Healthpeak Properties (DOC) 12 Feb 202019 Q4 Earnings call transcript

Company Profile

Participants

Barbat Rogers	Head of Investor Relations
Tom Herzog	President & Chief Executive Officer
Pete Scott	Chief Financial Officer
Scott Brinker	Chief Investment Officer
Tom Klaritch	Chief Development and Operating Officer
Troy McHenry	Chief Legal Officer & General Counsel
Nick Yulico	Scotiabank Bank
Jordan Sadler	KeyBanc Capital Markets
John Kim	BMO Capital Markets
Vikram Malhotra	Morgan Stanley
Michael Carroll	RBC Capital Markets
Richie Anderson	SMBC
Jonathan Hughes	Raymond James
Steven Valiquette	Barclays
Chad Vanacore	Stifel
Omotayo Okusanya	Mizuho
Daniel Bernstein	Capital One
Michael Miller	JP Morgan
Lukas Hartwich	Green Street Advisors

Call transcript

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Operator

Good day everyone, and welcome to Healthpeak’s Properties Fourth Quarter Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note the event is being recorded.

I'd like to turn the conference call over to Barbat Rogers. ahead. go Please

Barbat Rogers

welcome call. and statements. fourth financial quarter Thank conference to call conference Today's forward-looking will results you Healthpeak's contain certain

Although, reflected based we expectations forward-looking believe are statements in on any assumptions. reasonable the

are a statements filings results release of undertake and our do to actual risks materially may differ risk with factors any We forward-looking forward-looking and is not uncertainties subject Our to The expectations. press our the that update our SEC. detailed from duty and in cause risks discussion in to included statements.

accordance an discussed reconciled Certain exhibit The with X-K of measures GAAP www.healthpeak.com. measures the available with will also non-GAAP most is in furnished non-GAAP our financial on our Reg be this we G the website have call. at In comparable to exhibit requirements. SEC on financial we today, directly the measures

call the our turn now Executive Herzog. will over Officer, Tom to I Chief

Tom Herzog

With President Chief Officer are Good Legal portion Barbat. today Development Chief Scott are me of you, Also the Officer. General and Financial Pete and our Brinker, for Counsel. and our Officer; McHenry, and call Troy here morning the Thank and Chief Klaritch, Officer available our Q&A Investment Chief Scott, everyone. Tom and Operating our

In release a our last fourth signing in guidance. full expectations. Life details Sierra Our line prepared also in as Science as previously Pete $XXX several provided in full-year executing earnings at property strategic well provide were call closed million Hayden active with in results segment earnings Since year contract Point in Boston Hayden and quarter issued more financial and our Francisco. we San last will near The Research development We're significant remarks. acquire we to our announced quite our XXXX at a pre-leasing transactions. Campus his night South Shore our

XXXX state of describe see play. let As Company how we me we position for the our current

of execute strategy segments that will across Science long Medical all Senior portfolio continue successfully platform well a Office. deliver and pay building three we First Senior core results our private is balanced of now believe strong term. and Housing the over Housing, our we portfolio and Life purposely to

We and better At alignment some with exited same position most many time portfolio. attractive in the the of strongest progress in the operators have markets the achieved redeveloped the selectively or and non-core an to asset made country. we sold markets

housing our in point higher into XXXX capital specifically newer Oakmont of investments assets announced and of X.X barrier and portfolio. our More we and the billion reallocated priced $X.X in Discovery CCRC and notably our non-core acquisitions. billion Most with entry senior and higher sales to that LCS partnership portfolios

reduced of only been our monthly this XX% RevPAR operators by effect operator. operator redeployment or less. transactions one concentration XX% but concentration to has any broaden property with XX our improving age from one advanced average reducing X,XXX These XX to and our of to reduced also with of per not unit leading base Net goal years any our over our

XXX and portfolio we our our of markets. acquisitions core developments $X.X materially In Life operating of million billion Science strategic expanded completed through in

development leading just from market feet have XXX X square sub our Route near-term to growing million position We established a markets pipeline. this years of further West in in Boston, core in and active including X.X Cambridge the two

$XXX program Medical campus HCA medical development with anchored of In a in located and expanded spend in we further development office million high-quality, almost accumulating office, pipeline on buildings. well our proprietary

development Medical business Justin welcome supporting also vision expand Hill Healthpeak's for Office lead to our segment, business. the MOB to We flow

of relationships to value next have we support operators our senior the to of healthy options built four Oakmont years. $X.X pipeline on over creation. the development housing are acquisition Discovery pipelines our future developments, we acquisition Through a billion partners and and including redevelopment and Second, with positioned have stabilization well growth purchase and over

almost of is $X.X with development of pipeline billion. of XX% and active which projects $X.X redevelopment entered pre-leased an for and We XXXX billion, future shallow development pipeline

Third, rated rating the financed and are BaaX BBB+, three conservatively by we are agencies.

sheet and strong we Our have is balance liquidity. ample

equity forward while of to positioned the a to within target raised the last XXXX With end where year over our in months EBITDA XXXX ratio several fives. high our execute mid to debt plan solidly maintaining range net

made very on automation, Fourth, data. we have including and systems, we improvements in the with team I and our pleased am place enormous infrastructure have

Finally, we longstanding every continued our across receiving category. of awards on the XXXX in front numerous ESG tradition commitment ESG

Board of five our talent Lewis, average to Sara now of We have added an also years. with the addition tenure new Board

business summary, good are and for feel XXXX optimistic our very we our about beyond. and position about In current

the I you turn to concerning Pete policies. provide over press issued would I like call on background the release Before our SHOP some to yesterday Same-Store we’ve

metrics investors the in communicated and that space. had the Number and analysts comparability desire lease of healthcare to for us the Same-Store SHOP more

same section our XXXX. two however, of of rationale material Accordingly, posted disclosure accomplishment policies Healthpeak existing one our of we the policies our of -store and clarity presentation and to investor Majority and January new we of added all the policies provide created of effective modified to item components X, website. this full unchanged remain

forward, share. we include at going will First JVs all

Same-Store share useful Brookdale in of prorate the housing investors of With JVs provide the addition the JV to senior determined our pool. all we to recent

going industry properties Second, remove we forward better from future Same-Store practice. align healthcare will with transition to operator

we separate of However, disclosure if results. continue provide will portfolio material transition to

results forma were adopted the provided providing To aid XXXX of full we begun we’ve expenses. Same-Store Lastly, in operating of the year impact XXXX. revisions for fee component these the have understand changes as management pro these

or that will disclosure all FFO earnings, practices time. is and best affect of no keep AFFO. provide and Same-Store mind of treatment that important other other Same-Store performance policies represent and metric purely concluded detailed our Also accordingly not transparent be have this SHOP at We and our made in a to GAAP does changes

performance same begin most XXXX Same-Store to and more sector REITs. we to the the common others in in Finally, will other rather using conform terminology property than

that over to Pete. With turn will I it Pete?

Pete Scott

an Thanks market XXXX a today a assumptions. and on start results, recent Tom. activity guidance related our our update with our provide and of of discussion end I capital will with review

our We results. financial ended strong year the note. on with Starting

the For blended $X.XX per we share of reported growth adjusted as cash fourth X.X%. and FFO NOI Same-Store quarter of

For of of and the full year XXXX NOI we cash FFO $X.XX share growth per reported adjusted Same-Store blended X.X%.

December active had redeem paper proceeds the activities. revolver of to in our Turning activity. bonds November repaid and debt X% capital balance remaining an sheet our balances. million our our maturing $XXX in million quarter with recent starting markets issued to use and we $XXX In the commercial bonds We We XXXX. fourth XXXX of

quarter and offering credit. seven a profile. of further under improved average our years weighted our extended redemption Successful of our tenure to maturity ended approximately the debt We line adjusted EBITDA of X.X debt net and with capacity times $X.X to and billion

November under Moving raised and activities. From through January on ATM our $XXX gross $XXX equity follow early approximately on total $XXX our proceeds offering of to through program. million we million million

the equity was structured under contracts of in to All forward XXXX. expect which we settle

the opportunities $X for identified forward have allowed stock our to agreements contracts we development remaining $XX for and under sales today, of our shares match of acquisition Utilizing us equity activity. billion. forward and fund over better million just common for redevelopment required As

to dividend. moving moment let Before guidance, our me a on spend

to expect FAD plans share the $X.XX ratio payout our our FAD year full to in of was XXXX XXXX annual per our we payout in again a covered improve to XX% dividend range. with Board fully with the our at XXXX Accordingly revisit dividend decided low XX%. XXXX. For ratio into maintain a it

to our now Turning XXXX guidance.

