%, and the target leverage range of 6 to 6.5 times still requires deleveraging efforts. The triple-net lease portfolio, with initial lease maturities between 2030 and 2032, presents uncertainty regarding future cap rates and potential recycling spreads, with management indicating a 100-200 basis point spread opportunity that is not yet realized. Q: Can you provide guidance on normalized FFO and when the company plans to start issuing formal guidance? A: Brandon Ribar, President and CEO, stated that the company's goal is to begin issuing guidance for the full year 2027. This timeline allows the company to complete the integration of the CHP portfolio and other acquisitions in its pipeline before providing formal forward-looking financial targets. Q: What is the expected stabilized occupancy trajectory for the portfolio, and how will the new COO and SPIN platform contribute to that growth? A: CEO Brandon Ribar indicated that achieving low to mid-90s occupancy is "very achievable" given the current momentum. He highlighted that the new COO, Anton Nicodemus, will enhance the resident and customer experience, which is critical for driving renewals and referrals. The SPIN platform provides real-time data on staffing and pricing, enabling the company to balance occupancy growth with rate expansion, especially as communities exceed 90% occupancy. Q: What is the strategy and timeline for the triple-net lease portfolio, and what is the potential spread for redeploying that capital? A: CEO Brandon Ribar explained that while the company is not interested in growing the triple-net business, it is evaluating whether to pursue a market transaction within the next six months to a year. The potential spread between selling the triple-net assets and acquiring new shop-style assets is estimated at 100 to 200 basis points, which would be a solid return enhancement for the portfolio. Q: Does the company's preference for transitioning assets to its own operating platform create hesitancy among sellers or operators in the M&A market? A: CEO Brandon Ribar stated that the opportunity to be part of the Sonida platform has overwhelmingly been a reason for success in deals. While there are occasional stipulations from operators with close relationships to sellers, the company maintains flexibility in its structures and has not found this to be a significant barrier in its bidding process. Q: Beyond the key markets of Dallas-Fort Worth, Northern Florida, and Atlanta, where does the company see an immediate need to build scale and density? A: CEO Brandon Ribar identified the Midwest as a key area for additional density, citing the strong performance of the Stone portfolio. The company is also looking at the Mid-Atlantic region, specifically the Carolinas and Virginia, as areas for expansion while continuing to grow in its existing key markets. Q: With the increased scale from the CHP merger, can the company leverage its size to renegotiate vendor contracts and realize cost savings by 2027? A: CFO Kevin Detz confirmed that the company is already working on master contracts where it shares vendors with the acquired communities. Most contracts, such as those for food and insurance, are short-term (one year or less), so the company does not anticipate any headwinds in optimizing its scale purchasing power. Q: What types of assets are in the current acquisition pipeline, and how do they compare to previous cohorts? A: CEO Brandon Ribar stated that the pipeline is very consistent with assets purchased in 2024 and 2025. These are not massive recoveries but rather assets with mid-to-high 80s occupancy where the company can apply its operating model to adjust rates to market levels. The company is buying these assets at attractive prices relative to replacement value, with a clear path to strong NOI recovery. Q: How much of the 240 basis points of same-store occupancy growth can be attributed to the SPIN platform and added leadership capacity? A: CEO Brandon Ribar noted that growth has been consistent across the board. He highlighted the balance in the portfolio, with a significant number of communities at or above 90% occupancy and a bottom 20% still below 80%, representing upside. The 2025 cohort, still in the low 70s for occupancy, is expected to drive continued year-over-year gains when it enters the same-store pool next year. Q: Is the SPIN platform's analytical capability expanding the M&A pipeline or making new markets more attractive? A: CEO Brandon Ribar explained that SPIN is reiterating where the company can be successful by providing insights into market density, product mix, and labor models. This data is applied directly to underwriting new assets, giving the company a high chance of success in delivering accretive transactions and ensuring timely integration. The track record of performance is also giving the company a competitive edge in off-market deal discussions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Sonida Senior Living, Inc.? Here are five stocks we like better. Operating performance improved significantly: Same-store occupancy rose 240 basis points year over year to 87.8%, while same-store NOI increased 16.9% and the NOI margin expanded to 32.6%. Lower labor costs, higher rates and stronger lead conversion supported the gains. CHP integration is showing early results: Sonida transitioned 14 acquired communities to its management platform, with six early-transition properties posting more than 60% year-over-year NOI growth and an 850-basis-point margin expansion. Growth and balance-sheet plans are advancing: The company is under contract to acquire approximately $88 million of assets, is selling 14 non-core communities to recycle capital, and refinanced debt to extend maturities, with 97% of borrowings due in 2029 or later. Management aims to begin issuing full-year normalized FFO guidance in 2027. Sonida Senior Living (NYSE:SNDA) reported second-quarter operating gains driven by occupancy growth, margin expansion and progress integrating the acquired CNL Healthcare Properties Inc. portfolio, while executives said the company is building a pipeline of additional acquisitions and targeting full-year normalized FFO guidance in 2027. President and CEO Brandon Ribar said the company’s same-store weighted average occupancy increased 240 basis points year over year to 87.8% in the second quarter. Total portfolio occupancy also increased 40 basis points sequentially in July from June, he said. → MarketBeat Week in Review – 08/03 - 08/07 Same-store community net operating income, or NOI, rose 16.9% from a year earlier, while the same-store NOI margin expanded 250 basis points to 32.6%. On a total portfolio basis, Sonida reported normalized funds from operations of $0.48 per share and adjusted EBITDA of $50 million. Chief Financial Officer Kevin Detz said the percentage of same-store communities with occupancy above 90% increased to 54% from 43% in the second quarter of 2025. Meanwhile, the share of communities below 80% occupancy fell to 20% from 30%. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Same-store revenue per occupied room, or RevPOR, increased 4.9% year over year, supported by rate strength after the company renewed 70% of resident leases during the first quarter, Detz said. Sonida cited digital marketing efforts and improved conversion from leads to tours as contributors to occupancy growth. Labor costs declined 130 basis points as a percentage of revenue to 40.4%, a portfolio low, according to Detz. Direct labor improved by 100 basis points, while contract and other labor remained minimal and stable. Sonida recorded 63.4% incremental flow-through on same-store revenue growth, he said. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Total senior housing operating portfolio, or SHOP, NOI grew 17.5% year over year. Total SHOP occupancy rose 170 basis points to 86.6%, while total SHOP NOI margin reached 29.9%. Ribar said Sonida sees stabilized occupancy reaching the low- to mid-90% range over time, though the pace will depend on company execution and market conditions. He said stronger pricing becomes especially important as communities exceed 90% occupancy. Sonida completed its acquisition of CNL Healthcare Properties Inc., or CHP, on March 11. The company said results discussed on the call generally present the combined business on a pro forma basis for periods in which Sonida did not own CHP for the full period, while reported GAAP financials include CHP results only from the closing date. As of July 1, Sonida had transitioned 14 communities, representing more than one-quarter of the CHP SHOP portfolio, to Sonida management. Ribar said the transitions were smooth and helped the company refine its integration process and data migration to its Sonida Performance Insight Navigator, or SPIN, platform. Six communities transitioned at the beginning of May generated year-over-year NOI improvement exceeding 60% and expanded NOI margin by 850 basis points compared with the second quarter of 2025, Ribar said. The company also introduced Anton Nicodemus as chief operating officer, a newly created position. Ribar said Nicodemus will focus on building a hospitality-driven culture and improving the resident and customer experience, including culinary quality, service consistency, programming, sales and revenue management. Sonida said SPIN combines resident care, workforce and community-level data to provide real-time visibility into occupancy, rates and labor trends across more than 100 communities. Management said the platform’s data capabilities are also being used in underwriting potential acquisitions. Sonida is under contract to acquire about $88 million of assets that management said are located in attractive markets and offer opportunities for operational improvement. Ribar said the company expects the assets to generate a mid-teens unlevered internal rate of return and to be accretive to normalized FFO and net asset value per share on a stabilized basis. The company said its current acquisition pipeline includes assets similar to those purchased in 2024 and 2025, ranging from opportunities requiring more substantial operational improvement to communities with occupancy in the mid- to high-80% range that offer potential for rate increases. Sonida’s 2025 acquisition cohort had occupancy of 70.4% as of June. Since the fourth quarter of 2025, its first full quarter of ownership, occupancy increased 1,400 basis points and NOI increased 1,600 basis points, according to Ribar. NOI margin for the four-community cohort improved from negative 1% in the fourth quarter of 2025 to 15% in the second quarter. The company also continues to pursue the disposition of 14 non-core communities, which represented less than 2% of total second-quarter NOI. Detz said the capital recycling plan is intended to redeploy funds into higher-quality communities with stronger growth and margin characteristics, while also supporting deleveraging. Regarding its 15-community triple-net lease portfolio, Ribar said Sonida does not intend to grow that business. The company is evaluating whether it could eventually recycle those assets into SHOP investments, though he said management is not in a hurry because the properties remain strong cash-flowing assets. He said Sonida would seek a 100- to 200-basis-point spread between the triple-net asset sale economics and redeployment opportunities. Sonida said its balance sheet is moving toward a targeted near-term leverage range of 6 times to 6.5 times. As of June 30, the company had two term loans totaling $575 million, including an additional $25 million commitment received during the quarter. After quarter-end, Sonida completed a $380 million, five-year term loan with Ally Bank, including two extension options. Proceeds were used to settle a $170 million bridge loan, repay an existing $122 million Ally term loan and reduce borrowings under the senior revolving credit facility. On a pro forma basis following the Ally financing, Sonida had approximately $1.6 billion in total debt with a weighted average interest rate of 5.43%. The company said 86% of its debt is fixed rate or floating-rate hedged, while 97% matures in 2029 or later. In July, Sonida issued approximately 672,000 common shares through its at-the-market program at an average price of $41.05 per share, generating net proceeds of $27.3 million. The company said it expects to use the proceeds to fund the equity portion of near-term acquisitions. When asked about earnings guidance, Ribar said Sonida’s goal is to begin providing full-year guidance for 2027 after it further integrates the CHP portfolio and works through acquisitions in its pipeline. Sonida Senior Living (NYSE: SNDA) is a publicly traded company that owns and operates senior living communities in the United States. The company’s core business centers on providing housing and care services for older adults, with an emphasis on assisted living, memory care and related supportive services tailored to residents’ needs. Sonida’s communities combine residential accommodations with on-site services such as personal care assistance, medication management, dining programs, social and recreational activities, and clinical oversight. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sonida Senior Living Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Concentra Group (CON) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.81%. A quarter ago, it was expected that this provider of occupational health services would post earnings of $0.35 per share when it actually produced earnings of $0.4, delivering a surprise of +14.29%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Concentra, which belongs to the Zacks Medical Services industry, posted revenues of $606.03 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.28%. This compares to year-ago revenues of $550.78 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Concentra shares have added about 56.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Concentra has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Concentra was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $602.27 million in revenues for the coming quarter and $1.52 on $2.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Sonida Senior Living (SNDA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This operator of senior living communities is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +43.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sonida Senior Living's revenues are expected to be $187.92 million, up 126.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Concentra Group Holdings Parent, Inc. (CON) : Free Stock Analysis Report Sonida Senior Living, Inc. (SNDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. March 11, 2026 at 4:30 p.m. ET President and Chief Executive Officer — Brandon Ribar Chief Financial Officer — Kevin Detz Vice President, Investor Relations — Megan Caldwell Need a quote from a Motley Fool analyst? Email [email protected] Operator: Hello, everyone. Thank you for joining us, and welcome to Sonida Senior Living Q1 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Megan Caldwell, VP of Investor Relations. Megan, please go ahead. Megan Caldwell: Thank you, operator. All statements made today, May 11, 2026, which are not historical facts, are forward-looking statements within the meaning of federal securities laws. The company expressly disclaims any obligation to update these statements in the future, except as required by law. Actual results or performance may differ materially from forward-looking statements. Certain factors that could 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, including the risk factors contained in the annual report on Form 10-K and quarterly reports on the Form 10-Q. Please see today's press release for the full safe harbor and forward-looking statements which may be found in the Form 8-K filing from this morning or at the company's Investor Relations page found at investors.sonidaseniorliving.com. As further described in the company's current report on Form 8-K filed with the SEC this morning, the company completed its previously announced acquisition of CNL Healthcare Properties, Inc., or