PEAK - Earnings call transcript Q3 2017 | Healthpeak Properties, Inc.

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Operator

Good afternoon and welcome to the HCP, Inc.

Third Quarter Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to of conference Finance like Johns, to now President Vice and would turn over the Andrew I Investor Relations. ahead. go Please

Andrew Johns

Thank third HCP's Today's contain Welcome results forward-looking operator. certain call. will conference quarter statements. conference call you, financial to

are any A the reasonable not undertake based detailed and financial discussion can no the Form measures of available in Report we press of expectations our do factors we statements has been to the to assurances included our reconciliations directly are we the SEC. forward-looking our most measures risks SEC accordance these in of these Although comparable with we that GAAP X-K Quarterly today Exhibit will reflected will on measures most an forward-looking comparable believe give Reg this in expectations also on financial assumptions, XX-Q, furnished provided which with We've with duty in our measures be risk call. measures filings any website. statements. In our SEC G GAAP in release and discussed non-GAAP update to We requirements. the on Certain be our the non-GAAP the filed with today, on have is met. reconciled

Officer, on have call the over further presentation we Herzog. announced Additionally, posted www.hcpi.com will an and now turn to Executive our with transaction. Chief at website Tom investor details President I regarding today's our

Thomas M. Herzog

you, Thank to welcome third call. Andrew, and earnings HCP's quarter

science important Chairman; progress are II, Housing third Director; life had investment with is holdings. Boston, FFO and the General timing RIDEA Troy remaining formal launch in transaction Executive announcement X.X% and Tom the agreement on an cash the portion remaining Officer; sales in Brookdale, we the by Counsel, as of UK This we're of and Senior room our Today, made our primarily with and the a a morning, acquisition will and We Brookdale an of creates guidance campus adjusted aggregate a of at sale the our for fronts, win-win our $X.XX I'll including the the then increased call the McKee, X% transactions. Q&A right-size Chief plan our Senior Joining guidance of midpoint, several Also our active Young, a McHenry. in Operating reaffirming take quarter of multi-faceted headlines me call and through to the on Pete Managing Scott, Klaritch, process today the for CFO. Pete our that announced to Kendall you due give you details. and the of available portfolio. to SPP Mike

following. the the the fully transaction once First, of executed benefits include will

For exposure sheet. are the times coverage and benefits to further our will long-term, HCP, we times, balance clear triple-net improve Brookdale and will path own Brookdale portfolio total EBITDARM the to of de-lever our to include coverage reduce a our EBITDAR pleased to X.XX X.XX

assets triple-net and and certain The eliminates the change Plus, lease and Brookdale, exchange, step SHOP leverage their assets. certain change CCRC simplification to all increase For managed now portfolio transaction owned parties. absolute rights covenants. HCP's leases. flexibility control offers both transaction right, in transactions sole received pool in in financial assets, underwater It their is exposure have around In may consent they we more our of rights triple-net which reduces the and lease entertain. It event rate assets, control, exit the coverage of to modifies future level Brookdale for any a company. of we entity for of and shrinks will a towards

Prior retain owned in full these to to we or a agreements XX quality equal upon or interest three we our path terminate management transition to XXX transactions, a SHOP remaining at will received of rights a these a now in fees. outside time of Brookdale to payment and sell Brookdale Additionally, change management we and control, years communities with XXX have any JV higher of communities.

we XX% today our from reduce to three our XX%. Brookdale XX% from and With these approximately approximately concentration actions concentration to will top XX.X% tenant

exact major sales, good the mix Although with we've still plan. have of contact and and operator a is in timing selection preliminary transitions, and process, been certain in operators

rapid. Moving our during the months intentional been past strategic on repositioning repositioning, our to XX has and

a were taken we believe long-term there steps we number to to the address, the Although of create were necessary issues company envisioned.

mezz HCR our investment, business, debt II, Four the we As the XX repayment sale discounted portfolio debt investment, debt, last of our of our HC-One investment. sale months payoff the debt prepayment sale you the interest yield sale significant of SNF ManorCare actions Tandem and last Mezz and the Seasons include spin-off recall, announced of high RIDEA XX% investment, our first XX our upcoming of or of the the the last mezz will quarter our of in and a during restructuring also Brookdale

the and based you our a into marketed will campus formal Hayden Massachusetts holdings garner which announced by addition our Lexington, with portfolio release, that Boston re-entry this science sale operated a have the have demand. participants be of Mallaband are Maria of on As provides the good and noted process Brookdale market; are earnings of to press much is of us our XX that launch discussion which a science number remaining communities, This the a of life of which assets remaining with life in consisting investment Brookdale, UK the acquisition sale XX SNF market Columbia widely HC-One. and a in II transaction, separate may to of in release exposure; RIDEA in including Pacific, we morning will

after BBB-plus our minutes, goal pro a dividend. as flow transactions quantify adjusted a few basis, due We cash to in quarters, in of lower-quality non-core concluded on nature further rate currency foreign to debt the in strategy. and a assets of sale completed, net the FFO result with to we to rationale, of our QX these XXXX. the note, times is explain assets use X.X will in and the conjunction And forma debt, risk, QX coming Our reducing sale were dilutive result of a leakage, over be and that considerations, cover will to Of to run the Also, metrics. reduction these Brexit estimate transactions, Pete have we tax of as completed which or once in to will re-establishing majority debt-to-EBITDA de-levering and ratio. these expected consistent debt. is higher-cap the continue solid prepay sub This further will of with our proceeds base a we

Turning senior our to platform. housing asset management

of Brookdale initiatives we to Others team did and California location-specific assess communities. those of job disasters natural note, September been of performance. which senior in were Within very to the outstanding of evacuations to accordingly operationally our amount wildfires. quarter, process and identified our first a and the with challenged our our property hurricanes care performance a side folks, issues housing investor in went platform included is these appreciation. dangerous always has and safe and our a me. planned thanks incredible initiatives and asset an which extend Brookdale way I personal has to the number put are which During for our systems. spent our additions recent team inspiring. senior presentation. we're described improve and plus Brookdale an included our by infrastructure number were where Their in known our developed There were was enhancements This causes and These issues. team community heroism side portfolio On keeping the of improving during the and important management quite to period we future certain sales of a or team accounts various want those working to of two above tremendous members In to unusual cases, concluded time root at beyond. we and HCP, the And to personal of

blend grow outstanding memory Francisco, does SHOP Diego Our San and benefit senior Boston; coverage; portfolio a own three care; baby irreplaceable bumpy of like triple-net markets from coverage. forward? XX% without three look there reimbursement. are housing of a MOBs, hospitals peers life do do. asset with early We'll and AL the times quite but the completed, our ride of handful to in differentiated going but pay After sales hospital our roughly segments XX% major We like San a be and in we will What the HCP portfolio, of plan today an intend and our XX% and not half office, we with will in with between future for diversification higher work strong science X% in IL, average be the life boomer segments three of is from senior we and specialty still housing. of assets X.X MOBs quality foreseeable XX% campus and are and today them with future. good to demographics, but half the private government retain on with EBITDAR these encouraging high All science results announced the transitions primarily to

no we'll holding. mezz international or debt, have Of remaining course, SNFs,

through that team funded As maintain to growth, funded externally of couple of either accretive capital will all updates. but are when we'll A underwrite recycling our but in three through to actively deals to or we continue sectors, future growth, such core only discipline deals NAV.

