Healthpeak Properties (DOC) 28 Apr 232023 Q1 Earnings call transcript

Company Profile

Participants

Andrew Johns	Senior Vice President, Investor Relations
Scott Brinker	President and Chief Executive Officer
Peter Scott	Chief Financial Officer
Scott Bohn	Chief Development Officer
Tom Klaritch	Chief Operating Officer
Michael Carrol	RBC Capital Markets
Nick Yulico	Scotiabank
Vikram Malhotra	Mizuho
Michael Griffin	Citi
Steve Valiquette	Barclays
Connor Siversky	Wells Fargo Securities
Ronald Kamdem	Morgan Stanley
Tayo Okusanya	Credit Suisse
John Pawlowski	Green Street
Mike Mueller	JPMorgan
Josh Dennerlein	BOA

Call transcript

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Operator

Good morning, and welcome to the Healthpeak Properties, Inc.

First Quarter Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Andrew Johns, Senior Vice President, Investor Relations. ahead. go Please

Andrew Johns

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

the reasonable statements from our Although are cause actual and believe expectations differ any may in we materially to forward-looking uncertainties based that on subject assumptions, are forward-looking expectations. results our to risks reflected statements

undertake update discussion In The risks and an the financial our forward-looking yesterday, detailed and measures release X-K is filings non-GAAP of our on exhibit with will GAAP healthpeak.com. with risk non-GAAP with in financial we most the to A be this the in We SEC. accordance a statements. directly Certain comparable not discussed also available do exhibit SEC press of any call. at the to measures factors is website duty all requirements. have G our reconciled measures included in on furnished Reg

Chief over I Scott will call the Brinker. turn President to Executive Officer, and our

Scott Brinker

morning, Thanks, Andrew. earnings and quarter first Good call. Healthpeak's to welcome

today remarks Bohn, will are Scott our and senior CFO; The CDO. our available prepared me for Q&A. be for Pete Scott, Joining team

strong place full Starting moved by we've a earnings by up week, and in systems the made call this almost put our streamlined possible cadence our we quarter, processes.

the real activities. estate Over the team this on value-add weeks of year, the an course four gives calendar focus extra three to to

and start a year guidance to leverage. shape in in fourth X.X% strong the FFO range. is in X.Xx each AFFO solid also blending a great quarter segment, backdrop. After was our ratio growth sheet despite XX% which is strong We last to payout guidance, our out the full balance full puts XXXX market for the close increased quarter, and with year business affirmed Same-store year,

and receipts comments life an particular, produce cash for best-in-sector all-time entry challenging fee the first strongly CCRCs of the by science. quality want to comps, at to the with continues a on basis, few evermore despite in a driven quarter. platform. I growth portfolio performing Medical Outpatient on high make

I've of For life estate. the favorable I've XX managed asset falls of nearly believe and say secular on barriers and health years, firsthand the margins cash an pluses past of submarkets, the to invested that I growth the operating every end and each care science of the variation minuses high competitive flow continuum. impact real on and of seen demand, based over entry in incumbents, innovation, time. advantage core net

away. to no time, acknowledge cycles, by business aging and aren't that driven going the business the things improved the a ourselves the past position years, XX operating months, At more we growth population same in the fact, accordingly. we despite health than runs It's slow, desire fully the and in in the material starts past exuberance few market XX No in for would any acquisitions that we months. correctly development new in underwrote

and during is maturities Very and next reality every few succeed candidate drug didn't renewals, year lease this boom. compromise due early raise make portfolio our The of We XX companies these years none some up it around that given front. won't realities. don't us. built is biotechs this not to quality on asset that proactive cash a to surprise will are the of a we and It's

a examples. share It's sublease. Scott space tenants whether when recent through of another direct example, or Bohn is lease often growing done powered proactively, our tenant robust that contracts, aspect can in strategy For will portfolio our asset one cluster by our management. take

roll. amount a leases. to we we near-term continue in see higher One, of For several availability, reasons, the sign we lease And shareholders. is Two, huge have relatively potential opportunity a sentiment for and do Healthpeak pullback when current small Three, have across bank we with low very foreseeable land entitlements. we opportunities future. delayed lease-up big costs in a borrowing the strong new be development on four, years. create starts have coming will sector And and progress the acquisition will the for

When great to at were our Shore the we were shareholders, to the Recall, in fundamentals Cove saying, and shape they without will, patient come out right, generated with inevitably huge be capitalize. market we opportunities turn, goes expect downturns. the perhaps then best returns until for conditions land which but of

Director Now of a Board few updates.

our First, Board elected a a senior of public capital an Kathy and at Heitman, real and markets and our chairperson. brings executive member independent congratulations an Kathy new Sandstrom been wealth estate real since was expertise. on at being estate, to has private important previously XXXX governance She of investor.

Brian An enormous portfolio. dramatically years our his independent and and an a valued improved successful highly Brian me remain will the Chairman, for thank we Company to personally. of Cartwright adviser five to as member you while Board

of Jim And Board. our to growth will I CEO would welcome record experience like a Connor plan. Duke of medical and development addition in of formally the external Realty, has to to as creating outpatient contribute that execution to track strategic internal and Jim our strong

received the G pleased possible recent proxy our in from and that ISS quality statement. S scores the are for the we we report Finally, to highest the E,

turn I'll fundamentals. for commentary it life Scott on Bohn to science

Scott Bohn

Thanks, Scott.

few dive important I in, want touch Before I topics. to a on

of and tenants landlords with now the and didn't choice like tenant With years, to with same are of have selecting doing what or real availability demand many the available. in minimal recent had was landlords. much analyze estate settle partners thoughtfully assets luxury always the First, record tenants credit,

the capture one pathways the to a well from demand is more as have to positioned the that in its that exceptionally capability credibility to tenants. has tenants as these well Today, within portfolio. ability Healthpeak provide growth landlord market to operating and has select ability financial the the

supply with and on pressure increased inevitably be Second, there demand, softening economics. will deal

the space large lower Healthpeak incumbents projects by quality secondary purpose-built perform like to locations However, continue in and owned submarkets will is that best with sponsorship.

solutions for provide tenants our enhancing credit estate portfolio, manage our proactively real and our relationships scale we tenant portfolio Third, leveraging our while to profile.

