Healthpeak Properties, Inc.

need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star, then the number one on your touchtone phone. To withdraw your question, again, please press the star, then the number one. Please note this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President of Investor Relations. Please go ahead.

Today's conference call will contain certain forward-looking statements. Although we believe expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to risks and uncertainties that may cause actual results, especially materially, from our expectations. Discussion of risk and risk factors is included in our press release and detail in our filings of the SEC. We do not undertake a duty to update any forward-looking statements. Certain non-GAAP financial measures will be discussed in this call. In an exhibit of the 8K we furnished to the SEC yesterday, We have reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg Q requirements. The exhibit is also available on our website at healthpeak.com. I'll now turn the call over to our President, Chief Executive Officer, Godfrey.

All right. Thanks, Andrew. And welcome to HealthPeak's second quarter 2025 earnings call. Our CFO, Kelvin Moses, is here with me for prepared remarks, and our senior team is available for Q&A. I want to start by thanking our entire team for another quarter of excellence in execution. one of our WeCare core values. In addition to their normal responsibilities and strong financial results, our team completed an enterprise-wide technology upgrade after more than a year of planning and testing. The new platform will improve the integration and availability of data, increase productivity, and provide a foundation for rapid deployment of additional AI capabilities. All right, let me touch on the political and regulatory environment. The reconciliation bill signed in early July should be a first step in reducing the uncertainty that has impacted our sector. As is often the case, the reality was far better than the attention-grabbing headlines earlier this year. We were pleased to see the changes made to drug pricing for rare diseases and favorable tax treatment for research and manufacturing. Both changes helped promote biopharma investment here in the U.S. In our outpatient business, the impact of the Medicaid cuts should be pretty immaterial given our locations and our tenant's payer mix. More important is a recent proposed rule from CMS to the so-called inpatient only list. Current policy requires surgical procedures to be performed in a hospital unless explicitly approved by CMS for an outpatient setting. In other words, the default option is the hospital. The proposed rule would reverse that, and the default option would be to allow the outpatient setting. This would be very positive for our business. Our decision to internalize property management continues to be a strategic and financial success. Next month, we'll internalize 2 million square feet in Boston and 1 million square feet in Texas. One of my strategic goals has been to bring us closer to our real estate, and I love the fact that our own employees are now interacting with our tenants on a daily basis. We've been able to remove layers of oversight and bureaucracy, generate profit, and augment relationships with our tenants. Last week, we received our most recent tenant satisfaction scores, which showed year-over-year improvement and are well above industry averages. Our focus on customer service helps drive high retention rates and releasing spreads. I'd like to give some color on second quarter results in each of our business segments, starting with outpatient medical. Same-store growth, retention, and releasing spreads were all near record levels. The aging population and consumer preference for convenient, lower-cost settings is driving demand for our buildings. Meanwhile, new supplies at the lowest levels we've seen in two decades. That dynamic is favorable for Healthpeak with the largest footprint in the sector and industry-leading tenant relationships. By design, we have significant concentration in markets like Dallas, Houston, Nashville, Atlanta, Phoenix, and Denver. We'll continue to grow in these core markets, deepening our competitive advantage in geographies with the highest potential for internal and external growth. To that point, we recently closed two large outpatient development projects in Atlanta, representing $150 million of projected spend. Atlanta is one of our biggest and most important outpatient markets, supported by our relationship with Northside Hospital, a fast-growing and highly successful regional health system. The new developments are anchored by Northside, outpatient services, and physicians, and are 78% pre-leased before commencement of construction, with a strong leasing pipeline behind that. We expect to achieve a mid-sevens return on cost, generating significant shareholder value relative to acquisition cap rates on such high-quality assets. In our lab R&D business, we're beginning to see at least a few leading indicators turn positive. Spec new supply is quickly going to zero and should remain there for quite some time. A recent broker report showed more than 4 million square feet of inventory being removed from the supply pipeline as certain landlords who lack scale and expertise pursue an alternative use. On the regulatory front, new leadership at the FDA are making changes to promote innovation and modernization. That amount of change creates a bumpy transition, but the landing point should be positive for the biopharma sector. In particular, the cost and time to bring a drug to market in the U.S. could come down, improving the return on cost for R&D taking place in our lab buildings. We've also seen a couple of $10 billion M&A deals recently, which allows capital to be recycled back into the ecosystem. Those M&A exits, along with political and regulatory stability, should help jumpstart public and private capital raising, which is the key to an improvement in new leasing. Moving to our CCRC business, which experienced record leasing volumes last quarter. Our strategic decision to increase affordability with our unique entry fee structure broadened our demand pool and differentiated our product. The CCRC portfolio is residential housing for independent seniors with significant amenities and a continuum of care available onsite. Our net entry fee is just 60% of the local median home value, representing a strong value proposition for our residents. The portfolio is now generating approximately $200 million of annual NOI, including cash entry fees, which incredibly is 50% higher than in 2019 before the pandemic. Our decision to bring in LCS as the operator has been an important part of that spike in performance. And with current occupancy at 86%, We have more upside to capture. Okay, let me turn it to Calvin for financial results and the balance sheet.