HTA - Earnings call transcript Q4 2017 | Healthcare Realty Trust Incorporated

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Operator

Good morning, and welcome to the Healthcare Trust of America Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Caroline Chiodo, Senior Vice President of Finance. Please go ahead.

Caroline Chiodo

to of welcome quarter XXXX and call. earnings you Healthcare America's Trust fourth Thank our and earnings the filed we Yesterday, release close. financial after supplement section These the with found be SEC. of Relations the documents or our on website can Investor in and Please for for the being replay days. available note, XX is this call webcast next

your happy conclusion at of our will be questions We prepared to take the remarks.

information us. on we These forward-looking During statements. current of the forward-looking beliefs course to will of make currently management and the are based available call, statements

Our be factors unknown are ability will actual trends, beyond risks, predict. or and results known by affected control uncertainties that and to our

we performance. reasonable, Therefore, are they materially our future future actual of could results guarantees current Although our our believe differ are assumptions from not expectations.

risks, which section SEC of Peters, to to potential of For will Chairman please website. refer can America. over CEO Scott? found Relations Investor a turn filings, detailed of the our now Scott and in I our on call be Trust description the Healthcare some

Scott Peters

Thank Trust of and you. Healthcare earnings call. conference today year-end thank joining us And you America's for for good morning

the call owner are Joining Management. the President starts Asset Financial which five in buildings the our of for the estate Executive to today believe office one medical Amanda of on Robert Vice will of Chief Milligan, HTA XX United as XXXX Officer; and me operator and we leading our next Houghton, to real and classes asset be States, years. continue is the attractive most

health and portfolio is a where country, grow. off-campus have feet in on-campus, invested a the best-in-class we locations core to of critical positioned square million on-campus largest assets company, portfolio where in As we over care have XX the both in

and XX growth of markets now to more. XX in XX feet with or million markets concentrated markets and more square XXX,XXX or key square are feet We approximately X have XX

development to management, can services and services, leasing, concentration this HTA provides and property service construction, scale, tenants. building platform management full that leverage continue to our our Given asset

In also a and have stable strong cash we flow. addition,

markets make diversified tenant, We are up by of XX% than where market, ABR, more by tenant than less our up single makes no top XX our X.X%. where and

We year explorations lease average XX% XXXX. also through near-term with of less per than have limited an

health public. and first year broader medical the became XXXX, quarter we transformational since and more acquisitions. providing care and basis physician demand Healthcare, DaVita's capture systems services. to a coming goal but strategic of real the not was health a increased care with debt-to-EBITDA From consistent and first sector. included and maintain X.X have next FFO and bottom-line will equity $XX significant almost to low $X.X liquidity with XX% that to can with of cash at six of over leverage forward finally, including of October continue at by to months. growth, balance proceeds where down same-store on three times our fortress $XXX And sheet raised basis in record and significant just of mergers health United were We billion announced, and several the cost-effective share for a drawn year health end, net grow million growth investment year, million the transactions a a per track care each normalized CVS, activities for for announcing us be allowed outpatient of a estate perspective, These the HTA, a XXXX also Etna, on multiple outpatient network

by X% decade, the landscape $XXX deals institutionally XX are public year had delivery medical institutional sector remain for office XX continues have for this, million health very yields in over with office size. next owned than a private The years. the demonstrating with investors, these strong about interest and its by of less to in REITs. fragmented total than XX% greater the XX% been the changing completed both These Despite public owned care sector. All REITs biggest the to medical sector and

the remained a growth of next big health to is and the REIT it was actions trends XX very while evolve of these year, over this significant, years. opportunities best a industry year. especially So, HTA change positioned the for result our continues take and care performances as to advantage as the

yield demonstrated at these X X.X markets. year of increased yield ability of portfolio Some markets. square from of end. of acquisitions high-quality X,XXX our Approximately We result to billion, on on over end XXXX range. are a or high assets quality were our located grow synergies a these of X our completed as yield developments key XX% And X.X now which existing on our HTA's and operating the increased in located to adjacent of office the annualized key to buildings were our achievements in include scale investments, million that million of to at campuses overall acquiring and medical of $X.X buildings in investments feet key increasing hospital X occupancy, and the going million XX%

we including continued an In assets, where which $X reducing additional advantage million MOBs, MOBs through to in our addition, $XX construction for while equates and Milwaukee, performing for and have markets to X.X% million of opportunities $X an teams NOI. including operational our year, the Dispositions Texas, see of XX million XX these to of limited by strong in growth. fourth hit yield our points services additional leasing we the Long where of savings Same-store saved growth the noncore taking fewer of advantage basis to demand non-core have if X.X% Beach platform, for quarter. our exposure Waxahachie, and

X% growth, almost and for note, Park growth to for our we as campus within property, where services excluded HTA's fourth of X.X% on key multiple our would a our for Dallas the had We markets increased would building levels each have have redevelopment the Forest in scale. including same-store we uses have I year. continued focus been of if quarter

new rent and of where of and in the X% well increased half We leases our back in the over XXXX LOI have increased potential which the spreads XX% have velocity also under XX% year. to part revenue back increased retention economics for back increased have bodes quarter our XXXX, in the leasing in significantly, four --

We the billion revenue, of all key cost and while our strengthening $X.X activities low interest G&A sheet, which is efficiency and maintained and cash X% also significant these completed with than our and total performance. raising a debt, leverage liquidity. year balance less we lowering capital $X long-term billion extending over equity to of of ending at flow while And maturities improving and

care flows and distinct clean the sheet. and health in stable We a diverse REIT and most sector of have set balance cash the

platform, capital. from look believe As and Healthcare increased of themselves relative markets, America, a be cost would in disciplined key for we our external XXXX scale benefit Trust present ahead, our of leverage we in growth, opportunities to will execution year we remain asset management where as of

We expect X% same-store our trend in to continue to growth the to X% range.