to X.X%. our adjusted and between XXXX We rate $X.XX blended X.XX% at cash X.XX% X%. as to positive other of X% per expect Science Medical senior to at Life full and of components growth to are X% year The X.XX%, $X.XX at at follows. per X%. blended NOI share negative to range X% FFO X% as growth Same-Store housing Same-Store share to to Office

$XXX We are year. compared high-level as the difficult expect uses. the $XXX purchase option the of Starting in million sources over North $X Fulton from the our to of with including drawdown face and second the of following of Same-Store capacity. to early dispositions our lower we sources and capital, in just half and Hospital half million Included billion earnings equity debt within XXXX forwards. comparables growth of more our the guidance of non-core first be

by following; $XXX anticipate From our million related which primarily and acquisitions redevelopment funded fully to of post the the perspective is debt Oakmont of million purchase $XXX to driven opportunities. we transaction. repay and usage $XXX activities Brookdale million development of the spend pipeline the consisting and other is capital and options

XXXX. primarily pennies including of half X.X%. cove FFO from pennies Starting four midpoint of of developments guidance and We as six on Let We the a earnings a pennies of phase from two pennies see half FFO positive benefit of growth coming compared the the from online. our positive positive NOI me Vast to positive the our one the transaction of minute blended impact adjusted acquisitions. XXXX we from now of impact is and assumption positives, of growth spend this four pennies Same-Store and shore. penny phases of final assumes from Brookdale XXXX see first impact roll majority transactions with see on forward. a the The our

the now Moving to some offsets. of

capital recycling of which pennies four negative impact was have heavily We from XXXX waited. the backend rollover our

of some portfolio our rates Prime cleanup portfolio. as with Care dispositions the cap materially derisked transactions high included final the our came UK XXXX legacy Our DFL also These asset. dispositions such and but

tenant. a We projects result recognition leases. have in if rules substantially do improvement to until rent negative a of of the as received certain revenue impact two is FFO pennies completed even from cash recognition revenue rental deferred tenant not Counting are related allow

delayed $XX For the lease XXXX half is the with this this Celgene where with at just their amounts TI to to build-out More due of the was Bristol-Myers. over associated merger than shore million.

cash we though in FAD. to rent this include get do Importantly

and term We redevelopment opportunities redevelopment value creation from of drag penny have spent. see higher development and long with to continue significant immediate this term year-over-year our an is we for All drag one projects. development

shore. three phase accelerated have We of the

the broken and have added in Boardwalk San developments. have on we Diego more HCA ground We

see bit as in from Perhaps XXXX four items. net guiding compared various with to in a well. pennies In increase XXXX. we guidance puts we Finally, are our one of for is negative other penny conservatism of there the and takes all

a to want our we We for to some was see important our important I website. supplemental Guidance the page to of complete guidance it We on list on briefly felt of touch expand XX added Addendum assumptions. topics.

First it fits a overview within expands Boston and synergistically our the of footprint. post quick portfolio our included and how acquisition we

our the Second, development update pipeline. included on we status an of

contribution we earnings result for our a active several next expect As development years. from of pre-leasing pipeline positive our success the

week. last transaction just a quick FFO to reaffirmed included we We our Brookdale we transaction closed FAD. mentioned Third, on is as the and the update neutral modest which accretion

Finally, with fourth we uses, included components guidance sources Same-Store our as of additional breakdown growth a detail projected an XXXX roll blended well FFO as NOI of our forward. on the a and

turn housekeeping Few I over before Starting the to items Scott. with call CCRCs.

in expect consolidation million $XXX to fee and we on book to management expense. the gain quarter $XXX million first million approximate The a an $XXX termination range

FFO adjusted. be items Both excluded as will from

of is as We components in over CCRCs to covered six entrance expected [NREF]. more or value be to all determined remaining fair nearing of commonly the and amortized referred in of million of are $XXX guidance seven the fees to million of length approximately non-refundable actually value the completion addendum. expected of [NREF] detail years. to more approximately including fair items fair These analysis of stay value the The $XXX are an

to first on effect the reporting financial in some Moving that will take quarter. items

reflect the the cash of fees aligning FAD, basis accordance are EBITDA on accounting amortization non-refundable definitions in to NOI rules and we with a First entrance consolidation GAAP adjusted

collections XXXX cash amortization. REF approximate to and GAAP are and NREF expected

excluded in and fees Second million included refundable now approximately of entrance from net be will debt. $XXX accrued liabilities

XX we name with changing the AFFO outlined changes to be of These on FAD industry the are a supplemental. Lastly, of consistent along page norms. few with to are others

like turn to over call I that would Scott. to the With

Scott Brinker

was XXXX. year reported I'll cash Pete. level of segment both leasing represented pool exceeded high full we activity of X.X% results You and by NOI mark-to-market guidance original with which Thank which Outperformance Life our end Same-Store operating XX% Science In growth of above our the range. our of expectations. driven start for

million in of quarter. we feet square year executed leasing more square full X than including feet XXX,XXX the fourth the For

We growth rents expectation. leased NOI higher in exceeding office was Turning more ad our by primarily Dallas. represented retention City to medical of cash our square pool. end of and high XX% expected original range. million at Medical Same-Store our which guidance of reported Outperformance above feet which X% was than than mark-to-market, We the XXXX strong driven X.X

X%. cash the X% Housing, property year and X.X% triple-net Senior our announced XX% Full growing venture joint represented December Brookdale with portfolio. declining managed Same-Store in total not X.X% full-year we increased policy pool. SHOP Same-Store Senior triple-net have were Housing SHOP previously excluded results to the in on of effect and In of our Moving we JVs NOI our X.X% SHOP unconsolidated SHOP in removed Same-Store which closed XX original SHOP in with numbers XXXX assets all removed would our guidance. above from properties These Had our Same-Store. slightly these accordance been negative from were

includes conversions Senior Additionally, and properties significant pool be CCRC SHOP properties. portfolio of negative have definition this pool results being Oakmont, acquisitions would our with the to our due accretive being Discovery at scale and our policies. and the to based held and in will the in sale ventures asset they're Oakmont, portfolio share. is Same-Store outside XXXX add added than portfolio excluded upon Sunrise joint for Same-Store recent Same-Store new redevelopment The triple-net quality our our place transition to and when with in housing been X.X% included

general In numerous expectations and CCRCs where underway terms performance Oakmont the Discovery Sunrise while lagged have performance. in are strong improve to been have in of initiatives results at

million last $X.X a in A post contract Life transactions. in we cash near to run earnings Life Campus our call Boston. closed $XXX Research Class on the Since campus Hayden a in over Boston, dispositions. represents acquisitions Science to Starting our their continue and cap acquire billion rate. we've Diego, Turning grow located price San The to with Science of X.X%

tenants and XX-year lease square weighted The an XXX,XXX and roughly X% biotech innovation for average XXX% foot campus is leased escalators. with term

is has cluster for post critical Additionally, Science increased in enhances potential our so campus flexibility over our for which density real estate. offering time. the leasing likely strategy Life The tenants

XX is previously next With acquired we the Drive, to that creating $XXX Life announced contiguous end building space that of of in class in development. Cambridge property of acquisition parcel Cambridge. a in December square newly million and of West XXX,XXX early we closed A on built property feet upon the Science The door land XXXX Park the completion

In square will Healthpeak will of Science This sites San generate holdings X%. and will Pines. includes Diego, an our located flagship on A-plus to is stabilization, San two both estimated square Center of campus Drive expanded sides Boardwalk. with three projected and comprised adjacent Torrey million pipeline land the On totaling addition in is an of campus Diego. be is XXX,XXX feet ground up property that This we Healthpeak's flank on $XXX development cost XX,XXX site yield an of development redeveloped. of foot The The project the be that

Companies made course can of square phase that over Family X. active of expansion be We've we our XXX,XXX Janssen At Johnson of approximately representing pipeline. Shore the significant leasing Johnson has for executed progress lease the rights a feet the of development Janssen XXXX. BioPharma part XX-year with & executed XX%

at see the continue Boston square And interest and we South strength Francisco San development we're The we're strong XX XXX,XXX at the space and our feet property. seeing recently to on XX% market enjoy where leases remaining pre-leased number in momentum We share. Hayden now activity one project. in two signed and total positive

of transition our of Moving last Housing, several the and The LCS. exit interest transactions our property Brookdale, sovereign properties in XXXX an portfolio the back the from UK. year. a to the extremely sale interest earnings operations SHOP fund XX on in closed CCRC a of including leased sale XX.X% was important active wealth portfolio the of triple-net to Senior Brookdale's to Brookdale we Since call to and XX acquisition the

a who Additionally, we February properties with in will of effective radius remaining into upon six definitive million on Living security our $X.X lease property to the reached deposits master for structure six exchange agreement Healthpeak converting release X. Capital Senior signing documents,

