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    SNDA
    Earnings call· Jun 2026(Q2 FY26)

    SONIDA SENIOR LIVING Q2 FY26 earnings call SNDA

    Aug 10, 2026 Source

    Executive summary

    Sonida Senior Living Q2 FY26 — Strong Operational Performance and Strategic Growth

    Sonida Senior Living delivered a strong Q2 FY26, demonstrating significant operational momentum with robust occupancy gains and margin expansion across its portfolio. The company is actively integrating the CHP acquisition, leveraging its proprietary SPIN platform, and pursuing a disciplined capital allocation strategy focused on high-return acquisitions and balance sheet optimization. Management expects to issue full-year 2027 guidance as the portfolio integration completes.

    Highlights

    5

    • Same store weighted average occupancy increased 240 basis points year over year to 87.8%.

    • Same store Community NOI grew 16.9% year over year, with NOI margin expanding 250 basis points to 32.6%.

    • Normalized FFO per share was $0.48 and adjusted EBITDA was $50 million for the total portfolio.

    • Total shop NOI grew 17.5%, supported primarily by growth in the same store portfolio.

    • Balance sheet strengthened with a $380 million five-year term loan, extending debt maturity and increasing liquidity.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year FFO guidance
    To be issued
    high materiality
    High
    Near-term leverage range
    6x to 6.5x
    high materiality
    High
    Acquisition pipeline unlevered IRR
    Mid-teens
    medium materiality
    High
    Stabilized occupancy
    Low to mid-90s
    high materiality
    High

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Same Store Portfolio
    Generated strong operating gains driven by occupancy increases, rate strength, and well-controlled operating expenses, leading to significant NOI margin expansion. The 2024 acquisition cohort continues to increase its absolute NOI contribution within this portfolio.
    Weighted average occupancy: 87.8%Weighted average occupancy YoY increase: 240 bpsCommunity NOI growth YoY: 16.9%NOI margin YoY expansion: 250 bpsCommunities with occupancy >90%: 54% (vs 43% in Q2 FY25)Communities with occupancy <80%: 20% (vs 30% in Q2 FY25)REF4 growth YoY: 4.9%Incremental flow-through on revenue increase: 63.4%Total labor costs decline YoY: 1.5%Total labor costs as % of revenue: 40.4% (YoY -130 bps)Direct labor improvement: 100 bps
    		———32.6%
    Total Shop Portfolio
    NOI growth was supported primarily by the same store portfolio, reflecting continued strength across the stabilized core while incorporating acquired communities with lower starting occupancy. Management expects to build upon the current NOI margin as strategies are executed.
    Estimated average occupancy: 86.6%Estimated average occupancy YoY increase: 170 bpsREF4 growth: 4.9%
    		—17.5%—29.9%
    Non-Same Store Portfolio
    Includes newly acquired and stabilizing communities, assets undergoing reinvestment or care model conversion, and 14 non-core communities identified for disposition. Capital recycling of these non-core positions is expected to deleverage the balance sheet and enhance overall quality.
    Q2 NOI contribution: <2% of total NOI
    		————
    Triple Net Lease Portfolio
    Consists of 15 owned communities with operating leases. While providing strong cash flow, the company is not interested in growing this business and may evaluate market transactions for these assets in the near to mid-term.
    Number of communities: 15Initial lease maturities: May 2030 to July 2032Tenant renewal options: Five-year
    		————
    2024 Acquisition Cohort
    Continues to increase its absolute NOI contribution with each consecutive quarter, with meaningful further upside ahead.
    Yield relative to cost basis: ~11.5%
    		————
    2025 Acquisition Cohort
    Showing strong momentum, with NOI margin improving significantly from Q4 2025. Plenty of runway left for stabilization and meaningful year-over-year NOI contribution when they flip into same-store in 2027.
    Occupancy as of June: 70.4%NOI margin in Q4 2025: -1%
    		———15%
    Stone Joint Venture
    Formed in 2024 to acquire four highly distressed communities, the portfolio NOI has grown significantly. A cash-out refinancing this quarter returned the full amount of invested capital. The portfolio remains in the stabilization phase with meaningful upside.
    Portfolio NOI growth: 5.6 times
    		—5.6 times——

    Operational metrics

    14
    Normalized FFO per share
    $0.48
    Q2 FY26

    Reflecting the earnings power of the platform as it scales.

    Adjusted EBITDA
    $50 million
    Q2 FY26

    Reflecting the earnings power of the platform as it scales.

    Total portfolio occupancy sequential increase
    40 bpssequential
    July vs June

    Momentum continued into the third quarter.

    Total debt
    $1.6 billion
    Post-Ally refinancing

    As of the Ally refinancing transaction on a pro forma basis.

    Weighted average interest rate on total debt
    5.43%
    Post-Ally refinancing

    As of the Ally refinancing transaction on a pro forma basis.

    Fixed or floating hedged debt
    86%
    Post-Ally refinancing

    Of total debt.