CHP, on March 11, 2026. The transaction was completed through a series of steps ending with a forward merger of CHP with and into a subsidiary of Sonida. And as a result, the company now directly owns all of the assets of CHP. Unless otherwise specifically noted or the context otherwise requires, the financial results we are discussing today and that are included in our presentation reflect the combined company on a pro forma basis for the full quarters including CHP for the entire reporting period. These pro forma metrics giving effect to the CHP acquisition are preliminary and subject to change. And we have provided estimated ranges in our earnings release. For the sake of clarity, during this earnings call, we will discuss our pro forma results based on the midpoint of the range presented, but we refer you to our earnings release for the ranges and more information. Please note that our GAAP financials reflect CHP's results from the closing date only. References to pro forma metrics, including those presented in the investor presentation, reflect a full quarter of CHP activity. Please note that during this call, the company will present non-GAAP financial measures. For reconciliations 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 Sonida's first quarter 2026 earnings presentation in the Investor Relations section of the company's website. In addition, we have included supplemental earnings information within our presentation consistent with prior quarter releases. I would now like to turn the call over to Sonida President and CEO, Brandon Ribar. Brandon Ribar: Thanks so much, Megan, and we are excited to welcome you to the Sonida leadership team. Good morning, and thank you for joining us on our first quarter 2026 earnings call. This quarter marks an important milestone for Sonida as we report results following a period of transformational expansion. With platform integration underway and on track and our operating foundation firmly in place, we are entering what we described in our recently published shareholder letter as Phase 3: Compounding. In Phase 1: Survival, and Phase 2: Stabilization, our team focused on strengthening the foundation of the business, stabilizing operations, repairing and fortifying the balance sheet, upgrading portfolio quality and investing in the operating capabilities required to compete effectively at scale. Today we are shifting from building that foundation to now leveraging it to compound value for our shareholders. As a scaled, pure-play senior housing owner and operator, we enter this next phase supported by a stronger balance sheet, expanded liquidity and a differentiated operating platform. Performance for the company continues to trend positively, supported by our constructive early momentum in 2026. Leveraging that stable operating foundation, we are heavily focused on a smooth integration of recently added communities into the Sonida platform, and unlocking a defined set of unmodeled synergies across our cost structure and operating model. These initiatives span asset management and community-level operations and are designed to support margin expansion and cash flow growth over time. Equally important, we are reinforcing performance through clearly defined incentive structures tied to community-level outcomes and dedicated operational support to sustain results while minimizing disruption as operational integration progresses. Underpinning all of this is the quality of our people. We entered Phase 3 with a meaningfully strengthened leadership team across operations, leaders who have deep experience at driving performance at scale. That investment in talent is not incidental to our growth strategy. It is the foundation on which Phase 3 is built. The CHP transaction was not simply an owner-operator combination. We acquired a REIT and, with it, a network of third-party manager relationships that preserves institutional knowledge and operational continuity across the portfolio. Those relationships are key to the performance trajectory of these communities whether or not they ultimately move to Sonida operations. And as some of those relationships mature into long-term strategic partnerships, they are a growing source of deal flow. Our recent preferred equity investment is a good example. Through one of these managers, we invested capital to support the refinancing of a high-end, full-continuum community in Texas while earning an attractive risk-adjusted return. This is the kind of bespoke relationship-driven investment Sonida is built for and will continue to pursue. Executing across a larger, more complex portfolio requires the right operating infrastructure, and that is precisely what we have built. Essential component of that work is the rollout of SPIN, our Sonida Performance Insight Navigator. SPIN is our proprietary technology infrastructure that integrates resident care data, workforce information and operational metrics into a single actionable framework, giving community leaders the real-time visibility to act decisively as occupancy and acuity evolve. The platform optimizes both labor and nonlabor costs against relative occupancy, acuity and care levels to enhance unit economics and drive incremental margin expansion. SPIN provides the framework for decentralized decision-making without sacrificing accountability, enabling our local leaders to drive community performance with owner-operator urgency and without bureaucratic lag. Importantly, we view SPIN as a foundational operating platform rather than a finished product. We are continuously improving its capabilities and refining usage. As our platform scales across a larger and more diverse portfolio, it generates a richer data set, further strengthening timely insights, improved decision-making and compounding margin expansion. Each community and portfolio acquisition added to SPIN accelerates asset-level visibility and tie to performance through a standardized data infrastructure, which protects NOI from day 1. This scalable foundation is central to our growth strategy and our ability to drive sustainable margin expansion across our growing portfolio. As SPIN becomes more deeply embedded, early feedback and performance indicators have been encouraging, and we believe there remains significant opportunity to further refine and leverage the system as the business continues to scale. As part of Phase 3, we are also introducing our Refined Capital Allocation Framework, first outlined in our Shareholder Letter and included in today's earnings presentation. This framework establishes a clear and disciplined approach for how we will evaluate and deploy capital as we move into the next phase of growth. Following Kevin's remarks, I'll expand on the strategy and its core principles. Turning to our performance for the first quarter. We are pleased with both the results we delivered and the momentum we are building. As previewed on our fourth quarter earnings call, this quarter reflects our new reporting buckets: Same-Store, Non Same-Store and NNN Lease. The portfolio delivered solid year-over-year growth across our Same-Store communities, highlighted by continued occupancy expansion, sustained pricing power and meaningful NOI margin improvement. On a Same-Store basis, weighted average occupancy increased 220 basis points year-over-year to 87.2%, reflecting steady improvements in move-in volume, stable length of stay trends and continued execution by our sales, operations and clinical teams. This occupancy growth combined with significant annual rate increases drove a 7.6% increase in resident revenue and a 5% increase in RevPOR, demonstrating our ability to capture value while maintaining a high-quality resident experience. Sonida's SHOP portfolio is concentrated in markets projected to outpace the national average for 75-plus population growth by approximately 300 basis points over the next 5 years, positioning the portfolio at the intersection of demographic demand. Importantly, this revenue growth translated efficiently to the bottom line. Same-Store community NOI increased 14% year-over-year to $48 