Financial Data and Key Metrics Changes - In 2025, the company achieved consolidated NOI growth of 31.3% and reduced leverage by over three turns, with no debt maturities until 2028 [6][12] - For Q4 2025, total revenue was $379.6 million, Adjusted EBITDAre was $72.4 million, and Normalized FFO was $21.8 million or $0.09 per share [7][20] - Full year Adjusted EBITDAre was $284 million, at the high end of guidance [20] Business Line Data and Key Metrics Changes - SHOP NOI for Q4 improved 27.6% year-over-year to $38.3 million, with full year SHOP NOI at $139.3 million, towards the high end of guidance [6][7] - Medical office and life science NOI was $108.1 million, just above the midpoint of guidance [21] - Same-property Cash Basis NOI increased 15.4% year-over-year to $70.4 million in Q4 [15] Market Data and Key Metrics Changes - Same-property occupancy for SHOP increased 90 basis points year-over-year to 82.4%, with average monthly rates up 5.8% [7][15] - Consolidated occupancy in the medical office and life science portfolio increased 460 basis points sequentially to 91.2% [11] Company Strategy and Development Direction - The company aims to unlock value through operational performance and is focused on executing property-specific business plans [9][26] - There is a healthy pipeline of ROI projects expected to add approximately 500 SHOP units, with an unlevered mid-teens ROI [10][27] - Future dispositions will be opportunistic, with proceeds used to reduce leverage or redeploy into accretive initiatives [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 outlook due to robust demand for SHOP communities and a favorable industry outlook [10][14] - The company anticipates continued increases in revenue and occupancy, leading to strong NOI and margin growth in 2026 [15][20] Other Important Information - The company completed the wind down of AlerisLife, transitioning 116 communities to seven operators [5] - G&A expenses for Q4 included a $5.7 million business management incentive fee, driven by a total shareholder return of nearly 113% in 2025 [16] Q&A Session Summary Question: What is the go-forward strategy and opportunities for reopening wings at existing communities? - The main strategy is to grow performance through operations, with potential to add close to 500 units through identified wings at a cost of $125-$175 per unit [26][27] Question: Will external investments focus on renovations or acquisitions? - Renovations are expected to provide better risk-adjusted returns, but acquisitions are not the current focus [28][29] Question: What drove the Q4 margin improvement? - The improvement was a combination of reduced transition noise and core operational gains [30][31] Question: What are the trends for January and February? - January showed promising results in line with expectations, with rent escalators around 4%-6% [33][34] Question: How should NOI growth be expected over the coming quarters? - NOI growth is expected to be back half of the year weighted due to occupancy growth and rate increases [38][40] Question: What are the prospects for renewing or releasing medical office and life science assets? - There are promising prospects for re-leasing, particularly for a building in Fremont, California [44] Question: What implications does the momentum have on the dividend? - The board will consider the dividend, but there are no immediate priorities for addressing it [51]

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][16] - 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 [18] 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 recent Gateway acquisition [17] - Senior housing segment reported 12.6% same-store growth, with 16.7% growth in Q4, driven by favorable supply and demand fundamentals [18] Market Data and Key Metrics Changes - The Bay Area led all life science markets in Q4 2025 in absorption and leasing activity, with significant tenant demand [8] - The outpatient sector is benefiting from a shift in care delivery to lower-cost outpatient settings, supported by policy changes from CMS [5] Company Strategy and Development Direction - The company is focused on strengthening its portfolio through strategic acquisitions, including the Gateway acquisition and the formation of a pure-play senior housing REIT, Janus Living [10][21] - The merger with Physicians Realty Trust has created a strong platform in the outpatient sector, allowing for profitable internalization of property management [4][5] - The company plans to recycle capital through $1 billion or more in asset sales and recapitalizations in 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management noted an improvement in capital raising and M&A activity, indicating early signs of a recovery in the life science sector [6][20] - The company expects FFOs adjusted to range from $1.70 to $1.74 per share for 2026, with same-store NOI growth forecasted between -1% to +1% [19] - Management emphasized the importance of maintaining a strong balance sheet and disciplined capital allocation to pursue strategic investments [19] Other Important Information - The company has $360 million of additional relationship-driven