How did SNDA's Q4 earnings surprise investors?

Sonida Senior Living, Inc. (SNDA) reported its Q4 2024 earnings, which surprised investors with a significant positive shift despite facing some challenges. Here's a detailed analysis: 1. **Financial Performance**: Sonida showcased strong year-over-year growth in key financial metrics. The company reported a 19% increase in same-store adjusted community NOI and a 27% rise in adjusted EBITDA from the previous year. This growth underscored the company's effective strategies and operational efficiency. 2. **Occupancy and Revenue Growth**: There was a notable improvement in occupancy rates, with a same-store increase of 180 basis points. Additionally, RevPOR grew by nearly 6% year-over-year. These metrics indicate a successful enhancement in revenue streams and optimized occupancy rates. 3. **Capital Allocation**: Sonida executed six transactions totaling over $250 million, including three in Q4 involving 11 communities and 817 units. This strategic capital allocation drove an 11% sequential total NOI growth quarter over quarter, demonstrating the company's investment acumen. 4. **Debt Restructuring**: The company achieved a discounted payoff of $18.3 million on a $28.4 million loan balance, representing a 36% discount. Moreover, they extended maturities of 18 communities with Fannie Mae, totaling $220 million, by two years, reflecting proactive financial management. 5. **Operational Improvements**: Lead volumes increased by 15% year-over-year, and tour volumes rose by 11% in Q4 2024. These indicators suggest heightened demand and interest in Sonida's senior living communities. 6. **Comparative Analysis**: When compared to the previous year, Sonida's net loss reduced significantly from $21.1 million in 2023 to $2.1 million in 2024. Resident revenue increased by $23.3 million, or 11.2%, year-over-year to $232.0 million in 2023. Adjusted EBITDA more than doubled to $33.9 million in 2023, up from $17.0 million in 2022. Despite these positive aspects, challenges such as a decline in occupancy in Q4 2024 and Medicaid-related issues in Indiana posed some risks. However, the overall performance highlights Sonida's resilience and growth potential. |code|Ticker|Name|Date|Percentage Change|Percentage Change YoY|market_code| |---|---|---|---|---|---|---| |SNDA|SNDA.N|Sonida Senior Living|20240102|-7.8684||169| |SNDA|SNDA.N|Sonida Senior Living|20240103|1.5169||169| |SNDA|SNDA.N|Sonida Senior Living|20240104|2.933||169| |SNDA|SNDA.N|Sonida Senior Living|20240105|-2.9032||169| |SNDA|SNDA.N|Sonida Senior Living|20240108|-0.1107||169| |SNDA|SNDA.N|Sonida Senior Living|20240109|-0.7761||169| |SNDA|SNDA.N|Sonida Senior Living|20240110|1.676||169| |SNDA|SNDA.N|Sonida Senior Living|20240111|0||169| |SNDA|SNDA.N|Sonida Senior Living|20240112|1.4286||169| |SNDA|SNDA.N|Sonida Senior Living|20240116|1.896||169|