and months. offerings $XXX we square footprint the in XXX,XXX XX,XXX buildings. foot RevMed Healthpeak's building how past Adverum that of initially across nine in $X.X XXXX, with the square equity over two recent a raised billion square company, portfolio this simultaneously Medicines, cap very A space market over has foot Revolution backfilled a example proactively downsized to in feet million grown and four XX,XXX has taking enter is

remains has at while seen is IPO those remained continued open Finally, closed, levels, the and the strong, remains data. from with the signs biopharma VC for we've and market Public generally other good secondary sources. positive equity R&D funding market record fundraising activity

Drive re-leasing we the will We now our feet development discuss with into on cash spread Moving development our will a XX% markets. service and to off another core capping detail, delivered at the project. fully note results leasing lab financial space square quarter had leases solid successful is executed peak Pete building that the with positive placed XXX portfolio of renewals. in XXX,XXX in Health but the CambridgePark final I a

Now getting Greater into the markets, Boston. starting in

square We through have portfolio. only entire foot XX,XXX the XXXX space in rolling year-end one

remaining and Our XX% that owned where on is we only in rate space of on triple-digit vacancy recently building, rental a lease a space. activity executed a at the have a portion

to San Diego. Moving

addressed over operating is XXX% maturities. square those the Our nearly already portfolio leased. and X/X matures X.X we've square-foot next feet of XXX,XXX XX months, million Only

the marketing a visibility and designed The singular freeway. to on development have bankruptcy great project proceedings. gateway of a accommodate lease part XX following We commenced use multi-tenant of our was as a the rejection

Finally, Francisco, approximately of enjoy where dominant to market South we XX%. San share

space Class South We maturity A have San market. catering built the creates levels different assembled spaces. is This B important needs a that an brand-new to can of and holistic in in all points sizes wide match accommodate approach from portfolio square that Class X,XXX to variety no to this a of portfolio price Francisco foot tenants of small with one ecosystem tenants

XXXX Through over XXXX, existing Francisco early tenants. been Healthpeak's South XX% of leasing has with and in San

approached Healthpeak's share market the of Francisco South deep total the Additionally, importance of scale the XX% portfolio has over San and years, market. the past tenant our executed highlighting of relationships total, in leases two

in quick on the XX% priority Oyster completed on our expiration. of top Point, a recent have leasing three San Francisco. update Now we At campuses South

we improvements, need space redevelopment. vacancy it. release placed XX,XXX the that Canvas, the we'll expired foot we at at some quarter, XX-year-old to capital as This The a end building into XXXX work our has so only square of

totaled The don't the square redevelopment which go we'll and that expire XXXX, near-term early and balance expirations, feet, into time. XXX,XXX year until of late at this

are and leases. we So negotiations still a be to portion, but marketing are on early in generally active signing too

JV At derisked just with lease executed under our and and a square we which we March, between two rate feet, with of XXX,XXX at XX% those XXX,XXX strategic per deals on of totaling last have December space. foot. We've in the one active leased square square Grand and average the weighted campus redevelopment three month very late feet $XX or our leases Pointe redevelopment, XXXX over have

XX% with the tenants XX% square the bringing on an a an At our a over building tenants we portfolio LOI committed. full Vantage first have totaling Additionally, the pre-leased we portions for to recently active negotiations with executed are space, phase prospective and foot of project of remaining in have Astellas existing project, of space. full XX,XXX floor

product. be is Francisco, that pre-leased. with X.X South totaled competitive to square XXXX, feet, less which feet which is delivering our delivering of million XXX,XXX up of in in square in San purpose-built new another supply Wrapping competitive supply space There's XXXX XX% will XX% conversion

understand those critical space conversions. to XXXX and the only are resides of that unleased and It's projects XXXX in delivering two five

Nexus same these successfully competition, months continue. Healthpeak competed our expect Shore the while to projects same Lease-up over we to and leasing have continuously consistently XX past these Vantage projects. outpaced up have the XX at with and projects We the

to that, Pete With over it financial I'll cover to results. turn

Peter Scott

a have market the started Scott. year Thanks, on backdrop note. Despite challenging the we strong

our as adjusted we quarter, quarter onetime per total of the of back growth straight-line share, Per policy, write-offs. by impacted $X.XX as rent of to we share AFFO was of do adjusted FFO per For first X.X%. not FFO $X.XX FFO $X.XX this portfolio Notably, our adjusted. and as add same-store reported this

more science mark-to-market Marina same-store occupancy segment quarter rent same-store a a very building, is little lower bumps, positive X,XXX growth X.X%. free we to growth our finished vacate by adjacent rent, of and at shore. which drivers were life and user contractual offset a the the was rate XX% a non-life of known The of partially an performance. on In color solid and sciences, provide me Let with

strong office. to growth occupancy with and medical had was continues driven rate by exceed to Same-store Dallas same-store the which finished expectations. campus, our Turning XX%. of our growth great escalators of quarter City we another X.X% We and lease quarter Medical in-place an with

to growth AFFO. $XXX first strong midpoint The record. guidance increase and million us share start very of to million $XX $XX with quarter Finishing forecast what year was a and a to or million greater quarter healthy sales for full $X.XX CCRCs. in the is rep X.X%. allowed the Cash Same-store is at per year the our FFO that set NRAP than

Last item on our results. financial

share. Healthpeak our equates a we That decade. AFFO of ratio XX%, quarter, advantage. in believe of is first less This dividend Board which to the For $X.XX our a competitive segue a be payout the declared to ratio balance a lowest payout sheet, reported per than over an at to continues good

net debt Our to EBITDA X.Xx. is

$X.X liquidity of billion. We have

limited rate exposure X%. have at We floating debt

We XXXX. have no maturing bonds until

Our we is additional forecast. funded, fully sales development our pipeline in asset no have and

We stable ratings Moody's. and and retained have S&P annual have of both approximately $XXX we million earnings, from

our to Turning now XXXX guidance.

