DHC - Earnings call transcript Q1 2018 | Diversified Healthcare Trust

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Operator

Good morning, and welcome to the Senior Housing Properties Trust First Quarter 2018 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Brad Shepherd, Director of Investor Relations. ahead. go Please

Brad Shepherd

to first Welcome Properties call Trust’s Thank XXXX Senior results. the quarter covering you. Housing

of Joining today’s Financial Operating management, Officer; Today’s me publicly and includes followed the and President forward-looking on XXXX call session. the Rick Today’s revision transcription, Thursday, statements call today, within Private call would by release laws. and are any Securities a Securities prior are SNH of and Siedel, written other forward-looking I with conference presentation today’s the of retransmission SEC. conference or statements contains today’s in than statements Exchange recording, Litigation as May prohibited. of Reform XX, to Chief forward-looking call through a like beliefs Officer question-and-answer meaning to other filings Treasurer. and note Act Francis, conference of the These and the present consent expectations are and and by Jennifer Chief that results call of to obligation the XXXX. strictly based SNH SNH’s or made on Commission no securities revise undertakes without

www.snhreit.com. SNH’s cash-based projected this available at FAD cash attributable or numbers, those components from on forward-looking our statements. supplemental non-GAAP results In on normalized materially and website shareholders may to income and common or operating data NOI. to calculate are AFFO, any found to financial package may operating including funds FFO in figures CAD normalized from Actual differ call addition, Reconciliations contain of income and net or operations net non-GAAP these

to that place now the Investors in upon forward-looking undue could are turn over factors cautioned Jennifer. I’d those cause information contained with to differences SEC. to call statements. our reliance any the not like filings Additional is concerning

Jennifer Francis

quarter earnings and Brad, everyone. on morning, us XXXX call. you, SNH’s joining you good Thank for first Thank

FFO at reinvest for quarter take REIT. venture normalized of we per Yesterday, his share lost of up can begin, quarter the share of we for for FFO the we year healthcare Hegarty contributions our March to into The $X.XX quarterly in that in XXXX. the per I the speak miss moment David in through in first FFO thank We joint of per service late him. share premier I proceeds SNH was which many transaction saying than everyone prior per founding first SNH Before a made since XXXX. for less reduced $X.XX His $X.XX a we the by and and reported quarter to a completed investments. in share years third FFO these have $X.XX would the proceeds. of essentially in deployed it’s develop expertise normalized will total last like to two helped

by do price the have average buildings, of life We two volume our an $XXX This total over $XXX approximately to transaction institutional surpassed and outside buying office not from with of and footprint of to we an purchase find approximately ourselves limiting such on to investors two larger Louis. medical estate. taking for living quality acquiring acquired assets able We average quality, continue still competition by avoid healthcare, of front year quarter. first buildings acquisition over active million X.X%. two science all able million. to cap aggregate quarter’s of been senior first properties, been very in last for We've the of assets St. this in By in investment and the San high excellent returns were over side, located rate we by rate and yet and as X% these RMR’s XXXX, advantage national market markets, assets Gateway on on for achieve an real Jose cap acquisition attractive

FFO proceeds. of transactions the to in we the incremental strategy second in only replaced first of means patient a expect selected NOI the little venture acquisitions run of over that efficacy from total We of This quarter have the these which million rate the of a with being loss produce $X joint our of the demonstrates by year a and capital. redeploying our third recycling quarter

million. the On were of million final topic to in four four communities the so for and into sold we January million receive community for we at gain three the our with of the assets to expect of To coming Living expected capital, proceeds on properties in leased that recycling acquisition recognized we have approximately $XXX we Senior sell living X% million with to of These spread reinvestment agreements a to on rate, Sunrise entered $XXX based announced yields. a $XXX $XXX the date, expected sold recent book close the weeks. significant of gains senior cap

Moving the on to operating our results quarter. for

when basis flat total essentially to first points in the of quarter Our same-store were XX portfolio first quarter last than year. down was NOI the compared cash less

