Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year 2025, representing a 22% year-over-year growth in FFO per share compared to 2024 [21] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][21] - The company improved its debt to EBITDA by nearly a full turn in 2025, entering 2026 with a net debt to EBITDA ratio of 3.4 times [21][24] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased 24.6% in Q4 and 25.2% for the full year 2025, with occupancy surpassing 90% [13] - The company expects continued strong performance in both Trilogy and SHOP segments, with guidance for 2026 indicating 8%-12% growth in Trilogy and 15%-19% growth in SHOP [23] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16] - The investment pipeline includes approximately $230 million in awarded deals, with ongoing deal activity expected to increase in 2026 [19][56] - The company anticipates that competitive pressure in its markets will remain muted due to historically low levels of new supply growth [18] Company Strategy and Development Direction - The company maintains a disciplined investment and capital allocation strategy focused on high-quality care and superior health outcomes [7][8] - The strategy includes a shift towards higher acuity assets and relationship-driven sourcing for acquisitions [16][64] - The company is focused on expanding its Trilogy segment and campus growth initiatives, leveraging existing assets to mitigate market risks [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][23] - The leadership emphasized the importance of high-quality care and health outcomes, which are expected to drive demand in the aging population [13][18] - Management acknowledged the challenges in the operating environment but remains optimistic about the company's ability to navigate these challenges and capitalize on growth opportunities [24] Other Important Information - The company has a robust pipeline of acquisitions and is prepared to deploy capital competitively in response to increasing deal activity [19][56] - The management team is committed to maintaining operational alignment and clarity of execution during the leadership transition [6][9] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - Management noted a focus on higher acuity SHOP assets, indicating confidence in long-term stability for this asset class [27] Question: Can you discuss the guidance for SHOP and potential deceleration? - Management highlighted a significant increase in occupancy in 2025 and indicated that pricing power would increase as occupancy rises [32][34] Question: What are the expectations for the investment pipeline and yields? - Management indicated that they are seeing cap rate compression and are focused on acquiring higher quality properties [63] Question: How does the revenue management system rollout progress? - Management explained that the revenue management system is being piloted with select operators, aiming to enhance performance across the portfolio [46][51] Question: What is the outlook for Trilogy investments? - Management acknowledged increased competition but emphasized their advantage in off-market acquisitions and strong relationships with operators [80][82]

Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit same-store NOI growth [7] - Normalized funds from operation (NFFO) reached $0.44 per fully diluted share in Q3, reflecting a 22% year-over-year increase [22] - The company increased its full-year 2025 NFFO guidance to a range of $1.69-$1.72 per fully diluted share, implying growth in excess of 20% year-over-year at the midpoint [23] - Net debt to EBITDA improved to 3.5 times, representing a 0.2-time improvement from the previous quarter and a 1.6-time improvement from Q3 2024 [25] Business Line Data and Key Metrics Changes - Within the Trilogy segment, same-store NOI grew 21.7% year-over-year, with occupancy averaging 90.2% in Q3, up more than 270 basis points from last year [12] - The shop segment reported same-store NOI growth of 25.3%, with revPOR up 5.6% year-over-year and NOI margins expanding nearly 300 basis points to 21.5% [14] - The integrated senior health campuses segment increased its same-store NOI growth guidance to a range of 17%-20% [23] Market Data and Key Metrics Changes - Medicare Advantage accounted for 7.2% of total resident days at Trilogy during Q3, up from 5.8% a year ago, indicating a shift towards higher reimbursement sources [13] - Construction starts across senior housing remain near historic lows, while demographic growth in the 80-plus cohort accelerates, supporting a multi-year runway for further occupancy gains [15] Company Strategy and Development Direction - The company is focused on building durable long-term growth through operating alignment with best-in-class regional operators and disciplined capital allocation [10] - The company has closed over $575 million in acquisitions year-to-date, with a pipeline of awarded deals standing at well over $450 million [9][20] - The inaugural corporate responsibility report was published, reflecting the company's commitment to governance, social, and sustainability priorities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment for long-term care, citing strong demand tailwinds and the quality of their portfolio [8] - The company expects to maintain occupancy gains achieved through the busy spring and summer selling season, despite entering a historically slower winter season [12] - Management anticipates continued pricing power, expecting to price at a rate higher than inflation [31] Other Important Information - The company executed $13 million of non-core dispositions, concentrating capital within its operating portfolio [19] - The development pipeline consists of projects with a total expected cost of roughly $177 million, with approximately $52 million spent to date [20] Q&A Session Summary Question: What is the maximum occupancy upside from 90%? - Management indicated that the maximum upside from 90% to 100% is 10%, but future occupancy trends will depend on supply-demand fundamentals [29] Question: Can you discuss the competitive environment for acquisitions? - Management noted that while there are more assets coming to market, the competitive landscape remains manageable, with many deals being off-market [33][34] Question: What is the strategy regarding the MOB portfolio? - The company has been divesting MOBs, focusing on growing the RIDEA side of the business, and expects to continue redirecting cash into senior housing [70] Question: How is Trilogy leveraging its revenue management system? - Trilogy is utilizing its revenue management system to optimize operations and is in pilot phases with other operators to extend this tool [53] Question: What is the acquisition strategy moving forward? - The company is targeting a mix of independent living, assisted living, and memory care, focusing on quality buildings that will provide good earnings growth [90]

Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 16.4% across the total portfolio, marking the seventh consecutive quarter of double-digit same-store NOI growth [6][9] - Normalized funds from operation (NFFO) reached $0.44 per fully diluted share, reflecting a 22% year-over-year increase [22] - The company increased its full-year 2025 NFFO guidance to a range of $1.69-$1.72 per fully diluted share, implying growth in excess of 20% year-over-year at the midpoint [23][24] - Net debt to EBITDA improved to 3.5 times, representing a 0.2-time improvement from the previous quarter and a 1.6-time improvement from Q3 2024 [25] Business Line Data and Key Metrics Changes - Trilogy's same-store NOI grew 21.7% year-over-year, with occupancy averaging 90.2% in Q3, up more than 270 basis points from last year [11][12] - The shop segment reported same-store NOI growth of 25.3%, with revPOR up 5.6% year-over-year and NOI margins expanding nearly 300 basis points to 21.5% [13] - Medicare Advantage accounted for 7.2% of total resident days at Trilogy during Q3, an increase from 5.8% a year ago [12] Market Data and Key Metrics Changes - The company closed on over $575 million of acquisitions year-to-date, all within its REIT DEA segments [7][17] - The awarded deal pipeline now stands at over $450 million, expected to close in Q4 2025 and early 2026 [9][19] - Construction starts across senior housing remain near historic lows, while demographic growth in the 80-plus cohort accelerates [14] Company Strategy and Development Direction - The company is focused on building durable long-term growth through operating alignment with best-in-class regional operators and disciplined capital allocation [9][25] - The inaugural corporate responsibility report was published, reflecting the company's governance, social, and sustainability priorities [10] - The company is leveraging Trilogy's centralized revenue management system across other operating partners to optimize revenue [15][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment for long-term care, citing strong demand tailwinds [6][7] - The company expects to maintain occupancy gains achieved through the busier spring and summer selling season, despite entering a historically slower winter season [11][14] - Management anticipates continued pricing power, expecting to price at a rate higher than inflation [30] Other Important Information - The company executed $13 million of non-core dispositions during the quarter, concentrating capital within its operating portfolio [18] - The in-process development pipeline consists of projects with a total expected cost of roughly $177 million, with approximately $52 million spent to date [19] Q&A Session Summary Question: What is the maximum occupancy upside from 90%? - Management indicated that the maximum upside from 90% to 100% is 10%, but future occupancy trends are uncertain due to supply-demand fundamentals [28][29] Question: How competitive is the current market for acquisitions? - Management noted that while there are more assets coming to market, competition is mixed, with both REITs and non-REIT competitors involved [32][33] Question: Can you discuss the acquisition strategy regarding independent living versus assisted living? - The company targets a mix of independent living, assisted living, and memory care, focusing on quality buildings that provide good earnings growth [80][81]

Financial Data and Key Metrics Changes - The company reported normalized funds from operations (NFFO) of $0.38 per fully diluted share, representing an increase of over 26% compared to Q1 2024 [27] - The net debt to annualized adjusted EBITDA stood at 4.5 times at the end of the quarter [31] - Full year 2025 same store NOI growth targets were raised to a new range of 9% to 13% from a prior range of 7% to 10% [29] Business Line Data and Key Metrics Changes - The company achieved 15.1% same store NOI growth year over year in Q1 2025, driven by strong performance in the Trilogy and SHOP segments [10][14] - Trilogy reported a same store NOI growth of 19.8%, while the SHOP segment saw a growth of 30.7% in Q1 2025 [15] - The Trilogy segment's full year same store NOI growth guidance was revised upward to a range of 12% to 16% from a previous range of 10% to 12% [29] Market Data and Key Metrics Changes - The company noted a sharp uptick in move-ins since the end of Q1, indicating strong demand in the assisted living market [11] - The company experienced strong revenue optimization, leading to an 8.8% year-over-year revenue growth in the SHOP segment [18] Company Strategy and Development Direction - The company is focused on expanding its operating portfolio through strategic partnerships with market leaders and identifying new growth opportunities [12] - The company aims to maintain a hands-on asset management approach to drive strong performance across its operating portfolio [12] - The company is actively selling off non-core, lower growth assets to reallocate capital towards higher growth opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of the senior housing industry, benefiting from favorable long-term fundamentals [11] - The company anticipates strong demand for assisted living care as it moves into the warmer months [11] - Management highlighted the importance of quality care and operational efficiency as key drivers for future success [19] Other Important Information - The company successfully closed several investments, including a $65 million acquisition in the Mid Atlantic region [21] - The company has a pipeline of over $300 million in potential acquisitions, primarily in the operating portfolio segments [22] Q&A Session Summary Question: Can you provide more detail on the expected close and stages of the pipeline? - Management indicated that the pipeline has ramped up quickly, with expected closings mostly in the fourth quarter [35][36] Question: How is the company thinking about its MOB and triple net portfolio? - Management noted a conscious decision to reduce the size of the MOB portfolio, focusing on better risk-adjusted returns in long-term care [40][41] Question: Can you share details on the investment pipeline and deal economics? - The pipeline consists of over $300 million, primarily newer buildings with attractive pricing and yields [48][49] Question: What is the outlook for Trilogy's rates and occupancy? - Management expects inflationary increases in Medicaid rates and a potential for outperformance based on quality measures [62] Question: How is the company addressing the current demand and pricing strategies? - Management highlighted a reduction in concessions and dynamic pricing strategies to capture demand effectively [74][76]