WELL - Earnings call transcript Q3 2018

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Operator

Good morning, ladies and gentlemen, and welcome to the Third Quarter 2018 Welltower Earnings Conference Call. My name is Regina, and I will be your operator today. At this time, all participants will are in a listen-only mode.

We will be facilitating a question and answer session towards the end of this conference. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

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

Tim McHugh

results. Welltower's Thank you, joining quarter prepared discuss for Konkoli, Tom CIO; CFO. DeRosa, Real thank and will CEO; XXXX remarks third Shankh from Regina. Good Goodey, us Estate morning, today Services; everyone, John Today, hear we Keith Mitra, you SVP to and

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

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

If it the you with will did not over you hand quarter. welltower.com. his on the the to that, the website via may And I remarks call of at release, press for company's Tom receive a copy access

Thomas DeRosa

good pleased financial and we by in I Tim, results that morning. this report operating the metrics morning. you Thanks, improvement to and am

are quality $XX.XX. of in been low-end average ability and Shankh Welltower’s our and Continued with the our a connects, our even and enabled care cash from housing, In the $X.XX our operator dispositions ATM restructurings. quarters we talking and sources. raised to These enabling is sites strategy despite to differentiates improve that at to data and performance assets but across given share DRIP financially $X.XX Welltower of XXXX, flow. operating drive capital $X.XX for $X.XX under through price will raise quarter or in results $X.XX delivery aligned points proposition a positive sector which the million the the assets has housing ambulatory the aligned raise shown post-acute our number by supply healthcare of and all earnings strategy from our that part of encouraged in is confidence weighted delever reinvest embraced of analytics at broader NOI and capabilities at being us the in will growth to us and systems programs we challenging REIT go to us our hundreds greater the guidance have health to by and this are performance in in growth. to basis of relative initiatives about better accretively a our senior the our environment. our We’ve strong segments business relationships senior’s of at $XXX well-articulated to labor detail and and cycle. A with $X.XX drive XXXX new from proprietary a and positive operating midpoint FFO truly knowledge-based fact by $X.XX we dominant, equity value other high-end

of completed into developments investments XX approximately real long-term over. and non-strategic of assets, accretive the attract that not in X over legacy last operator is and real seeing Our estate has or misaligned sold senior a relationships enabled $X capital us months. have a and restructured sector next-generation to we as high-quality deployed billion In billion year-to-date operators little of strategy is on assets year estate housing the has Welltower

about Keith portfolio and of you of well Health Konkoli new our St. including medical of results Joseph have shareholder more and $X.X hope we and the expansion will John System decisions value population. Hopkins our these addition ProMedica to investments particularly people, cost $X.X Goodey to In through this the in delivery made quarter the view Provident investments we that to will positioned transitions lower an you take I Johns joint health venture as you as investments. announced that with as the nearly healthcare care growing has Health. will that having aging of sites today, drive billion of best closed technology quarter, will office tell improve agree Welltower in third made tough outcomes, billion the

at Investor Day December be on will St. York this You in more about held the Hotel Regis to hearing our City X. at be New

over Now, to your Shankh.

Shankh Mitra

value results and will trends, one, business, We operating and Thank I deployed seasonality cycle, housing now execute unique path two, to excited the provide here. creation and venture you for will review capital and ability I remain this capabilities our Medical on QX you, of four we segment. that encouraged to data are our our call, given care especially the everyone. topics. In for at three details our triple we managed medical occupancy senior further ATM good trends. in additional quarterly y Office four told about the Number joint in Tom, point morning which results in SHO confident our the and return you detail towards science are net

driven points as to U.S. more in able XX significantly, growth We some This September. XX overall growth revenue have which you X.X%. to points since am QX points occupancy of strong of on XXX a is quarter. gap of by of holding in markets is time that we exceptional basis to last month from the QX few basis up not XXX seen growth occupancy This is I allows quality the on the Our basis it’s seasons typical to sequential points strength XX of QX of gap speaks And seen been points year-over-year delighted saw the major rate basis occupancy close perhaps in deliveries to real basis the by you the inform have QX QX we XXXX which and X.X% because the year-over-year XXX QX declines XXXX effectively we over only seasonal portfolio heightened first last where up points went X.X% actually of To estate basis accelerated operating sequential moving QX had partners. context our XXXX basis. best absorbed our more summer demand. for and of XXXX. had a of since seasonal over provide for

is cyclical of continue see the to some longer-term focus you So, one clearly, senior many product an trend. provide portfolio said that this trends. cycle but will volatility conclusion unique housing by A leases diversified be on does will and second other net caution operators, But Senior our extremely equity and with leases. would as numbers, and from you converted structure. operating housing draw asked into encouraged to diversification to we our are I that, would replicate. not even RIDEA geographies, of quarter across we remotely Having set like I will benefits the others discuss Many is triple any business. whether how business cannot any any survive topic lease

and Our has answer been estate second. first real that and structure and remains operators

we structure Sally agreed triple both can in money. lease We that shareholder inform lease are our has continue context, delighted and to exists Brookdale eight operators when to well-aligned that a make to you Welltower renew that master years. by In net for the believe next

net was to with at fund Welltower increases Brookdale CapEx the has some our cash remains at fund rent after rent, trending signed The amount to triple our as thereafter. last market return biggest the on in million responsible mentioned I of at which of exposure to lease terms in CapEx entire the $XX this point lease contractual opportunity X/X/XX the business. quarter a As place contractual that. existing

We a improve if as and who markets. at the to often XXXX. the dealt platform cash majority lot a return participate their ability away like to equity potential. a before G&A many drive it That long-term pundits large which maturities ticket has continue Welltower this their cyclically leases a would EBITDA their an out bank. terms multi more occupancy. low They has A a through the renewal REIT in EBITDAR. house lease. economy. profitability see anyone partners scale like with go recession and eliminates Have the wouldn’t – consider sounds even not business makes that consider with coming from EBITDARM will lease flow keys the keys that rhetoric any money of from do want in today another operating their we and operators necessarily to topic This predicted cyclically to of not all a cyclical for of out their business implications to me in up and you coverage least Well I walk flows return in major brings their unique relative that they think operator will great to foregoes until that lows low This will Brookdale, material as over that and of effectively performance many to years the this cash from recovery. their the right give low business broader negative

are alternative have asset those and We every plans plans to for happy need be. if execute on

higher topic, tools want great the HCR that asset we have plan believe as previously. any also QX. Sally of unless tool we now with We financial expects portfolio sets such the provide on than about structuring this can definitely To senior they started triple to that demonstrated the There growth prospect. will alignments transaction the right The update as we synergies However, are HCR and we our next us. reset, from have we is ManorCare and housing long-term available the process of SHO drove in quarter, is expected closing which or we are growth in target. a interest only ProMedica of The put will has not leadership rent integration excited other example. to superior net subordination other leverage are