One of the in for expect in have biggest Forest opportunities HTA vacancy opening where square the hospital assets quarters. our to of is feet the and Park Dallas, XXX,XXX announce coming in we its intentions

above itself LOI, assets us of cash over for XX,XXX rents today, to pay than these including of strong our position revenue we XX% portfolio base the leases under as rent. new at Leasing feet average. they have will of growth from hospital more up square start As

our care equity has is XXXX our the development sense, in through of Finally, still cost seen our private as and sidelines we disciplined capital MOB market REITs adjusts treasury health and of until sector. time, intention XX-year we opportunities makes this accordingly. where pricing one-off private take remain same flow, At mostly has up. and the adjust ebb significantly advantage in It until will itself or smaller as market increase acquisitions remained on in be of sit have those we capital MOB interest continues or moved pricing to should. markets strong may the the its accretive the key Certain to

addition, will pricing this our and to utilize while In to remains market pay rate of likely liquidity environment. continue debt dispose down rising outstanding strong in we assets private

earnings, for continue shareholder think Regardless, decisions look effect Amanda they Houghton. current and growth to these capital us the grow quarterly dry long-term on continue an our future the steps that are value. our right year-over-year environment a we as create will have to cash NOI allocation call to should into powder to in and While allow on XXXX. we I portfolio over perform the and platform will basis flow and turn will now

Amanda Houghton

square expertise Thank can and full-service consistent that profitable you, to allowed million us key growth to market properties new integrating drive in during scale perform continued platform in and over significant focus on platform us management efficiencies, markets shareholders. XXXX Scott. XX seamlessly With utilize creating for full-service of focused and under Since levers through a and capabilities a XXXX, we asset the multiple position tenant while XXXX. our This cost has management, local HTA's year. to number retention, feet operating and for performance a have platform in scale

QX growth despite one-time in reduction basis Forest of the year. with to to up year-over-year Our quarter NOI primarily was and in items full a have quarters in have of the our Forest year. closer X%. Hospital the below for for decrease slightly Park XX X.X% excluding revenue Same-store to was X.X% NOI been X% Again, and the XXXX. base combined prior excluding period, in due leases. the revenue the quarter full Park, This fourth growth X.X% to fourth for same-store revenue continued in closer would X% been the several in occupancy would was point Park for Base quarter, due Forest occupancy, roll-off

These property services a performing in as to XXXX by at than primarily million building we mostly continued a expenses tax points, than those this by additional third-parties. primarily year by basis continued platform bottom-line our in-house our management see new in basis. fourth on markets our were scale the quarter rates property property more full We management and profitable also were $X.X true-ups lower year-over-year in-house XXXX. work and which in down of Our XXX utilize charged certain margins additional as lower of through generate from results, opportunity found utilization through savings expanding team

have new We pool, now of basis on and at and gained XXXX. a XXX,XXX our in higher nearly of of feet LOI a second rental are of this In XXX,XXX X% strong, half up releasing renewals. new Turning ending fourth on particular, in XXX,XXX X.X% vacancy. feet and XX.X% leasing of in square at points the the use and intended activity in back space we parts we we where includes in Forest our their the at the than up portfolio. sequential Forest X.X% square leased From square renewal on with and half just spreads pending very picked of or activity strong to quarter a the vacancy the market while excited latter This have growth campus. announcement basis up feet for XXXX for has perspective to remained Park square result Park, signed less both under rate leased vacancy XXX,XXX XX and ticks should for same-store now renewals. of leasing, Retention HTA's of our XX% have feet in leases seen X.X% metric for quarter, quarter our of

trend second been above of range into spreads where the is seen flat key our would releasing have expect increase we renewal a have the This X% quarter outside renewal our to to one of X.X%. XXXX. and closer historical releasing to markets, large continue Excluding tenant our spreads we our consecutive

and Our than month blended of term one year both low year and of basis of leases. with on free rent of also term, renewal remained a per per new TI concessions less of very $X.XX

and the into teams heavily rates consideration to only consideration rent take evaluating overall as concessions terms, rental free and many releasing but to metrics deal the also aspects buildings leasing Our to consider. giving spreads, different when not valuing impact

of believe the of reflects As peers, that rates enter this our relationships HTA establishing amongst markets. REIT we it that care is and helped and we our philosophy positioning tenant base. to performance most in management market-based mentioned, consistent health highest previously And into maintaining generate our lasting superior many our it's with has institutional our have while desire some that and

investments with two-thirds pleased assets the team approximately Turning operations. disruption tenants year, and integrated or management property the has minimal our our services to XX% building we with platform, of these By end XXXX multi-tenanted I'm maintenance services to XXXX our of the investments, to providing properties. that way acquired of are building onto our our to

feet to rate quarter, total million On annualized projected $X squarely and million that $X team us on million investment synergies which Importantly, only top another savings our commissions leasing equal XX,XXX properties aren't our acquired we in of approximately leases executed within generated third-party pool, months our within over to square NOI, in of space, additional would the brokerage acquired XXXX these readily we of six metrics. million of leasing apparent cash our resulted yield NOI paying that in have of $X.X and a $X the X% ownership. into originally

platform operate our better XXXX, turn increased the the Robert the even I'll is expertise for discuss to we markets. operating our key financials we but opportunity As that, to as utilize to our to scale turn over now as and in With the call well, period.

Robert Milligan

have $XXX public of we at the with strong X.X in happy we net equities started I'm a decline. seen billion with liquidity, million leverage $X.X including to times prices report that REITs and Important, increase XXXX cash. sheet, Amanda. Thanks as debt-to-EBITDA very XX-year balance of

Our unless issued of in including maintain leverage. and $XX.XX the took down the our cost our small at take raised million dividend. issuance with which at a on months we will million basis, equity of of a quarter, low to is gross we forward a position $XX.XX. fourth extended. was immediately million subject We is October, and same primarily the three to the over $XX were took equity ATM interest we philosophy payment for actions which forward issued next price This $XXX carry in the dispositions, and the $XXX remaining six of consistent In result to

of the fourth the to in in located our noncore into reinvest key We million MOBs markets. quarter. We MOBs $XX intended also originally disclosed proceeds

below of market capital. current rate have However, the into well private our X% valuations stepped high the buyers aggressively reinforcing high-quality cost cap for MOBs,

primarily marketing remain Given notes in from at as interest in attractive. $XX seller additional to in and X% that to expect including the any rate. million repay fund XXXX, And Duke continued well conditions, coming dispositions markets acquisitions as targeted one-off debt, changes we funds bears use June now of key in these development which due our yields proceeds

dilutive Although sheet this markets as should strong from the position balance is correct. put an a perspective, earnings this our in

for period, $X.XX, fourth per quarter normalized Turning XXXX. diluted up share was fourth FFO X.X% to the of earnings quarter the the from

funds on prior remains measurement, but we XX% normalized distribution report payout a Our a per-share for the to range. basis as We XX% $XX.X million ratio this compared low in longer believe available dividend this year. increased liquidity is to the no our

Amanda impacts cash XX% the As X.X%. our at renewal was on noted, metrics our growth and And leases retention spreads with NOI and up, same-store leasing to despite X.X%, year-over-year from Forest at releasing tick Park. new continue

to we're amounts which importantly, without that rates offset dollars, NOI could increasing any be tenant significant generated. in As spending tend improvement additional

asset was to average over We performance quarter million, REITs. $X.X gross XX% the and efficient stability direct than the roll remains our the and of with peers, X% infrastructure expect We're was especially larger continued this and operational care of in line limited an our significantly diversified of than overall, as lower basis points with overhead XX for health which in of rollover focus values, given our Europe release revenue with G&A approximately than less less for XXXX. business.

