Healthpeak Properties (DOC) 2 Aug 182018 Q2 Earnings call transcript

Company Profile

Participants

Andrew Johns	HCP, Inc.
Thomas M. Herzog	HCP, Inc.
Peter A. Scott	HCP, Inc.
Scott M. Brinker	HCP, Inc.
Thomas M. Klaritch	HCP, Inc.
Richard Anderson	Mizuho Securities USA LLC
Juan C. Sanabria	Bank of America Merrill Lynch
Chad Christopher Vanacore	Stifel, Nicolaus & Co., Inc.
Jordan Sadler	KeyBanc Capital Markets, Inc.
Omotayo Tejumade Okusanya	Jefferies LLC
Vikram Malhotra	Morgan Stanley & Co. LLC
Steve Sakwa	Evercore ISI
Michael Carroll	RBC Capital Markets LLC
Smedes Rose	Citigroup Global Markets, Inc.
Lukas Hartwich	Green Street Advisors LLC
John Piljung Kim	BMO Capital Markets (United States)
Daniel M. Bernstein	Capital One Securities, Inc.
Michael W. Mueller	JPMorgan Securities LLC

Call transcript

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Operator

Good day and welcome to the HCP, Inc.

Second Quarter 2018 Financial Results 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 Finance conference and like Johns, to now President, Vice Investor would turn over the Andrew I Relations. Please go ahead.

Andrew Johns

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

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

Thomas M. Herzog

We or billion completed the resulted in in line housing placed results under me few Klaritch, which in asset Tom our our busy joint and and available are a for million Cindat and and here are majority months operator Andrew, plus portion of and everyone. with Pete delivered the Counsel. for on our COO; With dispositions non-core We proceeds. senior $X.X call overall General good closed Also our venture expectations. CIO. We Scott was Troy today the operating $XXX Thanks, morning, Scott, productive Brinker, HCP. This contract of our CFO; our our closed UK of McHenry, transitions. Q&A with

under entered in leverage million square joint an repaid we debt. a related We development. and commenced Carolina, We office medical our a the contract Phase team short, that date, of healthcare to strategy. have of transaction billion continue over assets our in $X venture tenant signed added of The businesses Stanley of our of IV largest previously pipeline very we campus XXX,XXX our progress $XXX South Hayden leases facets into that In of and on our feet progress and life system performing reduce are our science back life life We of the expansion with now Morgan San sales November billion presence a well. closed development in all of with million. is MOB in in total under With South science Greenville announced science market to strong Francisco made the Boston, we in to our our campus or $XXX identified XX% increasing tremendous to Operationally, executing XXXX. $X.X Cove and

and Francisco science strong markets, San see demand life of in three in Boston. to our continued all particular, We

operational at expected. transitioned newly plans The Eclipse Sunrise, good we news last As at performance office business continued transition our Similar transition. Sonata growth. for medical completed navigate falling planned expected, our to is and is targeted of on-campus improvements assets Atria, work, headwinds we housing with operator these our to quarter, implementing at XX% have the hard majority further stable senior producing now our within portfolio the are communities. than we

our years. portfolio few defensive of upside. to Phase more begun balance opportunities notable posture With high-quality a and HCP, these Our for out-performance capture welcome have sheet, will XXX% team be will it where the drive expectation is From a some but time have to is operators continued tremendous now a choppy to leasing III we which the take Cove at from play change stronger success has we maintained for perspective, and The look and development leased. offense, past we've to over this

at ahead Cove Our yield excess in cost to is original expected on our X%, of of be The blended underwriting. well

We I'm very Heitman be to capitalize Sandstrom $XXX at spent Point as leaders future I securities. our this just and meeting. most over phase also very on the market directors in our Francisco. have up South estate head I'm firm's additions firm's come we without of team, The business And to expect goal momentum way with and The to our where Kennard appointed More week, a Phase coming leasing Last with San investment she joined HCP for around first the for of of together board. months. Griffin pleased in the $XXX not Sierra IV both to our REIT Kathy recently we senior leading was for efforts come Kathy securities other possible while at strong common Irvine Kent a described strong teams also the progress on the was Cove, to global that continue and two and decades pleased growth. forward real today, the board. positioning ramp buy-side their quarterly million in first million would announced cohesive Lydia the

of year. of our and future turn their the I'll these appointments to financial quarter have are With contribution. performance we we our discuss for Lydia, Pete forward Kathy, and to recent outlook board, the to it over the honored Pete? for individuals that, With remainder the talented look to highly Kent and join

Peter A. Scott

Tom. Thanks,

and reported line Let's cash per which growth, start $X.XX portfolio NOI adjusted of as our with delivered was X.X% We quarter share expectation. in results. same-store year-over-year FFO second our with

our Let me major around more provide details segments.

year, grew retention continues of same-store mark-to-market over rate for lease For medical driven cash Year-to-date, outpatient over prior X%. XX% on strong. and we by on achieved a rent a have Demand to and medical office, savings. expense of office positive in-place escalators the NOI operating X.X% fundamentals building be renewal

science, South by III, are higher mark-to-market development, the the Shifting blended of sizable to Cash leased, now quarter our expectations. cash cash driven driven Francisco by remained lease to our science in the Tenant some positive life Rigel during which, well discussed, part our Hayward in XXX% at recently a markets. over demand spaces. life XXX basis quarter vacated Sequentially, three approximately XX%, our we at lease. Cove X.X% moved strong across occupancy have same-store On Phase of portfolios. of the same-store commencement spreads mark-to-market NOI year, by re-leasing grew prior ahead X.X%. The and science the NOI second was normalized San core life in would basis, to as we've Turning been impacted points

Denali a will in are XXXX. at take Therapeutics, excited XXX,XXX successful and Phase of Denali December an is HCP space our to feet with square IPO We of expand completed existing III. who relationship tenant

expect Alector company the to Phase other welcome report many XXX,XXX at Francisco, first our potential high-quality III, of In tenants. for fast-growing the on we continued focused cures group Cove is will who a addition, we for term. near Phase our occupy see of The major to demand Point, On space in significant phase biotech to of developments and and Alector, South forms Sierra both to and IV in of San more have developing cancers. at square feet Alzheimer's

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

For NOI negative our for SHOP same-store portfolio, quarter X.X%. cash was the

significant a between was to performance there our the quarter, have assets disparity last or to intend we in portfolio similar and core However, the transitioned sell.

