PEAK - Earnings call transcript Q3 2020 | Healthpeak Properties, Inc.

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Operator

Good morning and welcome to the Healthpeak Properties, Inc.

Third Quarter 2020 Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Instructions]. [Operator event this being is note recorded. Please now Barbat Rodgers, would like to to over conference the Senior turn I Director, Relations. Investor ahead. go Please

Barbat Rodgers

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

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

Tom Herzog

you, and everyone. good morning, Thank Barbat,

The three leasing life business pre-COVID ahead primarily on quarters General expectations. of Scott, secondary segments. portion in MOBs our in track On and ahead and Troy line with In of Q&A our in Officer; or and Counsel. Also CFO. our increased or original our outlook records science on annual development Chief by Pete track to Officer call We're is President our demand with have set represented funding, for or to equity Development our with HCA remains continues development and the Starting are this same-store QX Klaritch, activity Legal our in and seeing the our Life for MOBs strong on in call the and with program Chief Operating CIO; we and results, to performing projects IPOs deliver which both me already today Brinker, are are McHenry, on and our four is have medical plan and industry pre-leasing. with line the office, that VC and space. available track expect year. executions and Tom our development Science, strong with Scott life offerings, we're And our of very the science adding of

quarter trends to of stimulus. SHOP, to The other and occupancy continues triple-net, one our related and from pressure expense by offset CARES by partially business COVID, represented Act experience CCRCs

results last testing, Improvements better of contain have quarantines, more have function other been PPE, and profitably. framework, our protocols allowed to the our and quite to relative outbreaks However, the quarter. effectively we provided to housing favorable outlook and senior staffing, operators to virus

to when we're forward, a phases XA XB. available, healthcare encouraged and and in look receive prioritized we are seniors As vaccine, workers that

the Science deliberate entry while we In consists which each upside. our taken senior irreplaceable exit actions with of a mass, we the so assets, science to our in development housing our high and to the equivalent of market past each the the portfolio. of critical Over during have Boston size acquisition and business, San three barrier portfolio, of past and Diego. and life businesses, position embedded and of we life latest now innovation: Boston, proceeds science, four life SNF reinvesting strong CCRC and years, to have significant each non-core MOBs growing in competitive portfolios, San science square Diego in our have built South foot being years, X.X announcements, three Life San and a Boston hotbeds Francisco, million In major inclusive roughly

funded developments on our night, transitioned medical and housing. our focus view CCRC we $X.X XX% strengthened almost and medical XXX,XXX a interest square year, have of of We billion important added with plan portfolio hospitals. pre-leased. acquisitions space a last grown have feet business top earlier renewed is have office operator currently our in increased We in other in of the ownership active to pipeline office to year-to-date. and is in development HCA on-campus development who announced senior our And this top and that LCS we new completions and Including XXX% operations our this fully our segment

believe our an next and value-creation the XX remains of have shadow in liquidity CCRC platforms to company and MOBs, and balance to we our build Additionally, life we continue development is businesses, systems the pipeline of XXXX, strong we in continue invest and And great years. to potential finally, financial fortress during carefully. XX we with over our a and in a sheet, enormous top science, which one manage significant And densification shape opportunities people in industry. what heavily with

our years, reduced portfolio of size both the of have the transactions, our SHOP we of over $X status billion. SHOP with over and sales Triple-net dramatically the Triple-net to aggregate and first, As last portfolios four

market. of PE and noted at on future capture and a been recovery triple-net include last housing I webcast Conference investment horizon SHOP and our buyers buyers of from have fits powder. interest during firms, there's Industry to in the our strong whose well recent quarterly the upside portfolios These time considerable potential potential dry number our that As presentation, call senior earnings

seller plus We're the an stages triple-net we on which of and be we non-core. portfolios, remain accelerate Scott opportunity We the number of majority further But housing of or $X.X baby rapidly demand in fully at SHOP to believe prepared right in transactions demographic. also minus play over serve continue and the representing to a CCRCs. we're core the price. growing if sell consider But assets, a our minutes. three roughly Regardless, billion to our these SHOP growing now in Importantly, and needed. society, the our be vital various could boomer of and our believe, which going exit in through of there senior time class discuss be asset will will businesses of and life forward will a focus a we science, our few MOBs triple-net on will assets will

on Moving to our dividend.

by dividend year-to-date AFFO exceeds Our our of currently XXX%. year-to-date payout a and ratio $X.XX playing

our as modestly on and have earnings our on investors we'll mandatory with exceeds results, we're also we our continue our mentioned short AFFO attract with we're to dividend centralized As our Denver travel and equal in virus, talent. travel a our continue night, a to announced, comfortable analysts, provides our we'll and we're which time to also a around We two the path relative to potential XX retirement employee country. and we to to rating agencies Irvine relocating limit. from of majority various moving Denver, offices of we XX-year replacing policy it Irvine our that portfolio, nationwide provided and announced time, finally, top favorable base when Denver corporate based term age to And Last headquarters prior period talented our directory will if the house retain of outcomes chose a for the location the Nashville, and quicker assess be meeting our to dividend location of XX calls, XXXX. our and people transactions. the during Denver XX

of with results. our favorable the we and mix our it orderly and the will of discuss Pete? depth policy And Board, financial forward. I more a turn that, overtime new breadth Given Pete provide refreshment the current maintain and happier diversity. of could frankly, makeup experience term With be Board to believe, our a will not over I'll to consistent and

Pete Scott

$X.XX our I'll our Tom. quarter third results. reported quarter XXXX balance with a update a our a activity the finish adjusted of with combined an platforms discussion quarter growth start X.X%. driven the today share primarily of Thanks, outlook. cash sheet by with represents as growth Starting We for provide and XX% and two results, third same-store of Same-store pool, our on X.X%. FFO of which was our office review and on grew per same-store NOI

escalators and Tom impressive same-store quarter with X.X% Starting operating segments strong rent and escalators As mark-to-market. by rent from demand. positive In ad driven both partially contractual higher benefit trends the was X.X% mark-to-market, positive contractual mentioned, by science, the medical by continue and leasing, with driven a office offset growth parking favorable rents, income. was for in growth life to tenant decline

same-store portfolio, housing a represents performance which the of of growth was in XX% offset year-over-year by X% in challenged. pool SHOP. was XX% Triple-net our decline expected, As senior

senior excluded additional and transparency, Two In been with third Generally housing provide triple-net for results. pro our XX% order selling at As Tom housing Page the majority mention quarter-end. Accepted same-store from SHOP same-store and regarding of we this these Principles, forma XXX in were a senior same-store Accounting assets impacts we're housing stabilized have reported In negative assets like would stages which are various results. quarter as negative our assets. added quarter included reported classified pool, our of supplemental and other significantly to senior our Had These XX. policy, on would accordance held-for-sale the been in page XX% assets to items, SHOP respectively. I and mentioned,

combined. expenses second million of of favorably compares the This or COVID to expenses SHOP $XX in we share portfolios $XX First, experienced in million a approximately elevated quarter. total in CCRC incurred our we $X.XX COVID and per the elevated

Act received revenue in CCRCs, million $X received a third second sequential penny to important CARES to in we $XX little at note is approximately approximately grants. Second, compared CARES NOI $X per during performance, grants quarter half only the quarter. than share Act of When looking particularly a we for our million the less it and million or

to our balance Turning sheet.

