Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Q3 2024 Earnings Presentation
37 slides from Sonida Senior Living's earnings presentation, Nov 13, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 November 13, 2024 A Leading Owner, Operator & Investor SNDA NYSE Listed
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 of Sonida Senior Living, Inc. (the “Company,” “we,” “our” or “us”) to differ materially from those indic
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3 This presentation 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 Occupied
Slide 4: Sonida
© soniDa OR LIVING Sonida
Slide 5: Senior Living Owner, Operator & Investor in the U.S.
5 Senior Living Owner, Operator & Investor in the U.S. ü Owner and operator of independent living (IL), assisted living (AL) and memory care (MC) communities; 80 owned (including 8 in joint ventures) and 13 managed on behalf of third-party owners ü Only public pure-play senior living C-corp owner an
Slide 6: Continued Strategic Execution
6 Continued Strategic Execution Operational Performance Q3 Capital Raises YTD Acquisitions(2) Debt Management (1) Adjusted to exclude non-recurring state grant revenue earned and received in Q3 2023 (none in Q3 2024). (2) Includes May 9, 2024 acquisition of one community in Macedonia, Ohio; May 29,
Slide 7: YTD Highlights & Accomplishments
YTD Highlights & Accomplishments 7 Operational(1)(3) (Q3’24) Acquisitions and Investments Totaling >$240M Investments in Growth and Support Infrastructure Debt Capital Raised - Same-Store Weighted Average Occupancy: 87.0% / 210 bps increase vs. Q3’23 - Same-Store RevPOR: $4,244 / 4.5% increase vs. Q
Slide 8: Sonida Senior Living Footprint
Sonida Senior Living Footprint 8 15+ Communities 5 - 14 Communities < 5 Communities Managed Owned Portfolio Mix by State Portfolio Mix by Acuity Regionally-Concentrated Portfolio in Markets with Positive Demographic Trends (1) Total Operating Portfolio includes eight communities in FL & SC that were
Slide 9: Differentiated Platform: Owner/Operator/Investor Model
Differentiated Platform: “Owner/Operator/Investor” Model 9 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 ü Ver
Slide 10: Growth Drivers
Growth Drivers Significant acquisition opportunities tied to limited capital availability across the sector; banks, private equity sponsors, and management companies all represent current target relationships Company specific operational improvements led by new management initiatives (labor, sales e
Slide 11: Financial Performance & Highlights
Financial Performance & Highlights
Slide 12: Q3 2024 Financial Comparisons - Same-Store Communities
Q3 2024 Financial Comparisons - Same-Store Communities(1) 12 $ in millions, except RevPAR and RevPOR Q3’24 Q3’23 Q3’24 vs Q3’23 YoY Change (%) 87.0% 84.9% 210 bps $3,692 $3,446 7.1% $4,244 $4,061 4.5% $63.0 $59.1 6.6% $46.2 $44.4 4.1% $16.8 $14.7 14.3% 26.7% 24.8% 190 bps $16.8 $14.2 18.3% 26.7% 24.
Slide 13: 14 Consecutive Quarters of 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 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 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 Weighted Average Occupancy E
Slide 14: Proactive Management of Debt
Proactive Management of Debt (as of September 30, 2024) 14 (in millions) Fixed Rate Maturities Variable Rate Maturities Insurance & Other Recurring Principal Payments Total 2024 - - $1.3 $0.1 $1.4 2025 $41.7 (1) - $1.1 $0.3 $43.1 2026 $220.1(5) $15.3 - $1.9 $237.3 2027(3) - $112.9 - $3.4 $116.3 2028
Slide 15: Q3 2024 Same-Store Revenue Highlights
Q3 2024 Same-Store Revenue(1) Highlights • March 1, 2024 portfolio-wide annual average rate increase of 6.3% on an all-in basis; 7.3% excluding Medicaid supported and ancillary fee revenues • Q3’24 resident rent rates increased $207 or 5.5% compared to Q3’23 • QoQ resident rent rate growth in 9 of l
Slide 16: Same-Store Revenue Growth Continues to Outpace Labor Costs
Same-Store Revenue Growth Continues to Outpace Labor Costs 16 Labor Costs Trend as a Percent of Revenue (1) (2) (1) Exclude benefits. Same-Store community owned senior housing portfolio includes operating results and data for 61 communities consolidated as of Q3 2024 and excludes the 19 communities
Slide 17: Same-Store Non-Labor Operating Cost Holding Steady
Same-Store Non-Labor Operating Cost Holding Steady 17 Total Operating Expense Excluding Labor(1) Costs Trend (1) Amounts calculated as a percentage of revenues exclude non-recurring state grants in all periods. Same-Store community owned senior housing portfolio includes operating results and data f
Slide 18: Illustrative Stabilized Incremental NOI Bridge
Illustrative Stabilized Incremental NOI Bridge(1) 18 $67M § 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 fro
Slide 19: Capital Allocation Strategy
Capital Allocation Strategy
Slide 20: YTD Capital Allocation Strategy Scorecard
YTD Capital Allocation Strategy Scorecard 20 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 ac