The currently $X.X annual $X.X XX-month million is EBITDAR trailing million rent of properties the with dollars. on

the upon Senior living. completion process further will in of capital All well investments with disposition have the of along Capital Living and sales our senior are properties no

asset We continue billion. off now we team it properties well. with in Peak a with properties year In platform technology housing upon our to to agreement Vision. X.X%. the delivered estimated Healthpeak our pricing the we've The upon we provides acquire platform Oakmont stabilization an which forward value to proprietary concentrated drive in senior management of Oakmont's Relationships cash signed which to development formula showing California call $X.X person. are Having also look as built rebuilt our of rate cap XX flow. to deal a one We with based option an up equal December

be and in each paid highly would for interest. a expected tranches The rate At acquisitions would incentivized units. strong and XXXX XXXX a are contract Healthpeak offered with to down alignment with of creating part be Oakmont in between into closing management enter

Office Nashville discussions remaining XXX,XXX an of has Finally, development one space. is XX% million in spend to The Project is Medical Class-A active the our with on MOB segment with pre-leased added our and we HCA. located $XX on-campus of building campuses. on flagship HCA's an estimated in program square-foot

Project the also momentum to our Center. Medical was in leased at This Grand was We delivery campus space. XX% square Strand first of the on the upon project lease the XX,XXX with foot MOB remainder development HCA delivered up program. strong

calls. you than hear our individuals even further extends of human from beyond portfolio. results, and leasing goes collaborative incredible important relationships the on skilled external way step it team a just high-quality solidified a and strong More Taking Company established beyond that for valuable are we an operating key and high-quality year earnings these grew activity. back XXXX assets the Those well and and more was colleagues acquisitions

turn the for Now the back call I'll operator Q&A. to

Operator

will [Operator Scotiabank We the Nick question-and-answer from question begin Instructions] now Bank. Our Please first session. Yulico, ahead. go comes

Nick Yulico

the Can is talking conservative. range there? you elaborate drive on which higher about what and would you Pete Hi the everyone. were perhaps you mentioned guidance that items

Pete Scott

Nick. question. Hey Good Yes.

assume guidance some around as at the at we blended growth Our I is same XXXX deceleration Same-Store The which look year. was X.X% midpoint X%. does about you when component MOBs last think modest finished

City ad you to remember had Medical which strong we difficult forecast. at rents is As some Dallas

The actually very, and again factors certainly outperform like strong there's Market remain know had that year we at the the some had certainly as end Life we mark was to same we'd lumpy the mid downward. So a rents leases which in we we faster last year. and you moving Sciences year fours upwards in. markets to ultimately last year seem midpoint Within finished to be strong is this very X.X% as fundamentals component than lot up a where but well. the

triple-net So is more is environment. look in I housing some in potential of SHOP improving modestly we think apples-to-apples I say basis there generally still then think business a but upside a to forecast and line. an and straightforward there's senior then challenging would It's on

how into heading various XXXX. segments So I that's about the think

Nick Yulico

second GAAP suggest. post It's mean question the on then I and rest Boston and Also rent between a of big Okay. is yield the you on pretty the and seems cash would than the you even there the helpful the more benefit line so difference see do acquisition straight post acquisition made. portfolio.

just versus us rents benefit those that's give a guess market feel place to wondering Boston that you where can big place a in portfolio also market there's the on mark in rest think are for today. of if are I and acquisition you So rent maybe the I'm

Pete Scott

it's Pete. Nick Hey

excited we asset start Addendum. thing that if very pictures and first. So with put of some Post in you the the One nice Guidance look we're the one about about it I'll post,

average asset XX-years. on lease So, term that weighted is over long

that Cash. obviously to a between the of some So, differences is contributor GAAP versus

line bit little of straight biggest a far by as those impact that. driver leases mark-to-market is on There a although well is of the the

there to rents I'll where bought, assets would very in say I weighted XX we about Boston rent are a an the generally, think Cambridge we Park some average in the that example market, is we of use relative market. asking Drive, low-XXs As newer

included the as the A in for And Addendum space this new we Class mid-XXs. approaching

or And ago. signed were some and or of a give rents take leases a those or signed half year year were

mind. initial you've is So, which cap keep cash movement rental seen down rates significant which rates also driving the is something some well as in to in

mid-XXs we're from development the certainly exceeding we're But perspective. the There rent especially where thought XX are at that we on our significantly we the a be from we'd on yields Hayden benefitting underwriting. doing in

than we at time different right signed approaching leases for tenants. West as we're blended with basis in a having the mid-XXs but It's the well conversations on as a this market Cambridge point actually we're now

advantage good direction So, things we're certainly of taking us for moving are and a in it.

Nick Yulico

Okay.

that's -- one helpful. Just

and that sounds guys is higher about as Just stage that one be XX page that's those could provide than It or Life think we development. as Science other follow-up you on yields the the on in XXX like a Hayden range even development the the starting Guidance Addendum. at in

Pete Scott

Yes.

Nick Yulico

You over maybe right? X%, that actually get is

Pete Scott

still we until Yes, based on quoted, range. XX have we signed. but little those Hayden, could high I on some that how more just have we rents yes, be we of leasing a show conservative end the leases above We're the to on complete ranges I there think

a got direction XXX, and in to in still parking on Lexington Cambridge a in working we're we on good West we're and our costs. finalizing trending build there It's we've developing will expensive bit it there. more surface I’d say the certainly is But some little work sub- entitlements there. through than

from helping perspective. But rents certainly the us are a yield

on on to come final comment that. today done without that, hard our being to budgets more So,

Nick Yulico

thanks right, All Pete.

Pete Scott

Yes.

Operator

Sadler, Jordan from Capital is question Markets. KeyBanc go ahead. Please Next

Jordan Sadler

throughout conservatives to the total same of will non guess baked performance specifically to portfolio contribute Thanks. talked some you the if that pool of could pool. sort Good walk morning. Same-Store cadence into the curious I'm maybe could FFO. I I you through if the about you and and SHOP of wanted XXXX see how

of portfolio NOI. the we As Same-Store less know portfolio is total SHOP than XX% the

Tom Herzog

MOB that the of is virtually to development operators, either the Because over. blew pool. try outside restructuring we mean, it to asset It's we I'll I own started portfolio Science really senior and handle every Jordan, Same-Store already redevelopment. of captured we that. it, Life acquisitions, changing selling converting housing because leases, portfolio SHOP, really most Yes apart

from asset three years ago. an Hardly remain untouched

in So, CCRCs are That on extremely transition X. XX% not closed senior Brookdale's date up the strong. the that Performance includes closing is which Same-Store. and performing from about of LCS were right well housing operations February to pool that really to the Brookdale under

noticeable off we seen in And haven’t any fall performance so far.

So, that's fantastic, to earnings XX that because to baked up of upside would potentially guidance in million be degradation. we our saw you

would be So, a that's of number, total a NOI. it's that big fantastic, $XXX million

So, that's significant.

surgery Sunrise, more that were Care a that piece assets We've lot secondary assets with a and Same-Store sold, so XX their Sunrise as we cash be of assets Sunrise is are remains, well. of in that's to lot and we'd Frankly, are there quality those. not the a old that a of in sold what being XX left Prime today. a XX markets markets. as number portfolio meaningful lot generation that done of And of portfolio core well higher of assets even are about kind on

they a job. A and we’ve markets range They CCRCs good $XX the including material are it a of hold amount for. plus great of that's the that offer And on the NOI we those in to two because sites in to we'll think at primary do really tried the million

of quarterly full-year part XXXX start in be pool will the won't Same-Store on basis but they part becoming those So, until of a XXXX.

to pretty portfolio, done. the most the as both there's lease the although the least that in a then triple-net it's wouldn’t $XX real-estate. And brand that million California going part we've up assets Oakmont material on At for as plus new I acquisitions conversion new. of be that's call acquisitions very but the NOI. It's well portfolio

be full-year in lease quarterly stabilize of again several Those future. up and of pool XXXX growth over the strong the them months essentially Nonetheless into XXXX. hopefully to opening. next will the Same-Store and they quickly a they course in pool so within then years throughout of should have that come they're will added They the the couple

made would noted XXXX. a the then They've And we way the as fill local momentum, shown some not addition acquisition and of to prepared expected of lease think the payoff Discovery that over it That start up material did XXXX a initiatives up comments. that was they’ve last recent to we the personnel number the to. will be course in we in changes portfolio

assets become those of full-year And move they as XXXX the through part year. would the Same-Store So, then will quarterly pool. become of XXXX, the in part we pool in

So, and a XXXX of a the end pool. senior meaningful of within certainly Same-Store appear of XXXX, in saying the way way by results that long portfolio into the to start housing will that

had and the challenge So, best majority and the Same-Store. assets same senior shortened frankly our we've in the of pool in housing not is

surgery going hopefully to well a think to function just as to build we of is had great portfolio a us overtime. for be the do but all challenging been it's it's So, we

the And Same-Store. will the as start housing portfolio to our XX we of look next senior vast forward months, majority over part of become

