PEAK - Earnings call transcript Q1 2018 | Healthpeak Properties, Inc.

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Operator

Good morning and welcome to the HCP Incorporated First Quarter 2018 Financial Results Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Andrew Johns, Vice President of Finance and Investor Relations. ahead. go Please

Andrew Johns

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

Although materially our reflected based we that may to expectations forward-looking results uncertainties believe are to actual statements discussed exhibit differ at risks in non-GAAP and on over our Officer, will statements the forward-looking today's measures any assumptions, our is reconciled cause exhibit also are accordance from to subject reasonable financial the duty an we filings directly in A Chief to President not to release measures available and press www.hcpi.com. the discussion call in will today, X-K included be The all for our do statements. website forward-looking of now expectations. any We in on to update turn risks our with our Certain furnished Herzog. is undertake most SEC. call. and a measures risk factors the financial Executive GAAP and with the we In non-GAAP Reg Tom have detailed requirements. the comparable I SEC on G

Thomas M. Herzog

and Also the McHenry, CFO; are good Thanks, Pete and our me our Troy Counsel. our everyone. COO; and Klaritch, Tom Q&A of for here CIO. Housing; Scott our SMD today morning, Scott, available Senior portion of Brinker, call are With Andrew, and the Young, Kendall General

off this lease start, of our our MOB as and in growth science with pacing Our platform ranges. adjusted NOI line good cash with and morning, reaffirmed plan. office quarterly same-property guidance both specialty a our operating were results ahead full-year life is and expectations, we both our FFO in to Leasing

from communities. anticipated sale SPP temporary transition same-stores relatively our the SHOP and Our small pool of the Brookdale included within assets disruption

sold earnings announced toward certain high-yield already moment. to Pete a transactions performance call our in $X today Brookdale Importantly, last details strategic announced We've transitioned and guidance holdings. in billion Since baked XXXX. by segment the November completing a of we provide our international SPP will the exited progress made business, of we've clear path into our this significant mezzanine February. debt ranges our our exit had and noise in more mid-February, announced we in provided on assets,

Our transitions have I underway, are progress update well operator you and more soon. expect to on we'll

all is in refreshment fully team plan. communicated plans short, and In strategic previously our management board yesterday. Our with were our elements place, we're on communicated of track

life our top-three fully pay the on-campus The With science. completion and is markets. the portfolio will portfolio. private the of office medical differentiated our our is in over business will office business medical a remaining segments Over transactions, announced half well-positioned specialty life and diversified of science and of have we of life office XX% consist science

be concentration Additionally, exposure around lower reduced and and to profile a our housing will to supply. senior XX% demographic have will stronger new

company as to Bricker remain pay a through by colleagues. supported demand healthcare and capital, from on will portfolio housing, qualified a motivated joining estate Our eliminating allocating a HCP real team exposure Pete. rounded that, Scott us seniors. risk. stroke-of-the-pen for while powerful turn with stability investing meeting benefit deep to attractive largely senior and when March, bench Pete? it trends alternatives With state, XXX% underway, of have strategy and talented different provide these cycles will leadership positioning healthcare by experience, our private top-tier finance and complementary I'll highly We future With in we executing real estate the transaction focused companies real healthcare, demographic out and the

Peter A. Scott

Tom. Thanks,

of reported FFO first results. $X.XX Let's quarter per We start as with adjusted share.

of benefited the quarter the throughout targeted balance for the yielding Our assets disposition from higher in first year. earnings

coming complete the We as our expect transactional FFO activity. planned we quarters, as decline in adjusted modestly to

provide me details our Let around segments. major more

expectations grew quarter. For was NOI NOI same-store prior X.X% of growth year, our of ahead office, which same-store reported cash of In the this X.X%. XXXX, the cash we for over above-average medical first quarter

anticipated first to XXXX quarter be of we So lower. the naturally

to our quarterly metrics improve in progresses. in-place some XX-basis-point a partially known by year a driven growth our the On same-store by basis, expect decline on our renewals, We same-store move-outs. to but due occupancy as offset X.X% escalators and lease was a mark-to-market year-over-year X.X%

leasing balance the Our is the pipeline year for of strong.

science. life to Turning

grew NOI was which cash of same-store year, quarter prior ahead our the X.X% expectation. First over

on NOI normalized quarterly the a Rigel call, earnings life growth of same-store by mark-to-market would announced been last X.X%. we our science As cash in basis, the On lease. the was have impacted

of of While of of am for where XXX% ticked closing of which X life XXXX. leasing Campus science square the slated leases campus. the the with for this to the today of for December, campus combined well ahead Research to in This the have XXX,XXX be. quality The the to Hayden space, best-in-class pleased the unsurpassed from III acquired Phase expectation. is we well XX% At near feet South executed milestone in executed San another our of bringing Class example market, down our occupancy report high we recently of XX% that year-to-date million have ahead all-time we leases of A strength is feet consists LOIs we since of totaling commitment XXXX, XXX,XXX square has it approximately specialty leasing To-date, of square leasing expect leased. Francisco acquisition for At have feet in Cove, office, I Boston,

Atomics feet in San The $XX leases of located XXX% Poway. suburb new we Atomics. Diego Lastly, the million now totaling in is development to leased development General square April, General signed Ridgeview XXX,XXX at our with two

X.X%. same-store been On have portfolio, NOI This basis, previously with cash announced into in quarter. rent takes triple-net account in X.X% cash in housing NOI normalized and triple-net adjustment. senior our first expectations our For the grew housing a line same-store was senior would our

cash portfolio, our the X.X%, line same-store SHOP our negative with NOI was was expectation. quarter in for For which

the we in third at declines surprised occupancy we experienced by not of quarters results. all second these were and the Given XXXX,

are our assets or normalize transition assets we not sale. performance too, for Importantly, we marketing do exclude for in or

underperformed While decline overall XXX our our sale dramatically expected this higher and positions, occupancy performance. in in and and breakdown due to typically property lead portfolio points, our of assets significant in turnover provides to different. we transition long-term Transition core key of Page on operational assets of were performance impact a bifurcated experienced temporary sale which basis XX can performance. supplemental the an

growth. decline XX occupancy, X.X% lower basis portfolio, a For result our of in was X.X% core the cash of points growth we and expense which experienced X.X% NOI REVPOR

transition decline points cash of in XX.X%, lower of we which a and assets, REVPOR was the For experienced X.X% NOI X.X% and result growth. occupancy, sale growth, expense our XXX basis

consists nature results performance SPP SHOP be look We reducing transitioned further we volatility of to operators of and of lower our forward income. getting which as only believe our pool XX XX% portfolio to these well. our our remain reduced reminder, as overall assets, assets to performance. We improve are committed the completed, sales overall NOI. Brookdale of will exposure XX% a or As to will in approximately Small and portfolio is increased who

with Atria, summer. underway to transitions this, having remaining to achieving well are through scheduled the XX completed We early

