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Chief Financial Officer Jonathan Olsen highlighted that the third-party management business has already been substantial, contributing $0.09 per share to 2024 FFO and a projected incremental $0.02 in 2025. Chief Executive Officer Dallas Tanner added that they are exploring new markets like Salt Lake City and San Antonio and that technology and automation are enabling the platform to scale more efficiently, potentially into one or two new markets over the next few years.

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President Charles Young responded that the year is unfolding as expected with healthy demand and accelerating new lease rate growth. He anticipates this will continue into the summer, peaking around June or July. While occupancy is expected to moderate slightly from Q1 highs during the peak move-out season, this is a planned strategy to optimize for market rent growth.

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President and COO Charles Young described demand as 'quite healthy,' giving the company confidence it can absorb available inventory. He noted that website traffic was up from Q2 to Q3, and while slightly down year-over-year from a very strong 2023, it remains at historically high levels. Young stated that showings are healthy and they are seeing strong demand across markets, which supports their ability to maintain a mid-96% occupancy level for this time of year.

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CEO Leslie Hale explained that Q3 is anticipated to be the weakest quarter due to a "layering effect" of headwinds, including holiday shifts, tough year-over-year comparisons, and softness in government and international travel. Hale projected that August's performance would be similar to July's mid-single-digit RevPAR decline, with September showing slight improvement. She attributed the underperformance to the compound effect of these factors rather than a single segment's weakness.

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President and CEO Leslie D. Hale cited positive headlines and strong Silicon Valley performance (up 11% RevPAR in Q1) as momentum drivers. EVP and CFO Sean Mahoney added detail on the strong Moscone Center citywide calendar and the growth in AI-related conferences. Regarding capital allocation, Hale stated the disposition was under contract before recent market uncertainty and that the transaction market is now paused. She confirmed that share buybacks remain an attractive, leverage-neutral priority.

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President and CEO Leslie D. Hale affirmed confidence in continued rate momentum, supported by strong BT and group demand. EVP and CFO Sean Mahoney added that January's growth was also rate-driven and explained that such growth flows more efficiently to the bottom line, potentially leading to margin performance between the low-end and midpoint of their guided range.

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President and CEO Leslie D. Hale noted that GDS data shows improving national accounts, strengthening Monday-Wednesday demand. COO Thomas Bardenett specified that consultants, accountants, and international tech travelers are driving this growth. Hale added that the return of these less price-sensitive customers is boosting ADR, which accelerated from Q2 to Q3, and that they are already seeing sustained revenue growth at current levels.

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CEO Jeff Donnelly attributed the 2025 group pace improvement primarily to the urban portfolio and short-term bookings. He clarified that group has not been a drag, but Q3 faces a tough comp from last year's DNC. President & COO Justin Leonard identified Boston as the biggest driver for the strong 2026 group pace, citing a phenomenal citywide calendar.

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CEO Jeffrey Donnelly attributed the 2025 group pace improvement primarily to the urban portfolio. President & COO Justin Leonard added that Q4 has more availability without a major election. For 2026, Leonard identified Boston as the biggest driver, citing a phenomenal citywide calendar.

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CEO Jeff Donnelly stated that DiamondRock expects its Florida assets to 'find its footing' in the second half of 2025 but is not forecasting a 'hockey stick recovery' due to economic pressures on consumers. Regarding CapEx, Donnelly and President & COO Justin Leonard explained that they evaluate dispositions when required capital is large relative to a hotel's earnings, not just in absolute dollars. They noted the challenge is that assets needing significant capital often don't trade at premium prices.

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CEO Jeff Donnelly clarified that his optimism for resorts is a long-term view based on low supply growth and favorable demographics, while acknowledging near-term softness. He stated the cash flow focus doesn't fundamentally change allocation strategy but sharpens their evaluation of markets. He reiterated that the 2025 group pace is down slightly over 3% for the full year but is positive for the first half, reflecting their shorter booking window.

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COO Gabe Willhite and President & CEO Danny Prosky confirmed that strong ADR growth was driven by an improved quality mix, including a higher concentration of better-paying Medicare Advantage plans, which Trilogy can attract due to its high-quality care outcomes. CFO Brian Peay noted that MA is replacing lower-rate private pay and Medicaid residents, driving up the average rate.

