Financial Data and Key Metrics Changes - The company reported FFO as adjusted of $0.46 per share and AFFO of $0.42 per share, with year-to-date portfolio same-store growth of 3.8% [12][18] - Cash NOI increased by 9.4% for the quarter [13] - The company ended the third quarter with a net debt to adjusted EBITDA ratio of 5.3x and $2.7 billion of liquidity [17] Business Line Data and Key Metrics Changes - CCRC portfolio delivered strong performance with NOI up more than 50% since acquiring the joint venture interest, including double-digit growth this year [9] - Outpatient medical executed 1.2 million sq ft of leases during the quarter, achieving 3% escalators or above on executions and positive cash releasing spreads of 5.4% [14] - Lab leasing saw 339,000 sq ft of leases executed, with total occupancy at 81% and positive 5% releasing spread on renewals [16] Market Data and Key Metrics Changes - The leasing pipeline has doubled to 1.8 million sq ft since the beginning of the year, with a favorable mix of new and renewal leases [16][22] - The company is experiencing increased demand from tech and AI-based companies, contributing to a strengthening demand profile [17][43] Company Strategy and Development Direction - The company aims to recycle outpatient sale proceeds into higher return lab opportunities, with a focus on strategic investments and disciplined capital allocation [7][18] - The internalization of property management allows for quicker deployment of technology and deeper tenant relationships, enhancing growth opportunities [5][11] - The company is focused on maintaining a tech-enabled platform to streamline operations and expand tenant services [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the outpatient sector, citing positive leading indicators and a strong pipeline for leasing [4][7] - The company anticipates a decline in occupancy in the short term but expects to reach a bottom and begin recovery thereafter [8][17] - Management highlighted the importance of the recent positive regulatory environment and its impact on tenant sentiment and capital raising [64] Other Important Information - The company has completed $158 million of asset sales and loan repayments year-to-date, with an additional $204 million of dispositions under a purchase and sale agreement [18][19] - The company is exploring various opportunities for capital recycling, including outpatient medical, life science investments, and potential share repurchases [57] Q&A Session Summary Question: Can you elaborate on the lab leasing pipeline and what's changed? - Management noted that the pipeline has doubled, with a favorable mix of new and renewal leases driven by improved sentiment in the sector [22][23] Question: What are the potential opportunities for the $1 billion in outpatient medical sales? - Management indicated that outpatient medical has been a strong business, and they plan to take advantage of strong demand for assets while exploring higher return opportunities in life sciences [25][26] Question: How does the company view tenant risk and the current tenant base? - Management reported a meaningful reduction in tenant exposure and expressed confidence in the ability of tenants to raise capital in the current environment [38][41] Question: What is the expected timeline for occupancy recovery? - Management expects occupancy to trend down to the high 70% range before beginning to recover, with a focus on maintaining strong tenant relationships [76][77] Question: How does M&A activity impact tenant space needs? - Management indicated that M&A can lead to increased demand for space, depending on the nature of the acquisition [96]