Sonida Senior Living, Inc. (SNDA): Business Model Canvas [Dec-2025 Updated]

You're looking at Sonida Senior Living, Inc. (SNDA) right now, and honestly, the picture is one of a company deep in a turnaround, balancing big strategic moves with the daily grind of care delivery. We're seeing them push same-store occupancy to 87.7% in Q3 2025 while simultaneously wrestling with a net loss of $26.9 million over the nine months ending September 30, 2025. This Business Model Canvas lays out exactly how they plan to bridge that gap-from their focus on private-pay residents and the upcoming CNL Healthcare Properties, Inc. merger to the operational fixes they are driving across their 97 communities. It's a complex pivot, but the numbers here show the path they are defintely taking to stabilize and grow. Dive in below to see the nine blocks that define their current strategy.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Sonida Senior Living, Inc. (SNDA) has established to fuel its current operations and its massive planned expansion. These aren't just casual agreements; they are foundational financial and strategic pillars. Here's the quick math on the key players supporting Sonida Senior Living, Inc. as of late 2025.

Strategic Merger Partner: CNL Healthcare Properties, Inc.

The most significant partnership is the definitive merger agreement with CNL Healthcare Properties, Inc. (CHP). This transaction is valued at approximately $1.8 billion, which is set to double the company's footprint. Upon closing, expected late in the first quarter or early in the second quarter of 2026, Sonida Senior Living, Inc. will create a combined portfolio of 153 owned independent living, assisted living, and memory care communities, with a total enterprise value of approximately $3.0 billion. The deal is funded with approximately 66% stock and 34% cash. The cash portion is supported by committed debt financing and equity commitments totaling $110 million from Sonida Senior Living, Inc.'s largest shareholders, Conversant Capital and Silk Partners.

Primary Secured Lender: Ally Bank

Ally Bank is central to Sonida Senior Living, Inc.'s recent growth funding. In August 2025, Sonida Senior Living, Inc. finalized a senior secured term loan agreement with Ally Bank for $137 million, referred to as the 2025 Ally Term Loan. This financing provided an initial term loan advance of $122.0 million, which is secured by 19 communities. The agreement also allows for two additional draws of $7.5 million each, contingent on meeting specific debt yield and debt service coverage ratios. The loan carries a 36-month maturity.

Financial Institutions for Revolving Credit Facility

Sonida Senior Living, Inc. utilizes a senior secured revolving credit facility (Credit Facility) put in place in 2024 with BMO Bank, N.A. and Royal Bank of Canada. The total aggregate commitment under this facility is up to $150.0 million, with a term of three years. As of September 30, 2025, $86.1 million of borrowings were outstanding under the Credit Facility, secured by 14 of the Company's senior living communities, leaving $40.9 million in availability. To be fair, the financing structure for the pending merger includes a commitment for a new, upsized $300 million revolver upon closing of the CNL transaction, which will further increase available capital for the robust investment pipeline planned for the second half of 2026.

Joint Venture and Third-Party Management Structures

Sonida Senior Living, Inc. partners with joint venture (JV) entities for ownership and manages properties for third-party owners, diversifying its capital structure and management fee revenue. As of September 30, 2025, the total portfolio was 97 communities. The structure of the owned portfolio is detailed below:

The 13 communities managed for third-party owners represent a key component of the asset-light side of the business model, providing fee revenue without direct property-level debt exposure.

The key financial relationships supporting Sonida Senior Living, Inc.'s platform include:

• CNL Healthcare Properties, Inc. Merger: Transaction value of $1.8 billion, expected close late Q1/early Q2 2026.
• Ally Bank Term Loan: New $137 million loan with an initial advance of $122.0 million on 19 communities.
• Senior Secured Revolving Credit Facility: Total commitment up to $150.0 million (pre-merger); $86.1 million outstanding as of September 30, 2025.
• Joint Venture Ownership: 8 communities held via joint venture structures (4 consolidated, 4 unconsolidated).
• Third-Party Management: Management contracts in place for 13 communities.

Finance: draft 13-week cash view by Friday.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Key Activities

You're focused on the day-to-day grind of running a complex portfolio, so let's look at what Sonida Senior Living, Inc. is actively doing to drive performance across its assets.

Operating and managing 97 senior housing communities is the core function. As of September 30, 2025, Sonida Senior Living, Inc. managed a total of 97 senior housing communities across 20 states, providing care for approximately 10,250 residents. This footprint breaks down into 84 owned communities and 13 communities managed on behalf of a third-party.