topic our more and about Randy Oostra You will at Investor directly Cavanaugh from on this Day X. December Steve hear

and CapEx throughout occupancy the skilled portfolio encouraged are by already the pictures program executed. is our industry even Arden in Court We shoots improving the green nursing before

in and of many and like other mentioned higher that the not but much assets cap made off-market accretive very these to of extraordinary portfolios to believe create you into medical especially after shareholders we perhaps long-term highlight will pleased anticipated. for very we than we value transaction really deploy capital transaction are to the are we billion office haircut long We some agreement what recent us, has trends business that our of rates. medical and given XX% $X.X to are much pricing significantly sense confident a additional more it And office to from hospitals, QX. in commend continue about as XX% this We as before include we economic even in of in that transactions QX to lastly, any

been disciplined the have efforts ones, all We our capital future. relationships will we build and additional opportunities new existing to bring expand which to in and invested believe deploy near

happy extremely a of age the high-quality ten office have Keith on are approximately principals properties high-quality $XXX million more medical you relationship with an healthcare systems portfolio under Class contract for a details with A the we had provide of average We on with major longstanding years. who XX affiliated will very portfolio.

the by encouraged in While be the transaction total return think enhanced will already by significantly rate going development we identified we and this opportunities. of the are IRR cap very

development Hopkins acquisition of system. to sites Howard the under other a we the In on campus health care transaction inform hospital, the high-quality of three building you bridge we addition the delighted have have land John office new County announced agreement complementary to currently and on of that with develop also Hopkins, signed to we are with John medical

we value. you last we squarely and cash flow are you two on our path trust the capture to us this level We next that positioned years, all are NAV heard demonstrated how to actions of have the Over from the quarter growth. for

Outpatient Keith With we sound the Head we it on the our are Keith? all encouraged I over cannot creation fundamentals outlook is business. Medical of peer Konkoli, getting for to value that that, While better. pass will

Keith Konkoli

is of some using to part getting have our me work led of our the June continuum of the consultant the opportunity. the to facets do. able management, built the as be Duke, spent happy the growth to intrigued Thank fortunate Shankh that tenants recently have mission, team any I systems we of you, evaluate best-in-class to At systems in to the development, medical Duke sales have as and in joined last and challenge fantastic any business. minutes built to to have I’ve affiliated I report XX office providers next the this was tackle company estate with by the I at to everyone. providers solutions. spending much, Welltower’s know health best-in-class the took provide to am to portfolio that felt I with the business few including a team. days health good morning and first after system It delivery Having the healthcare we spend across forward-thinking medical can and But to was that with to asset service I all partner right teams high-quality I portfolio, in costs improve and Naturally, future. with systems creative time appreciate Welltower care successful reduce on important a opportunity country. very XX Realty. a to years best the outpatient our large oversaw nearly XXX very and opportunity real Duke, we very and my exit leasing, be to portfolio, property we have join of drive Welltower over I that years. XXXX.

truly We that sidelines way realistic we by opportunity. our value approach, exciting the activity the client opportunities. right, one a taking balances I operate and find the very understands accretive build on creation. estate believe with embedded portfolio and disciplined how portfolio a things team is stepping pricing expectations our our a sitting Our portfolio the most in about real to high-quality became of as satisfaction

Shankh leading purposeful with in the change health activity financially recent environment. some the in been in medical that systems be space. will strong partnering healthcare of very of drivers outpatient highlighted have the our evolving We

and I health to talking our these to we’ve Shankh outstanding institutions and existing needs that the patient for their meeting transactions we meet the and all and third-party new recent populations. Welltower systems recently in also network the I adding closing square excited of the acquisition we mentioned about Specifically, a particularly he power of the also Hopkins to care health making look working portfolio. we acquisition introduces impending at Shankh the real systems building to development forward lastly, most look history and this, signed partnering partners calls relationship Welltower’s our exploration it strengthens pleasure Duke into of of an to on systems our XXX,XXX be agreement Hopkins care builds help of financially focused shortly. In health forward their will our of building in hospital’s with some of sites Hopkins implement John and thinking I of platform and the in of and hold. represents the Day. with this future the – all population. portfolio and Hospital the with successful XX partners These a development partnerships aging alternative existing health I several strong have properties nation, County that strategy in whom relationships clinical estate the are am to Realty General the to the our one mentioned of need mentioned for as positions. nation’s platform to to multiple on fourth affiliated believe leading the a Howard note of of time available announced you John segment. full had our distinguished these parallel, them. with our growing in a feet Class using This precursor about growth A John And is over at demonstrates more my that This are Investor how with forward the partnership would capital. public

pace health the dialogue is continue Our to increasing. discussions the advance best U.S. systems with and of

to look who highlights to and quarter. the the connections operators such third like Our that, partners sectors help us of over real as adjacent broader best-in-class post-acute. through estate us John strategy housing seniors it the financial make turn Goodey to I’d and take facilitate in their to will With with

John Goodey

third and the XXXX. morning Thank of with everyone. financial quarter our to my pleasure good highlights you you, It’s Keith, provide

just income QX balance it been quality management sheet. my for have from or and investing, be portfolio whether quarter and you heard a Welltower our very active successful colleagues, As has improving

was blended joint $X.X we in and active aggregate, In at quarter completed. invested rate billion of This particularly the ventures QX investments acquisitions and in X.X%.

payouts. $X dispositions divested income over in portfolio our stability in increase with also We that into often period, refined would service the towards such the comments In loan strong growth. developed future have over high-quality the and as development we and million in to and premium million in placed three continued London York, last at blended recycled assets have these, as of of invested we projects million $XXX to totaling Toronto. five $XX this stabilized the of New on and years, expand assets time quality yield we $XX Alongside of best-in-class line, million completed as and like $XX LA, we same of I capital X.X%. received million earnings locations that financially partners Tom’s

the have would this These over In reduced earnings significantly every our an on levels. excellence our also to quarter judiciously million, addition, colleagues that G&A prior a our organization us day. reduction efforts improve thank to our year work loan we to Welltower report continues from from enabled portfolio. I like and operational $XX.X cost as for continued

the was operations, QX grew our NOI our and Shankh, All X.X% Senior by growth share. the per we FFO heard quarter we grew was year segments post-acute are results overall are report business strong housing Senior same-store recent growth at long-term encouraged of NOI to both growth housing medical normalized as $X.X of from guidance. X.X% able same-store for outpatient occupancy midpoint X.X% at XXXX Today, you slightly a and third above Our quarter, net by with X.X%. full triple the QX. in improvements.

