PEAK - Earnings call transcript Q1 2020 | Healthpeak Properties, Inc.

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Operator

Good day, and welcome to Healthpeak Properties Incorporated First Quarter Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Investor Director Senior Rodgers, Relations. Barbat Ms. is Rodgers, ma’am. the floor yours

Barbat Rodgers

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

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

Tom Herzog

morning, you, Thank Barbat, good everyone. and

available Q&A of Tom Chief and President CFO. our Operating on Pete Development our Troy are with call Also the Klaritch, Legal and Brinker, and me portion and CIO; line and the Officer today General and call Chief our Officer; our Counsel. On Scott McHenry, the the Scott, for

that for The Across April a All biotech remains research. three you a state potential we supplement NOI The section lines discuss liquidity of business. assessing we and of that assist aware, And framework good medical will and April, and life we With X% and current number pandemic for But life you need our COVID-XX. the in of March will COVID-XX MOB is of last the hospitals. COVID-XX space relief. continue first play. are requests in we that, additional night, provided our strong paid provided by see our of did In issued tenants see severely updates information strong in of time. XX% for rent by an subsectors to we our our rent in driven with life our shape. In during strong recorded the we our concentrated subsector interim impacted collections. our on life their science, outlook impact and demand less additional As additional science let's science and to the believe leasing businesses, quarter impact be science results of across rent earnings. office, have on XXXX of vast business. how have we to majority see vary

are in medical elective of March cash due of San reopen. and beginning shutdown As and development construction, projects. tenants of Boston, science procedures office, improvement orders for our In reductions now to again temporary off has tenant which experienced, seeing and are in many which some the our completion in and flow Francisco to life we April, of slower again on resulted and surgeries,

June nonhospital medical and we offering to X-month rent As a subject system May nonhealth of previously office tenants, from conditions. and our to announced are deferral certain

in senior the costs. represents NOI, Of has physician bad impact, usage activity, last increased COVID-XX. our average, have housing, equipment and largest in of assessing of constricted personal which of In points. debt supply our XX tenants decline over confident nature expense protective impacted been feel leasing high-quality we and predominantly annual our drivers only and resulting expense by businesses, experienced, about are basis the potential the specialty Importantly, the occupancy years most viability the five and payroll on-campus, XX% all and on of

Our SHOP XX.X% portfolio, from impact NOI, is fundamentals operating has the which highest of as COVID-XX. changes a result of in

independent move-ins Our currently seniors years, X% some activity in blended place. with shelter in mix around of limited SHOP to for to of the SHOP X to Leasing and results in care, remaining our assisted offset and as move-outs roughly average from virtual lower senior length is choose month. memory voluntary is Approximately is of stay per which living. tours move-outs average XX% fewer XX% living

can month As some and that assisted living needs subject home, of met to lifestyle minimal often primarily screening Accordingly, a but to per be pandemic. their been have the move-ins and no as care during have the in net at of seniors independent duration for occupancy quarantines, are X% vital SHOP level base. crisis the required X% leasing longer living overall, memory attrition of we continues, care estimating

of will the come we average historical – historical will move-ins other be believe levels. increase there this we pent-up beyond side as the However, out crisis, demand that

occupancy triple-net a younger which Our in at of portfolio, decline our eight lower more our senior fees is our This points population with NOI significantly ten much provide per years. master length entry versus of month, bit. means and XX.X% as to to will XXX to estimated a therefore, of SHOP. of attrition, NOI ten an basis supported in and represents leases. monthly XX slower In portfolio stay average details CCRC consists in by X% four guarantees a that'll and eight tenants have Scott of represents primarily year corporate

In and our sheet. we sheet very have $X liquidity balance billion. balance strong, the available of to short, is Moving

and Our debt is near-term we net debt-to-EBITDA is years, low, have our weighted no maturity maturities. almost seven average

second our $X.XX QX dividend XX%. maintained share. per represented a of payout we at This Next, quarter ratio

productive pandemic. of Although connected, With to we consideration as and well are and period to working key has infrastructure temporarily remain expect as virtual we This our systems, internally technologies. our is connected, leveraging exceed upgraded virtually that the partners. with team both the and payout the and enabled remote XXX% external ratio Healthpeak fully functioning will us during

Additionally, and protracted. but essential Healthpeak will life leadership now the this focus directly. ever. time Scott are Scott to now oversight have liquidity in our his CFO Pete high-quality than as we allow is if to which shifted of more vital fully successfully strong that important crisis, navigate team, seasoned of science continue his XXX% And finally, in are his more his to to nature portfolio Brinker, it our responsibilities, Accordingly, will through March, dedicate President, role confident of even

That conservative estate relatively over to office telemedicine, the And has baby With would senior this real wave segments surge three properties housing, and underscored the the remains further pandemic demand its turn science pay sheet. unchanged. as that, medical which our for long for aging been the life fundamental need ownership predominantly MOB of in three portfolio increase expanding importance. our is Demand run. the remains buildings of immune with has continue boomers a for compelling, private and anchored it of Our science, high-quality rapidly. to of on-campus and the along Demand balance senior heavily thesis life recent innovation Scott. and in care product will was and health epicenters in I'll housing,

Scott Brinker

These level of bumps. our Tom. by with which I will year-over-year. line science, success XX% XX,XXX the same-store where first and as X.X% XX% were represented of life with out. by cash offset grew at built of XX% released results. were pool, a leasing includes We in segment as you, are nearly our quarter, rent cash pre-leased. The the right feet vacates, In which quarter our driven expectations. expectations Thank already results known renewals XX% for in and start NOI above mark-to-market quarter leases XXX,XXX TIs the That totaling now is been Hayden, executed at which have first XX well XX,XXX feet feet being partially

Phase developments. our Additionally, most we and already are Boardwalk at activity strong Shore III, The recent seeing The

driven X% escalators, year mark-to-market of a offset was medical Turning with office, by which pool, grew rent and period. same-store into XX% difficult cash That a in partially growth represented above year-over-year. NOI X.X% expectations ago comp our by

NOI our of declined driven X.X% same-store and represented X% year-over-year. SHOP our NOI by rent escalators. housing, of represented X.X% Moving pool XX% to and triple year-over-year pool senior net same-store grew

case of the science think of ultimately The identifiable flat year-over-year LCS Excluding importance near-term estate. been outperformed in unique, our received that driven interested COVID above any anything, mass well. by start and and have deposits. relief. extremely you're exclude situation went of most case should expenses began Brookdale having basis. in slow March, recaptured year, expectations. After to to intent. within by would across same-store see provide leasing rents so XXX,XXX existing is them SHOP and the of which a a the pandemic January XX% our in of transition provide three COVID, time. critical we like business requested of We great tenants February. also Tenants bit, demand spec so the science. from and in CCRCs amounts security market. the on quarter, the X% under our in for The operator know strong local leases We we If date occur have budget we'd each starting portfolio, down life to evaluating April received representing we're the rent for impact each segment, segments real a expand To to a the April have updates driven largely currently we life to letters from in underscores looking executed may signed collection April increase stats XX,XXX be is of feet with business in by any our impact the we activity Because

have year to bad the points and full to XXX the that's for We store X% full reason growth. in additional year debt moving for built our primary X% same some down expectations

projects. occur work San pace social X allows but in Turning exemptions development that it provided as due TI measures. a is at to Diego That's slower has good our continued distancing definitely to slower at a Bay all Area along, to restart construction, likely Work and of though pace. will May safety that news and The

a construction and is modest on year. this This to XXXX FDA rent but in under commencement are has and will current pushed hold two practical out order. impact impact TI earnings, XX that months. The approvals least beyond three no down, impact projects April result on IPOs all of Boston X, industries at our the While should clinical were until be fundamentally, by dates to to the Life during biotech be four have science sources been temporary. from the this we government. funding expect have the but There the support trials across More since date. pandemic. IPOs pandemic in stronger industry even naturally slowed only pretty resilient May the

announced over fundraising. the Roughly a billion working firms diagnostic capital Additionally, some on we're and underway venture April $X of conquer virus. or will in tenants in are COVID-XX currently alone, vaccine biotech therapy hopeful XX of help our healthy buildings new to related work the that

