CTRE - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the CareTrust REIT Third Quarter 2020 Earnings Call. [Operator Instructions]. I would now like to turn the [indiscernible] this conference call. Lauren Beale, you may begin.

Lauren Beale

Thank you, and welcome to CareTrust REIT's Third Quarter 2020 Earnings Call. current that that is on the any are on aware listeners recorded, today's environment be beliefs based advised and operates. are forward-looking management's in should which this business being call and call about it Participants CareTrust's assumptions and expectations, statements made its future the include affecting pandemics including may acquisitions, not as tenants, other performance, matters investments, businesses and returns, beyond These statements such and financial matters, or may financings company's such governmental may or business the of projections regarding are control, that dividends, and other COVID-XX factors as reference actions. their disasters, natural expressed The generally could or are company's uncertainties business to that and cause and statement its subject actual to those materially implied today herein. risks results from differ forward-looking well complete factors discussion or any SEC are reliance not to encouraged should as CareTrust's of other more G. information undue by place results filings as Listeners a impact SEC statements and Regulation for required financial statistical could on that review Except statements for do publicly any changing information, or not events, revise and reason. update other as or as undertake forward-looking its affiliates future CareTrust by changes result of to arise circumstances a new required any where REIT law,

on financial believes its EBITDA, company they measures A morning Investor non-GAAP will the XX-Q CareTrust's website company During Relations normalized this the on supplement, the cautions call also accessed replay for quarterly include not available GAAP to section but call, be be www.caretrustreit.com. can Bill understanding the F-A-D of relied metrics can limited FFO such this Management release a call that CareTrust exclusion should of reports. period. provide more Vice President which will or press of and Investment and Lamb, FFO of REIT's FAD. at Form on website business the Stapley, its filed Investments. these and complete CareTrust of the Officer; reference I Gillis, GAAP When Chairman of the and each the Operating Portfolio turn be accompanying Officer; Greg will with Officer; its yesterday Sedgwick, upon results, as and CEO. Eric Chief and a Chief to EBITDA, Mark now and FAD viewed Management together and Dave Chief Financial over Wagner, call

Gregory Stapley

Thanks, good Lauren, script. or wherever morning QX pretty afternoon, are, much and everyone. to good ran according you

are day-to-day, than they in skilled into tenants that possible more wave improved testing much collections, rent declining the prepared scenarios. continued prospects, ago. nursing improving rates to more our and offset and months of to the understand initially. granular Solid Anecdotally, our skilled are level seniors mortality and they near-term housing under the at variety to the industries project handle far believe dug we Engaging seem stable have how capabilities, weakness in than we And more coming months mix portfolio were operations their a ever analysis operational census. third were than fare a X likely of to

this in appear quarters continue We therapeutics runway majors relief other operating gave and that mitigating vaccines providing out. supplemental help enough data provider understand our operators our nursing new to we pleased to some are comfortably funds points the reporting, and you through roll yesterday be next be skilled HHS the few for with you to to while

provider how coverage the lease relief did We and reporting QX, exactly which order continue of pandemic operators to full with in first to and show month-by-month these you impact, track without basis. both have on funds, both in expanded and metrics enhanced we our a was quarter

government number health that We last performance the coverage doing the our it of We but relief At differently. Act calculate Cares different we XXXX to on funds regulations for are a very been period June over use deadlines we're it under pushed operator estimating used counting and fluid current But very XX, methodology with beat, spread in repeatedly. date there the relief unallocated, XX. not to number are Now connection billion ways it with over is of and of financial receipts April funds stimulus to lot operators all from date. projecting been June conservative. sometimes providers is lose of to programs period ratably amount XX-month next when with funds have expect, showing HHS still relief regulations. incidentally the or the the in point A out have impact funding present, or to $XX on. hit because by announced pretty the Those

additional expect the until some funds funding out, as our we to additional the as ground conservative some methodology use as will plays pandemic possibly stick time We rules measurement the with relief change. but well announced

out fairly So for of and if effective rolled a quarters bottom line, we more see to operators quickly. an we the path a also we recovery. performance, soft get are And extended predictable several see and if manageable promised vaccines landing most operating especially into

