Sonida Senior Living, Inc. · NYSE:SNDA
Sonida Senior Living — Q2 2024 Earnings Presentation
35 slides from Sonida Senior Living's earnings presentation, Aug 12, 2024
Slide 1: Investor Presentation: A Leading Owner, Operator & Investor
Investor Presentation A Leading Owner, Operator & Investor August 12, 2024 SNDA NYSE Listed Second Quarter 2024
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 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
Slide 4: sonIDa”
© sonIDa” OR LIVIN is in Le Sonida
Slide 5: Senior Living Owner, Operator & Investor in the U.S.
Senior Living Owner, Operator & Investor in the U.S. 5 ü Owner and operator of independent living, assisted living and memory care communities; 70 owned (8 through JV) and 12 managed on behalf of third-party owners ü Only pure-play senior living C-corp owner and manager (zero lease exposure) allowin
Slide 6: Continued Strategic Execution in Q2
Continued Strategic Execution in Q2 6 Operational Performance Capital Structure Management Acquisitions (1) Clinical / Resident Programming (1) Includes July 1, 2024 acquisition of four communities through a JV (2) Excludes the August 2024 loan modification on Baytown, TX and Rosemont, TX communitie
Slide 7: YTD Highlights & Accomplishments
YTD Highlights & Accomplishments 7 - April - July 2024: Company deepens and expands its geographically-clustered footprint through acquisitions in Ohio (1) alongside additional acquisitions as part of a JV in Texas (3), Ohio (2), Missouri (2), Kentucky (1) and Georgia (1) - Portfolio quality continu
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 Diversified and Balanced Portfolio Across High-Growth Markets and Acuity Settings 82 Communities (1) (70 Owned / 12 Managed) 8,148 Units Across 20 States (
Slide 9: Power of Unique Owner-Operator-Investor Model
Power of Unique “Owner-Operator-Investor” Model 9 Full Control of Operations Fully integrated operating platform: No reliance on third-party property management Unified team structure increases efficiencies and brings senior decision makers closer to assets Ability to implement fast-paced operationa
Slide 10: Growth Drivers in 2024 and Beyond
Growth Drivers in 2024 and Beyond 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 initiati
Slide 11: Financial Performance & Highlights
Financial Performance & Highlights
Slide 12: Q2 2024 Financial Comparisons - Same-Store Communities
Q2 2024 Financial Comparisons - Same-Store Communities(1) 12 $ in millions, except RevPAR and RevPOR Q2’24 Q2’23 Q2’24 vs Q2’23 YoY Change (%) Q1’24 Q2’24 vs Q1’24 QoQ Sequential Change (%) 86.2% 83.9% 230 bps 85.9% 30 bps $3,673 $3,300 11.3% $3,557 3.3% $4,263 $3,932 8.4% $4,140 3.0% $62.7 $57.0 10
Slide 13: Proactive Management of Debt
Proactive Management of Debt (as of June 30, 2024) 13 (in millions) Fixed Rate Maturities Variable Rate Maturities Insurance & Other Recurring Principal Payments Total Weighted Rate 2024 - - $2.7 $0.7 $3.4 4.94% 2025 $30.6(1) - $0.6 $1.0 $32.2 5.04% 2026 $220.1 - - $2.2 $222.3 5.02% 2027(3) - $112.9
Slide 14: 13 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 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 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 Weighted Average Occupancy End of Period Spot
Slide 15: Q2 2024 Same-Store Revenue Highlights
Q2 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 • Sonida has shown 9 consecutive quarters of QoQ growth • Sequentially, Q2’24 Resident rent rates increased $1
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 Q2 2024 and excludes May 9, 2024 acquisi
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. Data presented for Same-Store community owned senior housing portfolio includes operating
Slide 18: External Accretive Growth Strategy
External Accretive Growth Strategy
Slide 19: U.S. Senior Housing Trends: Continued Favorable Set-Up
U.S. Senior Housing Trends: Continued Favorable Set-Up 19 Data sourced from US Census, NIC MAP, Green Street and PWC Emerging Trends in Real Estate® 2024 Senior Housing Demand Senior Housing Supply -Total U.S. 80+ population anticipated to grow by 36.5%+ through 2030- 700 750 800 850 900 950 ' 1 9 '
Slide 20: Three-Pronged Disciplined External Accretive Growth Approach
Three-Pronged Disciplined External Accretive Growth Approach Target Profiles Key Attributes I. Balance Sheet Acquisitions -Traditional owner / operator model -Underperforming assets with distressed capitalization -Newer assets -Single assets in existing portfolio footprint or larger strategic portfo
Slide 21: Balance Sheet Acquisition (Sonida 100%)
