Sonida Senior Living Inc (SNDA) 2023 Q3 法說會逐字稿

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 of today's day and the company expressly disclaims any obligation to update these statements in the future.

美好的一天，歡迎參加 Sonida Senior Living 2023 年第三季財報電話會議。今天的會議正在錄製中。今天的所有陳述並非歷史事實，可能被視為聯邦證券法含義內的前瞻性陳述。這些聲明是在今天作出的，公司明確表示不承擔將來更新這些聲明的義務。

Actual results and performance may differ materially from forward-looking statements. Certain of the factors that could cause actual results to differ are detailed in the earnings release, the company issued earlier today, as well as in the report 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.

實際結果和表現可能與前瞻性陳述有重大差異。該公司今天稍早發布的收益報告以及該公司不時向美國證券交易委員會提交的報告中詳細介紹了可能導致實際結果不同的某些因素，包括年度報告中包含的風險因素表10-K 上的報告和表10-Q 上的季度報告。

Please see today's press release for the full Safe Harbor statement, which may be found at www.Sonidaseniorliving.com/investorrelations and was furnished in an 8K 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.

請參閱今天的新聞稿，以了解完整的安全港聲明，該聲明可在 www.Sonidaseniorliving.com/investorrelations 上找到，並於今天上午以 8K 文件形式提供。另請注意，在本次電話會議中，該公司將介紹非公認會計準則財務指標。用於根據最具可比性的 GAAP 衡量標準對每項非 GAAP 衡量標準進行調整。另請參閱今天的新聞稿。

At this time, I would like to turn the call over to Sonida Senior Living CEO, Brandon Ribar.

現在，我想將電話轉給 Sonida Senior Living 執行長 Brandon Ribar。

Thank you, Camilla. And 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 and 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 the Sonidaseniorliving.com in the Investor Relations section if you would like to follow along.

謝謝你，卡米拉。下午好，歡迎參加我們的 2023 年第三季財報電話會議。今天我們的財務長 Kevin Detz 也加入了我的行列。今天早些時候，我們發布了第三季收益和投資者介紹，本次電話會議將引用這些內容。當我們討論本季的策略重點和經營績效時，如果您想關注，可以在 Sonidaseniorliving.com 的投資者關係部分找到我們的最新演示。

In addition, we have included supplemental earnings information 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.

此外，我們還在投資者簡報中包含了與上一季發布的內容一致的補充收益資訊。索尼達康復故事非凡的一年即將結束。我非常感謝本地、區域和中央支援團隊的整個領導團隊的貢獻。

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 one 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%.

第三季末標誌著我們作為領導團隊在一起的第一個完整的一年。我對這個團隊在短短一年內的合作程度和成就感到非常滿意。自上次更新以來，我們的投資組合入住率和入住率均加速成長，再加上穩定的營運費用，利潤率比去年同期提高了近 600 個基點，其中 9 月的利潤率超過 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 four years.

第三季的投資組合入住率較上季提高 100 個基點，較去年同期提高 150 個基點，達到 84.9%。最令我鼓舞的是本季後半段的強勁成長以及整個 10 月的持續趨勢。 10 月的平均入住率為 86.2%，當月結束時，現貨入住率為 87.4%，這是我們四年多來的最高水準。

Our leadership team remains focused on three 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 improvement to deliver all in cash generation in 2024 is critical to establishing an attractive investment profile for Sonida.

在我們結束2023 年並為2024 年做準備時，我們的領導團隊仍然專注於價值創造的三個主要驅動力。首先，我們繼續專注於最大限度地提高投資組合的績效，並致力於實現30% NOI 利潤率的關鍵目標。我們認為，改善營運以在 2024 年實現全部現金產生對於為 Sonida 建立有吸引力的投資狀況至關重要。

Second, we are committed to further strengthening our balance sheet through ongoing efforts to reduce our key leverage metrics, enhance our current cash flow and create incremental value for our shareholders. We continue to proactively work through remaining opportunities to enhance our debt profile.

其次，我們致力於透過持續努力降低關鍵槓桿指標、增強當前現金流量並為股東創造增量價值，進一步強化我們的資產負債表。我們將繼續積極利用剩餘的機會來改善我們的債務狀況。

Finally, growing our business through accretive acquisitions and strategic third party management opportunities provide the third major lever for creating value. Market volatility continues with owners, operators and capital providers reaching key decision points related to investing, financing and operating performance.

