PEAK - Earnings call transcript Q3 2021 | Healthpeak Properties, Inc.

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Operator

Good morning and welcome to the Healthpeak Properties, Inc.

Third Quarter conference call. All participants will be in listen-only mode. [Operator Instruction] After today's presentation, there will be an opportunity to ask questions. [Operator Instruction] Please note that this event is being recorded. to Corporate conference Finance like John's to now President Vice and would turn over the Andrew I Investor Relations. ahead. go Please

Andrew Johns

Welcome of quarter Today's contain 's results forward-looking Healthpeak certain call. will conference XXXX statements. conference call to financial third

referring on expectations. website. release to we press presentation any a and and in factors cause the any is reasonable based differ actual Executive comparable this most the forward-looking our are update results can in risk SEC exhibit G requirements. the is our the to measures have The the Chief and presentation. over accordance risks in Reg yesterday, from night directly statements financial San subject Herzog. are to We Although measures we be to non-GAAP reconciled undertake in with call. Tom fillings website. not forward-looking with our reflected to exhibit the Also, available found published financial SEC. X-K This investor Francisco A last all transaction to GAAP uncertainties on duty detailed call forward-looking in risks the believe be and measures non-GAAP included statements expectations we our West update discussion discussed will An of will now presentation on our of our I turn statements. a do Certain Officer, assumptions, that to section materially South Cambridge also may

Tom Herzog

morning good A.J., everyone. and Thanks

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

activities. Meanwhile, favorable. very Our development leasing and and our have were been operating and earnings active productive results in we transaction, QX

Let points. me Starting high operations. hit the with

to continued XX% close Science NOI our businesses of which QX perform and MOB above represent Life to expectations. Our

combined line our wealth sovereign performance roughly CCRC JV was in funds and While expectations. with

our debt closed XXXX, a Science, total and rental $X announced sales sales proceeds MOB a and housing and $XXX On the senior sales, our we of entirety Life billion. In contiguous July assemblage operating remaining Life And the of million core million $XXX to the we Science acquisitions, transaction cover bringing we redeployed Cambridge. of in front, investments reduction. largely into of West since land

Life be MOB HCA. we of were in With will the in and new also are strategic plan majority approximately play, next important leased properties traditional plus. In decade Science MOBs, land A the this that year-to-date now we've new a the medical developments developable office standalone to acquisitions, which HCA, submarket, with nursing the We captured $XXX over Class bringing multiple high-quality, three on-campus. develop school our primarily from million, two along three awarded to buildings, by acquisitions fully added

mentioned hid scale, to on we singles to and in I growth to MOB doubles. platform, accretive our focus As our leverage quarter, business continue and last full relationships expect

development. to Moving

momentum positive active pipeline remaining to across -lease, pre XX% fundamentals development San is as $X.X three Francisco, Our Life the markets A San space strong development and active see core Science Diego. program unleased billion with continues and our of remained Boston discussions.

densification will development But Given acquisitions, West development ownership the Scott. proud continue X Green of or over square will turn ESG yesterday, remaining Index. have recognition, billion XX South FTSEXGood our embedded that, added X X Star the businesses. to million We're our Cambridge Both closings consecutive Vantage we commencement across in the under this, of and announced be our Phase the And we inclusion will with feet quarter into ESG million plus $XXX this an we of Sustainability tenth With to our comment, it all culture. opportunities has for woven I in year. final One the and the designation, fabric our corporate aggregated and of scheduled Francisco. fully San GRESB control. to the that

Scott Brinker

Tom. and operating cover results, Thank three then Diego. is I'll innovation; footprint our results. development. you, Virtually Science with Francisco, in and Starting acquisitions San discuss the of biotech hotbeds entire San Life Boston,

feet all to current rent included Science markets third of line In feet upside mark-to-market entire our XXX,XXX square leasing vary the revolution a X four course, can on Year-to-date, renewals placing the cash renewals. ecosystem unmatched developed a and bringing them full-year growth and decades, strong results and beginning cash was we new talent, mark-to-market which Over was signed and square activity is the at an resources across success of the X.X for the getting The the position roll renewals, past the from and that's year-to-date broad-based and We've scientific year-to-year. concentrate in of we've our X purposefully in expansions. The these Life X.X%, developments, started. were million across build academics, quarter-to-quarter X.X%. is chosen these biotech times growth year. capital, driving have quarter by the that's driven of just performance. of Same-store leases, heart the quarter, NOI mark-to-market XX% to signed to contractual strong our from with of escalators, at markets, which leasing budget markets

pipeline nearly existing new of Looking and including forward with renewals, XXX,XXX feet expansion letters intent, of we developments, have undersigned tax. square a leasing

yet signed, that for exceeds and Life but range, have Our in annual million not NOI is million run $XXX development the $XXX cash Science rate, been commenced. now including leases

and the range, Moving parking a We our both leasing concentration strong Investments was outpatient the long-term commencements hard is end strong living XX Dallas, demand especially reduce properties, renewals outperform strong all in and X.X% the portfolio. positive, Consistent to by Hospital operating quarter. but strong, of from this to hospitals assisted and a unique was made for footprint carbon and had high our was in We're in to toward also continue a collections at benefiting retention the historical store Seattle, Finishing occupancy, This and affiliated with CCRCs, inpatient activity variant. our Mark-to-market our growth, hit third is you've feet by headwind. where averages. Florida headlines, had Green Office. expectations. the on us for with more was challenging and our as X.X% square skilled. grow [Indiscernible] in on in trailing labor historical seeing continues mind state our We're XXX,XXX and XX% recent markets benefiting Denver, in activity, Leasing Medical with NOI seen Nashville, in of volumes quarters. cash, are on-campus national income. quarter driven months, invest the Delta temporary impact to cost. quarter

on As the NOI represents cash count total nearly living in result, levels, of unit demand levels. historical Independent units X/X fee negative XXXX back campuses, a quarter the cash number for was exceeded in X.X% growth to fee entry and for Same-Store funding. The was those is XQ of Act and quarter, the CARES our sales receipts excluding strong. entry

supported most have We power in market. housing pricing of by our markets the strong

a System Dallas October, medical we office Seattle next was office medical number million. in this Swedish Dallas. location our taking Medical footprint Center one September, HCA of of to was off-market. on-campus off-market This and affiliated share an to advantage again, done land-locked In In for leading Also an square acquisition significantly acquisition for White building we XX,XXX potential on on Seattle's Moving XXX,XXX an market We in $XX over Scott site million. MOB in & one New to of Orleans the $XX see acquired acquisitions. in with hospital. the the MOBs Hospital we million. in X expand time, square foot the expand acquired MOB Baylor $XX for to acquired feet. densify October, the Once our campus campus of The

