Core Points - Extendicare Inc. has completed a private placement of common shares, issuing 10,640,000 shares at an issue price of $18.80, resulting in gross proceeds of approximately $200 million [1][2] - The net proceeds of approximately $192 million will be used to partially fund the acquisition of CBI Home Health by Extendicare's subsidiary, ParaMed Inc. [3] - The private placement was co-led by CIBC Capital Markets and BMO Capital Markets, along with a syndicate of underwriters [2] Financial Details - The total gross proceeds from the private placement amount to approximately $200 million, with net proceeds expected to be around $192 million after deducting underwriters' fees and expenses [1][3] - The previously announced $150 million equity bridge facility will be cancelled following the closing of the private placement [5] Company Overview - Extendicare is a leading provider of care and services for seniors in Canada, operating 99 long-term care homes and delivering approximately 13.5 million hours of home health care services annually [7] - The company employs around 28,000 qualified team members dedicated to providing high-quality care [7]

Core Insights - NextNRG has executed a 28-year Power Purchase Agreement (PPA) with Sunnyside Nursing and Post-Acute Care Center, marking a significant transition into long-term ownership of revenue-generating energy assets, expected to generate approximately $5.0 million in gross revenue over the agreement's lifespan [1][2][7] Company Developments - The PPA positions NextNRG in the long-term care and assisted living sector, which has a total addressable market exceeding $3.2 billion annually, projected to grow to $7–8 billion over the next decade [2] - NextNRG will develop a multi-source microgrid at Sunnyside, incorporating 409 kW of rooftop solar, a 300 kW battery energy storage system, and gas-powered backup generation, expected to produce around 627,000 kWh in its first year [5][6] Industry Context - Regulatory pressures are increasing demand for on-site resiliency solutions in healthcare facilities, with states like California mandating backup power systems capable of operating for 96 hours during outages [3] - The PPA reduces financial risk for healthcare facilities by providing predictable energy pricing and eliminating the need for high capital expenditures on resiliency infrastructure [4]

Financial Data and Key Metrics Changes - Adjusted funds from operations (AFFO) for Q3 2025 were $0.79 per share, with funds available for distribution (FAD) at $0.75 per share, reflecting strong revenue and EBITDA growth driven by acquisitions and active portfolio management [4][25] - The dividend payout ratio decreased to 85% for AFFO and 89% for FAD, indicating improved financial health [4] - The 2025 AFFO guidance was raised to a range of $3.08 to $3.10 per share, representing an 8% year-over-year growth compared to 2024 AFFO of $2.87 per share [4][29] Business Line Data and Key Metrics Changes - The core portfolio consists of 1,024 facilities, with 60% being skilled nursing facilities and transitional care facilities in the U.S. and 40% in U.S. senior housing and UK care homes [13] - Trailing 12-month operator EBITDA coverage for the core portfolio increased to 1.55 times, up from 1.51 times in Q1 2025, indicating improved financial stability among operators [13][14] Market Data and Key Metrics Changes - Omega Healthcare Investors completed over $978 million in new investments through October 2025, with $850 million (87%) allocated to real estate investments [17] - The company reported $151 million in new investments during Q3 2025, including $67 million in real estate acquisitions and $84 million in real estate loans [18] Company Strategy and Development Direction - The company aims to enhance shareholder value by allocating capital primarily to healthcare real estate, focusing on growing FAD per share on a risk-adjusted basis [6][12] - Omega is expanding investment structures to align with operators, including joint ventures and minority interest investments, to achieve higher returns over time [7][10] - The company is evaluating RIDEA structures in both the U.S. and U.K. to enhance investment flexibility [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of the eldercare industry, anticipating substantial market opportunities in both the U.S. and U.K. [23] - The company is monitoring potential impacts from Medicare cuts and state budget allocations but remains optimistic due to strong fundamentals and demographic trends [33][34][76] Other Important Information - Omega's balance sheet remains strong, with $737 million in cash and a fixed charge coverage ratio of 5.1 times [27][28] - The company has entered into a new $2.3 billion credit facility to improve liquidity and capital structure [27] Q&A Session Summary Question: Details on pursuit of higher growth shop or RIDEA opportunities - Management indicated that investment volumes will depend on available opportunities and emphasized a focus on long-term value creation [38][40] Question: Future dividend growth potential - The board is considering a pathway for dividend increases, with a focus on maintaining a balance between dividends and capital for growth [42] Question: SABR portfolio coverage and occupancy trends - Coverage for the SABR portfolio is trending above 1.46 times, with occupancy in the low 90% range [44][45] Question: Strategy behind lower yield for OPCO investment - Management highlighted that the projected cash flow from the OPCO investment is expected to yield high returns over time, despite a lower initial yield [53][55] Question: Labor availability issues in the U.S. versus the U.K. - Wage increases are matching inflation, with the U.K. facing fewer staffing issues compared to the U.S. [62] Question: Medicaid cuts and state budget concerns - Management is monitoring state budgets but remains confident in the company's positioning and coverage levels [76][77]

