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][33] - 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][34] - Total portfolio same-store NOI growth was 15%, driven by 20.4% growth in the senior housing operating portfolio [18][33] Business Line Data and Key Metrics Changes - The senior housing operating portfolio reported 13 consecutive quarters of same-store net operating income growth exceeding 20% [7][18] - Organic revenue growth remained around 10%, supported by 400 basis points of year-over-year occupancy gains and healthy rate growth [8][19] - ExPOR (expenses per occupied room) growth increased by only 0.8%, leading to strong margin expansion of 270 basis points [20][21] Market Data and Key Metrics Changes - The demand for senior housing products continues to strengthen, with occupancy gains during a seasonally slower period [19] - The company noted that the 80+ population is expected to grow rapidly, enhancing end-market demand for its products [8][9] - New construction remains at low levels, contributing to a favorable supply-demand dynamic [9] Company Strategy and Development Direction - The company is focused on transforming from a real estate deal shop to an operations and technology-first business, 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, indicating a strategic expansion into capitalized businesses [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive outsized NOI growth and margin expansion in the coming years, despite macroeconomic uncertainties [21][24] - The company is committed to investing in technology and talent to enhance operations and customer experience [22][23] - Management highlighted the importance of operational execution and customer experience in driving occupancy and revenue growth [68] 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][26] - The management team has undergone significant changes, with a focus on retaining top talent and enhancing incentive structures [39][40] 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 [50][52] 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 [54][55] Question: How does the Integra disposition frame the SNF portfolio for future acquisitions? - The skilled nursing strategy involves acquiring assets with operational turnaround potential, with proceeds from sales being opportunistically deployed [59][60] Question: What is the current status of the non-same store pool? - The non-same store portfolio is characterized by lower occupancy and is strategically focused on acquiring assets with significant upside potential [62][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]

Financial Data and Key Metrics Changes - Welltower reported a 36% revenue growth, 32% EBITDA growth, and 22% FFO per share growth in 2025, while also deleveraging its balance sheet [3][4] - The company ended the year with a net income attributable to common stockholders of $0.14 per diluted share and normalized FFO of $1.45 per diluted share, representing a 28.3% year-over-year growth [32] Business Line Data and Key Metrics Changes - The senior housing operating portfolio achieved a same-store NOI growth of 20.4%, marking the 13th consecutive quarter of growth exceeding 20% [17][18] - Organic revenue growth remained around 10%, driven by 400 basis points of year-over-year occupancy gains and healthy rate growth [6][18] - The company reported a same-store revenue growth of 9.6% across all geographies and senior housing acuity levels [18] Market Data and Key Metrics Changes - The demand for senior housing products continues to strengthen, with occupancy gains of 400 basis points year-over-year, among the highest levels in the company's history [18] - The company noted that new construction remains at trough levels, contributing to a favorable supply-demand picture [6] Company Strategy and Development Direction - Welltower is focused on transforming from a real estate deal shop to an operations and technology-first business, emphasizing customer trust and employee experience [4][5] - The company launched its private funds management business and made significant investments in technology and talent to enhance operational efficiency [3][16] - Welltower aims to continue driving meaningful alpha for shareholders through the full-scale modernization of its senior housing portfolio via the Welltower Business System [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the high visibility of end-market demand for senior housing, particularly as the 80+ population continues to grow [6] - The company anticipates another year of strong occupancy upside in 2026, along with strong pricing power [6][19] - Management acknowledged the challenges of the senior living business but emphasized the importance of execution and operational excellence [8][20] Other Important