health the advocate providing intend We pandemic with much as transparency you will to about unfold, as continue continue our care to data meaningful them for can. providers we we continues as to and and

we track than it the small collected With of are history grown despite that CareTrust, and M&A growth external despite November with in and imposes modest pipeline the the in rent have floating today we We that since leverage lows, pandemic in and maturities costs horizon for X a space the tenant, in pleased housing we for have through historic underwriting, XX% the on collections seniors April. rate on we in and and on As Interest in were I'm rents before April over to Xx no lowest cash less at challenges on at great our to remain able come October, million nothing XXXX. at in $XX we've are to debt post on From of moment. debt drawn exception company the the our the our disruption hand, report quarter revolver also continuing shape. activity net debt-to-EBITDA and expected. our as

our narrowing normalized the for to FFO $X.XX previous FFO per and $X.XX from and of projected share year of guidance to $X.XX $X.XX, share raising per our per $X.XX share to FAD now $X.XX to we're Finally, $X.XX normalized $X.XX. share normalized a of of to per normalized FAD

good both quarters great looking next about crystal and about just forward, Finally, our potential which growth ever great gets, over we as is or we feel our XXXX. for prospects the good and see collections as a ball X for external so,

Dave and off Bill color with it then for financials. up with jump Then acquisitions, will I'll more will we'll to in Q&A. first, turn out the on there, finish over it for some So what's Mark open Dave? happening

David Sedgwick

milestones, with call progress Thanks, everyone. I Greg. to towards Good corner on the measure we last tracking be ended would morning, COVID. turning quarter's some

So let me comments start there today. with my

treatments the initial Furthermore, Both beginning pandemic. of have now capability. operators and behind pandemic disorientation environment of improved the clinical the and COVID testing dramatically adapted have put most the largely distress the them. to since First, and

and milestone nursing we monitor closely operators is funding. operators at shape applying funds. been second have funding, for of recently chance fairly The government stable given another skilled in rounds housing After are seniors X announced

far. volumes is and idiosyncratic pre-pandemic returning watching fluid the hospital been electric third of so to the to Due milestone of has levels. we're procedures volumes. limited virus, nature through emergency and The hospital the Both department recovery

and depending the And efforts to seniors market hospital those effective of the of of an vaccine FDA waves by really volume fourth to pleased the flow progress to in bring It expect see the settings ebb milestone, the course, housing some and We genuine on continuation by to industry future in and is markets we're see by to aggressive time. And and nursing encouraged finally, infection. vaccine. We're fronts. of the discussions. several homes is record on good prioritization

in through minor to occupancy before. me occupancy perform It's this let report the a housing a to to months at see declined, actually our to seniors our the impressive year. pandemic pleased last than we while XXX over during seniors been have large. housing gained from March compared couple few and steady Individual actually operators that facilities housing bps in housing Next, the others drop have seniors portfolio skilled compared I'm better Overall, of nursing held June. to turn October, sector did seniors has occupancy occupancy. see

not October XX offset COVID. including through overall from occupancy the XX% expenses skilled For overall over but The the provides and to Ensign, increased skilled meaningful our dropped nursing, with has partial has March a X% roughly increased XXX period. occupancy the occupancy additional or or revenue higher-margin almost associated bps skilled loss same bps XXX

the to We're of thus providing and talk I'd relief Now reported state support and and lease funding government for grateful the coverage. our level like far. the they've applaud the that given federal to governments about sector

everyone's to Because account for a for master their EBITDARM increased EBITDAR operators desperately disclosing the operator the to challenge of Resulting together. challenge right have is a uncertain Some by bridge number coverage actually benefited have our funds visibility lease assess tenants by question approach. provide funds. all in this other couple our the you operators them for others XX manage operators revenue. mind where bellwether the meaningful Last for taking Other The have funds no has needed wait-and-see until and funds, to is in to coverage through return? of until on relief COVID time, risk a operators provider XX% HHS sufficiently recover. magnified and bridge very from and that reporting account and conditions uniform who we the the returned of security some applying year, operators became fundamentals is HHS funds roughly fact words, the coverage pre-COVID This do TTM rents. risk lease provide top our Traditionally, the a for the lease for been their a large primary long methodology of funds a amounts there In relief time. away in operating the is real by portfolio?

