Sonida Senior Living Q1 2025 presentation: NOI surges 37.6%, occupancy continues to climb

Introduction & Market Context

Sonida Senior Living Inc (NYSE:SNDA) released its first quarter 2025 investor presentation on May 12, 2025, highlighting strong financial performance across its portfolio of senior living communities. The company, which positions itself as a pure-play senior living owner, operator, and investor, continues to benefit from favorable demographic trends and limited new supply in the senior housing market.

The presentation comes after a strong Q4 2024, where the company beat earnings expectations. Sonida’s stock closed at $24.70 on May 9, 2025, well above its 52-week low of $19.34, though still below its 52-week high of $33.50.

As shown in the following overview of Sonida’s business model and key metrics:

Quarterly Performance Highlights

Sonida reported impressive growth in Q1 2025, with total portfolio community NOI increasing by 37.6% year-over-year to $20.5 million, while community NOI margin expanded by 120 basis points to 25.7%. Same-store communities showed particularly strong performance, with NOI growing 19.3% year-over-year and NOI margin improving by 280 basis points to 27.6%.

The company’s key Q1 2025 highlights demonstrate strength across multiple operational metrics:

Occupancy in same-store communities reached 86.8% in Q1 2025, representing a 100 basis point improvement over Q1 2024 and continuing the steady recovery from pandemic lows. The following chart illustrates this consistent occupancy growth trajectory:

Revenue per occupied room (RevPOR) for same-store communities increased to $4,274 in Q1 2025, up from $4,050 in Q1 2024, driven by a 6.9% average rent increase implemented on March 1, 2025. This pricing power is illustrated in the following revenue highlights:

Detailed Financial Analysis

Sonida’s financial performance shows strength across all segments of its portfolio. Same-store communities, which represent the core of the business with 56 communities and 5,349 units, delivered $16.1 million in NOI during Q1 2025, compared to $13.5 million in Q1 2024.

The detailed financial comparison for same-store communities shows improvements across all key metrics:

Acquisition communities, comprising 20 properties with 1,710 owned units, also showed significant sequential improvement, with NOI increasing 31.3% from Q4 2024 to Q1 2025 and NOI margin expanding by 450 basis points to 26.3%:

The total portfolio performance reflects both organic growth in same-store communities and the positive contribution from acquisitions:

A key driver of Sonida’s margin improvement has been its ability to grow revenue faster than operating expenses. Labor costs as a percentage of revenue have declined, with direct labor decreasing by 0.8% and other labor decreasing by 0.3% in Q1 2025 compared to Q1 2024:

Strategic Initiatives

Sonida’s strategic positioning as an integrated owner, operator, and investor provides competitive advantages in the senior living market. This model allows the company to capitalize on external growth opportunities and leverage synergies with increased scale:

The company is actively pursuing growth through acquisitions in a dislocated market, leveraging its operational expertise and financing capabilities. In 2024, Sonida acquired 20 communities representing approximately 1,700 units, with eight acquired through joint ventures:

These acquisitions are already showing positive results. For example, the Stone Joint Venture portfolio acquired in May 2024 has seen NOI grow from $1.5 million at closing (annualized) to $6.2 million (Q1 2025 annualized), representing a 9.7% in-place yield-on-cost:

Forward-Looking Statements

Sonida presented a compelling investment thesis centered on its growth profile outpacing peers, driven by continued same-store community growth, value-add acquired communities, continued inorganic growth strategy, and its unique owner/operator platform:

The company outlined a near-term path to achieving over $100 million in NOI, building on its approximately $65 million 2024 same-store community NOI and approximately $13 million 2024 pro forma acquisition community NOI:

Sonida is well-positioned to benefit from favorable demographic trends in the senior housing market. The 80+ population is expected to grow significantly in the coming years, while new supply remains limited. According to the presentation, more than 560,000 new units will be needed to meet demand by 2030, but only 191,000 are projected to be added at current development rates:

With its strategic positioning, improving operational performance, and favorable market dynamics, Sonida Senior Living appears well-positioned to continue its growth trajectory and deliver value to shareholders in the coming years.

Full presentation:

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