Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — FY2024 Earnings Presentation
40 slides from Sonida Senior Living's earnings presentation, Mar 17, 2025
Slide 1: Investor Presentation Fourth Quarter and Full Year 2024
Investor Presentation Fourth Quarter and Full Year 2024 SNDA NYSE Listed March 17, 2025 Leading Owner, Operator & Investor
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation 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, th
Slide 3: Sonida Senior Living
w soniIDa’ SENIOR LIVING Sonida
Slide 4: Senior Living Owner, Operator & Investor in the U.S.
4 Senior Living Owner, Operator & Investor in the U.S. ✓ Owner and operator of independent living (IL), assisted living (AL) and memory care (MC) communities; 81 owned (including 8 owned through joint ventures) and 13 managed on behalf of third-party owners ✓ Only public pure-play senior living C-co
Slide 5: 2024 Highlights & Accomplishments
2024 Highlights & Accomplishments 5 Performance Acquisitions and Investments Totaling ~$258M Strategic Financing Transactions Capital Raised (~$200M Gross) - Same-Store Weighted Average Occupancy(1): 86.4% / 180 bps increase vs. 2023 - Same-Store RevPOR(1): $4,224 / 5.9% increase vs. 2023 - Same-Sto
Slide 6: Regionally-Concentrated Portfolio in Markets with Positive Demographic Trends
TX 22% OH 18% IN 11% Other 28% Sonida Senior Living Footprint 15+ Communities 5 - 14 Communities < 5 Communities Managed Owned Portfolio Mix by State Regionally-Concentrated Portfolio in Markets with Positive Demographic Trends (1) Based on Total Portfolio as of December 31, 2024. See appendix at th
Slide 7: Differentiated Platform: Owner/Operator/Investor Model
Differentiated Platform: “Owner/Operator/Investor” Model 7 Uniquely Focused, Structured and Positioned to Grow and Create Value Fully Integrated Platform Positions Sonida to Capitalize on External Growth Opportunities and Leverage Outsized Synergies with Increased Scale Owner Investor Operator ✓ Ver
Slide 8: Evolution of Sonida
Evolution of Sonida 8 Occupancy troughs at 77.6% and NOI Margin troughs at -3.6% Conversant Capital leads $155M recapitalization Debt modification with Fannie Mae, discounted loan purchases $48M PIPE from largest shareholders Occupancy, RevPOR, NOI, Margin growth on Same- Store portfolio $130M overn
Slide 9: Why Invest in Sonida?
Why Invest in Sonida? 9 Continued Same-Store Community Growth Occupancy growth RevPOR growth Accelerated NOI margin flow through Value-Add Acquired Communities Accelerated occupancy recovery Rate optimization Expense reduction from Sonida platform Unique Platform Value from Owner/Operator Model Asse
Slide 10: Financial Performance & Highlights
Financial Performance & Highlights 10
Slide 11: Q4 Financial Comparisons: Same-Store Communities
Q4 Financial Comparisons: Same-Store Communities(1) 11 $ in millions, except RevPAR and RevPOR Q4’24 Q4’23 Q4’24 vs. Q4’23 YoY Change Pro Forma Q4’23 Q4’24 vs. Pro Forma Q4’23 YoY Change Weighted Average Occupancy 86.6% 85.9% 70 bps 85.9% - RevPAR(2) $3,678 $3,470 6.0% $3,470 - RevPOR(2) $4,248 $4,0
Slide 12: 2024 Financial Comparisons: Same-Store Communities
2024 Financial Comparisons: Same-Store Communities(1) 12 $ in millions, except RevPAR and RevPOR 2024 2023 YoY Change Weighted Average Occupancy 86.4% 84.6% 180 bps RevPAR(2) $3,650 $3,375 8.1% RevPOR(2) $4,224 $3,988 5.9% Resident Revenue $249.4 $232.0 7.5% Adjusted Operating Expenses(3) $184.0 $17
Slide 13: Same-Store Occupancy Growth
84.4 75.6 78.2 81.2 81.5 81.9 82.7 83.4 83.9 84.0 84.0 84.9 85.9 85.9 86.2 87.0 86.6 84.7 76.7 79.7 82.2 82.2 83.4 84.1 84.9 84.6 85.3 85.1 86.8 86.4 86.9 87.9 87.9 87.4 Q4 '19 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1' 23 Q2' 23 Q3' 23 Q4' 23 Q1' 24 Q2' 24 Q3' 24 Q4' 24 Weighted Av
Slide 14: Same-Store Revenue Highlights
Same-Store Revenue Highlights(1) • March 1, 2024 portfolio-wide annual average rate increase of 6.3% on an all-in basis; 7.3% excluding Medicaid and ancillary fee revenues • QoQ resident rent rate growth in 9 of last 11 quarters • 0.2% sequential QoQ decrease in resident rent rate due to shift in ca
Slide 15: Same-Store Revenue Growth Continues to Outpace Labor Costs