based coverage operators on So be reported would as best. the at simply reporting by confusing financials our

quarter Since X until at by what we reporting HHS including believe the periods We're in overall second, out on up those we're We HHS is those COVID Ensign amortized quarter, different the have looking first, use HHS funds. X.XXx. we're most X very June to stripping without basis, time and year. June of the that X a and that HHS certainly pulls to and worst likely, XX. months pleased the next coverage of trailing Without by through now, ways: and periods, operator's funds; it COVID, Ensign, that report outrun important X.XXx. coverage at quarter they first coverage, average. So ability X coverage all year And reporting indicative funds pandemic. show of stripping to of portfolio coverage and also HHS funds of out is through as funds lease most TTM first the the funds EBITDAR second next QX, was X.XXxs. very without X.XXx, EBITDAR hopefully, just is still of for Ensign, strong portfolio the And quarter was without this a

to with and, to role in pay With for continue we managing over the I of critical to quarter, fulfill Finally, be who the pass some care and and employed to of about crisis. circumstances. part last challenges their path these Mark see cases, and their continue they with call a proud their to adapting, weigh that, provided extraordinary said rent the residents current continue our forward as operators Like to to the support to their I'll as caregivers date, investments. a grateful our operators during Mark? patients, we are for we along solution fully association talk keep as the improving

Mark Lamb

everyone. hello, and Dave, Thanks,

with produced lot had investment to valuation little to the added a from front, $XX.X Eduro in paid tenant them. our forward. the tenant, QX new lease moved with million we straight COVID. investment made thus, The $XX.X buildings, which $X.X million of we financials X noise the rent on located have Year-to-date, the not very great back master our our got our has exposure X-building largest pretty On Helena, up Board investments. Montana portfolio a activity in Eduro did million the Healthcare. And in as tuck-in We investment with seventh which for fifth to in

across year, of the coming nonstrategic buildings range pre-pandemic We to not as continue close to opportunities the and stable, portfolios. back we experienced the desks, to of at although well see a steady from opportunities as beginning flow broken performing volume our

market exit over to existing believe pursue to that be we to operator good the to meantime, We to larger we coming continue commence continue trend operators looking we and see really and to operators our compare the front. happen in opportunities are opportunities we for smaller expect and the that quarters will to be cautiously space XX with the XXXX the that We're would bench relationship optimistic a to over next In SNF next months. some with continue about to expect XX our we whom year on that active love some pipeline. feel acquisition also currently operator several a

our to pipe. the Turning Turning -

million to While our our normal result in deal sits acquisitions. a the range doubles and flow of $XXX singles $XXX typically approach million as to

allow The happy are that feel to up deals actively ability But call, as sit a we We our in a in are us new us relatively then have it only the can as to the quote begin pipe, both And and financials. our the we to as under our discussed level pipe further when enhance only few markets. them confidence we in pursuing composed million that that relationships quote portfolios over to believe few our our currently And allow the we we of groups turn relationships. our $XXX discuss portfolio, existing footprint doubles with to consists to good reasonable report on term. million close I'll strengthen continue underwriting as current now a singles of of if as them will pipe SNFs The we in last $XXX tenant we lock remember existing for grow both about. to deals Bill near Please standards. we we that senior range in to and well housing. that and very small acquisitions well

William Wagner

Thanks, Mark.

and FAD remains our among or $X.XX of $XX.X lowest at Leverage ratio enterprise on share. to $XX.X For normalized XX%. basis approximately and or was normalized or was FAD. quarter, the ratio FFO at value million was was payout XX% per normalized debt XX% net all-time FFO $X.XX per quarter an million of end, and on net At at share on low a peers normalized X.Xx EBITDA normalized to the our debt

in $XXX stock During ATM to and date. the buyback been a plan, neither put $XXX utilized we new million first have quarter, million place

hand with than today. more million Our strong liquidity remains extremely on $XX of cash

