管理層發言
Hello, everyone. Thank you for joining us and welcome to the Sonida Senior Living Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. To withdraw your question, press 1 again. I will now hand the conference over to Megan Caldwell, VP of Investor Relations. Megan? Please go ahead.
Thank you, operator. All statements made today, 08/10/2026, which are not historical facts, are forward-looking statements within the meaning of federal securities laws. The company expressly disclaims any obligation to update these statements in the future except as required by law. Actual results or performance may differ materially from forward-looking statements. Certain factors that could 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, 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 and forward-looking statements which may be found in the Form 8-K filing from this morning or at the company's Investor Relations page found at investors.sonidaseniorliving.com. As previously disclosed, the company completed its acquisition of CNL Health Properties Inc., or CHP, on 03/11/2026. Unless otherwise specifically noted or the context otherwise requires, the financial and operating results we are discussing today and that are included in our earnings release and presentation represent the combined company on a pro forma basis for any period presented in which we did not own CHP for the full period, including CHP as if the acquisition had closed on the first day of the period. We believe this pro forma information provides a meaningful method of comparing the performance of the combined business over historical periods. This pro forma information giving effect to the CHP acquisition has not been prepared in compliance with Article 11 of Regulation S-X and does not reflect the actual results we may have achieved had the CHP acquisition occurred on the first day of the applicable period and may not be predictive of future results. Please note that our GAAP financials reflect CHP's results from the closing date only, and our second quarter 2026 financials reflect CHP for the full period without any adjustment. See the disclaimer slide in our presentation for additional information about the preparation of and the limitations associated with this pro forma financial information. Please also 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 and presentation. If you would like to follow along during today's call, you can find Sonida's second quarter 2026 earnings presentation in the Investor Relations section of the company's website. Additionally, we have included supplemental earnings information within our presentation consistent with prior quarter releases. I would now like to turn the call over to Sonida's President and CEO, Brandon Ribar.
Thanks, Megan. Good morning, and thank you for joining us on our second quarter 2026 earnings call. Last quarter, we outlined Sonida's shift from building its foundation to compounding on it, transitioning from survival and stabilization to now, in 2026, compounding. Our compounding phase is well underway with today's results showing clear fundamental momentum, and I am pleased to report a strong second quarter. On a same-store basis, weighted average occupancy increased 240 basis points year over year to 87.8%, reflecting continued gains in move-in volume and sustained execution by our sales, operations, and clinical teams. That top-line growth continued to flow through efficiently to profitability. We are encouraged that this momentum continued into the third quarter, with our total portfolio occupancy increasing sequentially by 40 basis points in July versus June. Q2 same-store community NOI grew 16.9% with NOI margin expanding 250 basis points year over year to 32.6%, underscoring the operating leverage embedded in the portfolio. We are pleased that our operational efforts have demonstrated a significant expansion from our 14% year over year same-community NOI growth in Q1. On a total portfolio basis, for the second quarter, normalized FFO per share was $0.48 with adjusted EBITDA of $50 million, both reflecting the earnings power of the platform as it scales. The strength of these results highlights the caliber of leadership across the operating platform, the effectiveness of our proprietary SPIN business intelligence tools, and the operational discipline to balance onboarding new communities while delivering consistent performance in our core portfolio. The continued integration of the CHP portfolio remains on track, and our pipeline of additional near-term investment opportunities continues to expand, both of which I will cover in more detail later in my remarks. Our primary objective remains generating durable per-share value through the combination of a stronger balance sheet, a differentiated operating model, and a deeper leadership bench. We are also pleased to formally introduce Anton D. Nikodemus as our Chief Operating Officer, a newly created and vital role as we focus on continuing to compound value. Anton's arrival reflects a deliberate investment in enhancing the resident and overall customer experience as we build on a strong operating foundation and position Sonida for long-term competitive advantage as an owner-operator. Anton brings a valuable perspective rooted in hospitality. At its best, senior living is not simply a care business; it is an experience business. Culinary quality, service consistency, resident programming, and the design of the physical environment together with disciplined sales, marketing, and revenue management are details that drive renewals, generate referrals, and sustain pricing power through market cycles. They are also the most difficult things to replicate at scale. As Sonida's platform grows, our ability to embed a hospitality-driven culture at the community level and to hold that standard across a larger and more diverse portfolio is a key source of differentiation in our business model. Anton is here to build and sustain that capability, and we are excited to have him leading that work. This mandate is especially relevant given the pace of integration work underway. As of July 1, 14 communities, more than a quarter of the CHP SHOP portfolio, have transitioned to Sonida management. The execution was smooth; more importantly, it was instructive. Our operational excellence team built over the last several years since we began acquiring