Chiron Real Estate (NYSE:GMRE) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Company ParticipantsBob Kiernan - CFOMark Decker - CEOConference Call ParticipantsAustin Wurschmidt - Managing Director and Senior Equity AnalystGaurav Mehta - Managing Director and Senior Equity AnalystJuan Sanabria - Managing Director and Senior Equity AnalystWes Golladay - Senior Equity AnalystOperatorGreetings, welcome to the Chiron Real Estate's fourth quarter 2025 earnings call. At this time, all participants are on a l ...

Financial Data and Key Metrics Changes - The company reported a Core FFO per share improvement of $0.05 to $0.70, representing an 8% increase year-over-year, and Core FAD per share improved by $0.07 to $0.73, reflecting an 11% increase [17] - The debt to annualized adjusted EBITDA for real estate was 4.5x, with an annualized adjusted Fixed Charge Coverage Ratio of 4.4x, well within the stated leverage target of 4-5x [17] Business Line Data and Key Metrics Changes - The SHOP portfolio grew to 25% of the investment portfolio by year-end 2025, with expectations to reach 45% by the end of 2026 [4] - The original 13 properties converted to SHOP grew NOI by 22% over 2024 pro forma NOI, generating $16.2 million in combined rent and NOI in 2025 [8] - The company anticipates 14% NOI growth at the midpoint for the full year 2026 over pro forma 2025 [8] Market Data and Key Metrics Changes - The company expects occupancy to grow by approximately 150 basis points in 2026, with RevPAR projected to increase by about 5% [9] - The company is in a competitive senior housing acquisitions environment, leveraging its smaller asset base and relationship-driven strategy to find opportunities [12] Company Strategy and Development Direction - The company is transforming from a lower growth triple net REIT into a faster-growing SHOP-focused REIT, with a guidance of $600 million in acquisitions for 2026, nearly 70% higher than 2025 [3] - The strategic portfolio transformation aims to reduce skilled nursing investments to less than 30% by the end of 2026, focusing on SHOP growth [5] - The company plans to continue investing in newer SHOP communities that are best positioned to compete against future developments [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial strength to support SHOP growth, with liquidity standing at $810 million on a pro forma basis [16] - The company anticipates continued accelerated internal and external growth powered by SHOP in 2027, following the completion of its transformation at the end of 2026 [5] - Management highlighted the importance of operator relationships in driving future growth and emphasized the potential for organic NOI growth to double by the end of 2026 compared to pre-transformation levels [20] Other Important Information - The company has an acquisition pipeline of over $500 million in deals under review, all focused on SHOP [13] - The company expects to sell five skilled nursing properties and has certain loan payoffs totaling $90 million in the next 60 days [10] Q&A Session Summary Question: What are the greatest threats to SNFs today? - Management noted that private capital driving prices in skilled nursing could change, and there is inherent risk in the skilled nursing sector [26] Question: Is the 14% same-store growth sustainable? - Management indicated that the pro forma occupancy of 89.7% is close to stabilized levels, and they are comfortable with the guidance for growth [27] Question: What are the year one yields for SHOP investments? - The company is underwriting year one yields at about 7%, with good growth headroom beyond that [40] Question: How competitive is the landscape for seniors housing deals? - Management acknowledged the competitive landscape but emphasized their ability to find transactions that meet their underwriting criteria [51] Question: What is the expected CapEx burden for LTC going forward? - Management stated that the current CapEx guidance is based on a $1,500 per unit assumption, which is appropriate given the age of the assets [75]

LTC Properties (NYSE:LTC) Q4 2025 Earnings call February 25, 2026 11:00 AM ET Company ParticipantsCece Chikhale - Executive Vice President, CFO, Treasurer and SecretaryClint Malin - Co-President and Co-CEODave Boitano - Executive Vice President and CIOGibson Satterwhite - Executive Vice President of Asset ManagementJohn Kilichowski - Vice President in Equity ResearchMichael Carroll - Managing DirectorOmotayo Okusanya - Managing DirectorPam Kessler - Co-President and Co-CEORichard Anderson - Managing Directo ...

RENEWAL AND SUPPLEMENTAL OPERATING AND FINANCIAL DATA TRANSITION FOURTH QUARTER 2025 TABLE OF CONTENTS LEADERSHIP WENDY SIMPSON Executive Chairman PAM KESSLER Co-President and Co-CEO CLINT MALIN Co-President and Co-CEO CECE CHIKHALE EVP, Chief Financial Officer, Treasurer and Secretary DAVID BOITANO EVP, Chief Investment Officer GIBSON SATTERWHITE EVP, Asset Management MIKE BOWDEN SVP, Investments MANDI HOGAN SVP, Marketing BOARD OF DIRECTORS | WENDY SIMPSON | Executive Chairman | | --- | --- | | CORNELIA C ...