MOB Boston. Tenant located our first Our portfolios tenant the two quarter in of building XX% science & the XX.X%. approximately XX suburb The Johnson. the year-over-year was science life is occupancy office XX,XXX points new is the X.X% medical result the thirds of building that two in end was life and of cash lease for Southwest we April, calls, single decrease quarter. subsidiary of basis of retention which we've last for building decreased of executed NOI overall portfolio Johnson in and on portion this of same-store at In square the the the mentioned a foot our earnings vacancy the

last the decreased allowance vacated fee termination and in traditional also of positive planning improvement we building of tenant termination a the Pennsylvania office up the activity the our below same-store This a roll received the in we tenant in remainder as X% a cash The just downtime the to of where are reposition building. of balance of not single decrease is asset. was by building In have majority an released story one NOI medical related portfolio, a and received strong only tenant early first result we a the XXXX. on half quarter a from but that We for fee to recently a space days rent. tenant we market new the of of to year, three the

net the NOI lease in which continues ended the X.XX XX, Our The with times produce senior cash the to living December triple net was quarter prior year. senior the same-store portfolio from slightly quarter. quarter X.X X.X% portfolio had recorded coverage times last compared first XX consistent rent only triple in living months growth XXXX of lease increasing the for to down

senior managed same-store our X.X% accounts which of Our cash portfolio portfolio decreased quarter. living NOI XX% for the in only

portfolios California managed was is course quarter. largest that The is it moving tenders decrease again be negatively managed our two Laguna the renovation, was in new significant not properties. performance year-over-year As was which recent work CCRC, largest indicates case Last expected and quarter, we our this months. activity. of a currently our to there quarters, of first Hills, undergoing impacted by mentioned our that The completed property several multi-million dollar for

once in again CCRC renovation recently completed dollar in market. position Florida compete has Fort large multi-million Our is where a been that Myers, to

cash a opened amount to would year-over-year, where total in from are two as community blocks X% portfolio strategically new our to some we excluded we to results, and last take away. off supply communities about portfolio, just The have at $X are of a number a in Yonkers time as and properties such plus grow are NOI just them two unit including nearby of from both living starting or middle managed portfolio if close mentioned October our XXX we managed decreased cash the due I to same-store see completed of the positioning may begin these it senior that properties we work. However, ILAL our significant renovation been completed billion where MOB our NOI Dallas.

We maximize will can grow investing returns improve and strategically evaluate properties and determine where grow to we by assets occupancy believe shareholder our our value. we revenue, capital will continue to where

companies leadership the SNH its Finally, to healthcare in real team to improve ways XX of upon in new and portfolio I'm year be find build sold and we as pleased to look estate. joining diverse

that living we are facing environment and to of that company I poised come this stronger that of out are well is industries believe While current known before. headwinds, than senior it's and REIT assets with the the portfolio

quality I rated Rick to balance financial times and the our track provide well delivering on tenant As not high call of you portfolio, occupied the to deserves many coming the for to investment our like positive quarter. of geographic to the over many turn sheet a said number our my plan of shareholder and footprint, of in diverse is in colleagues discussion returns. grade mix months more this our the credit for a it SNH to emphasize to getting of I work I’d portfolio. attributes record detailed results to call,

Rick Siedel

Thank outstanding execution. we floating In credit X.XX% the $X covered. issued offering, million unsecured the on of you, just we're with rate under to February, and million we good with facility. ended financial our Jennifer pleased just revolving billion net The used We $XX on first everyone. senior and Jennifer, some like the quickly touch beyond I’d highlights morning, what $XXX or quarter notes revolver. our quarter this to strong the reduce proceeds amounts from

Between to Living debt our was the Sunrise XX.X% capacity was of on and EBITDA $XX last the our quarter X.X debt-to-adjusted gross sale another borrowing proceeds Community. Our million at end. and revolver assets expected from of times Senior

are We have positioned and growth. liquidity ample for well

managed our triple at and and our In within capital as capital redevelopments portfolio, the $X.X $X lease which funding the building annually our improvement, years. our annual one our external growth $X quarter in invested we communities. been per which million tenants. redevelopment of senior In we of rents our $X.X net quarter majority which was of in The as living the was to considered senior was have recent tenant the discussed, of million uncharacteristically low MOBs spent will to $XX on living averaging the due remaining projects addition portion recurring accretive, development our $XX.X portfolio. portfolio. include and we million and was This million for senior capital approximately from costs first increase million managed existing living expenditures, project, expenditures improvements or invest continue for to amount million quarter, two Jennifer for on about spend past spent

