Core Viewpoint - Sonida Senior Living (SNDA) reported a quarterly loss of $0.16 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.78, indicating a positive earnings surprise of +79.49% [1] Financial Performance - The company posted revenues of $82.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.31% and showing an increase from $70.21 million in the same quarter last year [2] - Over the last four quarters, Sonida Senior Living has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Sonida Senior Living shares have increased by approximately 5.6% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.76 on revenues of $85.06 million, and for the current fiscal year, it is -$3.06 on revenues of $333.9 million [7] - The trend of earnings estimate revisions for Sonida Senior Living was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Medical Services industry, to which Sonida Senior Living belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Group 1 - The earnings call for Sonida Senior Living, Inc. took place on August 11, 2025, at 11:00 AM ET [1] - Key participants included Brandon M. Ribar (President, CEO & Director), Jason Finkelstein (Corporate Participant), and Kevin J. Detz (Executive VP & CFO) [1] - The call was hosted by an operator named Eric, who welcomed participants to the conference [1] Group 2 - Jason Finkelstein, representing Investor Relations, initiated the call and mentioned that forward-looking statements may be made during the discussion [2][3] - The company disclaims any obligation to update forward-looking statements in the future [3] - Actual results may differ materially from these forward-looking statements due to various factors, which are detailed in the earnings release and SEC filings [4]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 26.1% year over year in Q2 2025, with same store net operating income (NOI) increasing 1.8% year over year and nearly 4% sequentially [7][18] - Total portfolio NOI improved 5% sequentially, while year over year NOI growth was slower due to challenging comparisons from Q2 2024 [7][20] - Year over year occupancy grew 40 basis points from 86.1% to 86.5% on a same store basis, with annualized same store revenues increasing by $12 million or 5.1% [17][18] Business Line Data and Key Metrics Changes - The acquisition portfolio saw an 8.1% sequential increase in revenues, reflecting a strong annual rate increase and contributions from newly acquired communities [19] - Same store direct labor increased approximately $1.5 million year over year, with revenues growing at approximately double this rate [26] - The company maintained a flat G&A level while investing in sales and marketing capabilities, resulting in a net zero impact on G&A despite personnel restructuring [28] Market Data and Key Metrics Changes - The company achieved a record high occupancy of 88.2% for its same store portfolio in July 2025, positioning for strong growth in the latter half of the year [10] - Nearly half of the communities remain over 90% occupied, with eight communities operating at 100% occupancy [14] - The company reported a 4% year over year increase in quarterly same store move ins, indicating strong lead volume and demand [8][12] Company Strategy and Development Direction - The company is focused on disciplined capital deployment in accretive opportunities, particularly in non-stabilized assets [33] - A strategic inorganic growth plan remains on track, with two acquisitions completed in Q2 and a third announced for Q3 [11][33] - The company aims to enhance operational integration and capitalize on high-quality assets coming to market [34] Management's Comments on Operating Environment and Future Outlook - Management noted an unusually high uptick in resident deaths impacting occupancy growth, but improvements in clinical response processes are expected to mitigate this in the future [7][8] - The company is optimistic about future revenue and margin growth, with significant opportunities for occupancy, rate, and margin improvements [35] - Management emphasized the importance of culture and team development in sustaining growth and operational success [35] Other Important Information - The company successfully closed a restated financing agreement with Ally Bank, extending the term and improving the balance sheet [29][30] - The weighted average interest rate for the portfolio is 5.6%, with 59% of total debt being fixed rate [30] - The company is in compliance with all financial covenants required under its mortgages and credit facility [31] Q&A Session Summary Question: Can you provide more detail on move out and move in activity? - Management noted that move outs increased due to higher deaths in April, but saw a decrease in the latter half of the quarter and a strong uptick in July driven by improved digital marketing efforts [38][39] Question: What are the occupancy and stabilized yields for acquisitions? - Management indicated that acquisitions typically have occupancy in the mid-70s to low 80s and are expected to benefit from enhanced sales and marketing capabilities [42][43] Question: How does the labor cost increase compare to RevPAR growth? - Management confirmed that labor costs increased due to targeted wage increases for nursing staff, but overall turnover has decreased, allowing for better expense management [48][49]

Leading Owner, Operator & Investor Investor Presentation Second Quarter 2025 August 11, 2025 SNDA NYSE Listed Forward-Looking Statements This investor presentation contains forward-looking statements which are subject to certain risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under "Item. 1A. Risk Factors" in our Annual Repor ...