FFO are range adjusted per our of share. $X.XX We to $X.XX reaffirming as

blended And range we $X.XX to We basis share. same-store per our growth X% cash increasing by to to AFFO are our X.X%. to by are XX increasing $X.XX points $X.XX

on important some our guidance. items underlying expand me Let

expense letter interest see in same-store increase from and at Gateway, office revenue $X.XX medical to the credit and Hayden of earlier-than-anticipated benefits of recognition Boston point from due the higher growth $X.XX following lower impact the income. of interest at items: XX We the basis from million campus in combined $X.XX $X.X our $X.XX and

Our adjusted, $X.XX $X.XX the write-off positive increase I by the of is rents, a decrease FFO previously offset onetime straight-line inclusive in as mentioned.

maintaining as $X.XX, early For it's the AFFO, conservatism to while guidance by level still increase in of a able were we year.

rent straight-line not reminder, by including AFFO is a non-cash revenue recognition. As and impacted items,

Page to guidance. on before for our of Please couple to Q&A. of A detail items XX turning our refer additional supplemental quick

Therapeutics On leases, the we in rent operating been have paid full Sorrento through April.

regardless additional or the combined received of rent and for alternatives letters receive the guaranteed, expected there is not XXXX, with is of payments rents run could we credit, financial accepted through impact July, the minimal leases strategic process to their potential the additional year-to-date, with projected. as rent Although whether to are

I XX million through only Cambridge leases, feet paid $X in our the On Kodiak across our have exposure is we proactive to been we walked annual rent net ability April. square space favorable full on confident XX,XXX it in condition. Drive. at space rejected, subleasing, Due to re-lease terms. Park If the leases are last an is the our A+ the and week, are

for With Q&A. let's that, operator, the line open

Operator

Thank you.

Our question-and-answer now from Markets. BMO the will comes We begin Capital Sanabria, session. Juan first [Operator Instructions] question

Unidentified Analyst

Eric It's on Juan. for

with life sciences. starting Just

Just on in move-outs Was out the move 'XX? there remarks. any then and the XQ color of and the assumed of? aware what's guidance 'XX? question Is your other for decline a one to occupancy, I it appreciate And balance large in that the just be that beyond drove

Peter Scott

Pete the here. is that. quarter. decline at And to one lease. a that's to Juan. you first actually XX,XXX XX% Occupancy there. But to points in It's of and context, go feet our if modestly just multi-tenant our up the Please it an our XXXX kind you portfolio. from around in portfolio, I'll square occupancy basis send of did did that if into take regards put occupancy size end leases, equate We hard really within XX of decline

the Our a for did assume guidance occupancy in year XXXX. would bit decline

up in our prepared our was science X,XXX I number. lab, an that's remarks, As Marina was have we it it's And non-life expected. shore, go expected evaluating a to user, that the from hard converting vacate mentioned, in that and XX% certainly did project tenant then I and over that space we're to at adjacent and as Brisbane, mention did and to

that way regards question. probably occupancy with to that's to the So generally, answer best

Operator

ahead. RBC Next Please Capital go from Markets. Michael Carrol question with comes

Michael Carroll

the is that to did build? into its put tenant required today have it new still TI or that TI does make usable? potential they a Therapeutics development Sorrento new out Sorrento a Gateway start built already tenants asset need package How to Or big

Peter Scott

single here. three remarks, delivering it's either there. around our in bankruptcy. designed Mike, users multitenant We Pete Sorrento probably tenant that as months building a or Again, we was for that prepared when were for filed from said

to date with the may into point have additional initial we to in in we hard occupancy this time. so out the on additional at our any on comment pushed point mid had lab individual have this that And if supplemental in to to that build out regards floors TIs space It's to go XXXX time. at

But we time. prospects to I think the bit good there. It's the XXX, just right going about our location a of we off take at that look little more feel quite

at the rate should month, the get comment to hard We building which is as well. this rents today's is but So The on rental off progressing. any there TIs additional point, market. additional rents in in per low an Xs

X.X% So underwritten a good still that I think is return number. on cost the we had

Michael Carroll

not then how And happens. I had much been? just activity you've to this show how has know it. Okay. I'm sure there probably long

required assume underwritten of So been? is go to is activity is kind getting package significantly how the much there smaller. back the mean, And to fair into has rents, it to just the I building TI that

that to lab than into second-gen like a So go needs tenant outlay just more -- asset? big prebuilt a a a pretty and cash more where attractive the ground-up development

Scott Brinker

I'm not built was entirety, question and probably its but designed followed a space is being three I in that months that for ready sure user. it's fully out it occupancy from for the

bit if build end out little purpose-built up lab we have some building. the a we it's So in take But TIs way. a multi-tenanting, to time different to may

I the followed sure not So I'm second question.

Michael Carroll

Yes.

that less development prebuilt think it projects then big today for because if a they harder have to lease lab, commitment And is it's in. cash tenants I a Just that outlay. there's put there's TI to second-gen

and that interest me on correct if more there's statement. So wrong I'm

Scott Brinker

wouldn't this is see project and occupancy. many funded new for necessarily be tenant, No, requirement I ready mean, there TI a fully Oh, I for saying. you're what

Operator

Yulico comes go from question Next Please Scotiabank. Nick ahead. from

Nick Yulico

to it a to right was are that if science but an I you you list, Sorento may just on call now not for tenant a aside want on hoping life get update the watch an there keeping Kodiak, you -- tenant rents watch list, base? from we on quantify a put if of we is way eye your and level a to

Peter Scott

specific to has is quarter. pretty but on key I so. a on quarter guidance capital going it's We've I a released call. updates or that tenants overall proactive we last risk alongside takeaway of improved Scott say Adverum Bohn over tenants, that had completed. this will talked that raise our transaction And Pete. that month the about termination lease few over comment that our profile Nick, the also actually we RevMed I'm tenant Yes. not think

milestone And then tenants, and in a and yesterday one I disclosure quarter. add good, our our that well, approved they're drug say you also pretty we supplemental significant this the of thank doing think, for will note, cash and pretty have is, I balances saw as your did our to within on that top payment put their that. did tenants that, collecting Sarah, you we

think So I is improved tenant little our alongside big risk said, has that updates a the guidance bit. key like I profile takeaway our

Scott Brinker

would Scott. only three we're life we're at I but in core When The is, science it's you portfolio, look thing essentially Nick, five submarkets. also add in core markets, the essentially our

was So space myself, either all shape. seen or that Pete, portfolio physically the quickly. can two an team, a of the vacant in tenant, three you is or it's alone, vacant could tour the last our vast Scott In be I've issue today and good majority the awfully if with weeks there and

credit So, of be that a tenants. factors number to of have when evaluating there's considered

submarket and footprint. good over I aspect share. San is good south But months the sure, mean Francisco, We're to And estate We're in a lot there's in Torrey is past five U.S. the qualitative not trying few are Meso, for important real West shape. really that's our more And core news. news Pine, the across a market been every meaningful bad submarkets these Lexington. submarkets, Sorento the Cambridge have where we core compete to than

submarkets share shape market off in in each when good huge have in buildings puts We those local core us available. of that become