We Cash year's also our remaining Further, of $XXX of after sale we increase in owned million in, our million we our well. rent dividend. per as net have November living XX% under produced our drops for in facility our we collections revolver, even almost XX.X%, that Xx. with contractual October and collections cash debt-to-EBITDA this cash recent at and end of availability $X below and quarter, operate were independent around expect to

million which $X.XX LIBOR guidance. for per projected FFO to And to bps. $XX for of approximately upward per and million expense normalized $X.X FAD project straight-line the Interest be let couple which is is the that, $XX only revising used of based million guidance the at on on shares. upwardly Rental amortization million. FFO roughly projected you to share guidance. normalized to includes shares. the of in $X.XX back XX.X year-end XX.X financing will amortization pandemic, for on of Interest $XX.X comp. $X deferred of previously with a rent. of year, we fees. expense million turn income press is year, go to $X.XX me per FAD based only our of our Despite to share and be will rate some $XXX be $X.X release. million XXXX provided $X.XX update $X.XX Moving million assumes projected XXXX, were months G&A With between per includes Guidance it called I million includes of of to million assumptions in stock Greg. of that to also are share and $X.XX our Interest and now normalized share be on is XX roughly $X.XX and of We projected raised in to income for to issued $X.XX normalized $XX,XXX approximately of a

Gregory Stapley

interest for this happy your you you And Kevin, can supporting you. hope instruct we'll questions. discussion helpful with that, thank of to questions? We continued to We Bill. again on answer in Thanks, be been has them CareTrust.

Operator

[Operator Instructions].

comes from Capital Our Jordan with question first Sadler KeyBanc Markets.

Jordan Sadler

I the to like to there million, first I $XXX some $XXX seems Mark. on It question seems the have press really because the even thought $XXX pipeline developments just that $XXX pipeline. have been So to night to heard million it up picked last release may overnight may million million from relative

then of for And to give little some I'm to you So bit hearing if what interested the that larger looking larger kind about the hear of also opportunities maybe means? guideposts and us interested mentioned And pricing mostly of sort SNFs pipeline in could you what more like? come some market. I'm comprised what is of are a in could

Mark Lamb

Yes, Jordan, it's Mark.

the campus SNFs. mostly of say component, at kind at I'd existing So your time. up senior stand-alone housing on housing this of opportunities no but do seniors have pipe opportunities. is a that To We're made looking future question some

discussions last the in to to going community kind I couple weeks, of or larger would that, over between anywhere with good and of say adviser what market. the the we're are we that come are, million. quality auction assets and Just the the the those deals obviously, million know investment is somewhere portfolio. in is hearing processes $XX composition - of And $XXX

was were lot see call this larger to like a it, of So There earlier much we're deals as those interested week. have seen we've that a nonstrategic. announced the been, look what in XXXX, couple

optimistic cautiously so we're what And coming. is about

over feel been have end sort of light And as expect next held a and is to year. that there get a particular that opportunities of And been to kind people around underwrite of non-COVID X portfolios cases, financials, tunnel. can something out hopefully, out, and held be we'll early their until have have mid-next we rate, of in think sort or the think are played few be the see to COVID the people able kind arms I assuming run - quarter until may portfolios gone. gets the like I figured at EBITDAR come of

Jordan Sadler

broadly bit. expanding SNFs. in deterioration there's been a speaking, some just little the that census, across on So Obviously,

redoing and opportunities And just that would you're of deterioration. assume that just this looking one, follow-up, is underwriting? be, kind underwriting. include wondering Then lost so have think I census - then and sort level I'm I when about you how your at market of how a you're underwriting that then just affecting coverage when and it

Mark Lamb

the first it's question, important numbers, level to look So what obviously of census. kind think drop certainly because you at the I skilling in place to in ever understand can pre-COVID of

can going or or in patients skilled in? is heavy a probably a solely skilling a is based spike actual It's slant with on of both in there the to You an humic towards in spike have in probably more combination place place. uptick be But skilled mix. coming skilling