assets in 2024 continues to accelerate asset transitions and data migration onto our SPIN platform, enhancing a playbook refined through two years of integration work. To contextualize this a bit, the six communities transitioned at the beginning of May delivered year-over-year NOI improvement exceeding 60% and expanded NOI margin by 850 basis points compared to Q2 2025. Ongoing investment in detailed training and development of new leadership coupled with community-level incentive structures are keeping teams focused and results steady throughout the integration process. We remain confident in the performance of our remaining third-party managers. They have preserved operational continuity and institutional knowledge at the community level and, in a handful of cases, are evolving into longer-term strategic partnerships. A dynamic that is opening incremental opportunities for us across a range of fronts, whether that is deal flow, sourcing networks, or regional density advantages. That same playbook mentality — building infrastructure that gets smarter with each transition — extends beyond the integration itself. It is what underpins the Sonida Performance Insight Navigator, or SPIN. Our proprietary operating platform provides real-time insights around occupancy, rate, and labor trends with datasets coming from over 100 of our communities. We introduced SPIN to our investors for the first time in our April shareholder letter and in further detail on our Q1 call, though it reflects work we have been building for years. SPIN is a proprietary system with layered best-in-class third-party capabilities specifically tailored to how we operate, bringing resident care, workforce, and community-level data into a single real-time view. What has changed since last quarter is scale. Each community acquisition we integrate enriches that dataset and drives further development of predictive insights into resident clinical profiles and labor efficiency. Pivoting to capital allocation: our investment focus remains return-driven, not category-driven. Every dollar deployed is measured against accretion to free cash flow and net asset value per share. We underwrite with the same rigor and cost-of-capital discipline as an institutional investor, but the Sonida advantage lives in what will happen after the deal closes: execute as a best-in-class operator converting operational upside directly into NOI in a way a pure capital allocator cannot. That operating advantage shapes our conviction about the types of assets that create the most value for Sonida shareholders. We are drawn to assets that reward not just an owner, but an operator — where our operational capabilities allow us to lean into a deal, specifically high-quality assets available at a discount to replacement cost in markets with favorable supply-demand dynamics where we see multiple levers to grow occupancy, rate, and margin, rather than a single thesis dependent on cap rate compression. Regional density is a particularly important part of that thesis. Today, local operating density is becoming harder to replicate and more valuable. Our concentrated presence in key markets such as Dallas–Fort Worth, Northern Florida, and Atlanta deepens access to the operating and market data that sharpens our capital deployment decisions. While regional clustering drives referral networks, purchasing power, and labor efficiencies that optimize our operational opportunity. This density is also reinforced by how we are perceived in the market. We believe our platform is resonating with sellers who care about what happens to their communities after a transaction closes. We expect that to become an increasingly important differentiator to our sourcing efforts over time. Together, these dynamics feed the flywheel we described last quarter where every acquisition deepens our operator relationships, adds to the SPIN dataset, and strengthens our density in the markets that matter most. The value of SPIN and our broader integration and operations playbook increasingly reflected in our results. Our Stone joint venture is a case in point. Formed in 2024 to acquire four highly distressed communities across the Midwest, the portfolio NOI has grown 5.6x, driven by a complete overhaul of the operating model to drive both top-line and margin growth. That performance yielded a cash-out refinancing that closed this quarter, returning the full amount of invested capital to Sonida and our joint venture partner, with attractively priced long-duration flexible mortgage debt. Importantly, we believe the growth from this acquisition is far from finished. The portfolio remains in the stabilization phase, with meaningful upside opportunities ahead. We have previously discussed our 2024 cohort, which is currently yielding approximately 11.5% relative to our cost basis, with meaningful further upside ahead. Our 2025 cohort is showing similarly strong momentum. Since Q4 2025, the first full quarter of ownership, occupancy and NOI are up 1.4 thousand basis points and 1.6 thousand basis points, respectively. Notably, occupancy for the 2025 cohort sits at 70.4% as of June, reflecting significant upside ahead. The Stone JV and our other one-off acquisitions to date reflect the kind of value creation we look to replicate as we continue to deploy capital. And we are seeing that same opportunity set in our current pipeline. Today, we are under contract to acquire approximately $88 million of assets that share these same characteristics: attractive markets and well-located buildings where our operating prowess can drive significant uplift in performance. We anticipate these assets to generate a mid-teens unlevered IRR and accretion to normalized FFO and NAV per share on a stabilized basis. This is all consistent with the approach laid out in our April shareholder letter where we are looking for acquisitions that generate outsized return on unlevered cost of capital when compared to our current implied cost of capital in the public markets. We continue to build the pipeline behind this initial $88 million which remains deep and compelling, and our acquisitions team is as busy as it has ever been. We look forward to sharing more on our acquisition efforts in upcoming calls. With that, I will turn the call over to Kevin to walk through the financial results, balance sheet, and asset recycling efforts in more detail.