Part I. Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Sonida Senior Living, Inc. as of June 30, 2025, and for the three and six-month periods then ended [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $849.8 million from $841.9 million at year-end 2024, driven by an increase in property and equipment, while total liabilities rose to $736.0 million from $712.3 million, primarily due to higher long-term debt, and total equity decreased from $78.4 million to $62.5 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $63,451 | $64,089 | | **Property and equipment, net** | $750,261 | $739,884 | | **Total Assets** | **$849,772** | **$841,921** | | **Total Current Liabilities** | $74,583 | $75,615 | | **Long-term debt, net** | $660,163 | $635,904 | | **Total Liabilities** | **$736,006** | **$712,312** | | **Total Equity** | **$62,517** | **$78,360** | | **Total Liabilities, redeemable preferred stock and equity** | **$849,772** | **$841,921** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total revenues increased to $93.5 million from $70.2 million year-over-year, resulting in a net loss of $2.0 million, a significant improvement from the $9.8 million net loss in the same period of 2024, while for the six-month period, revenues grew to $185.4 million from $137.6 million, with a net loss of $15.0 million compared to a net income of $17.2 million in the prior year due to a large gain on debt extinguishment Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $93,525 | $70,207 | $185,448 | $137,645 | | **Total Expenses** | $95,802 | $71,605 | $190,591 | $141,175 | | **Other income (expense), net** | $618 | ($8,359) | ($8,693) | $21,003 | | **Net Income (Loss)** | **($1,973)** | **($9,816)** | **($14,998)** | **$17,203** | | **Net Income (Loss) Attributable to Common Shareholders** | ($2,972) | ($11,188) | ($16,910) | $13,071 | | **Diluted Net Income (Loss) per Common Share** | **($0.16)** | **($0.86)** | **($0.94)** | **$1.08** | - The six months ended June 30, 2024 included a significant one-time gain on extinguishment of debt of **$38.1 million**, which was not present in 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $12.8 million, a reversal from $1.6 million used in the prior year period, while net cash used in investing activities was $37.5 million, mainly for community acquisitions and capital expenditures, and net cash provided by financing activities was $19.3 million, driven by proceeds from a credit facility and notes payable, partially offset by repayments and dividends, resulting in an overall decrease of $5.4 million in cash, cash equivalents, and restricted cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $12,755 | ($1,624) | | Net cash used in investing activities | ($37,471) | ($42,715) | | Net cash provided by financing activities | $19,326 | $50,372 | | **Increase (decrease) in cash, cash equivalents, and restricted cash** | **($5,390)** | **$6,033** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial activities, covering business overview, recent acquisitions and investments, debt structure and modifications, revenue sources, and details on contingencies and subsequent events, with the company owning, managing, or investing in 96 senior housing communities as of June 30, 2025 - As of June 30, 2025, the Company owned, managed or invested in **96 senior housing communities** in 20 states with a capacity of approximately **10,150 residents**[25](index=25&type=chunk) - During Q2 2025, the Company recognized **$8.8 million** in gross Employee Retention Credits (ERC) as other income, related to the CARES Act[54](index=54&type=chunk) - On May 30, 2025, the Company acquired a senior living community in Florida for **$11.0 million**, and on June 1, 2025, acquired another in Georgia for **$11.0 million**[69](index=69&type=chunk)[70](index=70&type=chunk) - Subsequent to the quarter end, on August 7, 2025, the Company entered into a new senior secured term loan of **$137.0 million** with Ally Bank to refinance existing debt and finance a recent acquisition[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's operational and financial performance, highlighting a 29.6% increase in resident revenue for Q2 2025 compared to Q2 2024, driven by acquisitions and higher rental rates, covering recent acquisitions, investments in joint ventures, and significant financing activities, including a new $137.0 million term loan with Ally Bank subsequent to the quarter's end, with liquidity supported by cash from operations, its credit facility, and an ATM sales agreement [Significant Financial and Operational Highlights](index=30&type=section&id=Significant%20Financial%20and%20Operational%20Highlights) For Q2 2025, resident revenue grew **29.6%** year-over-year to **$81.8 million**, primarily due to