Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $388.7 million, representing a 4% year-over-year increase [5] - Adjusted EBITDA RE was $62.9 million, and normalized FFO was $9.7 million or $0.04 per share [5] - Same property cash-based NOI was $62.6 million, a 70 basis point increase year-over-year, but a 9.5% decrease sequentially [14] Business Line Data and Key Metrics Changes - SHOP occupancy increased by 210 basis points year-over-year to 81.5%, marking the fourth consecutive quarter of occupancy growth [8] - SHOP revenues increased by 6.9% year-over-year, and consolidated SHOP NOI rose by 7.8% to $29.6 million [9] - Medical office and life science portfolio saw a consolidated occupancy increase of 370 basis points sequentially to 86.6% [10] Market Data and Key Metrics Changes - The company completed approximately 86,000 sq ft of leasing at weighted average rents 9% above prior rents for the same space [10] - Same property cash basis NOI for the medical office and life science portfolio increased by 1.6% year-over-year, with margins improving by 100 basis points to 58.9% [10] Company Strategy and Development Direction - The transition of AlerisLife Managed Communities is aimed at establishing a more efficient operating model aligned with industry trends [7] - New operating agreements include performance-based incentives and termination structures to enhance accountability [8] - The company is focused on reducing leverage through asset sales and improving performance in the SHOP segment [19] Management's Comments on Operating Environment and Future Outlook - Management expects to see a reduction in operator transition costs in Q4, estimating an impact of around $1.5-$2 million [22] - The company is maintaining its full-year SHOP NOI guidance range of $132-$142 million [20] - Management is optimistic about long-term performance improvements in the SHOP segment and overall portfolio [20] Other Important Information - The company has sold 44 properties for $396 million year-to-date and is under agreement to sell 38 additional properties for $237 million [12] - The company ended the quarter with approximately $351 million of liquidity, including $201 million of unrestricted cash [17] Q&A Session Summary Question: Impact of operator transition OpEx costs in Q4 - Management expects around $1.5-$2 million of impact in Q4, with continued increases in occupancy and some reductions in expenses [22] Question: Clarification on margin numbers - The 10.1% margin mentioned was a consolidated number [23] Question: Reason for the timing of the transition from AlerisLife - The transition was driven by AlerisLife's business needs and aims to bolster overall performance through new operators [25][26] Question: Expectations for SHOP occupancy by year-end - Management confirmed expectations for occupancy to be in the 82%-83% range by year-end [27] Question: Disposition activity and pipeline status - Approximately $200 million in dispositions is expected to close by year-end, with some transactions likely slipping into Q1 2026 [30]