The inorganic growth strategy is clearly a major activity. Sonida Senior Living, Inc. continued its disciplined expansion, executing on its strategy to expand and densify the portfolio. For instance, in June 2025, the company closed two asset acquisitions in Atlanta and Tampa for a combined $22 million. Plus, they added another high-quality community in the Dallas-Fort Worth market in September 2025 for $15.5 million, bringing the total number of communities acquired since 2024 to 23. The 2024 acquisition cohort is performing well, achieving approximately 10%+ annualized Yield on Cost year-to-date in 2025.

Driving occupancy growth is central to unlocking value in the existing properties. In the same-store portfolio, occupancy achieved its highest levels post-Covid, increasing 90 basis points sequentially to reach 87.7% in Q3 2025. The momentum carried forward, with end of October spot occupancy reaching 89.0%.

To support these occupancy and rate goals, Sonida Senior Living, Inc. is implementing operational improvements. The Operations Excellence team focuses on improving performance at communities showing weak or negative year-over-year Net Operating Income (NOI) growth. This focus has yielded tangible results in labor management, too. Employee turnover was slashed by more than 15% overall since Q1 2024, with an improvement of more than 10% for executive directors. Labor costs were brought down by 110 basis points in the first quarter of 2025 compared to the prior year.

Here's a quick look at the key operational metrics reflecting these activities for Q3 2025:

Enhancing on-site clinical resources and technology platforms supports the service delivery. The company is using business intelligence and third-party technology tools to improve its operating performance. The operational team is also focused on the consistent delivery of excellent clinical care and services to support resident well-being. This is part of a broader effort to ensure community staffing aligns with resident needs.

The activities driving the business include several focused efforts:

• Executing disciplined inorganic growth through acquisitions.
• Achieving regional densification in key markets like Atlanta.
• Driving same-store occupancy gains above 87.7%.
• Implementing operational turnarounds at acquired, sometimes distressed, assets.
• Managing labor costs to improve NOI flow-through.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Key Resources

You're looking at the core assets Sonida Senior Living, Inc. relies on to generate revenue and execute its strategy as of late 2025. These aren't just line items; they are the physical and technological foundation of the business.

The physical footprint is substantial, spread across the nation. As of September 30, 2025, Sonida Senior Living, Inc. operated across 20 states in the U.S.. The portfolio is a mix of owned and managed properties, which gives them both direct operational control and fee-based revenue streams.

This physical plant supports a significant resident base. The aggregate resident capacity across the total portfolio is approximately 10,250 units. That number represents the total potential revenue base from resident services.

Liquidity and financing capacity are critical resources, especially given the company's acquisition pace. You need to watch the credit facility availability closely. As of the end of the third quarter of 2025, Sonida Senior Living, Inc. had $64 million of capacity remaining under its credit facility.

Beyond the physical assets, Sonida Senior Living, Inc. invests in technology to drive operational efficiency, which is a key non-tangible resource. They are actively using internal systems to manage their workforce and analyze performance data.

• Proprietary labor management tools
• Business intelligence tools

The ability to leverage regional density, which is supported by the 20-state footprint, is also a strategic resource that these tools help maximize. Finance: draft 13-week cash view by Friday.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Value Propositions

You're looking at the core reasons why residents choose Sonida Senior Living, Inc. over the competition, grounded in the numbers from their portfolio as of late 2025. It's about offering a full spectrum of living options backed by strong operational focus.

Continuum of Care and Portfolio Scale

Sonida Senior Living, Inc. provides a full spectrum of care that keeps pace with a resident's changing needs, integrating independent living, assisted living, and memory care services. This structure helps sustain resident autonomy as their physical and mental abilities shift over time. As of June 1, 2025, the Company owned, managed, or invested in 96 senior housing communities across 20 states, offering an aggregate capacity for approximately 10,150 residents.

The portfolio mix is designed to capture various levels of need. For example, one community acquired in the Atlanta MSA in June 2025 contained 88 units, specifically broken down into 64 Assisted Living units and 24 Memory Care units. This demonstrates the commitment to offering higher-acuity services within their footprint.

Here's a snapshot of the scale as of mid-2025:

Resident-Centric Services and All-Inclusive Value

The value proposition centers on compassionate, resident-centric services and programming designed to be engaging. For the resident, this often translates into a predictable monthly expense where many daily burdens are removed. The company highlights that services like housekeeping, general maintenance (painting, plumbing, electrical repairs), and utilities (Gas/Electricity, Cable/Internet, Water, Disposal) are INCLUDED in the monthly payment at many communities. This bundling simplifies budgeting for families.

