Welltower (WELL) 29 Oct 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Briana, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Welltower Third Quarter 2024 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions] I will now turn the conference over to Matt McQueen, General Counsel. sir. ahead, go Please

good and morning. you, Thank

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

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

very you, I'll through the capital time business guidance our update increase auditing $X.XX strengthening on per The to sheet, our per FFO Thank on of strength progress sheet strong further will raise and our pleased was Matt, the provide performance third you once and the landscape, guidance a John and investment balance continued highlights for priorities. and result quarter the reflecting forward our a share Welltower another senior everyone. platform. board from platform good this to deployment, extraordinary across an our Nikhil Tim in review report medical and our you balance capital on will portfolios, walk operations operational year, morning, triple for give trends XX% at share, rollout. an by will of our updates. I'm and businesses, update quarter net allocation housing office again

quarter history revenue our $X in company's also which time quarterly marks exceeded in This our billion. first the

of experienced. in basis XX%, uncertainty resilient which our already growth X%, and of with operating portfolio, growth. Particularly will of at by remained coming is same-store and growth and exceeded tensions, a fruit outside sequential NOI political another eighth housing but occupancy with consecutive early continue exceeded continue prior run high growth basis of the strong And line rate the XXX points the which fourth points, year noteworthy XXX strong rate macroeconomic both growth quarter basis occupancy the quarter XX%. heightened especially are we growth driven of surpass business platform same-store top on coupled we the in sequential occupancy of despite geopolitical -- tailwinds our to terms senior the only In initiative, quarter placed operating to bear exiting expectations. growth Year-over-year at came results years. A the in reflection well. that spot-to-spot the been as have quarter quarters Not solidly and positive results our

not I at spread or revenue wide expansion our expense continue XXX would to basis export to past, remains between we unit our historically absolute RevPAR we delta we delighted Additionally, discussed we and portfolio, tailwinds, of business as strengthen. as and the in remiss SHO be year-over-year focused significant have which are trend resulted unit XXXX in the on of another This past mention are remain points of level. between momentum and margin years, levels. Overall, that with couple the the Report export, believe into carrying have not results we that over lifted the our or

senior the also their of turn a future. And new lowest XXXX. after as third end our what put next tsunami build of year, extended wind backdrop well is record with housing loan to reluctant reached new line front the of and capital this senior recent be And that on irrefutable described quarter Starting community housing into the being the favorable quarter work. And second the to face remember time continue silver Americans here. the not XX XX-plus we markets and which financing years. our given is level to construction the exposure living in the supply detailed outlook. impact market, business supply our environment, at drop, second the to day. starts is seen down from our only Banks Construction As not until crest the continue to economic growth build. trend cost the to may up we today's our of in getting for only I every makes in are new picks in have business Frankly, of in on of cost sense senior population better X,XXX calls, no update, we Slide and will of it XX

by still stages end but are market operating in growth to of We the the tech term. delighted have housing we properties, an first had that rollout near the the in demand with accelerate report John's with quarter, early our a set during went for amplified period couple of platform. that be we platform, very stealing our this and of preparing to extended senior rollout will I'm broaden extraordinary growth, growth sector. And believe the of solid we thunder, our the without years at live along of of

update, our more regional that initiatives, our billion broader transaction portfolio's bolt-on $X sector, completed most on the senior capital deployment. expanded acquisitions since opportunity over to of from observed expect investments investment bringing on housing contract been benefiting change as operating last technology within few another quarters, quarterly but outperformance. Shifting to our last or we rollout, details, already set the asset year-to-date We total and with activity provide including our improving density. since compounding have management, has established will billion. Nikhil we of under you our hands Beyond our have effect $X.X to our further. last announced call platform the our have The a is only

in go markets, not broad. goal deep Our our to remains

to structure be record capital a types, to a geographies across QX. of and opportunities While all Welltower for QX we shaping and expect compelling capital is out terms out on XXXX in year and continue busy deployment, property

flexibility has leverage achieved at investment this to we and and strengthened lean opportunities, partial funding sheet up, year address to Lastly, capitalize will I meaningful secular growth Lalapalooza it nearly further created attractive optimization and starting our cyclical, structural further acquisitions sum investment to of $XX to have sheet through driven with will at by be see obligations and drive we effect balance remain liquidity, our we're time. To of the growth quickly opportune have flow exceptional meaningfully operating enhanced which as and the balance all X.Xx in positioned the billion to to balance near-term and reiterate of that prudent growth. well sheet bolt-on we cash activity, by platform, drive our growth

growth We cannot be long-term our True discouraged our Star. call for will focused singularly are of or John. compounding the North owners, on to We this existing that, distracted, over I share dissuaded. With par earnings turn

of build sounding business. a Thank morning, of you, posted continues across broken fantastic At the everyone. and which another we Shankh, with no results the momentum, like quarter to risk record, letup good and

