First Quarter 2025 Financial Performance - Normalized FFO per share for the first quarter of 2025 was $0.84, an increase of approximately 8% year-over-year, driven by SHOP NOI growth and accretive senior housing investment activity[15] - Total Company Same-Store Cash NOI grew 7.1% year-over-year in the first quarter of 2025, led by SHOP[15] - SHOP Same-Store Cash NOI grew 13.6%, with U S growth leading at 16%[15] - The company reaffirmed previous guidance ranges for Attributable Net Income, Nareit FFO, and Normalized FFO per share, as well as segment and total company same-store cash NOI growth[15] Full Year 2025 Guidance - The guidance for Attributable Net Income per share is between $0.42 and $0.53, with a midpoint of $0.48[14] - Nareit FFO per share is projected to be in the range of $3.27 to $3.38, with a midpoint of $3.33[14] - Normalized FFO per share is expected to range from $3.35 to $3.46, with a midpoint of $3.41[14] - Same-Store Cash NOI Growth is guided as follows: SHOP between 11.0% and 16.0%, Outpatient Medical & Research between 2.0% and 3.0%, Triple-Net between (1.5%) and (0.5%), and Total Company between 5.5% and 8.0%[14] Investment and Capital Activities - Approximately $900 million of accretive senior housing investments were closed year-to-date, meeting stated criteria[15] - $1.3 billion of equity was issued, including $1.1 billion issued year-to-date via equity forward sales agreements, combined with $0.2 billion of unsettled equity forward sales agreements at year-end 2024[15] - The company increased the capacity of its unsecured credit facility by $750 million to an aggregate of $3.5 billion in April[15] - The company expects to dispose of assets for approximately $200 million in net proceeds[15]

Financial Data and Key Metrics Changes - The company reported approximately 19% growth in FFO per share, raising the midpoint of full year FFO guidance by $0.10 to $4.97 [3][25] - Net income attributable to common stockholders was $0.40 per diluted share, with normalized funds from operations (FFO) at $1.2 per diluted share, representing 18.8% year-over-year growth [25][30] - Total portfolio same store NOI growth was 12.9% year-over-year [25][30] Business Line Data and Key Metrics Changes - The seniors housing operating business reported a same store NOI growth of 21.7% [12][13] - Same store revenue growth for the senior housing operating portfolio was 9.6%, driven by 400 basis points of occupancy growth and nearly 6% RevPAR growth [14][25] - The outpatient medical segment posted 2.7% year-over-year same store NOI growth, with same store occupancy at 94.5% [12][13] Market Data and Key Metrics Changes - Revenue growth was consistent across regions, with the U.S. at 9.8%, the UK at 9.3%, and Canada at 8.3% [14] - The company achieved nearly 300 basis points of year-over-year margin expansion, with revenue growth outpacing unit expense growth [14][25] Company Strategy and Development Direction - The company launched a private fund management business and advanced its proprietary Welltower business system [4] - The focus is on augmenting growth through market share gains with best-in-class operating partners and enhancing operational efficiency [6][12] - The company aims to maintain a strong balance sheet and liquidity to navigate macroeconomic uncertainties while capitalizing on investment opportunities [11][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand-supply backdrop for the senior living sector, anticipating a multi-year period of attractive growth despite macroeconomic uncertainties [6][7] - The company is cautious about rising macroeconomic risks, particularly as it approaches the summer leasing season [6][34] - Management emphasized the importance of operational excellence and the resilience of the need-based private pay nature of their product [15][36] Other Important Information - The company completed $2,660,000,000 of new investments in the first quarter, surpassing the total acquisition volume for all of last year [17] - The company received credit upgrades from S&P and Moody's, reflecting its strong balance sheet and improved risk profile [28][29] Q&A Session Summary Question: How does the business system overlay impact margins and CapEx control? - Management highlighted that the Welltower Business System aims to streamline operations and minimize friction, which could lead to significant margin expansion [40][44] Question: Can you elaborate on the data science platform's impact on transaction velocity? - The proprietary platform allows for a neighborhood-level view of assets, significantly reducing the time to provide initial pricing feedback and close deals [48][50] Question: How does the company view sustained growth given its current size? - Management believes that as an operating company, growth can be positively correlated with size due to network effects and data capture [58][60] Question: What are the long-term expectations for occupancy growth? - Management expects a long journey towards higher occupancy levels, with current performance indicating positive trends [70][72] Question: How does the company plan to navigate potential economic disruptions? - Management is optimistic about the business's resilience and believes it will perform better than other real estate sectors during economic downturns [78][80]

