Sonida Senior Living (SNDA) Q3 2024 earnings summary

Executive summary

• Achieved strong portfolio expansion with up to 22 new communities added in 2024, representing a 30% increase in operating units over six months, and now operates up to 93 communities across 20 states.

• Focused on operational excellence, with 14 consecutive quarters of same-store occupancy growth and ongoing margin expansion; Q3 2024 weighted average occupancy reached 87.0%, up 210 basis points year-over-year.

• Pursued significant inorganic growth, acquiring up to 19 communities in 2024, including high-quality portfolios in Florida, South Carolina, and Georgia.

• Major equity and debt transactions included a $130.4 million public offering, a $150 million secured credit facility, and $160 million in acquisitions.

• Net loss attributable to common stockholders for Q3 2024 improved to as low as $13.8 million from $18.4 million in Q3 2023.

Financial highlights

• Q3 2024 same-store adjusted community NOI rose 18.3% year-over-year to $16.8 million, with margin expanding to 26.7%.

• Resident revenue for Q3 2024 was $67.0 million, up 13.4% year-over-year, driven by higher occupancy, rent rates, and acquisitions.

• Blended resident rates rose 5.5% year-over-year; RevPAR grew 7.1% and RevPOR increased 4.5%.

• Labor costs as a percentage of revenue improved by 230 basis points year-over-year; average wage rate increased 3.5%.

• Net loss per common share for Q3 2024 improved to $(0.98) from $(2.79) in Q3 2023.

Outlook and guidance

• Targeting portfolio-wide occupancy of 90% as the next milestone, with expectations for further NOI growth and margin expansion.

• Anticipates positive recurring cash flow by year-end, supported by recent acquisitions and expanded credit facilities.

• Positioned to benefit from favorable demographic trends and limited new supply, supporting multi-year occupancy and rate growth.