OPERATIONS

With a strong emphasis on driving occupancy and revenue in Q3, we set a goal of reaching 80% occupied by August 1. This goal was achieved, and we ended Q3 at 85% leased. Our Memory Care remains full, and we have leased all Assisted Living 2 bedrooms – creating a sense of urgency for those looking for our remaining 1 bedrooms. The sales team exceeded the quarterly sales goal for Q3, and we expect sales and occupancy in Q4 to continue on the same trajectory. The direct result of this increased occupancy was an average gross revenue increase of 29% from Q2 to Q3. Due to this surge in occupancy, we are in the process of increasing street rates.

We continue to work with our banking partners and plan on a refinance on this community upon stabilization. Our goal through that refinance is to bring debt up to levels supported by our stabilized value and to return preferred equity returns and capital. We will continue to keep you apprised of those refinancing developments as we move towards a stabilized operation.