on renovations expect could of rest XXXX. million through million redeveloping the few our and managed spend $XX and $XX a the senior of to We year, up expansions another and development community at our ramp MOBs in living

and forward purchased unit XX prerelease. expenditures. independent an for could For located for living example Tennessee of in project full-year redevelopment the expansion continues which manage to This mentioned of move started our senior already Five in expected Star we building, and quarter, living it XX% one we properties last is account half approximately has development

care a planned in Within are and awaiting begin final the two memory have assisted-living Creek construction Walnut office We renovation our also buildings and MOB we XX of Arizona. expansion community to our at reposition California, New approval planned multitenant medical projects and to in portfolio, one we in have D.C. Jersey our later for year unit of Washington,

investments of now externally a help capital first continuing the investment grow estate and XXXX our our quality, reflect trading does for risk occupancy very internally excited these $X.XX SNH value to grow conservative the portfolio. think that not strategy we've yield quarter forward demonstrating per we declared end the look to expect compiling real quarter opportunity. strong and been high X% healthcare Subsequent about revenue, with share We're a when current provides returns. us generate dividend we and both another the and multiple to over of We relative investments and profile the making

to first XXXX, wanted to This XXXX SNH’s the expenses of first two our X.X% beginning capped for end compared to market the U.S. how incentive through income the first lines on negative fee at to have of is incentive by the accrual increased the of business comparison over Healthcare the the accrued administrative or management SNH provide of quarter based from an calculated incentive to being REIT of outperformed index $XX.X included end the statement. our SNL more estimated XXXX fee made in Lastly, color of since performs the first $XX.X General of little million quarter annualized remainder the index fee in quarter. XX% The equates quarter The total incentive index. index from key year million I decreased the depending the on to in of relative fees. and on incentive of fee the of with SNH’s XXXX a is return of return XX% a total capitalization equity at return total which estimated X%. for a

of general of being X.X% a quarter to is Excluding The of throughout the our last expenses and business market to the real our used of management fee price estimated quarter compared first decreased incentive administrative first XXXX fee or result historical management this decrease the cost our of year. quarter paid is to on capitalization. lower based which RMR the business calculate the estate share

$X.X increase the of XXXX fee to million. was an in this of compared flat SNH $X.X had decrease $XXX or average of million a results quarter market million expense weighted from price expense interest XXXX to share X.X%. rate of the of the With in March Interest first borrowings only debt based as mortgage $XX.XX, $X.X of weighted of in interest interest XXXX. savings our of million this line $XXX annual of result which had is cap prepayment credit We a X.X% average quarter. by and This with of offset the expense million quarter of

well from $XXX up interest senior the questions. Operator in As concludes our of prepared in secured mid-February. $X That remarks. X.XX% issued million or open for notes increase an please lines the as million

Operator

now Babin ahead. Instructions] from with comes [Operator will Our question session. question-and-answer We first Baird. Drew go Please the begin

Unidentified Analyst

minor experiencing more tenants? XQ a signature one we Good signature if you in is buildings. acquisitions want are know you On additionally any with give what these your tenants that services color just morning. you morning. if MOB way you you Drew Kovachek] science small healthcare see health And Are if this us know kind those there is guys the difficulties? This to other in tenants are [Alex on listing for single could them tenant of affiliated also got in know your prospects and major thing financial you with I life

Jennifer Francis

Okay.

on was and that So then tenants and buildings have the are a first it's the we mix question our single bought acquisitions tenants - we that MOB have mix.

if So very. want or acquisition through go each it's to you if

Unidentified Analyst

on major probably color really the are tenants be beneficial? Just

Jennifer Francis

see Richmond let’s buildings there. company our where product there got San acquisition. What by the Allen about major is tenanted complete they've of the a tenant is Jose called tenant up a acquired is was quintiles that multitenant nice overall tenant is Glen with so we're is health the us [IQBIA] an single you the Virginia Yes, happy long-term there. building single was know it – in genomics that see plans Virginia that’s premier tenant pretty the

So and again multitenanted that tenants Precor – buildings. a comfortable is with