million, and NOI margins expanded 170 basis points to 31.2%. Based on early operational indicators across the portfolio, the performance we saw in the first quarter has continued into the second quarter. Last week we completed the first operational transition following the CHP acquisition, bringing 6 communities from 2 third-party operators onto the Sonida platform. These communities represent an important value creation opportunity for the company, and we are initially encouraged by the immediate feedback and smooth execution by our operational excellence team. We expect to transition an additional 11 communities from 4 third-party operators this summer while developing strategic growth partnerships with a select group of in-place third-party operators. Our first quarter results reinforce the core tenets of our strategy: driving organic growth through consistent operational execution, leveraging pricing power responsibly and deploying capital in ways that enhance long-term earnings power. The scale achieved through the CHP acquisition further strengthens this approach by expanding our regional density, improving purchasing and operating leverage, and increasing flexibility to allocate capital toward the highest return opportunities across the portfolio. Our team remains intensely focused on execution both within the stabilized portfolio and across communities that are still ramping. We are encouraged by the momentum we are carrying into 2026 and confident in the durability of the operating trends taking shape across the portfolio. With that, I'll turn the call over to Kevin to walk through the financial results and balance sheet in more detail. Kevin Detz: Thanks, Brandon. Before jumping into our results, I'd like to start on Slide 15 with a brief overview of our new reporting framework, how we're segmenting the portfolio and why this structure is important for the company. Beginning with the first quarter of 2026, we are reporting results across 3 portfolio groupings: Same-Store, Non Same-Store and NNN Lease. This structure better reflects differences in asset maturity across the portfolio and provides clear transparency into stabilization dynamics and capital allocation decisions. As Brandon discussed earlier, a core element of our Phase 3 strategy is the continued evolution of the portfolio toward communities with more durable, long-term growth characteristics. To support that objective, we will be deliberate in recycling capital out of select lower-growth or noncore communities over time. Based on current visibility, this represents approximately 10% of the portfolio by community count. Importantly, these communities represent significantly less than 10% of total NOI for the quarter ended March 31, 2026, reflecting their lower relative margin and growth profile. The Non Same-Store portfolio captures these noncore assets being ready for disposition alongside recently acquired and stabilizing communities, as well as communities undergoing targeted reinvestments or care model conversions. By separating these assets from our stabilized Same-Store base, we provide a clear view of the portfolio's core earnings power while highlighting areas of active optimization and integration. Over time, this framework allows us to more clearly demonstrate how disciplined portfolio management and capital deployment are contributing to margin expansion and long-term per share value creation. The NNN Lease portfolio includes the 15 communities we own that have operating leases in place. The initial lease maturities are between May 2030 and July 2032 and include tenant renewal options. Turning to Slide 16. And as a reminder, all metrics referenced reflect a full quarter on a pro forma basis. Our Same-Store portfolio delivered strong year-over-year growth across all key operating metrics. RevPOR increased 5% as a direct result of another strong annual rate renewal campaign. This continued rate trajectory, along with a 220 basis point increase in occupancy, yielded a 7.6% increase in Same-Store resident revenue. Importantly, more than half of this revenue growth flowed through to NOI over the same period. Same-Store community NOI increased 14% year-over-year to $48 million, while NOI margins expanded 170 basis points to 31.2%, supported by a strong contribution from our 2024 acquisition cohort as those communities continue to progress towards stabilization. These Same-Store results reflect effective labor management, disciplined control of nonlabor operating costs and the operating leverage we continue to generate as occupancy ramps up across a still-maturing Same-Store portfolio. With enhanced visibility into our revised Same-Store portfolio, we believe our ability to deliver on outsized resident rate increases commensurate with our elevated resident service offering, combined with a now stable operating cost profile, should result in wider incremental margin gains as occupancy continues to climb. Moving to total portfolio results on Slide 17. Total SHOP NOI grew 11.3%, supported by a steady same-store performance. Weighted average occupancy increased 100 basis points year-over-year to 85.7%, reflecting continued strength across stabilized core portfolio while incorporating acquired communities with lower starting occupancy basis and assets still in transition. Additionally, as seen on Slide 37, the percentage of communities with occupancy above 90% grew from 39% to 52%. Conversely, the percentage of communities below 80% decreased from 28% to 20%. In addition to the occupancy gains, the total SHOP RevPOR increase of 4.9% was consistent with the Same-Store portfolio's increase of 5%, supporting the quality of the underlying geographical submarkets with broader occupancy upside realizable upon community stabilization and/or transition. Resident revenue increased 8.5% year-over-year and community NOI reached $51.3 million, with NOI margin expanding 70 basis points year-over-year despite the near-term dilution associated with bringing newly-acquired, noncore and transitioning communities into the platform. I'll now spend some time diving deeper into our Same-Store portfolio and what's driving performance. Turning to Slide 18, we continue to see strong pricing fundamentals across the portfolio. Underlying RevPOR growth remains strong as occupancy continues to ramp. In the first quarter, our resident lease renewal rate averaged 6.5%. Additionally, within the Same-Store portfolio, there are several legacy CHP communities that utilize the rolling anniversary convention for annual resident rate increases that should provide opportunity to further capture additional rate increases throughout the year. Finally, as we progress towards near-term management transitions that we referenced earlier in the call, there should be ancillary opportunities associated with the overlay of our clinical platform and the potential capture of incremental level of care revenue. I'll now turn briefly to our year-over-year expense trends on Slide 19. Our Same-Store labor efficiency continued to improve in the first quarter. Total labor costs declined approximately 100 basis points as a percentage of revenue on a year-over-year basis, driven primarily by improved direct labor productivity, while both contract and other labor remain minimal and stable. The significant decrease in direct labor reflects our targeted pay-for-performance initiatives implemented in early 2025 and referenced in our recent Shareholder Letter. Specifically, SPIN allows us to more precisely measure job function productivity and invest in our top performers through above-market pay increases. This in turn resulted in fewer but more impactful labor hours required to serve our residents while significantly increasing retention and morale. These total labor results also reflect the durability of the more tactical labor initiatives we implemented in the second half of last year, all supported by SPIN. This included more informed and tighter scheduling discipline, daily staffing KPI dashboards, and ongoing work oversight and training from our corporate support center as occupancy continues to