Financial Data and Key Metrics Changes - In 2025, the company achieved 36% revenue growth, 32% EBITDA growth, and 22% FFO per share growth while deleveraging its balance sheet [4][11] - The fourth quarter reported net income attributable to common stockholders of $0.14 per diluted share and normalized FFO of $1.45 per diluted share, representing 28.3% year-over-year growth [33] Business Line Data and Key Metrics Changes - The senior housing operating portfolio reported a same-store net operating income (NOI) growth of 20.4% in the fourth quarter, marking the 13th consecutive quarter of growth exceeding 20% [18][19] - Organic revenue growth remained around 10%, driven by 400 basis points of year-over-year occupancy gains and healthy rate growth [8][19] Market Data and Key Metrics Changes - The company noted a significant increase in occupancy, with 400 basis points of year-over-year growth, among the highest levels in its history [19] - The company expects strong occupancy upside in 2026, supported by a growing 80+ population and a favorable demand-supply picture [8][9] Company Strategy and Development Direction - The company is focused on transforming from a real estate deal-oriented business to an operations and technology-first model, emphasizing customer trust and employee experience [6][10] - A significant capital rotation was executed, with nearly $11 billion in net investment activity, primarily in high-growth senior housing properties [11][12] - The company launched its private funds management business and closed Senior Housing Equity Fund One, marking a significant expansion of its capital allocation strategy [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for senior housing products, anticipating continued growth despite macroeconomic uncertainties [8][9] - The company highlighted the importance of operational excellence and technology in driving future growth and enhancing customer experiences [22][24] Other Important Information - The company completed the sale of its outpatient medical business for $7.2 billion, which significantly contributed to its capital rotation strategy [11][12] - The management team has undergone significant changes, with a focus on attracting high-caliber talent to drive the company's transformation [23][24] Q&A Session Summary Question: Can you provide more quantitative insights on compounding and duration? - Management emphasized the focus on partial earnings and cash flow growth, indicating a belief in double-digit NOI growth for the long term [49][51] Question: What challenges remain in the senior housing space? - Management acknowledged that while the data science platform is mature, there is still significant work to be done in operational technology [55][56] Question: How does the Integra disposition frame the skilled nursing portfolio? - The skilled nursing strategy involves acquiring assets with operational turnaround stories, with a focus on high-quality operators [60][61] Question: What is the size and characteristics of the non-same store pool? - The non-same store portfolio is primarily composed of recently acquired assets, with characteristics similar to the same store portfolio but generally less occupied [63][64] Question: How is occupancy performance being driven? - Management highlighted the importance of marketing, customer experience, and operational execution in driving occupancy growth [68][69] Question: How long can the company continue to acquire unstabilized SHOP? - Management stated that acquisition opportunities depend on market conditions and emphasized the goal of creating value for shareholders [71][72]