Jordan Sadler

I I'm year. but and SHOP maybe walked total perspective the It's I to this' to it that. modeling understand -- that's I the broader NOI part audience total how absolutely fly throughout appreciate the would the from take on trying guess the portfolio from I flows just and could that through probably trying that think you appreciate take

lease this -- is going the generally bit is seasonal to momentum rising impact pieces to perform or gradually that because it's year? up, a how mean with I gradually little that going some have of less improving be throughout with a Right, of the or

Tom Herzog

then Sunrise, a benefit I have stabilized think the some the portfolio, essentially are over course and XX that's Oakmont next fair but mostly months. a stabilized the portfolio which stabilized. major the components is which which you CCRCs up should are is lease of Discovery

Jordan Sadler

using offer the old SHOP Okay. well? you much contribution guide any can the methodology, then how Same-Store you'll Science curious CCRC for see from if And as Life just separately, to the particularly inclusion portfolio

Pete Scott

touched before Jordan, on are a within the to success that our do our Science Life bit support of to within grow. portion able talk of on Same-Store. the little want to markets it and Q&A me, as and I Let Peter our background Tom here its need provide the about call. I this cluster and cluster strategy last to they have we really a described tenants in

be I I this example think an want you give to will helpful. because

Blood Phase in, rent. collect and least X, tenant $X The we Global is XX,XXX feet So, about a of Cove square Therapeutics million at

Next month into of square rent. moving over and a lease million get they and Phase Cove will The we'll feet X are $XX XXX,XXX

in though Same-Store even in But new and subsequently they're it downtime that's a possession. and between just vacates rents actually million takes good some that of a of one all vacating we're tenant is filled building into the receiving that and which GVT over Same-Store space, moving thing. had we not is $X back a very building

similar with Shore. MyoKardia had of at We a The phase X example

from pool we So, provide what right to we is segment doing. to policy that remove for number how updated building the going believe the is organic our it vacated growth the because actually wasn’t

I think very strong we all lease quite escalators, all strong know mark-to-markets. we well, we set very it's are performing

two one assets those pulled really in as well out, San smaller one it's two, have there's we So, those other Diego.

X% a out, we If pulled are we so a at midpoint. were not below, XXX question, would X.X% is been So, the few those basis for good we points have in the to assets have it range.

keep the pool. existing best believe frankly, we tenants rent we we're to and we Same-Store at within in trying our with look provide lot more growth as But organic hope collecting is number a we leases it, what more signing

the is that that Science's question. portion Life of So,

will CCRCs, CCRCs go they're the with Same-Store. They into the not remember Same-Store. On not in

Jordan Sadler

That's right.

Pete Scott

we're we So, was an transitioning next interest and LCS. it also only of didn’t and acquisition to year not also know the

for it will full-year and go in start will to XXXX XXXX. quarterly believe into pool full-year the and the pool the it will that So, into I go

Jordan Sadler

just the What layer methodology if about with old you X.X%? have just on what number that CCRCs, the would been portfolio, forgetting other, negative about would SHOP the the the Same-Store to

Tom Herzog

the clarifying One CCRCs. Yes. point on

segment, XXXX part segments so in going We create even though you'll are full to disclosure have started of Same-Store. not on that it's standalone

restate you just want So, you make I Same-Store. then, the question And sure get could the I'm full transparency question answering right on about to if the there. it?

Jordan Sadler

NOI you SHOP projecting changed would X.X%. XXXX be guidance Same-Store what just I'm hadn’t for methodologies, curious currently negative if

Tom Herzog

Yes, okay.

unconsolidated difference joint in in case that So, pool. not be would the would the ventures the be major

XXXX assets yesterday negative X.X% that few operator Brookdale our X.X% we than Brookdale venture portfolio. for of a primarily called and MPK have actually and the because that been the So, includes guidance joint reported an would or with better

that portfolio is being talked We with about based having new in these supply. lot a challenge of Houston primarily indented

would guidance our our with policy. have So, been role better

Jordan Sadler

it. Thank you. Got

Pete Scott

Thanks.

Operator

John ahead. BMO Next Please question go from is Markets. Capital Kim,

John Kim

Jordan's way. question Maybe morning. ask Good a in I'll different

Should we SHOP margin that we So, good were your rate down but look year-over-year. XX up margins improvement quarter in this run take forward points basis going as a seasonally as total XXXX?

Tom Herzog

you John, can hear that, it repeat and couldn’t we your question. faded

John Kim

about Sure, sorry that.

year-over-year. up a as quarter this going rate margins SHOP your seasonally we improvement margins points take run down good basis were XX forward portfolio? when margin but Your at on that we Should total look SHOP

Tom Herzog

the make better are held modestly SHOP The Yes. right properties. want sure margin because the quality on the not portfolio the sale the for increased. would overall of numbers. probably which you're to portfolio looking is have at margin Same-Store lower That I assets The for

room think substantial said, being do we that is improvement. for there All

On the and XX at think margin the points mid-XXs, is there portfolio improve in that much over to X to and points the today balance hold and clearly basis of we we opportunity senior time. least is as that basis intend housing as long-term

John Kim

some your other operators. maybe your of then, specifically need your on the this restructuring with Senior, the contemplated Capital guidance currently? with lease this portfolio you much smaller of And triple-net any do in how And remaining or the to do is more Okay. on Harbor

Pete Scott

Yes.

If the on only two XX and Two cleaned we've five guarantees years we're that about which standing are ago, that data we sell points are cover point data on pretty yearly switch the about there were in four well behind points up size. the below until assets. X.X them rank minimis dates, that good corporate map we down dramatically, have pretty those would at at to They de heat chart. you supplemental, it look

They're the such with just portfolio, not core dollar it's small amount. a and also

Tom Herzog

at the couple years dramatically And over it, to it's as you're wanting we last XX that's Page look if of changed completed.

Pete Scott

of talked multiple leases dates them with maturity assets in where eight We assets went you big located. we with and about from then based HRA, last a are portfolio down where multiple core different they're John. XX Florida a to did restructuring year And in

master improved XX-year behind leases that the all guarantee lease. substantially a Did consolidated into and one the We of term, credit lease.

to of until that stay rent $XX you'll done, expect capital cover are cover. renovations also renovate We over to see improve them million those to think below give the just rent time now I but Still agreed getting the X.X times they're the so it building, started projects. we with

lease credit eight But then has the the strong asset. other the good Brookdale lease Aegis we feel which the with cover and an done term, The only work a like master Brookdale. material full necessary. year with XX-year very lease that's is rent with is we've that's in portfolio of And

we've done triple-net hopefully on the portfolio. So, work our

John Kim

will So, significantly a it today? year from is map heat from improve where now the

Pete Scott

is leases but eventually going really over really the the only Those to map two doing mature the we're happen Well, that leases. that to not small will won't away are the four go new anything the heat you now to dots years. three add because see thing triple-net on us next

John Kim

All right, Thank you. okay.

Tom Herzog

Thanks.

Operator

Next Stanley. Please Morgan question go Malhotra, from Vikram comes ahead.

Vikram Malhotra

Thanks.

mentioned presented you've view is fees, the from the million, can in think CCRCs, in Just all NOI amortization Can XXXX, included about that of sort was you in of again that maybe -- $XX when you, number? I you initial give just partly nonrefundable the the or CCRCs, of fee baked related growth you how sense to CCRCs, you a degradation. clarify on the is included missed you this. the Can I the can some and the portfolio in us that you

Pete Scott

And that was number. including cash essentially the Vikram. well same it the total the presentation, in the as including number total NOI million They're represents NREF Yes, as NOI both $XX NREF. the the amortization of the

really point It like misunderstanding understand. about sounds some important there's to point. that been an that's So,

acquired basis economically measure that million a on a it whether that you it's critical cash we $XX NOI is think I And -- point the or an basis. amortization

Vikram Malhotra

include million everything. be that of value the the $XXX million number over million years that six that $XXX the includes Would so, is included that $XX would or that fair to amortized

Tom Herzog

this amortization number. entrance that just XX% it we fee the for is of Yes, nonrefundable the acquired in includes Vikram, Tom. Yes that the

Vikram Malhotra

Got it.