and the fourth had million This is During XX% approximately level of external we and and half capital NOI to for of in an leasing NOI second we a of building XXXX. recurring capital, approximately quarter, tenant entire including expenditures, expect internal the commission. see improvements of XXXX, $XX XX%

reach XXXX the period Finally, X.X%, acquisitions ended range. pace yielding to the our on mid-X%

come developments continues on cost we've final the and our new potential leasing synergies. the online, full As reached

be revenue the XXXX performance on assets we existing half a to by on with the X% XXXX, our platform in with growth to X% accelerating expect same-store basis year. cash continued growth before acquired rental between at Looking of back

during revenues Our between reduced. growth will should to increases $X.X million our be quarter compensation same-store GAAP the slightly to as expenses per $X straight-line year. as lower run stock-based G&A million changes

will of year liquidity disposition it defensive the the EBITDA expect remarks. agencies now primarily should we REIT down us to pay and we us mentioned, position down health care excess X.X Scott utilize sector. around will rating now position the to to Scott back to and get times in advance end This As our as stable, turn final the our by for debt. most discussions to debt proceeds the any I as

Scott Peters

Thank you, we'll Amanda. open for Robert. Thank you, questions. And it now

Operator

now comes will Advisors. begin Please session. The Michael We the Instructions] Street ahead. [Operator question-and-answer Knott with question Green first go from

Michael Knott

touched of thoughts your that little a color out think this just bit Scott, you some morning. on delivery on I health good give and more could your in might Just how there or for threats the other changes little guys, Berkshire system Consortium the medical light was portfolio you on there you you see bit prepared term industry a toward it's your But are are any remarks. of any longer about estate, hoping positioning care Hey potential guys And long whether would Amazon color in you things? some and some the the of real events run the helpful. be thinking those office about? I of talked more

Scott Peters

I years. on, are over Well, to think accelerate there changes next think I going the five, they're XX and going

continue. I think mergers are to the going

truly impact may core of merger potential think to are community you understand a buy, integration of have office or more and to the be location the in care have location I a hospital disciplined far of buyers where on health what health going of buyers they picked. they medical the buy, care that on

markets because that are that overbuilt think perspective. So, high from probably are secondary a the States continues. of markets secondary there United proponent I bed We're not in a

to are they that be continuing are to fine. to their systems and communities growing and care attract continuing locations, going think on-campus I improve health patients

long-term. health of improve the actually to CVS, extremely you They they whole lead can might still, continue long-term here tremendously we time go the increased care. get if in the usage for these that urgent I probably folks health example, to the trying even get that's care, into long We're good going the you from recent perspective. changes us you. -- takes utilization, someone busy. think think It that where refer usage it's And underutilized productive is to on for to outpatient think, key to don't is still get emergency, And can. to a lot into outpatient of medicate specialists. care, A I more I a your for typically or who and to

there's But think good. more of I trends care where mergers, that So, are you a the health very the couple going important on for that I again, to make system, think buy. discipline are it

Michael Knott

Okay. and And plans? can cost like comments it balance you going times what It all final far clear But be on EBITDA capital target disposition buying for sheet? is your end Maybe then Thanks. your to your I for appreciate And how the target like sounds that current, is updated, to sounds pretty X.X less. touch the debt you're you're doing. probably of that then on about thinking you're the be a XXXX. to going of

Scott Peters

Well, let's work backwards.

now is have the necessarily quite raising think, showing think it REITs, not time the for stay could rates seen acquisition while. environment markets really that This change. I first time I a for equity some challenging, that and private right interest think and is challenging I

the Probably companies be time let when being it's process public an and a markets disciplined we'll we advantages to REIT, that a We've do that, in think a think frankly, XX asset relationships; points patient recycle out. way extremely have place. XX not. XXX,XXX we'll as and they'll when opportunities some the basis that to tough be from square some got the one-offs that time, this core over markets have and a is definition And because got able and over us, we feet. think to get for those think is think long-term and be this still its of I of I are I of to have XX recycle have. it's I XX We're we to and these the platform period bring I accretive, find some in can of with That's public in that. secondary advantages mass aren't is acquire So, REIT, patient, play assets. We And million we've use advantage they go of be accretive markets we're critical our million. to articulate in markets one-offs times and advantage management one ahead going some

So, we acquisition in specific we'll our very perspective. and a try utilize opportunistic be from equity disposition extremely perspective to from how an be

Michael Knott

times, the of the just real as Okay. was XXXX? target And was that long-term quick, Robert as X.X well sort year-end

Robert Milligan

historically pretty we've run think levered. lowly I at the company Yes,

the I X.X has X to think, been historically range.

I powder asset moving at prudent like so it's capital correct lower, think, I the really dry or we have a moving. whether continue in market kind prices work that market us now, to of environments that's of themselves, as think for cost to our

Scott Peters

which assets, I think back the those assets the us year at last months. existing the see, in ourselves transaction just is cash look in are quality over to the our now, play XX do see the for XX, focused well right acquisitions. couple continue about NOI what beginning platform the think, on focus markets, add generating Duke the high revenue internally on opportunity and where to and we on your internally that from out positioned us, I synergies we It's our portfolio. extremely question to next XX, for We focused

Michael Knott

I'll campus Can at mall then the building talk your me is here on to there in Simon's competitive one dynamics Welltower hop back now the that to Last and about adjacent hospital? just be for Viejo you the going queue. Mission

Scott Peters

Yes, we think that's great.

the best real real top country. in the or perhaps of things locations brings focus the quality estate it quality of one additional One the is estate to

location in anything that Seattle, think I in equals Boston. anything

right about front interest hospital. the of there, XX-feet simple the fee from have We

rents health be to us will able that with the care be opportunity of Our asset some system and for is moved. to reposition fortuitous very

that work and we the utilizing think Duke recognize health of we we in-house. redevelopment. value it, ahead location to the with the And So, some the the true we the is that moving that the, quality expertise opportunity, of with and when bought system. through care have going what long-term we recognized Amanda's

And look to next the two years. as creation that at a value for four shareholders so we tremendous over

Michael Knott

Thanks.

Operator

Rich The Securities. next question Anderson comes with go from Please Mizuho ahead.

