Sonida Seeks Growth in 2024 With New Slate of Acquisitions Underway
Sonida Senior Living (NYSE: SNDA) is riding a wave of momentum as it focuses on growth heading into the remainder of the year, CEO Brandon Ribar announced during a first quarter earnings call on Friday.
Looking ahead to the second quarter, Ribar shared that the Dallas-based real estate investment trust (REIT) is actively pursuing new assets to fuel its growth strategy for the year.
With a clear vision for further growth opportunities, Sonida is set to complete four transactions by June, including the acquisition of a 100-unit assisted living and memory care community in Ohio. This will bring the company’s senior living portfolio to 72 communities, with additional upgrades planned across the entire portfolio.
In addition to these transactions, Sonida is seeking to acquire eight more communities totaling 750 units with joint-venture partners. The company is also expanding its management footprint through new management agreements set to take place in the coming months.
Driven by the success of recent equity offerings totaling $10.3 million in April, Sonida is well-positioned to execute its acquisition strategy. Ribar highlighted that the company has raised nearly $60 million in equity capital in the last three months, with a focus on transactions expected to close in the next 90 days.
As Sonida continues to grow and expand its portfolio, it remains committed to operational excellence and enhancing resident programming. The company’s dedicated operational team is focused on seamlessly integrating new communities to drive further growth and success in the senior living sector.
Looking ahead, Sonida expects future growth to be fueled by strategic capital investments and programming enhancements across its senior living portfolio, with updates planned for the second half of 2024.
Occupancy, Revenue Progress
Sonida’s recent operational progress was also a highlight during the earnings call, with Ribar expressing confidence in the organization’s ability to drive occupancy rate and margin improvements throughout the year.
Notable achievements include a 750-basis point increase in occupancy for Sonida’s Magnolia Trails memory care programming in the first quarter, reaching nearly 88% across all memory care units. Revenue for Sonida Senior Living has seen a 2.4% increase from the last quarter and a 7.3% increase compared to the same time last year, signaling expanding margins and profitability.
With a strong focus on expense control and revenue optimization, Sonida is on track to achieve sustainable growth and stability in the senior living market. The appointment of Max Levy as Chief Investment Officer and Lilly Donohue to the board of trustees further underlines the company’s commitment to strategic growth and innovation.
As the senior living industry experiences a return to historic seasonality, Sonida anticipates continued margin stabilization and positive growth trends in the coming months. By focusing on operational excellence, strategic acquisitions, and resident-focused care initiatives, Sonida is poised for a successful year of expansion and progress in 2024.