Nick Yulico

just Okay. And question South second on San is Francisco. then

If rents in Graphite in of in else in Anything then portfolio your own increase the overall the or some space on nexus having you in could is about portfolio feet well. sublease about overall bit lease put maybe your talk space impact is of at sublease square trends meaningful I submarket that and space a and grand. existing the you how XX,XXX Bio the market like impacting just as that little know space in sublease that market? talk

Scott Bohn

Yes, in Bohn. space been Scott an manageable it's It's in there's still at sublease certainly uptick the all levels. markets,

And space. importantly, of I space, direct no it's sub modifications, is a costs. taking at important they any additional few sublease of generally, it's in with the I not meaning things There's any facilities. the credit always so tenant think has incoming lessor are challenges, coming think the mission-critical sub face is TI also for sublease deal to landlord. lease those the sub tenant there's be a obligations a sublease event that to to going not directly think to their end the its note, typically master a termination, about, recognition the with And of of restoration allowances, the of competitive so most own and on modifications pocket risk a to out

them if our XXX,XXX X of just little the little expiration former subtenant square think the leasing you were direct to of build at feet been often Cove success. relationships I with the the tenants a ability the been oftentimes subleases make It's the with our here, It's of end square provided note to subtenants at project. historically within I at other to team feet sublease of subtenants advantageous. take downtime, is look capital million one directly very and leasing have very a the We sublease. contributors would that

leasing So, us the it the perspective. I from it for think a term. sublease you space term, opportunity from provides at can demand long look But leasing short certainly pull in an if over

Operator

Malhotra from comes Vikram ahead. go question Mizuho. Next with Please

Vikram Malhotra

and back talked So to space. step you I some just about wanted sublease

Amgen guardrails looking how segment for Q-over-Q. I'm risk a the about all Can give Amgen a not with is, to same-store us is outlined long-term trajectory to for year, view, move-outs the a you understand you've that higher but talk and profile sort specific level, power were building think then would earnings year-end given the trying talked or to about at just to about your the take with growth life just science profile of some big slightly guidance You view pieces moving the blocks if 'XX? I'm next you the of the it's going space you of into lower

Scott Brinker

capital dates it, a of sure am I Pete with start I the well couple pretty step over as has it's I'll earnings. past some Maybe markets on But challenging back, thoughts when quarters capital despite at it in business the really least occupancy see back you XX%. mean, capital-intensive. pretty to and being biotech challenged and our to I at markets, XXXX the still sector

continues be hard It'd just we and volume had be Our strong. leasing X.X% environment financing to XX% to yet, tougher And occupancy. tenants. we're for a same-store pay growth

odds our makes only market haven't changed aging good backwards. about pretty certainly business the improved of increase to So I mean, builds with us to AI, business. that itself, position success the they almost development with more health. faster desire the which on terms into science of terms population, in on cause the going isn't probably gets will, fundamentals It drug the of AI, for in come of only the if going even and improvement feel the funding that's

positive you today, team, be the locations, were it's we coast decade, buildings, mark-to-market It's place. not demand our ideal is it San South be XX% that but special Francisco the at we there's achievable. all the week. drivers, this a that the mean in here all And next leasing of when the environment to think it's fundamental So, across portfolio reasons plenty still to have I about over market capture position that an the relationships, fantastic there. should

the unique. Scott is mean, team is it's pretty our using at That's no to what building landlords and created joke. pretty got -- I market We've here tenants.

think, pretty going about and starts is next new to to So to maybe but close. I supply, think in continue of produce growth year, strong zero the you it doesn't life go terms science, the over

So the said have the next to be what actually quite supply/demand five two three ago. years from should we favorable would over years outlook

still of CCRC occupancy but business, it's what recapture. only office we then upside continues to to significant And There's the NOI XX% and it do, perform. platform to perform. continues medical at base maybe but upside, can that's that not X% to same-store of XX%, attractive X% growth for off It's so if earnings the dramatic continue it growth, generate to the Company.

So add? Pete, you'd anything

Peter Scott

The on we're the great Yes. that couple putting would office about sheet on of call. and at today. some I guidance and sure talk a bolted only do a medical CCRCs things I XXXX not is, portfolio point out you're because I'm add we'll diversified obviously, this we Vikram, But balance to question like it. asking, have

good about But we did trajectory, put been good earnings months when the the NOI project six our of trajectory for back and a story, Gateway our that will out still NOI has timing the next feel we this the way very its still growth feel But work growth growth in deck pushed three overall we about about. ago, years bit. NAREIT into little

leases Oyster this majority vast, re-leased the And put there. particular, pretty in the have Amgen, in vast We and year leases have the redevelopment. as next some majority, year, over next the into end will Point of to back Bohn mentioned, campus, then building beginning expired the of of the Scott did then then well. we regards that couple three as we one that with much buildings the And year have get we that

think of look from we And we feel to some about campus. assumptions. presentations quite we put questions a And And will still release assumptions going today, with those we will we how those future that think on of as out timing to I we the set feel sit well did full where that. happen because we good we good. that update and But what's in do get on

Vikram Malhotra

try over -- to bit of a last want a out at watch time, list Q-over-Q. which cetera, had you you got I you flavor helpful. estimated correctly, Okay. that obviously you profile think get lease-up have I when just minds the pushed development the to during remember if of out -- that's NAREIT, of more and kind But That's credit and second X% just mentioned And improved didn't to June around I quarter. the number NOI, had the schedules, thrown refined X% your et maybe had

Our you work suggests is and Would perspective, that NOI is risk not an that comment able a square feet. range today in from from you percent to to just in probably number, square been that the lower your don't higher, has ballpark? your much Is -- risk without comments -- X-ish be Q-over-Q, much lowered. want if a that share is profile but still of number your it in given footage around

Scott Brinker

I have little access report time We define we the and a bit both mean put obviously we that private. not data support everybody your to it. things and into and have public appreciate I Vikram, all Yes. would differently.

the to capital raising specifics, a think weeks lot definitely doing that don't companies but I Pete's the good talk I over quarter-over-quarter, to an one, includes want news three two with past down is gone risk about So profile licensing that and has of agreements. important alone, point

company-by-company obviously, we we So than where I we're mean we two it's a and even today feel would sit weeks ago. have analysis that doing, better

Operator

Citi. Griffin Please with ahead. Next from question go Michael comes

Michael Griffin

from built wrong, maybe about structurally there one I back you Maybe tenant initially I'm multi-tenanting if correct building But like to the with going anything packages. use. for talked it potential the precludes multi-tenant different the can the single mean you for me floors used TI what is set Sorento up or you here? But building, was being development, from differently

Scott Bohn

say -- or No, the shell Scott designed Michael, to I core of building multi-tenant. be was would certainly Bohn. The single it's

to you're very previous those able So building structure built go the a tenant, but the for itself multi-tenant and the and multi-tenant can TIs flex we're single deal, to easily.