Science up Turning timing. is exceeding underwriting Lease our rate on both and development. to Life

final to at We which please XX% phase is yesterday. project Our the The was XXX% pipeline Vantage now the lease strong than our active rate excluding with which look the on A our Grand entitlements, X and potentially ongoing. pre X,XXX investment and a the Nexus the signed in Upon of Campus will development square deck Vantage. a at On lease we half adjacent Francisco square South at XX% X far see very of Pointe San door. million development X, commence will sits X commenced completion South include activity a take Campus -leased will you include say Phase at we least higher plus at final XXXX. phases, pre Nexus page and shore [Indiscernible] Vantage that Phase Vantage the and of published words, now is Francisco, initial lab, XXX,XXX all San so subject shore to just of can years the chose X campuses. picture next ago. -leased, leasing deliver (ph) more, second to feet, heart yesterday. feet in the the the are

opportunity now land potential acquisitions to Avroy next we Roughly the Coast coming delivered X.X% our totaling million feet San existing phase we upside brings us plays primarily XXX all land Boston, pipeline in million Park the remainder acres the per buildings fully our drive our development West West the single-story the Summit with the and decade in stabilized balance brings over Sorrento East quarters. XXXX, above and NAV these feet and land of a FFO next development square We office with the South X largely intend The for million square we $XXX submarket flowing plan XX% across The earnings site phases plus. significant The the XXX. are of initial Cambridge XXX is of with thousand announced to our And share huge quarter, is from replace footprint lab Diego, we XX of accessibility that quarter transactions contiguous year and in developed, working submarket we'll one assembled separate $XXX three future. the Gateway between in across campuses, preleased feet one-on-one to play foot, the series preleased. Moving San development. This annualized where active XQ the project XX acres. rate square covered thousand we third to covered of growth, development one of have yield average project In have more of acquisitions. investment In City a enormous class cash be Alewife, X.X a of In secured Cambridge. our Sorrento Cambridge and have our visibility XX% and blended of in to yesterday. the Francisco. in that sits have or on flex eventually Interstate and industrial site We'll with now to is on The Cambridge is which in underwriting. acquisition. $XX lease in Once excellent campuses. represents in investments,

Page If it and distance X distance isolated by the access amenities, of you Both tenants owning assemblage connect of particular, yesterday's single relocating. Path, provide location. to are flexibility lab very we train, an sites turn These to station the train in than Pete. walking This Minuteman is turn and for western In you'll settings investment walking commuter building in downtown to without and holdings all our will advantage existing car, Alewife within grow to bike. Boston adjacent which be to for infrastructure, see competitive I'll deck, X the have Alewife. leasing world-class is a Cambridge, in Bike the the because Route campus different to suburbs. can and

Peter Scott

financial Thanks, our Scott, results. with starting

per a both third Science Medical of Same-Store growth share reported quarter, Office. driven per for results $X.XX dividend the third of share. the of continued Board strong our Life and we are and X.X% has performance, $X.XX in by declared FFO quarter, For adjusted And out Our blended

Turning EBITDA to to a finished we our debt Sheet, third Balance of net quarter with X adjusted the times.

end by the in We our majority the quarter. year, the expect announced times mid-X to acquisition with of our closing target the of leverage activity ratio reach fourth

and upsized of facility, Also is confidence approximately to we their us equity raised re-up upsized our significant an which our an on it revolver liquidity closed it borrowing reduces in million net revolving increase group we of our share. debt blended testament provides $X stock $XX.XX program quarter, billion banking future. extends had position, The overall of $XXX XXX% a increases It our costs. million. credit profile, quarter, proceeds our the a ATM gross During maturity We our and our their at benefits. Company during with the of price approximately of under $XXX per commitments,

XX-month for All equity equity settlement was forwards. contracts. our forma of the forward raised of under Pro the

adjusted EBITDA net debt to X.X times. quarter is reduced to Third

guidance. to our Turning

of of midpoint of revised life share, as the to follows: $X.XX X. of our are Blended A $X.XX increasing of our pennies follows. XX X. basis we've guidance as a FFO XX office, revised The the our a In midpoint. basic to have to increase at by to X%, $X.XX we from In X.X% XXXX has major from: same-store An adjusted, We increase per guidance at guidance same-store basis X. X.XX% points XX the our X.X% per the increased midpoint X.XX%. by share. X. growth sciences, points guidance components midpoint. X.XX%, Same-Store an to two increased to are medical $X.XX revised points NOI a

acquisition have reflect to contract. to million, have XX Operator, announced the acquisitions, acquisition on closed guidance Q&A. XX let's are Accordingly, for under we additional that we non-same-store for significant of of our either $X.X updated have range activity. refer unchanged. $XX to to billion the our we For this open leaving million With detail and that, supplemental Please Finishing midpoint guidance with tightened guidance $XXX our a year-to-date, our revision. have line or our pages portfolios,

Operator

We that limit participate, chance we a and So to follow-up. question-and-answer begin everyone related have will [Operator participants a the may the to their ask one Instructions] to questions one now session.

re-queue. you If please additional questions, have

Morgan ahead. The Rich first Stanley. question go is Hill from Please of

Richard Hill

to listener, step you just detail acquisitions Good more a attractive? if Why MFC. we morning, Cambridge a about talk into first-time wanted I -- bit term back, market. long a recent that about maybe time get to your guys. amount caller. and acquisitions your little Long the are can above healthy And take find

you U.S. have identified. you you tell the not your other us plays if pipeline. that can any What this 'XX land you've as that just big 'XX think maybe across about wondering what Just 'XX, about, like -- acquisition but

Tom Herzog

at it's Rich, does to contract land our you million And it a Real are X+ Tom acquire country, at point, square business, what under feet Herzog. for $XX Life opportunity. this Hey, across to, across up look When the billion acquired. Science plays we've we sum plus

Coast a and sitting in is Sorrento being the terms opportunity next plus. think in million million it of Mesa. that maybe greater Francisco, Area, South Brisbane, primarily some in So $X.X the of San feet the would over decade in X.X I East massive it square Cambridge and probably now, Boston then of in West down

that purchase believe. in Life of over now the And time, during I long X-month We to put the going that great South in any to while, that we have for both we a fortunately in campuses The land think vast acquired organism this cycle just this heart to. in Like takes to the today. land are markets obviously, live some all submarket, going strong what that new we has for said, for be ecosystem as we've us, the These clusters FDA The up an that talent. you could able Science were that's to IPO quadrupled we in with which Cambridge, lines together I be enormous accretive dividends in in of coasts. of best without of would deeply aging think we last vital something not that West time, with period venture land research scientific of of NIH, Life opportunities effort very a the is in very time. type assemblage with success the [Indiscernible] substantial think markets. in advantage which think drug that the is probably are that land quite funding, did not opportunity population along that on time, to developable strong need think goes we some about, when create substantial and opportunity to of really sites all the picked about we across Science. capital know, majority and universities going It that of an -- replicated pay And these engaged us approval world. create a enormous the could as We additional biologics of be virtuous discovery, decade,

anything would Brinker, about add you you're So, and thinking on that how it?