Richard Anderson

Thanks. Good morning.

sidelines. standpoint? sense. of could makes the mentioned But disposition more Scott, from think obvious So, much on on you sitting side, mean a volume pricing the kind an sort do and It of of you see I you how portfolio opportunity is in you guys disposition do to away your to strong you get What like do kind obviously stuff have do as from as remain that? long you

Scott Peters

assets it a able the long-term, private From would think is equation. and assets we $XXX and the don't million to people hold core owned in million. I the the $XXX course, of the marketplace. And have into think year? to were articulated call be accretive We'd underwritten now side of reasonable we surprising do that's to perhaps or one recycle. of Would in currently. we that Well, interest that continue demand things marketplace proceeds we portfolio in people of there form. the there's to do is huge is $XX basis. And out the extent of have from like what that that XX/XX to that I put million there's still in part we assets to this that's some $XXX calls get a back big Duke million a for want a I who XX/XX an me markets exchanges perspective right some the

$XXX probably million that debt. envelope recycle. $XXX I just next than much gets Or of to as Robert would then to think probably into pay more said, But XX more continue a put we finding the would we over to challenging little that to those down somewhere it's say million like proceeds. months

Richard Anderson

right? -- everything, there's price I a suppose, about So-- for What

Scott Peters

a There really for everything. is price

Richard Anderson

kind stuck kind So, special with, go be someone now? a that number even at the on gave necessarily you're part refuse, pay route? would there, go couldn't Is if you table? just anxious even are of that willing Or for assets to you offer an dividend, you not to ways that of you

Scott Peters

said HTA think, call. sale. is that I the with wanted we've price, for the this will be respect conference our to No, everything Rich, always someone If last appropriate

in directors is very something management. were or of opportunities from rate if something is in represents said, do consistent if -- this are that that. and someone is a front the shareholders asset the we us There that all this or down So, value, philosophy opportunity location that to our this way to there and a something would for that cap maximize view, one-time really for puts

flow in, I buy market of you the you're of shareholders. you place And is interest it. on think want probably that's the then if the regardless Rich, best it the ebb a sell and of good cycles, what do in don't again, you to that indication should probably

Richard Anderson

and from that know basically payroll, you comments, just this other sense quarter control you a are insurance, -- generally generally same-store I the your all the a timed utilities we've process this quarter are all go But through. profile. away that of even down the decline forces could guys expenses we taxes, got we on go maybe strangely every Amanda, for seems to Okay. up X.X% to get able you. in much How everywhere are that considering REIT? up expense

Amanda Houghton

So, I of a you're this quarter think couple are seeing that what things.

engineering management quarter, and our So, to the about talked portfolio property in-house platform. and onto Duke bring we portfolio our our the of ability into last

when effect true-ups it that the amplified savings. expense the in I relates the the and obviously, bottom-line And to quarter. and in there. bundled In paying and to we're the we the the you're the just of one in-housing. in fourth a mean I seeing of the that. the quarter some in-housing, that fourth mark-up dynamics fourth lot in the our services, as think a is to with you're did quarter fourth other now we third-party, bring But we think things that get get savings of starting it quarter, kind benefits fourth in-house you're quarter, quarter of seeing of the third not I so it's see

I out XXXX. think it continue will in play to

mean Utilities whenever our doubled quarter bundled expense we're one So, at the of is going focused to that we we're for us, in looking size as different things savings a on last services. big portfolio several I markets. we certain

For below Texas, rates we in year a place, buying double $XXX,XXX example, negotiated on were had savings. below power. XX% as medically, to an what about kilowatt-hour -- to our We XX able we

to see start XXXX. play that the seeing you'll You're that in continue fourth and I quarter out into think

Scott Peters

pressure that there. is one mentioned seeing, you of little there a bit that the and Rich, things is out a we think wage are I

amplifies inflationary now, going benefits to platform. we're of know who's also there's labor market perhaps I services, that asset think raising in rates, But We're forth, Trust see construction pressure. through doing and part three able than extremely busy, it pressures Healthcare of third-party think or competitive years more the who's the of management -- year calling was it process instead TIs America's is ago, two much from of capital ago. third-party in-house. that you're our a even seeing some who's in pushing of so new I I that we're their

the that cost we're So, providing in continued because at the still enthralled pressure that our it are basically benefit to we're us. getting platform of

have the is market to it's that at things our markets pass rates. it have the third-party, of HVAC, one where through engineer, to able let's property do electrical, have to then be able are see in call to the so don't we're folks the we and manager realize, it's those So, to beneficial important the it the utility so that starting

Richard Anderson

Okay.

Robert Milligan

on a there, from last One thing. just a other just Rich, X% down. thing last

builds Texas, fourth some mentioned quarter, If big primarily We through, at it year. have and year the end property which XXXX in bills increases in in the come there. of last you'll recall large briefly, tax the did Amanda saw we

bit had high tax prior So, artificially a the was last true-up full comparability. year year we because in a year

Richard Anderson

Yes, I your -- remember percentage versus lease operating some as from just what percentage comments. And is what that Amanda's lastly, portfolio of net sort a is lease? reminder, of your

Scott Peters

leases, some two-thirds leasing. gross about about it's overall as net our of Well, modified X/X structured type or of sort gross is

Richard Anderson

guys. Thanks great. Okay,

Scott Peters

Thanks.

Operator

next Please Karin from The with comes question ahead. Ford go MUFG.

Karin Ford

Hey good morning.

picking might seeing signs guys out up any of in there? any were you that was And shadow supply Just supply your wondering seeing submarkets? new are any if you

Scott Peters

supply. redevelop Raleigh, is something had care couple I related older in campuses, some there's to we or three for going the put stuff say, don't would directly more, volume right as that feet. or And the something care or of I looking to add times, think think On-campus want on are they a I what in space. here opportunities that have that do some of the high to systems now health think had, systems in we've and I where want health is about own talked case, and to health shadow of higher example, they're there in volume process probably seeing larger. we've we a that's or we're place hospital We've care add where they that's where five, either systems. five square four either that with

of expansion move for So, space newer that up, of fit to actually would rents would need. be expansion building Actually an a us. space

-- manage think much space there's XX when There you that for to seeing their real maximize do the which would core years. look critical. around outpatient ahead and next are this always the health is are -- and campuses they as so they're or expect, I is you So, the wanting estate systems XX cost are care what

think but that XX% there are just we're seeing So, you're just RFPs I out seeing for buildings. don't any XX% occupied or some,

Karin Ford

then Okay, turning capital And allocation. great. to

there, changes rates? your being in And that seeing are your cap developments high basically As will well-funded add they desire private out yields in still Or there? more you from if out play credit you platform close to are on developers pond acquisition developments returns any guys are? were balancing priced very onto required to you with competition

Scott Peters

think acquisition you they care recognize been. are very are ground have they There's there's I of think have I rates they being what the they're -- to our it. a priced not and cap that not the credits -- ignorant Health land. fact attached to bringing similar tightly. it, they're to that consistently They're systems lease occupancy. and are development RFPs the attached If

So, competitive a situation. very that's

win-win an when a to building, that next I get health a needs system needs development or and It's new basis think of XX, example a there's to parties. your XX system, you opportunity have where for a spread. redevelopment points simple that care both fee

where get types obviously, down assets out medical like we straight would yields, XX refined we have go we relationships core it with is So, in critical to XX, surgery we're that not or one, points. our to last but our be what We're as advantage program, narrow of to nor actively, RFPs, can aren't that second or months. the take looking do for basis we've want, We're greater our six of, office looking looking the which is able development we're centers, not over to not do the on-campus locations. other to not