acquisitions in its senior housing pipeline, expected to close in Q1 2026 [13] - The company filed a confidential S-11 with the SEC for the Janus Living IPO, with expectations to close the offering in the first half of 2026 [14] 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 concern about vacancy, 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, contingent 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 shift towards new leasing, and emphasized the importance of the current market conditions [36] Question: How will the lab occupancy losses impact 2026 FFO? - Management clarified that the impact is a combination of various factors, including occupancy losses and higher refinancing costs, with expectations for gradual recovery [41][42] Question: What is the strategy regarding refinancing activity? - Management stated that they will be opportunistic in accessing the market for refinancing, focusing on maturities ahead of them [58]

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 3.9% same-store growth and 91% total occupancy [3][16] - The lab segment ended the year with 1.5% same-store growth and total occupancy of 77%, impacted by the recent Gateway acquisition [17] - Senior housing segment reported 12.6% same-store growth, with 16.7% growth in Q4, driven by favorable supply and demand fundamentals [18] Market Data and Key Metrics Changes - The outpatient sector is benefiting from a shift in care delivery to lower-cost outpatient settings, supported by policy changes from CMS [4] - The Bay Area led all life science markets in Q4 2025 in absorption and leasing activity, with significant tenant demand [8] Company Strategy and Development Direction - The company is focused on strengthening its portfolio through strategic acquisitions, including the Gateway acquisition and the formation of a pure-play senior housing REIT, Janus Living [10][11] - The company plans to recycle capital through $1 billion or more in asset sales and recapitalizations in 2026 [21] - The company aims to leverage its strong market position and relationships to capture demand as the life science sector recovers [6] Management's Comments on Operating Environment and Future Outlook - Management noted an improvement in capital raising and M&A activity, indicating early signs of a recovery in the life science sector [5] - The company expects FFOs adjusted to range from $1.70 to $1.74 per share for 2026, with total same-store NOI growth forecasted between -1% to +1% [19] - Management highlighted the importance of maintaining a strong balance sheet and disciplined capital allocation to pursue strategic investments [19] Other Important Information - The company has $360 million of additional relationship-driven acquisitions in its senior housing pipeline, expected to close in Q1 2026 [12] - The company filed a confidential S-11 with the SEC for the Janus Living IPO, with expectations to close the offering in the first half of 2026 [13] 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 just taking on vacancy, and highlighted the strategic fit within their existing footprint [25][26] Question: What is the outlook for lab segment occupancy throughout the year? - Management indicated that total occupancy should improve by year-end 2026, contingent on continued positive trends in capital markets [28][30] Question: Can you provide details on the lab leasing activity under execution or LOI? - Management noted that the current pipeline is significantly improved compared to the previous year, with a shift towards new leasing [34][35] 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][42] Question: How is the company addressing the 2026 expirations for life science? - Management stated that a substantial majority of expirations are in South San Francisco, where they have strong tenant relationships, and they are optimistic about capturing renewals [61][62]

Core Viewpoint - The healthcare REIT sector, particularly senior housing property owners like Welltower and Ventas, is poised for significant growth as demographic trends shift and the impact of the pandemic recedes [1][2]. Group 1: Impact of COVID-19 - The coronavirus pandemic severely affected senior housing properties, leading to increased move-outs, low move-ins, and declining occupancy levels [3][5]. - Welltower and Ventas had to adapt by cutting dividends and focusing on tenant survival during the pandemic [3][5]. Group 2: Recovery and Growth Potential - As the world adjusts to living with COVID-19, the senior housing segment is expected to experience growth, with the population aged 80 and older projected to grow at a rate of 5% starting in 2026 [8]. - The construction of new senior housing units is at historically low levels, creating a supply-demand imbalance that is likely to benefit Welltower and Ventas [9]. Group 3: Financial Performance and Dividend Growth - The performance of SHOP assets in Welltower's and Ventas' portfolios is expected to enhance their financial results as industry performance improves [10]. - Both companies have resumed dividend growth, with share prices increasing since pandemic lows, indicating positive market sentiment [11][12].