Scott Brinker

to. cheaper it's Yeah, we maybe address that also X point is an $XX Bike tenants a than more address, things obviously the anyway. the it's realistically we I per It location will to question strong Cambridge a a is important in try Path. sold and with it. is to Line, about of that is And the factor attractive. about economically what attractive Cambridge foot X, does Red Route accessibility, out like it East which obviously found for have does big Boston, But yet important $XX market have the and which couple which

with that really, does and and that X really If the player. we're campus. together in the factor you've Mini separate biggest campus, was the was proceed. good the linchpin, There and And that But were to the conversions deciding in fairly as unheard big do strong not It's here. access parcels put like get transactions, There's put submarket. Science we was a be well. a history develop with a nearly in could ultimately lot went that. as got we today, to ultimately it to once but Street that. of far it pretty ground doing established address have entrants West was X There's together might matter Cambridge around the acres able parcels here. the XX Concord We what one just So do something new got. surrounding not the of And then X feet was of by a scale, ability deciding the how can interesting. building, to single square factor then And were it an to then more deciding together work those, that of. that parcel new it's million location And fact then clarity a Life lot much that Avenue breaking to we knows? who this in you're no commuting, put reputation. which There's Cambridge, is we're

Tom Herzog

going aggregate of of overall worth assemblage which whole Cambridge goals of able Think a acquired, in capability. us is going a to really bridges And when 's we and more the the -- then vibrant for together have City across of opportunity. perspective mixed-use City tracks, a 's huge advantage the quite while to from parcels that feels neighborhood, Cambridge etc. aggregate more realize forth terms from them is it's the thing we can think that I an an X in to you and help of, A transfer individual variety having more dreams to their foot also the create I'm lot that think cluster they've perspective being able the development, multi-family the take lot developable various add give being that set it we to coming between of terms FAR pieces. than whole

Richard Hill

Great, that's helpful guys.

matter to on that if years over of require executing the any just that a just this, summarize additional pipeline X so development is had And doesn't XX development. acquisitions, a all I it's this next capital to of

Tom Herzog

Rich. a it slightly describe bit good little even It's point. differently. I a Yeah, would

at to. or forward X plus if XX enough land not our but even covered plays have XX XX covered acquiring single without on for probably we busy, billion to years not another land land us asset chose and books keep land densification, to going to years, now $XX We

Richard Hill

I'll Thank the really and you, I -- the transparency. jump back appreciate queue. guys. that in answer the

Tom Herzog

Yeah. much, Richard. so Thanks

Operator

The ahead. next is from question Rich go Please of Anderson SMBC.

Richard Anderson

Good morning, everyone.

shield in take do are things you're Is do dust. work, So You these least don't Aren't out now your that portfolio, operate Cambridge sites and down be to industrial collect office deal. as more right? going to West somebody on to have or you you you want -- these to for at to and going that? also the

Scott Brinker

can we the work is portfolio, that groups I with of that property these campuses Richard. property address by that know Most already happen already. managed HFR I managing parcels, it's and

a leases office but business our tenants, risk, not not we at of would that the to obviously even not there's these as ton intent So seek various renew to two execution or is it's leases. mature campuses, these industrial

going So or we over to don't long-term. industrial flex office have we're an these the buildings that expectation operate

Richard Anderson

Okay.

So a going case combination? to or or assets tear-downs the be office in are all are conversions they office they

Scott Brinker

that's something just the leased But it's intend of down a that an couple we a of Rich. the rebuild Beth turned of that one Yeah, like don't Office Flagship, building any affiliate to that's an we of affiliate all much are would virtually, a down, lab those of industrial, of not next years, buildings over the Medical the we the down. building tearing mix, There's There have the expectation Israel. intention do in and in to portfolio tear to that example. portfolio different. That’s and office couple flex be leased

Richard Anderson

And [Indiscernible] Okay.

Scott Brinker

[Indiscernible]

Tom Herzog

setup significant the were is smaller underutilized these that way of keep versus you the have of master the degrees, in some within One parcels right things and there together it assemblage individual together development, thereby was mind as density to that that in FAR other be parcels individual whole transactions, increasing we FAR of to that we value pull put in the can varying that increasing by to the substantially the pieces. transferred greater the

So item. that critical was a

Richard Anderson

flow of also Okay, quickly, that MOB flow that but think question, business you great. doubles, get and second in a the I come just my called partners. acquisitions is would singles health some in be development your that the of an and it would development I And an you see going increasingly of your becoming really or with future, pipeline Do primarily form Thanks. part game? system to then

Tom Herzog

BioMed business, Alexandria the nearly markets us and much hospitals three ownership not is major that Life good reality there's a is that's of so the our a and with in acquisition Rich, and as market quite Whereas bit just acquisition stronger. between Science, institutions In relationship strong. based the the business on point. health

We do to a quite even some accretively end yielding Klaritch able Justin in sometimes low-to-mid Hill there put up Xs as strong or little better. opportunity programs bit been development together have to and grow well. have that the

And so accretive, quite that profitable. that business you anchor is are are could developments maybe business give growth how insight these the and that for quite Tom some of And of and lease that on-campus into see you Klaritch, times often and the sustainability us.

Tom Klaritch

have Savannah, them I number decent with on that two think a growth in with deals X always have we area working probably We're others Tom -- other with X we're our Florida bigger not X can potentially on our partners of mentioned anything. on. some future. along next the projects. other enough we'll them the announce We're those we're the of of also next MOBs, Brandon, pretty that parts X in or on in some in X for system along pretty far in discussions HCA in in with foreseeable We partners. call, Georgia, speaking the far X of really country with health but to and the we're with them year,

Richard Anderson

enough. Okay. Good Thanks.

Tom Herzog

Rich. Thanks,

Operator

go is from BMO Juan Capital question next The Please, ahead. of Markets. Sanabria

Juan Sanabria

the for thanks and time. morning, Good Hi.

in cluster focused the or see today you yields cap are MOBs stabilized markets Life do you Science Where on the a basis cap curious across rates rates. Just and on? both on

Scott Brinker

interest, markets address we're that. if In X range, in, bit the is any seen, as which higher, can is just for controlling those the versus the Xs. big can try a in a that almost Scott trade low Class but Life Science here. we've non-controlling even in little maybe interest -- of I it's X% Yeah, especially that though that, acquire the in A in product range entirely probably selling you to

Now, built into often Mark-to-market the buildings them, but into pretty times, of future. those far some have that's

the presence sector. forces, strength cap points hard the Office, over are, capital that's Medical mid-Xs A it's variability probably given cap quality then still just XX in more the in down probably or to in of the more pretty than for the That's buildings number terms they invest Life X anything the on-campus least, But our months, broader So past fit mid-X. the criteria there high-quality because the building Science. that anything to of to probably given the in at marketplace market. range the add? today's similar in XX a versus are find really and sources And rate building realistic product, rate. are off-campus. looking in basis in you'd tenants Teekay cap (ph), building who in a by the But in interest

Tom Klaritch

No. That's spot pretty much right on.

