Sonida Senior Living, Inc.

Hello, everyone. Thank you for joining us and welcome to Sonita Senior Living Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, please press star one again. I will now hand the conference over to Megan Caldwell, VP of Investor Relations. Megan, please go ahead.

Thank you, operator. All statements made today, May 11, 2026, which are not historical facts, are forward-looking statements within the meaning of federal securities laws. The company expressly disclaims any obligation to update these statements in the future, except as required by law. Actual results or performance may differ materially from forward-looking statements. Certain factors that could 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, including the risk factors contained in the annual report on Form 10-K and quarterly reports on the Form 10-Q. Please see today's press release for the full Safe Harbor and forward-looking statements, which may be found in the Form 8-K filing from this morning or at the company's investor relations page found at investors.sonitaseniorliving.com. As further described in the company's current report on Form 8K filed with the SEC this morning, the company completed its previously announced acquisition of C&L Healthcare Properties Inc., or CHP, on March 11, 2026. The transaction was completed through a series of steps ending with a forward merger of CHP with and into a subsidiary of Zanita, and as a result, the company now directly owns all the assets of CHP. Unless otherwise specifically noted or the context otherwise requires, the financial results we are discussing today and that are included in our presentation reflect the combined company on a pro forma basis for the full quarters, including CHP for the entire reporting period. These pro forma metrics giving effect to the CHP acquisition are preliminary and subject to change, and we have provided estimated ranges in our earnings release. For the sake of clarity, during this earnings call, we will discuss our pro forma results based on the midpoint of the range presented, but we refer you to our earnings release for the ranges and more information. Please note that our GAAP financials reflect CHP's results from the closing date only. References to pro forma metrics, including those presented in the investor presentation, reflect a full quarter of CHP activity. Please note that during this call, the company will present non-GAAP financial measures. The reconciliations of these non-GAAP measures for the most comparable gap measure, please see today's earnings release. If you'd like to follow along during today's call, you can find Sunita's first quarter 2026 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. I would now like to turn the call over to Sunita President and CEO, Brandon Rebar.

