WELL - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 2020 Welltower Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. like today the to now your over I’d speaker first Mr. instructions] to conference hand to [Operator Matt Carrus.

Matthew Carrus

Thank you, [Dillaman], and good morning, everyone.

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 are Although differ cause results Factors Company that any call assumptions, projected its materially statements Shankh? remarks. Company's assurances filings With SEC. over hand his the in in to statements no to could detailed give that forward-looking the from results the Shankh for are Welltower the on can will forward-looking I'll those be actual with that, the

Shankh Mitra

Thank you, and Matt, morning, everyone. good

these on maturities I of the suite that creation all of the and par cycle for continued our out bought short lot foremost, I basis. families pushed assets, prepared assets XXXX duration of portfolio, growth, you XXXX, this and We paths year-end are downturn. in value like plain-vanilla challenging hope discuss XXXX times. healthy year talent. extraordinary different to review into of our perhaps call, duration In came a to your First and history during QX a for upgrade lot business of a sold management of shareholders and our our operators, would most longer and in safe continuing and We share long-term contract

XXXX mistake the of an continued out on the the would pandemic once-in-a-century liquidity our and population par hand assets team happened quarter the preservation. at generation. diluted half We pre-COVID point devastating record up all that would business. in first time decades near finally long-term profile baby-boomer We raising continuing one the that assets $X and the turn weak particularly and started of enhanced great quarter, or second for record company fundamental in signing avoided share a selling after inflection third capital and dark aging other prices were the dramatically with be are our about selling of for value and back demographics for of importantly on hand from of long-term The by that XX to the billion more of April resulting to serve Then the March for housing basis. managing a consistent a aging on by pricing, hopeful at days receiving shareholder decline in senior during agreement days deliveries confidentiality the starts cash. We from of picking

journey Not our other wheel and the we’ll forward partners move them didn't we to this the Two that We an continue unprecedented eventually that failures, on have with and our including liquidity of in get of steady continued during the hand extraordinary these during particularly to an prices surprised chest. billion of team extended our QX and operating resilience disposition at doubts executed things team we a belief side. me build to QX or times. The assets. $X.X unwavering and but on of of war spite

of I every is it those day blaze this a not is that of counts. miss the famous didn't privileged new courage beat stoic continue final, not that to resilience In of I was me is be Our failure and team Churchill's reckoning, team’s Success that fatal: how realized trails. reminded to quote, Winston moments part

our been hope down the shiny – size, a our this especially gateway that debate have that deserves middle class, of For and healthcare-oriented city say, worst due of for shaking close. that finally It discount during large debt we or shake as colleagues on of important ticket we has hands demonstrated of underwriting excuses again cycle as is a asset feeds. new defense execution In in years, I cycle. and hands, you hands find tower don't we settled liquidity help to away. the started to I walk offence chip the pivoted to real for during estate and If to fall, heard lack the down understand we our that shake acquisition. the smaller from and by to we

we in is this handshake long-term business reputation during our Our and [indiscernible], only pandemic. this enhanced

we last have $X of replacement costs. since of deep quarter value fourth $XXX am million to report billion quarter’s discussed of opportunity. call, acquisitions the closed discount a I During start I delighted to roughly at significant that

I be a and [indiscernible]. of value has optimistic acquisition are shaping we acquisition am perhaps and net that you of acquisition, this Our as driven volume time, meaningfully, At I year not pipeline same will incentivized is the the year sit I of today, here remind it. to by grown up but significantly

ultimate and on four fundamentals. of is indulge and Welltower. the how we'll moment to you for will quarter focus of what into determinant creation value of pillars happened One, the might quarter. Asset happen distinct next this what price long-term ambiguity, I get of behave. operating last Tim In confusion details

While first little operating and virtually near-term all rollout care conducted have assisted about fundamentals shot. clinic vaccine our is facilities taking XX% as awful are vaccination memory optimistic the living residents their the visibility, right we of now with with

the can so of too to of is we early that what you It the keep recovery, shareholders. Normalization in expect the and the our value value creation this timing creation hopeful near-term, be performance comment of trough source you to of frequently but half operating we'll While shape largest of the the I about exact source see remains on I'm the not of for second would very see. posted a year. intra-quarter

of $XX operators, provide, to-date within reputation great of their communities operators staff are the to support and Our our and our the on of the and on focus was despite in excess from extraordinary rates already decline resulting million X% we care, In and X.X% maintaining COVID-related remains they our of This leadership everything expenses Due of control safety lower upholding AL We our operator scale are expenses residents. doing no spared contracts, can spent reputation wellbeing. up the to in independent have community in moving seniors fees some and X% headwinds REVPOR management growth business. local Number building by activity. the in system and the a driven memory apartment enhancement, living examples enhancements this. two, platform holding XXXX, and up. in value occurred of

Callison, Let Jack excellence culture. operations-first Sunrise to we here. with CEO operating two me the operating will delighted needed are of Sunrise, specific Jack highlight Living, attention the our of appointment an partner. largest by much as bring A)

the Welltower as the the Sunrise contract and that owner align assets. interest of We are of also negotiating a new management will

pandemic of We diligently local owner a can Building Sunrise's Munger, position of the to management so with working are quote the Revera, of it from majority this are that emerge advantage [indiscernible]. B) to of local operator business. leading If this scale ongoing as Charlie scale. I Sunrise's important enhance can

list partners excellent grown is expand examples footprint. set have Kisco, great Koji, market. we name significantly together. opportunity is We have deployment Welltower. senior few They the They rise of We on pandemic. are in expanding during will with deep value commented in on To a partners the This and StoryPoint order, housing important alphabetical Balfour, few side. continue with Yes, as just some have disciplined. operators to acquisition relationship they mentioned and and we the Kelsey-Seybold, of opportunity. courageous, them? Number our ago. have that are have Frontier, fall What three, aligned significant the I moments leadership. capital their I most They opportunity an are we Clover, our amongst common Oakmont, already our this strategic scale Brandywine,

As focus of on buyer an remind would basis, record, an incredible sounding that a like we operators I and risk are with broken a IRR you structure.

is to is specific I in you rapidly opportunities. set to hope rising focused opportunity current comment the with provide XX Our on XX days. color next obviously and more This

you Let a me color on advantageous as Welltower, in with a a at We choice. provide more future related of position but partner topic, on never been opportunities. has some

as data focused prioritize alignment-focused equal. have we never capital After analytics years, on growth relationship-based and also all, by operators preserve to is and capital than imagined only rather costs our this today's can platform our advantage. not. businesses, during all difficult not extreme that but to to grow by is stood but For driven you not but action access significantly. is it structures encountered strategy we've and see, their we time We cheap, on stress, Talk

in. For of all this play as reason, a requests we classes are inundated asset we choice partner with from

been like very they we truths. as this pandemic much do have This with is prospective roads on partners. meeting call, As meaningful throughout

then have nine more over deals and pipeline We partnership five next in months proceeding years combined. executed

when through today the strong only example, not these to we agreement years. opportunities, opportunities laying early be tenant. Kelsey-Seybold, gone. for we but entire billion master of recently largest five inevitably development few deploy are our value executing cycle words, give will $XX-plus We of in In growth in significant foundation on capital also with a discrepancies expect years cycle other the next deep To our you of price MOB reupped an

feet, I call, We this looking XXX,XXX XXXX who those focused of square on long-term. talent are touched approximately and to pre-leased start XXX% Number but you me last opportunity. let four, are XXXX. for elaborate development on in

an seeing professionals to early platform from career in seasoned are our incredible We applicants. interest