Operating time forward Shawn updates as science we Johnston Chief Tom our due new life also to Scott Brinker Chief Klaritch to MOB in Investment me the appointed together months, team, Officer, was our report Officer. Chief to During to known leadership at two well we finally, senior Officer. important and team our UDR. working him. joining look our And, promoted the Shawn including and is Accounting to had was to businesses quarter, HCP

get CEO Andy together. his the at who transaction Lastly, appreciation many to Also, sincere to team to that thank of for us and bring this for this collaboration to worked Brookdale, I'd my express tirelessly like you helped months our point. Smith, team cooperation HCP pivotal and to

let Pete details more Now to quarter it on and provide the transactions. to recent Pete? turn our me

Peter Scott

with Tom. third announced will start this I a on the into Thanks, detail we transactions then go of our results, quarter review morning. and

year-over-year same-store reported third of the NOI share For $X.XX quarter, cash growth portfolio per X.X%. total delivered as and FFO adjusted our we of

on same-store rent by detail more steps. into reported driven X.X%, our cash segments, medical of major NOI Going growth primarily contractual office

driven For delivered leasing activity. X%, and growth our cash lease escalators NOI portfolio year-over-year science, life of same-store by

driven line For benefits timing, the in This our which performance rate some quarter partially X.X%. in our decline with SHOP grew the same-store strong expense NOI senior was occupancy. housing of expectations. cash a was offset triple-net growth grew portfolio, by SPP X.X% for and by

growth. For to XXXX expect we guidance, expense still X% X%

related charge charge expected is costs the adjusted. damage million associated $X FFO a offset and the after net recorded we to hurricane. been back preparing charge quarter, to of property up proceeds the for During with storms, primarily as by has tax. due This The cleaning and to insurance added partially

expected is As of $XX one transition asset it quarter, expect assets sale net the triple-net November on making million in either million. remaining with plan pertains portfolio our on housing that on same have or senior portfolio, two forecast $X the gain million buyer close recognized during to the and XX XXXX. $X we to and another of We're a we remaining early two in on and announced the proceeds which asset balance closed a good Since of in Brookdale sell previously have sold to progress $XX quarter-end, gain. to for million and

same-store these As on it one-year these based assets expected properties X Note on remaining on will transactions. million to these sales the properties, we XX and of recorded impairment their will our removed SHOP from triple-net interim charge $XX pertains from XX to November leases when be expire proceeds transition an population.

and align our for the joint is expected a estate. definitive life Massachusetts. Hayden transaction Properties, high-quality in with to we activity. with the science re-enter with Boston Lexington, operator close a a a developer, King owner with campus December into immediate in real Street HCP suburb assets in is Hayden market entered the development October, Boston of million. local acquire Moving and $XXX HCP allows Campus and operator Cambridge-based XXX,XXX-square-foot and venture acquiring scale developer. Research In investment to science to The acquisition of The Hayden located to agreement life

cluster-in-a-cluster was waterfront price Sierra The office South development complements HCP's life building closed science strategy joint markets the an science XX-acre Shoreline The foot we seeking the in future our venture one purchase is purchase on of being campus. adjacent in In of XXX,XXX to a build $XX our approvals additional Court, San XXXX Point. on site, XXX,XXX Additionally, core feet square square million. Francisco. and August, space life to

square Cove XXX% into service AstraZeneca. This Finally, Francisco. building we foot placed South a is The facility at San life in XXX,XXX to science leased

Regarding the our Tandem close. million $X purchaser in a towards working we non-refundable is Loan, deposit have Mezzanine now end-of-year an and

achieve balance offer. activities the the and our We our The low times on capital de-leveraging bond recycling reported our although leverage XX% to financial for year-end the adjusted actual repurchase XXXX to track onto sheet target supports the on a tender quarter-to-quarter through debt of $XXX X.XXX% plan, notes XXXX we numbers to from of million timing. the Moving fluctuate and completed of may net depending range, quarter. senior remain mid-X to in XX% EBITDA tender

pricing LIBOR unsecured $X new has and maturity a includes XXX a revolving options. date plus We of line credit of two extension new The also facility with October all-in on six-month XXXX closed points. basis billion

onto Moving where midpoint NOI by XXXX We're X.X%. X.X% our full tightened company our basis increased from reaffirming Segment we and unchanged cash year total to to minus guidance X%. XX range remain growth our guidance. of year except points level SHOP X% the full forecasts SPP

SHOP trending our performance updated of our exceeded guidance last the side are quarter upper we provided quarter Third and range. towards

to growth purchase from it's SPP rebate. reiterate the quarter they're year-to-date year. evenly XXXX in NOI important across last of cash the disproportionately in rebates year-to-date occurring fourth occurred rate benefited But SHOP X.X%. but favorable more These is , Our timing volume that

full our HC-One, and per per as to such $X.XX the adjusted, has Brookdale to year timing per of $X.XX from certain portfolios. share. proceeds benefited range as year Performance increasing share $X.XX FFO, $X.XX are to this Tandem, from impact We dispositions share from

provided FFO can disclosure, Of page note, which as non-cash call. the of our recycling guidance we segment in guidance will well on and XX you'll Additional SHOP on XX purchase information as I additional reflect our the this does found further supplemental. not have NAREIT disclosure more cover be of on And XX rebates, impact notice, transaction. detail capital later accounting on Brookdale pages

a turn attention and if to presentation our our you me to on providing along. the filed Brookdale would I as deck let slide We've an the my to website will exhibit posted transaction. morning Now, like now follow additional slides refer X-K to this that detail. from

it, this spend transactions X slide won't Turning already covered titled to suffice to it I slide Transaction of but Highlights, that stated since Tom much believe time say of much our on we these achieved many objectives.

series X, Turning to Brookdale related announced a transactions. slide we of

initial We've First, consideration total of million. to sell Brookdale a the transaction. $XXX for Brookdale agreed six assets

$XX we've stake ventures addition, acquire to million. joint agreed two XX% in In Brookdale's for RIDEA

to to triple-net and right future We assets Second, XX the granted the these XX agreements and third-parties. Brookdale to terminate We've assets SHOP transaction. management on leases on leased been assets. or expect transition can sell

Brookdale Importantly, management to waive agreements. has fees agreed these on termination

transaction terms. key other Third,

triple-net $X we will annual spoke rights Tom In million XXXX. master one a also addition January leased reduction with about, lease consolidate into X, effective along the providing other portfolio to rent the remaining

at in Lastly, Pacific owns to II page, we've Advisors. reached of agreement communities the sell to RIDEA investments the Columbia which our XX Brookdale bottom remaining

You will January recall, Columbia RIDEA interest sold we in II Pacific XX% initially in to XXXX.

