Healthcare Trust of America (HTA) 6 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Peter Foss	CEO
David Gershenson	Chief Account Officer
Brad Blair	Chairman
Robert Milligan	Chief Financial Officer
Amanda Houghton	Executive Vice President of Asset Management
Juan Sanabria	BMO Capital Markets
Michael Bilerman	Citi
Vikram Malhotra	Morgan Stanley
Rich Anderson	SMBC Nikko
Lukas Hartwich	Green Street
Michael Mueller	JPMorgan
Nicholas Yulico	Scotiabank
Michael Gorman	BTIG

Call transcript

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Operator

Good day, and welcome to the Healthcare Trust of America, Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions]. Please note, this event is being recorded. to Officer. conference like Gershenson, to now Account Chief would turn over the David I ahead. go Please

David Gershenson

for Thank available you. release note SEC. to documents section call. webcast supplement And of welcome being after this can We for XXXX America today days. will the or the and filed call earnings be second-quarter our found next is our Investor close. website XX Please earnings the and replay in financial Healthcare our be These Trust Relations of the with

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

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

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

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

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

Brad Blair

and Healthcare for Quarter thank Good us today joining for Thank David. Investor update you, Trust afternoon Second America, of you XXXX call.

call and Houghton, Amanda our Joining our newly President Peter Financial Officer; Asset Milligan, the is Management. me announced on Robert Foss, Executive today Chief Chief Executive our Officer, of Vice

to largest success its quarter, for Company medical we in operator Peters. HTA's the resignation discuss office we Scott and wanted -- as Scott directed U.S.. successfully the the our progress XXXX performance first CEO, owner of on and in to the of and Before voluntary I become buildings comment Chairman grew the founded

evolving of well-positioned exceed this are the that the all become our we're HTA very know leader in next to in as sector. Company extraordinarily has phase and proud We

on to Scott him HTA us of service his of years well on his and All for future XX wish the endeavors. Board thank

Executive growth lead As Peter this during and to GE, an transitionary Officer over at this said, HTA since as have He XX the partner years leader our resignation, the final of Company. with is result I've leading existing key we divisions us 's and multiple spearheading established strong as our initiatives note. appointed Board serving executive Peter a Chief insights Foss as on relationships business XXXX we while period. One served best has and our plans. with leadership team thing to execute for to

in review in impact anticipate related not As on any their noted engaged a Board this point, items line. reviews the adverse material of having them These to and currently the several Company's early the do is Whistleblower operation. we in X-K, the stages, at Company's financial are

at on matter this we additional However, I to to it any now provide be color this turn unable time. over will Peter. will

Peter Foss

am Thank you run. today by balanced in Company strength joined a I've the have you, grown earnings years and call. time has now that size than has short-term that X performance Company XX%, I investments the And Brad. pay thanks performance off management been and us who team of doubled in Peters. A more In joining. long with tremendous over will Company led the here, my that HTA the on to over with all I first-hand of the and for know of this Scott

and more be as in great shift model office consumer. scale to the uniquely positioned to medical broader survey grow the our leader is HTA to landscape, convenient a healthcare that We and an with and continues to we positioned closer As outpatient healthcare is markets. portfolio

delivering for on tenants. focused are that capability full-service have We our

invest. sheet allows us balance that to strong a have We

to to this add our strong talent have has certainly We look leadership team that And been We ability grow and importantly, most a earnings demonstrated critical to may dividends. our execution. opportunities opportunity to Scott great meet of Peters In with The for that's created Company tremendous a stepping front in is shape that core us. I'm the in short, into us. strong.

pipeline, a ability the our and Xth reiterate raise guidance Our earnings, to second-quarter to performance fact. the record demonstrates certainly dividend With row. for our tremendous year and that investment in

am over Robert operating going I our performance Amanda and Now, for to report. it turn to

do want I Before that, more to make couple a I comments.

that As used saw a made into here a today when younger. help Thank very a years -- And XX-year-old But been execution much. measurements goals. lot gold those I've My of as XX% ensuring on to I was their wasn't is coming I size Australian tools results, growing with and job couldn't over honored I is on I and doubling an be focus ability am this do of team drive a XX-year-old development. as as as my you has good to win plan team encouraged assist be to clear of happier team outstanding that over driving My role X I around am they demonstrated, a me to I this, lot. past team of feel on see but in here. focused can seen and the this yesterday lot goals the and be able a HTA level a make come to help the it an and continuing and basis, medal years. team, environment earnings to at said doing organizations that's this the I employee growth I business it, performance, to has to be by be. this available before, And this the to to continuing

Robert Milligan

Alright, thanks, Peter.

