Shankh Mitra: So I think, if I understand correctly, Nikhil correct me if I’m wrong, all our development starts are either fully 100% leased medical office developments that we have long-term tail or long-term contracts with our existing clients or their wellness housing development. I do not believe that we have started any senior housing development. I don’t remember when was the last time we actually started the senior housing development. So because of the all reporting in the same bucket, Austin, but they’re not senior housing development, there are what in the — what we call wellness housing, which is age restricted and age targeted apartment.
Operator: Our next question comes from Juan Sanabria with BMO Capital Markets. Please go ahead.
Juan Sanabria: Hi. It’s Juan here with Juan [ph] still. Just a quick question on the investment pipeline. Could you give a breakdown of kind of what you’re looking at? And where do you think you see or where are stabilized deals say for what you’re targeting in the major food groups?
Shankh Mitra: Yes. So the pipeline today is, as I said, I don’t know, Nikhil, but it’s like 80% plus would be senior housing. And mostly, I would say, equity in senior living and probably maybe 90%. But vast majority of senior living and core equity opportunities in senior living just because of the size. It’s just a lot of it is in U.S. And we just closed a large transaction in Canada. So if I think about — remember it correctly, it’s almost entire — not entirely, but majority is U.S. senior housing and there are some credit opportunities in the [indiscernible]. I don’t remember any transaction or pipeline about any MOBs, but do you know anything?
Nikhil Chaudhri: Nothing meaningful.
Shankh Mitra: Okay. And stabilized yields, I would say, in the senior living today, we are targeting close to 8 on a stabilized basis and going in. I think I said last call, we are seeing sort of opportunities that starting at 6, ending at 8 and given the rise of real rates, we are seeing better than that today. Frankly, we have ratcheted our return expectations higher. So that’s sort of where we are transacting. But we are not a yield buyer. We are still happy to buy 1% yield, if we think that’s the right basis and the right assets. But generally speaking, those are the kind of opportunities we are seeing.
Operator: Our final question comes from the line of Vikram Malhotra with Mizuho. Please go ahead.
Vikram Malhotra: Thanks for the — taking the follow-up. Nikhil or Shankh, can you just update us on the Integra process? How are those assets been performing? And by extension, is there — are there additional opportunities? I just asked that because you had earlier outlined upon stabilization, you might look to sell some of that. So would just be helpful to get an update on Integra. Thanks.
Nikhil Chaudhri: Yes, Vikram. So we are pleased with the performance that we are seeing. Last quarter, I talked about the first 133 out of the 147 buildings that have transitioned. In the last quarter, those buildings produced roughly $70 million of positive EBITDARM compared to negative $90 million for the 3 months prior to the transition. Now fast forward another quarter, those same buildings in the second quarter generated $127 million of EBITDARM. So in the 6 months since transition, you’re seeing a cash flow swing of $215 plus million and obviously, every month continues to be better than the prior month. And so if you look at June end and you annualize that, you were roughly $170 million, which is north of the rent, right?
So here we are 6 months in when we had underwritten this, we thought it would take us much longer 18 months, give or take, to get to this point. So we are incredibly pleased with the performance. But we think there’s still a long ways to go. So your point about exiting upon stabilization, we are happy with the progress, but we are far from stabilization.
Operator: This concludes the Welltower third quarter conference call. Thank you for joining.
