Summary of Sonida Senior Living (NYSE:SNDA) Conference Call Company Overview - **Company**: Sonida Senior Living (NYSE:SNDA) - **Industry**: Senior Living and Healthcare Real Estate Investment Trusts (REITs) Key Points from the Conference Call Merger Announcement - Sonida announced a definitive merger agreement with C and L Healthcare Properties Incorporated (CHP), a public non-traded senior housing REIT owning 69 senior housing communities [5][6] - The merger positions Sonida as a premier pure play senior living owner-operator in the public market, benefiting both Sonida and CHP shareholders [5] Transaction Details - The purchase price is set at $6.9 per share of CHP common stock, consisting of $2.32 in cash and $4.58 in newly issued Sonida stock [6] - The total transaction value is $1.8 billion, funded by $900 million in committed debt financing, $110 million in fresh common equity from existing shareholders, and $800 million in Sonida common stock issued to CHP shareholders [6][8] - The transaction is expected to close late in Q1 or early Q2 of 2026, subject to customary closing conditions [6] Financial Impact - The merger is projected to be 28% to 62% accretive to normalized Funds From Operations (FFO) per share, driven by $16 million to $20 million of initial run-rate General and Administrative (G&A) synergies [9] - The transaction will initially reduce Sonida's leverage by 1.25 turns, with a target of approximately six times leverage in the medium term [8][11] - Sonida's equity market capitalization will increase from $500 million to $1.4 billion, enhancing trading liquidity and access to capital [9][10] Portfolio Quality and Growth Potential - The CHP portfolio consists of high-quality assets in attractive markets, with significant capital investments exceeding $80 million over the past five years [8][33] - Both portfolios have occupancy rates in the mid to high 80s, with strong rate growth expected [20][21] - The merger will allow Sonida to leverage its operating platform for continued operational improvements and efficiencies [7][9] Strategic Rationale - The merger is seen as an opportunity to add high-quality real estate with long-term growth characteristics at a favorable price [25] - The transaction aligns with Sonida's strategy of regional densification, minimizing transition risks and creating synergy opportunities [9][10] - The integration of CHP's assets is expected to enhance the overall quality of Sonida's portfolio and improve resident care [14][33] Management and Integration Plans - Sonida plans to internalize a number of CHP communities in 2026 while maintaining relationships with existing managers to minimize disruption [21][22] - The management team has a proven track record of integrating assets and driving occupancy gains and margin improvements [12][13] Future Outlook - The management team is optimistic about the transaction's potential to deliver accretive growth for Sonida shareholders [15] - The call concluded with an invitation for further discussions during the upcoming earnings call [41] Additional Important Points - The merger provides investors with public market access to a senior living company with full operational control and no operating leases [10] - The transaction is expected to create a powerful and differentiated senior living platform, enhancing Sonida's competitive position in the market [15]