Sonata existing Living. community to transitioned Senior operator, another we one Additionally,

balance agreement we marketing midst our on are third-party the of are also our assets. group of process. of sales, nearing We transition select operators the in a with On to the take

£XXX Let our items the underlying which today's the me In concurrent briefly consolidated UK to million transaction Mallaband. with March UK some we but touch upon with for security we loan Maria accounting to homes seven earnings. announced XXXX, related care bridge

of would satisfying us convert also £XX in consolidated conditions the adversely real rather to real to provision estate directly current rules, a the in to you fair joint million real If assets includes real on recognize they to upon the a the which the market £XX of affected began occupancy cover We XX we are to than the from out provided other recall, accounting March, accounting. the the with buyers in allows accordance acquire estate real debt potential investment. this loan in we through process would our And, like estate, received exercise closing and approximately to detail, that marking estate. required expect decline venture conditions, to a was gain loan we that a transaction, of to estate at by the feedback in upon to I accordance in consolidation The Scott fair temporary resulting the million. will point met. that convert prefer value loan embargoes. Consequently, certain option more value loss upon with

revolver, proceeds, we the balance of to sale a Moving of this balance approximately as on adjusted first million with quarter Pro we $XXX times. be closed May quarter-end, the $X.X for down, pay ended EBITDA our the Using to sales of assets. X.X million we sheet, X. debt balance on the revolver down billion. annualized to quarter Subsequent to bringing our would paid forma the XXXX net $XXX

Turning to the dividend.

of declared company's to be cash per quarterly dividend As May $X.XX previously announced, on of board XX. share directors paid a

result quality a to remain XXXX. ratio very balance of vary are range year. high ratio on the our with basis This comfortable expect by but a will of for the we fully payout payout quarter, low-XX% the As we in our through portfolio, quarterly dividend current covered

our near-term the Finishing contractual benefit of As $X.XX payout X.XX%. vast share FFO including and science ratio we portfolio, from from our are significant opportunities The the Cove. NOI escalators X.XX% look development will positive mark-to-market we earn-in with $X.XX of lease on guidance, per beyond to substantial XXXX, our to as SPP key range life in and cash X% the full-year projects, adjusted total of majority our reaffirming approximately

item details call supplemental. XX the before Scott. of our found One last guidance page be can Additional our turning on over to of

on all create last to ventures to have we joint XX call, in have unconsolidated joint section we our unconsolidated the venture greater one same-property to in our Starting our we quarter, on on of XX. discussed excluded this comparability quarterly order disclosures supplemental pages collapsed to peers, As results.

SPP page supplemental to result methodology change. to of refer of table the see please this reconciliation as XX a SPP Additionally, to adjustments the the on our pools

given small As on the amount change ventures, a had unconsolidated minimal SPP impact reporting of joint this overall results. reminder, our

Now, like Scott. call the I to turn would over to

Scott M. Brinker

our freestanding Thank close happy the mezzanine for million. an for businesses. properties want with nursing million, on generate $XXX Brookdale $XXX a kick signed we of agreement will to be out with in saw properties Brookdale proceeds back price off and interest an some XX% interest in Tandem occurring We're that million. our to week, of investor execution. April. most sale we sale loan also HCP. you, is $XXX value March, of enterprise progress In this track JV here Earlier completed this very institutional the the with sale to which UK million We the in six The Pete. purchase loan holdings. The an to is summer, We story our UK. Pacific a mezzanine XX I skilled to in update Okay. on of in of of good closed Columbia sell transactions. We're to the on based £XXX to

the later by no a expect and pipeline, clear NAV quarter, provide we $XX earnings when development The into this we in to summer the growth a from come help from life Last and desirable the to close full We down to fund JV highly sales UK used to that million proceeds path than projects will pipeline. exit debt line. our be pay XXXX. will and asset science on have which funded the

future. weeks a things start united me. few is highly wanted out One about talking that to energized HCP that to eight and in, to stand team the the Now share about I is

transformation from demographics. we're housing. balanced science, this Another emerging segments uniquely undeniable in medical and trends and three in is that benefit office long-term from senior life All healthcare

me segments. upside remains. that We one and the of of estate our is I real the from After about that in in out changing narrative repositioning, stands firsthand, public some estate great the critical mass and the of campuses. have the three valuable noise seeing that many of toward thing all to HCP see density away expertise real unique also and

cycle once your or for five virtuous can City is walk a car and demand Dallas, tenant of example of park other, plays off Medical HCP An the You more buildings. to given campuses them space. HCP. success Each to the medical campus country and owned all and one a today scale. the would the buildings, It's of with entire be leading HCA-sponsored X.X million-square-foot of by in location the impossible creating replicate seven

MOBs Another example our hospital cluster of Centennial, of fully is HCA's campus XXX,XXX-square-foot in seven Nashville. on occupied flagship the

new flexibility. us A in change buildings lease and based drug one see Cove, at million-square-foot on density life to Francisco. This multiple example HCP to an new seven with impressive HCP of and is space Their give for partnerships. Our campuses tenant. scale XXX%. that good signing can footprint we San over existing and is by partnerships, looking super successful square approvals equally campus a XXX,XXX requirements The This science in After because person. funding were week, dramatically a South developed its time feet IPO by expand signed a tenant was and important

where Google's fit these scale X and they healthcare local $XXX directly property I unique some NOI The just their HCP. Our expanded thoughts development capital commence million share fully occupied square generate adjacent Point, Cove us incredible was I is next saw annual And The under allocation. will enabled when our The of in truly campus corporate with within project needs. an campuses also lease cluster estate in View, our five campus. to unique our is to most puzzle April like meet within a Oyster The initial feet. nine-building is of jigsaw newest to scale million want Mountain real XX completed. to buildings on

we focused help First earnings of dividend accretively up REITs know owning and and of consistently real see achieved a have and fundamentals destructively. which we'll on high-quality swings time. going at won't the segment, markets change, will We're ending record Diversification but their and us engineering, the mitigate grow mindful change. big by products by down. sector view track We grow be that's dividend, us allows more financial through that but change estate be by to foremost, our in that growth to starting best their concentration geography. operators tenant and over

and risk-adjusted over investment Our cash and decisions underwriting will flows our thorough focus will be objective, time. on

