WELL - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Welltower, Fourth Quarter 2019 Earnings Conference Call. At this time all participant lines are in listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference may be recorded. [Operator Instructions]

hand over to today your like Mr. now the to conference speaker I’d Vice General McQueen, President, Matt Senior Counsel. ahead, go Please sir.

Matt McQueen

Thank you, Liz and good morning.

certain statements of As be Reform reminder, statements this during a call Act. deemed forward-looking Private in the meaning the Securities Litigation made may

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

Tom with his hand And I'll the that, Tom. call over to for remarks.

Tom DeRosa

Thanks our to to you pleased Day XXXX. Investor Matt that strategic announce results they as and growth reflect in the December annual morning. and today, good path in our outlined I'm to QX we

did in what told you put, do. XXXX we we would Simply we

transparency. of the real-estate of class delivery Welltower dominant has clear redefined wellness structure advanced insight, capital optimistic report on over growth and generated the that has X.X% deal XXXX to terms for operating per and market asset a in care today. As XXXX, XXXX health us This and building FFO design, sector, quality, has path $X.XX increase share fuels sustainable provider this to in data models, technologically and you we outlook placed leader a the in

development overpaying running old passive senior of on January operating and the personal profits today, XXXX old game school X, real-estate was or we between by an more The housing investments billion generated playing new than focused for business. $X the into deployed through their take-out not operators being for auctions

over. Welltower, For game is that

when rewards in always senior enter structures of a into plan, as next to the bag don't go shareholders things are choice that partner life, yet operators don't go who things to We and business according performance, REIT according plan. the residential in leave care holding aligned generation of strong for don't

health nation's of systems. with elected Jefferson of I'm address. of of with health partnership one has choice academic recent Welltower also urban announcement broad the become for a advance the Health’s saw largest care no sure work to health Jefferson, its strategy have We partner to systems you Welltower. with

assets, recapitalize of aging next drive their help ambulatory models health Jefferson's and assets, Jefferson will capitalize and greater population XX,XXX outcomes existing and into delivery that our ambulatory together at can partnership of new build population. lives connect and care wellness for This conceive generation Philadelphia Senior urban an of housing over existing better risk capabilities

They Klasko, Board to team working honored his the the are with of be healthcare and redefining Steve future Dr. We Jefferson. are of delivery. truly

is that platform approach demonstrating there in collecting can our checks. be real-estate that is value beyond Our captured rent

one. residents, markets. increase Anthem and bring enhanced models being models collaboration of for pocket for like that resident into assisted with communities, a care Stay now is Medicare stay. and pilot modern was of year tuned other of and living Our this clinical out rolled is experience, California parties improve costs this our illustrates great CareMore a and can What occupancy products, third example other advantage into last reduce innovative length outcomes out

as residential XXth will For suffering and to be needs enable for residents families. but art enhance designed of I our this generation care, advanced the Lexington the next to opening their more design, is care. point efficient with meet purpose Phillips only well Not incorporate population, building building our conditions in late Technology an how this and the Street this care it When effective on facility you of seniors driving will of care opens, spring. the of built the most example state world residential frailty building as for will technologically Welltower memory to experience Avenue East is of the that in and it

followed project driven of one. will has development Welltower conceived be at deliver San This in as will Yards next from day with related models new the and Francisco in venture Manhattan process our XXth Hudson our Atria Project part by Balfour. we St, joint and urban Boston this on Broadway and

better a we aging costs, These examples and built are of just the in that few positioned Welltower redefine can lower of the population. how environment and particularly of to have view reimagine outcomes deliver the healthcare

and our a to would you, remind have morning. have path FFO include We illustrates this enables that. that moved from acquisitions the job beyond you any to investments is not or sustainable been growth. have $X.XX largely deliver of outlook And growth In optimism the that slowed and of net that me this issues our does not It hear will share announced. per XXXX $X.XX I new our

closer Now Shankh as well you as investments. performance, discuss Mitra QX will operating at give a look our Shankh. new

Shankh Mitra

and quarterly additional you results, relationship. and investment Thank good provide and everyone. and trends will performance, on annual now activity new I operator Tom details review recent operating our morning

A SHOP set our the year cautiously you when guidance at store same senior and we about to we set ago felt that operating X%. guidance housing X.X% told for we XXXX, optimistic our portfolio or

primarily that driven delighted pricing cost stronger labor and expected have better the inflation. are We inform achieved to X.X% by growth than you we for power year,

partners portfolio acuity spread you across cross XXX our creates communities correlation, remind SHOP to different portfolios SHOW low and different which quantitatively our manage on geographies that We diversification levels, models. benefits. want real operating consists operating of price We of drive focused to XX portfolio points,

a our presentation that We have you do on slide new added disclosure this. our a of ability to of XX snapshot corporate gives

the to in term called of in it by correlation a statistical and room, long same from growth debunked. remarkably that rate believe This occupied casual median genetic a compare observers operator all senior rose will housing you where disclosure get chosen operators randomly NY the X.XX. business business compare you is correlation If

that NY mid-single other we digit of that double experience with partners demonstrates NY all between. to in provide We This partners and decline, the experience is partners others. performance. digit absorb further model contribution business four We operators using operating of had and operating double operating context with XXXX digit three that where portfolio certain our unique downside able to growth, volatility had

Other outperformance significant XXXX U.S. of large over above markets. include living, performance of highlights out core living assisted markets of smaller independent and specific

We product a approach limited affordable have exiting built with end portfolio highly a portfolio more on focusing barbell uncorrelated a the high and differentiated by assets while communities middle. using service, the in and construction senior housing of

to Balfour, Clover, of Atria, addition saw several new Welltower XXXX the operators and LCB. family; Frontier

operators who working we welcomed you a the six with last come to that to We have our off are terms start and months. three in to to to family, been new to great XXXX we're delighted have mention for already

Let me give here. you some details

Andrew to along the Teeters, brand. a with delighted to Mark seniors housing lower to differentiated Monarch based, lifestyle stunning offer are Michael [ph] partner Stephens under We and Glynn, solution highly acuity, [inaudible], with amenitized

Arun in Gap] with years the relationship relatively MSAs. to and We offer multi-billion sub a core large In Priya tremendously differentiated opportunity dollar highly under also partnered provide both of and targeting a market multiple in and decade. a investment spans cases, Paul exclusive next Living will U.S. [Audio affordable product our

by specifically, I will are few quarter fourth mention surprised the on trends. positively we Reflecting that

in fall occupancy First, typically with trends winter respect housing peaks down the and senior business, seasonality late to the months. through within

However, occupancy year the much flat and drop-off sequentially and has been we through pretty did not year this see that this year. into seasonal

what optimistic seen the cautiously we have I'm about labor Second, on inflation side.

of couple seen compensation occupied last flat was years. not QX the five the make quarters best per a have a and sequentially does While in room trend, is in we

relative power, pricing us consistent in gives SHOP, provide with together X% this taken last of year. This, X% confidence the X.X% time a to to guidance to X.X% to

margin. have time optimistic last is as to diligently, but increasing year. a to assisted business is on this improving impact ahead we and We execute of We year believe long remain compared in living we relatively deliveries and today need demand the

be couple insurance RIDEA of management increases QX in other significant the well during from as notable A partners in in as outperformance, increase construct would million X.X I fee due previously incentive discussed QX was that our contemplated. QX our to of items operating $X.X that one in call, not cost significant

of incentive to we terms guidance, relative million the increase fees. $X XXXX In assume our a management

On to million EBITDAR ManorCare HCR told ProMedica of inform of you our EBITDAR you resulted portfolio $XXX we're portfolio. $XXX HCR our delighted year now This XXXX. XXXX. XXXX a for that quarter in has would coverage of expecting last EBITDAR call million in shift that to we I health to full X.XXx. system like achieved our I'm in

of seven in More all importantly, in lines ManorCare increase first years QX. time EBITDAR had business in year-over-year HCR the three for

Courts Arden cylinders. Q synergies business home remains shifted be seeing While nursing to is occupancy are headwind starting length a of flattening, with cost stay to the all we’re check, continues and health under for realized firing mix getting skill and build, the business, hospice in and

addition, significant post-acute platform needs. health is I'll health the you the their come. of with social negotiation to from HCR will systems I'm XXXX. help with of an absolute them, in determinant value ProMedica to optimistic success HCR which some be share In active stories an is pioneer able for in several meet to the side drive years

