Welltower(WELL)2023-05-03 17:59Financial Data and Key Metrics Changes - Welltower reported a strong quarter with net income attributable to common stockholders of 0.85 per diluted share, representing a 4% year-over-year growth and 13% growth after adjusting for currency and interest rate impacts [31] - The company achieved total portfolio same-store NOI growth of 11% year-over-year, driven by a 23.4% increase in the senior housing operating portfolio [31][23] - The net debt to EBITDA ratio improved to 6.3, down from 7.1 a year ago, indicating significant deleveraging progress [21][34] Business Line Data and Key Metrics Changes - The senior housing operating portfolio experienced a 23.4% same-store NOI growth, attributed to a 10% revenue growth and effective expense control [25][23] - The medical office portfolio's same-store NOI growth was 1.6%, with expectations of 2% to 3% growth for the year [24] - The triple-net lease portfolio saw a same-store NOI increase of 0.2% year-over-year [32] Market Data and Key Metrics Changes - Revenue growth in Canada was 7.7%, while the U.S. and UK grew by 9.3% and 17.4%, respectively [26] - Average occupancy increased by 240 basis points, with same-store occupancy at 94.9% and retention at 91.4% [25][26] - Agency labor usage declined significantly, leading to a 53% decrease in expenses year-over-year for the same-store portfolio [27] Company Strategy and Development Direction - The company is focused on optimizing its portfolio through strategic transitions to stronger operators, enhancing operational efficiency, and leveraging data analytics for better decision-making [13][15] - Welltower aims to capitalize on the current macroeconomic environment to expand its portfolio with well-located assets at favorable prices [19][20] - The company is optimistic about growth opportunities in senior housing across the U.S., Canada, and the UK, with a robust pipeline of investments [55][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for senior housing products, noting a 20% increase in total volumes in Q1, driven by organic demand and demographic trends [17] - There is acknowledgment of rising macroeconomic uncertainty, but management believes the need-driven nature of their product will help them outperform other asset classes [18] - The long-term growth trajectory remains intact, with strong top-line growth and moderating expenses [22] Other Important Information - The company acquired 1 billion in capital sourced this year [21] Q&A Session Summary Question: Thoughts on further transitions and potential consolidation of operators - Management highlighted significant opportunities to grow with Kisco and emphasized the importance of optimizing location, product, price point, and operator [43][44][47] Question: Inquiry about labor sourcing and turnover levels - Management noted improvements in labor sourcing and a decrease in turnover, with ongoing initiatives to enhance employee satisfaction [49][52] Question: Update on the loan book and investment with HC-One - Management provided insights into the structure of their loan book, emphasizing a focus on low-levered loans and equity features [54][56][57] Question: Pricing power trends in senior housing - Management reported strong pricing power and positive feedback from operators, with expectations for continued strength in pricing due to supply-demand dynamics [73][74] Question: Current development pipeline and anticipated shifts - Management indicated that the majority of new capital outlay is focused on wellness rather than traditional senior housing, with a cautious approach to new developments [77][78] Question: Access to Welltower's platform for operators - Management clarified that they have aligned interests with operators and provide varying levels of support based on the relationship [78][80]