The operational focus in 2025 aimed at improving core service delivery, evidenced by a focus on staffing stability:

• Sonida Senior Living slashed employee turnover by more than 15% overall since the first quarter of 2024.
• Executive director turnover improved by more than 10% over the same period.

High-Quality Communities at a Meaningful Discount to Replacement Cost

Sonida Senior Living, Inc. actively seeks to upgrade and expand its portfolio by acquiring high-quality assets at prices significantly below what it would cost to build them new today. This disciplined approach ensures capital is deployed effectively. You can see this strategy in action with recent purchases:

• An 88-unit community in the Atlanta MSA, completed in 2017, was acquired in June 2025 for approximately $125,000 per unit, reflecting a significant discount to replacement cost.
• A community in the Tampa submarket, also completed in 2017, was purchased for approximately $172,000 per unit, also reflecting a significant discount to replacement cost.

This strategy allows the company to integrate newer, higher-quality assets into the portfolio while maintaining a favorable cost basis.

Focus on Private-Pay Models

A key driver of financial sustainability is the heavy reliance on private-pay residents, who generate higher, less regulated rates compared to government reimbursement programs. As of the end of fiscal year 2024, approximately 89.9% of total resident revenues from operated communities came from private pay sources, with only about 10.1% coming from Medicaid reimbursements. The company is actively repositioning certain assets to align more closely with this higher-rate private-pay customer base.

This focus is yielding results in rate growth, as seen in the third quarter of 2025:

The company is driving revenue through both occupancy gains and rate increases, with same-store occupancy reaching its highest post-COVID level at 87.7% in Q3 2025.

Personalized Care from Family-Like Team Members

The commitment to personalized care is tied directly to the stability and quality of the on-site team. The goal is for team members to defintely treat residents like family, which requires low turnover and consistent leadership. The operational excellence team focuses on reducing disruptions for acquired communities, which supports staff retention and service continuity. The CEO acknowledged the entire team for their tremendous execution and for keeping the care and services provided to residents as the guiding light through Q3 2025.

Finance: draft 13-week cash view by Friday.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Customer Relationships

Dedicated on-site community teams for personalized care are central to Sonida Senior Living, Inc.'s model, supporting a portfolio of 97 senior housing communities as of September 30, 2025, with an aggregate capacity for approximately 10,250 residents.

The focus on consistent, high-quality care is directly tied to staff stability. Sonida Senior Living, Inc. reports slashing overall employee turnover by more than 15% since the first quarter of 2024. Furthermore, for executive directors, the improvement in turnover was more than 10% over that same period. This commitment to the team helped bring down labor costs by 110 basis points in the first quarter of 2025 compared to the year prior. Clinical departments saw a 17% increase in staff retention during the second quarter of 2025 compared to the second quarter of 2024.

The high-touch sales process shows results in occupancy gains. Weighted average occupancy for the same-store portfolio reached 87.7% in the third quarter of 2025, with end of October spot occupancy hitting 89.0%. This operational strength contributed to resident revenue increasing 26.3% to $84.6 million in the third quarter of 2025 compared to the third quarter of 2024. The company has also shifted lead generation to more direct channels; referrals through the company's website and local sources accounted for 56% of leads in 2024, up from 41% in 2022.

Direct, long-term relationships with residents and their families are maintained through structured feedback loops. On-site management actively fosters resident councils and committees that meet with management on a monthly basis to offer input on service quality. The company also conducts resident and family satisfaction surveys routinely, working with an outside firm to benchmark results against industry averages in areas like resident care and dining.

Here are key operational metrics reflecting the customer base and staff environment as of late 2025:

The relationship management structure includes formal quality oversight:

• Established a Corporate Quality Assurance Committee
• Committee includes the President and CEO and Chief People Officer
• Focuses on monitoring care delivery processes

Finance: draft 13-week cash view by Friday.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Channels

You're looking at how Sonida Senior Living, Inc. gets its residents in the door as of late 2025. The channels they use are a mix of physical presence and increasingly sophisticated digital outreach, all aimed at filling beds across their growing footprint.

Physical senior housing communities across 20 states

The core channel is the physical asset itself. Sonida Senior Living, Inc. operates a national network where the community location and quality are the primary draw for local markets. As of September 30, 2025, the company owned, managed, or invested in a total of 97 senior housing communities.

This physical footprint spans 20 states, supporting an aggregate capacity of approximately 10,250 residents.