Michael Griffin

the you like Okay. have to some misinterpreting competitive. XXXX, think I to back this online in I XXX,XXX CBD, seems the really lift Scott, Cool. a they that than these how a going that or just bit. feet might any be mean is you a prepared space. think, just mayors proposing proposals, the if look down sense probably like about sense tough And the then your like square under mentioned office converted in conversion hood the I market stuff need to the that's do I big supply towers it's headline to number remarks, Francisco how buildings coming San market when of be mean in to Peninsula, like supply, lab but

Scott Bohn

in the of city Sorry, San Michael, Francisco.

Michael Griffin

at that I the CBD life for it market when Francisco, San Peninsula. both in you a and the accounts presume for report look science supply

there Now a the imagine number but effectively into if the probably submarket like and in often supply. will same wall come type they'd Life different, Science, reports, in whole are It but am San how probably are you be MSA name Francisco I up. broker lumped

Scott Bohn

mean, going XXX%. to larger Yes, footprint. that all always to I our be competitive and the is think are see headline of numbers I you'll much not

to When We for there's mean, San on five at what So that's mentioned, down submarkets, submarkets, inversions and competitive sciences, those overly to you focus. least mentioned Scott AS our we're truly is challenging look Francisco CBD, mayor really products the at our example, at focused I where we that. there. talk look within are in not really life

truly So, competitive. something as on those I look that's radar, our at don't we

Michael Griffin

what raised looks solid guidance better that it forget of I of about kind one, is quick MOBs. sneak Dallas. the almost office are results. people was could a And on like Med feel are we be medical year, like And severe business on your could operating we of in than that a and I rest but place produce guidance then steady potentially. state the to anticipated. increase, get City another my if a really expectations I opinion downturn good it's sometimes, do mean strength do results if It see throughout really maybe be the

Peter Scott

do Klaritch to weeks XX But That agree in the I'll Dallas segment now. Tom to is X.X about performing forward that in. we with regards campus Pete generally points. guidance you Yes. from we here, quarter open with exceed our you. continues segment well. and numbers. for Griff, then is Medical this by chime our we City let Obviously, maybe certainly It's expectations look to increased basis with our touring same-store and But

We like in a little keep to as well. bit tank the

MOBs, increase look, in progresses have as to occasions. on multiple been guidance back able you year and go If the historically we

we where good MCD now. about right with the bit So volatility a is from that component. today ad little feel we rent of sit There

within the So, more don't overall? going bit Tom, little the beginning to little conservative But what be a the you're Klaritch, we're give segment of you for sense at seeing year. a why

Tom Klaritch

think escalators and look, driven had We X.X%. a continue are that renewals to that Obviously, above on but you mark-to-market X%, well. where of doing but for CPI that leases We X% you here lot average see number well, number our will to at it's escalators quarter I we always perform range, of escalators good fluctuate are averaging a if tend bulk our about X% they're fixed then that to by it. that is X.X%. -- are the have in below mark-to-market of kind that there, a

lot it had than more it. below quarter, this above And we a

well out sometimes for above worked to us. And back parking that continues So get to pre-pandemic levels. and

saw we from bit bump that. a of So a little

metrics for it of City been, to most as have room major And perform the might some the overall, have Pete positive. been Medical there, too. said, continues has us way So we

Operator

Valiquette from Next Barclays. go Steve ahead. Please with question comes

Steve Valiquette

topics here Two quickly.

development their systems wanted the it's I just just one a Has talked first, that quarter, you does whether to development soon that? answer year-to-date of opportunities? health further make And or On for but it pipeline just a meds, just Or on a XXXX. is trend, the kind any on really for invigorated maybe major discussions about about ask to overall seeing follow-up. know this, on in evolution I more performance that portfolio and ask with too that led resurgence I'll operating in then have

Tom Klaritch

Yes, in this is Tom. we're Okay. Certainly, discussions.

having development that into We $X.X a they're in about pipeline. major invest every program. excellent their number have top announced capital up, billion to results of HCA going with the being almost HCA portfolio. on buildings There's metric of just in

do we great systems UHS they expand results. see space. office medical mentioned you for health results. med reported and would tenant certainly as great need and reported So towers the And that more the services,

see in development be So that costs we'd one for stabilizing continues on we good down opportunities. some. to encouraged expect seem by some year, thing instances coming to is, certainly the And even were

in We going down to were in able XX% out be to some bought of that and case, in escalators about actually cost assumed Georgia, development we remove Savanna that there. our came got we our have and and the lower than were base

better out project the basis we return hopefully, And least finish get the improves up, XX that as it. even So it by little at a return points. of can we project on

Steve Valiquette

It That's Quick obviously the know in different growth but year, the SS unchanged. explains full FFO here. on it question but range? NOI basis a a moving clear. that the full remaining wasn't FFO topic for is cash between Pete a the Or NOI within guidance outlook, guidance still increase growth year helpful. is parts a delta Great. that Okay. year for variable guidance same-store the XX two? specific with lot Was in there in increase I the pre-existing the just the of absorbed point there's

Peter Scott

straight-line and you blended points up by points one of Yes. is drivers our it by guidance that our then not We same-store MOBs, AFFO did picking glad Good AFFO basis of question, increase And write-offs. basis impacted guidance overall XX the I'm and XX up, within brought rent is our for those $X.XX. Steve. same-store.

as $X.XX didn't and just did to point reaffirmed adjusted, those FFO to we FFO adjusted we So reason at we AFFO. that impacts is as this because into have impact the have take

reason the So that. for that's really

Operator

Siversky go Connor Fargo comes question ahead. Securities. with from Wells Please Next