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President and CEO Danny Prosky described the pipeline as over $300 million, primarily newer SHOP and Trilogy assets with attractive per-unit costs and yields from mid-6% to 8%. CIO Stefan Oh added that most deals are off-market. CFO Brian Peay outlined the funding priority as retained earnings first, followed by dispositions, and then price-sensitive use of the ATM program.

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President and CEO Danny Prosky and CFO Brian Peay confirmed Q1 has the primary seasonal headwinds. Danny Prosky described the portfolio mix shift toward AL/IL as a "slow and steady progression" driven by new campus designs. Regarding leverage, he stated the most expensive debt has been paid off, the current 4.3x net debt to EBITDA is a comfortable level, and the remaining Trilogy debt is attractive, long-term HUD financing.

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President and CEO Danny Prosky detailed that the strategy for Trilogy's skilled nursing is to optimize for higher acuity residents and favorable payor mix, not just maximize occupancy, which in turn feeds the higher-margin senior housing side. Regarding growth, Prosky confirmed the improved cost of capital makes external acquisitions more accretive and outlined a multi-pronged growth strategy: consistent annual development at Trilogy ($100M-$200M), buying out remaining non-owned Trilogy assets, and pursuing more off-market SHOP acquisitions sourced through established relationships.

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CEO Dave Sedgwick explained that they are casting a wide net for SHOP operators, including new relationships and long-standing connections of individuals at the firm, and confirmed the focus is on de novo growth, not conversions. SVP of IR & Strategy Derek Bunker reiterated that synergies from the acquired manager's $10 million run rate are about 50% and are on track to be realized starting in Q1 of the following year.

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President and CEO Dave Sedgwick deferred detailed comments on the Care REIT deal's financial impact until its closing. He noted the UK pipeline will take time to build, with potential cap rates in the high 7s to 9s. Both Sedgwick and CIO James Callister emphasized a focus on finding the right deals rather than a specific volume target. Sedgwick declined to comment on specific operator performance beyond publicly available data.

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CFO William Wagner denied any 'air pockets' in the pipeline, stating it continues to replenish and that cash on hand would be used first. President and CEO David Sedgwick affirmed that stock price fluctuations do not alter their underwriting discipline, as they focus on securing appropriate risk-adjusted returns for each deal.

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Chief Investment Officer James Callister explained the JV structure, noting CareTrust holds a perpetual preferred equity position and has a call right to acquire the entire venture between years four and seven. He mentioned the deal began to materialize between April and June 2024. Callister clarified that investment opportunities drive geographic expansion, not the other way around, stating 'it's the deal that takes us to the new market.'

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Chief Investment Officer Kevin Pascoe explained that the investment timing was affected by the company's focus on a major SHOP conversion and that a robust pipeline remains. He clarified that larger deals are evaluated but kept separate from the quoted pipeline. Chief Financial Officer John Spaid added that while the company aims for a leverage-neutral funding approach, it has recently utilized more equity due to favorable market conditions but values maintaining multiple liquidity options.

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CIO Kevin Pascoe attributed increased deal flow to sellers accepting the current high-rate environment and a limited buyer pool, making NHI more competitive. He noted the pipeline is $264 million with a funnel 3-4x that size. Pascoe believes the acquisition pace can increase but will remain selective. He stated cap rates are flattening due to expensive debt and stabilizing property performance.

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CIO Kevin Pascoe stated that while the pipeline's dollar value is stable, the opportunities within it are constantly churning from a total funnel of over $1 billion. CFO John Spaid added that deals remain accretive despite cost of capital changes. CEO Eric Mendelsohn confirmed the Discovery portfolio is a candidate for SHOP conversion and that they are exploring opportunities with other experienced operators.

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Chief Investment Officer Kevin Pascoe confirmed there are no deals with PAC currently in the pipeline. President and CEO Eric Mendelsohn acknowledged the potential to exceed the typical investment pace if the cost of capital remains attractive, noting a recent hire to bolster legal and closing capabilities. Regarding SHOP NOI, Kevin Pascoe explained the guidance is mindful of incentive use, and they want to ensure occupancy stabilizes above 90% before forecasting accelerated growth from reduced incentives.