which September. Recurring spend approximately, remained quarter, second performance and continued almost efficiency the same-store our on be of share X.X%, by portfolio XX.X expenditures XXXX. which paid today versus of of in projects. growth NOI, an included $XXX,XXX increase $X million extremely almost $X.XX, XX% to than of of had on energy rent as million strong. per collections, through FFO XXXX X% normalized rent less capital We or, including performance, remaining of deferrals, financial our NOI, with Highlighted steady performance is to Turning of

for our As normalized a dividend grew performance, eighth annual X% of result announce almost us million this FAD increase the and XX third to quarter. to our allowed

have term. of fewer pickup We dispositions believe our XX.X overhead last perspective, through seen criteria. the through forward priced as in investment our in growth than of remain markets and use we an at the of that fit have markets Since over development the on less equity opportunities our a as our attractively of efficient we raised, well we significant From out long that key have call, increasing NOI. opportunities non-key G&A funding growth acquisitions growing million, our focused continuing also our while XX% for

we includes XXXX with have we as of in rest that expected close the year-to-date either a in million sit closed million result, second with third quarter. majority with X%. currently to This of the under have contract, $XXX a of yields the $XXX over roughly As exclusive the first-year investments, or closed quarter,

projects related We completion Miami. CommonSpirit the to the California that million of in projects for quarter. second $XXX in completed have One on we includes in with XX South development Jackson track million substantially XXXX. Hospital This in with and

completed in City add $X.XX at million to project we a to will Heart projects $X.XX in incremental per have be the that Spine 's Medical upon HTA Dallas quarter. on third full $XX an also annum and campus expect These going stabilization. We

currently Center, begin we returns XXX,XXX selling pipeline million. into projects since and entered Houston, purchase that markets million feet Orlando, We've We're projects in end X that to to includes in start This Innovation Texas on located construction development have in Raleigh, our foot early with original square of with markets and including located as the pricing square and totaling in A&M attractive largest our Medical more agreement of at than also also gain competitive $XXX value in the will ago, Tower into the space as Texas years yields option. the Southwest X million XXXX additional on X%. investment million the approximately Plaza, approximately East subject over to expect in build of the and double-digit of Horizon of non-core than was This average stabilized that $XX portfolio our more including of lock pipeline book are XXX,XXX stage a $XXX We pre-leasing that on and by XXXX. seen advantage the $XX and annual the one generating for properties, XX sale sell tenant Virginia taking center assets, strategically rural Tennessee very investments medical also world. includes

until Although to sales these early XXXX. million, may approximately expected close not XX -- although total are

purchase On option, XX approximately related impairment the million. to these of we charge an specifically took

discussions in properties currently sell exit are to to markets. we non-key look we as additional Finally,

balance as million, as we with we markets. maintained As and our five expect a $X.X to as in Ford sheet X.X attractive into this with more to strong just a result, levels incorporating X% raised. previously times support dispositions a of higher-growth we the total, To have much our between half up pricing we growth, $XXX and key total in than billion equity redeploy leverage very in 'XX liquidity,

the between performance, this X.X% store XXXX with come our capital increasing a remainder to to X a and X.X $XXX X% to discuss which turn acquisitions and we're earnings update range keep $XXX with will and operations. to $X.XX which times. able raised now the Amanda for between our a are of million to that funding million result of will our while same selling $XX a view year incorporates it leverage to million and $XXX back the million for $X.XX, that to -- assets As I'll tighten which already to guidance our of to

Amanda Houghton

Robert. Thanks,

our healthcare remained building tenant strengthening and and long-term of with relationships has value to We tenants the while key buildings. on focused its committed as team Our COVID on impacts our and systems and navigate operations working quality pandemic improving health the delivery. increasing they

feet peak in growth. and by new of plans, pause feet feet last the the a building We've added as same-store provide pushed staff, for ready had been and months. our NOI ourselves continue an partners on flexibility internal to and to and of growth we've on line resumption we square results X.X speculative renewals County, testing care feet pandemic the healthcare and expect anticipated performance many leases, XXX,XXX are maximum a well signed of increased growth see achieve put perspective, our growth markets of plans second leases. million We we second XX feet square the Denver. to XX patient increased and Tampa, to revenue From we During including teams in of the partners, space were focus square another where of XXX,XXX affected move-in new leasing of growth service virus. population XX% health started space, had the XXX,XXX hold, specifically coming square prior grow. retention markets with X.X% over the X.X%. that that the despite in more position with quarter, solid and on redirecting year-over-year to like year, completing last operational in our in the better our resulted over X.X%, almost in of we square in decline to historically what system year, have COVID achieved. Orange months, quarter, tenant occupancy. To Core able This Raleigh, plans XXX,XXX with We to of rent investment of that as expansion

remained the renewals, continuing foot TIs continue efficient development leasing One per of towards per signed X% Our the area square of leases have a trend of we per come square year to on of increasing period $X.XX for inflation term been to term new $X.XX success year as our we and in our construction escalators through new, at were our roll on has in X.X%, per escalators some redevelopment leases. of projects. foot as costs. both increased that annual seen