our for assets, to we or more excluded, sell. assets we SHOP nor performance will color a momentarily. in on As have transition we performance reminder, Scott not our provide have normalized intend

like FAD and to sheet, Before policy. a moving cover the to in change balance our presentation I would

forward, leasing leasing acquired as properties. space these will commissions Going from as redevelopment not vacant significant. at well capital Historically, were development commissions FAD newly on assets, we and exclude

successful already Page project and expenditures of by well FAD However, as updated supplemental up of peers was to in definition. our segment, development these before with we XX the we capital consistent our non-FAD it be of and we space in have up delivery, leasing important is have and our provides redevelopment summary felt and been Furthermore, estimated captured pipeline our yields. were our ramped in and commissions and our costs a industry. reflective others

onto Moving significant improve balance to actions take our the profile. sheet, to credit we continue

the bond. redeem use cash UK from $XXX $XXX and proceeds During generated We revolver, XXXX sales. our joint of proceeds quarter-end. X.XXX% purchase asset exercise balance we option $XXX the our used transaction to reducing the proceeds to Genentech quarter-end, million these Subsequent from to the million repay our million to at quarter, initial venture of we remaining

extinguishment we billion debt quarter. We debt-to-adjusted X.X in will have million record and EBITDA forma pro of debt charge net our times. the a at third currently repaid stand $X $XX over Year-to-date,

Finally, debt the on Starting range extinguishment guidance. notes charge full updated I'll reflect year guidance finish with FFO, to NAREIT our primarily with we our our redemption.

$X.XX guidance, adjusted $X.XX, are in increasing the $X.XX revised the increase as end per $X.XX FFO to by to a share, our we our For resulting range guidance lower bringing at midpoint.

by and to a longer impact range positive in in weaker-than-expected the venture close increase joint of our assets moving These in LIBOR. August. than expect we owning assets number which updated on senior offset certain performance Stanley, incorporated in parts, the transition with is range the portfolio in our sale partially benefits sale guidance housing Our based of including are and original accretive an and Morgan

our high to We low life towards are that, X.XX% additional would over triple-net our to SHOP X.XX%. timing can towards is related ranges. end page on to mid and reaffirming turn to trending of the end range With Scott. call medical our capital pricing like segment, our with our our of guidance, while trending XX along range, initial and are office the Other SPP supplemental. of to be By of recycling, details sciences, guidance found aggregate of currently the I

Scott M. Brinker

contribute $XXX investment and the with managed million. by will own interest announced a used Stanley and Morgan business Stanley strategically The Estate. and To is a Pete. $XXX own Thank This fund the the will joint MOBs an investment and takeaway HCP Venture, Real valued XX% HCP structure economically side at that's venture you, progress. of to Morgan we source balance. morning, We will execution and relationships the on form nine a million accretive. creativity

while portfolio the sourced was acquisition $XXX Greenville price by Stanley the HCP acquire office allows anchored will the contribute an GHS. is Health is sale Venture are Today, to NOI. time on And and trailing to so. it them XX% leased. buildings take capital those to do in Our nine low-Xs cap will rate we up, The fully expect on-campus and or equity purchase the Morgan that by lease medical million. System

inclusive like Our X% reach. acquisition the Big tenant, each fees. capital point. partner climate the the continued market, I'll on is us expand and real HCP, yield state, is new driving picture, roughly favorable platform our and we largest joint of a the Greenville growth. market allowing in market elaborate for and the MSA and venture is It's to business our estate

Our to the is sign by state. opportunities. a we location tenant of and closing. drives for directly which leading in the of future office more demand. They capture are an far, XX% the have is metric in XX% are, because will They is will one system when relationship GHS. credit leases The medical and GHS anchor is at a they space share health rating. the provide ten-year This on-campus, new buildings Greenville XX% leased new A expect investing market us who than themselves key

foot Houston. been relationship. in partners, square office we've Our XXXX, partners capital partners million excited since They've portfolio XX%/XX% medical and grow the a we're Stanley, on been Morgan to great X.X

rates. We deal cap here. and and between also immediate the like accretion acquisition drives given the spread the economics This sustained disposition

our primarily demand Turning life here with in another $XXX remaining strong. a and also acquire platform, team to allowing are sales. institutional of momentum. investor for leasing remain example we've million an based to previously why We're Brookdale science In of plans XX% under complete important. it's Cindat executing relationships We're Year-to-date, space in industry so They taking South Boston. announced interest supply, great in fundamentals holdings China. to binding We're closed sold ground-up transactions. to UK. $XXX progressing another Cindat, UK the the are we development well us incredibly on to under a we're June, XX% XXXX, seeing The the million of sale in our of known advantage the so exit our exceeds way Francisco and now strategic contracts. San $XXX Brookdale assets also from million purchase and

assets and we of last some those, by Brookdale transaction of November. and most a agreement have rent the outweighed master earlier, Pete that cover marketplace triple-net, senior In have with last the I'll for in improved was handful gave declines concluded we portfolio. provide housing the our quarter. We operators additional announced the results It from color.

we've the in into we performance course the NOI given SHOP, the are point housing. in In bad, the high it current the one size small. for core good too track good of XX%s occupancy, portfolio, now simply we Brookdale cover period These an a next the today true Given sample we on transition Whether low X.X% months any buildings most growth of quarter. much to low the the trend with excellent of XX is Occupancy record, so is decline result the portfolio just and will expect evaluate or focused trends That's senior so quarter; a particular. closed ago. HCP be to high because for expectations occur the month. very properties XX%s are We're too the this three in In our rent strong market occupancy. portfolio short these quarter. in in in downward time delivered and the at for reading have transfers, against remainder performance. especially further results will versus last That's the caution likely quarters year

So upside recaptured. be there's to clearly,

reputation. it build new to a takes hard are local and implement culture, at time realistically, partners systems, team the of work, but new rebuild Our

We decline get in over to occupancy a also to dig need out of quarters few to past big just the level. back

XXXX likely few with to the take see upswing we assets dramatic, second in occupancy next XXXX, potential the transition a more we back has of quarters, in operator the ago, results. So comparable half to growth given of Today, case XX%. local to but year-over-year are is assets and those months two occupancy improved year-over-year that, timing Sonata, expertise. be to into have The to periods. a we'll and operator, And open XX% steps almost assets the of to the line precedent. four negative forward in step questions. transition one the XX we focused with has These good a with transitioned be can

Operator

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

Mizuho ahead. comes question first Securities. go The from Rich of Please Anderson

Richard Anderson

Good morning. Thanks.

you say you the to of expect On done Scott, the this Brookdale rest did transitions have situation, the month?

