Sonida Senior Living is approaching the end of an “exceptional” year in its recovery, with increased occupancy and rate growth, along with stabilizing operating expenses.

During a third-quarter earnings call Tuesday, President and CEO Brandon Ribar said that the leadership team remains focused on three goals as it closes out 2023: maximizing portfolio performance, strengthening the balance sheet, and expanding the business through acquisitions and third-party management activities.

“Our teams across the business continue to deliver on our 2023 operating plan,” he said. “Results this year have shown significant progress, with the third quarter delivering the highest level of occupancy revenue and operating margins since 2019.” 

Investing in resident experience

The 2022 launch of the company’s Magnolia Trials memory care program has delivered “exceptional” outcomes for residents and improved operations, Ribar said. Memory care occupancy reached 88% at the end of October, part of the fourth quarter.

In the first quarter of 2024, he said, Sonida plans to launch an enhanced independent living offering, Joyful Living, in 14 communities, with all of its independent living communities offering it by mid-year.

“Joyful LIving encapsulate’s Sonida’s person-centric approach to wellness and life enrichment, emphasizing well-rounded programming to support physical and emotional health, intellectual stimulation, individual purpose, social engagement and spirituality,” Ribar said. “Our goal is to provide residents with a variety of opportunities to achieve their desired potential and enjoy full, meaningful lives.”

On the quality front, Ribar said the hiring of a chief clinical officer reflects its commitment to further expanding its clinical offerings and tailoring services to resident needs.

“The ongoing retention and development of our leadership teams, and the effective rollout of new resident programming and technology, remain paramount to continuing the growth trends achieved in 2023,” he said.

Elevated occupancy, rate growth

Since the second quarter, the Dallas-based senior living operator’s portfolio improved occupancy 100 basis points sequentially and 150 basis points year over year to 84.9% for the third quarter. Ribar said that the trend continued into October, with occupancy reaching 86.2% and closing the month with spot occupancy of 87.4%, the highest level in more than four years.

Sonida continues to see the benefits from its rate growth initiative, with both in-place rate increase and positive market rate adjustments continuing to overall rate elevation, he said. Resident rent rates increased 10.4% year over year, with third-quarter rent rates 3.3% higher than rates in the second quarter, resulting in positive rate growth in seven of the past eight quarters. 

A simplified level of care program facilitated more accurate resident assessments with new monitoring tools reinforcing timely care reviews, he said. The changes led to 97% of current residents converted to new care levels and a 16% year-over-year increase in care level-related revenue.

Ribar said that the combination of leadership and occupancy levels in its communities will contribute to further rate growth in 2024.

The company also continues to identify expense management opportunities and efficiencies, along with investments in technology to support labor management practices at the local level, he said. Those initiatives, combined with the continued rollout of its market-specific talent sharing program, “remains paramount” to controlling total cost of labor, Ribar said. 

Expanded labor pools and the implementation of technology to staff communities based on resident needs contributed to 80% of year-over-year contract labor declines while limiting direct labor increases to 3.5%, the company reported.

Restructuring continues

In the third quarter, Sonida completed its debt restructuring, covering 49 properties financed by Fannie Mae and Ally Bank.

Under the Fannie Mae forbearance agreement, all maturities were extended to December 2026 or beyond, principal payments under the 37 Fannie Mae loans were deferred for three years or waived until maturity, and Sonida received near-term interest rate reductions on all 37 properties. 

Under the Ally Bank terms, Sonida was granted a waiver of its minimum liquidity requirement of $13 million for a year. The company also received a $13.5 million equity commitment from Conversant Capital, the company’s largest shareholder.

Chief Financial Officer Kevin Detz thanked Fannie Mae, Ally Bank and Conversant Capital for their “collaborative roles” in a “holistic process” that addresses more than 80% of the company’s mortgage debt.

Detz said that the company continues to be encouraged by consistent improvement across all business lines over the past year.

“This operating trajectory, combined with the company’s modified debt structure, has Sonida firmly positioned to take advantage of both organic and inorganic opportunities in the marketplace to drive shareholder value in 2024,” he said.

On Tuesday’s call, Ribar said that the Dallas-based senior living owner/operator is “approaching the end of an exceptional year for the Sonida recovery story.”

Heading into the final stretch of 2023, he said, Sonida’s leadership team is focusing on maximizing the performance of its portfolio and aiming to approach the key target of 30% net operating income margins.

“We believe operational improvement to deliver all-in cash generation in 2024 is critical to establishing an attractive investment profile for Sonida,” Ribar said. 

Revenue from residents for the third quarter was $59.1 million, compared with $52.5 million in the third quarter of 2022. That’s an increase of $6.6 million, or 12.6%, year over year. According to the Dallas-based operator, the increase in revenue was primarily due to increased occupancy and increased average rent rates.

“This strong financial performance combined with our improved debt structure has Sonida firmly positioned for strategic expansion within the marketplace,” Ribar said. “As we close out the year and prepare for 2024, we look forward to bringing our signature programs and services to more seniors and to pursuing new avenues of growth and shareholder value creation.”

Sonida reported last month that it had finalized a previously announced comprehensive restructuring of its loan modification agreements covering all 37 communities with Fannie Mae mortgages.

“As previously discussed, this modification significantly improves the company’s long-term debt structure and run rate liquidity. Specific terms of the debt modification on all 37 Fannie Mae loans include extending loan maturities to December 2026 or beyond, deferring required principal payments for a minimum of three years, and permanently abating a portion of interest for the 12-month period ending in June 2024,” Chief Financial Officer Kevin Detz said on Tuesday’s call.