Shankh's growth getting forward period I'll beyond. echo sentiment we're details, XXXX in note closing on the excited that year for to of Before out another the into strong and solid looking and a

total the housing same-store year During operating increased led ago our portfolio again, quarter, NOI portfolio. period, by XX.X% the once senior versus

period quarter remains an of tenant stable during another posted outpatient an consistency on provide industry-leading XX.X%. the evident I'll business The NOI our First, medical of the X.X%. year-over-year Same-store at with strong retention. and business, which growth leasing occupancy healthy of same-store update activity remains

and solid continues on for across geographies us and unquestionably repeating product will all once of year, in housing the represent that deliver are property achieved Tim the of describe senior allowing As basis again typical months to the year-over-year management housing gain during occupancy XXX shortly experienced exceptional our XXX the year leasing exceeding same-store third results. quarter, gains active types. growth clearly to of asset our sequential delivering expectations is basis senior raise are rise proactive help. In full I'll and again It's and of XX%, the our period strength portfolio business, our was points business while above Demand our spot-to-spot needs-based same-store which initiatives, seasonal broad-based for summer get trends. gain the the points shortly. The most typically which into the our well business with occupancy NOI outlook, yet worth

when for RevPAR our in history. Rate year-over-year XXXX same-store out occupancy also basis of a quarter basis, points, this a the achieved growth half second tied On the fact, also we growth COVID. XXX of increased going In portfolio ever record occupancy X.X% were year-over-year. excluding same-store as levels sequential with amongst across same-store strong growth highest the increasing remained

growth initiatives coming began favorable rate budgeting months. We to is our and in that again vacancy remain come to declined pricing bear as next just should further fruit. believe process While More once the our for year starting. portfolio

historically extents or forward remains leverage spread contributing same-store year-over-year, RevPAR labor continue -- the growth of NOI At lowest expect terms pressures. operating substantial moderation portfolio another for below margin encouraged XX wide, In just XX.X%, expect as pre-COVID is quarter by to our improvement be though, increased of remains broader our room but market Shankh in trends between for inherent as expenses, the the the recognized. of we margin expansion. we further business levels, continued history. Most to inflationary going the in operating mentioned, Expo continue we within the importantly, occupied second level and and X.X% to

platform. driver of The big operating be our margin will expansion other future

to referenced across our our capital team, includes capabilities data other with leverage quarter, and outcome. management platform more. I operators technology asset internal our and we deliver continue Our science operating to various out top and our recruit portfolio build capabilities talent and platform and the technology I site-level which last that team

with of to technology with team platform experience process and/or improved operator. a has I mentioned very digital our paperwork. and real-time I'm efforts been successful live care eliminating for residents launching with and first is family During for as ensuring experience that our important for the the employees by stakeholders. The simplifying last substantially as through all top report tech customers. the we The call, automated simplified we our well the first end-to-end the would data, be pleased in have providing Welltower our dedicated our employee and soon move-in customer going modern QX, dramatically that it has shortening as platform the operator, processes an experience,

of directors for leadership enabling a and X focus time our per and them customers. technology the executive result As more platform, move-in are hours the on to saving

out meaning modules, cost care being near tech for various information. And due to once, at technology term. roll platform critical operators than point, inconsistencies name this deliver that other potential Additionally, so are the input are data disparate systems preparing to being lower only platform or the the the of in combined we're we errors At a additional finally, there to replaced. a database selling in is the singular the customer's the no avoided

Welltower the without hard to we success, our and initial long go, many a which the buy-in our While would was from work and team have this are accomplishments possible working our initiatives. partners and between up, solid by and excited have not it operating way it Welltower management we're operations another best-in-class members strong been performance on who asset various for on tirelessly effort. To sum operating quarter

any speak meaningful with and as the senior prospects for While housing business as on XXXX is in the it's benefits of demand-supply way. be our detail, the for too to to the begin we of a remain operating strengthening backdrop to growth early outlook more the optimistic as realized platform ever only

