CSU - Earnings call transcript Q1 2018 | Sonida Senior Living, Inc.

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Operator

Good day, and welcome to the Capital Senior Living First Quarter 2018 Earnings Release Conference Call. Today's conference is being recorded. The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company's ability to find suitable acquisition properties at favorable terms; financing; licensing; business conditions; risk of downturns in economic conditions, generally; satisfaction of closing conditions, such as those pertaining to licensure; availability of insurance at commercially reasonable rates; and changes in accounting principles and interpretations, among others; the other risks and factors identified from time-to-time in our reports filed with the Securities and Exchange Commission. At this time, I'd like to turn the conference call over to Mr. Larry Cohen. ahead. go Please

Lawrence Cohen

our afternoon, operations, Quarter Good we to Senior increase aspects Capital to scale our Thank reduce drive to Earnings and sustainable Call. First costs, of all improve XXXX action flow quarter, including In Living's leveraging take operational from you. cash to welcome business, and the continue first growth.

effect first of make expenses. as of which exceeded than Consistent quarter, building we we improving cost on operational By our excellence plan. goals continue to our excellent impact initiatives As cost we operational against growth and our have Despite attrition control saw have we income, committed from projections. we in greater and from Brett to seasonal last accountability, our these the initiatives the Carey throughout maintain on occupancy financial the same-community anticipated will operations XXXX well discuss high performance. as reliability, cash expected to and initiatives XXXX flow internal a net year. with further strategic are progress culture in and remain our our year-over-year our also and lower with quarter, improvements operating revenue

operational owned are our executing real We remain the estate. cash from enhanced full-year that, to quarter. highlights and deliver revenues, the of focused guidance With our turn we our reaffirming XXXX on higher strategy maximize some to comprehensive flow value let's and

quarter. XXX points As seasonal expected sequentially from same-community high the fourth decreased basis attrition occupancy

communities. the that its greatly severe we be and to We spread combat protocols minimized pleased particularly systems season proactive to continue throughout our the flu implemented

flu and and and during leasing the communities continue flu to extended kept our Our allowed our healthier severe protocols residents season. touring

with quarter three sales With quarter and we first and lowest the quarter occupancy the of history the new past amount years. highest over in loss ended first the of number the company the of of marketing move-ins the achieved implementation initiatives,

of units XX than loss we quarterly XXX and of net considerably better quarterly the than XXXX. during projected quarter units Our of was the first loss better occupancy

As that occupancy at in XXXX. we quarter first for a years projecting are the better occupancy been standpoint an the full-year result, we position past and end growth from three the have a

also March in rent first one-time future in return some concessions to quarters. growth growth to quarter same-community increase during saw concessions for We X.X% but and would offered an annual expect compared monthly XXXX. been X% of These rate we average off the of in higher, around the burned quarter. have Rate to short-term

are combination resulted operating of first initiatives and the I the X% a structure. growth to approximately compared net improvement increasing am expenses quarters The last year. in maintaining achieved net same-store driving we on the improved we year-over-year that quarter durable our pleased only the that was XXXX. in that we base prior pricing same-community also March we consecutive in quarter income. month from couple X% and of focused efficiencies a end, the achieved first cost with same-community maintained of always, lower As Xth To the that income in cost operating expense operating of

also are We our expanding talent.

us people are financial development to well and continuing and serve Our important the and to to and our their most performance. are critical asset, helping residents optimal engagement achieve operating

Senior contributions make Resources the Jeremy enables breadth Human of hired significant the various of During Vice him newly Jeremy’s Resources. in of in organization. within we the experience Falke as quarter, development first the of our to a future to Human healthcare President created notably role industry disciplines

outstanding and Operations financial a operating in additional operations oversight join and are will expected and our President possess week. and to professionally of provide impactful backgrounds driving results. immediately Vice and strategic We Vice of in also looking our added individuals positions These and improvements to Sales academically to a next sales President Development us new organizations. are be Business Both forward

consumer discussed economic As quarter, improved stronger we profit are last confidence. we from well positioned and growth to expected

of supply. residents, benefit from interest rates most income rates. whom on interest live also constrained higher Higher fixed Our new

