SONIDA SENIOR LIVING, INC. (SNDA)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered strong operational momentum: resident revenue rose 30.6% year over year to $79.3M, Adjusted EBITDA increased 43.2% to $13.6M, and same‑store NOI margin expanded ~280 bps to 27.5% (vs. 24.8% in Q1 2024). Management emphasized continued acceleration in the acquisitions portfolio and disciplined cost control .
• Same‑store occupancy reached 86.8% (+100 bps YoY), RevPAR increased to $3,711 and RevPOR to $4,274, while the acquisitions portfolio posted 31.3% sequential NOI growth and margin improvement on integration progress .
• Net loss attributable to common shareholders was $(13.9)M (diluted EPS $(0.77)), largely due to interest expense and depreciation, and the absence of prior year debt extinguishment gains. Liquidity remained solid with $14.0M cash and $43.2M of credit facility availability at quarter‑end .
• Stock‑reaction catalysts: consolidation benefits in acquired assets, rate renewal increases (6.6–6.9%), and technology investments (EHR, clinical systems) support margin expansion; operating tailwinds include constrained new supply and stabilization efforts in higher‑yield Southeast acquisitions .

What Went Well and What Went Wrong

What Went Well

• Same‑store performance: NOI up 19.3% YoY with margin 27.5%, driven by +100 bps occupancy and 5.5% RevPOR increases; management highlighted disciplined execution and renewal pricing power .
• Acquisition portfolio: 31.3% sequential NOI growth and margin up 450 bps from Q4, reflecting rapid integration of Sonida’s operating model and targeted capex in new vintage assets across FL/GA .
• Technology and clinical infrastructure: rollout of clinical health information systems, fall detection, nurse call, and employee scheduling by Q3; portfolio‑wide August Health EHR partnership to elevate care and data‑driven operations .

What Went Wrong

• GAAP loss persisted: Q1 net loss attributable to common shareholders of $(13.9)M (diluted EPS $(0.77)) versus Q1 2024 profit that benefited from a $38.1M debt extinguishment gain; interest expense increased YoY on incremental borrowings .
• Indiana Medicaid disruption: managed Medicaid transition reduced admissions and pressured occupancy/bad debt in affected communities, requiring repositioning to private‑pay models and temporary unit removals from service .
• Seasonality and mix: Q4 2024 saw slight occupancy downtick vs. Q3 due to normalization of seasonality at higher occupancy levels; continued mix effects can mute RevPOR when IL units lead occupancy gains .

Financial Results

Segment/Portfolio Breakdown

KPIs

Guidance Changes

Note: No formal quantitative revenue/EPS guidance provided in Q1 materials; management focused on NOI, occupancy, pricing, integration and acquisition milestones .

Earnings Call Themes & Trends

Management Commentary

• “Same‑store portfolio NOI grew by 19.3% year‑over‑year, and the acquisition portfolio NOI increased 31.3% sequentially from Q4 2024… Our Q1 annualized NOI for the acquisition portfolio implies a 9.1% yield on cost” — Brandon Ribar, CEO .
• “As more fully described later… we have identified 5 such assets for strategic repositioning to capture a higher rate, private pay customer base… excluded from our same‑store until these strategic plans have been fully executed” — Kevin Detz, CFO .
• “Investments in our clinical health information system, resident fall detection, nurse call and employee scheduling will be fully implemented by Q3 this year” — Brandon Ribar .
• “We are under contract to acquire 2 more communities in major southeastern markets for a combined $22 million with closings expected in Q2” — Brandon Ribar .
• “Completion of these projects will meaningfully reduce the company's Medicaid percentage of total revenue, currently at 9%, and we expect return on investment to exceed 30%” — Brandon Ribar on Indiana repositioning .

Q&A Highlights

• Repositioning strategy and timeline: 5 Indiana communities being repositioned to private‑pay models with capital investment and temporary unit removals to align with long‑term business mix and margin goals .
• Pipeline and acquisition color: Two additional off‑market acquisitions in Florida/Georgia consistent with late‑2024 deals, expected to stabilize at low double‑digit yields, reinforcing accretive growth .
• Mix and rate trajectory: Management reaffirmed strong 2025 pricing power and focus on accelerating occupancy and margin expansion in newly acquired communities; labor markets stable with no material immigration impacts noted .

Estimates Context

• Consensus availability: S&P Global consensus was unavailable for EPS and the number of estimates; revenue consensus mean was not provided for Q1 2025. Only actual revenue appears in the dataset. Therefore, a beat/miss assessment versus Wall Street consensus cannot be determined at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Same‑store momentum remains robust with margin expansion and pricing power; acquisitions are scaling rapidly with strong sequential NOI improvement—expect continued consolidation benefits and improving blended margins as integration matures .
• The Indiana Medicaid shift is being actively addressed through private‑pay repositioning with targeted capex and expected >30% ROI; near‑term occupancy impacts should give way to improved revenue quality and margins .
• Liquidity and balance sheet flexibility are intact: $150M revolver, $43.2M availability, and extended Fannie Mae maturities to 2029 reduce refinancing risk; weighted average debt cost ~5.4% portfolio supports earnings compounding as NOI grows .
• Technology deployment (EHR and clinical systems) and BI tools are tangible differentiators that should enhance care outcomes, pricing capture, and labor scheduling efficiency—drivers of sustained margin improvement .
• Southeast densification and off‑market sourcing underpin accretive external growth; double‑digit stabilized yields and discounted purchase bases provide compelling return profiles .
• Without consensus estimates, traders should anchor on operating KPIs (RevPAR, occupancy, NOI margin, Adjusted EBITDA) and integration milestones; any upside surprises likely come from faster‑than‑expected acquisition stabilization and private‑pay mix shift .
• Watch Q2: closure of two acquisitions, further technology rollouts by Q3, and progress on repositioning projects—each a potential narrative catalyst for sentiment and valuation .

Notes on sources: No 8‑K Item 2.02 press release was available for Q1 2025 in the catalog; analysis relies on the Q1 2025 press release and full earnings call transcript, plus prior quarter releases and calls for trend comparisons – – – –.