Karin Ford

we expect development XXXX? any should in And starts

Scott Peters

in we're -- the I process.

as think we that I say from We're a think where ones I moving parties the you'll is signed are and you'll think see some actively got and the of that when of about that everything and agreement forward. third and -- on couple both several us so second some quarter, us. move through these we and hear we've toward moving talk materialized have lease I actively,

Karin Ford

one was hospital-facilitated talk think Medicare leasing economics from reimbursement of administration about facility Last Great. at removing some change would fees. a There for Do that me. MOBs? Trump out

Scott Peters

be think I of a continues this trend. to somewhat

areas. that years. the from over think of the in their that closest attractive, private the all be the pay systems XX need And I health is reimbursement to the the most to look patients at location talked patients as ultimately next are change they the going systems, is different we perspective, to to, desires we a health generally conversation

operating That's patient in as owning talking their you're attractive an and look as I assets systems that's base. to it. at at the so access population how we're And health those really think we how it, assets you're point long look locations, about

health say, location. going next do pricing of locations, no, similar talk ever compress to years, all we think Now, at and but it's to to ones go down? systems any I over the Obviously, XX the to, their the the reimbursement want regardless of

Karin Ford

color. the for Thanks

Operator

The ahead. Okusanya next Please go Tayo with question comes from Jefferies.

Omotayo Okusanya

morning everyone. Yes, good

a Just me. couple from

to one could drive triple occupancy overall each The gross the potentially up talk versus Could understand you lease about first the little how net rates? in you portfolios? portfolio lease of those bit portfolio. a trying And is

Robert Milligan

our total overall portfolio Tayo, close occupancy, an now I to from think right ourselves as XX%. we perspective, see looking we're at

about tenant our triple think sitting it, single I we've could third as we leased push talked XX%. with net lease, of We're buildings, net a that that portfolio. up still are to XX%, with

think Park look put XX% XX%, And our opportunity. XX%, we of From at that Forest would portfolio it, specifically, occupancy. talked where really we're a I range. at that an assets as drive that's multi-tenanted we lot as to So, about trying our a couple

showed because As we're asset, square sitting what so of well-located, is We now. around really with the the hospital. investors really built. HTA feet It's a nicely so of with uncertainty vacancy right the there doing XXX,XXX lot it's just

look time. up, we specific, as over of key So, rest the can drive XX%, lever. portfolio think we we that's that look get to we And occupancy is a to as range something the XX% where

Scott Peters

right square feet we the feet for Hawaii break discussion things the think White one strategic that Plains square under is user. got in process that over we're to we've next XX,XXX into spaces of now now at that don't XX,XXX a up. And We've I want some months large Tayo are large is got is that XX a

as those XX those where maximizing of And us as we -- we and the those we we at XX%, us objective, at about seven get at we've that's XXXX on as mean probably So, the focus see you'll assets look Robert that Park. on talked go XX%. going the through and assets, to that's I as Forest think we assets portfolio look I utilization as look our to got focus and leasing our months. next we

Omotayo Okusanya

Got you.

for just of increased of again now. lot an Duke. starts? the we you Then helpful. given sense Would that's on kind the Or platform completing make economics a acquisitions you in guys just currently development have the now of Okay, all, development focused are right pipeline? don't second at expect And what's

Scott Peters

produce acquired our move the Well, to asset management priority our our platform one what to if that is the growth our think priorities? we continue we And are number when Duke to want I we results you -- our same-store priority to and say, portfolio. -- focus, underwrote

we're perspective It I more our out to much we're long of -- can't is from this now XXX a times. we of that again? said, us -- I engineering we And in markets It folks getting still in out that that makes always markets. that I've to increased efficient and that. these first would the really, XXX focus times utilization do an core combination. do year the of and critical getting on think and nature from talked out way would

allows real folks us we and we XX% XX relate would the continue direct the ability care Healthcare get that's and that's the to one So, Number acquisition done. focus going core to estate internal development we platform number two priority. this that health get priority, opportunity directly basics to to to Trust the XX, the -- have be number is system of of one transactions have and that but now utilize the that operating contacts our take XX%, America's and that relationships had, can months. that with efficiency, But XX, on folks

think I don't priority it our development So, perspective, from a desire. increases

just over we're the think priorities means two proper going months. that next to I the perspective execute XX the it put in and

Omotayo Okusanya

Last on increase helpful. bit talk drove But for that's this, me. you the commissions but that? addressed may during could I have Okay, it. little quarter, a don't I TIs the one you leasing what whether missed just know in about fourth the

Robert Milligan

at one looked renewal TI perspective. from was really a we that it Yes, specific

how XX that to period. very in been and most to time large about mostly we're and the had TIs continue allocating I the think during XX years Board, TIs across there was applying were the had renewal where had This for it. hadn't tenant consistent see it's one related TIs our we -- really to we any

to to going a So, bit. large we're this tenant, space reconfigure keep this

so So, one specific broader than it's driven more by really I'd a say. tenant trend

Omotayo Okusanya

Okay. Thank you.

Operator

question next from Please Egan Morgan ahead. The go with Stanley. Kevin comes

Kevin Egan

you the do And question then that of same-store drove X.X%? kind see of normalizing the Hi guess good the morning. what I just XXXX? I course a regards just revenue. to had over

Robert Milligan

our some think red been been have talked I a there. that about typical we have talked revenue as bumps We Well, we been of it, loss from It's a the that Park. certainly we We we have about vacancy about perspective, X.X%. at Forest growth often there. have really Really averaging look of occupancy. revenue square driver that's feet lot main a from of lot XXX,XXX drops from the

revenue year. see really progressing we as feel the throughout reversing that into the that to of we probably kind and half up, as rest back that XXXX, we the get building really growth As of accelerating see we of

Scott Peters

seeing in is Forest take anything occupied and earlier unique I last for And development sector what out an months, certain to one I revenue or priorities. from perspective that going management is is for HCA perspective? assets your take the constraint. us XX focus are are Park, our XXXX not hit but growth. question, out. ready remove of of out that's now priorities lease open leasing other We team And don't We're of folks The a take numbers, getting the management MOBs spreads to up asset in which one goals this And think the the of it's on our to think who that now. or

not done haven't We to that, going and that. we're do

company-wide. is results show So, we the

XXXX what to grow we XXXX. spreads, continue I we better as opportunity the get is in through lease think saw So, move revenue, to than

Kevin Egan

synergies, a today? you high I left where you that? see guess in by you're think just XXXX. the much to the are probably do lot. how said terms $X And on I at $X in million expecting you just of the call, XQ of was Thanks Okay. curious, was I it towards And end million last

Robert Milligan

to million about that the we annualizes fourth $X that were so $X.X realized per quarter, of in million Yes, year. synergies,

about reaching pretty So, the end it. good of we we're feel high

Kevin Egan

just Okay. last And from then one me.

unstabilized off leasing of developments? the the progress some any update Just on

