Welltower (WELL) 16 Feb 232022 Q4 Earnings call transcript

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Welltower Fourth Quarter Earnings Call. Today's conference is being recorded. [Operator Instructions]

would General turn Counsel. I to conference time, McQueen, Matt this like the to over At Please ahead. go

Thank you, and good morning.

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

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

the that, I'll over with And hand call to Shankh.

Matt, morning, and Thank you, good everyone.

I to MOB is capital fourth questions. full and allocation on portfolios. newly walk you And describe of triple-net update and our will will our appointed John CIO, performance review an Tim balance XXXX provide will the business answer and year our sheet highlights priorities. on year call through and and quarter business, Nikhil, SHO trends guidance. also operational high-level our the

While platform back out we full run understand emphasize years, power I that uncertainties XXXX many business focus analysts are calendar point on overly this would the three after remain. guidance. to to and happy of exit I'll investors year and and macro guidance not rate to recommend the earnings bring year

have emotions back I as on reflect XXXX. I mixed

during first of the half As I've described underwound to you in my the frankly our year. prior calls, our expectation results

a performance a is an ticker. an total measure of as business to is years, While we return at for should five believe, don't to our But in fix [ph] and XXXX. generating like three ownership you we to that stock window short-term a remember, return -- least stock to on appropriate fractional a that not gauge unsatisfactory performance so

of performance improvements strive We underlying view spite improving this partners long-term my being pleased talent and this with in that and in compounding and I our as of investors resulting and the we fourth improve the base, business. continuously carried for In of we platform our of experienced in farther some the have XXXX, prospects team haul are the in rebound to quarter for seen XXXX. strong into headwinds momentum long a fellow

only Our our of truly year the -- iceberg minute. many themselves is year which in of of in progress manifest initiatives, I'll a tip the next will or two, recent go the

macro seen a or we considerable in overall While as the unit the of room, occupied or by room REVPOR. per per reflected headwinds have indicators key revenue the economics improvement occupied or expense persist, of business EXPOR

certain temp significant front, On have seen situation. over on the challenges notably the expense on labor faced agency progress first we and plus, addressing we year have most

same of revenue time, operator a from in REVPOR, occupied product QX, and pricing bright clear X.X%, largely room, premier locations, strong our X.X% moderated in base. per driven occupied In seen lowest to in fact, compensation recorded -- our export to the by or QX has have us, COMPOR X.X% a resulting power consistent for deceleration per reflection room a At we again, level increasing remain the history. in to the spot

X.X%, REVPOR across I As exceeded have rental we REVPOR pulled plus, our one last in surpass level in record a mentioned growth increases X% achieved operators to in of this reflecting Even growth QX would XXXX that, our while expect call, broad-based XXXX. largest on of our portfolio. without forward QX. strength And we January our of

operating nature rate of only business day. getting of uncertainty macro already our I believe occupancy favorable is in many class NOI XX% better growth we're margin the future in single is with and an asset at While XX% double-digit other of growth circa expansion. of long we achieved expect a impressive fundamentals sectors, multiyear and significant growth a beginning the our our resulting runway growth confidence need-based XXXX, in gain, along from NOI XXXX every of which weighing NOI growth, despite And demand-supply the supported a on backdrop, by SHOP

is with our XXXX 'XX that January fourth to off report XX% to a from great of quarter. up start already move-ins a levels, acceleration meaningful pleased I'm the representing

Forward-looking volume indicators operating in promise January is our up are XX% senior portfolio showing tour with also across year-over-year. volume total our -- housing

Letter ignore the be of the perhaps milestones our manage is would I history self the completely received, remiss and permits XX-year own of and us which independent in assets. to important Private one most Ruling that we company, both to living

coincides management in the our platform, across the timing senior have living future. not almost operating and the margin to perfectly with choose result investment and better only but platform in which our do The in benefit that industry-leading assets, build-out we flexibility partners in operating on. PLR farther We our will assets, been meaningfully the our working also his of remain John profile tirelessly us with business third-party its a of optimistic provides will significant who asset operating spectrum, and team

our achievement. ammunition team others look to whose led continue mystery, We to business, our have what of to for margin. and game-changing following might Welltower to this there's living accelerate Mike the operating like. modernize side the And our gives a and PLR opportunity I a see instinct pace professionalize to Garst, significant senior efforts want tax thank tremendous X.X where there's many

of agency with near Virginia, and over of in north We management assumed any RUI care to Unlimited, performing today lever housing programming through and of few years. operator maintained operating first announced our turning the the partner. RUI of I meaningfully to RUI, one best the consistently the roster Welltower's highlight at is in or Retirement program acquisitions, of East with environment, senior that grow RUI relationship development. standards. levels has the community quality has investing to of exceptional use with together in past and Before to term operating our Coast want highest plans transition hardly XX% occupancy addition Alexandria,

and all star RUI’s and We are Sullivan, Waldron President, the extremely and families partner Doris-Ellie family. Welltower them excited to with and humbled welcome Fralin to

Reuben, our when the with David In partnership was and exactly other their UK. of in announced year terms of partners, Simon along Healthcare growth acquisition a with Avery it we ago

know, you best-in-class the reputation sophisticated, talent most global Brothers As with one technology well-capitalized Reuben and the and platform. of forward-thinking investors attracting of is