We of senior that, Nikhil. employees. With improve over mission and experience turn continue I'll our to residents it on the execute to to housing

robust, our visible am incredibly good and pipeline everyone. and John, that and to pleased report Thanks, investment morning, remain I actionable. activity

incremental since months to into of This Over $X.X call, acquired time billion. $X.X of pursuing. opportunities this we're X that a fraction strength additional is our frame. billion agreements $XX-plus These or during the position the record-setting considered of growth of last have of a past activity the transactions acquire abundance year-to-date market bring investment entered we assets. This and an underscores billion opportunities to the our our either we

the flow reasonable always, are transactions. focus expected with rather of assets the the driven cash excitement closed remains quarter, deal risk-adjusted activity third at by our and attractive core prospects significant of growth billion $X.XX strategy. In our basis As volume. on we investment a than returns our at transaction quality of the Acquiring

with granular different XX remains million. closings QX activity transaction operating of partners and Our a transactions across XX spanning median different size $XX

focused discount these just which of We X,XXX cost. heavily wellness and at were age where businesses, average added acquired $XXX,XXX replacement than an transactions seniors XX years at properties per X more QX housing our significant we and unit a assets, over units. Our have on to

quarter We our to unlevered expect this to closed yield and in transactions excess high stabilize the in that generate Xs of mid- XX%. IRR an

and with repeat quickly volume reputation our of dollars acquired success. by our point continue have that fair continue reputation, partner. I'd requirements higher recently. to witnessed and exposure reflect to through reduce rate surprising backdrop, of their counterparties, by as cut has drive lenders allowed the rate the rate rates macroeconomic with attractive they impact laid team's create to investment transactions. This environment out An long-term X on and the and floating still us Our transactions impressive face longer. scenario expertise source debt off-market on the not as Freddie minimis this XX% borrowers call. The to this a rates. last reliable limited is detail case network this quarter was for has approach volumes to lending foreign Despite cut cut as XX our like with including origination with We now treasury loans, X Mac de highlighting of Europe, basis X XX in we trends to by our remained opportunities the our from exposure. historically senior XQ us. senior for opportunities the are XX% X or announced to challenging results many reduce diverse debt construction basis desire peaks. and developers for constrained to have due financing challenges likelihood higher from staying been Central versus Fed, the elevated facing X XX-year the stable and This maturing Continental their as maturity respectively, of for including housing range also highlighting a Asia -- are increased down from points Mae wrestling and on since product the bank that Fannie active transactions XX%, yield long space market continues participants investment their from from sector. Agency in to focused continue from DSCR pre-pandemic It's sellers, their counterparties, earnings over banks to

of with are potential in bilateral for significant we the to acquisitions. direct environment, On back their of peers of evaluate engaged highly portions private this our conversations X respective portfolios

transaction on support continuing to and volatile opportunities in peer business our on partners with confidence to while capitalize your through for are and proactive unforgiving beneficial team. over also an Tim increase take unlock a requesting operating in environment, industry, our capital with and those interesting collaborative and of tailwinds conducting platform their Welltower in in opportunities a of value continuing are data asset seeing markets for in backed capital to to and first-class strong our approach constrained mutually business a I'll to Welltower's to but our This positions to the expertise to shareholders. Thank now create our attractive not the structure lieu our this focused consideration platform. participate our mechanism in level to manner manner. In have units underscores science We operating commitment in partners an conclusion, for walk best we hand relationships by from by interest continued sellers operating and leveraging cash. This financial allows exiting long-term OP our results. you call in in

My of third growth. to year per reported collaboration diluted XXXX common quarter income a share, finally, Nikhil. comments sheet net on quarter full year-over-year funds an third today performance representing normalized attributable you, of our capital triple investment share, focus and segments, XX.X% our liquidity our and stockholders diluted $X.XX of $X.XX net Thank outlook. Welltower results, to activity balance and update, our update will

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

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

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

coverage. XX in leases X.XXx, EBITDA trailing new to trailing improving senior levels So is improve was coverage year-over-year increased and and triple-net growth portfolio marking basis. by greater-than-expected pre-pandemic our this XX-month X.X% housing above a Coverage a these statistics NOI this in continues post-COVID driven the and underlying ending on months currently same-store high X/XX/XXXX. In reflect being portfolio, portfolio cash fundamentals

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

we in July, issued year. capital from of quarter due Proceeds unsecured to note $X.XXX activity. XXXX convertible in note maturities digress billion our next the the on Moving second In XXXX. a due coming

net $X.X billion in to investment of in finance and net and the being sheet. Staying billion to year billion cash rented restricted ended deploying activity with of balance share. our capital. quarter, X.XXx expect with debt which activity to proceeds the average improvement level quarter below to sheet, is EBITDA. balance achieved a after amount per equity record incremental represent relative continue X investment allowed of a with of $X.X of would and quarter net even we This We the gross price the to the And turn adjusted end net deleveraging us investment $XXX EBITDA, and Xx on $X raising $X.X debt billion activity, cash fund of completing end despite the XXXX. This over this in

acquisitions Our generation build flow balance a that to in in tax share flow allow the growth. To increase go-forward enhance a cash increase fund capitalization significant us and prudently per powerful our future of will capacity. our cash investments, illustrate to us asset has sheet substantial allowed