Robert Milligan

two were from really in that have, and in pretty one overall an preleased, perspective, we've have -- we the Illinois. Yes, XXX% got one Philadelphia not developments of much

work sometimes there. that with take some time the to lot see of system process. lot Working to interest a continue space a to We through just of health takes

So, to lease we're encouraged ourselves. it by the interest ability our and

Scott Peters

the Duke. system-driven. over is care systems in want take in the not building an to is And with that one to with for built it's really expand our health XX% the going great relationship care with Yes, for. health because a location, to Really you the equation going care functionally, part to Duke, use they plans and that with to that. functionally be want that change that be the ability space. it Philadelphia, It's on system, months, XX, probably our where that XX% It's what to going built interfere by But next we that's occupied. example, -- XX don't health

it's because six that's I utilized, come think we us online today we it's going And development it thing XX% that frankly, facing But was team, that's utilize to months. only if asset, to was XX% again, So, going goal have it be be and our to over -- equity going XX% our we next to not if if that another would it will XX is preleased. the were full. XX to to And want our preleased. done, great

the there XX% is forward past. distinction XX%, we uniqueness, there that going sort that's you're completed, do at it was get -- if Duke say the so you what in of a between that's when and So, XX%, what under a would done platform I

Kevin Egan

Makes sense. Thanks a lot.

Operator

with comes from ahead. Todd question The Wells next Fargo. Please Stender go

Todd Stender

start about you thanks. thoughts throughout now, wondered we're hear you canceling this guys? your on just from to the projects if wanted going right So, and portfolio cap hear up capabilities what guys to acquisition I have rates their construction for I year. more opened Duke Hi If out

Scott Peters

can't but Well, something relationships now, owner be with Duke relevant largest of for The systems paper. complexion our I a office, of put the opportunity health our the of meet largest medical the of is these changed on-campus markets. ability whole care the office. being and the you us medical in piece That owner also opportunity -- to to that on

in highest locations, we locations been which considered are we're only in on-campus. the not the prominent but prominent has quality, is So, that traditionally

those of we're going take opportunities. advantage to So,

nine is side. square is X have think with company for also XXXX. to and million expanding work that very, services with markets, feet, systems to with on of we our Trust I development And our XX good we its get in able this extent that XXX,XXX position to some brand process ability in XX assets, from be -- do markets the through markets to the Healthcare feet. integrated which be America, take then we're square very a a a is everything It's management, And good in it's with property a tenants, to from or efficiency phase brand.

Todd Stender

acquisition could then in are Thanks. this And for investment put and fair just numbers maybe total for we year? model modeling what purposes, some our

Scott Peters

would be focus like disposition we proceeds redeploy we Well, I think, the would get. one, those that to

able of allocation. that that do I that, or those opportunities, if get of between maybe X.XX. X.XX, one-off six think an to On $XXX relationships implied at opportunities X.X, that it's where can million opportunities dispositions, we're trading we be there are us, going So, very at for five-eight with top somewhere we something, million today, even accretive to $XX or and find functionally, be to from capital

because make, take it's for decisions them. are think people are there that people OP sometimes units I tax because take just see to that it that they'll want we'll efficient they and

it's you'll see that we'll us in to very now. -- to ourselves But I don't an patient. appropriate. we'll -- where situations opportunity think right We'll that think do be utilize significant be we see have So, any capital very, be I

Todd Stender

just Okay. What's your -- delay the your forward would you Thank the that does prepared to other agreement, wondered, hear proceeds? did in right potentially flexibility the Robert, equity party? did remarks, I you. And regards I can you there? Or

Robert Milligan

Yes, with a basis. we issue on it a forward counterparty

drive the extend And But as quarter year. terms will currently as it's obviously, ability stand, long have we and down this modify to by the so agreeable. anything there's with second the to counterparty, as the

So--

Todd Stender

Got it. Thank you.

Operator

with Capital Markets. comes from John The Kim next BMO Please question go ahead.

John Kim

morning. Good

the recently. about Forest capital that Park on contribute it you same-store you're to the in can drag redevelopment? from will same-store just results? spend this being you've the putting remind when for also, But that the progress and And done results us a talked You on quarter

Scott Peters

much if Well, forth think took are Forest for example, and so Park, out mentioned that you same-store I numbers Amanda higher. our

Amanda Houghton

point XX NOI. increase on basis our

Scott Peters

in forward. So, some that had those that We've moving HTA traditional numbers. is for are one. place but a leasing But big Forest be LOIs to Park, appears now are

So, not capital that it. predominantly Forest not redeveloping up. that's right our it's we're one that that lease the one or as the to assets so capital required attached stands is to -- fee those any are out not beside simple we're built unusual built the -- see They're that's going Park, out, already and

John Kim

And like growth contributing? the higher sounds last will year. when it start year will than be Because expense this it

[Indiscernible]. So

Scott Peters

will you'll if opened I indicate year. in this probably expect think mean XXXX. to it wanted at early I -- seeing seeing actual we they of they start think the in what I second start cash traditionally, that tend end quarter, we part the of to be the think

in place. in and being folks have to got you've open, be to So,

And groups be traditional in interest physician leases. seeing lease the Larger of so there the there. lot wanting are locate We're terms. will XX-year that seven and to a

fourth it's that's So, processes. characteristics going say, at the quarter, going spaces, they from our of cash are those end looked in are year, complexities or coming of be to probably to show that larger and those we've are what this internal kind

John Kim

at acquisitions then Okay. your up? the And know that have of Duke. portion But a do yield on you is most X.X% I and XXXX Duke you broken quoted acquisition

Robert Milligan

one portfolio, in did moving with pieces different a prices. when all the the acquisition, of Duke the certain ROFRs kind the Given number, obviously, was there's we it amount of

hard on full the bought we stated now, five, to for basis, really that way really incremental move management one with Board. been the you And the as running So yield have year across kind look is It's acquisitions multiple a that we where seeing has company. of blended market and disaggregate we of the it Most to really X.X. at on things a in we acquisitions. a a we're

we So, been that's operating at look at. we've that's -- how

John Kim

quarter, is elaborate Or asset Robert, the to during on And you impairment million that the you're can related sell? that? just Okay. to planning an then with $X

Robert Milligan

assets of a it's This We've a a assets. we're couple a Yes, kind of to assets related we're there looking Actually to sell. sell. to looking that is of gotten couple that question. small

$XX to million for it assets $X we million that. call like expect or So, sell something

So, portion a it's not basis. overall big on an

Scott Peters

in secondary very are and markets, larger process early and to in prior listing these acquired of HTA's actually part very, acquired our very a public And portfolio.

on to investors think what -- So, move doing should every We're do disciplined now. we're the And key XX, very is we're through, going to go that I into our company investing -- and that they we can locations exactly get distinct where then feel very XX, with like months focus want we're comfortable markets. they're make. next what is in we're shareholders the in, and know XX acquisitions the like if we locations

