Financial Data and Key Metrics Changes - The company reported normalized FFO of 84¢ per share, representing nearly 8% year-over-year growth [26] - Total same store cash NOI grew by 7%, led by SHOP increasing approximately 14% [27] - The company expects 7% normalized FFO per share growth for 2025 [5][9] Business Line Data and Key Metrics Changes - Senior housing operating portfolio (SHOP) delivered 14% year-over-year cash same store NOI growth, driven by increases in occupancy and rate [5][12] - Outpatient medical and research business reported same store cash NOI growth of 1.3% year-over-year [27] - The outpatient medical occupancy increased by 30 basis points year-over-year, with new leasing increasing by 9% [27] Market Data and Key Metrics Changes - The 80+ population is experiencing its highest growth, with an increase of about half a million people this year and 900,000 annually between 2027 and 2030 [6] - The number of new senior housing units started in Q1 2025 was the lowest on record at only 1,287 units [6] - The company’s communities are located in markets with over a thousand basis points of expected net absorption in the coming years [7] Company Strategy and Development Direction - The company is focused on delivering superior multiyear growth through internal and external expansion in senior housing [4] - The investment strategy is centered on senior housing acquisitions, with an increased full-year volume expectation to $1.5 billion [7][30] - The company aims to enhance its portfolio composition through acquisitions, dispositions, and operational improvements [16][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a high degree of macroeconomic uncertainty but believes that senior housing remains a top asset class within real estate [87] - The company is optimistic about strong demand trends and a favorable supply picture, which should benefit them for an extended period [87][88] - Management expects strong move-ins during the key selling season, which runs from Q2 through September [88] Other Important Information - The company has improved its credit profile, with a Q1 net debt to EBITDA of 5.7 times, representing a 30 basis point improvement from year-end 2024 [30] - The liquidity position is robust, with available liquidity of $3.6 billion as of April 2025 [31] - The company has completed over 250 community redevelopment projects in the past two and a half years [20] Q&A Session Summary Question: Can you provide insights on the dynamics of occupancy and margin expansion? - Management indicated that reaching 90% occupancy typically results in around 50% incremental margin, with 70% incremental margin when reaching 100% occupancy [36][37] Question: How is the Canadian portfolio performing at high occupancy? - The Canadian portfolio has shown double-digit NOI growth even at 97% occupancy, indicating that growth can still be achieved at high occupancy levels [40][41] Question: What is the status of the Brookdale assets transitioning to the SHOP portfolio? - The Brookdale communities transitioning to new operators are outperforming those remaining in the lease structure, and management is optimistic about their future performance [66][68] Question: What are the expectations regarding clinical move-outs and their impact on occupancy? - Management noted that clinical move-outs are unpredictable and not correlated with specific trends, but move-in activity remains strong [75][76] Question: Can you elaborate on the pricing power and expectations for the year? - Pricing has been strong, with internal rent increases and favorable street rate trends, indicating good pricing power across the board [80][82]