Our UK's senior XX UK with validated company’s industry in when has housing Rose, view Brothers as thesis most senior and the the well Reuben join was attracted was in platforms. operating -- Lorna in most operating Avery Lorna largest Barchester, of the the CEO respected December. spent years one one executive recently of housing to

right than more pre-pandemic then to -- across product give at seen the $X.X all three for in basis. There metrics the than at we $X product environment EBITDA than note reported by billion XXXX, of of the even non-traded near-term longer a allocation estate billion types funds cue along market, buy for challenging This exit of we QX on enormous do right an capital levels, better that right we liquidity all Please Next, our liquidity. just of with have us from advantage while available debt side, real location that we underrunning REITs. the one with more are are a countries in. business rarely along debt XX-plus-billion perhaps and with core favorable are the

We create North odds and existing house have long remain we share described to Star can fronts. We and time competence, rather deploy and allocate our our of with we of and capital than value simple. the over area consistent within access busy avenues capital by we But on compounding odds. remains our define strive for owners many to a that before, assess per all circle gambler’s period I've as which where

pass With that, it John. over I'll to

Thank you, Shankh.

challenges, performance we've was to My a XXXX. conference in X.X%. quarter the XXXX, the Total portfolio's was QX of at X% same-store Welltower growth performance and call I'm In through in continued excited of for has range about call, growth, our was to that operating the X% which the portfolio NOI negative first improve. QX. QX in this witnessed. despite Since acceleration July

XX.X%, operating of all XX.X% current NOI in by growth despite we a housing challenges the QX, NOI However, senior with the accelerated growth business portfolio of driven economy.

in housing the massive at as opportunities the the to performance I'll I is amazing the fantastic the initiatives result professionalize studies a being in various management. and both business, and which looking case which in out are many moment. outline asset continue supply-demand labor, noted senior deck sector slide of proven This clearly when presented see agency to dynamics the we of through improvement the financials through a in come aggressive

of abundance as chat engage the applying Jerry industry the senior a this opportunity, proven my It me to industry, which solutions Jerry Davis, and led friend, of housing opportunity Advisor. to Strategic is to

in with REITs the and was Jerry UDR, homes. you all XX XX,XXX largest Jerry my roles company's at overseeing know, multifamily of the XX the during days, As one at many various national UDR of spent years operations my apartment of retiring counterpart employees I stronger platform multifamily processes, views before results ultimately XXXX. which, a in superior requires the on have and in He always well for and shared people, experience residents and operational data if financial excellence done, focus a that technology, both similar and performance. drives nearly

Jerry's -- renovation, in have transforms Jerry the et will management us operating platform and opportunities We capabilities, while senior Welltower from continue resource management on his change focus build the accelerate accelerate industry. enhancing business. that help capital, past headway I’ll our to expertise continue broader X.X-year efforts accelerate asset over management, He’ll continue and progress. to the operations to substantial in housing to made specific will cetera, the as

be additive, exponential, together Our not squared. will work will be it simply J

XX%, throughout medical business, for business continued Now, same-store prior the fourth strong robust steady straight across This the our year Same-store operating the and starting was rate year. quarter. for at rates I'll second the quarter helps office some XX% X.X% insight remains for portfolio medical improved lease the strong provide at rates. outpatient nearly XX% re-leasing our over the us year's the occupancy into portfolio. NOI while was retention with drive and growth entire retention nearly quarter, In extremely

driven to increase basis growth, respectively. impressive U.S. at regions X.X%, XX.X% strongest year. and of an margin operating the period. quarter XX.X% fourth quarter XX.X% and Year-over-year senior the All for UK, XX.X%, portfolio. revenue The Turning of of growth showed points housing was over also three the year's XXX growth prior NOI the revenue our the was with starting by the strong Canada

basis-point we've the by XXX which, power of Revenue Sequentially, growth during the portfolio was highest a X.X%, gain XX with occupancy healthy to of growth another in and occupancy period. with is Shankh in average the continued as witnessed. quarter a mentioned, points improve of quarter basis ever pricing REVPOR increase driven average

key obviously expenses. XXXX factor use in to has Turning been Agency a expenses.

in year-over-year times, just many often in XX% Agency is However, Tim as compensation. same-store QX mentioned percentage as quote We agency acting of as had 'XX. is in a QX agency portfolio deflator. expense expense an XXXX, our down

UK by adjusting The overstaffed. So is X.X%. of well way, Management XXXX, looking levels housing appropriate models, over at at ensuring QX shortage some of to being which properties was QX U.S. agency, X.X% as our staffing it you and staffing it Canada, of the at XX% located. portfolio and is impacted slowly have that dynamic of Regardless occupancy expense in of declining was occupancy. the is is in various agency look of still staffing rigid labor compensation in to senior how overall in a lower model, as where led UK expense XXXX, the

only quarter overall including per occupied XX.X% growth rose helped the of fourth continued over COMPOR, moderating utilities compensation about roughly food occupied year's increased XX% rate prior This to expense year's and X.X% room, is represents pressures fourth in per of in Overall, utilities, which respectively, the room, of in the which drive deceleration the in the occupied years. growth, Food five line lowest room XX% per compared compared expense the the growth expense and which and to per despite prior on quarter. a quarter quarter, room. COMPOR basis items, in inflationary XXXX XX%, the represent several occupied

income rate growth highest the XX%. years X.X% five The with net of growth, operating occupied in growth a unit of per POR led to X.X% expense in REVPOR remarkable combination over

say to we pace purposefully our must platform, the as modules 'XX, on continue I'm they're in module out in that other be pilot details operating I proprietary. giving first the QX with not our several Regarding to works.