medical office science, That the Our with toward science in more medical medical higher where life life to the equal risk-adjusted capital and new the development will office, portfolio of senior like returns. and We business the a see shift primarily near-term currently growth potential mix and balance be redevelopment, housing. means office low-volatility we and exposure so between will cyclical allocation of for these we best we senior assets, different, step but is segments in other than life sleep housing. Over drivers from given rent hospital City, very to do science we're lose and see strong The three the small may Medical no time, are diversification and never a the meaningful. away because corporate very over our hurry so cover guarantees. mix

senior to I've my environment Finally, next on Obstacles Today, and aren't so sector. share been difficult asked remain likely will new for the few thoughts it the to the years. housing. is

but very off has construction decline, started a base. New to high

demand demand earnings. sector inflows catch sustained supply. to Therefore, still So housing new elevating. in feel more There needs allowing senior growth be in though, we We're confident, before an hasn't important long-term our that starts is growing. with correct, slowdown find that is of time and the It's the is We two rate the because senior like impacted by And the decades a to for been strategy. over senior size rising. increase and the family harder only phenomenon penetration in part population harder double will will product becoming the to and about significant would confident the number capital a will is over next to absolute housing. who that strong returning up fact

housing opens is inefficient imperfect door an mean, through outperformance that, also there's and like relationships. We to senior that expertise by information. and the market I That

SHOP; potential plants converting establishing through asset locations; through high-quality has most located three, and by operating select announced; strong become transitioning data, operator one which in growth development are by redeveloping physical new relationships; and of select of and portfolios major already partners, acquisitions, older into selling by been tremendous five select to One, two, triple-net with that to by others outperformers expect a initiatives. five, We platform relationships. by led management new four, smart analytics superior assets and the

turn to I generate now, poised this cycle, have back Tom, in at shareholders. feel I to again point just life once joined back to Before it value very Tom. for to fortunate significant want HCP And its I to say

Thomas M. Herzog

Scott. Thanks,

before career his was law And the he of Watkins her included in of through global senior law the Latham, law firms period Supreme local served as Review President the on recall crisis. firm address our important Board. time, and up to Yesterday, of Before a financial the a the questions, from unusually world. are in leadership of to the General and on we call Securities from Committee we number country transaction on board has recently to Brian appointed and background changes that a board of physics, first announced and experience XXXX & Latham finally, Dave Finance to term a O'Connor during astrophysics started the Exchange Henry, the that a role XXXX, extensive in been of team the Interim of the In to executive since his open was Commission Cartwright of built a served XXXX and, will Sandra Counsel of a experience was Prior the he and Investment Brian and to time the Angeles directors. the Law XXXX. Chairman degree. provide top clerk I'd our who served Los member our extensive. his board Brian in which has investment like the Harvard HCP's top Chairman, the for Court. one post-doctorate spare SEC, HCP with a since Brian board. as you'll Ph.D. His incredible as into challenges chair Day

resource an has ascertain, our in I'm you can boardroom. As incredible been and sure talent Brian

served accomplished XXXX XXXX Lydia's Griffin. highly-qualified airport than as Airports again she Kent oversaw to board, and development Prior KDG and estate of X,XXX BioMed, years airports, World law, in JPMorgan, directors which and seasoned following appointment from HCP, Executive is Officer managed currently from REIT, Raymond country's spent BioMed, President to billion. of She Lydia the at at of construction Consulting, of our CEO a XXXX. role and a the included of XXXX. time four and $X served We through XXXX and and having annual investment behalf until more Los REIT President corporate also On and of eight Kennard professional XXXX early system, management urban a a Lydia largest an from James Kent and Kent. real the second this program science executive, life Lydia Kent the welcome Chief role, like and of two I'd consulting firm. In budget Arthur to announced experience Operating nearly and Construction CPA spans and staff as as an planning. banker auditor his and new to Andersen. Angeles of is Director

our is our exciting age time new squarely last long-term with set strong ensure corporate I that, up sights It and one that for are and orderly the addition board, and the line board of is board noting operator, With questions. have and please years. adopted governance total a recently of management that an with for stable exceptions team XX, Lydia HCP. believe on Finally, shareholder directors strategically practices growth and delivering within subject of policy portfolio, an the With time. a transition our half positioned excellent joined members. best refreshment over an to worth open to board what five line Kent, in is of retirement This mandatory limited It's ensures continued the return.

Operator

Thank you.

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

Jonathan Hughes

and stabilize up of to in morning SHOP departures driver good commentary. part actually. to and there there or the was the time earlier review operations. last Pete, I talked help specialists late of the those sale was decline But part transition the for thought afternoon in Good at portfolio that NOI earlier, quarter. But add the the of you thanks year assets of managers about strategic Hey.

maybe about changed the at be the strategy know I you on happened So talk assets and if but could there some those all? just what in will sold, quarter

Peter A. Scott

Yeah. year-over-year year. things on a at of Hey, one Jonathan. when lot the point decline last the think I How dispositions out is, you comparison, are actually happened look occupancy you? transitions the of the to and

at point that's So those transition had the we will Sonata. very anticipated It Atria, performance XX time started take We've process. recently, although time, transition in some to X assets. around underperforming. those got, assets We've to happened see this to at turn

was actually and come think operate I more to point baked these decline have operators will these of the the time as assets. So the already in upside is, kind

Jonathan Hughes

thought helpful. have I in there, there then, of several exposure XX% least at back Okay. XX%? And considering target left like What's to the year, SHOP you is That's the sell the and million portfolio was XX% this more currently still hundred NOI, November. target

Peter A. Scott

know have Yeah. necessarily I don't an exact target. that we

now, SPP pool As we look the at is right our than the and portfolio different bit exposure. overall a little

we now. housing as well as as right trending office As we're specialty more well towards at over life MOBs senior look time, sciences,

how I be. a think that well more think all say to a just long-term much to more as split. a and a third trying goal have hard third, And amongst of of it's blend the will third, SHOP medium- more we'll to look even we'll and a I have have segments

will triple-net converting prepared Scott SHOP. into about talked that depend remarks, upon and of Some also as in time, over assets his

I as portfolio look that's basically it, our we how at So think, long-term. the see we over trending

Thomas M. Herzog

could the is from the confused get Jonathan, their within and that thing think, other CCRCs that exclusion number I SHOP.

be into separate those guiding As we're might we at That you're point. moved difference that recall, guidance this seeing separately a page you'll there. our in to the those and bucket

Jonathan Hughes

Yeah.

or the appointment background But Boston deep acquisition-focused? break you has more to Kent and kind was more way? board And do life of a more specifically development- life may Okay. if of science just a then, And to so, the Thanks. the market meaningful in try that in be expect into to the I on done sector, one who if Griffin science. this

Thomas M. Herzog

a BioMed. expertise Yeah. the the in was, the Tom. life specific science. joining Kent He of President BioMed. the as he and brings board, to that, CFO is around executive said, background of Prior again COO he I This very was With

Boston, that the to participating boardroom. to major As management in Kent's of team three that all and our helpful yeah, contribution markets to specifically knowledge is I in in going think the we're and be

one elements of of very So, that the board. attractive brings that expertise Kent the was to

Jonathan Hughes

Okay. for I'll jump That's it me. everyone. Thanks, off.