XXXX. disruption recent new taken in and advantage of XX have We in brought professionals

team our at if many, XXXX. expect We as not in more to join least

to new our taking talent, on reaching responsibilities more addition new In is pool heights. talent existing in

puts had meaningful As which equivalent comp, cold a is itself Welltower. for of partially on promotions G&A, lower farm. pool this a in offset this result, talent out is at by incredible new Though the executive which pressure will we manifest think XX we early growth a spring,

described environment Speaking want is abundantly inside I last into passion make What optimism year you mood of Welltower. clear. this a of I inside has today year. resilience transformed pool, an stoic the as to talent and how unbridled to it

energy fundamentals, disproportionate of crystal have have the work level seeing we about no a we ball near-term meaningful to this meaningful I'll to team over the make doing pass are operating and externally of internally new people but microphone matters are we to create positive it relationship and that We With who be Tim? that, of wants and Tim. value part meaningful a impact.

Timothy McHugh

of liquidity and challenging My results, continuation and a was large quarter accelerated all dependent our its tough and the on of in unpredictable investment our meaningfully and our fourth in to virus-related of of as first update and impact activity, path remain outlook. a our very days for the focus coronavirus the ongoing year our balance of capital XXXX beginning Shankh. limited the quarter end quarter lockdown very business today The very XX segments performance fourth quarter, half the you, that sheet quarter efficacy fourth The of a Thank comments of will visibility as next the finally, and rollout vaccine parts growth, beyond population mandates. the such the the XXXX. back of variables, and into the on

we this a to normally As first decided our provide place in uncertainty, quarter would morning of outlook provide quarter fourth this we outlook the result our full-year call. in of

update continue basis, virus-related as variables have will soon done the a we the variants intention to the to moderate outlook, liable forecasting. providing complete year, over disclose a for allows we of As level the as a with on last frequent and more that information of

per two and and the third Normalized turning of sequentially to attributable diluted in was quarter FFO of share $X.XX operations share. net to funds quarter. income from normalized $X.XX common to of Welltower Now disposition last reported capital. flat per shareholders the diluted lower returns by earnings from in and G&A, dilution housing decline interest initial close expense, over funds, was lower recognition the senior reinvested on operating HHS quarters and offset

components. our to portfolio turning Now individual

lease our First, Triple-Net portfolios. with

stats a reminder, As triple-net reported occupancy a arrears. in lease coverage our quarter and portfolio

reflected COVID-XX. months these reflect So impact therefore, statistics trailing and partial X/XX/XXXX, from only ending XX a

in XQ remained with down on XX% Starting sequential our against having leases NOI in drop were of our declined portfolio. X.X% our X.XXx senior prior fourth due quarters contractual moved basis this Same-store the sequentially XXX Importantly, contractual a and with was portfolio RIDEA received. housing rent collection in that in occupancy as triple-net basis portfolio rate XQ the quarter, the comp to coverage cash decreased year-over-year rent high average triple-net period. collected to EBITDAR points in from continue to consistent X.XXx. full-year Occupancy prior to recognition

increasing triple-net comments we XX in my reflect net reported is periods expect EBITDAR development quarter, and structures our being RIDEA, RIDEA continue reflected to cash continued forward. X.XXx. former to the of Consistent in asset reflected said, by similar past headwinds the triple-net operators coverage assets these triple-net the a of stats of one to as senior the disposed resilience pandemic experienced is to the During transitioned operators to we and challenges this transitioned portfolio encouraging. operators our from new by as rate RIDEA the portfolio impact high housing senior lease nine capital That past, lease UK of going in over collection coverage months more with

I in assets. We fourth transitioned half anticipate third operated first transitioned be into operators five allowed to XX which the XXXX. the exchange As Capital that Senior XX of the agreement by transitioning CSU leases in we termination an quarter paid full of assets these remaining for operators to of were assets with new XXXX with being during the in described rent early in at to operations last the of entered XXXX, quarter, owned beginning in Welltower transitioned properties cooperation addition quarter on CSU new the in for to and

the backdrop, expected approximately share in result the initial per is continued from expected a be dilution XXXX. of COVID to conversions $X.XX As these

a Additionally, in expected to the of also a result FFO transitions The over $X.XX roll to $X.XX per sequential negatively share the from per in triple-net from FFO a is RIDEA development XXXX. to of UK conversion little combination of in QX impact with down by QX. two portfolio these is expected normalized share be to normalized

year-over-year post-acute long-term growth. our generated same-store Next, X% portfolio

to However, Genesis deterioration almost HealthCare. in due was sequentially post-acute EBITDAR to coverage largest which by X.Xx, declined X.XXXx long-term tenant entirely

the ability quarter last As financials our continue going long-term exposure a approximately on second which quarter, raise around half concerns concern we as in August HealthCare, its noted filed XX. post-acute of up makes Genesis to

loans As basis. in recognizing quarter. on cash a Similar we this million the lease been concern, quarter. on basis revenue a interest our of unsecured recording income, a the all cash our to Furthermore, unsecured began third loan exposure result down Welltower we've by in Genesis our wrote fourth $XX on driven

systems, these recognition our So X.X% Genesis XX-month had We and of Care X.XXx. lastly, this joint impairment January. Senior ProMedica was the on on current change growth which all NOI through income ProMedica And loans. System. year-over-year positive obligations coverage health same-store Welltower EBITDAR does financial not remains of to with trailing venture comprised Health

medical office. Turning to

Our be office of jurisdictions below I portfolio moratoriums in rent, delivered lease to which same-store long-term several Growth positive for modestly growth by a sizable enforcement year-over-year last large impacted medical which majority uncollected quarter. the California we in X.X% trends. described from negatively outpatient as reserves continues resulting have footprint

rent collection to As from the improve these expect received moratoriums in expire, quarter. XX.X% we fourth

resilience our of truly back Looking at a managed same-store in XXXX, time, still of to We and not outpatient appointments periods which medical platform an displayed includes positive basic out, procedures incredible year, NOI permitted. in average grow medical which flat challenging were X.X%.

towards a start continue to the observe trends leasing continued in notably pickup key improvements During quarter, business our several as we operating occupancy which to normalize, XXXX. has reflect positive pipeline, half pickup the of fourth in back to

operating to our portfolio. housing turning senior Now

point Act to $X Relief of from million that Health of share. Provider another net million delivering and proceeds CARES result, million, Department at we our $XX the and Human quarter’s want we Before received post-quarter $X $XX this I and Services million getting out expected approximately Fund into received

recognizing We on are a funds quarter were flow so they basis are there and through in cash which financials received. these at

In matched not mainly however, the government We other HHS are operating fourth our are housing approximately same-store normalized the tied of same-store metrics, they million received funds reimbursement the on period that with normalizing there to program funds HHS with these in incurred are senior out $XX.X along U.S. any results, of a quarter, in expenses received.

