Completes purchase of recently built senior
living community in Cincinnati for $16.3 million with favorable
financing terms
Brings total 2024 acquired properties to 20 and
total operating portfolio to 94 communities
Completes previously disclosed Fannie Mae loan
modification extending maturities on $220 million of mortgage loans
from December 2026 to January 2029
Sonida Senior Living, Inc. (“Sonida” or the “Company”) (NYSE:
SNDA), a leading owner, operator and investor in senior living
communities, announced today the closing of its latest acquisition,
as the Company continues to execute on its inorganic, accretive
growth strategy, which aims to further expand and upgrade its
portfolio to fully leverage operating scale and efficiencies.
“Sonida ended the year with two additional transactions further
positioning the company for success in 2025 and beyond. The Company
continues to execute on its growth strategy through creative deal
structuring and expansion of its best-in-class operating platform
to aggressively and strategically invest in high-quality
communities at exceptionally attractive valuations,” said Brandon
Ribar, President and Chief Executive Officer. “With significant
operational upside remaining in our current portfolio, a strong
pipeline, and no material debt maturities on the horizon, we look
forward to delivering on our commitment to accretive and
sustainable growth with resident care and service at the center of
our efforts.”
Capital Allocation – Senior Housing
Community Acquisition in the Midwest
On December 31, 2024, the Company finalized the acquisition of a
single senior living community located in Cincinnati, OH.
Construction on the upscale and amenitized asset was completed in
2021; however, the community never opened due to foreclosure on the
construction borrower. Sonida’s purchase price of $16.3 million, or
approximately $198,000 per unit, reflects a significant discount to
the original total construction cost, aligning with Sonida’s focus
on acquiring high quality real estate at meaningful discounts to
replacement cost.
The community is strategically situated directly adjacent to
Sonida’s existing Wellington at North Bend Crossing community
(“Wellington”), a highly occupied and high-performing asset. The
new property’s 82 units (50 Assisted Living / 32 Memory Care) when
combined with the Wellington’s existing footprint, creates a unique
densification opportunity for Sonida. The two-asset “campus” with
203 units collectively, will provide a full continuum of care and
broader range of services to residents, further leveraging
operating scale through cost efficiencies in an attractive and
under-supplied market. Consistent with the Company’s strategy of
regional densification, the acquisition brings Sonida’s greater
Cincinnati portfolio total to five assets.
Sonida funded the transaction with $18.25 million of
seller-financing, including $2.0 million for capital expenditure
investment into the facility (i.e. primarily FFE), which is
expected to be utilized prior to the targeted mid-2025 opening. The
non-recourse mortgage carries an 84-month term and 24-month
interest waiver to support lease-up and stabilization, with a 3%
fixed interest-only rate thereafter.
Proactive Debt Management – Completed
Fannie Mae Loan Extension
In December 2024, the Company consummated the previously
announced maturity extension of 18 individual mortgages
(representing $220.1 million of debt outstanding as of September
30, 2024) from December 1, 2026 to January 1, 2029. As part of the
modification, the Company funded a $2 million principal paydown at
closing and will fund three additional principal paydowns in
November 2025 ($2 million), November 2026 ($3 million) and November
2027 ($3 million). The mortgages, which are interest-rate only
through maturity, carry a blended interest rate of 4.35% which will
remain unchanged for the duration of the loans. As a result of this
extension, the Company has no significant debt maturities until
2027.
Safe Harbor
The forward-looking statements in this press release, including,
but not limited to, statements relating to the Company’s
acquisitions, are subject to certain risks and uncertainties that
could cause the Company’s actual results and financial condition to
differ materially, including, but not limited to the Company’s
ability to recognize the anticipated benefits of such acquisitions;
the impact of such acquisitions on the Company’s business,
including our ability to successfully implement integration
strategies or achieve expected synergies and operating
efficiencies; any legal proceedings that may be brought related to
such acquisitions; our projections related to said acquisitions may
not materialize as expected; and other risks and factors identified
from time to time in the Company’s reports filed with the SEC,
including the Company’s ability to generate sufficient cash flows
from operations, proceeds from equity issuances and debt
financings, and proceeds from the sale of assets to satisfy its
short- and long-term debt obligations and to fund the Company’s
acquisitions and capital improvement projects to expand, redevelop,
and/or reposition its senior living communities; increases in
market interest rates that increase the cost of certain of our debt
obligations; increased competition for, or a shortage of, skilled
workers, including due to general labor market conditions, along
with wage pressures resulting from such increased competition, low
unemployment levels, use of contract labor, minimum wage increases
and/or changes in overtime laws; the Company’s ability to obtain
additional capital on terms acceptable to it; the Company’s ability
to extend or refinance its existing debt as such debt matures; the
Company’s compliance with its debt agreements, including certain
financial covenants, and the risk of cross-default in the event
such non-compliance occurs; the Company’s ability to complete
acquisitions and dispositions upon favorable terms or at all,
including the possibility that the expected benefits and our
projections related to such acquisitions may not materialize as
expected; the risk of oversupply and increased competition in the
markets which the Company operates; the Company’s ability to
improve and maintain controls over financial reporting and
remediate the identified material weakness discussed in its recent
Quarterly and Annual Reports filed with the SEC; the cost and
difficulty of complying with applicable licensure, legislative
oversight, or regulatory changes; risks associated with current
global economic conditions and general economic factors such as
inflation, the consumer price index, commodity costs, fuel and
other energy costs, competition in the labor market, costs of
salaries, wages, benefits, and insurance, interest rates, and tax
rates; the impact from or the potential emergence and effects of a
future epidemic, pandemic, outbreak of infectious disease or other
health crisis; and changes in accounting principles and
interpretations.
About Sonida
Dallas-based Sonida Senior Living, Inc. is a leading owner,
operator and investor in independent living, assisted living and
memory care communities and services for senior adults. The Company
provides compassionate, resident-centric services and care as well
as engaging programming operating 94 senior housing communities in
20 states with an aggregate capacity of over 10,000 residents,
including 81 communities which the Company owns (including eight
communities in which the Company owns varying interests through two
separate joint ventures), and 13 communities that the Company
manages on behalf of a third-party.
For more information, visit www.sonidaseniorliving.com or
connect with the Company on Facebook, X or LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20250106019418/en/
Investor Relations Jason Finkelstein IGNITION IR
ir@sonidaliving.com
Sonida Senior Living (NYSE:SNDA)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Sonida Senior Living (NYSE:SNDA)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