scale. On the nonlabor side, expenses remained well controlled. While EXPOR increased modestly year-over-year, it grew meaningfully below RevPOR, resulting in a 320 basis point expansion in the RevPOR-to-EXPOR spread on a year-over-year basis. This reflects procurement efficiencies, disciplined cost management and the benefits of increased scale across the combined platform. Turning to balance sheet on Slide 20. Our balance sheet remains well positioned as we continue to make progress toward our targeted leverage range of 6 to 6.5x. As of March 31, 2026, the company's capitalization includes 2 term loans, totaling $550 million priced at SOFR plus 195 basis points, with step-down that allows pricing to compress to as low as SOFR plus 130 basis points as leverage is reduced. These facilities provide attractive economics and meaningful flexibility as we continue to execute on our operating and growth initiatives. Since quarter-end, we have further strengthened our capital structure through an additional $50 million upsizing to corporate debt facilities, which allowed us to reduce our bridge financing dollar for dollar to $170 million and increase capacity within our permitted facilities with no change of net debt. As a result, our capital stack is now even more weighted toward longer-duration, lower-cost financing. In addition, as of today, our secured revolving credit facility now carries a $455 million total commitment inclusive of the additional post-quarter commitment, and continues to feature an accordion that provides significant incremental borrowing capacity to support future growth. Taken together, our bank facilities represent $1.2 billion of committed capital, underwritten by a single borrowing base and supported by a strong diversified lender group that includes both new relationships and our long-standing partners: BMO and RBC. We remain very pleased with the quality, flexibility and scalability of this capital structure as we execute on our growth and deleverage strategy. Lastly, we expect the outstanding bridge loan of $170 million to be refinanced with new mortgage debt in the coming months. On the asset side, our approximate cash balance as of April 30 sits slightly above $50 million. Subsequent to quarter-end, we paid down $17 million on our revolver and closed 2 small investments, buying out a JV partner's interest in a high-performing 2024 acquisition cohort community for $3.6 million and investing $2.9 million of preferred equity that was referenced by Brandon earlier in the call. The balance of the cash was used to settle post-close transaction expenses. As of April 30, we had over $100 million in availability under our revolving credit facility, which we expect to increase based on our NOI growth. Overall, our first quarter results reflect the earnings power of a maturing Same-Store portfolio, strong rate growth, disciplined cost management and expanding margins. They also demonstrate our ability to absorb near-term dilution from newly-acquired and transitioning communities as they progress along the stabilization curve. With that, I'll hand things over to Brandon to close out the call by walking through our new capital allocation framework. Brandon Ribar: Thanks, Kevin. As I noted earlier, today we formally introduced our Refined Capital Allocation Framework, which is a core pillar of Sonida's Phase 3 strategy. This framework reflects a simple but powerful belief that long-term value creation in seniors housing comes from the combination of disciplined capital allocation and exceptional operating execution. And every investment decision we make in Phase 3 will be measured against that standard. Our approach is grounded in 3 core principles. First, we will continue to enhance the quality and strategic positioning of our portfolio by investing in assets, markets and operating initiatives that strengthen the durability and long-term earnings power of the platform, while actively recycling capital out of lower-growth or noncore assets. Second, we will deploy capital only where we believe returns meaningfully exceed our cost of capital and drive accretion to free cash flow and net asset value per share. Scale alone is not the objective; compounding per share value is. Importantly, our framework is return-driven, not category-driven. We will pursue stabilized assets when price, structure and fit meet our return thresholds. And third, we will maintain disciplined risk-adjusted execution, preserving balance sheet flexibility so we can reach our near-term leverage target in the mid-6x range, with a longer-term goal of an even lower level that allows us to play offense through any future market volatility and act decisively as the opportunity set evolves. In practice, we deploy capital in a deliberate sequence. First priority is the highest-conviction internal opportunities: optimizing occupancy, RevPOR and margins, and investing in selective CapEx with the clearest return visibility across the existing portfolio. From there, we pursue accretive external growth, targeting acquisitions with operational upside, strategic fit and disciplined underwriting, where returns are driven primarily by operational improvement and platform integration, not cap rate compression. And we maintain a strong focus on top MSA densification, building regional clustering that compounds operating leverage over time. Underpinning this framework is what we call our Sonida Growth Flywheel. Each acquisition makes the platform more powerful, broadening deal flow, deepening operator relationships and enriching the data sets that power SPIN, enabling sharper benchmarking and performance improvement across a larger, more diversified asset base. This reinforcing cycle has a structural advantage that compounds over time. That flywheel also expands the aperture of investable opportunities available to us. As our platform scales and our operating track record deepens, we are increasingly well positioned to pursue higher-quality assets with stable operating characteristics provided they are located in strategic growth markets and can be acquired at a basis aligned with our cost of capital. For those opportunities, our underwriting discipline remains consistent. We require a clear line of sight to FFO per share accretion based on the underwritten growth profile of the asset, supported by the demographic tailwinds of the market and our demonstrated ability to drive performance through the Sonida platform. This is not a theoretical framework. Our 2024 acquisition cohort, 19 assets acquired at an attractive basis and underwritten to a 10%-plus stabilized yield on cost over an 18 to 24-month horizon, is tracking ahead of plan. As of the first quarter, that cohort is running at an 11.5% yield on cost on an annualized basis, with meaningful gains across occupancy, NOI margin and absolute NOI. That track record gives us confidence in our underwriting discipline and the further refined operating model behind it. With an operational foundation firmly in place, a scaled and integrated platform and a sector backdrop that we believe is increasingly favorable, we are focused on deliberately compounding value over time and delivering durable, long-term returns for our shareholders. Central to that execution is a people-centered culture and a leadership team with deep experience scaling senior living platforms, a combination that reinforces our confidence in the strategy and our ability to deliver on it. Thank you to everyone for joining our call today. This concludes our prepared remarks. Operator, please open the line for any questions. Operator: [Operator Instructions] Our first question comes from the line of Ronald Kamden from Morgan Stanley. Derrick Metzler: This is Derrick Metzler on for Ron. I guess you guys have been growing at an impressive rate, expanding the portfolio. And I know the dust has barely settled for the acquisition, but I guess looking forward, have you guys -- how should we think about the rate that you'll continue to deploy additional capital, continue to grow the portfolio? And are there other kind of large portfolios similar to