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President & CEO Jonathan Stanner explained that government-related demand, which contracted sharply in March and April, has now stabilized at lower levels and this is factored into the company's outlook. To achieve an ADR lift, Stanner stated that the industry needs to see broader demand growth across segments. He emphasized that despite pricing headwinds, the company has effectively managed the bottom line, with full-year EBITDA and FFO per share expected to be down only 1-2% on softer-than-anticipated RevPAR.

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Executive William H. Conkling acknowledged the large maturity but expressed confidence in refinancing it in 2025, given the constructive capital markets. He stated that 'all options are on the table,' including the secured, unsecured, bank, and convert markets, with a focus on minimizing the mark-to-market on the interest rate. The company plans to be patient in the near term due to the note's low existing coupon.

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President and CEO Jon Stanner detailed market-specific catalysts, such as the upcoming Super Bowl in New Orleans and resurgent tech demand in San Jose, which support the growth outlook from a low base. EVP and CFO William H. Conkling added that the expense environment has normalized better than initially forecast in 2024, with moderating wage pressures creating a cleaner and more stable expense base heading into 2025.

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CEO Mark Decker identified his immediate priorities as finalizing a strategy with the team and board, refinancing the company's credit facility and term loan, and pursuing capital recycling. Decker noted that ideal dispositions would be low-yielding, high-quality assets or properties that don't fit the long-term strategy. CIO Alfonzo Leon added that while the market sees high-quality assets trading at low-to-mid six-percent cap rates, GMRE focuses on higher-yielding opportunities, often above a mid-seven cap, where they see inefficiencies to exploit.

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Chief Investment Officer Alfonzo Leon detailed the multi-step re-leasing process for the East Orange facility, noting encouraging early interest and a goal to restore NOI by next year. Chief Financial Officer Bob Kiernan confirmed the impact is factored into 2025 guidance but is not significant. Regarding other Prospect assets, Kiernan stated there has been no indication of lease rejection. CEO Jeffrey Busch added that the CEO search has been narrowed to a few final candidates and that the Board continuously evaluates strategic options.

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CIO Alfonzo Leon stated that two single-tenant assets were sold into the JV at a low 7% cap rate. CEO Jeff Busch explained that funding for future acquisitions could come from the ATM program if the stock price is favorable, or more likely, from selling non-core assets to improve the overall portfolio quality. Mr. Busch confirmed they are still actively seeking higher-yielding opportunities, such as 9% cap rate deals, for GMRE's own balance sheet, creating a dual-track approach to acquisitions.

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CFO Robert Kiernan explained that year-end leverage would be 46% without further action, just outside their 40-45% target range, which doesn't require significant asset sales or equity to correct. He confirmed they are considering sales opportunities. CIO Alfonzo Leon added that while the market had been optimistic, the recent rise in mortgage rates has subdued buyer interest, creating mixed signals. He affirmed they are taking a cautious, step-by-step approach to new acquisitions while evaluating the portfolio for potential dispositions.

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Co-CEO Clint Malin stated that while LTC has issued LOIs for other deals, the market is competitive, and the current success stems from intentional pre-marketing of the SHOP platform. He noted LTC's focus on smaller deals provides an advantage. EVP of Asset Management Gibson Satterwhite mentioned that Q2 SHOP NOI exceeded internal expectations due to expense savings, but they are maintaining the original guidance for the initial portfolio for now. Co-CEO Pam Kessler confirmed the overall FFO guidance increase is driven by the newly projected acquisitions.

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J. Satterwhite, EVP of Asset Management, explained the SHOP NOI forecast of $15.2 million for 2025 is based on pro forma 2024 results and assumes continued lease-up in the Anthem portfolio. Clint B. Malin, Executive VP, added that LTC is targeting 7% going-in yields on SHOP deals, balanced by higher-yield traditional financing, while focusing on operator diversification through smaller, often off-market, transactions.