Thomas M. Herzog

Jonathan. Thanks,

Peter A. Scott

Thanks, Jonathan.

Operator

The with comes Sanabria America. from go next question Bank Juan Please of ahead.

Juan C. Sanabria

Thanks time. for the Hi.

Just proceeds give if going is on on the sales to your achieve cap to and to of is can Brookdale And give depth aggregate us – progressing, a your color just that an up the if parties, and that's target? update can will how sales or targeted third you're you that an rates? portfolio pool, of the initial buyer you that one-off kind

Scott M. Brinker

be the It's number assets. to Scott determined. here. of We're Juan. Brinker talking parties Hi, about a to

would preference There portfolio. here. do partner in number bring in to in They of the we're ability but operating scale, is Our the their to that something interested are are open-minded have parties to own alternatives. a

assets for acquired you because I unencumbered in significant middle would would So want coming don't more But to contracts. have to updates process, Juan, that, by we're too and hope the more in say these months. our be than of much we the Brookdale

Juan C. Sanabria

can those management in to Brookdale given improve And Okay. think with particularly highlight past discussions if you I if in experiences? on, the your Scott, you of could asset operators improvement, that, about would like, Great. maybe And think what areas you practices? I then, best benchmarking receptive as are just that something and you stick

Scott M. Brinker

happy that, to I'm Yeah. Juan. answer

operating what and here. we're best-in-class real and to triple-net a there's there's get confident in great of think also company. was really landlord. there. rapidly. with and made the of a tremendous HCP operators. size And I combination into It's go. we're historically our relationships There's But technology it's XX a strides But change a some issue the to ways of the pool. more people happening still going to the And estate last passive of opportunity become team months Tom that will have

the manage So board. around across something so team small. little it you unpredictable and month-to-month. you're and it's part some it's small And of difficult just in relatively A-plus given is the bounces even lease senior short bit, a the from terms, a It's movement, had margins, pool dynamics to have that sector because low very going housing with to in if that's naturally

after do. housing is to we see which will diversified we that improve But we our that's So around note a a even a portfolio. important going it the percentage right our to small think jump team, senior number portfolio for broad relatively bit, that within you're and little place of

Juan C. Sanabria

one just follow-up... more And

Thomas M. Herzog

expand management this a last may and come Herzog just couple the team. again. past. reminder made asset items, I'll spent we Still, Juan, it. team. But comments just on we've quarter this is have the of in dramatically just a as to just working we've the the enhanced includes That

brought in the housing. from actions tracking. an rapidly you And this point front. a system senior the We've in housing our building functional been a build help to great time perspective, some have continued finance our have dedicated and going to reporting is be senior out that in And in know, been that team we have is at analysis of very taking We that active continued we and in that senior to role. as leadership operator on has a

has last that quarter. there and that things So, along a said the in on Kendall of the lot he's focused team. everything with But now, been activity Scott are

Juan C. Sanabria

and way. And last for Thanks. one one the by back welcome Scott,

a years. elevated comment be You made for may that a supply few

just you color thoughts any will could any or growth sense what or you whole medium-term a longer? supply on probably given same-store have do be share think NOI for higher the So the be, as for sector

Scott M. Brinker

guess guess I growing X% X% has at or not individual down I And industry, and the inefficient to a at that. on below optimistic pretty Meanwhile, period think next why picture a time and starting decade. the growth comment X%, in growing that that but for our to a of actually, as best industry average. bit five-plus happy around a growth see per It's year to earlier a look we It's increase look of an time, have come as as supply-demand rate market level. quite it supply be the meaningfully. comment is nationally, the been that's national in along we But I'm going quite others that's of and Juan, performance around Yeah. not large but performance. that significant year, probably companies Over before in truly year per at is increase aren't an in And the maybe it's the will material above at demand bit my demand that variation it's been year. more little lines will rate. turnaround materially from we there's XXXX. national And

I here. that all turn significant historically that got more those earlier the think a the with better cautious national in quickly with have opportunity recapture time things to as we're achieved period ultimately asset Tom described assets real at and improvements for not at said, management beyond can move the transitions. about to their And outperform and we around. a occupancy of we operations, all HCP, mention what Now, I guess we I level, how operator the But, chance think even we've they've that, being a Juan, look, bit sector think little

Juan C. Sanabria

you. Thank

Scott M. Brinker

Sure.

Operator

comes question Rose Citi. ahead. next The Okay. with from Smedes go Please

Michael Bilerman

Michael Bilerman Hey. Smedes. It's here with

next try be interest terms that sale talk XXX% can then, XX% remaining UK will couple to triggered of your a on the years the And structuring What about will deal. Just of exit to the how of be priced? upfront? the was question how you and not in

Scott M. Brinker

for run chose Yeah. certainty Michael. offered that And, Scott seller, of relevant best we that portfolio. execution ultimately, I'm did to to any It's take one, here. things. and factors number looked at price of a thought like process Brinker combination were Like a of us, and we happy that buyer timing. this sale a those We we the

to So this It's in just is our stages. full really that view exit. is a happen going

and to the able timing that as these time a And after-tax latest, we negotiation it's lock fair which expectation. closing initial with for the think to be fact an but think happen the the assets. a by like takeout, About we as we what deal the was important needs. we that's have should summer, is this it their The should got our So buyer It fair. X.X% very to yield to which met price up were a a we XXXX. our At is this needed full for meet which happen have soon do consideration could them, year-end. expectation, HCP,

Michael Bilerman

put And XXXX by a that? at you have current right what price? is the Do

Scott M. Brinker

Yes.

and we'll is So to a this the But to will, that's institutional work, first, the discussion. known be way it an more rent HCP of Michael, escalate. do And rights have the would interest. investor us because our me. practice, lease, contractual to in is is, the a is an this consensual well works way mechanics we allow have continues XX% force to triple-net the exit and that And pricing

how cushion much to adjustment So escalate. in terms their price. fall purchase before would price continues purchase we of NOI in downward have an be be the a quite performance was decline And would the adjustment there the significant materially, a the in to price. pretty if can there do But