Rick Siedel

really to care fully to just acquisition. St. about and totally building the suburb And the estate, yes I utilized, again down add senior the in is group real living think it’s in to we're great Kentucky the unrelated of senior group is fairly about you excited totally affluent Louisville, healthcare. Louis. down is this is question the health that We have think signature Right. the unrelated it It question living to

Unidentified Analyst

to for managed margins Is the color. XXXX, can all going the – until to through senior that And building segment, the improvement come Perfect. it expect and that occupancy, supply are that initiatives see volatility of continue your the prevailing appears line? stable we your fairly Thanks condition living the quarter-to-quarter or once some are as basis. guys year-over-year impact maybe we rate especially tapers flatness within new on

Jennifer Francis

are in portfolio actually buildings undergoing out Well major up you is Yes. two remarks about talked we prepared renovation. if take that that

buildings are. so comfortable buildings we those as well, in with once growth we're see we complete – pretty those once think where will I those are renovations occupancy

Rick Siedel

are think construction have hurt but question I results add, supply no up the us, those excluding has Jennifer new and building, would to new competition spend. we like Just our by X%, said, been there's two projects we encouraged of and

Jennifer Francis

great of where We've results projects. we've seen Yes. buildings some those in completed the

The – Yonkers we're XXXX, that’s Dallas XX% projects. of in XX% up so repositioning those is finish that project where results completed a we the seeing QX great was from in have year-over-year. We up project repositioning

Unidentified Analyst

on you of wrap incremental guys see color growth? those any those timing buildings when for on Do the kind two some to you larger you when have of intend and and initiatives those up

Jennifer Francis

Valencia would point up XX% it’s so some that California, by in way say Villa so about Beach, finish about finish and there. through, complete, up. So it’s project it we’ll Florida, this year I'd talked at we've end year, maybe Deerfield the – about again,

Rick Siedel

which think is market take seen we a the also fantastic. encouraged, time, but Again, projects in that competition. little has One Myers Fort a is will are we facility of bit of lot looks that a new of the

Unidentified Analyst

Thanks last supplemental is on specific the the In me. a for – looks taken for entity or rent? broader be like question one senior the it property, an is to help impairment there. One paying default likely living

Rick Siedel

have No, and security we our this in then in success. TRS. a we building operated a a guarantee have from and it’s we’ll long-term of We're been the take transition. back down deposit just do the it's It’s high before, road company, getting likely We so matter a one-year – kind of in think potential, property we’ve parent through got have their the we confident about LA. $XXX,XXX

Unidentified Analyst

Great. Thanks my guys. taking questions for

Rick Siedel

Thanks.

Operator

from Riley B. FBR. ahead. Maher question with Bryan Please go next Our comes

Bryan Maher

and morning Jennifer. welcome Good

Jennifer Francis

Thank you.

Bryan Maher

your Is you somewhere it it seeing MOB? make acquisitions quick A to competitive to couple really going are want think the acquisitions? landscape expect questions. in of do And those Is the We in you forward, else? to about where what concentrate?

Jennifer Francis

that hoping very Well you we’ll press office my we're opportunistic their, my people think so in concentrate science though. lot we're hoping MOB the background, release, read background on will more life the constant is around, of I think as I a side,

market life and sees science everything space. the senior both the at living on team MOB looking that everything our acquisitions really and we're hit really So

strike a we're is So going the hot, I have the guess life MOB side. science Again, strong I preference to where is iron the to expression.

Bryan Maher

you with your and to narrow SNH valuation Okay. agree about deserves. what with why credit, totally you're discount? Can And that said to you you company the of it that try specifically what is we experience in not tell going take us getting kind think steps

Jennifer Francis

stock Yes. think not be. it where I anywhere is near our clear, should mean prices it's I

while senior SNH we're – got And good sure has of asset focus to million properties. close team portfolio to We're estate going really on business to MOB feet – that them portfolio living living background a where and senior on got and life around some plans. robust make so poised. been science, properties I've the XX touring senior square and X the an million asset focus We've country going now, strategic strong we've team asset management got great really that level MOB of so have My bit MOB we've to We science. life management really living already side make that the side. is on more real is

strong We operators, have right. very

they're but sure make going going an So businesses asset we're at portfolios, the but poised and in – living we’re come to we're in level look and to this out of senior buildings, managing strong. those to