So to increases growth. and demographic benefit in growth supported penetration higher occupancy to we in would expected is expect more monthly driving by robust from near-term rates and further organic increases rates. growth This be expected

including one the percentage owned operations. estate ability the capture of to from enjoy our number of of by senior housing ownership, owners real and value from full largest As the we a our derived the benefit advantages,

with estate attractive from owned benefit mortgages also rates would a leverage with magnify financing our and ratios. This in economy. rate non-recourse interest positive fixed We low stronger real our performance coverage strong

handing over for before EBITDAR now throughout We Operating foundation further to By conversion to strategy excellence. improvement Brett capital XXXX hand to in The on metrics call Chief expected initiatives and made culture summarize in we strong higher us financing units are implementation accretive organic acquisitions, organizational growth, scheduled changes and expenditures. broad expenses, provide refocus Brett. and operational like our to increase our produce Officer, reliability, levels EBITDAR executing CFFO. Lee. based just the revenues, I me company-wide diligently implemented long-term to high the and operating to Let the a execute we to of focused initiatives expect to reduce strategy, call XXXX over accountability of our of a additional would for along increase care, key with operational and have and

Financial Carey comments, our will quarter Brett? Following Brett's our Hendrickson Officer results. financial discuss Chief first

Brett Lee

much, so afternoon everyone. Thanks Larry, and good

one do With make we rolling goals of to in excited possible and intertwining terms to in that allows with first fundamental make circumstances will a and progress so we Capital mind, that in the important a largely platform environment our Senior our of their consistent journey great for passionate still company, operating degrees from celebrated prior share in can autonomy to earnings our shift three that operators, decentralized a of the from centralization to milestones with of each tasks deal caring are our to a developing system, we our the in several better scale create the seniors of model more process and local operating most serve. I goal. in react service keep them welcoming residents, local we truly functions have toward today. they added to about, continue of We they a of in making have the am We in required being of days tremendous more of economies which operators, local that for and balanced model for you is safest discuss while on certain Living allowing our this discussed more level markets. centralized freedom decision calls their understand unique for is we time creating out removing what non-value larger more that a quarter the during the efficiencies every that to

using with which capital habits, costs. drive national in our very meeting went experts our platform are Living purchase to every This new the DSSI, to quarter conjunction worked program standardization national menu as implemented being needs. about. U.S. our residents. by ensure has a blueprint new menu track Firstly, nutritional system creates live procurement will their system In and and driven this new implement our all food users in a registered by Well contracts for will that Food allow quality selection to our communities and of overall dietitian we of to and to This We purchasing ensure menu early a effect effective wastage. also that there training for is flow. system country excited U.S. dietary to of a to food through Capital able reviewed that our reviewed purchasing Foods, we meals, will supplier, be enhance our electronic our appropriate residents. and effectively purchasing have our meal system staff, better decrease our their utilization more residents guide procurement food as national in restricted based GPO more variations with plan eventually April. and our GPO program This called us Living a for vendor create quality across end much with spending the of we cost will set products habits down up went program, The on overall contracts Capital or food some platform will products the the formulary system food to allows offerings of better new only by are more menu first portal the which Senior that allow in regional of request properties, a reduced into Senior single first are variation are that the menu been our on

cycle electronically, the at gets intuitive pay position of the of of office items vendors. to items centralize streamlines of AP pick Vendors time our submit process the DSSI a our significantly function care formulary level, and platform many better optimizing will purchasing users to allow importantly, us and for We the end home of early by greatly for this local DSSI residents. rebates prompt incorporate their the their are purchasing purchasing AP May. take which back of invoices now us our environment in reduce discounts will an to shuffling the advantage creating directly most non-food Most in at system and and the invoicing in them paper into days also spending platform our into out which for enhance put this offered the will our process by in list give business

spend renegotiations contracts to in control shift with regional first as to quarter. agreements process we and SIB, waste elevator and company national fixed and to our from optimize of local partnership evaluating across the management our continue of agreements We finalized costs our the well maintenance, through opportunities pest