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Clint B. Malin, Co-CEO, explained the non-renewing operator is strategically exiting the region and that LTC expects to fully replace the $8.3 million in rent by recycling the capital into new investments at current rates. Pamela Shelley-Kessler, Co-CEO, confirmed the transition to RIDEA is expected to be earnings-neutral in year one, accounting for setup costs, and stated the initial portfolio's in-place yield is approximately 8%.

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Co-President and CIO Clint B. Malin explained that LTC is currently analyzing the required resources, noting that converting existing triple-net leases is a manageable first step. He confirmed seeing external RIDEA opportunities. Co-President and CFO Pamela Shelley-Kessler added that RIDEA could become a very significant part of the business, as not having the structure excludes LTC from many investment opportunities.

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CEO Rick Matros revealed that serious discussions about the transition began last year after results failed to meet expectations. CFO Michael Costa noted the excluded assets were already underperforming. CIO Talya Nevo-Hacohen confirmed positive momentum, with tours and move-ins up and move-outs down, suggesting the transition 'noise' is in the rearview mirror.

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EVP Talya Nevo-Hacohen stated the deals are all domestic, biased towards the eastern U.S., and have embedded growth potential. CEO Rick Matros added they are weighted towards assisted living and memory care. Regarding the disclosure, Rick Matros explained it was a one-time decision to provide visibility into the high volume of activity, given the company's strong track record of closing awarded deals, and that they may not do so in the future as closed deals will be available to announce.

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EVP Talya Nevo-Hacohen indicated there is visibility towards reaching pre-pandemic metrics, particularly in assets that can drive rate. CEO Rick Matros confirmed some operators in both senior housing and skilled nursing have already exceeded pre-pandemic performance, highlighting the overall strength and quality of the current portfolio.

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EVP & CIO Talya Nevo-Hacohen explained that the company is being highly selective, passing on challenged assets and focusing on high-quality opportunities. CEO Rick Matros added that portfolio deals they've seen have 'hair on them' and the company is avoiding the heavy lifting required for such transactions. On behavioral health, Matros stated they prefer a specific private equity-backed operator model, which is rare. Nevo-Hacohen confirmed the recent acquisition is a good example of their target profile.

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Chairman & CEO Ric Campo compared the current setup to the 2010-2013 period following the Great Recession, predicting strong future rent growth. He noted that with new construction starts down significantly, the market is positioned for a rebound. He cited Witten Advisors' forecast for over 4% rent growth in Camden's markets in 2026, accelerating to 5% and beyond in 2027.

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President and CFO Alexander Jessett outlined the strategic goal to have no single market represent more than 10% of NOI (targeting reductions in D.C. and Houston) and no market less than 4% (targeting growth in Nashville) by the end of 2027. He affirmed that Camden is prepared to utilize its balance sheet and increase leverage (while staying below 5x net debt-to-EBITDA) for compelling value-creation opportunities once the transaction market shows more stability.

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Chairman and CEO Richard Campo confirmed the strategy to lower exposure in both Houston and Washington D.C. He stated that dispositions are a potential source of funds, but not strictly necessary given the company's low-levered balance sheet. He suggested an ideal market balance is around 6% to 9% of assets, though a larger market like Houston could support a slightly higher concentration. The goal is to trim slower-growing assets and rebalance the portfolio over time.

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EVP & CFO Atish Shah detailed that the H2 group pace is two-thirds volume and one-third rate. President & COO Barry Bloom added this was a strategic effort to fill need periods, driving significant ancillary spend. Regarding Northern California, Bloom confirmed strong demand growth but noted that high wage costs present a challenge to margin expansion, though EBITDA is increasing.

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Chair and CEO Marcel Verbaas responded that it is too early to predict 2025 leisure trends due to short booking windows. However, he expressed optimism that a strong group business base already booked for next year will provide a foundation for better overall revenue management. He also cited a potential, albeit modest, tailwind from a rebalancing of international inbound versus outbound travel.

