Greetings, and welcome to the Sonida Senior Living First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Finkelstein of Investor Relations for Sonida. Please proceed.

Thank you, Kamila. All statements made today, May 10, 2024, which are not historical facts may be deemed to be forward-looking statements within the meaning of federal securities laws. The company expressly disclaims any obligation to update these statements in the future. Actual results and performance may differ materially from forward-looking statements. Certain factors that could cause actual results to differ are detailed in the earnings release the company issued earlier today as well 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 reports on Form 10-Q. Please see today's press release for the full safe harbor statement, which may be found in the 8-K filing from this morning and that the company's Investor Relations page down at www.sonidaseniorliving.com. Also, please note that during this call, the company will present non-GAAP financial measures. Reconciliations of each non-GAAP measure from the most comparable GAAP measure, please also see today's press release. At this time, I would like to turn the call over to Sonida Senior Living President and CEO, Brandon Ribar.

Thanks, Jason. Hello, and welcome to our 2024 first quarter earnings call. I'm joined today by Kevin Detz, our Chief Financial Officer. Earlier today, we posted our Q1 earnings and investor presentation, which will be referenced throughout this call as we discuss our strategic priorities and operating results in addition to updating you on our growth efforts in 2024. You can find our latest presentation at sonidaseniorliving.com in the Investor Relations section if you would like to follow along. In addition, we have included supplemental earnings information within our investor presentation, consistent with the prior quarter release. We ended Q1 with significant momentum towards both our organic and external growth goals and remain optimistic around our 2024 operating targets. We have swiftly moved into growth mode in Q2 with the expected completion of 4 transactions before the end of June. Looking ahead, we have clear line of sight into further growth opportunities with similar return characteristics in the near-term pipeline. We anticipate that we will continue to use our recently established ATM program to match fund bolt-on acquisitions while exploring a traditional equity raise later this year, subject to the capital needs of our pipeline. Over the last 3 months, Sonida has raised nearly $60 million in equity capital with approximately $35 million earmarked for transactions expected to close in the next 90 days. These transactions include both existing and new institutional capital partners excited to access this highly attractive senior living investment landscape through Sonida. To touch on our performance for the quarter, Q1 was characterized by the continued improvement of the core portfolio. Occupancy remained in line with prior quarter coming in just shy of 86%, while we successfully completed another material increase in our overall rate profile as of March 1. March rate increases effectively at 7%…

Thanks, Brandon. Picking up with the financial comparisons on Slide 12 of the investor presentation, the company continues to steadily push occupancy up despite an increase in move-out rates this quarter driven by a handful of communities where targeted action plans have already been put in place. On a year-over-year basis, the company grew occupancy 200 basis points to 85.9%. The company is still driving significant improvement in rate capture with a year-over-year increase in RevPOR of 8.4% and resident revenue of 7.2%. As a result of the foundational work around the company's operating expense profile over the past 18 months, the company was able to realize an additional $3.5 million of adjusted NOI and 360 basis points in incremental adjusted NOI margin year-over-year. These measures both exclude the impact from nonrecurring state revenue grants. Comparing the first quarter of 2024 to the fourth quarter of 2023 we can see the return of historical seasonality and in what has otherwise been a stabilizing margin trajectory since the post-COVID recovery began. We've seen similar trending across our peer group based on earnings releases this quarter. The first quarter of each calendar year bears a heavier cost load with respect to both employee benefit participation levels and a reset of employer taxes with phase-out limitations reached later in the year. Beyond the restored seasonal marginal effect, nonrecurring operating expense credits realized in the fourth quarter of 2023 are significant drivers in comparing sequential quarterly margins, as previously discussed, our March year-end 2023 earnings release. More specifically, the company benefited from real estate tax credits recognized in November and December as lower adjusted tax bills were received and refunds were processed by local jurisdictions as a result of our protest efforts. Additionally, the company was able to reduce its liability related to workers'…

Thanks, Kevin. 2024 is an exciting time for Sonida on many fronts. The energy and positive momentum is palpable across our entire company as we strive for further growth in our existing portfolio, driven by operational excellence and further advancement in resident program. coupled with the opportunity to aggressively grow our portfolio through strategic acquisitions at attractive values, Sonida is positioned to fulfill our commitments to residents, employees and shareholders to continue building a best-in-class operator, owner and investor in senior living. This concludes today's conference. Thank you all for participating, and have a good day.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.