Financial Data and Key Metrics Changes - Welltower reported a 36% revenue growth, 32% EBITDA growth, and 22% FFO per share growth in 2025, while also deleveraging its balance sheet [3][4] - The company ended the year with a net income attributable to common stockholders of $0.14 per diluted share and normalized FFO of $1.45 per diluted share, representing a 28.3% year-over-year growth [32] Business Line Data and Key Metrics Changes - The senior housing operating portfolio achieved a same-store NOI growth of 20.4%, marking the 13th consecutive quarter of growth exceeding 20% [17][18] - Organic revenue growth remained around 10%, driven by 400 basis points of year-over-year occupancy gains and healthy rate growth [6][18] - The company reported a same-store revenue growth of 9.6% across all geographies and senior housing acuity levels [18] Market Data and Key Metrics Changes - The demand for senior housing products continues to strengthen, with occupancy gains of 400 basis points year-over-year, among the highest levels in the company's history [18] - The company noted that new construction remains at trough levels, contributing to a favorable supply-demand picture [6] Company Strategy and Development Direction - Welltower is focused on transforming from a real estate deal shop to an operations and technology-first business, emphasizing customer trust and employee experience [4][5] - The company launched its private funds management business and made significant investments in technology and talent to enhance operational efficiency [3][16] - Welltower aims to continue driving meaningful alpha for shareholders through the full-scale modernization of its senior housing portfolio via the Welltower Business System [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the high visibility of end-market demand for senior housing, particularly as the 80+ population continues to grow [6] - The company anticipates another year of strong occupancy upside in 2026, along with strong pricing power [6][19] - Management acknowledged the challenges of the senior living business but emphasized the importance of execution and operational excellence [8][20] Other Important Information - Welltower completed nearly $11 billion of net investment activity in 2025, primarily in high-growth senior housing properties [10] - The company sold its outpatient medical business for $7.2 billion, which significantly contributed to its capital rotation strategy [10][25] - Welltower launched its Senior Housing Equity Fund One, raising approximately $2.5 billion in equity commitments, marking a significant expansion of its capital allocation strategy [30] Q&A Session Summary Question: Can you provide more quantitative insights on compounding and duration? - Management emphasized that the focus is on partial earnings and cash flow growth rather than just same-store metrics, indicating a belief in double-digit NOI growth for the long term [48][49] Question: What challenges remain in the senior housing space? - Management acknowledged that while the data science platform is mature, there is still significant work to be done on the operational technology side [53][54] Question: How does the Integra disposition frame the SNF portfolio for future acquisitions? - Management described the skilled nursing portfolio as a structured credit investment, focusing on acquiring assets with operational turnaround stories [57][58] Question: How long can the company continue to acquire unstabilized SHOP? - Management stated that acquisition opportunities depend on market conditions and emphasized the goal of creating value for existing shareholders [67][69]

Market Overview - U.S. equity markets experienced a rebound, with stocks rising approximately 1.7%, while small-cap stocks surged by 3.4% [1][3] - Bitcoin saw a significant increase of nearly 12%, reaching $70,000 per coin, after being about $10,000 lower the previous day [2] Sector Performance - The rotation in the market is shifting focus from large-cap tech stocks to sectors such as biotech, electronic components, airlines, trucking, and banks [3][8] - The S&P 500 and NASDAQ indices rose by almost 2%, while the Russell 2000 small-cap index outperformed with over 3% gains [3][4] Earnings Reports - 78.5% of S&P 500 companies that reported earnings exceeded expectations, although this is a decline from previous quarters [5][6] - The mixed reactions to big tech earnings indicate ongoing market focus on these companies despite the broader market rotation [6][8] Investment Strategies - There is a growing interest in diversifying investments beyond large-cap tech stocks into small-cap and cyclical value stocks [16][78] - The market is seeing a shift towards non-U.S. equities, which have gained 7.25% year-to-date, contrasting with a 4.5% decline in concentrated tech names [78][80] Demographic Trends in Real Estate - The senior housing market is experiencing growth due to demographic trends, with a significant increase in the aging population, particularly as baby boomers turn 80 [20][24] - Ventas, a real estate trust, is focusing on acquiring senior housing properties, targeting $2.5 billion in investments, driven by strong demand and limited new construction [24][28] Prediction Markets - The rise of prediction markets is impacting traditional sports betting, with estimates suggesting they could account for about 5% of total wagers [38][42] - Interactive Brokers is positioning itself in the prediction market space, focusing on economic and environmental contracts rather than sports [50][55]