Scott M. Brinker

Hey, Rich. Good morning.

of them We so a year expect three got this likely in licensure done that then transfer later and transitions the We've the or handful to month. quarters delays. scheduled have August, about we'll completed. eight most small to for of already We've due got more

Richard Anderson

process? so, in or transition, getting And you bigger-picture the say question plan all it the you're plan done, everything, Brookdale is from on of of terms ahead would of sales,

Scott M. Brinker

to surprise choppy, But reflecting way turn as this expected, NOI the their about, XXX% on properties these good news not local culture, The the take they're is in Sunrise, these Atria, most time. leadership the given buildings, establishing new of transition carefully is feel plan. continue operating and properties We is these year period turnover our strong Sonata, the is ability the the but that. a reputation, time, Occupancy the at extremely at to chose over down, team, partners, around. the rebuilding things new now level.

the it bit that's sure. declines to year, it's big I worse relatively I been get a So, don't decline that pool. XX%. in over we're in down nearly very Rich. It's for we points continue We And occupancy basis how could little small mean, quarter. we'll next big. and be NOI optimistic a know X,XXX mean, frankly, recapture occupancy, a

to that important in per of We're about mind. talking million $X it's or so only keep So, NOI quarter.

optimistic So percentages We've We're numbers, sure are done a recapture good got but ugly. aren't huge the precedent. look these we some redeveloping that. Atria's assets. But we'll a this lot.

time, may XXXX into it XXXX. some So this a little take point, and easily stretch could and at late

of growth some takes see level. to occupancy, Just the in get assets. But I you're attractive while decline going pretty to do, we think it big back once those in a to because

Richard Anderson

Okay. question your peer's valuation maybe conventional one that that My senior a of think out that similar multifamily. themes to came they Tom, the for second was housing should of calls get

maybe So between that thought And you past? all the your be to of. assets that a being how should in strategy question guy sort you've we second, multifamily feel you if these to is draw comparisons that's way do of thought type extent at marketing valued? multifamily-esque assets a I'm curious can have the investors some about

Thomas M. Herzog

have pretty Obviously, some sectors this. thoughts Hey, dramatically. do both Rich. Good I question. experienced I've on

not there are just liability the is sectors two I that think obviously exist Senior (sic) some and housing, with big with structures with potential in comes always housing. housing multifamily. contracts. management between [multifamily] XX% care call senior are by does more the fundamentally. RIDEA component. that got It's there's that, XX% margins differences some it, senior way operated long-term pretty some They're that different, operating with The oftentimes – companies complicated under

within volatility is different. the that So,

through of senior me goes is into the don't year that rental housing a assets, the amount licensing. factor licensing and you I whole lease you that month-to-month that in you structure where timing that sell get thing in XX-day turnover, as transition systems think or can in have go multifamily. neatly that the one multifamily. typically terms in establish year When but other that and to pricing senior drill about a far versus fit it's have as And lease housing certain of strikes you in a you multifamily

in cap less senior while that the there component. going here. upside, and growth cycle. real the on care thing, a rate So, that senior by upside. are bump and along housing then the on at We're out, the of balance And side But to should same impacted the it a needs-based to AL business housing other some should on time, big demographic be for the produce lowers memory this just

there both account. cap different market rates and yield, housing So, and a factors growth. when fairly calculus, are IRRs the at given take at my experienced not in pricing risk expected but senior is that future all pros extensively, having we look higher surprised I'm these the cons, into despite that some this

So, to price. me, it makes towards sense

mentioned call. I I last this think Brinker the there's an and though, would in factor overriding mention,

One of senior young, is was doing he's market. go and it's inefficient, a if he's that he the decade-and-a-half young, for well, things – and been capture. upside you've he since likes means you can that of got a housing that do it about that inefficient housing, is an but lot still Senior you

So, see, give my the ask some so that considered I other answer did answer that. you'd thought to it course, thought give of had I and that's two, an questions first I'd the question. those you and

for asset different marketing is you a in multifamily. part could team Not my entirely assisted, certainly The business. It's up. – view. probably yeah, XX-plus, second The not It's an IL. business, not different

won't pricing it just you than they They've senior think see much housing. time. doing business the and systems, do, anytime more does, multifamily and long It's a do akin XX-plus different systems, soon. of a business. better to is we the been for the in do things us I they That business in the type

for see on, that don't drifting very have not view. my I good into that assisted don't independent infrastructure. could see That because be us we I multifamily memory or XX-plus, probably multifamily. So, But taking would fit or care a

Richard Anderson

All Tom. right. Thanks, Great color.

Thomas M. Herzog

bet. You

Operator

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

Juan C. Sanabria

time. the for Thanks Hi.

guys can HOPD the could that maybe And expectations. just was below on Just on comment CMS if hoping give you generally side, how you MOB bit was I on rate CVSs care thoughts a of of about and in the your mergers out some think may Aetnas the the like physicians to risks primary new world you U.S.? the and initiatives putting that it are the related disrupt the

Thomas M. Herzog

Tom Klaritch, that. you're able to take

Thomas M. Klaritch

doing? How Hi, are Juan. Sure. you

Juan C. Sanabria

Hey, Tom.

Thomas M. Klaritch

also buildings. that the Medicare recently are impact historical are from of because mix going are the they that that outpatient in proposed If them. actually going of have It's look than tenants patients, not-for-profits, Yeah. not-for-profit. in really of for-profits came out, that from the too high be Medicare for-profits position to most better a the interesting that off-campus a at When you percentage hospital to then versus be will service the impacted departments rule are

So, we're if portfolio, on-campus. at our you XX% look

So, on-campus impacted facilities rule. aren't by the

for-profit. lower XX% than national is mix the we're at Medicare and average XX%, Our

So, the this of when of we're positions better probably think in rule. one you

more As consider care far Walmart, as the those, primary mergers like Humana and CVS, of of said, we a you as impact.

health I more the at them. look urgent impact to as an centers, retail and of care see the You that clinics

mix of a competition. side and Again, a So, provider in our portfolio. much we specialists at if have it's we're our you more of portfolio, XX% higher actually look on-campus

of make at look you If the national docs about primary physicians, average care up XX%.

it's XX%. portfolio, only our at look you If

that So think we're well-insulated again, I pretty also. from

Juan C. Sanabria

That XX% sorry? what, is of

Thomas M. Klaritch

versus physicians on care primary average. XX% XX%

So portfolio. have higher points much is to what percentage of our specialists we that a in

Juan C. Sanabria

the on of Okay. now, deliveries I on thinking things things maybe then clearly the on on at market will basis. to Brinker to I'm deliveries, of updated that if you're a how and time just it begin weigh you. the when not thoughts starts, the nationally fundamentals turn was when for Any but and frame kind And ideal housing. just Scott kind if Thank then peak. portfolio starts trough, actual are can lease-up but seniors may sure specifically, you not would your peaking about just these hoping maybe related national

Scott M. Brinker

to spending enormous try I'm true The of news time down have your our though impact. amount say, happy What is take can Yeah. But about the to we're but we try in also also exact national quarters in that's it looking a back is good have The it particularly but question. question are to two and properties, declined row. direct at step our – starts take doesn't local starts specific It think level markets, business. that. even really that for answer nationwide. I'll a a we too, at I

XX months actually XX generally to for be takes still next finish that the that And for that from to of the of the XX start most supply course, will complete these to that that offset new being months, excess Of delivered that speaking. imbalance means in likely is XX exists. is demand to there projects it an

remained going more is in So, increases to than like number the But only still absorption that growth probably that X% out. forward. It's in what a strong. that is likely per We we X.X% not, of year. dramatic the couple years think percentage

So, get in direction. the think also I things next better dramatically months, I they right don't worse. get to think XX XX for don't heading but we're the clearly

Juan C. Sanabria

Thank you very much.