include as or Welltower capital modifications, As sheet and the balance in do the quarter loan items not on also very was repayment lease numbers. past, Last fees for we active such fronts. one-off our normalized in

sheet Our strong with our and capacity credit closing of QX of billion was position primary available under $X.X balance XXXX $XXX facility. unsecured million with cash equivalents

were metrics above slightly trends. leverage Our

will average a off prior significantly would and and successfully again our term ten credit closed generally time, credit $X.X aligned acquisition tenants billion returning unsecured coming way. with in X.X%, an of and of and in thirty our number across yield we with new the notes the dispositions strategy long-term of pricing both or seen In a line expected of billion I However, two placed reduce reiterate across In balance to QCP. XX.X on our XXXX, over $X.X a Welltower year that sees facility. managing an facility July, maturity average August quarter to plan and levels blended improved leverage sheet of five, years our senior aggregate unsecured demonstrating durable this

$XXX an per the for during our price ATM would addition, through guidance like average programs million year In $XX.XX QX, and to share. turn full of increase at we raised our to now I DRIP XXXX.

full We based share updated, prior. $X.XX operational current increasing share $X.XX expectations are the year This to performance upon is a per range to yield $X.XX $X.XX normalized to $X.X same-store NOI billion overall X.X% disposition from adjusted $X.X at from FFO range remaining to of guidance on our XXXX. X% and XXXX the overall blended with and at proceeds reduction in billion approximately X% anticipated expected per

$X.XX. XXXth hand dividend will our X.X%. guidance pay yield represents This of back all On its comments. final XX, includes Tom? XXXX. I approximately that, for Welltower XXXX, to only in it dispositions includes With usual, acquisitions current November of announced anticipated cash consecutive the As Tom and

Thomas DeRosa

John. Thanks,

at the XXXX John, strategic heard housing you’ve and manage Keith as operating of business. initiated we senior from broad of overhaul us So, prepared the that to the current well start Shankh, dynamics

So, now. bumping a we are cycle along bottom the of

earnings strategic comfort. been to well-positioned identify you fact growth as that level we cycle Our positive able the new for year-to-date in turns. that The we’ve investments and improvement metrics QX demonstrates should operating billion approximately financial results, are further an $X of in accretive give some

the up line questions. for Regina, Now, please open

Operator

come of Evercore ISI. [Operator Instructions] the line go question from Sakwa Our with ahead. Please first will Steve

Stephen Sakwa

picture? turns, sort supply everybody. operating A, guess, I detail quarter know, look this maybe And picking I on look just how the just of Thanks, senior pull I changed the good that your at do to from little some am of and us know changing this then, up, but morning don’t wanted you see on the and growth of quarter last platform touch as of housing impacted a bit trying if a of out business when expectations it’s quarter. Tim, it give sounds or sort could I bit how you the I more Shankh on same-store dynamics sort pull kind like to you maybe little

Shankh Mitra

Sure.

obviously, let’s questions have So, one talk talk a we’ll three at time. about, so Steve, and you

pull the change. First

specific If you we operators. look at, about don’t talk

we guys those and decline hurt call, a driving Tim same-store the have for strong some have the I that another there you for if change, would point into you getting is have you think earnings. restructured that wait I that actually policy you details, to operator go very to changed an to wait out We pulls thus come implication the walked through quarter’s we on if there our Without how last is in. five think same-store. assets specific to that you have quarters relationship

of second I SHO basis The the XXX was you of that at the XX. look total of occupancy the a same-store at cash look see increase growth is while Page if occupancy would will business, point only out X and point you supplemental, points there

strength you billion tells broad have we obviously based So it’s for it’s a seen and dollar us. a that

a for more going This and same-store. not to been you very broad probably see there the will doesn’t topic And where supplemental really overall shop relative of the – and you the X has this that x Page am is point five business I suited question. back fact, in to trying call. change is increase look out to going you our to supply but So, XXXX, and the

Day a supply. coming very we how Investor you topic. can have – a discussion that a detailed science granular. market up. is have want supply We just tell tell have I very is not data will we about this It diverse you particular to very, team We we see

We of also only other is the adjusted called have the but drive number learning drive of is metric detail a supplies, build time co-variants different composition not algorithms units which it. machine ACU on which time, exponential of and based into products,

very have Property We of the how new view of shock impacts factor. specific have us. we supply many

will details We outlook. walk hearing that that are you at you Investor are through about Day. at the our we those same-store encouraged all to say Needless the

we We encouraged have Day. and are bottom we we industry. broader for by on any definitely saying that necessarily and calling Investor are topic discussion this about not a are our the outlook a But in will

Operator

the Please come with go of ahead. will from question line of Sanabria America. next Juan Our Bank

Juan Sanabria

Hi, for a question just Tom. maybe broader

of and not highlighted out softer your different REITs difference? kind there. You that key REIT the you you as if Do yourself what’s versus see consider altogether –

Thomas DeRosa

very very I the makes healthcare that’s is REIT real industry and selection not heavy status. we heavy. us estate REIT a company, delivery a tax consider to are tax company it’s for it because sense platform property elect a an

like business with assets. in in operating types. managing think and more much different that a structure. invest have in healthcare fund than is in We our other But, I sectors because REITs much real invest other eyeing estate assets I So, common they model in don’t property

medical of that business. housing industry, our involved remind senior operations it But, office our intimately it’s an not be the it business, are whether be this tax you whether in is I business, REIT selection. a We would

Juan Sanabria

quarter are scheduled you close Thank $XXX rate in for portfolio? it. the just on what including FFO acquisitions, MOB clarification. those the was cap million are that that on that then Got to you And fourth guidance, the acquisitions the and

Thomas DeRosa

on should I’ll on impact the we touch there no can it actual impact transaction. of a aspect is comment the on from There numbers. them no material consider the from and end the at of modeling having year acquisitions occurring the FFO Shankh XX and standpoint

Shankh Mitra

we told that buyer rate, not the cap On you a several seller. are cap cap times have or we rate a rate

we total are We about am this that confidentiality to total that return that particular we’ll that we and in and sense will buyer cap we deal we I portfolio. with we X% X% IRR unlevered the going because it and any talk unlevered said But do agreement than have rate not real closed hit the seller. return to makes believe tell the buy not estate hasn’t you less seller. IRR believe

Juan Sanabria

Thank you.

Operator

Your will Vikram with line Please Stanley. next of question come ahead. from go the Morgan Malhotra

Vikram Malhotra

the And on for just is Thanks Shankh, taking of Any of market X% rent? a Sally any Can return? that’s there lease. like sort just and you the cut was you restructuring clarify to it, to sort question. – the clarify from if the to bump? that when said CapEx a

Shankh Mitra

So, now Brookdale, is right in a period. quiet

all – to walk have the and call the am to and that. once they – mentioned we I through those. on to very want wouldn’t get period opposite I is don’t it’s So happy talk partner are specifics hard quiet for their us want about through very to Brookdale just into you

on. is restructuring comments much you’ve spot I think your Brookdale other seen market that in pretty return with

in low. You but be might too zip the you are code,

can economics In thorough makes even question is all we have of they rent RIDEA, escalator changed mentioned, Brookdale net can second it it’s I I triple and the The but the quiet make the the we mentioned happy what but focus a to questions. to goes is is, Brookdale or the Welltower The we already level, is. it can, want on where even we is call. on healthy want same I The that money. relationship slightly money. any focus whole actually grab to operator about at as through to that in our you are any that driving discussion money is, make just answer and talk higher, is Once don’t not

as sitting which are good money buildings, more make us. Brookdale is as and will occupancy always they money under we for these lease Here significantly typically makes low they think out we

Vikram Malhotra

call to side, the if higher. side. just Okay, turn But to XXXX clarify encouraging. want on are a were maybe great. on focus the And the I or I expense senior comps certainly not to very tough housing it’s then know results it’s the

like, and a you the sort I into you parts Like, be through expenses other there are last labor year-over-year assuming structure a pull to going expenses levers year, XXXX? in easier, X.X% can expenses but continues think the think that us just of increase to you had can walk about control today of you get how other headwind?