The restructuring will result in almost $40 million of cash savings over the revised maturity dates, he said.

Additionally, Ally Bank agreed to temporarily reduce the minimum liquidity requirements for 18 months.

“On the equity front,” Detz said, our largest individual shareholder, Conversant Capital, provided an equity commitment of $13.5 million to further bolster operating liquidity.” 

Operating expenses were slightly higher in the third quarter of this year compared with a year ago. Expenses were $44.5 million in the third quarter of 2023 compared with $43.1 million in the third quarter of 2022. That’s an increase of $1.4 million, or 3.2%.

“The increase is primarily due to a $2.2 million increase in labor and employee-related expenses and a $0.3 million increase in computer software/internet costs, partially offset by a reduction in real estate taxes of $0.4 million and $0.7 million in other expenses,” the company said.

Third-quarter general and administrative expenses were $8.6 million, compared with $5.9 million for the prior year quarter. The $2.7 million increase is primarily due to a $1.4 million increase in transaction costs due to a loan modification and a $1.2 million increase in stock-based compensation expense from the prior quarter “due to forfeiture credits in connection with executive personnel changes,” according to Sonida.

Sonida reported a net loss of $18.4 million for third quarter, compared with a

net loss of $13.7 million in the third quarter of 2022. A non-cash impairment charge of

$6 million related to one owned community was a major factor affecting the higher net loss, the company said. 

The company reported third-quarter adjusted earnings before interest, taxes, depreciation and amortization of $9.3 million compared with $4.4 million for the same quarter a year ago.

Sonida had $3.6 million of unrestricted cash on hand as of Sept. 30.

“Our future liquidity will depend in part upon our operating performance, which will be affected by prevailing economic conditions, including those related to the COVID-19 pandemic, and financial, business and other factors, some of which are beyond our control,” the company said.

For additional coverage of the Sonida Senior Living earnings call, see McKnight’s Senior Living.

Sonida Senior Living names Tabitha Obenour chief clinical officer

Tabitha Obenour has been named chief clinical officer of Sonida Senior Living. 

Obenour joins Sonida from senior living provider Enlivant, where she was the company’s vice president of clinical quality and compliance. Prior to Enlivant, Obenour spent nine years at Genesis Healthcare. 

Obenour earned her undergraduate degree in nursing from Chamberlain University and her associate degree in nursing from Marion Technical College.

Retirement Unlimited Inc. promotes Angela Whitlock to senior executive director

Angela Whitlock has been promoted to senior executive director at Retirement Unlimited Inc.

Whitlock joined RUI in 2022 with more than years of experience in the senior living and medical care industries. She received her Bachelor of Science degree in biology from Radford University and her Master of Arts in gerontology from the University of Southern California.

The Ridge Senior Living names Micki Cianciosi executive director of The Ridge Foothill

Micki Cianciosi has been named executive director of The Ridge Foothill. 

Cianciosi has more than 30 years of experience in the senior living industry. Previously, she was an executive director at an assisted living and memory support community in Walnut Creek, CA. Prior to that, she took on several traveling executive director roles.

Cianciosi has an undergraduate degree in organizational development and her master’s work is in health services administration.

The Watermark at Bellevue appoints Shawn Jervis executive director

Shawn Jervis has been appointed campus executive director at The Watermark at Bellvue, an independent living, assisted living and memory care community in Bellevue, WA.

Jervis brings years of experience in senior living and luxury hospitality to the community, where he is responsible for overseeing day-to-day operations, upholding service standards, and furthering the community’s lifestyle. He also will guide the community’s new independent living tower, which will open in 2024 adjacent to the existing assisted living and memory care building. The new building will bring 155 independent living apartments.

Jervis joins The Watermark at Bellevue from Aegis Living in Mercer Island, WA, and previously Aegis Living Bellevue Overlake. Before working in senior living, Jervis spent 25 years in hospitality, leading renowned hotels across the country, including the Embassy Row Hotel in Washington DC, and Terranea Resort in Rancho Palos Verdes, CA. Recently, he oversaw the rebranding of YOTEL in Washington DC, which included a $40 million renovation.

Jervis also served in the US Marine Corps and is a Gulf War Veteran. He also served in the Hawaii Army National Guard.

The Watermark at West Palm Beach names Kevin Mitzner executive director

Kevin Mitzner has been appointed executive director at The Watermark at West Palm Beach, a community that opened in the spring in downtown West Palm Beach, FL.

Mitzner brings almost two decades of experience in senior living to The Watermark at West Palm Beach. He will be responsible for overseeing day-to-day operations of the community and ensuring that its members thrive. 

He joins The Watermark at West Palm Beach from Sunrise Senior Living’s Stratford Court at Boca Pointe. He most recently was the community’s associate executive director, a role he held for five years, directly overseeing the 155-bed assisted living neighborhood and supporting independent living and skilled nursing during transitions. 

The Watermark at West Palm Beach opened in March 2023 as part of Watermark’s Élan collection of senior living communities with a luxury wellness resort mindset.

Woodleigh Chase names Tyler Kypers associate executive director

Tyler Kypers has been named associate executive director of Woodleigh Chase, an Erickson Senior Living-managed community in Fairfax, VA. 

Kypers began his career with the company 15 years ago as a student server at the Cedar Crest retirement community in New Jersey. Most recently, he was director of finance at Siena Lakes in Florida. Before this role, he was a business office manager and a community financial analyst at Lantern Hill in New Jersey.

Kypers holds an MBA from William Paterson University and an undergraduate degree in history from Montclair State University.