Operator

The Chad Please go of next Stifel. question from Vanacore is ahead.

Chad Christopher Vanacore

Thanks.

just how tenant senior of growth with about and So in what relationships? represent expectations those those thinking for your your new new housing, relationships many are then new

Scott M. Brinker

mix. Hey, a Chad. It's Scott. It's

is the in wasn't Atria of it Brookdale their share So, scale. on existing operator, transitions in the taking lion's although

scale like So we'd and do more them. now, to it's with

highly their the of the six Sunrise the Great of I properties. They're transition track think team. on taking very is record. second on list. largest

with to there then, us for properties Brookdale more are this the is them They a Sunrise properties with that a some assisted new around today, like don't small with Florida. we'd the a past handful we've assets and that to properties whether are in living. that candidates and great Sonata very it's job grow with of care of trying to work State as had of Brookdale core in familiar with do existing Florida. transition what includes portfolio actually business really in could great today like very would team be or in successfully with we memory we And the who That Many where relationships we do particularly and well. They we to others to a turned of grow. we're do experience future. in group large fantastic XX them the have We that their

the So, in own, the with, very the operators optimistic we properties housing we about we pretty dramatic senior both what's re-making a way deals way, possible that way structured, business. do incentives. the it align get with the We're business

moving. like fairly direction we're that So, we're we but still the early,

Chad Christopher Vanacore

your gets MOB you're on with clarification million today, where Okay. through JV so. X through is then And Can get you Can then XX adding total your million how just Stanley. statement, just foot that square going Morgan you, X.X in square or square feet and say to walk X.X properties. it portfolio it And million and walk feet for of then, you you exists that? the to

Thomas M. Herzog

Sure.

XXXX leased contributing separate system are is separate. Houston equity turn are that's we're The isolated to portfolio to nine So, formed the acquire with in in Memorial JVs health assets new and venture Hermann, This contributing we a million Stanley X one in in will Morgan indeed but commingled portfolio about MOBs they Houston. A Stanley top the which so and number joint Morgan Venture that to then can separate of the system, feet existing total, health in venture. that of it terms are square be ventures. from similar, the joint

Chad Christopher Vanacore

for questions. Thanks right. taking All the

Operator

go from is Please KeyBanc Capital Markets. Sadler Jordan question ahead. The of next

Jordan Sadler

morning. Good Hi. you. Thank

Peter A. Scott

Jordan. Hi,

Jordan Sadler

to are assets on the for give occupancy below wanted new a Why and describe a this? the are sense sorry, you regarding well Hi. joint last of Can JV venture? I that or – question I maybe – candidates that characterize but these assets. follow-up the new average. the to contributed assets sort bit certainly low, your good just is us know the for being

Scott M. Brinker

Sure, reasons. with Hermann, with here and Houston Hermann. Houston Morgan existing again. half are the are is Jordan. tenant we're also of that the Scott There the in in that One is concentrated is about completely Memorial couple and contributing of Stanley properties a venture Memorial

likelihood the that to are but fit the profile the relationship TIs the have portfolio a We are buildings other to that of from half standpoint our take position they geographically upside. high time would reduce the of still of commissions of little a because would by felt the going it a well and associated market then is maintain just think contributing appropriate We and and capture presence risk and lot be that so older we're lease-up. even footprint. it by risk XX%. just it with and capital properties We like We together to though a thought bit older XX%. they're are do that pretty that typical So separate just leasing assets here reduce And leasing our we up, ventures. market

Jordan Sadler

helpful. relationship And you having on that's triple-net from the to I'm know incremental structure think but of been quite them. I RIDEA having insight. discussions Senior had has any assets guys portfolio. if they're Okay, call it's the then expiration, I the lines versus could structure And some an along on transitioning your bit triple-net conference out-year done you their those lend transitioning know if just rage. that guys Capital wondering mentioned with all regarding are type discussion RIDEA, your a I assets. the have within curious you on of

Scott M. Brinker

Hey, can to of couple add Tom want as It's important may to that; an Jordan. topic. comments and a well. cover try I

the the real higher look receive that's management actually X.X the EBITDAR estate But that So management reflects underlying validated it's are today, about times. is of We by a sell-side already research that from a fees. about leases And well. it the the triple-net number operators. as to payment in maybe rent. of points X.X in standpoint where $XX the that's couple cover. at It's as times case when we Sunrise, That's extremely carefully high times have portfolio property. half the for more important low And certainly below composition the coverage before we That's really million analysts. HCP XX so think quality, that's annual do $XX true at rent million, of fees, X.X it's it after the about around well you it's that as been think of basis

of strong the that So, other very $XX whatsoever are And those on risk there's half below times million credits. a of combination really X.X assets. that's no

these That's of with in are, ongoing We that term living, win-win to cases, years we're have We lease amount And an we two fair lease. an always leases on have corporate but eight relationships, years nine also capital like on left the and asset willing have that to conversation. HCP. to a senior other our many discussions tenant. and understand or lease left, guarantee, includes one left

And not be years a the place at own but the just to supply/demand lot looks period eight of real now, two it needs picture least senior we for conversation now estate, may in this housing from sector time. the any a we So have that years from that lease acknowledge different. well or in

mind to right we things as you'd we do need or do would well that keep about wouldn't anything we think as in Tom, So, add? now.