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President & CEO Peter Scott clarified that the White Plains example with rent doubling was an exceptional case, not the standard expectation, but affirmed the strategy is to drive significant rate pops through capital investment to achieve a 10% cash-on-cash yield. EVP & CFO Austen Helfrich explained the rise in capitalized interest was due to nearly 2 million square feet of projects commencing redevelopment in Q2 and advised that this level of capitalized interest is a good assumption going forward.

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CEO Peter Scott identified empowering local teams, improving technology, and G&A savings as key drivers for margin improvement, noting that most leasing internalization is already complete. COO Robert Hull described the leasing pipeline as historically strong, with growing health system participation, and stated that Q1's new lease volume puts the company on pace to meet its annual targets.

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COO Robert Hull clarified that the majority of Steward-related activity was treated as renewals, not new leasing. CFO Austen Helfrich confirmed that the 2025 absorption guidance of 75 to 125 basis points excludes any impact from Steward, providing a cleaner view of core portfolio growth.

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Executive Todd Meredith explained that Q3 occupancy was lower for much of the quarter before a strong rebound in September, creating a lag effect on average occupancy and NOI. He confirmed that future growth will be driven by contractual increases, cash leasing spreads, and occupancy gains. Interim CFO Austen Helfrich added that the backfilled Steward leases, representing $17 million in NOI, are expected to commence without a significant timing mismatch.

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CEO & Trustee Bryan Smith explained that the initiative is part of a broader revenue optimization strategy, making a specific value difficult to isolate, but it provides benefits to both occupancy and rate. SEVP & CFO Christopher Lau added that the program enhances visibility and creates a favorable earn-in for the following year. He confirmed the expectation is that it will benefit 'days to re-resident' over time, which currently stands in the low 40s for Q2.

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CFO Christopher Lau stated that the core development program doesn't require equity, making it an opportunistic tool for potential growth in development or portfolio acquisitions that meet their strict criteria. COO Lincoln Palmer noted that the rent-versus-buy affordability gap is smallest in the Midwest and largest in markets like Salt Lake City, but overall demand for AMH's product remains strong across the portfolio.

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CEO Bryan Smith reiterated the long-term attractiveness of the development program's returns, noting that potential cost increases from tariffs would not be a 'huge needle mover.' Regarding occupancy, he stated that while move-outs to buy are the top reason for turnover, the significant affordability gap between renting and owning provides a strong buffer. He added that AMH is focused on bolstering its service offering to enhance resident retention, making the convenience of renting difficult for homeowners to replicate.

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COO Bryan Smith stated that, excluding the unpredictable COVID period, AMH has typically tracked at the top end of market rent growth forecasts and believes the company is well-positioned for 2025. Regarding the acquisition, he confirmed the process was competitive and noted that opportunities are coming through various channels, including brokers and direct relationships, with AMH being a logical solution for many sellers.

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COO Sean Breslin identified the Mid-Atlantic and Southern California as the primary underperformers due to job market softness. CEO Benjamin Schall added that 2025 development starts are advantageously pre-funded at a 5% cost of capital, which provides a sufficient spread against projected yields, especially given observed construction buyout savings.

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Chief Operating Officer Sean Breslin explained that renewal growth is tracking to plan and is expected to strengthen in the second half due to tougher prior-year comparables in H1. Chief Investment Officer Matthew Birenbaum described the Sunbelt deal as unique due to the seller and asset fit, with CEO Benjamin Schall adding that it was an opportune time to enter those markets at an attractive basis.

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CIO Matthew Birenbaum described the transaction market as volatile and rate-sensitive, noting they have a head start on dispositions for the year. CFO Kevin O'Shea and CEO Benjamin Schall emphasized that development is primarily funded by the equity forward and free cash flow, not dispositions. They highlighted their financial capacity to be nimble, with Schall adding that their operating model initiatives add 30-40 basis points of incremental yield to new investments, enhancing their competitive advantage.

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CIO Matthew Birenbaum clarified that underwriting on an untrended basis is a conservative approach and does not depend on future rent growth to make a deal work. CEO Benjamin Schall emphasized the strategy is supported by a cost of capital advantage and falling construction costs. Regarding transactions, Birenbaum described the market as "thin" and noted that while the company aims to be net-neutral on transactions, it will likely be a net seller this year. The equity proceeds facilitate this strategy by removing the need to fund development with disposition capital.

