Good afternoon. And welcome to the Sonida Senior Living Fourth Quarter and Full Year 2022 Earnings Conference Call. Today’s conference is being recorded. All statements today which are not historical facts may be deemed to be forward-looking statements within the meaning of the federal securities laws. These statements are made as of today’s date and 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 of these facts that could cause actual results to differ are detailed in the earnings release the company issued earlier today, as well as in the reports 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 at https://www.sonidaseniorliving.com/investor- relations and was furnished in an 8-K filing this morning. Also, please note that during the call, the company will present non-GAAP financial measures. For reconciliations of each non-GAAP measure for 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 CEO, Brandon Ribar. Thank you. You may begin.

Thank you, Doug. Good afternoon and welcome to our 2022 year-end earnings call. I am joined this afternoon by Kevin Detz, our Chief Financial Officer. Consistent with our approach for the Q3 call, we will be referencing our publicly available year-end investor presentation as we discuss our strategic priorities, operating results for the year and initial comments on Q1 2023 trends. You can find our latest presentation at sonidaseniorliving.com in the Investor Relations section if you would like to follow along. While today’s results primarily reference 2022, we have nearly reached the end of Q1, a first quarter that for the first time since 2019 feels upbeat from an overall senior living landscape relative to recent years. COVID-19 and influenza cases across our Sonida communities were materially reduced and far less severe on the whole compared to recent winters. The health of our residents, the stability of our leadership and care teams and the continued delivery of high quality care and wellness services all contributed to occupancy and rate improvement in Q4 and stable occupancy through the first two months of Q1. We are pleased with the revenue increase exceeding 10% for the full year 2022, with occupancy returning to pre-pandemic levels by Q4 and resident rates increasing 3.6% year-over-year with additional rate initiatives underway. With the new management team in place, we have accelerated our commitment to pricing our units based on the value our services support. Overall, rate improvement efforts are -- in Q1 are materially ahead of the 2022 average on both lease renewals and re-leasing spreads. These increases and further occupancy expansion will support another year of strong revenue growth in 2023. Additionally, investment in labor management capabilities and proprietary tools, combined with a heightened focus on managing discretionary spend are foundational to delivering accelerated near-term…

Thanks, Brandon. I will be picking up on slide five for those following along in the deck. Despite a continued challenging operating environment, the company realized a seventh straight quarter of both occupancy and revenue growth, as seen on slides five through eight of the investor presentation. Please note that these slides are presented on both a consolidated and same-store basis. The 2022 acquisition of two smaller independent living communities in Indiana accounts for the difference in rate KPIs between these two presentations. We have now seen portfolio occupancy attain pre-pandemic levels with more room for expansion in 2023. With the foundation of occupancy recovery firmly in place, we are targeting meaningful but responsible in-place and market rate increases. Based on our recent investments in programming and physical plant, we believe these increases are sustainable and will significantly contribute towards the recapture of historical margins. Specifically, RevPAR increased 1.7% from the previous quarter or 6.8% on an annualized basis as the company utilizes a rolling anniversary convention. In addition to strong occupancy, the increase is primarily a result of management’s recent organizational realignment and refocus on rate. Part of this refocus includes enhanced communication and transparency with our community leaders, which in turn, assist in individual rate conversations with our residents and love ones. Amongst other revenue initiatives more fully described on page nine, we continue to push on our recently implemented resident rate review cadence, which again expands transparency and market awareness for each of our community and sales leaders. During the quarter, we invested in an internally developed resident rate cube that incorporates multiple attributes into an overall rate -- resident rate assessment. Moving on to slide 10 in the investor presentation. Last quarter, we discussed the dilutive impact contract labor was having on our margin recovery. For…

Thank you, Kevin. I will conclude today’s presentation by revisiting our strategic pillars, team, value and operational excellence. We believe best-in-class execution in these areas is key to delivering continued improvement in the business. The investment we have made in developing best-in-class leadership teams at the community level has proven essential to creating a valued experience for our residents as we increase rates on both existing and newly leased units. Emphasizing these three pillars creates a differentiated experience for our residents, families and team members, and will deliver strong operating results within current and future Sonida communities. Doug, if you could please open the line for questions at this time.

Thank you. [Operator Instructions] Our first question comes from the line of Steve Valiquette with Barclays. Please proceed with your question.

Hi. This is Amin Zezeiri [ph] on for Steve Valiquette. Thanks for taking my question. So could you…

Hey, Amin.

Hi, there. Can you just add any more color on the defaults that were mentioned in the press release, is there any timeline as to any potential resolution here? And could you also give us a sense of kind of the advance of any more or the likelihood of any more defaults in the imminent future? Thank you.

Sure. I will take that one, Amin. This is Kevin speaking. And so the defaults that you referenced that we disclosed in our earnings release and then later in the 10-K are due to the non-payment of our mortgages in February and March on four of our communities that are secured by loans with Protective Life. So at this point, we have gotten the reservation of rights letter, but we are not in a formal event of default and we believe that we are having productive conversations with the lending group to address this and the broader debt composition profile overall.

Okay. Then -- and you think then, could you also just quickly confirm your next significant maturity kind of beyond these loans, when would you say that is for the company given?

Yeah. July 1st of next year, there are 12 loans that are due under Fannie Mae.

Okay. Great. And just one or two more questions if I may.

Okay.

Is it possible for you to also just elaborate on the going concern that you also disclosed in your earnings release today. Can you give us a little bit of sense about how you think this is going to affect performance for the rest of the year? And then also -- and I know this has not historically been done, would you be able to add any more color or guidance for either EBITDA or any acquisition disposition activity going forward? Thank you.

Yeah. Yeah. So I think I will take that and then kick it over to Brandon to see if he has concluding thoughts. But the going concern is simply related to our current cash balance and the operating performance and the cash profile of the company right now. But relative to the discussions we are having and the cash preservation initiatives that we disclosed, we do feel strongly that we are going to be able to move past this. And when we do, which we hope will be in short order, we feel like our operational -- all of our operational indicators and trends are pointing in the right direction. But I think Brandon will want to talk to that a little bit more.

Yeah. I think really important to your question is, what is going to be -- how will that going concern language impact the way we run the company. And I think the short answer is that we feel very confident about the way we are running the company today and the investments that we have made in our portfolio over the last year and a half and we believe those investments and the ongoing operations are continuing to improve. I referenced the strength that we are seeing on the rate front in terms of our re-leasing spreads and our in-place rent increases in December, January and February at 8%, which if you kind of go back and look at our 3.6% increase in 2022, we really are pleased with where we are running in the beginning part of the year and that carries forward, as you know. So we are going to be very focused on really delivering the value for our residents, because we believe that supports the higher priced product. And then on the kind of the expense management side, continued benefit and improvement and stability on the workforce labor cost front will also benefit us. And so, I’d say that, we are very focused on continuing with the plans that we have in place to deliver incremental and accelerated improvement on the margin front and I think our teams are excited about 2023 and especially coming out of a winter where we were able to hold occupancy and not see the impact of the traditional seasonal impact on senior leaving. So we feel like we have got a good jumping off point for where we need to be for the rest of the year.

Okay. Great. That’s very helpful. Thank you again.

Thank you.

There are no further questions in the queue. I’d like to hand the call back to Brandon Ribar for closing remarks.

This concludes today’s conference call. Thank you all for participating and we will speak with you all again soon. Take care.

Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.