Thanks, Brandon. Turning to slide 16 in the investor deck, a quick reminder on how we are structuring portfolio reporting. As we outlined last quarter, we report across three groupings: same store, non-same store, and triple net lease. A framework designed to provide a clean read on our core earnings base while isolating the parts of the portfolio still in motion. That second bucket, non-same store, is where our active portfolio management shows up most directly. It includes newly acquired and stabilizing communities, assets undergoing reinvestment or care model conversion, and a targeted set of communities identified for disposition as part of our ongoing portfolio optimization strategy. On that last group, we are making significant progress toward an efficient exit of these non-core positions to redeploy that capital into higher-quality communities that better align with our growth and margin profile. The capital recycling of these 14 communities, which represent less than 2% of total NOI for Q2, should have a deleveraging impact on the company's balance sheet beyond enhancing overall quality and earnings power. We see this as one of the clearest ways to show disciplined capital in action, and it is a dynamic we expect to keep pointing to as the portfolio accelerates a shift to higher-quality, higher-growth assets. The net lease portfolio includes the 15 communities we own that have operating leases in place. Initial lease maturities are between May 2030 and July 2032 and all include five-year tenant renewal options. Turning to slide 17, our same-store portfolio generated strong operating gains in the second quarter, picking up 240 basis points of occupancy on a year-over-year basis. The percentage of same-store communities with occupancy above 90% grew from 43% in 2Q 2025 to 54% today, while the percentage below 80% declined from 30% to 20%. These occupancy gains are supported by increased lead volume from our focused digital marketing efforts coupled with a higher conversion-to-tour ratio. RevPOR grew 4.9% year over year reflecting continued rate strength following the annual renewal of 70% of the company's resident leases in Q1. The overall strong performance in revenue was complemented by well-controlled operating expenses, which yielded an NOI margin of 32.6% for the quarter, an increase of 250 basis points year over year. The continued discipline in labor and non-labor cost management drove an incremental flow-through of 63.4% on the increase in revenue for the same quarter versus the prior year. Also contributing to the widening margins within our same-store portfolio is a steady stabilization of the 2024 acquisition cohort, which continues to increase its absolute NOI contribution with each consecutive quarter. While we are encouraged by Q2's strong operating results, which were highlighted by a 16.9% year-over-year increase in NOI, we see several avenues for margin expansion and a still-maturing same-store portfolio, all anchored into the utilization of the SPIN platform by our community leaders and regional teams. Moving to total portfolio results on slide 18. Total SHOP NOI grew 17.5%, supported primarily by growth in the same-store portfolio. Weighted average occupancy increased 170 basis points year over year to 86.6%, reflecting continued strength across the stabilized core portfolio while incorporating acquired communities with lower starting occupancy bases, assets still in transition, and assets that are being actively recycled out. In addition to these occupancy gains, total SHOP RevPAR also grew 4.9%, with rate opportunities still embedded in our newer and repositioning communities as they continue to mature. As Brandon mentioned, the 2025 cohort's occupancy trajectory has been a standout, and that momentum has flowed through to profitability as well. NOI margin across these four communities moved from negative 1% in Q4 2025, the first full quarter in which all four assets were included, to 15% this quarter, with plenty of runway left on these assets. The pace of stabilization should support meaningful year-over-year NOI contribution when they slip into same store in 2027. More broadly, total SHOP NOI margin for the quarter was 29.9%, a level that we expect to build upon as we execute on our strategies across acquisitions, stabilization, community transitions, and portfolio pruning. We will move to slide 19 now to look at our same-store portfolio in more depth. The steady increase of RevPAR over the last five quarters reflects the company's focus on optimizing resident rates through SPIN, as well as the staggered nature of the legacy CHP rate renewal conventions. The combination of these two factors should provide further rate-increase capture throughout the year and beyond. The company continues to