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SVP & COO Michael Lacy explained that UDR became more aggressive on renewals in Q2 to test retention strength but is now scaling back slightly for Q3/Q4 because market rent growth has been more muted than expected. Regarding guidance, he noted that occupancy is in a much better position than last year, and while back-half comps are easier, the company is not banking on that. He expects retention to remain strong, running 300-350 basis points better than the prior year.

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COO Mike Lacy reported broad-based acceleration, with the most significant pickup in the Sunbelt, particularly in Texas and Florida, where Austin saw a 500 basis point improvement from a low base. He also highlighted strength in D.C., Boston, San Francisco, and a notable acceleration in Seattle. To de-risk the back half, Lacy explained they are sending out renewal offers of 4.5% to 5% for July/August. He noted new lease growth turned flat in April (up from -3% in Q1), providing momentum to be more aggressive on pricing while strategically managing occupancy during the peak leasing season.

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COO Mike Lacy clarified that the apparent deceleration on the West Coast is not from core operations but is driven by a $2-3 million revenue drag from new rent control measures in Monterey Peninsula affecting utility reimbursements. CEO Tom Toomey declined to speculate on the future of the GSEs, stating they are a high-functioning and stabilizing force for the market that he does not expect to see disappear.

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SVP of Operations Mike Lacy clarified that while Sunbelt pricing is stabilizing, a key factor impacting recent blended lease rates was a higher-than-usual number of short-term leases converting to long-term ones. On turnover, Lacy highlighted the success of the 'customer experience project,' which has led to 1,800 fewer move-outs year-over-year, translating to a $9 million NOI benefit. He noted that saving a single resident from turning over is worth approximately $5,000.

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EVP, Chief Strategy & Analysis Officer Timothy Argo explained that July's improvement is driven by both continued renewal strength in the 4.5% range and the best new lease rate performance of the year. He noted the guidance change was primarily impacted by weaker-than-expected new lease pricing in the second quarter.

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Tim Argo, EVP and Chief Strategy Officer, agreed that less seasonal deceleration is possible in late 2025 due to moderating supply and easier comps. Clay Holder, CFO, projected that year-over-year net effective rent growth would likely turn positive around the middle of Q3 2025. Tim Argo also noted that the blended rate performance gap between smaller secondary markets and larger primary markets has narrowed to approximately 50 basis points.

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President & CFO Jim Sebra explained the outlook is based on comparing expiring rents to current market rent estimates. He noted that while new lease trade-outs are expected to improve sequentially, they will remain negative at -2.7% for H2. Sebra confirmed that lead volumes and tour velocity remained strong in July, up 3-4% year-over-year, indicating solid demand.

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President and CFO Jim Sebra confirmed that lease trade-outs are improving sequentially each month and that leasing demand in April and May is up 20-25% year-over-year, with conversion rates remaining stable. EVP of Operations Janice Richards added that seasonality is unfolding as anticipated.

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CFO James Sebra clarified that the 1.6% blended lease rate growth guidance assumes 0% new lease growth for the year, starting negative and turning positive by April, excluding any value-add benefits. Executive Scott Schaeffer described the investment pipeline as 'fulsome,' containing both new construction lease-ups and Class B assets, with some opportunities arising from distress due to maturing financing.

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CFO James Sebra estimated the 2025 revenue earn-in at approximately 50 basis points. Executive Scott Schaeffer stated that at 95.5% to 96% occupancy, the company has reached its target and will now pursue a more balanced approach to rent growth. Sebra and Executive Janice Richards added that new lease growth should improve rapidly in early 2025 as new supply diminishes.

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President & CEO Angela Kleiman noted that including all leases added 100 basis points to the blended rate in Q2 and expects the full-year 'all-in' blend to be near 3%. Regarding renewals, she stated that while Q2 renewals were strong at 4.2%, and August/September notices are being sent at slightly higher rates, it is too early to determine if this level can be sustained, especially given softness in Southern California.

