Sonida Senior Living Announces Third Quarter 2025 Results

Core Insights - Sonida Senior Living reported a significant increase in total portfolio community NOI by approximately 21% in Q3 2025, attributed to solid rent growth and strong performance in the acquisition portfolio [2] - The same-store portfolio achieved an occupancy rate of 87.7%, the highest level post-Covid, with spot occupancy reaching 89.0% by the end of October [2] - The company announced a strategic merger with CNL Healthcare Properties, Inc., valued at approximately $1.8 billion, expected to close in early 2026, marking a significant step in its inorganic growth strategy [4][2] Financial Performance - Resident revenue for Q3 2025 increased by $17.6 million, or 26.3%, compared to Q3 2024, reaching $84.6 million [5][6] - Adjusted EBITDA for Q3 2025 was $13.2 million, representing a year-over-year increase of $3.1 million, or 30.7% [5] - Net loss attributable to Sonida shareholders for Q3 2025 was $26.9 million, compared to a net loss of $13.8 million in Q3 2024 [5][13] Operational Metrics - Weighted average occupancy for the same-store portfolio increased by 90 basis points to 87.7% in Q3 2025 from 86.8% in Q2 2025 [5] - Revenue Per Available Unit (RevPAR) increased by 5.4% to $3,817 in Q3 2025 compared to Q3 2024 [5] - Community Net Operating Income for Q3 2025 was $16.1 million, a 2.5% increase from the previous year [5] Acquisition and Growth Strategy - In September 2025, the company acquired a senior housing community with 98 units in Texas, expanding its portfolio [5] - The merger with CNL Healthcare Properties will enhance Sonida's position as a leading owner-operator in the senior housing sector [4][2] Capital Structure and Liquidity - As of September 30, 2025, the company had $86.1 million in borrowings under its credit facility, with a weighted average interest rate of 6.9% [14] - The company has a borrowing capacity of up to $150.0 million under its credit facility, which is secured by its senior living communities [14] - Future liquidity will depend on operating performance and various financial factors, including cash flows from operations and proceeds from equity offerings [16]