John Kim

rates And public MOB cost half REITs out, space to risk your priced cap challenging where you just the about the of environment the be Scott in first the rising, this being the think of you acquisition just if transactions capital and going the year? And discuss of will can are remarks expansion? prepared

Scott Peters

is that to the I months I'm first probably surprisingly think three, -- acquisition -- in I be environment going the active. six

a take into do to sell that this demand buyers for want and months opportunity XX to big of their think continues there the put be the And MOB have quality private platform I the demand their last that. real there's feet to may in out and space estate. a and are

the that office economies, in look in good. good and are like very in which think what performance was over MOBs performed know I how -- look they to We term, they economies. used like much bad bad economies longer their so

good I in a think they perform very be how folks will economy. surprised about

spread you've got releasing which very we great if able on keep that care tenants, location a and from do sector, a steady think great spreads. I health be to a you'll you've got

able will keep to be You escalators. your

you service that If opportunity. to like revenue platform able be will that to is able we have you additional from the have a generate assets,

the things a said, And be don't What You wrong I've time. you sure you make it know you will need at you for while. what think do? do that so I when And don't do that nothing. do to as to challenging do

execute we'll case, to we opportunity on portfolio particular when year we to so in say, this and fortunate the the presented be that itself. in cities like last We to able so are we continue transaction really like have. we're that the And

John Kim

there or pension out be as MOBs far might Is capital? as as there potentially as buying new today surprising foreign anything private who far funds, equity,

Scott Peters

But funds would my surprise be, very to requirement from their that we've the pension seem for that in view, things doesn't yield up, issue what pension we've -- a the to not would be the is seem continues if I consistent side -- understood are aggressive them yield. in is the my someone have From get be again in an so been a this that say equation some -- opportunity component. into it passive to there activity I'm of space. Well, I perspective. have that seen, that the the view side their -- sure from for interest I have going stable them, rates And asset low may surprised to not of or probably have been a leverage a that class has told has with that that in always may not very been been

John Kim

Thank you.

Operator

question go Please comes James. Hughes Jonathan ahead. next The from Raymond with

Jonathan Hughes

Hey morning. good

Just two me. for

an expense on the favorable? in less extension moving XXXX any the will diminish comp external But opportunity slows? in-house Just Rich's question. earlier does be expense savings Meaning, as for growth properties

Amanda Houghton

inning that in that expect in-housing. probably synergies see we've got our think right third the we our from we're to -- of I now

a start over bundle now XX markets. markets a with next bundling us biggest months really for I see to in as basis. to services out size the Rich, on go-forward And certain services we the to opportunity we XX play the to get going those and is on As mentioned that's in probably I bigger think ability our handle that

As still and with seen mentioned, to In process landscaping, We a trash, markets rebid. on have we've go. of quarter, doing already several savings and I RFP started significant elevators. utilities. rebidding this couple that We've national there we've a we're markets

that continued the years. So, and -- opportunity next I and think couple that of there's over savings for that out see play you'll

Jonathan Hughes

increase my then, to on basis income, create that to captive property leads time, the acquisition you kind platform and intentions that Okay, a generate fair lower guess, road? down offset some expand same scale, pipeline next I of at enough. any question. and And third-party management to fee maybe Do have the growth a the external

Scott Peters

that's I Well, the think that long-term.

estate. If you're the the operating and of the to efficient I dominant you an most -- way care extrapolation owner future of real office think natural in operate think that health care medical is it efficient into a have that's the don't a can, I the platform health that's systems of and future systems. care health in

care systems that in realize alone; the the I the for they're to pressure think is assets. have own starting health I are to that the starting environment they one, care and to you're uses see proceeds. better going And think health not

don't Second, focus they're it going HTA's then when to else assets, an let does one, and extend owns those to our it perspective, on necessarily to don't us system it sure you relationship services what if with at a else assets, care extremely think that you we and that move making a who for better, we who manage that's the the of, utilize someone do that, we number logical someone health are do fail want experts to opportunity better? path major From does markets. why down have to is do team of, in not I okay, And that. that proficient the run real estate want

equation that that unlike not years of senior what You want and years you're it's It's -- housing sure the equation they that, with not to ago; of is the expect. a make side the providing them like XX ago. successful retail XX the very process side unlike

relationship. health are about focusing and on -- that expect really advantage You're to overall see that going take that's markets select critical our of in to we being it in systems and to markets theory mass continuing and -- having care in grow

XX You be don't want to in cities.

to XX. XX to want in You be

recognize You that the well, system. and want it. to out that have may you reach that And with critical do do care they can have you when they you and health mass, want something relevancy

Jonathan Hughes

Okay.

opportunities, term [Indiscernible]. So, maybe near-term not longer

Scott Peters

near-term, the us do near-term, that we're reward in now right greatest with what assets for own. our we shareholders the of for on currently the focus can greatest the Yes, focused attention because is and we

Jonathan Hughes

from it me. Okay, that's Thanks.

Operator

question next Stifel. Chad from Please The ahead. with go Vanacore comes

Chad Vanacore

Just environment. quick acquisition questions. mentioned couple you of a Scott, challenging the

catalysts what thoughts on any that reverse might So, trend?

Scott Peters

of would know be we'll year what, the did. opportunities, question there systems note you monetize? health first last to in continuing We years, that get to years opportunities. to going a interest to invested have X.X%, are said, billion. space. think performance would I in That health again, think obviously, a then of range. in adjust, we're ultimately, than range the at are for and overshoot on probably systems to care and rates higher view And moving in private last go was that took the that consistency if They it there would they XX market direction second come first into to those get used that I -- we're goes XXXX and But the we investors. whatever XX rates? monetized, into. higher just in one's are are I significantly health interest get used we at least up office to where opportunity. path real the historically over last back $X is, look take Everything was and X%, physicians. this grow? -- Well, care how and question time And been we've that's at example where to Well, of down Functionally, is back going seems advantage large move estate going systems look was and The -- I that, the we further -- were And office you turn the will when And care medical to that this I public space depending of opportunities out. the yes,

in think we've term, not cap big a range in the to I'm if, six longer consistent sure I them you're seen months. see change interest in rates that So, for office fact, a medical -- stay this rates going in last

Chad Vanacore

year? Should to million delever to turning $XX you would and Then the a prefer that leave you All through additional ATM, to little about just drawn to in we think right. recycling the expect Or XQ. asset dispositions?

Scott Peters

expect Yes, equity or you ATM this would not be and us should issuing equity in utilizing environment. from to not an

We we to and continue opportunity think of quarter-by-quarter. any debt. stay that equity on we our now, NOI it is should utilize sales to redeployment have focus where plenty reduce cash to of But let right

Chad Vanacore

from That's thanks. right, it All me.