Financial Data and Key Metrics Changes - In 2025, normalized FFO per share increased by 9%, with same-store SHOP cash net operating income growing by 15%, marking the fourth consecutive year of double-digit SHOP NOI growth [7][28] - The enterprise value exceeded $50 billion, with fourth quarter annualized NOI and SHOP NOI reaching $2.5 billion and $1.3 billion, respectively [7][28] - Total shareholder returns for 2025 were 35%, significantly outperforming industry benchmarks and the S&P 500 [8] Business Line Data and Key Metrics Changes - The SHOP same-store portfolio revenue grew over 8%, driven by a 300 basis points year-over-year occupancy increase [14] - NOI for SHOP grew by 15.4% year-over-year in the fourth quarter, with margins increasing by 180 basis points to over 28% [15] - The outpatient medical and research (OMR) business saw same-store cash NOI growth of nearly 4% year-over-year in the fourth quarter [27] Market Data and Key Metrics Changes - The over 80 population is projected to grow by 28% in the next five years, creating significant demand for senior housing [8][10] - New supply of senior housing remains constrained, with only about 2,500 new units started in the fourth quarter of 2025 [9][10] - The company operates in a consumer-driven, private pay business model, which has shown resilience during adverse conditions [9] Company Strategy and Development Direction - The company aims to capitalize on the multi-year growth opportunity in senior housing through its 1, 2, 3 strategy, focusing on organic growth, value-creating investments, and cash flow generation [6][10] - The strategic vision includes enhancing financial strength and flexibility while expanding the senior housing business through aggressive investment activity [10][11] - The company plans to maintain a high single-digit growth in normalized FFO per share for 2026, with expectations of continued double-digit same-store cash NOI growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential driven by demographic trends and the aging population [8][10] - The company is well-positioned to manage the increasing demand for senior housing, with a focus on operational excellence and strong partnerships with operators [20][22] - Management acknowledged the competitive landscape but emphasized the company's unique advantages in capital deployment and operator relationships [24][25] Other Important Information - The board approved an 8% increase in the quarterly dividend, reflecting strong performance and a positive outlook [12] - The company raised $7 billion in capital during the year, enhancing its financial flexibility for future investments [30] Q&A Session Summary Question: On the Brookdale reset on the triple net side - Management indicated a reasonable assumption for the triple net business would be around 3% on average for escalators, with the January increases being an outlier [35] Question: Acquisition guidance and market competition - Management noted that the investment pipeline is active, with a mix of off-market and marketed deals, and emphasized their strong track record with repeat sellers [42][43] Question: Impact of flu season on occupancy - Management reported minimal flu impacts and highlighted improved infection control measures since the pandemic [45][46] Question: Future growth opportunities and potential dispositions - Management acknowledged ongoing pruning within the portfolio, with some underperforming senior housing assets identified for potential disposition [52] Question: Occupancy upside for acquired assets - Management indicated that many acquired assets have occupancy upside, with a focus on high-quality, stabilized properties [72][73] Question: Supply concerns in senior housing - Management expressed confidence that demand from the aging population will outpace any new supply, projecting significant growth in the over 80 demographic [96][97]

Fund Performance - Baron Health Care Fund rose 13.10% in Q4 2025, outperforming the Russell 3000 Health Care Index which gained 11.92% and the Russell 3000 Index which gained 2.40% [1] - For the full year, the Fund returned 10.28%, while the benchmarks returned 14.56% and 17.15% respectively [1] - Strong stock selection in biotechnology contributed to the Fund's relative gains in the quarter [1] Investment Strategy - The Fund seeks to invest in businesses with secular growth opportunities, a sustainable competitive edge, and strong management [1] - The healthcare sector is viewed as a strong area in the U.S. economy, offering attractive investment opportunities with positive momentum heading into 2026 [1] Welltower Inc. Overview - Welltower Inc. (NYSE:WELL) is a healthcare REIT focusing on rental housing for aging seniors, with a market capitalization of $131.13 billion [2] - As of February 5, 2026, Welltower's stock closed at $191.06 per share, with a one-month return of 2.68% and a twelve-month increase of 33.99% [2] Welltower Inc. Investment Rationale - Welltower is positioned to benefit from favorable trends in the senior housing industry, particularly the supply/demand imbalance [3] - The over 80 population is expected to grow at a 4% to 5% CAGR over the next five years, contrasting with annual growth below 2% post-2008 financial crisis [3] - There is limited new supply of senior housing due to unattractive developer economics and lengthy project timelines [3] - Opportunities exist for improved operating margins and occupancy through enhanced asset management and data analytics [3] - Management has implemented an "all in" compensation program, reflecting confidence in shareholder value creation over the next decade [3]

January 30, 2026 Forward-Looking Statements — Safe Harbor Certain statements in this Investor Presentation and the associated Investor Day event may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations. Forward- looking statements are generally ...