Financial Data and Key Metrics Changes - The company reported normalized FFO per share of $0.37 and normalized AFFO per share of $0.38, representing a 6% improvement over the same period in 2024 [20][22] - 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 [20][22] - The net debt to adjusted EBITDA ratio was five times as of June 30, 2025, a decrease of 0.19 times from March 31, 2025 [24][26] Business Line Data and Key Metrics Changes - The managed senior housing portfolio contributed nearly 21% of total annualized cash NOI, with cash NOI for the quarter growing 17.1% year over year in the same store portfolio [14][18] - 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 [20][21] - The occupancy rate in the same store portfolio was 86% compared to 84.6% in 2024, with cash NOI growth expected to be in the low to mid-teens for the same store managed senior housing portfolio [16][24] 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% [9][12] - The Medicare market saw an upward revision from 2.8% to 3.2%, which is considered unusual but positive for the company [9][12] - The Canadian portfolio's RevPAR increased by 6.8% year over year, with occupancy above 90% for over five quarters [17][18] Company Strategy and Development Direction - The company aims to increase its SHOP (Senior Housing Operating Portfolio) from 20% to 30% by 2026, requiring approximately $1 billion in investments [11][12] - The focus is on acquiring well-performing newer senior housing communities that cater to the baby boomer generation, as the supply-demand equation remains constrained [15][18] - The company is not interested in building a loan book or engaging in complex joint venture structures, preferring straightforward traditional deals [36][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment pipeline, targeting $4.5 billion in investments for the year, with a strong deal flow expected to continue [11][70] - The company noted that the operational recovery in skilled nursing and senior housing has allowed for robust pricing, despite some challenges in the market [46][92] - Management remains optimistic about future occupancy and NOI growth, anticipating improvements as the transition from the holiday portfolio stabilizes [65][66] 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 [27][28] - The company has ample liquidity of approximately $1.2 billion, consisting of unrestricted cash and available borrowings [27][26] Q&A Session Summary Question: Investment guidance and pipeline - Management indicated confidence in reaching the $400 million to $500 million investment range for the year, depending on timing [30][31] Question: Same store SHOP NOI growth - Management noted that the same store SHOP NOI growth is running at the high end of expectations, with hopes for upside [38][40] Question: Skilled nursing opportunities - Management clarified that while pricing is not an issue, the focus is on finding quality assets in the right markets [32][34] Question: Holiday transition impact - Management explained that the transition of holiday assets has had an impact on occupancy and NOI, but they expect improvements moving forward [44][65] Question: Labor market conditions - Management reported wage increases of around 4% across both skilled nursing and senior housing portfolios, with no significant labor market issues identified [96][99] Question: Operator selection criteria - Management emphasized the importance of understanding operators' outcomes and their willingness to grow as key selection criteria for new operators [103][104]

Core Viewpoint - Real estate investment trusts (REITs) can provide significant dividend yields, with AGNC Investment and Healthpeak Properties being highlighted for their monthly dividends, but their sustainability and growth potential differ significantly [1]. Group 1: AGNC Investment - AGNC Investment is a mortgage REIT that invests in Agency MBS, which are protected against credit risk by government agencies, and it employs leverage to enhance returns, resulting in a high monthly dividend yield of 15.7% [3]. - The CEO noted that the outlook for agency MBS investments remains favorable, with potential returns in the low-20% range, which exceeds the company's total cost of capital of approximately 18% [4]. - However, AGNC has previously cut its dividend when returns fell below costs, indicating that it may not be the best option for investors seeking a highly sustainable income stream [5]. Group 2: Healthpeak Properties - Healthpeak Properties is a healthcare REIT with a diversified portfolio that includes outpatient medical, lab, and senior housing properties, providing stable cash flow with contractual annual rental increases [7]. - The REIT's adjusted funds from operations (FFO) have grown by 19% over the past three years, and it expects to generate between $1.81 and $1.87 per share of FFO this year, comfortably covering its $1.22-per-share dividend [9]. - Healthpeak has a strong balance sheet with $500 million to $1 billion available for new investments, and it recently raised its dividend payout by 2%, indicating a capacity for future dividend increases [10][12].

Financial Data and Key Metrics Changes - The normalized FFO per share for Q1 2025 was $0.35, up from $0.34 in Q1 2024, representing a year-over-year increase of 2.9% [13] - The normalized AFFO per share for Q1 2025 was $0.37, compared to $0.35 in Q1 2024, indicating a year-over-year increase of 5.7% [13] - Cash rental income from the triple net portfolio totaled $90 million for the quarter, up from $89 million in Q1 2024 [13] - Cash NOI from the managed senior housing portfolio increased to $24.1 million in Q1 2025 from $19.1 million in Q1 2024, a year-over-year increase of 26.3% [14] Business Line Data and Key Metrics Changes - Skilled nursing and triple net senior housing EBITDARM rent coverage reached 2.19 and 1.41, respectively, with behavioral health coverage at 3.77, marking the highest levels since year-end 2023 [5] - Skilled occupancy increased by 80 basis points sequentially, while the skilled mix improved by 10 basis points [6] - Triple net senior housing occupancy rose by 50 basis points sequentially [7] - The same store managed senior housing portfolio's revenue grew by 6.3% year-over-year, with occupancy increasing from 82.6% in Q1 2024 to 85.4% in Q1 2025 [10] Market Data and Key Metrics Changes - The domestic portfolio occupancy was 83%, gaining 340 basis points year-over-year, while the Canadian portfolio occupancy was 90.9%, adding 140 basis points [10] - RevPAR in the same store portfolio increased by 2.8% year-over-year, with Canadian RevPAR growing by 4.9% [10] - Cash NOI growth in US communities was 14.4% year-over-year, while Canadian communities saw a 24.7% increase [11] Company Strategy and Development Direction - The company is focusing on a busy deal pipeline primarily in senior housing, with over $200 million in awarded deals expected to close this quarter, surpassing the total for all of 2024 [7][8] - The strategy includes entering new relationships with proven operators and maintaining a selective approach to acquisitions [33][56] - The company aims to balance its portfolio between senior housing and skilled nursing, emphasizing the importance of operational recovery and predictable earnings [80][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued occupancy growth and potential Medicaid rate increases in the summer, which could enhance coverage [90] - The company remains cautious about the skilled nursing facility (SNF) market due to ongoing uncertainties regarding Medicaid reimbursement [70] - Management believes that the current operating environment will support improved coverage for the foreseeable future, despite potential challenges [90] Other Important Information - The company declared a quarterly dividend of $0.30 per share, representing a payout of 81% of the first quarter normalized AFFO per share [18] - The net debt to adjusted EBITDA ratio improved to 5.19 times as of March 31, 2025, down from 5.27 times at the end of 2024 [16] Q&A Session Summary Question: Update on skilled nursing facility sale - Management confirmed that the expected $50 million skilled nursing facility sale is still on track, although regulatory hurdles have delayed the process [20] Question: Trajectory of RevPOR and expense growth - Management indicated that as occupancy increases, pricing power is expected to improve, leading to potential revenue growth [22][23] Question: Guidance and deal flow - Management reiterated that current acquisitions are not included in guidance until closed, maintaining a conservative approach to projections [28][29] Question: Competition in the transaction market - Management noted a robust pipeline of deals, primarily in senior housing, with private equity firms as frequent sellers [34][37] Question: Genesis exposure and NOI - Management reported that the impact of Genesis on NOI is negligible, with no missed payments and improved operations since subleasing to a trusted operator [50] Question: SNF acquisition attractiveness - Management highlighted challenges in acquiring SNFs, particularly those with financial difficulties, making them less attractive for investment [68] Question: SHOP portfolio occupancy trends - Management expects occupancy to pick up in the second quarter, particularly in Canadian assets, as seasonal factors improve [72] Question: Interest in large portfolios - Management emphasized a commitment to maintaining a simple and predictable strategy, focusing on smaller, manageable deals rather than large portfolios [80][81]