Sienna Senior Living Inc.

Ladies and gentlemen, welcome to Ciena Senior Living Incorporated's first quarter 2026 conference call. Today's call is hosted by Nitin Jain, President and Chief Executive Officer, and David Hunk, Chief Financial Officer and Executive Vice President, Investment of Ciena Senior Living Incorporated. Please be aware that certain statements or information discussed today are forward-looking. and actual results could differ materially. The company does not undertake to update any forward-looking statement or information. Please refer to forward-looking information and risk factors sections in the company's public filings, including its most recent MD&A and IIF for more information. You may also find more fulsome discussion of the company's results in its MD&A and financial statements for the period, which are posted in the CEDAR Plus and can be found in the company's website, cannaliving.ca. Today's call is being recorded, and a replay will be available. Instructions for accessing the call are posted on the company's website, and the details are provided in the company's news release. The company has posted slides which accompany the host's remarks on the company's website under Events and Presentations. With that, I will now turn the call over to Mr. Jain. Please go ahead, Mr. Jain.

Thank you, Tina. Good morning, everyone, and thank you for joining us today. Ciena's growth momentum continued in the first quarter of 2026. We started the year with strong organic growth for the 13th consecutive quarter and continued to expand through acquisitions, including our most recent announcements of the purchase of a recently opened long-term care home in the greater Toronto area, and a retirement residence in the Ottawa region. We're also progressing well with the long-term care redevelopments and have been successful in sourcing land for future developments in the GTA. Each of these achievements is supporting Ciena at a compelling time in senior living. The sector remains exceptionally strong, driven by the fast-growing demand from an aging population, constrained near-term supply, and minimal exposure to the current geopolitical volatility. During the first quarter, both operating platforms delivered strong results. Same property NOI increased by 15.8% in the retirement segment and 1.7% in long-term care. Excluding one-time items in both years, our long-term care segment delivered 6.7% same property NOI growth. Key drivers of the double-digit increase in the retirement segment were the year-over-year occupancy increase, continued rental rate growth, and additional care revenue. Average same property occupancy was up 180 basis points year over year and had reached 94.7% in the first quarter. This was supported by a 280 basis point margin growth. Quarter over quarter, occupancy remains flat compared to Q4 of 2025, largely as a result of typical seasonal trends and harsher than usual winter conditions in many of our key markets. Our robust sales platform and focused marketing campaigns were supporting our year-over-year growth. The significant increase in tours at a recent national open house in February generated nearly 500 new leads and reflects the broad reach of our marketing and sales campaign. We also maintain a robust focus on hospital outreach and excellent relationships with healthcare partners in the local communities where we operate. All of these initiatives are expected to drive strong lead generation and future movements. An additional key driver behind the strong performance of our retirement operations is higher care revenue. This is the result of a new Espira wellness program with more efficient processes, improved staffing models, and consistent care offerings. The program was launched in 2025 and has led to an approximate 25% increase in care revenue. With respect to Ciena's long-term care operations, fully occupied homes, with growing wait lists, higher revenue from private accommodations, and government funding increases all added to the strength of these results. Ciena's government-funded long-term care operations add significant value to our business and provide stability given that they're largely insulated from market volatility or economic uncertainty. We continue to be active on acquisition front with $188 million of equity transactions closed or under contract to date in 2026. We increased the ownership interest in two of Ciena's majority-owned properties in the Greater Toronto Area and in Kelowna, and finalized the purchase of the Bartlett 129-suite retirement residence in the Greater Toronto Area. In addition, we entered into two purchase agreements at the end of last week, including Rockland Manor, a 160-suite retirement residence in the Ottawa region, and Valleycliff, a newly developed 224-bed long-term care community in the Greater Toronto Area. Rockland Manor will be acquired for approximately $41 million, with an initial investment yield of 6%. The growth purchase price for Ballycliff, which includes the rights to a 25-year construction funding subsidy, is approximately $68.3 million, and the investment yield is approximately 6.75%. Both properties will be acquired below the replacement cost and financed with cash on hand. They're great examples of the broad range of opportunities available to us to expand our portfolio. Ciena's acquisition pipeline remains strong, and we are confident to maintain a significant pace of acquisition through the balance of this year. Moving to redevelopments, we're also advancing our redevelopment pipeline, in particular in the Greater Toronto Area. We expect to start construction at Ciena's first project in the City of Toronto later this year, where we are redeveloping a 448-bed long-term care community at our existing Glen Rouge site. This is one of several projects in our 1600-bed pipeline. More than 80% of the pipeline is located in the GTA, where new funding has significantly improved the development fundamentals. We've been actively sourcing land for projects in the GTA that do not have sufficient land at their existing sites. With the recent purchase of a site in Brampton, we are getting closer to a goal of having all lands for every C home project. Each completed redevelopment will modernize and strengthen our long-term care platform and support the continued growth of our business. Beyond our acquisitions and redevelopments, we remain focused on creating value within our existing portfolio through asset optimization, strategic renovations, and general enhancements to our retirement and long-term care platforms. In our retirement segment, our initiatives are focused on better aligning residences with market demand, Exploring alternative property uses or expanding services by adapting them to support seniors as their care needs change. We increasingly apply our expertise in clinical care at our retirement platform. Our updated wellness program increases residents' access to in-house wellness and care, helps improve their quality of life, and allows them to stay in their retirement homes longer. In long-term care segment, we continue to make improvements to the CIRCLE platform through ongoing input from residents, families, and team members. Our CIRCLE approach places residents at the center of everything we do. With initiatives such as the CIRCLE Spa and CIRCLE Cafe, each initiative is designed to elevate the resident experience, and we see the impact reflected in resident satisfaction surveys and our consistently strong accreditation results. Moving to our team members, as we continue to expand, the timely integration of each new community in our operating platform remains a top priority. Delivering an exceptional resident experience from day one begins with our team members. With approximately 15,500 employees, we recognize the importance of investing in programs that foster a strong culture of ownership and engagement. Our initiatives range from town halls that foster learning and connections, leadership development to recognition and share ownership programs through which shares have been awarded to over 12,000 team members. We are also investing in our team member health and well-being and have introduced a new employee and family assistance program with greater access to mental health, wellness, and work-life support. Each of these initiatives play a role in the continued reduction in turnover, which reached a record low of less than 20% in 2025. Our initiatives also resulted in the fifth consecutive year of increased team member engagement and help reduce CNI agencies' costs, which are below 1% of total labor costs. We are extremely proud of these achievements, which put us in a strong position to attract and retain the best in Canadian senior living. With that, I'll turn it over to David for an update on our financial results.