Turning this or will leasing April late slowdown in our square a to leasing. are of which be in square XX% was points April pandemic positive footage in medical occupancy a XX offset up by restarting retention. States for basis for representing the medical much We feet of is of after early of normal although operations office. signing May, higher step expect elective XXX,XXX surgery do the office, new through duration

three repaid range deferrals will doing program the monthly be dates developments a Construction approved million June by with requirement this is seven that which grow be pushed certain physician no at Again, we're announced, our previously on is As May and deferred HCA long-term commencement tenants to million a given deferral year-end. months. of but rent, may approvals. out We've to $X.X pace. the timing from slower with issue $X two pending totaling the for rent rent Rent progressing, impact. a

income XX% we've a we bad norms percent rent rents. terms line parking at April timing. a medical These also plus debt to X% and same-store historical be but lead that Shelter We are with to this of in decline think increase year. for of So X% down the to small have this may rent received due of reasons XX in will COVID, far moving collected. city small of home primary in a in ad year range will to

unprecedented. how we about the the to framework points Occupancy XXX the There we of prior In virus. leasing basis Moving April, Several move-outs our on we provided a for from from portfolio yesterday's that's down framework is data the month was ago, declined We've weeks SHOP think full a which April in XX% unknowns XX, to in XX. release. at XX%. time April, March many comparison impact are while XX.X% our increased move-ins potential senior housing. of updated the pandemic given provided as

Moving XX.X% is from XX for independent basis during was to month. our Medicare discharges hospitals memory was points down has procedures. Occupancy fee strong, due exceeded we the same on which in care by should occupancy be XQ. fee amortization hospital prohibition XX. down only nursing and entry and the CCRC assisted on to cash driven portfolio, normal occupancy April quarters census Skilled That points occur reverse quarter XQ recaptured operations. once low occurs elective in expect dynamic and will the That typically in X,XXX are receipts receipts quarter. in to second the Entry resumed the when basis

Capital contractual of April. rent including million with both Our rent the triple-net yet. has with rent. Living for represents with We're agreed monthly quarter sale annual rent in in in the held XX% million first with XXX% collected and $XX HRA discussions million of $X.X been portfolio to requested Senior properties rent, $X.X monthly active of and Nothing relief. of We

won’t earnings. to impact we expect elaborate any beyond that So we material saying don't

still once we the addition, intend market the reopens. capital transaction senior In to assets sell

reminder, month results part in in our we industry quarter the follow due timing receiving convention, from is coverage of one XX to reported trailing which a As use tenants. arrears, to rent

is impact result, coverage. As be a rental lag will in of there before reported a the COVID reflected

leased, million generating Cove. fourth is of Turning square phase annual to fully complete the The final million now investments, and delivered of we $XX development foot and X NOI. The

sale June. medical We San the is exercised new by to in Fulton the also The the with cap add necessary is the and the In tenant May, leased. feet The In one North the In at buildings option purchase the campus February, first million square which April, we will of price added its $XX outpatient fully tenant’s the on with three building XXX,XXX $XXX at program a Texas. X% project Diego. delivered price hospitals. for of sold a cap Shore, acquire option. The hospital in driven million, we is rate office building HCA’s a we The of capacity million a expect Hospital to HCA. rate development $XX core to close project to located Woman's XX%

but in Pete. be valuable billion $X significant see to a the disciplined about position in new opportunistic it's market. turn be opportunity that, a Looking we'll commitments. asset, any transaction forward, good We're with we of I'll so liquidity, With to it

Pete Scott

quarter NOI Thanks, to as another today with blended on of cash our adjusted Two perspectives results, a some per our earnings with start and Scott. with first $X.XX our XXXX sheet FFO we on and strong Starting our provide outlook. important same-store I'll balance results, reported discussion with growth, share a X%. items review of finish quarter note.

was of elevated March, expenses and million which result in of COVID-XX, $X a $XXX,XXX of approximately experienced in as in portfolios included CCRC SHOP First, we our same-store.

as to these or to add expenses conservatively FFO AFFO. decided same-store We NOI, adjusted back have not

proactive straight-line end, identified leases where $X we total Second, leases quarter we of in million approximately review rents. of of at a three reserved non-cash our

sheet. with to sheet. We're to into uncertain environment fortunate Turning a fortress come our balance this balance

our withstand in market, we investments of maturing One of a to a and capital in and blended involves sustained price and contracts, The this liquidity $X.X of unsecured principles we of and of forced equity not the $X was XXXX, raise we over sheet disciplined under near-term match majority billion maintaining a over to past raised raised team uncertainty. which the the approximately In end. balance vast rate $XX year, at This In over per down interest drew equity guiding share. bond quarter approach opportunistically bonds $X blended paid issued billion forward at adequate market. funding management maintain bad is conservative market the development bonds. to billion above be this at we of X.X% of periods

result, next not is XXXX million. our is at August After next and bond our until November is very manageable $XXX XXXX. As maturity maturity until not a this, bond

maturity billion an usage at policy revolver in facility our and extended up-sized typically crisis. insurance our times of economic XX% $X.X we to XXXX. the XXXX, look in We as revolver and Lastly, under keep the to primarily

sources we X.X And and the today? of of uses, due of timing expect net the of liquidity are fully withstand revolver. liquidity COVID-XX, and how cash X.X total a $XXX a the billion EBITDA substantially million average we importantly of quarter solid our pipeline and to $X.X from approximately billion have in We position positioned availability consisting is are remaining and weighted funded. in million a accretive So of on end. have we end and year put, maturity development pre-leased at our $X rock reported uncertainty $XXX a highly on debt Simply to the of times to We years. we debt of to mid-Xs, spend

to on previously impact earnings the the heavily the earnings disruption. of extent issued COVID-XX guidance. our penetration of on we will our outlook. from and withdrew The March, In Moving market depend duration

our operating you to to Please these return property XX Page will with important by creates a Notwithstanding refer supplemental to a which Additionally, modeling. in challenges, have environment would forecasting normal some if items your vary like state challenges. to included more we assist types, along. follow and

impacts earnings distinct into the divided have We four categories.

primarily dilution acceleration first pertains the category to items. of from is items from the The $X.XX, these known forwards. Total driven net equity

largely from items dilution are these timing Importantly, the only.

on recognition delays not segments. impact approximately of segments AFFO. by $X.XX disruption revenue office depending The duration our and impact COVID-XX $X.XX from does causing to category driven improvement it's these is projects Total second TI science recognition on tenant primarily revenue only to timing construction The issues. the the and life and medical ranges pertains dilution from

and assumption COVID-XX we category expenses segment. disruption stakeholders to pertains pertains to on SHOP occupancy CCRC housing XX forecast Therefore, for operators. and do We normalize. blocks provided senior fourth be ongoing for when have based The to their third senior to collectability during our the input the these believe from Due will cannot future The monthly received helpful building over rent category we operations currently housing assessment. modeling. ranges virus estimated will

have going rent the out accounting We every an assess us As important lease. the earnings probability to was it impact felt for know, to point new you standard requires could lease collection it forward. that