Shankh Mitra

you expense year, QX very, the be touch Obviously, what headwind. not a comp. a continues this of on that that had is of actually it’s I low increase glad year QX very NOI the am labor had a very just of but expense a observation. this back X.X% of of expenses, XXXX, a a we to absolutely So, we know also and factor right growth last factor so comp. that happened

on think So comments that expenses, we think the but we some headwind how about Mercedes will continues. add

Mercedes Kerr

about in the that to expense We have both to initiatives we Welltower our savings have at operators bring talked undertaken work. to try

pop which and something those down, now right labor-intensive in Some seniors industries impacting is is that such business. a certainly housing of of It’s is efforts I some up mind our are naturally think a being labor. lot

to very efficiencies our focused trying bring are So, and on help we scale. our to them to with operators trying

Shankh Mitra

of want the numbers. San flowing went that’s just have I point, $XX that understand through one wage to add to this part been big increases Francisco flowing our through to numbers. minimum Just year, you the the

So, on, and will hit next of from more will $XX summer. you here LA increase. inflation see

encouraged the been to this, numbers $XX the say, long-term. but We as years. a four, looking our for do So are driven next are managing flowing more medium I term. feel lot five in you at obviously, we minimum will of said, flow long-term, the But growth about we have you the have wage through a near

Vikram Malhotra

Okay, great. Thank you.

Operator

Our of Valiquette the question comes with next go from line Steven Barclays. Please ahead.

Steven Valiquette

good Congrats on morning Thanks, results. everyone. the

Thomas DeRosa

Hey, Steve.

Steven Valiquette

development in wasn’t And was It plans and markets activity senior industry things. during I when the I your this There announcement contemplated the various years. in headlines from already grand of next of thinking development some scheme just draw huge on every sort U.S. billion But urban additional your particular an your of the about over attention. a to focus the in curious, in guess, was housing am centers number quarter that the in the in about several seems perspective, $X

thoughts being Thanks. your of that’s kind the developments how get the – to want of Just sort around made? and competitor

Thomas DeRosa

Steve. Thanks,

clearly I been been articulating validates few few for a years have a thesis that we’ve think and announcement related, that a for at years.

think I in next-generation major product senior areas. is a metro there demand for living of

dealt needs see tell the any of I’ve Manhattan you to no to of You New product the personally. have Island York, next-gen be densely of populated for are to take up that aging brought it’s like of market made upper-end say, are senior population. room is sufficient housing many this that But is would product. going this York city today There like of the the lots which a I in there today. property meet a of don’t with really myself I and an it market. options being a population. am villages on New I And

of a into we early The first Day, end chance and the are have were you open in what of go be that actually the on viable option It’s going to will to coming out building. our Investor XXXX ground. XXXX

So, bring plans a would to we of the asset in number metro that say into have that centers. major I summary, of type Steve,

tuned. stay So,

Steven Valiquette

Okay, that’s helpful color. Thanks.

Operator

go comes line James. question ahead. next Please the Jonathan Your Hughes of Raymond from with

Jonathan Hughes

about Thanks senior but you deals marketed as the past excited replacement good compared those skip in time. it will questions housing asking deals, and are cost to address for saying, I maybe recall out the talk like know December. required or you Shankh, I are getting But buying there you’ll I more IRR shop sounds your this summer, assets. don’t Hey, What senior focus X% on threshold? or where maybe analysis, priced? housing being potential deals your you about could cap sellers rates, morning.

Shankh Mitra

we different as our So with look, agnostic, risk-adjusted perspective, mentioned, from different products level of obviously, returns. I product requires are

market have I fast the So, number. very, for said required housing don’t some is you senior you that as about market. the And very a robust We we is minimum capital. want return X% X% think hard investing a talk that, a and

a lot in. seeing are core are priced. of Lot participants being We of coming are capital

populated very the they prices are think risk the very of you So obviously, if are about high. the and option, densely

those our quarter our look at supplemental, after you numbers you not these in If quarter, after and we sources options. on investment give quarter are we

we almost option what and can’t to disciplined our rates investment existing we not levels in based a very capital from We pretty are of XX% But much allocated. have strategy. were cap those see done very We they densely the We relationship are XXX% make acquisition in and relationships. pens but sense. we populated

we will there. it when make So, will be sense,

Mercedes Kerr

Shankh is, in is Shankh, cap that would time, so, and that have sitting that one up comment that I B housing A for the we interested more cap really and we’ve rates that and I are happy really Class Mercedes generally senior in to A about rates see distinction assets think Class a pronounced capital distinction today. and be of the the portfolio. what terms it on as quality Yes, this which in But, talked add assets I is and makes we to – very between think that first starting perhaps real Class as in is Welltower Kerr wasn’t

Jonathan Hughes

acuity, all And on seeing it. shop? leasing maybe last one What’s new you then possible. asked adjusting on and low-single-digit overall expiring it’s stable know new trend know, Thanks. quarter. in But and I at spreads me this that’s and in what just from renewal an I basis. range the if versus I are for Got more on

Shankh Mitra

operators. such swath It’s It that numbers is location. a so well to as predict. as acuity, on, you So, as very dependent said, many across of is broad operators, hard

spreads. negative significant seeing positive spreads Right. are We to

that sort to has midpoints a about. talk comment. distribution is very can of that So no it’s hard It I generalize that

I to say just we just more tell it growth a look out. you you revenue are live to to should I play growth if for I’ll that gave revenue what picture you looking median So you at want it’s that and from of going outcome, a

Jonathan Hughes

the Okay, I’ll jump Thanks time. off. for

Shankh Mitra

Thanks.