Thanks so much, Megan, and we are excited to welcome you to the Sunita leadership team. Good morning, and thank you for joining us on our first quarter 2026 earnings call. This quarter marks an important milestone for Sunita as we report results following a period of transformational expansion. With platform integration underway and on track, and our operating foundation firmly in place, we are entering what we described in our recently published shareholder letter as phase three, compounding. In phase one, survival, and phase two, stabilization, our team focused on strengthening the foundation of the business, stabilizing operations, repairing and fortifying the balance sheet, upgrading portfolio quality, and investing in the operating capabilities required to compete effectively at scale. Today, we are shifting from building that foundation to now leveraging it to compound value for our shareholders. As a scale, pure play, senior housing owner and operator, we enter this next phase supported by a stronger balance sheet, expanded liquidity, and a differentiated operating platform. Performance for the company continues to trend positively, supported by our constructive early momentum in 2026. Leveraging that stable operating foundation, we are heavily focused on a smooth integration of recently added communities into the Sonita platform and unlocking a defined set of unmodeled synergies across our cost structure and operating model. These initiatives span asset management and community level operations and are designed to support margin expansion and cash flow growth over time. Equally important, we are reinforcing performance through clearly defined incentive structures tied to community level outcomes and dedicated operational support to sustain results while minimizing disruption as operational integration progresses. Underpinning all of this is the quality of our people. We entered phase three with a meaningfully strengthened leadership team across operations, leaders who have deep experience at driving performance at scale. That investment in talent is not incidental to our growth strategy. It is the foundation on which phase three is built. The CHP transaction was not simply an owner-operator combination. We acquired REIT, and with it, a network of third-party manager relationships that preserves institutional knowledge and operational continuity across the portfolio. Those relationships are key to the performance trajectory of these communities, whether or not they ultimately move to CINEDA operations. And as some of those relationships mature into long-term strategic partnerships, they are a growing source of deal flow. Our recent preferred equity investment is a good example. Through one of these managers, we invested capital to support the refinancing of a high-end, full continuum community in Texas while earning an attractive risk-adjusted return. This is the kind of bespoke, relationship-driven investment Sunita is built for and will continue to pursue. Executing across a larger, more complex portfolio requires the right operating infrastructure, and that is precisely what we have built. A central component of that work is the rollout of SPIN, our Sunita Performance Insight Navigator. SPIN is our proprietary technology infrastructure that integrates resident care data, workforce information, and operational metrics into a single, actionable framework, giving community leaders the real-time visibility to act decisively as occupancy and acuity evolve. The platform optimizes both labor and non-labor costs against relative occupancy, acuity, and care levels to enhance unit economics and drive incremental margin expansion. SPIN provides the framework for decentralized decision-making without sacrificing accountability, enabling our local leaders to drive community performance with owner-operator urgency and without bureaucratic lag. Importantly, we view SPIN as a foundational operating platform rather than a finished product. We are continuously improving its capabilities and refining usage. As our platform scales across the larger and more diverse portfolios, It generates a richer data set, further strengthening timely insights, improved decision making, and compounding margin expansion. Each community and portfolio acquisition added to SPIN accelerates asset level visibility and tied to performance through a standardized data infrastructure, which protects NOI from day one. This scalable foundation is central to our growth strategy and our ability to drive sustainable margin expansion across our growing portfolio. As SPIN becomes more deeply embedded, early feedback and performance indicators have been encouraging, and we believe there remains significant opportunity to further refine and leverage the system as the business continues to scale. As part of phase three, we are also introducing our refined capital allocation framework, first outlined in our shareholder letter and included in today's earnings presentation. This framework establishes a clear and disciplined approach for how we will evaluate and deploy capital as we move into the next phase of growth. Following Kevin's remarks, I'll expand on the strategy and its core principles. Turning to our performance for the first quarter, we are pleased with both the results we delivered and the momentum we are building. As previewed on our fourth quarter earnings call, this quarter reflects our new reporting buckets, same store, non-same store, and triple net lease. The portfolio delivered solid year-over-year growth across our same-store communities, highlighted by continued occupancy expansion, sustained pricing power, and meaningful NOI margin improvement. On a same-store basis, weighted average occupancy increased 220 basis points year-over-year to 87.2%, reflecting steady improvements in move-in volume, stable length-of-stay trends, and continued execution by our sales, operations, and clinical teams. This occupancy growth, combined with significant annual rate increases, drove a 7.6% increase in resident revenue and a 5% increase in REV4, demonstrating our ability to capture value while maintaining a high-quality resident experience. Sunita's SHOP portfolio is concentrated in markets projected to outpace the national average for 75-plus population growth by approximately 300 basis points over the next five years, positioning the portfolio at the intersection of demographic demand. Importantly, this revenue growth translated efficiently to the bottom line. Same-store community NOI increased 14% year-over-year to $48 million, and NOI margins expanded 170 basis points to 31.2%. Based on early operational indicators across the portfolio, the performance we saw in the first quarter has continued into the second quarter. Last week, we completed the first operational transition following the CHP acquisition, bringing six communities from two third-party operators onto the Sunita platform. These communities represent an important value creation opportunity for the company. and we are initially encouraged by the immediate feedback and smooth execution by our operational excellence team. We expect to transition an additional 11 communities from four third party operators this summer, while developing strategic growth partnerships with a select group of in-place third party operators. Our first quarter results reinforce the core tenets of our strategy, driving organic growth through consistent operational execution leveraging pricing power responsibly, and deploying capital in ways that enhance long-term earnings power. The scale achieved through the CHP acquisition further strengthens this approach by expanding our regional density, improving purchasing and operating leverage, and increasing flexibility to allocate capital toward the highest return opportunities across the portfolio. Our team remains intensely focused on execution, both within the stabilized portfolio and across communities that are still rampant. We are encouraged by the momentum we are carrying into 2026 and confident in the durability of the operating trends taking shape across the portfolio. With that, I'll turn the call over to Kevin to walk through the financial results and balance sheet in more detail.