Information - Welltower completed nearly $11 billion of net investment activity in 2025, primarily in high-growth senior housing properties [10] - The company sold its outpatient medical business for $7.2 billion, which significantly contributed to its capital rotation strategy [10][25] - Welltower launched its Senior Housing Equity Fund One, raising approximately $2.5 billion in equity commitments, marking a significant expansion of its capital allocation strategy [30] Q&A Session Summary Question: Can you provide more quantitative insights on compounding and duration? - Management emphasized that the focus is on partial earnings and cash flow growth rather than just same-store metrics, indicating a belief in double-digit NOI growth for the long term [48][49] 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 on the operational technology side [53][54] Question: How does the Integra disposition frame the SNF portfolio for future acquisitions? - Management described the skilled nursing portfolio as a structured credit investment, focusing on acquiring assets with operational turnaround stories [57][58] 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 existing shareholders [67][69]

Market Overview - U.S. equity markets experienced a rebound, with stocks rising approximately 1.7%, while small-cap stocks surged by 3.4% [1][3] - Bitcoin saw a significant increase of nearly 12%, reaching $70,000 per coin, after being about $10,000 lower the previous day [2] Sector Performance - The rotation in the market is shifting focus from large-cap tech stocks to sectors such as biotech, electronic components, airlines, trucking, and banks [3][8] - The S&P 500 and NASDAQ indices rose by almost 2%, while the Russell 2000 small-cap index outperformed with over 3% gains [3][4] Earnings Reports - 78.5% of S&P 500 companies that reported earnings exceeded expectations, although this is a decline from previous quarters [5][6] - The mixed reactions to big tech earnings indicate ongoing market focus on these companies despite the broader market rotation [6][8] Investment Strategies - There is a growing interest in diversifying investments beyond large-cap tech stocks into small-cap and cyclical value stocks [16][78] - The market is seeing a shift towards non-U.S. equities, which have gained 7.25% year-to-date, contrasting with a 4.5% decline in concentrated tech names [78][80] Demographic Trends in Real Estate - The senior housing market is experiencing growth due to demographic trends, with a significant increase in the aging population, particularly as baby boomers turn 80 [20][24] - Ventas, a real estate trust, is focusing on acquiring senior housing properties, targeting $2.5 billion in investments, driven by strong demand and limited new construction [24][28] Prediction Markets - The rise of prediction markets is impacting traditional sports betting, with estimates suggesting they could account for about 5% of total wagers [38][42] - Interactive Brokers is positioning itself in the prediction market space, focusing on economic and environmental contracts rather than sports [50][55]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported FFO as adjusted of $0.47 per share and AFFO of $0.40 per share, with total same-store cash NOI growth of 3.9% [15] - For the full year 2025, FFO as adjusted was $1.84 per share and AFFO was $1.69 per share, with total same-store cash NOI growth of 4% [16] - The company ended the year with a net debt to Adjusted EBITDA ratio of 5.2x and $2.4 billion in liquidity [19] Business Line Data and Key Metrics Changes - Outpatient Medical segment represented over 50% of portfolio income, achieving same-store growth of 3.9% and 91% total occupancy [4][16] - The lab segment ended the year with 1.5% same-store growth and total occupancy of 77%, impacted by the Gateway acquisition [17] - Senior Housing segment reported 12.6% same-store growth, significantly above guidance, with 16.7% growth in Q4 [18] Market Data and Key Metrics Changes - The Bay Area led all Life Science markets in Q4 2025 in absorption and leasing activity, with the largest volume of current tenant demand [8] - The private market is recognizing the favorable operating environment, driving down cap rates [5] Company Strategy and Development Direction - The merger with Physicians Realty Trust has created a strong platform in the Outpatient sector, allowing for profitable internalization of property management [4] - The company is focusing on strategic acquisitions, including a 1.4 million sq ft campus in South San Francisco, to capitalize on recovery in the sector [8] - Plans to create a pure-play Senior Housing REIT through the Janus Living IPO, contributing the entire Senior Housing portfolio to capture value [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted an inflection point in the Life Science sector, with signs of recovery in capital raising and M&A activity [6] - The company expects FFOs adjusted to range from $1.70-$1.74 per share for 2026, with same-store NOI growth forecasted between -1% to +1% [19] - Management expressed optimism about improving occupancy in the lab segment, contingent on favorable capital market conditions [30] Other Important Information - The company has completed $464 million in acquisitions so far in 2026, including a $314 million buyout of a joint venture partner in the Senior Housing portfolio [21] - The company plans to execute a capital recycling plan of $1 billion or more in asset sales and recapitalizations in 2026 [21] Q&A Session Summary Question: Can you discuss the Gateway acquisition and its complement to the existing portfolio? - Management expressed excitement about the Gateway acquisition, viewing it as an opportunity rather than a vacancy issue, and highlighted the strategic fit within their existing footprint [25][26] Question: What is the expected cadence of lab occupancy throughout the year? - Management indicated that total occupancy should improve by year-end 2026, depending on continued positive trends in capital markets [30] Question: Can you provide more details on the lab leasing activity? - Management noted that the pipeline is strong, with a mix of new leasing and renewals, and emphasized a significant improvement compared to the previous year [36] Question: What is the impact of lab occupancy losses on 2026 FFO? - Management clarified that the $0.12 impact on earnings is due to various factors, including occupancy losses and higher refinancing costs [41] Question: How are negotiations for 2026 expirations progressing? - Management reported that a substantial majority of expirations are in South San Francisco, where they have strong tenant relationships, and they are optimistic about renewals [61]

Core Insights - The article highlights six stocks that offer high-yielding dividends expected to grow in the coming years, amidst a low dividend yield environment in the S&P 500 at around 1.1% [1] Group 1: Clearway Energy - Clearway Energy is a major clean power producer with a diverse portfolio of renewable energy and natural gas assets, providing a 5.5% dividend yield supported by long-term fixed-rate power purchase agreements [3][4] - The company plans to distribute approximately 70% of its stable cash flow as dividends, aiming for a free cash flow growth of 5% to 8% annually, which will support future dividend increases [4] Group 2: Enterprise Products Partners - Enterprise Products Partners owns a diversified portfolio of energy midstream assets, generating stable cash flow with a current distribution yield of 6.8%, comfortably covered by 1.5 times [6][7] - The company has a strong balance sheet and has increased its distribution for 27 consecutive years, with significant capital project completions planned for the second half of the year and further expansions in 2026 [7] Group 3: Healthpeak Properties - Healthpeak Properties is a REIT focused on healthcare-related properties, offering a 7.3% monthly dividend supported by stable cash flow [8][9] - The REIT has a conservative payout ratio and is looking to generate $1 billion from potential sales to reinvest in outpatient medical development and lab properties, which should enhance future dividend growth [9] Group 4: Realty Income - Realty Income is another REIT with a diversified commercial real estate portfolio, currently yielding 5.6% and backed by stable cash flow [11][12] - The company has a strong balance sheet and plans to invest $6 billion this year, which will help in increasing its dividend, having done so 133 times since its public listing in 1994 [12] Group 5: Main Street Capital - Main Street Capital is a business development company providing capital to smaller private firms, currently offering a 5.1% monthly dividend, with a goal to steadily increase this rate [13][14] - The company has raised its monthly dividend by 4% over the past year and has a total yield of 7.6% when including supplemental quarterly dividends [14] Group 6: Verizon - Verizon generates stable cash flow from its mobile and broadband services, currently yielding 6.8% and has raised its dividend for 19 consecutive years [16][17] - The company is in the process of acquiring Frontier Communications for $20 billion, which is expected to enhance its fiber network and customer service offerings, potentially increasing profit margins [17] Conclusion - These six companies are positioned to provide stable cash flow and high-yielding dividends, making them attractive options for investors seeking income in 2026 and beyond [18]