So the and in safety make sure address underwriting to how the it a there's try account net, that that you for that documents we ways. other we structure in as risk the to in downside

problems underwriting. not our we're So the solving on necessarily just all

that the different. bit of a perspective, is an underwriting covered every going long deal really that is perspective think from sure out. transactional From we've depending from forward, I that on how just the anything it making a other piece take pandemic plays place little could ourselves

to do years As different lot deal the operator Every X you that side exiting. the sort on to for now. we really we've with that's as and on underwriting know, is lot the this of X a a opportunities have harped see of

the performing case, someday terms the pipeline. there assessment of in be of but we in first is terms in structure, changes terms - our is of what where can today, as side of it's opportunities of A at lot in so also one portfolio certainly on And each maybe - capturing rate. insurance, cost have the in revenue

low-hanging what fruit. historically as So have we discussed

is hanging a of underwriting economics is the fluid terms in-place the the exiting. operator in the fruit process with of that of buildings really where kind portfolios, of but what low or looking is the at the also So are

Operator

Our comes next RBC. Carroll with from question Michael

Michael Carroll

of bit. And a properties are operators to line are that that that more there looking right in you're to now that transactions, some sale-leaseback think exit want I the to able been is I type retenant the today the Mark, kind questioning now buy just and of business. Is bread it environment? said continue smaller that CareTrust that given little and And has you've uncertainty? still something looking do them. Or of actively butter earlier to

William Wagner

say, and opportunities into are are no, look would bring folks new our existing we operators we the can that exiting continuing I business, for to acquisitions.

HHS you think be in once about funding to I there continue strip and out able still very feel to operators good kind take of the opportunities, being come over.

we In transaction good did. quarter, taking felt the and and operator at a performance over at of an about Duro, level to look you from being kind wanted our who coming the it perspective If very another operator to exit was reach despite in COVID. able

to what continues we'll and and So our tenant continue butter, base. to - be our bread with opportunities tackle on acquisition existing to look that

Michael Carroll

deals it just about to the I those uncertainty be that in probably have the careful to just does or we're given given it kind today, the just does still possible? - transition that pandemic - Now is of operations, mean, more it and longer take difficulty it's

Gregory Stapley

Mike, Greg. it's

going so says, you truth different, Every which questions when it's then shake temporary more under deal that quite answer. your you is a and current a the to become that it's the bit Jordan's Why think And really and sort give complicated. normalize. I with. temporary underwriting conditions out has begin condition, don't simple quite acknowledge as how both to hopefully, know difficult Mark this got to you've of condition or

to we coverage So done as just with existing acquisitions, our with on that very take numbers of today. those granular these into and you analysis our account portfolio lease the things we've trying gave getting target we're

has background the so going to It's been been us. time there's scenes. Just now. than never And trying to I our what's a operators more right behind a if understand when ever on been really benefit think

We're to So look at to deals. those continue to grow. we continuing committed

we We would in like not the more it's to that and bring have - portfolio the great in operators slow pandemic in we that we're would and the really going expand, to us difficult, let we're really like not wings to great down. operators while

whether Actually, more operations more time. complex. are not take transfers transitions You of about asked

were months used ago. them. environment - really that limited there's are it's the it's operating It things much to third and Some variety of X more to day true. in conditions. deal laborious of else. better much straightforward. in But documents that a infection calm procedures, that than the a about the nets ever and more is happening we the underwriting - wave evaluating all than When structures they're the our not that of current around the take all forms and it's talked once to them time to we're little do is every fairly they're talk deal but much Things transactional this to access be doing Mark out to we that's getting pretty a handle And control really say that just the are But But - necessarily and under set facilities take here. don't everything different there creating I in want that operator today safety is and things seems been. now ready about, mean, standard actually new which community feel a can the now it's

is respect, sort numbers it of tough not to get the in right that get finish them that it's complicated So the over helps. but line. Hope to and really

Michael Carroll

to does. of now? on lot that the space? the is players one mean, a And of right it were being question. has competing you been landscape it you so into get this there's same then quiet No, I just active? Are a not against or just people What capital lot last the waiting there of sidelines previously? is competitive that kind

Mark Lamb

with are similar last XX Yes. we've buyers well No, sophisticated experienced their say understanding SNF business. to what capitalized the months, private, I over who XX respect would of to it's to the

peers. we're starting of some maybe of to - So REIT the maybe see our

We and engage. sort hearing are sidelines that of off are the and back about

to there's a looking would out. So opportunities yes, I for say find of capital amount substantial

Operator

next with Our question from Raymond comes Jonathan James. Hughes

Jonathan Hughes

for drop Thanks I Trillium's and happens to you of out stuck about in Dave, was talk prepared kind remarks the coverage? the hoping could what second EBITDAR the That to disclosure. one on quarter.