Bryan Maher

investors or the or just with external bias another, I or a little question this we a SNH disagree thinking side guess management or HPT, story, structure. the certain have it's whether it for which reason on outreach more the just was seems investor one of they SIR, with GOV, on like I bit

really them with that And what have shouldn't discount? and and be do expect a you to overcome you highlight why how there so

Rick Siedel

with are external owners the go of and shareholders out both an have fee in agree base in substantial of incentive. I the for RMR are conversation earn investors. the kind interests to that order shareholders in structure formula through the and We there RMR road about getting just historical more investors are when business Generally, meeting and think to the the management SNH. shutdown, and aligned then management the structure we Really and of we typically are on think some you. I definitely interested Brian, with hear

index fees everyone So did approve outperformed significant. quarter if look because XX%, here I we've on this the it's we is by you an and mean same incentive that, side healthcare the at

think a formula very we So and organized. with and secure dividend we've things the are good we're the got comfortable way

poke, story of and that lot out it. So through holes of it, to we want it sure certainly when that think tell piece there people so Usually hear a a make they and they that's aren’t it. and get understand can

Bryan Maher

All thanks, Rick. right,

Operator

question next ahead. Please with comes go from Jefferies. Our Omotayo Okusanya

Omotayo Okusanya

Yes, good morning.

rent may kind deferrals have the we coverage For of guess senior concessions concern same-store of still when take to one, be so safety about nature? – NOI of Is I supply have thinking or there going forward? how concerns about that lot is is negative I about a guess look portfolio, no above slightly there coverage growth. issues deal sector I be may current housing where could a at you tenants rent a worried should of anything coverage that the any or the where with go, rent the you

Jennifer Francis

there Tayo, think morning as fairly has We a our the on drag mean is call. tick the headwinds. a X.XX. is saw down living early some Brookdale But we our senior result for Brookdale bit. operator. coverage a industry of great I I little been strong coverage in at apologize general, coverage

coverage on on bit everyone operators that out their hear us. properties the getting remained still balance some worth we've or better of own still can $XXX two times primarily increase. there. still the Star is times believe funding over are the the provided cover. really to decrease living that They’ve up own million Five and a expansion got noise one We’re little at They the sheet. there to in strong XX of probably an to senior X.XX they related Hopefully, balance line. are covered We incredibly We're sheet rented so.

Omotayo Okusanya

operating COO, pay think helpful. your time? management appreciate asset your the like Do the that to up. kind or thought one secret towards President that’s closer over that to regards do get I you're of other there looking kind still Jennifer, the and group. comments at of assessment towards work that's get your of then your there's area of that company to and to as closer metric in that are peer areas your And start sauce Is a to again kind Okay, you to metrics leasing you initial be your

Jennifer Francis

for spend really Management that beefed here to Asset that over where Group still. going I can on It’s early little focus. me vision I up to asset compete. It's looking week. think a understand my a But we be initial do to

I to real just on and still time think need maybe the living senior real have some into company I spend see the quarter. estate right. digging I'll next focusing where portfolio really that I more color me estate is on starting, really

Omotayo Okusanya

Great, thank you.

Operator

comes question with next Our from ahead. Capital Carroll go Please Michael RBC Markets.

Michael Carroll

Tayo’s from Yes, moving little That take of want implemented higher? still that kind what’s electronic those prospect and Is a Star I know coverage an that fully portfolio. little question renovations at kind tight, a on introduce of of been XXX. just medical thanks. completing? Is I guess with to the while outlook they've uptick assets? half is Five there has there the of what’s they're now records been out for that the that there? I rolling

Jennifer Francis

the pretty are in they far So medical along electronics records.

all got facilities skilled the are that move and assisted up to they’ve nursing living and starting running skilled they’re – up well. nursing as their communities into think I the standalone facilities

bit. help quite that’s that going them a think to I So

Rick Siedel

a dip else. supply flu everything would the I is that, expect little was with and week. bit report add Star new Right, Five more. planning and QX the next will think tough to probably We I just coverage do

working but And get capital confident. probably little get the the near overall bit a future. will to industry long-term it will that before bear demographics been the think are I still confident in we on fruit of they've we're So again project that better, worse starts start

bit a in primarily it one things, quarter better them as again And living the master fall, still other but credits stuff. five far flu because as next view account so senior some of operator again pricing across the and we the little the with leases

