National Health Investors (NHI) 7 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Colleen Schaller	Director of Investor Relations
Eric Mendelsohn	President and Chief Executive Officer
Roger Hopkins	Chief Accounting Officer
John Spaid	Executive Vice President, Finance
Kevin Pascoe	Chief Investment Officer
Chad Vanacore	Stifel, Nicolaus & Company
Jordan Sadler	KeyBanc Capital Markets
Richard Anderson	SMBC Nikko Securities, Inc.
Daniel Bernstein	Capital One Securities, Inc.

Call transcript

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Colleen Schaller

Hello, everyone. This is Colleen Schaller, Director of Investor Relations. Welcome to the National Health Investors Conference Call to review the company's results for the first quarter of 2019.

On the call with me today is Eric Mendelsohn, President and CEO; Roger Hopkins, Chief Accounting Officer; Kevin Pascoe, Chief Investment Officer; and John Spaid, Executive Vice President of Finance. The results as well as notice of the accessibility of this conference call on a listen-only basis over the Internet were released this morning before market opened in a press release that's been covered by the financial media.

me which that are are let this statements forward-looking start, call, conference not we remind any you in statements. As historical facts, risks not investors uncertainties cautions that forward-looking may NHI any and of guarantee involve are future performance. statements or as NHI's conference statements date the judgment forward-looking of of All represent this call. XX-Q various in to Factors the Exchange NHI Commission, for the made Risk and NHI's the its XX, are urged disclosures with and Investors periodic other Securities disclosed information and Form carefully review March ended by reports filed year including XXXX. www.sec.gov on Copies website on filings are of www.nhireit.com. these the available SEC's at website at or NHI's

have terms certain filed X-K in addition, measures, earnings in reconciliations call which used In which are NHI's non-GAAP tables financial been in this related release, Form provided are and of schedules, and review call are that Mendelsohn. provided to information those provided Listeners all together the in in release SEC. encouraged turn the over with now reconciliations earnings with other Eric release. I'll to

Eric Mendelsohn

you today. morning, for Good joining a Thank It's busy quarter. us everyone. first been

In acquisitions keep and some new company our been we've underperforming raising through on of working operators. accretive addition leverage low, to buildings our capital to the to growing transitioning

a leadership and been has our this time in up Fortunately, has and seen down business team before. cycles long

experience We distressed and transitioning have buildings. deep the rehabilitating

result lease-up, excited Charlotte, triple-net with with growing new fee In communities lease and working to was Nashville being reposition Let late a look incentive transitioned front to be the This end tenant, an with the In have by in Nashville. lease it working Living Communities. and to managed over of to and with past on me been quarter. of forward renovation X. finishing a upon as percentage There Since leased on what's Living renovation currently progress. been first or June local year. the the building this with being quarter with a has exciting year give that hope moving affiliates and the will completion. trending built an NOI is to an base Vitality lease transitioned you of the with has also small Indianapolis, has Vitality successfully building transition million the Regency, with added to operator Lake new the NOI-based interim building new X buildings some Capital property. into to agreement X management finalize And which X is incentive. into projected some building happening we the good an on we're We're Senior the a first them. potential the getting formerly lease quarter details towards the Senior committed as in an up The of Communities lease by to on basis second along to the Vitality. permanent actively Beginning We're We a have operator, $X East spaces upward, by plateaued end Communities' traditional Living are made reopen in the They're two. extensive NHI is Living. Senior partnered Senior upside months.

to plan flow. buildings X Chancellor had with has on successfully the Autumn flow occupancy restore operating Leaves leased prior XX% generate March expenses, its partner X has by Leaves, existing memory NHI, an enough formerly Coast, cash not operating of payment. Group to service West LaSalle of Autumn in X X currently Chancellor place great XX. in who we NHI the to buildings, NHI's communities care buildings Turning Healthcare, buildings. but success operated April, above the Chancellor The of transitioned operating a an cash to based as lease

to months. as up XXX% a take NHI could payment. lease of cash level the However, flow be In interim, the re-stabilization will building receiving XX

energized to they excited and with by the Chancellor opportunity We add grow their X to are are portfolio. buildings to