occupancy. NOI XX.X% from the sequentially sequential quarter. revenue, quarter primarily third of with as to XXXX XXX decreased drop to was quarter. Starting QX decreased XX.X% compared point turning the same-store average in basis in and X.X% fourth Now down revenue Same-store results by driven in

As a within of quarter with our and with occupancy relative optimism improving moving the communities. COVID reminder, we year-over-year the prevalence started volumes on front low relatively fourth

rise COVID statewide occupancy rapidly and of California, UK year-end. points lockdowns, across of the November from loss trends November December, in and the Result but NOI. of comprised this particularly positive these in city was exponential However, as MSAs in XX% through the our basis key which reverse SHO our Portfolio and of admissions bans cases global together many XXX

quarter COVID on stated third has path seasonal dictate from the I will true fourth trend months. our the the our quarter, and call, that not As not X.X the of and business proved quite seasonality past flu, over

and lastly, picture true total standalone senior occupancy growth the basis had combined lower rent units total relevant since in adult, living lower assisted our portfolio positive changes across lower having just independent Decline on X.X% quarter. up The appear units the in are being I more being XXX But metric acuity our sequential quarter, is a the restored portfolio respectively. Turning in operating these down mainly of current more had than segments for sequentially to expenses meaningful pressures on We increased the The the higher increase the reported as declined and cases living were year-over-year departments and a growth which X.X%, independent of X.X%, XX margins, considerable focus The was points expense the surge impact X.X% in portfolio COVID. in REVPOR declined XX.X%. sequentially. since basis the basis was mathematical described fourth with changes X.X% considerably to result of held to shift rates proving REVPOR operating a of front our sequentially. I'll metrics. operating by of in units. and costs sequential as quarter, would acuity in higher costs the expenses, occupied being REVPOR aggregate occupied year-over-year the driven Portfolio topline COVID last year-over-year composition combined our point environment. portfolio, resilient year-over-year The total in in paying mix rent statistics. trends by therefore, flat XX properties, impact as And on points, active is SHO same-store better start are of impacted in rental and portion living have point the total and

impact million in in I to not expenses NPL same-store the not include results, did noted by negatively that COVID government $XX.X earlier therefore, tied As was we period quarter. – expenses expenses and same-store reimbursement our in the call,

stay million received in we've in expenses that distribution in COVID funds offset. $XX HHS will likely net already a our consistent a QX, We and if same-stores net into where with included would turn benefit

Looking XXX forward to the first February have X. occupancy quarter We've with and experienced basis we in already XXXX data point decline starting year-to-date observed. through

our to to tie better XXX Given mid-November the baked quarter. to to expect former that points quarter reported to-date a still in be given average decline basis we from basis Note heightened fourth therefore, providing COVID, swift to as financials, to basis occupancy. occupancy XXX and the presence from occupancy spot average points drop as XXX we opposed of first of occupancy expected point our down already XXX XXX is are the

We earlier, days mix should which REVPOR unit I per basis expect sequentially, QX noted sequentially. rent is actual mentioned and monthly shift, two quarter With it the to actual fewer X.X% reported be up rent although versus REVPOR down that in XX growth. points be is

higher to due COVID occupancy total by sequential Lastly, labor as we to less offset flat effectively are lower expenses costs utilization be expect levels.

pandemic. series flow through or that actions avoided took capital were result business, by to greater worth the destabilization attractive sheet gave cash in on raising the a being navigate assets to retain markets balance control Throughout significant by difficult equity ultimately pay stress selling us the of XXXX, we It's highlighting activity. borrowing of driven our and to ability or to forced valuations. in our the that despite we've dividend the Turning

maximize most we the stability our advantage Given way $X.X with take actions today, deployment where to prudent $X.X over of liquidity, in of sheets being to opportunities. we balance cash sit capital positioning and attractive us billion of course pleased available the of billion are

actions of through by tighter a maximize reducing to addition undertook our optimize fine In series overhead expenditure capital cash flow plans. tuning sheet, and we spend showing corporate cost a to and up of balance retaining controls

highlighting on with on a patient the made also the attractive throughout afforded timeline also recovery, dividend quarterly XXXX removed a be reduce in XX%, We valuations negative for to and our and to pandemic transaction from advantage given the the pandemic and take uncertainties quality decision by high us our impact substantial the private of severity. relative Despite also demand markets, institutional any public to business, actions the opportunity portfolio. May market our to quick market respect dependence while

year, joint on blended a a during Over the sold Also quarter, the $X.X venture announced a properties Wafra. X.X% a senior housing new comprised quarter, in Welltower. we outpatient price XX-month being operating assets when Most we in $X.X called properties of for of Northbridge into transactions previously the per the senior investment assets a XXX,XXX vehicles million, cap Many operating per $XXX,XXX NOI of recently, unit our including course certain medical trailing managed of rata housing of viability pro of senior midst billion portfolio operated at joint we particular by owned billion and yield, estate significant capital disruption portfolio unit. venture representing by $XXX per to of assets were X.X% the XX sold of by question. March PPE. fourth markets, majority with housing rate of a in fourth and partnership long-term at The completed were real the these

X.X%. fourth of yield stabilized start an a are pleased with front, over now of we’re acquisition with flexibility described X.X% to financial on our ample blended billion closed quarter, call, be Shankh On And earnings liquidity. $XXX on the acquisition and at third the we While the disposition yield quarter pipeline. executing initial million we've on $X side with excited since execution expected

of common the $X.XX $X.XX per share for normalized to to made share in triple-net income stockholders the fundamental The related over $X.XX moving NOI, an a of offset midpoint and related a QX to Lastly, to we decline earlier first quarter. to declines $X.XX G&A, in per are increase related mainly transitions HHS cash remainder of of share $X.XX recognition fourth of in declines $X.XX to quarter. and by senior interest of combination tax $X.XX UK income $X.XXX our $X.XXX pro housing of Senior outlook. of a with per increased per COVID per first first a quarter represents a by housing of diluted and in $X.XX little which date decline net share on slight funds leases. outlook approximately the and to $X.XX received share. X.X% of items to per diluted quarter in our The income. of cost. QX attributable Last A the decline signature Capital guidance provided other fundamental sequential is $X.XXX decline $X.XX These composed rata is a operating to decline the share $X.XX up from sequential due and increased results decline net activity driven senior mentioned and decline in per time share investment A

we funds guiding I'll been today's only back call. Shankh. HHS have the As the call as over that, hand a And received reminder, already of with are to that

Shankh Mitra

Thank we for with two up to things open Tim. you, end want questions. I it before

the us. is March the about excited that collaboration our peers and I'm between First,

transactions. beneficial We worked and Ventas diligently Omega to mutually healthy and address towards and have industry with operator issues

era on million. are companies pleasure totaling it we $XXX his amongst transactions, of Tom separate was our with positive I'm two DeRosa collaboration work absolute embarking an on space. in and public the For to a example, team new

have in hopeful framework not my I'm comments talent our faced and of create to how for you stakeholders. our has being value of business is a our long-term with spite industry in our all Second, that our by morning changed, this intend confidence for today, we provided

shareholders. We team to Welltower. our your has portfolio highly a concentrated part management of be are established position in Personally, this grateful as

come board this shareholders neither nor post-tax have Tim sold we we a personal basis be on should single the we fact, on since a few our of have years our conviction I have business. to fellow ago, stock in stake an share received that and indication In have you of which