Connor Siversky

more and that a such favorable return year, it perhaps rates some projects. was development could profile call, mentioned you earnings in movements Last at point versus acquisitions that see were this cap

you the the price quarter, first feel aggressive mean, more share of activity balance in through consideration you I movement an of posture XXXX? in then the So taking and enough seeing are muted would coming it caps of off during comfortable that since

Scott Brinker

here, say cost down not starting come certain our wouldn't at Tom changed. are mention in aggressive stabilize, least hasn't I really but cases. the view maybe at development today's if not did margin to cost development on capital, that costs of

encouraging. So that's

San We in strong are San Cambridge, making in Francisco and West Diego. entitlements South on progress

sense, development at but cycle, So, be our point point, several right in view some can in cycle it of point returns the pretty make the can rough. spectacular. million at the wrong is that square be And development feet the will at the

do development we're we're to lot doing So preparing of a but not lot right of development. a now,

that especially to do the development when land that and a I real is mind in private be the rough years estate side. market, keep on bank comment timing the makes that So could important we couple that's yes, expertise have But think sense. the it in of

with it's Now really higher. LTV the terms today, on of it what in certainly quantums. financing ugly significantly portfolio is lack not liquidity, happens But level pretty interest depends banks not rates down lending, of environment. at

So I to to getting targets higher. nothing is quite It's right move wouldn't surprised a just see bit now. be return done

Well, and be done in pretty now requires I it select material to and close trade anything would a There's scale today. shouldn't say near nothing, get financing but nothing. to but impossible then,

our will. is So going need but which to opportunities, that capital cost we to it obviously, think up, we will we of lead to downturn move are optimistic this

both mean sentiment does. directions, I overshoots it always the in

we're really will way when that than worse true capital. the a just strong about. And the be complaining there and opposite is reality. The have in nothing it's is It's point sentiment a So reality. of cycle cost a the

guess the or one buildings a that feel has would in in that probably be it's, the maybe markets quite up. with We footprint, lease Healthpeak really our not some the that core a on weeks scale the time, And right like few fill like toward there'll sitting to alone my the three two that vacant last right because relationships sponsor stuff building to things is hand, or we sponsorship over acquire.

could unique next opportunities be or you two the some there over year see. So

Connor Siversky

of on seemed really TIs. TIs the though, particularly leasing I'm TIs significantly heard what going I mean, that it looks That's foot reasonable. Quickly peak on QX is science, expectation we've wondering in the pretty the forward helpful. square some up basis? Okay. numbers a start have life activity for posted come like year, from in in chatter just the

Scott Bohn

Sure, Connor.

I we've you TIs as percentage our recently, So sub-XX% think pretty rents. of a executed good of least rent low made at held point. a At we've as

is deals. You typically do have some deal not pretty smaller They're specific. tenants

get deal it's at for that of with when landlord have the to and on contribution comfortable higher You tenant asking the preserve space tenants depending cash. can the we appropriate. And credit, times

additional generic be from build-outs perspective. next sure highly any capital I to to those the And XX going that think on space to focused deal and XX making make can if we're reusable we build-out sure in a on putting over are we years that's use

because hard probably deal So exact every there. every different. it's I'll to is is give TIs different, stop space

Connor Siversky

with Well, it. we'll there. -- work leave just Got guidance I'll it the on then. guidance number number the

Operator

Next question Please comes Stanley. go from Ronald Morgan ahead. Kamdem with

Ronald Kamdem

Great.

Just a couple quick ones. of

had thinking is sort think life at, question as your earlier sort And environment. months. need next just -- the trying there's comments companies lot your in that of to trying funding of of products, sort funding, sense was the get Just six there? on nine with Going will there's the sciences to view right just the back the that funding companies funding sort to hearing the of get to we're be I still the of a a of to that

about get you Just in your thinking are mind, those gaps how guys filled? how

Peter Scott

Yes. statistics. it's Pete think the here. quarter about you if Ronald, I some of say, would first

is that our biotech raise of markets raise billion. you within The secondary have portfolio, our actually, equity were even companies. market, follow-on And you over there right that which big about for tenants of off $X XX in capital, good market capital were the for billion $X.X in volatile data a good now. can we're think about to raised can and if some you offerings certainly proceeds And readouts tenants

questions of that. capital for we the first billion actually around Fundraising venture a on is in $X lot capital Venture fundraising, was quarter. get it

$X the Now billion. so venture capital from companies, deployment number investing was that into a is perspective, at

pretty big healthy. is some perspective, M&A a So we're seeing have as bit an been there that little a into deals did getting a a been then But delay or those deal companies. pretty in of GSK still announced, a Merck invested have well. $X pause And did from deal, funds billion

those that will they war to big pretty work companies. on we has deals XX% to we've premiums put or the were think biotech to continued licensing with XXX%. think say And continue I acquisitions to pharma that in chest a

like What we obviously volatile to improve. occurring down the this healthy IPO would looking we capital a that challenging. told of is are moment companies something for been just relative It's more markets, it's despite two going are raising to see to in But are There trying forward? public. Obviously, the it at be seeing year go we'd a little ago. bit So big pace. time, was market where that or backlog at pretty a capital we've a

little So if we'd feel that that a capital like more markets rates generally, to see the forward. improve interest we does normalize be a bit, think like it should improved I volatility subside, environment and going

Ronald Kamdem

asked about, CCRCs on And know capital are, just with I moving just transaction. on helpful. get hard markets probably update don't to it's Super then Great. a where the to quick they a been it's if clearly,

you -- CCRC and but business about we talked guys what thinking the was where there, sale? potential imminent, are stand a about curious how just nothing You

Scott Brinker

outreach, done, a Yes. real continues things It's but it. as It's interim, a CCRC get In that We've that's managing. time well. anything markets to to perform strong got but the to not business, with strategic update. remotely There's capital just do big a some does here great it seen it the challenging portfolio. had opportune a really as really team portfolio, have asset smaller scale, an and It's sell no significant good partner. nothing some

to growth back up of and a strong essentially Occupancy basis. good. a recapture occupancy. we're on It's terms points have fantastic in more is still of been has levels The yet is cash XXX to basis, NOI basis upside a cash XXXX on than year-over-year. NOI NOI Performance lot we

labor low cost some XX%. It's still It's there's So about contract but sure, for pretty labor a down has pressure challenging, the bar. improved. is market still

XX%. for residents Our existing this year rate was around growth

those anniversary midyear are dates. Some of on based

all up RevPAR will is that of our not strong. XX% pretty growth, in show So but

business. unless for like we'll get we mean, managing just from It's great I we yes, it performing. for obviously Healthpeak and it. it, now. But where a they're we assets, a hold team We've the just see fit perfect XX great So good they're got price X to years not and a

Operator

Okusanya from Credit comes question Tayo Please Next ahead. go with Suisse.