David Sedgwick

Yes. thanks. Jonathan,

to top quarter they XX decrease up in increase of labor the its COVID an Trillion first because Trillium, a in you HHS can any, is is, their is but The see really And they And there that this. that is, to just revenue that the Trillium they quite are through numbers in manage government. if actually, June a relief rent taking resulted than year funds changes Xx are schedule the to news toll how there and not and these important is good their of next the kind of coming that up disclosure we we funds are need still that. business amortizing any expected had, that to increase the place. relief Trio's on a And think there. great So QX the experience without and is making to costs the better QX, to, funds funds goes took like example, from not include feel we does again, lot a through the show that showed additions amortization that of closer. that future of coverage HHS

Jonathan Hughes

And helpful. very disclosure is it's No, really Okay. useful. that

the and are mean I you so some and know X February, that annually money flow terms is kind remains to than a we out for It's guys calendar? Jordan if the pace optimistic. - little past even in some I But thanks if me. question X% for raised the we than little putting But could turn the January, which larger if expect of the my investors? we door already mean, bigger higher muddied just cash covered for a night, with pipeline, the on of it in into the more is years, years that be So as dividend investments, and prior pipe roll investment don't raise a together. moving strong. see share could we even X of been very last I

Gregory Stapley

we've haven't probably I say last not Jonathan, that's multiyear very that of is to about best be really because But company and lot ascending to Greg. at into graph committed possible, very that should ratio believe our say keeps making give that, our solid sure and - funds we I form it's dividend that that a year. a can we maintaining historically, back a will been committed that. going the cheapest to like I the that rate. We talked of return There's to payout shareholders. what been we've puts also some when projecting dividend capital

we everybody by September and the when kind to market deals people Usually, seeing the of deals next year. we're come with And after I silent accustomed concepts. what see we And time know space We're January the not what look November to cycle to and through lot when timing those both when the these to of October will of going that months holidays. for Back what I we're saying respect tell coming don't few to we then like to every sort so And will I visit March. a goes committed at to work in light normal But remain question of in about hitting bring. to that, back NIC conferences. in dividend you they've of comes this as December. your that next it it's get is February, look the important deals, think happens until

of also year. while on the So have this the timing additional what sure not pipeline have exactly closing deals do in points some on year, and and stuff next watch be, to be hope hang we those for putting tape, we are the any Board for ask I'm we just to some there we'll in would you and keep and good the as had. points

Operator

question with Barclays. next Our from comes Valiquette Steven

Steven Valiquette

the So X. the also XX just on ratios tenants. top at Page Yes, basically coverage sticking with lease

maybe way. three Would at ratio down. that are column industry, companies X, which percentage the year across Column excludes the the it of that interesting in have that X at thought only X. the on look other reverse you is might If up you or coverage their credit funds, relief the have ratio And

have would what So you volume characteristics have thought patient cetera. of some that falloff I better drive from I drove I X June referred the more trends? would post-acute were in to curious to curious, I'm able operating care do in on the just rent positive operators it in those we quarter. guess being think color the period coverage get acute the are be biggest setting, common would the what that of et was

David Sedgwick

have We primarily question. This - a in couple ourselves is nursing is the have the index what would not you during pandemic And our really a pride - and pandemic, best-of-breed skilled leadership having space. One, do pre business, this partnering answer operators. And Dave. pandemic, lies senior things. post you - an in incredibly Yes, consider of sensitive of really that's of the in we with great management what is XX top sensitive.