Michael Bilerman

XX you XX portfolio, are turning terms just to coverage look all and one percentages quite of The exposure. the at page Brookdale when the supp. low. the the lease And master that are of that of then ones line in XX, other outside solving pages are And below growing issues, triple-net

So, net the soon. seem further better be housing about The how to getting time be not senior I thinking market fundamentals any do any reductions? operating should guess,

stream? that rental how of think should so we And the security about

Scott M. Brinker

The that Brinker. take only one those as significant, slightly our one Yeah. fee. of is Michael, it's most as having them management coverage, We after below X.X options. view really Scott and of that's number I'll two a well.

are times renew And if actually problem, lease, don't a think that be properties the I to one master in these. well. causing portfolio that's two case the of of would performing a even balance quite and And are number the the is there certainly of or these the really leases, rents. a material in there change were like often we So, lot pooled

We you could to of keeping So We selling option could or two transition have operators. transition the would always just SHOP. underperformers one the rest. and

feeling at So, I you us. we're of graph of and day, two or we're got historical two not for we cash flows to the lease bit a and add more than to immediate is lower also is urgency strong collecting reflected here. But booking, a it's X.X. from list cash a these these something two the misrepresentational do that that think coverage we're this high or any is none what have the triple-net the without can guarantees, little end out. figure about because the XX priority that the means what's these on acquired underlying misleading guarantees, number We've expirations. do the rent assure is that, have It's you because of right the legacy around the CNL on I see don't, or years page actual rent that this that the materially rent

two are coverage. bit those a payment little misleading the So think terms I of in

Michael Bilerman

the portfolio down how being versus or because that's XX% seems than be break would know And a transitioned, down The decline on being those anticipated to different quarter, then performed just it the in are the sold transitioned have just you can like assets last steeper question. sold, to out between pools XX% assets expected? SHOP first that the that are much one that

Peter A. Scott

of would dispositions, a broadly, I Michael. just was That's when don't material Peter It's was I are and transitions in we Hey, pretty sort Yeah. difference within of both the groups. And here. assets. there at XX%-XX% those when consistent versus It dispositions. a think there look about say, think XX split performance. probably you transitions

Michael Bilerman

Okay. Pretty consistently poor.

Peter A. Scott

Yes.

Michael Bilerman

things of And idea that rate are is until these to transitioned? sold or trending on the that going keep sort that's

Peter A. Scott

would have the transitions, expect of Well, we that especially I see ones towards on completed we the to already some the on earlier the end think year. benefits,

would we point somewhat to I dispositions, for taking this how it are irrelevant over based all what are going I is as the assets. those the we're going forward say think underwriting it's the assets, On trend buyer. those now, sell talking operator at buyers to they're I I right them mean, to guess looking on a new

what could So what they're do the new at assets, it's looking with those. necessarily could operator Brookdale those with not

differences need Brookdale what between think that would for expectations the the operating a the to look So be is way a I you really and new at those operator. take

Michael Bilerman

in can new stuff as you I of definitely significant way It that takes transition, going for early lot comes goes just think a us it to a terms of uncertainty break more there's extent if a while in. Well, because sale when to those out Typically, the in. fruit. benefits manager on versus a see forward comes other for operator a new

So, two the Thanks. having would pools details between be those helpful.

Peter A. Scott

Yeah. process we of the would sale the not if for something that is we're Michael, assets. we to that have done half Obviously, providing didn't detail on fact want middle that do. the in of

would in The in that the that time prior occupancy mention thing first in it comp those in results declined I most year it prior you year. cut QX know other in said, and you I the to baked due the just spoke – was the was of but had to, QX where

reason great assets is of So, the for it, part that's the whole which that had and a selected piece transition. those of what drove sale we

Michael Bilerman

you. Thank Okay.

Peter A. Scott

you. Thank bet. You

Operator

ahead. comes Okay. The from KeyBanc. go with Jordan next Sadler Please question

Jordan Sadler

out guess, Scott, morning asset portfolio. management for follow I some just commentary on one regarding Good portfolio wanted housing I you. up, another to Thank the and you, the overall senior there.

bullish paring of senior much of trimming there exactly significant ongoing company's of Your consideration years. the the thought a that business extent process more And housing scaling table? not the next down sounds side assets fundamental not but on in to for the and short-term? of the Is description the the dire, exactly or five is sort portfolio, given

Scott M. Brinker

number underway, Jordan. a Well, there asset sales are of

office well goal So, I way company mentioned towards our path. housing, is as that without a as senior balance even We're medical and our on question, create between to a And more of life why selling chose we be outperformance and there to the for which that that is forward. transition have some properties going earlier, we pockets properties sell think other outperformance, we're to potential will the science.

continue asset own that with match position with real is to we'll and we part at estate it that operating we'll It relationships constantly the look we with. portfolio left, to an management of outperform. the be looking better and our at the up that. And partner companies what's that shows to this So operators important

expect should I continued but expect you think more should don't anything position dramatic, to I think, effectively. this So portfolio, you work

Thomas M. Herzog

over science business. long-term. dialed life time percentage as ownership the senior see important the without want an some. that senior think what just portfolio look dramatic continue in, plan, that, just a long-term. is to are bring would and Jordan, to expand decline as the like We to anything still again. believe under it we think I we will down I housing private We our our you'll decline, XX% this And work or And, own reduced pay portfolio within our housing we we we the as to segment further Herzog over in what's our transactions, But that. it percentage it'll still as complete add naturally be MOBs. it the of doing that is And we expectations at balanced

a specific over it's between senior MOBs target So and third, third and life date. time, more science, time, housing without third, a a probably of a over

capital And as science, development we certain some cetera. through of over some into to balance occurs It'll of speaking et us time move I be and direction that been science, MOBs, we've life actions move think just that life recycle it while. there'll that for into naturally take we continue that on that that probably into to a carefully

Jordan Sadler

set comments a number side, any or or Tom, science of on vis-à-vis another seems estate to has for similar board there? one you've role? desire the then personnel the And and been on aiming the much that consulting recast all medical earlier one, the making office about And just is you're to of company there life on add I'm a now It I in Pasquale's side, more you operating the real management company, for Okay. now on do are team update either have somewhat. – got operating curious, you Doug place.