Slide 21: Primed to Pursue Compelling Inorganic Growth Opportunity
Primed to Pursue Compelling Inorganic Growth Opportunity 21 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 22: U.S. Senior Housing Trends: Continued Favorable Set-Up
U.S. Senior Housing Trends: Continued Favorable Set-Up 22Data sourced from US Census, NIC MAP and Green Street. 700 750 800 850 900 950 ' 1 9 ' 2 0 ' 2 1 ' 2 2 ' 2 3 ' 2 4 Occupied Senior Housing Units (000s) - Top 99 Markets Highest on record Demographic-driven Demand Acceleration + Market-driven D
Slide 23: Select Operational Turnaround Case Studies
23 Select Operational Turnaround Case Studies Successful Track Record in Turning Around Underperforming Assets to Drive Improvement in Key Metrics ü Identified market need for MC units ü Converted 24 AL units to MC with $1.3MM of CapEx investment ü Hired strong Executive Director with previous regio
Slide 24: Senior Housing Portfolio Acquisition (Palm) Overview
Senior Housing Portfolio Acquisition (“Palm”) Overview 24 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 $103MM High-Quality Senior Housing Portfolio Located in Florida and South Carolina Florence, SC B
Slide 25: Palm Portfolio – Acquisition Highlights
Palm Portfolio – Acquisition Highlights 25 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% to ~9
Slide 26: Senior Housing Portfolio Acquisition (Mansions) Overview
Senior Housing Portfolio Acquisition (“Mansions”) Overview 26 (1) Based on estimates as of closing on November 1, 2024. November 2024: Acquired a $29MM 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 Av
Slide 27: Mansions Portfolio – Acquisition Highlights
Mansions Portfolio – Acquisition Highlights 27 November 2024: Acquired a $29MM High-Quality Two Community Senior Housing Portfolio Located in Atlanta, GA Market § Opportunity to unlock potential operational upside through stabilization of portfolio § Solid occupancy uplift potential (from estimated
Slide 28: Appendix – Supplemental Information
Appendix – Supplemental Information
Slide 29: Appendix Table of Contents
A-1 Financial Overview A-2 Community NOI A-3 Net Operating Income Reconciliation A-4 Adjusted EBITDA Reconciliation A-5 Capitalization – as of September 30, 2024 A-6 Geographical Breakdown A-7 Financial and Key Metrics A-8 Table of Contents Sonida Investment Portfolio - Market Fundamentals
Slide 30: Financial Overview
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Summary Statistics(1) Resident Revenue 56,606$ 56,960$ 59,117$ 59,349$ 232,032$ 60,737$ 63,108$ 66,951$ Community NOI 13,402$ 13,549$ 14,690$ 16,750$ 58,391$ 14,915$ 17,616$ 17,089$ Community NOI Margin 23.7% 23.8% 24.8% 28.2% 25.2% 24.6% 28.0% 25.5% Same-Store Resident
Slide 31: Community NOI
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Resident Revenue Independent Living(1) 15,054$ 15,381$ 15,751$ 16,057$ 62,243$ 16,305$ 16,961$ 17,290$ Assisted Living(1) 29,054 30,038 31,007 30,984 121,082 31,742 32,877 32,599 Memory care(1) 9,683 10,429 11,131 11,580 42,822 11,936 12,155 12,367 Community Fees 484 452
Slide 32: Net Operating Income Reconciliation
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Consolidated Community NOI(1) 11,365$ 13,139$ 14,212$ 16,260$ 54,977$ 14,915$ 17,616$ 17,089$ Non-operating expenses(2) (641) (1,261) (59) (1,278) (3,239) (495) (489) (630) Non-recurring state grant revenue 2,037 410 478 - 2,925 - - - Management fees 505 531 569 586 2,19
Slide 33: Adjusted EBITDA Reconciliation
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Net income (loss) 24,145$ (12,212)$ (18,411)$ (14,629)$ (21,107)$ 27,019$ (9,816)$ (14,265)$ Depreciation & amortization expense 9,881 9,927 9,943 10,137 39,888 9,935 10,067 10,729 Stock-based compensation expense 902 601 641 605 2,749 575 1,211 1,408 Provision for bad d
Slide 34: Capitalization Summary as of September 30, 2024
Capitalization Summary as of September 30, 2024 A-5 Note: Dollars in 000s except for share price, share count, and strike price. Numbers may vary due to rounding. (1) Represents contractual maturity of December 2026, excluding the potential extension of FNMA mortgage debt on 18 communities to Januar
Slide 35: Geographical Breakdown – Owned Communities
0 5 10 15 20 50 - 65% 65 - 75 75 - 80 80 - 85 85-90 90-95 95%+ # OF COMMUNITIES / (% OF OWNED PORTFOLIO OC CU PA NC Y % R AT ES 0 5 10 15 20 25 30 IL AL MC IL/AL AL/MC IL/AL/MC # OF COMMUNITIES / (% OF OWNED PORTFOLIO SE RV IC ES Geographical Breakdown – Owned Communities A-6 South 21 Communities Mi
Slide 36: Q3 Financial and Key Metrics – Same-Store Owned Communities
T3M: Q3 Financial and Key Metrics – Same-Store Owned Communities A-7 Note: Dollars in 000s. Numbers may vary due to rounding. Financial data presented is September 2024 trailing 3-month results. Same-Store community owned senior housing portfolio includes operating results and data for 61 communitie
Slide 37: Sonida Investment Portfolio - Market Fundamentals
Sonida Investment Portfolio - Market Fundamentals A-8 (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