Excluding these non-recurring credits, effective NOI margin for the quarter, was 25.7%. Diving deeper into revenue growth drivers, we move to Slide 14. The company identified two primary initiatives, as part of its revamped revenue management process, aimed at better aligning our revenue model, with the increasing cost of care for our residents. First, we successfully raised base resident rates by 8.3% year-over-year. Second, through the simplification and formalization, of our Assisted Living Level of Care program, we were able to capture an additional $1.9 million in care revenue. Expansion of tech-based clinical labor productivity pilots in ’23, will set up the company to further capture the true clinical cost of resident care, and related revenue in 2024.
Diving into more of the margin drivers, we will move ahead to Slide 15, to discuss year-over-year labor trends. We are extremely pleased that in this tight labor market and hyperinflationary period, we have been able to control our labor costs. Total labor, excluding benefits, moved from a ’22 high mark of 47.5% of revenues to just under 46% in 2023. Contract labor, which decreased nearly $6 million year-over-year, continues to be limited to a handful of communities where market-specific labor constraints persist. In 2024, the company is focused on optimizing labor hours, to meet the real-time needs of our residents, amidst higher occupancy levels, which should support a lower incremental cost per resident. Through our technology partnerships and internally developed labor dashboards, we are also focused on addressing, the premium labor cost base, which remains an industry headwind coming out of COVID.
Premium labor was $9.5 million for the year, and includes the cost of shift bonuses, overtime, and spot bonuses that would otherwise be replacements, for lower-rated employee salaries and wages. Moving ahead, to all other expenses on Slide 16. As a percentage of revenue, our non-labor expenses have decreased 300 basis points, from 30.5% in ’22 to 27.5% in ’23. Despite the headwinds of elevated inflation over the same period, management implemented various strategic and tactical initiatives discussed on previous calls, to create a non-labor base that should provide for incremental margin, on both expanded occupancy for same-store communities, as well as inorganic community acquisitions. Moving on to Slide 17, you’ll see some presentation changes from prior earnings calls, to reflect the favorable pro forma impact on our leverage profile as a result of the protective life loan purchase completed last month.
As a result of the February 2, transaction, our debt is comprised of 72% fixed rate debt, with the remaining variable rate debt fully hedged, yielding a weighted average interest rate of 5% for the portfolio. Most importantly, the company continues to execute on its long-term strategy of de-levering the balance sheet. Finally, as of today, the company is in compliance with all financial covenants required under its mortgages. In summary, the company continues to be encouraged by the consistent improvement, across all significant KPIs over the last 12 months. The expected continuation of revenue and margin growth, 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.
As Brandon detailed in his comments. Back to you, Brandon.
Brandon Ribar: Thanks, Kevin. 2023 was a transformational year for Sonida. We achieved significant performance milestones, while accomplishing key strategic objectives, and delivering industry-leading care and services, to our residents. These achievements included balance sheet optimization, through the comprehensive restructuring and modification of our debt, and culminating in the $47.75 million equity private placement, that closed in the first quarter of 2024. The operational developments and greatly strengthened balance sheet established Sonida, as a differentiated operator, owner, and investor in senior living, and positioned the company to capitalize on near-term dislocation, which will drive the next chapter of value creation, for our shareholders. Rob, please open the line for questions at this time.
Operator: Thank you. [Operator Instructions] We do have a question from Steve Monroe with Levin. Please proceed with your question.
Steve Monroe: Hi, guys. Good going. Great progress. I might have missed it, but did you say what your current occupancy is as of today, as opposed to end of fourth quarter?
Brandon Ribar: We did not, Steve.
Steve Monroe: Okay. Can you disclose that or no?
Brandon Ribar: We can’t at this time.
Steve Monroe: Okay. All right. And any kind of forecast of where you, think it might be at the end of the year, which you’re hoping to get to?
Brandon Ribar: Yes, Steve. We’re not providing guidance at this time. I think, you know, we are our goal is to continue to see progress similar to, as we did in 2023. So, we think that as we referenced the March increases, came through without any material concerns, around attrition on that front. So, I think we’ll be in a position, to provide additional numbers here in the near future just around, how Q1 is playing out as well.
Steve Monroe: Okay. And then the Q2 acquisitions, or joint ventures or whatever do you’re expecting to close in Q2, is there anything in the pipeline for the rest of the year after that?
Brandon Ribar: There’s a significant pipeline at this point in time, Steve. We’re excited about all the opportunities that, we’re taking a look at. So those units represent just things that we have under LOI currently, and that excludes all the other things in the pipeline that we’re looking at, for the remainder of the year, as well as the second quarter.
Steve Monroe: Okay. And then for any acquisitions, do you have any lenders in mind that you’re working with, or not that far yet?
Brandon Ribar: I think we have a couple of different options. And so, there are cases where the lenders want to continue to stay in the transaction, and are offering financing from the, that’s based on the existing structure. And then we also have relationships with, our existing banking partners and others interested in what Sonida has been accomplishing that are building a relationship, with us that also are offering opportunities, to finance deals moving forward. So it’s both seller financing and existing banks staying in, and then new opportunities as well.