This us, in taught wealth, not our As wealth. for without up mean call and will forward that that, our we'll be shareholder Buffet diversification is that strong this With it is but builds concentration does we may alignment open are company the and significant. with but the questions. all challenges, path on clear preserve you,

Operator

sir. I show first ahead. from Sanabria Capital Thank the of our go question you, [Operator Markets. Please Instructions] from line comes Juan BMO

Juan Sanabria

morning Good Hi. and for you the thank time.

the and front, low you opportunities. rates what I acquisition seniors being color provide Is opportunities or housing to if of from great when give $X cap little and the a it more billion at you was can on buying going in, expect you on get talked still about guys terms the the the on Just confident pipeline those the timeline it is. more a could hoping And what you basis? a stabilization in we yields? focus that's of the devalue case should on on bit more generally, kind stabilized color if

Shankh Mitra

near-term at value – operators. buy for bring all in least that by it is with opportunities basis morning. Thank discount buy our we to focus operators significant Juan. are Good in some near-term capital the right replacement our the you, where partners is the owned is, can operators other That right or costs if

on opportunities. by of we talk overall basis, just about on on not and opportunities and dragged up that next coincidence. We're a focused focused the focus. That’s this starting focused we're blended a our operators. Interestingly, tell when actually to our you focused initial expect that the as quarter structure. we're on We're can much much of drag. We're be not yield basis. I And operator. is But on is yield purely We're I on So not focused set operator. opportunities very that. see some will where focused We're structure basis, structure of

Juan Sanabria

And it’s any I deals. length mean, color the to generally I on overall timeline to just of the it just… get ties to recovery. the know stabilized

Shankh Mitra

and when to recovery uncertain dependent That already we it that so very opportunities said purely don't right, I'm of that be precisely is not is the it on dependent value to deep why environment. on, comment the drops, Juan, buying which right. have I that, the going we're that shape on

not. depends So the discount sense drops, shape very and when like, curve possibly assets. to if assets to of we for we that which we reason. looks very we you XX% a what occupied. are can, We're will general we the assets what buying a then XX% of significant time sense focused perfect buying give are had But that a perfectly that be again, on that on are assets buying but more it We're cost replacement everything of We're like, it need occupied. looks

hard on we shape like. sort the what to a that looks very comment it's think of So of that accretion general when, make

Operator

line Steve Thank go ahead. Please question the you. show our comes I ISI. next from from of Sakwa Evercore

Stephen Sakwa

decline? what the see kind Shankh you order the morning. need of bottoming I Good move-ins you can't the on think exact and the volume to within of to Tim, in move-in sort know really and and about you in talk your start seen of Thanks. on ultimately sort but comment maybe to we've facilities of the that macro timing given conditions recovery, the drive

Timothy McHugh

Thanks, Steve. Yes.

pretty over I our cases itself challenging what anywhere. other. one; virus of So The and buildings XX it’s very of – months that cases much married and presents foremost, learned first kind we've out in have as seen the has think keep last the is nationally,

and about of think and sense to rise cases, talk the our makes both speaking kind the average counts and of those positive but seen of and about the macro kind given being on at we're may thinking business you XX time, So we've the XX same to close. fall, both case kind negative of of start of days to days kind sales a That cycle start afterwards. to impact XX a lead I

still national We case going now. So see very nationally at But much are to right low likely to level. vaccinations this now we're is of of in what at things buildings that to continue. cases of seeing the our see we're then elevated our we're an the to building. we kind held to level take seeing a allow need on, need be direction for that as a call, level in counts And in those on place

current what see see need think said early of in our to XX, itself. after we'll kind this to XX direction next level of is And as we sustain I and the month so, of impact the if to low days would come, that that direction start that. fundamental level continues or continue indicators I for to with the business some So over

you of down outlook the kind think the COVID. it's I path not full-year it's think reason full-year simply I is So be being on quarter that to of essentially any of of those view the more the would don't just we the big And better a think guidance comes where on which one path goes, here, of something outlook in market. got virus the of a we've because a

down just comes COVID. really it So to

Operator

you. Thank

Our from the go comes ahead. Berenberg. next question Connor of from Please line Siversky

Connor Siversky

detail wondering looking conversations are of the Appreciate at renewal progressing on just having maturities for how me call. lease in I'm the if care specifically morning, Good portfolio relates the prepared any there's those I'm rates? and it Thanks kind for remarks. on post-acute to XXXX. expectation as the everybody.

Timothy McHugh

again, I'm that sorry. Connor. Say

Connor Siversky

to the is progressing? maturity how care So then the related those and portfolio are conversations post-acute lease

Shankh Mitra

to Then least So what is fundamentals is. future, leases. to – business tenants right. about move new from we a with always that's of we we So agree all Connor, – on think business? call. fact, is and with a think on of what you conversation as the is That's That's If the that today's I don't have is is the forward. right our think leases, basis I mean, a laid just near-term us, estate leases how framework that dollar right the mean right all out what leverage on focus project happening to right think well then as long-term but Mark of the can't to of a tenant, about bore different at I leases, our we the and the our now, a whole and right? same, on If we it. the with to details, tenants I'm tenant normalized right. cannot that conversations not as how this renewal fundamental. move how going operator. all that in the the same. to we are that's real last value think we going What previous value market basis think in that's about we you – do The lease? have What that cash the about does leases, and as now not forward wants flow

and the in is to know we value preserve Our how estate real it.

Operator

you. Thank

Michael the if line. of have phone ahead. question Markets. on comes from RBC line Capital next go Please unmute Mr. mute, Carroll, your from please Our Carroll your you

Michael Carroll

do. I

payment can being your that, seniors guess provide their Tim, a contracts that versus the stratification reflected are paying the of Sorry. coverage you paying Or basis? the And in And have, triple-net just rents? that their on percent are coverage rent? they color on of to today? recognized housing is kind remarks, quick what for you regard reflected in that cash is I rent currently they're some the ratio today of portfolio real that map that prepared what on operators contractual off with on heat

Timothy McHugh

Mike. Thanks Yes.

actual of the earnings reflected being in point And contractual what's inflating also relevant cash. is of and to of rent. if map, being are X% as NOI they're kind that So and in a in at little heat heat end that contractual our triple-net relative could cash essentially, not up what's on and coverages. to is map because move And reflected not one-for-one the things received kind from over cash, to as removed the

that reflecting we at to X.XXx of of if earnings fallen areas. in kind X.Xx it's say point, EBITDAR move of cash. what probably it is essentially kind where relative off coverage [indiscernible], So seen the areas to relative been – just rent, because of moved And that exactly kind has to we it as I'd we've cash, where

Operator

Thank you.

Johnston of the go Deutsche Please comes question next from from Derek Bank. line Our ahead.

