Welltower (WELL) 31 Oct 232023 Q3 Earnings call transcript

Thank you for standing by, and welcome to the Welltower Third Quarter 2023 Earnings Conference Call. I would now like to welcome Matt McQueen, General Counsel, to begin the call. Matt, over to you.

Thank you, and good morning.

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

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

housing medical Thank you, and everyone. of on allocation Nikhil the and call. John activities. morning, the of capital in our walk an performance our you update Q&A outpatient revised also will review sheet Triple-Net Matt, I'll and operating our will Tim businesses, section participate senior guidance. will portfolios, highlights good results third and provide through quarter and balance

to our strong to a which continue result expectations. report another Against increasingly I'm of backdrop exceed operating uncertain macroeconomic pleased outlook,

Our and level another Senior revenue strong only that seen gains but also continues to highest of by marked build. September double-digit that over occupancy through have growth, QX, growth occupancy pricing report We're which X exceptional both Housing years. levels, to last occupancy driven the posted approximate the we power accelerated quarter portfolio not delighted

standpoint, X% increases outsized to continue reflected by unit as nearly From achieve pricing growth a or we RevPOR in rate revenue.

recall, XXXX of historical largest until to wait This may year, its same and previously operator you the of January maintain we year, to increases rate our last cadence XXXX. September push As elected will increases. pulled mentioned January typical one of that increase forward its rate operator through therefore to

recorded expense the our outperform ExpPOR expectations. company's growth growth in unit our The similar and side pricing the on what lower this QX of reported bears continues per power expense remains room top repeating line As We expense or we that history. the elevated pricing year operators' occupied lowest a growth, of it reported X.X% are our to result the in experiencing and appear than business is story to strong. may that reported result,

by which X.X% record in of driven has quarters. same-store substantial largely controlled the room, as SHOP it marks profitability in This increase points highest expansion, our is step of per the quarterly occupied and basis compensation since level XXX history. margin revenue of a growth our for This expense strong margin another a level margin of yet of pre-COVID. highest generated company down in combination recent represents recorded is XX.X% the we And NOI achieved improvement

XX.X%, highest XX-plus in fourth and percent growth NOI the of company's in recorded growth growth came the consecutive quarter history. for NOI our second quarter level of the

external are a attract are the we pleased investment that can also profitability we right mindful significantly believe below where long-term direction, the that in industry pre-COVID moving basis. levels While our below and margins we're on remains capital

managers Our our to valuable superior strive and a for choices retired deliver product, provide experience seniors.

need to U.S. highly highly product the remains means the even rate focus differentiated remain high the at levels. should at they services, if Our increases to continue while operate the and in U.K. we on end and that elevated affordable

corners serve than is residents fewer more DNA. of many poorly. partners operating said not cutting our I've serve our As that recommend well times, them We in

resident improve We the so items will result, to our to the customer believe will of improve operator a right very Conversely, our the all doing with one stakeholders. to resistance, the which key we'll path that and As and disappointed our all ultimately take of impact the focus of of satisfaction. is employee [indiscernible] experience. least if work operators experience employee be

as delta important optimize. RevPOR minus the We the continue most ExpPOR to to single operating of on focus metric

delta sit ExpPOR sustainable of here comment too which I we that the of to XXXX, to level is I as RevPOR on specific to can need get early to minus margin. a related it anything expand, believe While today,

outperform AL IL. a and product of continues standpoint, U.K. geographic standpoint, level a that And were From up Canada from experiencing. growth U.S. to to finally the caught

do in our further 'XX. growth have believe to operating international 'XX new both to with Canadian earnings significant few be business we retailing next And being platform the of forward, will our businesses in We our going in our weeks. launched and contributors

closed we allocation capital and another in QX Last never about quarter, in $X.X we billion. a From pipeline October. spoke busier. million roughly have $XXX We been of $X.X a standpoint, billion

finish have Additionally, billion line. of we another $X about the cross to just deals

contract, deals will under rate The of near-term continue trend higher-for-longer access will 'XX. execution equity investments on to our and actionable, large $X better and in extremely but environment these debt the Beyond this challenged this depend will that our pipeline suggests market remains perhaps get these and billion in of capital.

stack] opportunities evaporate our to credit great senior investment stack in types SNF side, see the opportunities [med to on on. with and selectively We're equity and up making investment universe housing constantly opportunities we're These being equity levels credit pinged with from geographies across of protection large exposure. that dollar investments credit favorable seeing highly have basis continuing seen transactions. with whole typically downside opportunities the low-leverage We're product worth last in U.S. and and returns in both potential achieve are pursuing and

we that duration. you through lens investment remind measure we reward have to which a risk, X-dimensional opportunities: want and I

did substantial do than days, find and higher -- come of recalibrated good times Given In of history ago forth same higher. last XX returns highly similar profile, risk risk rise markets rates. of thresholds XX what rates we many words, these and for and can a a need much the days the we over but with -- lower other with lot cannot so where thresholds out a period of -- when a real return the student sharply we of deals has real have X today these we or of higher

higher. guide to to we'll If real higher, continue rates continue our grind calibrate X post