transaction. slide bifurcated have initial X, to transaction between and future we the Turning the

or within sooner, For although, timing. can close these no the to we assurances on provide on targeting course, months we transactions initial six transaction, are of

result in generate at is This sale to of the the blended cap in of million XX Xs. high expect stakes. out $XXX Brookdale total million, their We assets approximately XX% purchasing a rate net cost of the which of $XX net of proceeds will

XX% transaction, being balance targeting of range and are million. proceeds between assets to the $XXX XX assets the to expect of this, rate to of we X.X%, with sell cap XX% between Based total the on be transitioned operators. estimated For $XXX new to and we future million the to X.X%

sales the of operators. versus Of mix course, depend on will of the actual asset to new transition proceeds amount

We course both throughout sales the transitions expect of to XXXX. and close on the

XX.X% portfolio relationships. laid concentration XX% and XX reduced XX of SHOP X.X%. the and X.X%. into our concentration. triple-net The portfolio forma pro result decrease impact portfolio Digging each our aggregate, decrease and slide and of each Brookdale total will by AL/IL, forma to approximately concentration assets exposure and we've relationship, a the our of in portfolio portfolio out our Turning X, will exposures assets to assets In forma assets XX leased of will within be result of one current pro XXX current in significantly by concentration pro

Our CCRC JV unchanged. remains relationship

a Brookdale slide fully now getting XX%. slide key and we calculated get Post of our way. our been am to reduce QCP but it to Brookdale have our this proven I done. Turning forward We've increased further record a that deals track and methodical that in highlights to we to diligently in our to exposure, a working pathway is X, reduce exposure exposure to have aware done. We're execute confident ability spin-off,

our right-hand remaining left assets. key In a Brookdale well-performing we're with can side, performance the On metrics. see assets well-covered triple-net, and left a you In we are XX portfolio. with AL/IL, few

Moving more job remix do core portfolio. top pie science the on evening will on consistently have the life capital a and to discussed of X, much three segments allocation and page We've MOB slide in the concentration an amongst we chart our segment. balanced out substantial excellent now to our showing the the

we with volatile see expected from improvement business. investment adjusted can bottom our more of at metric. exit you to EBITDA the the debt page are loan done And our mezzanine the in Additionally, net the nearly

a and net broken proceeds transactions of Since We on from in X% rates with impact we've range them blended cap debt of each to primarily these transactions very out dilution. rate, shown earnings transactions X, interest rate. is slide to from these the interest a expect to used financial the the incur outcomes. on based of these potential summary excess Moving assume of blended a repay are we basic

run see, $X.XX As aggregate to FFO per you rate $X.XX share. as to can adjusted is we the incur expect dilution

dilution as For the initial FFO approximately transaction, adjusted is per the rate run $X.XX share.

dilutive the the addition, including $X reduction. In the million initial other from impact transactions assume rent adjustments,

adjusted rate amount important of share. from on we $X.XX impact the dilution expect a are will incur A two, the not transaction, of transactions which $X.XX FFO mentioning. share, to transaction assets $X.XXX de-lever. as cap amount leverage-neutral rate FFO additional future our XXXX is achieved. run dilution run one, previously do the our the sold rate future The run dilution expect dilution on adjusted per on to rate to our we important the material a as the Number few points FFO per discussed to run worth from is of adjusted amount have earnings the be For an depend of transactions Number and ranges On and distinction. from these rate as will basis, which decision less based guidance. any approximately

now turn slide you me Let to X.

our we as page, share on share revised our end $X.XX end. raised starting earnings by the per and adjusted capital during the from various out our to $X.XX XX per last recycling the We today. increased Working on of guidance transactions top point on this activities the laid lower so, impact have announced of bottom by from all the higher full months inclusive which is or FFO

footnotes recycling page on capital the of activities, XXXX yield, and our quarter review supplemental the XX and acquisitions would our our of dispositions encourage which to I details third updated quarter. amount, by For timing you

schedule corresponding the a have we of addition, by the and also debt quarter repaid we rate. In included

earnings closed that adjusted of the for which expect first Brookdale and the result of had the on which the end of the impact the billion earnings in per reminder, $XXX close the sale the a $XXX which run closed XX our investment end million end As have this debt million share rate is expect most quarter, and million FFO $X.XXX which at as the quarter. to $XXX The of are $X.XX quarter, at at we that XXXX do of significant our portfolio XXXX to all repayment going not agreed HC-One Loan end of dispositions second major sell of Tandem fourth the of forward. we've the we've

The $X.XX to on dilutive page. of range the impact to per Brookdale Moving share the previous $X.XX transaction. matches

in we Given partial benefit close a the the of these will continue have are time we future sales soon XXXX, period to for middle the average assets. year to on own

although, to have the sales, up these For stated, complete. initial assumed closing, could we as months X a January to six take we

as option July. on to expect disclosed, purchase Genentech $XXX Genentech the Moving we be previously UK, to the and exercised million in

this reminder, a cap is an purchase As option X% at rate.

$XXX the yield We transactions expect the generate both On to majority an million in these an and after-tax reinvest $XXX at of to of million the to in to approximately to estimated UK, proceeds of X%. X% X.X%. acquisition proceeds blended we from use of yield intend

result, rate At As we've share aggregate the is adjustments a half for run XXXX. online. impact in page, as year-over-year projected positive our additional adjusted developments impact bottom from growth as the a very per from FFO that such these both coming about impact placeholder XXXX included the NOI felt transactions being of of and of the dilution of $X.XX with

and that we're turn The our announced in pleased time. time. portfolio a on In questions. over the earnings full summary pathway issue importantly, our we year at while significantly our we our please to improved the of believe overall quality reduce be a balance transactions the to us strengthening portfolio and provide call of guidance with fourth our relationship that, quarter reset with Q&A, open upon have details that provide efforts simultaneously completion We successful And, exposure, And, short the sheet. today period any call will before will for further with our made operator, them with actions, near improved of these have will additional portfolio. our in our we complete. remaining very We progress portfolio XXXX our line and on Brookdale repositioning

Operator

the begin session. now question-and-answer will We

from Mizuho Securities. Our go ahead. Anderson first with Please comes question Rich

Richard Anderson

on Thanks this. all congratulations there morning and out and of good

So, rate $XXX a Pete, billion you applying In acquisition have XX% and value X million $XXX or I a presentation, on the a of disposition interest about should divided value if are that this implied slide you question cap divide by XX% RIDEA million the I January, a interest $X.X implies your a you XX%. sold to say. is like

So one can as kind for larger the to you much of other? dots why connect those so was me than

Peter Scott

Yeah. January actually Rich, I if you at think transaction, million it valuation. back $XXX was a look the

think II. at I XX% just And in in a lease. place $XXX of a Brookdale. We triple-net some previously that we little million. actually sold it owned bit time, of had XXXX, RIDEA around put background actually on stake debt portfolio in this a We to

this we it when million which about $XX there. million January, XX% $XXX $XXX million of It's When loaned million this you debt was there, purchased we XX% million back of remaining ownership of piece we $XXX JV of think our that in So, equity equity. into stake we're our selling got $XXX and call million of is debt approximately. now, and the the $XXX CPA

receive here, given received million. just from minority to used $XXX up It's that exit. received. selling the we total is a in we're $XXX bit is valuation page it what lower as of rate was think So, million, about January proceeds this portfolio, be $XXX with a proceeds the upon this was come the around blend million on This proceeds today cap little to total which stake. around when valuation just we we've The will XXXX it's on a here we

around that and high-Xs And that so is on low-Xs for stake for the X% the is the right blend stake the it we page, in the sold was but around January now majority blend X%. and

Richard Anderson

Okay. That helps.

