Sonida Senior Living, Inc. Announces Transformative Q4 and Full-Year 2025 Financial Results, Completes Major Acquisition

Key Highlights for Investors

• Major Acquisition: Sonida completed the acquisition of CNL Healthcare Properties (CHP), positioning itself as the eighth-largest owner of senior housing assets in the U.S. The combined portfolio now includes 153 high-quality communities.
• Strong Operational Growth: The company delivered a 22% year-over-year increase in total portfolio Net Operating Income (NOI), driven by higher occupancy and average rates.
• Significant Revenue and EBITDA Growth: Full-year 2025 adjusted EBITDA rose 24.5% to \$53.8 million from \$43.2 million in 2024. Resident revenue grew 24.0% year-over-year to \$332 million.
• Accretive Deal Structure: The CHP acquisition is expected to be immediately accretive to normalized Funds From Operations (FFO) per share and unlocks additional long-term value creation opportunities.
• Price-Sensitive Financial Results: Despite strong operating metrics, Sonida reported a Q4 2025 net loss attributable to stockholders of \$29.8 million (vs. \$5.5 million in Q4 2024) and a full-year net loss of \$72.5 million (vs. \$3.3 million in 2024), primarily due to significant one-time transaction, transition, and restructuring costs related to the CHP Merger, as well as impairment charges.
• Liquidity and Financing Update: As part of the CHP transaction, Sonida amended and expanded its revolving credit facility to \$405 million and secured \$525 million in new term loans, plus a \$270 million bridge loan. The company also completed a \$110 million equity investment with major shareholders.

Detailed Financial and Strategic Update

Acquisition of CNL Healthcare Properties

On March 11, 2026, Sonida finalized its acquisition of CNL Healthcare Properties, a \$1.8 billion stock-and-cash transaction. Approximately 68% of the consideration was paid in newly issued Sonida Common Stock, with the remaining 32% in cash. Each CHP share was converted into \$2.32 in cash and 0.1318 shares of Sonida, based on a reference price of \$26.74 per Sonida share, subject to a collar arrangement.

This transformative deal is a clear inflection point for Sonida, immediately boosting normalized FFO per share and significantly expanding its national footprint in the senior living sector.

Financial Performance: Q4 and Full Year 2025

• Resident Revenue: Q4 2025 resident revenue increased 11.9% year-over-year to \$86.3 million. Full-year resident revenue rose 24.0% to \$332 million, reflecting higher occupancy, increased average rent rates, and the impact of 19 acquired communities over two years.
• Same-Store Performance: In the 55-community same-store portfolio:
  • Q4 2025 RevPAR (Revenue per Available Unit) increased 5.7% to \$3,834.
  • RevPOR (Revenue per Occupied Unit) rose 4.6% to \$4,363.
  • Net operating income for these communities grew 6.5% to \$16.3 million, with NOI margin at 27.6%.
• Occupancy: Weighted average occupancy for owned same-store properties rose to 87.9% in Q4 2025, up 90 basis points from a year prior.
• EBITDA and Cash Flow: Adjusted EBITDA reached \$53.8 million for 2025, up \$10.6 million (24.5%). Cash flow from operations turned positive at \$24.4 million, up \$26.2 million from 2024.
• Net Loss: Q4 2025 net loss of \$30.1 million (vs. \$6.2 million in Q4 2024). Full-year net loss was \$72.5 million (vs. \$3.3 million in 2024), largely due to \$16.2 million in transaction, transition, and restructuring costs, and \$12.5 million in impairment charges. The prior year benefited from a \$48.5 million gain on extinguishment of debt.

Capital Structure and Liquidity Actions

To fund the CHP acquisition, Sonida:

• Amended and expanded its revolving credit facility to \$405 million with improved terms, extended maturity to 2030, and lowered the interest margin.
• Secured \$525 million in new term loans (tranches maturing in 2029 and 2031).
• Closed a \$270 million bridge loan, expected to be replaced with property-level financing within a year.
• Raised \$110 million in equity via private placements with Conversant Capital, LLC and Silk Partners LP at \$26.74 per share.

As of December 31, 2025, Sonida held \$11.0 million in unrestricted cash and had \$95.1 million outstanding on its revolving credit facility. The company’s liquidity position has improved, but future liquidity is dependent on operating performance, financing, and capital market access.

Risks and Shareholder Considerations

• Short-Term Earnings Pressure: The CHP Merger led to significant one-time costs and impairments, resulting in a large net loss for 2025. This is expected to materially impact 2026 reported results as well, with first consolidated post-merger financials to appear for Q1 2026.
• Debt and Refinancing Risk: The company’s expanded leverage and bridge loan must be refinanced before maturity. If capital markets tighten or asset values decline, refinancing could become more challenging or expensive.
• Labor and Cost Pressures: Higher labor costs, increased competition for skilled workers, and inflationary pressures on operating expenses remain risks.
• Integration Risk: Successfully integrating CHP and realizing expected synergies is critical. Any delays or challenges could impact profitability and shareholder value.
• Regulatory and Market Risks: The company remains exposed to regulatory changes, interest rate fluctuations, and broader economic uncertainties, all of which could affect operations and capital access.
• Legal and Transaction Risks: Litigation related to the CHP Merger and potential undiscovered liabilities from acquired assets are noted as ongoing risks.

Strategic Outlook

Management remains confident in its fully integrated owner-operator model, resident-first philosophy, and sector fundamentals. The enlarged platform is expected to drive continued organic and inorganic growth in 2026 and beyond.

Conference Call Information

Sonida Senior Living will host a conference call with senior management to discuss these results on Wednesday, March 11, 2026, at 4:30 p.m. Eastern Time. Details for the webcast and call replay are available on the company’s investor relations website.

About Sonida Senior Living, Inc.

Dallas-based Sonida Senior Living, Inc. is a leading owner, operator, and investor in independent living, assisted living, and memory care communities, serving over 10,000 residents across 20 states as of year-end 2025. For more information, visit www.sonidaseniorliving.com.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review Sonida Senior Living, Inc.’s filings with the SEC, including the Annual Report on Form 10-K, for a complete discussion of risks and other factors that may affect the company’s future performance. Past performance is not indicative of future results. All forward-looking statements are subject to risks and uncertainties.

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