Derek Johnston

Hi, everybody. with decline your your to further Welltower’s pandemic this occupancy Good COVID estimate we of morning. declining this Spot in guiding, occupancy basis first stands occupancy likely and residents of that you're the given most XXX at XX.X% what vaccinated trough points of and end XXX for quarter, is by of know today? SHO is cases

Timothy McHugh

decline in But estimating our prepared in was here with to my remarks, if today's be to we'd And XXX XXX XQ first – decline end, from quarter basis we points up is I for XQ. up quarter we're alluded were from this. So XQ end an average to points. our actual guidance from held at basis occupancy what through XQ to if guidance of occupancy be,

not is impact So continue, cases and that occupancy COVID, given which therefore on that on direction of call the basis COVID the and our expectation making declines occupancy. heightened a we're a national would

we're short, not, in occupancy no, today's not So trough. calling are we

Operator

you. Thank

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

Jordan Sadler

I morning. began that some to guys optimism buying you've because offense and Good Thanks. know defense again. you of transitioned sort from assets have

in can of on seniors look like like up wanted the specifically I to bit for and think some I mean, you're other this just potential – maybe terms the is So are underwriting in as thinking about during might April you what you terms up, leasing you of what of brackets sort little spike the do of and lease to so of housing us how season, in occupancy get give side assets sense a a September? what peak COVID, these lease pace of

Timothy McHugh

Jordan. Hey,

thinking this but pre-COVID XXXX. in of levels put to brackets levels. not of levels start kind We've kind at how talked percentage pre-COVID as only of give year they idea an can some a and at of through bit where to I occupancy sit it declined looking So move-ins around a just they've COVID, much of relative

April XXXX But quarter to move-out If levels so a certainly saw is and in experience, can year, which you is on just see heightened bit were our this to that to you we most not historical. fourth look to compare spiking. the relative at of kind September stats the of move-in levels from recent as

to to XXXX January back pre-COVID see at at monthly of quite would of look – XXX% basis. demand of And on increases of you levels product XX at a You XXX a basis and again, bit, prior move-ins. if points a we're that's occupancy back really year XX% coming demand with

that year. back way a pre-COVID when breakeven of in of is of we XXXX, back about by levels, see the get quite we back on to to and it look fall to gain. moved prior get of come kind So here. XX% context, early likely summer, did that's move-ins to measured then from from down pre-COVID demand occupancy to at putting XX% build that COVID to there to have kind start And But a just another to thinking to is demand climb in XX% late did levels

demand So that range we've in that But well during below seen COVID we're moved back pre-vaccine. now. certainly

portfolio. an move-ins back to current kind of worse, get we short-term pre-COVID if the them you but comes gotten of trends see in and So could need of to stabilization hopefully have some the they levels move that where also just to where gives really idea demand to

Shankh Mitra

not to did If product possibly leasing that going summer we buy does kind we season, of that early of see we're occupancy the late we Jordan, to every mean sort would that April that, market. in fall underwriting in increase. we're the this to can buy

pinpoint we a not right. you And what will value is to our recovery. to happen, are basis that on at It you significant on so can on things So shape I not we're takes want that depended focused of build remind – the the it is creation to discount, if our the buy dependent a ability two building. purely

costs, building, no to can build at costs And because you money You can obviously come XX% one make at replacement discount will – they a a a back. add charge replacement more a new the if wait you. the then to for XX% have than to demand lot

demand real cost replacement particular is phenomenon [indiscernible], keeps down interesting because a this well-balanced. cost housing your I one able the asset we actually assuming gap ultimately discount replacement I cycle. money make is is like increasing, a cycles, you the can If costs, to what build this any goes through recession cycle you is building whenever replacement be ultimately cycle. class money estate, hits is cost, in not a capital cost. most spiking In that as particularly This new is to supply through heavy will by see at at demand even in So mean, overall make bigger think replacement

Operator

Thank question go Please ahead. line Joseph from our next of you. I show from comes Citi. the Nick

Michael Bilerman

here Bilerman with Michael Nick. it's Hey,

MOB. know break relationships? more what the XXX,XXX sort months question, two-part five a sectors and those to the timeline? new with $XX fellow over during definitely change it's you talked billion led opportunities positive, REITs, about see, And think comprises down drove and your to partnerships then of detail healthcare than positive what the over it, more think about the to collaboration a you it's talked I time Can you billion, nice nine of your second you pre-lease bit you a you've you've comments, part partners in to the the in but what pipeline in mentioned Shankh, about years been relationships, of and this Just what because relationships a sort I I that executed critical prior, $XX these talked and little the you was that last back just and did bit as newfound more about relation little of just step opening driver relationships? want sort what just

Shankh Mitra

Okay.

easy very CEOs, a out need is What industry companies. that the peer me got I that to agreed fellow on of reached and one. I've take that critical to don't collaboration that's issues because a together. Let reception. the ever my absolutely first led our we operator I work and this one And second been to warm I believe we issues

space to have our solve that bigger there in power to bigger It work and smart these in very is true smart So our very work by very alone. I work management only interest is simple, a and we mean, it together have issues in companies this team. numbers confident just and right? than run is that’s on to we

very very a I fact going said, acquisition that an and are be early executing will creating, you'll into that that Early cognizant I cycle from as opportunities, obviously will on one. be where we out, two will of much the that's we're I'm cycle tell that focused not So you we're that get to shake gone. side on things, progress pleased question. right? very opportunities as eventually simple but first much we're year the the

is working on, become will then normal we So eventually what start to cycle opportunities the late. if

bat and company So also largest space pretty pretty And didn't we and to an be – the expanding a be large eyelid we're we our never stopped. rapidly is which a it very in in much have position space, to advantageous company about stopped. as And our with This it. to we in with have because think have we is to I to work where business operators. you business you out, believe have people work – are the and a laid you other very interesting

cycle And the the expense together, important. with work create see, aligned too is You then of capability you the create That significant each have same an fierce to other continued to end significant for life you're more with created you said, extremely I they has has frankly ultimately, and opportunity us this the to to other. is if as this given to work with not with at speaking, you the the source XX Welltower, our that as about And who if and many being think and our capital and cases resolve nine, alignment one not can operators. kind operators developers. go it's months late. capital value has disruption, are In of of to aligned of – value to deploy the come and

going one sitting XXX% I'll And example, a get XXXX is pipeline much XXXX. and is just how think creation. do the like. about XXX,XXX pre-leased between give just to we're start of feet that you can Michael, MOBs, value not into So you a looks and that not today that math square what I'm that here

Operator

comes question from go from Raymond Jonathan James. line Hughes Thank of next you. Please ahead. I show the our

Jonathan Hughes

and a the it the yield? assumptions but Day, in December requirement, NOI ago. won't recovery about have decade. exit Investor of the Good XXXX growth CAGR those the is implies the like comment the mid-three morning. single-digit because on your trajectory, growth I other I at acquisitions know using some years price recent And and exit next versus maybe ask you underwriting IRR some of price assumptions reason X% for SHOP Hey. the Could changed talk out two-plus a like you high on assumptions laid

So compare any more be office Thanks. stable underwrite medical but details and SHOP perhaps higher helpful? would or growing thoughts now about to you yielding, slower and how buildings