Balance Sheet Acquisition (Sonida 100%) 21 Location: Macedonia, OH Region: Midwest Units: 100 Services: AL and MC Date Acquired: May 9, 2024 Vintage: 2015 high-quality physical asset Purchase Price: $10.7M; 43% discount to in-place senior loan balance at approximately $105k per unit Summary: • Same
Slide 22: KZ Family Ventures JV Acquisition (Sonida 33%)
KZ Family Ventures JV Acquisition (Sonida 33%) 22 Locations: Cincinnati, OH (1), Cleveland, OH (1), Kansas City, MO (1) and Louisville, KY (1) Regions: Midwest and Southeast Units: 464 (4 Communities) Services: IL, AL and MC Date Acquired: May 29, 2024 Vintage: Recently constructed communities with
Slide 23: Palatine JV Acquisition (Sonida 51%)
Palatine JV Acquisition (Sonida 51%) 23 Locations: San Antonio, TX (2), Austin, TX (1) and Atlanta, GA (1) Regions: South and Southeast Units: 326 (4 Communities) Services: AL and MC Date Acquired: July 1, 2024 Vintage: Recently constructed or redeveloped communities (average of 7 years ago) Purchas
Slide 24: Recent Operating Management Contracts
Recent Operating Management Contracts 24 Locations: Wisconsin and Minnesota Regions: Midwest and Upper Midwest Communities: 3 Date Initiated: June 2024 (2) and August 2024 (1) Summary: • Sonida to leverage full suite of operational capabilities for near-term occupancy recovery • Management contracts
Slide 25: Target Acquisition Profile & Sourcing Channels
Target Acquisition Profile & Sourcing Channels 25 Community Profile for New Target Acquisitions and Joint Ventures Sourcing Channel Strategy Business Mix: IL/AL/MC Asset Quality Consideration Market Demographic and Competitor Profile Valuation / Cash Flow Geographic Overlay Political and Economic Cl
Slide 26: Appendix – Supplemental Information
Appendix – Supplemental Information
Slide 27: Appendix Table of Contents
A-1 Financial Overview A-2 Community NOI A-3 Net Income (Loss) Walk Forward A-4 Adjusted EBITDA Walk Forward A-5 Capitalization – as of June 30, 2024 A-6 Geographical Breakdown A-7 Financial and Key Metrics A-8 Table of Contents Sonida Investment Portfolio - Market Fundamentals
Slide 28: Financial Overview
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Summary Statistics(1) Resident Revenue 56,606$ 56,960$ 59,117$ 59,349$ 232,032$ 60,737$ 63,108$ Community NOI 13,402$ 13,549$ 14,690$ 16,750$ 58,391$ 14,915$ 17,616$ Community NOI Margin 23.7% 23.8% 24.8% 28.2% 25.2% 24.6% 28.0% Same-Store Resident Revenue 56,606$ 56,960$ 5
Slide 29: Community NOI
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Resident Revenue Independent Living (1) 15,054$ 15,381$ 15,751$ 16,057$ 62,243$ 16,305$ 16,961$ Assisted Living(1) 29,054 30,038 31,007 30,984 121,082 31,742 32,877 Memory Care(1) 9,683 10,429 11,131 11,580 42,822 11,936 12,155 Community Fees 484 452 432 425 1,794 463 489 O
Slide 30: Net Income (Loss) Walk Forward
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Net Income (loss) Consolidated Community NOI(1) 11,365$ 13,139$ 14,212$ 16,260$ 54,977$ 14,915$ 17,616$ Non-operating expenses(2) (641) (1,261) (59) (1,278) (3,239) (495) (489) Non-recurring state grant revenue 2,037 410 478 - 2,925 - - Management fees 505 531 569 586 2,191
Slide 31: Adjusted EBITDA Walk Forward
Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Adjusted EBITDA Net income (loss) 24,145$ (12,212)$ (18,411)$ (14,629)$ (21,107)$ 27,019$ (9,816)$ Depreciation & amortization expense 9,881 9,927 9,943 10,137 39,888 9,935 10,067 Stock-based compensation expense 902 601 641 605 2,749 575 1,211 Provision for bad debt 238 96
Slide 32: Capitalization Summary as of June 30, 2024
Capitalization Summary as of June 30, 2024 A-5 Note: Dollars in 000s except for share price, share count, and strike price. Numbers may vary due to rounding (1) Weighted average interest rate (2) Variable exposure is synthetically limited with interest rate caps on all debt. Rates reflect all-in int
Slide 33: Geographical Breakdown – Owned Communities
3 4 9 12 8 14 16 0 5 10 15 20 40-65% 65-75 75-80 80-85 85-90 90-95 95%+ # OF COMMUNITIES / (% OF OWNED PORTFOLIO) OC CU PA NC Y % R AT ES Geographical Breakdown – Owned Communities A-6 South 18 Communities Midwest 35 Communities Greater Atlantic 8 Communities (1) Based on owned senior housing portfo
Slide 34: Financial and Key Metrics by Region
Regional Location Communities $000s % of Exp $000s % of Exp $000s % of Exp $000s % of Exp Direct Labor & Related Payroll 6,351$ 54.9% 16,909$ 63.8% 4,490$ 64.3% 27,751$ 61.6% $ per resident day % of resident revenue Contract/Agency 29$ 0.3% 559$ 2.1% 13$ 0.2% 601$ 1.3% $ per resident Food Cost 1,035
Slide 35: 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 Markets