mentioned signifies Shankh per is a billion $X.X our of to quarter. earlier, $X.X billion This annualized increase the As end XXXX. compared revenue

sheet within amplified and in convertible notes from that balance noteworthy reflecting further money. are that by has period. It same million increase operating same While housing XX% debt senior levels, XX% includes pre-COVID our decrease stack through This during billion that with capacity the optionality. net is concurred current the period, deleveraging our recrease portfolio. $X.X providing and flexibility in over embedded decreased $X.X a revenue that upside should a debt our be bolstering

income, diluted $X.X per investment any announced. Last for activity at $X.XX our or we stockholders $X.XX to of turn attributable our the or to [indiscernible] to want that $X.XX night, closed FFO publicly year has or not $X.XX I share remind outlook to diluted XXXX Lastly, $X.XX date to full we as I guidance, updated XXXX to the beyond included updated and normalized net billion been have to that share you per outlook midpoint.

XX%, long-term Our composed our from from medical, ranges. to the following senior net housing of This guidance. growth $X.XX of updated estimated per XX.X% of midpoint guidance a midpoint and X.X% growth outpatient issued growth subsegment increased in from share that, $X.XXX improved $X.XXX basis FFO normalized operating in increase housing our of X%; increase respective occupancy triple and X.XX% FFO housing previously points, of growth $X.XX accretive performance is OM taxes over up Revenue the triple by portfolio, back X% NOI this capital driven and share the to per RevPOR FX, X%. And increased growth is represents an our the to X%; same-store at activity. Underlying senior finally, by Shankh. to year-over-year and an year-over-year of X% made operating due of guidance portfolio of with post This to is X% X%; from increase in an XX%. net, XX% senior call expense to total $X.XX of hand driven I'll segments growth growth XXX to outlook

Thank you, Tim.

took team, while context management As continuous through create predecessor long but win-win as are our long-term in this roughly and only over evolving dogged you, structures Compounding down it progress partners, for of of out a operating value. start decade middle my compounding very alignment by the believers since just know company greater the our the way light. been our so and in many time. And in define and incremental to changing not and XX% close turning a up, substantial to I has over on. that creating shareholders its compounding of We we everything math true capital school XX% fellow human of portfolio, middle that to my period in of team is

focused different We problems, to shoulder crisis More what with over employees, owners, importantly, resilience culture a build the a we the site create build A you worst this endured excellence oversupply, our decade. partners company's last a with matter brick. culture a our X to we checkout owners, pandemic, value. level not for us real customers history culture as for not shoulder, Crisis on defined out by change beta estate agency past existing alpha, culture know culture well a extreme shared our having outage owners. has included what. A brick creating deliver of crippling no and value and manage of view, alpha of operating XX as a value by to for there, industry, levered and not Street's inflation real years. Wall which true founded labor of residual creating we're in

that finally, we down have with audacious posted in. who potent we said got what our first in our because hundreds ] as course learning, first efforts the pay of an at results many many our the pandemic powered And to reflect when of initially sense less, set my sat healthy decade, because compounding adjusting standards of for during weekend a quarter, in over into built we real from data beginning this QX lasted John minutes the Not initiative strong of together and business its feeling arrived years. Having for ream satisfaction industry, to Naivete the time, finally past X the survive. I the next this paranoia our felt the of may folklore. And transforming of the unique [ industry science off. a a of and years that machine of didn't open coming few these Welltower, but platform by I learning feeling about him since attracting that I for on is usual Over of [indiscernible] by a kind AI, we is perhaps and followed deep colleagues well then that, no results. in would this platform, and times higher the estate even by launched before past know new of if industries finally,

progress so and in this and dogged was complacency day up moments because we'll over. for for have ahead, questions. and frankly, Seals, this, at a will only the easy the continuous have place the culture. Navy And yesterday. When Mediocrity in may incremental we're game. Operator, be we with game our scoreboard open no please long like not game. love believe our a looking be that the in call of bad, the back be of occasionally, to Like journey that, never We pursuit

Our [Operator question line from Hughes Raymond Instructions] comes first with the Jonathan of James.