Silverstone Senior Living names Toni McCarthy senior living sales counselor at The Seneca

Toni McCarthy has been named a senior living sales counselor at The Seneca, a Silverstone Senior Living community in Rockville, MD. 

Before joining The Seneca, McCarthy served in roles such as sales counselor and social worker in assisted living communities, nursing homes and rehab facilities. She brings almost two decades of experience in admissions and sales to her new position.

Send your personnel news to Lois Bowers at lois.bowers@mcknights.com. High-quality color headshots are welcome but not required.

Third-quarter occupancy gains on the heels of finalization of a comprehensive restructuring plan are creating “significant momentum” and optimism for near-term outcomes for Sonida Senior Living heading into the fourth quarter, the company said Tuesday.

The Dallas-based senior living owner/operator reported that it had finalized a previously announced comprehensive restructuring of its loan modification agreements covering all 37 communities with Fannie Mae mortgages. 

The loan modifications extend all maurities through December 2026 or later, with all principal payments deferred for three years or waived until maturity. Additionally, the near-term interest rate was reduced, and two $5 million principal payments against loan balances — one paid in June, with the second payment to be made in June 2024.

As previously announced, Conversant Capital committed to buy up to $13.5 million of common equity at $10 per share over an 18-month period. Sonida drew $6 million in July related to the first $5 million principal payment to Fannie Mae. The remaining funds may be drawn as needed for general working capital needs or to fund the second loan payment.

Ally Bank also agreed to temporarily reduce the minimum liquidity requirements for 18 months.

In a news release, Sonida said that the loan modification agreements, along with the modified liquidity requirements with Ally Bank, will contribute “significantly” to the company’s ongoing financial stability.The company is in discussion with Protective Life regarding potential modifications or repurchases as well.

The agreements follow a notice of “substantial doubt” about its ability to continue as a going concern in March and continued uncertainty about the company’s future in May, when Sonida detailed its plans to strengthen the company’s financial footing.

“Our performance throughout the year, coupled with the ongoing support from our investors and lenders, remains a key point of differentiation in the current economic climate,” Sonida Senior Living President and CEO Brandon Ribar said in a statement. “We believe Sonida is at an exciting inflection point with our balance sheet repositioning nearly behind us and continued portfolio performance improving, allowing us to pivot our focus towards growth.”

Ribar said that the company’s goal this year was to make improvements to its balance sheet, organizational structure and operations to position itself as the “consolidator of choice” in the industry.

Performance metrics

In a performance update, Sonida reported that spot occupancy in September was 86.8% for its owned communities and that average occupancy for the third quarter had increased 100 basis points from the second quarter. 

In addition, resident rates saw a year-over-year increase of 9.8% through the first nine months of 2023.

“The debt restructuring, along with strong Q3 occupancy gains, have created significant momentum for us as we move into the final quarter of the year,” Chief Financial Officer Kevin Detz said in a statement. “Our strong results and sequential improvement throughout the first nine months of the year are a testament to our ongoing focus on operational excellence and our team’s dedication to providing high-quality care and personalized service that enhances our residents’ quality of life.”

In a “pivotal” second quarter, Dallas-based Sonida Senior Living saw occupancy “surpass industry averages” from early 2023, an aggressive resident rate push and expenses moderate against a backdrop of “foundational” changes to create stability and growth opportunities, according to President and CEO Brandon Ribar.

The company’s occupancy and revenue growth year over year, along with the additional financial flexibility created by agreements with its two largest lending partners, have enabled the company to continue building on its operational momentum and prepare for strategic expansion, he said.

“Demand for senior housing continues to accelerate, and inventory supply remains low,” Ribar said in a statement.

Second-quarter optimism

Average occupancy for the company’s consolidated portfolio increased 120 basis points to 83.9% year over year, marking nine consecutive quarters of revenue growth in the second quarter. Resident revenue increased $5 million (9.5%) year over year, primarily due to increased occupancy and average rent rates. 

Ribar said he expects the 20 basis-point occupancy improvement from June to July and strong net move-in results to further expand in the third quarter. Almost 60% of its communities have occupancy of more than 80%, although occupancy at eight communities is at or below 75%. Those eight communities, however, improved 410 basis points in occupancy in the first half of the year, and Sonida expects further improvement in the third quarter.

Resident rent rates increased 7.6% year over year compared with the second quarter of 2022, with additional rate increases expected. Sonida has shown positive rate growth in seven of the past eight quarters. Ribar said he expects further rate growth in the third quarter through elevated care increases and additional reimbursed resident programming.

Second-quarter operating income improved 31% year over year and 16% sequentially to $13.2 million — the highest level in three years, according to Ribar. A focused effort on growing rental rates and capturing appropriate level-of-care revenue while maintaining or improving occupancy was the primary driver of margin improvement in the quarter, he added. 

Operating expenses for the quarter were $44.7 million, a 7.7% increase over the prior year’s quarter.

Ribar said that two significant labor management programs gained traction in the second quarter — the creation of dynamic staffing pools and the implementation of flexible shifts across clinical food service and maintenance — that resulted in stable labor costs in the first half of the year, with a 73% reduction in contract labor year over year.  

Amid the growth, Ribar said the trajectory for improvement fell below the 2022 state of recovery. The company reported a net loss of $12.2 million for the second quarter, compared to a $7.4 million net loss for the prior year’s quarter, which included $9.1 million in federal grants. 

Ribar told McKnight’s Senior Living the net loss incorporates a number of “unusual” items, including the extinguishment of debt associated with the Fannie Mae properties three years ago. He pointed to community net operating income on a year-over-year basis seeing strong improvement for the second quarter, which he said reflects the health of the business.