Kendall K. Young

that I to Kendall. to of would the of that add nursing assets NOI roughly XX% skilled those units. is from This XX% are

Richard Anderson

company. guidance. to guidance. on But how Okay. And you the back second going not give profile business that just the is by and going I'm or Great. in from and it XXXX know impact then XXXX. definition theory another point a from just of about When thinking like, to maybe course I'm think ask to we good in $X.XX get just with of kind you. kind disclosure you're that profile can to Brookdale I incremental that it? a I the it's for to a the XXXX all good of of in be on overhang, the – XXXX? XXXX last not I and normal mean, regular way we Is to – think that. $X.XX guide – about dilution would Is growth page X back question, you're XXXX timeline then of growth get the Thank here,

Peter Scott

Yeah.

Richard Anderson

between difference The $X.XX and $X.XX.

Peter Scott

And Rich. here Yeah, page - deals now. that's it these the out timing we when on the close lay did the way Obviously, of

Richard Anderson

Right.

Peter Scott

supplemental some little more understand FFO, the – a – impacts But would a it. some to we normalized at rate on from to and the the disclosures and Street impact thought bit of XXXX now items so these you have an that growth we have receive would can recycling on the looking our can of Will capital better. though understand guys be continue to we added disclose as

Richard Anderson

Right.

sooner done $X.XX it XXXX, X get and then than you're you get maybe dilution of then the if $X.XX less... or transactions Brookdale of So July from

Peter Scott

In (XX:XX:XX). XXXX, yes

Richard Anderson

Right.

Okay. sure Yeah. I just I Thanks make want it. to very understood great. much. That's

Peter Scott

Rich. Thanks,

Operator

is with Markets. KeyBanc ahead. Our Please Jordan next Capital question go from Sadler

Jordan Sadler

Thank you. morning there. Good out

saying the to just CCRCs. in little regarding I you remaining exposure is were think there these Pete, bit complete. specifically dig to including portfolio the transactions, a with the your Brookdale, remarks wanted in So, largely set I

Thomas M. Herzog

we've as portfolio And stand the to that Tom The feel This retained. let XX% very We where is today, good me CCRCs. Yeah, about we Jordan. Herzog. we the to comfortable speak specifically feel with that.

the the been by last had there going in. That was perspective. but We carry look was basis was quite in recognition. during on those that entrance six that due think for that at to the loaded And the or them have a our looked at have account was the that would also we determined going to something assets nine months. period There the be As quarter, economic they actuarial from like forward fees over an minds an not accounting you bodies change last punitive. longer an to accounting income to be back-end we it

adjustment made that no that away. sense went thought we So,

So as at economic disclose we look don't worked when we we hold. well which for very growth, carve both may future to fees least the entrance come comingled in felt core we be a our out with And forward. we this at going us back the going with the at is that how look portfolio, a they of as SHOP was get and worked CCRCs we and in first with prices, SHOP, same-store determined quite should holding foreseeable perspective separately them that from for quarter that that But an so Brookdale, that confusing.

Jordan Sadler

Okay. And guidance. back to coming the then

guys $X.XX put impact, the rate deck here a nice You this $X.XX. is together indicative number, X, page I to financial metrics. good believe But and on some have the total an annualized run

$XXX The So the capital expectation of including $X.XXX into this exposure is to activity net is up to terms of and reducing even that then recycling only impact basically new million all de-leveraging annualized? the of FFO Brookdale assets. together of taken in the

Peter Scott

correct. That's Yeah.

basis, of it on $X.XXX less about mentioned I've dilution. in as leverage it my prepared would neutral Now, a be remarks,

Jordan Sadler

Thanks, guys. Okay.

Thomas M. Herzog

Jordan. Thanks,

Operator

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

Juan C. Sanabria

kind seen other of maybe non-core are there in I potential some any you with that was now pricing asset timing risk what of the part around any kind indicative for of Hi. Brookdale we've the as planned today. just XX assets, if and and announced and that slippage color that's and thoughts of that of sales hoping original more

Thomas M. Herzog

as Kendall why. don't we indicative think Juan, and provide Yeah. it background will the is to

Kendall K. Young

Yeah.

ones agreement, at those the, in assets, low X.X% cap sale the – under sold we least call around X.X%, we have or that are a we XX so and purchase Xs, are are either it, on rate. So

those that to those our and So line assets out that's but of that limited expectations. were evaluating fell And with in them. we couple have come that out range. We price we're and had do remarket the was five those to we same on go properties with those the with in getting a and what may

by be. Brookdale had they disadvantaged the the assets been So would cap thought we are and feel that rates that what hasn't we

Juan C. Sanabria

new operators of or the potential And out or seed maybe of a as potential host are a venture that little grow how a are strategic to an Do transitioning and about different about that far you could want amongst it use to options? a you new vehicle opportunity? to talk thinking go guys to like some operators, exposure then assets acquisition Okay. trying as which these you or whole Brookdale just few then as split you bit kind to and

Kendall K. Young

Yeah. This Kendall. is

we that operators to. of handful a the transition identified would we've properties So

for minimize All of risk. to and do of that HCP. to, to are that operators do transition current known we most are We them to transition the them operators assets us of limit number want

Just that with that processes, half We've operators call including systems year, conversations. generally, past operators track conversations records, track we're have on operators great the and after local transitioned focused that more on important. we've environment. performance importantly, and over have few a as market are strong a strong year in transitions. And, will we most realized assets knowledge today that successful and have regulatory that's this we record is starting very something the had already We've focused the

Juan C. Sanabria

Thanks.