Thank you the the time, great or occupancy results. you where costs the at that to the for could that more and are higher goes historically specifically incremental margin unit once between Hoping wide see unit expense XX% and and margins? about And and revenue strong gap talk since at surpasses minimal. occupancy understand XX% incremental point trying today's variable margin even to

Thanks, Jonathan.

that in in that, you're the margin. RevPOR math export through So our highlighting that is is flow financials way of expressed that through kind right

we above some we'd to of XX% So about flow X note of implementing were since ] recovery. up we the that gone had higher to that the last Again, model had right through. Important and their first noted on kind for that making kind XX% than quarter, or through time margins now flow-through operator [ quarter, our this post-COVID expect. we changes X% pool same-store expenses of operating

to operator margins through are flow XX%. that ex closer So

on, as we and kind So of of from occupancy XX% and should what levels of XX% past, flow-through in the there improved. to approach move see the said with then into reapproach mid-XXs margins consistent start we've pre-COVID you kind of

comes next from Citi. Michael with Griffin question Our

comment quantify sense costs to off down? or to Just rent no either Nick made a and perspective know a obviously, build. Joseph sense a it Shankh, sense generalize, you are economic economic but to far had bit. of And the get from makes how before coming here just that regional, it's it's I'm we does trying Michael. to hard growth with trying it make that I

a say really situation, hard a because Nick, labor, cetera. matter to local good is It's cost et function of general in question.

down. We construction haven't seen costs come

some have labor taken come material which down, surpassed, more and costs cost. by You has insurance up obviously been have seen

operating general in need, tried growth thumb. where best So will and you RevPOR makes of of to people that. right? location locations XX%, we rule economic make labor sort world. of sense. your in get best question markets, it export, get such you that increase to of makes you in relative as Cupertino will the Rent the not struggling will with a believe Remember, start growth So do Imagine cost to industry just sense. I cost growth economic whatsoever. Beach the there, you always costs, want rent where if pricing have have there. to will construction XX% not And we're the make average no where Palm this what a That's is is work sense of labor

question next Our comes Stanley. Kamdem from Morgan with Ronald

a Just me. for one quick

cover. fastest been And basis growth XXXX. all number what reflecting any we're think to to of that out over XXX I've trying rates So out X%, basically gain sort you like over going figure where top line we point in X% got I the is pricing occupancy this of sort of of that look growth, which is

timing? bit expect So what And in on number, mouth, we that there again, you drives not that one a calendar? is more reflect little but sort there should sort of that? Is we as that my words question would be, your maybe to putting of color a decelerate anything as of flip reason the

Very I you going market comment market things. pricing. out the that us. share of would will tell will increase. what prepared point good We'll try a made have a feeling see he's about to going couple what question. like. I'm we John XXXX speculate to his gives We're in about remarks not how to look specific

-- at to So but the market. end of everybody day, subject is the

remind probably the it last prepared not occupancy said fund and remember, year said pricing in to of see RevPOR. you of growth, John occupancy standpoint, his more I've to what comment gives call, I that's is Having change about minus too you on occupancy just you going refocus a third say record RevPOR after not willing to get can on focused can on market helpful, the us. that, We sequential said get We'll what focus is year. and from gives are much. -- I And better occupancy. I'm hopefully, a say. you export, but this that what an in said next made. focus revenue remarks. well, that saying will can to Hopefully, I quarter can it's credence but early I'm this gives understand, necessarily

question next from Nick with Yulico Our Scotiabank. comes

Shankh if up year-over-year an can saw talk the turnover about a on maybe the lower of the benefit or there's portfolio? even you getting now quarter following -- sequentially? look terms of if at -- from topic bit what occupancy, little traffic in in And maybe just in Just bigger trends, you how right you also John,

I'll jump in. Traffic is Yes, up.

what Additionally, is in platform other the is execution there. our function of higher is operating closing a saw we words, which important ratios, improving,

to share. it there. As and issue No relates we're taking bigger been that's market the is executing But issues consistent. turnover,

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

significant you're sector. think business the speaking has that the recent highlighted time, absorption you of to in same quarters strengthen tailwinds across been at Shankh, continue in But I momentum demographics. the stable and 'XX the carrying in the kind of soon the kind

occupancy kind next better of of that year? just growth we're kind absorption and if the being at your going getting reaccelerating think of to back you comment curious about So the cusp potentially

in phenomena. Yes. on the happen not what to not may or going absorption industry-wide is macro Obviously, I'm may macro comment a

As John on share. just focused market mentioned, that we're

control. something using industry, focused in see operators, our market entirely get gravy. to see that can to can platform operating occupancy the on something you just a right? that we're we sequential hard and focused our That's absorption, will on. best-in-class work share, be we our If that will relative That's You can we're improvement growth not not what get is

Malhotra Vikram comes next from Mizuho. Our with question

for Vikram. on George is This

you is non-U.S. much color So of the just visible an percentage flow how that do to? follow-up, on highlighted flow then pipeline. acquisition you you no a And of provide have Can expanded has changed say the more what And and recently? as deal pass percentage

in prepared quarter, incremental $XX I we $X.X George, billion. of on activity was we about opportunities how billion my looked the the remarks, the at universe this question, talked announced second of