Operator

Anderson go Mizuho ahead. Please question of Securities. Rich from the comes Our with next line

Rich Anderson

morning. Good Thanks.

aware am I on. couple So, focus me there forgive am like are questions you will to on, certain if focused things I’d ask us you that but a to I want

or cap rate something Hopkins rate rate John the larger is million On provide the a above in requesting? for that for transaction. not for just you little Is on willing the you below X.X the Hopkins? sort $XXX one, to are office, the question the the you that cap actual of John us? cap Is Can gave number frame it a a bit seller that medical

Shankh Mitra

to question with a it’s your not it we that the the disclose seller drives specifically, can’t answer think deal closes. is before we that have it to But what above IRR. So, about fee hard an

already telling very that well a portfolio. are you We it’s leased obviously,

generally what know You like. looks bump the

we number. am can I solve that general you if gives telling you unlevered a X that on So,

quarter will deal closed. give next when is number the We you the

Rich Anderson

That’s good Thank answer. enough. good for that. you Perfectly

assets Or they over transactions same-store. Brookdale around the up underway? out same-store performed you as are taken held without I the you you their amount. dialing performance of sort assets have well into how have them Could say including if those assets numbers the not – are process? pulled discloses relatively transitioned those On of down transition HCP your are are transitions putting the the reasons pool. know for

Shankh Mitra

about asset wait needs of transition quality obviously, kind a have happens, for et obviously talked quarters an So, same-store that that we five to this cetera. when we

quarter, However, cash last implication trying you. in the of assets to Tim which allude what to decline walked that you in flow was is those through, I

in those the last They have numbers. you just So are transcript.

Rich Anderson

look. All for question right. Tom, I’ll you. a take

in now your team your have for You processors. place

the took wondering great. Any be over would on process you succession. as much Is that of you at all comment am within give can sort So, of I very walls can comment that’s structured on you I assume Welltower? if four CEO, since a that

Thomas DeRosa

for that it’s go? comment to on don’t we Well, succession. me time Are suggesting you

Rich Anderson

a I you such but have let I’ll at. talk response, not. Not, great

Thomas DeRosa

our to No but heart, would Rich, worried you deep is management love last over you or offices spend surprised. London, New whether bench you it’s of pleasantly hear depth very thoughts. and that your tremendous I’d about and would like us, whether in I here energized be against This here or or you people time some structured have our thing of stack I’d invite Toledo young, in I The to I should a great. of Welltower. and offices up with will be that in we is the diverse, company a Okay, in tell team think my in York any ours. it’s LA with

Rich Anderson

to the sort And then, you at that? to Any are the so some you of same-store possibility going I You are and question, there? just top-end. ranges. you FFO sure individual am range, at get massive the to on range the some guidance can Obviously, X.X% would. your fourth reasonable last adjust I the but top for of adjust to is of alone you sort ranges make or range reason Okay. those your in quarter some produce original shop, end number don’t not in the leave still shop there be you

Shankh Mitra

year. about, about through talked But this. are we year the So, the fourth is change ranges individual probably not do we this talking we

you are portfolio as as question you think we think the flow precedence it’s quarters so, have we are of people to asking are cash keep the us but we our the excited And overall of once We flow numbers, create fourth business. you seen not overall we going that be the growth. what that, make. problem portfolio quarter and doing expect doing, The that shop in you about from better hearing predict overall will don’t quarter-to-quarter and three the about than cash

Rich Anderson

Okay. Fair enough. you. Thank

Operator

next from line Ford comes MUFG with Please ahead. question of Your the Karin go Securities.

Karin Ford

Care. may crack environment feeling potential to business? there another of try your the to Hi, good just take is you Where you on see that the ask any about morning. word today? out implications you at mid-term elections How are Obama Tom, wanted political Congress if

Thomas DeRosa

are and the so ever outcomes. drive Karin. happen. the right Really, and some this because I prevent to to just show to clouding the people business wait is do world try cost think that for predict we shouldn’t and Washington - wellness improve the about that’s mandate up and believe wellness, really things do – cost, doing wake we actually a of making will healthcare that and our into see cost now, the it mean, don’t continue going I that what’s by and room. I not But settings every to to starting can’t It’s up moving is to the healthcare to lower emergency is question, but healthcare underscore need dissects I better the business how politics. the room. Washington some questions I health of do though from Karin. I elections across We to really many get want and mid-term our coming about to system reduce emergency what just in cutting

like election. or That’s but Republicans, I in So, question I I and that Democrats want we day, world Karin. will to after best live power the it’s sanity whether it the the would answer you, give in a can still think to talk every whether are the prevail. about I

Karin Ford

the Brookdale point. much. mark that the coverage Brandywine look Is trends? like EBITDAR coverage second for just Appreciate solely very future basis Thanks. inflection is you a It that senior question the on senior uptick do housing housing restructuring? net an Or My think triple due sequentially and to could it portfolio.

Shankh Mitra

like should long why, business more you the the in consider not guys about important our EBITDARM relative levels is long-term occupancy important potential. do the as if I coverage triple of net discussion low least at to how than So, think I the very went business very is We the the think shop EBITDAR the through business, a think coverage.

occupancies the those go obviously, improve. as So, up, coverage will

only profitability to on and not for a well many partners. because can I operating number, not that’s as I focused just am and depends driving So, out and so as coverage, on we in quarter-to-quarter focused things our are on that tell come are but sit going us you. predict we it

Karin Ford

you. thank Okay,

Operator

with Smedes Your next Rose ahead. Citi. go Please line question comes of from the

Smedes Rose

the comments Hopkins and a exclusive relationship. to are your that maybe agreement build would sites? bit might them, or little how bit yields and for those Hi, more sort about on you returns be those? I care is much And sorry of those And a investing ask thanks. John exactly guess, be develop – talk would of capital am little to I you what looking alternate with have to some could I I development just just wanted what your these missed what and you

Shankh Mitra

of well alternate at of want Mark, money much on We type. strategic a deploy it capital could to and nets we rates. if business be capital our only cash energy all obviously add you could here something we much to mean have How capital? care, of senior increase how types office, what as It do predict can the our can that we post-acute could enhance don’t medical housing, be as seen. you make our partners be our flow. goal sorts a we Again, So it and our to and that? sit

Mark Shaver

Yes, has four if have Smedes, market campus recall, the geographic acre a County assets thank in two that buildings. Howard with that you XXXX Medical XX us Hopkins of we gives we the Pavilion acquisition that in for including, you acquired Mark question. It’s Shaver. The

has care Hopkins, are there leading into systems drive looking out care community, as the move so, that many like is specific hospital of settings. to other to Hopkins and the lower-cost incentives And

which of can we their developing them on with Shankh and working or days acre in Mill campus care As Campus. Howard sites our develop of early are XX either identifying we said, terms at County North General

to continue of with come systems develop there to of at it’s to is costs. health sites all that. But more So, lower reflective comments Tom’s of care needing alternative

Smedes Rose

rated how about a and just less it’s feel do now any or such the are thoughts do concern like just your that you around in of And agencies be call talking thanks. the the being with after their was I’d second announced venture interested ratings big from them. downgraded around Because quarter then, your structured of think credit you them about with part Okay, a that. you comments ProMedica just, A of sort or rents