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Executive Angela Kleiman responded that Northern California (especially Santa Clara and San Mateo) and parts of Seattle are leading the portfolio and tracking toward the higher end of their internal range, while Southern California, particularly Los Angeles, is softer. She affirmed that it is a fair assumption to view the strong renewal rate performance as indicative of how market rents are tracking.

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Executive Angela Kleiman confirmed expectations for a normal seasonal leasing curve in 2025, similar to 2024. Executive Barb Pak explained the sequential FFO decrease is driven by the timing of operating expenses, which are guided to be higher in Q1, and increased interest expense due to a higher line of credit balance.

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CEO Shankh Mitra stated the strategy is to focus on properties in highly affluent, difficult-to-build markets. He also urged a shift in thinking from 'supply' to 'excess supply,' emphasizing that unlike the last decade, future supply will be met with rapidly rising demand from the baby boomer generation. The key is the relationship between demand growth and potential supply growth.

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CEO Shankh Mitra expressed confidence in the sector's resilience, noting it held up well even during the GFC. He emphasized that Welltower is positioned for any environment, and its strong balance sheet would allow it to capitalize on opportunities arising from market disruption that pressures more highly levered owners.

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CEO Shankh Mitra confirmed the logic was correct but cautioned that reported metrics are affected by new, lower-occupancy acquisitions. He reiterated his previous outlook that the RevPOR environment should improve notably after the summer 2026 leasing season, emphasizing the company's focus on long-term positioning over short-term prediction.

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Shankh Mitra (CEO & CIO) clarified that Welltower's focus is on gaining market share through its proprietary operating platform, not on relying on macro industry absorption trends. He stated that any improvement in macro absorption would be a bonus, not the core of their strategy.

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CEO Scott Brinker noted the failed tenants were established companies (average age 15 years) that couldn't raise capital, a situation that could improve with market sentiment. Chief Development Officer & Head of Lab Scott Bohn clarified that renewals were heavily weighted to near-term expirations, though some early renewals occurred to accommodate tenant growth. He also confirmed that expansion space is categorized under new leasing.

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CFO Liz Perkins confirmed that Q2 is expected to be the year's low point for RevPAR growth, with about 1% growth anticipated for the second half. She clarified the guidance was based on Q1 performance and trends before the most recent encouraging week. Perkins also stated that the company expects to maintain ADR strength even with mix shifts, as new property-direct business is being booked at healthy rates.

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CFO Liz Perkins noted they are getting closer to the occupancy levels needed for meaningful rate growth, highlighting a remaining 5% gap to pre-pandemic compression levels. CEO Justin Knight stated that lower interest rates or a reacceleration in fundamentals could narrow the transaction spread, and confirmed their current tactical sales strategy is customized to the market environment, favoring individual asset sales over portfolios.

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CEO Justin Knight expressed optimism about the resilience of leisure travel and the opportunity to build midweek occupancy, which he believes now positions the company to more meaningfully grow rates. Regarding capital allocation, Knight highlighted the attractive spread between asset sale prices and share repurchase prices, emphasizing the goal of optimizing capital deployment. CFO Liz Perkins added that the team refocused on mix management in Q3 to capitalize on this opportunity.

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EVP & CFO Robert Probst pointed to strong move-in demand, favorable labor expense trends, and the key selling season as drivers for the second half. EVP & Chief Investment Officer J. Hutchens attributed the strong RevPOR growth to a deliberate price-volume optimization strategy, stronger street rates, and 7% internal rent increases, noting good pricing opportunity remains even at current occupancy.

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CFO Robert Probst clarified that the guidance assumes the Brookdale assets remain triple-net for most of 2025, making the FFO impact a 2026 story. Executive J. Hutchens attributed the confidence in occupancy gains to strong fundamentals but stressed that achieving the forecast is highly dependent on the key selling season.

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CEO Debra Cafaro emphasized the attractiveness of their current investment profile—high immediate yields with embedded growth—and noted any deviation would require a compelling risk-adjusted return. Regarding Brookdale, J. Hutchens acknowledged that while Brookdale holds the renewal option, a mutually agreed-upon 'in-between' outcome could be a win-win scenario.

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