Financial Data and Key Metrics Changes - The company reported a 12% increase in FFO as adjusted year-over-year and an 8% increase year-to-date [4] - Same property net operating income (NOI) increased by 7.4% for the quarter and 5.6% year-to-date [4] - Same property occupancy rose to 96.7%, up 10 basis points from the prior quarter, while SHOP occupancy reached a record high of 92.5%, up 270 basis points year-over-year [5][10] Business Line Data and Key Metrics Changes - The company executed 42 leasing deals totaling 482,000 square feet in the second quarter, including 27 renewals at a 12% spread and 15 new leases at a 19% spread [9] - The redevelopment pipeline totals $142 million with an expected return of 15% [13] Market Data and Key Metrics Changes - The investment sales market for retail assets is thriving, with the company selling $66 million of assets at a blended cap rate of 4.9% [6] - The company has acquired $552 million of high-quality shopping centers at a 7.2% cap rate and sold $493 million of non-core low-growth assets at a 5.2% cap rate [7] Company Strategy and Development Direction - The company’s strategy is anchored by five key strengths, including a concentrated portfolio in the densely populated DC to Boston Corridor and a strong redevelopment pipeline [6] - The company aims to exceed 93% SHOP occupancy by 2025 and is focused on capital recycling to enhance growth [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the retail sector's recovery, noting strong demand for space and upward pressure on rents [5] - The company increased its 2025 FFO as adjusted guidance by $0.02 per share to a range of $1.40 to $1.44, reflecting a 5% growth over 2024 at the midpoint [6][18] Other Important Information - The company has a resilient balance sheet with $1.5 billion in nonrecourse mortgages and only 9% of total debt maturing through 2026 [7][16] - Management highlighted a favorable trend in G&A expenses, projecting a reduction of 3% from 2024 [18] Q&A Session Summary Question: What is the upside potential for occupancy and how is it translating into lease contracts? - Management indicated that they believe they can achieve between 93-94% SHOP occupancy and have real pricing power, allowing for better lease terms and conditions [21][24] Question: What are the current trends in capital recycling and cap rates? - Management noted that the acquisition market is heating up, with banks becoming more active and competitive in pricing, leading to higher expectations from sellers [26][27] Question: Any updates on Kohl's and its impact on the company? - Management is monitoring Kohl's but does not see an imminent decision regarding store closures, as Kohl's is performing well in the Northeast [32][34] Question: How does the company view its redevelopment plans in light of market improvements? - Management expressed confidence in deploying capital into existing assets due to strong tenant demand and the potential for higher rents [40] Question: Can you elaborate on the expected decline in CapEx? - Management explained that the replacement of struggling tenants with high-quality credit tenants and the completion of significant renovations will lead to lower future CapEx [61][64]

Financial Data and Key Metrics Changes - Year-to-date NOI increased by 5% compared to the previous year, with normalized FFO growth per share at 5.7% [4][5] - Second quarter normalized FFO was $0.69 per share, aligning with the midpoint of guidance [17] - Core NOI growth for the second quarter was 6.4%, exceeding guidance by 70 basis points [18] - Year-to-date core property operating income growth is projected at 5% [22] Business Line Data and Key Metrics Changes - The manufactured housing (MH) portfolio generated revenue growth of 5.5% in the quarter, with occupancy over 94% [6][11] - Annual RV revenue grew by 3.9% year-to-date, driven by retention across various accommodations [7] - Core RV and Marina annual base rental income increased by 3.7% in the second quarter [19] Market Data and Key Metrics Changes - Approximately 70% of annual revenue comes from Sunbelt locations, catering primarily to active adults [8] - The company has seen a decline in seasonal and transient rental income, with decreases of 5.6% and 8.6% respectively [19] Company Strategy and Development Direction - The company maintains full-year guidance for FFO per share, supported by strong demographics for MH and RV portfolios [5] - Strategic investments are being made in communities to enhance long-term success, including adding new home inventory [11] - The company is focused on maintaining high occupancy rates and stable revenue streams through community engagement [6][10] Management Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model, particularly during periods of market uncertainty [5] - The company expects to see consistent demand across the MH portfolio, with rate increases planned for the upcoming year [40] - Management remains optimistic about the RV business, despite recent turnover and occupancy challenges [34][41] Other Important Information - The company has no secured debt maturing before 2028, with a well-positioned balance sheet [25] - The company closed on a $240 million unsecured term loan to enhance capital flexibility [26] Q&A Session Summary Question: What caused the revised outlook for core RV Marina revenue? - Management noted that occupancy was the primary driver of the miss, with higher attrition rates in the North and Northeast impacting results [34][35] Question: How does the weakness in RV growth affect pricing power for 2026? - Management indicated that consistent demand remains, and they will establish budget rates for 2026 in the upcoming months [40][41] Question: What is the impact of Canadian customers on demand? - Management observed a lower take rate on early bird reservations from Canadian customers but expects demand to pick up as the season changes [49][50] Question: Can you explain the turnover in the annual RV segment? - Management confirmed that turnover was elevated in specific properties, primarily due to storm damage and seasonal factors [60][61] Question: What is the outlook for home sales for the rest of the year? - Management noted that home sales are currently lower than pre-COVID levels but are in line with historical averages [76][78] Question: What is the expected timeline for backfilling lost occupancy in the annual RV segment? - Management indicated that lost occupancy would be targeted for recovery in the next year through marketing efforts [94] Question: What is driving the reduction in property management and G&A guidance? - The reduction is primarily due to compensation savings from open positions and expected savings from legal and administrative expenses [96]

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]