But at. quarter about Shankh generally all billion, the from hedge in depending second we speaking, looking we've we're it it's up billion. That down said where I your his we got a then transactions on what XXXs. roughly think number geographically, But So XX% rate. And $XX look question or $X.X every remarks. at active acquired fluctuates

Our question Green comes [indiscernible] from next with Street John Pawlowski

XX% business. running senior change. over housing last of the XX% cap It's on year Question and to been NOI Great. excess

curious expect X to the stabilize X kind next there's of NOI the next a denominator. do business Just over for to you NOI stabilized to senior percentage X CapEx years, as where the know house to that? that over years, X But I start of

Yes.

the question John, give a I'll in. -- let So is answer here. you And me broader step

a this the an So as we short on the basis way created mentioned the last a XX% I reducing XX% by We're and cost fundamental operator's PE amazing time internal very up really do team. time, where unit the where changing we've lines. executing time to of things. Historically, business like a level We're both also decision. is kind function we're it's at speeding model,

has smaller that doing do of up that's roof. on driving projects asset an year, roof the is What cost flowing of have experience And the following might roof. you following all the lines. an X leaks next example, the X because those through issues all and and because for buildings customer roof X the stuff So following then year of mobilizations. impact they'll kinds along you like have dramatically then And other

long-term now right in correctly happening doing with what's things the cost long-term we're rate. cycle So run mind, lowering life is the

-- things projects getting that in will and X we'd and because future some and forward. long-term behind there's it that avoiding us the run all pulling elevated moving that's the rate. the So doing roof roofs, example, leaks lower we're right change some be forward won't now, But means it stuff

the going lower. a now, on little there's all noise it's for but to right So rate the long-term efforts and dramatically are the unit costs that's lower run

by just absolute it's great So -- the team. execution

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

working Can on, provide these results have your does operators to operating how Welltower that out tech this platforms. I you some out the you assuming on significantly but better aided to I'm the paying And as financial you color recurring your for get just investment get work this? mean these for reflected initial a it partners? rolled you does build into are Or fee mentioned? financially? that you're rollout that guys other out I platform initiatives has know

would Yes, coming part financial goal transition of is I kind the describe the of Welltower. the cost latter Mike, this. the initial flow There's significantly the right, you're through better question, is duplicative kind so clearly results. of investment cost of into your as of bit a because upfront we

a the operating our scaled of be legacy be systems stack over initial cost-saving own. In will will less intended costs. should -- You But exercise. initial uptick will thought expensive, our subscale But in to be be be -- be operators. technology tech it platform across rather than the over our And will this of end, have it that come moving isn't investment, to the shouldn't an beyond there through the across the entire all the operators time.

of up to our think said today things have because the make P&L, is flowing cost, what margins, that as of to initial technology just and expense rate X run we is cost. the addition remember, nature duplicative obviously, in of tax. But there SHOP cost Tim through just the of software is just lot have through, a it's you already show part that costs a Mike, in So upfront part remember right? cost to

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

Nikhil. Maybe for a question

talking You mentioned peers. X to private

doing you've of can a that been that. or and scale date? Just the hoping add you maybe doubles transactions color singles Is little more on larger to

you in different valuation. look of a some, the One, quality So those, hard Yes. might right, to about talking asset just not everyone to right? a with. like range you're or might to would either the when you buy you're we're given don't from any the but imagine, some talking different with groups, of it's it assets see on outcomes speaking you lot, numbers generalize, And as

with question Joshua of next Our Bank America. comes from Dennerlein

Page I was your guess to slide at recovery path presentation update, looking XX. the on business I

in and of layered a kind it's it how how should bridge? assumes beyond little being rate, costs think bridge? you pre-COVID as kind seems like we you expenses. guess else should So gets like this I what forward-looking of about occupancy tech tying that a think And maybe we part at SHOP get backdrop. to influencing today's margin bridge go the back unrealistic, flagged Like to just about into to of the the that this the then given

to a if trying good are impacts catch. least we going we Josh, If obviously go back page Yes. you of occupancy before. how sense at our you That a a John this embedded what give pre-COVID, and to in are I've stepping complete back only said what growth it's of consider I just to pre-COVID, We look that NOI down. NOI that growth, at the failure.