U.S. in both One under and and $X medical platform asset leadership. the released billion announced acquired now have MOBs our few in significantly quarters have commercial of own operating of side, the Keith the or we the we high portfolio office as Ron’s quality upgraded We MOB roughly largest platform last

an have the used up last pocket business this quarters. air in scale We the to markets capital few in

resurfacing. some our though deals instead from privately as correct, owner of system focused we of pricing tealeaves largely year of of such will is appears this If and frenzy be MOBs the XXXX partners. absent is reading with the the acquisition it However, our health on negotiated

with transaction billion $X.X the the on active disposition. and $X.X side of year in had high most of Overall company's we the billion quality investment history

with to strategy few I listed drive have release. earnings that this We our allocation would and capital transaction market detail trends. like observations on they general you and in discussed our are note

money One, the To for and part we assets right class. are on capital the make we or price structure. to at share shareholders exposure as our basis they of greatest in right favor existing chasing to solving contrary, when buy invest asset the out any latest the opposed for

our execution. our assets Our bed, three HCR and skilled ‘XX a older investment assets focused as $XXX,XXX market reflects The rapid in and on this the ‘XX. bed MOBs a our in goes disposition of laser quarter ago absence and and XXX growth a XX XXXX for just same in $XX, at philosophy in non-core months

be cost basis. invest do granular, future we when current and timing, will transaction the duration we can We capital. capital what capital our of a years in on Two, speculate match of cost and fund and not

and real-estate, rates. than basis Three, IRR we think unlevered cap significantly more in matters

growth. smart model opening to with granularly on and our invest critical In with focused we well partner. Four, partners work this it aligned methodical is

We all with have operators deal year. in earlier our class of five first the grown XXXX since

example, our I on you last noticed in Ness announced second in Yards major our with Hudson the project Van after partner For Related/Atria. we six San hope XXXX months is presently, our our Francisco. development development This

engaged our data Five, to or in only we significant a analytics platform health relationship believe when have due payers. with marketed systems we that our age transactions we or

we last the benchmark incredible product very We senior night with most that release U.S. investor. attractive XXXX. cannot our institutional highly our sophisticated a this another started at an with our be price earnings we amongst housing significant Sixth, transaction reported year see housing demand We of senior to transaction in with today. happier investor

acquisition a net to to a strong $X.X we optimistic that disposition transaction. of Hugh have say to investment. we very $X.X our that in building guidance of guidance detail, discuss very year billion Our announced needless includes XXXX billion that feel have of this will we’ll Though

our Tim. With that, it CFO. McHugh, I'll pass to Tim over

Tim McHugh

comments will XXXX. and Thank our XXXX My focus full sheet our today our initial for you, and full quarter Shankh. balance guidance year fourth on results, year

of the Welltower X.X% and $X.XX growth XXXX, for reporting quarter and share positive per for representing to growth in $X.XX returned FFO respectively. positive X% year-over-year normalized full share year XXXX, per

also across high the of Results for volume activity of capital and invested LTAC the discipline asset and loan of year disposition, had and we the main internal had development our our are as including of property to our since portfolio its we this significantly million capital quality consistency accretive smaller which in The opportunities; $XXX investment reducing medical $X.X $X.X quality to to size senior growth was loan our earnings efforts, of three outpatient XXXX. result of high the housing Welltower yielding billion engine; themes: as while and of all The be $XXX returned year assets, categorized recycling post-acute base. a billion improving payoffs, growth, by million of

portfolios performance. our provide details Now some let me around

First, was housing and portfolio X.XXx. in quarter the year-over-year seniors by occupancy EBITDAR coverage our same triple-net grow. flat posted positive with declined quarter X.X% store consistent another Sequential

Q positive which driven in is rent X.X% long term from portfolio on an XQ growth, that easier store ‘XX comp, tenant our part post year-over-year Next, generated same a rent. now partial current by recognition included

conflict of also XX QCP. by We trailing pool. from a four and development step-ups acquiring driven by EBITDAR in coverage healthcare benefited declined of fair lease the addition well-covered the month market part acquisition X.XXx, the assets, value

reminder, a our in As arrears. reported quarter a we coverage

So this month at new System, PDPM XX October. reflect impact not September XX Reimbursement any the of does the start trailing coverage implemented which Medicare is in

to medical Turning office.

full growth, portfolio Our same another X.X% outpatient positive had bringing average store the solid medical delivering X.X%. quarter, year to

XXXX. points XX meaningful our of of store make same well in quarter progress basis We XX%, the as occupancy fourth continue ending at year ahead to

venture comprises growth store EBITDAR the and respectively. the of X.XXx quarter with ProMedica. for first this Next to which time systems, ManorCare our portfolio This year-over-year X.XXx X.XXX% HCR pool EBITDARM entered health and joint with of same coverages and

Lastly, growth same our of full total store operating senior year housing X.X%. portfolio growth quarter, to housing with report to X.X% the operating average above in bringing positive total our continued senior expectations

our housing practice, will West the two same an portfolio change now to offset There we operating a senior in in sequential details store quarter, asset pool. prior the asset and changes senior nine of by provide Cost I of pool. operating pool housing As assets entering removed had moved portfolio. held-for-sale, XX was our fourth In

and a Brookdale senior housing asset a transition lease. properties XX two since total increase properties, the assets had driven that of to XQ, transition from that end operating At RIDEA of we to of transitioned one as assets year-end classified XXXX three net former a by triple-net triple-net

or and former the The the transitioned of Silverado fourth XX Brookdale will during and same been assets, all store XXXX. transition reenter successfully remaining by XX quarter have pool

from we’ll Our in on guidance through a assumes this slightly transition and properties on progress we positive as color results more XXXX year. impact the provide

market advantage take to Turning very to across of continue the two in issuing December. in activity geographies we market, bond a capital debt quarter, strong

ESG put First, inaugural the Welltower’s million of debt come at green seven X.X%. we bond, team $XXX year effort with Brendsel preparing by lot for reporting or our time issued a led that in raising forefront support staying and Kirby to stack to financing, has investors. off forward paid and ESG our part is of we received Welltower initiatives, ESG and tremendous growing this look Bond from going Green of committed with at the capital forward. requirements

time to we first in return the offering since maturity inaugural XXXX, $XXX seven Secondly, XXXX for Canadian year of our at the of issuance our million market refinancing debt X.XX%. to dollar debt the Canadian

stack average next balance unsecured last and major the our all through removed unsecured debt maturities the sheet for out turning meaningfully remaining In maturity, unsecured XXXX derisking our XXXX, of three our years. we years to weighted increasing X.X maturity

ATM weighted we $XXX for issued programs. $XX.XX of X.X our and shares the and the DRIP million Additionally, average equity during the share per via price In of approximately we markets estimated continue proceeds access the to quarter million. quarter

call, shares As $XXX that our common program we million of through to of have sold of settle, estimated million proceeds. forward representing stock ATM have yet today's X.X

more our specifically is Turning above to fact We This to capital previously our ended billion net acquisitions at long adjusted range. the recycling timing that target to closed in leverage. the term of $X to quarter and temporarily due EBITDAR debt the mid-December. of X.Xx announced

but equity, of of high mid a for with not guidance, adjusted to leverage settled updated five’s and return acquisition the to When along is cash flow for full the this and by to middle forward the investment year. disposition expected quarter raised

website. outlook, to on items XXXX I initial can of pertaining our investor through policy, our three same portfolio walking address found total to want our of an before sector the outline store Lastly, which be of

First, we as frequently as from to in possible in eliminate much policies possible. use duration as qualifiers decisions based subjectivity our order disclosure our as

pool service. following the enter properties being full developments, of quarters store For same five in

our useful development growth growth it’s a our our total more to pipeline determined the a as a metric, Development investment housing housing our contribution in housing senior operating by senior provide senior plays housing small We’ve to metric. same important total strategy, and complement and its growth fraction store senior insight portfolio role lower to portfolio. providing an of represent stabilized

placed nine the Stabilized after is defined service. being as in quarters

Given entire bucket. pattern, is the pool metric broad and for senior range of for investors representative apartments living, a the of we straightforward products more believe develop, we are we from is create using to based rules assisted each its that helping to stabilization duration

as store unusual in refunds, ownership, investors this our for run Second, reimbursements. as be We and property same believe on our such to understanding normalized normalizers. insurance and items results rate well tax to in for We business. currency changes non-recurring as beneficial

supplement back NOI normalization been all full that unusual higher, XX amounts disclosed supplement our since and growth in of without disclosure, XXXX. us have benefit average XXXX. SHOP in non-recurring the items out We’ve normalizing XXXX Per year basis points would

our efforts supplemental store Lastly, store to with alignment. reach in same same will full our XXXX our the and with of continue filing presentation, further align our we reporting quarterly intent our an in to

outlook. to our XXXX on Now,

same level X.XX% a stabilized XXXX are housing Long senior health triple-net grow housing X.X% positive to senior our estimated X% of total at of $X.XX; systems to range store of total midpoint outpatient is post-acute growth, growth full grow same this positive to grow X.XX%, of a portfolio X.XX%. positive operating housing X.XX% operating the At store portfolio X.X%. $X.XX growth of the to positive NOI X.X%; we growth guidance X.X%. At of positive a As X.XX%. growth and and senior to X% X.XX%, total NOI indicated in term comprised growth press of portfolio year to release, to initiating NOI medical the FFO is same

investment activity. guided to On

guidance Our we with of year This year, initial disposition billion X.X%. over the sellers Welltower guidance with share, average an of initial full net for FFO assumes yield for $X.X the are of night $XXX a in our includes venture MOB little under million and last joint earnings $X previously announced contract million of dispositions, $XXX billion including announced release. from our of Invesco dispositions

call, half. always has and which of guidance of million, remaining as million of or that closed billion On acquisitions, $XXX in includes announced the only close acquisitions up first $X.X today's $XXX approximately that closed already our will totaled as initial transactions MOB made

inflection relative Lastly, on an deliveries. to point it to our spend pipeline are pertains approaching as developments, we development with

light the delivery for delivering year front full of three the before in the of deliveries relatively are first here million in the We quarter. $XXX quarters $XXX of year, our million fourth