increased average rent rates and the addition of 18 communities acquired in 2024 and 2025, while for the same-store portfolio, weighted average occupancy increased to **86.5%** from **86.1%**, and the average monthly rental rate rose by **4.4%** compared to Q2 2024, with the company also active with acquisitions and investments, including two community purchases in May and June 2025 Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Resident Revenue | $81.8 million | $63.1 million | +29.6% | | Same-Store Weighted Avg. Occupancy | 86.5% | 86.1% | +0.4 p.p. | | Same-Store Avg. Monthly Rental Rate | - | - | +4.4% | - The company acquired one community in Florida for **$11.0 million** in May 2025 and one in Georgia for **$11.0 million** in June 2025[135](index=135&type=chunk)[136](index=136&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Comparing Q2 2025 to Q2 2024, the **29.6%** increase in resident revenue was accompanied by a **33.5%** rise in operating expenses, largely due to the 18 newly acquired communities, with general and administrative expenses increasing by **$1.0 million**, and other income at **$9.1 million** in Q2 2025, boosted by **$8.8 million** in Employee Retention Credits (ERC), while for the six-month period, revenue grew **30.1%**, and operating expenses increased **32.0%**, noting the prior year's six-month results included a **$38.1 million** gain on debt extinguishment, which was absent in 2025 - For Q2 2025, resident revenue increased by **$18.7 million (29.6%)** YoY, primarily due to acquisitions and higher rent rates[149](index=149&type=chunk) - Operating expenses for Q2 2025 increased by **$15.4 million (33.5%)** YoY, with **$12.5 million** of the increase attributable to newly acquired communities[152](index=152&type=chunk) - Other income for Q2 2025 was **$9.1 million**, which included **$8.8 million** from ERC funds under the CARES Act[157](index=157&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$14.1 million** in unrestricted cash, with principal sources of liquidity including cash flows from operations, a secured Credit Facility, and an ATM sales agreement, and had **$75.0 million** outstanding on its credit facility with an additional **$32.9 million** available, while for the first six months of 2025, operating activities provided **$12.8 million** in cash, a significant improvement from the **$1.6 million** used in the same period of 2024 - Principal sources of liquidity are cash flows from operations, a secured Credit Facility, an ATM sales agreement, debt refinancings, and asset sales[168](index=168&type=chunk) - As of June 30, 2025, the Company had **$14.1 million** of unrestricted cash and **$32.9 million** of additional borrowing capacity under its Credit Facility[168](index=168&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $12,755 | ($1,624) | $14,379 | | Net cash used in investing activities | ($37,471) | ($42,715) | $5,244 | | Net cash provided by financing activities | $19,326 | $50,372 | ($31,046) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is marked as 'Not applicable' in the report - The company has indicated that this section is not applicable for this reporting period[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were ineffective as of June 30, 2025, due to a previously identified material weakness related to ineffective user access controls for certain financial systems, including the payroll system, which creates a lack of segregation of duties, with a remediation plan underway and testing expected to be completed in late 2025 - The CEO and CFO have concluded that the Company's disclosure controls and procedures are **ineffective** as of June 30, 2025[178](index=178&type=chunk) - A material weakness exists due to ineffective system user access controls for certain financial systems, particularly the payroll system, leading to a lack of segregation of duties[179](index=179&type=chunk) - A remediation plan has been implemented, including restricting user access, enhancing user access reviews, and retaining a third-party firm for validation; testing is anticipated to be completed in late 2025[181](index=181&type=chunk)[183](index=183&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in litigation and claims arising in the normal course of business, which management believes are comparable to others in the senior living industry, with most claims expected to be covered by insurance, and management does not believe they will have a material effect on the company's financial statements - The Company is subject to litigation and claims typical for the senior living and healthcare industries, most of which are believed to be covered by insurance and are not expected to have a material adverse effect[185](index=185&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the