Shankh Mitra

the going about the where We’ve talked see is and that what we credit go capital it about about to and playing the and talked is back – mostly talked is rent structure. we and fit and if investment-grade you

talk system publicly trade. We the ProMedica’s obviously have have specifically guarantee. about bond we don’t We great output a and is ratings, ProMedica’s

tell cash on what go we look if flow those at than that ratings driven synergy expect you would comments, can months. distressed will You or synergies. listen mentioned my I and had to will only not thing would I the or that anticipated impact But, that by be you eventually an higher see and you

about mean ProMedica’s trade that own and flow bonds talk So cash obviously come to would But not think market you about going are to you that and we follow conclusion. as mean can here higher in sit – through that. would your cash the public that specifically if ratings level of because flow,

Michael Bilerman

Michael Shankh speaking. Hey, Bilerman it’s

the everything you about Just, versus a medical a you minimum Hopkins at where of talked a outpatient go about does at initial yields as you like in think building How underwriting X% the What John X.X? IRR. get under to underwriting X% should for you lease. thinking we asset what there IRR? are putting to an the assume what’s – a the a about are in How be long-term I as XXX% unleveraged leased.

Shankh Mitra

Yes, so, correct you lease. are about the

signed. unlevered This not to why this will which cap you agreement asset We is X.XX% development But X% a building building look buy it I rate, This IRR is land ten at agreement just development get we has said, at the of signed of told fits with our an is. we particular we the five building land. them. right acres to has that you acres charter and next

we whole are we higher on. what get do. That’s or to IRR we So focused do will the X% from we take relationship

Michael Bilerman

a It’s yield get one So it the a view hand, you it’s may a low transaction. what benefits not on making strategic on investment about each in other? holistic individual what that at fits

Shankh Mitra

land about covered to want a you is I play. this think

this because This we a is NOI, you a negative all that play. land, on things. – obviously, So pay is to and taxes have if you those have bought land service covered you

the we our using charter land, right next that are get to absolute So of income. sort one the asset you cap but the with that part aspects it’s satisfied Class decent fact system discussed we the to rate of best building. really still it at – transactions going fits developments that. We’ve not seen, our than we are deal the And this have of and A getting required and returns asset of obviously the majority pretty an I higher are

Michael Bilerman

this A I a health ManorCare, look is We HCR on at that announced asked when nursing this you deal. pretty shouldn’t system we on rated And am the sure skilled deal. Tom, told ProMedica, us, deal about as you

don’t… you know I while, So,

Thomas DeRosa

we Investment-grade plus they fact, to here triple triple plus. could downgraded they group we in said that we downgraded in and had – Fitch investment-grade that when the B offices, B by And expected put to told Triple you be we our to S&P and B. were Moody’s, them

Michael Bilerman

Thank Okay. you.

Operator

go Our next ahead. Wells Todd the question Fargo. will of Stender come from Please with line

Todd Stender

thanks. Hi,

shifting dispositions. to implies non-yielding by But X% being $XXX dragged Just other down unless in some the cap be QX. mid rate in range guidance would the properties. million that’s The

So QX stuff? you the one just of go through maybe

Tim McHugh

Yes, are you Todd, correct.

on of during in fourth got have million assets it’s X.X remaining are the the sold So the But quarter. be and to non-yielding $XXX XXX a yield them.

of yield. million at yield X.X a XXX $XXX about and it’s at dispositions So, zero the non-recourse then

Todd Stender

stuff? that in what’s or stuff QCP more it Is

Tim McHugh

yield? zero The

Todd Stender

Yes.

Tim McHugh

to those when transaction, back, there when to original ManorCare it, stopped we going the restructuring and on sold. closed to from paying ManorCare. with was QCP QCP. in sale about back on million designated so, rent early got Yes, proceeds its going was be all in They $XXX - assets

bought So, the we when essentially, agreement that came us to we portfolio.

million So third of $XXX $XXX million about close a we during we’ve remaining. them of the than remaining at $XXX the these and and time million got less closing, quarter had since we of sold

Todd Stender

MOB shifting something for while. contract deal you contract, The a under Got it. that And you Thank portfolio under have is then, you, gears. Tim. just had

We You along go you’ve year. long needed this come how haven’t seen recently? your that. deals just cost you could of equity portfolio just many through to improve or been calendar Maybe does eyeing have this that

Shankh Mitra

not for did come how obviously, transaction wait to a real our We, back. equity we works. not That’s

Keith think walk go we you think when I NBSA where diligence. don’t then a channel, has this can through. about, are for of is. the that. this – you just sort relationship time which and a you we that you principals it or portfolio is the at for As takes the No different normal the point a documentation closes, I I it to But much are say that to happy first then longstanding through takes and bid, through a mean, this more PSA time portfolio. particular going close. it and mentioned When with obviously than owns deal deal due Then and normal

Todd Stender

Thank Shankh. you,

Operator

ahead. Green comes question line next Hartwich Advisors. Please Street with go from the Your Lukas of

Lukas Hartwich

color Thanks. a Good last around couple was a guys. coverage could provide you I morning it hoping Post-acute down come just decent that? some has still is market, amount but quarters.

Shankh Mitra

going Yes, assets on left handful know, that business. is obviously, Lukas, and as we lot you of health-backed have that there in a

So at the coverage that down. coverage drove level. The coverage for significantly assets still EBITDAR, still X.X was X.X,

but So change we the is not about primarily driven are that. worried that, by

Lukas Hartwich

you. Thank Perfect.

Operator

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

Jordan Sadler

you. Thank morning. Good

to touch on sheet. Just wanted balance

on have as like environment? you teed might thinking of look going what of forward? I I look and come a current EBITDA up, curious, bit to up take result sales on little am you by leverage targets year we in it’s about to leveraged I your And refresh maybe sort end six but what us think just are net the a down can you debt balance sheet times. the as re-imagine to leverage

Tim McHugh

I’ll the on The John start we this that little comment skewed get debt-to-EBITDA XXX by transactions. of Jordan, can side. can quarter, and timing that printed the a strategic

the and XX $XXX that them. we our the fourth present is – ProMedica QCP There entire have glad X.XX QCP leverage, essentially quarter, an we’ll days it's was down comes additional simple quarter quarter, that, X.XX, a asked no liquidation, non-yielding the So of am get the assets is EBITDA of then, because you as on we bringing way right. of for at million XX to annualization flow. cash to since time on transaction, debt-to-EBITDA didn’t for we or the I remaining essentially days income us. the The The down

a be So It’s X.X bring it cash. another turn. it to going just of down can

I those of So, the it’s then, X.XX. mean drag it’s in little in a reflected runrate non-yielding, of fact kind XQ right bit leverage our earnings from now, three and our

think So being the when gap it’s pro when not mid kind leverage. – as of talked forma much of is a you we to about X.X about

almost income there now. transaction and to ProMedica in expect We right left keep. are we that