Juan Sanabria

mechanics perspective interplayer, And us were the get assumed bridge could then FFO that think trying acquisition, to modeling from to just low a yield. have if through Cambridge how NOI help to just yield, on you at the to it FFO think you talked a the for or to West but an to what's about And from perspective.

Peter Scott

opposed it's Yeah. and disclose to Hey, unique to a But good given stabilized Juan, it's an unique year combination Pete of appropriate, of we a bit covered we FFO this a research as side properties here. question an portfolio, recognize yield FFO the investors And it's rate. nature so thought yourselves cap is X was better could most the on land, which impact. and yield understand and the

we more to a $XXX it which details land, million from which of plus SPINELLI. rates, $XXX purchase transaction. currently covered perspective, assets so XXX% X GAAP blended price acquired which we do is Avenue you for a of lease our NOI $XXX That refer Concord asset GAAP, as stabilize provides X all NOI X% and the we total investor and the Avenue year as The asset Plus categorized totals FAWCETT, That's together approximately million. The Campus, price, cap XX with X CONCORD, Of If around across of for to on those. years. stabilized is $XXX million. Raytheon X an Campus, of million. each and purchase X XX categorize XXX Now, deck, assets Concord the page the yield

assemble of weighted X%. So which on working million, this X design team. interest covered assets, the And we external capitalize these That's all and we've is the about time. rate. balance we're internal at to well around ago effort we months started our and towards of campus this assets increase current call will we planning our land, over ultimate of underway $XXX and since already on those -- debt we're portfolio, approximately which entitlement design average

So those on already. we're capitalizing interest

to a to cap, That's the add that's at I you turn with that's $XXX million capitalized want around Maybe make a Tom anything if X. afford million add a around all that. to to you all So to over know lot, if and pieces. but I'll I you that interest X% $XXX up, sure blends want at have X

Tom Herzog

only producing income the not I'll we're we've thrown covered as confusion income call. off just assets doubling ends of the If make in accordance no so on from But to there's the reduces is the required if that's leases and of as do. play up being comment called up those a what's ancillary treated income. basis interest is recorded got rental the that also land The there's with GAAP, income, cap

to want any probably but just have didn't know confusion You that, that. on I

Juan Sanabria

guys. you, Thank

Tom Herzog

Thank you.

Operator

Yulico ahead. go Nick The of Scotiabank. question from next is Please

Nick Yulico

Thanks.

opportunity out today? terms X the that mean, to actually about of of the But, terms are of figure are since a development think that future guys development have about where in guess with trying page. those X% understand rents I the to guys the being we gave going of so how Alewife, even range here Vantage you much. yield, development underwriting thinking know sounds and like you on new you shaking I there, recent you about store you in I of X% do So Alewife how developments underwriting growing Park talked Cambridge are be recent Discovery development to in yields over rents kind some is just it should

Scott Brinker

Hey, here. Nick. Scott

we that a more expensive announced, in dramatically foot it And build. but on on a is land foot signed today, simple Cambridge is Nexus. building distance your correct will something? the year. exactly like, costs still that getting benefiting location. It in mind. Class walking you $XXXX prices. more momentum. so say we'll Xs is our is today, we're earlier return Francisco the to a XXs. return then leasing you we We note a in if able South be within our somewhere site. we're build math on return. that today a mid-Xs in And unclear simple looks like in the there. bit is was project, particularly high range. that similar of mid But low-to-mid we'll well. in rents Vantage return to that It our on at West leases X keep We impact one think end all-in so, were how wanted We're the up cost then math to because probably San last all-in that a $XXXX that low land that I to costs. Tom, per it's announced in were add $XXXX as I And having it's from a this solid obviously little night, given per And on Not will for range. the underwriting that. per But that quite just for to really We'll be of Cambridge, a costs, that range foot The projecting looks for decent than better mid-Xs $XXXX on our project average, Obviously, West basis costs the land estimate foot And basis obviously, much for $XX bit given A Phase per our do land

Tom Herzog

Yeah.

Nick Yulico

Thanks. Great. Okay.

South potential densification could by Just that be can think the city? addressed on up-zoning one on San provide there you you question when Any update Francisco. other

Scott Brinker

- you Scott jump Bohn, want A to Yes. in?

Scott Bohn

is name working current plan Scott A my is to complete general the think Sure, target - Bohn. update, year and I that. mid city The next is the through

Nick Yulico

a -- to is potential the the about that -- it's FAR? of process And -- is thought in is Is there before you've similar right? talked doubling that it terms what a of

Scott Bohn

It where project location depends and yes. each Potentially, located. is on individual

the the a transit, little look from train further get think [Indiscernible] bearable you I station at our As yet bit, away and projects. we decrease but

to those fall in expect We range. that

Nick Yulico

everyone. Thanks great. Okay,

Tom Herzog

market of supply foot just do $XXXX first it in new important it it's worthwhile South about Cambridge, new question, trying some is. we've they pricing, going achieve when of talked Just higher sub-markets to market something a question West the which I to rents, value spread, to type supply in Francisco. best far of the they mentioned today markets of a today, like land the in in if said bought on Francisco, the earnings a of to land our XX% that's market, foot really terms two not you've held, in points to high-quality question. find down the XXX are the quite cost down. I'm it make locations some If land we're assets. a $XXX think these everybody think basis one our a come. for you and And how with and and those in spread an the $XX Brinker more the we ecosystems our the how somebody of if a that, If fair that for to in but to get math that to land leasing, be we years than the and quarter that going the to are basis a that share $XXXX that points increase returns land, XXX we'll Cambridge, far midst on asked, accretion about Do XXX of outcome us be mid-Xs. plus substantial. probably obviously the up where are XX% We've to and world, having And think as profitable money? San the allow in accretion at us capital. in will a on the the develop energy, was West what to bit probably inclusive hottest on to than best the is be cap that you if up got follow spreads solid land rents, in more But to give returns you producing something that Those in is locked position the in aware to years Brinker greatest -- I that's transaction repeat of back could some was Because markets think high-quality San think the seen if would solid as is do speak bringing more XXX in little context. road, in the do

scratch from starting impossible would an we're have potential time replicating that if absolute think we I outcome.

think a I it's So raised. that strategic point you've very

Nick Yulico

I appreciate Tom.

Tom Herzog

Yeah. Thanks, Nick.