appropriately match level-of-care revenues to its acuity-based staffing model within SPIN, providing another lever to widen margin profile while both occupancy and operational efficiencies climb. Moving to slide 20, you will see our same-store labor efficiency continues to drive up incremental margin flow. In Q2, total labor costs declined 130 basis points as a percentage of revenue year over year to 40.4%, a portfolio low primarily highlighted by a 100 basis point improvement in direct labor, with both contract and other labor remaining minimal and stable. These continued improvements in our labor profile are the direct result of utilization and proficiency of real-time SPIN labor metrics by our community teams. Other non-labor operating expenses also continue to move down relative to increasing revenues, contributing to a 410 basis point spread between RevPOR and ExPOR, and ultimately, the 16.9% increase in NOI from Q2 in the prior year. This three-quarter trajectory reflects the continued evolution of our SPIN labor modules and, more importantly, their broadening adoption and utilization across our community and regional teams. Turning to slides 22 and 23, our balance sheet continues to strengthen as we advance toward our targeted near-term leverage range of 6x to 6.5x. As of June 30, the company's capitalization includes two term loans totaling $575 million, which includes an additional $25 million commitment received in Q2. The two term loans are priced at SOFR plus 195 basis points with step-downs that allow pricing to compress to as low as SOFR plus 130 basis points as leverage is reduced. Subsequent to quarter end on August 7, we completed a $380 million five-year term loan, including two extension options, with Ally Bank. The proceeds from the Ally term loan were used to fully settle the $170 million bridge loan and the existing Allied term loan of $122 million, with the remaining proceeds used to pay down the senior revolving credit facility to increase availability to fund future acquisitions. The Ally term loan, along with the two term loans from the CHP merger in Q1, meaningfully extend our debt maturity profile and address any near-term refinancing risk associated with the company's debt stack. Including the Allied term loan transaction, on a pro forma basis, total debt stands at approximately $1.6 billion at a weighted average interest rate of 5.43%. Eighty-six percent of our total debt is either fixed-rate or hedged. The Ally refinancing also reshapes our maturity ladder meaningfully, with 97% of total debt maturing in 2029 or later and 43% maturing in 2031 or later, prior to the inclusion of extension options. As of the date of the Ally term loan financing, the secured revolving credit facility carries a total commitment of $455 million, of which roughly $166 million is available immediately and continues to provide meaningful incremental capacity to support future growth. Finally, in July, the company issued 672 thousand shares of common stock under the ATM program at an average price of $41.05, resulting in net proceeds of $27.3 million. We anticipate these funds to be used for the equitization of the nearest-term community within our pipeline. We remain pleased with the quality, flexibility, and duration of our capital structure following this transaction as we execute on our growth and delevering strategy. With that, I will pass the call back to Brandon for closing remarks.
Thanks, Kevin. And thank you all for joining us today. Taken together, our second quarter results reflect the strength and durability of the operating momentum we have built across the portfolio. Same-store and total SHOP performance both point to a business generating meaningful top-line growth while translating that growth into outsized margin expansion. Our recent balance sheet actions have further strengthened our financial flexibility to support that momentum going forward. None of this happens without the people behind it. Our team members across each of our communities and in our support roles show up every day for our residents with genuine care and pride, and that dedication is the foundation of everything else that the Sonida story is built on. We are also grateful for the continued confidence of our investors who have partnered with us through this journey and share in our excitement about where Sonida is headed. Thank you again for your time today. We look forward to speaking with many of you in the weeks ahead. Operator, you can open the line for any questions.
分析師問答
We will now begin the question-and-answer session. If you would like to ask a question, to withdraw your question, press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from the line of Ronald Kamdem with Morgan Stanley. Ronald, your line is open. Please go ahead.