Thomas M. Herzog

you. Thank

Operator

Please Rose ahead. with question Citi. is from next Smedes Our go

Michael Jason Bilerman

Hey. curious. It's I'm here. Michael just Bilerman

think, comments bit mean Tom, more. chat drill gave a can the little today a annualized. I you're down little of you Maybe in you running about opening bit $X.XX a I your dividend.

and at take of cash the and and you're of second all the off you're just probably And at a CCRCs for $X.XX $X.XX, you underwater. think You real $X.XX a if of aside least putting $X.XX. sudden then curve $X.XX adjustments, not

pretty that And better recognize on I sheet balance put you're portfolio, dividend. is if underwater I to all recognize tight, not growth in you shape. but darn the the of together? be do some Now in going there's that sort How

Thomas M. Herzog

you question. the glad Michael, different I'm it. than Yeah. work bit a numbers that. good No, asked

XX%. current the at at be coverage, we'd So about

growth, to. If start you cetera, for and look with of course, going go The to you page the you impact same-store run wanted the the rate X impact, et some development get is if at and you to benefit deliveries, of – then XXXX XXXX. XXXX can

in near let's recycling. to and like that blue XXXX growth within and things And produce to least not Brookdale online, the information capital definitely same-store year-over-year are developments And X. spoken cetera. should at are been the all on the add to already bottom includes dividend that that the a you see side assets on just show $X.XX got up range. $X.XX then coming page those UK. then in the get some $X.XX, we we That coverage growth, solid the the stay of dots the XXXX to which be connect we anywhere at good, We've So But a provided out or of had the that's you people right-hand pieces XXXX, up, XXX%. got the et a capture against we bumping portfolio We box transactions provided? – Genentech over

of we've room got within So plenty that.

Michael Jason Bilerman

Is net that - positive Is blue a that box?

Thomas M. Herzog

Yeah.

Michael Jason Bilerman

a Type be - of number? And would positive

Thomas M. Herzog

Yeah.

sorry. impacts prior go How Yeah. that many people we One if that gone we as things the with did of from road oh today investors showed you presentation, our Michael, is from to we've page earnings had investor this, we the – calculate a shows. through we – done various had can

so it that's page the and X we've details it's you in and presentation $X.XX. it, folks through can prior of reference the walked Just that

it's has box is As Brookdale. you down blue And and rest that go the of added stuff that's important. it, been the in, through all primarily that not

we couple read missed today. folks a when been think pieces I have that a couple analyst by of might

types But operating the we have some because in items I we missed. annual our of not online, we purposely didn't could those – guidance of be to want it yet, this, think picked middle of not same-store and growth, coming because have provide up still we're development plan. So easily NOI XXXX in

So we'll this absent in those that early schedule purposely. is from but February, be you bringing now, numbers right

Michael Jason Bilerman

Right. interest those be could right? come and negative they the Well, leased online, have items, be Development know, could online. the you Other when assets fully right? not a looking coming back come items at cap item, may you never just

You break then not out same-store we asset sales. the something a And negative on annual the life for science. How pool? additional capital you do all there's know, have you recycling, in else know

box history here... not negative, right, is crazy blue us the maybe to it's you given that without So positive, it's telling right, that think

Thomas M. Herzog

where hear I going. you're would say I this.

on As the reset through we and identifying pretty different purposely list that set from that items. painstakingly think you things forth this I good list job you page, can in magnitude those said we of identified of at And look gone that have done see portfolio. we are our items have a the we non-core to

down that's bottom box. pretty to box, a So when get you that clean

in. out NOI year-over-year that already growth, the already we've mezz incorporated right-hand the and speak to the and that blue Genentech for side the So we debt. stripped That's UK instance, been out, We stripped of lease on box.

is life in housing our assets So other have hospitals how you senior solid about there science talking developments, The much coverage. a have than within on, performing from to times for handful through of our that and portfolio good and think And we're Cove. of left portfolios six instance, MOB, deliveries

you yielding that range. X% what that's know in So

- box find So that I think probably if you that is look that, you'll at

Michael Jason Bilerman

It's a heart-shaped box.

Thomas M. Herzog

Yes.

Michael Jason Bilerman

you. Thank right. All

Thomas M. Herzog

Yeah.

Thank you. it. You got

Operator

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

Michael Carroll

How how a to want markets Can Boston? plan to do portfolio on recent the you going many about and Thanks. this forward guys talk you life look do different little science Yeah. in deal expand growing into? bit you

Thomas M. Klaritch

Klaritch. to there life our XX%, XXX,XXX existing which it's additional That yield the an This so the are that of far buildings, Today, at they The Boston, parts. about underwriting line square on that XX%, entitlement feet. build process. is up in will There's assets. with in will to X.X% deal currently on the potential XXX,XXX bring occupancy deal those There's square in along but feet. we with discussions science potential as indicated, Tom pretty existing two comprised we're two is tenants two leased

through working early the approval in XXXX sometime that on to hope we and timeframe. we're that get So

see we're King on They're we growth to there, Properties Boston a with them our is Street King the opportunities can think be developer Street partner. We and a science the long-term market. moving on of great deal. have they're and with forward. ground you life we owner As partnering in the going boots assets think

Michael Carroll

or to of you are targeting in also the just the grow suburbs? focusing area And right on now Cambridge kind

Thomas M. Klaritch

suburbs. the like really We

little companies about about are market. There the we're a Rents Cambridge, brokerage X at the $XX area the for for a square Cambridge In kind new higher, growth. get opportunities There's been feet demand easier expand corridors, the hard XXX to the are probably the million the suburbs, into that hasn't and square out foot of seeing a there a the trades of range. If in cap square rates you according very in It's to look the $XX. $XX foot mid-X% are versus communities. to rents lot in. in

those a XX-minute like the So close really to about markets. really drive Cambridge we XXX. up market, it's XX that to And Route

great area expand into. So we think it's a to

Michael Carroll

Great. you. Okay. Thank

Thomas M. Klaritch

Michael. Thanks,

Operator

Stanley. Our question next from is Morgan go Vikram with Malhotra ahead. Please

Vikram Malhotra

question. Thanks for taking the

color did just can't that assumptions over sure want million I'm at in $X give sort maybe I you know rent have more reduction. maybe to give number? around Because but the another position So assuming give What adjustment you you us some reduction, you a where a making? arrive growth? are XXXX period, guidance, don't you of underlying three-year be what rent are for you to how you or can

if useful. they're what sort be broad, can share would So some, you even assumptions, of it if just

Thomas M. Herzog

transaction, one advantage be We to Vikram, fairly to committed win-win it wanted good other. the that And that would over glad transaction seek we the to scale. both a win-win together be question of it. asked an the that's party the seek we things a that with is was the intent I'm Neither the would transaction for and day a to would parties. very balance get Brookdale, deep When this you from within we put transaction. first

So the the exiting At a big we provided essentially time, $X all some income they was ancillary for in equation, And provided calculations the the did we year detail that, there's of big within to they than we we them looked per a same that. was in million And and and to hear. and difference that. value there present at the that and that's calculations, will fees equation stepped those advantage. want they underwater CapEx management away for consideration item. and – team said that done their lot and But when Brookdale that's consideration more us from balancing ever and when leases,

would leases coverages improve we the that that of that reduce at thought time. work same had a make our operations sense Fortunately, to we couple and rent, into

So transaction that balancing was the within scales balanced. keeping the literally

Vikram Malhotra

assuming helpful. just because just of you sort are it's you're assuming you that'll – you But Are more I bumps? longer-term, in just of of can still give getting rent even be if sense this just sort mean, through just even line conservative with supply? something all standard some growth us

Thomas M. Herzog

Yeah.

are it If us coverage. you the times leases those of a with to bumped what X.XX part that. did triple-nets, obviously And we took

and – I'm not coverage. talking point EBITDAR talking that at So EBITDARM; I'm

these So are at well-covered very point. leases this

rent coming So it some was that wasn't our in this. behind further reduction minds

Vikram Malhotra

Okay. And the bump...

