Sonida Senior Living, Inc.

Second quarter normalized FFO per share was $0.48, with adjusted FFO of $50 million. Same-store weighted average occupancy increased 240 basis points year over year to 87.8%, same-store NOI grew 16.9% year over year, and same-store NOI margin expanded 250 basis points to 32.6%. Total SHOP NOI grew 17.5%, total SHOP weighted average occupancy increased 170 basis points year over year to 86.6%, total SHOP RevPAR increased 4.9%, and total SHOP NOI margin was 29.9%. Labor costs declined 130 basis points as a percentage of revenue to 40.4%. For guidance, management said it expects to begin issuing full-year 2027 normalized FFO guidance, and it sees continued occupancy improvement with low- to mid-90s occupancy achievable over time; no formal near-term financial guidance was provided on the call.

Brandon Ribar framed the quarter as evidence that Sonida has moved into a “compounding” phase, with operating momentum translating into stronger margins and cash generation. He emphasized the role of the new COO hire, Anton Nikodemus, and the SPIN platform in improving resident experience, pricing, staffing, and integration execution. He also stressed that the company’s strategy is centered on acquiring assets where operating upside can create value after closing, especially in dense regional clusters.

Kevin J. Detz highlighted the same-store and total portfolio operating gains, pointing to 4.9% RevPOR growth, 32.6% same-store NOI margin, and labor costs at 40.4% of revenue, a portfolio low. On the balance sheet, he said the company is moving toward a target leverage range of 6.0x to 6.5x; as of June 30, it had $575 million of term loans, including an additional $25 million commitment received in Q2, priced at SOFR plus 195 bps with step-downs to SOFR plus 130 bps. After quarter end, Sonida completed a $380 million 5-year Ally term loan, used proceeds to repay a $170 million bridge loan and a $122 million existing Ally term loan, and said total debt is about $1.6 billion at a 5.43% weighted average rate, with 86% fixed or hedged and roughly $166 million available on the $455 million revolver. He also noted $27.3 million of net ATM proceeds from 672,000 shares sold in July, intended for equitizing the nearest-term community in the pipeline.

Analysts asked when management would provide normalized FFO guidance; Kevin Detz said the goal is to start issuing full-year 2027 guidance as the CHP integration and other pipeline acquisitions are completed. Questions also focused on longer-term occupancy, and Brandon Ribar said low- to mid-90s occupancy looks achievable, with SPIN and the new COO expected to support that trajectory. On capital recycling, management said the non-core triple-net assets could be evaluated over the next 6 to 12 months and that a 100 to 200 bps spread to redeploy into growth assets would be attractive. Analysts also asked whether vendor scale savings and acquisitions were opening new geographies; management said scale benefits are already being captured, and the pipeline remains centered on assets similar to the 2024 and 2025 cohorts in core and adjacent markets.