最後，透過增值收購和策略性第三方管理機會來發展我們的業務是創造價值的第三個主要槓桿。隨著業主、營運商和資本提供者達到與投資、融資和營運績效相關的關鍵決策點，市場波動仍在繼續。

Sonida continues to engage in discussions with investors, lenders and other stakeholders to identify potential near term opportunities. Our most recent acquisition of two independent living assets in Indianapolis completed last year, have grown from 52% occupancy at close to nearly 90% currently. Highlighting our ability to quickly integrate and improve performance of communities we take over and introduce our systems and operating model.

索尼達繼續與投資者、貸方和其他利益相關者進行討論，以確定近期潛在的機會。我們去年完成了印第安納波利斯兩處獨立生活資產的收購，入住率已從 52% 成長至目前的近 90%。強調我們快速整合和提高我們接管的社區績效的能力，並介紹我們的系統和營運模式。

I'll briefly provide commentary on a few key drivers behind operating performance, and Kevin will go into further detail around specific financial and operating metrics. We are still seeing the benefits from our rate growth initiative with both in-place rate increases and positive market rate adjustments contributing to overall rate elevation.

我將簡要評論營運績效背後的幾個關鍵驅動因素，凱文將進一步詳細介紹具體的財務和營運指標。我們仍然看到我們的利率成長計畫的好處，即就地利率上調和積極的市場利率調整都有助於整體利率上升。

We believe the sustainability of our rate profile combined with an ongoing increase in occupancy demonstrates the value we are providing to our residents. The combination of tenured, high-performing local leadership and high occupancy levels will allow for further rate growth in 2024. To complement revenue expansion we continue to identify expense management opportunities and efficiencies.

我們相信，我們房價的可持續性以及入住率的持續增長證明了我們為居民提供的價值。長期任職、表現出色的當地領導層和高入住率相結合，將使 2024 年的利率進一步增長。為了補充收入擴張，我們將繼續尋找費用管理機會和效率。

Investments and utilization of technology supporting more informed labor management practices at the local level, combined with continued rollout of our market-specific talent sharing program remain paramount to controlling total cost of labor. As referenced in Q2, the expansion of dynamic staffing pools in dense markets and the implementation of monitoring technology to staff based on resident needs, has contributed to an 80% year-over-year decline in contract labor, while limiting direct labor increases to approximately 3.5%.

支持地方層級更明智的勞動力管理實踐的技術投資和利用，加上我們針對特定市場的人才共享計畫的持續推​​出，對於控制勞動力總成本仍然至關重要。如第二季所提到的，在密集市場中動態人員配置的擴大以及根據居民需求對員工實施監控技術，導致合約工年減 80%，同時將直接勞動力的成長限制在約3.5%。

Our team is not only focused on addressing lower performing communities, but also enabling our strongest performing communities to reach their full potential. During the quarter, nearly half of our owned communities average occupancy of 90% or greater. With these communities consistently achieving the highest March in customer experience and employee engagement.

我們的團隊不僅專注於解決績效較低的社區問題，而且還幫助我們績效最強的社區充分發揮潛力。本季度，我們擁有的近一半社區的平均入住率達到 90% 或更高。這些社群在客戶體驗和員工敬業度方面持續取得最高成績。

The company delivered cash flow from operations exceeding $10 million for the first nine months of the year, a $7.8 million improvement from the same period in 2022. The resulting improvement in run rate cash flows from operations coupled with the comprehensive restructuring of our mortgage loans position the Company to generate positive cash flow in 2024.

該公司今年前 9 個月的營運現金流量超過 1000 萬美元，比 2022 年同期增加了 780 萬美元。營運現金流的改善以及我們抵押貸款頭寸的全面重組公司預計2024年產生正現金流。

I'll quickly touch on two exciting internal investments in our people and products that will further enhance our resident experience and clinical capabilities for the long term.

我將快速談談對我們的人員和產品的兩項令人興奮的內部投資，這些投資將進一步增強我們的長期住院醫師經驗和臨床能力。

In 2022, we designed and launched a comprehensive memory care program, Magnolia Trails. Over the course of the past year, we have seen exceptional outcomes for our residents and their family members through this program, which has translated to improved operations and memory care occupancy of approximately 88% at the end of October, as compared to an average of 83% in 2022.

