Sonida Senior Residing (NYSE: SNDA) is responding to an elevated variety of move-outs because of rising resident acuity by boosting operations whereas enhancing gross sales, advertising and marketing and coaching efforts.
“Our complete thesis is to proceed to put money into actually sturdy expertise that can stick with us, in order that we don’t want so as to add further [full-time employees] as occupancy grows, particularly in our higher-occupied communities,” Sonida CEO Brandon Ribar stated throughout Monday’s earnings name.
Sonida reported an 18% improve year-over-year in resident move-outs in its same-store senior residing working portfolio in the course of the second quarter in comparison with the identical interval final yr. Almost half of those move-outs are because of a better charge of resident deaths because the second quarter of this yr noticed the best variety of historic transfer outs.
To answer this situation, Sonida has carried out enhanced resident danger assessments at communities experiencing elevated move-outs, and by the second half of the interval, move-out charges normalized, in response to Ribar, as same-store occupancy rose 90 foundation factors from July 1 to Aug. 1.
Sonida’s leaders additionally decreased the corporate’s variety of working divisions from three to 2 as a way to enhance consistency in programs, processes and communication, Ribar stated. Three months into the change, Sonida was “clearly seeing the specified outcomes” to hit a report occupancy of 88.2% in its same-store senior residing portfolio on the finish of July.
Sonida’s neighborhood internet working earnings (NOI) elevated $2.9 million, a acquire of 90 foundation factors within the first half of 2025 in comparison with the identical interval final yr. Within the second quarter of 2025, Sonida reported sequential neighborhood NOI progress of 5% in comparison with the second quarter of 2024. Resident income elevated $18.7 million or 29.7% within the second quarter in comparison with final yr’s second quarter, in response to the corporate’s earnings presentation issued on Monday.
Sonida additionally reported a internet loss within the second quarter of $1.6 million, as in comparison with $9.8 million in the identical interval final yr.
SNDA inventory rose 1.15% on Monday, up $0.28 from the day before today’s buying and selling to relaxation at $24.66.
Sonida reported above 88% common occupancy inside its same-store senior residing portfolio of 56 communities by the tip of final month. Sonida has a portfolio of 83 owned communities, 13 underneath administration, serving over 10,000 residents throughout 20 states.
Sonida targets portfolio, occupancy progress
To additional enhance occupancy, Sonida has made elevated investments in gross sales, advertising and marketing and coaching roles, whereas additionally implementing a focused wage improve for nursing and scientific employees to stay above market ranges the place relevant.
This has led to a 17% improve in employees retention in the course of the second quarter in comparison with the identical interval final yr inside its scientific departments. On the identical time, Sonida has elevated its digital advertising and marketing and direct lead era efforts, decreasing the corporate’s reliance on third-party, paid referral sources.
The outcomes of those elevated efforts on advertising and marketing and gross sales are starting to look, with July move-ins exceeding all prior months, of which 67% of move-ins had been leads fostered and created by Sonida’s inside gross sales and advertising and marketing efforts.
By means of creating its personal lead sources, Ribar stated this provides Sonida “a whole lot of confidence” heading into the latter half of 2025 to drive occupancy as leads are coming in at “no further price” to the Dallas, Texas-based operator.
Sonida closed on two acquisitions within the second quarter, and a 3rd acquisition was introduced on Monday within the Dallas-Fort Price, Texas (DFW) space, contingent upon customary closing circumstances, and every match Sonida’s technique of buying high-quality, “newer classic” property in “sturdy markets” with alternatives to enhance NOI,” Ribar famous.
The pending acquisition within the DFW market is a 98-unit property that can endure a focused refresh with a renewed gross sales and operations effort to drive NOI progress, Ribar famous.
“We’ve gotten good decide up on the expense aspect proper out of the gate with our acquisitions, and nonetheless proceed to really feel assured focusing on these low double-digit varieties of stabilization ranges from a cap charge perspective,” Ribar stated. “So we see good decide up and accretive offers which might be nonetheless on the market.”
In these acquisitions, the occupancy charges vary between the mid-Seventieth percentile and low eightieth percentile in census on the time of acquisition as Ribar famous the communities weren’t distressed however will profit from Sonida’s gross sales, advertising and marketing and expense management processes, Ribar stated.
Latest employees additions embrace “advertising and marketing, gross sales coaching and regional administration” gross sales hires from “different industries” have introduced a “actually subtle strategy” to Sonida’s inside lead era effort to drum up curiosity in Sonida communities, with Ribar telling buyers throughout Monday’s earnings name he expects “that to proceed” heading into 2026. This resulted in a rise of 16% extra digital leads by enhanced advertising and marketing processes in comparison with the identical interval final yr.
Within the second quarter, Sonida reported a $2.2 million improve in labor prices for the quarter in comparison with the identical interval final yr, together with a $700,000 improve in the course of the interval in working bills, in response to Sonida’s monetary reporting within the second quarter. G&A bills have risen roughly $1 million in comparison with the identical three-month interval final yr, tied to $1.7 million invested to help the corporate’s progress efforts.
On staffing, Sonida doesn’t anticipate “constant will increase” on wages for sure scientific positions to proceed on a quarterly foundation.
“That stability goes to result in consistency on outcomes in addition to with the ability to drive charges to a better degree so I believe what’s necessary from an offsetting of the expense strain, from a wage perspective, is that we have now gotten our charges to the best degree for any quarter within the firm’s historical past,” Ribar stated.