a achieving the sellers markets changed as we perspective, have liquidity. uncertainty, geopolitical the balance only adjusted sheet we macroeconomic, Xx also at reduced we to of have our fiscal the growing many understand recalibrations a from the the hope levels far, and lowest amidst XX From are months history, net times, remain these best no represents for So have in and nearly just to EBITDA decline which to one recorded our debt ago. pleased problem

economic our to us or obligations which delighted week. need don't but Our remain that and a [Indiscernible] balance provide direction I'm gives offense will on next to sheet flexibility the We meaningfully blow, if don't shelter we grow. clue strength have wind or the environment meet fair weather opportunity

of all sector real time you when wall maturity is commercial the debt a exactly a As at in [Indiscernible] capital estate know, is market. coming debt

significant capital is lot keys if otherwise, will surprised be not of will raised to be need a lenders. dilutive or the returned We to

us to sounding Tim for grow our existing environment cadence shareholders. only capital. have if we broken can also At I reiterate for grateful on only markets ever look accretively the to busy can and we of as want a on that keeping ahead risk if if access growth am I is to to externally like Nikhil capital to that promising end we'll grow for seen. looks partial and investments I that best to we and basis be value capitalize best-in-class the extremely record, up of continue have and team QX a certainly the spend on we shaping Year

most I I areas of are prospects But housing galvanizes shareholders the inside those as hope our and as interestingly, are and senior transformation are capital exciting exciting our operating that activities. operating the not the you as excited today. am results truly Welltower platform What especially digital John's about industry. of allocation us

XXst business this the to primarily individual process and nauseam, we their As own business, communities of island. discussed are we people-driven century of technology lack have ad on where refused accept infrastructure

of and last tremendous may from bar pilots experience. XX advance We can Welltower X.X on days how robotics is and what to backbone far solutions artificial and have around engine room around resident technology made ERP buzzing a the raise scaling Welltower's traditional intelligence. employee and we like CRM technology solutions the and like, the technology look strides for with in

and goal experience, of to simplify all and the elevate growth. Our NOI by families and to experience customer lead occupancy is enhance employee the the delighting should which and community their

only our owners, corner we for sustainable then have partners has which multiyear and do inspired earning achieve growth a to rate. and turning perhaps return satisfactory less the Then long-term a over I truly that double-digit than and shot decade. we're been at My are hopeful compounding are last the

in build owners, blood, more we're and favor, from the have which our you, supply on our backdrop to platform demand tears. value-add is focused and sweat While with Alpha as our fellow quelled our funded far

John. to over call the pass I'll that, with And

that but Shankh. another quarter. you, a again, Thank great broken like I sounds know record, it

NOI operating same-store Our over total XX.X% quarter, housing led XX.X% growth. portfolio growth with year's year-over-year the by portfolio prior the generated senior

are forward We the customer focused and and that driving methodically is results. experience moving employee on

relying with effectively identify We brute started on and our to issues raw force, opportunities. labor

processes to the just business, and the improve data-driven and organize and the data continue to improve systems the beginning. at We make to we're decisions

the across the was third portfolio's quarter. was extremely year-over-year X.X% Same-store XX%, quarter XX.X% prior quarter strong The medical XX%. growth year's portfolio nearly third retention same-store occupancy of by over NOI while of X.X% office remains The revenue our growth, X.X% portfolio combination function housing basis senior of and points NOI RevPOR increase growth. expense occupancy average moderating gain operating in XXX same-store a driven was growth the at

the coming control substantial growth the and The X.X% strong led points. of in expense over in basis prior for growth XXX at quarter to revenue quarter. margin expansion remain Expenses year's

times, expenses are low mentioned reasons. relatively over to in is many marginal As fixed. occupancy of has grow expenses obvious Many the Shankh XX%, continues the increase for as

Chef, other Head in The of Each at property XX% are Maintenance Executive and maintenance, costs of an occupancy. regardless level. utility bulk many has occupancy Director, largely Director, the factored

per expense continues expense enabling our POR result, improve margins. a or to the to the low, As remain business room occupied

our in quarter strong the our and led of revenue The the recorded XX% to with X.X%, controls, of As the the X.X% X.X% was history. fantastic Canada strong revenue to Shankh our Canada in mentioned, growth and growth at U.S., lowest the and the respectively. All growth, and X XX.X% region, U.K. show each combined XX.X%, growing NOI have expense XX.X%, for U.K. continue and with respectively. growth at the starting ExpPOR same-store U.S. regions in

The expectations. management perform above transitions to continue

operational our hard we operations to grateful our journey set to are accomplish so the achieve operating to to in who out are we partners ensure We that improved excellence. that working

Our a operators customer an to business continue superior the provide complexities of the of and job amazing do to through employee managing experience.

to population affordable in deserve they The who their assets to life now large good the off at of quality hard enjoy senior and sacrificed and and They of and services fruits paid remain product off of Many life a ago, XXXXs, during very they their their have were worked point homes and golden Depression. sell their the customers a years labor. now home, can The are a their our their have purchased deserve. the they born of segment all where which years, live enjoying

Our the focus partners benefits operating all with experience stakeholders. improving employee customer and our on

For by and both benefited community are example, processes. employees and and the labor our the systems both to customer improves agency employee the focus customers materially of relationships agency with compared on permanent employees, reducing our lacking high-quality random experience knowledge as

as us owners. agency well a competitive compensation fair the shareholders at communities benefit middleman package company and enables the leakage to with our eliminating receive hard-working the reduced our or ensure pay vacation benefits agency to and the people as from Additionally,

is the priorities. can employees ensuring of one care deliver Care and our of essence provided is service top the outstanding

time stress will employees. efficiencies on increase the platform our operating the available and for reduce Our care

care disparate one site, antiquated per at, over Director CRM, at one systems. [Indiscernible] the hours The move-in team inputting documents are worked example, systems. into For members X Executive the my of spends the modules

not on Our platform fully and customers and leader time, in employees, the which documents the to errors modules potential e-form integrated, paperwork. and all the enables are focus saving the for site reducing has the

by for the continue us the XXXX. make to of grateful actively and platform participation rollout. on the More the platform. who the working progress success operators engagement in are substantial leadership related ensure of our and our We to to I'm with come

I over call Tim. will turn to now the

XXXX investment today Thank our updated activity, our balance Performance our My results. quarter, Triple-Net you, year and capital outlook. the on John. liquidity update, in finally, and comments of sheet focus XXXX quarter our third our full segment will

year-over-year Welltower impact adjusting of growth higher floating to XX.X% of income funds the reported after and per diluted rates rate rates share and normalized and attributable XX.X% or $X.XX from net debt. third HHS for diluted $X.XX from year-over-year quarter growth FX stockholders common share, per changes operations representing in and base

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

of our to in turning quarter. the the properties Now performance Triple-Net

reported As a Triple-Net coverage occupancy [indiscernible]. lease portfolio and reminder, stats are our

X/XX/XXXX. trailing statistics the these So reflect XX months ending

In coverage portfolio our senior Triple-Net agreed X.X% to convert increased up of lease the year-over-year and the StoryPoint In portfolio, trailing RIDEA, X.XXx. regionally Triple-Net XX-month fourth XX to bring properties to NOI housing in managed which same-store will from Midwestern assets focused we quarter. quarter, XX their EBITDA

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

Turning to loans on in senior led $X.X $XXX quarter, capital housing closed and investments. by of activity. billion acquisitions We the operating million of

resulting U.S. investment. and unwind geography $XX distinct the net that close in joint The closed in portion X this in [indiscernible] the quarter, U.K. XQ As announced by reminder, of venture phases. a will was quarter portion million last closed

Canadian also we continue balance raised spend $XXX the and quarter. gross allowing proceeds We activity an year-to-date of $X.X year-end. issue future our sheet is fully us ongoing the and the million investment extinguish for to fund in close And share, per to price of through average fund to quarter, approximately expected debt In of position opportunities. to ATM portion by investment the billion $XX at

This segments, helped our recovery senior post-COVID to represents business X adjusted versus quarter continued along including X.X at end, continued deleveraging capital across business, X.XXx ago. year which with the operating within drive housing of to our debt turns net EBITDA activity, growth

continue to drive cash future as mid-Xs to continues a the recovery on EBITDA higher. settle to in quarters senior trend investment flow post housing basis debt in expect We near-term forma and pro to to adjusted downward activity organic operating our net portfolio in a

we proceeds intra full million dispositions in capacity $X $X.X $XXX available of remaining with filing in and billion from our of credit $XXX including to Additionally, cash current and cash this balance on have representing gross approximately and loan post-quarter billion, investments paydowns, October, expected a revolving $X and near-term capital closed million equivalents in date line along of billion near-term liquidity. activity,

to our year year $X.XX or $X.XX income issued per to net previously of per and to night, diluted $X.XX XXXX range moving a updated outlook the midpoint. Last full guidance. full per for our we stockholders Lastly, share share to $X.XX $X.XX normalized diluted attributable share common of to FFO at

offset the normalized FFO represents year updated full Our $X.XX a increase expected $X.XXX allocation a increase of guidance. normalized share is midpoint in drag, -- these at our operating what This year increase year previously in updated senior $X.XXX are closed no is partially G&A from guidance a NOI, increase stronger guidance capital and investment date; per from beyond a activity, and expected the increase higher assumes housing reflective further by penny of in increases to dollar. full combined which

XX.X%, post-acute, of to X.X% finally, of outpatient senior medical, X%; of housing growth XX%. driven same-store Underlying to to XX.X% long-term an this total X% subsegment growth portfolio senior Triple-Net, housing by to X%; and estimate FFO X.X% year-over-year to operating X.X%; guidance of is increased increased NOI XX% growth

approximately midpoint X.X%. trends year-over-year of which increase growth and by with growth expense of better-than-expected of The expectation of is points along X.X% basis driven rent an growth year-over-year. average approximately continued Underlying of is XXX this approximately occupancy revenue revenue

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

they extremely stabilized by our is to combined to serve as earnings important that may But concerned. or nonetheless, X far want you, a a our run as or not seem drag Thank results. as as on rate attention On may QX. Tim. it's underscore items our to near-term actually for conclude exciting I turning important your basis,

to to these current properties service operators, has RIDEA of First, our our these we quality invested capital. one staffing, other StoryPoint convert historic StoryPoint, ran XX acquisitions. Nine properties improved lease operator a from have convinced and partners, up Triple-Net a and structure. and operators with are recent of significant them cleaned RIDEA of is best billings, X structure

September. to average XXX of XX% is the since in XXXX is the These up over. move-in properties occupancy they took of up the from beginning of numbers. XXXX in since have basis year XX% new the RevPOR gained RevPOR of points another XX%

up of stage growth beyond. complete This value-accretive flow setting bottom cash 'XX at the Debt-to-equity cycle significant for the perhaps and can is the the most in we conversion today. are transaction

contractual to afterwards. As we and we right in relative managers breakeven obviously take only is have in XX previous about in expect bet to great of the get great And XX and cycle. recovery I'm to will all flow. are our the the our experienced upside conversion, run point the that work if recent at our Legend then by shareholders to This we you have will can rent, assets willing the trajectory cash this months

We we the and check to the they when a a continue on achieve basis. to opportunities can can attain our that so expand great operator with pie and partner, when for seek additional we solution win-win quality similar outcome boxes of assets long-term an outcomes

in Kisco now the area, properties strongest of operating with Denver Kisco, Second, in XXXX. operators, one of measured Boston partner, position Georgetown maintains recently completion opening in a marched by [indiscernible] both Metro also of buildings and operating in dominant another our margin, one nearing affiliate metrics, MSA has occupancy an Balfour, Balfour. our and in other Brookline, D.C.,

of welcome to Schonbrun Balfour and and stewardship for the thank Juroe them and of team for next Colberg and at best the growth his We the these partnership over their and phase Andy take Susan wish Michael all their communities. lives

flow which teams our quarter, accretive you Project described least, Frederic significantly Cogir. stages to when our of to last final the Last be above, with hard transaction, I Like this and working and will stabilized really cash not with Matthew the Transformer, at StoryPoint but communities growth. transaction earnings

in up launch sides at working the transition. 'XX the back This near-term for proud tremendous are despite brand look frenetic added growth Our have completed at team. will both above, which workload coming cash next a and phase flow people are to is is and really combined and the friction they weeks, earnings 'XX feel like another on transaction some achieve and others and seamless yet as the in our few to have to

card from you report QX. we to I XXX and and earnings you have Avery like points that since to and Sunrise Signature on occupancy basis cash Oakmont discussed would of with approximately Speaking Avery a of transactions large flow the Oakmont provide previous and begun. Both growth, have in transitions grown

significantly up, housing Welltower, the share setting remain our are focused operating business powerful substantially capital the recovery accretive cash that in of for it employee and sum than per at and 'XX the this business, operating deployment came higher from. for platform a we an of of to accelerating To getting earnings generating rollout trajectory on and all level us up and long-term 'XX. senior flow where elevated earnings customer an and price We, experience is

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

Instructions] first question Our of [Operator Mizuho. comes from Malhotra from line Vikram the

sort interest sort give the deal guess, could can And a hoping be growth with external compare of contrast explored, interest of that's I -- your you I forward? approach that of entity front, of us to that the yesterday, of we could of granular you was X been -- your to sort or more something going you peers merge, is you we on you? of process sort been line and have saw great and that sense opportunity as of have was

outcome not engaged on just I be them. great will of deals. don't other engaged, not and people's in to We seems comment specific. Vikram, we process, be were a that it's for It both So like

for do what we we assets times, many at a XX transactions we portfolios, gotten. is a -- even time up when right have transaction said we that do us is one now finishing As asset works of portfolio if Nikhil

XX-, from of a assets. collection XX-plus We have picked

there one than So small believe deep that this what which that we it's very, have last broad time, are million. like we transactions a asset assets with I like, believe at $XX works That's on of us, we sort -- going in for median focused size markets. And million-or-so and our of we're very in of done transactions years, will X that's in bought assets, going what continue. the constitute $XX we've is genuinely

ago, the no today, mean We there will I of see is, potentially we be be billion opportunities. will talked you [indiscernible] I have surprised, guys recall had a about we what not opportunities. years that $XX will market few

we As coming than due, we say floating loans how the today, that's bigger much actually can given how over. here debts is much that, rate of TAM rolling are sit

we I'll never question, is never growing But can share company M&A So it's the we have long as you that have the not not that engage a mentioned. capital large and to we're to your access interest we it answer it. liked. in to as not part saying not speaking, frankly And just us. no something on I'm basis. problem do do process But will much specifically and engaged I've

Our comes the with Siversky Wells next line from Fargo. Connor of question

a guys by like the Cogir transition be you then look like the Regency the Cogir what is a got for quantify study case offer And the good those transaction X-part the can I've there on for outlined operator the NOI upside that And gauge you broader as way of to sense NOI future? ultimately, potential transaction, the the levels to in deck properties potential properties? But in managed a portfolio? could is finally, earmarked from in occupancy here. to look example and a to what that this one

XX% missed taking is I XX%. Cogir you and other sorry, around and property about, not well from talking What about roughly I the we'll that? was question, think the if were I occupancy you properties talking you're properties get know, that, there. your their occupancy if think of margin, as of part obviously is XX% runs that the we And understand the the question over Revera, Cogir Connor, correctly, Cogir transaction

study think good those British in the portfolio? a So Is I that deck as a NOI case gauge broader in outlined Alberta. the of Columbia, Regency example use the potential near -- for you for to Cogir that

Yes.

this say, XX%. particular This still to particular believe that portfolio, margins very been about that Cogir to go XX% that case, I improvement has margins, call you we're from portfolio a transition be I from, will see -- XX%. Regency will portfolio -- Regency well-run get about, able talking believe, portfolio. think the was I in XX% In it, it, call to this up the better, will will and around, from say, go

So I think in particular we than enhancement should see case better example. this Regency the

next the Juan comes from line of Our Sanabria with Capital Markets. question BMO

acceleration occupancy Impressive September. into

what curious revenue letters, Just indications are customers. out early the for existing of have rate the already. I'm gone to some increases assuming

is curious just that year-over-year existing customers? to increases for delta So how looking rent

So the speak, we in. sort discussion Juan, That's you finalizing right? as are know, of as that we we're

achieve expecting a -- I remarks As a purely just to for down very standpoint. business. capital yet of strong are. to of you not finalization remain customer any of that elevated level from is to that expect We're I coming where at there not that's But years we suboptimal my place, mentioned industry, are business for we the where like can a us, not attract an prepared in margins the the we'll continue overall level service, costs be that couple and last believe

continue expect very to together, putting strong will think things be to that that but these all I So What early exactly is, rate you is growth. will see say, strong. too I

the line Hughes question James. comes of with Raymond Jonathan next Our from

the ending the clarify said could comments in it the prepared that one might Kisco, gave you be typical could didn't portfolio more, SHO seasonality And that quarter? you you quarter. quite then on the might the in just I remarks why merger fourth that understand maybe in, drag if Balfour case? third sneak be a Shankh, outperformed your the where I

the continue year-end. pool, more that's Is something I be would any Just great. so same-store there expected color by think that else? U.K.-related changing driven to into additional

Let one. me try first the

I the So that not fourth growth say described quarter. together That's said a significant I drag be on drive, Kisco specifically be point that a the fourth 'XX about transaction it, all the the Balfour. quarter. on of to specific I combined, them earnings. I did stabilized should But of call for could a just things be driver trying drag on or -- might X was and not

And on question business, correct. your on the you're seasonality the in

are strong as probably continue Shankh historical we very outperform to differences occupancy We between transition the the portfolio. seeing actually mentioned, greater gains portfolio, the see we've in in what major not portfolio, than core seasonality, we transition and our seen

sequential the we just you both know, basis I core a X the in was sequential in portfolios transition portfolio, portfolio, and the was Jonathan, about around roughly The signature Avery growth basis talked majority to points growth and XXX as to the the occupancy from of achieved growth transition did occupancy QX. Sunrise of occupancy Oakmont, XXX points.

So almost store double of what did. same the

Scotiabank. with [indiscernible]

G&A year, that the year. there G&A how get know over growth year? bit far a about next And how could this is, how trying to trend the affect could of along build-out of John's little to that was just next the preview hoping and maybe over was like I understand a Yes, group I and

the in have mentioned the I go you platform. G&A increase think I to fourth quarter least back at year year, as a call, as we elevated of if early Nick, build-out of another

So you go. should come -- long, have we ways to have we long a but

So geography expenses a of versus where revenues. you G&A versus NOI, see, just

we that another the build-out, another item, expect paying at looking build-out believe in pay least purely spades. off, -- of would at year do off started of G&A that we platform to is a build-out. But year just from purely So has

Our the next comes from line question of Citi. Michael with Griffin

a reportedly I you're not you engaged, you you last the year, here recognize got Michael. It's situation said with within space. engaged. actually won't But M&A office public-to-public Nick similar medical Shankh, Joseph involved be in

about at talked an look buyer in the being and base everything. past you a focused You and IRR that lot cost

broadly, So it situation it just seeing? sufficient that office something medical curious underwritten you is opportunities the about or in sidelines Is that's kind valuation on current more and here? of keeping you're aren't the other this the returns against

comment don't on other So first that mentioned people's I thing I deals.

because what I can't point So unsure so But like. we some underwritten returns profile we class -- even long-term bet right? asset where on like, quarter medical color And I are this on looks at nothing to we're to underwritten, the land. inflation think a make at the versus looks the comment I long-term don't what unsure inflation I specifically we're that provided have growth huge office, this unsure that of the last an know point

a very that's important So point.

But can occupied -- X.X% that medical a XX% do a can opportunities call traditional up stable think can or and office, stabilized growth long-term, finding see the are higher. interesting leasing XX%, and occupancy from whatever we We institutional opportunities we at where which is XX%, office provides us. a we We're assets not with increase small where the we value-add. investors rate buying medical for growth it is, for it, good so

senior unlevered will opportunities in value, add For it's that is, only a reason pretty available at assuming living it's opportunities We're I'm thing is the the and we that relative value. picking the be conversation. plus second that's off always question, us, different one reason. will And -- don't side was If easily right? much IRR double-digit the that add we low to positive

it have of So [it we opportunities where suggests I'm no not think I is today. you. reasons By that out engaged good specifically no it's a don't and deal the why deal, that to good no not have see it's the what idea we relative because as or And evolve] I just will just that's will of interest. deal we a pointed of mentioned question not in I a means because

from with comes of the Josh line Dennerlein Our Bank America. next question of

terms very question been portfolio active in on Shankh, proactive you have of management. you've I mentioned transitions. a the

You and results strong How such would recently success achieved these Oakmont. transitions quickly? have of the future just us driven you lot operators how with encourage early think a Avery in so about And portfolio? to

public not I'm to things Obviously, us going that don't answer to public call. first call, you secrets a Josh. called trade Yes, a question, divulge mean, I want company the on on

we'll happen automatically. But like this say doesn't that

I've said have we learned. As before,

our learned and been frankly, over this, lot done of We from the school have X, that lessons a way I've call X have it, money. losing transitions years of doing old last, we

done what wrong. learned we have have We

bleeding on we of We prep gotten better how that's to and What the do can -- of frankly, an side what John then process do systems taught then we work we you how have and make -- and the have to gotten right? learned finally, need how we sort impact. other stop us,

-- the So last over few it's that just there. it's we we gotten evolution. It's I'm process years, very happy have that very, and an are a

performance. is transition? to point X,XXX view transitions, we performance. optimize do more the on just the from trying of depends transitions? Now the It of We're our Would it last

were right? I've keep in we that said operator, in this it optimizing business where think and we many, we'll It's are. opinion, price product, business location, opinion. our that many is So of times kind we that's humble done. point it And until a our a optimizing of

that guarantee journey we a about if even to to take willing that even least results, And near-term have appears, of short-term future It's we hits. short-term I've the written mitigate do no hit. how from achieved it at that I'm

next Our with the of Rich from comes Wedbush. Anderson line question

there to the my always mentioned, rate type on want view number you that that number that the that way some that growth. XX and RevPOR that So sustainability of ceiling way sort a to rents there's business. specifically, just implied years and I of some talk John along old. growing It's the for been was people of of are at the doing And of perhaps point X% of

always that but to it real I'm sort, was there's case, don't Now that I correct me me know a of if some wrong? seemed ceiling the

unpacking rent so and comment wonder if I might at level I that described? you any the though, grow think kind in for I But just care some considering reasons the the between involves maybe the would Number and of rate about maybe be pushback how rent it's could muddies rent, two, future conversation. what it would

John, me added. let that try to finish of start Rich, And sort anything you I haven't that.

a in So long-term a of the tenant I the middle think if about reasonable conversation your for think have that you market, right? is you --

We high-end the a wealthy we is very portfolio talking U.K. to is product and customer, increase them. the sold to focused customer incredibly you -- and is our on mid-market have there primarily our because rate product, U.S. very think So you're customer about. remains have majority -- affordable about our of

pushback. any seen haven't we level, that at And

in like point -- second classes, Rich, asset have you multifamily is seen you XX%, stores, The never other raised have to consider we have XX%. others, rates

We have So whatever, never X%, like X%, digits, have we XX% just rates of sort single raised high that, right? remains what sort of is done.

an So length you're put stay, stay talking it's those put of average aside, average months. about that much comments length of in just all of more of sustainable the of than XX But you understand, context think.

talking X increase So of percent. the we here might of about be X year

of the But She's first is who understand, he or in community. got longer she year gone, right? just no the person the increase,

the you if So very services level, you. see if you is of willing all the you that you if the those important differentiated highest will provide at provide to customer point, pay your put together,

a between that year said year what we any rate, and are what market right? an on a will said on And we us, I've RevPOR have that's focused us of number, focused but RevPOR the times, right? we we're haven't not Now I last the idea will are, many as pushback, we what seen many, before. I've individual or very yet. delta no on. a there's see We're gives we market ExpPOR, focused call if much shall the adjust, give and and

different years, people very multifamily and difference I Yes. years years where here. It's probably, No, it's about between there Rich, for -- agree. I you're fully and and situation thinking it's expense and -- the and RevPOR think POR are a

next from Our question James comes ISI. Evercore with

staffing sustain more what was and really general of just trends if pretty a SHOP little wondering I certainly continue I portfolio. sort labor embedded to could you of And to for regarding in the or provide and operating have you there, conviction growth ability appreciate the color the expenses? capitated leverage those the attractive

are pool. I'm nice General the or beyond tenures, lower what of and on I growth thinking and it's for Manager, labor turnover so more expenses the the lower better recruitment just profile terms shaft longer you to in again, And just getting talent costs labor? a mean, levers are contributing

are we down you is seeing coming significantly. correct Jim, turnover are that

availability talent And we and part attract getting of partners seeing right? is We and are are seeing that significantly. of resources business, other in of the the be are and increasing business to that them our employees keeping communities technology wants operating better part our to using who overall

So that to sort we ways survives, of out -- right? it's -- better, are whenever business if crisis And you crisis, seeing. every what figure things do the get makes hit by it that's better a people

have continue do ExpPOR we minus RevPOR can conviction that significantly. what very journey And

line the no times, future. a specific have on specific item, our thing, a to on a this here said specific For quarter, idea. I million we goal a is not predict

gives gives to us is and market. us. market see goal We'll see what better what than market do Our

is in my Yes. my And on focus I would add, comments, just productivity.

want employees we be want our employees well. We So paid happy to happy and customers.

increase all that to productivity want of business accomplish so also the to we can We of that. manage

that's point. take-home I So really, the think,

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

are Curious, guess, of years? potentially how see Yes. do trending next starts you how couple today? I senior you thinking the development about, housing And over

I'll panel. I or what days NIC going was to Conference ago, said I asked I'm a ago that XX repeat on here. week be was. the whenever repetitive question just at the Mike, Yes. this about

have you to provider going debt senior housing today, I a think Vegas. housing have in better you And today, you're senior luck equity you're luck development if lottery. better provider in a an a if buying

sense where where like not and even any development more my capital like than hope there. make starts the why senior margin of economics doesn't X the cost cost is, construction is. understand of any is. the going it's any business view have tells where what any seems I It start, don't and housing it is you because given there that is I should

playing quickly. think -- question? people's of people down. moving other part I and you are And down Mike, continue any think stock that's closing pretty to down money, other seeing, see miss I that with did I it's coming will still you any are your

it. was that No,

Thank you.

comes next the with of Our from question RBC. Carroll line Michael

that presumably in that have the of harder are having Given quarters? dislocation these care you in seeing do not, that issues liquidity at that become expect market, to a if the same the mean, over storyline your several all that And the now? level private next are provide it issues? will don't I you seeing this operators is marketplace versus bigger right we're the operators for

wants I of be left, operating to are that can't doing operating I for part with tell have we people, and our center operators getting other -- extremely well. right -- speak who our hit we're will you partners Mike. And new story. partner

or our troubles what have doing, that's transformation the to having idea. do I whether they're their is John on or inspired journey data no So we're end to professionalize journey own trying business data the both, because they're or or

are this we we have is well-capitalized of I operators country, of parts we could of I -- in platform. that part today. be -- business idea. it all seeing I anything John's we do all mean, from have Whether have like seeing with, seen part is also of But countries never And extraordinarily to tell us have being platform, seen opportunities, the or push, really X because calling we're but no what well-capitalized that's a literally you good pull it -- investment we but a

of Our Morgan with Kamdem line next Ron question Stanley. comes from the

Great.

one. Just a big picture

you incremental looks NOI, RevPOR that presentation, I'm I the So here added guys focus about $XXX ExpPOR. on back It's like looking comments margin here. million. the NOI at that noticed versus a to another the clearly bar And tying a benefit the your build,

that, could question? was the back is the more where I talk So pre-COVID we the if supposed are to you it in to get confidence margins, add -- that just to wondering to about read why deck ability into

Ron. Yes,

alike. deck kind investors XX% at point and that looking margins. So to analysts They're to interpreting stabilized of we conversations XX% through with be reflective it, of occupancy added a both and

we're were XX% growth and in fact, rent rent seen around that in with it, or as baking ignoring we 'XX, When the growth fourth quarter with we've since margin. --

rents basis the we means wanted rents, getting just that to realized quarter fourth 'XX in plus to in back today's what on XX% third getting margin-wise NOI we final below where does to bar XX% So 'XX, margin NOI levels pre-COVID to and at where you getting were quarter just that that are today's would what points just show do occupancy, be. margins you're XXX level is back shows is

I'll back very, be or level 'XX this I QX again. disappointed. that's said I've Ron, would we all repeat And go If very before, it to level, pre-COVID of

you that's this So a business, QX of lot days is not point to. years hit this remember, and not the That right? disappointed high we're X-plus were a all this in those getting If supply very at done our point cycle. like businesses have for we of are, other we 'XX, of greatest you through back and were get

Feldman Our Jamie with Fargo. next question comes from Wells

here risk assets your And to tranche for of with moving assure funding the profile? does looking do the compared of how the you curve return assumptions up Or next quality differently, quality also, Connor. How the the investors existing you're you about then should acquisitions? how I'm the at that chase think Great. we to of portfolio? aren't put

don't I investors want to assure anything. of

good very our visiting I record, job of aware guys do think of properties. track investors a you are and our

the might sellers environments we assets. massive get those of chasing past, The it. environment, So when And you is opposite curve really can see Jamie. have occurred risk to were It things when an exactly tight. happen the really, investments are in

We get return. curves what not just we do. to don't That's chase risk

your noticing have business. normal going is to because X we marginal work your Assets X-year-old much to we of business while development, right? of in and assets, part Now are was is brand-new cash lot time years, asset; great broken assets, for if you occupied; broken lost how had during COVID those period of X of cash question, at is, marginal sort XX%, because your XX% new assets, margins of years, flow what cash margins that crust a occupancy given the and occupancy frankly that's actual speaking, of or breakeven this stick of -- how back of a broken sort hockey flows, go the sort of normal incremental initial will, the your XX% or kind flow for occupancy what COVID, but return, that

assets X ago are of the -- industry were that's seeing. at yield generating it, X%, it cash years call not the That X.X%, capital structure, the that ago, are the is, sort should where we -- we is, generating broken flow XX% was what occupancy, whatever occupancy years Today, it be that's X seeing problem. XX% cash flow

today. at so are is far now flow ones those XXX, upside to plus which the That's underlying and and on is cash your upside down basis is the problem you, problem that transacting down a loans are you And are coming leverage, XXX are X%. those leverage The on the a basis.

the speaking, seen last, months, frankly which X buildings, it, call seen I we that, number So in [indiscernible] the have that high-quality, X right? X of buildings, haven't years trophy investors high-quality number months, of core high even last before

up And are and go I And you will question? of assets, visit quality you I the the assets so pretty same opportunities what going miss part conclusion. quality we is think of significantly, any are but to them, of is Did give come it to the can and up the buying. we decide to you

Jamie, on your question. funding

So a liquidity to and in that's prepared of remarks, I XX. my as of kind October build, spoke

and in quarter-to-date, cash available to investments $X.X fund $XXX us ahead billion So million of we in in billion pipeline billion about talked $X just liquidity that. of October, about $X closed total

next with KeyBanc Our question Wurschmidt comes from Capital Austin Markets.

pipeline, coming you the And curious, forward then compare projects advantage moving partner you these construction acquisitions? financing? comfort And projects? of of that versus opportunity mean, I'm that future access on I sort gives are developers development was were make you but I Shankh, on crystal why roughly $XXX clearly, of sense with senior development today, have it half cost housing. did in in doesn't you Great. that broadly the million thoughts a you can't with what that But to how your And clear senior today. was up quarter, to this housing capital does set expand think is

their our either long-term long-term I think, if with or development. I'm office developments XXX% Nikhil wellness wrong, we if existing development I not have started or housing that tail I we are all development. correct our believe medical do that have contracts housing starts me clients leased understand fully correctly, any senior

development. when last we housing time was started senior I remember the actually don't the

reporting all bucket, -- housing restricted but the what of same which Austin, in development, we age there housing, call senior because apartment. age So they're wellness are and not the is what targeted in the

Our next Juan Sanabria with Capital question from BMO Markets. comes

with It's [Indiscernible]. Juan here

you food stabilized question where targeting you're kind major investment groups? where quick a Just you of in give you pipeline. for a the do breakdown And deals what at? or the Could of say you're think looking what on see are

Yes.

because probably said, a it Nikhil, senior be say, size. equity senior just a U.S. of senior transaction is, And But we would in maybe senior large today don't core it's of living equity living like opportunities would So the lot I just It's as I I XX%. the in housing. but pipeline and And just in vast and majority closed living mostly, is Canada. in know, XX%-plus of

there remember I know think entirely, credit if -- -- MOBs, do but any it's majority any is anything? it opportunities not but I and So U.S. housing transaction about almost skilled are remember correctly, some or pipeline about you senior the in side. don't

meaningful. Nothing

X Okay. the I in. close basis on and say, in yields, stabilized would to senior we're And going living targeting a today, stabilized

return rail seeing last rise we're rates, sort that higher. ending said and of starting X, Frankly, the expectations we X think ratcheted call, that of at I our than I given better opportunities today. have at seeing we're

are the X% But of yield, buyer. basis buy where we happy we're opportunities sort But generally speaking, are that's seeing. right not We're and right we the if of transacting. to still yield a kind So we're think that's the those assets.

Our comes Mizuho. from line Malhotra with of Vikram the question final

Integra had just earlier extension, additional been to you the can because sell or that. by opportunities? that you on performing? And stabilization, upon are How I some there is Shankh, outlined of there us asked Nikhil process? assets update are look you those might -- just

be helpful update to Integra. So on would get just an

Vikram. Yes,

pleased prior Last produced quarter, the million transitioned. XXX buildings buildings the EBITDARM of talked have performance first negative the roughly transition. out to we're seeing. we're for So that the positive In about of that XXX those million with quarter, to compared months the X last I the $XX $XX

in second the quarter, EBITDARM. million of $XXX generated another forward those buildings same quarter fast Now

obviously, months million cash flow to the swing and seeing be better than month every in the transition, So of month. since a $XXX-plus continues you're prior X

here are annualize this, or get would And when take $XXX so this So XX were give end longer which if we much months of point. months, we you right? the June you that, roughly million, you to look X in north we had take, thought underwritten is rent, it and to at us

still ways incredibly think are we there's the go. to So performance. we long pleased But a with

So but the your point far we're stabilization, stabilization. about exiting upon happy with progress, we're from

This Conference Welltower for you concludes Call. Quarter the Third Thank joining.