Thomas M. Herzog

will I transition think we some I mention, at assets that to you've likely captured Jordan rent the would SHOP. of Sunrise it.

to couple there's But that feel That's basis. I on as we that have typically clean think those so just for mentioned something net not based new. we've the up, think spoken that the general, to the consider we a far the case-by-case so And of lease, we triple as benefit, favorable. credit, some if is term is in that of is a that the that do we've last the coverage, long-term play we'll better we have those the structure arrangements that that. be should holding quarters, on

imminent and as far nothing their anything remarks discussed Capital As understand we those. did being there. Senior, that's There's in see

number I a for call. the like them might they big smaller is mistake, But quite mention think assets number if a sounded I assets might to our but I'd they you're made mentioned, the thought think our what record of just mistake. that have listening currently almost the have to for it. exposure than by investors, have No doubled just it bit their deal, of

Jordan Sadler

use forward just the good look and on a then, you to new side, and Cove your IV ramping should ask continue on terms development Okay. that front we what two, expect Hayden? pretty is science as life put you That's dollars obviously looking the where those be allocation do like one of to seems on dollars rents are helpful. more underwriting And escalating, that here? of you One, investment Can yields in I as You're capital. forward? new to going with you

Thomas M. Herzog

science with to the then either the life stuff. I'll – of that, start the Tom Tom life Peter going Klaritch first on science on I'm part turn to or it

Scott, Let perspective, me it. on I'll minute allocation speak that to take big-picture from a and, capital a

all been talk I but it favorable do science well. very you strong. and demand. time, quite about can life is We You as the think add There's

year It's per of be vicinity sizable development pipeline. million. on to looking We'll $XXX We have $XXX in $XXX the million spend million to a that.

square those markets do that I And but had we us up foot do million ramping create life results at in foot, bank. risk, science we continued business expect to level some So a favorable X land we're serves we square leasing, demand not continue that, of growing that should to say, so way much – development. by have it in have such buildable to of that in a coming and undue new there's

much plays. then that be continue exit going so about we flip center and page we chattel we in nice concentration debt expand stuff feel we will we'll to it's on up that would UK we a told types of UK, of example we strategy. on, with are in you actions housing MOBs, transactions to in campus acquire. mezz stuff The a take Houston, or that that accretive, and We're the something that. and off-campus, mezz debt. It MOBs. like science. portfolio good sale as in very to all in housing, some the just those reduce to senior the (XX:XX) going Greenville, there, JV anchored. noncore to the list in would senior add all XX So, continue supplement, clean noncore another typically you And exit of did market then you senior be of or that around different pipeline if our see housing, top we're was life We development selective to a XX is us good If going allowed what

be think money about would So, those you'll three the us we when where go place as see I markets. forward,

it and thinking Tom. to that, or life either how pertains turn it As Peter I'll start? you the science to about to we're Pete, want do

Peter A. Scott

rents infrastructure specifically I Cove, I obviously Phase to on low IV. Pete returns we're Yeah. the probably pretty that you In of since a which Sierra Point, know there. At pipeline through in cost mid which yield The increase the we don't South we're we're getting IV have starting the across too, the increases the better couple in all Jordan. X% the that we anything because San on right it's lot asked and about, Hayden basis, we're here. on and first to there, projects, actually development now going but now. like much risk-adjusted low a with expected was Phases interest of an to a lot question, underwriting than the tracking to of report on we're significantly generally Phase X%s Francisco. Good seen in rental At We getting phases. done On blended III that and now, just do started project we've

us. think risk-adjusted you those it's for and think about capital yields when of work, to strong a putting So return we very types

Jordan Sadler

Okay. Thank you.

Thomas M. Herzog

Thank you.

Operator

The next go ahead. of Tayo Okusanya from Please is Jefferies. question

Omotayo Tejumade Okusanya

Hi. over Yes. California. Good morning there in

Thomas M. Herzog

Hi, Tayo.

Omotayo Tejumade Okusanya

around guys of A quick yield. question JV X% The about you acquisition the again. Greenville, the portfolio just are talking from a

guys of think I is But the about is trying there? of to else lower. seller in else it expect part meaningfully that missing difference. to what that's rate you talking get. a I know kind – JV the is I of just cap kind what I'm reconcile am fees

Scott M. Brinker

Hey, Tayo. It's Scott.

joint is acquiring that you, the cap X.X% it X% our we're Let the actual portfolio forward inclusive we're release fees to the mid-X%s, venture earnings originate for the rate about deal. is on to property-level me and The the in the roughly for NOI. of earning that clarify manage try the in

plus than That minus put capital to sooner million. later. some the going will are likely $XX We buildings, or into happen

part consider brings around down about of fees. our So X.X%, the basis initial cap we venture that investment to inclusive X% which joint but rate we're the just of still

Omotayo Tejumade Okusanya

forward say in meaningful you when portfolio well? you any for assumptions as making the then NOI, one-year are And about the lease-up

Scott M. Brinker

closing with nearly. Greenville the No. of XX% We entered into – will space enter for at into new leases

is to So, this underwrite easy pretty fortunately. one

Thomas M. Herzog

portfolio XX%, slightly or asset overall, lease in right the status And – that, is now. above that

lot upside perspective. from a leasing of not a So,

Omotayo Tejumade Okusanya

Got you.

Okay. should helpful. a overall keep Again, guys just and That's quarter good was thought you it executing. again,

Thomas M. Herzog

Thanks, Tayo.

Operator

The ahead. of Stanley. next question Morgan is from go Please Malhotra Vikram

Vikram Malhotra

for Thanks the question. taking

quarters. to hand, all leases. indicate Scott, things the to then be may the of wondering to you below months, X correct two, sort you They're a wanted other go exposure still buying across Just times longer times could could could x-Brookdale. on challenging. replacing varying be XX – expirations. them – it RIDEA, of and challenging, operator? about addressing We may in a to just back do things next pretty you have think to well these? remain if covered of maybe obviously trough, look close net But conversion the several replacing how you XX the and It or with triple X be like – I'm covered one you're – them the out Would three some these seems they very

Scott M. Brinker

Yeah.

Vikram Malhotra

what just you address them specifically, more of Can kind your some plans of are?

Scott M. Brinker

operators Vikram, our plans and we're I with status discuss Yeah. tell to that partners all I don't want their particular them. business the of of with highly our engaged you can on figure this what the are And cases, out. do we've most in is the to performing, years, strategy, the several going to news with properties relationships. and and got we're good how

So there's paid. There's being no urgent of not risk rents need. zero

credit do. X.X, things are of take below X.X. an number strong these we leases, if there's that's it's to it's that important could there behind many away But slightly any think cases, standing and that point below I in is only

under properties they and need the as lease as get much of don't Some CapEx be triple just to refreshed. net need

So Capital of net is properties In example. we under We operator. and We've to down can whole the those could can handful do a be an triple We lease. that that of RIDEA. aren't lot lot Living with a of a do decision and driving that few under the got that a of high-performing very you're left so you'd make and do new the it Senior doing case assets. sell very may with that portfolio pool the properties a that high-performing well, are cases,

it and of to going and options lot shareholders the for a we think to got thing out, figure the we've best So couple of we're time. a do over years that's

Vikram Malhotra

did a to create to trying sort any sort Okay. like in prior sort time housing, talk now hiring you that platform more to and want would people these you to sense systems, of using your that you do, you spend enable can like the more more more of Sticking maybe That's company? assets, – data maybe at manage of probably building data the you can out portfolio you helpful. of about maybe – what looking through senior

Scott M. Brinker

made Hey, systems remaking operating the the and drive performance. that on comment senior and the to portfolio, making team Vik. we're earlier, business. that we're be the includes to massive necessary the includes partners, progress That I the going are housing

making we in the team So and about feel we've the we're that progress got great place.

