Executive Summary

Q4 2024 delivered strong top-line growth and improved profitability: total revenues rose 40% year over year to $91.9M; same‑store NOI margin was 25.5% (vs 27.4% in Q4’23, 24.6% pro forma), and Adjusted EBITDA increased to $12.3M from $9.3M in Q4’23, up sequentially from $10.1M in Q3’24 .
Occupancy and pricing held up: same‑store weighted average occupancy was 86.6% (+70 bps YoY) and pricing KPIs advanced (RevPAR +6.0%, RevPOR +5.1% YoY) despite normal seasonality (sequential occupancy −40 bps vs Q3) .
Balance sheet de‑risking and growth catalysts: management extended $220M of Fannie Mae maturities to Jan 2029 (for $10M scheduled paydowns), completed a Texas DPO at a 36% discount, expanded its revolver to $150M, and closed/acquired 11 communities in Q4, supporting 2025 NOI acceleration .
Outlook/tone: Management targets high‑end peer same‑store NOI growth in 2025, expects annual rate action “directionally consistent” with 2024, and sees a path toward ~$100M NOI as acquired assets stabilize (value‑add portfolio: 76% occupancy, 21.7% NOI margin exiting Q4) .

What Went Well and What Went Wrong

What Went Well

Acquisition integration and portfolio densification: closed 11 communities in Q4 (Palm portfolio in FL/SC; Atlanta “Mansions” portfolio; Cincinnati “Airy Hills”), building regional scale and embedded NOI upside; CEO: “2024 was a transformative year…position[ing] Sonida for accelerated NOI growth in 2025” .
Operating KPIs improved YoY: same‑store occupancy +70 bps to 86.6%, RevPAR +6.0% to $3,678, RevPOR +5.1% to $4,248; Adjusted EBITDA up to $12.3M in Q4 (+33% YoY) on continued operating improvement .
Commercial and capital actions: extended $220M of Fannie maturities to 2029; executed a Texas DPO at a 36% discount; upsized revolver to $150M and drew $60M to support acquisitions and liquidity .

What Went Wrong

Seasonal sequential softness: same‑store weighted average occupancy fell 40 bps QoQ (86.6% vs 87.0% in Q3) as seasonality normalized at higher occupancy levels .
G&A burden elevated by growth: Q4 G&A rose to $11.8M (+19% YoY) driven by $3.5M labor to support 2024 acquisitions (including $2.1M severance), partially offset by lower transaction costs .
Medicaid/collections headwind (Indiana): bad debt increased by ~+$0.7M YoY in 2024 due to structural changes in state plans and re‑eligibility timing; management is working with case managers/state leaders and changing procedures to mitigate impacts .

Financial Results

Summary P&L and Profitability (GAAP and Non‑GAAP)

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenues ($USD Millions)	$65.7	$74.8	$91.9
Resident Revenue ($USD Millions)	$59.3	$67.0	$77.1
Basic EPS ($)	$(2.17)	$(0.98)	$(0.38)
Net Loss ($USD Millions)	$(14.6)	$(14.3)	$(6.2)
Adjusted EBITDA ($USD Millions)	$9.3	$10.1	$12.3
Same‑Store Community NOI Margin (%)	27.4%	26.7%	25.5%

Notes: “Total Revenues” include managed community reimbursement; “Resident Revenue” and KPIs tie to owned operations; Adj. EBITDA and NOI Margin are non‑GAAP .

Same‑Store vs Non‑Same‑Store (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024
Same‑Store Resident Revenue ($USD Millions)	$59.3	$62.9
Same‑Store Community NOI ($USD Millions)	$16.3	$16.0
Same‑Store Community NOI Margin (%)	27.4%	25.5%
Pro Forma Q4’23 NOI Margin excl. one‑time credits	24.6%	—
Consolidated Community NOI ($USD Millions)	$16.3	$19.0
Acquisition NOI (non same‑store) ($USD Millions)	—	$3.0

Operating KPIs (Same‑Store)

KPI	Q4 2023	Q3 2024	Q4 2024
Weighted Avg Occupancy (%)	85.9%	87.0%	86.6%
RevPAR ($/mo)	$3,470	$3,692	$3,678
RevPOR ($/mo)	$4,042	$4,244	$4,248

Acquired Portfolio Snapshot (at share, Q4 2024 run‑rate)

KPI	Q4 2024
Occupancy (%)	76.0%
RevPOR ($/mo)	$5,901
NOI Margin (%)	21.7%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Annual resident rate action	2025 (effective Mar 1)	Not provided	“Anticipating to be directionally consistent with 2024”	Qualitative update
Same‑store NOI growth	FY 2025	Not provided	Aim for high end of peer group	New directional target
Occupancy trajectory	2025	Not provided	Expect occupancy growth in 2025	Qualitative update
Portfolio NOI potential	Near‑term path	Not provided	Illustrative bridge to ~$100M at stabilization (90% occupancy/30% margin)	Framework shared
Debt maturities	Fannie loans	Dec 1, 2026	Extended to Jan 1, 2029 with $10M scheduled paydowns	Extended

