Sonida Senior Living — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss attributable to common shareholders of $24.5 million, or $(0.52) per share, for the quarter ended June 30, 2026.
• Reported Normalized Funds from Operations (FFO) of $23.7 million, or $0.48 per share.
• Adjusted EBITDA reached $50.0 million, representing a 30.0% increase compared to the pro forma Adjusted EBITDA for Q2 2025.
• Same-Store Net Operating Income (NOI) was $51.5 million, a 16.9% increase year-over-year.
• Same-Store weighted average occupancy increased 240 basis points year-over-year to 87.8%.
• Same-Store Revenue Per Occupied Room (RevPOR) was $5,372, a 4.9% increase from the prior year.
• Same-Store NOI margin expanded by 250 basis points year-over-year.
• Total revenues for the quarter were $207.6 million, compared to $93.5 million in the prior year period.
• Resident revenue for the quarter was $188.0 million.
• Net cash used in operating activities for the six months ended June 30, 2026, was $27.2 million, compared to net cash provided of $12.8 million in the prior year period.
• Net cash used in investing activities for the six months ended June 30, 2026, was $922.9 million, compared to $37.5 million in the prior year period.
• Net cash provided by financing activities for the six months ended June 30, 2026, was $985.3 million, compared to $19.3 million in the prior year period.
• Cash and cash equivalents as of June 30, 2026, were $48.7 million.
• Total assets as of June 30, 2026, were $2.55 billion, compared to $844.8 million as of December 31, 2025.
• Long-term debt, net of deferred loan costs, was $1.56 billion as of June 30, 2026, compared to $682.5 million as of December 31, 2025.
• Total liabilities as of June 30, 2026, were $1.68 billion.
• Total equity as of June 30, 2026, was $866.2 million, compared to $5.0 million as of December 31, 2025.

Guidance and Future Outlook

• Management stated the primary objective is driving sustained strong NOI growth in the existing portfolio.
• The Company is pursuing organic growth paired with disciplined pipeline development funded by a flexible balance sheet.
• Capital allocation is guided by a return-driven framework.
• Management expressed confidence in delivering durable, long-term value for shareholders.

Business Segments and Product Lines

• The Company owns, manages, or is invested in 164 senior housing communities with over 16,500 total units across 35 states as of June 30, 2026.
• The portfolio includes 152 owned senior housing communities (inclusive of 48 managed by third-party property managers, 15 leased pursuant to triple-net leases, three owned through a joint venture investment in a consolidated entity, and four owned through a joint venture investment in an unconsolidated entity).
• The Company manages 12 communities on behalf of a third party.
• The business focuses on independent living, assisted living, and memory care communities and services.
• The Company completed the acquisition of CNL Healthcare Properties, Inc. ("CHP") on March 11, 2026, integrating CHP results into its Same-Store Portfolio calculations.

Market and Competitive Landscape

• The Company leverages SPIN's density and data advantages to enhance acquisitions and community integration.
• The Same-Store Portfolio includes CHP communities evaluated as if owned by the Company at the beginning of the applicable period.

Risks and Challenges

• Risks include the ability to generate sufficient cash flows from operations and proceeds from equity issuances and debt financings to satisfy debt obligations and fund acquisitions.
• Potential challenges include increased competition for skilled workers, wage pressures, and labor shortages.
• Elevated market interest rates may increase the cost of debt obligations.
• Risks associated with integrating the CHP business and achieving anticipated benefits.
• Potential undiscovered liabilities or unexpected costs related to acquired companies.
• Risks of oversupply and increased competition in operating markets.
• Regulatory compliance risks regarding licensure and legislative oversight.
• Global economic conditions, including inflation, supply chain disruptions, and energy costs.
• Cybersecurity and data privacy risks, including compliance with HIPAA.

Management Commentary and Tone

• Brandon Ribar, President and CEO, stated that second-quarter results reflect continued momentum from the strengthening of the operating platform and deliberate execution on the growth strategy.
• Management highlighted a "resident-first philosophy" as a core driver of the operating foundation.
• The tone regarding the balance sheet is positive, citing it as "increasingly flexible."

Other Key Points

• On August 7, 2026, the Company entered into a Second Amended and Restated Term Loan Agreement with Ally Bank providing up to $380 million in borrowings.
• At closing, the Company drew $372.5 million on the Ally Term Loan, with a delayed draw of $7.5 million available subject to achieving certain debt yields and debt service coverage ratios.
• Proceeds from the Ally Term Loan were used to fully repay the existing $122 million term loan with Ally and the $170 million on bridge debt, with remaining net proceeds used to pay down $70 million on the senior secured revolving credit facility.
• The Ally Term Loan has a five-year maturity with two one-year extension options and an interest rate of SOFR plus 185 basis points.
• The Ally Term Loan is secured by 28 of the Company's communities.
• On May 18, 2026, the Company entered into an equity distribution agreement (ATM Program) allowing the sale of up to $250 million in common stock.
• The Company has sold 671,732 shares of common stock pursuant to the ATM Program at a weighted average price of $41.05, generating $27.3 million in net proceeds.
• Non-cash common stock issued for the acquisition of new business totaled $771.8 million for the six months ended June 30, 2026.
• Non-cash issuance of common stock for the induced conversion of Series A convertible preferred stock totaled $47.7 million for the six months ended June 30, 2026.
• The Series A convertible preferred stock had 41 shares issued and outstanding as of December 31, 2025, and none as of June 30, 2026.