Great. I guess just a couple of quick ones for me. Starting with the normalized FFO, $0.48 in the quarter, which looked pretty strong. Can you remind us when you plan to give sort of normalized FFO guidance and how the thinking is going through there?
Hey, Ronald. Good morning. Our goal is to start issuing guidance for the full year 2027 as we continue to pull the entire portfolio together and work through the completion of the integrations from the CHP deal as well as the other acquisitions we have in our pipeline. So that is the goal.
Great. That is really helpful. And then as you sort of take a step back, I am just curious: when you look at the portfolio right now, where in your mind do you think stabilized occupancy can get to over time? And can you overlay how the new COO hire as well as the SPIN platform play into that occupancy trajectory? Thanks.
Certainly. From an occupancy perspective, we see continued improvement. We have seen good year-over-year growth and do not see any major headwinds to that continuing in the foreseeable future. So getting into the low-to-mid 90s seems from our perspective very achievable. Obviously pace will depend on our performance and the market. I would say that the hiring of Anton was a big piece of just the continued improvement in the trajectory of the business. His experience over 30 years in adjacent industries and what he will be able to do in terms of the overall resident and customer experience as we continue to build out our exceptional operating platform is something we are incredibly excited about. His knowledge of the customer and how to create the right type of offering to match and exceed their expectations is something that even in the first couple of months of his joining our team we have been super impressed with. How we continue to build out the operating platform for the future resident and their family is something we are excited to continue down very quickly. On the SPIN tool, the more communities we add into our analytics base, the more we learn about areas of opportunity both on the staffing side — which is exciting because we have a very real-time view of what is going on in our communities — and on rate. Understanding how long units are on the market, how quickly we can get them filled and priced appropriately, and building more real-time pricing capability as we grow occupancy is really important. As you know, when you start exceeding 90% occupancy, it's foundational that you get strong rate growth. We are always trying to balance rate growth with occupancy, and we are excited to have Anton on board to help drive the continued build-out of our SPIN platform and our overall customer offering.
Helpful. That is it for me. Thank you so much.
Your next question is from the line of Rich Anderson with Cantor Fitzgerald. Rich, your line is open. Please go ahead.
Alright. Thanks. Good morning and nice quarter. I wanted to talk about the triple-net portfolio and the recycling plan there. You mentioned the lease expirations and the extensions. To what degree can that process start rolling sooner rather than later? And what is your mindset around cap rates and redeploying the proceeds into growth assets and the spread you would need to redeploy? Any incremental color on timing and the economics to that strategy would be helpful. Thanks.
I would say that as we built the relationship with both of our tenants, we have been impressed with their capabilities and we have a lot of confidence in those structures from a stability perspective. As we have talked about before, ultimately, we are not looking to grow the triple-net business. So I think we will continue to get market color on what a potential recycling would look like if we choose to pursue it in the near to midterm. We are not in any real hurry because these are very strong cash-flowing assets with good underlying metrics. We will evaluate opportunities as they present themselves, and we would look for a meaningful spread to redeploy into growth assets. Based on current market conditions and the asset profiles referenced in our pipeline, we would expect to target recycling opportunities where we could buy assets at a 100 to 200 basis point spread versus where the triple-net would trade today, though there are differing opinions until you pursue a market transaction. We'll be deliberate in our approach over the next six to twelve months to determine whether this is something we want to pursue from a transaction perspective.
Okay. Cool. One quick follow-up: your operating model is pretty unique — almost everything under one roof. When you're out in the market, is there any situation where you're taken out of the running because an operator may want to stay as operator and not transition to Sonida management? Does that create hesitancy to do business with Sonida in some cases?
I would say, overwhelmingly, being part of the Sonida platform has been part of the reason we have been successful. There are occasions where an operator might want to remain in place if they have a very close relationship with the seller, but more realistically, sellers are not interested in limiting value when they take transactions to market and are open to multiple structures. Similar to what we did with the CHP opportunity, if there are strategic opportunities for that operator to remain involved, we are not so rigid that they could not stay on as part of the platform. We like to maintain flexibility when bidding on assets, and we have not seen operator preference be a significant barrier on the deals we've been bidding on.
Quick follow-up. You mentioned regional density being a high priority and named Dallas, Northern Florida, and Atlanta. Where do you see an immediate need to build scale and density that did not make that top-three list today?
