Good day, and welcome to the Sonida Senior Living Q3 2023 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 updates in the future. Actual results and performance may differ materially from forward-looking statements. Certain of these factors 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 www.sonidaseniorliving.com/investor-relations and was furnished in an 8-K filing this morning. Also, please note that during this call, the company will present non-GAAP financial measures. For 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 CEO, Brandon Ribar.

Thank you, Camilla. Good afternoon, and welcome to our 2023 third quarter earnings call. I'm joined today by Kevin Detz, our Chief Financial Officer. Earlier today, we posted our Q3 earnings investor presentation, which will be referenced throughout this call as we discuss our strategic priorities and operating results for the quarter. 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 within our investor presentation, consistent with the prior quarter release. We are approaching the end of an exceptional year for the Sonida recovery story. I'm incredibly thankful for the contributions from the entire leadership team locally, regionally and in our central support teams. The end of Q3 marked our first full year together as a leadership team. I'm so pleased with the level of collaboration and accomplishments from this group in just 1 short year. Since our last update, our portfolio has experienced accelerated increases in both occupancy and rate that when coupled with stable operating expenses, has delivered margin improvement year-over-year of nearly 600 basis points with September margin exceeding 25%. Portfolio occupancy for Q3 improved 100 basis points sequentially and 150 basis points year-over-year to 84.9%. I'm most encouraged by the strong growth experienced in the back half of the quarter and our continued trend through October. Occupancy averaged 86.2% for the month of October and closed the month with spot occupancy of 87.4%, our highest level in more than 4 years. Our leadership team remains focused on 3 primary drivers of value creation as we close out 2023 and prepare for 2024. First, we continue to focus on maximizing the performance of our portfolio and aiming to approach the key target of 30% NOI margins. We believe operational…

Thanks, Brandon. I will drill down into some of the quarterly highlights that you touched upon, picking up with Slide 6 and 7. I am happy to report that we have executed on the second and final step to formally modify all Fannie Mae loan agreements with terms provided for the forbearance agreement executed this summer. As previously discussed, this modification significantly improves the company's long-term debt structure and run rate liquidity. Specific terms of the debt modification on all 37 Fannie Mae loans include extending loan maturities to December 2026 or beyond, deferring required principal payments for a minimum 3 years and permanently abating a portion of interest for the 12-month period ending in June 2024. All of this will result in nearly $40 million of cash savings over the revised maturity dates. As a reminder, 2 other significant components were completed in connection with this debt restructure. Ally Bank granted a 1-year waiver of its minimum liquidity test with a phased-in liquidity minimum restored by December 2024. And on the equity front, our largest individual shareholder, Conversant Capital, provided an equity commitment of $13.5 million to further bolster operating liquidity. This additional access to equity provides an important bridge for the company as its all-in run rate cash burn has quickly reduced to levels that support near-term cash flow generation. Just as is important, the availability of equity allows the company to settle its nonrecurring liabilities, the most significant of which are 2 required $5 million principal payments on the Fannie Mae loans, one that was paid on the date of the forbearance this year and one that is due in June 2024. Again, I want to thank Fannie Mae, Ally Bank and Conversant for their collaborative roles in this holistic and successful process, which addresses more than…

Thanks, Kevin. I'll conclude today's presentation by once again recognizing and thanking our leadership team throughout Sonida. I have the utmost confidence in this group of leaders to continue delivering high-quality service and care to our residents while running a sound business. It's my privilege and honor to share the success they are achieving as we build Sonida into an industry-leading company. As we approach the end of 2023, I remain optimistic that continued revenue and margin growth coupled with a strengthened capital structure will deliver meaningful earnings growth in 2024. Camilla, please open the line for questions. Thank you.

And with that, this will conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.