In million of deliveries spend. XXXX deliver of we will $XXX another against $XXX million

development run little a bit, of our starts this term part a development as certainly So portfolio from SHOW out will of to near dilution, feel we pipeline. bit the

on of of have the positive at years As you creating deliveries will million FFO XXXX drag share over of XXXX, stabilizing quarter fourth to two $X.XX X% FFO XXX share. next for per the through contribution ‘XX year-end in per of before X%

beyond the our as well all XXXX, us are the and upside beyond transitions recovery with is XXXX, senior along optimistic Develop portfolio geographies. continued of from to across demographic benefit in pipeline trends housing makes what exceptionally our upside well positioned

the over with call I'll that, to Tom. And turn back

Tom DeRosa

Thanks Tim.

is The prepared optimism. us in green head So our late shoots are remarks repeat that ‘XX XXXX throughout fueling we grew optimism this this in core saw you’ve portfolio sincere. morning; from our the word this

many with year. that opportunities throughout health shareholder and senior Our accretive We about talking will to the growth been major look this interesting mining enable to have more we and systems are drive investment align you value. with forward strategy validated

please questions. line Now for up Liz, open the

Operator

from Evercore of first question with Sakwa a Steve ISI. Instructions] Our line [Operator comes the

now Your line is open.

Steve Sakwa

kind a the on Could XX robust? I just most you morning. pipeline. acquisition of the And months us versus in is what big sort first it how good environment today the and sense pipeline six Thanks, give say is of ago? for areas guess of sort to Shankh,

Shankh Mitra

as The the last bigger. throughout really we you Steve. to the have pipeline this felt Thank particularly time, you, relative know is as XX is morning. big the Good but year, months, pipeline significantly

is that the the on you deals As with prepared other two the that housing focused our through my are relationship is pipeline in on told senior remarks is areas I health side, sourced one systems. our

we months markets transactions or XX the health you so this this, system. that that mostly other see we six be ago or system than Mostly made plus, ago that senior year with have and months transaction directly have will housing out shaken MOB hands the will of

Steve Sakwa

kind capital And is deploy getting look you without or maybe you specific. trends anything spend are you where to tighter? capital versus deploy there XXXX better, in share just about anything pricing of maybe things get rates Can look as versus cap capital or to

Shankh Mitra

good So last really pretty tight you look gotten on the last top we assets, senior of rats the in are announced sort housing The the have really to good yesterday markets, side, you very end six say sort particularly extremely months, if tighter really XX XX that. months. cap and at operators, they shows the transaction of

supply On we emergence care of in in first In of distress. right. the saw the everything markets are sort the where it is burst you other ’XX,’XX,’XX, and memory of, depends middle hand in the seeing

If a with history, efforts remains off-market look and with at pipeline at will acquisitions you operating favorable. a you or market of time that and two at we one that look development our see extremely partners grow our our

pricing you three that that very two a are in or to lot a have and the that either assets, that's volume, becomes know of where we we portfolios add lot So one-off accretive. get very or big our a pipeline small up but assets assets,

very, pipeline So we very about very the are deal optimistic optimistic; year. very, this

Steve Sakwa

then just I get I follow-up exact one for Tim; so quite numbers the couldn't the all have I might spread. appreciate missed Okay, all an and commentary.

store a a bit almost out there. that same you said number developments help you little second the putting think you're, do I know that and do

boosted guess by quantify you I just can in from is So just the XXXX what store developments? same being

Tim McHugh

Yeah.

portfolio range and assume numbers that grows the X.X% Steve, were at gave X.XX% to midpoint, X.XX%. that So our portfolios total X% stable to the I at for point SHOW

Steve Sakwa

much. very Okay, it! thanks Got

Operator

Our Raymond from with Hughes James. comes question next Jonathan

Your now line open. is

Jonathan Hughes

slide walking maybe embedded on through your SHOP Tim, give definition RevPar providing this store deck component could growth I your was morning. hoping good the same and us expense site. and thanks in NOI policy guidance? you the growth for Hey, occupancy

Shankh Mitra

Hey take that. Jonathan, I'll

you three and which we obviously growth the talk are you to same land major the know the moves, occupancy, big that labor, So as before, pricing obviously right. I about NOI that's where mean we variables on this components. store they three

four getting sort on Without those I will call other each and see in the change occupancy other X%-plus rates of to it last, the too to to you or six about see you is flattish down get want much things what and labor will obviously think you into the will how though, growth see each slightly will quarters, influence what in side. we we we have on seen

a As two I doesn't trend. said, quarters make

will on assuming do upside. the but labor that trend continues, be are continue, quarter there'll some we we have obviously help that We seen side, if not what fourth get in if

Jonathan Hughes

to embedded may extrapolate be and past couple we Any that forward that portfolio? your different your of non-core quarters of gets roll kind so guidance. the and can Okay, to

Shankh Mitra

No, the portfolio. non-core we have

smaller be XXXX. versus suspect seeing You don't up look for specific big to as markets X.X% but so I know what know smaller at fourth that that if large example, and give performance. to, is you core in just X.X%, get fourth run one There were just significant but to roll will I and an I'll in a there's obviously significant in with markets X.X%. you NOI were markets. performance U.S., markets it, difference that, quarter. difference between U.S. We're take core will we through exactly quarter difference two U.S. the you other between don’t a a quarter see Again, down of large

Jonathan Hughes

great. more prepared could form how data partnerships one partner, talk about to healthcare Tom, partners analytics your I access with hoping gaining capabilities then specifically your value you platform. senior me. the it, Got you just housing in your ascribe about And remarks, talked but was new that's and providers the

gain should these don't think sources, world a you I Washington capital, cheaper the come clearly provide. mean operations admittedly they at others go of to lot and out I but to find something

trying business I'm to figure us because your it ascribe just investors so analysts as and So is out, part value how to unique.? of outside this

Tom DeRosa

systems. now this Well, housing helping such much provide bringing to working markets we talking operators now thanks senior say that it information that really and Jonathan, efficient we where they are their granular and senior had I'd in our operators that and become populations. important out them to are certain It them, systems understand because us their target before. can housing market focus, it's more helps can about effective a in they’ve to share expertise this health tool figure arsenal Health with not really to build is and how are them

that truly are we see differentiator say housing you bring. and senior So know the also I’d a it our as operators also seeing other we capabilities

involved, expanding collaborating stay, revenues. drive operating housing enhance occupancy CareMore can opportunities and senior the housing like the everyone about by from resident, may That of a offer for model families, to senior a operator. including with a the standpoint, facility see we is collaboration. the operator their a win-win talked third CareMore You of know length parties Anthem I And increase and

and the So word always a other know talk, think you optimism – than we're from it's the happening, on it's focused that we you with driving be hear it's they know not which alignment, for part us that – that's not people the senior industry. work what that housing future to most exists want housing the that's today and what's is you industry and and that real, future is The you Welltower. know senior a alignment, of the hear just lot, see

Jonathan Hughes

we into us outside the we priced maybe it the in new mean just I on trying understand yeah. yield it’s from you of how in so… Okay, see metrics partnerships, terms know to the that

Tom DeRosa

early its Jonathon, days. so Yeah,

roll over – housing you we’ll and I and see we're expanding country to to but in there tangible. think its time should point to – where going the multiple when performance, that'll think, markets so to types the said better be you service starting senior model across to I you'll – able be collaborations, I that's these you early be programs I think again, as start should these it's we’re help it'll through more and of out into days, see earlier,

Shankh Mitra

Where you that in – just eight think would new capital talked operators, know to cost have there could one are we of things hard of mean world about not – about to us Jonathon, you with the our it but right. these significant at the capabilities, right. last XX to they're if point look work your capital, divested to months, these just with sources just is capital. our coming to of – I way of model, be you chief because I are

are – think know like capabilities, about or we a it, in of you may you partners be over XXXX. investment that with mentioned think these about then one of how are not to way operating how ongoing able These may can those so get many time as them I to can think period you and

invested in of every and Earlier one the have as today sort of so with year far know batch we we announced of more XXXX of you them. our partners today,

way is what platform to think you gives the be than and of a get about just might of know platform get a of the you that. what you is we’ve about. sense sort – sense Tom the the one can talks that's way That that The as obviously platform So asset to been what value. more to trying

Jonathan Hughes

it. color much I you alright, appreciate very thank Yes, the guys. for

Tom DeRosa

Jon. Thanks

Operator

from comes Joseph question Citi. next Nick with Our

now Your line open. is

Nick Joseph

sticking Jefferson Thanks. expect in we should Maybe from partnerships, one. XXXX what just the Tom with