Tom Herzog

acquired as on and the NOI that number As the well in the we to deck. look at for just XX%

Vikram Malhotra

Great, okay. XXXX? then, just in And trajectory the

Pete Scott

that slope. performed do it's a has portfolio, Yes, historical an up in extremely XXXX disclosure total steady presentations been NOI have and in NOI we with long the growth the well occupancy XXXX, was that each portfolio for versus quarter a years X%. year number In upward CCRCs, the of run was in the for good that we the almost

that are the quarter-to-quarter really the Of may was course We're growth to strong we it it XXXX, for not that but through in the suggests all degradation but potential some we for in expecting similar full-year bounces growth. projecting number. around some fact signs have guidance upside presentation to-date

Vikram Malhotra

how of Okay, great. rent of in And the it's on what's and the you pool SHOP know are seeing NOI. but X.X% the maybe I kind between that overall just on of growth bit a us moving small negative occupancy portfolio, just piece color give can sort more expenses? pieces embedded a you

Pete Scott

growth We're to Brookdale included in portfolio, is Vikram. modest going do in around increase at which to turn we're just The the Yes, it's that, six that portfolio given months negative occupancy. a overnight. projecting share not now projecting happy last

occupancy have portfolio, So, we weighing that's down done some growth. the reasonable otherwise would SHOP Same-Store

continue muted, we're expenses been of that projecting the around primary per just XXXX. the growing we're course at market The conditions year today. reality about RevPAR and has of XXXX, that cost X% will And labor, operating projecting growth that pretty X% in then is in

Vikram Malhotra

great. it, you. Got Thank

Tom Herzog

Vikram. Thanks,

Operator

from RBC Michael Markets. Capital is question Please Carroll, ahead. Next go

Michael Carroll

at past that side. for your little Justin to more focused mainly on too? I acquisition been the about MOB the with side quarters PEAK the talk Tom, thanks. Yes, appeared several can team, the can has bit addition aggressive you peak the a development of guess strategy least be today. It on

Tom Herzog

what a our Hill with big start had we start of go one I'll got It working you've Justin working and on and into Science. Tom in has to we is add. senior floor if with of business Klaritch housing step and something been to MOB addition as we've in think the Scott Klaritch Brinker, The similar Life forward. XXXX objectives to

do opportunities I relationships that. true come of a think will number of out that And have we

have you'd that on goals or is of part that? definitely going we XXXX. that's add definitely anything this -- into one the So, significant of Tom,

Tom Klaritch

MOBs and a I there. not bit think out little portfolios was was of the on high there XXXX actually a lot slow for front transaction quality

and we'll to coming look hearing months the are hopefully and those take decent some. a to portfolios sized should execute able be in We coming several market there at be certainly on

Michael Carroll

you transactions portfolios smaller are then, pursue you And or the the larger on to Okay. I or also? on guess focused individual individual type would assets

Tom Herzog

is senior be the time to We a he's meet sites business senior travel in now sellers extremely like country doing very the see allocate It and housing around we're is targeted more and with which likely to Justin to very approach. Life and partners is and skilled a slow doing resource Science that. to have at

more pretty will appropriate to that's see big it that everybody the adjusted that We a the look The of activity primary in would chance in those. portfolios, business find of is the or any Medical we'll the no there segment. the to pick we up not in three returns Office that those, much doubt be but risk the on maybe all So, opportunistic, gets grow put category going way segments. occasional occasion I our at

Michael Carroll

last Okay, great. Scott. from then And me, one

and mentioned should I there provide we us Post prepared more could think you The at your that on that you some that was what expect? in Can you color density remarks increased do.

Scott Brinker

surface of spaces. a lots campus It's acre XX AC parking with

when too many but on too priority certainly it's the at a Point do Drive that's we the the So, acquisitions Park near-term many, Sierra whether not – or one. Cambridge Science Life something that it's that Cambridge Towers

be in where acquisitions the do or the build to Science, look that that a Park have in We just Science of scale. real-estate critical component Drive campus post that Life Life opportunity found for when to we such acquisition always on time. over scale Cambridge to local we density

Michael Carroll

you. Thank Okay, great.

Scott Brinker

Yes, all right, thanks.

Operator

ahead. Please from is Anderson, go question Richie Next SMBC.

Richie Anderson

morning, everyone. Hi good

make to sure just I back want getting to the have just this I CCRCs, So, right.

revenue and rental that about one? is XX% in XX% for amortization, the about total, about of run -- terms Your total right revenue

Tom Herzog

that nonrefundable NREFs, so of from you fees $XXX it's is CCRCs, $XX total NREFs XX% the characterize NOI. million. at them entrance million differently, just $XX the amount have on about would a the and net generated for coming the NOIs million When the with about to I and look the you about Rich. numbers it's about The XX% income from about

Richie Anderson

Okay.

Slide XX look So was looking the of at the supplemental revenue meaning, at your I on was revenue. just equation. just I the at sort NOI okay side to looking trying of and

Tom Herzog

Yes.

it probably how it's think we described about as way it. Rich I think the Tom easier

Richie Anderson

Okay.

Tom Herzog

NOI entrance then a receive is And residence from cash the rent annual NREFs receive essentially separately when NOI. percentage that move the that they fee we that's Which and in. the we broken our is is of residents from and out

we So piece. have two

Richie Anderson

that's set question. to bigger a up So, a

night. your you did last disclosure now wondering like I'm a you a CCRCs. through weave I at disclosure, So, job own having lot good the XXX% bob you noise that have you explaining you're if and in But know to materials a of and

avoided and is think what turnaround space have XXX%. a perhaps the now there to not all But owning when of I'm wondering had exception to disclosures do lot but somewhat the of that the that you to work know a a here. you've and I story you're explain people

some in you you to it's it sort your not easier venture? work a if out that card back pocket portfolio very given of simply wound a up in well optionality of sell XXX% yourself own like that joint a it's Have a a should than kind and to

Tom Herzog

-- in very a work ourselves we confident it's given to event well, that that certainly have out work going we card. feel I it's out. unlikely think that But that doesn't the

it. out accounting the some of two analysts in came last of knowledgeable analyst. calls with You confusion had that mentioned very different night, We the

generated as accounting the to the think months match over cash these and does had up As economics we opportunity the how the to the to deals. and I economics walked prior that's conclusion others all capture talk the through that came well the some analysts we've as to and that they

the to straight because And there hard great this a gave But I it. and some now I'd I but into. frankly misinformation with you like one that question do out minute barriers has a and Rich in me very view asset the think think set been a on opportunity get favorable record important a take to that entry there my class it's to is high to

CCRCs So, buckets $XXX NOI NOI itself. in we I'm to two these what's mentioned talked XX% that take generated and earlier going FFO minute a important the And is about buckets. the a We portfolio about the this margin by fees. on that the produces about two about of a that. on the to And million nonrefundable XX%

to other the return a words that a adds to and more brings generate fees nonrefundable CCR profitable The income the to fees margin. the like portfolios. margin In of it a on XX% component nonrefundable are critical

nonrefundable the to those fees. include has assessed, has be that considers it to one when So, fair value

should average and that they A Some resident life. the the then these amortized life age XX an over nonrefundable ten and he to fees XX facts, have and of pretty at stay. are point senior at around year eight healthy to year eight enters actuarial communities

services those units services and shelter those that providing those a So, to it providing seniors. on and proper produces based and of income amortization these

a that's look So it. first we at future when we basis – underwrite We transaction look cash, at think the FFO how a when major we that not and points or the underwrite we we the underwrote underwrite one of is GAAP I those deals. deals on

the based an underwriting but money on is right and gets and GAAP type to that also So stuff especially this on place the this of GAAP cash accounting. in follows is fact generally the the

annual received equivalent important is this roughly income really on accounting stuff to considering being which is true cash recorded then reflects the that The when being the economics. the

ignore which absolutely missed you is akin are across prepaid is it's accounting forms think that real estate, NREF rents. point all you are similarly The purchase accounted consistent and don't of important rents as I the it very NREFs way, for and up pick prepaid the

you you’ll in purchase was not get going over particular course you'll price, years to to had you three-year three recorded and a period want that property a that price, revenue ignore you'll that for property reduced in If that. that on rent and purchase your of prepaid deferred you're a income buy recognize that do

And seniors. these And that's true simply for for too. lease true the NREFs just rents fees on estate, well prepaid are any it's non-refundable real