Finally, has in who to operator, of quarter They improving our has first call a a good transitioned in we a have stabilizing new Wisconsin the last the local discussed single on understanding occupancy. begun building the and market. BAKA, property

hope the transition find XX-Q, and each In will clarity. update addition these We've you we Through cash We great In investment as plan August, operators the from helpful in from we we flow our gained normal process, love activity. more building. we have models. have Transition this the thus properties the you'll disclosure the to buildings. we your occupancy you'll previous our revisit also guidance find surrounding to building, increased detailing and our In forward new We've with. two a $XXX,XXX transitioning new to received growing transitioning also to be as care tenant. buildings it look and partners, that distracting the job far a we chart, settlement these for can collected done buildings operating who resident.

back investments means around to… some our full growth the call the in future. our So We With hope accretive news repositioning are to great too not that, we turn over making will have time. I rapid distant to

Roger Hopkins

Hello, transitions in a everyone. having Eric tenant XXXX spite ago. about of moment that Eric. We're Thanks, spoke good a

and million housing. So $XXX in announced this year, purchase-leasebacks senior we've primarily far

million next previously approximately the also announced in year. We commitments are that $XXX over have funding

NHI's us lost in to accretive pipeline that fortune tenants replacing that are and our revenue continuing priority sooner. in our described investment activity previously make the Kevin later. disclosed also the from good describe investment will the Holiday has lost small revenue on have restructure we of the XX-Q. Form from focused described, provided that plus management the temporary is Eric leases Some This of have

was higher of Black-Scholes calculated was For compensation model. ago, and $X.XX non-cash to $XXX,XXX the $XXX,XXX the same and compared the $X.XX Normalized FFO first year grow ability normalized our dividend many for to straight was income $X.XX to AFFO annually primarily our the per the believe annual period rent challenges last quickly temp same our GAAP respond one for quarter quarter playbook purposes share This for the pricing year. ability of line diluted and to shareholders. to to our of indicator is been our instances and expense now. due years has increase consistent investment, quarterly AFFO first in We lower best of XXXX, of by to

lease has lease end Our to XXXX the at portfolio of was XXXX the offset the us growth and master of Holiday renegotiated XXXX, the previous in when effects unsustainable. with enabled

moment. and volume our and discussed in of deal make both This A acquisitions mix same of funds careful is total well fill the a occupancy how increased shortly, $XX.X increase lease new default which million, the revenues renovation will when for first stabilization for capital. underway. debt effects in small Our the quarter reflects XXXX, the equity straight-line new the was of escrow explain revenue. funding portfolio accomplish that that in good exclude our deploying a utilization and automatically and for renovations in also growth NHI's over helped portfolios of in construction rent by period gap to to which you John boost we capital described has investment X.X% tenant the projects, earlier. the new Eric and were a plan provide

of in growing our Our XXXX increases are portfolio. expense expense interest reflective and depreciation

Approximately the non-cash expense $XXX,XXX Our declined administrative compared XX% in XXXX. schedule. occurs general vesting due quarter of our annual compensation to and first expenses to

That the Bickford losses of we accounting new escrow realty tenant fund required, million Our to used we insurance small cost standard the to $X.X amount of write-down the is it of to disclose separately triple-net quarter revenue in which relates intent two of was and lease. facilities sell. A included expenses. taxes, other in pay first amount the in in and operating $X,XXX,XXX included

will our range, morning, $X.XX we normalized payout our be our to- payout share. dividend quarterly ratio will dividends. mid-XX% low- FFO in We to for on currently This in Moving mid-XX% the be AFFO the a normalized range. announced and outstanding range estimate per of XXXX

given currently guidance our for February remains the in XXXX unchanged. guidance in As XXXX,

mentioned diluted These is in and to range FFO share normalized a to share in Our share. include $X.XX per of equity AFFO be normalized range to share diluted per of maintaining $X.XX capital $X.XX low $X.XX to composition capital a the ongoing leverage. per new and per estimates growth of and for expected expected funding commitments our resources our new and investments, debt our align properly of the earlier

who our will with to capital We guidance adjust capital. account volume to which our now and Spaid, equity discuss of of turn as uses for I'll will and acquisitions over the John necessary completed to them. the the call debt fund property

John Spaid

you, Thank Roger.

