Sonida Senior Living reported third‑quarter 2025 revenue of $98.0 million, a 26.3% increase from $74.8 million in the same period last year. Resident revenue rose to $84.6 million, driven by higher occupancy and rent growth, while management fees and managed‑community reimbursement added $1.1 million and $12.3 million, respectively. The company posted a net loss attributable to shareholders of $26.9 million, up from a $13.8 million loss in Q3 2024, and an earnings‑per‑share figure of $‑1.56, a miss of $0.81 versus the consensus estimate of $‑0.75.
The revenue beat was largely a result of robust demand in the senior‑living market, reflected in a 87.7% occupancy rate in the same‑store portfolio and a 21% growth in portfolio community NOI. Rent increases and a higher mix of assisted‑living and memory‑care residents contributed to the top‑line lift, offsetting the impact of one‑time acquisition costs that were not reflected in the revenue calculation.
The widened loss and EPS miss stem from significant one‑time charges. Operating expenses climbed 28.9% YoY to $65.1 million, driven by $6.2 million in transaction, transition, and restructuring costs related to recent acquisitions and a $4.7 million impairment charge on newly acquired communities. Labor costs also rose as the company integrated new staff and upgraded technology to support higher occupancy levels. These items, absent in prior periods, explain the $13.1 million increase in the loss compared with Q3 2024.
Margin performance showed a slight contraction. The same‑store portfolio NOI margin fell from 28.0% in Q3 2024 to 27.3% in Q3 2025, reflecting the impact of higher operating expenses and the impairment charge. Adjusted EBITDA grew over 30% YoY, indicating that core operating efficiency remained strong despite the one‑time hit.
Management highlighted the strategic merger with CNL Healthcare Properties, a $1.8 billion transaction expected to close in late Q1 or early Q2 2026. The merger is positioned as an inflection point that will create a larger, more efficient owner‑operator platform, potentially reducing leverage and enhancing scale. The company also emphasized continued focus on cost discipline, technology‑enabled staffing, and occupancy expansion as key levers for future margin improvement.
Investors reacted positively to the results, citing the revenue beat, operational gains, and the merger announcement as primary drivers of confidence in Sonida’s long‑term growth trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.