Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $386.9 million, a 4% increase year over year [6] - Adjusted EBITDAre was $75.1 million, up 17% year over year [6] - Normalized FFO was $14.3 million or $0.06 per share, exceeding analyst consensus estimates [6] - Same property cash basis NOI was $71.5 million, representing a 20.7% increase year over year [15] Business Line Data and Key Metrics Changes - The SHOP segment reported same property NOI of $38.4 million, a 33.6% sequential increase and a 42.1% year over year increase [6] - Average monthly rate in the SHOP segment increased by 4.8% year over year, with occupancy rising by 130 basis points to 80.2% [7] - Medical office and life science portfolio saw same property occupancy at 90.1%, down 10 basis points from the previous quarter [9] Market Data and Key Metrics Changes - The company completed approximately 145,000 square feet of new and renewal leasing activity in the medical office and life science portfolio, with weighted average rents 18.4% higher than prior rents [9] - Known vacates in the medical office and life science portfolio for 2025 are modest at 115,000 square feet, with an active leasing pipeline of 603,000 square feet [10] Company Strategy and Development Direction - The company completed $321 million in property sales in Q1, including significant sales of the Muse Life Science Campus and senior living communities [11] - The company aims to reduce future CapEx spending and increase overall portfolio cash flow through strategic asset sales [13] - The active disposition pipeline includes 65 properties, with expected proceeds between $350 million and $400 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 and 2026 debt maturities, with no debt maturities until 2028 thereafter [21] - The improvement in SHOP NOI and balance sheet strengthening through dispositions and refinancings led to a decline in net debt to adjusted EBITDAre from 11.2 times to 8.8 times [21] - Management is optimistic about the SHOP segment's outlook throughout 2025 [9] Other Important Information - The company reaffirmed its 2025 CapEx guidance of $150 million to $170 million [17] - The recent sustainability report highlights the company's commitment to sustainability across its portfolio [13] Q&A Session Summary Question: Can you provide some color on the occupancy gains for the first quarter? - Management noted that occupancy improved due to capital investments in communities and operational initiatives [25][26] Question: Is the Aleris Life dividend a one-time payment? - Management indicated that the dividend received was more of a one-time payment, though future dividends could be possible [27] Question: Why is the guidance not increased despite strong SHOP results? - Management explained that business interruption proceeds impacted NOI and that they are awaiting clarity on disposition timing before adjusting guidance [29][30] Question: Any specific reasons for flat operating expenses in SHOP? - Management stated that operating expenses were flat sequentially and up about 3% year over year, with expected trends for 2025 [36] Question: What is the expected pricing for upcoming financings? - Management anticipates a weighted average interest rate of about 6.5% for upcoming financings [39]