So eight those ten an life. amortized NREFs Center to year over

you got Now to to it's because eight years recognize every quarter. the by assessed why actuaries ten

this life at this the appropriate bring us which Actuaries not look income it's amortize up. determine of the in. time making that's these the and in So period we to numbers numbers,

and did For as say over all you're you to to rather where GAAP and under for expecting residence REVs of value one some a are at the providing we're $XXX,XXX this would date at kind makes recognize I the time that's rather to object an ten and new that income deferred we which we of sense amortize than that be think the all revenue the This the service. that in at a come course recognize number FAD GAAP booked then and eight one principle. perfect time existing simply then going they in NAREITs which GAAP period under then than residents matching year those acquisition the

or nothing esoteric is Of here. there's course fancy stuff not, going on this

that in cash price bought asset a So from to an case purchase had the deferred upfront. and just you cash if cash prepaid as that importantly for had deferred revenue recognize comes the rents this follows

your be to asset the collected whole and less those you day pay to bunch asset if seller the get that going going you're a and rental those bought payments. day not rents rents on next you're course those collecting one for Of of you're because going to

basic. fairly that's So

correct is is create So and of these particular when spot-on revenue we income a designed usually GAAP the go to is it are designed rate does. is a designed and accounting. in principles it follow some through in and absolutely money usually to the and case does. we and it period absolutely and case matching, this gets report economics principles that CCRC about GAAP the in in GAAP all this expenses to think the the that

buzzing things I is around the record glad to guess the country more this. questions mean to optional for stuff accounting not use across and set there's purchase of I've kind required special I it array when you in nothing estate important I on some the are different very heard so does, important misinformation take just straight the So bunk it's every that to heard we here. required a there. real I out to vast felt that this estate of accounted of that I'm of real and that wanted some whole

Richie Anderson

All question And one right. That's to heard answer Six quick one. Sigma question then wish a or I just one. ever

rate cap the the wealth just that a disclosed it sovereign did for haven't or behind I Is or miss economics JV. the reason there someplace? You

Scott Brinker

Scott Rich, of last X%. about about announced cap deal we here. When a talked sale rate we’ve that quarter Hey on

Richie Anderson

that Okay. I remember don't thank you.

Scott Brinker

that's the that trailing on asset management the a of more Inclusive and fee weaker XX recently. been has performance

at just range. it in period So depends it's what time looking you're that but

Richie Anderson

sorry. that. missed I Okay. all I I'm Thanks. Thanks. That's have.

Tom Herzog

Thanks Rich.

Operator

Please Citi. from [indiscernible] from go is ahead. the Next question

Unidentified Analyst

Nick. with here Bilerman Michael it's Hey,

off, work the Street it's I a do you appreciates out item, to First appreciate Ventas helpful out and Welltower lays industry I for I put Tom every spending being Pete, commonality presentation, some also -- really to which and the with to toward the time and think think able have.

that. you thank just doing So for

footage your want your tenants working looked possible I other to know you in different and partners, the BioMed Global Kilroy, of the back it Blood the change with at want increased come same-store Alexandria, Global a needed. variety with if -- made and to area I have tenants, you be looked to Science could could that at landlords they for have square they Life

that's and have you the other because else. lost something satisfy your there's to growth existing therefore, the tenant should have if when would leaves them part lost you you same-store but asset in maybe potentially having so not development, potentially your to some And to dynamics, going stay them, and the could couldn't it's in organic back your of of fill tenant building

vacancy whether right appreciate is And to it's to someone to something, because it think and to your with, going you're I to methodology desire else's color the building the the so about shouldn't have I actually I make that -- own or change go think matter? don't a they deal don't

Pete Scott

allowed Hey, appreciate Michael, Global Blood, it's point, proactively it. Peter their the clarify should lease. them here. out we of maybe I With I

portfolio. and but to get not the could of space. sequentially not them. we and And lost certainly a we proactively we them of current from transparent should Earlier, get would unless So expanding moved, we within out have have have more them held lease we'll their lease to policy, because would allow our might it. within them lost within them buildings stayed building have not But They allowed fully elected their to not current just and premises fully we out come we'll to on out. they because I show clarify remove one be that this their needed to

are for would getting have more move, not removing We said significantly tenant revenues basically that unless them. be then we their we from

building, could because part, proactive significant it's on space. in more their in rent up stay So, more no but them needed our they choice have said increases a of made we given

pretty grow. but those we're tenants our actually that you us with is are the toward work the have lease dominant the Francisco, have tenants. And some landlord well, it's with our that many, tell if is see tenants So you exposure their our weighted over And actually to important. partnering which where them choice pharma bio-techs, we in is San look can to significant of and opportunity do as at big, fact over quite heard tenant with base, to growth because many and again, we I would look heavily you

Tom Herzog

a feet square have lease a to one and the moving to these grappled just way higher probably with by guys on much. it that bit, remaining you strange a do appreciate clobber One respond, you. too if we're little not it, feel so we'll that did can better go did with that the something a was could trying had me be I before we fact thing, say lease XXX,XXX Mike, forward best a let's square as because transactions that the that some of it of decline but out as to would for print, if the in a you we them when it do will Hey tenant understand information conclude into in I we're would there, on question. show if to it in we had profitable rate same-store. is that have see obviously out six what these approach It's add surprise might it's we the solution. company, XX,XXX want XX-year feet fine years same-store the catch very at not impact put reasonable we Pete same-store hide to would in is thing won't it, footnote But the something

Unidentified Analyst

is left heard $XX term down So have same the square $X numbers rent, that million wrong, basically of lease, rent, how written I XX,XXX and I the $XX rent. square may on was million I in much the but XXX,XXX think feet, which of feet, seems

When new but the build, you you have numbers stayed you you the make have and put of the the TIs I a that for was existing rent space. massive that TIs amount around, same. I in I guess a was I have surprised assume so new the And and all space

help me the economics walk space the is just left? really us more here, So, other than term and through what of was how exchange much

Pete Scott

Yes.

don't I was Phase they have close know The I would X XX-year term say, that moved but So lease. a exact I of the Cove into to on me,

base. build five more lot that a we and TI So -- of We had think upside with term. have often, that I perspective, of they their opportunity. the years we out of From on Michael, say generic very tenants we a would left north this build do built

their So than space also to signed paying, lease was was the we that redo is we below filled Global more we're and TI tenant $XXX. the given a excuse substantially it a gave generic built higher me, what not of that TIs doing that the initially. out a but with back renewal, Blood TIs original was were Global was whole lease And substantially $XXX, the package Blood then around of initial new or in

Unidentified Analyst

in rent quoted foot thing right. are right was you or cases $XX or the both the remember the And they just not

Pete Scott

initial for when is I for low a some quarter, they XXs signed quoted for but lease market. we pickup their slight sign which four numbers. we pretty strong believe monthly I that around at them and had escalators probably remember approximate were ultimately a five phase then a we actually rent within

Unidentified Analyst

does We given have in Page up the from How the show that roll improve? stabilize XX and guidance, be potentially of Okay. XXXX the one the operations about many the transitions like the to done adding forward, that just would it's where and and non-same-store in the a other. earlier those change little everything on this bit where go to call What you've you helpful, assets all SHOP is that Pete, portfolio. as reconciliation? talked to from pennies

Pete Scott

Yes.

So, it's certainly development adding the earn-in. within

Phase big So in prepared MyoKardia talked of is Blood. Blood. the which contributors The and said my tenants, and IV about two I Global Those I Global Cove, are remarks, big

Unidentified Analyst

about SHOP talking I'm portfolio. the No,

Pete Scott

Sorry.

Unidentified Analyst

the assets you, I being fact that your portfolio, all that percentage your is captured? normal ramp, in your a the those getting you is had stabilize benefit that is upside you positive where -- the the SHOP small assume NOI in and down captured that as X.X% SHOP SHOP XXXX there clearly are blended. SHOP, of entire transitions, a which those as is But would affected growth Just all made you

Pete Scott

XXXX the are transition in start almost added of XX% drop in the because earlier, versus for the pools they being the is will made even a pool but portfolio But you're of I captured full so had there. point have assets to in comparable guidance XXXX. the quarterly numbers. Well, not not that's senior not year same-store, a to same-store anything operator, under common in They will XXXX, the missing housing results

actually results So upside there the is on downside non-same-store based of a substantial earnings of that or in amount portfolio.

Unidentified Analyst

increase, of is get the at, for you in your non-same-store trying $X.XX what that I'm embedded assuming that Well, decrease $X.XX your SHOP guidance Right. not What that's embedded SHOP in FFO? portion an are pool, is which or relative from of what's to assets. largest

Tom Herzog

Yes.

a is roll on it that we Michael be and that picked If every adjustment, transactions. wouldn't very the high XXXX is forward level. obviously within Scott in transactions, CCRCs component fit the picture, big at able the that single same-store being So up not to mentioned in [indiscernible]. is But did XXXX biggest in

of $X.XXX about the transaction. talk the from accretion We Brookdale

the chunk the big up Oakmont then Scott Discovery a you capital picked also at acquisitions. also And of when So, XXXX look it mentioned, there. is recycling, and

acquisitions, of you well recycling we the as for But in actually Oakmont some this look that's also footnote at as XXXX funding. did, If capital that as and C, the look Discovery. offset you've we got table which includes

is So, And up negative from capital bit I also some the out, there, point positive those offsetting of is a have we do pick obviously impact of catchall, down does a other then buckets some the but of recycling. which other the that things.

