So it's been a couple of months since we last spoke to you. Go back to August and a lot has happened since then. We've had two rate cuts, another one expected tomorrow.Over that time, how has the real estate landscape changed for you. Yeah. So at this point, we're nearly four years into a real estate correction.Since August, I'd say real estate values have really been flatlining. But we look into 2026 and we feel like we're at an inflection point. We've been bouncing around this bottom for quite some time, ...

Financial Data and Key Metrics Changes - Core FFO improved to $0.69 from $0.68, primarily due to an increase in SHOP NOI and a decrease in interest expense [5][6] - Core FAD improved by $0.04 to $0.72 compared to $0.68 last year, influenced by similar factors affecting core FFO [5] - Pro forma debt to annualized adjusted EBITDA for real estate was 4.7 times, and annualized adjusted fixed charge ratio was 4.6 times [7] - Pro forma liquidity stands at nearly $500 million [7] - Full year 2025 core FFO guidance increased by $0.01, now standing at $2.69-$2.71 [8] Business Line Data and Key Metrics Changes - SHOP segment closed about 85% of the projected $460 million investment pipeline, with over $290 million in SHOP segment investments [3] - SHOP portfolio now includes 21 properties with five operators, three of which are new to LTC, with a gross book value of $447 million [9] - SHOP NOI guidance for 13 properties increased to $10.9-$11.3 million, up from $9.4-$10.3 million [10] - Expected fourth quarter NOI for the remainder of the SHOP portfolio is $4.8-$5.2 million [10] Market Data and Key Metrics Changes - The current opportunity set stands at roughly $1 billion, with nearly $110 million under LOI targeted to close in January 2026 [12] - The average vintage of SHOP acquisitions in 2025 is 2019, indicating a focus on newer assets [39] Company Strategy and Development Direction - The company is focused on expanding its SHOP platform, deepening operator partnerships, and driving long-term accretive returns [16] - The strategy includes recycling capital from non-core assets and adding new operators to enhance portfolio quality [9] - The company aims to build a portfolio of newer assets with competitive advantages as the industry evolves [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong momentum and a solid foundation for growth [16] - The company is positioned to capitalize on favorable demand fundamentals and supply constraints in the senior housing market [3] - Management expects continued strong SHOP NOI growth due to the competitive position of SHOP assets [10] Other Important Information - The company completed the sale of a portfolio of seven skilled nursing assets, generating net proceeds of approximately $120 million and a gain of $78 million [11] - A non-cash write-off of $41.5 million was taken related to Prestige's straight-line effective interest receivable balance [6] Q&A Session Summary Question: Guidance assumptions for core FFO range - Management clarified that the low range includes all closed investments, while the high range includes expected closings within the next 60 days [20] Question: Focus on SHOP deals versus other opportunities - The primary focus is on SHOP deals, although other opportunities will be considered [21] Question: Expected yields and growth for pipeline deals - Initial yields for the $110 million deal are guided at 7% [25] Question: Funding incremental capital - Proceeds from loan payoffs and equity from the ATM will fund investments, with a disciplined approach to equity issuance [28] Question: Growth profile after SHOP investments - Management expects more than 3% growth with targeted low double-digit IRRs due to supply-demand imbalances [37][38] Question: Transitioning operators and potential disruptions - Most acquisitions have retained existing operators, with careful planning to avoid disruptions [50] Question: Prestige's prepayment option and performance - Prestige needs to improve performance to exercise the purchase option, with positive indications for future outcomes [54][57] Question: Opportunities for earnings growth in skilled nursing - The company remains selective in skilled nursing, focusing on transitional care and newer assets [64]

Financial Data and Key Metrics Changes - The company reported a net income per share of $0.79, down 2.5% from the prior year [24] - NAREIT FFO per share increased by 0.8% to $1.19, while normalized FFO per share rose by 3.4% to $1.22 compared to the prior year [24] - FAD for the quarter increased by 8.1% to $56 million [25] - The company raised the midpoint of its normalized FFO guidance per share by $0.09 to $4.80, representing year-over-year growth of 8.1% [7][31] Business Line Data and Key Metrics Changes - SHOP NOI increased by over 29% year-over-year to $3.8 million [18][25] - The annualized SHOP NOI increased by approximately $8.8 million or 57% following the transition of seven properties from leases to SHOP [8] - SHOP revenues for the six months ended June 30 increased by 5.7% to $28.2 million [25] Market Data and Key Metrics Changes - The company has approximately $130 million in unsigned LOIs expected to close in the next few months, including a SHOP deal valued at approximately $74 million [11] - The liquidity at the end of the quarter was approximately $760 million, which includes escrowed forward equity and cash [29] Company Strategy and Development Direction - The company is focusing on expanding its SHOP portfolio, which is believed to provide the highest growth potential with the best risk-adjusted returns [9] - The company aims to maintain a leverage-neutral approach while also having the flexibility to utilize equity for funding investments [41][43] - The company is committed to improving governance and has made significant board changes in response to shareholder feedback [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities and confidence in capitalizing on these opportunities [13] - The company expects double-digit NOI growth for the SHOP segment in 2026 [17] - Management noted some recent softness in occupancy but remains optimistic about reversing this trend [19][52] Other Important Information - The company announced a dividend increase of 2.2%, marking the first increase since 2021 [30] - The company completed the acquisition of a senior housing portfolio for $63.5 million during the quarter [27] Q&A Session Summary Question: What is driving the delay in closing some investments? - Management characterized it as a timing issue, with a robust pipeline still in place [36][37] Question: Are there larger portfolio transactions being evaluated? - Management confirmed that larger deals are being evaluated but emphasized the importance of having the right operating partner [39][40] Question: How is the relationship with Discovery being managed? - Management indicated that Discovery remains a partner and that there is ongoing NOI growth within that portfolio [48] Question: What caused the recent softness in occupancy? - Management attributed it to changes in local leadership and higher than normal move-outs, expecting a return to normal trends [52][53] Question: Can you provide an update on NHC discussions? - Management confirmed ongoing discussions and noted that NHC's coverage has improved to over four times [66][67]

Portfolio Overview - As of December 31, 2022, the company's portfolio consisted of investments in 192 properties [39] - The annualized adjusted NOI for contracts in place at December 31, 2022, was $2368 million [15] - Skilled nursing facilities represent 36% of the asset class [16] - Entrance fee assisted living represents 22% of the asset class [16] Financial Performance - Total revenue for Q4 2022 was $70669 thousand, compared to $69668 thousand in Q4 2021 [39] - Rental revenue (GAAP) for Q4 2022 was $53764 thousand [39] - Normalized FFO per diluted common share was $085 in Q4 2022 [39] - Regular dividends declared per common share were $090 in Q4 2022 [39] Capital Structure - Total debt as of Q4 2022 was $1147511 thousand [39] - The company targets a 60/40 equity/debt funding mix [31] - Secured debt accounted for 67% of total debt [47] - Unsecured debt accounted for 933% of total debt [47]