Sonida Senior Living (NYSE:SNDA) reported first-quarter 2026 results that management said reflected continued growth in occupancy, resident rates and margins following the company’s acquisition of CNL Healthcare Properties, Inc. in March.
On the earnings call, Vice President of Investor Relations Megan Caldwell said the company’s discussion of results was largely based on pro forma metrics that include CHP for the full quarter. She noted that Sonida’s GAAP financials reflect CHP’s results only from the March 11 closing date, while the pro forma figures are preliminary and based on the midpoint of ranges provided in the company’s earnings release.
“Today, we are shifting from building that foundation to now leveraging it to compound value for our shareholders,” Ribar said.
Same-store portfolio drives growth
Ribar said Sonida’s same-store communities delivered year-over-year growth, supported by higher occupancy, pricing gains and margin improvement. Same-store weighted average occupancy increased 220 basis points from a year earlier to 87.2%. Resident revenue rose 7.6%, while revenue per occupied room, or RevPOR, increased 5%.
Same-store community net operating income rose 14% year over year to $48 million, and NOI margin expanded 170 basis points to 31.2%, according to management.
Chief Financial Officer Kevin Detz said more than half of same-store revenue growth flowed through to NOI during the period. He attributed the margin improvement to labor management, control of non-labor costs and operating leverage as occupancy increased across a maturing portfolio.
For the total senior housing operating portfolio, Detz said SHOP NOI increased 11.3%. Weighted average occupancy rose 100 basis points year over year to 85.7%, while total SHOP RevPOR increased 4.9%. Resident revenue increased 8.5% year over year, and community NOI reached $51.3 million. Total SHOP NOI margin expanded 70 basis points despite near-term dilution from newly acquired and transitioning communities.
Detz also said the share of communities with occupancy above 90% increased from 39% to 52%, while the percentage of communities below 80% occupancy declined from 28% to 20%.
CHP integration underway
Ribar said Sonida has begun integrating communities acquired through the CHP transaction. The company completed its first operational transition after the acquisition last week, bringing six communities from two third-party operators onto the Sonida platform. Ribar said the company expects to transition an additional 11 communities from four third-party operators this summer while maintaining strategic growth partnerships with selected existing managers.
Ribar said the CHP deal gave Sonida not only additional assets but also a network of third-party manager relationships that preserve operational continuity and may generate future investment opportunities. He pointed to a recent preferred equity investment in a high-end full continuum community in Texas that came through one of those manager relationships.
During the question-and-answer session, Ribar said Sonida still expects to internalize the “significant majority” of the 54 SHOP communities acquired from CHP over the long term, while retaining a smaller number of strategic third-party manager relationships.
Detz said Sonida is currently paying third-party operators about 5% of revenues in management fees. As communities are internalized, he said those costs should decline “significantly.”
New reporting structure and capital allocation framework
Detz said Sonida is now reporting results across three portfolio groupings: same-store, non-same store and triple-net lease. He said the structure is intended to show differences in asset maturity and provide transparency into stabilization and capital allocation decisions.
The non-same-store group includes recently acquired and stabilizing communities, communities undergoing targeted reinvestments or care model conversions, and non-core assets being prepared for disposition. Detz said Sonida expects to recycle capital out of select lower-growth or non-core communities over time, representing about 10% of the portfolio by community count but significantly less than 10% of total NOI for the quarter ended March 31.
Ribar also outlined a refined capital allocation framework centered on improving portfolio quality, deploying capital only where returns exceed the company’s cost of capital, and maintaining balance sheet flexibility. He said the company will prioritize internal opportunities such as occupancy, RevPOR and margin optimization, followed by acquisitions with operational upside and strategic fit.
Ribar said Sonida’s 2024 acquisition cohort, consisting of 19 assets, is tracking ahead of plan. The assets were underwritten to a stabilized yield on cost above 10% over an 18- to 24-month period and were running at an annualized 11.5% yield on cost as of the first quarter, he said.
SPIN platform supports operations and underwriting
Management highlighted Sonida’s proprietary technology platform, the Sonida Performance Insight Navigator, or SPIN, as a key part of its operating strategy. Ribar said SPIN combines resident care data, workforce information and operational metrics to provide real-time visibility for community leaders.
Ribar said the system helps optimize labor and non-labor costs relative to occupancy, acuity and care levels. In response to an analyst question, he said Sonida is using SPIN in acquisition underwriting by comparing potential assets with existing communities across its portfolio. He also said the company will continue investing in the platform, including opportunities tied to artificial intelligence and advanced analytics.
Detz said SPIN supported a pay-for-performance initiative launched in early 2025 that helped Sonida measure job function productivity and invest in top performers. Same-store labor costs declined about 100 basis points as a percentage of revenue year over year, driven primarily by improved direct labor productivity, he said.
Balance sheet and growth outlook
Detz said Sonida remains focused on reducing leverage toward a target range of 6.0 times to 6.5 times. As of March 31, the company’s capitalization included two term loans totaling $550 million, priced at SOFR plus 195 basis points, with potential step-downs as leverage declines.
Since quarter-end, Sonida increased its corporate debt facilities by $50 million, which Detz said allowed the company to reduce bridge financing to $170 million with no change in net debt. He said the company expects to refinance the remaining bridge loan with new mortgage debt in the coming months.
As of April 30, Detz said Sonida had slightly more than $50 million in cash and more than $100 million of availability under its revolving credit facility. The company also paid down $17 million on a revolver after quarter-end and completed two small investments: a $3.6 million buyout of a joint venture partner’s interest in a 2024 acquisition cohort community and a $2.9 million preferred equity investment.
In response to analyst questions, Ribar said Sonida remains active in the acquisition market and is evaluating both enterprise-level and individual asset opportunities. He said the company believes it can continue acquiring at a pace similar to 2024 and 2025, excluding the CHP transaction, though he acknowledged that market returns may have tightened since 2024.
Ribar said dispositions are more likely to occur in the third and fourth quarters, and that the company is pursuing active processes for the communities already identified for potential sale.
About Sonida Senior Living (NYSE:SNDA)
Sonida Senior Living (NYSE: SNDA) is a publicly traded company that owns and operates senior living communities in the United States. The company’s core business centers on providing housing and care services for older adults, with an emphasis on assisted living, memory care and related supportive services tailored to residents’ needs.
Sonida’s communities combine residential accommodations with on-site services such as personal care assistance, medication management, dining programs, social and recreational activities, and clinical oversight.