Same-Store Revenue Growth(1) Continues to Outpace Labor Costs 15 Labor Costs Trend as a Percent of Revenue (2) (3) (1) Same-Store Community Portfolio includes operating results and data for 61 communities consolidated as of December 31, 2024. See appendix at the end of this presentation for definiti
Slide 16: Same-Store Non-Labor Operating Cost Holding Steady
Same-Store Non-Labor Operating Cost(1) Holding Steady 16 Total Operating Expense Excluding Labor Costs Trend (2) (1) Same-Store Community Portfolio includes operating results and data for 61 communities consolidated as of December 31, 2024. See appendix at the end of this presentation for definition
Slide 17: Capitalization Summary as of December 31, 2024
Capitalization Summary as of December 31, 2024 17 Note: Dollars in ‘000s except for share price, share count, and strike price. Numbers may vary due to rounding. (1) Weighted average interest rate. For revolving loans, the rate displayed represents a weighted average of all days with outstanding bor
Slide 18: 2024 In-Place Performance Profile
2024 In-Place Performance Profile ~$65M Same-Store Community NOI(2) ~$4M Acquired Community NOI (at share)(1) 20 Communities $4,224 RevPOR 86.4% Occupancy 26.2% NOI Margin $5,901 RevPOR 76.0% Occupancy 21.7% NOI Margin 18 In-Place Run-Rate Annualized Pro Forma ~$13M Acquired Community NOI (at share)
Slide 19: Illustrative Stabilized Incremental NOI Bridge
Illustrative Stabilized Incremental NOI Bridge(1) 19 ▪ Incremental Upside Potential From Same-Store Portfolio Due to Further Improvements in Operations and Senior Housing Sector Fundamentals ▪ NOI Upside from Completed Acquisitions Illustrative Incremental NOI Contribution (excluding impact from fut
Slide 20: Capital Allocation Strategy
Capital Allocation Strategy 20
Slide 21: 2024 Capital Allocation Strategy Scorecard
2024 Capital Allocation Strategy Scorecard 21 High quality real estate reduces average asset age Upper middle market demographic in primary / secondary markets Distressed communities that are NAV and cash flow accretive to Sonida upon stabilization Complementary to existing geographic footprint to a
Slide 22: Primed to Pursue Compelling Inorganic Growth Opportunity
Primed to Pursue Compelling Inorganic Growth Opportunity 22 Sonida is a Differentiated Acquiror Amidst Market Dislocation, Advantageously Combining Characteristics of Both REITs and Operators Opportune Time to Consolidate a Dislocated Market Anticipated Beginning of Multi-Year Senior Housing Recover
Slide 23: U.S. Senior Housing Trends: Continued Favorable Set-Up
U.S. Senior Housing Trends: Continued Favorable Set-Up Data sourced from US Census, NIC MAP and Green Street. 800 825 850 875 900 925 950 975 1,000 1,025 ' 1 9 ' 2 0 ' 2 1 ' 2 2 Q 1 ' 2 3 Q 2 ' 2 3 Q 3 ' 2 3 Q 4 ' 2 3 Q 1 ' 2 4 Q 2 ' 2 4 Q 3 ' 2 4 Q 4 ' 2 4 Occupied Senior Housing Units (000s) - Top
Slide 24: Select Operational Turnaround Case Studies
24 Select Operational Turnaround Case Studies Successful Track Record in Turning Around Underperforming Assets to Drive Improvement in Key Metrics ✓ Identified market need for MC units ✓ Converted 18 AL units to MC with $1.5M of CapEx investment ✓ Addition of signature Magnolia Trails memory care pr
Slide 25: 2024 Investment Profile
2024 Investment Profile 25 Funding Sources (in millions) In-place Metrics (at share) (2)Operating Strategies $82.4 $25.6 $93.9 $48.2 Mortgage Debt JV Partner Equity Sonida Equity Secured Credit Facility Summary • 20 properties (1) • ~$258M in gross assets acquired ($199M at share) • ~1,700 units • A
Slide 26: Q4: Senior Housing Acquisition (Airy Hills) Overview
Q4: Senior Housing Acquisition (“Airy Hills”) Overview 26 ▪ December 2024: Acquired a $16.3M upscale and amenitized community located in Cincinnati, OH ▪ Rebranded to the Wellington at North Bend Crossing - Vista 1 / 82 Properties / Units 50 / 32 AL / MC Unit Mix ~4 Years Asset Age Cincinnati, OH We
Slide 27: Q4: Airy Hills – Acquisition Highlights
Q4: Airy Hills – Acquisition Highlights 27 December 2024: Acquired upscale and amenitized community located in Cincinnati, OH ▪ Transaction funded with $18.25 million of seller-financing, including $2.0 million for capital expenditure investment into the facility (i.e. primarily FFE), which is expec