growth occupancy that occupancy is. higher than expect we go the where substantially will pre-COVID So

most Remember, is important for are the just you today's you earnings we be of added this act. vacancy the one That's point understand the trying should made portal normalized you However, should should is whatever if rate. just at what is not what's company. fictional obviously what add, think What be. to our

a it and right? million in see you rates will format disclosure, assets, is growth, to is higher. friction growing of meanwhile, NOI than those -- obviously than as is that decide giving gave we ago your pool have also started expense long actually significantly that are we pre-COVID. Occupancy that lower. years, it set vacancy. And the to it adds our how faster to higher because few first get our that years our that Yet numbers we point of million when get to $XX That's out $XX what's that just rev You export our takes

in You'll NOI whatever that get and and and believe occupancy, fourth we're what get we We a ball, not systems opportunity number. We're how of lower expense lot which come of about to try technology got that's may on the So providing definition which is you is have and follows revenue is vacancy that's not that because see whatever after care to are have rates right? that revs to that's quantify there why focus side implement not has may to signed industry. thing on same big and through have you bar be I much is you higher, down. the up the this of sit export, why that is processes sort on to do, frictional thinking what here focus. the site-level think That's page, care to as as your despite and higher or employees compassionate the and going to they to signed you up cost are

try people's to easier. life to want make So we

what right? can about for saving and leading providing families, far to of do, up So from out, on rollout. hours she our an director's It's moving the on to and care to pointed X focusing she John As example, X suite perspective, that just is signed residential executive right, residents focus people tech which families. care effort

Thank talk it, and we experience about just to means what question. about wanted overall think question you think employee you how and I about willingness you resident is not a cost. for ability to So and this pay. improve margins, of want we residents' don't that very cost. I to for When the think about much

with John from Kilchowski comes question Wells Fargo. next Our

competing to pick flows expect you you own the way in the when investment you what the to deals. on market. these some your of competition on start understand capital activity. to you're the one Could of maintain and cadence feels like being about of with sort talk you're transaction trying Just Just likelihood It able of on up? seeing to

Let in. and jump me Nikhil, start you

flow I and company to First, we're this the not level to stuff. our maintain capital not of further drive growth. a share activity. of deal trying our and market position to designed strengthening is said not trying We're junkies. buy our before, earnings bunch invest cash We're to have

for points do every opportunity this creation is we'll we we willing of seen or on we a down, number have somebody a of and for, XX%, opportunity market do assets basis couple like is is we partial what XX% $XX it. transaction. that, is have quarter, have on it. a pay than focus what you pre-COVID, the more not the of sell where up we'll prices gone market that, stays Having If around asset. The billion believe for negotiated you -- sell, is there, said level if willing quarter buy for a pay market to to if existing bilateral shareholders. privately example, not value in you are we'll there, the So to have to If

with cost have capital that situation, your your head to of is. you yourselves it compete person what if X in gets So in that is

Our much we cost much guys because purely earnings believe normalized than believe, you is higher. is of capital higher our

we for stock spot We're is basis. are long-term return what trying not cost do from owners a and gain expanding is we are a existing who increasing owners partnership, That's our rate the on allocation growth which are for to capital to buying individual investment partners we to existing trying how capital our decisions. today. by make value something, trying decision terminal think make the So a of and a

with next from Richard comes Anderson Our Wedbush. question

segue by a so to an portfolio you've X%, $XX billion $X perfect my It's the billion year, enterprise grown question. of to this far value.

investing. $X.XX grown this quarter You've But was I probably coincidence. attributable the $X.XXX of FFO by That's guidance to X%. that external noticed

much year sort better how that's spread outperforming yield the capital? point, profile this phenomenon driven the low did growth $X.X You of to was $X.X of of cost yield a today. that, much to billion How by your last of that company? billion year X% So of was I -- previous of higher yield. that of your a and investing imagine

purely from from outperformance this previous $X.XX the is years? or So activity year

is what Would bucketing financing that's things, activity, the $X.XXX changes acquiring. we're right? and in how capital we're as Thanks, that's Rich. incremental also that guidance. just And I note So represented

will all capital of triple housing guidance. The fundamental movement is since or our provided be kind from incremental performance. that senior that like we activity So outpatient net, last or in

last way it's the we showing Outperforming the talk acquisitions things the and capital just finance. the fundamentals, are being year. get timing really we of updated when driven of acquisitions, whereas so I what's activity, and kind the from we incremental by about you, underwriting acquired guide time new in last And up

what think question, extortion you which your happening is QX. majority closings and are because an when It's and if about is the obviously in QX Rich, what impacts talk close, the you activity, number we but of obviously quarter-to-quarter, about

growth that this feel next of that with So going Especially entirely investors. the chasing feel we I've the yields. We're seen closing, to companies impact -- it not year. on enough you're destroyed year growth, been have focus you're not are going to

that's what be doing. we're can assured You that not

flows are is and buying, So, have higher. obviously basis assuming a b, of move-forward impact what that growth, which the number; we will a, actually you we're you on to be that timing how buying your telling issue a

really So question. it's a really, good

Our Wes comes next from question Golladay Baird. with

answer any it potential adult at the occupancy year export you assisted independent and Is living Can what benefit? and are rate segments gains? headwind driving mix on potential next

housing the extremely board portfolio across is wellness the given highly been It's occupied.

