Sonida Senior Living, Inc. Q3 FY2025 earnings call

• Merger Announcement: Signed a $1.8B merger agreement to acquire CNL Healthcare Properties, closing in late Q1 2026. The transaction is accretive to AFFO, reduces leverage, and increases free float. - Q3 Results: Total portfolio NOI grew 21% YOY, adjusted EBITDA up over 30%. Focus on clinical care, NOI flow-through, and managing outlier communities. - Labor Management: Progress made in labor management after regional restructuring, with labor metrics steady in Q4. Technology improved labor visibility to address margin issues. - Acquisition Strategy: Acquired 23 assets in 18 months; CHP acquisition to enhance portfolio, with free cash flow for reinvestment in internal projects and bolt-on acquisitions.

Same-Store Performance: Q3 2025 same-store occupancy was 87.7%, the highest post-COVID quarter, up from 86.8% in Q2. October 2025 saw a record high same-store occupancy of 88%. RevPAR year-over-year increased by 4.7%. Same-store NOI growth was impacted by outlier communities, but 50% of communities grew YTD NOI by 10% or more. Acquisition Portfolio Performance: 2024 acquisitions showed strong growth, with occupancy increasing from 76.3% to 83.7% over 12 months and resident rates up 4.2%. Acquisition portfolio NOI increased by $900,000 or 22% sequentially, excluding recent acquisitions.

• Merger closing in late Q1 2026 to accelerate growth and deliver value. - Focus on maintaining high occupancy and improving margins through labor management and rate growth. - Transaction costs of $75M, with $6M incurred in Q3, expected to continue in future quarters as part of merger preparation.

• Factors affecting actual results differ from forward-looking statements, detailed in SEC filings. - Transaction-related risks, including compliance with SEC filings for the proposed merger. - Labor volatility and community performance outliers as risks to margin and growth.

Q: About same-store occupancy trend and move-in/out trends A: Accelerated same-store occupancy improvement up to 89% in Q4, driven by reduced move-outs through deaths and increased internal move-ins from non-paid referral sources Q: About merger-related expenses A: Total transaction cost is $75M, with $6M incurred in Q3, and these costs are expected to continue in the next few quarters as part of the merger preparation Q: About RevPOR vs ex POR and labor trends in acquired portfolio A: Focus on rate expansion to improve margins, and the acquired portfolio has minimal contract labor, with work ongoing to address premium labor issues and improve labor efficiency