He added that the company controlled its expense profile well in the last year to increase margin expansion, which is “fundamental to a healthy growing business.”

“Our ability to control those expenses is important,” Chief Financial Officer Kevin Detz said, adding that in 2020 the company didn’t have today’s inflationary environment, the labor challenges exacerbated by COVID-19, or interest rate pressures. “We’ve been able to successfully navigate and set ourselves up for improving margins every quarter.”

Those improvements, Detz said, fed into Fannie Mae wanting to work out a deal with the company because there is a “flight to quality.”

Ribar said he’s optimistic. While the company saw good occupancy recovery that outpaced the industry average in 2021 and 2022, it had not yet delivered on margin recovery.

“I feel pleased the second quarter was able to show that strong improvement on the margin front,” Ribar told McKnight’s Senior Living. “We continue to see that as an important area to show we are differentiated.”

‘Foundational’ changes

According to its 10-Q filing Monday with the Securities and Exchange Commission, the company has undertaken several actions to address uncertainty about its ability to continue as a going concern, including implementing new strategic and operational plans to accelerate margin recovery upon the transition of its management team last fall.

At the end of the second quarter, the company completed the initial phase of debt restructuring, covering 49 assets financed by Fannie Mae and Ally Bank. The restructuring and forbearance agreement will provide the company with additional financial flexibility to build on its operational momentum and allow it to continue a “swift pivot” to pursue strategic growth opportunities, Sonida said. 

In connection with the Fannie Mae forbearance and the Ally amendment, the company entered into a $13.5 million equity commitment agreement with Conversant Dallas Parkway for 18 months.

Assuming good continued operating performance and completion of the loan modification agreement at the end of the third quarter, Ribar told McKnight’s Senior Living, issues tied to its going concern have been addressed.

“These agreements represent foundational improvement to the financial stability of Sonida and provide fuel for new growth efforts,” he said. “We believe the combination of strong and stable leadership across our operating platform, the strengthening of our balance sheet and significant margin expansion in the second quarter position Sonida for continued success and growth in 2023 and beyond.”

The company is working to identify growth opportunities, which it expects to come from management arrangements and acquisitions.

Invesque ends SymCare relationship

Invesque continued to streamline and strengthen its portfolio through dispositions, operator transitions and an acquisition in the second quarter, the company said Monday during its earnings call updating investors on the results for the three and six months ended June 30.

As Invesque continues to change its focus to predominantly private-pay senior living, the company sold seven skilled nursing facilities previously leased to SymCare during the second quarter, and the eighth and final property was sold in early July, after the quarter ended. Invesque no longer leases any properties to SymCare. The total sales price for the eight SNFs was $121 million.

April 1, the Invesque entered into a 15-year lease with Chapters Living to manage three stand-alone memory care communities that previously were managed by Memory Care of America. The properties are located in Texas and Arkansas.

Also during the quarter, Invesque acquired a 34-unit memory care community in Carrollton, TX, which it then leased to Constant Care Management as part of a long-term lease.

Chief Financial Officer and Executive Vice President of Investments Adlai Chester said that funds from operations and adjusted funds from operations each were $0.10 per share. Stabilized senior housing operating portfolio earnings before interest, taxes, depreciation and amortization (EBIDTA) coverage remained just below 1.0 times for the period ended March 31.

As of March 31, “the trailing 12-month occupancy for the stabilized triple net assets and stabilized SHOP portfolio saw traction during the quarter, which translated into favorable operating results,” he said.

Chester did not provide numbers for the second quarter, but he said that the combination of occupancy growth and rate growth led to net operating income increase of 5.5% by the end of the second quarter.

Between March 31 and June 30, Chester said, Invesque paid down its corporate credit facility by more than $122 million. Since the second quarter ended, the company has repaid an additional $19.4 million as part of the sale of the final SymCare property, he said, which brought the total pay-down to more than $141 million. 

“We believe these transactions substantially de-risk the portfolio that supports our corporate credit facility and positions us to work collaboratively with the bank group to extend the pending maturity of our corporate credit facility,” Chester said.

Invesque is working with KeyBank on an extension of the credit facility, which currently matures at the end of this year, he said.

“As part of the negotiation, we have agreed to restrictions on the amount of Sept. 30, 2023 convertible debentures that can be repaid. As an amendment to our current credit agreement, we agree that no more than 10% of the outstanding principal balance of those debentures will be repaid later this quarter,” Chester said. “This is a reduction in what had previously been agreed upon with the venture holders. But refinancing and extending the KeyBank credit facility is our highest priority. Our belief is that this was a necessary concession to lay the framework for finalizing a deal with Key.”

Invesque recently executed a non-binding agreement with Keybank to extend the credit facility until March 31, 2025. The company had shared details in an Aug. 7 press release.

For additional coverage of the earnings call, see McKnight’s Senior Living. 

Sonida sees 9 consecutive quarters of revenue growth

The second quarter was “pivotal” for Sonida Senior Living, CEO and President Brandon Ribar said on Monday’s earnings call.

“We moved forward with the most aggressive rate push in the company’s recent history, all while pursuing foundational changes in our capital structure to create stability and runway for growth,” he said.

The Dallas-based operator has now seen nine consecutive quarters of revenue growth.

The adjusted community net operating income, which excludes state grant funds, improved 31% year over year and 16% sequentially to $13.2 million, which Ribar said was the highest level in three years. Adjusted earnings before interest, taxes, depreciation and amortization increased 84% year over year, to $7.5 million.