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][33] - 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][34] - Total portfolio same-store NOI growth was 15%, driven by 20.4% growth in the senior housing operating portfolio [18][33] Business Line Data and Key Metrics Changes - The senior housing operating portfolio reported 13 consecutive quarters of same-store net operating income growth exceeding 20% [7][18] - Organic revenue growth remained around 10%, supported by 400 basis points of year-over-year occupancy gains and healthy rate growth [8][19] - ExPOR (expenses per occupied room) growth increased by only 0.8%, leading to strong margin expansion of 270 basis points [20][21] Market Data and Key Metrics Changes - The demand for senior housing products continues to strengthen, with occupancy gains during a seasonally slower period [19] - The company noted that the 80+ population is expected to grow rapidly, enhancing end-market demand for its products [8][9] - New construction remains at low levels, contributing to a favorable supply-demand dynamic [9] Company Strategy and Development Direction - The company is focused on transforming from a real estate deal shop to an operations and technology-first business, 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, indicating a strategic expansion into capitalized businesses [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive outsized NOI growth and margin expansion in the coming years, despite macroeconomic uncertainties [21][24] - The company is committed to investing in technology and talent to enhance operations and customer experience [22][23] - Management highlighted the importance of operational execution and customer experience in driving occupancy and revenue growth [68] 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][26] - The management team has undergone significant changes, with a focus on retaining top talent and enhancing incentive structures [39][40] 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 [50][52] 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 [54][55] Question: How does the Integra disposition frame the SNF portfolio for future acquisitions? - The skilled nursing strategy involves acquiring assets with operational turnaround potential, with proceeds from sales being opportunistically deployed [59][60] Question: What is the current status of the non-same store pool? - The non-same store portfolio is characterized by lower occupancy and is strategically focused on acquiring assets with significant upside potential [62][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]

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 [5][26] - The enterprise value exceeded $50 billion, with fourth quarter annualized NOI and SHOP NOI reaching $2.5 billion and $1.3 billion, respectively [5][26] - Total shareholder returns for 2025 were 35%, significantly outperforming industry benchmarks and the S&P 500 [6] Business Line Data and Key Metrics Changes - The SHOP same-store portfolio saw revenue growth of over 8%, driven by a 300 basis points year-over-year occupancy increase [12] - NOI for SHOP grew by 15.4% year-over-year in the fourth quarter, with margins increasing by 180 basis points to over 28% [13] - The Outpatient Medical and Research (OMR) business grew same-store cash NOI by nearly 4% year-over-year in the fourth quarter [26] Market Data and Key Metrics Changes - The over 80 population is projected to grow by 28% in the next five years, with over 2 million people turning 80 in 2026 [6][8] - New supply of senior housing remains constrained, with only about 2,500 new units started in the fourth quarter of 2025 [8] Company Strategy and Development Direction - The company aims to capitalize on the significant value creation opportunity in senior housing through its 1, 2, 3 strategy, focusing on organic growth, value-creating investments, and driving cash flow [4][9] - The company plans to continue aggressive investment in senior housing, targeting $2.5 billion in acquisitions for 2026 [10][22] - The Ventas Operational Insights Platform is a key competitive advantage, enhancing operational performance and analytics capabilities [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the multi-year NOI growth and value creation opportunities ahead, driven by strong demand trends in senior housing [6][9] - The company expects to deliver high single-digit growth in normalized FFO per share in 2026, with SHOP producing its fifth consecutive year of double-digit same-store cash NOI growth [10][29] - Management highlighted the importance of maintaining strong relationships with operators and enhancing engagement to drive performance [20] Other Important Information - The board approved an 8% increase in the quarterly dividend, reflecting strong performance and a positive multi-year outlook [11] - The company raised over $7 billion in capital during 2025, including nearly $4 billion in bank, bonds, and mortgage debt [27] Q&A Session Summary Question: On the Brookdale reset on the triple net side - Management indicated that a reasonable assumption for the triple net business would be around 3% on average for escalators, with the January Brookdale increases being an outlier [33] Question: Guidance on share count for 2026 - Management did not provide a specific year-end share count but noted that the $2.5 billion of investments would be principally funded with equity [34] Question: Acquisition guidance and market competition - Management confirmed a very active pipeline and noted that half of the $800 million closed was off-market, despite increased competition in marketed deals [38][40] Question: Impact of flu season on occupancy - Management reported minimal flu impacts and highlighted improved infection control measures since the pandemic [42][43] Question: Future growth opportunities in underperforming markets - Management acknowledged ongoing pruning within the portfolio and noted that some senior housing assets may be disposition candidates [50] Question: Brookdale transitions and immediate growth drivers - Management highlighted the advantages of the transitioned Brookdale communities and expected modest growth in 2026, with significant potential ramp-up in 2027 [55] Question: Supply concerns in senior housing - Management emphasized that the demand from the aging population would likely overwhelm any new supply, projecting a long runway for growth [94][95] Question: Affordability of senior housing products - Management reiterated that the senior housing product provides valuable benefits at an affordable cost, especially for the wealthiest generation of baby boomers [98][99]