this that might be in your pipeline in the next couple of years? Or should we be looking at more like one-off assets and community acquisitions? Brandon Ribar: So I'd say a couple of things. One is we remain very active in the acquisition market, that not only the work we're doing to integrate the assets that we've just completed the purchase of in March, but also identifying opportunities to continue growing, building density in similar -- in some new markets as well. I'd say that we're targeting across the board opportunities both on the enterprise side as well as the individual asset basis. We've set up the company to be able to continue to purchase as we are integrating the CHP portfolio. And so we are engaging on both fronts. And I think in terms of just size of our pipeline, feel really good that it's at a robust level and believe that we can continue to acquire, if you kind of remove the CHP acquisition from the last couple of years, continue to acquire at a consistent pace as we did in '24 and 2025. Derrick Metzler: Great. That's really helpful. As is the capital allocation plan that you guys published, I guess you've got really good returns on your '24 acquisitions. And is that a similar range that you're targeting going forward? Or have you put out a different set of kind of yield or IRR hurdles that you're targeting as part of this plan? Brandon Ribar: I'd say that we're in a position to continue to target opportunities of similar quality to -- as what we bought in 2024. It's fair to say that the returns may have tightened just a bit because the markets, I think, heated up since 2024. We feel confident that our operating capabilities, when applied to kind of portfolio-level or smaller acquisition types of opportunities, can continue to drive yields that are really strong and in the high-single, low-double digits. So we also believe there's good opportunity in those 2024 assets to continue growing. So that 11.5% yield that we referenced in our deck, that number will continue to improve as operational performance in that cohort stabilizes as well. Operator: Your next question comes from the line of Wes Golladay from Baird. Wesley Golladay: Can you talk about the SPIN? Is it something you're using in underwriting right now, or will it be a big part going forward? And do you have any incremental SPIN -- or spend to build off the SPIN platform? Brandon Ribar: So twofold. One is, we are using it currently in our underwriting process as we think about where assets are located and how they compare to any and all -- any of our existing portfolio across the 153 communities. And so we can look at margin trends. We can look at occupancy and rate profile of our existing communities to help us in underwriting assets in markets where we are today. I'd say that the big things we think about in terms of the benefit of SPIN is the timeliness of information that our communities are receiving on a real-time basis. And then the granularity of the information that, when we combine what we can now see across our various systems, helps people in decision-making around deploying labor that's in line with the needs of our residents. It also helps us to identify how residents are trending from a clinical perspective on the kind of, call it, their wellness time line. And then it also helps us with identifying opportunities on the rate front, both in capturing the rate requirements for the services we're providing, but also we can identify when occupancy is getting even higher where we have areas that we can grow rate and improve market rate. So we use it not only for acquisitions, but kind of the real-time decision-making for our local and regional leadership teams. And we'll continue to invest in it. Sorry, I wanted to answer your last question. But we do have investments, as opportunities in AI continue to unfold that will allow for, again, more informed decision-making and advanced analytics, we'll keep investing on the AI front. Wesley Golladay: Okay. And then you did mention unmodeled synergies. Do you expect to see any of that this year? And can you quantify any of it at this point? Brandon Ribar: I'd say that we will see it this year. We're already seeing opportunities. We referenced that we transitioned the first 6 communities into the Sonida management portfolio here just last week. And so the communities that we've identified for transition in 2026 in various phased approach, each of those, we do think that there's benefits from our operational platform that we'll see. Now we're always thoughtful around potential kind of immediate-term disruption as you're transitioning into our management platform. But we do see towards the back of the year, we'll begin to realize some of those benefits. And we'll provide additional color as we go throughout the year on exactly what those numbers look like and how they're progressing from the communities we are bringing internal. I'd say that opportunities on the labor front that we've talked about as well as procurement and insurance and just kind of the overall Sonida program are still things we're optimistic we'll see. Kevin Detz: And Wes, beyond that -- thanks for the questions too. But beyond that, there's also the internalization of management. So right now, we're generally paying 5% of revenues to the third-party operators. And to the extent that we internalize those upon transition, that number should ramp down significantly, laid out on Slide 30, so that the cost to serve and operate those communities would be something south of 5%. Wesley Golladay: All right. Fantastic. Last one for me. On the disposition front, do you think that's going to be more of a 3Q, 4Q thing? Or are you going to start to see some already in the second quarter? Brandon Ribar: I think 3Q, 4Q is a good way to think about that. Operator: Your next question comes from the line of Ben Hendrix from RBC Capital Markets. Benjamin Hendrix: Just wanted to follow up on some of that last line of questioning regarding the third-party operators and bringing those over under internal management. You also noted that you had some strategic investments with some of your operators in certain markets. I'm just wondering if that is changing in any way the longer-term opportunity to bring down that $19 million in management fee, and if you think that there could be maybe additional synergies with some of those relationships going forward? Brandon Ribar: Ben, yes, I'd say that we're really optimistic about the relationships that we'll have for potentially longer-term strategic opportunities. We also feel that the $19 million management fee number that we'll be able to significantly reduce, as we've learned more and more, that number will be right on kind of our internal expectations of being able to -- we've talked about being able to save significant dollars against that $19 million. So no change in our approach. And I would still expect that over the long term, we will internalize the significant majority of all those 54 SHOP communities. And then we'll hold on to relationships that are strategic in nature with a small but meaningful number of the other managers, should opportunities arise. Benjamin Hendrix: Great. And then just in terms of the pacing of, I guess, dispositions you're planning through the rest of the year and any incremental M&A, and then also your just thoughts on the efficiencies that you've gained thus far, any color, with all those moving parts, any color on kind of pacings in earnings and cash flow? With cash flow, I know we had refinancings, we had working capital movements just in the closing of the acquisition. But any thoughts on pacing of earnings and cash flow through the balance of the year would be very helpful. Brandon Ribar: Sure, Ben. I'd say that in our remarks, we are optimistic of seeing at or above continued improvement in terms of year-over-year NOI growth. Feel like there's additional earnings potential in the communities that we have internalized. We were really pleased with the rate growth that we saw in terms of the in-place resident rate increases as well as good trends on the