Financial Data and Key Metrics Changes - The normalized FFO per share for Q2 2025 was $0.37, and normalized AFFO per share was $0.38, representing a 6% improvement over the same period in 2024 [21][24] - Total normalized FFO and normalized AFFO for the quarter were $89.2 million and $91.6 million respectively, reflecting strong sequential growth from increased NOI in both triple net and managed senior housing portfolios [21][22] - Cash rental income from the triple net portfolio increased by $2.3 million from the first quarter, driven by a $1.4 million increase in percentage rents [22] Business Line Data and Key Metrics Changes - The managed senior housing portfolio contributed nearly 21% to total annualized cash NOI, with cash NOI for the quarter growing 17.1% year over year in the same store portfolio [14][18] - Revenue for the same store managed senior housing portfolio grew 5.6% year over year, with occupancy increasing to 86% from 84.6% in 2024 [16] - Cash NOI from the managed senior housing portfolio totaled $25.3 million for the quarter, up from $24.1 million last quarter [22] Market Data and Key Metrics Changes - The average Medicaid rate increase is expected to be around 3.5%, with the top five skilled nursing tenants averaging just above 5% [8] - The Medicare market saw an upward revision from 2.8% to 3.2%, which is considered unusual but positive [8] - The Canadian portfolio's RevPAR increased by 6.8% year over year, with occupancy above 90% for over five quarters [17] Company Strategy and Development Direction - The company aims to increase its SHOP (Senior Housing Operating Portfolio) from 20% to 30% by 2026, requiring $1 billion in investments [11] - The focus remains on acquiring well-performing newer senior housing communities that cater to the baby boomer generation [15] - The company is not interested in building a loan book or complex joint venture structures, preferring straightforward traditional deals [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment activity and operational performance, noting that triple net rent coverage is at new highs across all asset classes [12] - The company anticipates continued growth momentum into 2026, with a strong pipeline of investment opportunities [12][71] - Management remains cautious about the potential impact of economic factors on Medicare and Medicaid but believes the industry is in a healthier position than before [92][96] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a payout of 79% of the second quarter normalized AFFO per share [29][30] - The net debt to adjusted EBITDA ratio was five times as of June 30, 2025, a decrease from previous quarters, indicating improved leverage [25][26] Q&A Session Summary Question: Investment guidance and confidence in reaching $500 million for the year - Management indicated that the investment range would be between $400 million to $500 million, depending on timing [33] Question: Composition of future investments and skilled nursing deals - Management clarified that while pricing is not an issue, the focus is on finding quality assets in the right markets, with a majority of future investments likely still in SHOP [35] Question: Same store SHOP NOI performance and guidance - Management expressed hope for upside but opted for a moderate approach in guidance adjustments [42] Question: Impact of holiday transition on occupancy and NOI - Management noted that the transition had an initial negative impact but expected improvements in occupancy and NOI moving forward [66] Question: Labor market conditions and wage increases - Wage increases across operators are around 4%, with no significant issues in specific markets [100][103] Question: Selection criteria for new operators - The selection process involves understanding operators' quality outcomes and their desire for growth [107]

Second Quarter 2025 Performance - Normalized FFO per share was $0.87, a ~9% YoY increase, driven by SHOP NOI growth and senior housing investment activity[11] - Total Company Same-Store Cash NOI grew 6.6% YoY, led by SHOP[11] - SHOP Same-Store Cash NOI increased by 13.3% YoY, or 15% YoY excluding a $3 million property tax refund in Q2 2024[12] - U S SHOP growth was ~16%, or over 18% YoY excluding the prior year property tax refund[12] 2025 Outlook - Senior housing investment guidance increased from $1.5 billion to $2.0 billion[12] - Normalized FFO per share midpoint improved by $0.03 to $3.44[15] - SHOP Same-Store Cash NOI growth guidance range is 12% - 16%[14] Capital & Portfolio - $1.1 billion of accretive senior housing investments closed year-to-date[12, 55] - ~$1.8 billion of equity raised, including ~$0.7 billion of unsettled equity forward sales agreements[12] - Liquidity of $4.7 billion as of June 30, 2025[12] - Net Debt to Further Adjusted EBITDA improved to 5.6x, a 0.4x reduction from year-end 2024[12]