We're quickly our place. as So this to excited super off turned dynamic It's butts can. we as be a get working here. around I'm to

Vikram Malhotra

especially maybe timeframe hire over more about sort Okay. – just need Do you I'm you a that all incremental? think all, how people? Is there would is to overlay? But or build-out? to build out like you'd I'm clarify. you need guess the – – kind systems and and processes is talking this do what it just systems you'd one-year you'd that build of so like of to I Like trying you to Do

Scott M. Brinker

in it's sure. Vik, Yeah. process for

We're the that in They of those progress. – talented really systems the making some Tom in putting team we're start. years head in place. rapid came have huge process ago a So brought and in gave me two almost people.

enormous So to point; years, I we're is to in that's last the even made be And that the striving make always two XX better. at more think in we're going been progress. months that know get enormous. I done last progress going over the six we're next don't the months, to

for HCP one in – is there the opportunity just senior enormous housing HCP. learn improve there thing it's and a housing to captured that's going product. about think, real senior all it, I from, It's that's be There's to of efficiently REITs. and other I sectors it. all well that for all It's happened we be can that and that I not to true enormous so think estate demand like things is upon new that such

the about can They excited all well. improvements. as we're do it So here

Vikram Malhotra

picture trajectory of can sense we a get on Okay. had think life good life for guidance. to how looking Can trying Obviously, puts you for side, give the next year, that not you've the numbers midpoint one we and or start the thing? clarify just just should goals. On think as – towards science us about traction you sciences? just to for of year you're but I'm some specific next tracking guidance about last same-store for you big takes, the mentioned NOI growth,

Peter A. Scott

leases Good Vikram. Hey, Yeah. which XXXX that as half the Pete a some year for for half second, question, from we numbers just first the here. help Maybe we've some it's occupancy second sticking to signed do expect ramp this haven't with just in up will commenced our yet.

where that to have more Without that length. I've a mid-Xs. feel that XXXX. for basis, would said on market our XXXX relative talked would and but now about that, where and falling – range our it's normalized numbers looked we're have falling On at maturities say and at we in impact that I average. XXXX, have we and Rigel specifics So good in been lease right we pretty we our just timing far the out going into we've out. a for we're year feel year at below about bit it my we're quite thing, prepared We did roll-down did this about remarks which this like not a

experiencing rates maybe see we better good that the want so perhaps would as years. growth than could that. this nice And runway a mark-to-market, even ex specific couple I year as next don't Rigel numbers, say I pretty it but to for give the the normalized would be we're

Vikram Malhotra

it's a of is? saying, and mark-to-market given you're the just combo where essentially bumps occupancy So

Peter A. Scott

Yeah.

now, think be up bit but by a mark-to-market will mostly the the we're tick probably mid-XX%s will really little maturities. and that, could it driven on beyond in occupancy it I the lease –

Vikram Malhotra

Great. you. Thank

Thomas M. Herzog

get we also, upside have we some had been than leasing the stronger has developments been where these online anticipated. as And coming

flow to through going that's So as well.

Peter A. Scott

same-store through they flow our of the earnings. certainly matter That will when a way make their just into pool. It's

Vikram Malhotra

Yeah.

Thomas M. Herzog

think about impact. bottom always the line I

Vikram Malhotra

Great.

Thank Okay. you.

Peter A. Scott

Yeah.

Operator

question is ISI. from next Please Sakwa Evercore go of ahead. Steve The

Steve Sakwa

morning there. Good Thanks. out

Thomas M. Herzog

Steve. morning, Good

Steve Sakwa

look look office? mix guys triple the page between, chart senior is what those as your going of are XX sort at SHOP distribution, some optimal the you mix, medical changing, do say, life areas I at just you pie think net, science, of the When of forward you housing, you realize but look you and and for to be

Thomas M. Herzog

Yeah, sure. these And Tom is few all not Steve, years. talk over this on somewhat are that focused – senior but housing. life I so of the and next are aspirationally exact, science, medical three equally, course think would office, again. we I numbers would let's segments

three triple over perspective, transition segments about we've a From the private do movement the pay makes over continued spoken think in of time, some SHOP small. you'll the nets think it estate when I pretty third, a housing, to we to. So from Sunrise healthcare. a real like third, see senior And a call when time it that of sense it's third hospital

coverage. We have high

of foreseeable some that for our the future. least portfolio at see over probably in You

a see disappear. You're of to will And course, then in That spoken the that's going the as JV, likely smaller UK, we've to. component. unconsolidated

we how that's four, see if you look So three, to five years the pipes now. are looking were from up

Steve Sakwa

take of so sort could steps look may before And that better. assets of and worse of of for? just get spent and like appreciate these the that comments I or just kind we have us of what the get are operators maybe I the guys the transition they you know these think stabilize in transition two early to it take. sounded you of things? I you as a things on a And some kind quarter realize, you assets, little help Can do But unfold Okay. and what sort through steps the of time the that lot time length

Scott M. Brinker

mean, Scott. is keep XXXX, in mind about I'll it's and way take to try August. these Steve, back here the in to made thing announcement one in early November are Hey. I transitions we we that. that

or months. So, eight been it's nine

can at of couple three- and of occurred cases, minimum, But license inside the in announcement the have the transfer transitions some of took to that really months new there's the property. of is some the until between a months license when And a that there nine nothing actual do transfers or eight a lag, place. Now, operator ago. four-month the

in of and to team man's land, period place that is uncomfortable staff in local an long the a and be where there's is So, between no in. sort

interim, And going to we've be be leadership that your have teams over right changed, it's build hard about doesn't But of can referral goes you build if to to culture, leadership then, to overtime yourself in goes that's high happen imagine for lead those If say, the And hard labor to happens, is building. seen uncertain likelihood the way needless team staff, building, team, find and your relationship. and the local staff the properties not community the to staff, a contract think next. and that once morale pretty with is that changed there would about it's the putting a gets decision. half shoes, thing up, positive you're time, to-date. have train what's going a way the market The leadership the the And a up, property and out. in transitioned we right the that the the transfer

of occupancy. a is generally you're three implement it build culture, rebuilding nine that new at you nine-month new team, start in can So, really to that. at the the process, the where position And to that middle that right three- a outside so we're low end, really in timeline