Michael Carroll

negative portfolio and that know I I that sell possibly within are could anywhere? has still you kind assets has Five that approval of at a those you sales? there that EBITDAR obviously. guys Yes, potential questions that there Star’s looking have was with assets those few Are highlighted gone mean you historically

Jennifer Francis

as strategic the assets will which plan out about that wholesale – a that are taking of things part one good that just all We I plan, look comes be so that structures, really coming part level plans TRS earlier up and the of all of the asset talked business plan assets, and recommendation. not of a that a at of with but is of the those

will looking be we So that. at pretty hard

Michael Carroll

pursuing. question, Okay. I are pursuing. And providing little could and on then more last projects within the supplement on more mean on expected you give the us currently details renovations you're color you bit the start that just what a yields can these you're then the

Jennifer Francis

asset in D.C. mid-teens So the couple the repositioning side, an on TRS for Washington, got are planned year, renovations, We're expecting easily. side, we’ve then complete got risk we've – MOB the of And double-digit Valencia. we've the got a returns of renovations Villa that

Jersey, think or planning to that to we’re We've to New to Beach, up Florida Jersey the where Deerfield kick complete off talked so we’ve about. also got a million in Teaneck, New about $X got that's project in in repositioning. We've off, in one project project a XXXX. I were building that's million going $XX be Arizona, kicking

expansion we're hoping in an have that is complete in California Creek We that XXXX. be Walnut to also

were properties repositioning of our markets. of assets or lot competitors that a got either stay the we've ahead competitive So in those stay

Michael Carroll

projects? page And your supplement then next a these a add within on you quarter or could the page supplemental Okay.

Rick Siedel

things again just lot get fairly – total. It's only of hesitant the am we to that I can covered it's a dozen supplemental to in prepared expensive. information add remarks already little But project so a since because or make out there. in sure we it's

not it’s offline or can cover We So it something. that.

Michael Carroll

Okay. Thanks.

Operator

from Lynch. America next of Bank Please Juan question Sanabria Our comes go ahead. with Merrill

Kevin Speight

on for Kevin is Juan. Speight Hi, this

Rick Siedel

morning. Good

Jennifer Francis

Hi.

Kevin Speight

you morning. those earlier, Getting the Good guys mentioned two back you do where CCRCs, you mentioned for supply, times? to up anticipating lease

Jennifer Francis

that the remarks? in about CCRCs For the talked prepared we

Kevin Speight

Yes.

Jennifer Francis

executive there is and literally great director head-to-head down I issue a they quite competing well a that property, having that Harbour doing Calusa we're two blocks did think. and I great opened We're building, just we’ve we're away a job, that a there we’ve them. toured recently competitor up is Yes, The with mean so there. got

duty And can property. stabilize. the so a on I don't construction But know pretty it's again, that property we'll Villa great and under we it's other give timeline I is when mentioned, heavy it's Valencia still a construction.

think asset. that we to start is stabilize be that I have that done expect going most So of to to before to

Kevin Speight

the remaining I Thanks. in then of one guess released for a of well? timeline building Pennsylvania, regarding Okay. and just And is getting also third [indiscernible] office those there as medical the

Jennifer Francis

Yes.

So Boston, activity. we've leasing suburbs in the the had building great of

I think day. vacant think don't on going a – up, the we to think lease was lease it we remain much that for commenced feet the longer. square signed did And and next I I the that lease XX,XXX that's

where some at And major, and not window a so facade Pennsylvania the we're repositioning work doing works putting lobby. is in

had will good pretty in XXX% great I there, got so would activity, you good on occupied, it's asset, think we've be got actually that activity so short but know time. – can also get it, we've in to it's play brokers say leased it I up would expect we've a hard revenue – I good

Kevin Speight

opinion? willingness just to and some kind last then I life the of suburbs, Cambridge they their noted and are seeing so of aren't noticed guess willing outside from out move of science are to And peers want you more tenants, your get question. move sort the of Thanks. Boston I Okay. kind your Where to have your downtown suburbs, away