risk factors from the Annual Report on Form 10-K for the year ended December 31, 2024, have been reported[186](index=186&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a share repurchase program authorizing up to $10.0 million in common stock purchases, but no shares were repurchased under this program during the quarter ended June 30, 2025 Share Repurchases for Quarter Ended June 30, 2025 | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | April 1 – April 30, 2025 | — | — | $6,570,222 | | May 1 – May 31, 2025 | — | — | $6,570,222 | | June 1 – June 30, 2025 | — | — | $6,570,222 | [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the documents filed as part of the quarterly report, including corporate governance documents, certifications from the CEO and CFO, and financial data formatted in iXBRL

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Sonida Senior Living reported strong Q2 2025 results, with resident revenue increasing 29.7% and net loss significantly reduced to $1.6 million, driven by rent growth and new community integration - CEO Brandon Ribar highlighted strong community NOI growth driven by rent increases and successful integration of recent acquisitions, positioning the company for future growth[3](index=3&type=chunk) Q2 2025 Key Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Resident Revenue | $81.8 | $63.1 | +$18.7 (+29.7%) | | Net Loss (attributable to Sonida) | $1.6 | $9.8 | -$8.2 | | Adjusted EBITDA | $14.1 | $11.4 | +$2.7 (+23.7%) | | Cash Flow from Operations (YTD) | $12.8 | -$1.6 | +$14.4 | - The company expanded its portfolio by acquiring two senior housing communities in May and June 2025, located in Florida (64 units) and Georgia (88 units)[5](index=5&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) The company's Q2 2025 financial performance showed significant top-line growth to $93.5 million, driven by acquisitions and higher rent rates, with substantial 'Other income' narrowing the net loss and positive operating cash flow [Results of Operations](index=3&type=section&id=Results%20of%20Operations) Q2 2025 resident revenue increased 29.6% to $81.8 million due to new communities and higher rents, while operating expenses rose 33.5% to $61.4 million, with $9.1 million in 'Other income' significantly reducing net loss to $1.6 million - Resident revenue for Q2 2025 increased by **$18.7 million (29.6%)** year-over-year, primarily due to increased occupancy, higher average rent rates, and the addition of 18 operating communities acquired in 2024 and 2025[8](index=8&type=chunk) - Operating expenses for Q2 2025 rose by **$15.4 million (33.5%)** year-over-year, with **$12.5 million** attributable to newly acquired communities and **$2.9 million** from increased labor and other costs in the existing portfolio[9](index=9&type=chunk) - Other income for Q2 2025 was **$9.1 million**, which included **$8.8 million** from gross employee retention credits under the CARES Act, significantly impacting the bottom line[13](index=13&type=chunk) - The company reported a net loss attributable to Sonida shareholders of **$1.6 million** for Q2 2025, a substantial improvement from the **$9.8 million** loss in Q2 2024[14](index=14&type=chunk) [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Sonida held **$14.1 million** in cash and **$32.9 million** available on its credit facility, with year-to-date operating cash flow turning positive at **$12.8 million**, primarily sourced from operations, credit, and potential asset sales Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $12,755 | $(1,624) | $14,379 | | Net cash used in investing activities | $(37,471) | $(42,715) | $5,244 | | Net cash from financing activities | $19,326 | $50,372 | $(31,046) | - As of June 30, 2025, the Company had **$75.0 million** outstanding under its senior secured revolving credit facility, with an additional **$32.9 million** available for borrowing[15](index=15&type=chunk) - The company's principal sources of liquidity include cash flows from operations, its credit facility, and potential proceeds from equity offerings, debt refinancings, or asset sales[16](index=16&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show Q2 2025 total revenues increased 33.2%, with total assets at **$849.8 million** and liabilities at **$736.0 million** as of June 30, 2025, reflecting a positive shift in operating cash flow Condensed Consolidated Statement of Operations (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $93,525 | $70,207 | | Total expenses | $95,802 | $71,605 | | Net income (loss) | $(1,973) | $(9,816) | | Net income (loss) attributable to Sonida shareholders | $(1,563) | $(9,816) | | Diluted net loss per common share | $(0.16) | $(0.86) | Condensed Consolidated Balance Sheet