    Debt maturing 2029 or later
    97%
    Post-Ally refinancing

    Of total debt, prior to inclusion of extension options.

    Debt maturing 2031 or later
    43%
    Post-Ally refinancing

    Of total debt, prior to inclusion of extension options.

    Secured revolving credit facility total commitment
    $455 million
    Post-Ally refinancing

    As of the date of the Ally Term Loan financing.

    Secured revolving credit facility immediately available
    $166 million
    Post-Ally refinancing

    Provides meaningful incremental capacity to support future growth.

    ATM program shares issued
    672,000 shares
    July

    Issued under its ATM program.

    ATM program average price
    $41.05
    July

    Average price per share for ATM program.

    ATM program net proceeds
    $27.3 million
    July

    Anticipated to be used for equitization of nearest term community acquisitions.

    Acquisition pipeline value under contract
    $88 million
    Current

    Assets under contract that share characteristics of prior successful acquisitions.

    Industry KPIs

    1
    MetricValueDetails
    Adjusted EPS EBITDA leverage guidance$0.48USD

    Deals & partnerships

    3
    C&L Healthcare Properties Inc. (CHP)Acquisition of senior living communities

    Acquisition completed on March 11, 2026. As of July 1st, 14 communities have transitioned to Sonida management.

    Joint venture partnerAcquisition and operation of distressed communities

    Formed in 2024 to acquire four highly distressed communities across the Midwest. Refinancing closed this quarter with attractively priced long duration flexible mortgage debt.

    Ally BankFive-year term loan financing$380 million5 years

    Completed on August 7th, subsequent to quarter end. Includes two extension options.

    What to watch in Q3 FY26

    5

    Full-year FFO guidance

    Next quarter / Future calls
    CurrentNo guidance issued for FY26
    TargetIssuance of full-year FY27 FFO guidance

    Why it matters

    The issuance of formal FFO guidance will provide investors with clearer financial targets and management's outlook for the combined portfolio's earnings power.

    Our goal is to start issuing guidance for the full year 2027 as we just continue to pull the entire portfolio together and work through the completion of the integrations from the CHP deal as well as the other acquisitions we have in our pipeline.

    Q&A highlights

    5

    When does Sonida Senior Living plan to provide normalized FFO guidance?

    Management aims to issue full-year 2027 FFO guidance after completing the integration of the CHP deal and other acquisitions in the pipeline.

    “Our goal is to start issuing guidance for the full year 2027 as we just continue to pull the entire portfolio together and work through the completion of the integrations from the CHP deal as well as the other acquisitions we have in our pipeline.”

    asked by Ronald Camden · answered by Unknown Speaker

    2 min read5 chapters

    Detailed Narrative

    01

    Operational Momentum and SPIN Platform

    Sonida Senior Living is transitioning from stabilization to a 'compounding' phase, evidenced by strong Q2 FY26 results. The proprietary SPIN (Sonita Performance Insight Navigator) platform is a key driver, providing real-time insights into occupancy, rate, and labor trends across over 100 communities. Each new community acquisition enriches the data set, enhancing predictive insights into resident clinical profiles and labor efficiency, which is crucial for optimizing operations and driving margin expansion.

    02

    CHP Integration and Leadership Enhancement

    The integration of the C&L Healthcare Properties Inc. (CHP) portfolio is on track, with 14 communities transitioned to Sonida management as of July 1st. This process has been smooth and instructive, refining the company's integration playbook. The appointment of Anton Nicodemus as Chief Operating Officer underscores a deliberate investment in enhancing the resident and customer experience, embedding a hospitality-driven culture across the growing portfolio, which is seen as a key differentiator.

    03

    Capital Allocation and Acquisition Strategy

    The company's investment focus is return-driven, measuring every dollar deployed against free cash flow and net asset value per share creation. Sonida targets high-quality assets available at a discount to replacement cost in markets with favorable supply-demand dynamics, where its operational capabilities can drive significant performance uplift. Regional density in key markets like Dallas, Fort Worth, Northern Florida, and Atlanta is a particularly important part of this thesis, reinforcing referral networks, purchasing power, and labor efficiencies.

    04

    Portfolio Management and Capital Recycling

    Sonida reports its portfolio across three groupings: same store, non-same store, and triple net lease. The non-same store bucket includes newly acquired, stabilizing, and repositioning assets, as well as a target set of 14 non-core communities identified for disposition. This capital recycling strategy aims to redeploy capital into higher-quality, higher-growth assets, enhancing overall portfolio quality and earnings power, with these non-core assets representing less than 2% of Q2 NOI.

    05

    Balance Sheet Strengthening and Liquidity

    The company has significantly strengthened its balance sheet, advancing towards a targeted near-term leverage range of 6x to 6.5x. A $380 million five-year term loan with Ally Bank was completed in August, used to settle bridge loans and increase availability on the secured revolving credit facility. This refinancing meaningfully extends the debt maturity profile, with 97% of total debt maturing in 2029 or later, and provides substantial incremental capacity for future growth.

    AI-generated summary of the company’s earnings call. Not investment advice.