SHOP vast I of the As that's Housing through is this assets. non-SPP, Discovery going items majority Oakmont said, three absolute level. CCRCs, those more or Senior and assets But high

Unidentified Analyst

be you Last how they it Okay. the you dividend mindset next to did would then decision the maintained you you're than XXXX, your arguably, -- what the that cover year. XXXX, are rather you XXXX are think framework just trajectory Can should laid at out the than the the guidance hit if we'll to in reevaluate to are Tom, current more made of by able that dividend the that going to in end for, you've referenced AFFO right, about able what they and indicate, in Board or tell down. coverage us question going -- looking improve and of they on year least

about framework, what year? understand help the perspective next just thinking maybe from us dividend they are So a what's

Tom Herzog

high easily at as a where conversation. or was some can coverage robust that indication out where an restructuring growth we provide we yield low the was We it We XX%. recognize I And then also to That the insight quite coming we raised around other the on the we during least at certainly, had that going capture quite as but that words, see because that's forward quite, were quite it, look FAD a going is three our ourselves some strong, next you to dividend could Absolutely. we some two, improvement that. of of was in have look good give years. viewpoints we room. to knew our and some going at we're year and have the very

decided, the put, say horizon. yield at excellent the time, is current got the on Ultimately, good, the we've let's Board growth

that probably coverage then. rest be now of that to good with should a there our that could metrics along and it could But the so mid-year, with a happy with XXXX, we stronger in that place we've be get that that, opportunity can we're XXXX. be first Let's revisit all revisit it

is a our yield we little of high that so use conclusion. because bit the So improvement. That's could to how came and coverage

frankly So then start to, if get I and in easily we that. but after first mean we on yield have to felt we added seek the better increase could would the we move chose that to coverage

Unidentified Analyst

whether raise cut. more wasn't, to it was So then to there about much

Pete Scott

up came never the cut in word The Yes. room.

Unidentified Analyst

I to Okay. That's wanted what know.

Pete Scott

Michael. last point, left Hey, last before we go. One on point GVT. the Mike, you eight one had years

that was The they lease are now doing at and left a So important Phase in IV. I a there note of think lot it's for this, XX-year term Cove to pretty

Unidentified Analyst

And you've sounds right? already space it like set really

Tom Herzog

it, in. the to released tenant of a new matter already it's just get We've downtime

Unidentified Analyst

Yes.

you. Thank Okay.

Tom Herzog

Michael. Thanks

Operator

Raymond question Next of is go from James. Jonathan ahead. Hughes Please

Jonathan Hughes

morning good Hey, out there.

including NREF effectively Tom change to and booked amortization XX you $XX at there. million CCRCs all But first the are million talks of through will booking Cash greatly Can the On supplement, in clarify the looking you also come full quarter. that just NOI $XX be will about the $XXX appreciated. details accounting and NOI in of the of that's page or EBITDA be the the million

Thomas Klaritch

we'll Yes, Jonathan. because be $XXX that at at under consolidation million point. be It will

will it and amortization be NOI NREFs. amount So the full the of of The NREFs.

Jonathan Hughes

one for okay. Scott. it, maybe Got And then

behind acquired mentioned and I personnel some relative little are think to said there you think recently changes. Oakmont I a were underwriting, Discovery properties the you

there happened what expectations than your less you ago. So a bought them versus year when

Scott Brinker

Discovery had that assets of is on five acquired nine portfolio, Oakmont them well. mentioned we generally clarify that lease ahead doing To schedule, if are was schedule. Yes. I behind of not up that

The behind. other four delve

transactions of a out they April, the significant number at improvement pretty to pretty personnel unfortunately up some opposite expecting regional level bit were which that last significant of in shortly those a four the XXXX, acquisition course and working were occupancy distraction, be the on out at of change often needed property that in we ended So a being had Discovery our after sorted over properties XXXX.

those well things will sits we eventually in they've the where that that, range. it today which XXs, but So that addressed is high the expecting when roughly stabilize occupancy think we portfolio acquired that we're at which into in XX%

the great they not behind. but operator, think the are performance. in confident with they're assets, still still year we're certainly I'm So happy first We

Jonathan Hughes

RAVX with expectations trends just the or in Are occupancy? your it's line kind of the

Pete Scott

it's mostly been problem. Yes, occupancy an

Jonathan Hughes

Thanks for All off. right. Okay. I'll jump the time.

Scott Brinker

Thanks Jonathan.

Operator

Barclays. Steven from is question ahead. Please of Valiquette go Next

Steven Valiquette

Great, thanks, good morning helpful. are details definitely guidance Total Tom and team, XXXX Scott.

most billion just well of guidance, remarks non-core this, above past of and mentioned so One you is $X.X in XXXX fairly projecting original guidance over or generalized prepared remind for XXXX year million another the the your first $XXX sales metrics. that of asset the was dispositions, whether the us you're announced Well, to for had so not should you disposition And right will we there just you the realistic a this $XXX some sell, or be place plan million that a the sale as just properties types, marker property Thanks. or is of that internal assume senior additional good year. pretty which in assumption. in maybe housing visibility activity the and is

Pete Scott

Yes, anything, can. I it's with can Pete start to he and wants Scott add if that, yes,

significant, in very there. certainly is housing is the to do you triple-net there sciences. back million. in in that's which not included We sale $XX the disclose in but life would Brookdale, the It the held are that other as for included intend too. million is that sell make senior supplemental, as $XXX also North then balance is potentially when non-core what's around includes to And purchase assets there about another our assets assets, million $XXX the we MOBs sold out So certainly up Fulton within some anything option, well which don't which we

I say guidance on is initial were that number our would to So $XXX million that, up. if go

We spend. that development recycle certainly would or capital be looking into to acquisitions

activities. it go capital up go cash, have we order we'd raise just wouldn't some recycling to it fund want to to up So in

that's about So it. we way the think

Steven Valiquette

got Okay, it.

some us quarter quickly you senior softness is standouts. last Denver like about housing, gave markets and talked Just Houston clarity on in

has more the Now, time passed.

now. markets" what or better these curious similar Just we in mid-XXXX or XXXX happening if enter any in trend there the to changes for as dynamics is notable pretty "standout worse was still either the

Pete Scott

couple the think different industry from past made In to ago. I a more take turn it comments, Yes, six for don't about of how been of months have around. materially we've anything long there's cautious the would most the we state years, bit than it would and

for where past or I certainly been too four the in years think generally but years, not sector across correct today. from Occupancy flat, often. improvement that from we are the to assessment is be which three is sure it's where the sit

the discounting focus NIC on. and being at the and think lot data a to aren't I incentives is that coming occupancy people picked that expense by of of up like those

industry are assume more growing But we range markets, you they growth but an So revenues NOI been with is during range. at X% on in at in to X% the growing occupancy margin it's if we majority XX% year and flat your rents likely expenses that the operating an year particular has labor X% declining X% at a can in business, least at simple math nationally the of to level to X% think why vast not don't certainly it's X% pretty XX% industrywide. see understand a to X% that a

in really So the course think flat. fact increase XXXX. power that yet inflection But point we see to see need and hit throughout don't dramatic of the despite occupancy. occupancy we've improving both that is that slightly or we We pricing flat occupancy a

and sure. with industry, expense getting closer that revenue for growth, just keep So, can but growth as not pace we're there an yet

Steven Valiquette

Yes go ahead sure.

Tom Herzog

Finish I'm your question. sorry.

Steven Valiquette

more No, one I one go quick was going ahead. to ask we

First, rather question first. have come the on prior or you

Tom Herzog

so long another the answers can that questions We and No, complexity at I so a information we just guys place hard but our could going I business. that you of to dozen for request that quickly much make lots six a rest discern ask to actually give it, go had a to just to very to we'll would of call to I and it We've as the much this has we do a we'll topics. you is what was we recognize of is the ask and I please to without get lot try we review got half in materials been had apologize, comment just if there through the point. felt as get quick people. taking is questions quickly going

continue. Please yes. So,

Steven Valiquette

All right.

sale on what a one this, planned here Just the, quick and of you to over what on prompted you the any was extent Capital there properties announced the additional color previously? six can comment just and it is above think Living Senior I

Pete Scott

years have Jim with they their about initiatives included smallest they operating important or senior and the on others, a partner, Yes, through certainly three Healthpeak housing for team, we her us which lease had we've good have core talked end and were strategic different not ago their was reducing having assets liabilities, they XX their two dialog partners.

not to we XX XX. with about about down we're to grow Today, like get looking CSU. and down to I'd were

to made relationship. it for strategically and for CSU sense that So both us exit

those. and result combination us sale releasing having another the get working We've the good rather deposits yet been of think for in likely will those underwater of We for hard lease. the rid price outcome to triple-net a assets security perfectly than

Steven Valiquette

thanks. Great, Okay.