Tom DeRosa

we of the some of hopeful assets will some on. stage joint is the in you that will that of their working would will expect that XXXX currently with that of That you Well, into first I venture They've so go see identified a joint we’re ambulatory are around year. venture, assets. kind them this something see

the piece into bringing greater then senior Philadelphia And it next is of and Jefferson's portfolio in housing the post-acute region. services our

We have there. concentration a

end very XX,XXX high XX,XXX the and mostly housing keys pocket have live lives of a that here. Jefferson people in to that's of are paying senior out one population important of We lives, particularly is to

I a think – with have it'll large senior be going they happened to because housing we more respect derivative It’s start system you're think such be Jefferson I start in to portfolio. portfolio. to and to see presence system but our are health large it'll a already, scale, start to

expect I’d in you'll XXXX. So that see

other our the more term of longer focused. relationship of Some a bit are aspects little

the about clinical, you heard housing types those – hospital Concepts no that something primary about that, on, and might our communities in model. us them know about talked that again a I include very out of Jefferson a doing healthcare talk are focus together. being Jefferson to we you’ve very co-located much standpoint that's know we're talks like and allowing push looking services Clover with is of what actively care from You That campus know products their is outside you particular address. because

Nick Joseph

you around Shankh, Thanks, cap that are And helpful. then MOB can driving you've that seen that's just on then there, rates those put rate compression buyers some who are down? cap numbers and that incremental

Shankh Mitra

not I mean, going numbers. I'm you to give

in You have times. seen recent very aggressive some trades

or closing our real look with at transaction – about, have talked to month six everything estate delay. you You should we're you know take a nine what again, if in

should we we right. the the REIT think and made nine six back [ph] So months during of that date ago, sort to about announcements

priced absolutely head pretty we to or investors. gets the low ROI X is So is have times, – bogey that REITS, that think said X% owners, lot class, makes we the institutional know cap class public an but to several we or tight, as that don't somewhere they of and name our that are for want X if on down. A no unlimited specifically close the someone, to asset whole our private that sense coming basis we, think in rates I that equity, are we asset point X, you

mid-five, away. pricing there the So stay we’ll if If pricing of sort will remains gets active. we the be

Nick Joseph

Thanks.

Operator

Our question next Anderson with comes Rich from SMBC.

line Your now is open.

Rich Anderson

Good morning.

cooperative I to it team to the you peers I'm and involved of get we’re on you just were about reading the field. like and same went So discussion process that kind Tim your I through. wanted seems an talk involved. store know, maybe playing you don't in and maybe equal a leads

that describe, ups the know, that Ventas TEAK what to namely in among future, were of just a you is agreement there in more have in so in weren't environment there do get point on that that chance some we get – if your topic were specifically. of of you with point agreeable a the you you didn't and peers, the exact three Can fact sort you where a at sort we'll know of you you hold sort this

Tom DeRosa

Good morning Rich, its Tom.

Let if additional see me has jump any in comments. on then that we'll and first, Tim

adhering the store Welltower reviewed asset policy to By MOB to housing You policy the this and our policy I’d policy at quarterly years way, all by that senior that and a committee. audit for across say know types that is applies beyond triple-net our same and others. had Welltowers

which So performance the stronger assets you much the yes, housing about to has same our senior you versus mentioned. to chatter with policy, significantly others I the of store suspect do referred

dealt the Look, problem speaks our the fact the year, report quality hope we that the we today, three throughout with I results years we over earnings reported that our children that proactively to and last differential.

in have are number business, we senior that a at of And had to that very posted focused can exist, development Tim look that, to very ones that policy can a the so place don't talk about take buy housing you years; different the the and type saw so you you we like for that are we’re we're close build we'd driving to that, a business, process. who a we them assets we’ve

of matter discussion. a portfolios senior this we're that think not housing rest, are we terms because putting in hope talking necessarily productive here to it's So I I apples-to-oranges and don't

Tom DeRosa

comparability tend it Yeah, [Cross investors the rest seeing of think transparency, alignment Talk] conversation, the think some and is You you're information bring more intent to around to the positive I that. from that and you know it, outcomes I of the

of we portfolios. to our kind presentation put as to know a need, information of from familiarities investors that the it pertains is the historical commitment think the policies provide I or they there's policies night, our what to between – more our outline see particularly you'll continue with and lot of last between out differentiating quality

Rich Anderson

like so shop just the Okay, portfolio total portfolio. versus

Tom DeRosa

have across and all you does our of because Welltower that a of our to is consistency is last a asset that know that having is think I operating. of what buy approach – Well part of posted cash business that total the gives you night that how that we better guess, what – you types our I the – our right is and entire of focus portfolio the is flow total our exposure portfolio of view the we the it part approach and so ideas in morals thought just

Rich Anderson

early that the and you fact and an you to way you work two life hoped, things in the have but mechanisms protection had example sometimes negotiation dialed at have Okay. work conversation don't or Can something generally. one where said Tom Do out, business and give the that’s investors. the where in your you didn't downside quite happened? protect of protect point has you that mind the in in out

Tom DeRosa

to the – We Yes, pull able call, is operators to to downside performance reasons better. that, go outperform performance but to with this about one you is call our know not people driving hopefully the going downside you out tell arrangement incentive I able you that when of we're work and going that, lever. be specific the that's into protection. versus any an you to the specifically but will But hoping wouldn't operators that's don't our protection be tell right we I but the give on yes, why that I'm

Shankh Mitra

call about on think call, changed Rich, It people business you on participation. is we the downside that offline, provides this but talk significantly inappropriate an for the out very how is. an to also but out It’s what ideal I and trio protection. have laid structure can much upside conversation to

you right, is very example, housing, about but give don't moved senior about think from – essentially is half. done of just it's money know the level, which we or that? anymore, think we where about to If operators you books, don't away obviously to OpCo we make think in which have easy you loan how have you kind lending another cut this what on know OpCo We I'll at lending loans our why make money

should if box, know a go It's downside to you that take protection right. will you you asset or that lender because able in box specific over don't be a things be if that are

a are not own We allowed REIT, to OpCo right we’re an completely.

fundamental idea are do we the you loans so of kind know flawed, don't this that anymore. behind So

line has our examples have some those why as that about, see that's think gives But down. we’ll So two with what you offline. loan come speak sort anyway, of that in to to boo you hope idea you I just to

Rich Anderson

good producing its to I mean here that, had producing so all downgrade are ProMedica, example there, put know the or you didn't on the which are I they but the you thought Yeah, you starting X.Xx is yeah, and over Xx spot versus know point. but coverage you

function be Well, one no to… It so fault them. wanted think of to I that So you would that setting up. just a guys just example, was I

Tom DeRosa

parent at That’s a protected credit that credit by the transaction, level. the we’re

Shankh Mitra

good And health which is mind. business know system, extraordinary you but an of example has it's not-for-profit organization this a very

insurance the Justin seeing happened year tough what really business and exited calls in you’re If business. last have and they taken

right. holders they see executed did it. their in that to that said They it, don't bond lot of they made and not-for-profits generally You a promise they

at it lays presentation JP that back go healthcare look you out. presented the and they at If conference, that their Morgan all

to our very and will very, a are why good that's example, with interests that So see them. we you grow continue aligned will

Rich Anderson

a for that’s from outset, And know, didn't good coming who it like the much so you guy at very so you.

Shankh Mitra

Rich. understand We

Tom DeRosa

we Rich, Thanks it. appreciate

Rich Anderson

you. Thanks very much. Thank

Operator

next comes of Our Bank. with Derek a question Johnston line from Deutsche

Your line is now open.

Derek Johnston

structure converted assets the also, not details, to you know The to sale. give have were to and already subsequent Good million your converted portfolio you Can morning that some of more been forward slated us been for including what percentage SHOP SHOP percentage everybody. they operators RIDEA structure? end or what had the X.X going $XXX is new then these quarters of

Shankh Mitra

an Very and RIDEA in X.X is. you the good not about of so too I is this investors. get this second a portfolio then smart buyer this transaction and extraordinarily very will institutional well-known tell portfolio the thing is It’s a in that much. question. much tell you of process, into transaction going the very I to you will what Thank I'm not

do and of We business for have them places. of respect amount tremendous a lot a them in we different with

of great transaction operating. their our operators we to going that investors. is X.X think of this this So that transaction operators today plus for for are only RIDEA fantastic not and us, be XX% a think About today number is we a in

Tom DeRosa

structure perhaps add That Derek, may quality that to that interested being is, what RIDEA sold high by that perhaps. was in Welltower. when an X.X indication portfolios not you operator a I’ll see be

Shankh Mitra

general a As comment?

Tom DeRosa

you know and general that's we very, portfolios should consider sell very a are to to choose why estate. as something real be so of might look As comment, strong that you portfolios to some

Derek Johnston

Okay, very helpful.

time the think health switching quickly guidance. of store growth. noticed assumption the to systems, X% this I I you're is first mean I NOI including Just same in gears this

rate ramp early of guess be the So I will time, possibly while in know and days know is the term you feel rates initially system the lower the and is you over growth the health the question systems? what out health growth build do long maybe you

Shankh Mitra

it, think that obviously, is So a Derek, if so that is you ProMedica it’s bucket about bucket.

