Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit same-store NOI growth [6][9] - Normalized funds from operation (NFFO) reached $0.44 per fully diluted share, reflecting a 22% year-over-year increase [22] - The company increased its full-year 2025 NFFO guidance to a range of $1.69-$1.72 per fully diluted share, implying growth in excess of 20% year-over-year at the midpoint [23][24] - Net debt to EBITDA improved to 3.5 times, representing a 0.2-time improvement from the previous quarter and a 1.6-time improvement from Q3 2024 [25] Business Line Data and Key Metrics Changes - Trilogy's same-store NOI grew 21.7% year-over-year, with occupancy averaging 90.2% in Q3, up more than 270 basis points from last year [11][12] - The shop segment reported same-store NOI growth of 25.3%, with revPOR up 5.6% year-over-year and NOI margins expanding nearly 300 basis points to 21.5% [13] - Medicare Advantage accounted for 7.2% of total resident days at Trilogy during Q3, an increase from 5.8% a year ago [12] Market Data and Key Metrics Changes - The company closed on over $575 million of acquisitions year-to-date, all within its REIT DEA segments [7][17] - The awarded deal pipeline now stands at over $450 million, expected to close in Q4 2025 and early 2026 [9][19] - Construction starts across senior housing remain near historic lows, while demographic growth in the 80-plus cohort accelerates [14] Company Strategy and Development Direction - The company is focused on building durable long-term growth through operating alignment with best-in-class regional operators and disciplined capital allocation [9][25] - The inaugural corporate responsibility report was published, reflecting the company's governance, social, and sustainability priorities [10] - The company is leveraging Trilogy's centralized revenue management system across other operating partners to optimize revenue [15][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment for long-term care, citing strong demand tailwinds [6][7] - The company expects to maintain occupancy gains achieved through the busier spring and summer selling season, despite entering a historically slower winter season [11][14] - Management anticipates continued pricing power, expecting to price at a rate higher than inflation [30] Other Important Information - The company executed $13 million of non-core dispositions during the quarter, concentrating capital within its operating portfolio [18] - The in-process development pipeline consists of projects with a total expected cost of roughly $177 million, with approximately $52 million spent to date [19] Q&A Session Summary Question: What is the maximum occupancy upside from 90%? - Management indicated that the maximum upside from 90% to 100% is 10%, but future occupancy trends are uncertain due to supply-demand fundamentals [28][29] Question: How competitive is the current market for acquisitions? - Management noted that while there are more assets coming to market, competition is mixed, with both REITs and non-REIT competitors involved [32][33] Question: Can you discuss the acquisition strategy regarding independent living versus assisted living? - The company targets a mix of independent living, assisted living, and memory care, focusing on quality buildings that provide good earnings growth [80][81]