Core Insights - Extendicare Inc. reported strong financial results for Q2 2025, with significant growth in revenue and adjusted EBITDA, driven by strategic acquisitions and increased demand for services [3][8][14]. Financial Performance - Revenue for Q2 2025 increased by $35.0 million to $383.4 million, representing an 11.4% growth when excluding out-of-period funding from Q2 2024 [14]. - Adjusted EBITDA rose by $5.3 million or 15.4% to $39.8 million, reflecting growth in home health care and improvements in long-term care [8][14]. - Net earnings increased by $6.0 million to $31.9 million, supported by higher adjusted EBITDA and other income [14][21]. Acquisitions and Transactions - The company completed the acquisition of Closing the Gap for approximately $75.1 million, expected to add 1.1 million service hours to the home health care segment [3][9]. - Extendicare acquired nine long-term care homes from Revera for approximately $41.3 million, enhancing its portfolio [6][14]. - The sale of three long-term care projects to Axium JV generated net cash proceeds of $56.3 million, resulting in a gain of $11.1 million [4][14]. Operational Highlights - Home health care average daily volume (ADV) increased to 33,310, a 10.9% rise from Q2 2024 [8][22]. - Long-term care average occupancy improved to 98.3%, up 50 basis points from the previous year [17]. - The number of third-party and joint venture beds serviced by SGP reached approximately 149,300, a 5.9% increase from the prior year [23]. Strategic Initiatives - The Ontario government announced a new capital funding policy for long-term care homes, providing greater funding flexibility for redevelopment projects [5]. - Extendicare is advancing 18 redevelopment projects to align with the new funding program [5]. Financial Position - As of June 30, 2025, Extendicare had cash and cash equivalents of $72.6 million, with access to an additional $152.2 million under its revolving facility [25]. - The company increased its senior secured credit facility to $375.0 million, enhancing its liquidity position [3][8]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.042 per share for August 2025, payable on September 15, 2025 [30].

Core Insights - Extendicare Inc. reported strong financial results for Q2 2025, with significant growth in revenue and adjusted EBITDA, driven by strategic acquisitions and increased demand for services [3][8][15]. Financial Performance - Revenue for Q2 2025 increased by $35.0 million to $383.4 million, representing an 11.4% growth when excluding out-of-period LTC funding from Q2 2024 [15][29]. - Adjusted EBITDA rose by $5.3 million or 15.4% to $39.8 million, reflecting growth in home health care and long-term care segments [8][15]. - Net earnings increased by $6.0 million to $31.9 million, supported by higher adjusted EBITDA and other income [15][30]. Strategic Acquisitions - The company completed the acquisition of Closing the Gap for approximately $75.1 million, expected to add 1.1 million service hours to the home health care segment [3][10]. - The acquisition of nine LTC homes from Revera for $41.3 million was finalized, enhancing the company's long-term care portfolio [6][15]. - The sale of three LTC projects to Axium JV generated net cash proceeds of $56.3 million, resulting in a gain of $11.1 million [4][15]. Operational Highlights - Home health care average daily volume (ADV) increased by 10.9% to 33,310 in Q2 2025 [8][23]. - Long-term care average occupancy rose to 98.3%, up 50 basis points from the previous year [19][20]. - The number of third-party and joint venture beds serviced by SGP reached approximately 149,300, a 5.9% increase from the prior year [24]. Financial Position - As of June 30, 2025, Extendicare had cash and cash equivalents of $72.6 million, with access to an additional $152.2 million under its revolving facility [26]. - The company increased its senior secured credit facility to $375.0 million, enhancing liquidity for future growth [3][8]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.042 per share for August 2025, payable on September 15, 2025 [31].