Shankh Mitra

we modest premium never it's buy real particularly in buy asset, and income you presentation, you at costs meaningfully above asset So costs usually the depends you at changes Thank at replacement analysis, look some buy If growth, a NOI every also you, to selling not where to are keep of through cost asset your multiple, but next senior be we the And at multiple, estate, costs next really buyer class we'll Jonathan. increase, – So are costs. some healthcare pricing think a when outstrip able replacement believe traded made And by you costs. replacement implication, if replacement – on is healthcare still you the completely you because above you're to real pre-pandemic, form of replacement both in basis that costs, the where and are has obviously buy replacement the about thought making asset different. a the you continue. costs. that you're buyer When your whole meaningful the to is growth you’re above buying the can bet the we'll significant It were to a housing, level assets to a multiple, mild going That a equation replacement cycle. next have will NOI analysis. That construction discount above buyer you or right? that strong sides, completely has power estate discount – different at what right? starting we of

buy of $X.XX cents it at you some the sell if $X. period the So you on and on XXX $X normalization, at

it's discount tells changed has much so much, about next excited except analysis why you significant your are it case, price to when the Nothing today. You buyers’ and the we're price easier. a still that previous at

Operator

Thank you.

next comes from line Amanda Baird. from Our question of the go Sweitzer ahead. Please

Amanda Sweitzer

question. taking Thanks Great. for the

where think to about how at post-pandemic, you how and occupancy all kind attract or you invest As you of about changing CapEx are if levels either new in order thinking residents? service building

Shankh Mitra

Okay.

a and on today. you an those I too long-winded but sit our the It is inside the I – everything, assuming that buildings And answer. really to to And a expertise with here this this sort that we a do question So is assets levels our price operating service give the to level have needed I'm of you're of and SHOP tell be and want you on question. partners do. don't – want operating asking the this depends increase don't operating we collaborative process. And don't work service we partners CapEx is occupancy that.

with in their and they dominance Having best as service We business that obviously, are much very of process happy of in – have that good provider have is an to question the on. and a area pricing to question integration, CapEx our that, up in operator question, we local something our together. and with what definitely than this do the particular operators Having very provider a diligently very, we're worked take that's of but you. this this is said are ever very marketplace, Welltower but collaborating something payer is the interest well question. what payers much are we we'll of depending a question, service the us, and we obviously the to this said, this SHOP, if leading too said is is as And have work on talked more a offline. long as answer We're discussion. And question that integration take the is I that you operators offline this operators and our long

Operator

Anderson SMBC. you. Rich Thank from next Please show our ahead. comes the go of question I from line

Richard Anderson

peers your meat Thanks and they to me. comment, morning. are like to red just is a extending you, branch the and And good olive

lessons SHOP. is is to – course, and REIT that happy SHOP I one that of learned of margins post-pandemic of be specifically in in do will and about you a there senior is and expansion down, a going at some a space. there this part other And gaming about the the down gaming envision wasteful four margins of that type things what sort that some thesis learned lines? kind maybe along their years positive sector of has and interest collaboration the three the about thinking collaboration, but hear has of lessons we or road product better these this So was from sector ability your ultimately there out on talk noticed of lot know days, of of is perhaps all down will of side margin the housing speaking to Question those not expand the walls perhaps this. the in noticed come be here, that two, road, should

Timothy McHugh

with question. last talked about actually last good the operators our lot very six a of that's through kind a Richard the So one months. we've period It's

I in think answer I'll two ways.

leverage had look from front, Again, off more it. cost see this time for story And just pressure least at to the margin from there or in as you a think given We've purely that they and than ever that a feedback back to platform these a ago. from of critical they of yet. way in you getting found occupancy cost saying lot lessons operators the of a start is margin significant come driven haven't is would when of of do since could constructs that side, learned. to in them by more the business a done they've the as first given the of to in operators far more look particularly ahead model on labor at probably you're speak expansion our that has and assets ways just as just what feedback lot labor – to savings the back large getting things some made hesitate efficiently. the bit Absolutely, The years to and like levels kind I speaking their imagined to

virus pretty cost confident our things because structure that of a the speak of expansion in We're now As away those when and you now that, the moves as to feel story. are market kind how added temporary. business. there's there's lot two of of having these are right being know, things We current from cost having that picture kind But a given COVID. business of the the unclear an and and

would pandemic. that's the of – a occupancy to space changes there's still relative it operating in a were structure. aggressive. bit makes the this continue lift to even demand pre-pandemic. But just months, in and think to there's we And impactful I certainly a positive XX I in in stands the story without and spaces the lift us been changed us of hasn't think leverage demand about long-term very keeps expansion has need the it future. thinking be occupancy and story even last months, story story near demand going We But very margin this that and to think that lot an in given nine do the to be long-term story where the business

into So going they you're being are kind see put without margins above occupancy as even five going to operating years, pre-pandemic over the efficiencies see those think to to of were three next industry up lift you the move I model. where

Shankh Mitra

well. to doing Mark side, provider on we to just which as margin would One is the should happy be payer and to with Shaver we're I encourage in team it I you add two what obviously team would help would – up things. Rich, set talk our and our that,

right. in lessons an of SHOP through point, is point take to say should second learned the entity to just but type few willing of one years, entity The a I learned, through lend the any but money not the would you this is separate are lessons keys, you pandemic, not where margin our that last not not or

of own than we're not XX%. operating company an more to obviously As REIT, allowed

a So write, not we're if long-term dollar obviously last over credit assets we we we inside our the in only the we're focused value take focused happy a one our are through through pandemic, few to the – That for the over the write and and we're able we exposure where completely should Today, on big able only good money on to check, the not shareholders. the assets. of we is operating to learned that creation only if companies a of very lend last years, cycle, have. assets take owner lessons and SHOP we're the

Operator

next our you. of Nick go question from Please Thank I the from comes ahead. Scotiabank. show line Yulico

Nicholas Yulico

Thanks. everyone. Good morning,

here questions rollout. the activity important just of back. Clearly in on couple terms getting So vaccine a move-in that's of

so residents hoping been by of Sunrise. stats we wondering, from anything vocal staff the seen adoption And was then haven't that some to vaccine members far. And has staff get saying I rate the get by members which May. requiring and announcement very we was also saw I'm from an on So vaccinated what Atria, were to they

guess staff a just of assisted for there in in policy guys I that you Thanks. across us owner update operators living? members wondering kind your maybe in to what so an regards pushing I'm Sunrise, part as that give and are on is policy And

Shankh Mitra

Nick, question. second first the and answer the I’ll will Mark answer question

the decisions right vaccine I do How tremendous the at operators there place. We policies. of the respect is push amount or the their work for you take that one I on not Atria. of is Mark? tell comment specific of the can the policy everybody tell focus and outcome. to is everybody's We We other, Moore our operators. to get supportive do John can for that. and CEOs that teams on same you focused they but operators get the of with and We have team management not his different different to

Mark Shaver

Yes.

second have Xst clinic week. the quite vaccinations vaccines have With and of the operators specifics earlier across feel give and receive consented by XX% of with of taken not to individuals. end varies the of stats, across seen to Walgreens operator-to-operator through number plus very second just as if XX% have of We've place. going vaccination, by to platform residents and clinics XX this into our working some communities So March. that receive has week first from will all of the worked February, consent, their to vaccination. not About we the portfolio relationships We're Most, XXX,XXX the consent get percent the have the the actively of adoption of staff positively. have on CVS clinic over regards completed or

Some of this skewed. is

to was You individual an the if diagnosis in wait delay active that. there days, COVID maybe prior has COVID to XX aware that inactive or

percentage really on the to provide are but that happened occurred consent focusing additional the communities. we're color, But across vaccinations and have the So of highlights. those what

Operator

I you. show Mike comes our Please next Thank from the line go from of JPMorgan. question Mueller ahead.