Operator

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

Steve Sakwa

just say to but next have realized of the been over over you get next years? a it do year that Science -leased say into Life on great build-to-suit the getting How talked about your metering But I dollar asked, fee, A in Thanks. X sounds think X out is we lot years. like and demand the the broad $X just thoughts wanted of versus $XX thoughts the I spec are Science. what -- the even pre on about Everybody's today. per And, Life billion. s million just Tom your questions

Tom Herzog

of a on I'm we a in that's year probably pure work the and back do higher. year of a million dozen in things not pay But on as the maybe development. rolled we're redev, we lot point. demand attention the up, to overtime -supply spending if a see ramping were doing. just We that this years, million $XXX half that at would talking range up easily that a XXX+ $XXX development, one That's about ramped we further Steve, to

got time from, look at Scott at glad that. Peter has it on can that we where that risk would is towards of to work we how So on see a that -leasing, internal being funding lot But come we appropriately. on clear work and We we pre funding look think I share we done up. ramping it in very going -- the to about that

Steve, occupancy just at think South sitting going not San Francisco realistic, forever. I won't be happen. that That to it's we're XX% at

to natural. would going you're of diminution and occupancy that be have time some So, over

profitable. have answer you vacancy, be so bit we've a you still A we would caution if -- land toward think product, comes new yes, our we that -- very Class going providing then returned So be? highly be it it some that of will profitable? if more And little much is which have, down in normal numbers, the be we'll after, it got is it locations Is the to, a is And if it still product? that to that our profitable, sought

over spend So we of how of risks, with we're the play. those through board Board We and are a those paying the of a attention things time to. couple our why that very is we're risks, this lot going last lot comfortable sound meetings, mitigate

and we're pulse timing gun a demand our our the of I'd down working what's it we've $XXX or market. thing though million. the basis supply or something far have got product development, point, drop $XXX to talking point to The or on million some million, like monthly pre million back in is as putting head going even a we're $XXX It's or other that out could it about of as $XXX year not be -leasing $XXX on and at could or million to that so thumb $XXX out on million

Steve Sakwa

curious I maybe Great, impacting moving impact how pretty piece know on labor impacting small the can are thanks. assets forward CCRC and the your labor, business, And either it a just but or expectations relates comment you what that's just the margins? of those as what I'm and for on not to costs

Scott Brinker

start with that can one, Steve. I Yeah.

for business. but not to have that we X% so to big It's sure. little enough about our talk to huge, think about of XX% exposure a I NOI,

which a have big It's thing. in business. We we think primarily the is independent concentration an Florida good living

fortunately the and So the fee most CCRC contracts driven entry of in really are are strong. the there through economics

that in as well. had business is center, strong the the for and the living, headwinds particular. independent underlying good we is on demand third definitely profit fundamental But labor the So quarter which in is

just was that a driven So we up about of if increase by almost were and look million, just we you labor. had pretty in that's significant X% sequentially, sequentially, most expenses $X

the it's side, Florida, in meaningful. but nationwide, particularly And been shortage labor then acute. it's a particularly there's Now healthcare on

last indefinitely. So we that it's don't same at changing time the see overnight, the unlikely

sure but well time. to revenue That's do So plus cases I even slowly improving, short-term we going So year we think margin, some more it's had a in that on some decline levels. admissions it will normalized we for see impact as have where a take process it to impacted reduce but to

Steve Sakwa

Great, thanks. me. for it That's

Tom Herzog

Thanks Steve.

Operator

question from is Nick next The of Citi. Please ahead. go Joseph

Nick Joseph

Thanks.

assembly or yield cash NOI deal? GAAP yield the West Cambridge the What's on yields acquisition. about for talked the You the

Scott Brinker

basis XXX each some I That's add. of can have out XXX and about the probably points asset, upon on they like to probably less it's perspective best Yeah, rents guidance individual It you. give depend will when that. GAAP back the but mark-to-market points things from a you basis

Tom Herzog

Yeah, cash it's the to in That the mid NOI. high there be share would Xs.

Scott Brinker

got doing, to space far up in some do where to you it the and glad expansion leases that be much the but at higher that entitlement is of we're we getting we're picked much, were densification released of ready doing that recognize this place work and rates. if at that interested would we're point. all And to below some that And in the market have

Nick Joseph

just you don't and Thanks. own supply in Life presentation, map is else existing is the any already competitive the at can in that what you there submarket looking then the there? through walk Science And

Scott Brinker

picture, up Concord way all good today have both a Investor relevant office it's there's but line direct page all the east bit in looking companies we that the well the well, what from we relationships that Their pretty owners. a names Route to covered as red and X of north gives and access but west that have it's lab the the it's map, of way are quite all some is the page, Avenue, the and to you side primarily X in obviously at top between there's MBTA with. flex the On which primary

possible footprint. this expand time we it's say could I'd So over

Michael Bilerman

Bilerman. it's Herzog, Hey,

back Just come versus understanding on GAAP. cash

land GAAP saying obviously, like from but investment. capitalize sounds on And a it those covered X's to then count of totality cash the perspective, So basis, you're you're $XXX in going a initial of going not plays. income the on from high million the

yields? be to is so those it until a initially, development And actually least you on at cash basis, and basically then able earn just a push higher start

Peter Scott

are be Yes, Michael. it able of Peter looked I about a neutral being all acquire push. quite as debt as If it mention about We we think perspective, we into FFO well with just think accretion next we to this was or When there. something thing year, that that as right, and funding essentially think to has a cash at that's so the here. that attractive. go one actual from we capacity, that's It's

accretion So earnings you year of next a from this is little about there into think actually as as bit year. we head

Tom Herzog

at thing. do closet net has interest all the the add this. out. -- the cap Michael, going GAAP something you this, don't income, to an take I'm I aware a listeners I GAAP always know non-cash cash, lesser mind think in And if you're keep as thing. is of cap but into into pay unusual -- interest that are tuned you It's cash

One many, deemed of under-development, interest to you while when cost have that that over determined asset. if to the you paying of is reason been it's direct interest mind the that it years, the keep expense something's is a is have in that could've expense things avoided to And you be you're many made you development. is, hadn't acquisition that that because develop that

cap [Indiscernible] throughout up interest it's a is So under and cash as treated GAAP, it item AFFO. world, ends in included being the

aren't but there that sure that, you that listeners think make that didn't catch to I want nuance. I just know

Michael Bilerman

the difference the to this again? I said, the was offset do are high and income up at Yeah, you're least $XXX borrowing some obviously, you initial lining GAAP the you that cash a paying, interest that cash And be you to between accretion. able because a of mid-Xs, where at -- a Xs, totality just to I has basis amount get But of that are from it that's fair on trying million versus getting is cash transaction. transaction our think that's to as was future development, -- and yield

Tom Herzog

It's high Xs. in the

Michael Bilerman

high them gotten Xs. So -- we've

Okay.

Tom Herzog

In the high Xs.

