Sienna Senior Living Inc.

Ladies and gentlemen, welcome to Ciena Senior Living Inc's Q2 2026 conference call. Today's call is hosted by Nitin Jain, President and Chief Executive Officer, and David Hung, Chief Financial Officer and Executive Vice President, Investments of Ciena Senior Living Inc. Please be aware that certain statements or information discussed today are for looking and actual results could differ materially. The company does not undertake to update any forward-looking statement or information. Please refer to the forward-looking information and risk factor sections in the company's public filings, including its most recent MD&A and AIF for more information. You will also find a more fulsome discussion of the company's results in its MD&A and financial statements for the period, which are posted on CEDAR Plus and can be found on the company's website, sienaliving.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'll now turn the call over to Mr. Jain. Please go ahead, Mr. Jain.

Thank you. Good morning, everyone, and thank you for joining us today. Sienna's second quarter reflects the continued improvements across our operations and the success of a diversification strategy. We delivered strong organic growth for the 14th consecutive quarter with both our long-term care and retirement operations achieving double-digit growth. We also completed acquisitions of two retirement residences during the quarter, maintained a strong balance sheet and investment credit rating, and formed a strategic partnership to accelerate our long-term care redevelopments. This is happening at a compelling time for Canadian senior living. The sector remains exceptionally strong, driven by fast-growing demand from an aging population and limited supply. Moving to slide five, during the second quarter, same property NOI increased by 15.2% in the retirement segment and by 22.6% in the long-term care. Key drivers of the strong results in the retirement segment were occupancy and rate increases. In addition to higher care revenue, Average same property occupancy was up 150 basis point year over year and has reached 94.1% in the second quarter. Together with a growing scale and operating efficiencies, this led to a 200 basis point margin expansion in a same property portfolio. Quarter over quarter, occupancy was marginally lower compared to the first quarter as a result of slightly elevated move out activity. Subsequent to the end of the second quarter, occupancy increased to 94.5% in July. Our well-established sales platform and focused marketing campaigns continue to generate strong leads. This was evident at our recent annual open house, which attracted more than 500 attendees and resulted in an increase in qualified leads and deposits. We also continue our focus on hospital outreach and excellent relationships with healthcare partners in the local communities where we operate. A key driver behind the strong performance of our retirement operations was higher care revenue. This is the result of our Aspera wellness program with more efficient processes, improved staffing models, and consistent care offerings. The program was launched last year and has led to an approximate 37% increase in care revenue year over year. With respect to Siena's long-term care operations, fully occupied homes with growing wait lists, high revenue from private accommodations, and government funding increases all added to the strength of the results. In addition, the contributions from acquisitions and developments are further supporting our strong performance in the second quarter. Ciena's 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. After completing our first long-term care redevelopments in North Bay and Brantford last year, We continue to advance our redevelopment pipeline, in particular in the Greater Toronto Area. We expect to start construction at two projects in the GTA in early 2027, including a 448-bed long-term care community at Siena's Glen Rouge site in Toronto, and a recently announced 256-bed redevelopment at a Streetsville community in Mississauga. The two projects are part of Siena's 1600-bed redevelopment Pipeline which is more than 80% of which more than 80% is located in the GTA. We have been actively sourcing land and with recent site acquisitions in Brampton and Toronto, we now have land for the majority of the projects in our pipeline. We also continue to be active on the acquisitions front with acquisition of two retirement residences for 100 million finalized during the quarter and a purchase agreement for a newly built 68 million long-term care property under contract. These acquisitions further elevate the quality of Ciena's platform by adding modern, high-quality assets in attractive markets. Ciena's acquisition pipeline remains strong as we continue to pursue opportunities that fit our diversified growth strategy. Beyond our acquisitions and redevelopments, we remain focused on creating value within our existing portfolio through asset optimization, strategic renovations, and enhancements across our retirement and long-term care platforms. In our retirement segment, we are focused on aligning our residences with market demand, expanding services, and clinical care offerings to better support residents as their care needs change. This will allow residents to stay in our retirement residences longer and has already generated notable results, both in terms of financial performance and resident satisfaction. In our long-term care segment, we continue to enhance our operations to improve the resident experience. We are also encouraged by the recent introduction of a renovation program for long-term care homes by the Ontario government. The program provides capital funding to renovate existing long-term care homes or convert vacant buildings to long-term care homes. This program gives us additional options to make improvements to our portfolio and we are currently evaluating possible opportunities to participate in the program. Moving to slide nine, in July, Ciena was once again named one of Canada's best companies by Time Magazine. We are truly honored to have earned this recognition for a second consecutive year. We've also moved higher in the rankings this year and earned a place among the top 125 companies recognized in Canada. While our significant growth played a role in earning this recognition, more than anything, it is a reflection of the passion of our 15,500 team members who care for approximately 14,000 residents each and every day. Their impact comes to life in our 2026 Impact Report published today which shows how they are enriching the lives of thousands of residents, supporting families, and strengthening communities across Canada. Ciena's strong team member engagement, record-low turnover, and purpose-driven culture is at the heart of our success and will continue to be one of the company's greatest competitive advantages as we execute our growth strategy. 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 Q2 2026, revenue on a proportionate basis increased by 13.6% year-over-year to $288.2 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, $2.1 million in retroactive funding, Thank you for joining us. Excluding these retroactive items in both years, same property NOI would have increased by 13.5%. During Q2 2026, operating funds from operations increased by 35% to $39.6 million compared to last year, primarily due to higher NOI partially offset by higher income tax and interest expenses. Adjusted funds from operations increased On a per share basis, OSFO and AFFO increased by 16.4% and by 24.4% respectively in Q2 2026. Ciena's Q2 2026 AFFO payout ratio was lowered to 72.3% compared to 89.5% in Q2 2025. This improvement highlights Ciena's strong operating results, the contributions from our completed redevelopments and accretive acquisitions We ended Q2 2026 with a strong financial position, including approximately $604 million in liquidity and nearly $1.6 billion of unencumbered assets. At approximately 35%, our net debt to adjusted gross book value is conservative and our weighted average cost of debt remains low at 3.9%. Year over year, we also Thank you, David. As we enter the second half of 2026, we are confident in our ability to deliver on our growth objectives. We are confirming our 2026 target of more than 10% same property NOI growth in our retirement segment.