Sonida Senior Living continues its upward occupancy march and announced some positive operations news in its latest earnings report, but its growth was curbed somewhat in the second quarter, at least on a year-over-year basis. First, with the good news, Sonida reported the July end of period spot occupancy for the same-store communities was 88.2%, which is a record high and increased 60 basis points versus June. However, weighted average occupancy for Sonida’s same-store portfolio only increased 40 basis points to 86.5% in the second quarter of 2025 from 86.1% in Q2:24.
In the earnings call, President and CEO Brandon Ribar commented that they had seen an “unusually high uptick in resident deaths with resident move-outs exceeding Q2:24 by 18% in [the] same-door portfolio,” which limited the year-over-year occupancy growth. But the acceleration in census growth in June and July is a positive sign heading into the rest of the summer and fall selling months. Ribar also noted the increase in Sonida’s average length of stay so far in 2025. So, things are looking good.
The company still reported a net loss attributable to Sonida shareholders for Q2:25 of $1.6 million, down from a net loss of $9.8 million in Q2:24. CFO Kevin Detz attributed the increase in move-outs, as well as new investments in technology to improve the quality of operations and resident programming as well as a change to Sonida’s operating and sales support overhead structure from three divisions to two, as some reasons for the net loss. However, the investments should support future growth.
Resident revenue jumped by $18.7 million, or 29.7%, compared Q2:25 to Q2:24, and Sonida saw its Q2:25 Adjusted EBITDA reach $14.1 million, as compared to $11.4 million in Q2:24, or a 23.7% increase year over year. Cash flows from operations totaled $12.8 million for the six months ended June 30, 2025, which increased by $14.4 million year over year. The company also recorded a 5.0% increase in its RevPAR to $3,797 and a 4.4% increase in its RevPOR to $4,388, over the year-ago quarter. Sequentially, RevPAR and RevPOR increased by 2.3% and 2.7%, respectively.
Sonida made a few M&A moves, too. In May 2025, it acquired one 64-unit memory care community in Tarpon Springs, Florida, for $11 million, or $171,900 per unit (see the LevinPro LTC deal here). Then in June 2025, bought an 88-unit assisted living/memory care community in Alpharetta, Georgia. It also sold for $11 million, or $125,000 per unit (see the deal here).
Subsequent to the quarter’s close, Sonida made a couple of other transactions. On the debt side, it entered into a senior secured term loan of $137.0 million with Ally Bank which allows for an initial term loan advance on the closing date of $122.0 million on 19 communities. Two additional draws of $7.5 million each will become available subject to achieving certain debt yields and debt service coverage ratios. The loan has a 36-month maturity date (with two one-year extensions) and a variable interest rate of one-month SOFR plus a 2.65% margin (subject to a performance-based stepdown to a 2.45% margin).
Lastly, Sonida signed a purchase and sale agreement for a community located in Texas with a purchase price of $15.6 million. The acquisition is contingent upon customary closing conditions.
Sonida’s share price has risen by nearly 5% in the two days following earnings release.