2022年，我們設計並推出了全面的記憶護理計劃—Magnolia Trails。在過去的一年裡，我們透過該計劃看到了為我們的居民及其家庭成員帶來的非凡成果，該計劃已轉化為改善的運營和記憶護理佔用率，截至10 月底約為88%，而與平均值相比2022 年將達到 83%。

Beginning in Q1 2024, we will launch Joyful living our enhanced independent living offering in 14 communities with each of our independent living communities offering the product by midyear. Joyful living encapsulates the neatest person centric approach to wellness and life enrichment, emphasizing well-rounded programming that supports physical and emotional health, intellectual stimulation, individual purpose, social engagement and Spirituality.

從 2024 年第一季開始，我們將在 14 個社區推出增強型獨立生活產品“快樂生活”，到年中我們的每個獨立生活社區都會提供該產品。快樂生活概括了以人為本的健康和豐富生活方法，強調支持身心健康、智力刺激、個人目標、社會參與和靈性的全面規劃。

Our goal is to provide residents with a variety of opportunities to achieve their desired potential and enjoyful meaningful lives. On the quality front, we continue to invest in our clinical leadership team as reflected in the recent hiring of a Chief Clinical Officer, Tabitha Obenour. The addition of a talented experienced leader will further expand our clinical offerings and tailor our services to the needs of our residents.

我們的目標是為居民提供各種機會來實現他們想要的潛力並享受有意義的生活。在品質方面，我們繼續投資於我們的臨床領導團隊，最近聘用的首席臨床官 Tabitha Obenour 就體現了這一點。一位經驗豐富、才華橫溢的領導者的加入將進一步擴大我們的臨床服務範圍，並根據居民的需求量身定制我們的服務。

From a clinical outcome perspective, our average monthly move-out volume has remained consistent with 2022, as has our average length of stay. Each of our communities will complete the offering of both COVID and flu vaccine clinics with our national pharmacy partners in Q4 with the goal of encouraging safe and social living environments throughout the higher risk winter months.

從臨床結果的角度來看，我們的平均每月遷出量與 2022 年保持一致，我們的平均住院時間也是如此。我們的每個社區都將在第四季度與我們的國家藥房合作夥伴一起完成新冠疫苗和流感疫苗診所的提供，目標是在風險較高的冬季月份中鼓勵安全和社交的生活環境。

Turning to the overall market, stability on the labor front and increases in average occupancy nationally bode well for the ongoing industry recovery. We also support the thesis shared by other leaders in the industry. So demand continues to rise and both supply coming online and planned new construction metrics remain quite favorable.

就整體市場而言，勞動力方面的穩定和全國平均入住率的上升預示著行業的持續復甦。我們也支持業內其他領導者分享的論文。因此，需求持續上升，上線的供應和計劃中的新建築指標仍然相當有利。

As previously referenced, we are diligently working towards identifying accretive growth opportunities for Sonida, that when coupled with our strong operating trajectory, have the potential to create significant value for our investors. The uncertainty and volatility in the current capital markets driven by the reduction of capital available and the rapid rise in its costs should yield opportunities for those with a creative approach to investing across the capital structure.

如前所述，我們正在努力為 Sonida 尋找增值成長機會，再加上我們強勁的經營軌跡，有可能為我們的投資者創造巨大的價值。當前資本市場因可用資本減少和成本迅速上升而產生的不確定性和波動性，應該會為那些在整個資本結構中採用創新方法進行投資的人帶來機會。

In summarizing Q3, our teams across the business continued to deliver on our 2023 operating plan. The results this year have shown significant progress each quarter with Q3 delivering the highest level of occupancy, revenue and operating margin since 2019.

總結第三季度，我們的整個業務團隊繼續交付我們的 2023 年營運計畫。今年的業績每季都取得了重大進展，第三季的入住率、收入和營業利潤率均達到 2019 年以來的最高水準。

The ongoing retention and development of our leadership teams and the effective rollout of new resident programming and technology remain paramount to continuing the growth trends achieved in 2023.Our team is excited to continue building a best-in-class operating platform to achieve the full potential in each of our 71 communities.

我們領導團隊的持續保留和發展以及新駐地專案和技術的有效推出對於繼續實現 2023 年的成長趨勢仍然至關重要。我們的團隊很高興能夠繼續建立一流的營運平台以充分發揮潛力在我們71 個社區中的每一個社區。

I'll now turn it over to Kevin for a discussion of the financial results.

現在我將把它交給凱文討論財務結果。

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.