– now some are We're to still some the in before deferred – trending teams now Some cleaned sales the to the start comp, time and the that will in from early of of we're are March convert late happened I up, see after has the property to in to a it's and terms XXX XXXX, the more turns these higher transitioned fact. properties going sale place, in in momentum starting this signs be growth already that's leadership on we're improvement XX seeing it positive some And maintenance likely into it's the later The at Atria are sequentially, say, been although, occupancy transitions the that improvement. rate March, that transitioning days August. inquiries year-over-year that that XXXX year. why

Thomas M. Herzog

sit with with how add, five-page opportunity they transition. It's go a they approach Steve, all and go highly that teams, how different lot as that and when are – at the Winkle Quite the professional the they along impressive, transition Chris of of on to John would to Moore through the a it. they had I steps it. occurs done they've I checklist

what the condition et things. they received will One variety deferred kind operator the property, of cetera, of staffing, have it struggles different of the that in, they is any the a is when inherit condition, replacement what maintenance,

of whole delay So period it's as they had due we bunch especially Brookdale pick it, so More the situation. transaction uncommon announcement up, it a different time the a that required just of work earlier there's in, operator longer in comes announcement. which the an the when facets to not of timing time is the replacement do. And to these to difficult by had more

is it's be last determine. But it some The occupancy So, of to that upside. though down operator picks that further drifted should it we timing they surprising recover clean to same and strong that it at as than terribly there up the had not hoped. Scott's point, replacement up, and time pretty had difficult they

Steve Sakwa

very Thanks guys. much. Okay,

Thomas M. Herzog

You bet.

Operator

The next RBC go ahead. of question is Please from Markets. Michael Carroll Capital

Michael Carroll

the just offer you just you trying on to discounts recapture Thanks. to or Scott, of can focus do mean, – rents? operations Do occupancy? they a is I significant of off more that the overall, reduce rent that What comment little do, their harder? do on to kind does them made. What Yeah. do of it they last bit manager have

Scott M. Brinker

major to least seeing at incentives not We're Michael. relative discounting last year. or Hey,

of through point what's that's driving falling It's what's could assets. occupied for We creeping we chose basis the lot are We put of think are were over we the these XXXX about and they're These XX%, sold really when that not not have in opportunity XX%, It's that's effect that properties these there's because assets. have So earlier, of time. I they than sell. today January billion rather XX% a that to why occupancy lose, a of XX%. And every mentioned And good to occupancy-related. margin them we pool. numbers. multiplier decline. our is maintain you easily $X chose and in

delivered to XX% local go so XX% kind instead What care is and we XX%? confident from relationships demand, so reputation about it's national new happening rebuilding supply can we of that team? and who this leadership So your property really of to business local starts is, in to happen. market? but at with what's and are being XX% the their So talk is going matters that the what we're is What a

slightly Triple capital investing in may sometimes the we had structure point, reason XX-year-old in new ability at they our as some level that's as they They the supply, assets compete A effectively. in alignment really and some leases interest there that that's of required good putting the years of staff love XX of okay. haven't property are a that They're as a and properties be to and net make locations, least into these at these are we price capital particular, isn't may into right that to not with true of one tenant We don't have of be the attracting well, that's is great lot much but old. sure lower compete all the need buildings. need the that always to to.

for a of we But market have doing I that visual think these least it. big that. a and at there's initial pass properties lot test, to we're

So that into bit little physical some because us, even give a going competitive. to great we're that not they but them we're for a we doing capital reason to need of do that's will Sunrise, job is And we're a put one redeveloping, plant redevelopments. Atria, the ones

Michael Carroll

higher given new quality mean, you Class performance assets? then more? product and that the right housing I and difference think impact coming between has a far, A you I do what Class performed now, B to little bit Is change the that in are the in? the so guess marketplace better senior stuff And that will seeing going space

Scott M. Brinker

of country to it's just a we growing, it than would markets unless several the is really and just even definitely those a there But driving It's a old is actually comments we've that new versus hasn't much across the Yeah. where property are newer that supply/demand I go have have been imbalances couple are an and imbalance, markets. too making there that we and generalize. the business, and of this where demand also number hard those in, so back is local demand/supply to what's older properties, supply though that's reinvested physical think more – struggling. offered, And Atria quality I bigger not or it's but see think just the to of I making increasingly senior part that care the will case, And today. Those operations and whether quality the that the you housing are difference are is the of one incrementally the turned even it's starting really it these transitions important, being of and we're delivered, staff. around. Sunrise the it's as training that's be considering a that delivered, operator business services value plan quality the things more the get to of reason plant been

Michael Carroll

Great. you. Okay. Thank

Thomas M. Herzog

Sure.

Operator

go is of ahead. Citi. from Smedes next The question Please Rose

Smedes Rose

the the just which latest or to you ticked additional the wanted it nine the with you Are term? now. Hi. near with near members kind in down would you I to changes to think term in composition up board, your of addition Thanks. I board any expect ask

Thomas M. Herzog

Tom. It's as turned have do have two brought nine, that mentioned. XX. Sandstrom We to you Yeah. Hey, Kathy directors the board Adding Smedes.

restriction extend If year in a reason to really a past a we've subject you As consider somebody an place this to may good age can February, XX we put there be waiver. that. for is aware,

that So, more close do as with refreshment be with completed put to period look over a and we bringing bit the together. over we'll some good process XX time, board dealing on we member I feel X, or think it, forward, call will And being so. the about refreshment, we're but months we've another awfully the very board getting be little next, of

Smedes Rose

where way look change you Okay. just you this, there's continue Thanks. new joint you JV that – to that you third if third, something exit have of contribute the And can sort with of raise one? then, having and – would se? before, you the some is the what assets what's as you and these about strategy capital strategy to pursue And ventures to talk as mentioned a versus your per mentioned compositions third, then that are have to

Thomas M. Herzog

kind attention generally, question. partners we The entered to necessarily ventures, ventures strategy. imminent Good they pay are any to attention to to an ventures as intent want, into, hold There and the by they're lived yeah. the venture there period, – not pay leverage exit achieve, what that that longer cetera. so The the we've et seeking of is

and time. one-third, As we identify. aspirational third, as I would what plays one-third, opportunities to is depends It over out the circumstances on it that say

programmatically? had JV JV. would have strategy consider on is We're take do to before. take There'd we It's programmatic in a question nature. strategy. not good to that As far I've The would as answer that the we have strategic Each and to to JV would JV going no. the on be a be that a reason

achieve. the partners a of would take it strategic And potential solid seeking good and us us, opportunities match for our consider and what and if We number and have we win-win there's then are, it including our creates does outcome of factors a create to into to a cost partner JV. account capital what and they're a for

that's our a JV As program, programmatic far not plan. as

Smedes Rose

Thank Okay. you.

Thomas M. Herzog

bet. You

Operator

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

Lukas Hartwich

morning, Good Thanks. guys.

Thomas M. Herzog

Hi, Lukas.

