Sonida Senior Living, Inc.

Reported third-quarter figures included same-store weighted average occupancy of 88.6%, up 200 basis points year over year; same-store RevPAR of $5.41 thousand per occupied unit, up 4.6%; and same-store resident revenue of $164 million, up 7.3%. Same-store SHOP NOI was $52 million, up 15.6%, with margin expanding to 31.8%, while total portfolio NOI was $63.3 million, up 16.1%, and total SHOP NOI was $55.3 million, up 17.2%. Normalized FFO was $0.46 per share and adjusted EBITDA was $46.8 million, up 26.2% year over year. Net leverage was 8.1x at quarter end versus 7.8x on June 30, and total debt was approximately $1.7 billion at a weighted average rate of 5.78%. Management did not provide next-quarter financial guidance, but said full-year 2027 guidance will be released with fourth-quarter results. It also said 2026 acquisition capital remains on track at $250 million, with $98 million under contract.

Brandon Ribar framed the quarter as confirmation that Sonida’s operating model is working, saying occupancy gains are translating into margin expansion and earnings growth. He emphasized the company’s strategy of buying high-quality assets in strong suburban markets, integrating them onto the Sonida platform, and using SPIN and other operating initiatives to drive pricing power, labor efficiency, and resident experience. His tone was upbeat and confident, with repeated references to “plenty of upside” in the portfolio and confidence in durable per-share value creation.

Kevin J. Detz focused on operating leverage, seasonality, and balance sheet progress. He noted that Q3 is usually the most challenging quarter for margin flow-through because of one extra labor day, two holidays, and the highest utility months, yet labor still improved to 41.3% of revenue, down 90 basis points year over year, and food costs were held to $7.44 per resident day. On the balance sheet, he said Sonida closed a $380 million, 5-year term loan at SOFR plus 1.85%, repaid $170 million of bridge debt and the prior Ally term loan, reduced revolver borrowings by $70 million, and ended the quarter with $80 million available under its $455 million secured revolver. He reiterated a near-term net leverage target of 6x to 6.5x and said the company will continue to opportunistically use equity only when acquisitions justify it.

Analysts mainly pressed on occupancy and RevPAR trends, CHP integration, the remaining management transitions, and the economics of the operator acquisitions. Management said occupancy and rate growth should continue, with more upside still in both the existing portfolio and recently acquired communities, and pointed to ongoing gains in October. On CHP, management said 19 of 54 SHOP communities had transitioned as of November 1, the first 14 onboarded communities delivered 33.2% NOI growth and 600 basis points of margin expansion, and the remaining 11 communities are still being finalized with two managers, with an update expected on the next call. They also said third-party management fees tied to CHP were modeled conservatively and could come down toward a 3% to 3.5% stabilized level versus the current 5% assumption.