Excluding the effect of nonrecurring state grants, revenue per occupied room increased 4% from the first quarter of 2023 and 9% compared with the second quarter of 2022.

Sonida has completed an initial phase of debt restructuring with Fannie Mae and Ally Bank, which covers 49 of the 62 senior living properties it owns.

“I cannot stress enough appreciation towards Fannie Mae and Ally Bank for their partnership in reaching terms that will benefit all stakeholders and address multiple facets of our debt,” Chief Financial Officer Kevin Detz said.

Sonida entered into a forbearance agreement with Fannie Mae on June 29 with plans to modify the company’s mortgage loan agreements by Oct. 1. The forbearance agreement includes extending loan maturities to December 2026 or beyond, a move that increases the average portfolio maturity by more than one year. 

“Addressing maturities was a significant priority for the company, as mortgages for 13 Fannie Mae communities were previously scheduled to mature in 2024,” Detz said. 

Further, Sonida will receive near-term interest rate reduction on all 37 assets, resulting in

$6.1 million in cash interest savings over the next 12 months, he noted.

Ally Bank granted Sonida a waiver of its minimum liquidity requirement of $13 million under its guaranty for 12 months, which Detz said “provides the company with financial flexibility as it sequentially improves its all-in cash profile.”

Conversant Capital, which is Sonida’s largest individual shareholder, provided an equity commitment of $13.5 million. According to Detz, this commitment will bolster Sonida’s liquidity with draws to be requested by the operator as necessary. 

“Beyond the short-term liquidity relief this recapitalization provides, it more importantly sets the company up for future long-term value creation and allows management to focus on its strategic growth initiatives in an unstable but opportunistic market,” Detz said.

For additional coverage of the earnings call, see McKnight’s Senior Living.

United Church Homes appoints Rev. Dr. Kenneth Daniel CEO, Kenneth Young president

The United Church Homes Board of Directors has decided to split the roles of CEO and president. The Rev. Dr. Kenneth Daniel has assumed the role of CEO, and Kenneth Young has assumed the role of president.

Previously serving as both president and CEO, Daniel also now is CEO of Radiant Alliance, an affiliation of nonprofit organizations currently including Metta Healthcare and United Church Homes.

Young is the former senior executive vice president and chief development and legal officer.

Morningstar Living CEO Susan Cooper Drabic steps down; David Swartley named replacement

Susan Drabic, president and CEO of Morningstar Living, stepped down from her position effective June 30 as the organization finalizes its formal affiliation with Moravian Manor Communities.

David Swartley has been named interim president and CEO of both Moravian Manor Communities and Morningstar Living and will be named the “permanent” president and CEO once the affiliation is complete.

Drabic served Morningstar Living for 36 years and will continue to work on a part-time basis through September to assist with the transition.

Swartley has worked at Moravian Manor Communities for 32 years, the past 15 of which he was president and CEO.

Lifespark hires Peter Lutz as chief information officer

Peter Lutz has joined Lifespark as chief information officer.

As former vice president and head of engineering for the Optum at Home and senior community care business lines within the Optum Home and Community, Lutz directed the architecture, development, testing, deployment and support of applications for those healthcare businesses.

Lutz earned a Bachelor of Science degree in finance from St. Cloud State University and an MBA from the University of St. Thomas.

Retirement Unlimited names COO, VPs

Michele Thompson has been promoted to chief operations officer at Retirement Unlimited Inc., and Amanda Brooks, Jamie Houston and Jennifer Mohler have joined Ray Tate as vice presidents of operations.

Thompson most recently was a regional vice president of operations for RUI. She has has more than 18 years of experience in senior living and has held several positions throughout her career.

Brooks was named a McKnight’s Women of Distinction Rising Star this year. She joined RUI in 2018 and also is the acting interim executive director at RUI’s Paul Spring community.

Houston joined RUI in 2017 and has more than 20 years of experience in both senior living and healthcare management. She most recently held the title of senior executive director at RUI.

Mohler joins RUI with more than 10 years of experience. She is a certified assisted living facility manager and will be providing operational oversight of nine RUI communities in Virginia and Florida, including one of the most recent acquisitions, Elancé at Boynton Beach, part of RUI’s Elancé luxury brand. 

Sonida Senior Living announces hires, promotions

Sonida Senior Living has announced several new hires and promotions. 

Jay Reed has been promoted from vice president of information technology to chief technology officer. 

Michael Karicher has joined the company as chief people officer.

Carole Burnell, Dawn Mount and Donna Brown have been promoted to vice presidents of operations, each running one of the company’s three geographic operating regions.

Reanae Clark has joined the company as vice president of business development and acquisitions.

Lifespace Communities names Janelle Bertolino VP of business operations

Jenelle Bertolino has joined Lifespace Communities as vice president of business operations.

In this role, she is responsible for leading operations initiatives related to employee and resident relations, financial management and procurement, business development and business strategy.

Bertolino earned her MBA from Benedictine University and an undergraduate degree in healthcare management from Southern Illinois University.

BHI Senior Living names Brian Pangle VP of philanthropy and development

Brian Pangle has been named vice president of philanthropy and development for the BHI Foundations. 

Formerly president and CEO of Clark Retirement in Grand Rapids, MI, Pangle has worked in the senior living field for 10 years. Before joining Clark, he was a senior executive with the Select Medical Corp.

LCB Senior Living names Michele Gannon VP of quality control and care

Michele Gannon has been named vice president of quality control and care at LCB Senior Living. 