John Goodey

we Yes, to I or said announced nearly Jordan pro be when would the forma we that where going was to acquisition. QCP close are reinforce, we very the

in were guidance obviously, X.X quarter over that generally overall, leverage capturing of time coming prepared acquisition. I’d us to remarks, last that times know some we at sort normal You we what that we the course. heard my you prior levels the gives see we order conceptualize to in saw that as

Jordan Sadler

Okay. And then, just just together noticed, to the follow-up trying a QCP. a am I bit. numbers I piece on little

original guys $XXX before closed imagine sold the assets prior you got the XX done. sold But XX in you you think think presentation, to those XX to would had XX. teed maybe would million, guys year I in deal I just, of be non-core a from I quarter, you be the couple end have I probably am up that

non-core will to am there QCP then, assets, is And from guys the sales XX don’t XX sold that’s there I some QCP assets. you curious non-core additional know, assets. just about, of the come? I portfolio – So, be difference

John Goodey

that don’t No, so portfolio. Jordan, We sold this quarter, we any we post-acute expect time. sold,

sell two those $XX between portfolio, another in building of the non-ProMedica it. that quarter guidance assets, roughly will of that’s fourth million half our with in the We QCP and of NOI came that’s

So, it future. for little transaction. non-ProMedica keep the very rest we And foreseeable income is the there to of left with expect that from

Jordan Sadler

Thanks. Okay.

Operator

go next of Stifel. with Your line the Chad ahead. question Vanacore from comes Please

Chad Vanacore

Hi, good morning.

dispositions I a was into you that guidance $XXX Is million? the will some why in just non-core? merely pushed wondering, by see XXXX? reduced we Is consider change what timing and that So, expectations

Tim McHugh

or our from wasn’t in what question. merely standpoint, to point of want than guidance. end to wanted in was a in in that close we want the That’s year initial the earnings And Yes, We great timing. million $XXX equity I expect give that an our to make we XXXX. early we more just just quarter that’s guidance raised the

an from perspective of dilution So, those moving dispositions. our accretion off of or

perspective of versus dispositions. dilution net a in the the actually still pushing equity from raise are out We

So was that our to guidance. was not. that In not accretive short,

Chad Vanacore

the And $X good runrate then increased you assumptions by of million have? Thanks, a thinking we about much just about the in right. XXXX. CapEx acquisition Brandywine in made versus you then, what’s given that Tim. that All increase conversion FY guidance, How and is assets MOB operating

Tim McHugh

the on of acquiring. thought us think, Yes, that into we in be – tied XXXX of your take comment We forward observation some on the extra just going related, not XXXX. moved in that. on I about – projects on give made occur the We projects that properties, that are it was $X I’ll actually, around outpatient XXXX. that million $X And some then talking million were is we some the to tied about of conversions XXXX RIDEA to or to just of

Shankh Mitra

as just then our think answer call buildings the in second through we about One S&H. fourth of part and will our CapEx, is CapEx I the normal your $XX CapEx. it spends, is the from you Sunrise question, million bought items think about numbers vintage-related And flowing through

that we what $XX next is – and Those what they difference this million the assets. year. two recall, of about. we of S&H abnormal sort those that half sets asset $XX the year to the that add CapEx bought flowing are These are through first numbers we aid, sold million and talked and assets You

portfolio. negate our CapEx will percent SHO that of as to required a due the significantly overall the the So of increase

Chad Vanacore

that fairly this a for runrate CapEx? Shankh, to up should is we down? or right. Or go expect if All Then, about good think quarter, that we

Shankh Mitra

not, situation it’s because, to still the Sunrise play The No, starting vintage is whole playing is situation through. through.

So be XX happen. to starts am it runrate. eventually you hopeful end of I better will towards get to probably sort the are a XXXX XXXX of maybe going But

relative number overall because really fairly So, budget. we CapEx those large transactions. good of CapEx our a to have two It’s

Chad Vanacore

then assets just the portfolio be any assets the update transitioned is or XX so. to And Have quick had All repositioning, on whole one you Or point? right. done? you at about the of this those left

Shankh Mitra

next. license Washington, And in it’s up talked obviously, like, about, process closing we in and transfer No, are takes teed process, particularly, are actually as the California all time. they to they

it and of are them our staff. of in And to plan up Brookdale. XXX teed XX with a exactly able that the retain to close we of are on have days. encouraged are them have also and Some very future very have progressively to we call next operators closed They been some lot working

Brookdale So are the for support us. to It’s has encouraged. comment. are we very we are early provided – we But still very grateful

encouraged involved the We and very the process. who are the also are getting new operators in transaction by

Chad Vanacore

So impact It’s any won’t fourth really that, fair XXXX in is it to see impact? quarter. we think the a

Shankh Mitra

not no seeing is in same-store. you right. because No, through even assets impact be There the from impact is will flowing same-store the those are earnings,

Chad Vanacore

whole about the the talking am portfolio. about I am I not talking same-store,

Shankh Mitra

yes, talking dragging last you if and of you And quarter. the through you every down Tim are are seeing then, about earnings earnings, quantum one walked of the them

Chad Vanacore

All right. Thanks.

Operator

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

Michael Carroll

I CapEx think you occupancy pickup on your Can that the expect thanks. without sooner trended touch you regarding and Yes, kind higher? prepared to why that believe the want that you you portfolio. I invested saw the said being occupancy Shankh, within remarks pickup QCP. quantify than you reasons of

Shankh Mitra

assets. specifically about the increase post-acute got My the talked XXX it which you comment CapEx. Court, of about business. and to will specific not assets that comment to why Arden Court significant that business Court imagine I early Arden right. or we happened, But we know, that business. that care the comment nursing – how Arden XX It’s in have as skilled Court much, very sides go is, too memory is both specifically My through is obviously talked occupancy seen was Arden why hard to very assets was it which Remember happened. we

the are you occupancy business. industry. It’s a But billion high-quality end it’s housing our a RIDEA obviously Look entire industry, the almost seeing $X spectrum. there of board of sense across at gives We senior the That of the growth. in portfolio, assets. XXX XXX, is sort

been the of business the lot down as impact by have the seen come getting a up better. patterns of are deliveries we eaten obviously the new deliveries seasonal So, starting on is has to really margin

Michael Carroll

you highlight that you to stronger synergies synergies then, those are? previously. also see expect And Can great. Okay, than mentioned you you thought what

Shankh Mitra

to will will two through Randy, don't niche the that about me to I aspects and they get on but, this you different talk Day it, or one the of public bonds one blow-by-blow better in as of and across the don’t for categories perhaps, think mentioned and funds. I want I and synergy our expect walked all synergies. all Investor that quarters numbers ago the synergies about Steve I we two be – through appropriate those it’s talk particular topic. or board a

Michael Carroll

great. you. Okay, Thank

Operator

ahead. Your next question JPMorgan. Please Mike with of comes from line Mueller the go

Unidentified Analyst

JP Mike. next XX% office. the on and the in the housing pipeline senior three Quick line year you five for from Sarah years? is changing is mix XX% Morgan the through this that question, to see development about Hi, Do

Shankh Mitra

opportunity. It’s mean, opportunity-driven, are not trying we Sarah. by a driven to target surely I mix. It’s

any purely I that quarter, into development comes our would how This not and opportunity-driven, both deal-driven now, focused big is very, matters. just whatever business. So It very look on quarter-to-quarter. on building of of sides size for so we the are trends that a

look a we will steer it. the that trying not trend specific is there anything to I way are or So, number or for think I

Unidentified Analyst

you. Thank Okay.

