Sonida Senior Living, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Sonida Senior Living reported strong second quarter 2026 results on a same store basis, with weighted average occupancy increasing 240 basis points year over year to 87.8%.
- Same store NOI grew 16.9% year over year, with NOI margin expanding 250 basis points to 32.6%.
- Normalized FFO per share was $0.48, and adjusted EBITDA was $50 million for the quarter.
- Total portfolio occupancy increased sequentially by 40 basis points in July versus June 2026.
- The company completed the acquisition of CNL Healthcare Properties, Inc. (CHP) on March 11, 2026, and integration remains on track with 14 CHP communities transitioned as of July 1.
- The Stone joint venture portfolio NOI grew 5.6 times since 2024, with a recent cash out refinancing returning invested capital and providing long-duration mortgage debt.
- The 2024 acquisition cohort yields approximately 11.5% relative to cost basis, and the 2025 cohort shows strong momentum with occupancy at 70.4% as of June 2026.
- The company is under contract to acquire approximately $88 million of assets expected to generate mid-teens unlevered IRR and accretion to normalized FFO and NAV per share on a stabilized basis.
- Same store revenue per occupied room grew 4.9% year over year, supported by digital marketing and higher conversion rates.
- Labor costs declined 130 basis points as a percentage of revenue to 40.4%, driven by improved labor efficiency through the proprietary SPIN platform.
- Total Shop NOI grew 17.5% year over year, with total portfolio weighted average occupancy at 86.6%.
- The company issued approximately 672,000 shares under its ATM program at an average price of $41.05, raising net proceeds of $27.3 million.
- Sonida’s balance sheet includes two term loans totaling $575 million priced at SOFR plus 195 basis points, with step downs as leverage reduces.
- On August 7, 2026, the company completed a $380 million five-year term loan with Allied Bank, used to repay bridge and existing term loans and increase revolving credit availability.
- Approximately 80.6% of total debt is fixed rate or floating hedge, with 97% maturing in 2029 or later and 43% in 2031 or later.
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Transcript
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I will now hand the conference over to Megan Caldwell, VP of Investor Relations. Megan, please go ahead. Thank you, operator.
All statements made today, August 10, 2026, which are not historical facts, are forward-looking statements within the meaning of Federal Securities laws. The company expressly disclaims any obligation to update these statements in the future, except as required by law. Actual results or performance may differ materially from forward-looking statements. Certain factors that could cause actual results to differ are detailed in the earnings release that the company issued earlier today, as well as in the reports that the company files with the SEC, including the risk factors contained in the annual report on Form 10-K and quarterly reports on Form 10-Q. Please see today's press release for the full safe harbor on forward-looking statements, which may be found in the Form 8-K filing from this morning or at the company's investor relations page found at investors.sonidaseniorliving.com.
As previously disclosed, the company completed its acquisition of CNL Healthcare Properties Inc., or CHP, on March 11, 2026. Unless otherwise specifically noted or the context otherwise requires, the financial and operating results we are discussing today, and that are included in our earnings release and presentation, represent the combined company on a pro forma basis for any period presented in which we did not own CHP for the full period, including CHP as if the acquisition had closed on the first day of the period. We believe this pro forma information provides a meaningful method of comparing the performance of the combined business over historical periods.
This pro forma information giving effect to the CHP acquisition has not been prepared in compliance with Article 11 of Regulation S-X and does not reflect the actual results we would have achieved had the CHP acquisition occurred on the first day of the applicable period and may not be predictive of future results. Please note that our GAAP financials reflect CHP's results from the closing date only, and our second quarter 2026 financials reflect CHP for the full period without any adjustment. See the disclaimer slide in our presentation for additional information about the preparation of, and the limitations associated with, this pro forma financial information. Please also note that during this call, the company will present non-GAAP financial measures. For reconciliations of these non-GAAP measures to the most comparable GAAP measure, please see today's earnings release and presentation.
If you'd like to follow along during today's call, you can find Sonida's second quarter 2026 earnings presentation in the investor relations section of the company's website. In addition, we have included supplemental earnings information within our presentation consistent with prior quarter releases. I would now like to turn the call over to Sonida President and CEO, Brandon Ribar.
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