謝謝，布蘭登。我將深入探討您提到的一些季度亮點。繼續看幻燈片 6 和 7。我很高興地報告，我們已經執行了第二步也是最後一步，正式修改所有房利美貸款協議，並為今年夏天執行的寬容協議提供了條款。如前所述，這項修改顯著改善了公司的長期債務結構和運作率流動性。

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 three 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.

所有37 筆房利美貸款的債務修改的具體條款包括將貸款期限延長至2026 年12 月或更長，將所需本金支付推遲至少三年，並永久減少截至2024 年6 月的12 個月期間的部分利息。其中，修改後的到期日將節省近 4000 萬美元的現金。

As a reminder, two other significant components were completed in connection with this debt restructure. Ally Bank granted a one-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 conversion capital provided an equity commitment of $13.5 million to further bolster operating liquidity.

提醒一下，與本次債務重組相關的另外兩個重要組成部分已經完成。 Ally Bank 給予最低流動性測試為期一年的豁免，並在2024 年12 月之前分階段恢復最低流動性。在股權方面，我們最大的個人股東轉換資本提供了1,350 萬美元的股權承諾，以進一步增強營運流動性。

This additional access to equity provides an important bridge for the company as it all in run rate cash burn has quickly reduced to levels that support near term cash flow generation. Just as important, the availability of equity allows the Company to settle its nonrecurring liabilities. The most significant of which are two 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.

這種額外的股權獲取方式為公司提供了一座重要的橋樑，因為所有運行率現金消耗已迅速降至支持近期現金流產生的水平。同樣重要的是，股權的可用性使公司能夠解決其非經常性負債。其中最重要的是房利美貸款所需的兩筆 500 萬美元本金付款，一筆於今年延期付款之日支付，另一筆將於 2024 年 6 月到期。

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 80% of the Company's mortgage debt.

我要再次感謝房利美 (Fannie Mae)、Ally Bank 和 Conversant 在這一全面而成功的流程中所發揮的協作作用，該流程解決了公司 80% 以上的抵押貸款債務。

Moving to Slide 8, where I will quickly hit on a few important trends, on our two previous quarterly earnings calls we've discussed the company's programmatic approach to push rental rates to levels that reflect the increased cost to care for our residents and provide enhanced engagement activities.

轉向幻燈片8，我將在其中快速討論一些重要趨勢，在我們之前的兩次季度收益電話會議上，我們討論了該公司的程序化方法，該方法將租金率推高到反映照顧居民成本增加的水平，並提供增強的服務參與活動。

Today, we are pleased to report a meaningful 100 basis point jump in our third quarter average occupancy to 84.9%. We're even further encouraged by what we achieved in the last month of the quarter with same-store average occupancy settling north of 85% and spot occupancy on the last day of the quarter at 86.9% as seen on slide 9.

今天，我們很高興地報告第三季的平均入住率大幅躍升 100 個基點，達到 84.9%。我們對本季最後一個月所取得的成績感到更加鼓舞，同店平均入住率穩定在 85% 以上，本季最後一天的現貨入住率達到 86.9%，如投影片 9 所示。

These new levels of centers are particularly meaningful heading into 2024 as we continue to be successful in increasing average rental rates at the same time. From Q2 to Q3 RevPOR and RevPAR increased 13% and 18% on an annualized basis, respectively. We believe this accretive mix of increased occupancy and rate was only attainable because of the continued excellence and stability and our community leadership teams.

進入 2024 年，這些新等級的中心特別有意義，因為我們將繼續成功提高平均租金。從第二季到第三季度，RevPOR 和 RevPAR 以年化計算分別成長了 13% 和 18%。我們相信，只有持續的卓越和穩定性以及我們的社區領導團隊，才能實現入住率和房價的成長。

Their dedication and ability to deliver on resident satisfaction, instill confidence that the company can drive further top line performance. Using the same quarter over quarter comparison, the Company's NOI of $14.7 million, reflecting a margin increase of 100 basis points to 24.9% and represents $59 million of annualized run rate NOI. In comparison to Q3 2022, NOI increased $4.7 million and NOI margin increased nearly 600 basis points on an absolute basis from its 2022 low watermark of 19%.

他們的奉獻精神和提高居民滿意度的能力，讓人們相信公司可以進一步推動營收績效。與上一季相比，該公司的 NOI 為 1,470 萬美元，利潤率增長了 100 個基點，達到 24.9%，年化運行率 NOI 為 5,900 萬美元。與 2022 年第三季相比，NOI 增加了 470 萬美元，NOI 利潤率從 2022 年 19% 的低水位絕對基礎上增加了近 600 個基點。

On an adjusted basis, excluding nonrecurring state grants this year over year adjusted NOI margin increase still exceeded 5%. And a few slides I will walk through the underlying operating expense trends, which should continue to support margin expansion.