Gannon joins the LCB Senior Living team with more than 25 years of experience in resident care and operations. She most recently worked for Salmon Health and Retirement. 

Springpoint names Michael Oakes chief philanthropy officer; Sandi Ko promoted to VP of HR

Michael Oakes has been named chief philanthropy officer of the Springpoint Foundation and Sandi Ko has been promoted to vice president of human resources at Springpoint Senior Living. 

Oakes previously was executive director of the Ocean Medical Center Foundation (part of the Meridian Health Affiliated Foundations) and chief operating officer/vice president of development at the Make-A-Wish Foundation of New Jersey. He received his MBA from Seton Hall University’s W. Paul Stillman School of Business.

Ko, before joining Springpoint, was the senior regional director of human resources, assistant executive director and benefits manager at a multi-site operator of life plan communities. A graduate of the City University of New York’s John Jay College of Criminal Justice with an undergraduate degree in public administration, she is Certified in Healthcare Compliance, holds an assisted living administrator certification and is certified by the Society for Human Resources Professionals.

Erickson Senior Living promotes Holly Henderson to regional VP of sales

Holly Henderson has been promoted to regional vice president of sales at Erickson Senior Living. 

For the past 12 years, Henderson has served as the sales director at Ashby Ponds, an Erickson-managed continuing care retirement community in Ashburn, VA. She holds an undergraduate degree in health services administration from James Madison University.

MBK Senior Living names Yovan Luyt regional director of operations

Yovan Luyt has been named regional director operations for MBK Senior Living. 

Luyt has more than 20 years of senior living experience and holds an undergraduate degree in psychology and a master’s degree in sports psychology. 

Synchrony Health Services names Whitney Mardis senior VP of sales

Whitney Mardis has been named senior vice president of sales at Synchrony Health Services. 

Mardis has held various sales leadership and clinical positions within the biopharma industry, including roles at US WorldMeds, Biogen, Abbvie and Luitpold Pharmaceuticals. Most recently, she was the vice president of patient services at PharmaCord.

Mardis graduated cum laude from the University of Kentucky with a Bachelor of Science degree in dietetics and holds an MBA from the Indiana University Kelley School of Business. 

WesleyLife’s Summit of Bettendorf names Brandon Luke executive director

Brandon Luke has been named executive director at Summit of Bettendorf, a WesleyLife community.

Luke previously worked at New Perspective Senior Living in Milwaukee. Before that, he served in executive positions with senior living organizations throughout the Midwest.

Luke graduated from the University of Northern Iowa with a Master of Social Work degree and earned a master’s degree in nursing home administration from the University of Wisconsin–Madison.

Lantern at Morning Pointe Chattanooga names Angie Gay executive director

Angie Gay has been named executive director at The Lantern at Morning Pointe Chattanooga in Tennessee. 

Gay has been a nurse for 24 years, working in geriatrics, assisted living and hospice care. At one point, she was a floor nurse at The Lantern at Morning Pointe of Chattanooga.

Lantern at Morning Pointe of Clinton names Lones Green executive director

Lones Green has been named executive director of The Lantern at Morning Pointe of Clinton in Tennessee. 

Green most recently was community relations director at the community. With an undergraduate degree in psychology and a minor in behavioral neuroscience from the University of Tennessee, he has worked as a case manager and as a director of cognitive programming for those with traumatic brain injuries.

Anthem appoints Emily Potempa as executive director of Churchill Place

Emily Potempa has been named executive director at Churchill Place, an Anthem Memory Care community in Glen Elyn, IL. 

Potempa previously was executive director with Encore Memory Care in Bolingbrook, IL. She also served as director of resident services for Brookdale Senior Living in Lisle, IL.

She brings more than 12 years of senior living experience to her new position. She earned a Bachelor of Science degree in science, technology and society, with a focus in public health, from Butler University 

The Springs Living announces the move of two executive directors

The Springs Living announces the transition of two executive directors to new areas of the organization.

Scott Warden has been named executive director of The Springs at Greer Gardens in Eugene, OR, following three years in the same role at The Springs at Missoula in Montana.

Jessica Miles will succeed Warden as leader of the Missoula community, moving from her role as executive director of The Springs at Grand Park in Billings, MT.

Warden brings 20 years of experience working with older adults to his new role, in which he is responsible for all aspects of the community. He earned a master’s degree in divinity from McGill University in Montreal and an undergraduate degree in administrative studies from the University of Western Ontario.

Since joining the company in 2016, Miles has served in multiple areas, including as business office manager and community relations director. In addition to undergraduate studies in pre-engineering through the University of Montana in Missoula, Miles has an Associate of Science degree in accounting from Dawson Community College in Glendive, MT.

Lifespace Communities names 4 to board

Amy McDonough, Claus Jensen, Clyde Stretch and Jennifer Salamino have been named to the board of directors at Lifespace Communities. 

McDonough is managing director and general manager for Fitbit Health Solutions at Google. Jensen is chief innovation officer at Teladoc Health. Stretch is a resident at Harbour’s Edge, a Lifespace community in Delray Beach, FL. Salamino is president of SaVida Health. 

Caregiver Action Network names Marvell Adams Jr. CEO

Marvell Adams Jr. has been named CEO of the Caregiver Action Network. Previously, he was the chief operating officer of the Kendal Corp.

Adams has volunteered with many organizations, including Meals on Wheels, the Special Olympics, the Alzheimer’s Association, the MD Food Bank, the Epworth Children’s Center and the American Red Cross.  

Adams has a master’s degree in healthcare administration, with a specialty in aging services, from the University of North Carolina–Chapel Hill and an undergraduate degree in political science from the College of Charleston.

