Sonida Senior Living Posts 30% EBITDA Jump as Occupancy Accelerates
Same-store occupancy expanded 240 basis points year over year to 87.8%, driving a 30% surge in adjusted EBITDA as the CHP acquisition reshapes the portfolio.
Sonida Senior Living (SNDA), the senior-housing operator that completed its acquisition of Capital Senior Living earlier this year, reported second-quarter adjusted EBITDA of $50.0 million, up 30% from the prior-year period on a pro forma basis. The results underscored the company's thesis that scale and occupancy gains could offset the heavier debt load absorbed in the merger.
Same-store occupancy reached 87.8%, a 240-basis-point expansion from a year earlier and an acceleration from the 220-basis-point gain logged in the first quarter. Revenue per occupied room rose 4.9% to $5,372 on the same-store pro forma basis. Together, those two levers pushed same-store net operating income 16.9% higher year over year, also faster than the 14% pace in the prior quarter.
The top line reflected the enlarged footprint. Total revenues reached $207.6 million, up from $93.5 million a year earlier, with resident revenue climbing to $188.0 million from $81.8 million. Same-store SHOP resident revenue on a pro forma basis was $158.1 million, compared with $146.4 million in the year-ago quarter.
Margin expansion accompanied the revenue growth. Same-store NOI margin widened 250 basis points year over year, accelerating from 170 basis points in the first quarter. The pro forma SHOP NOI margin reached 32.6%, up from 30.1% a year ago and 31.2% sequentially.
The CHP merger, however, weighed on the bottom line. Net loss attributable to common shareholders widened to $24.5 million, or $0.52 a share, from $2.97 million, or $0.16 a share, a year ago. Interest expense more than doubled to $22.5 million as acquisition-related borrowings pushed long-term debt to $1.555 billion from $682.5 million at year-end 2023. Transaction, transition and restructuring costs totaled $4.8 million for the quarter and $30.9 million for the first half, compared with $0.5 million and $1.1 million respectively a year earlier. Depreciation and amortization rose to $43.2 million from $13.6 million, reflecting the acquired assets.
Normalized funds from operations came to $23.7 million, or $0.48 a share. Net cash used in operating activities was $27.2 million for the first half, a $39.9 million swing from the $12.8 million of cash generated a year earlier.
Sonida moved to shore up its capital structure during the quarter, closing a $380 million term loan with Ally Financial at SOFR plus 185 basis points, with a five-year maturity and two one-year extension options. The proceeds retired a prior $122 million Ally term loan, $170 million in bridge debt and $70 million drawn on the revolver. The company also launched an at-the-market equity program in May, selling roughly 672,000 shares at an average price of $41.05 for $27.3 million in net proceeds.
The portfolio stood at 164 communities with more than 16,500 units as of June 30, a slight shift from 165 communities and 16,400 units reported a month earlier. Weighted average shares outstanding rose to 46.8 million from 18.1 million a year ago, reflecting stock issued for the CHP deal and the ATM program.