Welltower Inc (NYSE:WELL) Q1 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 08:00 am ET


Welltower Inc (NYSE:WELL) Q1 2018 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the First Quarter 2018 Welltower's Earnings Conference Call. My name is Kim, and I will be your operator today. At this time, all participants are in 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 Tim McHugh, Vice President, Finance and Investments. Please go ahead, sir.

Tim McHugh

Thank you, Kim. Good morning, everyone, and thank you for joining us today to discuss Welltower's first quarter 2018 results. Following the Safe Harbor, you'll hear prepared remarks from Tom Derosa, CEO; John Goodey, CFO; Shankh Mitra, Chief Investment Officer; and myself.

Before we begin, let me remind you that certain statements made during this conference call may be deemed forward-looking statements in 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 that 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, you may access it via the Company's website at welltower.com.

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

Tom DeRosa

Thanks, Tim. Good morning. I'm pleased to report to you a solid quarter completely in line with our expectations. Welltower business platform continued to deliver positive same-store growth externally who through completing over $600 million of acquisitions and developments, generated growth capital through profitable property sales and loan payoffs of approximately $1 billion and further delevered our balance sheet to a ratio of 35.3% net debt to undepreciated book capital, the lowest level in our history.

We run this Company for our shareholders and never lose sight of our goal to deliver high-quality, durable, and growing cash flow. Our commitment to delivering results from our core business is self-evident in these results. That said, the current operating and capital markets environments make this hard. You have to make hard decisions about where you invest shareholder capital. These decisions do not always make you popular. Nevertheless, the easy money asset aggregation models of the past are not a strategy for the future. You have to work harder and you have to work smarter.

You've heard me discuss our strategy of aligning Welltower seniors housing and post-acute assets more closely with health systems. We believe this is an imperative if we are to drive down the cost of healthcare delivery and improve health outcomes, particularly in view of the aging of the population. This is at the core of our strategy. And today, we are excited to tell you about a transformational transaction that demonstrates our leadership position