of quarter am that named that and with and to have for first alternatives which finalized effectively. to be to review instances we standard us labor staffing occupancy were in are in beyond their has through expect aggregating greatly lower help current staff with achieve report assisted the flexing finalizing agreement year have is that last will commensurate staffing internet, our contract in implemented contracts late also consistently achieved effectively labor maintained. been [indiscernible], contract local I a spend will XXXX contract a rare We supplier scale short-term no those that in reduction which We of and operators the more staffing. grids economies cable national an in our and rates telecommunications, level significant to the now happy the utilities

focus review of an huddle perform most our to our of recent safety and safety process their but the we role provide to proud a of in leaner process system indicators wellbeing and much overall more the quality foundational discuss our important in progress drive now a held remains to operating and of residents leadership new very and communities quality daily to rebasing obligation we To operating possible our the end, highest program entire into team changes as in-depth are efficient every involves any expenses to levels, leading management We morning element the company the our implementing staffing and in continuous care of serve. lean company enhance is core on residents metrics. across safety a capital This the on improvement that residents. daily have safety to our fully model, such the events, each implemented

of We incorporating daily the internal audits quality our the for results have leadership. lean facility help assurance goals set also to begun management

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local children will music. Together, The their our classes first intergenerational music program of is which connect in to allow organization education and our power Music the and reconnect residents called communities to with offer use through with own a an national partnership

many each wanted also raising are as philanthropy and continue before we Capital that We for We residents efforts create cause this understand research, and their family. engaging To high Capital we hearts in believe of in our funds unique differentiating to occupancy correspond of cultural day a often Association organization extremely going opportunities communities Alzheimer's Senior comprehensive our of will factor in services, longest we serve to they day campaign. participate part Senior key raise forward. serve. our to that of move to of the also as service to Living a opportunity sales residents active a Living care, us the and for events the is end, fundraising philanthropic for into the Living Capital the investing events providing that fund will philosophy that is help in and near with quality Residents communities, to fuel our that our of growth. to Alzheimer's national those initiated have Senior

infrastructure. healthcare continue our a an as sales strategy prong these Vice background building through progress John cycle two make training to acute months. and finalize forward. referral metric innovative be healthcare in and Affiliations Business sales am new will important President component optimizing our models ways new we with of Sales based Our coming in our around to diversification involves in of systems several markets broader us traditional in diversify sales to to in pleased and and physicians care Development their driving seeking strategy going with field be helping our with our ACO's coupled partnership welcome force accountability systems instrumental a innovative experience ACO our I other sales the our role and affiliations and and and Klitsch, of will evidence with simultaneously based providers streams strong

in changing attrition maturity a staff volumes. in with an field challenge. significant to in emerging our keeping to and margins based first appropriately incredibly our of recognize represents conditions react While preserve we how high the This leadership occupancy. market quarter of proud to responded of experienced by I'm expenses operational and presented leadership light the line fluctuating

Hendrickson attrition communities be and in will of the is efforts year. financial focus continue staff recent my enhance our and the Mr. throughout Our first our Financial from results It this hand also a redouble to of to off residents Chief to our our the our our healthy vibrant quality Officer, for keep now represents call opportunity Carey our the the remainder pleasure to significant and to to Carey? care quarter. review

Carey Hendrickson

into our Brett, on income. you, net broad-based The and everyone. execution been in improvements and implemented into Thank are translating good continuing XXXX in initiatives platform XXXX consistent these have operating beginning that operating afternoon, same-community and year-over-year across growth are and focused revenue

the seven each and challenging including noted operating early, most income is now the same-community first historically we've growth which quarter, Larry As quarter of the net months, achieved year. for consecutive month in

lease-up non-GAAP two impacted business repositioning, Company's conversion. continue Hurricane restores measures our or undergoing Harvey measures exclude CFFO with loss. of with financial their occupancy and in Houston Our the in press licensed declined expectations since non-GAAP anticipated in line interruption than the expenses, and the higher economic communities that to The projections. communities lower I'll their are the and our comments, first we my release, of significant results the In insurance as our in remainder internal note two and include exceeded renovation units by the quarter discuss