the of the these accomplishments we that are say grateful proud Welltower modules. partnering will creative I for team that with the I'm However, of and wonderful operators on first I'm

various aggressive exactly done opportunity. that three is initiatives through and the had on technology, the the brute case labor that what reduction, have we that in deck, the management successes on noted a people, The care and management, of and force revenue are Operational is as revenue. processes, team result data and achieved studies prove has are asset and outlined excellence by slide focus the in agency

the we to our to opportunity coming in will platform We greatest roll years. be leverage the continue the results, out yet will team drive operating realized as

like Finally, I to employees and possible. for our employees operators Welltower thank the making and would all these their results

has Our clearly overall teamwork to experiences off, resident improved employee stronger results. paid and leading and

Tim. call I'll to over now turn the

Thank John. you,

My of the triple-net our year in fourth update, performance XXXX comments our quarter results, segment and sheet today will focus our the ahead. balance activity, investment the on the finally, liquidity quarter, capital outlook for our

reported prior government from diluted per operations funds fourth normalized year-over-year and after quarter headwinds. share, adjusting FX for $X.XX Welltower growth X% of representing period grants

growth same-store total reported portfolio of also NOI year-over-year. in XX.X% quarter the We

Health restructure to In go-forward want we now our with Health with the part Health. announced and pay of living ProMedica XX System update with The triple-net joint Before housing ProMedica Health assets be getting joint our December, closed provide to senior formed our a continue JV lease it late newly venture assisted venture results, private Integra an of segment. restructure reporting ProMedica is into ProMedica I consisting recently under closing treatment. and operated our the on reporting and our System will segment System of

venture, The Welltower's Health. a a of The properties, XX% $XX XX to property comprised of Integra the in skilled stake property assets acquiring the with joint December closing in of commenced joint JV adds upon of for of and consisting venture Health tranche master with lease million. the Integra first nursing lease Integra XXX

year-end, are the remaining expected in January, in The the of subsequent interest assets second close As acquired the second Integra XX year. assets to XX previously tranche to $XX expected, of closed half XX% in another million. assets for

have is state specific transition XX% for progressing with expectations. operations, approvals. management of the already remainder on portfolio line with the the beds of of the portfolio the underlying As subleasing in the waiting

the market progress of will transitions management fundamentals. to We level in underlying update continue to addition as the property

triple the performance Now net our properties quarter. the to turning of of rest the in

As arrears. statistics coverage quarter in X/XX/XXXX. stats a months reflect the portfolio trailing reported ending reminder, our lease These occupancy XX and a triple-net

EBITDA NOI portfolio, coverage times senior housing X.XX our and increased same-store In year-over-year was triple-net in X.X% quarter. XX-month the trailing

same-store X.XX long-term portfolio in EBITDA times in X% and the quarter. coverage Next, was grew NOI year-over-year our post-acute trailing XX-month

our and nearly of program, settled to market times X.X ATM substantial raised debt year-end capital down helping previously the to pre-COVID XXXX. to quarter, In Turning activity. bring to EBITDA we X year-end, $X.X times billion through of levels XXXX equity forward QX below a at decrease of at

continue the For deploy desiccated a activity, net materially to year, fund us of a to delevering balance billion the of we equity billion total market investment $X.X of to into allowing private $X.X sheet. while capital settled

$X.X pay-downs, and in our billion the and ended Looking near-term $XXX credit revolving forward, we full $X capacity million million of liquidity. representing dispositions expected with loan of from line available proceeds year $XXX on cash, in billion near-term

more to to commentary Before opportunity Letter around by wanted company provided earlier guidance, I add Private to Shankh's on our last to context XXXX year's our Ruling. the moving

direct Nearly giving Welltower management years to XX housing exposure structured of ago, agreement, economic operations. day first senior a

Welltower. Over capital the a investment at point reaching contractual better can five-plus human within years, and last and through alignment ROI XXXX, structure, meaningful we stronger where centralized generate in technology ultimately we built this a

primarily received Burkart and on costs to greater John friction last With overhead management, effort platform meaningfully 'XX, around Welltower G&A. asset driven new hired entirely the technology. increase PLR We XX% year-over-year that ROI 'XX build year and as expected technology additions and This removed him. accelerate started us analytics through self-management. the team under The to investment position our is we of evident focused in and data investment than being is by in allowed

the efficiencies believe opportunity the sustainably demand to business cash creates to drive a modernize plus. that combined of decade next is continue demographic-driven the scale tailwind our vast with both We and operations strong and flow in through when

moving business XXXX. the year uncertainty since of reintroducing which began for are in our to first Lastly, COVID time we March full our impacting guidance,

of attributable of $X.XX common $X.XX diluted to FFO the to income Last outlook $X.XX or and night, normalized of stockholders per to net provided diluted at per $X.XX share midpoint. XXXX an for we $X.XX share

