Chiron Real Estate (NYSE:GMRE) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Speaker7Greetings, welcome to the Chiron Real Estate's fourth quarter 2025 earnings call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Jamie Barber. Thank you. You may begin.Speaker4Good morning, everyone, we ...

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][11] - 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] Business Line Data and Key Metrics Changes - The senior housing operating portfolio reported a same-store net operating income (NOI) growth of 20.4% in the fourth quarter, marking the 13th consecutive quarter of growth exceeding 20% [18][19] - Organic revenue growth remained around 10%, driven by 400 basis points of year-over-year occupancy gains and healthy rate growth [8][19] Market Data and Key Metrics Changes - The company noted a significant increase in occupancy, with 400 basis points of year-over-year growth, among the highest levels in its history [19] - The company expects strong occupancy upside in 2026, supported by a growing 80+ population and a favorable demand-supply picture [8][9] Company Strategy and Development Direction - The company is focused on transforming from a real estate deal-oriented business to an operations and technology-first model, 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, marking a significant expansion of its capital allocation strategy [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for senior housing products, anticipating continued growth despite macroeconomic uncertainties [8][9] - The company highlighted the importance of operational excellence and technology in driving future growth and enhancing customer experiences [22][24] 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][12] - The management team has undergone significant changes, with a focus on attracting high-caliber talent to drive the company's transformation [23][24] 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 [49][51] 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 [55][56] Question: How does the Integra disposition frame the skilled nursing portfolio? - The skilled nursing strategy involves acquiring assets with operational turnaround stories, with a focus on high-quality operators [60][61] Question: What is the size and characteristics of the non-same store pool? - The non-same store portfolio is primarily composed of recently acquired assets, with characteristics similar to the same store portfolio but generally less occupied [63][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] Question: How long can the company continue to acquire unstabilized SHOP? - Management stated that acquisition opportunities depend on market conditions and emphasized the goal of creating value for shareholders [71][72]

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 [7][28] - The enterprise value exceeded $50 billion, with fourth quarter annualized NOI and SHOP NOI reaching $2.5 billion and $1.3 billion, respectively [7][28] - Total shareholder returns for 2025 were 35%, significantly outperforming industry benchmarks and the S&P 500 [8] Business Line Data and Key Metrics Changes - The SHOP same-store portfolio revenue grew over 8%, driven by a 300 basis points year-over-year occupancy increase [14] - NOI for SHOP grew by 15.4% year-over-year in the fourth quarter, with margins increasing by 180 basis points to over 28% [15] - The outpatient medical and research (OMR) business saw same-store cash NOI growth of nearly 4% year-over-year in the fourth quarter [27] Market Data and Key Metrics Changes - The over 80 population is projected to grow by 28% in the next five years, creating significant demand for senior housing [8][10] - New supply of senior housing remains constrained, with only about 2,500 new units started in the fourth quarter of 2025 [9][10] - The company operates in a consumer-driven, private pay business model, which has shown resilience during adverse conditions [9] Company Strategy and Development Direction - The company aims to capitalize on the multi-year growth opportunity in senior housing through its 1, 2, 3 strategy, focusing on organic growth, value-creating investments, and cash flow generation [6][10] - The strategic vision includes enhancing financial strength and flexibility while expanding the senior housing business through aggressive investment activity [10][11] - The company plans to maintain a high single-digit growth in normalized FFO per share for 2026, with expectations of continued double-digit same-store cash NOI growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential driven by demographic trends and the aging population [8][10] - The company is well-positioned to manage the increasing demand for senior housing, with a focus on operational excellence and strong partnerships with operators [20][22] - Management acknowledged the competitive landscape but emphasized the company's unique advantages in capital deployment and operator relationships [24][25] Other Important Information - The board approved an 8% increase in the quarterly dividend, reflecting strong performance and a positive outlook [12] - The company raised $7 billion in capital during the year, enhancing its financial flexibility for future investments [30] Q&A Session Summary Question: On the Brookdale reset on the triple net side - Management indicated a reasonable assumption for the triple net business would be around 3% on average for escalators, with the January increases being an outlier [35] Question: Acquisition guidance and market competition - Management noted that the investment pipeline is active, with a mix of off-market and marketed deals, and emphasized their strong track record with repeat sellers [42][43] Question: Impact of flu season on occupancy - Management reported minimal flu impacts and highlighted improved infection control measures since the pandemic [45][46] Question: Future growth opportunities and potential dispositions - Management acknowledged ongoing pruning within the portfolio, with some underperforming senior housing assets identified for potential disposition [52] Question: Occupancy upside for acquired assets - Management indicated that many acquired assets have occupancy upside, with a focus on high-quality, stabilized properties [72][73] Question: Supply concerns in senior housing - Management expressed confidence that demand from the aging population will outpace any new supply, projecting significant growth in the over 80 demographic [96][97]

Fourth Quarter and Full Year 2025 Results & 2026 Outlook Earnings Presentation Non-GAAP Financial Measures This presentation of Ventas, Inc. (the "Company," "we," "us," "our" and similar terms) includes certain financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"), such as such as Nareit FFO, Normalized FFO, Net Operating Income ("NOI"), Same- Store Cash NOI, Same-Store Cash NOI Margin, Same-Store Cash NOI Growth, Cash Operating Revenue, SHOP Op ...