Thomas M. Herzog

continue as to continue we would As healthcare as and out couple far years we our really great business is plan. as that operations put to real and be that lean as it, going critical the in enhance next you we've the doing a operational company something infrastructure, year. ourselves estate talent, direction platform last our operational round us adding that's the view see talent, over And for been to to I having

do we answer of be just team, platform the but intend including the systems, and the cetera. a on is, focus to There'll to do infrastructure that. that yes, not rest of et So lot processes, the

drives focus. a be And of going very I in a think success will a to So, forward. our element what that important going it's be sector

excellent to an in talent housing. As Doug he Pasquale, senior is

know, senior an healthcare operator he's REITs in was both run major housing. one in you and the As of

Doug with on part of the working that we're that's to be and there's So, nothing front. a changed that team continues

Jordan Sadler

Okay. Thank you.

Thomas M. Herzog

Thank you.

Operator

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

Richard Anderson

Thanks. Good morning, everyone.

can I get second your want senior housing if I head into to here. see a So for

let's it And plan you belief true at move an a to that be is of coverage, to I'm we're if as don't today? triple-net? curious the how be initiative that were On over of to you lease of to SHOP is, want that in to rent, close much would much this of X.X SHOP; initiative, I SHOP net well, and much transition X.X so how cut coverage or

Scott M. Brinker

Rich. an Scott wouldn't Yeah. would here. I them It's initiatives. call option. it I call Hey,

Richard Anderson

Okay.

Scott M. Brinker

one could It's make that or... sense

Richard Anderson

They made five, your top so.

Scott M. Brinker

we're the maybe opportunity that high-quality And portfolios. thought opportunities doesn't we think or estate do I goals to to portfolio one Aegis it may going portfolio partners. operating we I have continue of could SHOP, just not will what of and estate noticed our HCP initiative. by different we would mean the very assets well down one that some and time. if definitely It's transitioning is They had portfolio these standpoint. Oakmont. an something our it's over And over is that valuation be real those that if SHOP. inside that might has performed accomplish little the higher but to and a that performance than ago, it that, make think But it's us some makes higher I from very would high-quality It will that like for the during it triple-net a triple-net And partners, recent cycles, are that real Sunrise and do and some have XX can the X an it's that about one operating well have I the quality outperform about be that things SHOP. sense quality bit be to of for years sense

Richard Anderson

a close one role Oak, SHOP. the rent it's moving coverage, of that's that terms if to to motivating and cutting parity in balancing, something I is But plays a certainly It would like factor assume.

Scott M. Brinker

factor. we SHOP. more flows lease something unilaterally to are don't because motivating conversation that the have It's the Yeah. a that would the maturity operator cash Certainly, right be the would with date factor switch to the into

Richard Anderson

Right. Yeah.

Scott M. Brinker

be cover, have. would a That conversation is conversation. an around X.X two-way are discussion and to easier it the rent And if cash flows

Richard Anderson

Okay.

Okay. question. Good another then, enough. And

XX% mentioned, to And you much XX% or that's that What than strategy, probably a the was Brookdale proxy even do done? think said not it you, you lower. when you're still at enough, criticism for lower XX%? over-under Brookdale getting of of of the and that the all going all On it's Peter, what's think I

Peter A. Scott

well may assessing announced. in we'll was that because transaction to skills to different positioned ways. And Yeah, the concentration reduce team. We the what going opportunities we I'm and think from I listening your be to your that XX% quick But Baier Cindy very we with to that but part. perceptive be some to Richard, And are to a time. XX% now. reduce to we've we've do that comment her it, that you we're so. It's do get already compliment said lower. on in be We're there in will a working right over not rush few over a time intend for do or opportunities that dialed there

will be will those So things be discussing. that we

Richard Anderson

down concessions did with a at below as least at mechanism when all. pursue didn't And eight their Ventas stepping XX% noticed deal, I I over the on if or resonated all rent it course strategy maybe of the you was wondering years. at they something kind their to that were of triple-net side,

curious. Just

Peter A. Scott

all us. No. for doesn't It's a at question. good It

that actions our Our in and to When had XXXs. coverage team the boost deal on Brookdale, with taken strongly. coverage the quite recut we our triple-net Kendall is Brookdale

as – us. far in relevant so, for utilizing And as fact wouldn't be pattern, approach same the our

Richard Anderson

much. very Thanks Okay.

Peter A. Scott

All right. Thanks, Rich.

Operator

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

Michael W. Mueller

Thanks. Hi.

curious acquisitions heading the all Just So, pricing, relative on road. sales? once you're that and to about equity just thinking about from how your at this the thinking down through proceeds point the go deploy you

Scott M. Brinker

capital. improved we lot Scott value Michael. think Brinker very a really about growing here. and with we now, performance new external captured thinking execution, Right to of not about before be seriously Hey, there's We're think capital. with raising

to fund the proceeds in very of opportunity life development the sales. capital process, now raising segment. pay and a of right primary down debt to course, science asset a pipeline use in And and the and of are redevelopment of We through attractive medical lot office is

at recycled science said, there markets That the be the any office So but we're point that rather interesting, in. active life of market really markets buyers All with three in market. we'd looking could acquisition sectors. wouldn't one than at today that see be be unique capital the to again, that to future. extremely We be in to intend buyers or with in and medical the being in But already us I opportunities and new either we're like expect could within capital. be key

Michael W. Mueller

XX/XX/XXXX? can by I UK know Is by transaction, it. down January X second Got the one transaction. the tranche on clarification And just come the XXXX. that or

Scott M. Brinker

in again. year-end expectation Scott Brinker Mike, contract So, the would XXXX. say by The

buyer. before an not happen is right it so optimistic force hopeful and is the year-end have that, XXXX, it'll We XXXX. exit. But actually and We're to the year-end

Michael W. Mueller

it. Got

Okay. Thank you.

Scott M. Brinker

welcome. You're

Operator

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

Vikram Malhotra

the question. Thanks for taking

from the do we're deceleration incremental to and and senior maybe going outlook. going upside? little it's of take housing, to reached just to longer on referenced we specific that a bit or sticking you see level Scott, Is point you the view seniors NOI So, think industry here, see in an maybe then the Or kind have low declines your but supply-demand in HCP? in at housing, to

Scott M. Brinker

that get to it substantially expect so not much It's Hey, worse. Vikram. we

the growth But, supply. In significantly the is to and to get level, than New at New D.C. barrier better to better. for that getting population is now just it's and at and market higher fair a is like entry are longer are other more starting significant those that off amount. well, as the at very And but noticed that any of least even that York the for expecting, fair for material markets thing fact, the and markets or might new we and get leveling It's years things Northern for Seattle supply, hopefully in way. I amount view, little Jersey traditional our industry a HCP, trough had general supply particular expect, in or last Washington, not looking

