Financial Data and Key Metrics Changes - Year over year normalized FFO per share grew by 9% to $0.87, with total company same store cash NOI increasing by 7% [5][29] - Full year normalized FFO guidance midpoint raised to $3.44 per share, representing 8% year over year growth at the midpoint [5][32] - Company-wide same store cash NOI growth expectations improved to 7% at the midpoint [6][33] Business Line Data and Key Metrics Changes - SHOP communities in the US delivered 18% same store cash NOI growth in Q2, with revenue growing over 8% for the entire same store SHOP portfolio [7][14] - Outpatient medical and research business reported same store cash NOI growth of 1.7% year over year, with outpatient medical growing NOI by 2.2% [29] - Research business, representing 8% of NOI, experienced a decline of less than 1% year over year due to lower rents on certain tenants [30] Market Data and Key Metrics Changes - The 65+ population is projected to represent 20% of the US population by 2030, driving demand for outpatient medical services [10] - New construction starts in senior housing are at record lows, with only 2,000 units started in Q2, leading to supply constraints [12] Company Strategy and Development Direction - The company is executing a "one two three" strategy focused on driving organic growth in SHOP communities, making value-creating investments in senior housing, and maximizing performance in the balance of the portfolio [5][6] - The strategy includes expanding the SHOP footprint and enhancing relationships with high-performing operators to drive growth [19][20] - The company anticipates continued multiyear NOI and occupancy growth opportunities due to favorable macro conditions and supply constraints [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing aging population and the favorable supply-demand dynamics in senior housing [4][10] - The company expects to continue improving its balance sheet and leverage through organic growth and equity-funded investments [30][31] - Management highlighted the importance of data analytics and operator relationships in driving performance and occupancy growth [20][79] Other Important Information - The company has raised its full year 2025 senior housing investment volume guidance to $2 billion, reflecting increased market activity and a growing pipeline of investments [8][25] - The company reported a record level of liquidity at $4.7 billion as of June 30, bolstered by recent capital raises [31] Q&A Session Summary Question: Can you provide additional color on the sequential occupancy gain in Q2 2025? - Management noted a strong occupancy growth of 60 basis points in June versus May, with July expected to maintain or exceed this momentum [36][38] Question: How is the competitive landscape affecting your transaction activity? - Management indicated that while competition has increased, they have been able to maintain momentum in investment activity and continue to pursue high-performing communities [39][40] Question: Can you discuss the initiatives to improve move-ins? - Management highlighted the effectiveness of data analytics and collaboration with operators to drive sales and improve occupancy, particularly in independent living [45][48] Question: What is the expected impact of the new healthcare bill? - Management expects minimal immediate impact from the bill, as many provisions will take effect over a long period, but sees potential benefits for outpatient medical services [51][52] Question: What is the historical high occupancy for the outpatient medical portfolio? - The historical high occupancy is around 93-94%, with current occupancy hovering around 90% [57][58] Question: How does the occupancy growth impact RevPOR? - Management explained that higher occupancy leads to better pricing opportunities, with significant margin expansion expected as occupancy increases [66][95]