Carolina rate we North of strength to sign A XX%, of over development this in lease that During period, our increased Cary, market. our

feet come to We XX,XXX more online redevelopment in Houston, of will are quarter. also the close third and space than which completing square Denver. in

not do to bottom-line is performance. these lease-up our this same-store our performance, While impact critical

the of will it to believe are and on quarter. occupancy, rest into and intently XXXX, we we growing our year in the As the look at focused third turn start

with of quarters expansion for vacancy an coming Our leasing portfolio sales team, activity core of COVID. believe our in and Combined continues space years. over be focused have to opportunities new strong, seeing improvements markets that coming our growth good over out our are to and growth, we of we and is especially population half occupancy of the

On the of continue service expense show our of benefit and we front, to offerings. the economies specialty scales

limited, relatively we utilization of our For increases expense were to keep the despite quarter, able property. increased

utility significant back taxes. experiencing the despite call now to X% in pressure just will increased Peter. pressure overall property certain expenses in same-store Our turn jurisdictions and I

Peter Foss

I Amanda. will it questions. up for Thank now open you,

Operator

[Operator Please, begin instructions]. question-and-answer now session. from the first Sanabria the question will Juan go Markets. BMO We ahead. And Capital with comes

Juan Sanabria

I that afternoon. you limited I in -- the speak that on can Good expect or to what gives the the previously, Hi. to of material to adverse any are was know hoping the but say, you you The confidence X-K financials same-store in involved don't And Company? any you results. allegations whistleblower say material to for what could form? or probably smoothing the you impact Is there was way allegations. impact

Robert Milligan

it absolutely And and certainly Juan, getting for Hey, anticipate at I this that. good afternoon. anything. But in We do as reviewed to no. to answer thanks the is any nothing have related with on think store, it's we've same time, Yeah. call. -- don't material can not in everything, it. But That And the we has financial say certainly we point the early we effect to able on those are to stages.

Juan Sanabria

Can delve what related to fashion? any it you in into is

Peter Foss

we we that. just start about talking can any time. of this not at they're do believe process And in early don't the issues, are the It's phase liberty at in. to too the to I

Juan Sanabria

explore in maybe this any And, at have is And/or Company including Peter, for for CEO alternatives a look whatnot? to permanent your hiring the has you, outside real you point? hired any it leadership estate or you to at a other sale have in granted you necessarily significant background, more looked experience? have advisors Given case parties

Peter Foss

would We that have half our -- intention. be not first day actually. this point This but at our day

it [Indiscernible]. search. But search certainly or So, be a go internal we'll certainly, talent on for a new permanent more we bring external in team will management some

Juan Sanabria

committee Robert. results? or financials involved, comfortable speak just on, can with given is signed historic comfort off Okay. a the audit question Are And for to you your you you've the with

Robert Milligan

Yeah.

But, perfectly Juan, unfortunately, we're our very fair as off be think I things. have we specific Q. a you're to say we going no, that's -- can we signed that think statements to release I financial our question. about see what do on on And,

normal out the course anticipate we coming think I activity. that in of

very obviously is and goes with audit think I internally It as both a review audit. process everything I well that think thorough do we reviewed as through external we're internal comfortable very there's put why have financial in is that that we out material be going statements to Which impact. the with not we there. the X-K we're able any that anticipate to financial

Juan Sanabria

entitled this And severance like one last question package, seems for me. Is it for cause? any to is Scott given

Peter Foss

It's for not they're No, for cause. cause. not

Juan Sanabria

for It was not cause?

Peter Foss

No.

Juan Sanabria

Okay.

So he will get severance then?

Peter Foss

resigned and any severance. to doesn't He -- not he entitled is No.

Juan Sanabria

you. Thank Okay.