So we're monitoring I that well. think as

Vikram Malhotra

five the segment, housing wondering, we've despite obviously last happen growth, grown of RIDEA also one your but And lease rarely peers just step their despite Okay. maybe six Brookdale. strong a I'm years, given just the triple-net taking market. the then restructured back, to seen EBITDAR X% or what above with maybe has

that see you longer we and changes supply you same maybe rent other be situation, to in remaining or economics or up end maybe these it five as the of don't a for you lower, time? think these years CapEx covenants So, substantially leases types have into the and for agreements so if of maybe three up you need, come while, lot where more maybe elevated these years, transactions that need changed do are the just bumps a a

Scott M. Brinker

tenant senior today. brand leases happy into view see are lease, It's recut being agreement. made They least the leases is I'm arrangement you triple-net see rare of existing arrangements. at really a Yeah. to answer financing into many see that, very but landlord might in a and that Most a a to don't We Vikram. a that new legacy enter lease sense just in an housing our ago. entered decade triple-net that

flow they I'm adequate back with interests a properties the create lower reasonable and setting much be to at and to landlord rents If tenant. of between and cash would levels a incentives the bigger sure into alignment you invest and cushion did,

probably done, substantially Our above that the if at a you it's after lot you'll least but restructuring the Brookdale likely versus higher forward. market. times still be right, from a good XX be industry pretty that management I relatively haven't don't X.XX us also is, was scratch, it's But and do see those to lease years, we'd I will think at is portfolio prefer at, a tight. I looks going triple-net to in But fee. That once seen than of start think

Vikram Malhotra

maybe skill really Okay. transaction? you presented similar like me sort sort just this And say, to did recently had were that broader away or is on as you were your the then this consider mean, former opportunity as role would sort you Tom, the no, well. about Welltower What you'd the to you side what from? you of you, of And, where for of I a one Scott, stay makes factors would the what team, more, deal if in

Scott M. Brinker

say? that you talked reckon about the verify. I heard you transaction, have I Welltower is I to what

Vikram Malhotra

That's right.

Thomas M. Herzog

to we Yeah. and that will team where to they in they I we a that of had we where sit, you We us. I'd question put it spun more kick could hands pleased It that portfolio. our about hate for spend, flexibility was tell are you that did I very that. in – tell what Welltower the do think QCP Mark over from the we take the off. his Ordan I good with to result answer folks probably as get it

with again, you're probably a the if prior do. announcement not put to together that You've Welltower (X:XX:XX) the can REIT they to that transaction, following the which that's going something noted, were

And had it a stayed are alternatives, think with they certainly when the our that nice pleased in spend with value. just behalf what up shareholders that they outcome create other the So most of recent We end QCP. good we of on we to did mindset a news. part could provided really that original that did our see bump was

that on would I all probably that's So, say transaction.

Vikram Malhotra

probably scale for forward? not HCP is equation So, part going of the

Thomas M. Herzog

good strategy Yeah. selected We private that strategy. the We're industry. doesn't for in a in mean government not us not It at the that to That serving going not It's healthcare clearly very game just company. bumpy the are segments. three real like estate HCP. keeps the stay We really of on the focused one reimbursement. believers another ride here that's we've pay

Vikram Malhotra

saddle. Scott, Okay. Thanks. in back getting And, congrats on the

Scott M. Brinker

Thank you.

Operator

Please McGrath next comes ahead. with go from question The Okay. Sheila Evercore.

Sheila McGrath

morning. Good Yes.

a your are to reposition the expectation is help doing And cutbacks, assets point? what SHOP, transition that Is rebranding, those? doing low first the it in new what ramp required they quarter to are On operators additional was NOI? differently it

Scott M. Brinker

part Brinker. had of Hi, been earlier XXXX Sheila. because where the throughout Scott low It's a be we point XQ performance should really decline in what's in described XXXX.

XQ, rate, to and need understand at growth looking And, a a very beginning the you're end. difficult we had comparable. you whenever for the at So, least

to terms should what property. So, difficulty will the the attention of simply of in because of XQ, an the is in comp quarter. change, that be just the one worst But

years. versus over at number pretty the gap. the of performance particular, there property think in some past When of a in three look I at these assets distraction wide was there's markets performance a our we

and part, properties we consider of with we come is, the Now, plants there sooner the later. locations real looking there some now rather we're may at mention could a could actively opportunity. be other older satisfied physical to those right weren't local the and great at teams I estate for have thing are redevelopment communities. a most those that than be And number management would And but the

ideal, the properties. public And be but right company for that under-performance operating decision isn't will the the over amount which with and the confident in recapture top made And there we're company these a time, will fair a leadership So is unfortunately, local that the lost key the at positions. that teams sum. up expectation of that's we we creates transition near-term, were right good in anything that that

Sheila McGrath

And balance Thanks. follow-up one on sheet. the

you the and moving targeted can of Pete, there? You've and how remind just targets your got leverage us timeframe you lower.

Peter A. Scott

Pete. Hey, Yeah. It's Sheila.

third sales. at able get upon post to down like the on depending We'll of for to the on which time end But, there some quarter-end. that in on quarter the were senior housing again, assumption. can for the We'd of a year. these these would by depends be to on transactions, pro X.X line the the sales, So, track be able the our some probably forma but We year-end. be closing the times. timing pay some based projections of the the we're basis, in definitely the take low-Xs We're of in of by sometimes that

Sheila McGrath

Okay. Thank you.

Thomas M. Herzog

you, Thank Sheila.

Operator

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

Chad Christopher Vanacore

Good all, morning, welcome Scott. aboard, and

Scott M. Brinker

Chad. Hey,

Chad Christopher Vanacore

Hey.

to seems So, progression forecast fourth as in FFO reinvested. then quarter the of dip some mid-year, quarter, maybe down those should quarter second in dispositions in amount given be proceeds are the third consensus flat expected of and another

does agree then And your of use models? we considering terms timing be what that disposition, with and of should internal proceeds? in factors So,

Peter A. Scott

Hey, Yeah. Chad.

Let me start with the first part of question. that

some I the quarter-end. those assets. We've some benefited yielding now in As first my post higher sold quarter remarks, from of prepared said

probably going In not in numbers spread guidance obviously in, quarter have some good a the And which XXXX, being if fourth that look forward. supp, we lease then, progression quarter see significant in escalators, the the with way have slightly the the well we at highest, as yet, well. we through you the page we're second But to some see being quarter you pretty rate benefits and our transactions. out the re-lease, leasing see as our our as run higher life of as as look line. the being these we at of we on probably third through we positive based year, coming timing, on some So, would guidance work factor of then, we developments coming that's first sciences,

I at look level, of we a at out rest how but sort lines that's high XXXX So, just the XXXX to as described.