July As XX. its was you transaction the XXX. I going the X.XX% closed -- we believe their know X.XXX% and forward Collider first year on

and XXX, but XXX. when full have XXXX get you to a of the year you mix get you will a So

Derek Johnston

Okay, great. Thanks.

Shankh Mitra

the So is part the XXX, going year of part forward of XXX. XXXX, year

Derek Johnston

Got it.

Operator

Our with next Morgan question comes from Vikram Malhotra Stanley.

Your line is now open.

Vikram Malhotra

referred of that different type RIDEA X.X and portfolio. the you may existing described you've multifamily is housing of how asset employing question. to of Can building. and structures with you about competitive you other to a asset the the curious some as BC done classes think the this market as part approach, sort started that barbell just you that you've be pricing, similar talk of in what of the taking senior classes, just Shankh barbell breakups, you can obviously sort the for Thanks but

think terms Just differences, market kind through to and in pricing of about us of that walk structure. how terms of in

Shankh Mitra

level describing to of high sort basis I meant what you be a I'll barbell by approach. Yeah,

that’s you the a just market, about but you on all and sort sort of or across unemployment think you metric that you across given across the low whatever is a for you is up. wage Whether move in end speaking a minimum the to market wages know that or lift been pass general pricing board. have think If perspective, of know about on happening inflation purely because just if happening the generally wage markets, been $XX labor somewhere from closer of going high that's can a

there's certain in case jack markets that’s going you to understand you rates. In so up wages want to not up are end many right. They can rates high just consumer your and are you're them that pass the markets, understands you consumers people That up meaningfully. and because their who jacking serve

talking so have about higher lower I'm low a a rent you where market where don't margin. of It’s sort is markets other In lot lower the end, people. call of service model, we

You're not sort impacted by that of people the much. inflation the and of

the have towards yet the $XX, price somewhere move don’t you $XX, still you that. So labor justify a your problem is in the and $XX, know the we middle facing that to think

the sort number market, has growth have much first time they today towards a is than a irrespective labor That pretty been. higher of been seeing we're much of dichotomy

providing can one-to-one past markets, we’re a sort pricing in you So care you not you got to concentrate low are on that do service that’s to markets or are on. that you where and focused of the be have hands-on of you so sort where model,

have these Remember effectively you where service are your we're of the to apply question, That REIT and a or the of type third a apartment can have own assets. kinds for side? apartments of those lower control. not complete RIDEA assets, we structure what you next were what asking own not. sort and for OpCo Addressing on are We doing know allowed get does we is a, to where don't a seniors’ into X.X as model apartment there

You level higher there. of have control a much

Vikram Malhotra

of stabilize, excluding? out, what they missed sort post development in you have point basis of sort growth clarify, layer And mentioned it. delta same late. laid you just you I portfolio come just this. dialed Because onto in could the think applying Tim, you may stabilized say Can Great! you properties I then clarify, store you When then the quarters. that and the are XX I five between

Tim McHugh

Correct.

quarter, they – duration into and went is nine in don't based purposes in So five that, properties so stay of for the – got we post I the don’t prepared they for said through some what until on we come reasons we quarters pool that. and stabilize metrics developer my remarks this for they are a rule the

hit but So point. that with up the the is bunch that portion stabilization the those non-stabilized haven't same made of assets portfolio of pool, store

Vikram Malhotra

quarter, number for The okay. XXXX? is And nine the stabilized what

Tom DeRosa

our XXX XX. is XXXX number stabilized lower points than The basis

Vikram Malhotra

you a then curious one partnerships the Okay, health sort take. shape kind of And lot Tom long I’m what of types to partnership as – last may one; see were backs – you more systems, sort to open do the think you of being took. systems What that the this push of Jefferson great. what you've sort this do would with as sort of how talked about just how of just know be and partnership?

Tom DeRosa

amongst involved. Vik. time, very a a is take credibility question they internally time, establish and Very right like also Jefferson. with you're the one so it. looks that the partnerships them and These management now are credibility myriad put good and quick of to as you the made stove on need deal to relationships as have that And we that number responding think a Jefferson. team, board and well of know But with, that are are – take of an there's things I because successful Jefferson established these with not you RFP the These there simmering boards nuanced you of had relationships people that long and

high part tried in by that the debt health capital I most has to the that fact served debt We paid better plus the truly be them raising mean back. will believe is AA the systems for they're remind to markets.

We in but grow. low the oar so. a to help have market, term advantage won't take of rates in them interest Not long water we're solution debt offering of the another a them – we're they that capital, just

partnership you there look different. a have bit would and I some been that may look that relationships might some tell like the some are Jefferson we developing

tuned, that this – very actively actively in for years. is we've we're many say just stay engaged would So an I but been area

Tim McHugh

one thing add just I’ll Vikram.

you a healthcare If lot tag think systems have a health still different of there confined it, know about systems approach believes walls be versus four more delivered more having to are will believes them primarily the hospital probably and sort health see should a they needs be live community who of in in and it the out you of and or of within and healthcare will the that be of health that wellness, will you to comprehensive a so people where partner.

Tom DeRosa

well present. just If This know an that it's capital, very to think just There’s you is why proposition is RFP that cost-to-capital. maybe does be about a how we priced and cost-to-capital is us, through and low element not of off-market business not that an value out Yeah, cost our it's we're about Welltower. than if to cost-to-capital. get the lowest sometimes way growing broader broader a we're of It's that's and why business. some we're the growing transactions, growing have anyone because health that might capital, someone but with going put wants systems I beyond that's thinking

Vikram Malhotra

Okay, thank you.

Operator

from Jordan next Our with KeyBanc question Capital Sadler Markets. comes

open. now is line Your

Jordan Sadler

morning. good Thanks,

you to into talk second, that moving spreads renewal are the increases guide Just shop portfolio the new for the for versus XXXX? a can about baked lease

Shankh Mitra

think expectation partners building. partners, that Jordan lease spread is you get overall The strong. our pricing we're differs between trends from to your remain to new above tell and will operating very – that we going just operating know renewal We'll our pricing building to

impossible by an get just what into price care task know usually labor that, you it'll small increase provide people happening market. but justified exceptional is which communities, in live be is So that the speaking, don't you for to of know exceptional a our generally

Jordan Sadler

what's upon probably of sort granularity if NOI of happening So, store But of could I across in broad same portfolio, terms just you I mean terms on disparity, lending mark-to-market of know performance releasing? you a thinking, offer there the know any portfolio. is I'm the pretty there's across also obviously in basis kind the the

Shankh Mitra

you points negative double so an me I'm of disparity. tell perspective, talked to here. know – picking about disparity the digit mid-single I NOI the about positive operators end right, from and digit not Yeah, let not the just you

big Just give there, talk pricing. you a about pretty difference let's granular the

and X X.X% sort the to you of the of of seen range. people operator spectrum. seen that that has pricing lowest mid-X gives one A operators you have pricing sort one has range. bunch in X%, sort of the of have but X% seen the gives who a X We That seen range to in lot the range. that of X.X%, sort of broad the sort the I've have of

question The cost overall is mark-to-market. second you asked on happens Remember on an what basis. a

You come of that in at time level. goes Over right. assessment period an up, assessment a

a making say So levels to from a of eventually care perspective to point. you X revenue up are there know make this and X. care I'm to

Jordan Sadler

it. Yeah, get I

Shankh Mitra

X%, X%, person You into the because always a basis, coming of the X.X% mark-to-market but at you come a pricing X.X%. you different in know at know X%, leave care right. There’s on next you a on

higher is come anyone, the the so on negative. seeing acuity try mark-to-market people we no a leave, to lower acuity from side and always what to So keep we’re – have but this – is when so level so the care residents we same, seen, secret in,

of On what I talking rent the told side increases you. the cross much right. there’s real about, The board. rent side. talked that market on the we’re sort side, I'm mirrors I've rental Pretty remember mirrors pricing two about price what seeing The estate

sense you of happened. a that So gives what

Jordan Sadler

from know Would place I'm portfolio? on impact if know basically same Shankh, the across share is NOI what you folks the store just with this you aging data you will work you you seasoning done sure you've team. in grows,

Shankh Mitra

I will.