As the government for we in our adjustments no the mentioned contemplates other grants in guidance year. release, receive XXXX

rest nonrecurring outpatient platform year-over-year of Underlying in same-store $X.XX X% X% X% senior this housing senior to driven is and These NOI $X.XX exchange of and estimated So, segments. XX%, to X%, housing of operating growth to X%, growth of after long-term of Underlying driven in received adjusting of growth and X% from and of to foreign XXXX, portfolio for XX% composed to FFO by and offset subsegment are for approximately prior of growth. Welltower senior growth floating $X.XX grants operating post-cute we is year-over-year from year-over-year X% increase mentioned and approximately medical, finally, the by midpoint increase our triple-net growth of X%, year-over-year and housing headwinds. of occupancy this government of growth revenue which of total average points G&A across are guiding rate higher expectation XX%, by $X.XX revenue in growth costs approximately basis is $X.XX FFO is portfolio rent our growth X.XX. guidance This X.X%. an the interest of of XXX

And to hand over Shankh. with that, back I'll the call

Thank you, Tim.

on also perseverance from note, of While a year a was and grit we it team. our XXXX ended positive sheer

it we our steadfast ProMedica, the in rip our of Street As encounter journey instead do on profit to development that -- give away Wall to belief the easiest and remain thing upside to capital on job either stewards business, as because, it to decisions. we or and future working private equity challenges feeling from off out tends cheer as when be one, such to aid pressure, the our shareholders' of instant our things in solve expense or different the two, we not is band face cost problems is gratification potential this pressure

up loss. see volatility market many long-term capital mix with participants short-term We risk apartment too

challenges. in operating the we deliver our business, we our achievable with evident to transaction count in Integra. partners of our us tough believe can build-out is As road our on strongest face and returns when are investors platform take the to and ProMedica This

a all is that not money big imprinted To can paraphrase buying rest gene remind our deferred and Munger, day made have ourselves we culture, in you every that selling, gratification Mr. we assured in winning. and but over

see effectively longest Lastly, the the the I'm with to to the us management bench deepest in have senior convinced well is efficiently and our across delighted extremely I the my we evaluate data many appointed cost executive along within recently real business talent together fighting capabilities, and space. runway learning our of portfolio. the estate organization, which new I'm Supplementing partners in strength this roles look investments and and allows unmatched as trenches, it machine the as that reinvestment as to developing

of talent high industry talent the the very best-in-class In we addition from with attract who share from to Simply of may look future that our team, different comes past. outside strength from to that continue existing industries attract standards. business to want the our our we said, our the belief

And that happier Jerry could has join point, not Davis our that team. to to John I be convinced

for I'm and have one admired Jerry and Jerry industry. work years that many with will I minds of learn this cannot Jerry years be operating than John have multifamily real in and ever XX excited known and him. an his impact convinced from has sector, sharpest from know with along transform all more you As more the in him to exponential estate.

talent someone of join us let not unrelated If mindset of operating an that asset you for Welltower team wide squared, business, have outsider’s from or to wants importantly more are know industry the acquisition. formidable a caliber who related but acquisition and is J frankly or also know. open for for only please

up With questions. open the call for that, I'll

our take We’ll Hughes Instructions] Jonathan Raymond [Operator question James. first from at

the How about increasing already years? an these the opportunity opportunities remain with expected another the headwinds? landscape relationships more smaller larger or the about relationship after saw you don't -- But ask past I'm operator or you talked opportunities? just what's what those Obviously, future. a one and over to like and wanted relationships. wondering than they of just many looks RUI we three I in opportunities of established years yesterday have high-quality with in individual terms the the few investment of that Are Thanks. size as volume operators pandemic

good very very, a question. asked you Jonathan, Yes.

specific partners So, we see as business think -- housing the is most obviously, senior that if question do want which have about to of I we that business I industry, operating do -- your to with. already

partners new broad focus So expansion and going operating a deep than rather less going our is of focus. of is

partners regional countries, across are We for our different the looking striving for with density right? existing

we are that other, Now, this we takes dating have, both value a for a operators right? there each partners a time in time. I mentioned commodity. business of can have process. is the admired period understand we And business, there a how the to -- before we long have Capital in parties operating long that It for is are to add long very

business not are that to to right? capital, bringing the from or There's John operating operating the XX whether in we capital that analytics data of And these we and frankly and operating employee was of a business we type ago, of that a we what where the those business. with. an standard going need have drive And we're XX, equation. customer deliver -- roster is higher want mind people And At looking is other these about so needed capital speaking, for, business capital. standards, and Just higher of in ago, years is not higher service speaking, in grateful few the as we initiatives partners doing platform that partner, frankly understand XX and enough. now, any how how years partners are we thinking our us business fantastic mentioned business to is I we of XX, shift same a the minutes treat time, standards engagement, results for higher a significant for standards perspective, operating we're and partners the the the and fundamentally where relationship to bring

