Sonida Senior Living, Inc.

Thank you for standing by. My name is Eric and I will be a conference operator today. At this time, I would like to welcome everyone to the Sonita Senior Living second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I'd now like to turn the call over to Jason Finkelstein, Investor Relations. Please go ahead.

Thank you, Operator. All statements made today, August 11, 2025, which are not historical facts, may be deemed to be forward-looking statements within the meeting of federal security laws. The company expressly disclaims any obligation to update these statements in the future. As for results, the performance may differ materially from forward-looking statements. Certain factors that can cause actual results to differ are detailed in the earnings release that the company issued earlier today, as well as in the reports that the company files with the SEC from time to time, including the risk factors contained in the annual report on Form 10-K and quarterly report on Form 10-Q. Please see today's press release for the full safe harbor statement, which may be found in the 8K filing from this morning at the company's investor relations page found at investors.sonitaseniorliving.com. Please note that during this call, the company will present non-GAAP financial measures. For reconciliations of these non-GAAP measures for the most comparable GAAP measure, please see today's earnings release. If you'd like to follow along during today's call, you can find Sunita's second quarter 2025 earnings presentation in the investor relations section of the company's website. In addition, we have included supplemental earnings information within our presentation consistent with prior quarter releases. On today's call, I'm joined by President and CEO Brandon Rebar and Chief Financial Officer Kevin Deeks. At this time, I'd like to turn the call over to Brandon for opening remarks.

Thank you, Jason. Good morning, and thank you for joining us on our second quarter earnings call. Entering the year, we outlined a plan to deliver year-over-year net operating income growth in line with the high end of our peers. And as we approach the last third of 2025, we remain on track to achieve these goals. The second quarter of 2025 continued to deliver growth on both a sequential and year-over-year basis. Adjusted EBITDA grew 26.1% year-over-year in the second quarter, reflecting our ability to maintain G&A levels while driving NOI growth, and despite a difficult year-over-year comp, same-store net operating income grew 1.8% year-over-year and nearly 4% sequentially. On a total portfolio at share basis, NOI improved 5% sequentially. The year-over-year NOI growth was considerably slower than recent quarters, driven by the challenging comp of an especially strong NOI margin in Q2 2024, as well as some specific challenges over the past quarter. Kevin will elaborate further on the details of the results, but I want to touch on a few key elements of the past quarter that we do not expect to repeat moving forward. First, Our business experienced an unusually high uptick in resident deaths, with resident move-outs exceeding Q2 of 2024 by 18% in our same-store portfolio, limiting our year-over-year occupancy growth. Our clinical teams implemented an enhanced response process with more targeted efforts to assess risk in our resident population, especially in those communities with elevated move-outs. These efforts contributed to improvement in the back half of the quarter and these improved processes will remain in place moving forward. Resident length of stay has slightly increased overall this year and remains an area of intense focus. Combined with a 4% year-over-year increase in quarterly same-store move-ins and strong lead volume, we ended the quarter positioned for strong summer growth, which I will touch on in a moment. The second component of the NOI comparison with prior year was the completion of significant investments in technology that have improved the quality of our operations and resident programming, but created a cost drag when comparing year over year. We expect to see continued return on these investments moving forward, driven by both rate and level of care fees, as well as further benefiting our labor management practices. Finally, we completed significant changes to our operating and sales support overhead structure to further invest in our sales and marketing capabilities while maintaining G&A levels flat on a run rate basis. To improve consistency of systems, process, and communication across the organization, we reduced our operating structure from three to two divisions while investing further in our sales and marketing and training capabilities. These changes allow us to more quickly integrate new communities into the portfolio and drive successful sales and clinical practices across the business. Three months into the change, we are clearly seeing the desired outcomes, and I'm proud of our team for not just minimizing the disruption to the business, but reacting nimbly to drive accelerated growth thus far in Q3. At the end of July, we hit a record high occupancy for our same store portfolio of 88.2%. This positions the business for a strong back half of the year and for continued sequential NOI growth in Q3. I'm also encouraged that we achieve growth in June and July while also driving our average rate, or REVPOR, to the highest quarterly level in the portfolio's history in Q2. These two key metrics position the business to deliver significant revenue and margin growth in the back half of the year and beyond. Switching to performance on the acquisition front, Our portfolio of 19 operating communities acquired in 2024 recently reached another milestone at the end of July, finishing the month above 82% occupied at share for the first time. The increased occupancy from a baseline of 77.5% on November 1st of 2024, at the time we completed the last of our 2024 acquisitions, combined with ongoing rate growth, should accelerate NOI growth in this segment for the second half of 2025. Kevin will provide further detail on the expense side of the business within the acquisition portfolio. And overall, the transactions remain in line or exceed underwriting on the whole. Our strategic inorganic growth plan remains on track as we completed two acquisitions in Q2 and today announced the third acquisition set to close in Q3. Each of these acquisitions reflect our commitment to purchasing high quality, newer vintage assets, in strong markets where our operating capabilities can drive significant NOI growth. We continue to identify deals with stabilized cap rates exceeding 10% while densifying in target markets, leveraging our G&A and the strength of our regional operating leadership. Finally, in July, we celebrated the opening of our newest community located in Cincinnati. The community was purchased at the end of 2024, and we obtained licensure, followed by welcoming 11 new residents from our waiting list last month. Before I turn the call over to Kevin, I'll spend just a few minutes on our sales efforts and team development, both critical to Sunita's growth story and bright future. On the sales front, we invested in marketing, sales training, and regional management roles in Q2, and have seen immediate results from improvement in each phase of the sales process. Lead volume in July exceeded our average for the first half of 2025 by 16%. driven by enhanced digital marketing processes. More importantly, digital leads through non-aggregator channels increased by 48% in July, and move-ins through Sunita channels comprised 67% of the total. The bottom line is our move-ins hit an all-time high without increasing reliance on third-party paid referral relationships or material discounting and concessions. These additional resources will focus substantial time and effort on the outlier performers within the total portfolio and will enhance our capabilities for accelerating performance in new acquisitions. Our bottom 10 communities in occupancy, including six acquisition communities acquired with significant vacancy, represent one-third of our total vacant units. Each community is located in a growing market with strong opportunity for improvement in the second half of 2025. Additionally, nearly half of our communities remain over 90% occupied, with a record eight communities operating at 100%. Switching to team development, we continue to experience material reductions in both employee turnover and leadership turnover within our communities. Kevin will share additional details on company-wide trends, and I am confident these retention levels are a result of the investments we have made in wages, benefits, and the positive and supportive culture at Sunita. As mentioned in previous calls, our incentive plans are structured to promote the development of stable, tenured community teams. We believe investment in our community leadership and nursing talent to deliver a high quality offering consistently supports resident rate growth and reduces the cost of employee turnover. I'll now turn the call over to Kevin for detailed discussion of our Q2 financial performance.