Jordan Sadler

care of rising. Acuity

Shankh Mitra

will take with you I my Yeah, and that talk team to offline. up

Jordan Sadler

you nothing pointed and out and/or terms quarter. the your these just across coming recommendations regarding in PDPM, with what system then genesis reimbursement April. comments conversations Any come seeing in expectations basically health then one CMS perhaps obviously And tenants/partners you're portfolio with for other, Okay. just in the Tim of from early

Shankh Mitra

think I the too early to is, what’s PDPM. of first so Yeah, impact it's comment on

into in we is understand on do take not so know that rate do – I have engage is we So the that then not different pretend and to that’s I'm different and you going platforms, time going that's that is sort what's why and different first pretend it – we’re very impacts, to will exactly on. impact know I why will sort of did. for something, the you increase and which We of will we exactly don't to in that this that basis, tell CMS structure expert annual want not. we the [inaudible] everybody way

been that will we’ll we're you you given not board might totally category, across we seeing from that much business. expert, years. and not civilization are remind That I stay obviously of that what the Second just pretty under that or as might told be I I business an generally for said, attack speaking has years away coming.

over I think last sector a that. our the two been understand years. regulators There’s filings lot of bankruptcy that in

you very needed much factor. that partners very a will system a I and sector that tell that much understand is of health that is think needed our a regulators of

zero on and or happens negative, will positive whatever platforms. reasonable think insight be I happened, different have impact have generally and whatever will an I

Jordan Sadler

I’ll the Thanks guys. Alright, floor. yield

Tom DeRosa

Thank you.

Operator

Dennerlein next of comes Bank question America Merill of Our from Lynch. Joshua

is now open. line Your

Joshua Dennerlein

Hey, good morning everyone.

Tom DeRosa

Good morning.

Joshua Dennerlein

I’m new involved of guys the in Yards. Hudson site curious, related how were you selection in trio the the development

Shankh Mitra

one specific The or general? in

Joshua Dennerlein

these like? kind leading just guess on you are These consider.’ what on that it curious team front. ‘hey, like, I what’s sites. charge Is Just of your should that are the data partnership good

Shankh Mitra

team or they good site a it. what extraordinary professionals that directly. find it an related whether are data you process. analytics we developer we’ll So two-way they team who particular is the we tracks led my find typographically see look looks works process, look who at related way and of that’s different by at demographically, is it with this vertical. like, works, a is run an this site this know the sort of have the [ph] why will leaves the what Then we and with do way generally extraordinary team Brian process; two Brian Chow It's that you

that correct, our it through we process give through example. look I'll site, that we possible site at – an then do you’re and goes every analytics debate. our But we you

we pieces several get so couldn't build. to DC, on For actually far of past parcels, example in have we because to what we're trying

a data is of our on So obviously of goes the front there end analytics lot and is very much beginning. team making that a very part sauces that in from the

Joshua Dennerlein

Great! Thank you.

Tom DeRosa

Joshua. Thanks

Operator

Capital Our next Daniel comes question from One. Bernstein with

is line now Your open.

Daniel Bernstein

– and Good independent morning. the go you back the with maybe businesses made to to living. owning about know your operating senior apartments wanted comment lower end I you

of sector risk in think do versus and creating competition You think know equities, maybe private building the and own How the that about brand segment. space, there's do that your a you Greystar, lot you how the within the given apartment of other about competition Welltower Carlyle. opportunities

Tom DeRosa

the a other where not doing what Dan, So $XX,XXX may of at seniors referring living premium incomes be of of in, bring housing, talk $XXXX very of we some a to accommodate country population. a a addressing assets for the arc type have these than of currently been at of is demand is in markets people we designed rents you've and less a that we but a is A of that product tremendous when are are There markets living we own this and that multifamily product, that year Welltower. for you about there the surprisingly know to XX% in the there little lot because in safe is live with aging unmet for sells month. $XXX independent and to product, market will independent premium the a opportunity to long need to that

housing, are advantage this and with able when with a is class. on can at that plan, tuned create live you because This environments that live to hopefully to in. we your stay own. when never and that housing that's there, point Medicare brand we're are And the for doing is these asset about will be better connect really for in what is the you payer, Welltower plans, sector, together and opportunity going seniors new risk this reduce afford population that. This tremendous to Medicare a people help senior can to we advantage population There's a concept housing a them least work can

year. You'll hear this that about more

Shankh Mitra

thinking on Dan, with if you but at and and time, sit focused to Ayesha runs York come understand we the New about, high-high not talked of how business. working and same end business, that the have through we're down who we problem are the our exact Menon, over some leader point

about So that. to of focused the point, high $X,XXX, if expert like business, end but you on my understanding that $X,XXX think $X,XXX, on $X,XXX, is and that If a focused I understand I product. an they end product, you be about something Greystar’s are Greystar talked product, that you pretend it, don’t we’re in the very price lower know high different the of $XXXX; it's correctly, others.

Daniel Bernstein

of cause is AFFO and or and that's actually some are York. driving might I will occupancy, extra MOB’s the that shown MOB’s and next little have the other anything any helpful question, to a that that up you understand occupancy. the take get offer FAD, demand really there to to there up that occupancy. your simply you is locations New TI, on hospital bit come drag improving that That’s know To you One on away quick to giving the

little Just bit better. trying a to understand that

Keith Konkoli

are historic into Keith so Dan, tenants additional expenditures capital actually this I not get is giving say, really any our improvements Konkoli. we're spaces. to CapEx experiences, would away our below or the

We’re really just very focused.

focus is I team just in Our business, in market, the our driving increase say canvasing is really the would market, what's really on occupancy. resulted and in the activity our it's really through

Shankh Mitra

at in next thing you you get to Revista. billing one what leased. hospital is of I that being saw I your implies, question that right Dan, sort them the tell will

that heard have MOB’s is what is on saying are probably on and the industry me do campus the aware not You panel, the going. industry that we believe

sort horse no this of in have We race.

healthcare We that campus. do know half healthcare you on off believe in and are roughly is and moving roughly roughly is going. real people is to portfolios where – campus Our consumerism

wrong, future we class of asset-by-asset, on just to the is to that to going need just stride that and Right believe MOB or relationship-by-relationship, system-by-system, be. our asset we do where for, of think view want I view. our it sure not make understand that that's healthcare sort So don't but campus that don't. we this that’s model the We is is you

Daniel Bernstein

at think and Thank There hop color certainly off. so. appreciate I I was as the I’ll view you. Revista the well,

Tom DeRosa

Dan. Thanks

Operator

Our from Carroll Markets. Capital with next RBC Michael question comes

Your line is now open.

Michael Carroll

need or type thanks. do most the you some it? that build of that call. throughout of out Yeah, guys of or product What Judy little this should Shankh, color been can really talking on Tom housing exist today you have to we senior product investment Does you provide there? about expect

Shankh Mitra

we’ve $X.X to We the in XX-months it significantly have call close invested invested last, billion.

our Some actually in of last actually has just of exist and the team closed a Vegas products assets couple of three recently, transaction weeks. the do

a read of that targeting the we’re The of for we you from address, suggest actually lot idea, we these, was were do willing your saw ago what which years so but know the not in but the would these I have see when absent just see about development, market. number volume trying much exist, have we don’t, from – that products acquisition did. you target, buy to we is a give see of we don't, and days because price right, will we're been saw acquisition, that we point that you I'm would I which not but say two a the the most one terms idea, you'll important of We us, to you targeting to expect we call. people

There from is to already no we all year. It this indicated market, target I get in are IRR head probably that you, to. to driven trying model. is our an we’ll the absent portfolio be

a So, exposure. I that's trying you understand solve are to we to an important part, that, not very just want for

are We capital. trying invest to

We are deal investors not processor.

Michael Carroll

of how is you you on mentioned How That have are do you product? and the know do focused makes I now think I are many sense. Clover operators this? have right many I focused on type operators Mark. that guess that

Shankh Mitra

We have of that a bunch in are discussions. relationships

early others. are there on with. how to comment but be Clover, obviously many people that business will mentioned Too doing You

this that we as you are I year see of conversation. the assure will But more You rolls. conversation can

business. Ayesha. be the give accurate I Dan, to come will of going and As able She of with you much New view sort down over offered what's to to in more York, broader sit on

Tom DeRosa

year will be say later know area I of Mike, focus Investor an our this Day will You would this that at present.

on you'll deeper this later this a dive So year. line get business

Michael Carroll

Thanks. Okay, great.

Operator

of line with from Okusanya next Our question Tayo Mizuho. comes a

line now open. Your is

Tayo Okusanya

morning good Yes, everyone.

Tom DeRosa

Good morning Tayo.