Financial Performance & Guidance - Q3 2025 Normalized FFO per share was $132, compared to $103 in Q3 2024[8] - Funds Available for Distribution (FAD) increased to $62248 thousand in Q3 2025, a 26% increase from $49383 thousand in Q3 2024[8] - The company updated its 2025 NAREIT FFO guidance midpoint to $2179 million and NFFO guidance midpoint to $2303 million[14] - The company expects Same-Store SHOP NOI annual growth in a range of 7%-9%[14] Portfolio & Investment Activities - Lease revenue excluding certain items increased 166% compared to Q3 2024, reaching $701 million[13] - New properties acquired since 3Q 2024 contributed approximately $53 million in cash rental income during the quarter[13] - The company announced 2025 year-to-date investments totaling $3032 million at an average initial yield of approximately 80%[13] - The company has signed LOIs totaling $1953 million at an average initial yield of 84%[13] Senior Housing Operating Portfolio (SHOP) - Q3 2025 SHOP revenue increased 538% compared to the prior year period[13] - Q3 2025 SHOP NOI increased 626% compared to the prior year period, reaching $49 million[13] - Total SHOP contribution to adjusted NOI is expected to increase to approximately 100% from approximately 50% prior to recent transitions and acquisitions[25]

Financial Data and Key Metrics Changes - For Q1 2025, net income per diluted common share was $0.74, up 4.2% from the prior year [17] - Net FFO per diluted common share increased 3.6% to $1.14, while normalized FFO rose 2.7% to $1.15 compared to the prior year [17][18] - FAD for the quarter increased 9.9% to $56 million [18] - Cash rent from the Real Estate Investment segment increased by $2.6 million, attributed to acquisitions and percentage revenue rents [18] Business Line Data and Key Metrics Changes - SHOP segment NOI increased 4.9% year over year to $3.1 million, with resident fees up 5.2% driven by occupancy improvement [16][19] - The discretionary senior housing portfolio had a coverage of 1.67 times, while the SNF portfolio reported solid coverage of 3.06 times [14] Market Data and Key Metrics Changes - The company has an active investment pipeline of approximately $264 million, with a focus on senior housing [6][11] - The market shows a limited buyer pool, but an increasing number of sellers, leading to a competitive environment for acquisitions [11][78] Company Strategy and Development Direction - The company is focused on growing its SHOP portfolio through internal conversions and optimizing its existing portfolio [8][10] - A significant investment pipeline is being pursued, with a goal to surpass last year's total investments of $237.5 million [10][24] - The company is cautious about pursuing growth for growth's sake, emphasizing quality over quantity in acquisitions [7][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term outlook, raising normalized FFO guidance midpoint by $0.08 per share to $4.71, representing a year-over-year growth of 6.1% [6][23] - The company is maintaining its outlook for 12% to 15% NOI growth for the year, despite typical seasonality in the first quarter [9][24] Other Important Information - The company recorded a $1.2 million charge in transaction costs related to a large SHOP portfolio that was ultimately not pursued [7] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 4.1 times, well within the stated leverage policy [21][22] Q&A Session Summary Question: Update on NHC lease process and Medicaid clarity - Management is in dialogue with NHC regarding lease renewal and navigating Medicaid issues, with an independent committee assisting in strategy [31][32] Question: Reasons for low SHOP performance in Q1 - Management noted seasonality and a one-time expense affecting performance, but remains positive about future growth [34][35] Question: Status of SLM mezzanine loans - SLM situation is largely wrapped up, with potential for additional payments as facilities are sold [36] Question: Transition process with Discovery and potential rent impacts - Management anticipates some noise during the transition but is confident in maintaining FAD guidance [41][45] Question: Insights on the large SHOP portfolio that did not close - The decision was based on the portfolio not fitting the company's growth strategy at this time [54][56] Question: Timing for bond market tapping - The company is preparing to tap the bond market later in the year, with a minimum raise of $300 million expected [87][88]