Jennifer Francis

are the be we've mean are that it hot got is tenant that that are think seems sciences occupied. hear suburbs we've Waltham pretty And any life of well that that I might tenants in we in property doing I time a companies interested out markets, a something, Lexington have plenty of moved got list of there space. a taking Lexington, like who

to Cambridge hot, rents there suburbs. are move the they tenants can't is Seaport life the in definitely and science there who of hot out yes, are plenty District, have to So that but markets, stomach pay Boston the they

Kevin Speight

you. Okay. Thank

Operator

question Our Instructions] comes Stanley. Malhotra go with [Operator next Please Vikram ahead. from Morgan

Vikram Malhotra

over give budgets these of MOB give incremental the Senior sort both it next, us investments call of and can give you the Housing. a the or hoping years? or next you operations investments over some improvements you're was spend And returns what's and sense that can two the maybe some this more you I in us seeing years spent timeline/maybe so, about money? you a two as the us capital Thanks. Can in the all underlying expected anecdotes

Rick Siedel

would I say don't give that company general guess a as just guidance. rule, we as a I

portfolio spend a million could than to remarks, of the I $XX just the be. bit MOBs. because said in our how CapEx spend another we of senior of so provided redevelopment expected $XX think up significant living the we remarks, in managed prepared some and probably prepared we million is In the usual little more repositioning to or some

as as probably think as So information. I give that's we financial much would far as

a we different it’s capital. As say view true. to Jennifer far think certainly and in again, building as The is that very need might multi-tenanted always business take assets Dave each a Each use on or additional Washington. the living senior the color, community unique, a mentioned renovation different local – community that's of repositioning

going making far. we’re the we're wisely. decision the closely it we've sure seen But that we’ve work on so and to by encouraged with right the overall, we're returns So spending project make to taken team management a

Vikram Malhotra

going sort more just for get a your be so behalf next perspective, the Jennifer, Okay, so be would sense numbers from some of rough the being you maybe we ongoing that just portfolio a of year appreciated. what's hoping to get spend going like the maybe to two over mentioned just But under outliers. the investments around this some or of is

managing As today happy business folks, of the parts sense with your understood and are what investors, investor properties, on maybe you portfolio by mix talked the the what's that groups, different you've community? not to are well

Jennifer Francis

medical much office against Well, senior occupancy in time, the so portfolio spent talking I don't the the I've about nursing occupied our we we past months across XX.X of living square talking market beating, over million six portfolio, the that’s skilled XX% and the about feet portfolio, think XX% noticed country. time. spend

incredibly that that think MOB also the that the for in not the the only making stock think assets I the portfolio. of our senior people I portfolio, and So living then getting but value recognition in under we – portfolio And understand have just valued. sure

So, out. it's getting yes,

to to that As Rick said, prove we message try getting that out that folks. and and making sure deliver

Vikram Malhotra

there? terms sort just there's you so you attractive disconnect, give think that buybacks terms view leverage looking the update us of cetera. really And the how et in an pricing, can you at in Can allocation, big assets of of some capital do fact get a of utilizing where you

Jennifer Francis

as level those that I back again and asset can't where mean capital asset I business think is level. future allocation, into be dug spent say properties we to as Well, far that the to plan. really I exactly a the at strategic look taken until going capital in

time So that. time do – there's to to

Rick Siedel

I assets already million we over press proceeds last have that much had seller, We add, have year $XX were capital just put another we again sold been historically of about release accumulated have a substantial of to years. $XXX and a mean go. of but because in our would we’ve not since a I recycling Okay, we lot million

on the that’s handful asset. just our So of

We we going to value to try do encouraged. we undervalued. shareholder to are So We're value. is and demonstrate and can portfolio continue drive the think what

Vikram Malhotra

thank End Q&A Okay, of you.

Operator

turn Francis, question-and-answer the like This closing conference Jennifer any back I’d session. for our to concludes remarks. over

Jennifer Francis

a Thank joining to conferences. us quarter upcoming look first you at earnings day. great I Okay, thank you. of call. many our you for our Have forward on meeting

Operator

you today's Thank for now concluded. attending is conference The presentation.

disconnect. may You now

Diversified Healthcare Trust (DHC) 10 May 182018 Q1 Earnings call transcript