Raymond James hires 3 senior living bankers

David Fields, Rob Whitlock and Naomi O’Dell have joined Raymond James as managing directors as the firm expands its public finance practice depth.

The team joins Raymond James from RBC Capital Markets and will work across the practice’s dedicated senior living and debt restructuring groups, which provide advisory services for clients, including debt restructuring, affiliations, partnerships, mergers and acquisitions, dispositions, bond transactions and alternative capital raising activities. 

Fields previously was managing director at RBC, focusing on high-yield origination activity and debt restructuring engagements. His 30-year career also includes positions at UBS and HJ Sims. He has an undergraduate degree from the University of Rochester and an MBA from Union College.

Whitlock has almost three decades of senior living investment banking, financial advisory and consulting experience and has been involved in several hundred senior living financings and engagements. He earned his undergraduate degree from the University of Delaware and an MBA from Clemson University.

O’Dell has specialized in healthcare and not-for-profit finance for more than 20 years. She began her career at LaSalle Bank as a commercial banker and is a graduate of Bradley University.

LeadingAge New Jersey & Delaware appoints Elizabeth Fandel to Board of Trustees

Elizabeth Fandel, chief marketing and innovation officer at FellowshipLIFE, has been appointed to the board of LeadingAge New Jersey & Delaware.

Fandel has more than a decade of leadership experience in New Jersey’s senior living industry.

Discovery’s Robert Miller and Cody Tower accepted into ASHA Rising Leaders Program

Robert Miller and Cody Tower of Discovery Senior Living have been nominated and accepted into American Senior Housing Association’s Rising Leaders Program. This program aims to foster the growth and development of the next generation of leaders in the senior living industry.

Marshall Legard honored as first recipient of Bright Star Award

Marshall Legard is the inaugural recipient of the Florida Senior Living Association‘s Emily Adkins Bright Star Award. The award is given to recognize a young professional within the Florida assisted living industry who is passionate about his or her work and competent “beyond their years.”

Legard is executive director at the Grand Villa of Altamonte Springs. A University of Central Florida graduate, he has worked at the assisted living community for more than four years.

Along with the recognition of his passionate service, Legard received an award of $250.

Emily Adkins, the namesake of the award, passed away in October 2022 at age 23 due to a preventable blood clot that followed a broken ankle. Adkins aspired to one day become a leader in Florida’s assisted living industry, and FSLA lans to give the award every year at its conference to honor her memory and encourage professionals.

Bridges by Epoch residents, staff recognized by Connecticut Assisted Living Association

The Connecticut Assisted Living Association has recognized a senior resident and several employees at Bridges by Epoch memory care assisted living communities in Trumbull and Norwalk, CT, for their achievements in senior living.

Ovidio “Vidio” Peverini, a Bridges by Epoch at Trumbull resident, was given an Outstanding Resident Achievement award. Two employees of Bridges by Epoch at Trumbull, dining service director Gary Seri and caregiver Kendreal McKoy of Trumbull, and one employee from Bridges by Epoch at Norwalk, caregiver Joel Mathurin, were selected to receive the special honor of Outstanding Resident Service award.

Send your personnel news to Lois Bowers at lois.bowers@mcknights.com. High-quality color headshots are welcome but not required.

Dallas-based Sonida Senior Living on Wednesday announced several steps that the company has taken or plans to take to try to improve its financial position and set itself up for growth.

For one, the company is restructuring the debt financed by Fannie Mae and Ally Bank, which covers 49 of the 62 senior living properties it owns. Sonida entered into a forbearance agreement with Fannie Mae on June 29 and hopes to modify the company’s mortgage loan agreements by the end of the third quarter.

The restructuring and forbearance agreement will “provide the company with additional financial flexibility to build on its strong operational momentum and pursue its strategic growth plan,” the company said in a press release. According to Sonida, action on the Fannie Mae agreement will result in approximately $40 million of additional cash flow over the next three years.

In a March filing with the Securities and Exchange Commission, Sonida had cited upcoming debt maturities as one of the reasons the company had “substantial doubt about our ability to continue as a going concern.” The firm also cited the inflationary environment, elevated interest rates and continued financial effects of the COVID-19 pandemic as reasons for the uncertainty.

In a fourth-quarter and full-year 2022 earnings call that same month, however, executives expressed optimism about the company’s future. The leadership team’s main goal for 2023, Sonida President and CEO Brandon Ribar said at the time, “is to accelerate the timeline for producing positive cash flow net of all recurring capital expenditures and debt service.”

Wednesday, Sonida also announced that it had obtained a $13.5 million equity commitment from Conversant Capital, its largest shareholder, and modified the covenants on its loan with Ally Bank. Sonida will have the right to use Conversant’s equity commitment but will not be obligated to use it.

Under the terms of the agreement, Sonida will make reduced debt service payments through the forbearance period. In consideration for the forbearance, the company gave $5 million to be applied to the existing loan balances.

Highlights of the subsequent loan modification, according to Sonida:

• $33 million in cash savings will be realized because all contractually required principal payments under the 37 Fannie Mae loans will be deferred for three years or waived until maturity.
• $6.1 billion in cash interest savings will be realized by Sonida over the next 12 months under a near-term interest rate reduction on all 37 properties.
• In consideration for the loan modification, Sonida will make a second $5 million payment on June 1, 2024, against the existing loan balances.
• The company expects the loan modification to be finalized by Sept. 30.
• All maturities will be extended to at least December 2026.