Here is a breakdown of that physical channel as of the end of the third quarter of 2025:

The company also notes a regional densification strategy, adding a community in the Dallas-Fort Worth market in September 2025, bringing their total assets in Texas to 21.

Direct-to-consumer sales and marketing teams at the community level

The day-to-day sales engine runs through the teams at each location. Sonida Senior Living, Inc. has been shifting focus to internal marketing strategies, which means the community-level sales and marketing staff are crucial for converting leads generated through their own efforts. This internal focus is supported by investments in sales training and regional management roles made in Q2 2025.

The effectiveness of these on-the-ground teams is clear in the conversion rates seen in mid-2025.

• Move-ins fostered and created by Sonida's internal sales and marketing efforts comprised 67% of the total in July 2025.
• Digital leads through non-aggregator channels increased by 48% in July 2025.
• The company is implementing AI to analyze prospect calls to help train these sales teams.

Online presence and digital marketing for lead generation

The digital channel is a rapidly growing source of qualified prospects, reflecting a strategic pivot away from heavy reliance on paid third parties. Sonida Senior Living, Inc. is upping its tech spend in 2025 by as much as 30% to enhance this area.

The digital and local direct channels are now the dominant source of initial interest.

• Website and local referrals accounted for 56% of the company's leads as of 2024.
• Lead volume in July 2025 exceeded the average for the first half of 2025 by 16%, driven by these enhanced digital processes.
• The goal is to become a trusted information provider, which helps drive organic, no-cost leads.

Third-party referral networks and social workers

While the internal push is strong, external referral networks still contribute a significant portion of the pipeline, though the reliance on paid aggregators is intentionally being reduced. The company continues to work with national aggregators, but also focuses on local referral businesses that have stronger market relationships.

Here's how the external referral landscape looked based on 2024 data, which informs the current strategy:

The strategy involves maintaining relationships with key local social workers and referral sources while minimizing the cost associated with national paid referral services.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Sonida Senior Living, Inc. as of late 2025. This isn't just about age; it's about the specific financial and care needs of the seniors and their families they serve across their extensive footprint.

The sheer scale of the operation defines the segment size. As of the second quarter of 2025, Sonida Senior Living, Inc. operated, managed, or invested in 96 senior housing communities across 20 states, providing capacity for approximately 10,150 residents. That's a big pool of potential customers you're targeting.

Occupancy is a key indicator of segment health and demand. For the same-store portfolio, weighted average occupancy hit 87.7% in the third quarter of 2025, which management noted was the highest level post-COVID. By the end of October 2025, spot occupancy even reached 89.0%. This suggests strong pull from the target market.

Here's a quick look at the operational metrics reflecting the value captured from these residents:

The focus is definitely shifting toward those who can self-fund. Sonida Senior Living, Inc. has been actively repositioning certain communities in 2025 to move them away from Medicaid services and toward more traditional rental private-pay models. This signals a clear preference for residents who are primarily private-pay and prefer a straightforward rental structure over heavy government reimbursement reliance.

The core offering caters to the full spectrum of needs within the senior living continuum. You're serving:

• Individuals needing Independent Living (IL).
• Those requiring Assisted Living (AL) support.
• Residents needing specialized Memory Care (MC) services.

The 14% year-over-year rise in level of care fees in Q3 2025 shows that residents requiring higher acuity services-AL and MC-are a significant and growing part of the revenue mix, reflecting the continuum-of-care customer. Honestly, this mix is where the margin is.

Families are the secondary customer, seeking assurance. The 26.3% jump in resident revenue year-over-year, driven by both occupancy and rent growth, suggests the market perceives the value proposition-safety, comfort, and service-as strong enough to support higher rates. The goal is to provide options that feel both safe and financially viable for the decision-makers.

Finance: draft a sensitivity analysis on the impact of a 100 basis point drop in same-store occupancy from the 87.7% Q3 level by end of Q1 2026.

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Sonida Senior Living, Inc.'s operations, which is key to understanding their path to profitability. The cost structure is heavily weighted toward personnel and property upkeep, which is typical for this sector.

Labor and Staffing Costs represent a significant portion of the operating outlay. Sonida Senior Living, Inc. has been actively managing these expenses. For instance, in the first quarter of 2025, the company successfully brought down total labor costs by 110 basis points compared to the prior year period. This efficiency gain, as a percentage of revenue, yielded about 71% in incremental flow-through on additional revenue for that quarter. Still, as the portfolio grows, absolute costs rise; for example, labor and employee-related expenses contributing to a $1.5 million increase in General and Administrative expenses in Q1 2025 year-over-year. By the third quarter of 2025, labor increases related to the expanded portfolio were noted as a $2.1 million driver in operating expense increases over Q3 2024.