occupancy front. So I think it's incumbent upon us to minimize disruption in the portfolio of new assets, and then to continue to aggressively move forward on the dispositions that have already been identified. We've talked about kind of 10% plus or minus on the total community count that we're targeting, and those are in active processes. And then on the acquisition side, again, we're out there and we are aggressively looking to acquire in what is a competitive landscape. I'd say that on the acquisition front, one aspect of our business that is -- we feel like can be differentiated is the opportunity to invest in owner-operators because we are not a REIT and we're a C-Corp. We are having discussions with a number of different owner-operators where there's opportunity to consolidate those into the Sonida platform, both within our existing manager base but also outside of that. So we want to be continuing to aggressively grow and feel good about the trajectory of improvement in our earnings. Benjamin Hendrix: Great. Just last quick one for me. I just wanted to confirm. It sounds like you, with some of the refinancing or the additional bank group members that you've brought on, it sounds like the bank loan piece and the revolver piece of your financing is kind of where you want the remaining $170 million agency and mortgage exclusively? Or is there opportunities to continue to expand the bank piece? Kevin Detz: Ben, this is Kevin. Yes, we've gotten a lot of good feedback from lots of groups that want to participate. So we feel like we'll be in a position to take out the bridge at the end of the second quarter or early Q3 at the latest just based on the demand and the pricing that's coming back and the overall participation in our cap stack. Operator: Your final question comes from the line of Rich Anderson from Cantor Fitzgerald. A reminder to unmute yourself locally, if you are. We have reached the end of the question-and-answer session. And I will now turn the call back to Brandon Ribar, President and Chief Executive Officer, for closing remarks. Brandon Ribar: Thank you all for participating this morning. Have a great week. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Sonida Senior Living, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sonida Senior Living wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Sonida (SNDA) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in Sonida Senior Living, Inc.? Here are five stocks we like better. Occupancy and margins improved sharply in Q1, with same-store weighted average occupancy rising to 87.2% and same-store NOI increasing 14% year over year to $48 million. Management said higher resident rates and better labor/non-labor cost control drove the gains. Sonida is moving ahead with integration of the CNL Healthcare Properties acquisition, having already transitioned six communities and planning to shift 11 more this summer. The company expects to internalize most of the 54 acquired SHOP communities over time, which should reduce third-party management fees. Management outlined a more disciplined capital strategy, focusing on returns above the cost of capital, balance-sheet flexibility, and selective acquisitions or dispositions. Sonida also said its 2024 acquisition cohort is outperforming underwriting, running at an annualized 11.5% yield on cost in Q1. Sonida Senior Living (NYSE:SNDA) reported first-quarter 2026 results that management said reflected continued growth in occupancy, resident rates and margins following the company’s acquisition of CNL Healthcare Properties, Inc. in March. On the earnings call, Vice President of Investor Relations Megan Caldwell said the company’s discussion of results was largely based on pro forma metrics that include CHP for the full quarter. She noted that Sonida’s GAAP financials reflect CHP’s results only from the March 11 closing date, while the pro forma figures are preliminary and based on the midpoint of ranges provided in the company’s earnings release. → Micron Investors Face a High-Stakes Moment After the Latest Rally President and Chief Executive Officer Brandon Ribar described the quarter as an “important milestone” as Sonida moves into what the company calls “phase III, compounding,” following earlier periods focused on survival and stabilization. “Today, we are shifting from building that foundation to now leveraging it to compound value for our shareholders,” Ribar said. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Ribar said Sonida’s same-store communities delivered year-over-year growth, supported by higher occupancy, pricing gains and margin improvement. Same-store weighted average occupancy increased 220 basis points from a year earlier to 87.2%. Resident revenue rose 7.6%, while revenue per occupied room, or RevPOR, increased 5%. Same-store community net operating income rose 14% year over year to $48 million, and NOI margin expanded 170 basis points to 31.2%, according to management. → Reading the Stripes: Is The Industrial Recession Over? Chief Financial Officer Kevin Detz said more than half of same-store revenue growth flowed through to NOI during the period. He attributed the margin improvement to labor management, control of non-labor costs and operating leverage as occupancy increased across a maturing portfolio. For the total senior housing operating portfolio, Detz said SHOP NOI increased 11.3%. Weighted average occupancy rose 100 basis points year over year to 85.7%, while total SHOP RevPOR increased 4.9%. Resident revenue increased 8.5% year over year, and community NOI reached $51.3 million. Total SHOP NOI margin expanded 70 basis points despite near-term dilution from newly acquired and transitioning communities. Detz also said the share of communities with occupancy above 90% increased from 39% to 52%, while the percentage of communities below 80% occupancy declined from 28% to 20%. Ribar said Sonida has begun integrating communities acquired through the CHP transaction. The company completed its first operational transition after the acquisition last week, bringing six communities from two third-party operators onto the Sonida platform. Ribar said the company expects to transition an additional 11 communities from four third-party operators this summer while maintaining strategic growth partnerships with selected existing managers. Ribar said the CHP deal gave Sonida not only additional assets but also a network of third-party manager relationships that preserve operational continuity and may generate future investment opportunities. He pointed to a recent preferred equity investment in a high-end full continuum community in Texas that came through one of those manager relationships. During the question-and-answer session, Ribar said Sonida still expects to internalize the “significant majority” of the 54 SHOP communities acquired from CHP over the long term, while retaining a smaller number of strategic third-party manager relationships. Detz said Sonida is currently paying third-party operators about 5% of revenues in management fees. As communities are internalized, he said those costs should decline “significantly.” Detz said Sonida is now reporting results across three portfolio groupings: same-store, non-same store and triple-net lease. He said the structure is intended to show differences in asset maturity and provide transparency into stabilization and capital allocation decisions. The non-same-store group includes recently acquired and stabilizing communities, communities undergoing targeted reinvestments or care model conversions, and non-core assets being prepared for disposition. Detz said Sonida expects to recycle capital out of select lower-growth or non-core communities over time, representing about 10% of the portfolio by community count but significantly less than 10% of total NOI for the quarter ended March 31. Ribar also outlined a refined capital allocation framework centered on improving portfolio quality, deploying capital only where returns exceed the company’s cost of capital, and maintaining balance sheet flexibility. He said the company will prioritize