Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Q1 2024 Earnings Presentation
32 slides from Sonida Senior Living's earnings presentation, May 10, 2024
Slide 1: Investor Presentation First Quarter 2024
A Leading Operator, Owner & Investor SNDA NYSE Listed Investor A Leading Operator, Owner and Investor in Senior Living Presentation First Quarter 2024 May 10, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition of Sonida Senior Living, Inc. (“Sonida,” the “Company,” “we,” “our” or “us”) to differ materially from tho
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains contains the financial measures (1) Community Net Operating Income and Adjusted Community Net Operating Income, (2) Community Net Operating Income Margin and Adjusted Community Net Operating Income Margin, (3) Adjusted EBITDA, (4) Revenue per Oc
Slide 4: About Sonida
CY SONnIDa SENIOR LIVIN », About Sonida Find joy here. ind your joy here
Slide 5: Leading Senior Living Operator, Owner & Investor in the U.S.
Leading Senior Living Operator, Owner & Investor in the U.S. • Bringing quality senior living to life, with a Geographically focus on independent living, assisted living Geographically Concentrated Resident Resident and memory care 71 Concentrated Communities ~8,000 Capacity Capacity Communities (as
Slide 6: Sonida Senior Living Footprint
Sonida Senior Living Footprint 71 Communities (as of 3/31/24) 7,011 Units 3,957 Employees Resident (61 Owned / 10 Managed) Across 18 States (2,553 FT / 1,404 PT) Revenue by State (Owned Portfolio) Texas Other 23% 29% 20% 10% Wisconsin Ohio 18% Indiana Balanced Unit Mix Supports Target Market Profile
Slide 7: Recent Highlights & Accomplishments
Recent Highlights & Accomplishments - February 2024: Private placement raise of $47.75M (including investment from largest shareholder Conversant Capital) with ~$25M available for potential acquisitions and working capital Equity Infusions - April 2024: Launched ATM (At-the-Market) securities progra
Slide 8: Power of Unique Operator-Owner-Investor Model
Power of Unique “Operator-Owner-Investor” Model Sonida is uniquely positioned to aggressively invest in a dislocated senior living landscape to grow and create value Value-drivers: Growth-drivers: Full Control Industry Recovery + Balance Sheet Investments + of Company-specific Operational Third-part
Slide 9: Growth Drivers in 2024 and Beyond
Growth Drivers in 2024 and Beyond Significant acquisition opportunities tied to Company specific operational improvements limited capital availability across the sector; led by new management initiatives (labor, sales banks, private equity sponsors, and management efficiency, rate optimization, leng
Slide 10: Proactive Management of Debt
Proactive Management of Debt Debt Debt Maturities Fixed Variable Insurance Recurring $0 Maturities in 2024 (in millions) Rate Rate & Principal Total Weighted in 2024 Rate Maturities Maturities Other Payments Fixed 2024 - - $2.1 $6.0(1) $8.1(1) 4.95% Fixed Rate 72.2% Rate Debt (3) Debt 2025 $30.6(2)
Slide 11: Financial Performance & Highlights
Financial Performance & Highlights
Slide 12: Q1 2024 Financial Comparisons – Owned Communities
Q1 2024 Financial Comparisons – Owned Communities YoY Community NOI Growth of 11.2% and Adjusted Community NOI Margin Expansion of 360 bps Pro Forma Q1’24 Q1’24 vs Q1’23 Pro Forma Q1’24 Pro Forma vs Pro Forma $ in millions, except RevPAR and RevPOR Q1’24 Q1’23 YoY March 1 Rent Q4’23(6) Q4’23(6) Chan
Slide 13: Q1 2024 Revenue Highlights
Q1 2024 Revenue Highlights Resident Rent Rate Changes (1) Assisted Living Level of Care “LoC” Program Impact Q1’24 Resident rent • Simplified 4 level system with clear requirements rates(1) increased • New monitoring tools implemented to reinforce timely $355 or 10.1% YoY LoC reviews based on compan
Slide 14: 12 Consecutive Quarters of Occupancy Growth (Same-Store)
12 Consecutive Quarters of Occupancy Growth (Same-Store) 85.9 85.9 84.4 84.9 % % 83.9 83.9 83.9 % % 83.4 82.7 % % % 81.9 % 81.0 81.3 % % % % 78.1 % 75.5 % 84.0 76.7 79.7 82.2 82.2 83.3 84.1 84.9 84.5 85.2 85.0 86.8 86.4 86.9 % % % % % % % % % % % % % % Q4 '19 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '2
Slide 15: Revenue Growth Continues to Outpace Labor Costs
Revenue Growth Continues to Outpace Labor Costs Labor(1) Costs Trend as a Percent of Revenue(2) • Q1’24 labor(1) costs as a percent of revenue(2) were 45.1%, marking 2 consecutive quarters of stabilized labor costs below 46.0% of revenue • Q1’24 labor(1) costs as a percent of revenue(2) are down 100
Slide 16: Non-Labor Operating Cost Holding Steady
Non-Labor Operating Cost Holding Steady • As a percent of revenue, Q1’24 expense was Total Operating Expense Excluding Labor(1) Costs Trend 90 basis points lower than the previous 4-quarter average • QoQ increase driven primarily by: • Q1’24 utilities ($0.7M QoQ) and snow removal ($0.3M QoQ) • Q4’23