Operator

comes Bernstein One question Capital next from The with ahead. Securities. Daniel Please go

Daniel Bernstein

morning. good Hi,

Scott Peters

Good morning.

Daniel Bernstein

pushing the asked it, bit a stock a the where philosophy -- be there's nobody's a disconnect may of well. valuation private on What's on dividend? back You trading your in Since might and I little buying at versus philosophy as public stock? your of

Scott Peters

same-store nowhere, from -- the pointed Well, NOI to continuing of, one I does proud dividend it goes NOI It perspective, in a very our good That's it's we're generate of my continue I no we're think to We're dividend. and fortunate. no one cash don't in extremely you when that cover also of out remarks. drops cash benefit when things to to prepared that our the your bottom-line. things fact,

done upside you in the in an be. started that could out that. we've XXXX cases, extremely I both We of good most down job think

XX. think and were XXX now down like I we we're to

we focused on that. So,

consistent a a be from dividend application will it So, of perspective. discipline

continue to buys be From So, perspective, us for we shouldn't a nor do are that's company We an back stock be. not, buyback we're think I stock. just a opportunity to that consistent.

have extremely sheet. balance We strong an

from flow. very way high now and extremely performing see just to We -- in a think, NOI strong an you not perspective. standard. of in what in an have ebb marketplace I the not, danger performance We're any Right any an or

go been able certain be advantage to that. traditionally, extremely Now, if their events would take dislocated, REITs things job have a you which haywire, unfortunately, of to where REITs, do on something completely a go back happened really not not perspective was have tremendous at we back buy matter stock. of Back to, sheet. other balance think But from all I times, as of that world done fact, a looking

Daniel Bernstein

Okay. a dislocation, It have complete would to market be [Indiscernible]. like

Scott Peters

it mean, for used think and I I everything sell up if guess house we a whatever would in. will which the buy aberration we case, had would. woke off, But It HTA go I home happen. we what? was, would the I to would stock. nice XX% were tomorrow my is have a I I've position expect do that's you and of ability But an that, complete to what be sell to

Daniel Bernstein

at looking your was map. I geography then And Okay.

you just really about whether exposure You I much give to just desire have design to you be And want you you have in in don't and I cities areas, Coast. that West the Seattle, of Coast. that. some if little could concentrations on exposure -- certain don't a metro or be Portland, color on if of lot have like would talk can those on San by West know you wondered but that's have whether Francisco, the a

Scott Peters

We like -- we've talked about the Northwest.

I on We We focused Boston. think we in Coast. focused East were the slow.

like Duke that certain four growth. folks are the helped three helped that us in think us Charlotte, We country get We transaction talked in to there. Philadelphia, opportunities like we've or markets Individually, about and this and showing markets. it I get there. there's

have West in management asset gives platform now We our reach the here talked West with acquisitions the of opportunity -- Coast. We expanded about That earlier we the on have our opportunity that XXXX the Michigan, that's Providence. on call, Part an an that us in-house for Coast. there.

that, been from moved what our have a again to frankly, we couple would able locations would and to it that very having that. opportunities and those discipline appropriate But us. Coast. So, for opportunities the not be opportunity required, when good to have those have in of What's accretive It you we would do transaction. months capital. if see it's a been would been months, thought as present of right presence now, we cost us do have If were is see there something for a is is themselves away we'll the six West nine there or course, us back on of

Daniel Bernstein

Okay.

just matter get opportunity? the you're the markets, right shutting it's if you So, a not of time just

Scott Peters

couple Yes, and Seattle assets in go points that we in we're those well, we competitors we said, that not low. went and of example, time liked. we spend going had And of our markets. we it after one off XX for to a And basis go that took

advantage certain decisions, markets of can. when it like So, we and we'll generate to those we continue but we'll take relationships and make

Daniel Bernstein

One but Okay. if be quick it will last I question, a question. a quick don't know answer, quick

to multi-tenant was versus if XX five, what are to changing the in XX, and next single it have the You next just just change on surgery, office, care changes tenant, your the the I acquire, on-campus that that the the XX on about in health versus you off? going the talked changed center -- next you system's some understanding the what philosophy want how going system. the to landscape five over years, hospital years acquisitions? potentially on XX focused portfolio years want mergers Has your in more or to is focus buildings

Scott Peters

of the Well, the United to benefit you as cities. this to far truly we started about of as we're what years -- And in specific. economic States, growth. get be go like as we on this very going that are it's think a couple gateway I growth economic pronounced see think locations talking And going I ago,

perspective investment next certainly health It From I number is one, care well with the are a do you in and with these characteristics, to be that's I They're something is continues street but that, we space, like macro standard MOB to going cities. XX. They're investment, So, down these say that also XXX. position from not where the the locations very systems location. one, They're have, XX to the that cities XX. particular favorable academic could across on-campus that the I concentration. XX we like there's to very not years. really a the these sit give we XX think to going is be we university XX would think number mean an

and care. most in I health aspect or that the think health the training a things all this make perspective, of perspective, perspective, combination the universities the those surprising major or XX grant the that's lead large XX the country is relationships going next by care the country this years to XX from merger systems health care be with dominant over research provider

execution want you have and at talk peers continued it. our the none if move So, MOBs think to look have from perspective. I know I with we're of to to and relationships And some But that about of universities, second with that. opportunity execution we in that

In community would the centers we core we then about and, systems So, population third, campus. that's transportation their health going And cities biggest gateway the we distance much that it's is access in cases, cities, that's future -- because we're an one in want aspect they to care difficulty continue of to or spend not issue most have -- hospital in their trends], develop. have outpatient of to happen continue, that transportation. that's the of seeing most outpatient not demands want that as to and to we're and seeing the some [difficult to haven't of location, to least more most as out patients these travel communities locations. downtown And get at the what amount the these that is on that talked time some the or

an continue I specific acquisition on us you'll So, three aspects see to perspective. focus think those from

Operator

closing conference Scott our to concludes to the remarks. like I Peters turn question-and-answer over This session. would any back for

Scott Peters

forward call. look to Well, everybody want joining for the and us thank I on to we everybody appreciate and XXXX

Operator

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

disconnect. You may now

Caroline Chiodo	SVP, Finance
Scott Peters	Chairman, CEO and President
Amanda Houghton	EVP, Asset Management
Robert Milligan	CFO
Michael Knott	Green Street Advisors
Richard Anderson	Mizuho Securities USA LLC
Karin Ann Ford	MUFG Securities Americas
Omotayo Okusanya	Jefferies LLC
Kevin Egan	Morgan Stanley
Todd Stender	Wells Fargo Securities
John Kim	BMO Capital Markets
Jonathan Hughes	Raymond James & Associates
Chad Vanacore	Stifel, Nicolaus & Company
Daniel Bernstein	Capital One Securities

Healthcare Realty Trust (HR) 16 Feb 182017 Q4 Earnings call transcript