March charge at X.X metrics debt the our annualized weighted years, ratio For average to XX, at fixed times, ended EBITDA debt X.X times. net were coverage quarter debt at maturity X.X and capital

average available weighted capacity. on debt our us NHI $XX outstanding the revolver, the quarter first quarter For X.X%. revolver March XX, the ended with $XXX with of was leaving in million cost million ended

Turning to our ATM program.

first in to facility. first quarter, sold in $XX.XX quarter-over-quarter activity, increase commissions of our the our an quarter to our were our million. have stock. the property. ATM net to After temporary common per shares before The During we sold proceeds reduce fee, of after were share of in price at $XX average shares net resulting Proceeds XXX,XXX used under ratio of reflects transitioned million our recent loss remaining debt attributable EBITDA debt. The annualized the capacity shelf EBITDA we $XXX.X approximately revolver

debt we over the to between to coming EBITDA keeping But property's our to times intend our the adjusted X as times right transitioned X the period, continue with language net additional policy expect EBITDA. we improve quarters. We financial size interim stated to annualized in investments make of to in

existing the Currently rate basis variable rate based over rates swaps XX% at in curve fixed into to before savings at call previous index quarter, has At inverted. first rate. in was at swap fixed total of recently rate to December when our charges end $XXX the two favorably $XXX of I'll in expired new swaps, to our point with The which, the turn a the the our interest LIBOR NHI of LIBOR X.XX% portfolio. of discuss quarter-end, Kevin while transactions XX-day index Pascoe interest compared XX, to interest million now credit to represents March XXXX. Turning the NHI XX, XXXX, debt quarter. In fixed entered the yield X.XX%. second through fixed lenders. million XX

Kevin Pascoe

John. Thanks

was properties times, and We X.XX EBITDARM now note coverage some the ratio that was the senior our expanded the in larger Looking also at XX-Q. end our times, I same-store housing quarter, overall X.XX having on would was for our X.XX times. portfolio the at disclosure and supplemental customers. skilled the as of as portfolio, portfolio well breakout of the coverage detail fourth

Bickford leases. lifting XX. we've the necessary for a were Living improvement. ended has the represents changes done Eric our at make revenue times and our closely EBITDARM larger trailing to and illustrated, operating Taking coverage cash to XX portfolio and some heavy for X.XX our ratio Senior continue months As December position monitor portfolio which of XX% look of

same-store remainder, properties in the a These efficiencies, nicely portfolio. new of Pennsylvania the transition to held calculation repurchased of The or two are two developments smaller of need sale. properties remaining Bickford they for project X.XX renovation flow quarter portfolio. mid-XXXX staffing portfolio Ohio finished, and development TXX schedule last in EBITDARM lease-up continue had It to a EBITDARM and the into development from as improve. this four add times also end. discussed excluded properties the to two The The we the excludes coverage additional and now total continues portfolio of quarter. As ahead includes on cash

the We to Bickford continue to optimize ways relationship. find to work with

held to improve continue over we the addition cash flow for In sale developments, time. new and and assets [indiscernible] to

during months. entry Communities ratio fee historical when Senior of EBITDARM in due quarter-over-quarter represents down with lumpiness months times But spring levels a Living the including are coverage XX normalized X.XX income, relationship on net winter to entry our basis. in fees cash This inventory XX% trailing some ratio Our for their month with was back was revenue, line the purposes.

Holiday of times. revenue, ratio our partnership Retirement times our lease Trailing EBITDARM represents coverage at with corporate our the XX of coverage XX% accounts of charge EBITDARM had recent of as National of X.XX our of NHC Holiday cash and for times. quarter X.XX and would impact be cash a end fourth XX% relationship, a portfolio the amendment. revenue fixed HealthCare adjusting coverage X.XX Looking on Corporation for

both $XX.X Moving a on Shelby Comfort month, We're escalator The year Manor Earlier three. to Care, of to pleased memory X.XX% Michigan. relationship million we Care continuing leased care XX-year initial Senior lease Living. grow investment. to expand Canton to rate of our announced Township, have building, an Comfort will look lease to comprised with in them. plus of acquisition starting new in annual affiliate with and is forward The we and this [indiscernible] assisted units

a and mainly we pipeline, private investment our senior new prospects to large Turning customers. are are opportunities. new activity, both These influx existing seeing housing of in pay comprised

we we the deals, are call As Eric. communities these adding and With to the portfolio. remain high-quality to and I'll committed to, evaluate hand back selective over operators that,

