Hello, and welcome to Sonida Senior Living, Inc. fourth quarter and full year 2024 earnings call. Please note that this call is being recorded. After the speakers' prepared remarks, there will be a question and answer session. If you would like to ask a question during that time, please press star followed by number one on your telephone keypad. Thank you. I would now like to hand the call over to Jason Finkelstein, investor relations. You may now begin.

Thank you, operator. All statements made today, March 17, 2025, 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 or 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-Ks 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 at sonidaseniorliving.com. Also, please 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. At this time, I would like to turn the call over to Sonida Senior Living, Inc. President and CEO Brandon Ribar for opening remarks.

Thanks, Jason. Hello, and welcome to our 2024 fourth quarter and full year earnings call. I am joined today by Kevin Detz, our Chief Financial Officer. Earlier today, we released our Q4 and full year 2024 earnings and investor presentation, which will be referenced throughout this call as we discuss our strategic priorities and operating results in addition to our view on the year ahead in 2025. 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 2024 with a number of significant achievements, all positioning the company for accelerated growth in 2025 and beyond. Highlights for the year include 19% and 27% year-over-year growth from 2023 in same-store adjusted community NOI and adjusted EBITDA, respectively. 2024 saw same-store improvement of 180 basis points in occupancy and nearly 6% growth in RevPOR year-over-year. I am extremely grateful to our team who maintained focus on achieving top and bottom-line expansion in our same-store portfolio while balancing the complex integration of 20 owned and 3 managed communities, representing a near 30% increase in total units to the portfolio. These results continue the value creation trajectory we committed to 2.5 years ago, as we launched the next chapter of the company's evolution. Slide 7 in our investor deck provides an overview of this repositioning journey with the next phase aimed squarely at further value creation in what we believe is an extended period of growth for both the industry and the company. From a capital allocation perspective, we executed on six distinct transactions totaling more than $250 million, continuing to prudently invest capital across our existing portfolio. Importantly, we closed three transactions in…

Thanks, Brandon. My comments today will aim to provide a summary of the key financial accomplishments from the quarter and full year 2024, as well as to provide some visibility into the company's focus for 2025. One year ago, the tenor of our comments surrounded significant restructuring of the company's debt, swift pace of our transition from defense to offense. With this foundational pivot behind us, today marks the beginning of a new chapter in the company's story of ascension. 2024 saw the company raise $200 million of equity to increase its senior living real estate units by 30%, while steadily pushing up the performance of its same-store portfolio and investing in upgraded talent to unlock the value on its recent and future acquisitions. Before we discuss our operating results, I want to highlight two significant debt transactions that were executed in the fourth quarter. First, in connection with the third quarter loan modification with one of its lenders on two cross communities in Texas, the company made a discounted payoff of $18.3 million on a $28.4 million loan balance. The DPO represented a 36% discount on the loan principal balance. Second, as part of its collaborative relationship with Fannie Mae, the company extended the maturities of 18 of its individually mortgaged communities with a total debt balance of $220 million by two years. The result of this loan amendment provides for a January 2029 maturity date for all 37 communities under Fannie Mae financing. In exchange for the extended loan term, the company was required to make a series of principal paydowns totaling $10 million over the revised term of the loan, with the first payment having been made in December 2024. Following these two transactions, Sonida Senior Living, Inc. has just one near-term debt maturity for $13 million…

Thanks, Kevin. As I mentioned earlier, the path to achieving accelerated growth in our existing portfolio is built on execution of our individual community business plans by talented local and regional leadership with the support of our Sonida Senior Living, Inc. centralized support team and systems. We are poised to deliver further NOI growth and margin expansion as we push the ongoing improvement in our same-store portfolio and accelerated revenue and margin stabilization in our recently acquired communities. We see an opportunity to compound our growth by capitalizing on our robust pipeline of additional acquisition opportunities, leveraging our operating capabilities and capital availability. Through a combination of occupancy expansion, ongoing rate improvement, and effective expense management, our 2024 investments are targeted to stabilize at double-digit cap rates, delivering significant earnings accretion. We have included a summary of our Q4 2024 investments in the investor deck on slides 26 through 31 and have been pleased with the financial uplift across each of these investments in the early stages of integration and repositioning. The application of our staffing, technology, purchasing capabilities, and focused expense management processes continue to drive early improvement in operating results in the acquired communities. Substantially limited new supply remains a significant tailwind for our portfolio, and we do not see any near-term changes to this dynamic. Even as banks look to deploy more capital in 2025, equity capital for new construction is difficult to obtain as most developments do not pencil. Given the long lead time for new construction, this supply dynamic looks poised to support the industry for some time. In the meantime, with approximately 2,000 unit starts per quarter, the industry is not building sufficient capacity to house the 4 million net additional 80-plus population projected through 2030. In summary, Sonida Senior Living, Inc.'s focus on results-driven operational strategies, operational excellence, and capital allocation yielded another quarter of strong performance and portfolio expansion. Our team is highly energized by the transformation of the company in 2024 and committed to continued excellence and value creation in 2025 and beyond. This concludes our prepared remarks. Operator, please open the line for any questions.

We are now opening the floor for the question and answer session. Your first question comes from the line of Ronald Canden from Morgan Stanley. Your line is now open.

Hey. Just two quick ones for me. Just one, just starting a little bit on the fundamentals. I know you have the $100 million target out there and so forth. Just where is sort of pricing going out today? How does that compare to sort of what it was last year? And, you know, I know you mentioned about sort of the labor costs were getting better. Just a little bit more color there as well, what you are anticipating as immigration sort of gets going? Thanks.

Thank you, Ron. Good morning, and good to catch up with you. So a couple of things just on the overall landscape and the trajectory of the recovery. I would say that, you know, from a first-off pricing perspective, you know, we do feel like 2025 is going to be another strong year in line with the types of gains that we saw in 2024. So we feel like with occupancy levels where they are at, especially in the same store, that we can continue to push forward on pricing. So, again, I think a good story there. And then on the community that we have acquired, we have seen really good kind of initial performance, especially on the expense management side. Our focus for 2025 is accelerating the recovery really top line on those new communities that we have brought on board because they do have occupancy opportunity with a Q4 average at 76%. So we think there is good room to grow there. And then the revenue profile of those new communities just from a rate perspective is higher than our same store as well. So we feel like with that good occupancy opportunity, you know, there is also the transfer for margin expansion going into 2025. So I think really focused on strong acceleration of occupancy recovery for newly acquired communities. Good continued growth in the same store profile, in line with the top end of our peers. And then on the labor front, just really diligently manage those labor expenses for 2025. We have not seen any major shifts in the market related to any impacts around any changes in immigration. I think, you know, we have some comfort in that the majority of our employees are certified and that, you know, we have not seen any immediate material impact on the labor front. So really kind of controlling those, you know, right around the same levels we have, you know, in the past year or so. Should allow us the opportunity to really grow the business from a margin perspective and get those dollars, you know, closer to, you know, as you mentioned, that kind of $100 million run rate as quickly as we can.

Thank you so much. This now concludes our question and answer session. I would now like to hand back over to Mr. Brandon Ribar.

Thank you all for participating, and this concludes today's conference call.

Thank you for attending today's call. You may now disconnect.