Tayo Okusanya

Hi.

actually Your you and initial know start up to least net to has guidance guys you in dispositions a the acquisitions year. set as at regards seller,

sense. you're a but I makes your amazing seeing prices of these that’s surprising the also of think given cost same of again, on lot kind getting somewhat sales to people, of time perfect some just capital the at

your question now you of you of yourselves kind the you know on by kind months on still the you see have yourselves positive the of of So year but kind as of given mirror, or of buyer front still you do end still the do for see could if net – that do for you kind then acquisition a see from through is the net I sort guys XXXX. XX commentary you look seller backward, think the the

Tom DeRosa

XXXX? guidance Tayo, morning, now this we just gave you XXXX want

Tayo Okusanya

at I to XXXX No, look going what is mean. was backwards I

Tom DeRosa

we from think Okay. No, I that guidance. give you this how know

optimism Shankh reason and on is not on know because are capital cost that to so they've going that going to you funded. going but to, a speculate for not and the spoke of acquisitions not numbers before are We acquisitions business, side things into put we're big been the have dependent certainly we to

saying there but in that. of in you're there's process correct we put the know we're certainly, reason of we control So part sales net you don't under the and of anything a buying we control speculative stuff reason kind we the contract, in sellers,

driving you're currently got that but will would net outlook, So what's an that driving the we you've our correct idea think is and that’s seller. what’s current given net be backdrop surprising likely that be our it sellers, I numbers,

Shankh Mitra

the not Again, dependent, the is stays dependent, significant capital current of very capital markets opportunity very, a we're it I is be this end it by return is dependent. if If year. where it would surprised net buyer markets it is, but

Tayo Okusanya

Got you, that’s again helpful. And great pricing. then ProMedica,

going fact maybe monetizing amazing In pricing Any more portfolio, forward? of there. thoughts the around

Tom DeRosa

in going the we and point not sale. happy with the extremely there we trying continue but of remember. very come happy was with conclusion we’ll that. like We it's an advantage the relationship, that’s are was that same of, we that the extremely, with with to speaking, generally take up we to ProMedica that comes opportunistic even should and to If that relationship, But obviously Rich sort relationship unnoticed, was the are are more do point and will that,

we're just We only We not own this of real-estate, with the owner this real-estate. ProMedica. this own real-estate

XX% are and are you they they owner XX% We’re know owner, are are with we they pricing people. happy as as very sophisticated this business

about we’ll we thinking see they so get I So are, are same that the where thing you and to.

Tayo Okusanya

thank Good, you.

Tom DeRosa

Thanks Tayo.

Operator

question Barclays. from Valiquette comes next Our with Steven

open. Your line is now

Steven Valiquette

taking good the morning everyone. Great! Thanks, Thanks question. for

comment senior perfect it. per to like is the have that you for of compensation but in trend trend come hopeful occupied the which your obviously to room flat kind were sounds visibility you stay, It on didn't would improving Just back on encouraging. housing,

primary drill some improvement, just traction serendipitous you to bit of think specific it too a to or that deeper those it's just trends. whether declare early victory some in programs drivers I the you on a getting just wanted related maybe to guess are or it little are where sustaining what is I on early was

extra any color Just help. would Thanks.

Shankh Mitra

was my trend you understand comment. sequential It comment. want year-over-year know said flat. I to not a the on was I you labor much. very sequential you Thank on cost comment,

perhaps You want a that point and labor not just My on you sequential the was is know, that I to derivative flattening. second somewhat being perhaps, is whole do of basis think growth cost flat.

guidance. four, years a put have combination that still we specifically said, maybe not last is So that’s is it that going in seen. five is hope. have hopefully It that big not – going as is and big number growth did that three, we time, a I our the rate seen of what be to the bad we in as a

if to said. it as an that, get be our upside numbers, it model serendipitous did So you but because something we not could obviously do will just we be that,

on. There is a going lot

and back I quarters technologies out we're different four ago, platforms. talked with about go about you If operating rolling different that in experimenting

of you reduce I XX%. our Sunrise that has specifically largest their know helped of the mentioned turnover, I offered such one think use to one

I _ we the will sort not that's on trying through trying to to Tom. are trying where hands of and we our to get outperform somehow to technology So and sitting are market, add end. is

Tom DeRosa

saw XXst ago have will will industry a collaboration this will you help the the technology anticipate that few how this monitor have housing that in population allow efficient able one more no This manage with over hoping a put we – at about senior technology has months of Steve building and to needs We're seen. Phillips out which needs, around their time to models be ever the us population. Welltower that press Street. that release labor

that's such You job, board management I to great every the good remember thing; remember when a team I And They thing, have that came two a I ‘Wow! the that's this know is CEO here, sustainable. to be the and thinking good when operator. this not saying, is resident.’ FTEs took and a I off not

cost can of technology. is for we at we looking do a we're so labor, answer and and of and experience improve only resident the And it care how do think lower

know to And you is have great example the work fact where going Steve. to look I blocks is a at, a we're from which few just

as company. excited need summer part So the we what's have but we're of early a have about do part the happening That's spring of chance in a see to there, we’ll we what that. you to later think

We of tentacles been the more has really not industry, stay something continuum. industry, using it's happening operating part happening a in are that. is is in historic because the and challenge advancing Welltower healthcare relationships not the business, model become hospitality what done. happening of the essentially this. for which so tuned has This That's to its we've in was That

Steven Valiquette

page the which year-over-year, is can compensation, Okay, three the X% numbers X% up also definitely on then raw, part on bit sequentially the see on of I to gets flat I than about way. a by and got dollar mean that’s kind X.X% talked about. the better the you supplement sequential

that really wages Also PDPM, at in therapists little a them of that do a tongue but assisted the general or thing obviously a of and on living, not But cheek off overall it grabbing the to skilled was supply in re-employing just final around lower I it’s suggest skilled could be you're factor. at bit labor not are maybe in being the subject, going you that the nursing think least because simple. laid all factor perhaps dynamics demand sector that's

Shankh Mitra

an and and no from to connect area they'll an away I'm we’ll operating comment. those away that partners, from in I'm partners not any that with I want connect Steve, expert in you the operating that making stay – stay means you that to CEO of pretend happy but I'm comment. by area; with expert our

Tom DeRosa

health caliber direction I labor continuum. are you see, of you seen more of in there answer senior systems there's It few the But nursing names that because tell actually of a credibility, that, properties when care country the of extra an a part as they level their properties. moves what respected have highly also and these will also they system. housing that force, in concept see properties skilled is want and attracts senior that this on And you associated with healthcare the – a to have are housing being health just different

them So better because a and times people pay they broader to less, property force associated. see often a attract being have it does value labor

I age we payers, our as health homes what and portfolio being direction, are So this that collaboration system, we the at and country we in built now think exist still start have being understand Welltower from over old that to that’s by business that all legitimizes more towards the still do. the the REITs, you invested move with types just in of

value We we're part of are in here a and much the chain higher driving that.

excited this, headed. this say I so always where is stay I we're but again, tuned. about mean So

Steven Valiquette

color. the extra appreciate I Okay, Thanks.

Operator

next Joseph Our Nick from comes Citi. question with

now is open. Your line

Michael Bilerman

couple here follow-ups. Bilerman Nick. Hey, a just have of, hopefully with its Michael I quick

the sheet a the comments the little today given highly bit fourth opening you of your here being about balance in talked Tim, more – in timing the of terms In deals quarter, by you would the if you to then to fives. the forward there, summer that’s and the you have guidance effective disposition more then and forward the take high mid which them get

sounds How this it should going there’s point like net investing disposure. we that net that pipeline, a think you're with and here of end not on How forward? the of $XXX think million optimism up the about, should funding lot to we about from investment

Tom DeRosa

Yes, thank Mike.

to that will which is is it I all if acquisition to end that larger think saying end guidance a in real or where up, in may being my net we comment question, acquirer, was relative being that it disposition is acquirer, where towards a up intention prior time. the this we on where directed going net fund my we're –

bit you buying talking as can bit more but of in assets, a count leverage selling you're on report of you year, the a in So times on more choppiness further not there choppiness it, are any in about when us can of recycling is lockstep. selling capital if investment particularly you have just general assets, metric side, that we a kind being any capitalizing four

year. the up So, disposition around net holds side where you for should our My of or end on leverage assume the that acquisition of leverage. we language kind list

Michael Bilerman

today,’ your raising and ‘you very it's of to leaning. portfolio stock because look accretion obviously implications your market so say, on into apt you see the or today, is you guess we so what, hard selling should trades your has pipeline and proceeds equity push sort you deals more expect into equity different can and you more given let's sales the – that based you Okay, this those acquisition to a big close I do what today down noted would as take forward offering, where assets now which way know were are and

Tom DeRosa

asset value for them. think by being is, about we think that the the sale are we is in the driven of that I know market way that the that you seeing

think of value assets, it's we for been kind continue And equity. sell so if don’t and there there opportunistic is to we’ll

fund on, position point because this selling been long stream on from term. accretive creating quality have high been earnings and of through it's assets assets. is selling sustainable We’ve to been not it’s accretion Your much we a that more, dead more assets because

are to the been has sell driven at. So decision the capital not by of kind markets where

been fact and was but been counter recycle, there's my remarks, continuing [inaudible] that part how In that just to get that try it's from that – cap we to we’ve we point think of opening or are the is is know beginning this to are aware it the cycle and right we the that. the you that’s we move but and calling end very and you, not – are is of certainly cycle closer the

per way we assets. that lockstep we and So that the when way in that see the bits certainly and capitalized plays into plays

We trades. time are not trying where to stock value real to relative that our

Shankh Mitra

that, me, a not to a question of cap buyer and One hearing right. is and rate cap a you seller rate near term of are accretion is or are thing I – think rate, accretion from now cap we of tired question it

total return return seller. We buyer and total are

sense are So will sell make to sense a there on assets accretion. just return you basis are term there that still sell to that make rate not near total at – cap driven if look

