SONIDA SENIOR LIVING, INC. Q1 FY2025 earnings call

• Top priority is driving community performance through tailored operating plans. Same-store and acquisition portfolios show strong NOI growth. - Two new acquisitions expected to close in Q2, focusing on accretive capital deployment. - Achieved a 6.6% average renewal rate increase on March 1st, impacting nearly 70% of the resident base. - Invested in clinical health information system, resident fall detection, etc., to enhance infrastructure. - Repositioning 5 Indiana communities due to Medicaid changes, shifting to private pay model with capital investment. - Successful integration of acquisition communities into Sonida's operating model.

The same-store portfolio NOI grew by 19.3% year-over-year, with occupancy up 100 basis points and RevPOR up 5.5%, resulting in annualized same-store revenues increasing $60 million or 7.4%. The acquisition portfolio NOI increased 31.3% sequentially from Q4 2024, with an annualized NOI for the acquisition portfolio implying a 9.1% yield on cost (excluding the unopened asset). There is a repositioning portfolio with 5 assets undergoing renovations to shift to a private pay model, with $4 million to $5 million in total capital spend expected and a projected ROI exceeding 30%, aiming to reduce Medicaid revenue percentage from 9%.

• Target year-over-year net operating income growth in line with high-end of peers. - Two new acquisitions expected to close in Q2. - Continued focus on driving occupancy expansion and leveraging pricing power for NOI growth. - Goal of achieving $100 million NOI with near-term target achievable and upside potential.

• Impact of Medicaid program changes in Indiana affecting occupancy and revenue. - Market conditions affecting capital allocation and acquisition opportunities. - Potential differences between forward-looking statements and actual results due to various factors.

Q: Details on repositioning portfolio, timeline, occupancy targets A: Brandon discussed repositioning 5 Indiana communities due to Medicaid changes, investing $4M-$5M, shifting to private pay model, with units taken out of service in Q1/Q2.

Q: Remaining private pay assets and pipeline acquisitions A: Only 5 immediate repositioning opportunities, two additional acquisitions in SE markets (FL, GA) expected in Q2, consistent with recent acquisitions, expected low double-digit yields