Tayo Okusanya

And again, solid go to congrats to wanted I quarter. the capital allocation on a very back question.

does happy Just with kind improvement especially see one lot today, your acquisitions most cost of again, of again, of one a no But versus is capital clearly, of how don't you allocate you versus you. buyback? term, near through think least if development buyback kind options and kind redevelopment of kind how would are likely capital versus Like debt five likely of do? versus at those to do stock think about you what to more kind of to

Scott Brinker

we and returns that or terms lower of period underwrite. strongest lot given risk return time acquisition is on your and a submarket the new turnaround well, list. are so the to time Yes, comparison in development is asset to your in -- lower a know trying the the first the you're profile The than is risk in redevelopment of already development there

that's use of today. best So our capital

don't sales, stock priority sell we in but consider not to always reacts. cost buybacks in have But market It's we'd capital building and sentiment when assets between not do cleared now. obviously, time if and there certainly up right even are to once sustained That's could we to. that. a have financing those right our and a market. rates a own realistically lever cap great We overreact list was what our not don't We differential there's want high of acquisition asset and through the to and

preference to So that. our is not do

the was But the and on capital consider a and today, our mean, There's not we'd I acquisition now, earlier, we're implied urgency from year it if buyers. in makes yes, and on starting entitlements happy development. I available sit point but land but today's rates years clearly cap we time but out to consider timing and there. marketplace. that, covered in now, trading think below where that's two that a table from the the we're was something market cost our And that's ratios tie no the sense. of there be, course, of not financing But Well, I it until to could

Tayo Okusanya

Got then sciences on life you. question the follow-up a And side.

of happening the within in life to the people of thoughts or space kind of diversifying going or Any stuff. everything Just again, kind specifically, university-based I a more Carolina, possibly and even agri market North the doing more just within farmer have. given more concerns academic things overall think the like, about sciences of stuff that's new about sciences, doing life

curious the those to and any move Just returns directions, attractive in if be thoughts in kind to PEAK. there's of areas whether those would potentially

Scott Brinker

mean is a science the I business life for Yes. title. broad title the pretty

for And see at core now. Our today more least into us I business is three for sticking biopharma that, focused. biotech, markets,

to you If interesting I different far than look enough suppose it companies. be biotech for-profit could R&D, enough just if could be there future, you scale us. the that something But could think about that be

in for-profit rival that awful and own have a would systems lot R&D HCA. toured an health and There's South San our like We medical we in Francisco. recently, what here number of them building happening health systems including space nonprofit lab portfolio, of

huge strain where future. the that of depth such be. and doing don't near there'll advantage. within see three So core But like us of outside of the always see in just frankly, biotech, demand "life have could markets us things in the competitive science" the that's And bucket. I for-profit We is, terms I

Operator

Pawlowski comes Green question Street. John from Please go Next ahead. with

John Pawlowski

a supply on of follow-up amount appreciate comments and question the South coming year the year. next Scott, I online San Francisco. on have I this

how amount in meaningfully of in decline So demand rents market do from you through years, South here, two better doesn't market market reasonable supply market and worse occupancy? you get Francisco the curious, meaningfully in a think given rents head and where occupancy in next way Just San if and the the think or decline scenario in to?

Scott Bohn

to tell now. I mean Yes. right think I hard

products. our when those Two are think really XX% built our our only portfolio do Cove, I and Nexus of to of in and which we as go to our the development, five purpose you the I we our think that's come look look conversions, within going of has competitive our our when aren't Vantage well back that do, from do the as as we I with our on especially within the lot you a to at again, demand compete that mentioned, it's those, supply project, at leasing see -- from leasing you we of majority Shore portfolio. to the in that and portfolio, own now coming

those I we're than So, leases think with lot other place. higher come the able in to. tenants able to deals existing rents a may capture We of be some -- from landlords

the from So, out XXX,XXX able to square higher. a say, letting back lease so, we're keep blend XX,XXX feet, probably to in on them economics we're we're And feet end tenant, rents the to square our growing right? the which

rent. be that outperform So market and hard demand, to but certainly to we're the high it of goes on depending tell on where end exactly I think confident we'll able capture

Scott Brinker

outlier project the one got just you lease occupancy" changes to an a up. multiyear intended and obviously that's "market under feet mean I be goes Yes. development. that XXX,XXX That's

to you tenants, today's continue now. need to that's fill I terms given we demand is right the OpEx, do in to get quicker an how We're something position the in Frankly, XX,XXX obviously, feet pretty mean, think So space lot treat to that you're occupancy? I space. like lower XX,XXX market and companies, something competitive for, it's to good A market of that time important the into big. building. going what leasing perfect a have Series consideration, lot large a of for looking a of

John Pawlowski

you in Okay. is mark on the -- South what trajectory comment year? there comments on right mark-to-market think Like now? would of as you Is Could reasonable your seeing collapsing the you month Understood. this helpful. San of Francisco mark-to-market deteriorate? portfolio each ground a to what that your be fundamental are kind Any

Scott Brinker

the I going in XX% portfolio. the mean it's that only down Yes. it's and range still reason for

end because always of in San space end more essentially plus the the higher and huge included that's That's of has leases. at range of number. Amgen market, amount the South the that's on lower our been a on Francisco

will When a year mark-to-market off the so, over benefit be or the they remaining actually that burn on the next portfolio.

the it's portfolio, in But as remains XX%, to mind, that that a quarters is keep obviously, XX% to mark-to-market row mark-to-market. now So range. the row what we've And in decline. start several still XX%, had on in of through going

those a along, and portfolio relatively all It's small mark-to-market as static our quarter-to-quarter to rollover lease to around in number. going and jump in happened 'XX the And not we be just years. the a lower of said 'XX, 'XX percentage is and year-to-year. from It's

Our of a disappointed XXXX could thereafter, actually advantage. take kind timing. our and being mark-to-market when in were it out, next really There lease mark-to-markets end get competitive huge maturity profile this which biggest place we is great as is point And and people up that couldn't year a quicker. low having to a turns