Highlights | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $63,451 | $64,089 | | Property and equipment, net | $750,261 | $739,884 | | Total assets | $849,772 | $841,921 | | Total current liabilities | $74,583 | $75,615 | | Long-term debt, net | $660,163 | $635,904 | | Total liabilities | $736,006 | $712,312 | | Total Sonida shareholders' equity | $56,693 | $71,785 | [Operational Metrics & Non-GAAP Measures](index=1&type=section&id=Operational%20Metrics%20%26%20Non-GAAP%20Measures) Sonida's same-store portfolio showed steady Q2 2025 growth, with weighted average occupancy increasing 40 basis points to **86.5%** and RevPAR/RevPOR rising 5.0% and 4.4% respectively, supported by non-GAAP measures like NOI and Adjusted EBITDA for core performance insights Same-Store Portfolio Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Weighted Average Occupancy | 86.5% | 86.1% | +40 bps | | RevPAR (per unit) | $3,797 | - | +5.0% | | RevPOR (per unit) | $4,388 | - | +4.4% | | Community NOI (in millions) | $16.7 | $16.4 | +1.8% | | Community NOI Margin | 28.0% | 29.0% | -100 bps | Same-Store Portfolio Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | RevPAR (per unit) | $3,797 | - | +2.3% | | RevPOR (per unit) | $4,388 | - | +2.7% | | Community NOI (in millions) | $16.7 | - | +$0.6 | | Community NOI Margin | 28.0% | 27.5% | +50 bps | - The company uses non-GAAP measures like Net Operating Income (NOI) and Adjusted EBITDA to help investors understand core operational performance by excluding items related to financing, capital structure, and non-recurring events[37](index=37&type=chunk)[38](index=38&type=chunk) [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) The company provides detailed non-GAAP reconciliations, showing Q2 2025 Same-Store Community Net Operating Income at **$16.7 million** and Adjusted EBITDA at **$14.1 million**, both reconciled from the net loss by excluding various adjustments Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss | $(1,973) | $(9,816) | | Adjustments (Depreciation, Interest, etc.) | $16,066 | $21,166 | | **Adjusted EBITDA** | **$14,093** | **$11,350** | Same-Store Community NOI Reconciliation (Q2 2025) | Metric (in thousands) | Amount | | :--- | :--- | | Net loss | $(1,973) | | Adjustments (G&A, Interest, Depreciation, etc.) | $23,209 | | Consolidated community NOI | $21,236 | | Less: NOI for non same-store communities | $(4,516) | | **Same-store community NOI** | **$16,720** | [Business Updates & Outlook](index=2&type=section&id=Business%20Updates%20%26%20Outlook) Post-quarter, Sonida saw positive momentum with July same-store occupancy reaching **88.2%**, secured a new **$137.0 million** term loan for financial flexibility, and is expanding with a **$15.6 million** community acquisition in Texas - Same-store community occupancy for July 2025 reached **88.2%**, an increase of **60 basis points** from June, indicating positive operational momentum[6](index=6&type=chunk) - On August 7, 2025, the company entered into a new **$137.0 million** senior secured term loan with Ally Bank, with an initial draw of **$122.0 million**. The loan has a **36-month maturity** and a variable interest rate of **SOFR plus 2.65%**[6](index=6&type=chunk) - In July 2025, the company signed a purchase and sale agreement to acquire a community in Texas for **$15.6 million**, contingent upon customary closing conditions[6](index=6&type=chunk) [Appendix](index=4&type=section&id=Appendix) The appendix provides supplementary information, including investor conference call details, a corporate profile of Sonida Senior Living, and definitions for key operational metrics like RevPAR, RevPOR, and Same-Store Community Portfolio [Company Profile](index=5&type=section&id=Company%20Profile) Sonida Senior Living, based in Dallas, is a prominent owner, operator, and investor in senior housing, with a portfolio of **96 communities** across **20 states** and a capacity of approximately **10,150 residents** as of June 30, 2025 - As of June 30, 2025, Sonida owned, managed, or invested in **96 senior housing communities** across **20 states**, with an aggregate capacity of about **10,150 residents**[21](index=21&type=chunk) [Definitions](index=9&type=section&id=Definitions) This section defines key performance indicators such as RevPAR (Revenue Per Available Unit) and RevPOR (Revenue Per Occupied Unit), along with the 'Same-Store Community Portfolio' for consistent year-over-year comparisons - RevPAR is defined as resident revenue divided by the weighted average number of available units over the period[31](index=31&type=chunk) - RevPOR is defined as resident revenue divided by the weighted average number of occupied units over the period[32](index=32&type=chunk) - The Same-Store Community Portfolio consists of communities that have been consolidated and operational for the full year in both the current and prior comparison periods, excluding recent acquisitions and properties undergoing repositioning[33](index=33&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Sonida Senior Living will host a conference call on August 11, 2025, at 11:00 a.m. Eastern Time to discuss its Q2 2025 financial results, with a webcast and replay available - The conference call to discuss Q2 2025 financial results is scheduled for August 11, 2025, at 11:00 a.m. Eastern Time[19](index=19&type=chunk)