Eric Mendelsohn

you, We'll for line now Kevin. Thank open questions. the

Operator

Thank comes proceed Stifel. Chad Please from first question you. your [Operator Vanacore our line with question. Instructions] And of with the

Chad Vanacore

afternoon. Good Thanks.

Eric Mendelsohn

Chad. Hey,

Chad Vanacore

Hey.

So, you I measured, you give Can item, could Eric, for in there back to That related hoping more to is us tax normalized but that, was $X.X million expenses a one-time your clarify me detail the looks that FFO. a you escrow. something out like income expense can there? statement,

Roger Hopkins

standard required This address to that escrow, in tenant our which revenue to is glad is property paid us This tax to funds really that were for those insurance. the separately is a and And new us same it's accounting the I'm used that in number Roger. out call that. section.

can't just it separately. called You see out

places. I and think don't monies it's - because escrow it So were this anything, really had $X.XXX I what both monies quarter. that's We million coming literally out like that going were personally like the right don't But in account. don't to standard. added we in

the absolutely line. bottom effect there on So no is

Chad Vanacore

you those pick in to given All that a one, expected you range? operators, XQ got right, with the the And of you which to laid Are high-, And or timing XQ NOI mid-end turning from you of what X new guidance the assumptions you terms can thanks, do is transitioned performance, out put then, tenants in range? Roger. questions couple as of quantify low- current your FFO new the masquerading transactions? toward up I've

Eric Mendelsohn

Eric. This is

look of of too assumption some Given We conservative put essentially give some the together little of ago, when we them at transitioned, it's estimates the the will year. soon like. couple weeks that to on did these what make you a were just a buildings NOI guidance our very beginning

And that so guidance. far, we're tracking

Roger Hopkins

Let me those revenue almost that the was $XXX,XXX year. to in million that. first transition to properties in add our quarter just a bit from disclosed the We compared note little $X.X last

these got point - to that believe revenue was year. we've coming So is higher the we this that stabilized

Chad Vanacore

a you of million, $X.X at expect come Okay. $X.X million Roger, so that at fair is would back way which looking it? or assume, annually annualized so to a that at is that

Roger Hopkins

we… Well,

Chad Vanacore

is there in maybe something Or higher there.

Eric Mendelsohn

careful, settlement the have a $XXX,XXX that You to of because was $XXX,XXX tenant. one-time by fee paid for

So be wouldn't I annualizing number. that

Roger Hopkins

furthermore, undergoing will one that's And right, intensive and is Right, of the remodel June. an in right. buildings open

really going look exactly the what We by rest think have call. the year visibility quarter the we'll far second of it's to to hard say like. is So more

Eric Mendelsohn

lays And this, buildings, out is, status occupancy we is. chart what there which a that the what put all in the of NOI is, the what

Chad Vanacore

it check I out. will right. All

Eric Mendelsohn

Okay.

Chad Vanacore

So, yeah. good,

the in Are smaller made you are considering or pipeline XQ. So sizable that comments deals press you acquisition the pretty Kevin guidance materially they is pipeline portfolio about make any post size transactions? mention updating in release And substantial.

Kevin Pascoe

build that quality relationships Chad, And transactions, do what's say review of I opportunities different very also in the at we've type matter and we available relationships is but and looking smaller we us operating of how in under and how the with terms new lot a would we been fact to of successful establish business. doing portfolios we're good bolt-on partners. have

open fronts So, this all business for we're at point. on

Chad Vanacore

million set transactions had $XX of under that [B] say, of of million, call handicap at? versus, what kind percentage would your [ph] Kevin, being, to Eric, you if you the of of pipeline sort $XX it,

Kevin Pascoe

look time be fact smaller our good smaller of how some at on looking be the do you back if have over to to out at - at to But most we say. the able deals hard definitely And ones relationships been let's well. the our the say, smaller build years, have the bigger investments I $XX matter of, as historical. we're looked transactions, and able need the platforms at do been We'll to few some continue the over be ones. volumes end and last might us. bigger if you open That's we other those. to is mean, to and seeing look below of million And to

Chad Vanacore

All right.