Additionally, we've than will housing dilution. $X.XX less which triple in included a of for placeholder net believe result we senior

As open supplemental outlook appropriate disclosures. on information we item the other One earnings turning date. to Q&A, of modeling. assist we our of hope a store in a as note will the reminder, make best in further starting included disclosure non-same you portfolio before When the line available We based this to this current to the Page we've additional is of With for information, our provide operator, useful. are the quarter position supplemental, please the questions. SHOP XX that with on any detail on find enhanced

Operator

Thank you, sir.

question-and-answer will will Scotiabank. [Operator come Please first the we Yulico Instructions] ahead. Nick question from of go now begin the And session. We have

Nick Yulico

to permanent those next year? assume terms occupancy you in sort of some year? in but meaning over same-store, change space you're you probably the that is of science them, that the guess life have Or segments expirations, assumptions leasing, you are delay I Thanks. don't office on to you refill loss you a in the starting simply in made get and that some next the build to and that medical fill going

Tom Herzog

Scott, to one. I'm take you afraid I that want

Scott Brinker

life due comment debt. Scott Klaritch the well. most assumption least I is At bad to science, an of for reduction Brinker ask as hi, to and Nick. might Tom Yes, here, around

is that by even build today, that zero. be the to but it what the then will you to sign expectation a And sort driven might from longer slowdown fact prudent comment just think spec of of Tom at know of small includes reserve. some a debt. leases, at space might take least, do least in But bad in that MOB. build on it's and is the most ask we Klaritch, we There I Now reduction a we, to out we leasing when

Tom Klaritch

our new the in construction pushed on is is our or because leasing, leasing month side reduction with that we renewal to the of exception the has even anticipate Really We're leasing. Yes. a vehicle, which in two, – the through building out any seeing pushed offset development April. going out

our above Our high-end well what in expect XX%, to we retention executions of in April April be. was which is actually were up the normally and

because So in leasing cause. hospitals, elective the of is happens parking our income not affiliated in some but It's really in decline seeing a we're really parking happening surgeries drop income, going the ban again. as also, at some City differences end back back of because the we we'll Medical expect Dallas down. year but picks up And the of get timing demand that the toward which

Nick Yulico

down. giving percentage portfolio guess the of in of this this, this is many could the portfolio the occupancy housing COVID Okay. heightened months terms to not how because has to And because And how about COVID That's impact? is you that but – I of that? we're duration know is is just is on – was up point I Can to timing senior monthly really the move-ins when versus facility. how in actually helpful. which this about now estimated helpful. as deal perspective of move-ins many closed traffic this has then a I much the of in as think wondering with for what, it's there housing, we move-ins allowed What whether the no senior impact what right to is drive hard give going many of you're a what just operator just at occupancy, cases, last, predict, is know us who kind

Scott Brinker

here. Nick. Hi, Yes. Brinker Scott

senior properties our of accepting XX% today are move-ins. to housing not XX% about So

all So tours. to gone has portfolio the virtual entire

allowing the even a that's that are specific highly there's where allowing as but you'd move-ins. expect, they're XX% properties, not not visitors of activity. non-essential So geographically about lot And into COVID it's

the of have in early a roughly of we XX% timing part reopening, our terms infection announced sort on in reopening our has the in Phase April already large portfolio course, of of May. that of of – either depends and I late or in states the rates Now that

least at a That probably is business positive So has the initial at usual in in about III, our begun. least but procedures electric because senior will the course, realistically towards XX% first first MOBs but our Phase step impact have restart, of will as housing states. of we step

Nick Yulico

that's Okay, helpful.

Just there, last I on have question – issues is there's Brookdale. playing already the restructured right know but clearly lease you out the now.

mention restructure about didn't You Thanks. lease again. What level that assumption comfort having how your Brookdale – to now? on any should lease investors right about think Brookdale the

Tom Herzog

financial It’s in to Nick. We they're liquidity, million of they Hi, the good shape. of real they had recent the that and financing Tom. Their able at that $XXX holdings the comfortable foreseeable for that looked statements estate the we're Brookdale. secure future have, were that

We that have lease redone. master a recently was

in were X.X coverages the range. Our

course, the Of slide behind that. But bit. a so pre-COVID, that's will corporate we do have credit

on the So to Brookdale being, exposure with feel nets. time triple comfortable for our we the

Nick Yulico

Okay, thanks everyone.

Tom Herzog

Thanks You Nick. bet.

Operator

Vikram have Stanley. of Morgan we next, And Malhotra

Vikram Malhotra

recurring flow on are expenses senior same Thanks you guidance. for taking see And the the of think supplemental. CapEx first an spend talk one trend update I'm of how is sort I Maybe those didn't in I of in question. prior – Can about the just estimates versus cash kind the item in and housing, areas. CapEx down? specific the the the assuming on to sort G&A, G&A other likely two

you cash with or shortfall? year just efficiencies in that achieve reductions there this flow just the I'm wondering, can to So deal are

Tom Herzog

first and take start the I'll the you don't with why Pete, G&A?

Pete Scott

Vikram, Hey, Yes. Pete. it's

big CapEx, the recurring the too much CapEx you quarter think latest there big I fourth the modestly is down facilities. certain It's to I which was in quarter mentioned, the – housing enter to off the Part us, why actually a premises. drop of quarter. wouldn't is quarter on of And access Scott always speaking, first saw just obviously fourth in quarter. figures, is focus drop-off on that able the senior the just highest quarter challenging our a in being quarter-by-quarter as for them, this fourth is quite excuse for the relative broadly outlook. me, recurring to the

So I we quarter, also a that did is to quarter from But the housing the to talk want it senior important. down touch only quite for G&A? in, bit, drop-off about to the want first little Tom, but factoring the took fourth do on you portfolio. not the which for

Tom Herzog

said our and most I'll that and into got team team turn it a the into Yes. take company. a team and can G&A. is way. portfolio company I've our and a important run belief a a portfolio great we've take great company And a take lousy make long asset, our difficult that I've that a it great can lousy

and home are So we're At couple going how thinking same as I a cuts, team is to in about travel be to protect our entertainment we're night other in areas. you a get a which do variety time, very fair went have G&A are our it My question. of accounting did for time. the be Because them investors we here far saying, obviously, hitch, without there that last technologies, had from throughout are entire stay, weeks, and our have everything G&A to on this. from earnings questions can of think general, places that going it. I could last think And there is call, a Everything off a many from be think as there's of and that these seven forecast great didn't result miss going our some efficiencies I to we view savings. company as working close, beat. the

as need did but we some do not place be skill we to that there later those incorporate luck. over into we seek give But at in time, the G&A will savings think I team a a have But we date, our numbers. So go that's forward. we'll something

Vikram Malhotra

and thoughts great And obviously was comp. peers, team Vornado. healthcare happy that maintain of there can are shouldn't Scott, savings second about My permanent likelihood? decided Is Or whenever then take But very I I at all would unique, more around in that impairment? have be the say But I'm sure is broader select executive to V-shape so respect cuts want may that guess some thinking thoughts can more more in the thought just, G&A in IL-AL your you about land, team. there a think in term? maybe you offline. to to how And in I I achieved. take least, environment that peers, longer being near-term recovery? a on They question, comment replan but if, in this wondering recovery I'm near-term around referring in just have a to perform is. the to you I like like

Scott Brinker

hard the the it's care is on trajectory living with – general, without of things based. Yes, memory recovery the equal in more need I all being virus. comment assisted to But think understanding

So I portfolio, flip move-in XX XX% was much The activity only length closer why about our more and SHOP living that, of versus of the side therefore, CCRCs, our stay down care, decision was you mostly down based years. is saw lifestyle AL independent think that's in to of is course, that is in memory the which is CCRCs which XX%.

turning a a in So which care, lower of clear length has far stay. of over you than population percentage memory hurt here AL at your more

because be But that attrition I there's do So memory the would a in just amount sector that also furthest. is steepest living such normal recovery environment. better the probably net-net, just the do in in decision. a a because fall would assisted a care of think downturn, think CCRCs lower need-based I it

there. factors offsetting some there's So

Vikram Malhotra

Fair enough. much. so Thank you

Tom Herzog

the I on take science thoughts guess subsectors provide life question, don't on why on our just that's two while MOBs you as well. and got Scott, And a just and we those senior just moment housing.

Scott Brinker

heard XXXX. those Yes. reduced of no K related. demand supply change described in for in for I both same store the There's timing office was of it But underlying two you our fundamental and really businesses. the earlier, We expectations Tom as and segments

than ever at by changed the markets. really portfolio than segments. the hasn't for office outlook like demand then forefront biotech it's in more our specialist two the and if and usage the our which in this care, of science, pandemic, be And well as the more feels important So coming anything, if heavy it going be going for life is from both as for supported obviously, ever out on-campus those anything, hospitals government physicians. capital terms to ever innovation than need looks to And the just health medical better probably of of,

Operator

Thank sir. you,

KeyBanc Capital we Next Jordan Sadler of Markets. have

Jordan Sadler

Thank and morning. good you

Tom Herzog

Hi Jordan.

Jordan Sadler

I want taking granularity as thanks the place. to those the the I lot to of want and what's trying yes, for helpful think good as I say transparency a for – always say think thanks morning. colors through to we

that. appreciate So

First pent-up question really comment. to relates demand the

occupancy difficult overlay have to as think the from? that guess the how relates housing, as just you stem housing not might fact does how the said, messaging in doing of community to other it pent-up what good you recovery, sort seniors this? remarks, are the think that I be, the these the through other far? you in? but once of could this monthly could look if And side as look thinking moved that other provide Thanks. of what as the know I side, whatever seniors to the here Scott, people guideposts forward be ultimately, is? – than immediately so some and predict image what look you What's as we terms we the I Or they we what's But whenever attrition. know and sort of impact that – to it's going to do And to you might behind And your for I expectation? demand are prepared tried you of that with be, get in

Scott Brinker

Yes.

are we here XXX housing senior course, occupancy. bit that's we roughly as And of the to units, where of currently that that's at portfolio, people activity people to sit basis XX,XXX closed waiting pent-up when demand, they a that over unless that's weren't concentrated On moving to. the And was pretty are deposits generated of month around the the our into more shelter during move-ins. XXX absolutely across needed in April than spread have today, communities country, place points that's move there really from severe

lead not strong deposits get even lead-base pretty a base, that's in. to of waiting really So customers

just X, usual. be world going the economy flip on, there on right of in be light offset switch pent-up a it's sudden, So bit and business a business May It because will all some demand. as may isn't the the to

the And because bounce for product. in they to a reopen doesn't for a as per it conditions, lot them extremely a occupancy And product. amount the up. and that hear quickly will it and the of in that's population. partners And living month have in is that is the that in will roughly seniors a housing there their some paying Everything for today. as it money health appreciative declined phased format. demand just from underlying families of notwithstanding mean operating think ramp don't quite probably is XX a services are million senior most rental need that on ultimately, we residents back be social April. our the X of about provided. demand includes being But particular, any the senior headlines. because There probably the negative doubt I probably housing, will lot of the there fair slow with ground a live of and we There's vulnerable plus,

guess voice feel So the we about for I demand from the product. still the consumer, good pretty the of

Tom Herzog

to we last work just number with the think there Scott with, some were conversations. bit But had I a just and takeaways to conversations with actually for add that, those. That late I'm just few week. was operators going of I'm that all was going those from a I have to comments. key had Jordan. on that a I occasion add major Jordan, to me

is need and category care IL based. think lifestyle, – based different about category. to the things some care One a need a of of is, where course, AL the it's whole is AL of than It's based IL. need vital and oftentimes need and you based is on memory different memory

number work we they are much heard that have children numerous the We from harder right it's much, have a what expected. now adult is than home of to operators from that of care take had taking parents, are

And sure getting they're quite and back that not going themselves, handle go to that under out vital which work, for to at greatly sometimes, worry ones some themselves up and are about the come are children It's adult has these of needs adult And that that no realize need able also that they sick a concern. to view they they're have how to it. handle care them way parents to home. that then these children there's finds just cannot oftentimes, literally their

that So there to communities, and these categories certainly subject of quarantine. those is in backlog seniors get into are to waiting screening a

mean the not multiple memory to net side have there that will the sure Now for in AL attrition, heard of continue lease-up care going that business, be everything there's but to operators. on be doesn't we from that based

Jordan Sadler

Okay, then you. Pete, that’s helpful. follow-up And I had for a just

could the sort comment a recognize is great of think you what the you today, about end mid to the shape I by had balance but in leverage. – Are Or said baking SHOP decline EBITDA just EBITDA? – five of of year, debt-to-EBITDA. the portfolio, housing I rate You net you headwinds portfolio the happen from sheet estimated Xs the is in to XQ off seems seem in likely that then it from run that mid overall?

Pete Scott

balance, post decline as you the end have head or a year quarter have today, it's our What well two funding the is large as the in mentioned, closed progresses our Hey in actually things. into We degradation at April. development will million. as And as just obviously Jordan, we on earnings well. $XXX also, quite we first the then which of year cash we in as baking

factors sources uses So within into a the it's that back of combination and up mid-Xs. our gets us all those

Jordan Sadler

whatever incorporate degradation sort in does it seniors the you see of might housing? So

Pete Scott

Yes.

Jordan Sadler

Thank you. okay. Okay,

Operator

Rich we be might sir. of SMBC. your Mr. Next, have muted, Anderson Anderson, line

Rich Anderson

Hello.

Tom Herzog

Rich. Hey,

Rich Anderson

thank Okay, you.

to is that's So anything it. can fixed. to be One health the there saying relative your been sinking stand if the thing thin And that's stock for this good, out coverage peers. triple-net the down in and that many of problem time, which REITs a opinion, a is one, side. is fix XX%, something Kitchen care has my with ever is on

why start lot a people So everything the the and take not REITs in is of this in up rightsize against of rents triple-net your space space a and and stacked just opportunity when lot to position the that to in and this everything really is all have fresh aftermath question kind have of in of yourself when put not all a this and done. reset ongoing

curious Brookdale getting notwithstanding, bit on really you've the Your – the on if equation? little to just more side aggressive triple-net any of particularly comment given I'm thought a

Tom Herzog

moment. many tolerate to Tom. you're years for this before CPA I went the world a that is fact Rich, into the have I REIT going a to And was for

place is has that know, you that conservative much and SEC FASB I the deal you just is with, as gap did position back as as things guys, when dead as come a principle forever, being the that you in old and of that The took young a the point of place was conservatism were error to think where I One now gone. being overly overly some an aggressive. at is

to good if into themselves when rules in sink gone, later. and So beyond target bath those to them their will situations, get view, kitchen they look these at have a to look you make the the take identify SEC companies

about So handle carefully. follow it's highly and they advisable, the companies smart how rules I think, super be this for to

And who's strongly. as I've the pretty about FASB got how line SEC, what as very much can CAO, we've my so the the in the make that And experienced So I keeps I and it. Shawn what of Shawn positioning good they're us Johnston, fortunately, statement career. CAO, and they're a was down thinking

So fact one, pretty that times, but the we're to tempting, that. it we sure going to really rules can't close that on be would stay at the do despite

Rich Anderson

that to mentioned basis point way, Okay, in that whole and release. By on I that maybe honest. disclosure color. the that table. in is housing I appreciate senior And the I second XXX the specifically, to again, XXX decline appreciate answer, is, really you occupancy didn't awesome. monthly expect be question

So good job with that.

aspect. Now is the – a there seasonality

these So sides. thinking it two about from – I'm

if the of we warmer happening XXX bit the that little months dodged perspective, range in all into get end of we into just comment or the even better were of gets go and sort alternatively, I this bullet, year. through you wonder that a really if is so as ratable that? as towards if a Curious XXX than First, of on one lower the trend a that do you And months, but the to height basis we sort that? of not can this warmer perhaps low winter, or of

Scott Brinker

October, a May or in possible. until from, is only don't that's that Yes, England the lot our New the The little that's move-ins strongest cold have a we areas thing November. Generally, say, like unusual really about Midwest. are portfolio

We have California. in a lot

kind And at We it's states a usually, in the the in in Florida Texas a some cold of the a bit have weather ways. certain there's that states. slowdown the of point in and in other lot a reverse year

have So much will a maybe as to miss point you lot I'm and as maybe in Because presumably. states. it as others that sure in the out, cold generation you're some going weather concentration lead June, as more us May move-in not impact on of activity in out

Rich Anderson

Just for move-out putting that does think the of you slowdown, the the move-in side traffic, conversation, colder though, in aside move-out environment? a

Scott Brinker

above did involuntary see two-thirds norms. about particular, in senior were one-third decline, that for voluntary historical business, involuntary Yes. one operator, rental the move-outs least But continue. their and In move-outs at and And housing the are least, we move-outs general, at think for we will voluntary. significantly the

of outlier really for one way. in result down large was XXX of were us points. There from operator involuntary outside have one was XXX down those been April until but operator, the that We basis as would a April X real a SHOP that basis points drove that fairly because XX the portfolio April just a So major in move-outs. portfolio, of

Rich Anderson

team. Thanks Got Good luck. Scott. you. Thanks

Tom Herzog

Rich, to question your to I'm relevant. going think something I is add that

the answers the ball. we thing did. none an all seasonality, the have we no crystal questions. it's question. The waves. these think wish But fact whether know Realistically, us of We in weather, important I comes to is

staying through been In I diversification it's our crisis. this the helpful. power it's about And working to balance having that's liquidity, through sheet, case, it's about very healthy we're execution. has think about been this, way the been about been portfolio stay So all our been

at think we've identify if we're separate healthy this other question step Board that from a crisis opportunities stay but on as that we've with taken and then we're know our looking as on through pretty are side. that bit, our I to positioned what ensure company. So to means this for deviates front. we had it a that there way the completely And conversations we well internally and your

Rich Anderson

a Thanks there. that, bonus Appreciate giving Tom. for question me

Tom Herzog

thanks. Okay,

Operator

Joseph Nicholas of have we Citi. next, And

Nicholas Joseph

the We're and appreciate to lot disclosure assumptions near-term early in exposure the business change on black a is still I it. event. very segment longer Does the And each medium I uncertainty, recognize all of in there's Thanks. and somewhat this views swan framework. term? that a your this of and

Tom Herzog

business dividends cash look better the where cost the all health great. Nick, care wanted own consistency then three category. that some that the one. and it's another four one also where diversification a to providing creating lots segments their have of last the the We're demographics in side view be long-term is operating XX-plus give – times capital. There's joined, based at still had cycles, going earnings, Herzog three falters. portfolio, of take same for We're happens had REIT again. years, We've that and on I'll At still we of doesn't, a which be would a demographic although on is industry this that our senior to seniors point. business hold pay that different I've which of of baby taking irrefutable we've company. to boomer scale the all the moment flows the It need housing, is other this, of of going the advantage private to or and since to

the set forth. as model changed we as This model the view still about it's not our business so on And feel business has good move forward. we

Nicholas Joseph

of dividend, don't just thoughts just on, you over last in how dividend, the actually long of on to going uncertainty this or paying quarterly coverage some Or suspending payout broadly quarter mentioned long is know then near slightly the And But on or XXX% up with pushing Thanks. the we the are the AFFO, percentage stock? next the your just uncertainty. this two. above last? anything maybe will given either given What how

Tom Herzog

how team that management looked something that's conversation strategically. I'll philosophically Nick, a and at we and Board, had Yes, as give you extensive a we as and

our extends we're should were into be We But a above dividend. time, as on place rises temporary covering now, our this could For dividend get temporary still for our a some period that period. of AFFO. for

the for into the with of being, to to I So dividend. we're And time account level have comfortable you take as think why.

on sheet some at other side got one are XXXX, a the pandemic until got small estate one effect and shape until other they're the all November billion. We've exceeds amount. is having that that it's classes XX, we've maturities our be and dividend in side. real The of view going balance on of Our isn't good the has a no that and three a of liquidity that to August of of this tons next we and by $X AFFO essential got

on tiny. you impact NAV, If that translated our took number and into it it's the

You to is might move be talking $X.XX or something a share really the going that not needle.

this that we through think where with that easily us now management ride for on have it'd can a as that. with our way to if thing we're completely the time comfortable But time, be concerns a goes around at. long, we're revisit course, then team for company So set up being, Board. premature We long we'll as and a the of is for

Nicholas Joseph

Thanks Tom.

Tom Herzog

Thanks Nick.

Operator

Valiquette Steven of have we Barclays. next, And

Steven Valiquette

have I you couple Tom CCRCs. a Pete just and on of Hello, your all I staying and hope Thanks. are questions safe. Scott.

of cater in obviousyl to occupancy around you that April actually $XX to about the that drop. of following million census First, in intending offset drop XX in Act percentage drop the also skilled but disclosure CCRCs. mentioned is It's that related the the received your CARES you nursing point the Medicare occupancy to specifically government portion federal

So total And inflow, of XXXX, now? portion to the least at then that I in let's of expected at quarter is, reduction topic. $XX I guess two say, a question same offsetting the or CCRCs second curious follow-ups will one pretty year come for, first on the million close whether significant got that I'm the the least the

Tom Herzog

want Scott, to you that? take

Scott Brinker

the applied we funding to the not nursing an providers, that, skilled just – including clarify typical into think all across units Virtually point systems Yes. our skilled is the of population payer living where The private entire rata Medicare significant Medicaid, is the or independent are source. for. There's nursing. it's that. through CCRC want that's that Medicare. a Medicare freestanding and pay, payer huge is Medicare That's and I the the are hospital all We residents providers. something a pro not then very funding, little the but ancillary portion entering going continuum either important We

So it's traditional properties, the reputation. sub-acute local their model, high-end great

as should XX And of is And quickly points, that basis same the days. procedures that same than usually X,XXX that restarting, length the back pretty for in there now electric given less states the stay April. reason. do the reason, the most jump are on for and electric activity nursing, And to they pretty Medicare you that's impact Steve, I significant population think drove in had that virtually a zero So procedures skilled for profound generate know, went Medicare. what

is impact $XX this but think in that funding XXX%, received, government's we temporary so yes, it time try to the we or providers tell. So Whether make a will the that was attempt does of to whole. million not

comment. to early too it's think I

Steven Valiquette

be tranche out The of paid million paid there's – follow-up the scheduled some out. $XXX right that, quick that now, was $XX $XX Okay. relief, receiving you're federal around total that of billion to first of million stimulus is but

dollars any if So have may XXXX overall? I'm total of stimulus much receive approximation or more in curious Healthpeak how federal that you stimulus

Scott Brinker

clarity any no on point at have fundings. I additional this

Steven Valiquette

on Okay. Final question this.

but patients of curious, strategy that much the long-term it is lot your more how within I have of residents. on touched guess You of a portion nursing portion a having was bit, to I little CCRCs, versus post-acute in that CCRCs the Medicare skilled it

payer you about increase Just Are and strategically. that census? mix curious how trying thinking to your Medicare you're

Scott Brinker

small. living plan total a I quite don't our have skilled paid units. is it as as know priority campus, that who often The nursing the I residents the Medicare. skilled nursing percentage entry increase the fee of first business would characterize is independent that on to But

of majority are independent living. vast the the So residents

memory and assisted are care. some And

activity resident most base unit So full unit, enough within existing the there to keep part. the skilled completely nursing from for the isn't the

Medicaid, the physical the Medicare properties to be be than rather option balance a good plants nice best or business these have either pretty filled local tends with is for next reputations, which So Medicare. can natural And low-margin Medicaid. that

Steven Valiquette

you. appreciate I color. the Thank great. Okay,

Tom Herzog

to a quick going check. time for in just I'm jump real

We We of have first. were with education, a call. started of that we goal this information of think having a transparency. lot a be knew going I had the call one-hour lot We will

lot Q&A nine questions. a of So going I'm eight, not them. surprised. interest we There's to have in We're take the another

quickly go on So the questions. our we But we'll everybody's We'll do please. and through want answers continue to questions, forward. get

So I you just – I that warning. give

So please. let's continue forward,

Operator

question The next Michael Carroll, Yes, comes sir. from RBC.

Michael Carroll

appreciate it medical But – see declines development in really thanks. just for virus? greater we it last, we understand then Yes, of I treatments it that seniors how need the think looking where I long housing will And the improved impacting is you least see moderate? you particularly type Is period Or can at difficult are comment, space. the the it's targets for testing do pandemic Tom. to typically to what really occupancy predict how how capabilities?

Tom Herzog

with that? Scott, you want to start

Scott Brinker

far Mike, which to I it and continues month across named operating important the But uneven. day two partners. was testing, improve think it's than you I think two most ago, today, – more of prevalent as name each a you still it our is

ultimately a make therapies next huge will and Improved step difference. that then as a vaccine. So a

to usual. pace of returning as to all things business going So are three of dictate those the

Michael Carroll

improved have do testing are more you operators you accept if move-ins. So that think able capabilities, to

more Thomas see So think XX% maybe much to it'll it? move-ins, the modest. about be that way Is in we decline M. Herzog right won't the

Tom Herzog

patients At that has in point, the and come this jump false the testing problem, I'll but that prevalent, people the are still the come disease. in a gotten better on that. or asymptomatic in negatives still spread more

in reality have housing exactly careful, So the brought which for residents caught the had rates has mortality sick. to both recognize, into community, the is of have have very XX% to get Caretakers caretakers caretakers zero a have minute. many, we let's many the deaths. it, just we When Residents and a senior be talk that range. virus plus

So tough situation. it's a

can it asymptomatic You don't and residents necessarily bring to frequent the necessarily nor the bring visits back do caretakers Where they're tests. it have from figure and hospital. home out it they that and checks bring temperature have from They the hospital back back. it

wave going set to if this, to a So this of further is there's some that as it's just is of a going America up open tough pretty and and back. situation us occur, likely we

don’t we know hopeful. So We're a to it There's is it's ball on a safe in see hard And eager for sure. predict, very, move way, no positive We're but in crystal way hopefully, this. time. to Mike. it very forward when

plays So that we'll see how out.

a either recognizing home experts. situation. People or while tough just at trying are to heads we a just that this crystal scratching ball to I tell keep to it's many many, can on because been I want safe communities, treated So their people don't other in you you, operators and have also false any give and to that seniors talking these be view have need

Michael Carroll

Thanks, great. Okay, Tom.

Tom Herzog

You bet.

Operator

And Mizuho. next of have Tayo we Okusanya

Tayo Okusanya

everyone. afternoon, Good Yes.

Tom Herzog

Hey, Tayo.

Tayo Okusanya

balance to sheet, kind was of you come your everyone of with great curious on what's look hello, going the understand how at kind would have too, what are a something guidance. And one same kind and how But are just Quick I'm hope you assess of would that? if guys at Hi, – the you. Again, acquisition on safe, and opportunistic you Pete. outlook. across if time, the I table?

Tom Herzog

very Before assets COVID, of. into as significant the plan three built that thought had fit , strategic well highly we across we a partners segments our that right as operating with Tayo pipeline

on hold. have put So those been conversations

were off-market those proprietary discussions. Fortunately, all

say, more if profitable cost of acquisition make auctioned the process. are to of operators I'd pause to that significant, time, all balance allows possible. the pretty But as a than more opportunistic see see And a then don't sheet. started lot strong over obviously. a today to fully to revisit in able beyond those capital need So interesting they be ago. make long-term months from to have we'd that, to opportunities as those. investment, have – we easier like that's We'll sure us But were And that we two

as is compelling portfolio. distressed be first actionable. was But strong investment priority as So highly cost it this capital, current in long today's That position an existing the became so sure that if our pricing from that be could entered. fit we it a something of that even priorities. at that would on our making strategic And equally we emerge

us So I at super of a to expect distressed. lot very got but wouldn't active the unless just pricing we're things, looking be

Tayo Okusanya

in bad of the kind feasible debt kind as numbers credit think this XXXX? kind you. may for that how life as of lease some to in that potential million about you again, the of losses of had we And that have rent issue, provision kind about Got I'm it's overall quarter. accrue There well. helpful. provisioning you kind to losses That’s an much $X for but think of for understand or particular portfolio just conversation potential for then losses around loss just or was trying credit and losses sciences loss provisioning, to around guys

Pete Scott

estimate the you're might It’s accounting current the credit aware here. guidance CECL, requires future Yes. than million new it this it’s the to probable into and effect upfront us and referenced, went of hit loss that you expected called guidance January category. I'm Xst, waiting Pete this, losses potential until reserve new is but sure $X losses, The rather loan so actually

well. So for NAREIT life We or not sciences, future into reserve does On quarter. us, impacts I $X adjusted ask within We've taking it about certainly and and impact know a only took well FFO we this million additional reserves assessments. FFO. reserves. as as our around within put as a are this collectibility placeholder It's your forecasting did for FFO other non-cash other item, have additional question, MOBs. reserves can in you talked as some there companies

of on every collectibility every We understand a lease, to will the look it. basis tenant-by-tenant quarter at

at To the the rent do tenants, that, within well leases. what So looking to at of were resources a write-off continue to the way be. hard did work our lease quite it's in bolstered quarter, to thinking million the take that $X look receivable we're we each say we that's single CECL every of be look first as a those We each as lot financial able exactly with would could difficulties at we'll to forward. one straight-line quarter. going at and about and one that because extent some to look those But company to actually every be there of

Tom Herzog

one Pete, if Hey, going I'm add just to may. just thing, I

financing they're FASB end to many even go and to and situations. into many generally assessment recording at completely at tuned why a of – of back healthy notes receivable FFO up bottom the may to The that for your why adjusted. you healthy type that sources everybody's if end that's in an of of at all then that's that's into X% say or as that place, go this of back an pronouncement not otherwise as some and the And absurd, – came CECL then as line had and look data in we added a is Just loan some item default the future Tayo was bit what probably problems. non-cash receivable, front is. about into date came to And and third-party likelihood whether type they they charge on it's had as run do very things collection future

we'll see FFO you of consider that when out at when I it date, date, So in nonevent there, $X at back million a a personally too. future as it that it and reverses, adjusted

in my it's the kind in of So view. financials noise just

Tayo Okusanya

Thank you.

Operator

Kim have And Markets. Capital next we BMO John of

John Kim

versus segment in expect if you sure morning. offered sciences, good segment in request? of deferral having? debt some even bigger item the lack of the in of discussions you, a do any Or tenants impact versus Is couple though that just tenant reserve But not a specific MOBs? same I'm discussed. that bad a this that MOBs, just to you're the is Thank haven't life you you recovery in

Scott Brinker

of more a John. it more we COVID, with from It's tenants take appropriate that watching a others. happening group targeted the not that carefully we're specific any always bit There's of thought Hey, discussions to reserve. than or having. Combined tenants Yes. was to what's we're

being mentioned we in As a circumstances That more was may higher zero, normal. was here. earlier, up the a under appropriate I debt but than thought bad that reserve end build it to bit of

Tom Herzog

I'd again, been practices, historical about over our has of life points stuff and XX% add science. XX% basis on-campus debt anchored you John, that in Herzog. April – MOB five years. XX when talking it's But bad physician and collected on We MOB, of the And start last

HCA So We when it. we good worked and provided program, that a term. out with help felt it short deferral, on rent about quite to just was

on some So tenants anybody work that. we're need to science, like fallout others going we don't that and Life with some retail expect have would few we for that much with. a to might tenants

into we that. have way So debt we those it TBD, look. Whether a you looking see little is not or why the more bad they need numbers but bit built that's

John Kim

you remind broke housing On you amortization CCRCs reassess percentage Can the us revenue changing? that And and on it of just amortization the came CCRC, fundamentals with senior that for fees? the from income. are Okay. assess how nonrefundable also you what Thanks out entrance that. of

Tom Herzog

and start, jump Yes. want Pete, you I to can in? do

Pete Scott

around approximate NREFs basis, the think a and was shows other. XX% amortization around a long-term, what each we The cash NOI what is on over XX% the disclosure the actually is fluctuate received will quarter supplemental, million, well then quarter-by-quarter amortization this balance received. but $XX million. as $XX.X cash did amortization amortization, That We received and around usually is the some are. is cash It's the as that and that Yes. to monthly our into we which the add will

Tom Herzog

because upfront income portfolio obviously CCRCs and for margin the just you'll guys in is created that that a the a like like nonrefundable between the right. I that's cash flows. are and I'd the as a quarter, in stay. of just what's last In an probably of what is the entry said the deferred hold One we see matching. see endorsed place that on will payment that effectively it, that clear Page a repeat thing entry that think service It's deferred makes I that's that again, to complete in average on accounting see revenue revenue. based the period having service the looks like at is there's then is And stay economic revenue a period do you'll gets and revenues. you'll want add so NREF accounting, and place which more and in the to difference but becomes it part conversation this I'll period that this, we those is CCRCs there's in seniors world deferred with involved free and proper pandemic so important an get in that's a The of for period that's And when one model what you much the gets revenues NREF while a like more a and there deferred this, That's to having it period expenses it's and acts the recorded a what of is accounting like fee is think a front look NOI, how fees, to take you sense the feel situation in amortization the XX, when makes rent Because a XX capture. a in as And that a through that's merits – it age collections out place, year the table, of you spread and average course, years what an like. recorded an length period base we very end of upfront trying of over of eight tenant sense.

John Kim

you. great. Okay, Thank

Tom Herzog

Thanks.

Operator

Next we of Fargo. Wells have Todd Stender

Todd Stender

thanks. Hi,

Just one me. for

back Just housing. to senior

Length and at to move-outs Just continue with operating exceed But some down, offset some occupancy to down. with stays obviously, got of coming labor there's theme, the be move-ins. expenses. point, coming

what Where this the getting that relief maybe like are on minute. the right you do you maybe are staffing expense point? need don't just budgeting tipping And of some maybe side? You levels expectations your

Scott Brinker

variable Todd, the be as going where a to Yes. course be the during total areas, in are a load. of are pandemic. expense marketing and transportation down benefit. of costs There dollars relatively percentage Certainly, some unfortunately, Those will are small activities the dollars

of it workers that unemployment sudden In those two of is higher, a employment. are there lot benefit be ago, was labor, all for looking months a alternative than terms that and of is might service the a rate significantly

right the to by that, paying is obviously applications are have programs, COVID-positive the but Although offset they of inside have a access which seen that communities, conditions we in pickup attractive the time that is fact of in and helpful communities given now, to pretty potential unfortunately, work for being, have the particular, activity government premiums workplace. the risk

up expenses are are but net-net, some So think a business we offsets. environment, pandemic to during there this relative normal

Todd Stender

bottom? duration at the do have have do wise, it. It's point? occupancies any anything this And you But get a when of you little budgeted in expectations I early,

Scott Brinker

than exactly about we just environment think rather a it's why really That's change. as as framework that to guidance because is predict to hard too the to No. wanted impact going when

Tom Herzog

your inputs that assists investors own this for you to outcomes take guess Got line, ranges up Bottom framework. analysts didn't and uncertainties of we in put together and guess so so hopefully, better can into it. to we And thought many with framework A coming then out there fair wrong. And there a as want you guys, a us. apply when question. are that

Todd Stender

Tom. you, Thank

Tom Herzog

Thank you.

Operator

And next we Bernstein of Capital One. have Dan

Dan Bernstein

morning. an good try question. avoid I’ll Hi, to accounting

I back of I to even seems it are housing. some that expenses least mean really, if from senior up go just bottoms on me somewhat these I want and back So to the how impacted costs. permanent about or business? now, especially that at Is you're to the mean expenses, higher even semi potential like is occupancy maybe housing, COVID? the PPE, the senior permanently labor NOI thinking comes by permanent, maybe of some

Tom Herzog

to entire there is full see long-term long-term of certainly of to that I PPE talking the The entire relatively usual. in number And the that's margin not But a increase shifts cost to we staff from don't certainly Dan. in that operating from I couple impact the business months. increase don't keep change elevated It's significantly day. I'm today is becomes It's see pandemic. most segment. virtually possible sure, going three be that mean permanent. I as the PPE, not permanent. are know impact small for a And workday, as is the certainly the communities dollars. That you're in a not a mind, But this labor. about a and sanitation of of in of is labor

Dan Bernstein

when then developments about basis? but are impact just real some lower about mean XXXX, I you on, now, there future say, are XXXX know And longer-term on the is for the thinking delays should also quick, expecting for modeling? be thinking what a Okay. yields we expected developments yield on – I how we're

Tom Herzog

Scott? or Tom Yes.

Scott Brinker

conditions, yields some I modest might two given make can perhaps big development the changes that's start. for just budgets likely be PP&E some or pipeline. mean, three I higher are that nothing going so material. very to nothing construction there side, months. one, projects delayed higher a to to on general Certainly, impact by at but our be construction

to As slowed harder Certainly, far it's has workers hard get I construction work. if as future anxious to are back to comment. projects, And down. guess, the

down this. demand would there going are the than that in out Tom a think science, development stronger keep came ever – our in and be So a of for of us bit. positive mind, coming life is and we be if fundamentals cost to most

if So not we what can the the always just to choose not case, development. I up said being ends do

active what's to pipeline. we have we opportunities We have anything haven't beyond but development, bank, additional the land in a in committed

So retain flexibility. we that

Dan Bernstein

Okay.

hop good. Sounds I’ll off. Thank you.

Tom Herzog

Thanks.

Operator

Hartwich of Lukas have Street we Green Advisors. Next,

Lukas Hartwich

of guys segments? have values across to any you sense Thanks. your Do happened asset what's

Tom Herzog

Scott?

Scott Brinker

activity I hasn't Lukas, the recent to It's that fair been Yes. a of course think April. there over say, ton of

for been the Now were they some part, transactions that have months, down most quarters, not just path. were several if closed, have those but underway several way the and for things

to don't things in it's market, there's back think life to come limited. to any be new quite change as I science, far and are been rates. struck, particularly cap But medical acquisitions being where going starting in As office

remain there's a demand think for cap housing, I is question I remains. strong In risk-adjusted think And fundamentals how uncertainty of segment. declines. type for the NOI right investment the because the what that realistically that bigger just far rate around also then senior and

it if So the I there would in think senior housing business. be is uncertainty,

Tom Herzog

And conversations completed add that again. to Scott, on just that is period to to that allows we've normalize based had, activity some after

be Is you're cap period has some is, well market, rates opportunities. what time, For that that's period passed, not Scott, of there of and again. very fair? we there that once think, be distressed out where could might see referencing much I falling a time some of And

Scott Brinker

Right. Correct.

Lukas Hartwich

between performance offer? any And you can there properties Great. you then COVID and something SHOP, with on color is that cases provide Is on without? can

Scott Brinker

times going now with Yes. some shut you're likely property pretty new COVID-positive to are I board, move-ins impact down a obviously can give would a paying that period staff zero wages. ordinary time. dramatic X.X It's also up you admissions, context across be that has for of the which to a to residents

the then to that's three shifts going are be full has PP&E the becomes in elevated and – as a much virtually costs staff well more And day. that PPE, entire your higher. So because

COVID-positive on we have expense revenue the significant NOI. impact provided. we both a the and with the And So side, account to property that on that try would for range

do communities properties range, our will and other than then will Some better be worse.

to being average, portfolio not So applicable I on provided property. would think about the as entire we to range the a specific

Tom Herzog

large thing course, Lukas, during operators and other made difficult the that, we stockpiling had with norm. appropriately expenditures had we past PPE the might of our it is that the six that weeks, exceed

to going a this we're over or see next out month normalize So bit the so.

stockpile Now those that, and been built. inventories have that

we'll So more that have we information forward. as go on

Lukas Hartwich

Thanks. Great. the appreciate I color.

Tom Herzog

Thanks.

Operator

next we JPMorgan. Mueller And of have Mike

Mike Mueller

bit in mentioned sensitive, just little so be have to Yes, are in themselves? take the going of activities? hi. move-in limited would time the bit And that followed the housing, reopenings. longer more thought a there to is of senior does that that it mandates III population they're Or but a of any imply terms you little is choice, Phase you the be Scott, I think have

Scott Brinker

impacting really for with those has the come it's segment, and out obviously, and the that guidance broad CDC general, is by state departments. partners. health business local health operating local coordination In this departments Yes. in but the of state decisions, with driven The are types

hard quickly So it's that's for an things on why how reason reopen. us additional speculate to

Mike Mueller

Got it.

Thank was it. that Okay, you.

Tom Herzog

Thank you.

We in have more questions queue. the two

Operator

Sadler, the And a Capital sir. Yes, Markets. next Jordan Keybanc one is from follow-up

Jordan Sadler

of type – queue. maybe trying was I X biotech out life Tier have Sorry, of characterize I tenants? don't the it's these to But of Are know this get was Tier these them. if that Or addressed. was tenants? science the It tenants? X, of requested kind XX you customers deferrals, sort Can

Scott Brinker

Yes, Jordan, it's a mix.

pandemic. deferral. has small than of well. very likely throughout pretty our of our our no. been granted. small to activity those kind of And As make a small our business they're you more likely yet there do be a X.X office business And been smaller there for the more but amenities have closed but that And have are a are drive been not biotechs essentially, percentage given been tenants some dollars, think There amenity their not then tenants. buildings – out, we fully But the answer that those past a number But ramp. closed, as requested it's some have date, point months. big And campuses. release, operational in are I been few They're mind, that to the has And keep has leasing their are more to money we'd makers. to important business not has it's

be inclined reached rent about So the we give that to release, some we're any fact wanted less to but out. had transparent

Tom Herzog

the I'd say is ahead. no, other I'd add thing go

Jordan Sadler

ahead. go No, Sorry.

Tom Herzog

that take going there's that to we feel confident for the the is viable the still as that's for actions certain locations that add something business. makes tenants receive have we're is we in of in. when I'd it in. not a thing we space re-lease conclude that from forward, basis ability tenant case-by-case space a And and direct other And sense do our demand then we'll on that plenty The information that,

not we'll but do off on those, again, a big So basis, case-by-case dollars.

Jordan Sadler

out, on And Okay. deferrals break of then to percent could relative side, MOB the granted the you request?

Tom Herzog

to want that? you take do K, Tom

Tom Klaritch

did eligible requested reason Of them not Klaritch. The deferral they so either of total almost haven't has cares been approved approved. on tenants, been been we of them Jordan, two about the current the pay of they it's or Sure. loan, the rent, requirements they our April Tom rent have as Hi, have apply not XX% did program. they weren't for and XX% made which

Jordan Sadler

you. Thank Helpful.

Tom Herzog

think I last the we question? have

Operator

Joshua of Yes, that Dennerlein from sir. And will Bank America. come of

Joshua Dennerlein

doing Thanks well. question. Hope all you are guys. for Hey, the

Tom Herzog

Josh. Hey,

Joshua Dennerlein

get going rates I’d net portfolio. be into to SHOP attrition behind more just little for curious the bit color a the assumptions your

the like economic You you're gave move-ins, spreading in country COVID counties like in some across color as the environment? move-outs. far for But there in picture, maybe as like and what maybe the goes bigger that

Scott Brinker

most ago, Yes. late were the seems varies be pushed weighted the of data anyone. the the that in peak, we supposed least to I predictions mean out, activity to states of average date by peak in we follow getting native terms to had XX. hit as as geography. a That most closely was weeks in in peaked have mid our April. and when activity little bit, Obviously, Two April portfolio be at it

So correct. hopefully, that proves to be

see also to inside started our haven't it's longer COVID in activity increasing. but We buildings, decline a no huge

increasing does So been. anything, to leveled at But the had it positive. jumps around out, rate it it's day-to-day. no if certainly seem from a to not that's obviously If longer fall. have It that started

Coast, how we infection capture to But positive. the to that's exactly any a Josh, why market. and we it's intended range, quickly that's is the particular plus not were going on can't have a fact is that concentrated East country. portfolio but we we've West to So wanted that in think and decline, the heavily as across it that. concentrated a rate provided predict Because ranges the spread the that's about out It

Joshua Dennerlein

for appreciate That’s me. it Okay. Scott. I that,

Tom Herzog

Okay, that thank you. the believe question? Operator, I last was

Operator

sir. Yes,

Herzog, like session. you, I'd the go conference the hand question-and-answer back will We ahead to sir. And Mr. to conclude over and

Tom Herzog

our operator, your the for Okay. Healthpeak, that and in of and investors unusual this thank your company support of especially and Thank interest joined call you, the and extremely you all time. analysts during

look Bye-bye. forward soon. and safe to talking stay all to you So

Operator

At And again, the day. is And call Thank time. also sir, we the for thank Take Have you lines. time, this conference the you, great may everyone. your care. now of your to disconnect and you, concluded. rest team management a

Healthpeak Properties (DOC) 6 May 202020 Q1 Earnings call transcript