Michael Bilerman

of Is supplemental. on K stabilization unconsolidated. store versus difference just to going Q doing a I and or of Tim, and XX-K thank same store the methodology? and the guideline the supplemental, in presentation. and rata you Remind does in Right. methodology policy same XXX% between there development a the terms the into currency it differ you the XX-Q, How the put the know back pro in the X% between queue, the that plays for me

Tim McHugh

with methodology differ about kind you of these our at this SEC two and about, look and the same are aligning be we and two at there, those that in docs Yeah, when is policy point. I of docks that XX% made, store. we things rata of points like then no transitions, talk difference. The policies the our There that Those part will no FX talk supplement, we delta more pro how plus the different and impacts between explained.

align that’s years as that more go those we’ll on. the So idea

Michael Bilerman

XX-K. in difference five Right. that using XX-Q and specifically the methodology, identical are quarter the from the that the the that the between role – rule There But and was stabilization you in fifth, in number quarter historically on you four or Sup is item. number methodology or in guideline application or no the the that

Tim McHugh

continuing. we – to and see the but always a ample I that’s and those The We’ve provide Correct! we we you from – of is that if we I disclosure commentary, an to both do come the test out it's the in subjective is five continuing simplest how way We that, going what’s are and based think because our kind to to of think of pools. give mean is conversation suppose we duration impacts approached why results idea. this think reason least that, to committed in quarters are

Michael Bilerman

a Tom checked committee. from like guys on that audit to your and number a answer for policy just the it’s by topic Rich’s sounded of Okay, review and then just question it this years, you you know had less have

other You’ve had discussions the with two.

came of on tea reading if to terms in agreeing that all are to leaves I fair? read clearly there them, you're two versus as to same I willing Tuesday to would not though or you a guys the come willing that at out your seems come weren't they disclosure. from differences guess night. other to go The Is you comments It out else consistent time. have the I'm

Tim McHugh

kind into This say getting played out. that want wouldn't think I that. avoid Tim here. that we of One, is I conversation how to

was more total I parts there. what I investors positive I my getting I and alignment is the this analysts, is goal is basis. earlier, in here. we out that this think there's and But our on certainly that comment information approach think a for think of said that in as stressed think to That foremost there – wanted first was portfolio our I

you matter. So the idea metrics is know

metrics the other. read matter way versus to approach. different the of All don't think value anything approach, our entire I of who into It's to the one and It’s way there's investors. would come to an a just portfolio

Tom DeRosa

senior well. I we very our representation our different the business risk – we those best to policy that said some is housing, it to downside how other believe earlier, performing. so than with are And would what and respect companies, I has What assets we as of is as are our for Michael, is us also a policy we believe say

into new same XX%. something pool, doesn't pool, a drop a in a that might occupancy Because moves a mean development the store year store moves into same

the I to just very policy gives think the others how an not with hard are you we it’s from – play. So upside advice about is we performing. to are best to thought build our trying indication the assets have we shareholders taking that long this same know we mean and and store who respect

dictate So by that in we dominance and we position think best should the stand the given have, that to that what we're we be. the and policy scale

Michael Bilerman

that definition you as [ph] is to the you XXX; are are reporting the from to are stable the Right, effective and stabilization their development, mimicking now still there portfolio, impact a on you Ventas that’s for and or for saying that to be even XXX that the Pete same basis what measure. Tim, of report points XXX supposed XXX differences the down XXXX. that believe store would that’s do

Tim McHugh

companies, to compare that to and that your going mimic that investors – how to side you not to I’m we’re clear make mimicking we’re is is need get across but to number. kind think can different on trying be we to more provide and they you We're disclosure – investors disclosure. the our use allow importantly them the it, so say question disclosure way anyone intension or trying investors – do around what numbers do. not kind else's the certainly our want of most for is to our to But should of view adjustments to this

So I'm that not comment other policies. of going to on to kind compares how

Shankh Mitra

out comment, right. thing would Michael, the normalizers took you basis differentiation I other laid point that just, but the if the One points you say Tim XXX is

I specific of not you take to take trying type So are one, a both. would get you just I to disclosure, would if –

the for the laid impact, next So be Tim would difference XXX, XXX, not that be year. could out and obviously net

Michael Bilerman

whether just trying I I’m trying you was that put see this to call a try together just normalizing to not. – whether year, get to supposed there's Right. was all comparable to stable, producing the by with I to what this, the pieces to closer understand ahead being going to number. commonality or

Tim McHugh

Yeah, I of said. I provide to is it discloser, information. mean The to intent you that's more give what answer the an to more,

etcetera, you, what to are continue hearing we what that’s think provide. from we’ll investors, and I that’s

Michael Bilerman

appreciate taking I Okay, the time. guys you

Tom DeRosa

Mike. Thanks

Operator

Chad Our Stifel. comes with next question Vanacore from

line open. Your is

Chad Vanacore

question. long, since Alright, to one the call it keep I’ll just running is

terms market, managed about your think dealing this can any about for asset it you’ll from Just and like be with you're SNFs market details expansion hit expectations since how risk in SNFs maybe portfolio your the add and some you the we year, seems care, in the MOB see returns. of

Shankh Mitra

you our thank hit very much. not Yes, significantly. did Managed our care expectations portfolio expectation, exceeded it

$XXX at transcript, about call you If look talked million go EBITDAR. we back and last

that’s I one. my so As achieved you number in million look at said remarks, prepared that EBITDAR, point we $XXX

any of a asset that not that skilled buyer be are buyer. a so nursing a seller today's We is pricing we think nursing skilled is, two class, at price. included number Point market hot should we

Operator

Our Michael next the of JPMorgan. from with line question Mueller comes

now line is Your open.

Michael Mueller

a quick average into your the housing going what hi, senior just Yeah think aside, and that they policy at one. as Same time or the look you stabilize these has development are at been to stabilize do urban you will store a faster similar pipeline, projects pace?

Shankh Mitra

We is of call to have between market-to-market it three XX different. underwrite of obviously to stabilization. different, on we depends months seen is Usually product-to-product months sort stabilization. XX It years

in you that have taken a a has XX a tell of months. at long product, will different a time example product place. I different to but stabilized an would in stabilize, matter does It

with to Westwood will Belmont We that in We months. product that years that an it after collapsed. weeks have partner Brothers probably to four Village Lehman in asset three stabilized that’s obviously eight thought take stabilize; our opened

demand when but depends three is, of offering year average market underwrite. we a stabilization is, really the the what is it So what product on is, the the what

Michael Mueller

Got you. it! Okay, thank

Operator

Lukas from comes Street with question Hartwich next Advisors. Our Green

Your line open. now is

Lukas Hartwich

Thanks, The little growth just color left Belmont village been provide portfolio has a pretty Can you for year-over-year from volatile. there? the me. one

Shankh Mitra

see is the volatile. not an sub number. on What you actually It's annualized

is of it four of you look we any one quarter, our not assets year-over-year, you by are in performer most and that at at looking own. So to it consistent is actually volatile, all have you if divide given out

Lukas Hartwich

I ’XX guess, I am XQ doing that, comparing ’XX. versus I'm XQ of

Shankh Mitra

is by four you sub That’s can’t because you is multiplied the what saying, number. I’m see on do you annualized What what an that that’s get.

saying? You is… understand That what I'm

Lukas Hartwich

methodology guess wouldn't trends I question the is, if the be comparable? is my years, the throughout consistent

Shankh Mitra

get wouldn’t No, the was different year. but I quarter-to-quarter was up into can operators, to that exactly. you NOI be. and it actually a tell business, I very not Again, the these it’s can it tell mid-single of in had I a want year discussions you for very, good don't digits. up the Belmont

Lukas Hartwich

Okay, up. maybe I'll follow Thank you.

Shankh Mitra

you. Thank

Operator

Our next Scotiabank. Yulico question comes from Nick a line of with

Your line open. is now

Nick Yulico

What XXXX going the store, percentage senior had that had avoid it number same on some quarter Okay, it thanks. business of just assets, by store actually of or housing about the same the properties. discussion instead but of housing philosophical NOI was for I XX% I'm to is XX% senior guidance and operating. the in captured is fourth your for If XXXX? the NOI store, same on housing, was the number? What a on question of you of operating senior

Tom DeRosa

in year. at we’ll pool. the be be of the pool grow will than the XX% or is to it year will the So back throughout going the be more of end assets By our and

in the in and you not essence piece kind those below one been the senior that as transition they that gets were number of reasons triple-net. housing that's So know what were has it importantly operating, historical of

that back be acquisition XX% primarily will when you'll SHOW and year as progresses activity. that at see So number just grow delta assets above that we’ve will the be of added but you'll kind to the pool, point

probably buy above trends historically, we at So the of back don't kind in or XX%, is well it’s reality we quarter. where it historical of thinking just by fourth anything about kind at but if are above

Nick Yulico

you. Thank

Tom DeRosa

Thank you.

Operator

further this call. Thank no for showing concludes conference I'm at this questions participating. you Ladies and gentlemen, today's time. queue in

now disconnect. may You

Welltower (WELL) 13 Feb 202019 Q4 Earnings call transcript