Sonida Senior Living, Inc.

Hello, everyone. Thank you for joining us and welcome to the Sonita Seniors Living second quarter 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, 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, August 10, 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 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 previously disclosed, the company completed its acquisition of C&L Healthcare Properties, Inc. or CHP on March 11, 2026. Unless otherwise specifically noted or the context otherwise requires, the financial and operating results we are discussing today and that are included in our earnings release and presentation represent the combined company on a pro forma basis for any period presented in which we did not own CHP for the full period, including CHP as if the acquisition had closed on the first day of the period. We believe this pro forma information provides a meaningful method of comparing the performance of the combined business over historical periods. This pro forma information giving effect to the CHP acquisition has not been prepared in compliance with Article 11 of Regulation SX and does not reflect the actual results we have achieved had the CHP acquisition occurred on the first day of the applicable period and may not be predictive of future results. Please note that our GAAP financials reflect CHP's results from the closing date only and our second quarter 2026 financials reflect CHP for the full period without any adjustment. See the disclaimer slide in our presentation for additional information about the preparation of and the limitations associated with this perform of financial information. Please also note that during this call, the company will present non-GAAP financial measures. For reconciliations of these non-GAAP measures to the most comparable GAAP measure, please see today's earnings release and presentation. If you'd like to follow along during today's call, you can find Sunita's second 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 Ribar.

Thanks, Megan. Good morning and thank you for joining us on our second quarter 2026 earnings call. Last quarter, we outlined Sunita's shift from building its foundation to compounding on it, transitioning from survival and stabilization to now, in 2026, compounding. Our compounding phase is well underway with today's results showing clear fundamental momentum, and I'm pleased to report a strong second quarter. On a same-store basis, weighted average occupancy increased 240 basis points year-over-year to 87.8%. reflecting continued gains in move-in volume and sustained execution by our sales, operations, and clinical teams. That top-line growth continued to flow through efficiently to profitability. We're encouraged that this momentum continued into the third quarter, with our total portfolio occupancy increasing sequentially by 40 basis points in July versus June. Q2 same-store community NOI grew 16.9%. with NOI margin expanding 250 basis points year-over-year to 32.6%, underscoring the operating leverage embedded in the portfolio. We are pleased that our operational efforts have demonstrated a significant expansion from our 14% year-over-year same community NOI growth in Q1. On a total portfolio basis for the second quarter, normalized FFO per share was 48 cents with adjusted EBITDA of $50 million, both reflecting the earnings power of the platform as it scales. The strength of these results highlights the caliber of leadership across the operating platform, the effectiveness of our proprietary spin business intelligence tools, and the operational discipline to balance onboarding new communities while delivering consistent performance in our core portfolio. The continued integration of the CHP portfolio remains on track. and our pipeline of additional near-term investment opportunities continues to expand, both of which I'll cover in more detail later in my remarks. Our primary objective remains generating durable per share value creation through the combination of a stronger balance sheet, a differentiated operating model and a deeper leadership bench. We are also pleased to formally introduce Anton Nikodemus as our Chief Operating Officer. A newly created and vital role as we focus on continuing to compound value. Service Consistency, Resident Programming, and the Design of the Physical Environment together with Discipline Sales, Marketing, and Revenue Management are details that drive renewals, generate referrals, and sustain pricing power through market cycles. They are also the most difficult things to replicate at scale. As Sunita's platform grows, our ability to embed a hospitality-driven culture at the community level and to hold that standard across a larger and more diverse portfolio is a key source of differentiation in our business model. Anton is here to build and sustain that capability, and we are excited to have him leading that work. This mandate is especially relevant given the pace of integration work underway. As of July 1st, 14 communities, more than a quarter of the CHP shop portfolio, have transitioned to Senita management. The execution was smooth, and more importantly, it was instructive. Our operational excellence team, built over the last several years since we began acquiring assets in 2024, continues to accelerate asset transitions and data migration onto our SPIN platform, enhancing a playbook refined through two years of integration work. To contextualize this a bit, the six communities transitioned at the beginning of May, delivered year-over-year NOI improvement exceeding 60%, and expanded NOI margin by 850 basis points. compared to Q2 2025. Ongoing investment in detailed training and development of new leadership coupled with community level incentive structures are keeping teams