Welltower Inc.

there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. We would ask that you limit yourself to one question and re-queue if you have any further questions. Thank you. I would now like to turn the call over to Matt McQueen, Chief Legal Officer and General Counsel. Please go ahead.

Thank you and good morning. As a reminder, certain statements made during this call may be deemed forward-looking statements in the meaning of the Private Securities Litigation Reform Act. Although Welltower believes any forward-looking statements are based on reasonable assumptions, the company can give no assurances that its projected results will be attained. Factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the company's violence with the FCC. And with that, I'll hand the call over to Sean for his remarks.

Thank you, Matt, and good morning, everyone. As usual, I'll review business trends and our capital allocation priorities, and the team will follow the usual cadence. Second quarter marked another period of solid execution across the board at WorldTower, from operations to investment activity and a further strengthening of our balance sheet. We also made significant progress on the rollout of our operating platform, which John will discuss shortly. Ultimately, we're pleased to have delivered another quarter of strong FFO per share growth of 22%, exceeding our already high expectations. These results, coupled with increased conviction for the back half of the year, has enabled us to once again raise the midpoint of our full year FFO guidance, this time by 13 cents to $5.10 per share. For the quarter, we reported 23.4% same-store NY growth for our senior housing operating portfolio, representing the 11th consecutive quarter in which the growth has exceeded 20%. Organic revenue growth came in at 10%, driven by 420 basis points of occupancy gains, the highest level of growth we have achieved outside the post-COVID recovery. Notably, our UK portfolio posted a 600 basis points of pickup in occupancy and 27% same-store online growth, reflecting strong in-market demand and our favorable positioning of our purpose-built portfolio in highly selective and attractive micro-markets. Growth in Redport, reflective of pricing power, was approximately 5% and remained healthy across all regions. We expect a further strengthening of RETPOR in coming years as portfolio and industry-wide capacity continues to diminish. I will also highlight the spread between RETPOR or unit revenue and export or unit expense remains at historically wide level driving additional 330 basis points of margin expansion in SHOP. Our consistent pace of growth has allowed us to achieve two significant milestones this quarter as both in-place annualized NY for shop assets have surpassed $2 billion, and overall annualized company revenue ever keeps $10 billion for the first time. While the demand-supply dynamic remains attractive for the industry, we do not believe that the fundamentals alone will drive durable long-term performance in such an operationally intensive business. As in the past, we'll continue to leverage insights from our industry-leading data science platform and world-star business systems to drive additional portfolio and asset management initiatives, efforts we believe have been key contributors to our historical outperformance. For example, from a capital allocation standpoint, over the past five years, we have completed roughly $29 billion of investment activity through the scale achieved from our data science platform. But it's often forgotten that we also sold $16 billion worth of assets over the past decade to improve the quality and growth trajectory of overall portfolio as we enter the perceived golden age of the industry. We have painstakingly transitioned hundreds and hundreds of properties over the past few years to best-in-class aligned regional operators to unlock full operational potential of these communities. This includes the transition of 10,000 units Holiday by Atria portfolio, which we announced last summer, the largest portfolio of transition to date. For background, Holiday was acquired in 2021 at a price we believe to represent an extraordinary value, but so far it has turned out to be our biggest capital allocation mistake by yours truly. We have increasing conviction that our initial execution plan and structuring was flawed, but regardless of the reason, We consider the deal a failure so far, and our biggest disappointment over the past decade, as we have so far been unable to make money for you, our fellow shareholders. As you have come to know, we do not take such shortcomings lightly, and as always prepared to take decisive action when outcomes fall shy of our high standards. So in middle of last year, we announced the transition of the portfolio to six of our existing regional operators. This was not an easy feat given the size of the portfolio, geographic disruption, and the challenge inherent in any operating operator transition coupled with the value-added nature of the original business plan. While we have a long way to go, we're encouraged by the early results. Since the beginning of this year, this portfolio has delivered a 560 basis points of improvement in occupancy, which you are not seeing the benefit of in our reported numbers, as these properties are not yet in same store. I would encourage you to take a look at the slide 13 and 14 of our business update presentation for more details. While the NOI has yet to recover as operators tweak the service model, we're optimistic about the momentum in occupancy and estimate that the NOI will turn the corner in Q4. We believe that substantial upside remains not only from this portfolio, but also other transitions we have announced over the past few years. I'm grateful to the Wealth Hour team for our best in class and our best in class operating partners for their tireless efforts, and I look forward to providing further updates in future quarters. Shifting to capital deployment, even after announcing a historic level of investment activity in the first quarter, we exceeded the level of acquisitions completed in all of 2024, Our investment team has never been busier. Nikhil will provide you more details, but here today we have closed or under contract to close approximately $9.2 billion worth of highly attractive acquisitions across all of our regions. We remain pleased with the state of our pipeline, which remains robust, visible, actionable in all three countries that we do business in. And lastly, turning to our balance sheet, Following the credit rating upgrade we received last quarter from both S&P and Moody's to A, our balance sheet has trended even farther. Another quarter of strong cash flow growth coupled with prudent funding of our balance sheet has driven net debt to adjusted EBITDA below three times and interest coverage over six times and lifted our total liquidity to $9.5 billion. Our upcoming debt maturity has remained modest, and we have created significant flexibility to fund future investment activity. Overall, it has been an incredibly active first half of the year, and I'm proud of what we have accomplished. However, our work is far from being complete this year. Our team shows up every day to win, and we have a long journey ahead of us. With that, I'll pass it over to John.