Operator

In Nick and question all ahead. are one question themselves the The a interest that follow-up. Please asking Citi. ask question with limit from we time, comes that people to Joseph one next of go

Michael Bilerman

he got, voluntarily million to the It's million does take not $XXX the Brad, step resign? XX there years you. units, you it it admire at invested Michael of your it's see rush from I his so they you walk were let's or to Bilerman. and Nick. result founder I'm we see team dedication elaborate think to a the day of job. this any guess Company -- call XX in And just up whistleblower not made? can It's here who's any is over both over that they Company decision found, every you I the resign on has found of of But and I put guys every -- away Peter, someone and have complaints with or Peter, X day

Peter Foss

we decision else It can't Peter. point information this say. was personal part to at a can't resign, any any put what I out Scott's a know more of whistleblower. in comment. is on don't not It's It time. that result We to

Michael Bilerman

internal not processes, personal could he's just It have Well, Company? the step it's said. just Was a explanation. not founder any give -- conditions, that result on us then strategy, the see that's say not business, with for financial guess, I stake zero the controls, of that, be -- the the the even the in You disagreement you with someone just that the to every Company. does how but significant direction and a reasons it the day away? It's strategic of operations,

Peter Foss

reasons. for you did tell things And can we I It Well, it was say any it's decision. personal of the just listed. Scott's isn't you

Michael Bilerman

no to to why have transition, an do. guy away to Into right? step you job can A that -- continue Peter, and easier help

doesn't something for someone just to feel step Just doesn't -- away. right

an What of You had conference shareholders not is here? provide to that can accelerate you no your larger issue period. There transition call. something's comfort

Brad Blair

it's in would have but we substantial not amount. all, nothing has prepared decision a it he Company, short equation. unusual where $XXX a personal such of It's to His that a notice, First we for on add can occur it's decision that million was the I weren't it.

but plan, at we're succession, of short We a anymore with -- we've this it. have jump plan notice. sort don't this that stage not know. working We I been it talk early no way could that into we liberty was on, about at can't

Michael Bilerman

Well, guess I -- Okay.

Peter Foss

we don't for stepped have we have a good the continuation love great very say We don't we we run other but to And up you answer of this answer Company. that it, because a good it, than you for we don't to know.

Michael Bilerman

people are the right the to not be MOB could explore sale of chasing a Maybe talent. could Perhaps you what because the that some you confidence cost new best will a financial advisors a as some in investing which that's money, give direction to Company. is you course can of lot lot perhaps Well, involve direction strategic a go. and of right evaluate CEO, the

as how from the something Board alternatives, potential if would from even has I to clarity the should process search of -- Directors is shareholders, as of some that -- an that your about get a mind? think exploration CEO this come you'd well quickly transpired, especially given

Brad Blair

Yes, in we we down be expanding proceed will that -- as road. on that our communications pursued

need going take going to care of. look to got you importantly. along. the conclusions. with think this to And we'll informed we -- appropriate stage on internally some to We've focus We we are continue replace want as We hand due at business talent that in and Peter At will I and move keep externally. we're to rush most don't we any course to

Michael Bilerman

the It least are stay money And just -- to a mean you're ton you MOBs, or at Company a doesn't you you. sense at Company the versus sound Company like doesn't the with course the just CEO. there's so that a have basis? today explore when place Does hiring if makes to opportunity a to juncture CEO standalone a private -- and public wouldn't combination a to going to be stay complete sale in why this in right course standalone Company may public capital of continuing take another more see

Brad Blair

the Board, have opportunities any in course to the circumstance all but should in to to have don't us, business that deal a we would of Well, this ourselves that consider our rush at have consider would, presented to we those as situation of we continuation time. situations be with

Michael Bilerman

Okay. the Thank for time. you

Operator

comes Malhotra Please Vikram go question ahead. next Morgan from The Stanley. with

Vikram Malhotra

actually can just taking if the question. start, resign? Thanks did for clarify, to you Scott Maybe when

Brad Blair

and was about The the Yeah. was date before X days effective that. notice yesterday,

Peter Foss

Yup. the XXth notice. was

Vikram Malhotra

Could the you was clarify, notice when?

Brad Blair

XX.

Peter Foss

XXth.

Robert Milligan

X-K. believe have Vikram, the dates, I the exact in we

Vikram Malhotra

it. Got Okay.

Robert Milligan

the resignation When effective on date. -- in tendered was

Vikram Malhotra

the make I and is just sure I his resignation, said then And whistleblower between you correct? no link complaint heard, to want there

Peter Foss

correct. That's

Vikram Malhotra

a clarify that this just Okay. questions -- you I you bit you've been on know you've the sense can maybe My something very been focused that guess Is so Has a had whistleblower on the recently? is if whistleblower that on? Can the color a to us has Is lot this, something complaint. just it just first on or been just the more or that this? timeline complaint? obviously give board you week of focused on topic. got

Brad Blair

weeks X now. About X to

Vikram Malhotra

do to you going be of to Just of This give us in even it could only you aspect have us with give sense X it of can't topic, sense be -- so would with it back a investors this -- to Is -- high X what is a level? something to prior that some you weeks, a to? question, and those something could it calculations, -- of abrupt given, is accounting, what give could I because is not again, is related it something broad bit help you related two ask would to And bit and are it us still you just this give a any aspect the unprecedented Okay. -- broad color.

Brad Blair

That's by week, are Last complaints started investigation two independent great Company not weeks concern. whistleblower The really, was And attorneys first in shape. is week. The ago. the a financial. the not

Robert Milligan

is I And, this think Vikram, -- Robert.

as the and that obviously, could can that, it I there's you financial From to comment number goes think when Peter numbers around things a look at it be Board. a Brad it perspective, to. of related

We to comfort our off financials. be have to the sign able on

we to the there's forth sign-off have we this. able been parties complete all be that any reviewed by that certainty impact financial and within think don't to material organization statement has as something be anticipate I we're of the going what the make to about putting

some able to -- have what comfort might being I of that. think at to gives that that that say you as we color least it

Vikram Malhotra

you I said us outside will rough think there counsel looking double dollar a just then give into you Is have you take? would you long a think to may question. be And spent? how but there last as Okay. -- timeline And missed this is that can amount this. this, a expect there's I

Brad Blair

know don't but put it X amount should a we it, to is I expectation our on if weeks. be X dollar can

Vikram Malhotra

Great. Okay. so Thanks much.

Robert Milligan

what we've financial able reiterated the year. see as Obviously, financial for cost at a been guidance and our from here. is Vikram, we perspective, to least

that the we down have think path. I confidence continue to

the put today. confidence range to out I think a we have

have did, there's the the we color knowing the think to unfortunately, additional but not investments we to see of run a do guidance. continue our continue know we what and, to continue lot we to confidence all operations. have with business the it reiterate obviously operations that you we've can forward. understand you to ask of to I We moving provide, related questions Obviously, these seen,

do investments right think are now. to said I value a that what is think right; I out asset in, continue there was the we are great to and high place see Michael MOBs very be

a we've very got place I very attractive been and platform think a attractive put able we've it's to that together.

Vikram Malhotra

Okay. just have drove Robert, same-store you, a think, guide, while The numbers the That's now you I'll helpful. ask I question. lower at midpoint. is Can NOI modestly quick you I what that? just highlight

Robert Milligan

Yeah.

think growth occupancy year. been the the I we've into as come looking slightly our with into we've for year, at same-store it coming lower

Amanda I think about. focus systems we've COVID leasing as more come health seen of as strong activity out on extremely growth, and the talked

I think occupancy and of delayed. has of bit resulting the in a in signed timing actually been move leases thus and getting some

some I shortage materials. think of talked everybody about has

I in think contractors, get them a been it's look as we order. at order very an tough market to

it's think construction So, modest change in X.X%. I in but on the utility higher removal, to driven the X.X% down snow We things been costs. higher quarter, delay some there a at first has came by

we good X So and that we're that is I think be very in there's prudent -- in the it just there to think Which number. in. area now to some to it's good, expense I we're going take expenses year, months still think that

look you two performance at to when I think been able continue years, over to we've the last grow. our

up. performance think I move the to able we're to portfolio continue

performance the strong. think get quite other been backdrop every has we've of read, I -- against so And our

Vikram Malhotra

much. Thanks so Great. Okay.

Peter Foss

you. Thank

Operator

Anderson SMBC Rich Nikko. comes The from go with next question Please, ahead.

Rich Anderson

I promise. got I've Yeah. questions, X

you said financial financial but because frame impact you trying You don't but not not you say disclaimer is -- whistleblower zero or -- it not I'm a there's X-K throw impact in -- is financial is. financial, because out financial this that just then is material I'm financial that you to whistleblower matter no expect the it the impact. confu or what topicality

terms; in like personal, financial, anything If could you that? say it general

Robert Milligan

Rich, this is Robert.

the you're text. we I'll little to bit business, the as do within I think -- at have looking financial just think obviously, In appropriate, specific impact and say that about a a everything could it you're I it. do it,

sign as financial material to everybody sort been of don't the -- think the has this look at a I impact we at topic anticipate that any it having off Company. we able don't hand, things, material we having to anticipate

Rich Anderson

Okay.

question. I'm the release the call. in the Second curious why of acceleration

You're why Why the XXth the resigned officially report -- XXth to was on supposed the accelerating wait gave -- Friday. on the He reason to and to from frantic not from Xnd. on not call it me. Xth? to why the if What going rings What -- the XXth night, notice just wait on for the to Thursday Xrd, the call? you're

Robert Milligan

put it days. to Rich, receipt Yeah, to X information this from requirement, really a at comes I It down to a timely out X notice believe upon manner the of comes SEC date but obviously, have specific disclosure this date. we is and of as possible,

better so we on in out obviously, the clock that And could, think, received the I noticed the that given we questions ticking. sure Thursday when make there, again, opportunities, put continues to to wanted opportunities, the out to that it have business and a investment that are context of a to we I we've to think And started put business continue that is continues development that various business including than have perform, a that's earnings. continued seen

think was period. on ticking of -- the notice I we based the the date So clock

Rich Anderson

wondering Scott here. doesn't just there's whole I time cooperation of That's I get it bit a but it understand disclosure why like that. lot seem a issues, differently. wouldn't -- I'm little

Thanks. That's Just got. I an all observation.