operator, the even but with exact you same results brick-and-mortar you the residents. exact very and patients same different out and You have change and employees have the

you And so numbers in think skill you the asking not market only you when as have do massively. are pick problem, at look place huge what you're that the up matters solution the and ability Because to these higher-margin a is communities. skilled But about, to you I the in the patients. also commonalities, And see yourself patients to to then that's factor. as ability management a

themselves of the of the with livings residents. to a many just are the So find choice positioning our to not but they the to in solution hospitals, of these have they're operator COVID care taking area not assisted in dealing that only operators, but become pandemic, for

these take that ability effectively translating what's largely in of these is to that to have you care patients, place, skill into as numbers. So

Steven Valiquette

That's confirm Okay. senior helpful. housing the too, in predominantly And that's just to only list that is Premier company focused?

David Sedgwick

a Pennant seniors operation they besides Ensign and housing housing is off I'll seniors ago, remind was you primarily health the a until as that. for year They that services do hospice us. Pennant part the and #X, group. of Premier also is spun home that group about

Steven Valiquette

they're one. probably track so that Yes, can Yes. we

So yes.

Okay.

covers quarter, I'm that guess, directionally the to to next when it. if shown, do all sure not ratios for just one quick or not. you you'll this think bait But on had just I these a take are Maybe follow-up. maybe or quarter? for just a at directionally slightly? ratios same improving everyone's If had directional about maybe give how reporting view be trend when would the least third to staying or it you the falling these things of off might

David Sedgwick

I period look as is Well, say show number. do versus the I to XX continue is just the see some numbers versus probably bit a what a the that part. because we'll trailing the think you'll of And and of at mix. pandemic time pandemic cases, a first think I And you what in

skilling months to first folks too And were X will pandemic. adjustments to being manage cases, able do some able were they've operators in hard other of you'll benefit find these that likely make The that without of in been in might the hit be hard to really it. able quarter, show to you some some were to improvement some they that place see how able first from the pandemic at the hit who who that as outset by

know, that it states, really where QX lot you the was in hit the our are. facilities of wave second western As a

depending as And financial side a the curse know, be on that, how manage of can we on it. and things, blessing they a so

continuing think results take up that But see mixed you I'm surprised months. through whole. be do So going you completely tell as the go to might well X some to people some bait but for not to going to with down think - be it's you I will I a able there, and all or

Operator

Bernstein question One. next Our Capital with Daniel from comes

Daniel Bernstein

then Do at in nursing some home mean, they're piloting HHS assisted skilled have home have on I nursing skilled and skilled the - threat institutional infancy, as And the health related very much facilities that home. question And health I really at - the putting and an appreciate and on home CMS I and look for institutional toolkits a before decrease a maybe X very to out also, public providers, well? home you after maybe helpful. for nursing. living its is the health threat nursing echo, was to disclosures recently right? occupancy of you piece been as some funding I The just to industry coverages, effort see skilled

Gregory Stapley

guy and I'll something. jump population in nursing home move as facilities Greg. But not Verma the might pandemic as Seema began. as not a recently weigh intensified percentage it's some to about whether lot Medicaid living. of nursing Dan, by I there going that's read the better is the and let well this if well comments new. there's traditional actually miss traditional to long-stay opinions in conversation out is assisted whether in since be some served in I around of the question And floating I'll or of It's health of skilled the a kind that some patients

in those someplace things gone Our fears go position be with being lot snap patient The living some have some fact. may right of around that's has long a that were always while that respect nursing to there's some are the some stretching time. extraordinary a facility. who believe residents and by individuals shifting population be to Maybe. back ago extraordinary on long, and been homes could has been subsiding attract now normal. in or really nursing besides assisted going skilled that now, a always with to semblance home to there. health on skilled People of some in And years and already going on continuum assisted to the healthcare demonstrated hang nursing residents there going Will longer for nice a living those a move? to We things are

hospitals pent-up census up. to some also of for expect so elective going those be And push continue, expect but to of to It's continue demand that to push dynamic get hospitals is we surgeries. for we the to that destination sicker expect their patients back a the to skilled we else those. quicker and know, will and only I out anything And of vast Mark, don't majority nursing continue the add? the Dave, lot

David Sedgwick

That's good.

