Sonida Senior Living Reports 19.2% Revenue Growth to $304.3 Million for Fiscal Year 2024

Sonida Senior Living, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total revenues reaching approximately $304.3 million, up from $255.3 million in the previous year. This 19.2% increase was primarily driven by a rise in resident revenue, which grew by 15.4% to $267.8 million, attributed to higher occupancy rates and increased average rent. The company’s weighted average occupancy improved to 86.4% from 84.6% in 2023, reflecting ongoing demand for its senior living services.

In terms of profitability, Sonida experienced a net loss of $3.3 million for 2024, a notable improvement compared to a net loss of $21.1 million in 2023. The reduction in losses was aided by a gain on extinguishment of debt amounting to $48.5 million, resulting from strategic debt management actions, including the purchase of outstanding loans at a discount. Operating expenses also increased, primarily due to higher labor costs, which rose by $15.7 million, reflecting the competitive labor market and increased staffing needs as occupancy levels grew.

Strategically, Sonida expanded its portfolio by acquiring 20 new communities in 2024, including significant acquisitions in Cincinnati, Atlanta, and Florida, totaling approximately $149 million. These acquisitions were financed through a combination of debt and equity, including a $124.1 million public offering and a $47.8 million private placement. The company also entered into a senior secured revolving credit facility with a borrowing capacity of $150 million, enhancing its financial flexibility for future growth initiatives.

Operationally, Sonida managed 13 communities on behalf of third parties, up from 10 in the previous year, indicating a growing management services segment. The company employed 5,063 individuals as of December 31, 2024, with a focus on enhancing employee engagement and retention amid ongoing labor market challenges. The company’s strategic priorities include improving resident satisfaction and operational efficiency, which are critical as it navigates a competitive landscape characterized by rising labor costs and regulatory pressures.

Looking ahead, Sonida anticipates continued revenue growth driven by its expansion strategy and improving occupancy rates. However, the company remains cautious about potential economic headwinds, including inflationary pressures and labor shortages, which could impact its operational costs and overall financial performance. The management is committed to addressing these challenges while focusing on enhancing the quality of care and services provided to its residents.