sheet X.X maturing liquidity. We balance to $X.X provide a reported and with debt remains billion total EBITDA $XXX net of tremendous we million due. We have until of bonds October and November no liquidity modest ended a And Our flexibility. us when strong comes XXXX times.

outlook. Moving on our to earnings

XX science. supplemental. XXXX Starting of and can earnings and which We found Pages with framework, outlook have to be XX life updated office medical our on our

have we mid-point our office basis same-store increased points medical at to the XX by First, X.XX% X.XX%. outlook to

Second, the to X.XX% XXXX also guidance our basis which outlook points original same-store we've mid-point our range. above to XXX science at points basis XXX increased X.XX%, by is life

our same-store end top year-end, through progress collections our the to full-year how life on science could depending speaks of of the the surpass range, strength addition, and In sector.

outlook $X.XX FFO our a of improved for result XXXX. for life medical we science, and in a office to pickup share $X.XX see As per

CCRCs. Now outlook our for SHOP fourth and quarter

As August outlook and CCRC SHOP our Tom exceeded framework. mentioned, performance our

basis to the third quarter. XXX expect For points relative to XXX SHOP, we occupancy to decline

COVID incremental For flat expect in With third quarter expenses, both potential to the third expenses and CCRCs, of outlook relative and entire line be not at we the that run to the rate. owned mid-point note expect be with to Important occupancy we CCRC quarter SHOP quarter. to and regard November SHOP the stabilized does disposition. of adjust SHOP X, for occupancy the to inclusive as expense fourth is portfolio

quick the the a provide Starting and will quarter specific Scott let the update more $XXX through While acquisition, of provide closed on of portfolio. me during approximately third sources transaction, on and inclusive October, Midwest detail MOB on with million we acquisition uses.

have entered life $XXX million acquisition. binding We contracts also into on science of

disposition. to Moving

or under including intent, we $XXX successful, for and if used During mid $X in be currently number million approximately housing close XXXX. our or We senior balance amount late of senior the to future non-core agreement quarter strategic run of from some net senior leverage XXXX of remain billion are letters will housing dispositions rate October, dispositions repayments, the office. through seller net The includes five stages, a debt-to-EBITDA. disposition, times completed potentially under housing the to third medical acquisition, which, approximately financing. billion our $X.X a of On $XXX and which in approximately early have in and high debt could expected proceeds basis, million purchase various of

below above However, transactions on our long targets spot leverage or when may depending go temporarily close. fourth our metric quarter for the

best our the As the earnings on the is in a of and framework information supplemental current as available date. reminder, outlook based

sector XX with published now September. results, results to move-in with occupancy not preliminary contractual occupancy basis In memory occupancy flat, wanted October Finally, properties occupancy points. XX XX% of few occupancy contractual our when points. basis experienced of accepting of we office, the received XX% only of on XX did basis the during declined and touch from release, and I highlights. along which COVID. AL month COVID and declined In continues medical increasing move-in SHOP, first favorable lowest which to science, received occupancy XX% properties our In is a IL, our life the rents are are points, consistent now and unchanged show our rents momentum earnings with continues and monthly is and Notably, In CCRCs, accepting decline. XXX% during was care decline our strong

we we October million in Additionally, received the over and to comments October, receive quarter. of turning expect the the on preliminary Two during call million Scott. results $X.X balance $X.X grants to CARES an last before Act additional deck the of

certain First, the we in historical Street this month We of back information it was important now COVID all one include housing assess to to by place senior data trends. March. to for going have felt

the show our operating for modified held-for-sale and metrics to we presentation same-store portfolios. Second, combined stabilized

appropriate this into the change portfolio me turn to was we been only Our the previous methodology. the let it our disclosures call Scott. that, With held-for-sale same-store went of given but to felt for magnitude that assets quarter, over had

Scott Brinker

I'll to results In business science, driven by update. growth Thank and once operating range, mark-to-market. contractual augmented leasing low strong in with each finish by in a speak again Pete. the X% the and you, was transaction X.X% life segment escalators

biotechs markets three life at our two our that of of and in continue our rent relationships. device, Tech therefore capital which experience from our leasing and of debt a collections biotechs unique because with raising space. of at exceeded markets together on Diego, We're in core significant done pharma, year-to-date medical between science of be year-to-date. demand majority the the below our Only bad has tenants PEAK our was and dominate rent important are local portfolio. Boston The life These market. balance San capitalizing environment of been at existing In the concentration in We're in home. driving the expectations benefiting in That's university. science split from also office R&D, institutional and XX-plus-percent are the replicated of XX% X% tenants to is averages the both historical capital Francisco, and and XX% highlighting portfolio inflows relationships with lab represent can't have San the addition, for about because Two-thirds capturing sector. and decades is our the importance scale vast

We we've new at they with driven mark-to-market. cash original developments, more as tenants XX,XXX full-year than have square need lease-up competitive their and advantage XXX% when about direct faster expansions. more space. growth Year-to-date, as our budget, of dialogue by our a a our renewals well executed renewals huge In of XX% executed at leasing and XQ, we feet

and return leasing also XXX% at in is pre-leased, weighted XQ'XX, delivers the square X% New in term lease average That was in Torrey lease Pines. cost XX-plus-years, now and project of a strong Boardwalk included a on XXX,XXX foot and the a range. low with

as signed And is feet on an with solid well our So letters in intent. another pipeline huge quarter-end, we leases square square feet of of by October. under success platform. development to additional team the Subsequent and XX,XXX XXX,XXX

XXX,XXX square Cambridge, we A campus. our over lab expect months next construction XX% supply are a is in deliver XXX,XXX remaining we good in square foot the XXX to XX deliveries CambridgePark West began creating favorable foot very activity on leased market, that a sub XQ'XX. next in to development a that door XX%. the with Drive at on Class Based demand The existing building and holdings project new Our outlook,

commenced We driven the feet feet in quarter by original including the two more Turning into with square be than with of points basis leasing of and Nearly XXX,XXX full-year projects of XQ, continues square to our strong medical X.X% from Leasing office. down mark-to-market. development to a budget. retracted prior-quarter, in occupancy the leases XX.X% XXX,XXX operating placement the XX renewals ended portfolio. at cash line

with medical resiliency of collections quarter of Third averages, square Upon the XX% under signed XX% includes of also quarter. repayment bad COVID-related another deferrals and building square to delivered rent We was feet on-campus office. the in were This were is and below XXX,XXX delivery, debt Tennessee. above Year-to-date in intent. a reflecting excellence above office foot rent XXX,XXX medical XX%. it operational development actually leased HCA letters XX% historical nearly Brentwood, of

office at XX,XXX That in medical today. leased was square a located foot at delivered is also Center Utah. project leased Regional the Medical delivery building XX% We XX% Ogden and

our sales to last versus improved of driven about portfolio. are CCRC Entrance still funding. than Turning was and fee lower averages. but Cash expected quarter, being expenses NOI than COVID better Act anticipated by million below historical occupancy, XX% XX% CARES $X

We looking improvement is basis concentration X,XXX LCS phased more with demand elective as than Florida positive Field begin have our reopenings. market within point steady as housing strong given low there. to May, seeing a in in the are CCRCs the was our occupancy able nursing resumed. Also in surgeries points forward since improved clear

occupancy the when June SHOP, the expenses to October to points improvement carried ADC in from much occupancy better quarter, and down from under an only for comparing million COVID to just Turning were $X in improvement experienced September declined XX% XQ of we with September. XXX through The than XX basis ADC points basis XQ. in

with months This industry the capital living. the time dining. senior of was reported in drove a XX% real gradual XX% on arrears. collected begun Our than some the XX% same-store rent are implementing times prior XX fee at properties for X% basis, after one XX% quarter Currently X.XX including XX% our standard reopening and with as other more phased least half coverage of quarter. In pool in in-person ended negatively were and are three-month are increase rent offering uses management we allowing and On results portfolio, activities In held-for-sale Rent XQ trailing the to Aegis rents group September management which cover. and now visitation tours; has movements; between operators both level X.XX. reopening deferred the strong basis, the plans. rent cases, contractual impacted that portfolio after of fee a for that of over allowing family have was coverage by moving period portfolio as an the in

to transactions. will medical life Turning that toward forward science and further moving of We're rebalance asset housing portfolio number senior our on office. a sales

on see put from housing of various we're We repayments, senior stages $X.X which loan four dispositions billion to in we strong continue buyers. And buckets. interest roughly and into

for approximately the non-binding on majority eight of some sales and assets COVID third, closed we for roughly being actively $X SHOP on and basis, subject purchase a fives on pre-COVID of is cash on million; signed letters portfolio the approximately to for to housing transactions X, July successful, marketed on conditions; billion; some and rates since If expect remaining quarter second, basis. the for in have sale. sale binding $X.X represent we the exited annualized agreements, of about third XX a high First, fourth, signed intent senior the we transactions we $XXX have billion six X% cap

after disclose It's note the which or we We competitive that rents the and also EBITDAR. on property the about less important high have triple-net cap from not to closing. In high buyer. expect for operator based on remains location, of We'll dramatic assets unpredictable. based the to the able per all level position. sales fives age, were in obligations unit sold given The and COVID than price to range nearly applicable to sales the in differences be sevens $XXX,XXX to rates senior represent $XX,XXX in cases, the name housing contractual the comment

specific no escalating XX% up may repayment, closing. there's of financing sales. financing, to rates the assurance any, a be of completion to range long-term loan asset speed if as short-term we choose in have value with lender. the provide incentivize we being on Also, intention to to So would the the Seller in cases, no

holdings well South cash us adjacent least scale. as And to Moving cap campus in and cap to Discovery we life buildings West X and from represent a the we medical easy in one, sourced October, in to price opportunities number a which health Cambridge. The represents health is are heavily The the of rate foot year who closed one $XXX campus in on Park; scale science distance that anchored rate acquisitions. XXX,XXX the one Cambridge X.X% occupied, leading targeted. asset all The to We've at under mark-to-market. office portfolio vast by in had and existing and X% The any building square a relationships acquire six and other the system, contract A local specifically locations research our is million. of Class of system in have the in XX% Alewife seven great acquisition health walking recycle off-market Route within feet do one this market number square Boston for next majority at sales. rate and XXX,XXX located We're portfolio station. In with price as cash the X.X% so also and inclusive represents foot provides to to square enter campus Indy. North number cap share allowed footprint success Indianapolis expands a finding to on XXX,XXX purchase the a market a system to West proceeds and Cambridge. of The with like GAAP campus is Indy, to were Healthpeak

now or Discovery gives have of this we're land located an finally, expertise Labs potential site site densify San In be rich excellent major upon additional roads development sites assessment office. to with demand. of housing is our Forbes campus, number Combined, development and this on a sites This contiguous million to birthplace we're and control Modular solid decades which science share in our square And extend and with runway life additional more XXX,XXX one III the these Francisco. We're a family-owned important acquire X also existing with us in in market Park in We of the Bulfinch, all three under new prominent compelling most making the to senior do submarket sales, on contract in our to transforming our the an XX-acre South Healthpeak existing to company acquisition build amenity supply portfolio feet with the based sites. between three with progress phases square feet. excited allow acquisitions Boston. We relationships biotech. entitlements with partnership and pricing and off-market summary, and in built medical to

With and strong along to balance we're our value with ability in now, these future. the sheet, transactions, talented our our the And back stakeholders to deliver into confident team, to Q&A. operator, for

Operator

begin Instructions]. now session. will the first will Yulico Nick question We question-and-answer Scotiabank. from [Operator come And today our with

Nick Yulico

afternoon everyone. Thanks. Good

So senior housing question I asset guess first the on sales.

If you a doing you're now? say could talk right you this the are at bit And a just little price. that did about why seller more you

I sell the over Why you And a couple years. confident a think you in is something price out when do talk growth attractive now of at growth that of bit good next could and get more the see housing senior maybe about price you So right why better in you are this that's you into are you're the right here. guys housing? pricing willing senior guess portfolio little getting that to others reinvest and why

Tom Herzog

it's Hey, Tom. Nick,

and a where we assessed I these long range that strategic -- want as kneejerk sales, a our make I And number it long when I forward was movement of our mix portfolio received we parties. we not future about to had growth think think from reaction decision, interest had to reside. to COVID. range it, the was So, a Rather, decision mentioned

senior MOB of given of life as us, about markets, lots And a think reinvestment fully in to exit as years, our selling So anchored I we and life businesses. as about potential we've and three the both you opportunities the script, science competitive business. we in major clusters catalyst do the the reinvest HCA mentioned on-campus housing providing in a -- to four external been businesses those of think as in We we we opportunities natural science the think know, proceeds, I see see for and advantage have both do but platform. internal COVID our for my

it So some certainly, But the as this, to right the in forward valid we down business the the a bumpy now, mentioned bottom in time, on pre-COVID through it the and on pretty at to we there going strong having solid of, with that SHOP, high we're is pricing, same think annualized. fives quite price spoke if rides that a just to is a call on go ride. it's housing be can ranges without future. on line it's pricing. have. I housing call to is capture a be three -- And going going to basis going yield a that that to is you certainly able And capture certain a QX That's that, bumpy pricing that at senior senior

our that players positioned other let to outside in better are in. opportunity. other there us these on move businesses of strategy that So our we're of take interested may given Healthpeak reinvest is that at that point advantage be And view that to

Nick Yulico

a acquisitions, just think of your one capital? not have billion dividend, that. $X large some AFFO. the seeing of is being and if being up I you going acquisition of I just of terms income able your it's sale guys you're are senior still producing, guess should under like be And So are $X.X there fully for guess that that to would know the I life $X in comfortable -- But much acquisitions you Are you confident some How now think here, going billion also portfolio an done plus is for land. significant time announced the that's short I'm are we invest. in right the where amount properties? How lot at price, about helpful. you're is create covered that producing gearing income billion, how science reports reinvest three is is majority wondering this did some to mention to cut least dividend to of in billion should about selling we gotten to Okay, you relates other a which income something all question with producing housing, you that like dilution not by you're to dividends? have

Tom Herzog

a Okay, question. help a a sense try question It's it will a great that covers in way of that make lot it. to in there's let sequence that lot; me

acquisitions of So call it have that a announced $X we've we billion.

life that in contiguous it had us for that very strategic. Forbes strategic cap asset, been West interest most in mega MOB, in the on-campus, campus that, asset create separate a Cambridge, feel market of for are in science it BML science, the very science, future. a of entitled, have our to of good Some Gallo has share. so in life X.X life significant very MOB some the In we that could and side, that we in us sites the about III And then a is which land and having market a

a tax would soft tax seen. we it very end form acquisitions capable, as that eliminates big fair plays a some important. us were When that how that those we off-market done, with or risks a of will there's were ROI, couple of a good really remember of and portfolios strategic to that very transaction, one that contract took $X be any planning expect But orchestrating some which up that our under consider or But maybe has gets proceeds, it or how a to big we for we we see And becomes these would this sales investors we'll much of think and mix that important. $X.X under the all billion to this amount, we out out. have have of XX/XX hard when billion feel So them. deals, about on about we

could then, so if utilizing -- we do we of And sales we as acquisitions, at, when the don't up we liquidity, a our look if some of end number make. the

is we'll sheet we'll science one not To and And A liquidity major compete billion our talking can of we're stuff know the In for a have our quite probably that so we about. back call it we that of make if competitors. East some That life of see $X some use going to great of question you're easily deal. sales in will be Cambridge, I to put lots we a that nice referencing about Boston, don't information have to your fine totally still portfolio, that on leave balance which into not us. front. to even think you chosen proceeds, I some you're into

ago; period, a liquidity sheet in for So be short great. to much our mentioned I We're a modestly strong we mentioned at leg covered at the it's point. Really our AFFO our and is up if payout as pursue. dividend the that's fully that portfolio, dividend, recent this ratio, We've going of this pretty nothing. just thing. a XXX% I dividend us, other not one a impact got to this whole And almost to exceeds balance for quarter conference, our comfortable. are NAV a will

the months, and as the just virus, path play our and And our all proceed see be sales, reposition So continue the like portfolio see these duration dividend based is prematurely the things ratio payout outcome how to which coming on little given before of able the uncertain, these our I see as over projected adjustment to that we AFFO, we'd preferred the of we still we'll making factors, where we assess out. benefit fall. to an the in dividend to

ultimately will is of protect our not dividend ratings. protracted a our when down it is size shortfall to bottom to line and the to it, with comes seek would do because we something continue credit liquidity So we

worried right not the on right the place it. we're make about the and So that, the up right time we'll decision when in end on comes dividend,

Operator

Our will next come ISI. Steve with Sakwa from question Evercore

Steve Sakwa

side of on on line it in expectation the at some you're that same following maybe lot a and sales of are all a dilution about take yield in and when just investments you successful differences achieve that would look your billion, and side. And is $X of make blended you some the money it? you realized questioning it that higher how thinking FFO there's neutral call comes billion the be there's I $X.X But of range. kind is sort I the realize in. acquisition and you goes if of expectation level, sort executing effectively it stabilized on that Maybe Nick's up out, here, the the but disposition pieces short-term? Thanks. moving of the money kind basis, your Is on back can, the maybe of in this timing of But the out longer-term the when both

Tom Herzog

for we whether uncertainty. dilutive ride into lot current and sell the being, nine a The you the do could could yield that's transactions, inside what time Think bottom of payout of these right It's timing a a it's no. liquidate months or is could they right at it sell Got of the competitors XX forward the through, play looks great different months a build question. is bumpy really The price. Not notes go be you, create it's for line can But in that these we if one is, for we looks answer have the couple do to roll-forward will got fair answer. not the we at we any affect model in when effect, to we'll ratio, again, these know. months, price, some project as at And types six of sell question. at of or I at in it of that like assets as the of of be dilution the a assets you almost now? things. But quarter, platform. us don't terms dilutive the very And recovery, COVID, our or in That company and assets forward to with said all. only third if a we've saw interesting that that's

not would at by answer Because we a more transactions no, cap you had of the So billion when these just solid think is what we we we it's $X could proceeds that about taking actions. that do showed rates. But for? dilutive the use

will We bonds debt-to-EBITDA our great those able identify take other opportunities if and put excess looking we do, at decide things and looked cash and have XXXX at we we extent hard, not that's and to maturities that that XXXX out debt have be that we're off-market for more And makes sense. the in the low right. shape in Xs into time. the then new respect. longer down of range, when we're a the place. that short Reinvest, in And date net bring our timing in X% period is To

special read in validly We're So that a that about make where just people to all. wondered, it position we do not at painful? things would some things have dividend or more I've have

company. higher a not I is, there's then trying would your temporarily decision make higher recovery spoke obviously yield, hockey stick expected. annualized yield across a types basis, blended recovery what is good. in if paying quarter that. this would be than that to that the all three And math we to to down of senior have It change question hope So and to there in we And it that than compare would, Steve would debt that the yield a had on current we quicker we're bring on a a a much a roughly housing, just we'd investments even have has strategically of our would

great questions So all all that's those that those I we about -- are how and items. think think I think

Steve Sakwa

Okay.

And expand guys lot life which people development of on or overheated, or Just the whether development, realize to of looking the you're are in gets a life you and operating their A on in there endeavors it Boston part I Francisco? your competitive issues. science on as a talk the about South follow-up maybe expanding just in MOBs. is in are worry San the some be sciences bit in, markets that any risk market supply

Scott Brinker

any for looking of it's here. sights two-thirds get a supply pre-leased any to fundamentals of period of markets short out X.X period Scott between of real are as shorter there's time. in each potential about as feet but square estate mean, X real over we million good Steve, average. and Longer-term, the But million I business demand think today, in certainly estate my the Hi, core and supply time, even sector. has for a the of substantially new on three balance

that, markets a sub are higher some or but XX% than pre-leased. two-year Now, lower the timeframe delivery that's

XX it's leased, delivering XX% similar, is delivering is is over next months, the portfolio the XX% year-end Our XXXX. through

very of very, analysis supply that's a that in that we most Cambridge do we the on recent the in Drive we XXX in the development. demand CambridgePark given we before unleased new sector supply demand any was of careful feel very would new And where window at amount West the So pull about relative mid-XXXX, trigger coming. the open and good to

continue we watch decisions. we'll So it quarter-to-quarter make to new as

which could up on tomorrow, densification from of years A space add we million our locations a are capital. that type that than on that like land, about in now. now those we business, And think those existing sitting obviously, XX those to vacant XX-years also of do could net plus we got all could feel in different or We from feet bunch square opportunities X we we've additional is when do

place and feel to a we think demand when be favorable. there's opportunities, don't we great trigger urgency So to is is can the supply which like particular strategically those any that pull we

Operator

Michael RBC. from Carroll comes with question next Our

Michael Carroll

sales along, these and valuations. how prices along you transactions I'm Great, that thanks. comfortable sales assuming are fairly you're given provide Can and are far some seniors housing quoting far details now? right

So I kind billion the guess and few you that the closed that highlighted quoted be assume should $X.X we your next over in press of could quarters? release

Scott Brinker

it's Okay, portfolios about Scott here. closing But felt $X.XX likelihood execution. have names, brand better counterparties, unusual We'll an have talking certainly dates. high specific quoting billion in right. Michael, environment. hold have known and strong People are I we on they strong you're close. of off off with comfortable fact, they purchase agreements we mean, make with, But do we relationships disclosing under that signed a once we specific

far the be recently intent, are in buyers stages, in another importantly until more operators of are along. they're the more were at some substantially of So and we disclose And time. and various then letters signed Those names then closed some that billion. the it's will $X

assets So but sale, a XX is it not exclusive. for alone, about in of really are We different all those buckets transactions in having mix. the yet two addition that marketed talked to

a it's yet, the changes pretty environment And that day. progress. great making we're by dynamic So

could two like counterparties weeks and in today, have the months. sit But two making feel we're execute. great So be progress good where will feedback from different we that we or

Michael Carroll

or specific assets? $XXX not triple-net that a or $X.X a million kind talked guess in Can assets was you mean, it about billion on you second, I I both. those some And the number. what's us color those on of little SHOP are roughly is mostly progress that mix bit give of type

Scott Brinker

marketing I'm some and those to Yes, stage we are and being go a that we It's just joint have where are then don't some make unilateral some ventures triple-net do is sale. to happy that SHOP. for intent, have authority in of are marketed The letters that. now signing of decision. and And mix to of close ahead

the So going more uncertain, timing Mike. is of sale those for

Operator

Juan question next BMO from come will Sanabria Our with Markets. Capital

Juan Sanabria

are in move staying to for the with with see should Senior making of shift be the housing people, management that that time. all to we and announcement exit Executives the costs or we it the the headquarter opening what thanks PEAK et the just wanted the that just seniors If of are in you I to all to corporate confirm know Hi, that that, office. fact, line G&A tied could potential of new asset business? that offsets any do it's cetera there and expect? and related And kind

Tom Herzog

Juan, it’s Tom. Hey

Senior Denver. same Executive to First is with total. us But which a C-suite, will also place. remain in more as relocating will some will location, relocations. their and in their our central that EVPs losing for The in a It Nashville their XX offices result Executives. and is Irvine. going we're and think We'll have have headquarters XX position these Nobody main in people in puts much of Nashville, job to all, as main Senior be be offices the Irvine efficient these talent or I life of

business. to between of portion for Boston square can We of a oversee nicely. our I Wall with of to bigger now of X.X our back very part connector corner tell is Street, very it and out the charge and work feet head that to Southwest our to flights. that and science of with other made I and life of a So And is we interact and very in flight you, bigger forth long team had were properties difficult large million going country, difficulty when because had the the travel Nashville always a in think Irvine, those being

we So to better outcome. think a be this is going

cost don't as as -- no, we savings concerns As as concerns, far far have that. any on

I to would As say bit of on, Denver might much little cheaper a be savings. cost do far is as that. business. Over There a place Early it's push. time, a

have some over reason probably did will we it. that But cost it So savings real time. the that wasn't

offsets occur talent right in executive Denver retain over and better time of is as getting yes, a there our far recruit as location, office So about more bit and place a not that time, little to and G&A, will over was is big the that as This well. but a deal.

So this answered that move. our as made we that thoughts

Juan Sanabria

maintained to effectively is you've My -- G&A CCRCs? seniors you're a terms there because outside benefit was just question, third of G&A in reducing exiting load regards to it, of from housing, more shareholders with be sorry, exiting of in a what the that

Tom Herzog

G&A SHOP far behind move. a not the if the of Well, an we'll it looked as are we perspective, triple-net CCRCs, at XX% NOI from savings, that's NOI. motivation keep and our total And as about the

little There of in. other lot can skilled So no, we're parts growing. I that personnel a our business we But a as model we’ll the reallocate bit. to wouldn't might be

your So savings see over numbers not I into model I dramatic time, anything would for them. do some but

Juan Sanabria

how the my you a pressures capital? that do and a you could you financing? an there are thinking bit potential reallocating capital, us earnings little perspective, willing much you in just on question, you're on to bit see bridge, that the recycling from alleviate a provide that? could little that of if about mismatch any And just provide? How final Okay. as help Maybe And vendor just quantum maybe more to

Scott Brinker

buyers, closing be mentioned that lenders to I should always the way three is specific as over are answer get dramatic four willing sense. are Scott. possible to it's buying the makes time, blended a not cap improvement that would Hey, the take say in The to it pretty We Juan because quite Obviously, as quicker. underwriting it’s a at risk. determined. NOI provide to portfolios, a which that we

least time it's at debt. some of it's, the for portfolios not source an to ideal So

the NOI As debt bounces more become the would back, are favorable. chances markets

purchase pay so of to to So seller if Pete, this mutual sooner, and you the be price. rates, there's likely add? financing, the us want we'd anything relatively later. XX% it'll short or that XX% it Tom And escalating to up set terms back we do incentive with in provide range

Tom Herzog

Peter?

Pete Scott

Hey, add can have color I these Yes, to some calls you on again. to nice that. Juan,

won't the about proceeds use right. important here, that sit on think point think we of it's out, you As cash, I to

ability have repay bonds, to to we maturing $X.XX the XXXX in billion of have at what and We when you up look XXXX.

There $X about seller And so of as of well, the pointed we've a we as then bit little billion within acquisitions, announced may think out. today, financing building as we've be got pipeline a well. that

of work. leverage may as a mid-Xs right right to get the mentioned, the will rate put wouldn't But at extent to get on to into got cash high a whole that for period I back to into be as look So that. do cores time that all And into acquisitions. this our going we away. we've the Tom we're We've got we find work don't the plan put to as acquisitions to that it capital bunch run sitting of over

Operator

question comes from Sadler with KeyBanc. Jordan next Our

Jordan Sadler

capital, bit be little billion terms going or and little in comes little of it morning. in bit, being terms few albeit really to you terms a us in redeploying deploy going into wanted in, you been it's XX:XX:XX in mix next a so put this about a forward? $X just once but talk Thanks CCRCs? your landscape Is I able dig on see or to good what quarters do work, bit the touched to the to of of science a to over life guys

Tom Herzog

relatively a next time. short Jordan, period is few of quarters

exact address let So the me question.

want. you it expand can if You

much and were it depends because it they successful of be bunch QX the sales it a these on could of could first in Now could how timing into be, get executing QX.

it in strategic our required get we've identified that financing short-term additional on the might cases, depends certain of acquisitions So a bridge time. whether depends how sales on in be to during much done. In seller core period businesses it

option We in some the have of XXXX. debt paying X% and XXXX down

top at so plays bother kind shave debt And quarters. off on that not us maturity on So I that would of those it's to all. what decisions those nice just made of And based could next stacks, be the over factors different happen mentioned. that all few those all would the

the probably to to favorably. right places we them, now Hill, off-market easiest As strong in money his densification and it's life many with got mix, with opportunities have relationship long Klaritch realistically and hospital got because But decades as invest Tom development MOBs, working we've in also the opportunities so some HCA that science we're far created invest out doing opportunity. and have things nice other We've Justin who's relationships, identifying opportunities. with

CCRCs in could XX upside. acre We have parcels on densification that some those average some opportunities our land create

we're for going be we We're could And those businesses. underwriting opportunities the highest whole variety in to have think funds in of it to sure that be that to three different is reward a front we're don't engaging of opportunities. the these going risk in I us be carefully mix things. make right. hurting So

Jordan Sadler

the a bunched Francisco, for Diego San side you'll think portfolio guys appetite on where San you Maybe as I focused? pretty a stay up Any life sort additional markets South are exposure; follow-up, obviously. heard commentary Tom, of in and Boston, you

Tom Herzog

got those frankly tenants biotech think of are we I growing, stay important most irreplaceable with thing. we've it's things, markets. critical in you're built biotech have dealing And that's a When one Well, clusters. very is rapidly pretty clusters space to in focused will because the that three each purpose of

on of to of we're to we going major But three But the is we us preclude markets that you be something point, will wouldn't going the are at the and from add that innovation three to at continue looking markets. to this near-term, doing want higher I of going we're cap it be that? capture list So some it it. but put rate hotbed in outside would at. something Scott, share on yielding anything that looking centers, those to doesn't

Scott Brinker

is We our Tom in it's that of well add, been business, would with have I mentioned local existing thing only so tenants. important market. two-thirds the a that that XXXX, scale leasing Yes, last, has to in in done

to So more unlike market, my if we do so want about in not office, critical scale, even enter be able life comments would a do we science. in but medical to

would we'd be a that work just have fundamental, So to through.

Jordan Sadler

Hey, if market? one I'd more how market buyers' with demand seniors add an Scott, participant a I available sale or versus active for characterize you've would landscape been is assets Is buyer housing over it decade, you today? which for sellers' to

Scott Brinker

of went Yes, a out counterparties. to we specific group very

So, went were the you temperature expect, mix, some the others run of a highly was marketplace, it might And we to less much maybe, was broad of bunch direct, were didn't as auctions, And it entire interested. generally interested speaking, quite get in. targeted. we

to category of to real opposed moving. standpoint, senior I as the interesting estate with be of sort investors. that direction the real think I has that intensive of fall maybe would our housing operationally more been more most aligns the buyers investors that And in the from thing pure think seem estate

noticed unique months. kind I've past of that's only nine to add? the six that would thing anything Tom, very So probably the over you

Tom Herzog

Scott. right, that’s think I No,

Jordan Sadler

Thanks, guys.

Tom Herzog

we proceed, I Hey, on XX even to the thanks. speed along have everybody. could in analysts we let's queue. get phone, and we'll do start questions the to continue could answers, the ask if Hey, another our people the if to We'll but

the operator, So analyst, let's next, the next go please. to

Operator

comes next Nick from Our question Citi. with Joseph

Nick Joseph

going it was in but to ask keep I'll like a partner else, short. I everyone

Tom Herzog

Thanks.

Nick Joseph

is of exit sort the to months. last evolved this housing; senior the recognize I over And six three

because of a about about think it's new life how CCRCs. what's as business little the earmarked of the think well But I'm it thinking MOB and leftover, massive So not you news, and sort as science, synergies bit. I necessarily, you

pay into came of that you you going portfolio, be when good and of a to framework was having about role, talking drivers, the the diversity balanced shareholders. time businesses with lot With different for having private spent three a

strength very attractive part science Clearly, things stable to up understand So portfolio life with are and wasn't senior one that third, as third, a have marketplace. have the as this well listed synergies, you players. of changed, -- MOB get both pick I to that decided business, if a MOB have you you players third, you life eventually wanted that's doing they left the life in well, and one attractive housing, an a create an science predominantly you're where would be that to But, you've a right? in capabilities right science now you listed, pure exit pure the other have and do play play as private and a and player really have number

why these keep businesses holding addition CCRCs? together, So the What's in to the point?

Tom Herzog

the science, point? In businesses investment senior that thesis what our three we with to housing, remaining? to life MOB, the other CCRCs together point checking why your is the that words, is balanced spoke have while and to Is a -- as of retaining main Just portfolio CCRCs

Nick Joseph

is, the class, the asset there what's business when mean, capitalized? yes, forward? How of sharp owning I shooters separately -- benefit each of you low are synergies you question with people view -- the more can do have type the going

Tom Herzog

thought all that's that high private we've growth is have and the it, same all these take true. in irreplaceable demographic, boomer businesses about to that way three the three all and three Well, of baby cases, they're barrier got advantage we've entry. pay businesses that portfolios And

the attract affiliated given XX% with not on an MOB at hands, on-campus that of change reassemble portfolio of CCRCs with in life lower brings rate. entrance at rarely that HCA-anchored tenant We've there's basis these versus an could asset of risk senior, And average the set they're now. land CCRCs, controlled an stay unit to of reassemble base. for given eight that got The the XX-year profile very, you accumulate represent CCRCs by two-year the XX% non-profits. could X% XXX priced And there's acre in our to properties. length Of science the clusters, being on that no no One XX% a only company, SHOP. to course, non-refundable things very a fees range. they to business way a return fluent class, strong way they but X% cap this is for that And parcels these stability XX each, more

decade We haven't properties. XX had very a And with track XX-years one five CCRCs. operating that's record operator capitalized any of of new CCRC well LCS, miles within asset we our a have for in a

degree benefit these businesses, benefiting the and demographic, when boomer of that to, of So each do all the from barrier spoke feeding of irreplaceable baby entry portfolios. diversification. the some off high look things we aspects same from of at the create do all first three I But to three they the

do for you're so And think those and And do SNF some those remaining that's and so for housing. third, a preferred, are our And follow, and successful basis an long that's spun billions like of time. And yield decision coming at third, further a a sold and time more senior into that able and REIT SHOP got three it business. we your if XX% we our because non-dilutive to really make. that a It driving that was of allow sales. the up a other of triple-net, least what businesses some to billions companies. a of looked decision businesses rate better period competitors I all And it, have that and so road realized we SHOP at if cap exit and had businesses business distracting. what some bumpy as talk on we compete a the them we volatile we down to with housing we with alluded our period business. these right, point, we did it current wasn't both of of would we some in with good is we we're to be be XX%, three of question, mind on, dollars to and down think, that's on came a third. plan. better that that chose. for ago triple-net, we opportunity to We bring other to a COVID To choose your SNF, off to, to It's senior what we the to Especially And and at changed

Nick Joseph

how to of being and in you portfolios, able like making about managing follow-up are own much those MOB you and things a that decisions? the control your over management and as play managers senior adapt life just if staff into the the the assets how those feel housing lack whereas in science to And

Tom Herzog

that? want you Scott, do to take

Scott Brinker

that certainly than happy particularly a REIT; I’m to, small structure There for one is the more of a cannot Tom. a Yes, own operating lot percentage companies. of in we of friction

So device of that been within acuity a as to have the the seems the friction intensified increased. throughout RIDEA structure has has the which source of business

been business decision grow expand So like business That it certainly the a it's the whether that source decreasing, is feels growing, or Michael. our and our the part view of business. tension has around that exit to not of

Operator

question from with Anderson Rich comes Our SMBC. next

Rich Anderson

Hey, morning out thanks. Good there.

this into do to portfolios look with said So Or how play on to you kind what at bumpiness. more other someone holistic the are just parts this? -- call have you just that kind generally? all business drove housing conclusion? put your to that can you've the extent you've a words, moving there Did know come the was specific considerations really the a heart the and to this portfolio there. out if quality of senior of I compete some that any with you topic How In of, I portfolio don't of know But better but into for your business the the this to much decision? of do. and said, were else did is say; the don't that did

Tom Herzog

start? Scott, ahead why go you and don't

Scott Brinker

was Yes, holistic Rich, decision. a it

material that will were particularly owner invest with growth, have excited equity a assets the not NOI something there perfectly new private we capture for pretty Now to That's firm the outcome. year amount fine into back is to building a capital horizon, any do. and are that some of didn't time five seven normally to a certainly a that

our two very a point like to be real pure critical business real otherwise billion or investors, demand very driven not business, XXX% forward a in supply feels more going as the view. healthcare think about be a really businesses the estate attractive operating It an fits business estate that is to company. plays role, it's great and our in Senior real much of but housing talking for that's and could to $X.X businesses interested company, that's That's the mass with, estate view understand pool who pure the buyer to, intermediate And and than and the platform a of company a earlier, view. we solid that they that's the inside what yes we term, different and my business different, is So, estate sell that's short-term, was to that great especially just plus whether by think public they're the our minus that, a very just decision in. we're REIT has REIT real a going long-term. are scale,

Rich Anderson

healthcare this Okay. folks kind so with very And of if other the about classes. life and topic of Michael of those people time who competing some you're bit, healthcare brought redirected functional competitive in be to that guess. science I peers, to medical that Bilerman you're housing the think and you classes? focused stick smarter fairly health time around a a that for utilities to Do you'll The senior office can be then IP, trust, that able spend level Or you trust question, my as with in that up all two second and and their you asset and and are into your reallocating popular, think be some on Alexandria asset smart probably these of extent easy be of respectively? sort as to to get there'll kind sorry it'll turnaround space catch-up

Tom Herzog

this, Rich, bottom line the and MOBs. life of grown is science businesses the we've two

experience we hard to MedCap long, a Tom be relationships. of pressed I have. team has deep business has than in more time find one been the With long Co-Founders think been for Klaritch, the an what having we'd that MOB with of

that from a respect. have do we behind sheet, So we in coming bigger bigger put ability do to we're not more And out feel the funds balance like deals.

office ago, competitive seeing we've many while very the deep life great that we in been doing before when with XXXX, that as structured you're combination relationships, business the have decades back that and still acquired development edge spring Slough type we've have people lab, a more think not you was look by it purpose got at is some quite properties up often go there. now. as in that along we expertise, we to HCP clusters all experienced science, were portfolios for to And So in pure because well way tech which

of to be to understand we that and a out period the couple feel position opportunities we've So And will fully compete bringing along more opportunities coming years. we those with of very, an we're businesses already magnitude in times. that the over of densification over outstanding to those the investors in next very large help both months alluded some

catch-up we So like in mode. we're feel

Rich Anderson

now was grow, or Yes, at you that and I people job was -- probably job, they're there that I talking are was are the good your just very get will doing these speed. point. answered. to up that into uncertain suggesting to asset as the them other But classes I take I'm about folks for sort housing And get some senior redeploying well it you're time of perfectly

you. thank So

Tom Herzog

And so remain experienced housing, senior will far get housing with I the the into folks is taken people. the people that make other bring but Rich, number businesses occurs behind, talents, already some -- some of some as of remains that then with that housing And it'll been senior of they've platform, the as that businesses, people the the there downsized exit naturally are also mean able are this businesses, other some business, staffed these that there's senior I positive. well is into reality No, bring attrition as is being the dispersed I that a of think some of that other housing we platform let and there's realistically, the that CCRCs. me skilled people of of and senior statement well. do in some housing be a within there's senior care to if And if

but considering up these all in we'll think that. So that end through I things and good all in been working we've a are place

Operator

comes next question with Valiquette Steven Our from Barclays.

Steven Valiquette

Great, taking thanks Pete Scott, questions. and Tom thanks. Hello, for and the

Tom Herzog

you. Thank

Steven Valiquette

next maybe conference now directional to your quarter grow comments the from XXXX? in for that, is will dilution in COVID-XX. up good pieces fourth the XXXX divestitures housing on to the asset try divesting are Thanks. full-year be right, guidance the not jump point whatever of uncertainty also of lot operational to in One redeployment, share will your that time is more official the this assets senior per of goal, on from on at FFO guess it call. from of additional to much I most about planning the the for news final earlier visibility housing based eliminate company and your of a anticipated you give when light the Is And XXXX on you sales. senior least just have related call this year

Tom Herzog

you start? Yes, Pete why don't

Pete Scott

Nice Steve, you. here. Yes, Pete to hear hi from it’s

now. it's XXXX the guidance. I think in right talk question, a to on our little of the budgeting guidance We're about soon middle

at get wanted to now. And some obviously, right as the the think Street outlook things least to for looking the call. that out. least that of formal it's we're we be that uncertainty For And this update at the to about other me a put guidance, way little effective of timing grants our but on that as we closing been some educate about there's we'll talk at well it's the I'd on the when we transactions, framework year, issue help on I of like to CARES provide soon year, to like things the quarterly this still Act next able to it and for talk call today, more

I and as much successful to Without and say what of as growth you senior head into about we that earnings year, should earnings other we're extent assets. we more your question, looks forward. unequivocally disposing in stable the going housing triple-net, have I next like, can think, that think SHOP these our

escalators X% the high last same-store As medical stable Tom will X% office, we've by mentioned, businesses. portfolio comprised to our length are a the the backdrop entry when AMREF positive in look a and in you business, to great mark-to-market, model. X% stable a stay rent a that have above we're sciences longer from CCRCs of life and in and at grown XX-plus-years, of And barrier three be

same-store think should X% So businesses, we to do they consistent as we generate look X% at those growth.

might than in the fact, given in near-term, life be it the sciences. better actually that, backdrop In

well future our have platform, and established across portfolio. this got also opportunities We and development redevelopment we've densification

factor Tom So I timeline a as to that basically and in that past, to because total of X% we the forward, really REIT. the look specific to want to will don't that. to see market that really ourselves a X% is as give things very think shareholder I you has a talked lot return haven't I healthcare the in top able find about put But in And XX% you out to-date been on you dividend those I when sector, and all this. companies. growth, know that's on it FFO stable just we the something a appeal there, of REIT X% annual said,

Steven Valiquette

sure going the talk right you've growth because Thanks. yes, for helpful. extremely down again, in it's forward years, five going last mainly and, appreciate you're And, divestitures, the the FFO so of Yes, yes, had color. CAGRs about

Tom Herzog

Thank you.

Operator

Joshua Dennerlein Bank next question America. from with comes Our of

Joshua Dennerlein

is the on lease one rates, been how that but you Most kind between SHOP know potential $X.X for net question hey you of mine Yes, and the gave of valuation? I split But of everyone. into already answered. hard that billion valuation have cap to sales it's back it.

Scott Brinker

detail. can't we on Scott, level comment it's Josh, of quite Hey, that

rates say thing we have well much scanned rents more I not the that both as show we the we're SHOP the same as this and to well try just the but of think of obviously to historically in NOI, amount that or portfolio into the point best but think is I ballpark, the we've could be as amount right than you cap that that point. the provided the and triple-net you'll going XQ disclosures at use separately, to in

Operator

Bernstein Our next from One. comes Daniel with question Capital

Daniel Bernstein

from somewhat just Hi, mean, since tend the side much the probably pharmaceutical you do asked, tenants, in the price signed life who's side to going you've I life demand on Actually, from you you to like that. a regulatory a I leases controls, but think ask it business Biden do have any not there doesn't did almost Election away seem win about been science? for tonight, try the do I if a stay have science, I quarter for get am and everything's lot is demand question, last local the you or which of some of new a to concern Presidency about have concern two, there's risks how from

Tom Herzog

both plays or power. how at doesn't holistically; during making controls can't drug that life a from giving Medicare to index That reimbursements we mean of Election. attempted an statements have are There's direct science, really international We'll to occur. we discussion lot it negotiating they of this see more pricing But But an see out. made risk. attempts don't at been years. a for point parties Dan, been it tying look huge there's

accelerated lots drugs biology has process innovation. So and based the FDA then They've baby faster; replenish boomer drug generation has is out when the come been of And of with The to patent pharmas demanding approval in development massively. look The reminder cliffs drugs. continuing treatments. COVID-XX new the biotechs of a to they stark growth. importance proven taken their of drugs these is develop

you ultimately have biopharmas some can't But what understood. there's We and we into some kind this It of when a growth big this believe what deterrent put real we pharmas factored estate. of to think type do are see and we've that to wanting their from could stifle both made. innovation. don't government that for being future economics see of be reforms that together, that demand I and that all just So the

Operator

Street. from comes question with Green next Lukas Our Hartwich

Lukas Hartwich

Thanks, morning. good

avenue an external did growth looking how weigh you So attractive up giving housing, out getting forward? of by of senior

Tom Herzog

of one looks one strategically. these where It's at things it when

believers from and that mentioned my in social future, both society perspective. need senior As we're I from prepared housing perspective going in a the remarks, is a to need

is So lot And subject to new it's business is here supply. of today business a than But ago. that different acuity a it stay. higher a to was decade it

we to bumpy pricing there's a of good us be going as demographics, is But exit. fast growing it to there's So the can we plenty is it yet seek upside, ride. means because with good which for capture

not same in for create into So investors a our we front more REIT, senior troubled outlined, to growth by in. thing, troubled to volatility that focus doesn't one SNFs we of more exit in housing and if that and It's bad the same industry, I'm thing triple-net the That's it compete REITs and business the both non-REITs focused, leave as neatly we view our that that's the side far opportunity, growth a that. opportunity just that that has me fit opportunities on a some the and not on others I'm necessarily SNFs. as as other about to felt the that not business. doesn't will already chose an I've compete bother last the not

the talked for science, about: there's a life that that and So REIT great that MOBs think businesses it CCRCs. up where place we've in a we on-campus further we've just specializes tightened

making And an made spend, exit is triple-net, able one just would only level business necessarily SHOP take away of probably action. think not down strategic from, we're bad that business. XX% chosen at sense. if So a that It's senior whether we our weren't we've shift position. to statement, because and to It's that we're this we it's in housing thinking awfully to be down our need at hard we about a

Operator

Mueller Our with next question comes from Mike JPMorgan.

Mike Mueller

selling about senior of per not short estate Yes, se. being you CCRCs business business stopped then? Why hi, and comments a the housing real an operating did just given

Tom Herzog

reasons home, stay. real senior, a it's sizable in, Seniors non-refundable we so CCRCs view Well, invest that to earlier, they come their Mike, for they more repeat have as but entrance eight to mentioned them the like. I estate tendency sell do I fee, of in length fluent a an have they more being XX-year won't all, a single-family

of not. a the the of business. of in, side And much majority level vast independent the there's then come so they through And acuity, lower it's them

completely investment perspective. perspective it's asset choice more us, they're much estate in be the that balance occupying. from the for they a effectively investing so where And their real lifestyle investment will And of creates a going for stable into asset or lives from and an a that

than And so play SHOP SHOP, different would a be a what portfolio.

Operator

Our Malhotra Stanley. Morgan from Vikram next with comes question

Vikram Malhotra

for taking the thanks all questions. Hi,

simpler, by the to not. how the of few maybe about driven of you of maybe maybe your two or your for? [ph] more Maybe of ones. focus? more maybe your being that talk life growth Or opportunity kind once not sort valued it's and to thought of you've clearly you science seniors were in wondering was But correctly next the about of leaving a talked science there's life quick and over valuable so value ascribed kind I'm and sort just view or Just be portfolios investors will just part could perhaps and kind of how of MOB sort view was first, inherent potentially, just be it the growth the lot your housing And about aside much market by but MOB. that rewarded of years longer-term, visibility decision

Tom Herzog

a lot no will science, that supply, not SHOP told full at, take multiple analysts perhaps is absolutely and we’ll time least could downsize got life it be We've several our the of there investors in question. There's is SHOP. that's been that a company about big when downsize talking future glad over much been seems investors deserves. time our think that is that question, team this portfolio years. majority we rerating Vikram, that triple-net place I'm will so senior strategy we MOBs coming. new asked volatile, about When be that recognize the we that one And further at with and to the around so The recovery think our there that a housing, last you And has we things that you a by spent our that we with and rerating of vast visiting as the likely further, decision. But looked came of and topic. get the that until some and even and

Vikram Malhotra

one range, ones. settles? Thank just you're talk did know payout strategic broadly? about the if other then requirements just going at the to decision, be quick And you about the there's yet. But timing the more quick they, you changes One talk to Board comfortable least and they And businesses all with sort of going going combined, debt related second, a CapEx perhaps of you. the given Okay. dividend once to how the can't at intensive ultimately sorry, I and be just is two can eligibility in did forward and then just more wise, kind just

Tom Herzog

Sure.

just age Those on, the far new to described, by take they assets side. CapEx compete, As far housing we on as senior part an they and awful CapEx you CapEx. they lot as had the supply on comes of what triple-net off, take SHOP, more of

at So as of dividend cash to the you NOI, day or you the your spend get NOI know, don't flow. end dividend

having get things And then you equation. think mentioned, on telling so depends what I'm again at the are those which exactly the the we consideration recycled our very But to was it far kind to And payout complete high sales, up reaction determination to I it part looking the not as of we've have look fair adjust enough. REITs a definitely that make little retained of that the important bit or jerk so our of densification development across pipeline. and the And more after middle look dividend these a ends COVID question, in so we a fall we you development. I things decisions. of ratios, at right, depends one a those and decision exact When And I think accretively on made would not like. that a into is about can a it want quality have to too that looked be earnings we as our what we’ll that come as Board where keep industry, payout strong all we knee into you And with business when hate out. lower we like

So be through going if exercise to I that to it's required at all, right so come we'll believe the and going we're that place.

two-and-a-half we but had that during very, we our second you're refreshed was board Bottom XX members, time. I we good on and board, ago, very that years place half put older our in The question age a a it? Board. for knew they looking place, that had at refreshment think board bit they an refresh of did was is we of long refreshment in important. been time, age your knew more looked little were we part and of older requirement We How color how line if And age. --

a age. younger point. we period far of And our that So early time, at this a as have members in refreshed XXs we've retirement board for an the half utilized number age our we XX of joined board age, board as have of

refreshment XX-year and we started expertise, that thought a thought as as recognized strong like our term policy on we limit felt of lot very it what we to the and really an be will Board our we about over excellent didn't so experience, and in Board, diversity progressive good long-term. XX-year more that just XX breadth over term an way And depth time, limit, the it make with result would looking look that that to a have out And age would board sense. looked

So that's how more the decision, came we that. to than nothing

Vikram Malhotra

Okay, thank you.

Tom Herzog

Thanks, Vikram. Anymore questions?

Operator

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

Tom Herzog

everybody our thanks morning everyone. call, the And chose the you. the We the call or Elections. thank Elections when for to exciting our call an a after going a lot of, Okay, had it's you the be to date; the morning on. tell joining we we choosing going again, got of evening, option of morning obviously but I long

NDRS all soon. we'll the next some and to on So you see week NAREIT We'll following. talk week

So look to then. to Bye-bye. talking forward you

Operator

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

disconnect. now may You

Healthpeak Properties (DOC) 3 Nov 202020 Q3 Earnings call transcript