The company has also faced substantial operating and restructuring costs, which impact the bottom line. For the three months ended September 30, 2025 (Q3 2025), Sonida Senior Living, Inc. reported a net loss attributable to shareholders of $26.9 million. Looking at the longer nine-month period ended September 30, 2025, the net loss widened to $41 million, a significant shift from the net income of $3.45 million reported in the same nine-month period of 2024. These figures reflect the costs associated with integration and strategic shifts. Specific transaction, transition, and restructuring costs were reported as $0.6 million in Q1 2025 and $0.5 million in Q2 2025.

Property Operating Expenses are directly tied to the scale of the portfolio, which has been growing through acquisitions. For the second quarter of 2025 (three months ended June 30, 2025), total operating expenses reached $61.4 million. This was a 33.5% increase year-over-year, largely due to the operating expenses of 18 additional communities acquired in 2024 and 2025. By the third quarter of 2025, operating expenses were $65.1 million, up 28.9% compared to Q3 2024, again driven by the newly added communities.

Financing the asset base involves Interest Expense on Debt. Sonida Senior Living, Inc. has been working to manage its debt profile. As of the third quarter of 2025, the weighted average interest rate for the portfolio, including the credit facility, stood at 5.5%, with variable rate debt nearly fully hedged. This compares to a 5.6% weighted average rate reported at the end of Q2 2025. For the second quarter of 2025, the interest expense was $9.3 million. As of September 30, 2025, borrowings outstanding under the Credit Facility were $86.1 million.

Finally, Capital Expenditures for Community Repositioning and Renovations are a planned cost to maintain and enhance asset value, especially for acquired properties. Sonida Senior Living, Inc. has an initial repositioning portfolio consisting of five communities in Indiana. The company expects to generate a 30% return on investment for expenditures in these repositioning projects, averaging about $4 million to $5 million in total. Outside of these specific repositioning efforts, Sonida typically invests around $1 million for standard renovations outside of apartments in a decade-old building.

Here's a quick look at some of the key expense and loss figures:

• Labor cost reduction in Q1 2025: 110 basis points
• Property Operating Expenses in Q2 2025: $61.4 million
• Property Operating Expenses in Q3 2025: $65.1 million
• Restructuring/Transition Costs in Q1 2025: $0.6 million
• Restructuring/Transition Costs in Q2 2025: $0.5 million
• Net Loss for Q3 2025: $26.9 million
• Net Loss for 9 Months Ended 9/30/25: $41 million

The interest rate environment is captured in the debt structure:

Sonida Senior Living, Inc. (SNDA) - Canvas Business Model: Revenue Streams

You're looking at the core ways Sonida Senior Living, Inc. brings in cash flow as of late 2025. It's a mix of direct resident payments and fees for services rendered across their growing portfolio.

The most direct stream comes from residents paying for rent and the care services provided. For the third quarter ending September 30, 2025, this resident revenue totaled exactly $84.6 million. This was a strong year-over-year jump, increasing by 26.3% compared to Q3 2024. The total portfolio resident revenue for the first nine months of 2025 hit $245.7 million.

Pricing power is a key driver here. The company has been successfully pushing rates. For instance, the average annual rent renewal rate, as of March 1, 2025, stood at 6.9%, applicable to 71% of the total same-store residents. Furthermore, fees tied to the complexity of resident needs are growing; level of care fees specifically increased by 14% year-over-year. This reflects investment in on-site clinical resources and technology. Honestly, you see this pricing power reflected in the unit-level metrics.

Here's a quick look at how the revenue per occupied unit has been tracking:

Beyond direct resident billing, Sonida Senior Living, Inc. also generates revenue through its operational platform. As of September 30, 2025, the company was managing 13 communities on behalf of a third-party, which generates management fees. This third-party management segment is an important, though secondary, revenue stream that leverages their operating expertise.

The main components feeding into this revenue engine include:

• Resident revenue from rent and services, totaling $84.6 million in Q3 2025.
• Year-over-year increase in level of care fees by 14%.
• Average annual rent renewal rate of 6.9% as of March 2025.
• RevPOR of $4,388 in Q2 2025.
• Management fees derived from operating 13 third-party managed communities.

The growth in revenue is also heavily influenced by portfolio expansion; the company had 19 additional operating communities acquired in 2024 and 2025 contributing to the Q3 2025 resident revenue increase. Finance: draft 13-week cash view by Friday.