Welltower Inc (NYSE:WELL) Q1 2017 Earnings Conference Call - Final Transcript

May 05, 2017 • 10:00 am ET


Welltower Inc (NYSE:WELL) Q1 2017 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning ladies and gentlemen and welcome to the First Quarter 2017 Welltower Earnings Conference Call. My name is Holly and I will be your conference operator today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

Now I would like to turn the call over to Tim McHugh, Vice President, Finance and Investments. Please go ahead, sir.

Tim McHugh

Thank you, Holly. Good morning, everyone and thank you for joining us today to discuss Welltower's first quarter 2017 results. Following my brief introduction, you will hear prepared remarks from Tom DeRosa, CEO; Mercedes Kerr, EVP, Business and Relationship Management; Shankh Mitra, SVP, Finance and Investments; and Scott Estes, CFO.

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 assurances as 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 this morning's press release and from time to time in the Company's filings with the SEC. If you did not receive a copy of the press release this morning, you may access it via the Company's website at welltower.com.

Before handing the call over to Tom DeRosa, I want to highlight three significant points regarding our first quarter 2017 results. First, we disposed of over $1.1 billion in non-core assets, bring our private tape as a percentage of revenue and 93.1%, and using proceeds to retire $1.1 billion of high rate, secured debt and preferred securities.

Second, this balance sheet focused capital allocation, reduced net debt to book capitalization to 35.8% and net debt to EBITDA to 5.26%. And nearly half turn reduction from just a year ago. And third, we reported 2.2% total portfolio same-store NOI growth for the quarter, and we are reaffirming our guidance of 2% to 3% total portfolio same-store growth for 2017 which as a reminder does not include any benefit from leap year adjustment.

And, with that, I will hand the call over to Tom for some remarks on the quarter. Tom?

Tom DeRosa

Thanks, Tim. We were pleased with our first quarter results, predictable and right on-track characterize this quarter. Words that may sound boring to some but speak of the stable growth that an A quality premium portfolio of healthcare real estate assets provides. The effective new supply hardly coupled with little differentiation in cap rates for A versus B assets has made us a net seller of senior housing assets this quarter. We have taken that capital and redeployed it behind the Welltower family of operators and reduced the leverage to historic low levels.

Welltower's senior housing presence in dynamic metro markets on the eastern west coasts, as well as in Canada and the UK continue to provide a significant competitive performance advantage. We