In connection with the completion of the Fannie Mae forbearance and the Conversant equity commitment, Ally Bank will temporarily reduce the minimum liquidity requirement under its $88.1 million credit facility for 18 months.

“We appreciate the collaborative approach from our lending partners to make these commercially compelling modifications to our debt structure,” Ribar said. “These developments provide the company with greater financial flexibility and runway to continue delivering operational improvement while providing the balance sheet capacity to pursue attractive growth opportunities, including both asset acquisitions and third-party management contracts.”

Sonida said it intends to draw $6 million in July in conjunction with the first $5 million principal payment to Fannie Mae. The remaining funds may be drawn as needed for general working capital needs or to fund the second $5 million loan paydown to Fannie Mae.

The company also said that it is in discussions with Protective Life Insurance Co. to try to resolve its noncompliance on $72.1 million in mortgage loans for four of the company’s senior living communities. In March, Sonida had reported that it had defaulted on the loans after electing not to make principal and interest payments in February and March. Outstanding debt related to those loans had been $70 million as of Dec. 31.

Sonida said it will provide additional updates in August during a second quarter earnings call, the date of which has not been announced publicly yet.

Read more details about Wednesday’s announcement here.

“We strongly believe that the successful execution of these ongoing initiatives should enable the company to remove any doubts on its ability to continue as a going concern, accelerate the trajectory on cashflow generation and allow for the swift pivot to strategic growth,” Chief Financial Officer Kevin Detz said Thursday on the earnings call.

President and CEO Brandon Ribar said that the company is focusing on three areas as it aims for success: “accelerated margin expansion to generate positive cash flow from operations, a strengthened balance sheet with a more attractive debt profile, and portfolio expansion through strategic management arrangements and accretive real estate acquisitions.”

Sonida saw positive signs in the first quarter, executives said, when the company:

• Saw margin expansion of 600 basis points over the fourth quarter of 2022.
• Achieved its eighth consecutive quarter of occupancy growth, coupled with an increase in revenue per occupied room of 6.4% over the fourth quarter of 2022, the strongest increase in the company’s “recent history.”
• Experienced an occupancy rate of 84% in its owned portfolio, with an expectation of further growth in the second quarter and throughout 2023.
• Realized a 6% increase in revenue compared with the fourth quarter of 2022.
• Had a 26% increase in community net operating income and a 7.5% increase in adjusted NOI.
• Saw community-level turnover decrease by almost 10 percentage points. Ribar said that of more than 330 local and regional leadership roles, only eight positions are open.
• Experienced the first decline in total labor costs compared with the previous quarter for the first time “in recent years,” led by an additional 50% reduction in contract labor on top of the 25% reduction already seen in the fourth quarter of 2022. The company is “laser-focused on reducing contract labor to pre-pandemic levels,” Detz said. “We’ve now seen two consecutive quarters where contract labor has decreased $530,000 and $670,000, in Q4 2022 and Q1 2023, respectively,” he said. Direct labor costs have remained “relatively flat” during that time, he added.
• Generated more than $3 million in cash from operations, a year-over-year improvement of $4 million.
• Grew the revenue stream related to its revamped level of care program by 4%, with “opportunity to further push our level of care revenues across the portfolio as the program matures and evolves.”
• Beginning March 1, implemented an acceleration of resident rate increases on in-place leases greater than 12 months, resulting in an overall rate increase of 9.1% on approximately 1,500 leases, “directly contributing to adjusted RevPOR increases of 5.6% and 2.6% over Q1 2022 and Q4 2022, respectively,” Detz said. Another tranche of leases will be available for rent acceleration this summer, potentially increasing RevPOR, he added.
• Realized $36.3 million for the gain on debt extinguishments when Fannie Mae transitioned to new owners the final two of 18 communities that were in receivership after Sonida elected not to pay $3.8 million on related loans.

Run rate revenue was up more than 10% year over year, and the operating margin was at 24.3% in March, up 440 basis points from the fourth quarter of 2022 and 530 basis points from the first quarter of 2022, Ribar said.

“We view March results as our new baseline,” the CEO said.

Moving forward, Detz said, the company is taking additional actions to strengthen its financial position, including watching costs for food and other expenses as well as having regional leaders follow customized performance plans for “a small subset of underperforming communities” in an effort to “push our run rate occupancy north of 85% in the second half of the year.”

The company also is continuing discussions with each of its three material lending partners “with a goal of providing the short-term liquidity needed to bridge to positive cash flow generation, and more importantly, capital structure stability that supports planned strategic growth,” Ribar said.

Growth opportunities in 2023, he said, “will come from a combination of additional strategic management arrangements and the acquisition of real estate with an accretive investment profile. Many owners, operators and lenders across senior living are actively identifying strategic alternatives for their existing assets, and our goal is to present Sonida as a primary transaction partner in the near term.”

In the meantime, according to the SEC filing, as of March 31, the company was in default on a mortgage for four communities on which it elected not to make principal or interest payments, with an aggregate outstanding principal amount of $69.8 million. The company said it is in discussions with the lender, Protective Life Insurance Co., to resolve the matter.

Sonida was in compliance with all other financial covenants required under its mortgages, Detz said.

“The improvement in run rate cash flows from operations, coupled with a comprehensive restructuring of our mortgage loans, would return the company to overall cash flow generation for the first time in the company’s recent history,” Ribar said. “The combination of strong and stable leadership across our operating platform, substantial progress in discussions with our lending partners, and significant margin expansion in Q1 positions Sonida for continued success and growth in 2023 and beyond.”

For more coverage of the earnings call, see the McKnight’s Business Daily.