Core Insights - Brookdale Senior Living Inc. (BKD) reported a weighted average occupancy of 82.4% for December 2025, reflecting a 310 basis points increase year-over-year but a slight decline of 10 basis points from November 2025 [1] Group 1: Occupancy and Capacity - In Q4 2025, BKD's weighted average occupancy reached 82.5%, up from 79.4% a year ago and 81.8% in Q3 2025, indicating consistent growth throughout 2025 [2] - The company has the capacity to serve approximately 51,000 residents across 41 states [2] - BKD has improved its occupancy significantly from a pandemic low of 69.4% in March 2021, aiming to enhance operational efficiency and profitability [5] Group 2: Financial Performance - Resident fee revenues increased by 4.5% year-over-year in the first nine months of 2025, with expectations for continued growth [3] - For 2025, BKD forecasts a 5.25-6% increase in average monthly senior housing resident fee revenue per available unit (RevPAR) and adjusted EBITDA in the range of $455 million to $460 million [3][10] Group 3: Earnings Estimates - The Zacks Consensus Estimate for BKD's Q4 2025 earnings is a loss of 16 cents per share, reflecting a 5.8% year-over-year improvement, although the company has struggled to meet earnings estimates consistently [4] - BKD has met earnings estimates only once in the past four quarters, with an average surprise of 37.1% [4]

Core Insights - The aging population is significantly reshaping healthcare demand, creating opportunities beyond traditional pharma and biotech sectors, particularly in healthcare real estate and senior-focused service providers [2][3] Healthcare REITs - The global senior living market is projected to grow from approximately $260 billion in 2025 to nearly $389 billion by 2032, reflecting a 5.9% CAGR driven by aging populations and increased demand for assisted living and specialized care services [4] - Senior housing REITs in the U.S. are experiencing improved occupancy rates and limited new supply, which supports rental income growth, with companies like Welltower and Ventas increasing their investments in senior housing [4] Operators and Care-Focused REITs - Companies such as Ensign, Omega, and CareTrust are closely aligned with the everyday care needs of the aging population, benefiting from the demand for skilled nursing and long-term care as seniors face more complex medical conditions [5] - These operators focus on essential care delivery that cannot be postponed, contrasting with innovation-driven healthcare segments [5] Company-Specific Developments - Welltower has made significant investments, including $2.52 billion in pro-rata acquisitions for 95 senior housing properties and plans for an additional $4 billion in acquisitions, positioning itself for long-term growth [8] - Ventas is well-prepared for growth, with the U.S. population aged 80 and above expected to increase by 28% in the next five years, indicating a strong demand for senior housing [11] - CareTrust has expanded its portfolio with strategic acquisitions, including a $40 million purchase of assisted living and memory care communities, aligning with the rising demand for senior care real estate [12][13] - Omega is showing improved revenues and operating metrics, with a strategic agreement to acquire a 9.9% equity interest in a senior healthcare operating company, enhancing its position in the market [14][15]

Core Viewpoint - Ventas, Inc. is positioned as a leading entity in the healthcare real estate sector, with a strong portfolio and positive growth outlook supported by strategic investments and favorable market conditions [1][2][3]. Group 1: Company Overview - Ventas, Inc. operates in the healthcare real estate sector, focusing on senior housing, medical office buildings, and research facilities [1]. - The company has a market capitalization of approximately $34.8 billion and a trading volume of 2,630,940 shares on the NYSE, indicating its significance in the healthcare REIT sector [5]. Group 2: Financial Performance - Ventas has a solid balance sheet and improved leverage, showcasing strong financial health and liquidity [3][6]. - The Zacks Consensus Estimate for Ventas' 2025 funds from operations (FFO) per share is projected to be $2.48, reflecting positive analyst sentiment [3]. Group 3: Growth Potential - The company’s strategic investments in its research portfolio and expansion of operations are driving portfolio growth and enhancing same-store cash net operating income (NOI) [4][6]. - Jefferies has set a price target of $93 for Ventas, suggesting a potential price increase of approximately 18.17% from its current price of $78.7, supported by the company's strong healthcare real estate portfolio [2][6]. Group 4: Market Position - Ventas' stock has seen an 11.9% rise over the past three months, contrasting with a 1.5% decline in the industry, indicating investor confidence in the company's performance [3][4]. - The company's diverse assets are well-positioned to benefit from rising healthcare spending and an aging population, enhancing its attractiveness to investors [2].

