Welltower Inc (NYSE:WELL) Q3 2017 Earnings Conference Call - Final Transcript

Nov 07, 2017 • 10:00 am ET


Welltower Inc (NYSE:WELL) Q3 2017 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Third Quarter 2017 Welltower Earnings Conference Call. My name is Dorothy, and I will be your 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, Dorothy. Good morning, everyone, and thank you for joining us today to discuss Welltower's third 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 John Goodey, 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 assurance those 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 wanted to point out four highlights regarding our third quarter 2017 results. First, we reported 4.1% year-over-year same-store growth in our senior housing operating portfolio, supported by greater than 3.5% growth across all three of our global geographies. Second, driven by senior housing operating performance, we reported total portfolio same-store growth of 3.4% in the quarter, allowing us to raise full year total portfolio same-store guidance for the second time this year to 2.5% to 3%.

Third, as a result of the continued strong property performance, we are increasing normalized FFO guidance to a range of $4.19 to $4.25 per share from our prior guidance range of $4.15 to $4.25 per share. And fourth, we finished the quarter at 5.19 times net debt to EBITDA, representing a half-turn reduction in year-over-year leverage.

And with that, I will turn the call over to Tom for further remarks on our quarter.

Thomas J. Derosa

Thanks, Tim. As Tim just highlighted, we are pleased to report a strong quarter characterized by industry-leading results from Welltower's premier seniors housing portfolio, which is concentrated in major metro markets. The REIT sector appreciates the resilience of A-quality real estate in most industry categories, and our performance supports the fact that health care real estate is no different.

While the overall environment remains challenging, our same-store seniors housing operating portfolio registered 4.1% growth, with the US posting 3.7%.Keep in mind that we have 423 properties in our same-store operating pool, which is by far the largest same-store operating portfolio in the industry. So our numbers are statistically significant, consistent from quarter-to-quarter and financially reliable.