Sonida Senior Living, listed on NYSE as SNDA, has made significant strides recently to improve its financial standing. These efforts have resulted in margin enhancements and positioned the company for a stronger year in 2024 and beyond.
One key move was securing a $50 million equity private placement from Conversant Capital, paving the way for future growth opportunities. CEO Brandon Ribar highlighted the company’s progress in 2023 as the “strongest year over year performance improvement in recent history,” leaving behind any going-concern concerns in financials.
With a focus on underperforming assets and strategic sales approaches, Sonida aims to boost occupancy rates and drive portfolio-wide occupancy to over 90%. Looking ahead to 2024, the company anticipates a significant pipeline of opportunities, including with current partners.
Driving revenue growth
A revamped revenue management process saw Sonida achieve an 8.3% growth in resident rates and capture $1.9 million in additional care revenue through the simplification of its assisted living program. Expansion of tech-based clinical labor productivity pilots in 2023 sets the stage for capturing true clinical costs in 2024.
Operational improvements and balance sheet strengthening have positioned Sonida as a differentiated player in senior living, poised to capitalize on market opportunities. Revenue per available room and revenue per occupied room both saw significant increases, contributing to an 11.2% rise in resident revenue for 2023.
Staffing progress
Shifting focus to cultural changes, Sonida achieved 100% retention of regional operations and sales leaders in 2023, with a 10% increase in community leader retention. Innovative programs for part-time staff have been successful, reducing turnover and labor costs while enhancing efficiency.
By investing in local leadership talent and implementing targeted staffing strategies, Sonida is building a strong foundation for sustained success in the senior living industry.