Lukas Hartwich

Hey.

the Was been something something just impetus for for was I'm opportunistic a What while? you've So or was the that that curious. that was JV? new considering

Thomas M. Herzog

want Tom, take to do you that?

Thomas M. Klaritch

Sure. Lukas, looking and new Klaritch. radar. for our on We've a market has been this is now, while Tom been various at entries Greenville

We which the they They've managing of number portfolio, good management Mid-State discussions the the the area. They and solid in is affiliation health in demographics Health the there. a State. provider years like had and MSA Greenville market. have team. is the job done the with like largest their the over Palmetto system The completed have the largest We We past in Health an really the recently years. System with

us. the XX% system market health over think largest a affiliation with grow the them just they for market time share. and working created it's We is So really there new in about with opportunities nice to State

Thomas M. Herzog

just this then Tom, of period clarify, particular you've a working to for been on transaction time. And

it basic back So to – question was... is to just his the impetus

Thomas M. Klaritch

improve to with new expand system into It good metrics. our a was and portfolio overall market a health

Thomas M. Herzog

Yeah.

Lukas Hartwich

just was sequential in a just or but small, follow-up, assets. the and changed better pool the I know improvement then it's performance, I the Great. was the it because shift And quick to of know operating SHOP number the results that related

operating or a performance change it just is was So the pool? this in

Peter A. Scott

Yeah. pool. more a Lukas. It change was in Hey, the

Lukas Hartwich

Okay.

Peter A. Scott

XX are sold from XX those went to to of Apollo. assets. properties that the being We A lot Yeah. are

Lukas Hartwich

you. Thank Great.

Thomas M. Herzog

Thank you.

Operator

is Capital question Markets. John Please next The from BMO Kim go ahead. of

John Piljung Kim

looks your for Hey. the and that that little guidance same-store I achieved? contemplated pool up change than just bit Was you in therefore would year, what the want follow a question. the that on to better

Peter A. Scott

of John. half lot are Yeah. some right now It's continue Pete There's No, point plan a pieces. guidance. there's of assets, And in between still And the and could and out in over have as pool to that year. a then further thing moving change are evaluate between is pieces. same-store that which some – with marketing But year, Hey, the assets pool the now I we'll would the our there redevelopment There the end then was will Yeah. to moving one just and we and that these of here. assets. the for the underperforming second contemplated regards the impact for they end time, many we're come sale could of out well. now

John Piljung Kim

minus So of of the that guidance full-year that is on lower and assets year performance Is correct? a pool XX, X% that X% than to full portfolio.

Peter A. Scott

Correct.

John Piljung Kim

Okay.

fees. I sure that fee ex the that. I cap to as include correctly. mentioned But know than lower Scott in I if so, fees. I it's origination quote? rate think Brinker mentioned X% want of fees why the And think includes heard you I a that on make the the cap rate part just JV onetime

Scott M. Brinker

it paying time. over they're Well,

are the that will of there's then venture member acquisition the time. paid, over paid and asset managing fees we management it, because the the are fee an So fees and asset being be managing

it quoted that that's way. the reason So we

John Piljung Kim

where can to portfolio are first And the entire development Okay. finally then for life you sciences, your quarter? this compares pre-leasing where in discuss levels on developments the and

Peter A. Scott

goal is big LOIs, big on this leased actual campus at we've there the but now the of XXX% lot quarters leases have had we to pretty in stab more have Point. call report The all quarter Pete We've to point (XX:XX). Yeah. were quarter John. signed, from on Cove-based and Sierra XXX% But in to of those a when essentially interest Phase on And leases between executed X% last quarter as don't on far those just the last from movement committed on we is those. leased the a I gone to this at we so Hey, well now. can of quarter that. here, couple take have IV quarter as so we a it's time, this last next grade

John Piljung Kim

what million is the pre-leasing the $XXX So levels of of development?

Peter A. Scott

Yeah.

in the are in I, in at between aggregate Phase XXX% Cove and which pre-leasing we've projects levels have this all project, are Phase got point So split this that's III any our Cove it's now, signed then XX%, time. at we time. Sierra Ridgeview and on but three the leased now IV then Those leases right the just Point those is project. over point And don't Phase Summit Sorrento

binary. projects is at up come quite that then on now So it's the we've XXX% other pretty working really on we those expect But to and are We've the projects balance got while been for a quickly. zero. X%

John Piljung Kim

very you Okay. Thank much.

Thomas M. Herzog

Thanks, John.

Operator

Your mute? next Is with Hello? question Bernstein Daniel you. is able One. not from hear We're on to Please Capital go phone ahead. your

Daniel M. Bernstein

Yes [Technical Difficulty] (X:XX:XX-XX:XX:XX).

Thomas M. Herzog

Daniel, are you there?

Operator

I'm on next Sarah is go phone mute? Sarah, of is We're able your Please sorry. I'm hear sorry. you. The Anne JPMorgan. Hello, question not ahead. to from

Unknown Speaker

me? hear you Can

Operator

Yes. ahead. Please go

Michael W. Mueller

Hey.

Mike was The Sorry. in. is this fixed Hi, line Mueller.

quick question. Just

comp. housing, sold? a of XX% same-store are the actually capped as XX sale transitioned pool and senior this the how properties you For many that transition or that XX have in versus minus in sense will those that generated be Do to

Thomas M. Herzog

Yeah.

we would and are decided in part marketed, it are actively a exactly, on received. number that prices There being haven't We that the depend Michael.

just held one we pieces trying of So, transparent how can XX will each many we'll the results be from have lot count. quarter a component, of it's better by versus pool hard certainly a many those there's sense to But as for as moving and moving about be say the that pieces it's yearend. sold. but of the different to reasons that We're today and next in

Michael W. Mueller

transitioned being keeping, it. be to the know you outside of Got many you're process same-store that how of just then, pool? but in the are they And happen

Peter A. Scott

Hey, Mike.

Michael W. Mueller

Are there other properties? Yeah.

Peter A. Scott

XX. is, few. are. XX a are say the are I transitioned not there SHOP triple-net are can page in assets of your in assets It's same-store you on housing of but supplemental that than And transitioning, more the would There few. our a got Yeah. where getting see are actually It's pool There are senior we conversion. them. you to What

Michael W. Mueller

Got it.

Okay.

So it's another plus some XX. basically portion that of XX,

Peter A. Scott

Correct.

Michael W. Mueller

it. Got

it. you. Thank was That Okay.

Peter A. Scott

Thank you.

Thomas M. Herzog

Thanks.

Operator

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

Thomas M. Herzog

you or talking we you and thanks your to seeing operator, you, Bye-bye. soon. to interest your look continued in all today either Thank to and and for forward of all time HCP,

Operator

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

may disconnect. You now

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