Michael Bilerman

capital year, should will more is pushed capital, to And then when how like expect would project? first development be capital next this start be much in large -- -- the future when outlay towards we

Tom Herzog

be to which that like for we're by City of very the to demand supply able Cambridge. would change, because closely be that dictated and be predictions so of but you, it's making going I to and with I'd answer working entitlement, timing could

The go other shown X. provided in you we we've thing the were the map Page I'd that point other out to if that deck to is, on

Grand. Point, -- that on page, Peak see you'll Pointe Vantage see the Coal you'll You'll Oyster shore, that the see Nexus

announced strong land those we But land traction, we're on That's that's few it far development Point as which piece Sierra quite up the call. we're in enough the to very significant developing On of as to have not thank Towers. able leases, buildings to inspired at opportunity be the And Pointe lease substantial out. having that end us and and space, kick got we're to have of an space very, very that Vantage. that this up Project that going we've goodness. up on Vantage vacant going of the coming due are XXXX pick Grand, to be enormous Nexus, that a of shore

that that [Indiscernible] start of day, opportunity number advantage much when something goes So asset, fill a huge thing and likely we higher. the to was the can but densification the back much, by asset away built X.X at that out, FAR taking in

in looking as Sorrento start San at well you and -- So Diego when opportunities have we then or Mesa.

the to do in that West as have each we Sorrento have to have in we where space for these be not period point, projects the sit of Michael we're done forward, move a there time. to few to demand think, to clearer can. at able of how markets answer projects done we play will take that sequence over and the have quickly. to that of work quickly and immediacy to we I as -leasing, sooner grow look don't our to that South have that your you going have have you That's to and of particular Cambridge, pre we of other answers their those are sure we the can lot in entitlement long that's forward our I at markets. start tenants move But that get we supply, A the seeking as at we know demands out years have with meet we -- and more as looking may but we soft next the as West what clearer and be at to we demand going So some need yet, work in something the have when Francisco, Mesa, Cambridge. look in we non-tenants San have look ability tenants to out.

Michael Bilerman

And one for one helpful. Tom that's last you. Right,

In Medical within of said terms embedded about has and land and obviously of focused you transactions plays on doubles. you call the growth amount and if much significant opportunity the of singles how I is, all Company have the now been development the think and these office given Science Life opportunities.

host tea a Is of whole of for over cup still XX not out you now balancing the your the Life to about portfolio the You've are add for either years? MOBs more given Science to that potential or reasons. historically said, you is M&A have next add just case thinking much

Tom Herzog

to investing to transaction our primarily infrastructure be to etc. and to annual going MOB difficult scale, I think, hospital accretive continue transaction I it's Michael, we're obviously, have MOBs. for have by the in growth through with going relationships us reputation, our think don't growth relationship,

Science to time. naturally Life business it'll lose pace the I over think

with point, that's go something portfolio get where looks time over is think relationships, Who assured knows MOB okay there stand But of and rest doubles, look hit we our feel and businesses and significant But more -- not in what going conditions our to that could in that But are period more like do transactions, point. We time today. the as of that. doing to as cycles I we the using that a on far and side. to we're singles Never off-market at future. all landscape your the see where what looks these even aggressive do we very attractive this our say may could be like, never. change you

Michael Bilerman

system also the relationships, if can look best just you go expand for than presented capital So your relationships side. opportunity, the rather can you some relationships with your of health partner, because sort structure capital Right, on the right? were

-- business attracted the appetite to want views So I your like the now highly if something to on you spectrum to juncture. maybe just understand go MOB trying Science where I sound guess a was could of work. right doesn't perspective be wanting Life are out how big make to to you'd I'm MOB given at and something the is. the push this just aggressive available, of on

and you partners the can right the that. If like right structure get things and

Tom Herzog

businesses us I Life go say our always much, to But but today's in with that MOBs. smaller and big front X slow, business. X then opportunity continue growth never think never, attractive at it's ignore economics be so to and Science obviously in plays back better steady really the point some for environment the because much nice and the of have accretive one in can't optionality could then I that,

conditions and be change. market through pivot logo to As as growth some have in able to the cycles each

So at right seeing in but can it some point future, now. happen that the see you we're not

Michael Bilerman

you're So there's a chance. saying

day. great Okay. Have a

Tom Herzog

Your chance in take is time obvious a chance, I a Mike. that's but off time, at think there point wouldn't saying this a I'm long is there's

Michael Bilerman

one. good a Have right. All

Tom Herzog

Thanks. Alright.

Operator

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

Jordan Sadler

are Life Thank up a you Science? parse wanted angle. you question, relative of follow I'm a hurdles and to at but morning out on good the looking versus return curious. Michael's returns for bit little or we're And Could different you MOBs there. I

Tom Herzog

Brinker, do totally start? want we can. to Yes, you

Scott Brinker

average, across portfolio point just growth where higher a time but on spend average type probably of as exact lower, cap NOI. lot we've be a Could high-quality, little the we Obviously, decade some to on a percent Yeah. total MOB Today decent of initial Jordan. the XXX that's will coming billings CapEX is MOBs or yield. in CapEx bit rate, XX for on the in that more be a drag there CapEX so general, and basis range, There more. -- X.X percentage probably XX% higher or at had a question,

X.X% Science, if today's it portfolio. So we to you're the of which Life fit compare our straightforward. market be the to strategy range high-quality that example to in when tend on in. escalators depending just a in within forecast at business as building pretty you're an business, X% And economics starting are market, that in and The that would contractual

in mark-to-market the at see, closer XX% $XXX+ Diego a X% range. course in dramatic which They range. the today escalation that being San a high-end, capex. past triple the what That's is would of lower at over over and across the rents. to are up escalator In the Francisco the past has base. to is core more charged exactly which XX% will San the XX is decade, really growth Boston our rate, arguably higher, in obviously on our what Life least portfolio returns is that XX%, initial South lower months with cap The theory be million contractual markets, the the X obviously in you has helped Science just lead

a capture that's upside roll lot next as to the decade or over leases So so. of

market start forever in to that, it's We realistic out come all great lower great strong combine XX% and we growth to at locations, think forever. of great +XX% in that higher But with it's XX% Science, you think at grow you a really yield Science, obviously probably we grow Science rents not rate, a think business. team to we're IRR that have position. going Life rents but to not are So you assuming Life a that Life in much probably but a today higher realistically,

we equal. the like are MOBs still think do created we that of So business, stability all MOB don't but

portfolio. we So the when compare increasingly put what play the we're is pretty companies, And I returns in something -- out about exactly that the that from will that business. into see that think that careful when you you different

Jordan Sadler

year over what it we MOBs, a in you of Can escalation Science? is give sort X you I in rent XX terms a referenced. think period know you us Life what to like as of underwriting sense are of in

Scott Brinker

There a decade, capital than couple all for of that last it XX% X% IPOs. in it's X the going XXXX over even And XX-year across estate basis, it's more the be is the so looks to been And past XXXX. more annualized higher leads the X% the that's stronger years. like venture range year to and Over is in Obviously, been real capital markets, to history. that fair strong of the an to that about time, Company, XXX At varies a square demand XXXX It was growth. same space. get amount dollars weigh of of new equally obviously. could and supply escalation into translates demand, is the of feet charts. the so by off IPO thought average, that our in the rent but potentially math is every additional coming marketplace, on on raised, million We VC

So really have a feet is success amount meet And that needed Obviously, real space. they'll pretty continues the growing VCs another over into of really that's And raising all on candidate, clinical $XXX to estate that that fund the of years, top science, that had, million success spot will average, X demand. business. next their of have the the equally that's significant the enormous on NIH funding thousand will given start turning funds, less, first the in obviously to the NIH a the that's our next of sometimes the Tom, grow. XX next to pipeline wave growth that's sweet will an anything basic which these but raise it capital of some for XX really be funding, round which more, next is [Indiscernible]?