internal opportunities such as occupancy, RevPOR and margin optimization, followed by acquisitions with operational upside and strategic fit. Ribar said Sonida’s 2024 acquisition cohort, consisting of 19 assets, is tracking ahead of plan. The assets were underwritten to a stabilized yield on cost above 10% over an 18- to 24-month period and were running at an annualized 11.5% yield on cost as of the first quarter, he said. Management highlighted Sonida’s proprietary technology platform, the Sonida Performance Insight Navigator, or SPIN, as a key part of its operating strategy. Ribar said SPIN combines resident care data, workforce information and operational metrics to provide real-time visibility for community leaders. Ribar said the system helps optimize labor and non-labor costs relative to occupancy, acuity and care levels. In response to an analyst question, he said Sonida is using SPIN in acquisition underwriting by comparing potential assets with existing communities across its portfolio. He also said the company will continue investing in the platform, including opportunities tied to artificial intelligence and advanced analytics. Detz said SPIN supported a pay-for-performance initiative launched in early 2025 that helped Sonida measure job function productivity and invest in top performers. Same-store labor costs declined about 100 basis points as a percentage of revenue year over year, driven primarily by improved direct labor productivity, he said. Detz said Sonida remains focused on reducing leverage toward a target range of 6.0 times to 6.5 times. As of March 31, the company’s capitalization included two term loans totaling $550 million, priced at SOFR plus 195 basis points, with potential step-downs as leverage declines. Since quarter-end, Sonida increased its corporate debt facilities by $50 million, which Detz said allowed the company to reduce bridge financing to $170 million with no change in net debt. He said the company expects to refinance the remaining bridge loan with new mortgage debt in the coming months. As of April 30, Detz said Sonida had slightly more than $50 million in cash and more than $100 million of availability under its revolving credit facility. The company also paid down $17 million on a revolver after quarter-end and completed two small investments: a $3.6 million buyout of a joint venture partner’s interest in a 2024 acquisition cohort community and a $2.9 million preferred equity investment. In response to analyst questions, Ribar said Sonida remains active in the acquisition market and is evaluating both enterprise-level and individual asset opportunities. He said the company believes it can continue acquiring at a pace similar to 2024 and 2025, excluding the CHP transaction, though he acknowledged that market returns may have tightened since 2024. Ribar said dispositions are more likely to occur in the third and fourth quarters, and that the company is pursuing active processes for the communities already identified for potential sale. Sonida Senior Living (NYSE: SNDA) is a publicly traded company that owns and operates senior living communities in the United States. The company’s core business centers on providing housing and care services for older adults, with an emphasis on assisted living, memory care and related supportive services tailored to residents’ needs. Sonida’s communities combine residential accommodations with on-site services such as personal care assistance, medication management, dining programs, social and recreational activities, and clinical oversight. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sonida Senior Living Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Same-Store Weighted Average Occupancy: Increased 220 basis points year-over-year to 87.2%. Same-Store Resident Revenue: Increased 7.6% year-over-year. Same-Store Community NOI: Increased 14% year-over-year to $48 million. Same-Store NOI Margin: Expanded 170 basis points to 31.2%. Total Shop NOI: Grew 11.3% year-over-year. Total Portfolio Weighted Average Occupancy: Increased 100 basis points year-over-year to 85.7%. Total Resident Revenue: Increased 8.5% year-over-year. Total Community NOI: Reached $51.3 million with a 70 basis point margin expansion. Cash Balance (as of April 30): Slightly above $50 million. Revolving Credit Facility Availability: Over $100 million. Warning! GuruFocus has detected 8 Warning Signs with SNDA. Is SNDA fairly valued? Test your thesis with our free DCF calculator. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sonida Senior Living Inc (NYSE:SNDA) completed the acquisition of C&L Healthcare Properties, Inc., enhancing its asset base and operational capabilities. The company reported a 14% year-over-year increase in same-store community NOI, with margins expanding by 170 basis points to 31.2%. The SPIN (Sonida Performance Insight Navigator) platform is optimizing labor and non-labor costs, enhancing unit economics, and driving incremental margin expansion. Sonida's portfolio is concentrated in markets projected to outpace national average growth for the 75-plus population, positioning it well for future demand. The company has a strong balance sheet with expanded liquidity and a refined capital allocation framework to drive long-term value creation. The integration of newly acquired communities poses potential short-term disruptions as they transition to Sonida's management platform. There is near-term dilution associated with bringing newly acquired, non-core, and transitioning communities into the platform. The company is in the process of disposing of select lower-growth or non-core communities, which could impact short-term revenue. Market conditions have tightened since 2024, potentially affecting the returns on future acquisitions. The company is still working towards its targeted leverage range of 6 to 6.5 times, indicating ongoing financial adjustments. Q: How should we think about the rate at which Sonida Senior Living will continue to deploy additional capital and grow the portfolio? Are there other large portfolios similar to the recent acquisition in the pipeline? A: Brandon Ribar, President and CEO, stated that Sonida remains active in the acquisition market, targeting both enterprise-level and individual asset opportunities. The company is set up to continue purchasing while integrating the CHP portfolio and expects to maintain a consistent acquisition pace similar to 2024 and 2025. Q: Are the returns on the 2024 acquisitions a similar range that Sonida is targeting going forward? A: Brandon Ribar mentioned that while market conditions have tightened since 2024, Sonida aims to target opportunities of similar quality. The company is confident in achieving strong yields in the high single to low double digits, with potential for further growth in the 2024 assets as operational performance stabilizes. Q: Can you talk about the SPIN platform and its role in underwriting and future plans? A: Brandon Ribar explained that SPIN is currently used in underwriting processes and provides real-time, granular data to aid decision-making. It helps optimize labor deployment and identify rate opportunities. Sonida plans to continue investing in SPIN, particularly in AI, to enhance decision-making and analytics. Q: Do you expect to see any unmodeled synergies this year, and can you quantify them? A: Brandon Ribar indicated that synergies are expected this year, particularly from transitioning communities into the Sonida management platform. While immediate-term disruption is considered, benefits are anticipated towards the year's end, with further details to be provided as the year progresses. Q: Regarding third-party operators and internal management, is there a long-term opportunity to reduce the $19 million management fee? A: Brandon Ribar expressed optimism about reducing the $19 million management fee significantly. The company plans to internalize the majority of the 54 shop communities while maintaining strategic relationships with a select number of managers for potential long-term opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.