Operator

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

Daniel Bernstein

go you morning. of of into earlier little if triple talk of more more? way really and hear the enthusiasm in for we bit coming good the much triple of And bit a interest a little operators alignment see in a too a to could didn’t the about comment lease. context Hi, Wanted nick, the lease net maybe out that in from net

of a to the you of versus to terms there seeing So, want RIDEA? could out lease what maybe operators in are inclination comment about you

Shankh Mitra

an Dan, my you about attend that panel. talked didn’t for I hour.

Daniel Bernstein

it, panel. No I heard about miss your but… did I

Shankh Mitra

am I I Okay, so that now honest. know, really

So, there the to the very people At at We – is think our how our of invest want too the of in of understand net, wanted people, and I this making estate. in thriving need I end operators business, day, on, is mean, end to value triple that is whether right? the The RIDEA, We want day, much the different I to simple. be that look, We the idea real is our operators. money. system the focus enhances operators tools. it’s it’s there

the a already. do mentioned features, lease, can that in additional with other whether that call So, alignment do whether think we I well-covered we in I can four

value going So, called we the - pure I it’s to very business. one several transaction a a the myself want equity right? the operating there to we am are focused. housing to you senior point, do And ways And that’s just think estate we is we or the our housing only repeat not for know side want There that operators very, enhances We are we of end senior get day, what want that. to obviously operating and RIDEA, - real think path. very So and do we an moot think well. at not that we

Daniel Bernstein

the a we the Okay, more okay. I risk mean, nets, about difference in there investors profile, offline. some risk difference leasing talk in is which and perceive I between operating a think

if that that of buying backyard. When Columbia get The more terms buildable square you the of are it play. gone the is Or this in X% my you was are IRR, about talked at point? feet? a – thinking the What you’ve land Maryland of to I far to cap on other question rate the the property you from kind had which you

Shankh Mitra

that. going on not are we to Yes, comments make

our There acres is said, assets on the I mentioned door, land there. we right, building there next that I of no think land, Mark significant right bought. XX and obviously land is are that

going could build to are there a our with build not So, needs figure is out building places we just we their to partner significant building. that relationship of this expansion be as This in what need. meet are. those Hopkins will a Right,

land. you the I it’s encourage if backyard, but, your in go would and at think So, about look and you,

covered You will realize this play. land is a

Daniel Bernstein

okay. I appreciate. Okay, Thanks.

Operator

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

Eric Fleming

I morning. managed on had Good care. question a

to XXXX how Or with could relationships? be senior increasing their are rules You housing. their is you coming in for something and opportunity something Advantage Anthem are guys of an Medicare that out some in expand the looking there about that interest they got and relationship payer ProMedica are talking any you? the that the Is

Mark Shaver

Eric. this Mark, Yes, is

So, yes, absolutely.

we nationally, So, see rapid acceleration of Advantage. Medicare a

the a which ManorCare of and and Shankh from value-based on that new that in Some is shoot bullish is increased the we amount when should partners enhanced partnership pretty are fair that reimbursement ProMedica a payer reimbursement methodologies term lead the at EDPM mentioned used perspective, we’ve to post-acute ProMedica care methodology being that both it’s better did our side. the the green more

the bit us talk payers. see will about opportunities more you future think I with in a

the are greater of platform care and linkage to senior population great sites housing Our senior to but to amount and of providing they a delivery the becoming system is greater care increasingly also payers. partners, both

that for aspect So come there is more to in sure.

Eric Fleming

Okay, thanks.

Operator

Our final question Okusanya Please your the of mute. will ahead. Jefferies. go Tayo, from with come Tayo line may on line be

on handset. are If you speaker a please phone, your pick up

Tayo Okusanya

Hello

Tim McHugh

hear we Yes, you.

Tayo Okusanya

Okay.

phone I mean, were back bunch opportunities. what just I you be little be versus just at? would may you about, you finding done quarter. good looking seem pure the am pulling you what what different Can that. The about but at talk transactions talk about to on of really would looking some actually bit during guys a issues. that they be are the a play Could guys are some Sorry having MOB acquisitions,

Keith Konkoli

this I I guess, Yes, what will comments. Konkoli Keith is, And in I earlier my just, so, reiterate speaking. said

opportunities and looking do on health business. system focused for really more to are We

situations ways help can we different believe setting. around found that care a be we looked just and at lower that accretive evaluated are we our all to we’ve cost We available, as we we we’ve of the deliver grow of what’s as So, spectrums we in across some broader portfolio. will look continue to – and the believe opportunity the – that we as look market unique

Shankh Mitra

we Tayo, different that any what not is seen in from senior the have housing business.

ago, If asked I think you me go right. three, you if years you the ask back, I’ll not be surprised, same four question

a very well housing senior relationship-driven are side strategy are on the We sector. we on medical have investment have known that that and to obviously are we – and housing we execute executing executed the

Thomas DeRosa

the of major off the health put brokers. States are ourselves in trying lot We the United of properties more spend different time being leadership the to offices of we a do auctioned that than in by the way in systems

for investment should new some broader the is and delivery connecting this in investments shareholders are that assets generating to That seniors networks. like post-acute and our healthcare traditionally is their expertise of thesis by you indication that the quarter, are that business system We our we unique housing health knowing thesis other working. have opportunities needs that the see

Keith Konkoli

was in between was responsible business with Yes, division we a we a on lot have that. office which and the and singly were just medical I follow-up When I the really for didn’t of serve excites across industrial synergies opportunity we and synergies that to us space. to the Duke, me really medical way. be have to space clients enable really our we those the what about is The real this business very, able office effective very herein, a focused in that

Tayo Okusanya

kind actually in accretion I another. or asset be about about will you one just ago, based entire just Keith, a you So talked accrue are MOB to building accretion that that on accretion is ecosystem think of the the second way shouldn't

Keith Konkoli

yes. Absolutely, thought. is, Absolutely, that’s it the

Thomas DeRosa

this the relationship, investing relationship a system. is It’s with model a health

Tayo Okusanya

I All right. That’s all you. Interesting. Thank had.

Operator

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

Welltower (WELL) 30 Oct 182018 Q3 Earnings call transcript