Chad Christopher Vanacore

share we something All net talked or right. to about per we Pete, $X.XX Is a range good thinking dilution. maybe be last should $X.XX quarter probably still else? about it

Peter A. Scott

Yeah.

of about I but we just around in the as net this have into of think that that XXXX, that the dilution will think that some share head the the $X.XX we in offsetting XXXX numbers, I we probably a dilution it's some benefit as with we're benefits our year benefits have getting described.

Chad Christopher Vanacore

it. Got

some Okay. And performance held the of on some your under additional us then facility on in sale. be alluded then, SHOP seeing Tom, management. operators. was performance. the in those level Maybe stabilized new just they to that comments, details one you then, terms actually how pressures more for worst in might the communities Most portfolio and changes of in at And give

Scott M. Brinker

the Yeah. little a were exactly Please. Chad, you could question, confused. what got maybe just asking. bit if I clarify repeat you to

Chad Christopher Vanacore

Okay.

going are on might that's sale transitioned, from they performance portfolio they the be SHOP the or to either the how held be transitional now? for improved So SHOP or where assets,

Scott M. Brinker

I you. markets today that important in are strong note Well, in And Thank see. with reasonably these well. low-XXs. we're were And the that historically these occupancies are the mid- to performers otherwise to low-XXs. performing

identified been So successfully Chad. months the recapture be of happen to but fairly we right that's the XX-plus think in last That or think XXXX. leadership the transition lost, balance We've two the transition next communities, recent opportunity should what's teams done within finished an at so. the local We've in doesn't overnight. We with there's days. the the communities transition, XX

completely overnight. the think we'll But be their happen it and and systems. we running with and process, the operators own be year-end, by through up will doesn't teams transition So, new

Chad Christopher Vanacore

Is Scott, might is focused be maybe the of G&A, So, more low-hanging it operationally fruit? on flavour? or it where some in

Scott M. Brinker

will place that the the executing. underperformance, local drives Chad, operator the real the you we this culture course, comfort that we the of the is, the systems teams real time at it's should and there's a that are to these get within their came putting think a estate new and touring is the lot then these was aspect. when And of not with I putting was communities Yes. to estate but of performance. more drive there's what again, local we having performance, real it in estate And property. like in but but community. perform properties, away be leadership over technology, right the team local the for And own that, about spent that mean, time, teams all of right driving emphasis we have what sense

Chad Christopher Vanacore

questions. right. Thanks for All taking the

Operator

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

Omotayo Tejumade Okusanya

my afternoon. the Yes. answered, questions Most just team. but of Hi. Good have been another for one

not what kind transaction. improve upside three that? expect the were to place think four look deals restructuring to What's you horizon, if doing to because appetite of in consider in do back a for the But, when consider kind to deals basis do problem like opportunities again, do where And on of fundamentals see you kind Welltower Going structures you would you around going-forward you to putting of out question, that? you two assets, are where years? in can to like you're specifically of Vikram's like management to team the kind something the

Thomas M. Herzog

do there I'll different Scott. different we that I'll our tell outcome portfolio, are identify turn go then we doing. do appetite could start as this is provide and desire things of that place can take I'll where to – the turn to there forward announce And, this ability at time. point, these I it to ready that, be discuss, of takes it better Herzog. we'd And restructuring you all those But that, at alternatives you'd a yes, to variety opportunities or look from we're that we as over is your assessing. But interested Scott, on, answer anything there is and to add our course. we are be perspective? in of as we're Nothing that that those

Scott M. Brinker

just value would biggest I right portfolio. I housing think, creation now senior say in opportunity our, the is the existing

much of medical edges over pretty material people to as teams. short-term segments, segments. was, of over some that's be to other but going office, when time it distress some our the those It's operating There a So, occupying project time very lot more past but year. it frankly, And we'd opposed in creating be done, the for the life given the all there I strength value in been science and that's big and our not that we're If our that's some results, around two I is create over be will to announced think and done, our like our news there's shareholders. think two a noise the outcome. work will are been

Omotayo Tejumade Okusanya

Got you.

on think you team, No me, Kent Griffin to helpful. great is back more to kind That's good the Scott. a board. Okay. from Again, HCP I have And of get.

Scott M. Brinker

Oh, thank you.

Operator

question Baird. next The you. Thank Okay. with Babin from Drew comes

Drew T. Babin

Hey. Good morning.

Scott M. Brinker

Hey, Drew.

Drew T. Babin

believe SHOP Quick that to sale they I question potential pricing of before? may how point guess to confident there's that do the the the fundamentals on kind the operations deteriorate can begin otherwise need are risk for-sale enough Do you things any consider long portion to those Do fundamentals? And at there's properties about a on think any where realize might you of risk portfolio. or culturally that to again? going you may buyer been get talked hang that's things to

Scott M. Brinker

performance we'd going weak is those say operating we've and small is their in It's their to the over Scott and next think own the Hey, that everyone own The underwriting in two months bringing I assets. partner business is there's change valuation. at And spoken here. materially decline plan. is properties a pretty Drew. already don't What significant interest the to

good something No, making we're than later It to But don't changing us I positive? a it's sooner think get like the position materially progress. we it done is Now, puts dynamics. course not. of a in just where and

and coming more So significant news months. we specific have hope in to

Thomas M. Herzog

again. Herzog is This Yeah.

I'd the buyers, thing add a that other view is, to these talking well. as The in transitioned there there potential in is as is assets upside

And factors thinking the so, into that in underwriting.

upside be So the believe perspective could some to the assets well. there performance as stumbled that a fact same-store buyers from causes have

Drew T. Babin

Thanks. robust a just think do kind new to that you where a leasing sustain bit of That of it Do roughly you next level is year? levels, think activity, the required through to occupancy helps. that And downtime on do life that do is going kind XX.X%, spreads keep downtime current bottoming? think occupancy think you on of one Or same-store the question represents you science.

Thomas M. Herzog

start towards haven't quarter. third occupancy this leases the good No. in and Actually, spread drop, the that. we're and They we second started just Drew, one question. leasing it's some will the a all backfilled good those quarter. But They maybe think backfilled we've I getting already. actually and

So we see progresses occupancy there. ramping year up as the

Drew T. Babin

hear. to you. That's Good Thank me. for all

Thomas M. Herzog

Drew. Thanks,

Operator

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

Thomas M. Herzog

in to HCP. everybody, you, you. see Thank And you Nareit. interest some Okay. today continued for thank your look We you, forward and we'll talking and of your operator. you time soon to Thank at

Operator

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

disconnect. now may You

Healthpeak Properties (DOC) 3 May 182018 Q1 Earnings call transcript