want majority volume to from announced of as volume investment question, your years. existing the sort we standpoint, two, the going an to partners to second -- you're Now have with the reemphasize, part last investment of going in well partners a of of see the that already I couple three as

next our at take Citi. Michael Griffin question We'll from

I you Shankh, IRR might or I just transaction how you're you pretty if seen that rates seem I property comments, there Maybe unlevered your relative any opening on but activity. additional positive another. mean, get hurdle would helpful. know you've you've more always be one an in about change I'm talked maybe investor. type clarity return any excited curious to know and about focused

think you -- for us different opportunities times if different Michael, about product. give types of

we're This three core you denominator see world that is So, under X availability type, products in pension last, either fund some have it, well the others, and times, flow institutional -- this funds, world of from across our but different other business debt leadership X us you is to years, very favorable You time that REITs opportunities, significant disruptive time as other a opportunities the a different and compete The years we team, buy do seeing right? of non-traded first seen right, basis. debt in -- right? all -- sell product because side the under of seeing very from situations. such buy every reasons equity that normally be side. the people with, might not own also very, call effect we're product because who facing the availability of from only This this very as we and or against, everybody countries across at we not get outflow, the

seeing we're and opportunities speaking, across in frankly, we're product types, that seeing forever. we seen IRRs achieve types, of the some -- frankly all So, product an to ability haven't significant very

(sic) America. [Josh Jeff to Dennerlein of Bank Dennerlein] next move We'll at

I asset the appreciate platform. all the on management color

like of start into far Just curious year about squared built are how the thinking Is investment XXXX? returns? payoffs we and as of how anything guidance there kind we payoff be of -- about thinking kind should in this happening a J is run and the then like as kind for rate full

you this We the out, you that guidance. show I individual of from I now our say, opportunity into and gut, opportunity done, When we items see definitely levels, has up to Yes. blocking tremendous will and and the relates amount Jerry across the partly tackling. J opportunity, you whole deck be now view on the in and in working platform, to the is see. right. so around look might not team returns those may seeing highest view a is clarity, we I and process. at There I which and is And want speed doing is included things proving what's the started tremendous that all and exponential really it's mentioned, agency workflows of look where will what coming I my scaling And in then perspective, what to you were to as and to of able asset move more that more additional I at think already which And here. critical. why is I'm we that and Tim's is is we're probed squared, I execute My and that an commenting Tim to what got The wanted what work things. mean, confirmation, focus came in because I I'll the it, that's and speak. got But, right that's huge. had are on we're we're trying -- show for management if not from aggressive on start comment. I'm through. going

many already is across many, continue bottom-line relates to we're will margin years significant and for it ultimately delivering So It numbers. improvement the board.

just I'll the and on look as capital technology an investment, at the right, on We side cost. this on side. human add

the here take investment. lot we platform that know we lightly we further But you of a there's our don't costs return as very any think run So, on and as investment. far efficiently,

And expect that return spent. a to a lag hires, and basis, of go-forward so, to us in a high in there for is I show continue be return. bit But about between and dollars prudent it on dollars very

to move Mike Mueller from We'll JPMorgan. next at our question

occupancy, what's business I’m the SHO could fully think full use curious range you operate term, when professionalized? to margins Hi. the of that it's your at and

said went happen, and If we Mike, and we might to going not back occupancy what sit be here to was I've pre-COVID be speculate to really If where I disappointed. pre-COVID I we'll end, but might not or before. disappointed. just I try that's what margin, will repeat will

to We'll Bank. next Deutsche Johnston go at Derek

In WELL. REIT investors following generalist community, the closely addition to lot of are a

we So, opening, Letter favorable it on the I in touched on expand this with can you IRS. Private the Ruling but know

are independent And platform? subject asset especially right? facilities and/or decision beefed-up healthcare I living XX,XXX think mean, given around drive growth, the units to And RDEA. Thanks. as really importantly, does that not [Ph] the earnings further so being what designated may how

that. on touch I'll Yes.

move -- owner together started where from in look at at. was a the what is it And I operators to when to you managers to people think percentage, as that. read way manager, shift. collect means, that's came go a a kind $X. paid $X.XX to everyone a economics let's was was operator the of you fee there multifamily to it and to X% collect So, just missed behind $X, $X.XX what the collect would you and spend spend that what bit of think the you if a a as was little easiest dollar; $X essence, I at you more this means get is And paid In wouldn't lot so you and when saw collect an I basic $X, -- world I history than fundamental look back fee say, mid-'XXs owner you

tremendous that's world, tremendous in fundamental much the marketing ultimately owner or to it how looked what cetera. And enabled in-house, investing it cetera, so shift in-house, we changed in And that bringing faster and whether move websites, things technology, is as these much, improvement means operators things enabled at et a All say, will us be into margins. overall. it the et than and and meals, the I or business estate multifamily step down relates There's care component. a a I there's business on the hospitality component, into More allow components component. to us margins. then call real that, impact break have housekeeping which to activities, There's I three what would that