Financial Data and Key Metrics Changes - The company reported a net income per diluted common share of $0.74, up 4.2% from the prior year [17] - Net FFO per diluted common share increased 3.6% to $1.14, while normalized FFO increased 2.7% to $1.15 compared to the prior year [17] - FAD for the quarter increased 9.9% to $56 million [17] - Cash rent from the Real Estate Investment segment increased by $2.6 million, attributed to acquisitions and percentage revenue rents [18] Business Line Data and Key Metrics Changes - The SHOP segment's NOI increased 4.9% year over year to $3.1 million, with resident fees up 5.2% driven by occupancy improvement [15][19] - The discretionary senior housing portfolio had a coverage of 1.67 times, while the SNF portfolio reported solid coverage of 3.06 times [14] Market Data and Key Metrics Changes - The company has an active investment pipeline of approximately $264 million, with a focus on senior housing [5][11] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 4.1 times, well within the stated leverage policy [21] Company Strategy and Development Direction - The company is focused on growing its SHOP portfolio through internal conversions and has made significant investments in acquisitions [5][6] - The company is not pursuing growth for growth's sake and is selective in its investment strategy [6][78] - The company aims to maintain a competitive cost of capital and solid access to debt and equity capital [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about surpassing last year's investment total of $237.5 million due to a strong start in 2025 [10] - The company maintains its outlook for 12% to 15% NOI growth this year, despite typical seasonality in the first quarter [8][16] - Management is closely monitoring the potential impact of Medicaid cuts on the portfolio but believes geographic exposure can mitigate risks [14] Other Important Information - The company declared a $0.90 per share dividend for shareholders of record on June 30, 2025 [23] - The updated full-year guidance for NAREIT FFO and normalized FFO per diluted common share is $4.67 and $4.71, representing increases of 2.6% and 6.1% respectively over 2024 [23][24] Q&A Session Summary Question: Update on NHC and Medicaid clarity - Management is in dialogue with NHC regarding lease renewal and is cautious about discussing land and buildings due to legal monitoring [30] Question: SHOP performance in Q1 - Management acknowledged a one-time expense affecting performance but noted that seasonality was expected [34] Question: Status of SLM mezz loans - Management indicated that SLM is largely wrapped up, with potential for additional payments as facilities are sold [36] Question: Discovery transition and potential disruptions - Management expects some noise during the transition but is confident in maintaining FAD guidance [40][44] Question: Impact of percentage rent on tenant profitability - Management stated that the percentage rent was factored into projections and that tenant performance is improving [46] Question: SHOP occupancy and incentives - Management explained that occupancy challenges are due to a subset of buildings not reaching 90% and the need for incentives to maintain occupancy [62] Question: Large SHOP portfolio that fell out of pipeline - Management decided not to pursue the portfolio due to concerns about its fit and potential returns [53] Question: Unidentified new investments mix - Management indicated a mix of property investments and debt financing, primarily focusing on fee simple arrangements [55] Question: Timing for NOI transition with Discovery - Management is targeting the third quarter for the transition, subject to legal review [57] Question: Drivers of increased deal flow - Management noted that sellers are realizing current market conditions, leading to increased activity [74]

Financial Performance - Net income per diluted share increased from $0.71 in Q1 2024 to $0.74 in Q1 2025[8] - NAREIT FFO per diluted share increased from $1.10 in Q1 2024 to $1.14 in Q1 2025[8] - Funds Available for Distribution (FAD) increased by 9.9% from $50.975 million in Q1 2024 to $56.001 million in Q1 2025[8] - Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $65.3 million increased 8.0% compared to Q1 2024[11] SHOP Performance - SHOP NOI increased by 4.9% to $3.1 million in Q1 2025 compared to the prior year period[11] - SHOP NOI margin was 22.1% in Q1 2025, a decrease of 10 bps compared to the prior year period[11] - Average SHOP occupancy increased by 390 bps year-over-year to 89.2% in Q1 2025[11] - The company continues to estimate 12%-15% NOI growth for SHOP in 2025[11, 21] Balance Sheet and Investments - Net Debt to Adjusted EBITDA was 4.1x, at the low end of the company's target range of 4.0x – 5.0x[11] - The company announced 2025 YTD investments totaling $174.9 million at an average initial yield of approximately 8.2%[11] - The company is evaluating a pipeline of investment opportunities valued at approximately $264 million[11]