Tom Herzog

Steven. Thanks

Operator

Please Stifel. Next ahead. go Chad question Vanacore from of

Chad Vanacore

right. All

thinking up rate the accelerated it this pretty So this think catch about How quarter. quarter, interest development to I'm was we in related XXXX going keep about the for or should that and for time, to just of CapEx, in it question was was high earlier one looks run to that year.

Pete Scott

focus payout historically could Pete. why number for we be has the there. is quarter, and just some a highest get to the Chad, fourth fourth back-end not weighted a CapEx it's more quarter CapEx because us you Yes, number tends information which quarter misleading of hey, year been full on

a full-year with perspective, there we the to we're then guidance focusing recurring the others. supplemental on do and in more include CapEx And from CapEx So regards number.

So I what for to look just we're budgeting detail XXXX. you at additional for that encourage

Okay, thanks, Chad.

Tom Herzog

Thanks. Okay.

Operator

comes question from Next Okusanya please Omotayo go Mizuho, of ahead.

Omotayo Okusanya

afternoon, you wanted in placeholder don't to sir. follow number? or guidance, most generic is up I of Valiquette's really that's million of good your that on Again, something more just a questions outlook. Steve peers kind Yes, to give regards of $XXX that guidance, a Hi. out acquisition some specific of an kind of given there but the very is

Pete Scott

see and and transaction. equity into getting those Yes. fully deploy and Good they're forwards our Tayo, can sources these question, raised we spend, deployed in and we've uses, you acquisitions what capital Brookdale

two some of you but On then those includes under when a timing agreement we those. pipeline. take on into million, about now, the balance $XXX actually for of couple $XXX million Oakmont on hard acquisition get front balance within option bit And our of of is right ago, it's although is to a little our that plan that that's announced Post, so certainly identified for specifics just the purchase and that that's our months some the

number. we So the up million that's how with came $XXX

Omotayo Okusanya

decide bit Right. And second that question, the then I've just extension. got what's little the Amgen do worst-case of and amendment early. lease kind why done was you about a Could and quick a talk they if to again terminate scenario

Pete Scott

Yes.

relationship strong we have a for very a actually we So have with believe The and in win-win. transaction we Amgen announced December, years. that we was

that As most extended their spread current the important on will building they part the and out are Amgen were they to to agreement, them buildings vacate that able of one lease occupied. three we maturities maturities,

And they are then buildings subleased. the actually lease other three

to we the there opportunity It's and subleases an extension about Point next location those main Oyster Britannia to Cove, a to have market have the main full rights buildings. a we it's talk had So campus. now right those and on clarity we

the in right worst they worst extended say the four to what up next guess, the doing XXXX. leases, on, the they be leases would get I but those just hard would they'll they case, out case So stay spread all end through to would it buildings their the with vacate years of have over

essentially the case would say on is those buildings I term full best renewed three that for stay they So for. tenure they

So those having other about that opportunity buildings. clarity an feel work to good tenants market on and leasing some tenants hard sub campus on of the now, quite either gauge now with but we up or to

Omotayo Okusanya

you. Thank Great.

Tom Herzog

[indiscernible]. Thanks Operator?

Operator

of Please Next question Bernstein ahead. Capital comes go One. Daniel from

Daniel Bernstein

it's morning. good still morning, Good right. All

to For bit you. later offline one want The CCRCs, in again, of around go that's it debt any that little One thing given a is a about maybe into to can but is to bake I call had debt earlier. more your amortization do talk XXXX don't about that have we I you XXXX 'XX, to want it. you Did of more the refinancing X% the question the guys time, I talk back bunch XXXX you yield guidance. we over

Pete Scott

not Yes, did we into our guidance. no, refinancing in any bake

that of bond to look If we extinguished much deals you of actually have months, six a last maturing the debt lot done XXXX and over the we've XXXX.

issuances any we So not baked have additional in debt and redemptions.

Daniel Bernstein

within than portfolio, then put it's corner you Historically, back going say at years, seniors long-term And a kind within Do XX% occupancy. higher occupancy But to a housing get or around probably if fundamentals. that the portfolio XXs of we and don't to senior housing next take to bit longer Okay. on five I portfolio than want in over is it's there that? that can been look that you is year, when think upside the three that. your upper to your little maybe back industry your embedded it

Pete Scott

built think back portfolio the I get that we've level. Yes, to will

window I get three to years a years comfortable to think there. five is

Daniel Bernstein

Okay. thanks. That's all have I

Tom Herzog

James. Thanks

Operator

Michael question Morgan ahead. go Miller, please JP Next

Michael Miller

transition Hi. of the I at what's trigger X.X% the for new mix that is on performance little the where should minus we things, to or two store And X.X, on slight expecting of bit driving XXXX improvement? guidance back read you go XXXX into improvement when the definition changing property secondly, it's assets the what's guess versus same the the definition, same-store look the pool. minus you're a that into then the

Tom Herzog

take Pete Tom. second. I'll is first one the This the and

For in the to periods. have both you operators transition, have comparable

another. one shop moving to operator for we from if So

ways transition same-store that we but you, I'll We out continue have to portfolio will material in it the remind will disclose if both pool we past. pull as it's for purposes, it the in of

we've in what you the Pete, So past. you anything from part. lose given won't the second

Pete Scott

[indiscernible].

Michael Miller

Yes, I pool the that improvement at new improvement? from SHOP minus guess, the that's when performance of slight operations under guidance is that XXXX of on getting better minus or XXXX driving based we is year-to-year versus size X.X% changing definition X.X, look

Pete Scott

a of XXXX best that versus the portfolio XXXX roughly policy, will apples-to-apples Yes, comparison would be in under not of different have this I been have had guidance new it of same-store pool, bit the which because used the under in pool and old the definition X% think XXXX both transition is negative negative a XXXX if same-store Michael, they policy, but is the the same-store the we our the results X.X%. would been results,

So is XXXX. into slight improvement there XXXX to relative built

share just as get. can dragging That's portfolio because but reduction just XXX% Brookdale the primarily that's that in portfolio performance. that's perfect of the it past think size the to the And the That's apples-to-apples reality. We case comparison, two pools, a that's the that's that of last been the not rather years. we and been don't XX.X% down forever, has close but frankly, than

Michael Miller

Got it.

helpful that's thank Okay you.

Tom Herzog

Thanks.

Operator

Street question go Next Please Lukas Green Hartwich, ahead. is from Advisors.

Lukas Hartwich

one. ask just I'll

science the a there's lot curious capital days. you of chasing So these for that segment. how supply impacts life think I'm outlook that

Pete Scott

this the you've about have also mix, in We're lot a I a the driving niche looking is and talked which space past. seeing longer got a space, tenants fact Lukas. rates that compression of down. cap there's lot question, to class, lease cycle, the add capital increased of Good rate chasing you no Yes. from cap certainly asset you when virtuous demand to And

we're happening advance. a of and lot well seeing pre-leasing So in also

of additional where one likely markets. developments think it's So we'll we I each are our today see that in

certainly a making all sure on whatever from we is in tenant participating markets, of deliver that we're the obviously we our are new with look We perspective would that but demand where match three view marketplace. supply in to mindful within

Tom Herzog

Operator?

Operator

Bank Lynch. from of go question Merrill America ahead. Next comes Dennerlein, Joshua Please

Joshua Dennerlein

guys. Hey,

are post-acquisition, to and the submarket you XXXA drives kind of of what in submarkets, Boston. other any that kind Boston really With if you in expanded like for the there the submarket Lifescience,

Pete Scott

actually because market, market where Cambridge the for really because its also the the location Alewife like West and we and is is. Lexington exactly T-Stop of primarily two Yes, the T-Stop like we these that at

from we if owning a you know, the between assets in it's I The it's in as mile at Lexington, Campus. map, Post Cambridge than in some Waltham, synergies real Research our but less West So as see said well look Hayden

play. can at suburb our is look their our as utilize that transit not the and to like Boston But continue to And making us traffic to because access workplace in suburbs we for So will what's the we is ability the tenants sure important to system get to from that the easy we assess navigate. tenants to transit.

operator? Okay. Is that it for questions,

Operator

Yes.

for any will We now closing turn back Herzog remarks. Tom

Tom Herzog

CCRC We just recognize comments. to much of on. the less not anybody glad call of that that do thank and a team do will length we will Yes, we there Healthpeak. was when assets, of joining our have your of little which just on say help. all team great a I'm account. there be in I you call, I with to for portfolio the for that on the is that class bit so one opportunity guessing our one of you a done to opportunity be difficult the interest an the us. education couple people, it the and we've the in some sanity for call to It's next busy do with apologize for for consider can year. And I of go going

Thank soon. So see we'll you.

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