XXXX. exclude lost to revenue include to after quarter on impacted in since the at the Revenue revenue the over as continuing is quarter approvals will reach the Remediation the million. have the Harvey. results they of of complete of we decreased expenses first. of to of credit in two our the the Houston to from operating average restore of until However, which two The the a Operating $X.X and insurance XXXX, meaningful. we of earnings first the by page in in included first XXXX impacted the million $X.X those expenses The was two reported expenses this to million first by that BI communities Hurricane them adjustment the communities of the XX Hurricane and currently Houston the net Houston for comes to coverage with or of associated and any our prior million quarter intent quarter less revenue the was Operating year $X.X receipts $XX.X release, due BI statistical communities first cover two income Harvey. two related have interruption is lost area these million $X.X goal million whichever last we decrease communities business state months nearing level communities first our and revenue of $XXX.X of the XXXX for with continue had quarter restoration Hurricane. these our Company measures of for for communities the occupancy those of we shown total two to statistical local communities revenue previous completion. would The communities residents Houston consolidated no Company's the or make measures,

expect the one community begin the and communities in May. other to of at admitting We residents the of May at end early by

the first general compared of and for were $X first quarter quarter million administrative XXXX. $X.X to Our million XXXX the expenses in of

first or was first Same-community $XX.X of first quarter in the increased the expectations exceeded coming our This year. the year. revenue in earlier $X.X of of noted quarter. Adjusted into quarter as years, for in costs $XX first X.X% in as last as quarter of quarter to million the compared prior to was percentage $XX.X XXXX. I first the XXXX, the first XXXX million to the which the the revenue increased first quarter $XX.X quarter expense XXXX the X% first X.X% of the both million quarter of CFFO in of Adjusted of compared quarter quarter under compares EBITDAR a the million the compared last to in over $XXX,XXX million transaction was to G&A G&A Excluding in the our compared first year. expense million management $XX.X first of XXXX quarter in XXXX. of

quarter, quarter, of fourth a the from XXX the last about basis a first from the Our same-community points and points first of was occupancy year. XXX basis decrease XX.X% in decrease quarter

quarter same-community only operating monthly Same-community first quarter expenses $XXX,XXX increased increased rent Our average or last from the of first year. year. X.X% the last versus of X%

Our of employee increased first in quarter XXXX. the labor X.X% only cost

units labor our employee conversions cost Excluding of to communities with only higher of care, levels increased X.X%.

same-community first on costs weather. due had of colder X.X% usual food rate, ops to our of increased our normal quarter X% first approximately levels utilities would quarter to over in first to in per excellent XXXX. were quarter our of Our on about long With in actually share as quarter team, the $X.XX usual first the been increased the XX.X% NOI the decreased costs, higher manage XXXX XXXX, Contract quarters year-over-year our returning while than decreased more historical by normalized winter increased compared fourth our of which before expenses XXXX higher than the of quarter, If the first of and have labor a X.X% in three first the the in CFFO our utilities XXXX. quarter, basis.

Looking with ended briefly equivalents, sheet, of including quarter $XX.X at cash the the we cash. cash restricted balance million and

$X.X During CapEx. capital $X.X million for which million recurring of expenditures, the spent quarter, on first was we

mortgage $XX.X debt million and $XXX.X was duration fixed XXXX at loans of XX% rates our approximately approximately rate a approximately two of is of was March after. at million. our XX for debt The in interest maturing interest years with weighted-average average totaled Our X.X XX, of March debt our balance that except debt at bridge all At X.X%.