Tom Herzog

falling markets far a to and of funding time, the the which of better do think XX%, last locations. obviously as driving last lab X things partnership covered XX% the X add, very a VC, Life at lot up I'd as -- couple in SEO years, during you seen these growth to closely we've most when following Science, vacancy helps in space big years, on drive and the the X -- supply decade. of But funding, I this NIH, is work. it's obviously you've it's practically a of been look X quadrupled last We've the

that not has range. seen the X% in growth you've rent surprised that been X% So to CAGR

rise some You've land pressure these own right. the labor with costs, land which the at in that and are price it seen unless put rapidly already you and own you will along developed spreads construction on

is this that great that probably our think do massive within is we land opportunity holding. this So

that's add-on Brinker think to that comments made an probably that the I important. So just are

Jordan Sadler

lastly Tom. then to follow-up, And

up Cambridge in it, like have other incrementally in still But Could of launching development? maybe even a or of submarket. $XX billion, San you capacity dollars adding Science to you like and it places frame I While years. West year Life did in of sort XX upwards Diego a you're starting see billion maybe interested sounds XX yourselves

Tom Herzog

and to treatments, etc., to in talent, able where hard is that that continue demand growth a within that used drugs diseases a have for die big especially going curing from, continued are to It's And to that live scientific to the grow are then hottest simply be a There's believe If very Jordan, measure. demand new not billion molecule -- then like biotech biotech almost take dilution, there's massive dollars some certainly could energy be on companies, -- just fueling. continue technologies, and CRISPR leap large to cancer make next in over what -- fair we to year point. it It's It's bunch not after. seeing whole time. this that and place over all these the like you're and create these located. going took and vaccines but organism see and the opportunity. place going bump there's to like we and demand year DC, We would -- markets a going up or the the or space. of pandemic the one a with look with start-ups time, we -- year-over-year lot at of just to we're these the it year, and us a there's

close so get eye get on certainly over it maybe else time, and -- bigger because we we our sure will think demand, get possibility. keep we're but that don't Now there's skis, supply that and could make everything I funding and to bigger? probably to over [Indiscernible] an it going

Jordan Sadler

Thank you.

Tom Herzog

you. Thank Yeah.

Operator

Barclays. Please is question Steven from next ahead. Valiquette The go of

Steven Valiquette

Great. everybody. Thanks. Hello

Tom Herzog

Hey Steve.

Steven Valiquette

in Life in And I Fran Talking traditional with within Science the of XXs. even I'm person portfolio about given still Life just focus your Science, weren't measurable they on like characteristics. you your measurable we office in major space lease hear do markets you just the the range only guess you or in Science just census about of here physical about in know much question Life high REITS. Boston. that a which that strong when employees occupancy I sensors supply percent share on office across really - just strength the curious do points not and San Do occupancy demand the XX% have XX%, data any can on because talked

Scott Brinker

to Yeah. question, occupancy? I Steve, talking about, you're understand just versus Yeah. make the sure utilization

Steven Valiquette

Exactly.

Scott Brinker

the Diego our and to more reasons today back the in office. the Boston we're tenants But middle, of by is back change. doing pretty probably more home. than that's the I back-office in that's the scientists probably that open, to throughout, Yes, [Indiscernible] I in open. come higher significantly. the so on-site we're starting at more end market. office starting so we're the And XX% Most but working same, with here San to San that see mean On working more Obviously, we're from back is it's because been on-site know that. amenity lower back to centers are have ramping of the of good. is still the more dining there's there, happen. end, politics with are somewhere the it Francisco probably average of the range. varies today, up

Steven Valiquette

their million bank thinking follow-up, a One has public converting quick just plus of Company feet, I If When attempts from well. largest your Got about X current just growth. bank. traditional one talked with been about future REIT as but temperature just can it it, already, Science. X on curious on million lot okay. call bank land I'm when of real space Science their of out positive specifically hear office about just know with the relay million we highlighting other obviously the this latest competitors on at office on REIT traditional competition land your total office thoughts Life XX also land dedicated to that Life Thanks. traditional and just latest to

Tom Herzog

biotechs want believe for landlords Certainly some more main Steven, that main it can't XX%, won't I locations occupancy everything to XX% at We grow competition. competition with have Science clusters, generally about why just ever, be going have the obviously competition will experience Life you there and that. certainly and be there repeat could don't that be experience. the the deep from to that the and that be said for deep rates it's there'll EMD and I set

product the experienced than far to fair comes of who create we was that So businesses the biotech share provide then type deliveries it companies growing the business. able want areas their within the we're build are that the down to the think purpose-built have to biotech to and that that get of startups that in that energy purpose-built -- campuses going more and our the

there So I'm some be will will. competition, there not new discounting that

environment. in we will able well XX% Of in a occupancy be competition, course be if you well-suited that market but have we're there think do to to

Steven Valiquette

right. Thanks. All Okay.

Tom Herzog

Steve. Thanks,

Operator

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

Michael Carroll

-- given lifelines doesn't over to -- the you've now time? focused the find mainly clusters? something -- given are markets. kind some been they know markets. of largest stronger think to some new backdrop sense I cluster given But make and of starting Is to X Tom, It the right in I these at look on look the attractive that maybe at the difficulty trends long land the

Tom Herzog

it makes sense think somebody tons I do. for else go to of

the a we major high three entry because if massive that markets, I too barrier we looking would could another to didn't think scrape XX basis I imagine have be competitive we'd on the a at such of maybe things takes that different position But a critical that mass venture create long vibrant to capital, ecosystem land, yield. about. time to cluster talked it the has we've the points of all the scientists, of

the sit So not that's we're make, now, right quite but that from I'm to play where we others will. sure seeking

Michael Carroll

in that looking acquisition could Okay. you on have off I land we're small and market. starting banking you Diego that to run When San in project? San other a you're guess talk your Then guess start when can low today. about does of there is I announced, development I sites at? that, that And expire? lease Because Diego. a I know then think land you little strategy your you

Scott Brinker

add Yeah. anything. Mike then ask I Dorris, jump might to happy to and in I'm you

Mike Dorris

period Sure. realistically, the to Scott. acquisition that with lot next respect Thanks, to a through. design Yes, permitting you announced, spend got year just and going we [Indiscernible] of [Indiscernible]

of So certainly do looking it's probably mid-XX start. type else? a We're more Scott, terms longer of to opportunities continue. land And [Indiscernible]. you for bank refill that have in of term, platform anything

Scott Brinker

San that Torrey just I'll our in is Pines, Sorrento concentrated Maybe reinforce in Diego in footprint really Mesa.

existing can -leased feet success cases for construction. key started on much development already our that's almost even of targets in sort footprint. are We've too had the we those in before So we some pre where build XXX,XXX