Thomas M. Herzog

Did I properly? question the capture

Vikram Malhotra

are No, fair. changed what now well? bumps were they as you've sold the as the have Yeah. for And bumps still same or that's the

Thomas M. Herzog

No, the bump the stayed same.

Vikram Malhotra

ask just separate can And question. Okay. one other if then, I

and the an of You now sort office portfolio to that of more CapEx. acknowledged there's element

have maybe do of to portfolio team a ago you perspective? people. bigger you to the still some in or more to management internal of build steps this do more said asset the requirements What that which there's a are remember You'll now now to a to quite of you bit? need changed CapEx you from have get two the need internal terms system, do management portfolio or year monitor I outlined. needs What you've the

Thomas M. Herzog

of it to – question? and couple a around what to words clear, Is office Was but from were going the ask we perspective? portfolio asset are you we're is was Vikram, management actions relative housing our I'm I the that an that housing, that What for your rebalancing of side question senior taking? senior I important. say missed heard

Vikram Malhotra

leads, you Obviously, cetera. have et now. focus tends both to requirements. have generally of CapEx Office more maybe load, greater on CapEx kind It's more

from to be would that a your understand tool internal do from something management. a from like team, and just Because mentioned trying a to you year you need systems and ago focus I'm a on? perspective, it's what do process, So here

do I'm office, now you've you wondering, from more now given to do need what got on? So else

Thomas M. Herzog

Tom I'm share this going to with start the question and I'm to going Kendall. Klaritch and one actually

balance we office three the of We and portfolio science, and MOBs want life have, office senior science. housing, and segments of expressed time, each that and becomes larger, to the to over you in life MOBs, key obviously out the

for on with a management had, period portfolio. MOB systems, very Nashville portfolio asset asset strong in time, have cetera, our working long et of We management And senior teams, we're on systems building stronger within housing.

time. Tom, strong MOBs how it, there think you housing. talk But of size CapEx senior to been you've moment because Vikram's So, a for just and especially long a about about maybe let's turn on the question with it the on Kendall to

Thomas M. Klaritch

Sure.

for our have looking all consistent making that use internal at internal new at and out other one things of really look and you we and get three them If in office segments more monitoring systems across processes the we of my benchmarking that segments to will is that the as rolling systems, efficiency there. medical be of We'll the today across internal role start each those – to systems exist opposed some performance. in great

housing senior going a in move of across and that spend Looking at appropriate can in we office funds been some capital. where life lot can monitor medical science real-time the spend, we're area where to another the and and to we've spread more we that forward. really best implement CapEx we doing that's that tools And out as

Kendall K. Young

Yeah.

the XX management the we the He's and management. early on he who's a space running got building there's hired the and elements also where actual was the responsible company management years then in his setting and housing was company. in senior team. for with career our also an up FP&A On asset It's an And system. I team the you then plan housing look individual to senior if team, for at the a couple side, think, asset

our the and analyze at So he onto portfolio, in that the helpful, especially has We've forecasting. team we has performance senior gets our we how very experience that hired have systems. very to as look our And housing others and been deep that experience.

forward. that we include building asset how management We we it on will CapEx, mentioned how system it, are an going monitor things analyze that Tom

we our asset And so are improve function. management to on continuing

Vikram Malhotra

guys. Thanks, Great. Okay.

Thomas M. Herzog

Thanks.

Operator

from question go next Street Green ahead. Knott with Michael Our is Please Advisors.

Michael Knott

results if there more can detail and the the OpEx talk of future you Hey, there and and environment guidance on occupancy Curious the take the about your in also guys. supply pace labor. SHOP in and losses and update

Peter Scott

Why I million our start point midpoint. points give would Michael. basically with basis points $X his Yeah, that translates basis And I'll that? XX supply, of I the out have XX raise NOI. did into SHOP don't just But input. Kendall guidance then we for at

Hurricane additional Brookdale. a of dollars. So was Harvey. as a in a the an really it's some occupancy, But uptick partially also of result tremendous did of well of we slight not as as see initiatives in what improvement saw Houston result a amount We with

we one it the us thought be the as about X% in we actually trending uptick bring to and at expenses end expenses, midpoint confident talk had our at of turn the the perhaps some quarter. over to up that up the don't the we But overall timing of main large, supply expenses expected in the So that to August said costs of REVPOR some pretty strong. I an to last for now towards What and favorable we that from for we And look end July September of we're which and some had think as and a was our was about X% positive we range Why continued saw we by will forecast down year. well. range. well. upper declines impact still Kendall right was for reasons and quarter, issues? as is range And up this And tighten really we're

Kendall K. Young

Yeah.

see trends. starting with some what So are we positive maybe off

reached costs. started conservative, part due since also the level absorption. If lenders the this of quarter the the quarter, you in in this since are starts peak tracking higher quarter look is new rates lowest at being in We a last to fell they and to think was Absorption X.X% the basis, to rolling fourth four on which level due quarter, XXXX. more this rising development highest last NIC

to absorption levels. markets. We see in the and moderating about pretty demographics to good more we feel increases longer-term, drive supply historical So, continue

the most Looking XXXX. and and to data, through XXXX XXXX from obviously portfolio new on deliveries in elevated the supply off fall by XXXX the based occupancy. impact the balance in of seen evidenced as We've through NIC new remain of will our

that have We facing plans new for readiness properties are our supply.

So focused is adding monitoring we're resources. And on investment and of a CapEx that that. sales constantly lot

to transaction, that really our those If last talked to our of Houston, we that's property But some assets look the at we're of you the of looking to or they have continue to as the to those also look great XX-minute of we've markets with performed have look of And radius in will some like about of that new in in new a number had, is think have where at going we supply at new there performers properties supply. the face a if and our well locations and you bottom we perform. then quarter. excess is that lot supply A averages. faced at markets X-mile have look drive your well, lot due see NIC And at selling were Brookdale how supply. time you

Michael Knott

on can it, little time, a wider. bit Pete I Thanks. have Okay. you the RIDEA Xs sale Pacific thought now. about last versus was last And you would then the maybe, Xs Columbia high time? gap I of Tom, low touched or talk Pete, that know, economics

attribute Just deterioration sales overall that between the in transaction. sort senior discount curious that that theoretically the in you versus if first asset market for difference cited could since pricing you minority interest of an housing

Thomas M. Herzog

I'll on what said. add just to Pete

of some have to going You're both.

minority but things perspective, good is impact turning corner some happening an really interest. right some a are have and some I deterioration. We value. seen probably It's the now, on that think, Brookdale From operator had

would things. I say So those it's three probably

Michael Knott

Thank you.

