Sonida Senior Living Reports $13M Net Loss Despite 36.4% Revenue Increase in Latest Quarter

Sonida Senior Living, Inc. reported significant financial changes in its latest quarterly filing, revealing a net loss of $13.0 million for the three months ending March 31, 2025, compared to a net income of $27.0 million during the same period in 2024. The company's total revenues increased by 36.4% to $91.9 million, driven primarily by a 30.6% rise in resident revenue, which reached $79.3 million, up from $60.7 million a year earlier. This growth was attributed to higher occupancy rates and increased average rent, alongside the addition of 16 new operating communities in 2024.

In terms of expenses, Sonida's total operating costs rose to $94.8 million, a 36.2% increase from $69.6 million in the previous year. The rise in expenses was largely due to the operational costs associated with the newly acquired communities, which accounted for $11.5 million of the increase. General and administrative expenses also grew, reflecting higher labor costs and stock-based compensation. The company reported a significant increase in managed community reimbursement revenue, which surged by 90.2% to $11.6 million, reflecting the management of more communities compared to the prior year.

Operationally, Sonida managed 13 communities on behalf of third parties during the quarter, an increase from 10 in the previous year. The company also reported a weighted average occupancy rate of 86.8% for its owned communities, up from 85.8% in the prior year. The average monthly rental rate for these communities increased by 5.5%, indicating a positive trend in pricing power. As of March 31, 2025, Sonida owned, managed, or invested in 94 senior housing communities across 20 states, with a total capacity of approximately 10,000 residents.

The company has also made strategic moves to enhance its operational footprint, including entering into joint ventures for the acquisition of additional communities. In July 2024, Sonida partnered with affiliates of Palatine Capital Partners to acquire four senior living communities, and in May 2024, it entered into a joint venture to manage four communities in the Midwest. These acquisitions are expected to contribute positively to future revenue streams.

Looking ahead, Sonida's management expressed cautious optimism regarding its financial outlook, emphasizing the importance of maintaining liquidity and operational performance amid prevailing economic conditions. The company has access to a senior secured revolving credit facility with a borrowing capacity of up to $150 million, of which $60 million was drawn as of March 31, 2025. However, the company also noted potential risks related to market conditions, labor costs, and regulatory changes that could impact its financial performance in the future.