Slide 17: Inorganic Growth Strategy
@ SOnIDa SENIOR LIVING Inorganic Growth ' Strategy
Slide 18: U.S. Senior Housing Trends: Favorable Set-Up
U.S. Senior Housing Trends: Favorable Set-Up Senior Housing Demand Senior Housing Supply 80+ Incremental Population Growth (000s) Senior Housing Units Under Construction (000s) 1000 1200 ‘22-’30 800 CAGR 1000 of ~4% 800 600 600 400 400 200 200 0 0 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
Slide 19: Three-Pronged Inorganic Growth Approach
Three-Pronged Inorganic Growth Approach I. Balance Sheet II. Joint III. Management Structure Acquisitions Ventures Contracts -Traditional owner / operator model -Underperforming assets with -Capital stack refresh with distressed capitalization future value recovery / creation -Under-performing asset
Slide 20: Target Acquisition Profile & Sourcing Channels
Target Acquisition Profile & Sourcing Channels Community Profile for New Target Acquisitions and Joint Ventures Sourcing Channel Strategy Business Model Priority: • 2 or 3 care types, or as complements Sonida’s existing market footprint IL/AL/MC • Balance of higher-margin IL and need-based AL/MC Exi
Slide 21: Recent Acquisition
Recent Acquisition 100 Units (AL / MC) Macedonia, OH 2015 vintage high-quality physical asset $10.7M purchase price: Acquired at 43% discount to in- place senior loan balance at approximately $105k per unit Located in the same submarket as existing Sonida community; acquisition provides complementar
Slide 22: Pending Transactions
Pending Transactions Two 4-Community Acquisitions (8 Total) 3 Community 750+ Units Management Contracts Midwest and Texas -Joint venture partnerships - IL, AL & MC -Management contract with - Management fees to Sonida 3rd party owner - Basis at or below 50% of replacement -Leverage full suite of ope
Slide 23: Appendix – Supplemental Information
Appendix – Supplemental Information
Slide 24: Table of Contents
Table of Contents A-1 Financial Overview A-2 Community NOI A-3 Net Income (Loss) Walk Forward A-4 Adjusted EBITDA Walk Forward A-5 Capitalization – Q1 2024 A-6 Geographical Breakdown A-7 Financial and Key Metrics A-8 Market Fundamentals
Slide 25: Financial Overview – Owned Communities
Financial Overview – Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. Amounts derived from 2023 10-K as filed; nominal adjustments were made to conform 2022 actuals to 2023 presentation in the 2023 Form 10-K. (1) Resident Revenue, Community NOI, Community NOI Margin %, Net
Slide 26: Community NOI – Owned Communities
Community NOI – Owned Communities Note: Dollars in 000s. Numbers may vary due to rounding. Amounts derived from 2022 10-K as filed; nominal adjustments were made to conform 2022 actuals to 2023 presentation in the 2023 Form 10-K. (1) Includes Second Person and Level of Care fees. (2) Community NOI a
Slide 27: Net Income (Loss) Walk Forward
Net Income (Loss) Walk Forward Note: Dollars in 000s. Numbers may vary due to rounding. Amounts derived from 2022 10-K as filed; nominal adjustments were made to conform 2022 actuals to 2023 presentation in the 2023 Form 10-K (1) Amounts are not calculated in accordance with GAAP. See page 4 for the
Slide 28: Adjusted EBITDA Walk Forward
Adjusted EBITDA Walk Forward Note: Dollars in 000s. Numbers may vary due to rounding. Amounts derived from 2022 10-K as filed; nominal adjustments were made to conform 2022 actuals to 2023 presentation in the 2023 Form 10-K. (1) Casualty losses relate to non-recurring insured claims for unexpected e
Slide 29: Capitalization Summary as of March 31, 2024
Capitalization Summary as of March 31, 2024 Net Debt (56.1%) Components of Total Capital Preferred Equity Common (5.0%) Equity Note: Dollars in 000s except for share price, share count, and strike price. Numbers may vary due to rounding. (38.9%) (1) Weighted average interest rate. (2) Variable expos
Slide 30: Geographical Breakdown – Owned Communities
Geographical Breakdown – Owned Communities Occupancy Distribution (2) Service Mix Distribution (1) South/Southwest Midwest East (2) 18 Communities 35 Communities 8 Communities (1) Data based on Q1’24 average and excludes the Shaker Heights community, which was sold in Aug. 2023. (2) As of March 31,
Slide 31: T3M: Financial and Key Metrics – Owned Communities
T3M: Financial and Key Metrics – Owned Communities (1) (1) (1) (2) (3) (4) Note: Dollars in 000s. Numbers may vary due to rounding. Financial data presented is March 2024 trailing 3-month results. (1) Includes Second Person Fees and Level of care fees. (2) Revenue includes non-recurring state grant
Slide 32: Market Fundamentals
Market Fundamentals Note: Dollars in 000s. Numbers may vary due to rounding. Primary 5140 Metropolitan Statistical Area ("MSA") across the Source: Sonida portfolio data presented on 61 owned assets as of Q1 2024. Data provided by NIC MAP Vision. Demographics Tertiary Markets country are classified b