Core Viewpoint - The article highlights three healthcare stocks—Johnson & Johnson, Medtronic, and Omega Healthcare Investors—as attractive options for dividend-focused investors, emphasizing their strong dividend yields and resilience in the market [2][15]. Group 1: Johnson & Johnson - Johnson & Johnson is recognized as a Dividend King, having increased its dividend for over 50 consecutive years, with a current yield of 2.9%, significantly higher than the broader market's 1.2% and the healthcare sector's average of 1.8% [4][5]. - The company is a leader in pharmaceuticals and medical devices, with a strong global presence and robust R&D capabilities, which positions it well for future growth despite some near-term litigation concerns [5][6]. - A $500 investment would allow the purchase of approximately two shares, while $5,000 would enable the acquisition of 27 shares [6]. Group 2: Medtronic - Medtronic is approaching Dividend King status with 48 years of dividend increases and a current yield of 3%, which is attractive compared to market averages [8][9]. - The company is diversified across various medical device sectors, but has faced challenges with new product introductions and rising costs affecting profitability; however, new cardiac ablation products have shown nearly 50% revenue growth year-over-year in Q2 of fiscal 2026 [10][11]. - A $500 investment would yield around five shares, while $5,000 would allow for the purchase of 55 shares, providing an opportunity to invest early in a business upturn [11]. Group 3: Omega Healthcare Investors - Omega Healthcare is a REIT focused on senior housing, which faced challenges during the pandemic but maintained its dividend, currently yielding an ultra-high 6.4% [12][13]. - The company has seen a recovery in its core business, with funds from operations rising nearly 8% year-over-year in Q2 of 2025, and is making significant new investments [13][14]. - An investment of $500 would allow for the purchase of approximately 11 shares, while $5,000 would enable the acquisition of 119 shares, indicating strong future potential driven by demographic trends [14]. Group 4: Overall Investment Thesis - Johnson & Johnson, Medtronic, and Omega Healthcare have demonstrated resilience and a commitment to dividends, making them suitable candidates for investors looking to allocate $500 or $5,000 into dividend stocks [15].

Market Expansion - Ventas, a major US senior housing owner based in Chicago, is expanding its portfolio [1] - Ventas is acquiring six senior housing communities on Long Island [1]

Financial Data and Key Metrics Changes - The company reported a normalized FFO per share of $0.87, representing a year-over-year growth of approximately 9% [31] - Total company same store cash NOI grew nearly 7%, with the SHOP segment increasing over 13% [31][34] - The full year normalized FFO guidance midpoint was raised to $3.44 per share, indicating an 8% year-over-year growth at the midpoint [7][34] Business Line Data and Key Metrics Changes - The SHOP communities in the U.S. delivered 18% same store cash NOI growth in Q2, with revenue growing over 8% for the entire same store SHOP portfolio [9][16] - The outpatient medical and research business reported same store cash NOI growth of 1.7% year-over-year, led by outpatient medical, which grew NOI by 2.2% [31] - The research business, representing about 8% of NOI, experienced a decline of less than 1% year-over-year due to lower rents on certain tenants [31] Market Data and Key Metrics Changes - The average occupancy in SHOP communities improved by 240 basis points year-over-year, with the U.S. leading with a growth of 290 basis points [16][19] - The outpatient medical segment increased same store occupancy by 20 basis points sequentially and 30 basis points year-over-year to 90.1% [32] Company Strategy and Development Direction - The company is executing a "one two three" strategy aimed at driving organic growth, making value-creating investments, and maximizing performance across its portfolio [6][7] - The focus is on expanding the SHOP footprint, with expectations that SHOP NOI will represent over half of the business by year-end [13] - The company anticipates significant demand growth in senior housing due to an aging population, with the 80+ population expected to grow by 28% in the next five years [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing aging population and the favorable supply-demand dynamics in the senior housing market [6][14] - The management team highlighted the importance of maintaining strong relationships with operators to drive performance and growth [21][22] - The company expects to continue experiencing strong occupancy and revenue growth, particularly in the SHOP segment, supported by data analytics and operational improvements [16][19] Other Important Information - The company raised its full year 2025 senior housing investment volume guidance to $2 billion, reflecting a growing pipeline of investment opportunities [10][28] - The balance sheet showed improvement, with a net debt to EBITDA ratio of 5.6 times, indicating a 40 basis point improvement since the start of the year [32] Q&A Session Summary Question: Can you provide additional color on the sequential occupancy gain in Q2 2025? - Management noted a strong movement activity throughout the year, particularly in June, with a sequential occupancy growth of 60 basis points [39] Question: How is the competitive landscape affecting your transaction activity? - Management indicated that while competition has increased, they have been able to maintain momentum in investment activity and continue to pursue high-performing communities [42][44] Question: Can you discuss the initiatives to improve move-ins? - Management highlighted the importance of data analytics and collaboration with operators to drive sales and improve occupancy rates [48] Question: What is the historical high for outpatient medical occupancy? - The historical high for outpatient medical occupancy is around 93-94%, with current occupancy hovering around 90% [58] Question: How does the company view the impact of the new healthcare bill? - Management expects minimal immediate impact from the bill, as many changes will take effect over a long period [53][54] Question: What are the expectations for the Brookdale transition? - The transition of 45 communities from triple net to SHOP is expected to double the NOI over time, with operators already engaged in the process [90][92]