And so, parts. our various three those businesses one to of residential have

we're step address to managing. we the in, be those as living, hospitality we But independent better at living, which obviously those our more this best the not move we'll into right deliver that component to ways, different able doing we how in will quality and well practices higher we're as service, as find management, if out take we real push be estate ways assisted meal of living our effective one our than out assisted what through et now to no platform, study that properties. revenue all cetera, pushed So, on the case

So, the same concept apply. will

platform. So, this impact is overall it will pretty our residential and huge,

that. Derek, one thing to add, just I'll

partners, and density to business regional think, only market for will and the operating not great with our future with ground or with ability we're execute you density is broad in the towards forward. select partners, investment working don't be with see -- is and in to we're great win our win platform select again, a I the with to on we'll our scale going to the strategic the that partners So, before, going for just a our mentioned assets, also do know, owners, not this the have platform it, technology our about but operated choose a operating going higher partners, I bigger bigger existing a and deep as going density think operating Just I our partners, right? and going

the very So, win-win, of business much and be. way on a it that's is focus a to got

take We'll from Michael RBC Carroll our next Capital question Markets. at

since How that has announced? more operators been independent was existing its mean, work or there since are changed Welltower, change goals PLR I has with willing any announcement? to with Welltower's or certain they noticeable given relationship the living targets,

holding ‘XXs their are thinking out from to are has years in the ones to building now, of ones who are us. was notion not in clearly future thinking now, forward together. business business from the where platform that the on The X The the is the forward go years from come realizing about and now, XX participate years XX what with needs want to

at Next, Morgan Stanley. we'll Ronald Kamdem to go

for on Good Hey. guys. Adam morning, Ron.

the terms wanted there was there ProMedica, not some kind it of if of Just of there's about assets. in in know the them, the supplemental. with to I reporting some changes Integra for place I'm coverage, ask of kind in Wondering structure. operators could new you sure the if comment the rent on

So I'd just coverage. hear the rent to love about

investors history the would be I the prior of kind think there. kind it given for helpful of

the And the happened north with have month, the of think to transitioned least But last far. so operators, the we've operators these operators. at X.X-month. XX dust will XX settles, I be all over it transitions Look, new by time

it's with operators in XX and on see, as asset, better right now, numbers upcoming smooth. and data overall where to deep trends. have operator. performance for And we'll share And performance on focus single the So, hands. getting focus XX you been in find their the has but to the that has the to buildings the right sharpshooter-esque performance, But soon the to have about every for months, very too have want conversations transitions been very been you'll

far. So, top that's so been the priority

We'll go with Steve next to ISI. Sakwa Evercore

of system, to were I'm how new just sort last in opportunities curious of the bit And obviously it forward little guys deals? tree might and there? on you the of returns was have active looking shake Shankh, could the changed takes what just if seeing very the year. distress investment I you kind the a sort the about you're of talk more sort out wondering that

to done. you just I've to Steve, of in this time after all add the something have has tell I'm Maybe I don't is I think I much opportunity there's only that add. sort would Nikhil where three seen countries, So, opportunities years lot the You seen in a been we that's primarily usually see -- that. IRR. right? driven, last of driven debt have types don't three product of by have couple And all right? across

housing So, to lower, business it invest space some Historically, call X%, an it buy it, call X%. said we I've but medical have IRR. around, interesting higher, X-plus office or interesting circa, X%, to call done is some unlevered senior around

seeing high-Xs, And seeing obviously depends I right? been finally very, say, are wellness where we're level. the opportunities. would sort in rates We're Finally, of, the have side, opportunities, So, where but higher. -- that's opportunities still on been double-digit seeing different have investment where some on the seeing they're landscape some the X-plus Xs, IRRs we're in the in we're very cap tight,

seeing know, But what's come want seeing we bases, locations, say, don't the of opportunities cash in you on bought other bought most I we're because couple That's with negative And right slight just very driven, assets is it's good assets to But Nikhil investment focused basis. because lots also debt driven to with finally, right but that starting with stuff tell that of, happening, also not I landscape. we're you I add location, no are thing flow. flow. right we have have nuance change will cash in of fundamentally have last with people the are to good equity cash right, transact, years, very the will anything? product, of sort And the we flow, of

we of transaction deal whether go highest in frame of to times and it the and us for the deal to preferred add just Whether And makes the pain I like with. sticking quality lot we it time a just and speed counterparty is the is other off of someone the what effort started it saying I'll think a thing initially, across these, was, be through try is counterparty. execution, with the

for recognition times across Street. it's like that the And able so, these lot we there's a are shine. to of that And really

pipeline the for about So, our very excited year.

at Anderson We'll take our next question from SMBC. Rich

the changes Does currently? Thanks. have that And we some them be of how could guys very, you pace can interesting the you qualify? much very also Will this indeed managers sort pass IL on so -- of thoughts around it. from have of PLR, investment that mean see just today you in-house PLR they have qualify just cut didn't for what that there the the -- to bring ruling? test portfolio there to If should I a for

Yes.

we is will to of that independent living obviously we I second portfolio Atria the relates take out. living I'll qualifies. would part How the living figure part. X/X as the we that a X/X about have to this of that portfolio. for well Think to, Canada roughly, Most I independent a example, we'll out that So John That's when own Holiday will will our at say, said independent thinking as will standalone, continuum, our importantly, building want our the I will building select operators of is very he we who see you This right? that what best question has platform with do right? that the do clearly with you on with density, have -- operator. before is in-house what a not out see versus what part operators, platform, forward in mentioned part focus

of we retail there sector the in done which where right density have obviously right? keeping and density the or when have finding in-house, XX,XXX balance always is versus region, wellness we this XX,XXX, density. partners out another that outside -- bringing the could with also have there, are in-house the units it So, have housing products We all our

quality just to operating do do you not and we what. platform the of for So, is does we'll frankly, a goal experience. our The better. highest to data is technology to systems and processes because the This outcome it operating who as and to game main as add the with is this residents do fight want our not partners something, best to that? John, employee build anything well deliver

moving going just that we're definitely success value only We'll build we not the It's to not to that's about about it's would that mean, drives what a can it’s sense creating moving add trying all fast and on see. stakeholders. extremely perfectly. the and address in speed, -- have success. everything, we I out imagine saying, I been the Shankh's of exactly opportunities various control And to said Yes. you

fees book. G&A because at. And reduced offset to moving that's end, moving of to money start that bit our just in services multifamily, we're where little where are it the of we be on the because sense So, the in property like heads spend the on the of there'll lag we management the versus a where

little and margins. in will lag it So, ultimately, offset will but be improvement bit a there, of a the

We'll at go next Sanabria to BMO. Juan

focusing -- growth SHO the same-store remarks exit guidance about Shankh, your you I that. rate on hit run think the to and wanted NOI mentioned on in Just opening

should you through forward So color 'XX? transitions hoping mentioned And maybe any there's as transitions -- provide going well. we RUI You little there? in growing incremental a can assume having that

pieces. So just maybe curious two just moving if you comment on those could

Juan. Thanks, Yes.

we'll transition in our transitions start the with that. piece, a So contemplation not further guidance. There is of

So, as quarter operating about XX/XX. buildings has of and XX% our of open first our

same-store has that XX% to that grows and of mid-XXs. quarter first Our

operating was average, of the the and that What XX% kind on open assets pool. of first in So question?

run The cadence of the exit rate.

Yes.

build you sort think QX if you -- the building know happens spectrum, through weaker we're So, about of right? occupancy spring that occupancy growth in and occupancy and it, is occupancy, point summer. the You

revenue, of if QX So level where your sort will, get you closer basis, you get annual QX, in of that occupancy build that average on right, a journey. an sort better to you

move run coming rate you right? situation than Think Now, of the You think before, bunch -- how our better in our probably about right? have as half it, well QX, that builds, call I about following one portfolio, have as as at for before, significantly -- expenses, last a better the So on revenue think REVPOR your beginning which a as the I've expenses. people year of down, QX right? also and call, -- half. other So both the you described maybe well rents just is and are exit how

your moved the which then is for have And We out. rent, in-place plays just year. that rent very in that a also who market going through operator up but large chase think how through QX, you also

were from be It's still We sub from So, cost if rates, X. to that is unhappy. agency that. expense which than should call improvements, it, glad an from, you sub think down X. very occupancy, we're lower It about from significantly is X

through think run rate get of higher to exit you the QX a than going much in you're if So QX. all main drivers,

Pawlowski to next We'll at John Street. move Green

appreciated. there's rent would today so more could you a any absolute of in for segments on me wall had they've seeing pushback your no portfolio much that a if how starting sense terms the are color there hit give And rents? just than pushing quarters, are be operators Burkart, increases just to issue John of Any recent rents? in

Yes. defining not goes the pushback. that. to. out, I'm a sense not of of not of pushback rent any discussion. a I'm aware It's response to of not market in No, as there's say, that, a aware when increase course, glad But to no,

that a there. best our phenomenal job of I the want paid don't reasons services of our care think, have what -- the and residents that, They cut. And think want any they they I issues done and to to aware increases. understand just partners important behind communicating increases the of those and for, the see have not we're

to I as 'XX. increase 'XX expect mentioned, than John, be in better I REVPOR

But gives is gives So, of we that we'll think -- better. environment today, us. the market pricing what see we getting the you sit as here sort

next Malhotra Mizuho. with We'll Vikram move to

building just upon elaborate. maybe pricing John, can the maybe Just or if Shankh power, you

as to see a earnings exit come higher both ability your You your of come rate, CapEx, the guide you Can talked costs about you earnings in, run on rate say, sort pricing and as in, talk about inflation push rates. the power. run maybe to

over after on from CapEx? context NOI? CapEx-wise, pricing COVID, You in, just on you how next Is invest uptick a is you said few Thanks. do see there And you evolving but needed hampered. maybe of inflation X to can see years need give the is X, rate come then, run what term occupancy similarly, percent some until as near But an not still power recovers? standpoint, occupancy years of low, us you

that. me Let try

on you the are that told CapEx two bought So as in assets. we what when on the We we the extremely new how right? do than needs it, or just exactly Holiday I And basis. cheap underwrote CapEx, understand last inflationary invest. we for bought example, Atria CapEx years, So a you we we from we an right? to CapEx other We portfolio. standpoint, and value-add to spend change plan told And three believe, portfolio, bought anything bought exactly what in portfolio that not first changes, predominantly one two,

