Financial Data and Key Metrics Changes - For the year ended 2025, cash NOI was $169.9 million, a 0.8% increase from $168.6 million in 2024, driven by acquisition activity and a 0.9% increase in same-store cash NOI [18] - FFO per share for 2025 was $2.16, a 3.6% increase from the previous year, while AFFO per share was $2.18, a 5.8% decrease from the previous year [19] - The portfolio-wide EBITDARM rent coverage ratio improved to 5.9x in 2025 from 5.3x in 2024 [21] Business Line Data and Key Metrics Changes - The company acquired 6 healthcare facilities for approximately $150 million, totaling 241,000 sq ft, and closed on an additional facility for $43.1 million after year-end [5] - The company completed over $7 million in redevelopment opportunities, indicating a focus on enhancing existing properties [6] Market Data and Key Metrics Changes - The company reported a significant improvement in tenant credit quality, with investment grade rated tenant guarantor and affiliate percentage increasing by 2.3% year-over-year to 40.6% [12] - The company retained 90% of scheduled expiring tenancy on a square footage basis, with only 0.5% of ABR represented by non-renewing tenants [10] Company Strategy and Development Direction - The company aims to continue executing its strategy of growing a high-quality, necessity-based healthcare real estate portfolio designed to deliver predictable income streams [4] - The company is focused on capital allocation that creates long-term value, including acquisitions and investments in existing properties [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the demographic shift with the baby boomer generation reaching 65 or older by 2030, which is expected to increase outpatient healthcare spending to nearly $2 trillion [16] - The company believes it is well-positioned to capitalize on market opportunities and maintain strong operational performance [15] Other Important Information - The company has a total liquidity exceeding $480 million, providing substantial capital for acquisitions and growth initiatives [22] - The company executed purchase and sale agreements on three properties, with the Saginaw healthcare facility sold for gross proceeds of $14.5 million [9] Q&A Session Summary Question: How much rent was collected on the Alexandria building being sold? - The Alexandria property had scheduled rent of $40,000 per month, with holdover rent paid at 125% of scheduled rent, totaling $120,000 in the fourth quarter [27] Question: Is there a material difference between the leased percentage shown and what's commenced? - The El Segundo property has a free rent period, but is considered leased as of year-end [32] Question: What is the pricing like for similar assets in the market? - Pricing for similar assets generally ranges from the high 6s to mid 7s cap rates, depending on various factors [33][34] Question: What is the company's leverage capacity and buying power for 2026? - The company could invest about $225 million to reach the midpoint of its targeted leverage, with potential for up to $375 million at the high end [43] Question: What is the expected cadence for acquisitions? - The market will drive the cadence, with expectations for acquisition volume to be similar to the previous year [47]