Thank you, Nitin, and good morning, everyone. I will start on slide 11 for financial results. In Q1 2026, revenue on a proportionate basis increased by 17.3% year-over-year to $286.3 million. This increase was largely due to acquisitions, occupancy, and rental rate growth, as well as increased care revenue in the retirement segment. Adding to the increase were the contributions from our long-term care platform, including higher flow-through funding for direct care, increased private accommodation revenues, $1.1 million in retroactive funding from the BC government, and additional revenues from acquisitions and developments completed in 2025. Same property NOI increased by 7.9% to $47.4 million in Q1 2026, including by 15.8% in our retirement segment and by 1.7% in the long-term care segment. In the retirement segment, same property NOI increased by $3 million in Q1 2026 compared to last year, largely as a result of improved occupancy, rate growth and higher care revenues. Combined with our strict focus on operating expenses, the year-over-year operating margin improved by 280 basis points. In the long-term care segment, same property NOI increased by $1.3 million. Continued improvements in private occupancy and government funding increases were the key drivers behind the year-over-year growth. Our Q1 results include one-time items relating to prior years, including retroactive funding from the Government of British Columbia in 2026 and WSIB refunds in 2025. Excluding these one-time items in both years, same property NOI would have increased by 10% overall, including by 13.8% in the retirement segment and by 6.7% in long-term care. During Q1 2026, operating funds from operations increased by 42.5% to $37.1 million compared to last year, primarily due to higher NOI and lower cash taxes. Adjusted funds from operations increased by 45.1% to $35.1 million compared to last year. The increase was mainly due to higher OFFO and construction funding income for redevelopments completed last year, offset in part by an increase in maintenance capital expenditures. On a per share basis, OFFO and FFO increased by 21.5% and by 23.5% respectively in Q1 2026. CNF Q1 2026 AFFO payout ratio was lowered to 68.5% compared to 86% in Q1 2025. This improvement highlights CNF's strong operating results, the contributions from our completed redevelopment and accretive acquisitions, as well as the progressive deployment of capital to fund growth initiatives. We ended Q1 2026 with a strong financial position, including approximately $557 million in liquidity and nearly $1.5 billion of unencumbered assets. At approximately 37%, our net debt to adjusted gross book value is conservative, and our weighted average cost of debt remained low at 3.9%. Year over year, we also further improved Ciena's debt service coverage ratio to 2.6 times from 2.4 times in Q1 2026. Ciena had approximately $160 million of debt coming due in the next 12 months. Given our access to a broad range of capital, we are confident in our ability to refinance our expiring debt at attractive terms. With respect to our equity, demand for Ciena's shares remains strong. As a result, we were able to fully deploy Ciena's $150 million at the market distribution program during Q1, which provides the necessary liquidity to fund our continued growth through acquisitions and development. With that, I will turn the call back to Nitin for his closing remarks.