Sonida Senior Living, Inc.

What they do

Sonida provides residential housing and services to adults aged 75 and older, including independent living, assisted living and memory care. Many communities offer a continuum of care that integrates these levels, which may be bridged by home care through independent home care agencies. As of June 30, 2026, the company owned, managed or was invested in 164 senior housing communities with over 16,500 total units across 35 states.

Revenue drivers

• Owned senior housing communities (SHOP) — Resident revenue comes from monthly fees at communities Sonida owns and operates; 152 owned communities as of June 30, 2026, including three owned through a consolidated joint venture. This is the largest revenue contributor, with Q2 2026 resident revenue of $188.0 million.
• Managed communities — Sonida manages 12 communities for a third party and, after the CHP merger, 48 owned communities are managed by third-party property managers. Management arrangements generate fee income rather than full resident revenue.
• Triple-net leased communities — Fifteen CHP communities are leased to third-party tenants under triple-net operating leases, with 13 leased to one tenant under leases expiring May 2030; tenants pay property taxes, insurance, utilities and structural repairs.
• Joint venture investments — Sonida holds four owned communities through an unconsolidated joint venture and three through a consolidated joint venture, which contribute investment returns and, for consolidated entities, resident revenue.

Recent performance

Q2 2026 resident revenue was $188.0 million, up 129.7% from $81.8 million in Q2 2025, primarily due to 54 SHOP properties acquired in the CHP Merger plus three 2025 acquisitions, higher average rent rates and higher occupancy. Net loss attributable to common shareholders was $24.5 million, or $(0.52) per share, while Normalized FFO was $23.7 million, or $0.48 per share. Adjusted EBITDA was $50.0 million, up 30.0% over Q2 2025 pro forma, and Same-Store NOI rose 16.9% to $51.5 million. Same-store weighted average occupancy was 87.8%, up 240 basis points, with RevPOR of $5,372, up 4.9%.

Strategy

Management is focused on integrating Sonida and CHP to capture synergies, cost savings and growth opportunities, and on improving operations in the portfolio. The company expects to evaluate dispositions in low-growth, non-strategic markets while concentrating on assets with strong growth characteristics and sustainable earnings. It is pursuing a disciplined acquisition pipeline funded by an increasingly flexible balance sheet, with benefits cited from SPIN's density and data advantages. Financing actions include a May 2026 ATM program of up to $250 million and an August 2026 Ally term loan of up to $380 million.

Risks

• Integration of CHP Merger — Sonida may be unsuccessful in integrating CHP's 69 communities, third-party managers and tenants, or in realizing the anticipated benefits of the acquisition.
• Significant indebtedness — The company carries significant debt, including $1.56 billion of long-term debt at June 30, 2026, and failure to generate sufficient cash flow could result in defaults.
• Debt covenants and refinancing — Non-compliance with financial covenants could accelerate debt, and the company must extend or refinance maturing debt, including the Bridge Loan Facility, on acceptable terms or at all.
• Interest rate and labor cost pressure — Elevated market interest rates could increase the cost of variable-rate debt, while competition for skilled workers and wage pressures, including minimum wage and overtime law changes, could raise operating costs.

Outlook

Management expects 2026 results to be materially impacted by the CHP Merger and the addition of 69 senior housing communities. CEO Brandon Ribar said the primary objective is driving sustained strong NOI growth in the existing portfolio, paired with disciplined pipeline development funded by a flexible balance sheet and a return-driven capital allocation framework. The company cites confidence in delivering durable long-term shareholder value based on the operating platform and SPIN's density and data advantages.