Welltower Inc. (NYSE:HCN.PRJ) Q1 2016 Earnings Conference Call - Preliminary Transcript
May 03, 2016 • 10:00 am ET
Good morning, ladies and gentlemen and welcome to the First Quarter 2016 Welltower's Earnings Conference Call. My name is Holly, and I will be your conference operator. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of this conference. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.
Now, I would like to turn the call over to Jeff Miller, Executive Vice President and Chief Operating Officer. Please go ahead, sir.
Thank you, Holly. Good morning, everyone, and thank you for joining us today for Welltower's fourth quarter 2016 conference call. If you did not receive a copy of the news release distributed this morning, you may access it via the company's website at welltower.com. We are holding a live webcast of today's call, which may be accessed through the company's website.
Before we begin, let me remind you that certain statements made during this conference call may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Welltower believes results projected in any forward-looking statements are based on reasonable assumptions, the company can give no assurance that its projected results will be attained. Factors and risks that could cause actual results to differ materially from those in the forward-looking statements are detailed in the news release and, from time to time, in the company's filings with the SEC.
I will now turn the call over to our CEO, Tom DeRosa. Tom?
Thank you Jeff. Hello this morning I want to talk to about real estate. The power of real estate. What I mean by that, I mean Real estate then locations and markets it cannot be easily duplicated. Real estate that is nimble and adaptive to changing consumer Preferences. Real estate that defies conventional wisdom about supply and retains value across economic cycles. Overtime the lease that class a real estate has reproduced superior and resilient results compare to others that have not followed this strategy. Our quarter is yet another example of the phenomenon that began in 2010. This is my friends is why you own Welltower. The headline number is that our operating story grew by 5.5% in the first quarter.
This numbers have not come as a surprise to us, in fact it's totally consistent with the operating same store in a wide growth portfolio over the last five years. Our total portfolio is now around 3.8% and FFO is 9%. All thanks to our business produce good results but we did have a phenomenal quarter in our senior housing for portfolio.
While there have been real headwinds from increases in labor costs and other operating expenses our class A real estate was able to pass this along to the consumer in strong rate growth while at the same time increasing occupancy by 60 basis points to 90.7%. Now the last few earnings calls we told you that we remain bullish about the senior housing