We are continuing to look at assets in the Midwest. We have seen strong performance there — the Stone portfolio is positioned well across markets in the Midwest where we are interested in additional density. The Mid-Atlantic, the Carolinas, and Virginia are also areas we are evaluating. Many assets in our pipeline layer into markets where we already have a presence but not a ton of density, so markets like Atlanta or Northern Florida still have runway where we can identify suburbs or complementary product types. We believe there's still plenty of room to grow in those key markets and to expand into others in the Midwest and Southeast as well.
Great. Great color. Thanks very much, everybody.
Star 1 to raise your hand. To withdraw your question, press star 1 again. Your next question comes from the line of Wesley Golladay with Baird. Wesley, your line is open. Please go ahead.
Hey. Good morning, everyone. I want to go to the topic of margin expansion. With the merger, I think you inherited some vendor contracts, and now you have a lot more scale. Do you think you can get after some of these contracts by 2027 and start to see the benefit of scale?
Good morning, Wesley. Thanks for the question. We are already getting out under master contracts in instances where we share the same vendor as the community or the operating company that we are now working with. A lot of that is already in motion. Generally, the contracts are short-term in nature — things like food purchasing or insurance are typically one year or less — so we do not see any headwinds to optimizing the purchasing power of the combined company.
Okay. Thank you for that. And then when you look at your acquisition pipeline, what type of deals are you seeing? You commented on geography already, but are you seeing more value-add, newer assets, or what is in the pipeline?
I would say the pipeline is very consistent with the assets we purchased in 2024 and 2025. There are some that have a little bit heavier lift and therefore stronger risk-adjusted returns, and we are also looking at assets we can apply our operating model to that are not fully stabilized yet. These are not massive turnarounds — examples would be assets in the mid- to high-eighties occupancy where the market-rate profile suggests we can lift rates. Our confidence comes from the fact that these deals look and feel very similar to those we've had success with in 2024 and 2025. We are still buying them at attractive pricing relative to replacement value and feel there is a good near-term path to driving strong NOI recovery once we bring them on board.
Great. Thank you for the time.
Your next question is from the line of Benjamin Hendrix with RBC Capital Markets. Benjamin, your line is open. Please go ahead.
Great. Thank you very much. I appreciate the comments about the SPIN advancement, particularly the RevPOR and ExPOR spread. I am wondering if you could provide additional commentary around how much of the occupancy gain you might be able to attribute to added leadership capacity, marketing, programming, and facility enhancements. Any way to think about how much of the 240 basis points of same-store occupancy growth came from SPIN-enabled or transition facilities?
Ben, we have seen good consistent growth across the board. This quarter we included a breakdown of occupancy levels across various segments — the number of communities at or above 90% and 95% and those still with room for recovery. That tells a story of balance: significant upside exists in the bottom 20% that are still below 80% occupancy, and many of those are communities that have transitioned into the portfolio or were acquired in 2024 and still have runway. We have been able to hold a high number of communities at the 90% and over level. We generally run around 10% of our communities that are effectively full, which is where rate growth is most actionable. The 2025 cohort we discussed is still in the low 70s occupancy, so rolling that into same store next year should allow us to continue generating strong year-over-year occupancy gains in the same-store portfolio. In short, it's a mix of legacy same-store opportunity and incremental gains from newly integrated assets and SPIN-enabled actions at the community level.
Thanks. And then as you look at SPIN's analytical capability and the insight it gives you, is it expanding your M&A pipeline or making new markets more attractive, or are you continuing to focus on core markets where you're building clusters?
SPIN helps us identify where we can be very successful in terms of markets, density, and product mix — IL, AL, or memory care. Being able to tie that into performance of existing assets across same-store and non-same-store cohorts is helpful because we move quickly on off-market deals and underwrite them against what we've achieved elsewhere. Our track record in acquisition performance gives us an edge when discussing deals. We apply SPIN metrics to underwriting new assets — labor model structure, rate growth profile, unit mix (one-bedrooms, two-bedrooms, studios) — to translate our operating knowledge into underwriting, which increases the chance of delivering accretive transactions and integrating them timely.
Thanks.
There are no further questions at this time. I will now turn the call back to Brandon Ribar for closing remarks.
Thank you all for joining our call this morning. Have a great week. Take care.
This concludes today's call. Thank you for attending. You may now disconnect.