Completes previously announced acquisition of
eight senior living communities in the Southeast for $103 million,
bringing total year-to-date acquired properties to 17 and total
operating portfolio to 91 communities
Enters into agreement to acquire two new
communities in Atlanta, GA for $29 million
Closes additional $75 million commitment on
senior secured revolving credit facility, expanding total capacity
to $150 million
Sonida Senior Living, Inc. (“Sonida” or the “Company”) (NYSE:
SNDA), a leading owner, operator and investor in communities and
services for seniors, today provided an update on its recently
closed acquisitions and capital markets activity.
“Both of these transactions continue our value-creating,
external growth strategy that is capitalizing on historically
favorable senior housing trends through geographic densification,
creative deal structuring and expansion of our best-in-class
operating platform,” said Brandon Ribar, President and Chief
Executive Officer. “We are excited about our current and active
investment pipeline as well as the overall transaction
environment.”
Capital Allocation – Acquired
Eight-Asset Senior Housing Portfolio in the
Southeast
On October 1, 2024, the Company finalized the previously
announced acquisition of eight senior living communities
strategically located in attractive submarkets in the Southeast.
The portfolio is comprised of 555 units with Assisted Living (“AL”)
and Memory Care (“MC”) offerings (approximately 70% AL and 30% MC)
in northern Florida and South Carolina. The eight communities are
located in high growth primary and secondary metropolitan areas
with favorable growth prospects: Jacksonville, Orlando and Daytona
Beach (Florida); Hilton Head, Charleston and Florence (South
Carolina).
These communities will further modernize Sonida’s portfolio and
densify its presence in the Southeast, which will allow Sonida to
fully leverage its operating scale. The eight-asset portfolio has
an attractive average asset age of five years, which compares
favorably to an average asset age of 19 years for comparable
inventory within a 10-mile radius.
Sonida’s purchase price of $102.9 million, or approximately
$185,000 per unit, reflects a significant discount to the Company’s
estimate of replacement cost. The portfolio’s in-place occupancy is
approximately 85% with an average RevPOR of more than $6,000. The
Company anticipates that the portfolio will be accretive to the
Company’s effective cap rate going-in and following a multi-year
stabilization period.
As of today, Sonida’s total operating portfolio is now comprised
of 91 communities (including eight communities in which the Company
owns varying interests through two separate joint ventures).
Capital Allocation – Signs Purchase
Agreement to Acquire Two Atlanta-Based Properties
On October 1, 2024, the Company signed a purchase and sale
agreement to acquire two senior living communities in the Atlanta,
GA market for $29.0 million. Sonida intends to fund the transaction
with cash on its balance sheet and proceeds from its senior secured
revolving credit facility. The assets have an average age of five
years and will add 178 units (106 AL and 72 MC) to Sonida’s
portfolio. Consistent with the Company’s focus on regional
densification, the acquisition brings Sonida’s Atlanta portfolio
total to three assets and further grows its exposure to highly
attractive Southeast markets. The portfolio’s in-place occupancy
and average RevPOR are 86% and more than $5,700, respectively.
Sonida’s purchase price is approximately $173,000 per unit, which
reflects a significant discount to the Company’s estimate of
replacement cost and expands Sonida’s accretive acquisitions
year-to-date as the Company capitalizes on historically favorable
senior housing trends.
Capital Markets – Closed Additional $75
Million on Senior Secured Revolving Credit Facility
On October 3, 2024, the Company closed on an additional $75
million commitment under the senior secured revolving credit
facility (the “Credit Facility”) it entered with BMO Bank N.A. on
July 24, 2024. The incremental $75 million availability, which was
provided by the Royal Bank of Canada, results in a total aggregate
commitment under the Credit Facility of up to $150 million. The
Credit Facility has a term of three years, a leverage-based pricing
matrix between S+210 and S+260 and is fully recourse to Sonida
Senior Living, Inc. and its applicable subsidiaries.
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 91 senior housing communities in
20 states with an aggregate capacity of over 9,500 residents,
including 78 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/20241003460441/en/
Investor Relations Jason Finkelstein Ignition Investor
Relations ir@sonidaliving.com
Sonida Senior Living (NYSE:SNDA)
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