Financial Data and Key Metrics Changes - The company's same store portfolio NOI grew by 19.3% year over year, while the acquisition portfolio NOI increased by 31.3% sequentially from Q4 2024, resulting in a total portfolio NOI growth of 37.6% year over year [7][8] - The average renewal rate increased by 6.6%, impacting nearly 70% of the resident base, supported by high resident satisfaction [8] - Total company occupancy improved by 100 basis points year over year to 84.7%, with a 7% increase in lead volume across the same store portfolio [9][10] Business Line Data and Key Metrics Changes - The repositioning portfolio was introduced for assets undergoing significant renovations, with five assets identified for strategic repositioning to capture a higher rate private pay customer base [12][25] - Same store revenues increased by $16 million or 7.4%, with 65% of the increased revenues flowing through to NOI, resulting in a same store NOI margin of 27.6%, a 280 basis point increase from the previous year [13][17] - The acquisition communities delivered a 31.3% NOI growth with a 26.3% NOI margin, reflecting strong sequential growth [15] Market Data and Key Metrics Changes - The company continues to expand its level of care revenues with a year-over-year increase of $1.8 million or 13.6% on its same store portfolio, driven by the adoption of a new software system for tracking clinical staff resources [18] - The company is focused on reducing its Medicaid exposure, currently at 9% of total revenue, by repositioning communities to align with a private pay model [25][26] Company Strategy and Development Direction - The company aims to drive community performance through tailored operating plans and detailed execution, with a focus on operational discipline to improve occupancy and margins [6][7] - The strategic inorganic growth plan remains on track, with two new acquisitions expected to close in Q2, reflecting a focus on deploying capital accretively [7][30] - The company is committed to maintaining a disciplined approach to capital allocation, targeting high-quality assets at a discount to replacement cost [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $100 million of NOI based on 2024's pro forma NOI, with a successful annual rate increase campaign contributing to this growth [22][31] - The current investment landscape is characterized by liquidity-seeking sellers, providing a steady pipeline of attractive investment opportunities [26][30] Other Important Information - The company has invested in employee retention strategies, resulting in the lowest turnover percentage for a quarter since tracking began [10] - The total debt composition includes 61% fixed-rate debt, with a weighted average interest rate of 5.4% [21] Q&A Session Summary Question: Can you provide more details on the repositioning portfolio and timeline? - Management indicated that the repositioning portfolio represents an opportunity to invest in communities to align with a private pay model, with capital investments planned to enhance these assets [36][38] Question: Are there other assets that could be repositioned? - Management noted that the five identified assets are the most immediate opportunities, with no large-scale transitions expected in the near term [40] Question: Can you elaborate on the two acquisitions mentioned? - The acquisitions are in strong southern markets, consistent with previous purchases, and are expected to stabilize with low double-digit yields [42]

Financial Data and Key Metrics Changes - The company reported a same store portfolio NOI growth of 19.3% year over year and a total portfolio NOI growth of 37.6% year over year [7][8] - The annualized NOI for the acquisition portfolio implies a 9.1% yield on cost, excluding one unopened asset [8] - The average renewal rate increased by 6.6%, impacting nearly 70% of the resident base [8] - Total company occupancy improved to 84.7%, providing substantial margin and revenue upside [9] Business Line Data and Key Metrics Changes - Same store revenues increased by $16 million or 7.4%, with 65% of the increased revenues flowing through to NOI [13] - The acquisition portfolio achieved a 31.3% NOI growth with a 26.3% NOI margin, a 