Slide 28: Q4: Senior Housing Portfolio Acquisition (Mansions) Overview
Q4: Senior Housing Portfolio Acquisition (“Mansions”) Overview 28 (1) Based on estimates as of closing on November 1, 2024. November 2024: Acquired a $29M High-Quality Two Community Senior Housing Portfolio Located in Atlanta, GA Market 2 / 178 Properties / Units 106 / 72 AL / MC Unit Mix ~5.0 Years
Slide 29: Q4: Mansions Portfolio – Acquisition Highlights
Q4: Mansions Portfolio – Acquisition Highlights 29 November 2024: Acquired High-Quality Two Community Senior Housing Portfolio Located in Atlanta, GA Market ▪ Opportunity to unlock potential operational upside through stabilization of portfolio ▪ Solid occupancy uplift potential (from estimated mid-
Slide 30: Q4: Senior Housing Portfolio Acquisition (Palm) Overview
Q4: Senior Housing Portfolio Acquisition (“Palm”) Overview 30 Benton House at Oakleaf, FL (73 Units) Benton House at St. Johns, FL (61 Units) Benton House at Florence, SC (72 Units) October 2024: Acquired a $103M High-Quality Senior Housing Portfolio Located in Florida and South Carolina Florence, S
Slide 31: Q4: Palm Portfolio – Acquisition Highlights
Q4: Palm Portfolio – Acquisition Highlights 31 October 2024: Acquired High-Quality Senior Housing Portfolio Located in Florida and South Carolina ▪ Opportunity to unlock potential operational upside through stabilization of portfolio ▪ Significant occupancy uplift potential (from estimated mid-80% t
Slide 32: Appendix – Supplemental Information
Appendix – Supplemental Information 32
Slide 33: Appendix Table of Contents
A-1 Operating Highlights A-2 Community NOI A-3 Net Operating Income Reconciliation A-4 Adjusted EBITDA Reconciliation A-5 Table of Contents Sonida Investment Portfolio - Market Fundamentals Definitions A-6 Non-GAAP Financial Measures A-7 33
Slide 34: Definitions
Definitions A-1 RevPAR, or average monthly revenue per Available Unit, is defined by the Company as resident revenue for the period, divided by the weighted average number of Available Units in the corresponding portfolio for the period, divided by the number of months in the period. RevPOR, or aver
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures A-2 This Investor Presentation contains the financial measures (1) Net Operating Income and Adjusted Net Operating Income, (2) Net Operating Income Margin and Adjusted Net Operating Income Margin, (3) Adjusted EBITDA, and (4) Adjusted Operating Expenses, each of which is
Slide 36: Operating Highlights
Operating Highlights A-3 Note: Dollars in 000s. Numbers may vary due to rounding. See appendix for definitions. (1) Resident Revenue, Community NOI, Community NOI Margin %, Net Income (loss) include the impact of non-recurring state grants earned and received in the period, as follows: Q1 2023: $2.0
Slide 37: Community NOI
A-4 Community NOI Portfolio Unit Build (as of December 31, 2024) Total Units 9,084 Owned Units, at share (5)(6) 7,050 Available Units, at share (5)(6)(7)(8) 6,861 Note: Dollars in 000s. Numbers may vary due to rounding. (1) Includes Second Person and Level of Care fees. (2) Community NOI and Other I
Slide 38: Net Operating Income Reconciliation
2023 2024 Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Q4 FY 2024 Net income (loss) 24,145 (12,212) (18,411) (14,629) (21,107) 27,019 (9,816) (14,265) (6,218) (3,280) General and administrative expense 7,063 6,574 8,615 9,946 32,198 7,211 9,178 11,793 11,815 39,997 Depreciation and amortization expense 9,881 9,927
Slide 39: Adjusted EBITDA Reconciliation
2023 2024 Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Q4 FY 2024 Adjusted EBITDA Net income (loss) 24,145 (12,212) (18,411) (14,629) (21,107) 27,019 (9,816) (14,265) (6,218) (3,280) Depreciation and amortization expense 9,881 9,927 9,943 10,137 39,888 9,935 10,067 10,729 13,320 44,051 Stock-based compensation expe
Slide 40: Sonida Investment Portfolio - Market Fundamentals
Sonida Investment Portfolio - Market Fundamentals A-7 (1) Based on an average of a 5-mile radius of SSL site. (2) Adult child reflects population between the ages of 45-64. (3) Includes independent living, assisted living, and memory care units in stand-alone and continuum communities. Primary Marke