Operator

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

Jonathan Hughes

Hey, the quarter. taking question. on guys. for Thanks Congrats my

And area, construction under non-stabilized of previous Just units to extension a at one question. inventory, and me, this, housing and senior addition portfolios looking this trade bit the But including in the at is looked you trying the have I'm within an the for Michael's to of said construction? if to new properties number kind right really of think at just XX% supply. under impact this guys of look nationwide. if is almost NIC the and this you look understand is this at way has

Kendall K. Young

is this new always – monitoring monitoring competitors. always are we supply and Look, Kendall. Yeah. our We're

into at we're setting And factors those investing looking so, we rates, property, taking money when in when we're a consideration. are

lot is And new of So if something then as going and considerations. has our looked Brookdale we which a to into I sell, determining in which big our that at Brookdale. occupancies, face we which stated trying in have we there's was would that a portfolio also said, transition factor to that's into What gone asset want other out do low supply that's keep assets assets we market which sell. with when just properties a assets we to figure and our assets you want to factor to that

Jonathan Hughes

enough. Okay. it That's That's me. for fair Thanks.

Thomas M. Herzog

Thanks, Jonathan.

Operator

Our Please question Markets. with Kim John Capital BMO from ahead. next is go

John P. Kim

morning. Good Thanks.

that This But anticipating are the dilution. operators? your X happens to to to sell future you of back transition don't and to the assets of to assets going you XX sales, Just XX% anticipated you're what $X.XX presentation, the assumes sold. page $X.XX XX% other

Peter Scott

there's mean, this on NOI looking revenues as have value come they're at goes transition those that make sure up transition we're is them closely to in and we as smooth know to we on also good And they to no And you sure And who's important we we've as as would work with list good want I that doing. would I model operators a very system. no a real they them possible. working very, with, smoother to, construct are transition going side. stay are what the within assets drop-off think, to while transition you with Brookdale that of look because They operators the impact. actually or Obviously, the here Yeah. transition. make experienced

Kendall K. Young

Kendall. is this And

there's the versus upside especially we're I the selling. assets think transitioning in some that ones

John P. Kim

have you If a reduction? have wouldn't it's triple-net another rent going to to structure,

Kendall K. Young

We would move these structure is intention. into the a SHOP or RIDEA a

John P. Kim

Okay. And the about - what remain then

Thomas M. Herzog

to be that that assets sell I'm sorry. there got factored dilutive those The bottom line a keep we we in. would is for in you've impact mind

transition, we that neutral. those probably it in come For around

what's this impact. driving So dilutive the in forth, when look that range that's you differential at we've set that

John P. Kim

portfolio? coverage the housing with think happen going Looking past selling you triple-net to operators, that right do what this assets EBITDAR. or you those and Do slide is anticipate the rent those to – now, remaining X.XX or is senior transitioning RIDEA

Kendall K. Young

strong credits. conversations tenants two asset – in fall a of to are driving of pretty times with So on one of we guarantees corporate coverages. it's see all in we lot I'd lot say When these from leases, assets. that's one have that how good you leases, or of some our improve the And coverages a

– of might assets are selling involve that the the strategies driving that involve some And low might those coverage.

Thomas M. Herzog

Or transitioning...

Kendall K. Young

may be that equipped better that run transition Or to to another operator property.

John P. Kim

and pro go the triple-net come to eventually will forma So forward pro forma of these that of probably further SHOP? XX%, transactions, down even going

Kendall K. Young

I wouldn't say materially.

the each leases. one assets about talking in or You're two of

assets. XX a one got you've property or two if be might so lease, it And

it's one smaller maybe to down get you leases, As the asset.

So assets. it's of a material not amount

Thomas M. Herzog

either general but A triple-net arrangements. over know, outcomes, or direction are those consideration. and seek due near-term that leases lot Not better that operators trend, Yeah. SHOP of time to as you have the the is been toward there a as has assets actions stronger come taken moved

So to that's unique think I don't us.

something now. I think place the it's common that in right sector is a

John P. Kim

cost, finally, year? to of update Okay. Scott do the an they costs more realize Brinker I and hiring but one-time is may on a for provide G&A And what litigation you this then, can next

Thomas M. Herzog

percentage release. middle specific within of the number you the I'd a added number the in right see of It's in significant right not not earnings a It's the that it's provide I rather can. Yeah, now number. now. it. that We're back and

John P. Kim

That's fine. you. Thank

Thomas M. Herzog

Thanks.

Operator

from Stifel. Please is with ahead. Our question Vanacore go next Chad

Chad Christopher Vanacore

right. I'm fairly late, All running to going so simple. We're keep this

raised You're core by guidance about at midpoint. the $X.XX

raise factor that like end let performance, guidance? $X.XX the bottom other what So you improved It of So or explains there? but factors in looks the you somewhere what between SHOP a $X.XXX?

Peter Scott

Yeah.

which had but I remarks, I as of up was we've to is into some said of towards one You That's fourth SHOP. on benefit hit I obviously in certain November/December. some prepared the or say. important from – of extended the Bringing also, my that most mean, factor then one a assets holding for October was end Tandem now would close. had earmarked closing. an year quarter gotten an an that we end working originally We're year at we're looking

you SHOP getting into benefit think year, Tandem those up well XX, the out a like bit of Brookdale and little from as pushed items sales a then about when some coming of there's So that. next as

those. of So it's a combination

Chad Christopher Vanacore

occupancy All right. to to you some you back about QX And improvement flat of of see something the give SHOP you sequentially that? we or some then, or expect QX should bottom when lifting guidance, think from end expect

Peter Scott

question. Yeah. Chad, is good that a very

the now, to high guidance X% said, X%. on we're towards our the I right minus of As end trending

full points. those quarter. number, does the still down – quarter it that X.X%. will against There But thing actually pop would purchase impact will a point last If rebates you but you'll pieces in adjust sequential It fourth – there's there. quite the even we're quarter that basis do fourth the we're X% out, with of the X%, not we moving fourth lot math, a the big important X.X% and in if impact that minus That I an the had fourth because up work midpoint. the around year-to-date high when the you still. so to to just out do is you at the you comes for at When sequential where you pretty have at XXX year, the quarter fourth do substantially, end, about look fact that up math, us say appears just heavily math, quarter. then negative far pretty negative come this an is down be

especially year fourth and increase. on generally deliveries for sales well. at accounting can in here, been look quarter. end true-ups the we spend. And actually marketing fourth the be the it volatile, As Expenses of could some quarter, as you've got hard more of coming towards We've the these pushing with

that more conservative. be to all us So led

were we're point down point from probably looking now. where XXX from right before, a think still year perspective, but an improvement around basis basis to our at slight range I full XXX we occupancy within

Chad Christopher Vanacore

great. taking questions. the That's right. All for Thanks

Thomas M. Herzog

Thank you.

Operator

Our is go Please from next Yulico UBS. with question Nick ahead.

Nick Yulico

Thanks.