Financial Data and Key Metrics Changes - The company reported approximately 19% growth in FFO per share, raising the midpoint of full year FFO guidance by $0.10 to $4.97 [5][31] - Net income attributable to common stockholders was $0.40 per diluted share, with normalized funds from operations (FFO) at $1.2 per diluted share, representing 18.8% year-over-year growth [31] - The net debt to adjusted EBITDA ratio declined to 3.3 times, a record low for the company [15][31] Business Line Data and Key Metrics Changes - The seniors housing operating business reported a same-store net operating income (NOI) growth of 21.7% [16] - Same-store revenue growth for the senior housing operating portfolio was 9.6%, with occupancy growth of 400 basis points year-over-year [18] - The outpatient medical segment posted a 2.7% year-over-year same-store NOI growth [16] Market Data and Key Metrics Changes - Revenue growth was consistent across regions: U.S. at 9.8%, UK at 9.3%, and Canada at 8.3% [18] - The company achieved nearly 300 basis points of year-over-year margin expansion during the quarter [18] Company Strategy and Development Direction - The company is transitioning from a healthcare real estate deal shop to a data science and technology-driven operating company [6][7] - A focus on reducing leverage and bolstering liquidity was recognized with credit rating upgrades from S&P and Moody's to A- and A3, respectively [7][15] - The company aims to enhance growth through strategic acquisitions, with a total of CAD 6.2 billion in pro-rata acquisition activity announced for the year [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand-supply backdrop for the senior living sector, anticipating a multi-year period of attractive growth [9] - There is awareness of rising macroeconomic uncertainty, particularly as the summer leasing season approaches [10][40] - The company believes that the need-based private pay nature of its product positions it well to outperform other real estate asset classes [10][82] Other Important Information - The company completed $2.66 billion of new investments in the first quarter, surpassing the total acquisition volume for all of last year [23] - The Amica acquisition is expected to close at year-end and is anticipated to enhance the company's portfolio significantly [24][25] Q&A Session Summary Question: How does the business system overlay impact margins and CapEx control? - Management highlighted that the Welltower Business System aims to streamline operations and minimize friction, which could lead to significant margin expansion [46][50] Question: Can you elaborate on the data science platform's impact on transaction velocity? - The proprietary platform allows for rapid analysis of micro markets, significantly reducing the time to provide pricing feedback and close deals [55][60] Question: What is the long-term outlook for occupancy growth? - Management believes that optimizing the business with fewer operating partners will lead to lower frictional vacancy and higher occupancy levels over time [76] Question: How does the company view the current macroeconomic environment's impact on senior housing? - Management expressed confidence that senior housing will perform better than other real estate sectors, even in the face of potential economic disruptions [82] Question: What is the strategy regarding capital allocation in the current market? - The company is focused on positioning rather than predicting, aiming to take advantage of market opportunities while maintaining a strong balance sheet [42][88]

Financial Data and Key Metrics Changes - The company reported a normalized FFO per share increase of 18% year over year, driven by the senior housing operating portfolio [4][10] - Total portfolio same store NOI growth was 12.8%, with the senior housing operating portfolio achieving 23.9% growth [21][41] - The company ended the quarter with a net debt to adjusted EBITDA ratio of 3.49 times, a decrease of 1.5 turns from the end of 2023 [45] Business Line Data and Key Metrics Changes - The senior housing operating business experienced nearly 24% same store NOI growth, marking the ninth consecutive quarter of growth exceeding 20% [5][21] - The outpatient medical business showed stable performance with a year-over-year same store NOI growth of 2% [21] - The senior housing triple net portfolio had a same store NOI increase of 5.1% year over year, with EBITDAR coverage reaching a post-COVID high of 1.12 times [42] Market Data and Key Metrics Changes - The U.S. commercial real estate debt market faces significant challenges, with $1 trillion of loans maturing in 2025 [31][32] - Regional banks, which hold a significant portion of CRE debt, are experiencing difficulties due to high long-term interest rates [32][34] - The company capitalized on market dislocations, acquiring properties at attractive valuations due to other industry participants being compelled to divest assets [35][36] Company Strategy and Development Direction - The company is focused on capital deployment, having closed $7 billion in transactions in 2024, with a strong start to 2025 already seeing $2 billion in acquisitions under contract [9][14] - The company emphasizes a capital light strategy, transitioning properties to stronger operating partners to enhance cash flow [15][44] - A sixth growth pillar was introduced with the launch of a private funds management business, expected to create significant revenue opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2025, citing strong fundamentals in the senior housing sector and favorable demographic trends [4][12] - The company anticipates sustained improvement in margins due to high operating leverage and the benefits of its operating platform build-out [8][26] - Management highlighted the importance of retaining talent and fostering a strong company culture as key to long-term success [70][72] Other Important Information - The company achieved 23% revenue growth, 26% EBITDA growth, and nearly 20% FFO per share growth for the full year of 2024 while deleveraging its balance sheet [10][45] - The company is actively working on digital transformation initiatives to enhance operational efficiency and improve resident and employee experiences [16][29] Q&A Session Summary Question: Can you provide insights on pricing power across occupancy bands within the Shaw portfolio and details on the $2 billion acquisitions pipeline? - The $2 billion acquisitions involve assets with low 80s occupancy, generally newer vintage assets [61] - For assets over 90% occupied, RevPAR growth has been in the sixes, while those below 70% are roughly flat [62][63] Question: With fewer deliveries in the development cycle, does this make acquiring lease-up properties more challenging? - The company maintains a long-term track record of success in finding underperforming buildings, indicating a continued ability to optimize NOI [66][68] Question: How does the company approach talent retention? - Retaining talent is a top priority, with a strong emphasis on creating a culture of trust and shared purpose [70][72] Question: Can you discuss the targeted IRRs for stabilized versus non-stabilized assets in the private funds management business? - No specific details were provided on targeted IRRs, but the company emphasizes its focus on growth investments rather than yield investments [77] Question: How large will the same store bucket of assets be this year versus the total pool? - By the fourth quarter, over 90% of the current portfolio is expected to be in the same store pool, with non-same store assets showing potential for better NOI growth as occupancy increases [80][83]