Core Insights - StepStone Real Estate (SRE) and Blue Moon Capital Partners have completed a $250 million continuation vehicle to operate five Class A stabilized senior housing communities [1] - The partnership aims to acquire additional high-quality senior housing communities and enhance their existing portfolio [1][2] Company Overview - StepStone Group is a global private markets investment firm managing approximately $771 billion in total capital, with $209 billion in assets under management as of September 30, 2025 [3] - Blue Moon Capital Partners focuses exclusively on senior housing, investing in Independent Living, Assisted Living, and Memory Care sectors [4] Strategic Focus - SRE is committed to building its senior housing exposure by partnering with experienced operators like Blue Moon across the US and Europe [2] - The collaboration emphasizes incorporating technology into operations and advancing workforce culture to maintain market leadership in senior housing [2][3] Growth Potential - Blue Moon aims to capitalize on the expected dramatic growth in resident demand for senior housing over the next two decades [4]

Core Viewpoint - Welltower Inc. will release its fourth quarter 2025 financial results on February 10, 2026, and will host a conference call on February 11, 2026, to discuss these results [1][2]. Company Overview - Welltower Inc. is an S&P 500 company focused on rental housing for aging seniors in the United States, United Kingdom, and Canada, with a portfolio of over 2,000 seniors and wellness housing communities [3]. - The company positions itself at the intersection of housing and hospitality, aiming to create vibrant communities for mature renters and older adults [3]. - Welltower views itself as an operating company within a real estate framework, emphasizing partnerships and a unique culture [3]. - The company employs a disciplined approach to capital allocation, supported by a Data Science platform and the Welltower Business System, to achieve long-term growth for its investors [3].

Group 1: Investment Recommendations - Bank of America has identified several stocks well-positioned for the upcoming earnings season, including Amazon.com Inc., Brookdale Senior Living Inc., Corning Inc., Vertiv Holdings Co., and Carvana Co. [1] - Amazon is highlighted as a compelling investment due to its potential for valuation improvement, particularly if AWS revenue growth accelerates and AI capabilities are strengthened [2][3] - Brookdale Senior Living has been upgraded to a buy rating, benefiting from an aging population, with shares rising nearly 13% this year [4] - Carvana is recognized for its growth potential, driven by innovation and new initiatives, with its stock up 6% this year [5] - Corning has been rated a buy, supported by a favorable balance of glass supply and demand, and expected growth from carrier spending and Gen AI in the Optical market [6] - Vertiv is expected to benefit from margin recovery and improved free cash flow, with increased demand for its thermal management products due to AI adoption in data centers [7] Group 2: Market Trends and Earnings Outlook - The tech industry is anticipated to have a strong Q4 earnings season, with predictions of impressive earnings from tech giants like Amazon, Microsoft, and Alphabet, driven by demand for AI enterprise services [8] - The upgrade of Brookdale Senior Living reflects strong growth potential in the senior housing sector, despite challenges in the healthcare landscape [9] - Corning's strong Q3 results, with core sales up 14% year over year and enterprise sales in Optical Communications surging 58%, highlight ongoing shifts in digital infrastructure and materials science sectors [10]

Core Insights - Brookdale Senior Living Inc. (BKD) reported a weighted average occupancy of 82.4% for December 2025, reflecting a 310 basis points increase year-over-year but a slight decline of 10 basis points from November 2025 [1] Group 1: Occupancy and Capacity - In Q4 2025, BKD's weighted average occupancy reached 82.5%, up from 79.4% a year ago and 81.8% in Q3 2025, indicating consistent growth throughout 2025 [2] - The company has the capacity to serve approximately 51,000 residents across 41 states [2] - BKD has improved its occupancy significantly from a pandemic low of 69.4% in March 2021, aiming to enhance operational efficiency and profitability [5] Group 2: Financial Performance - Resident fee revenues increased by 4.5% year-over-year in the first nine months of 2025, with expectations for continued growth [3] - For 2025, BKD forecasts a 5.25-6% increase in average monthly senior housing resident fee revenue per available unit (RevPAR) and adjusted EBITDA in the range of $455 million to $460 million [3][10] Group 3: Earnings Estimates - The Zacks Consensus Estimate for BKD's Q4 2025 earnings is a loss of 16 cents per share, reflecting a 5.8% year-over-year improvement, although the company has struggled to meet earnings estimates consistently [4] - BKD has met earnings estimates only once in the past four quarters, with an average surprise of 37.1% [4]