Brookdale consent Brookdale it could to flow So transaction any waive, about landlords sale? to did rights How control of I upside rights improves seems Brookdale? the participation happen, sort entity that there's whole since that change want some transaction full that think to Brookdale you decision, back this and you since decision your I over at trying in guess, your especially in the have go Brookdale characteristics transaction did at equity weigh like Brookdale. consent other or just of to cash And get some over

Thomas M. Herzog

back. equivalent Nick, trade had that I'm got a that. standpoint were no, of or you what an equity something we when trying weren't that gave with glad and seeking we something asked stake in to that the From to get We received give, net get we done we nature. of we the to felt what

our benefited of us where them to for our same they things consent. put well. in value what But of relieve Brookdale that has in the It us to as to unfettered gave able we time, us One assets obviously of to control, contain exchange all great our us the able rest also completely, was us at triple-nets a position that eliminate covenants. the reduce and concentration leaving dramatically. X% a change were in our with And we're without CCRCs, in in penalty, concentration SHOP future financial

would it, SHOP fees. on that between assets the desire a contracts if then, an So to control a to but to the time great do remove I this, for can't a all there's to any us times reason have have now see we change right management And reason we desire and not to have to place today we management which equivalent be. if payment a and in X

was giving we're felt it's rights up, us. certainly it for these as what for receiving is it So something And versus good something good really Brookdale, is us. in which we is what that we're for is that's that it good weighed like

at looked we how it. that's So

Nick Yulico

Okay. Thanks Tom. that, for

benefits since some quantify year, and the income number remind confused – your your statement, you're you is running is flow actually Can at like statement. the just if yet you your not your you statement this adjusted for is from income this benefits it So it's taxes, clear in one booking particularly much of cash about look comprise? year through a modeling Thanks. paying benefit standpoint us on included And what this this looks how benefit FFO question calculation. you're those of have a tax I'm income what

Thomas M. Herzog

through, be That losses which confusing. those tax that a tax benefit. would in a is And those the Yeah. flow within impact that hurricane, involved there losses was on What the hurricane. results

fact the the that cleanup, that income it despite against So cetera. through prep, the statement, the that losses, you property ends up flowing netted where gets see et the number damage

So tax there impact is for benefit. not that an FFO as adjusted

wound that are the a had tax So just losses the all hurricane. all the losses. against gets offset which those impact up Those in partial and

Nick Yulico

what – the guess I had looks earlier But That's this it running year, I also like about for helpful. benefit you Right. mean of through. that's quarter. this But some

your this we think about items as benefit next Just much for trying year calculation in a to of think FFO adjusted year? tax is how

Peter Scott

what offline and think some venture. you're around in benefits I is Nick, can our we of it take some Yeah. perhaps CCRC referencing

of on it and all front quarter. why follow it. can to around it's the But per I in get $X think take don't up more me. of I offline? million right I'm don't here happy we now details have we them

Nick Yulico

Thanks. Okay.

Peter Scott

Yeah.

Operator

Our next ahead. Please with Jefferies. from Tayo question Okusanya go is

Omotayo Tejumade Okusanya

these now. are long Wow, calls afternoon. Good getting really

one a Just me. quick from

You had of this sciences/MOBs. a meaningful quarter, of amount kind of life a acquisition activity lot it

the think that in kind so, that when large circulating focus forward, going acquisitions? is the MOB of if some kind wondering, about And if portfolios in market interest that's you there's of these today? of are any Just

Thomas M. Herzog

this that as in asked as that senior some takes What it And from is leaning the view we said for care while actually them. transaction MOBs. of housing. put well, I'll life way ourselves and we've Well, and of mean question's a science been bit does underweight this a we're away

housing, will science those. we probably We but identify some transactions and are not still toward influence additional life away senior and leaning MOB from give

pricing pretty the a larger see spendy from there out now, that to they're MOBs As you right perspective.

understand you'll we competitively those, we're at make after now where same them. in go right but sure sure at look we us will For see those our at I'm time not and that the allocation,

ultimately perspective of on sources where And what and at. you from a so, uses it's Tom, more also and do matter add might that? out and our timing they price would

Thomas M. Klaritch

better in anchored probably for thing to is you basis better today, some points are yields only assets add on-campus opportunities physician I large XX look or basis on-campus to think I'd And owner, hospital than primarily off-campus look very of large yielding the portfolio. group if the while off-campus we're there's portfolios. some MOB that available out there points the some an there anchored XX little are

take at some we moving may So of forward. a look those

Omotayo Tejumade Okusanya

quality quality of do of How the versus the you though about what think those portfolios have you today?

Thomas M. Klaritch

I XXX around years. hospital They're in And have a for think a to of practices of can market. mega doctors upwards locations XX the XXX have normally that group XX, by them. is the anchored some they've key or all been regional. there over these XXX, system They key

some seeing markets very basis on assets. that they're getting with different a you're in some the have buildings, you of kind there now. portfolios the other when may think instances quality occupancy the but I in is of in They little be up long-term a good

Omotayo Tejumade Okusanya

you. Thank you. Got

Thomas M. Herzog

Thank you.

Operator

JPMorgan. Please is Mueller question ahead. go with next Michael Our from

Michael W. Mueller

quick of ones Yeah, hi. I slide. A couple impact first all, going think slide the X, it to was earnings

full of science headwind, million magnitude that to year? that Does end trying size the on For $X.X impact life of year? Just full to basis. an the up start is that mid-year, happen annualized

Peter Scott

impact effect. is February goes That and a lease extension basically effective into It's lease full on XXXX year there. that X the

months the it's impact So XX basically of

Michael W. Mueller

that rent immediately on it. Jan then million one $X or reduction. other Got And on effective timing. does X? The one take place Is that

Thomas M. Herzog

That X is Jan

Michael W. Mueller

Jan X.

Thank Okay. you. That's it.

Thomas M. Herzog

Thank you.

Operator

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

Todd Stender

staying for Thanks Hi. on.

South property medical from you're all seeing hard a office, but like these might science science maybe HCP be see markets scale go can there's managing question in to where acquisition. in Do We're need internally? and scale maybe like in used this markets San follow-up you type, to have Is where the Boston. a on life in it other smaller we footprints? you in San it Diego, replicate Just life and Francisco

Thomas M. Klaritch

into we portfolio. in want you you to think amount when medical where it. in economies a like office I XXX,XXX you can have just to XXX,XXX to like square feet the We when can management move look some market get scale get of at of some

the at look probably type number in You science. same life

big Diego. to tend the Although, research large is on Francisco for San we San feet potential and square scale XXX,XXX Getting Boston obviously great and in are markets the focus four we in XXX,XXX to us.

we'll that's focus. So where probably

Thomas M. Herzog

I Yeah. would Todd. add,

pretty of hope For an experience good a footprint to a initial in investment is XXX,XXX major And market, a square owner, an time. partner XXX,XXX them developer. over would lot as feet we a to strong who grow with has with

an at time. is, opportunity this So to all investment us, in a for substantial Boston one make

Todd Stender

point. Good Okay.

you. Thank Okay.

Thomas M. Herzog

Thank you.

Operator

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

Thomas M. Herzog

you, thank possibly you and us seeing Well, We soon, all NAREIT. joining at interest look to everybody, your HCP. in forward for

thanks So again.

Operator

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

may disconnect. You now

Healthpeak Properties (DOC) 2 Nov 172017 Q3 Earnings call transcript