Robert Milligan

Rich. Thanks,

Operator

ahead. with from Street. comes Green go Lukas The Please next question Hartwich

Lukas Hartwich

CEO be completed Thanks. Will in the tandem does with be process first? investigation a need conducted successor for to the the investigation, or

Brad Blair

be in can with it pecking that. order. conducted tandem No, no There's

Lukas Hartwich

subject employees are I employees, other to then guess? any former And investigation, there Okay. the or

Robert Milligan

don't Look, subject whistleblower. let's clarify. any any particular notice we put person to think I of the just being out

just important specific I specific, disclosure but think was or in disclosure that factor, the and anybody it's related there I manner. any that being the think it's was there this -- out imply something specific is an anything and specific not to investigated, does that

Lukas Hartwich

you. Great. Thank

Operator

ahead. Mike next comes with The go from Please question Mueller JPMorgan.

Michael Mueller

Scott? Scott? guess whistleblower to is, question. related way? Scott tied a the anything departed, to first I in this operations the Because or directly this whistleblower -- or the you or is separate is to is but complaint tied tenant that's issue, Was second question I any there Hi. said know And relationships

Robert Milligan

things Mike, to we've what a out it -- do place. got the know, does put just to just course. X-K. amount time. certainly public from to every the to it's in has come in appropriate specific it's of Board that's hotline with that. Company The You seriously, do everything these whistleblower Every obligation think And in be And again their investigate Company to I time does. take put we due then

So we matter. specific I out a put as that from think

I to had we -- time that, we at are able look put related just the that note I of we think significant that think impact. we financial material disclosures, anticipated as to out

Michael Mueller

are was X-K not same if this like that Yeah. mean, I the whistleblowers a it random seems but with random, in be event, departure. wouldn't it necessarily just Scott's

Robert Milligan

material any there as think put an matter significant is officer that I Well, such that it's you just a have event to out of disclosure a leaving. time

is is it disclose going companies on. anything I incumbent to upon think else that

tie in the I why it's the were think So, that way. together X-K, And together. don't X them think, in that's for specific any we I specifically the reason

stated. don't I specifically we what think So, that's

Michael Mueller

you. Thank Okay.

Operator

The next with ahead. question comes from Scotiabank. Yulico go Nick Please

Nicholas Yulico

this. just want severance Thanks. the be clear to topic back of and I to go on

resignation. Scott to that Is that going there whatsoever the think related payments correct? said you no is I to

Robert Milligan

I personal and it. this opine, Peter we a obviously, what was employment think contract reasons. provisions and as is said, number This, has bread Peter Scott and for resignation by Nick That in will Scott's know. Brad

In of course, in to in I couple just due rest it's due that course, last I think the think the of it, out. we going play days. in came

be specific if And to going so that a estimate a have don't we there's or payout any.

Nicholas Yulico

the good enforce good to you entitled million non-compete. to only decide I clear that, to there's good Yeah. And through reason, just million proxy, Robert, $XX if the is Okay. you the good wanted for be resignation on payment whereas without proxy, a resignation the because without reason. and resignation Scott potential reason then $X there's according reason if resignation for a potentially the read a

to yet reason be the clear, a hasn't not? or this Board -- for just which good So, resignation is determined if

Brad Blair

a had just a no He that was answer just No, didn't the reason. good period resignation we reason. question. condition. was It It without received letter just without

Nicholas Yulico

Okay. a are going that. is, I up to Thank non-compete? you. on that just enforce appreciate then follow you to And

Brad Blair

judges are imagine make we here would shortly, Those would. I but we'll

Nicholas Yulico

Sorry.

imagine would? You you

Brad Blair

imagine we Yes, we would.

Nicholas Yulico

Okay. All you. it. right. Thank Thank you. Appreciate

Operator

ahead. [Operator Instructions] The from Please next Gorman question go from comes Michael BTIG.

Michael Gorman

afternoon. of make little three bit one the specific the Yeah, into X-Ks, But understand disclosure today, and I the to X-K this I sensitivity. that was there or wanted apologize Robert, it financial a reason questions want back just that just in Good sure instead the the I'm -- of the asked, between other but the technical of If it here, And than that missing I odd to relationship rather that go did there look two, of no I that. your that X? X-Ks Is I three a does or dividend file put dead was s, some horse so anything just I'm to results like beat you Mike to one thanks. is understand.

Robert Milligan

it's good we just think And all X-K in question. an I I together. Mike, from a think line had them perspective,

would release of we is specifically, rest think And we've the earnings earnings the as include X-K consistent the dividend doing release think into sorts from one an with of just had, that covers, it everything put the the else matters perspective, to the stuff. just bus-type on we I always that opposed all put. I as that X-K, then

I them there. aim to think trying out putting for transparency we just were of

and the just perspective. think a together, that we are but it from And in is again, think, we I I note that the have following tie we them do obligations important did as I disclosure Brad to X-K, not financial just So reviews a think anticipate at said, both this point, personal have personal taking reasons. material Peter of place, it was to have It's we or which, any don't several impact. of a disclosure for resignation

Brad Blair

period. X-day the an event a filing within Remember resignation Yeah. required X-K

and it as So, prepared X-K. a that filed separate we

Michael Gorman

maybe the Okay. who it Founder, rises And what to walk then at HTA? determines level a can Chairman, it determines could just that you the we and of the rises level does -- internal back Scott when whistleblower, second, and When before the was CEO, the date. obviously, sounds whistleblower resignation being When to Chairman in or the to CEO And step us through, of for this if CEO, What course maybe the it weeks requires outside would procedures just started a that like counsel? it it Chairman of couple them normal investigation a rise in terms in? looped are

Robert Milligan

the from whistleblower. perspective under it up a Company and up every sets Company has think since set I Sarbanes-Oxley, a Company Mike, Well,

Director. we Chair every to gets routed, I Independent specifically Committee whistleblower single routed the in time. on disclosed gets what the Audit policy, Ours Lead our the as of think it That's happens

the place are from in -- has public that it. think that -- these so Company there. goes it's direction and determined every put then people it I Again,

that's think procedure. I

consistent I most think we with publish and it, public it's companies. other

Michael Gorman

Thank the you time. for Okay, great.

Operator

question-and-answer back Peter I closing over now This concludes turn conference to any for session. our Foss remarks. will the

Peter Foss

for Thank you for questions. you very thanks of and -- much all and joining asking today us

Robert Milligan

can we in they're have the do take in if or still other two questions We there. Operator, one queue? questions more still any

Operator

do. We

people We that if asked is have had questions who okay. already

Robert Milligan

take will them. We

Operator

Okay.

Peter Foss

Yeah. take We'll Sure. them.

Operator

We have ahead. go Capital Sanabria Juan Markets. Please BMO from

Juan Sanabria

Hi.

Audit me. behind question strategy, issues? tied the involving Committee follow-up financial X Just for the policy to not is or or if why, Scott's in whistleblower on complaint the the departure Curious

Brad Blair

responsible all Well, audit through committee. of those. Chair complaints whistleblower Audit go managing for Committee the the is

Robert Milligan

matters. financial all don't they And to relate

Peter Foss

Yeah. It's the just policy.

Robert Milligan

how And financial it matters make it is the all. at matters relate is of where to the for to procedures the proper up. policy hotline standard just attention. not all sure goes routing the It's administrative certainly, that's But, set gets proper

Peter Foss

No. No.

policy. a Just

Juan Sanabria

Okay. Thank you.

Operator

Hartwich ahead. question's please from [Operator Lukas Next Green with instructions] go Street,

Lukas Hartwich

whether comment taking conduct the is Thanks. outside Appreciate Company? Can on the or you related you the Company follow-up. of to complaints whistleblower at the

Robert Milligan

can we're that answer -- think I question. we think I can don't just don't not evade to trying we it.

Lukas Hartwich

Thank you. enough. Fair

Peter Foss

Okay.

