Greetings and welcome to the Sonida Senior Living Second Quarter 2024 Earnings Results Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to Jason Finkelstein, Investor Relations. Thank you, Jason. You may begin.

Thank you, operator. All statements made today, August 12, 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 can 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 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 at the company's Investor Relations page found at www.sonidaseniorliving.com. Also, please note that during this call, the company will present non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measure, please also see today's press release. At this time, I'd like to turn the call over to Sonida Senior Living, President and CEO, Brandon Ribar.

Thank you, Jason. Hello and welcome to our 2024 second quarter earnings call. I'm joined today by Kevin Detz, our Chief Financial Officer. Earlier today, we released our Q2 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've included supplemental earnings information within our investor presentation consistent with the prior quarter release. In the second quarter, the company delivered considerable progress across both our organic and inorganic or externally accretive growth initiatives. First and foremost, the same-store portfolio continued generating strong operating results on both a sequential and year-over-year basis, culminating with our highest occupancy in this portfolio's operating history and operating margins exceeding 28% for the quarter. The same-store owned portfolio averaged 86.2% occupancy for the quarter, with June averaging nearly 87% and spot occupancy for June 30th at 87.9%. Average occupancy for the second quarter improved by 220 basis points year-over-year and 30 basis points sequentially with June occupancy finishing 290 basis points higher than June of 2023. As a frame of reference, Q4 2019 average occupancy and spot occupancy were around 84%. The occupancy gains reflect a growing trend of strength across each of our operating regions and the ability to drive recovery in our underperforming communities. The second half of the year has shown continuous positive momentum and portfolio-wide occupancy of 90% is our next significant goal. Based on our high-quality portfolio and industry-wide supply-demand dynamics, we believe that normalized occupancy can be meaningfully greater than 90% over the next several years. We also experienced continued growth on the rate front…

Thanks, Brandon. I will be walking through select pages of today's investor presentation, starting with Slide 12. I wanted to note that most of the financial slides discussed on today's call will be presented on a same-store basis, which for comparative purposes excludes the May acquisitions of our Macedonia community and the four communities under a joint venture structure. The appendix slides in the broader investor presentation include references to the company's consolidated portfolio as well as the 12 communities operated under third-party management agreements. As Brandon mentioned, during the outset of the call, the company continues to steadily push up occupancy with another 30 basis point increase from the previous quarter. This 86.2% weighted average occupancy is 230 basis points higher than the prior year Q2 occupancy of 83.9%. These occupancy gains were driven from a significant reduction in move-outs, which has been a continued focus of our community leadership teams in concert with our Chief Clinical Officer, who joined the team late last year. Specifically, for the second quarter, move-outs decreased 19% and 16% from the preceding quarter and comparable quarter in 2023. As of quarter-end, only four Sonida communities remain less than 75% occupied with just one of those under 70%. The company continues to focus on elevating rate with a quarter-over-quarter RevPOR increase of 3% driven from its March 1st portfolio-wide increases and continued success on market rate optimization, particularly in higher occupancy communities. On a year-over-year basis, RevPOR and RevPAR increased 8.3% and 11.3%, respectively, with the latter reflective of the company's revised level of care program and our assisted and memory care communities. The stabilization of later and occupancy-based expense accounts continues to support incremental NOI growth, with increases of 19% and 31% from prior quarter and the same quarter last year, respectively. Note…

Thanks, Kevin. 2024 continues to present opportunities for Sonida to deliver on our differentiated approach to both internal and external growth. Our focus and commitment for the second half of 2024 revolves around three key deliverables. The continued improvement of our organic portfolio performance with an expectation to achieve positive all-in cash flow by year-end remains a top priority. Second, delivering on the expected performance improvements within recently acquired communities will further build a proven track record for stabilizing distressed assets. Finally, leveraging our broad network to identify attractive acquisitions will provide investors with a differentiated platform to access the highly attractive market dynamics surrounding the senior living sector in the near term. We firmly believe 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. Thank you all for participating and this concludes today's conference call.

Thank you. You may now disconnect your lines. Thank you for your participation. End of Q&A: