Welltower (WELL) 9 Nov 172017 Q3 Earnings call transcript

Company Profile

Participants

Tim McHugh	VP, Finance and Investments
Tom DeRosa	CEO
Mercedes Kerr	EVP, Business and Relationship Management
Shankh Mitra	SVP, Finance and Investments
John Goodey	CFO
Justin Skiver	SVP, Underwriting
Matt McQueen	General Counsel
Joe Weisenburger	VP, Senior Housing
Chad Vanacore	Stifel
Mike Mueller	JP Morgan
John Kim	BMO Capital Markets
Vikram Malhotra	Morgan Stanley
Rich Anderson	Mizuho Securities
Daniel Bernstein	Capital One
Michael Carroll	RBC Capital Markets
Nick Yulico	UBS
Juan Sanabria	Bank of America
Tayo Okusanya	Jefferies
Jordan Sadler	KeyBanc Capital Markets
Eric Fleming	SunTrust
Michael Knott	Green Street Advisors

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the Third Quarter 2017 Welltower Earnings Conference Call. My name is Dorothy, and I will be your operator today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

Now, I would like to turn the call over to Tim McHugh, Vice President, Finance and Investments. Please go ahead, sir.

Tim McHugh

Dorothy. you, Thank and discuss everyone, for us joining Good third thank quarter to Welltower’s XXXX today morning, you results.

Management; EVP, Following my Tom and and Kerr, from John Goodey, prepared hear SVP, CFO. Relationship Investments; Business and brief introduction, DeRosa, you CEO; will Shankh Finance Mitra, remarks Mercedes

made Securities XXXX. forward-looking Before the statements let statements meaning you Litigation call of conference of that remind begin, this may Private Reform within Act we certain the me during be deemed

forward-looking any those statements based Although company’s time from be morning’s Welltower differ in believes those the can in could assurance time projected assumptions, to materially reasonable no attained. that in this company SEC. press to forward-looking projected are release, with the actual risks results filings the the on will results statements and cause from in Factors are give and results detailed

welltower.com. access you If the company’s receive this you did not at morning, copy of release it via press the may a website

to wanted Before call DeRosa, our quarter XXXX to highlights four handing regarding over point results. out third the Tom I

share; of quarter. turn EBITDA, $X.XX of I at we by the operating half-turn prior housing X.XXx range X.X% from a to leverage. in $X.XX share our reported housing call our on increasing FFO global for senior three per to $X.XX X%; reported to we finished to our third, of total normalized quarter, than Tom year will as the over for supported guidance to And performance, our growth reduction remarks second, result representing total in portfolio across by growth greater geographies; guidance further property driven in we year-over-year X.X% $X.XX with quarter allowing X.X% debt performance, year-over-year of same-store operating growth First, X.X% net and portfolio, all a senior to raise a the range portfolio continued same-store of that, us strong same-store year this the full second to are we guidance fourth, to per time the

Tom DeRosa

Tim. Thanks,

to by we strong care the concentrated highlighted, sector portfolio, categories, most real fact that from real health portfolio operating just markets. characterized no which a of report Welltower’s housing are and overall our in quarter metro resilience our growth, Tim which in our the portfolio with major have A-quality operating results REIT seniors the As The in in pleased properties the pool, estate industry performance the we registered supports largest X.X% estate appreciates premier seniors is is housing industry-leading X.X%.Keep same-store posting remains environment same-store different.While U.S. mind operating by industry. far same-store that XXX is in challenging, the

financially employ operators. deliver are by senior numbers seen I’ve centered quality Worth, to Donny significant, validated top-quality to from The the premier operators attract to and unique continued our analytics-focused hands-on data in quarter-to-quarter reliable. and statistically is Welltower operations approach Welltower our our and consistent operating we family. and Together, space housing outperformance, our So and continue the bench in this have built highest Edwards, next-generation Senior business based an operator premier I’m some announce Sagora industry. RIDEA results. McCaleb in of the that Bullock Fort resident-first of Living, partners assets Robert joins Bryan with and proud we outstanding a

their lease business incubate plan. used to For of this team triple the Sagora, exceptional net we a security and

Welltower better the employ the to new critical grow RIDEA the upside as estate. the and share to investment future venture of value Sagora aligns structure has Sagora and joint real mass, we Now and enhance achieved This in Sagora returns.

take bullish Many position dominates in independent of in housing private health about future the and see so the We of and our derisk deploy capital the future. care is further living, you we in real business opportunities our know, to we can the to this a significant operator Welltower also opportunity business Encore assisted taking advantage platform, estate, U.K., that quite pay enhance of solidifies environment, we and Encore, are U.K.-based of high-end welcomed the full quarter. living current every there. senior the so Welltower strategic

We have to our reducing strengthen continued to debt balance X.XXx leverage adjusted quarter. sheet, EBITDA this to net

to We look CapEx return. to reimbursement. continued government markets assets not work own noncore And while for continue our our appropriate to we tighten where ways to have expense with continue also does an our risk-adjusted growth, we belt. sell to assets to manage better partners we assets and in Further, investment limit offer exposure operating to subject

decline saw Toledo from efforts corporate while eye driving headquarters going in year. to expenses several campus, our us hand million below over mic to are our This of the an now position to and on $XXX us allow maintain of University in toward the we G&A for million of overall business which lowering from mind, these undertaking building Mercedes and the in Kerr. quarter, dollars shareholder initiatives other value to strength, you bucolic operating I’ll to by Keep tracking future. are with all annual $XXX year my we to growth our with forward. effectiveness a colleague donate Toledo, friend, this model, of the and the millions our per efficiency Along will headquarters improve

Mercedes Kerr

path organization’s disasters. to I operating minimize last forest and team would and describing by preparedness of it about many XXX team which first-hand residents, and tenants Hurricanes, quarter. maintenance Tom. Welltower’s risk, and resolve, people property like from saw and buildings. Welltower senior great what and to partners Well, property the can put management medical do put natural good in losses fires properties our start and protect outpatient We floods witnessed today communities we housing own at you, our thank these the

be There resulting impact from who clock storms. our from team worst the hesitation, an of property evacuated to operators quarter the the area dozens surveillance and earnings of had without communities. housing these Our our management in to during storm, ran around other seniors took residents was

viewed expense. as However, numbers business our cost the we as this in financial of an a included ordinary and doing are statements

for Welltower’s good our and keeping tenants operators’ and staff residents safe to grateful properties and order. are We in our our

Welltower’s third to Turning activities quarter. investment in the

with expand of continue moment. at yield X.X% existing to describe in $XXX partnerships relationships. a expected million million million of of of funded involved a the construction, We $XX XX% will X.X%. one, also investments and yield we I new added existing stabilized and acquired of our which $XXX We reported a an blended new that

blended X.X% loans $XX loan yield of funded in $XX also of with We exceptionally continually relationships returns off-market a our desirable a included with with sales, $X of payoffs risk. yield and business model $XX million opportunities yield million and property reduced million an Welltower’s X%. X.X%. repeat average of valuable. Dispositions makes million of a It of produce average combined at above

available we’re we source As we optimistic business new about our our transactions and for will partners, look specific the opportunities shareholders. to the with we study XXXX, that

In in we Encore UK, addition, some selectively, the of family the cycle. new also of third through do but our Care our in It investments which added of the something will in that bring Homes A operators consistently XXXX. relationships. is is this of to in we quarter example XXXX good

fruitful expect this with and quality relationship, investment coming expand we the significantly long which to of first operator beginning a the years. Our over marks

We and grow our team, with platform are excited are together. to pleased to innovative have joined this forces

willingness lead wherever by they events, tool management We new our participate, more hosted technology so Shankh the and will partners generation asset drive can the on work, on differentiator to help front, operating we and combined proprietary provide continue which is perform to possible supporting This strength recently will the operating portfolio great we to our efficiency color share results. drives our XX for one superior employee I Welltower’s where now our collaborative even turn Lastly, Mitra, reduce operator of performance. over that to better. presented who turnover. call companies Welltower with

Shankh Mitra

morning, will on Thank and now review and continuing an repositioning for different portfolio our update everyone. you, our I operating results the business, segments quarterly you with good of efforts. provide Mercedes,

to year-over-year. NOI remind our segment for stream grew entire Same-store the X%. top X to X.X% to as the year, X% net of payments portfolio. do NOI with not the senior basis the guidance its tracking and end X.X% but performance our we will increasing portfolio. portfolio. for reliable net The of coverage. back the our coverage Sagora continued SHO The despite increased X.X% in pleased very are X.X% triple you of which RIDEA I the portfolio, points on significant towards on joint housing same-store throughout by a X% for decline growth of than results NOI level portfolio secure grew We’re our remained for part overall Sagora outperformance our guidance removal primarily original which portfolio, portfolio year-over-year outlook net as the our the segment update that driven was a we converted are higher had to overall was the of triple venture decline optical triple This SHO

is worlds this While both in best often structuring triple debate net, combined focused RIDEA the of we on have industry versus relationship.

are are the downside RIDEA can net protections as interests the middle-market of while were structured a Alignment consistent assets part and earn portfolio. in triple important of most Newer markets restructuring. of best now pillars more venture, assets returns of and we joint reliable where two of

QX, value here. NOI portfolio Bryan’s QX. growth drive retention. medical in We’re rebounded significant from due tenant and in X.X% leasing strong as we to expected, and confident extremely Growth Donny ability to The reported outpatient high

investors why continued performance this growth demonstrates steady into institutional flowing Our are and class. asset

the which grew of portfolio, post-acute constitutes and for approximately our X.X% value, our NOI XX% of quarter. X% same-store at NOI Our

master defined portfolio. at and decline rent remind remained management by to I EBITDAR EBITDARM was like secure times Our skilled our portfolio as times are nursing as stream driven basis. coverage This to our that in fees subordinate well payments our LTAC would small on X.XX as in on everyone leases. X.XX

last is that impacted the occupancy Specifically focusing reimbursement of few have been and no it Genesis, by over skill materially on evolution model mix years. secret

However, majority we Genesis are encouraged sequential the really our of stabilization in a EBITDAR portfolio. of by

clinical confident a other capital be understand the Genesis-graded its the winner current new in value-driven parties We We that and is will are of suboptimal. structure Genesis because landscape superior abilities.

As event provide through program that a a you know, we’re will deleveraging disposition Genesis. for going substantial

selected largely negotiated the are economics We -- party parties, have and counter documentation. structure we and have towards working currently select the the and counter

and our this of today. from shareholders and on and upon last market the capital we that credit you the comment for deals, topic Genesis sustainable approximately our reduced $XX our will transaction, two accelerate of completion structure transactions. have further other Given a cannot retained status seen joint of successful escalators, meaningful interest, say to receive Genesis than venture while as partners Genesis share company deleveraging help in This our will which value gain, crystallizing put will of current rent these this million

As own we a and in Genesis. equity assets, loans real interest reminder, estate some

we outcome, as we’re deployed guarantee While ability to us execute confident any maximize as in last did that same our shareholders keep value to you our faith our total of the year cannot you hopeful in Genesis. capital and with the will

for and value We the rather in equation our grateful are solving our support new exposure for temptation maximizing to existing path of the fund shareholders encouraged attract -- equation of your short-term ones. only than

expense X.X% significantly quarter, year-over-year, highlight XX U.K., senior occupancy weaker above trends meaningful budget, of in Canada a Both X.X% resulted we pricing year-over-year. U.S. up Canada the the Our U.K. points of basis in but about favorable terms than budget. This and basis housing expected, were Occupancy trend, expectations our our relative slightly offset and and the up outperformed outperformance rate were to operating growth. better better rate power, portfolio strong by which significantly XX lower growth, is points, trends in with only

operating mentioned occupancy the are As premier and maximize partners to consistently we equation our before, rate revenue. optimizing

achieved very expenses this that proud while in they We’re have growth check. keeping

staffing cost operators right highs, this last labor relative balance excellent to the from in continues quarter QX efficient to between of delivery our moderate As and ‘XX. quarter X.X% X.X% versus the up a care peak X.X% strike our model, of

data fee. will to management initiative are insurance, approach long produce help been through continue in group believe superior services, consolidation food, analytics-driven our savings repurchasing professional management the asset and utilities other term. and and us expense results We in cost incentive realized Our

of better-than-portfolio for first drivers MSA northern California, The significant greater New in produced bounced this York California, Vancouver were and time quarter. handful Southern Toronto, London, the Seattle of quarters. result and has back growth

to outperformance in be challenging, significant sequentially for we independent quarter improving continuous it to of revenue different a growth versus England is living second have With New both respect assisted the in quarter. types, living though this and product row. NOI observed

assets. care of stickiness and We greater the in memory continue to assisted living by be residents encouraged

So our very post-acute of Goodey, that, With over efforts pleased in structuring our business. on segment of John? pass CFO. I’ll the it with overall, and disposition we’re portfolio, with the the innovative Sagora John operating performance our to progress

John Goodey

morning, It’s of with good third the and and Shankh, our the remainder pleasure my I’ll you, everyone. quarter, on highlights financial you Thank take year. for you to of provide our the guidance

once strength to and Our relationships strong platform shows of performance estate superior the again and QX our XXXX of capital quality financial operator as allocate deliver as well Welltower real results. the the

expense Growth to NOI We our our growth growth combined of of REVPOR saw results share. against in-quarter resilient with a sheet position overall investments control. per the operational medical of with housing backdrop. This quarter a operations, a performance us senior U.S. produce to aligned senior of challenged across and have liquidity delivered FFO outpatient X.X%, driven X.X% with of same-store continue growth, our of the efficiency. portfolio, businesses, $X.XX operating from $XXX report the which own strong was recording with operational and housing good solid same-store augmented was by improve result triple our maintain million, of enabled balance X.X%, operating The net same-store corporate normalized growth growth and NOI good growth, countries market our three highlight of

developments $XXX this costs, to million. seniors deliveries at we three housing to quarter’s million total addition of In bringing completed acquisitions, $XX year-to-date

additional We year at stabilized remainder conversions $XX yield approximately of of expect in X.X%. an a the the through million

disposition soon to $XXX XXXX for further overall. period see In with portfolio $X.X increase interest own our year-end and today blended X.X% of expectation our investor optimizing dispositions an to a continue million we through anticipate disposition corporate we of alignment slower our a and in to billion, in dispositions. efficiency derisk operational sectors, of thereafter. $X strong $XX we This was the realized, people billion our or will dispositions QX continue systems, guidance processes, We an million. represents of only with on Welltower a Although announced continues to targeted infrastructure. yield before for by for this, focus year physical an increase

was QX million, for reduction a G&A Our quarter the XX% XXXX. over $XX.X

have we cost the be Welltower’s to durably continue reduced the we further our year such, to and being systemically full lowered to initiatives million, and implement $XXX million As $XXX operations, $XXX our further below million. will of expectation below end bottom of improve this corporate Clearly, have already of our G&A we reduced range base to efficiency.

will Our quarter flexibility. maintain balance strength financial sheet remains in great $X.X shape, availability. to and $XXX continue ended the line of credit with of we balance and billion We and cash sheet million

Our our All to of X-year with strong to undepreciated of times over leverage significantly capitalization EBITDA metrics levels, book ratio adjusted coverage low debt charge X.XX while ago. have historically at XX.X%, improved debt net and fixed net times. X.XX ratio remain at remains metrics

its such Los growth. Angeles, as November Our drive to metro markets On us reinvest strong in XX, current my to XXXth $X.XX. opportunities development year. value-enhancing London pursue rest XXXX, Manhattan, of and flexibility This dividend with outlook core a liquidity in of portfolio our cash will pay to Welltower dividend X%. our affords of consecutive the approximately acquisitions, remarks significant for and will conclude yield the I represents

to are same-store X% housing’s year year-to-date, Given X% NOI guidance, we again, prior. X.X% senior our operation strong increasing to X.XX% to our full performance from

full NOI G&A $X.XX strength are $X.XX our This year based from increasing focus on for being also guidance of of to to $X.XX and XXXX timings. FFO growth, We share $X.XX per our our divestiture to same-store reprofiling prior. normalized the

acquisitions positive back of do before note I it many seeing dialogue. you revision, expected include hand forecast our year and closing of calendar not Tom. Tom his dispositions. in continuing we the will our that forward but person of include more As for and upward On do comments close the unannounced Thanks, to open usual, we look in to

Tom DeRosa

John. Thank you,

in you in Texas help well tell $XXX,XXX the in community We to as lives and proud and were fund to of hope Rico. questions, I’m approximately gets profoundly employees your Before support back number normal we their fires as donated hurricanes Florida, our and life that to a soon there the the by impacted take Welltower whose Foundation California. Puerto to relations that our operators

Dorothy, for the Now please line up questions. open

Operator

of comes Vanacore Instructions] the [Operator from Your with line first Chad question Stifel.

Chad Vanacore

Just picking triple conversion net up the Sagora from to RIDEA.

expect is converted this we You convert properties. them was to this to then on should And What the XX properties? over the plan And those or coverage remaining was in leases more RIDEA time? always of these then, opportunistic?

Mercedes Kerr

Mercedes. It’s Yes.

to you more talk me a little bit Sagora. about Let

mentioned, that properties in were this portfolio, process, you an XXXX, performing rather converted to relationship as net will, properties which growth. a somewhat and we portfolio, these was a this if properties, XX very started triple that is a of solid there Tom out of incubator outsized we what but So structure otherwise a from very as RIDEA, consistent stood of group had group

RIDEA those we were very that well fit decided in model. this ones so the And

As and want are venture for you have that we about try to, what in probably kind we know, I growth think joint we by properties picking performance. We that a outsized really structure. of own selective very opportunity manage the suppose, to volatility

by growth we in don’t have triple very made was all that structure cash which suitable the we the the for the of accounts, them. any thought with net It’s kind of -- cows for the because So Sagora rest portfolio, prospect. lease they event same are, but decision

RIDEA I to and mean our to respect kind contracts. respect that calling what tools, joint saw, of alignment, with You management with version X.X of by we’re venture, structuring

to tools found was us that of very designing us very in think instrumental new we Sagora of for forward. going are useful So some be these going sort

Chad Vanacore

Or they’re way? expectation, were growth stabilization? because outsized other process in in is some outperforming that the of these Mercedes,

Shankh Mitra

the are properties, of markets well the in footprint, in, best outperform have as and best they’re RIDEA the in submarkets in best Chad, the that we expect so in as this portfolio No, these we because demographics.

Tom DeRosa

Yes, Chad. It’s Tom.

regarding make RIDEA Let comment owning broader assets. me your around question our just you model We a business built asked.

we’ve we structure in because real see skills, of lower the For the maximize value Welltower, RIDEA as structure. a complement to built that estate risk a full technology of tools,

away us we of is a estate where real the great -- is is this or will lease continue a to That transition eventually looking triple that where RIDEA expect I’m operators opportunity -- relationship very And to grow at and operator see company is much you to in transition. in example, future. from example and us likely may see we into net Sagora here friend, should this we a the what a So for sitting -- format this affect transition the to move an you’ll responsible operators structure. see incubate Joe Weisenburger, is That’s the and RIDEA more don’t business for structure of see does, look that. helping this such this my who to could you this to -- you’ll

Chad Vanacore

about coming outperformed here fundamentals XXXX? think just SHO the into Do have thinking expect bottomed then, the pretty more of you in They’ve pressures And industry. your should ‘XX? Or fundamentals. much fourth quarter we

Shankh Mitra

It’s too early XXXX. to comment about

we know, the know flu what seasons exactly don’t will look you As like.

we through have budgets with a obviously, operator every the now receiving are we our We operators. go process one of huge and, that

remain months, XXXX Tom a see, that impact, peers our next what means optimistic can continue comment to and was tell of if you systems mentioned. that you the you the what outperform But about think well it’s we XXXX. also that because processes if asset as for peak. Because early we But you is, right. we’ll are where and So deliveries as the obviously, very you supply I about will really on industry too -- also and to XX think management

this property better our impact than absolutely but and up that -- in -- and we industry will hold believe our will the properties portfolio So than operation, will we our property, peers. our better

Chad Vanacore

XXXX assumptions rate about occupancy fourth quarter yet, take your what and guidance? can’t we XXXX, are if in baked So

Shankh Mitra

far guidance give quarterly the of we on and SHO not optimistic rest rates do year pretty portfolio but as is as about our concerned. are occupancies, We

Chad Vanacore

me. for So one more

disposition to you $X.X in the billion raised you billion. On from are it $X asset classes guidance, that increase? expecting What

Shankh Mitra

senior housing, the portfolio. in That triple net

Operator

Your Morgan. of Mike next the with JP question comes Mueller line from

Mike Mueller

the I assets that you point of Sagora of see at cap that point? just this fits rate at use guess, how acquisition to a cap Can looking mix? off where kind as talk SHO X.X%. into And starting rates about you the for

Justin Skiver

this is Skiver, of Justin So SVP Underwriting.

factors to points. a speaking, give trading slight seniors Class And But cap be generally on we class minus a B points. about housing is rates. plus Class delta housing small, many a at see too And B little we Just basis involved, XX there a at A or color obviously, cap, and but and spread properties. X% seniors that is basis discount A to by being trading as A, Class probably larger there view XX between should

Mercedes Kerr

described that. build That’s this we of And compared to with together us terrific build I and have what the at assets to upside of I want the great lot to Sagora to to to that we this a that beauty relationship be add potential consider take a fact the allowed able the market. price were trust transaction, is before, structure and

Mike Mueller

that they? Got acquired how X.X%? are new for were they? it. And the And are The how occupied ones

Justin Skiver

about are to here three think, an with that, on at the years make are in old, occupancy average, important replacement we I -- cost. the XXs. is below Yes, acquiring these three And point low

So acquisition a in this Sagora. see we with tremendous value upside making

Shankh Mitra

the bought that about assets three new And Justin talking specifically Texas. is in we

Mike Mueller

And okay. then Yes, me. question for just last

sort on development? Just of update any the Manhattan

Mercedes Kerr

you continue tell to make progress. that we can I Yes.

supply and as on assumptions be side validated, a well lack cost the see I demand. happening both as what with think our terms continue we in of of to

good reported on we last I underway already this think I The progress. demolition and underway. quarter, is the feel construction, so a So about very with

our just and validated. like So continue progress, said, is to I things assumption

Mike Mueller

Okay.

when do is demolition see of occurring. the And it So you coming ground? out

Mercedes Kerr

that indicating. late -- XXXX we that so is have XXXX, timeline, same the the on timeline still early We’re been or

Operator

BMO from line with of Markets. the John comes question Kim Capital next Your

John Kim

on program your magnitude you through referenced percentage Genesis exposure maybe Genesis assets. that the sell? what as sale went far disposition comment think, you of to the looking I Can as of the Shankh, you’re

Shankh Mitra

said, I is now. quantum pretty sort to John, that Yes, as can mean very I you it’s on we’ll a much we’re set be think our situation, what can right? comment go right will on appreciate live you retained well tell as I as with. this hard interest we that who the of

set We’re the on the it interest. and But on want I structure comment it’s live and a economics situation, to don’t retained just very because anymore.

So -- but we in soon. hope that we’ll about be able particular more to this details lot talk to situation you a

John Kim

is from dispositions separate billion this $X for this But year? the of

Shankh Mitra

Yes.

John Kim

okay. referenced also that Right, place? credit. does when start figure? annual $XX the you And rent then taking that million Is And an

Shankh Mitra

the the close That will at place take deal. of

So when deals get we when close, rent credit. the that’s the

John Kim

it figure? or annual Is an a onetime

Shankh Mitra

onetime. It’s a

Operator

comes line next the from Vikram Malhotra Morgan question Stanley. of Your with

Vikram Malhotra

And mentioned you’ve now I expense Shankh, side, moving give on pretty know, parts? there. comp of two sort expense the you’ve bit us quarters the had details more On strong the of controls. you a Can control

just and are Just this is a there here? from sort rate? is details, sustainable some good run to more -- go more of how Or this control? Is

Shankh Mitra

not labor cost good I growth we wanted last to would Look, have I that, as So few consider a rate. run quarters. obviously. mention for just heightened X.X%

-- the are also cost but happened what late -- of up the large year-over-year XXXX we of all -- comparison like talked and in As There’s we deliveries ‘XX, about have went law you sort up. the when the been you low. also know, was very labor numbers XXXX know, [indiscernible], right? lining So --

numbers extraordinary. growth year-over-year So was

cost that to Now where elevated we’re seen numbers, will of not the labor before. see we stabilized have getting remain more the you but extent a will to

I see, lot item, lawsuit. focused mean that we’re you driving expense doing utilities, that’s program of other very as a retrofit here The a can there’s lot. line

know You we GPO. have a

We’re focusing lot on taxes. a our property

it’s asset is decrease. bucket, focused this quarter, seen, management the highly, other buckets, a significant where And expense group then, that. highly all have we the other on Our

professional As and professional I and consultants, -- accountants bringing focus cetera. quarter, There’s there. a the management decrease there’s last fees you, et on lawyers significant down huge fees, told

have workers the significant decrease across comp well area, the workers comp it’s We as seen in so area a board. insurance the in

the everything you’re We’re corporate. to from about business. retool different hearing trying and our much looking what at Not

We’re cannot down, the the everything trying to What not of business say, nature. think these guarantee savings model are continue in cost you "Okay, but a that is we forward?" I going onetime will to is? sustainable where lot come

Vikram Malhotra

to That’s the the Or question, And any I that? Genesis think to wanted that and helpful. an just year-end, well? are I $X clarify, close over as that that to is includes dispositions, Okay. on by Genesis billion you sales above earlier expected

Shankh Mitra

is over and above Genesis that.

Vikram Malhotra

update one maybe today? then of you last sort just of anything for on proceedings Any some And legal Okay. Any on quarter? where are economics? me. on update last the And that outlined we

Tom DeRosa

I’m do? what going you know our for you. Vik, McQueen, me Let to have General Counsel, Matt answer that question

Matt McQueen

Brinker, in his his connection Scott know, with he Welltower XXXX, a against breached separation X, alleging us the of at HCP that the period. non-compete that which announcement filed Mr. you that was with start had lawsuit as would Vik, disclosed January it on Sure. was Brinker agreement end

this the to that pleased report of reached we’ve we’re recently So lawsuit. settlement

XXXX, but confidential, is year terms before can the under Form for our the the our X Chief say the XX, of be March the settlement, permitted fiscal we which terms not December begin I of Officer Mr. Investment Brinker ending date around of on as work in that are will Some XXXX. of or that XX-K HCP to issue

Tom DeRosa

and our of we to me accept we approach to company, everything litigation, anything let than you protect the shareholder. what want add will but what principle we is matter at That’s a how that. don’t this always first that said, that we Matt say as further anything including beyond about can do Welltower, should I less not do everything

Operator

Your question Rich Anderson the line Securities. from next Mizuho of with comes

Rich Anderson

rent you apologize. -- Genesis’ it, you said give Did -- the today? Shankh, rent coverage the did you coverage if give I EBITDAR

Shankh Mitra

didn’t. we No,

that disclosed find will You in our supplemental. it’s

Rich Anderson

Okay. searching too but and or point? much that of for sense at change it I information -- was a this sales that’ll how I post is give didn’t can you

Shankh Mitra

No, it’s not.

is about market this forward. X.X said that I the think before times I coverage going as well

times will it be forward. coverage X.X So going to reset

Rich Anderson

Okay. maybe Bigger Tom. for picture,

for invested you have guys the call. cited you interest in couple in of Can You comment the about Genesis that in same make Brookdale? an reasons staying earlier

Mercedes Kerr

me little a well. talk bit Obviously, to out Well, let numbers their you as they’ve about Brookdale. put

one operators about having be trouble. everyone, them we’re I our so behooves think do And and for would And always it the for well. that’s good to any any it concerned industry of

triple that the portfolio well. own But worried we’re we’re do with X.XX our actually said So hopeful average actually Their will above net not that, Welltower at having them. about times. is EBITDAR they coverage

in We type strategic alternatives. in performance also portfolio, of about with around Brookdale protections have and our we’re always some possible discussions and

We good just Tom have to with like collaborative them. we’re relationship said, interests. protect always shareholders’ looking But our a

every operators So in the to our need excellent those have we we’re step thirds so take two knowing arise. if take, comfort our and state, ever and with building, of is were actually, in and Brookdale in one it always either who of California regions we Washington a over that in or portfolio alternatives, looking in could at CON -- we if ever or

Tom DeRosa

operating We’ve has been this, from always financial just one always Brookdale operating and is heard transaction. more our partner. partners. Brookdale not of perspective, my you’ve looked at a Rich, So as an never us of say That

fact Look, the view their issues was around, they their But, Our that beforehand. Brookdale We the some never. referring for hope the they industry. say of because largely not are of from are fact the operators. to the Brookdale. arose of business smaller can affect I entire one acquired turn exposure Brookdale is, Never operators cheering our we

us, situation of structure come that So very They’re they in lease we with, always have RIDEA for a longer grow different term. been. grow ones that into and structure out net will triple

So looking growth there. likely, opportunities never But, for say we’re never. again, not

Rich Anderson

describe -- if everything or relationship, the to fair wanting you see how the you you change, today. I’m into see somebody a Brookdale today? It maybe this ultimately could statement? but So you stayed using or RIDEA as it part if as operator that would is it Is an most move same exit today, anybody ultimately is ways

Tom DeRosa

ways of real to a to real Well, to do turned net estate. be to manage we time is, good this. Mercedes we we of in triple the Brookdale might lease have being. Brookdale’s we fact And as we good estate, If in will keep for continue performance around, the lots happy value what the markets. structure said, have The optimize can

who a at optionality. the they has real Brookdale closely are structured us Welltower anyone that best leases leases, think are of around of lots because the I knows portfolio which gives looked estate, good

continuing best we’re our best I in we we with of Brookdale in discussions be value and to whatever say, interest is in maximize been Brookdale for years, That’s thing the the with have can Rich. So discussions shareholders. option will --

Rich Anderson

the Through that there? items do release UK looking today, firm, is several coincidental to related you, investing, to expand a just press Or timing? as

John Goodey

may. hat we yes, my in in expand I’ll John. ongoing one We is, number I think to that continue if take on, the with... UK answer prior It’s a of the I And construction have projects

Rich Anderson

Expand John, at just disproportionately you’re today? more interrupt. than where let me

John Goodey

relative of to do, of X% Well, there. I our think hard portfolio we’re portfolio of is law quite the overall numbers, that’s sort because to

in looking equation both a got growth some great absolutely know, operating UK to as overcome. we’ve assets. grow a are work proportion we’ve now. answer compared it I leverage we to think But performance in there a is as But of As more -- we’ve multiplication you through to the yes, is, operational great Mathematically, conversion you we The UK? that difficult U.S. got of put partners I are obviously, the right we’re that, and construction into think So the a overall, continue to had with. to relatively -- doing can grow to dollars see, projects we

a Sunrise forward, also back partners We’re going our with and like Signature. existing partner, grow but as new to bringing to Encore Avery, significantly very hope we who development

Rich Anderson

$XX And one is what the million noncapitalizable for then of last me, transaction costs, that?

John Goodey

essentially, we any U.S. hat those transaction XXX-XX-XX-XX, from on, I cannot to Sagora GAAP, if extra proceeds that under I’ll you’re so on owned we capitalize means very the onto things, because didn’t sheet. that ASC buildings buy interested or Well, balance allows our real new as them, for the in take such us well guess. And estate, we with already one my new

just We’re bought clean off that not can would’ve first clear is truism. one number on transaction, balance and we make, as which been allowed to. those had have If those assets. been on a The GAAP our would the to I We’d statement had assets, -- have attractive a RIDEA would literally only accounting. nonevent. That’d capitalized very have a sheet. been and rate there because been It’s Welltower, the of

Tim McHugh

that our intending the fourth of a I was to option in kept in a into know, and question, That is most next billion the Tim. $XXX quarter. Genesis it a of the the he guidance, I the current guidance opening from was after a still comments to the that $X there, there stay Before what to scope sell from nominal is that just question goes purchase Shankh, I our in And just Genesis $XXX million In from for disposition want going amount, described was clarify. clarify kept to intention year. an in option, dispositions dollar We’ve as his This option in expired. we market we intending million think, to earlier. have to beyond you that. communicate something

our there Genesis right in for dispositions So now. are guidance

Operator

comes question of Bernstein next with One. Daniel from Your the Capital line

Daniel Bernstein

industry just I how obviously, your with anything in but you about of operating, the Without given are housing into operating, fundamentals and out, will couple of seniors years? much recover thinking specifics, be should comments the in senior being on housing earlier that don’t we portfolio I NOI terms Tom’s give want Sagora, platform then you RIDEA that in should And the to built now? to where read and increase a I want how go that think be around the going in from about in from XXXX, forward? ahead, business you you down housing think wanted how will seniors

Tom DeRosa

around the business to we’ve and that strategic and taking future, are we markets answer and in senior model in our start opportunity been that up see off to the I’ll optimistic industry Well, not about lighten to this operators the operators that we’re markets saying, by housing do and very strategic. we invest behind

the strategy core years, and not our We all are Metro in a core those about it And two markets. in U.K. dominate have to intention they’re Canada We it in that demographics, secret no the believe reverse. is U.S., our market going the starting to favor is and

Shankh Mitra

want to I Dan, add. And

and you nowhere will -- at map the seven you If grows map is population years, in -- In today category XX the and growth population numbers you’ll XX the look about demographics at if even look old. the the as see that law, last for X.X%. XX-plus-years you a

of the then growth absorption absorption That the growing what product, percent. living memory extremely at And talked and itself, five you’ll see bullish just its the how look care population you add about assisted you the population If is tells growth. the significantly you plus the Tom we’re about, products, industry. above

Daniel Bernstein

I should your now become larger a expect XX% or it’s... the generally to so part And of RIDEA Okay. from portfolio

Shankh Mitra

Yes.

Daniel Bernstein

Is that? Okay. a there top of limit

Tom DeRosa

Hard to say.

Daniel Bernstein

you. corner to Not

Shankh Mitra

are equation-driven We to trying not opportunity that driven, necessarily sell for. we’re

Tom DeRosa

that really if I opportunity right mean, net there with the was down. phenomenal wouldn’t triple lease look, strong turn markets the or operator, some in that had right coverage we

to keeping the lease to Dan, us you all seen triple lease. a means people, this results. net say, quarter-over-quarter, from if and willing that, It’s you estate for our it And you’re But this our and air. top wanted it’s not a this and category we’re doesn’t the right and don’t in seen, own is, on quarter, maximizing keep magic. of infrastructure structure. we’ve our we have get work particularly opportunistic built real. have triple the those return And of that do real But results open. not the around alongside riskier made a because But that operators, up it’s It sleeves hearing that in derive operating that’s to investments, net up. or and clearly, we’re So we out We model system. RIDEA the we because systems our should we’ve hard, restructure. returns than don’t roll That if it’s you’ve you as we as come real investment able a and the what drives our have us, make options

Daniel Bernstein

And in, regarding say, lease appreciate you can that. have coverages? any One I more couple that options two years? next years, exercised Brookdale. in question their be talk No. they quick trend the of the do about purchase Could can

Mercedes Kerr

I respect of bit. we’ve trends, sequentially, a With to seen stabilize sort them think,

our portfolio, as capable probably a in We’re which of their performance, maintaining they’ve is looking lot very some pressures occupancy the you’re emblematic seeing I of at on of specifically, which is and portfolio cost. think In corporate what’s been their -- like. on that going

a So been for them. helpful that’s very tool

remain. they’re might stable to that I And relatively out options some At or And they to respect so purchase be old that from future. still options, purchase left there two X sequentially, of with think the feel structures end are in leases us. the

Operator

Your next line Michael of RBC the Carroll question Markets. comes from with Capital

Michael Carroll

you did Sagora, to compensation to you the operating provided assets tenants how XX into regard structure? those With disclose much the moved who

John Goodey

No.

that. disclosed haven’t We

Michael Carroll

discuss you it? Can

John Goodey

present and operating negotiations. lease net from triple it’s step net But I as the and [ph] the that’s of XXX the income to It income believe look points there this if I overall you rate lease, not the the excess of quality market give revised can -- buy disclosable. you. the to said, part that’s I better take were coverage net is I than probably the guidance a a think the I assets was of basis operator. from this quality in transaction. back think additional I mean with a of XX triple if the at sort contractual you the the good of -- overall

Mercedes Kerr

staying they’re the side. on both -- I venture in -- And and thing add we on as in the the the the RIDEA reinvested -- could saying partners structure joint lease us. They’re of the other that with is, side

a whatever it have is they reinvested so And that in they’ve of basically book received proceeds.

Michael Carroll

desire have or ownership assets that any guys And they much them remaining do guess too? is structure I And there in Okay. an into of from the JV? how stake transition then you the to

Mercedes Kerr

continue earlier as have add new just I think some the We added Justin to about portfolio, talked we to portfolio. -- and this assets assets that we to

over indeed transform yes, time, into So that RIDEA. be there might properties

Joe Weisenburger

and into entity, the entity, reinvesting XX% OpCo has Sagora a $XX.X transaction. clarity, in operating XX% and give the in they’re the To owner Yes. ownership a million

it So assets, the an of alignment strong average portfolio, which profile. the a occupancy in growth of range, the we’ve was RIDEA think this fit of And this X% has older We strong older transaction strong a because well it -- trend had portfolio, incentives. portfolio and XX age while as transformative, it’s XX% years. triple net as XX% has a than has occupancy an

a think transaction was us it great for the for we So of and both worlds provide to best Sagora.

Tom DeRosa

was Weisenburger Joe that relationship. the who Sagora manages And

John Goodey

see thing one of grow to would format those market faster grows The grow be John. have we a in market lease it’s triple will faster market, us systematically is, different within the that generally. actually assets, those then categories it And mirroring it more Sagora. I to way to RIDEA net you love structuring the If the guess, with generally I partner profile. than RIDEA We’ve and and net say grow triple market together do that had than would those with it going profile actually that’ll the assets the the with partnership. lease. to Michael, and we stay -- be, market. see think a to the They it’s a of different in market, portfolio one of I you’ve of put If of seen segment we in

Michael Carroll

great. Okay,

REITs major now? bigger question, those mean real going maybe estate how a systems And partnering conversations question. guess Just closer are one health organizations is to with any the Tom. I for your with to their last footprint? I right grow

Tom DeRosa

asking they now year. the may be for And end something we between that. Yes, and thanks stay are. Yes, of tuned, the discussing

Mercedes Kerr

terms with And value proposition. has in you very if very here made asked REITs, a and just which closer know. Welltower we of different. Building partnering relationships a I Yes, to have clear, ours, been they’re to be specific of is want to that Welltower, very, very as can you but they’re kind you really to deliver of closer partnering know with specific progress the focus is what very

Tom DeRosa

And are it’s next of Investor the and put strategy about how a an expect you’ll the in likely hear I you and opportunity to being that first quarter would lot Day tell year, we have planning this practice. into

Operator

from Your line the Nick of next comes Yulico from UBS. question

Nick Yulico

Just going Genesis. back to

You mentioned rent the million credit. $XX

rent about a us versus rent the that, think looks for it So to cut. like current you XX% about it’s is receive, the way this

So assets here sell coverage those you’re the assets order in is, doing trying you’re to market create level JV? in rent for or outright what a to

Shankh Mitra

and agreeing is credit. numbers, but not rent below idea the X.X times, exact times that market to I’m then to Yes. if X.X coverage the that’s your Genesis the have have you give you

or venture that At forward, sale, going right? upon happen it’s transaction. owner joint only sustainable the so And This coverage. have a whether will rent a would

Nick Yulico

in the of then senior operating expenses. And Right. your you housing segment, gave same-store the breakdown

bit, this low. expenses a of fee lower why due talked have is management that the number other item reason decline this to but Is your little of a that about bulk year-to-date all You for you expenses. any down the It’s paying line it you’re operators? are That like year-to-date. causing, looks

Shankh Mitra

I But all will you think if I down. that earlier. at other, So utilities question see look you is before answered

see You’ll is food raw down.

our is you’ll NIM see So down.

tax see is property down. You’ll

all which is the -- bucket, we the significant seeing as and as is fees. has are fees, as fees, bucket. a debt decrease bucket. management right? I’m and lawyers accountants a well XXX% that bad the the as the So well you’re have not comp, It quarter, consultants, sure in other all insurance, This all But coming mentioned, expenses seen of incentive I particular comp as the catch-all, area what professional where other the workers it’s in professional that marketing, sort

Nick Yulico

almost X lower you’re any million paying number there operators? that is management fee Okay. year-over-year. Is down But that

Shankh Mitra

answered I utilities down. look you before earlier. I So all question at But is other, will if think see that you

food You’ll see is raw down.

down. our you’ll NIM So see is

You’ll see property tax is down.

a particular decrease is and the and bucket. fees, accountants which not marketing, a XXX% right? as the coming the the is It as consultants, lawyers significant in professional well bucket where fees. management the But comp seen mentioned, have as professional bucket. we insurance, expenses the in that area all debt This fees, other that it’s well workers bad I’m incentive as seeing quarter, So the has all sure of comp, sort other you’re -- catch-all, I what has are -- all as

Nick Yulico

there? to so but trying mean case, lower down that -- is number operators does that’s is that $X understand that this issue the again, if you’re that number fee so but, to benefit if that’s next I’m Is because whether And that year? just paying year, a any -- onetime -- reverse -- I that almost year-over-year. there management the of any million

Shankh Mitra

because a There’s we’ll particular more that fees back, lower portfolio. pay incentive underperformance higher an to If management incentive than be bounces happy fee. of management a portfolio of there,

Nick Yulico

what’s lower amount incentive dollar of And the the fee?

Shankh Mitra

to can -- relationship, Nick, want rest is -- not This specific any this of is about relative but significant any talk the a expenses. operator imagine, you is specific obviously, don’t to it or as I

Nick Yulico

Yes, to any helpful I’m year the out trying just if operator. this asking expenses. be about figure benefit know to onetime it’s I’m to a what your not same-store It’d level is.

Shankh Mitra

that about I way could perform, topline it be If it if will operator comes number. have performing much understand onetime lower the doesn’t to it Yes, totally this The -- the it, that the event. back. so from We’ll event, is rather question. specific operator back, don’t recurring think a we have be come to how

Tom DeRosa

talking there not can about will a consistent -- So in see in, other comes relatively But if we’re be a in out, words, it’s stays good And number. you that outcome. it if it it’s in, big again.

Operator

comes of Bank Juan line Sanabria of question from Your next the with America.

Juan Sanabria

is question for Goodey. first John this Maybe

housing trailing kind help to U.S. you us When just inventory. make of maybe as senior that growth What And is percentage previously frame challenging? commented expect does was more a that do could that You’ve of hoping supply? the I you supply Canadian about the peak? ‘XX

John Goodey

Yes.

think is in So it’s say new to Canada. fair on that I building going there

in And reliable existing so the the you and it U.S. feels This is supply. it We’re Canada, of thing. of can you What we with is the market-by-market we is, outcome where it our some way versus a not a imbalanced. have equivalent for new-build in what very segment see, can Unfortunately have a though, responsible do much show basic for NIC, I partners. tell good very we a do our for enough trends don’t about near real-time supplement we points all talk -- the gathering do

data at of you when new the imbalanced. gross demand look and looks So to roughly it gross supply, be historical

core with bit undersupplied little urban to to a growth, and there more easier Again, a relative that like urban market the the focusing supply. have up Vancouver we’re And again, slow our we demand market, capacities is be that the in or builds of you But little we so and we average more give unfortunately, than data people the do a U.S. of to building don’t the the we’re NIC less bit Canada suburban exposed, with analysis in bit and industry. equivalent here the believe, concentrated in U.S., which are in our we again others. strategy with aligning end you in markets, where So seems country you’re build, seems Toronto seeing and new the suburban to like places be the markets to deep

Shankh Mitra

overall slightly about NOI better is U.S. Canada but think is I NOI, you if Juan, perspective, year-to-date actually mean performance, not that of revenues. On Canada a And and terms better U.S. much is in different.

I question impacting, we if supply your speak. So say when numbers? Canadian will it as is is, impact will

sort or and there next in some in the be Canada, through of like numbers. assume of So you have There will that’s I don’t our sort flowing disproportionate seen impact year else, is everywhere supply after. year

John Goodey

right these it supply. Calgary and mostly But British as is because an Vancouver, Québec, in pretty is Ontario, quite shape. now, market-by-market. of Yes, tough are new Columbia, example, good

Chartwell so that’s, a -- core where the core is core going to capital in markets. new Sumach with to our believe activities, new deploy Park are the demand urban be Again, demand in like be where urban markets. to Canada, we for it’ll our strategy, concentrating back we comes is Regent great again, it these market-by-market. it So and new-build in -- we’re That’s The there in builds, we strongly in

Juan Sanabria

What from rates. speak again, you That’s in-place the seeing that? guys And housing are we could versus seniors to leases? on increases was be the perspective U.S. Brookdale on helpful. leasing should on I talked year-over-year a the And side how just thinking the on about the lease you RIDEA new about then, new for to, declines hoping

If you -- between that a did your U.S. can how you sense us renewals? is difference new portfolio, give and of

Shankh Mitra

the of we lease don’t well, we huge think like I as to portfolio a renewals. difference see Remember, half as actually the the and through sort anniversary. tons rest sort between as X, mentioned year new of obviously, a January of see well market, It goes depends we you as average, huge as difference. news quarter don’t have but you see a our portfolio We difference. on, on the the last of of huge don’t on

Juan Sanabria

your bumps new you is rent what increase old? to existing to The equal versus the on get the

Shankh Mitra

same. very the portfolio different It’s Relatively a markets. large in

-- XXX you -- in England, that In you Some relatively huge mean mean markets, and such you of the blend the you that opposite. see the in, that that see as same. you see properties when all about, weakness in in Southern where I that. just have reverse, your see strong California, New portfolio then right? demand, you you as Tom U.S. as talked the see you But I have you markets markets well the weakness, see

John Goodey

about only length stay. in think you When that this, of couple see on of the the their average residents increases stay average math means of a

different a, in of very with that a number rate a the dynamics. a often rate dramatically see numbers but it’s not Shankh to have market’s turnover hard a not -- different be as fraction them occupancy difference, new significantly increases of resident the long maybe then resident because very -- it’s you in-place, and said, different. the It’s the the dynamic leases cycle So of of small

Juan Sanabria

that one additive just you year. me. to in And same-store necessarily? I next quick Vintage the the of one last Or overall will the added, Do Great. for growth see pool? think, be not numbers

Shankh Mitra

growth not quarter added pool in Vintage to it’ll growth, talking overall adding additive the points And Actually, -- the quarter. to the for least we’re to actually. to take all that assets pool, basis specifically XX Vintage. be the that will about in the will hit be fourth be will fourth not new at the

what’s -- you you ‘XX, going year, the do of to I to yet just give to next a about give talk on not to sense budget but so yet We’re going I’m wanted on. we’re

Juan Sanabria

the Can us that sense you of a occupancy where give portfolio for is?

Shankh Mitra

with can have now. I it I right you. me follow up don’t with it

Mercedes Kerr

we mind an by we brought and added switching we markets three the first of feel is which Juan, operators a about We repositioning value saw them in assets we the the we that of the talk -- think way keep also opportunity in very I when on. this investment. and that made lot in opportunity. about, from of remark work good so some the in require made opportunities CapEx put This particularly operator, And where in. then the we

but as right is doing tremendous actually was we’re we a saw of kind portfolio There had planned. create and what so to and things undertaking that on be we going the was that working this we execution in needed that happen actually CapEx we now nature. So value to that to of of everything knew and way, is needed on. is restaffing always an that. But element that

Operator

Your Jefferies. the of Tayo next from line comes Okusanya with question

Tayo Okusanya

My XX to seen XX portfolio really around is of in strong your growth, SHO the months, for is you’ve portfolio. peers. the some some in just Again, really question your past very rent not but

Just have push you it well hard them fixed How ability that of income. occupancy retired. on that at take without this many of to them as residents your lot of you to trying still you kind A understand again, rent are when -- a much? impacting look are really have as is

Shankh Mitra

differently. of would bit it, little a I So characterize Tayo, course,

down right? XXX seeing are We point. on basis Occupancy impact the occupancy, is

It occupancy. versus need-driven rates optimizing of a question a is it So business. is

memory there’s a senior It’s need-driven housing portfolio business. our As huge is you operating living the part know, that of care. a

we they willing occupancy We’re provider usually quality for mean what everybody grandparents. is pay for the that consider why best care are parents their the you’re No. the reputation, eyeing to seeing that markets where to care decline. That’s their does are with of people And pay? and willing highest or the best

confident a of game the it’s optimizing rate as you as know, occupancy. -- well So that, we’re

But revenue, we’ll feel to that. trying to this we attractive we terms and a we where if more getting maximize by is and We’re do come point traction rate, get occupancy more know, to maximize analytics run numbers, revenue, our and we revenue. a data a -- one not and as we fundamentally part optimize trying driven SHO which is we’re the and of by

what we’ll market us gives So see next year.