San team to So of we for Diego. growth the Mike find at hard his try have leg in to been next and work

doing So has seeing in announced more market excessively first the just strong that really we step, hopefully that which demand. is this one yesterday in been,

Michael Carroll

the acquisition from just put development can then a that and project on ground-up how scrape big Diego of one and that a you me real quick is And last site? recent on San a

Scott Brinker

that redeveloped. and one is Yeah, scraped

in mature time some the but around quarters. entitlements, XXXX to seek we the a leases campus up and type probably that coming material being fairly As site By and ends that talk event. Mike probably have other about said, we're in more that that's a doing hopefully things we'll it

Michael Carroll

you. Thank great. Okay,

Tom Herzog

Mike. Thanks,

Operator

next is of question ahead. from Bank Joshua of The America. Please Dennerlein go

Joshua Dennerlein

I you just then Life earlier and question. as Yeah, are good impact that to any hey, ask out thinking potential everyone. Science far forward it MOBs? on How the about morning want labor just issue, broaden or maybe impacting as from going the G&A on

Tom Herzog

to fair pressures. very a talking the been country look I Josh, is Certainly question. in one market Company labor that about at has every are the one. there's perspective, There Yeah. personnel inflation. decent this sized fact from imagine

business. care, into those and been more other have we've of continuum It's of on our the to sniff beds going And guarantees provide about sniff account. residents. so types have certain it so be I is affects of the probably know, that's us would beds number something hard you CCRC and CCRCs to It thinking imagine reap taken as full a to the every in working

expense on was had load, have which contract We higher a a growth, little nets on it luncheon. created us, whether empty at you are housing a It's in a that we're to few been And types to and labor money to Those that expected and go be one a Labor back real weighed for things resolve. on obviously pull and you're by a that more will for than beds average senior short-term bit the problem. same-store revisit a a you which item as, few get cause back of because dramatically. sniff But have us costs time. we we in admissions filling in longer general, to rising the no pretty short-term bed, leave making front. that did consider labor on beds assets our in period be of looking issue

can occupancy, then day. to spend has got the end So eye on, also, can't the when revenue, keep an you've at but of one NOI you spend you

what's we're is growth? to, So and look what one tracking Same-Store that to are the those has And the very things NOI carefully.

Joshua Dennerlein

prior there G&A about front. pressure you more in what you on the in And Are internally maybe would years? seeing than

Tom Herzog

across in have a you've everybody in from country. exited and there's been the had weekly listening and the an wages the we in some basis. call, on Wall reading labor yes, Well, York there's part been about various in functions from across Times pressure this New -- market this inflation And more because Street exited different the whatever, Journal,

So that's no secret.

we to to this team a have and time this that on that then lot And CCRCs. putting of applies we So in our approach fair senior we're well response and housing front. a sure appropriately making as

shrunk That's just living a for And You the we're doing gone else have pool nothing of but that the are everybody conditions. things going and unique people have cost that of and the some to we dealing we're reality dialing up has and has appropriately labor impact. what that's some are business now. pay and those forecasting. to It's our with into think issue I right business, to

Joshua Dennerlein

Got it. Thanks, Tom.

Tom Herzog

Thank Josh. you,

Operator

Street. The Please next question ahead. is Green from go John of Pawlowski

John Pawlowski

you going. Thanks had a for just keeping XX%. values were to to? time XX% increasing follow-up What the call to Tom on one land remarks frame you referring

Tom Herzog

First welcome hello -- Healthcre Healthcare to and John, and of aboard Healthpeak Wealth. all, REIT

demand the something this period I or talking probably time we're a Brinker, began, last the As that like of saw you over XX during -- think that, time months period since XX far as COVID for coming lot of land.

interest started market in of inflation to so awful that others specific, -- slowdown, and land The John. you lot saw there's just and we an it's

have up up one values could have well you where have land might gone XX%. where could over location gone particular You the another they've XX%,

the location particular So it transaction. the depends on and

John Kowalski

West entitled through? you and assemblage, entitlement question, Scott, to percentage be, do of percentage on whatever to Maybe still what would future I the parcels of risk Cambridge sites and Okay. dream are for the sector. final for welcome what need work appreciate understand already the the

Scott Brinker

but density Yeah, we'll sites. we would that of parcels, seek. today off not build any be on seeking Certainly we lab entitlements could on the the individual at

the we be plan in we'll with pretty city have to our comprehensive able scale one-off deliver ability accomplish. be the owner think So that advantageous things a undertaken the help city, wouldn't will that which are we given to be to

parcels, the can to so move addition fact around. we that square footage In different many with

that of Just the partner streets way but or a can would delivering to a objective And well. good wouldn't accomplish as an we like its Cambridge do wants or if that city multi-family a example, at move obviously, as couldn't with place somebody something simply be single-owner something the that, That's we we who's help parking, could in like City multi-family things that. do. really included,

John Kowalski

plan regulatory you your hold now? Okay. you need Are years from there to hurdles pivot might that are making any several other the breath, that

Scott Brinker

of mean, City the Nothing unusual. it's Cambridge. I

with delivering of but good we've develop an development So lot actually place you a easy of pretty quite the markets site, that's some in benefits the Once so barrier build, one nothing been actually a high for John. not this. it's of doing to while here, unusual success

Tom Herzog

the got their I'd it in labeled has thing Cambridge the as blueprint. Alewife They City of add XXXX one of John, well. is goals late Envision

assure you achieve we're help to aggressive So them goals. goals they have try those going of And own. can their I to

John Kowalski

thank your Well, for Great. you Okay. time.

Tom Herzog

Thank you.

Operator

question ahead. next Mike go from The is Please of JP Moira Morgan.

Mike Mueller

had real a you you are Yeah. quick with to think lease, once what you go, mentioned building get but Hi, just can Cambridge How on, one Raytheon I land estate X guess, West have projects others? I about covered place. that year ready quickly the to X the

Scott Brinker

fastest to Yes, lease remaining there the time coincides start more year parcels actually anywhere? timeline which some two maturities with the the entitlement that's is possible well, to where construction in probably, range one periods pretty

Mike Mueller

years is And outside?. the X

Scott Brinker

this high depending plus is Raytheon be decade then the come leases the I that No, we if lease That focused mean, view you're as could and it date. outside at end, on on would would opportunity so a quicker. outstanding timing driving demand, the yes, supply just

Mike Mueller

Yeah, that's what I was looking for.

it. Okay. That Thank was you.

Tom Herzog

Thanks

Operator

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

Tom Herzog

I think call at look thank be many forward to and meeting We Also, Well, Kate, NAREIT we'll appreciate Okay. your for we that. you our you continued with thanks joining today. and interest. of for as always, everybody

So seasons earnings will good your talk you Bye of rest the luck soon. with bye. to and we

Operator

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

You disconnect. w may no

Healthpeak Properties (DOC) 3 Nov 212021 Q3 Earnings call transcript