450 basis point increase from the previous quarter [15] - The company’s total labor costs decreased by 110 basis points as a percentage of revenue compared to the same quarter in 2024 [19] Market Data and Key Metrics Changes - The company continues to expand its level of care revenues with a year-over-year increase of $1.8 million or 13.6% on its same store portfolio [17] - The Medicaid percentage of total revenue is currently at 9%, with plans to reduce this through repositioning efforts [25] Company Strategy and Development Direction - The company is focused on repositioning five assets to align with a private pay model, reducing exposure to Medicaid [24][25] - The company plans to invest $4 million to $5 million across the repositioning communities to enhance their appeal to private pay individuals [25] - The company is pursuing acquisitions in high growth markets, targeting quality assets at a discount to replacement cost [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a target of $100 million in NOI based on stabilization and growth strategies [22] - The company is positioned to capitalize on investment opportunities in the current market environment, focusing on operational excellence and capital allocation [30] Other Important Information - The company has introduced a repositioning portfolio for assets undergoing significant renovations, which will be excluded from the same store results until fully executed [12] - The company’s total debt is comprised of 61% fixed rate debt, with a weighted average interest rate of 5.4% [21] Q&A Session Summary Question: Can you provide more details on the repositioning portfolio and timeline? - Management indicated that the repositioning portfolio is an opportunity to invest in communities to align with a private pay model, with capital investments planned to enhance these assets [35] Question: Are there other assets that could be repositioned? - Management stated that the five identified assets are the most immediate opportunities, with no large-scale transitions expected in the near term [38] Question: Can you elaborate on the two acquisitions mentioned? - Management confirmed that the two acquisitions are in strong southern markets and are expected to stabilize with low double-digit yields, consistent with previous acquisitions [40]

Group 1: Earnings Performance - Sonida Senior Living reported a quarterly loss of $0.77 per share, better than the Zacks Consensus Estimate of a loss of $0.95, but worse than a loss of $0.69 per share a year ago, indicating an earnings surprise of 18.95% [1] - The company posted revenues of $80.32 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.22%, compared to year-ago revenues of $67.44 million [2] - Over the last four quarters, Sonida Senior Living has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Sonida Senior Living shares have increased by about 7% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at -$0.63 for the coming quarter and -$2.98 for the current fiscal year [4][7] - The estimate revisions trend for Sonida Senior Living is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Medical Services industry, to which Sonida Senior Living belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Highlights - Q1'25 weighted average occupancy for the total portfolio was 84.7%[41], a decrease of 120 bps compared to Q1'24 due to the addition of Acquisition Communities at lower occupancy levels[41] - Same-Store Community NOI increased by $2.6 million, or 19.3% year-over-year[34] - Same-Store Community NOI Margin increased by 280 bps year-over-year, reaching 27.6% in Q1'25[34] - Acquisition Community NOI saw sequential growth of $1.0 million, or 31.3%[37] - Acquisition Community NOI Margin increased sequentially by 450 bps, reaching 26.3% in Q1'25[37] Portfolio Performance - The company's portfolio consists of 94 communities with 9,092 units across 20 states[11, 19] - The portfolio is diversified across acuity settings, with 47% of units in Assisted Living (AL), 37% in Independent Living (IL), and 16% in Memory Care (MC)[19] - The company acquired 20 communities in 2024, representing approximately 1,700 units[11, 77] - The company's weighted average interest rate on debt was 5.36% as of March 31, 2025[13, 59] Growth and Strategy - The company is focused on organic growth through operational improvements and disciplined inorganic growth through acquisitions, joint ventures, and third-party management contracts[13] - The company is targeting a near-term path to $100 million+ NOI with additional upside from continued rate, occupancy, and margin expansion[64] - The company's capital allocation strategy includes reinvesting in technology and systems, selective acquisitions/dispositions, and creative capital stack solutions[21, 67]