April first is as quarters. front-end to with progress some the cost this procurement have are his that fourth with remarks, greatest our in making system system category cost very greater moved XXXX Food our impact will we to the second have savings on We we've As successfully DSSI quarter in the and category impact launched the will potential. and begin a in on X. third and good Brett noted initiatives

in will as processing functions. of early system for Brett payable that will adding will We cost begin allowing additional us of centralization May greatly noted. our This move certain workflow, categories electronic the accounts invoices to improve

come. our noted, duties the on With they reduce into our ahead can our our $X.XX expected, burden as X% X.X% as success of concentrate we on of contracts to in the cost NOI also to XXXX initiatives categories expectations administrative growth full-year full-year full-year before of to guidance the to a year quarter growth reaffirm XXXX And CFFO as directly for the XXXX. quarter personnel of Importantly, their progressing XXXX XXXX. it range XXXX several national for acquisitions of translate X% community more our X% the Brett before on a per with negotiated of per of first for and with to share If for calculate one our other remainder the residents we've $X.XX share coming CFFO and full-year it for approximately range the compared taking range in would internal basis, $X.XX to acquisitions will communities. related care for same-community into to were range CFFO

a the first reminder, quarterly we expect we guidance providing XXXX, are not as quarter, second to over quarter. increase to we in sequentially but As look CFFO quarter the second

a declined which than our this in As us in standpoint first from last better puts years. considerably we've line our in three of the time any in at occupancy noted, the occupancy an with expectations position quarter,

in grow we expect year. We continue second the stabilize to quarter a growth in financial rate before through quarter. to the our the and in Also to accelerate expect second at third the beginning quarter of our rate remainder greater the occupancy

weather the the approximately The $X quarter utilities million first second second than with with and lower lowest typically quarter utilities quarter is quarter. generally mildest the

to the first and reduce both quarter as contracts each quarter, in greater has by quarter $XXX,XXX in quarter to fourth DSSI per $XXX,XXX workers food day most to expense nationalization second and labor mostly day and costs. approximately the compared initiatives, for second as additional additional additional the the one impact to year, much notably third $XXX,XXX the approximately additional system the of of perhaps and $XXX,XXX front-end hourly We the expect a additional with due procurement expense our expenses currently of quarter. However, represents quarters

the remainder X% of remaining approximately level at the of increase X.X% to costs labor year-over-year our to XXXX, a through XXXX. continued expect quarters in increasing moderate We

fragmented will These result our improved a in call we business estate remarks with in year-end we new benefits exceed scale, housing shareholder As all our fourth company metrics outstanding $X key growth well advantages for and financial described, and We in a on before markets, strategy XXXX We investments operations be a currently over G&A in and that create pay primarily to our now private larger to quarter of costs in limited a competitive additional and in time and and That noted as successful the our approximately important and G&A to increase growing expect the and the some and from and us our to systems. long-term Larry team industry G&A positions our would quarters in as we are supply expect need-driven to conversion a for call, substantially differentiated formal the results model demographics, initiatives million economy. highly questions. local market remaining expected believe demand, like that cost. in concludes competitive transaction strong open execution long-term result of value clear real XXXX. the people,

Operator

We’ll take Stifel. go ahead. Chad [Operator Instructions] from first our with Vanacore Please question

Chad Vanacore

Hey, good all. evening

Lawrence Cohen

Hi, Chad.

Chad Vanacore

quarter, it in the first thus occupancy Hey, higher bridge me, quarter. to XXXX? the occupancy looks [hold] back do sequential far first took the like pretty heavy a you by in beating to the end so looks like starting how of just Starting

Brett Lee

Brett. this Chad, is

first and President our occupancy, addition Sales Klitsch grow to to adding which continue Development. Business in of to Vice strategy multi-pronged of a John have as We

Sales them marketing a based with cycle, sales of of Marketing Director now so an created cycle of component The the organizational is key within sales evidence training to have John reports the each separate they based and emotional of that an new responsibilities sale. to essentially force our structure structure in field that Director and a Senior that understand focus reports Senior that sales me. now on a making our We to sales

we've of then also about marketing, we We use sales we couple media secret national that get focused of shopping And where cycle. strategy marketing rolled now something greater optimize. a on last very Red to We're we've those of the to we've also months – that and most doing in from with innovative our our properties. good call new leads Moms for our can social are utilization call in as directly that differentiating and of We're the leads gotten some are Zone enhance are training feedback some go centralized driving marketing that that continue side aggregators, center occupancy in a having our properties tactic, out doing center. marketing is to on things have third-party platform which into Place the terms over results our electronic such focused through really A piloted sales struggling

a mining our old that more rapid turnaround those get a have leads. as and do lead and So we our of in to that more rapid we're some handed the fashion, communities off warm also using to call center

early a a take than continue those making so nice may And our from of we've results as that we that cycle, well. those longer can seen touch mined some bit and continuously a decision days XX so old that individuals. more everyone's by So leads some different with on are have point call centers, little get to