Daniel Bernstein

there. it I take better probably in couldn't the myself return nursing think to patterns discharge to point that, I sounds will like skilled you some normal the for at space. related guess

judgment? patterns, in but the bit other that been that's will there's some back? nursing discharge come a is is permanent return right? like sounds Is early that little patterns, Or may those make skilled think of surgery elective it think change resemblance all too the but - whether I it way normality when that been debate a you to

David Sedgwick

back normal. Well, time we to early it's certainly on death think call too to returning of nursing, skilled

as the once gets before, once the life hospitals. reopens operating we the is thesis environment that to labor to back and we and the return environment conditions in had discharge turned Our environment, it normal, pre-COVID from basically both country that we've the corner, the

Daniel Bernstein

right than Okay. One have of assets right funding [indiscernible] on is there some doing the away. and more which your for loans been balance and peers preferred me, rather out sheet bringing

looking of kind than straight preferred part at pipeline, As are your rather acquisitions? deals mezz you of lending just

Gregory Stapley

moment. some We'll think, to development But past, looked pretty terms recently. come Dan, our see done in are I this we're mezz how to excited that counting horizon. we good is We the takes a it's it about. never and pipeline in it very We have prospect haven't the and is not mortgage don't viewed if some of the mezz, any we're preferred the on actually at we thing. open right deal and actually it preferred in have, it - our really preferred for at that And and Greg. lending long more before, not certainly to collateral of But good. is the fruition adverse to

Operator

BMO comes [indiscernible] question Markets. next Capital Our from with

Unidentified Analyst

Just a asking. was follow-up Megan question from

volumes just options temporarily elected the are other Or of but for the not segment? the come the customer understand second at to segment? share, I'm your bigger maybe that included the saying least trying picture you're haven't may be back overall, does it that for that elective your hospitals is just procedure losing the to particular back, target the are And [indiscernible]? coming just despite procedures drivers choice So be fact census?

David Sedgwick

Yes.

patients to a surgery. over elective There XX a conveniently there's discussion the bit. scheduled that journey nuance So the of Not last elective because through the department. little emergency have of through are shrunk procedures years, really certainly majority XX, bit come numbers quite those. patients come the that there, the started a those nursing skilled vast is facility their But of - Juan, skilled

being shifted home have and largely with easy and As straight things knees hips and of that. discharged health to like the patients kind home

are arriving pandemic. nursing So are sicker certainly ever than facilities And the and true pre that is before. this skilled patients

they the the to occupancy, so really, those lives facilities. department the before, then out living nursing people And country reopening which to and as far on But yes, on it's going depend to procedures. emergency somewhat ultimately more skilled is in so were elective that visits depend their to going are more result

Unidentified Analyst

think there's a share don't then? been So of per se you loss that

David Sedgwick

we to - think come don't I don't we No. have data that to have that conclusion.

Unidentified Analyst

kind this question numbers are my are just we on big the then given here? point because coverage an the second And think you last mean guys are should don't know protect and from you sheet. Is the to Okay. you quarter ex you lever want how thinking in strength and downside long just that on at offense ready and is for you the the about in to up you go the to that enviable about you've that of position. picture? it government, this Or I is? seen How third guys quarter of with talked the have visibility that balance

William Wagner

Bill. it's Juan,

to would probably, X. leverage where to time, which we - size has can I that range level COVID, we acquisition as as depending higher gone a yield the over stated down deal, opposed you the X given because look the to sit would of at sub today, of would but leverage get expect, more being the I we is trend over to because Xx the of our in time, that upon and it think leverage a

Operator

closing showing not turn remarks. any our like And to this further I'd any At time, questions. over back to host call for I'm the

David Sedgwick

thank today. call the on and for everybody, being Kevin, you, Thanks,

and questions, you if weekend, to time. a safe. stay any always, great As has to find us, have you any happy and know additional where Have we're with visit you

Operator

presentation. conclude today's Ladies and gentlemen, this does

now a day. may wonderful have You disconnect, and

CareTrust REIT (CTRE) 7 Nov 202020 Q3 Earnings call transcript