Justin Skiver

these And Tayo, XX you XX that of I’d Skiver. just this is is to in length have stay to add to average the like building that months. remember Justin to that,

years. So increases these as time. are people X It’s residents new over. upon it’s getting of are a increases for though to set Then XX amount turning not

Tom DeRosa

A that to that. the add just me I call let -- also out and Tayo, point started with.

We properties have that in XXX portfolio.

up should the to other numbers being to -- that are better have reported. understand line You portfolios

think consistent. that sample that’s important We I happening have when you understand to very what’s in the a want large is industry. And

Tayo Okusanya

Are qualifying in Okay. more to payments the of that residents are you’re your when having contribute live other kind towards you finding to dependents now? facilities or their children

Shankh Mitra

will. that think income. in matter mean but they I asset. think fact of fixed communities said that terms locations, you also sort when wealth I if they about the significant I -- our fixed income, on is, in mostly are has they Obviously, of, wealth have have you extremely think you The of well, changed. live don’t

really or we about So seen haven’t changes. heard much

Mercedes Kerr

focus found cities. life might there’s to our that maybe that lot we report centers. reasons ago these is and strategy, you’ve know the what the don’t urban not reason of if for about rates That demand at population corroborates the long a aging I core on Tayo, that centers commissioned into double-digit we the alone, is for our a that more all that engaging the they’re we the having this seen It That’s in why or proposition rate attracting, people other and pricing feel is of that in have people why to are value rates sort so reasons pay have for, really consistent. whatever on about willing hear our we why survey, slippage like others to out do. lock or talking don’t you desirability,

John Goodey

you thing we about I tried you obviously, of this, supplement, we off than that only analytics larger give say our a demographic of indicators, we think, where have at look much -- X we number we Tayo, talk quality our Page if capital. as I run is, the our invest would scorecard to

because as have see from they’ll where generally Or go is the monetizing accumulated As of income, the wealth that significantly children, need average residence, to if you invariably senior into there, care. someone there. areas and that means primarily you their can of they that wealth country, this then primary environment capital be the for wealth will through for more wealth there than support we’re do trying is come

sighting the into So locations. wealth, most high it’s high-income our for again, part, capital generally, we’re

Operator

Jordan from Markets. next Sadler Your question comes with KeyBanc of the line Capital

Jordan Sadler

I First, will Genesis abatement receive at be just clarify, I’m sorry. rent to XX million close million? wanted will that XX the or

Shankh Mitra

$XX million.

Jordan Sadler

Plus XX reduction a the correct? there’ll be okay. existing million, in escalators,

Shankh Mitra

Yes.

Just we’ll total transaction billion like replicate structure. have done, seen we the down $X.X to X%, went in and X.X% you just have it that from

Jordan Sadler

should is so think forward, will to then by on how there obviously, just we should here And you’ve about, dispositions incremental head to incremental investment expect we south? if the Genesis. further they’re laid low, transaction offset if not whether as very these activity, which dispositions be close or be look some out thinking to from I’m perfect. about we remains leverage trying dispositions your That’s leverage, or plus, and potential

John Goodey

is John. one. that This thanks. Yes, I’ll take

our as right, advantage we script, turn off Look, we clearly, and sheet, So that shareholder very we we refine significantly strengthened or I have to assets at our capitalized drive of redeploy say growth new over our take you’re of, capital. to my of And X.X I realize dispose acquisitions capital, look will to to year remain mean well so. or continually provide earnings deleveraged to and value to developments. right, capital nearly that, balance last you’re in look structure

I in that we area and sort going navigate the of right now, forward. we’ll Code very are think of ZIP we’re sort where around comfortable

say to but redeploy changes, through of major have we do in of see we no the the dispositions we sort that majority funds So significant the would look we’ll that ongoing. coming that

Jordan Sadler

that -- other housing be seeing point safe opportunities that at housing in are investments particular? around are of in senior or you’re operating, interest And to there pretty to is Or will greater continue focused segments? this it the seniors new say and

Tom DeRosa

as What space. senior medical space housing we’re in as the seeing well opportunities both outpatient in the

to So sectors. robust we’re in -- right now, pipeline we of seem to both evaluate have a fairly opportunities

Jordan Sadler

what your range? medical outpatient or for business the rate appetite cap mid-X% is the in X% And

Tom DeRosa

they interested markets We are there’s with ability strategic assets in are outpatient experienced are create they to us strategic, in assets are these that either processes for bring or which for health associated assets are that that us upside. if means our to to management systems that medical are very

look. we how that’s So

looking upside grow rate no low participate strategic assets outpatient not you’ve seen of there’s portfolio why that auctions to value number to medical in us or by acquiring us. not We’re just the a date. cap where That’s for

Operator

comes Your next the line question of Fleming Eric from with SunTrust.

Eric Fleming

medical office I actually comment you made. on wanted to just follow-up that

So in there is across operating strategic is can you’ve Johns office it sites? have kind about -- leverage those you -- at facilities what that of more you’re your post-acute talking -- where medical and Hopkins relationship, markets you already areas to there, going with the hinted terms where is looking housing add to that of senior -- into

Tom DeRosa

That get strategy. you is -- our

us senior major likely that and metro see outpatient likely is medical markets will assets, we try where strategy where is built have -- around we see you’ll assets. Our housing and accumulate

Operator

Michael Knott with Street comes Your the Advisors. final from of question line Green

Michael Knott

an more or Is happens talked quickly migration about Or more be bit little going something there that something housing long earlier front? that is the that on from was of take a will opportunistic endeavor still to RIDEA, to quite triple senior that that eventual is net more a time? systemic

Shankh Mitra

to time. dependent will and at opportunistic, a asset be It is on going it be one

convert company they’re there that think are be this be to as So I assets get looking And growth, forward. take RIDEA convert describe, going opportunity portfolio. found But triple we depends John because of think from to away the the we net we to no RIDEA. housing likely market-plus we’ll subpool don’t triple a the portfolio. in our that said, to likely call effort we to Sagora want submarket forward at guys the If on, they’re that portfolio into they senior assets in. all in our in leases It net transaction, RIDEA as tremendous you growth they’re will market, grow if of is to a are going with -- least have we inside the

by Asset by asset, market. operator by operator, market

Tom DeRosa

When it makes sense.

Shankh Mitra

it sense. When makes

Michael Knott

where last one land And planned Are after okay. the willing portfolio NOI on these any then give skilled Right, your to will nursing, you guidance post-acute, from dispositions? me. percentage of

Shankh Mitra

Stay tuned.

transactions. I As can that this hope conversation But you said, live appreciate, have we’ll comment I it’s on hard about topic Michael, soon. robust very as to a

Michael Knott

in ‘XX okay. but be dispositions you or Sure, one, this round to apply further And that do maybe same that plan SNF will then, current expect later finalized? after there’ll is this comment

Shankh Mitra

will probably A this operators, there, in -- mentioned, we class, portfolio and focused we management are on different and to the at types, our if it’s on sort we’re Tom optimizing to going portfolios. always have can that very asset as of we asset more a forward. but that with size different So focused stabilized of we’ll get trying our portfolio get of believe product we opportunistic different soon, from hit disposition, level

Operator

for your disconnect. conference We to in Welltower the appreciate you earnings ask dialing Thank call. and you participation that

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