not that when from about we perspective, we sort business’s you the anything do have and forward, I needs couple outside inflationary not increases of has it, that as we changed. think -- CapEx investments do value-add believe the have that going done done, happening So are believe you we of otherwise, told those outside

might don't big fundamentally perspective, plan, getting John a that changing if proposition investment. portfolio think But has anything fantastic very changed. a from look to a the sort what that like. return on reamenitize Now, has incremental I we'll value that of Obviously, and large think plan think I do regular the we're very CapEx

than a types. question I I and earlier good which to standpoint, all what to pricing about power and our we is across said add From the feeling other else very the pricing question, our John's think what are don't I across -- countries power can all product

been As strong up. a you strong. know catch to starting like U.S. is and laggard, been continue that to be Canada feels and UK has Canada has

pretty feeling we're So, good.

do John, to you that? want add to anything

of in because I are I the at come the to just and side, portfolio portfolio, all is world I again, so would layer purely mean, with opportunities the the because which Yes. well great infrastructure mean, opportunistic. returns of is just really the is highest age say, this positioned look value-add see value-add I of the another our on shape.

bit enhancing done, of many improving enhanced value it, what units to similar some so, proposition call fluff really very so. returns. would but you're talking that the that's But what all well buff, a paid very much multi about getting the for people And and and little have reamenitize, the

portfolio, within pricing question. the that the circa that take, portfolio, call that despite it, missed I to last a Vikram, are your you average have going occupancy. no of of and XX%, average on dynamic a So of of power and part significant there's the this or is mid- you of room right? to the from sell, standpoint, the rooms I changes that's we power half as because to properties increasingly portfolio, one a will call our no bucket tell -- portfolio to give power move occupancy just point XX% more there get is the to something mentioned There, in part high-XXs, have get portfolio, we'll for more you it, pricing that that sell. call raising occupancy in the frankly, is I'll the we the to pricing high-XX% because, price

So to happening is will that continue and in transition 'XX. happen

Michael Citi. We'll at take from follow-up Griffin a

and question. memory on I care. Do just to have assisted assets a clarifying coverage heard is this continue ProMedica, What I don't wanted on that happen recall the I if you earlier, those? operated by that to the be the handy? but living

Yes. EBITDA covered Those are basis. on one-times

go next to at Bank. Derek Johnston Deutsche we'll And

habit the you possible you and view John this or I make XX% occupancy on as staffing it. level do near in expenses? …won't get increase the 'XX correct to And levels wrong. fruit please team property But me that's the housing, question fully agency of low-hanging what senior to staffed, relative percentage But in for as a guidance of of back at pre-pandemic I'm agency believe including levels, as modeling if are and labor labor especially accountability. to is,

will to try part take part Let that that of and me Tim of question. take

just of tell this as should, labor modeled. people you plucked, with do of a lot best-in-class working weak weak place our get leadership. there's it will the we agency a is, a going this Frankly, effort function Tim what frankly, -- do so period know. right fruit you right So, operators improvement. to but of, that can will tell is view low-hanging on. in that I this a that's I as be is time, that That's But management. over not view we see fruit, And don't that a right? we're we what's So the

by X% but just need John a be As experience. is means, also when full-time number. with said, it's question needs to in to, cost, X%, actually you and to to customer really a think also, that no employees alluded of as get I'm culture an but not question start coming number the the of I that want you lower. below I've This substantially happy is achievement from That And communities. we

a perspective, high-Xs compensation. of we're a From as modeling in essentially percentage the

came So pretty of from we out where flat XXXX.

next to We'll Pawlowski Green move Street. at John

to needs substantial to I'm how terms you're what assets. on IL Thanks. technology guess Welltower just self people, units? before operate actually actually operate a these of I Private one Letter follow-up just we the see in else had curious of internally could happen Ruling. I able systems, quickly amount

Yes.

have, when a complex. if systems start at necessarily with So, it, to I'll company what comment to plane at if one which. into could need fast, my experience, -- two just speed not past happen, look to say the I would at step on merge, to what pretty mean, the happen and look from happen and world but okay, right? That's fly to the way say, companies it not they and you is simplify a But when look that what I lot really would the that you their

I've we're to be are it Obviously, of some faster that back in modules. what right creative the mentioned we now But on could previously, the there. existing it's going using going building, way. it modules stuff by as so, largely -- be we're generally, timing stepping And existing -- with wanted be can out if to that team. faster what There's

that And take so, either. long doesn't that

deliver is focused The fairly and all not issue the doing about success, fast. it. can focused to bigger speed on working It's stakeholders. we're It's on delivering us the go success. necessarily people the So, success us for we're about with

go that's But speed could at. is the pretty my fast. So, mind where

some start in calendar It assets surprise manage to will not self that XXXX. IL year some -- me we see assets to

And question-and-answer back management conclude any turn closing session. that the today's over conference does remarks. for to I'll

call. conference that And conclude today's does

now may disconnect. You