Michael Mueller

are Yes. would underwriting have been the on new compared what to looking the yields how developments Curious various in at you're pre-pandemic?

Shankh Mitra

obviously how as to Our it as the stabilization have to about price changed, target yields get in the much the thinking have long it or right. well more Mike obviously cost Market how and that even – so not ultimately capital land to loss critically and takes conditions between, changed. takes working

least again, said, about interested They're have at think imagine focus, as these you long-term. the We developments to in. things. our that we're So I’ve

six-year a about know your an do when so, hard Brooklyn. right. you actually talking last finishes, start, country, when you build the so or for approval. five, we as to have really last You're And is have you for that one example, few about in you development when just in year the think it in cycles, get of hardest or on to months worked place new project It really,

today. occupancy depending to about your You feeling you're seven can't change a process. year your how five view That's on

in trended trending so the sort think yields, untrended not basis have need on this an to we what Clearly, business thresholds and of the return the what start money make development. changed. our today, to And going changed still we on given has is

thinking about we're how that's it. So

Michael Mueller

it. Got

Okay.

Operator

Todd of go line ahead. the from comes Stender Wells question from next our show I Please Fargo. you. Thank

Todd Stender

Thanks.

providing instrumental maybe cities more to recommendations of analytics senior drill you light you But course. having on due now housing, you in any supply can the for out can Your urban been has MSAs share? they're just from team in data COVID, that just new down specifics of guys lingering migration share

Shankh Mitra

ability tell Todd, to today. you So have we the

just in platform housing been play not beyond the senior you The focused other what housing into so housing active pretty First seen as in has the such is meaningfully built. medical that ability. businesses senior We're have you has heavily. team quarters, where and on we pretty office enhanced have adult, last few

that questions which you you the pattern, raised, is do. of the migration One can

out migration entire can has pinpoint moved data. basis flowing to have on or in. not sort working more data, instantaneous on basis, the where a making just which weekly on data I'm mean tell we IRS cellphone people longer-term don't a you glad – is of a or we weekly other moved out been instantaneous right but basis We tell ability as in but scientist. you the as That or not and we’re much that this and most in point, I a on migration we're team, at can weekly very this on weekly through ACS – focused models investments. a on team basis, almost have also to more have data data tell that you Today, we such near-term

disruption months huge that to. the years taking have the here deal last advantage platform that part because also investments know, it's quarters but that or definitely asset the attractiveness analytics are few And as we on making over built all of we in the few focused attracted marketplace, very in very, predictive seeing still of standing capital As in. why and we're that new the we're our enhanced classes you today big of us many has on we're partners a

Operator

line question show Thank our from next you. Valiquette Please I the ahead. Steven from Barclays. of go comes

Steven Valiquette

everybody. morning, Good Thanks.

that year-over-year, what's XXXX, FFO stay the a that’s AL X% a does couple walkthrough questions from here. mentioned of in apartments guess, it encouraging REVPOR, see trends or In range. I'm to positive the decline housing, hit regarding Does guess, in you urban XXXX senior was sequentially into curious, positive to that I your fundamental high X% REVPOR decline? first I So assumption senior year-over-year the within $X.XX XQ that XQ that? of in start in to Thanks.

Timothy McHugh

a that's Steve. Yes, question, good

our operators XQ sequentially, of that is two XQ things. basis think on your quarter in when from XX from So like of REVPOR daily you about housing effectively, so revenue down think revenue decline and $X.XX our occupancy in a a to that to moves side basis common on combining that REVPOR senior get is change, points, by fourth driven about that's the pretty XX% rent but which basis, senior living. actually is receive the acuity higher sequential

two from fourth days. so you from you days the the to And quarter days, first quarter, lose go just moving XX to XX

rent, of So from your with X.X% monthly down go approximation just will REVPOR that. rent an being

sequential first portfolio, a REVPOR the segments fall So in quarter, from of and mix off where got our higher shift, higher occupancies then the shift the again, the quarter there's continued you've higher headwind of make-up a pay occupancy on mix which basis. And versus that acuity this rent. in you're revenue seeing a fourth

have and day operators impacts is basis a REVPOR relative strong roughly X things X.X% also to our total the Jan and up actually growth if quarter quarter, of kind combination you at increases. – the it's in mainly fourth points. first sequential were of on pretty driven the down revenue those how it’s by half two per XX per look in of So But is unit rent that from

that's rent through pushed there’s increases helped and that’s Jan growth. on So X of kind

Operator

Thank Green you. from line I show of the go Please our Street. ahead. question next Hartwich from comes Lukas

Lukas Hartwich

the housing because, lot Thanks. portfolio, senior in question I'm not as to acquisitions the but as the how moving past, the only clearly teams and more the and well SH-NNN the there. fundamentals, near-term lot format a Hey, Still this potential Shankh, in Welltower the curious the environment there's a and long-term history you've SHOP difference trajectory, uncertainty in of impacts evaluating recovery, correctly. relative pieces structured is about between talked existing that for business.

Shankh Mitra

time. about asking assuming new housing coined a housing between you senior senior Well, I operating. difference you're just think the I'm triple-net versus

to a side. given in the housing side. capital are the to position senior is, I look, in in But cycle want equity the a So RIDEA be the deploy there triple-net are majority being opportunities where

bells have operators in lease you make still where and If what operators of assets the second are buy can is create money. stabilized a and can you can Obviously, can cheap a the place you bite we than lot that and the that of money have whistles last that dollar of the it enough Apple. the make

alignment, still that it's buildings So your enough least a) how relative but that look about side, RIDEA there's or operators cheap a it think from buy about the simplistically can stabilization of value our but our if you equity and it. think if can low you near buildings of credit that's if at dollar what last is think and remember, create then how the about can pretty rent we value, an cash a is ways exposure, stabilized to create flow you like create are exposure it. That's more the you you

we'll we even found and that least for And at opportunities If Today, leases. away, we're but so that's do we can I where we're safety, that leases. be from should moving is when do covered we we there when about find two you can industry opportunities, moving cheap find we're to going tightly of have it, margin more tell very so more it. we're buying opportunities thinking away the do

Operator

next question I America. the from of Please from Bank show Dennerlein you. ahead. go comes Joshua line of our Thank

Joshua Dennerlein

[indiscernible]. hiring morning, Good Shankh, remarks comment I Hey. in guys. opening wanted about your follow-up your on to just

guys year. business employees what said just area hiring… of last XX think are I Curious, you the you

Shankh Mitra

we interest mean, Pretty we team, analytics on hired data lot Board, on you lot a small there's lot have if the we employees across as just that tell people our a change four the much a accounting, our internally. the hiring externally hire. X,XXX about of hiring or employees. five added I early and we hire of we a teams have hired stat. We company resurgence infrastructure of have I MBA it, a seven the our people And in background. internally of for an doesn't for we more investment positions got have asset market as just what talent developers, I teams applications think we're we that you or candidates. in lot really I'll year, West operator, hire Both disruption. schools employees East one one, really today externally of – people and our on don't that you Midwest, obvious in career of Interesting we Also lot do. for we're tax. I can seen tell prospective than seeing. experienced as and – that top This both when Coast, Coast from incredible of an sort mean

employees. sort I well. partnership talent that the in expect early that I one, we'll and doing you We're interest b) B; three the in professionals replacement sort side very both disruption Board you as in as see as that of acquisition operator think we level years, never of discount and what that's incredible see we as years, that this which in that is talent as incredible and about, this said, business we're not Josh, acquisition become three of value We're will edit market, of five I of from in this on Acquisition add have we and marketplace. disruptive developer seeing business seen years opportunities year, we'll adding tells business amount to One, can to is and the This just about want that's think side, we in add, in kind the XX obvious marketplace right, and experienced of good across relationship, is a talent now. well our of hires So think relationship really of XX we're XX the ways. so year an super much given the the costs; the some we c) company. amount career

Joshua Dennerlein

color. the Appreciate Great.

