Sonida Senior Living, Inc. Q4 FY2025 earnings call

• Completion of acquisition of CNL Healthcare Properties, Inc. for $1.8 billion, with over 95% of votes supporting the transaction. - Transaction enhances competitive positioning, accelerates growth, and expected to deliver earnings accretion. - Fourth quarter performance showed progress and momentum, with growth in same store and acquisition portfolios. - Operating team focuses on excellent clinical care and services, and developing a labor model. - Post-transaction integration work with CHP portfolio, with focus on minimizing operational disruption. - Strategy to upgrade portfolio to higher quality and younger community composition, pruning ~10% of portfolio based on community count. - Agreement with Conversant Capital for early conversion of Series A convertible preferred stock into common equity, simplifying capital structure and reducing cost of capital.

For the total portfolio at share in Q4, REVPOR increased 5.9% year-over-year and 8.8% annually. Adjusted EBITDA grew 28% annually. Same store portfolio had sequential occupancy gains in Q4. Acquisition portfolio had 680 basis point occupancy jump annually, community NOI margin expanded 550 basis points. Total portfolio NOI at share grew 22% year-over-year. In 2026, targeting revenue per occupied room growth at or above 2025 same store growth. New reporting portfolios will be same store, non-same store, and triple net lease. Same store occupancy gained 20 basis points sequentially in Q4. Same store rate renewal rate in March 1 was 7.9% for 96% of residents. Level-of-care revenues in 2025 increased 11.4% year-over-year. Total labor excluding benefits decreased as a percentage of revenue in Q4. Absolute operating costs decreased slightly from Q3 2025 to Q4 2025.

• Targeting revenue per occupied room growth in 2026 at or above 2025 same store growth. - In Q2, will introduce additional reporting metrics such as normalized FFO consistent with real estate peers. - Initial guidance for G&A synergy range $16 million to $20 million per year-one run-rate, with further synergies identified tied to internalizing management of 54 SHOP assets and operational benefits for CHP communities. - Goal to make normalized FFO calculations comparable with REIT side large-scale reporters. - Plan to make progress on pruning 10% of portfolio within six to twelve months, with proceeds from dispositions going to delever and recycle into higher-growth assets.

Q: Congrats on closing the merger. Wondering about normalized FFO guidance, adjusted EBITDA, interest cost assumptions post merger.

A: Will get information out as Q1 is released, goal is to make comparable with REIT side large-scale reporters.

Q: On the 10% of the portfolio to be pruned, speed, sources and uses.

A: Expect progress in six to twelve months, proceeds first go to delever, then recycle into higher-growth, newer-vintage assets in strong growth markets.

Q: On same store NOI pro forma, comps and delta.

A: Think of it as a jumping-off point from 2025 for the redefined bucket of assets, more insight on normalized FFO metrics to come.

Q: On new same store pool rate increase, legacy or current pool.

A: For the legacy pool pushed through last week, March 1.

Q: On labor model completion, will it be done this year.

A: Not fully complete, always working on it, confident trends from Q4 continue in early 2026, heavy focus this year.

Q: On long-term plan with net lease assets and dispositions this year.

A: No immediate plans, will thoughtfully consider market and opportunity to sell and recycle capital.