Financial Data and Key Metrics Changes - The company reported normalized FFO of 84¢ per share, representing nearly 8% year-over-year growth [28] - Total same store cash NOI grew by 7%, led by SHOP increasing approximately 14% [29] - The company expects 7% normalized FFO per share growth for 2025 [6][11] Business Line Data and Key Metrics Changes - Senior Housing Operating Portfolio (SHOP) delivered 84¢ of normalized FFO per share in Q1, an increase of approximately 8% [7] - SHOP's same store cash NOI growth was 13.6%, with revenue growth of 7.4% driven by occupancy and rate increases [15] - Outpatient medical and research business reported same store cash NOI growth of 1.3% year-over-year [29] Market Data and Key Metrics Changes - The 80+ population is experiencing its highest growth, with an increase of about half a million people this year and 900,000 annually between 2027 and 2030 [8] - The number of new senior housing units started in Q1 2025 was the lowest on record at only 1,287 units [8] - The company is positioned in markets with over a thousand basis points of expected net absorption in the coming years [9] Company Strategy and Development Direction - The company is focused on delivering superior multiyear growth through internal and external expansion in senior housing [5] - The investment strategy has been increased from $1 billion to $1.5 billion for the year, reflecting a growing pipeline of opportunities [31][26] - The company aims to enhance its portfolio composition through acquisitions, dispositions, and operational improvements [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a high degree of macroeconomic uncertainty but believes senior housing remains a top asset class within real estate [87] - The company expects strong demand and occupancy growth, particularly during the key selling season [88] - Management is optimistic about the extended multiyear NOI growth opportunity in senior housing due to favorable demand and supply dynamics [11][88] Other Important Information - The company has improved its credit profile, with a net debt to EBITDA of 5.7 times, representing a 30 basis point improvement from the previous year [32] - The liquidity position is robust, with available liquidity of $3.6 billion as of April 2025 [33] - The company has completed over 250 community redevelopment projects in the past two and a half years [21] Q&A Session Summary Question: Can you provide more details on the dynamics of occupancy and margin expansion? - Management indicated that reaching higher occupancy levels leads to significant margin expansion, with around 50% incremental margin from 80% to 90% occupancy [39] Question: How is the Canadian portfolio performing at high occupancy? - The Canadian portfolio continues to deliver strong NOI growth even at high occupancy levels, demonstrating that occupancy is not the only driver of growth [42] Question: What is the impact of the recent investments on cost per bed? - The cost per bed has increased due to acquiring newer communities in better markets, but the company is still buying below replacement costs [56][60] Question: How are the Brookdale assets expected to perform during the transition? - The Brookdale communities transitioning to new operators are outperforming those remaining in the lease model, and management is optimistic about their future performance [66][71] Question: What are the expectations for pricing power in the upcoming months? - Management expects pricing power to remain strong, with good rent increases anticipated during the key selling season [80] Question: How does the company view the potential changes in NIH funding? - Management believes that any potential changes in NIH funding would have a manageable impact on the research budget due to the strong financial position of their university tenants [113]

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]