Welltower Inc (NYSE:WELL) Q1 2019 Earnings Conference Call - Final Transcript

Apr 30, 2019 • 10:00 am ET


Welltower Inc (NYSE:WELL) Q1 2019 Earnings Conference Call - Final Transcript


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Good morning ladies and gentlemen and welcome to the First Quarter 2019 Welltower Earnings Conference Call. My name is Nicole, and I will be your operator today.

[Operator Instructions]

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

Tim McHugh

Thank you, Nicole. Good morning everyone and thank you for joining us today to discuss Welltower's first quarter 2019 results. Following the Safe Harbor, you will hear prepared remarks from Tom DeRosa CEO; Shankh Mitra, Chief Investment Officer; 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 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. 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.

And with that, I'll hand the call over to Tom for his remarks in the quarter.

Thomas J. DeRosa

Thanks, Tim. I am pleased to report a strong quarter, completely in-line with the expectations we laid out for you at our Investor Day last December. These results are the product of consistent growth across all of our business segments, in particular, seniors housing where performance is being driven by an ongoing stabilization of occupancy, which Welltower began to benefit from in 2018.

We expect this to continue through the rest of the year. We also continue to benefit from excellent access to capital, which allowed us to both fund our contractual investment pipeline and position the balance sheet for opportunistic investments going forward, locking in long-term value creation for our shareholders.

Our differentiated strategy and approach to capital allocation has resulted in a total of $2 billion in new investments, closed or announced, since the start of 2019, bringing accretive new investment volume to over $6 billion, since early 2018. This is enabling Welltower to deliver the earnings growth, we report to you today. Simply put, we run Welltower to deliver sustainable and reliable growth to our shareholders. Our results demonstrate that our strategy works. Shankh Mitra will now give you a closer look at our operating performance in the quarter, as well as our new investment activity. Shankh?

Shankh Mitra

Thank you, Tom and good morning, everyone. I will now review our quarterly operating results, provide additional details on performance, trends and recent investment activity.

At our Investor Day in December, we gave you a detailed look into our view of senior housing supply and how adjusted competition units and yet to open inventory shock impacts our best-in-class portfolio, within our specific micro markets. While pundits proclaim supply