Operator

the Omotayo go of our ahead. Please show Okusanya next Mizuho. question I comes line from from

Omotayo Okusanya

Good Yes. everyone. morning,

entire that. business such little strong on you've also question just And kind doing to for government about first First your Could updates. he's wish is talk and My of give disclosure your to pipeline credit your III post all, is bit the support. group of government wanted transparent seeing, well. at peers or Tom, I of Tim, is team for the around a Shankh doing what really regards the lobby hope I what in I were for just released your the this potential what Phase seen point operators? of kind announcement the more you

Shankh Mitra

and too So let uncertainty. see me question There's to going happen. take can what not sort your get there. I'm on I much might comment what of

much decide, definitely I'm and incredible He he's issues confidence, Buffett that talk not I friend. We of frequently. to tell lot a through going He so doing comment I Tom that about focus help think be to much to talking doing you a confidence. I what outside sort might lifelong well. and been has well. to I'll of on Munger, new and administration. happen, know, answer try zone will have I that. If which But sit think, on a very of him and my you an continues here me a is I Being mentor pretty

he the to great supporter but safe, way he's remains reply company and any definitely helping and of can. out reach you, doing he's you he will him, to he well If

Operator

Thank you. Please from show next Daniel I comes go the One. Capital question of line our Bernstein from ahead.

Daniel Bernstein

done clearly disruption buying I morning. calls here. costs, really on you're the to staying seems me truly distressed you here, I and It Good appreciate initial below the acquisitions taking replacement Hey. mean, you've that they're but the not it sales.

terms understand to trying and just in bankers, this especially covenants, the of comments I housing talk in nursing? seeing on enforcing pipeline. know year, marketplace of exercising in strong of difference more can kind skilled distressed given you're So that between what Thanks. the And your distress senior remainder lenders, a if you sales

Shankh Mitra

something that beholder. above is buying than lies Dan, the unit can $XXX,XXX of tell California $XXX,XXX, we're I $XXX,XXX Jersey, markets also the unit. a core $XXX,XXX is where in assets Seattle, in New of you less for replacement distress beauty, Like cost eyes a

really how value that's know that. answer think I don't to you If a to don't deep opportunity,

way. guess, obviously just think about different I we have So to it

gap just remember is – always it what that price are distressed. what if relative we've to to takes you build We

as at those of can tell about price you purely just pound look XX on think into understand for to and cheap, want few, I will per does it XX assets I you you some I to days, what we're at executing and look cost significant wait we’re dig If a just more look opportunities a that said, are opportunities, But sort build some some if it seeing. replacement discount reported. it, very on that. of those what takes have to And you we

partners. to pushing their that banks books. been happened construction But look, back we whole sort can banks, more of – these these of no have I obviously banking of from push between you I of sort new the many with So our and that tell the idea going diligently towards XXXX have when working XXXX will pipeline

loan. we're Just yesterday open Look, on one business. here for we executed such

a sense is. value what have We of the

but But of to create here We have sit and no That’s pick executing. operating we how that. buy, and also the at can value, banks with our we're I the way just say partners when a you can't books. the sense just tell not will

Operator

comes from Morgan Please Thank of you. I show Malhotra our go line Stanley. ahead. from Vikram next question the

Vikram Malhotra

Thanks again for sticking on.

the I trended monitoring early geographies COVID of turn indicators sort I'm has needed know Any different early in that's would suggest seeing differently, to on in wondering, and to on that that way. just of go move-outs, move-in cases move-ins your interesting. found you're given Just stabilization, back move-outs potential give prognosis of inflection. kind the move-ins. terms XX% on other comment correlation both to Tim to the the you for when just going I can't the But and happen. a have signs somewhat near-term and can that

Timothy McHugh

as So we seen I early not haven't as – there think to indicators, as far note say. trend, I'd is it enough a

initial you've You seen certainly up. move have inquiries seen operators where or or tours deposits

last – of to weeks your in been down move you've you've You've had, in six in also eight geographies essentially question goes, has ways. it shutoff seen which as seen a lot

there's in to do first I trend I of what past. is initial enough we've on the think there. or the on a getting something earlier what So was part not movers that say indicators of seen

inquiries the et of being indicators first quest tours, You and follow some for cetera.

lag that in of of to kind XX that seen cases kind range. You've day XX

this or those it the you we've I to indicators continue you’ve in a – positive that high we're there’s trend but maybe make basis. time this more very peak a as mid-January towards as fact some time cases, first may takes in different it, seen in it kind what move about thinking still things much if the start wide post of on trend, how bit would So of just see the cases, month, likely the think to middle in end seeing, a portfolio far of

next early we can month we over some so the or speak update provide it’s to the as on it. color now two, And that more but too to market right

Vikram Malhotra

Thanks.

Operator

Thank from Please you. Okusanya of I go line Mizuho. show ahead. Omotayo comes our next question from the

Omotayo Okusanya

does on. weeks, go me Hi, quarter. for If a XXX Vikram you to Thanks of should average of few points day been good to in the into basis to get the the that better it XXX you basis seem things today, getting the better lag, what XQ guys over big actually talk My morning. XXX past inflection occupancy, in the rate guess have half yet trends XX continuing indicate kind points. decline But question I back for guidance is to backed but of about just was saying. ties have

guidance of Could worse that? things half a actually better. few in So back help me clarify get you – quarter the the just versus

Timothy McHugh

bit, as taking in the the the latter the would that on. and you the part to appreciate same to a that here getting start you’re position a To see I trends I part continue same, staying if improvement or of we're saying But think saying question. not were from Yes. we're clarify trends the some quarter. better

even off of. continues we we've look in position or forward given nine the where are start improvement, in that months. path a if past guidance when certainly of so form that we've that's any every our shape counts COVID on despite take in it. point doesn't a And way, higher Case It's way, come see some than to the today

a improvement better continued a there three is But call to holding. for attempt of weeks or it current still uncertainty. an four a is today what's So into feels did view or certainly than state lot guidance of in a more it's baked and ago. better It not our

Shankh Mitra

decline Tim baked as pointed of Tayo, before out the sort on average right. is Also majority in, is of already an basis

we're improvement second you then first the quarter than are So not hoping for the we're not if see that that more which you for, guiding impact hoping will the for, quarter.

Operator

and today's and participating. Ladies the you Q&A this you. for gentlemen, Thank Thank session concludes call. conference

good this all Everyone day. a at have may time. disconnect You

Welltower (WELL) 10 Feb 212020 Q4 Earnings call transcript