Operator

is with Citi. ahead. The Nick go from next Please Joseph question

Michael Bilerman

the couple questions. I I It's of on, a Bilerman. are and Considering were Great. follow-ups. Michael Nick's Nick first questions had both

of to -- on the make process matters -- -- sticking the terms i.e. Company external call people? just hotline did internal external in Just internal were the the or whistleblower or they complaints, whistleblower parties were those

Robert Milligan

questions. very Michael, I those fair think are

many in can things nature. think anonymous be of I these

of That's themselves NYSE opportunity people requirements, anonymous. as hotline, the things I well setup for the that as a that, give be whistleblower general from think of in off point program, both like name a the just would a perspective. transparency

we just even And perspective. a from set them. see to a perspective, it or Company. it Peter, also Company. the we I'll can don't from set be anonymous. can Robert just just not I stock internal so actually I A, purely know. receive -- or might don't up allow Brad it helped at We And very the them But up to external anybody, be And think, well

Lukas Hartwich

some financials. like clear know terms Right. made through it had least wasn't at clear. its if items. wasn't It several and there determinations the me you've didn't I was already process severity, of just mentioned whether in over to gone of sounds in just it identification it were you -- account some that the It

issue independent the is multiple counsel one to whistleblower complaints audit wasn't Company so if legal which we to I sure reviewing. have or it their dealing multiple with the and And committee were

Peter Foss

don't necessarily know are necessarily they together, don't the There was. case multiple And don't -- no. tie complainant in who Yeah. we complaints. They

investigating. just we're and researching So, that, processing,

Lukas Hartwich

Prior discussions. off last there's CEO, the any tendered in these Was if time the He wanted had just in all of that, you Scott then on investigations obviously his CEO? cut about to Chairman, clarification no with he he guess, there to his just and question that at did then I have I as is back Just on i.e., as President. changes conversations the sounds last role? communications pre-dated was completely week like between Thursday just been since? he I any been involved get that. potential Board, resignation can And in It Scott. to goes anything on press his and leave, terms say, of just parties And that completely Thursday. Thursday,

Brad Blair

communication notice. no since And Correct. his

Lukas Hartwich

of type prior the and the giving the to little rest the you Chairman, bags And a what of bit terms of there with notice, of basically. giving it's and President, was Founder, walking part, just relationship first get door happened, a Board then notice trying he his was what color what out between on in CEO, that about me to the predated

Peter Foss

is this Peter. Well,

and business Wednesday here a this good we we some we I think X left friend to and then no on, And Thursday. worked that in on been We was really fact, surprised. and pre-knowledge and with would that Brad plans for Scott so were had going week days, gone here has anything last over a was came notice discussions. He's great were happen. mean, agree. I and

Michael Bilerman

And just then --

Peter Foss

I it much. so help know much, us it doesn't help doesn't you

Michael Bilerman

all Scott's in involved involved complaint, that's i.e. they're time Yeah. don't stage these had us anybody time are to plays it No, as see Scott -- and It is wondering Had to it we've stages want the no. candor. right. know to the don't that saying for know had last multiple this these all for I process. which Company, I it. And want companies. individually, We but all just many quite don't trying all then and, after know again, most Scott a have tie at minutes, cases, And how I into hotlines And And beating to And, I appreciate they to provide Wednesday, the out. and complaints? think be he I doesn't -- chapter he be, -- at -- was XX the usual By of was whistleblower as -- recognize -- Scott to dealt point so, you're -- days both of what -- this are and they of public they're started something happens the that we're few with, you've was what had -- looked the investigated, don't look, you I few the now for feel to But could in next this hours of you in we've these hole opportunities who rise. so it grief. desk, any a had able all is have things? business there's if gotten --

Peter Foss

No. in isn't He be -- from. working. who or No, receive investigation. can't them the didn't he's know involved He he they're

Michael Bilerman

them? of aware he Was

Peter Foss

Anonymous.

Michael Bilerman

that have reviewed? the he some Company that have. independent was audit was reached have You At where d you because No, it did the had to be you've we're that -- disclose what to complaints know and he the just was, retained that's it to point counsel, -- that counsel, there otherwise. trying may had it would but that what it aware going not retained counsel disclosed point committee aware was to being that -- was was has whistleblower this out. find independent may Was market processes that you're engaged know there he he that but there to what

Robert Milligan

there's it. disclosure thing, think X I just Michael, on a around clarification

levels I come design, think these if by who various all things, it the -- pointed you go pointed in everybody as levels out, at as serious, just because of through things knows what is and time out. various open you you to

you to through been And not go at they it's financial that to a enough anything that generally just through said they're disclose. we wrong, times time most -- a many it, perspective that be think I material point indifferent, don't so whether where review And that's normal process. or from get the this would anticipate think there And disclosable. we would've I right,

if things, However, anything the unfortunately, important on. that's given else timing we disclose that it's required of these going and

would've that's where that's we've on we been a got. what we financial don't think but anticipate There this, disclosure there. say I

Brad Blair

the at this we terminate call. questions. should We time probably think I appreciate the

Peter Foss

before, to we're intact, had plan our Robert I said want our guidance, And is dividend. fully make still raised and we sure, just business what keeping that the

forward moving and forward growth results. to we're So great looking continue and

Brad Blair

all. you Thank

Operator

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

now may disconnect. You

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