John Pawlowski

vacancy went just these in Last Okay. ground are level Houston the of on of your portfolio? the the structurally and through big the for I'm the office. a demand Tom help Could so markets markets markets few and of them in me what's me high? actually quarter-over-quarter. of for in some rest mid-XX% And is understand few occupancy just stuck down market curious, one just of on supply appreciate you in versus why I kind Klaritch. terms medical XX these of different these occupancy looking range, Page I'm it. Denver, Nashville, of a

Tom Klaritch

to Houston, Typically, new because that really down that's developments Yes. that We occupancy just stabilized, a to we occupancy. close built so brought ago, feet. actually some up Pinnacle to It's XXX,XXX a it was XX%. X% Denver, not XX%, and many building in That's year was the it's a cases. we In at leased -- there. building of it in yet bought bought

just that's is it commenced some there's So not there's, because leasing there some cases. out of in yet

play. put non-stabilized Some because is of asset we a into it

And them redevelopment. we have some of

on for yet. example, to occupied two have redevelopments in Denver fully leased, that but they're working not close So are XXX% we we're

In we add able to were fact, one of square some footage. redevelopments, those

actual the building. that -- don't capacity we So, in we increase

So there's of a -- some variety of non-stabilized are reasons the for big of redevelopments. most the the But developments it. and reasons

Operator

Mike Please ahead. go from JPMorgan. comes question Next Mueller,

Mike Mueller

is how as One you a Two see being had question, life the to roster prior opposed more in trending quick a in that that as the How your of the limited. mark-to-market the guess XX%, from quarter, do can life us in tenant balance little rules sciences tech see bit you what are do you life lease follow-up more that portion sciences trending though And of year? then terms well. of even science? I you know I remind this a

Scott Brinker

I think the first. first one the -- one last

no tech. We almost have

So, low purposely stayed We market. I office mean, the digits. single it's from away

So that's an question. easy

The tenant are on asked, on mark-to-market. It first we speculate question renews chunky those which and you won't leases. depends exactly

So depending number the does it upon which does could pretty not, move materially. which or one one

going is around that to bounce quarter-to-quarter. So

or target for So we're not going to give that. projection you a specific

Operator

Next ahead. with question from comes Josh BOA. Dennerlein Please go

Josh Dennerlein

thinking about how results us guide X.X you you what guess, the… And the bump the and at on thinking the life a basis you just cash for Just X% about could to rent you an then for did the on for -- the science remind your guide the I looks is X.X% same-store year. basis. are for annual kept XQ, cadence? like it on like And typical

Peter Scott

at same-store Yes. the those It's to levels. X.X said hard by blend call. because as you're When markets, again occupancy, to our bumps increasing range. get at growth of is just same-store Pete this or the last the and repeat those rent occupancy last part three from driven we'll quarter take I'll XX% bumps year XX% it's benefit on we when in think here. our you When And about X.X most rent bumps, you the rent first, this are

majority escalators. is the So from our of growth those coming

could meaningfully you our first you full of of swing will on just perfect is With year the get the then of it. I X.X important at that to information year, the We'd range. certainly point of quarter, The don't mark-to-market, leases in that perfect in regards Sorrento are and XXXX. on the operating the the information mention. like I We guidance on clarity could We think over that. a as note, wish have have second this guys other do half it XX% give to ahead items yes, I spread that balance couple don't time. out

our we towards our of And half Adverum, to a proactive that RevMed, of a Again, and some regards incorporate as with have XX-year then benefit termination. the lease bit as company year get but little a for positive great a XX- and we us we this into year. segment, for stuff downtime, the There back guidance is as also half well. to do another get item back we be will of the the as downtime to the

the in So we still year. reaffirming early Obviously, feel X% about we're good the to X.X%.

sciences of has our numbers. as life year. of well the guidance It's first will and years. But we within quarter, within had some last of We more a again, couple we good maintain that balance the the cushion volatile been for reaffirming great today feel level about

Josh Dennerlein

color. assumptions just what science you I to end are life the great that. of same-store on that low That's get the the Okay. guide? guess follow-up one Maybe

Peter Scott

be recognition a some the little revenue of want bit to think would things, for within about that it and to different take We high termination cushion delivering be lease result be don't Yes. downtime. as development or as a I It likes know -- is items. and I order. if later still I third numbers I a It could I there at proactive right? assumptions then three into or say regards about with could of cushion those get low. some a reverse variety to to bad as everyone of month be I could talk a mentioned, -- know right? wanted projects, could some debt, in

good what's know up. to I options want to We some it that we reaffirmed. going keep to I say be don't just about I So of sort feel X.X% the X% that

Operator

from with comes Nick Please next Scotiabank. question The Yulico ahead. go

Nick Yulico

Sorrento on follow wanted operating the to I leases. just up and

fair a XXX,XXX its feet, space. think amount square of I

this reject leases, if it. like point, also I downtime were And need at that think could about some just do the the for so, would I'm of cetera? that what about guess you wondering possible then they operating just be you're how if talk space And et Sorrento thinking it, you of versus to mail all the for

Scott Brinker

in first on mean, the Nick, is Yes. bankruptcy. Company I one, the

that phone So, and it's ask in not our CEO up process. the quite few like pick involved a There's is. outlook call people and what you just their

planning going we're certain us what on don't information way. we're whether doing some creditors cases but those just clarity say to accept public to to we're on you and or So, behind committee not preview be not they're not going that. We they're speculate in expect contingency would share doors. on going to also But to the have saying some reject, that's either we yet

up what So, yes, they obviously about alternatives. doing. we'll But see end thinking we're

Nick Yulico

-- the then And Okay. reject those do repositioning if how a would mean, space, I that standpoint, re-leasing you from of they if buildings? had work some

Scott Brinker

Yes.

So it spectacular depends on directors Gateway it's part but which development, essentially campus the the of with location. same building, it's all placed

the Those range Sorrento visibility accommodate uses in cases, and Sorrento buildings other a pretty kept built submarket, cases, and Mace accessibility. think is the best that are, of a flexible. already and some in footprint big we've life we could lab Mace in all are out

game market. But different. bit and We've is big each. got we So for team a local each great that little And plan a a we in a presence fantastic building got have relationships. different

there, the of guys there's So, capturing think, it. if list Mike out and behind I demand were the those

Operator

would question-and-answer This I go session. like concludes Please our over Brinker conference turn the any closing Scott to back remarks. to ahead. for

Scott Brinker

today, have a great weekend. Thank and you for joining

Operator

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

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