No formal quantitative revenue/EPS/EBITDA guidance was issued in the Q4 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Pricing/rate strategy	Q2: Portfolio‑wide rate increases drove RevPOR +8.4% YoY; migration to annual 3/1 resets; memory care pricing updates . Q3: RevPAR +7.1% YoY; RevPOR +4.5% .	Expect 2025 rate action consistent with 2024; stable rates in H2 due to mix shift to IL; level‑of‑care capture +$1.1M YoY .	Stable to positive.
Labor and staffing	Q2: Premium labor and overtime declining; BI tools improving scheduling .	Turnover down ~10% in 2024; focus on reducing premium labor; wages trending with CPI .	Improving/stabilizing.
Digital marketing and referrals	Q2: Reduced third‑party referral commissions with enhanced digital tactics .	Digital leads up; referral fees reduced; lead +15% YoY, tours +11% YoY; positive net move‑ins in Jan/Feb .	Improving efficiency.
Debt & liquidity	Q3: Upsized revolver to $150M; equity raise; Texas DPO .	Extended $220M Fannie maturities to 2029; executed Texas DPO (36% discount) .	De‑risked maturities.
Acquisition pipeline	Q3: Closed Palm; signed Atlanta; robust pipeline .	Closed Atlanta and Cincinnati; 11 properties in Q4; expect continued deal flow; value‑add profile .	Active/increasing.
Medicaid/regulatory	—	Indiana Medicaid re‑certification drove higher bad debt; mitigation underway .	Temporary headwind, monitored.
Occupancy/seasonality	Q2: Occupancy at record levels; goal toward 90% . Q3: 87.0% weighted avg .	86.6% (−40 bps QoQ) due to seasonality; confidence in 2025 growth .	Seasonal dip; positive outlook.

Management Commentary

CEO framing: “2024 was a transformative year…position Sonida for accelerated NOI growth in 2025, demonstrating the power of our owner/operator model” .
Growth focus: “Our goal in 2025 is to achieve same‑store NOI growth in the high end of our peer group…value‑add nature of the 2024 acquisition communities…should result in NOI growth that outpaces the more stable same‑store portfolio” .
Marketing engine: “Lead volume in Q4 2024 increased 15% YoY with tour volume up 11%…move‑ins driven by digital marketing enhancements…leading to a reduction in referral fees year‑over‑year” .
Capital structure: “Extended the maturities of 18…Fannie Mae [mortgages]…to January 2029…[and] discounted payoff of $18.3M on a $28.4M loan balance” .
Stabilization target: “Illustrative bridge to approximately $100 million of NOI…moving occupancy to 90% and NOI margins to 30%” (framework, not guidance) .

Q&A Highlights

Pricing and labor outlook: Management expects 2025 pricing gains in line with 2024; focus on accelerating occupancy recovery in newly acquired communities (76% average occupancy at Q4) with higher rates than same‑store; no material labor shock anticipated; disciplined expense control to expand margins toward the ~$100M NOI run‑rate framework .

Estimates Context

S&P Global consensus: No published consensus for Q4 2024 EPS or revenue was available; S&P shows actual “Revenue” of $78.0M* and “EBITDA” of $6.9M for Q4 2024 with no estimate counts (note S&P “Revenue” excludes managed community reimbursement, aligning with resident revenue plus management fees) [Values retrieved from S&P Global].
Implication: With limited/absent Street coverage, estimate revisions are unlikely to be a near‑term catalyst; investors should rely on company KPIs (occupancy, RevPAR/RevPOR, same‑store/Acquired NOI) and capital actions.

S&P Global (ex‑reimbursement)	Q4 2024
Revenue Consensus Mean	N/A*
Primary EPS Consensus Mean	N/A*
Actual Revenue ($USD Millions)	78.0*
Actual EBITDA ($USD Millions)	6.9*

*Values retrieved from S&P Global.

Key Takeaways for Investors

2025 setup: Pro‑forma growth from 2024 acquisitions (11 properties closed in Q4) plus rate action and occupancy expansion should drive NOI acceleration; acquired portfolio starts at 76% occupancy/21.7% NOI margin with clear runway .
Balance sheet risk reduced: Extended $220M Fannie maturities to 2029, executed a sizable DPO, and secured $150M of revolver capacity (with $60M drawn at year‑end) .
Operating engine is working: YoY improvements in occupancy (+70 bps), RevPAR (+6.0%), and Adj. EBITDA ($12.3M vs $9.3M) despite seasonal QoQ occupancy softness; digital marketing is lowering CAC .
Watch margins and G&A: Same‑store NOI margin modestly below Q4’23 headline due to prior‑year one‑time credits; G&A elevated near‑term from acquisition support and severance; ex‑one‑times, underlying flow‑through remains favorable .
Medicaid/collections is a localized risk: Indiana plan changes raised bad debt; management is actively remediating (procedural, engagement with state) .
Catalysts: Integration progress/lease‑up at Palm, Atlanta, and Cincinnati; stabilization metrics trending toward the 90%/30% illustrative framework; further accretive M&A in a dislocated market with constrained new supply .
Monitoring items: Sequential occupancy recovery into spring/summer, March 1 rate realization, premium labor/overtime reduction, and revolver borrowing base expansion as acquired NOI ramps .

Supporting Detail (Additional References)

Consolidated statements (Q4’24): Total revenues $91.9M; operating expense $59.2M; G&A $11.8M; D&A $13.3M; net loss $(6.2)M; basic/diluted EPS $(0.38) .
Cash flow/Liquidity (FY’24): Operating cash flow $(1.8)M; investing $(208.9)M; financing $232.0M; cash and restricted cash at YE $39.1M .
Enterprise value and debt mix (12/31/24): EV ~$1.146B; consolidated debt $655.2M; weighted average interest rate 5.40%; 61% fixed (ex revolver) .

SONIDA SENIOR LIVING, INC. (SNDA)·Q4 2024 Earnings Summary