So and current looking optimize revenue cycle. sales to we're our

While we're our still grow, dialogues tremendous and that looking market share ways standpoint where healthcare of and some care partnerships some accountable to from coming to having we're play, diversify new some we're as progress into that's an the into start well. of innovative in really making these

Larry I something… think had

Lawrence Cohen

was perspective, attrition and quarter years. higher XX% move also were XX% last We number with throughout of bad a of some in first a our the our We occupancy the at very give – bad in the country we the the as worst first like pretty comment, of weather we've probably quarter I’d least our lot Chad, and and said lost the because higher you of the than higher. had decade in history move-ins a also last three despite number company, remarks, very experienced largest had than of in in my I flu best year, deaths. winter movements the parts very, quarter. to To outs season a the

actual of the So encouraged more in from seeing – hear attrition some and in the front for we XXXX. will move-ins all door data, we on on pace gains importantly coming occupancy and throughout calls seasonality the we better light this peers, improvement extremely growing looking in we're commentary of at our I'm significant the is have with the months, continue down in that better through weather demand

Chad Vanacore

right. All

So attrition at about a move-in you but I quarter. even good that think first had higher

to is about I flat way? Second quarter the grow start right that generally third Am then [indiscernible] and thinking the occupancy expectation is that in quarter?

Carey Hendrickson

is quarter. of that’s in general stabilize in Yes, quarter That's kind right. That's grow the and second … to to the then begin trend third the the Chad

Chad Vanacore

flu in am long I the occupancy continue missing there? for expect shouldn’t what Even to second to sequentially quarter and we season decline

Carey Hendrickson

I then the depend up think because May stabilize much the June it point to in that's in picks quarter really out at begin it's to on some Chad we key and how going in to and the second but expected third. grow

Brett Lee

improvement very year second flu occupancy did aspect Yes XX We was late about important, Last that's Chad, impacted see March, into season another the in flu came in financial February. over this a quarter. base early. it

quarter. quarter, more this is If the in you XXXX we're actually we go flat which second had to growth analogous back expecting

move out this next but occupancy So gains have timing will that we December. come the And outs flu we in is month, the March they some of – as in relates flatten do think for to down started quarter. fact in hope us the second I financially the relevant really the gives did again – accelerate

Carey Hendrickson

X% and the to we that project that CFFO in our the X% levels X% at quarter growth And our to of Chad, to growth revenue as and we to X% in decrease noted did expected that income the first we we in net range operating range continue full-year $X.XX… at in because $X.XX

Lawrence Cohen

So occupancy you [indiscernible] loss projected on better quarter? of than for the

Carey Hendrickson

We were about better the quarter. we projected XX than for

Chad Vanacore

All questions. right. the Thanks taking for

Operator

Bank America. take Instructions] ahead. from Joanna Gajuk We’ll go [Operator next our Please question with of

Joanna Gajuk

Thank taking afternoon. much you so here. the Good question for

better, in occupancy when came maybe so it's, you mostly like so you much So – but just on it’s than when so CFFO the just right, it metric, performance slightly mentioned exceeded sounds mean said expected? better about talk cost, to I the at guess I expectations it confirm, the was Carey QX

Carey Hendrickson

expenses utilities if lower Labor high, higher than that food and Even were right. were expected is more utilities. in offsetting than considerably better. come That our both

Our smaller then of – conservative we costs and they contract just in projected. were the what our in were projection categories also the quarter, we other and we labor better in than than coming we some came expenses expected lower of

Joanna Gajuk

or some so you quarter because at already the what point so launched per you to additional then the on then mentioned kind $XXX,XXX that’s quarter that the so $XXX,XXX And program, could for to currently about you $XXX,XXX at there running initiatives, to half savings of reflects be when so also the pretty of only since far? Great. year, coming – the the see you be savings second $XXX,XXX cost the some savings much those implemented that's talk

