Sonida Continues to Execute on its Accretive Growth Plan and Upsizes its Revolver
Completes previously announced acquisition of eight senior living communities in the Southeast for
Enters into agreement to acquire two new communities in
Closes additional
“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
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
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
Capital Markets – Closed Additional
On October 3, 2024, the Company closed on an additional
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
For more information, visit www.sonidaseniorliving.com or connect with the Company on Facebook, X or LinkedIn.
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Investor Relations
Jason Finkelstein
Ignition Investor Relations
ir@sonidaliving.com
Source: Sonida Senior Living, Inc.