focused and results steady throughout the integration process. We remain confident in the performance of our remaining third party managers. They have preserved operational continuity and institutional knowledge at the community level and in a handful of cases are evolving into longer term strategic partnerships a dynamic that is opening incremental opportunities for us across a range of fronts, whether that's deal flow, sourcing networks, or regional density advantages. That same playbook mentality, building infrastructure that gets smarter with each transition, extends beyond the integration itself. It is what underpins the Sonita Performance Insight Navigator, or SPIN, our proprietary operating platform that provides real-time insights around occupancy, rate, and labor trends. with data sets coming from over 100 of our communities. We introduced SPIN to our investors for the first time in our April shareholder letter and in further detail on our Q1 call, though it reflects work we've been building for years. SPIN is a proprietary system with layered best-in-class third-party capabilities specifically tailored to how we operate, bringing resident care, workforce, and community-level data into a single real-time view. What's changed since last quarter is scale. Each community acquisition we integrate enriches that data set and drives further development of predictive insights into resident clinical profiles and labor efficiency. Dividing to capital allocation, our investment focus remains return driven, not category driven. Every dollar deployed is measured against the creation to free cash flow and net asset value per share. We underwrite with the same rigor and cost of capital discipline as an institutional investor. but the Sunita advantage lives in what happens after the deal closes. We execute as a best-in-class operator, converting operational upside directly into NOI in a way a pure capital allocator cannot. That operating advantage shapes our conviction about the types of assets that create the most value for Sunita shareholders. We're drawn to assets that reward not just an owner, but an operator, where our operational capabilities allow us to lean into a deal, specifically high quality assets available at a discount to replacement cost in markets with favorable supply demand dynamics where we see multiple levers to grow occupancy, rate, and margin rather than a single thesis dependent on cap rate compression. Regional density is a particularly important part of that thesis. Today, local operating density is becoming harder to replicate and more valuable. Our concentrated presence in key markets such as Dallas-Fort Worth, Northern Florida, and Atlanta deepens access to the operating and market data that sharpens our capital deployment decisions while regional clustering drives referral networks, purchasing power, and labor efficiencies that optimize our operational opportunity. This density is also reinforced by how we're perceived in the market. We believe our platform is resonating with sellers who care about what happens to their communities after a transaction closes. and we expect that to become an increasingly important differentiator to our sourcing efforts over time. Together, these dynamics feed the flywheel we described last quarter, where every acquisition deepens our operator relationships as to the SPIN dataset and strengthens our density in the markets that matter most. The value of SPIN and our broader integration and operations playbook is increasingly reflected in our results. Our stone joint venture is a case in point. formed in 2024 to acquire four highly distressed communities across the Midwest. The portfolio NOI has grown 5.6 times, driven by a complete overhaul of the operating model to drive both top line and margin growth. That performance yielded a cash out refinancing that closed this quarter, returning the full amount of invested capital to Sunita and our joint venture partner with attractively priced long duration flexible mortgage debt. Importantly, We believe the growth from this acquisition is far from finished. The portfolio remains in the stabilization phase with meaningful upside opportunities ahead. We've previously discussed our 2024 cohort, which is currently yielding approximately 11.5% relative to our cost basis, with meaningful further upside ahead. Our 2025 cohort is showing similarly strong momentum. Since Q4 2025, the first full quarter of ownership, Occupancy and NOI are up 1400 basis points and 1600 basis points, respectively. Notably, occupancy for the 2025 cohort sits at 70.4% as of June, reflecting significant upside ahead. The Stone JV and our other one-off acquisitions to date reflect the kind of value creation we look to replicate as we continue to deploy capital. And we are seeing that same opportunity set in our current pipeline. Today, we are under contract to acquire approximately $88 million of assets that share these same characteristics. Attractive markets and well-located buildings where our operating prowess can drive a significant uplift in performance. We anticipate these assets to generate a mid-teens on levered IRR and accretion to normalized FFO and NAV per share on a stabilized basis. This is all consistent with the approach laid out in our April shareholder letter where we are looking for acquisitions that generate outsized return on unlevered cost of capital when compared to our current implied cost of capital in the public markets. We continue to build the pipeline behind this initial $88 million, which remains deep and compelling and our acquisitions team is as busy as it's ever been. We look forward to sharing more on our acquisition efforts in the upcoming calls. With that, I'll turn the call over to Kevin to walk through the financial results, balance sheet,