在調整後的基礎上，剔除非經常性國家補助，今年調整後的 NOI 利潤率年增幅仍超過 5%。我將透過幾張投影片介紹基本的營運費用趨勢，這應該會繼續支持利潤率的擴張。

Moving ahead to slide 10, I will detail some of the positive sustained trends on our rate profile. We realized another strong quarter of rent renewals, which yielded a 9% increase on a year-over-year basis. The in-place lease rate success is complemented by a re-leasing spread increase of 2% for the quarter, which already contemplates an elevated average rate in its space.

繼續看投影片 10，我將詳細介紹我們的利率概況中的一些正面的持續趨勢。我們實現了另一個強勁的季度租金續約，年增 9%。就地租賃率的成功與本季 2% 的再租賃價差的增加相輔相成，這已經考慮到該領域平均利率的提高。

During the quarter, we saw the composition of Medicaid revenues as a percentage of total revenues increased from 9% to 11%. This mix shift is a direct result of substantial Medicaid rate increases recently passed through legislation that came online during the quarter. Specifically in Indiana eight owned communities qualified for the Indiana health coverage program's recent rate increase based on the level of care and acuity services being provided by our community teams.

在本季度，我們看到醫療補助收入佔總收入的比例從 9% 增加到 11%。這種混合轉變是最近透過本季上線的立法大幅提高醫療補助費率的直接結果。特別是在印第安納州，有八個擁有社區符合印第安納州健康保險計劃的資格，最近費率根據我們的社區團隊提供的護理和敏銳度服務水平而提高。

Finally, with 97% of our residents having been formally reassessed and re-rated to reflect the care services currently provided, we are now approaching a higher stabilized base for this ancillary revenue stream. This 2023 level of care initiative has contributed an additional $2 million to our annual run rate revenue base.

最後，隨著我們 97% 的居民接受了正式的重新評估和重新評級，以反映目前提供的護理服務，我們現在正在為這項輔助收入流建立一個更穩定的基礎。這項 2023 年護理等級計畫為我們的年度運作收入基礎額外貢獻了 200 萬美元。

Diving into more of the margin drivers, we will move ahead to Slide 11 to discuss recent labor trends. We are extremely pleased that in this tight labor market and hyper inflationary period, we have been able to control our labor costs. With another quarter behind us, we are seeing further stabilization of our labor base. For the first two quarters of the year, labor as a percentage of revenue pushed down from its 2022 average of 48% to 46%.

深入探討更多利潤驅動因素，我們將轉到投影片 11 來討論最近的勞動趨勢。我們非常高興的是，在這個勞動市場緊張和通貨膨脹嚴重的時期，我們能夠控制勞動成本。又一個季度過去了，我們看到勞動力基礎進一步穩定。今年前兩個季度，勞動力佔收入的百分比從 2022 年的平均 48% 下降至 46%。

In the third quarter, this percentage was 46.4%, which included an extra calendar day as compared to Q2 as well as the onetime bonus payout in connection with the company's summer sales rally. Excluding the impact from these items, yields a sub 46% labor to revenue comparison. Finally, contract labor continues to be limited to a handful of communities where market-specific labor constraints persist.

第三季度，這一比例為 46.4%，其中包括與第二季度相比增加的一個日曆日，以及與公司夏季銷售反彈相關的一次性獎金支付。排除這些項目的影響，勞動力與收入的比較低於 46%。最後，合約工仍然僅限於少數仍存在特定市場勞動力限制的社區。

Moving ahead to all other expenses on slide 12, our non-labor expenses have remained flat over the last 15 months, despite the headwinds of elevated inflation over the same period and an occupancy increase of 150 basis points. As a percentage of revenue year to date, non labor expense decreased 200 basis points from the same nine-month period in 2022.

繼續看投影片 12 上的所有其他費用，儘管同期通貨膨脹率上升且入住率增加了 150 個基點，但我們的非勞動力費用在過去 15 個月中仍保持穩定。今年迄今為止，非人工費用佔收入的百分比較 2022 年同期 9 個月下降了 200 個基點。

Continued steadying of both labor and nonlabor costs should yield even more opportunity to drive margin expansion due to reduced incremental expenses required to support additional occupancy beyond the company's already healthy base level.