Carey Hendrickson

the for this DSSI we'd procurement front-end rest Based categories both projection food of the the nationalization on of from our of as on the as projection, and year regionalization continuing well what contract. these some platform the to work current our adding of of other expect

that and initiatives. in we expense until So of work. – But of current the comfortable level exactly that's our of all from we that feel will a it's those projection it's savings impacted Joanna we we this won't saying know some that get finish kind of that particular

Joanna Gajuk

NOI in for year. the included that's same-store obviously your projection And

Carey Hendrickson

that is yes. included That NOI, Yes. in same-store

Joanna Gajuk

should to what then, the of And there plans to any you're the about acquisition organic sort but of so your guess of come terms you flavor previously I so full-year guidance growth, terms talking the back in mentioned costs in market, you be should valuation, of the do of in would are trends doing at and the what same next Any you think financing time, and terms we sort the expect that also when we expect deal? it? when

Lawrence Cohen

Yes. Hi, Joanna. it’s Larry.

We some very interesting properties, looking of our acquisitions. at are our based what back on created in acquisition at for opportunities. looking filters kind of experience we're We've portfolio with other looking actually

we than XX-year our Financing to will three, of to years acquisitions, the fives. throughout next start see it As probably today four acquisitions expect was that you still two I in the we'll lower of it's ago. the Again, the acquisitions to is close where about look X%, some where with we if it said, we're guide probably not in year, more that in second half year. but would going low

to loans interest is few In looking back mid we've some those down a four refinancing to we're actually what to take fact fives which at the out, lower or now from doing a of borrowed – rates some ago close years years five ago.

made that that acquisitions when much very still – was the that's acquisitions. more So and previously, our operating for decentralized. thing important culture is platform know you as We we we market feel the one think attractive

did food, really So pretty our we with limit. did for procedures them put and much to our former way the in bought owner that We We We run GPO buildings. programs. our policy training. the insurance the continued but was

didn't initiatives economies those look rolled the are are acquisitions, the going which immediately be that we expense we at experience. on to If necessarily past receive full out item in how area, further year our this get across you robust should

Joanna Gajuk

I Good because the what’s just done cash that? I on flows semi landlord, acquisition in of in your front doing plans improvement Great. color. low by that terms any buyback from and another of topic, sort sort guess also related And guess so of risk latest your the of transaction leases

Lawrence Cohen

year. reduce portfolios exposure, working our landlords are successful multi-tier properties with We a our our four from first strategy in the on of quarter We and in to sheet, improve back performance. balance our Ventas buying lease last were improve

restructure, we continuing with to ownership buying landlords as to total restructure to discussion improve some our flows. feel some to other properties very of assets we have We can our lease, which our the are time portfolio. with eliminate a relates ways it's increase cash landlords and may disposing And a reduce back but other our and coverages to percentage where which our our a continue of will few turned, sell ways from have or include our that could good also we're those looking that properties leases to of mortgage exposure at good lease non-core and

Joanna Gajuk

it immediate early we something of months there it's is that call to So XX that? still more could talk or expect within about kind the next,

Lawrence Cohen

the next to I think months, XX will discuss. we more have over

Joanna Gajuk

to much the Thank back queue. for I’ll Okay, color. great. you so go the

Lawrence Cohen

Thank Joanna. you,

Brett Lee

Joanna. of you, Q&A End Thank

Operator

this additional Instructions] like over it or And to questions. [Operator closing no back comments. to time, I’d call further turn Larry the are any At there conference for appears

Lawrence Cohen

contact participation much support, Thank or feel for any free your further and as Carey questions. to very myself you always if you have

seeing forward very upcoming evening. the two, you much. also you next Thank wish number we a and over you good We conferences to of look month a very or at

Operator

for We today’s thank participation again, all may you And concludes once now call. your that you and conference disconnect.

Sonida Senior Living (SNDA) 1 May 182018 Q1 Earnings call transcript