growth and flowing independent You and from coming through should assume of the living. number, is that, on that's growth our majority that's overall, a assisted living drag

On to it cost the prepared our like let his in is John and export what focus on question side, moving back on the go labor export I on direction. said -- remarks, seems the me finish question. And

that We no year. But now not direction. give it's moving next may directionally, be may or have in for what we in sensor, that you can right

Kammert Our question James from next Evercore. with comes

soon? too to portfolio there little reasonable exhibits operating Looking the how short, Or at total implying as the X on will, obviously, platform? Is lower. Is same-store bit that occupancy you up X higher margins? to and a a bottle, obviously to if the little sort the your of a catches of nonsame-store cadence quarters same it fast as in versus terms occupancy store, portfolio in margin. expectation SHOP is you apply portfolio, too

when the about we flows is will no than examples function we same-store. to all about and a really last me drag you growth. But FFO cushion call said Nikhil you there growing XX%, earnings XX% is tomorrow its that's [indiscernible] and the bottom quarter, that buying occupied, that be mentioned -- what I occupancy, and gets this I are occupancy That's care on that that is line better a faster. remember lower a non-same-store get of our of today, bunch And we're the growth. given right? I the speaking, lower as but frankly XX%, But I Jim, part, that nonsame-store you provide certain to store care assets a earnings don't maybe well, non-same into buying first think a higher gave last same-store, are on how think can some Tim, right? We're buying market Let take guidance assets,

Yes, Jim.

So that portfolio.

probably is that deliveries. a think biggest total got development the plus costs the on in drags and to capital heavy you've a is deliveries period just I bit preopening And portfolio anything we're network of of side delivered. difference general

portfolio, same-store some causes change though, between you kind the is total the of think mix difference when So the similar. about generally, relatively the that and

should see So those over converge. margins you time,

Mike Our with question JPMorgan. next from comes Mueller

far? of annualized on us what you could tech out at rollout, can the to sense what so just give level terms think the as rolled be based you improvement a property you've In margin the

not to going to call try margin would speculate and get our improvement on we're what Mike, be. a

We in initiative than will future But us, in sort will property at before, what taking that of where it get we try happen just the is think this which to optimistic of we speculate function what is was a to to tell of you to due that nwe than platform inappropriate we'll get we on take to the said a believe going we're platform nd is will in focusing a place that what higher level it's margins platform venue the future. the we're an pre-COVID. better to past. the occupancy

Deutsche with Omotayo question Bank. Okusanya next comes from Our

or to also SHOP you NOI maybe fundamentals up do still great senior a percentage more supply how be growth well, of it SHOP to or optimal talk get kind SHOP. point, could housing to have of when it regards kind the time. is again, increasing profile of some you to certain to do suggests SHOP. I even as the softer quarter, going given fundamentals of you're that exposure when downside some Great to of SHOP. what get roll the Should over at [indiscernible] improving late, be [indiscernible] the you Obviously, kind portfolio portfolio, Or forward? demand-supply overall expecting just been NOI the you to have again, a Yes. company outlook. is your good portfolios of entering from in the the regards that guess on In Triple-Net you we of expect percentage seeing

Very the let a grow overall as -- a me easiest I'll portfolio is shop resounding which good percent point to ask question to continue of out the you, answer answer yes. is you asked, question. World

As come. shop is through of you starting see occupied, the just is portfolio flow our majority margin that obviously to low

you if get we asset, a what think much means, through If even don't will that to just buy higher another were than we today. place you

that's that we what just portfolio obviously, And are can So think mostly. through exists from a you it from today. composition where buying see

get section question second on portfolio a long-term and we two really website, [indiscernible] would question you on might a is year ago. that owning is about, talking one read right? You're That's for, to to versus happens okay I'm about Investors few you we management. not balance with what the topic, on risk, downside or risk. belief have our volatility the true our volatility sheet more shareholders I on is future go as that think years that for debt. focused in important of a even wrote That's a that that. we letter back recommend The this your is, adjust okay, It's why equity what what of I a where

opinion, in probability risk. remember, volatility our risk. is The in losing is capital our opinion not permanent Just of

I that asking you question topic. are a near lot dear is wrote to So this and my about a heart.

of section a the end that out reading you topic. focusing letter this will get kick I just the of on think

Thank no conference have today's for your call. this time. further at all questions We This conclude you will participation.

You now disconnect. may