勞動力和非勞動力成本的持續穩定應該會產生更多的機會來推動利潤率擴張，因為支持超出公司已經健康的基本水平的額外入住所需的增量費用減少。

Moving ahead of the final slide of our deck, I want to walk through a few debt updates beyond the holistic modification described earlier in the presentation. In the third quarter, two loans securing three communities within the Protective Life portfolio were sold to third party lenders. One of these communities was one of the four communities with noncompliant mortgages as of June 30, 2023.

在我們投影片的最後一張投影片之前，我想先介紹簡報前面描述的整體修改之外的一些債務更新。第三季度，保護生命投資組合內三個社區的兩筆貸款被出售給第三方貸款人。截至 2023 年 6 月 30 日，這些社區之一是抵押貸款不合規的四個社區之一。

To secure its ownership in this community, the Company made a $700,000 payment to Protective Life to become current and compliant prior to the sale of the loan. Overall, our debt is comprised of 80% fixed rate debt with the remaining variable rate debt fully hedged, yielding a weighted average interest rate of 4.9% for the portfolio.

為了確保其在該社區的所有權，該公司在出售貸款之前向 Protective Life 支付了 70 萬美元，以使其滿足現行要求並合規。整體而言，我們的債務由 80% 的固定利率債務組成，其餘的浮動利率債務則完全對沖，投資組合的加權平均利率為 4.9%。

Finally, as of today, the Company is in compliance with all financial covenants required under its mortgages with the exception of three communities' mortgage with Protective Life as more fully described in the 10-Q to be filed later today. Heading on a few observations from our earnings release this morning, G&A excluding the non-cash amortization stock of stock-comp, continues to decrease as a percentage of revenues.

最後，截至今天，公司遵守其抵押貸款所需的所有財務契約，但三個社區的具有保護性生活的抵押貸款除外，今天晚些時候提交的 10-Q 中對此進行了更全面的描述。根據我們今天早上發布的收益報告中的一些觀察結果，不包括股票公司的非現金攤銷存量的一般行政費用佔收入的百分比繼續下降。

For Q3, excluding nonrecurring transaction costs primarily related to the debt mode. G&A as a percentage of revenue remains below 10%, down from 14.5% in prior year. Finally, in Q3 the company recognized a noncash GAAP impairment loss of $6 million related to one community in the Protective Life loan portfolio.

對於第三季度，不包括主要與債務模式相關的非經常性交易成本。 G&A 佔營收的百分比仍低於 10%，低於去年的 14.5%。最後，在第三季度，該公司確認了與 Protective Life 貸款組合中的一個社區相關的 600 萬美元非現金 GAAP 減損損失。

In summary, the Company continues to be encouraged by the consistent improvement across all significant KPI's over the last 12 months. This operating trajectory, combined with the company's modified debt structure, has the need to firmly position to take advantage of both organic and inorganic opportunities in the marketplace to drive shareholder value in 2024. Back to you, Brandon.

總之，過去 12 個月中所有重要 KPI 的持續改善繼續令公司感到鼓舞。這種營運軌跡，加上公司修改後的債務結構，需要牢固定位，利用市場上的有機和無機機會，在 2024 年推動股東價值。回到你身邊，布蘭登。

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.

謝謝，凱文。在結束今天的演講時，我將再次認可並感謝整個索尼達的領導團隊。我對這群領導人充滿信心，他們將繼續為我們的居民提供高品質的服務和關懷，同時經營良好的業務。

It's my privilege and honor to share the success they are achieving as we built 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, we'll deliver meaningful earnings growth in 2024.

我很榮幸能夠分享他們在我們將 Sonida 打造成行業領先公司的過程中所取得的成功。隨著 2023 年底的臨近，我仍然樂觀地認為，營收和利潤率的持續成長，加上資本結構的加強，我們將在 2024 年實現有意義的獲利成長。

Camilla, please open the line for questions. Thank you.

卡米拉，請撥打電話提問。謝謝。

Thank you. We will now be conducting a question and answer session. (Operator instructions)

謝謝。我們現在將進行問答環節。 （操作員說明）

We have no questions at this time. And with that, this will conclude today's teleconference. You may disconnect your lines at this time.

目前我們沒有問題。今天的電話會議到此結束。此時您可以斷開線路。

Thank you for you participation.

感謝您的參與。