Investments and Acquisitions |
3 Months Ended |
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Mar. 31, 2025 | |
| Business Combination [Abstract] | |
| Investments and Acquisitions | Investments and Acquisitions Investment in Consolidated VIE In July 2024, the Company entered into the Palatine JVs with affiliates of Palatine Capital Partners, which acquired four senior living communities located in Texas (3) and Georgia (1). The Company is a 51% owner in the joint ventures. The noncontrolling interest of the Palatine JVs is reported on the noncontrolling interest line items in the Company's condensed consolidated financial statements. Investment in Stone Unconsolidated Entity In May 2024, the Stone JV purchased four communities in the Midwest. KZ Stone Investor LLC is the controlling managing member of the Stone JV and owned 67.29% of the entity as of March 31, 2025. Sonida owned a 32.71% noncontrolling interest in the Stone JV as of March 31, 2025. Sonida operates the four communities for a management fee based on the gross revenues of the applicable communities, as well as an incentive management fee based on earnings before interest, taxes, depreciation, amortization, rent, and management fees, and other customary terms and conditions. The Company has evaluated its investment in the Stone JV under ASC 810 and determined that it does not have the power to direct the activities of the VIE that most significantly impact its economic performance and is not the primary beneficiary of the VIE. The Company's interests in the VIE are, therefore, accounted for under the equity method of accounting. The carrying amount of the Company's investment in the unconsolidated venture and maximum exposure to loss as a result of the Company's ownership interest in the Stone JV was $10.2 million as of March 31, 2025, which is included in investment in unconsolidated entity on the accompanying condensed consolidated balance sheet. For the three months ended March 31, 2025, the Company received a return of its investment of $0.4 million in its unconsolidated entity. The Company evaluates the realization of its investment in unconsolidated entities accounted for using the equity method if circumstances indicate the Company's investment is other than temporarily impaired. For the three months ended March 31, 2025, there were no impairments. Purchase and Sale Agreement During the quarter ended March 31, 2025, the Company signed a purchase and sale agreement for one community located in Georgia with a purchase price of $11.0 million. The acquisition is anticipated to close in the second quarter subject to due diligence and closing conditions.
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