So you XQ patient And I'll wish be luck I for update. and that wait front. on

Eric Mendelsohn

Thank you, Chad.

Operator

comes Our next Sadler question your Please KeyBanc proceed question. from the with of line Capital Jordan Markets. with

Jordan Sadler

Thank you.

excuse Sorry, me.

again, Anything you your sort on of there? I option? in remarks, you then, the in question, up Following of future. of or in Timber the some vein, on think any update mentioned on there prepared elaborate the And your can that news Eric, Ridge pipeline same anticipated tail-end regarding sort Ridge good is growth the Timber

Eric Mendelsohn

Good question, Chad.

Kevin Pascoe

Jordan. It's

Eric Mendelsohn

sorry, actively Ridge, is I'm looking I'm your that. so Jordan. open thumbs Jordan, here. in and Timber up, about yellow red the your purchase presently, at option thumbs are we discussions

tuned, in acquisitions, So update acquisitions other on just we several being stay for in But at We diligence. the then, in should that staged sure about we the working we our LOI that second that the are be have are quarter we diligence And due as on insofar are and to to conservative and anything. acquisitions. to that. say you where an past and agreement we're a revising before very satisfied point is not announce due we wanted make binding practice want guidance announcing anything. It's signed,

Jordan Sadler

so Okay, under contract? nothing

Eric Mendelsohn

yet. Not

Jordan Sadler

Okay.

cap Timber of of look caliber a can of on asset? us an might give that sort terms rates you In for what Ridge, guidepost like

Eric Mendelsohn

can't. the that seller given Well, is I no, listening,

Jordan Sadler

though. Between X and XX

Eric Mendelsohn

fair to fair say. that's Yeah, - that's a

Jordan Sadler

appreciate way do we transition properties, this NOI just sort there sequential think - looking But about that at could either Chancellor of to be added it's kind the we portfolio figure approximately follow-up they'll this any of like? identifiable or other one any not the the then, at time portfolio, are or rate know from I $XX,XXX run the role NOI really old now, look NOI start rent pieces Autumn I on tricky looking to Leaves the And thereabout. okay. might quarter. and these what Is just Okay, is what paying another disclosure out

Eric Mendelsohn

question. weeks your the Leaves It's I fair eagerness to We that just days, that And transitioned portfolio. especially get three It's on early understand ago. information. literally Autumn

pay to but So you wouldn't have buildings, start-up over costs, take I sorts new call pay is when to new to there all are new for them - for when have in from checks, get building's you have there six you you it of, a you - for and cable months overdue pay for to either the signage, distress, pay bill or goes out. Comcast a have you

stuck of costs get we're on kind with negotiating going you're vendors. that So some trying in and with to still visibility

building So quarter, this We new Autumn that for On like Charlotte, you tricky. will other that we the should picture look of quarter a in second new It's open development. have insofar is lease-up much a clearer the in will be it under report and as any scheduled June, when development. presently particular, on is basically renovation, Leaves. to

up to building, Carter start-up been or once fill costs will signed. Nashville, right cash for CapEx. buildings for you, some now. flow up, in that negative Indianapolis take And actively show two still year positive, I and the had straight-line years. if mean, frankly, Maybelle which that's you'll see and until some vendors year-and-a-half Charlotte, the a have we're then is expenses lease that In not water and in So it three but is NOI, negotiating find it, loved will a have these treading and again, to we home The a helps you it to cover. meantime, operating some rent

couple to the to expense So make into just NOI that of return money glory. we're for quarters a their putting they former at of sure them

Jordan Sadler

And is flow I would cash understand, what the revenue of the Okay. depending lease so that's on a disclosure be… structure lease. revenue net But just net or the it

Eric Mendelsohn

see triple-net next year. Charlotte lease essentially straight-line for until will an that, That's no rent be cash again, some you'll except actual show it but up, Charlotte.

Roger Hopkins

leased just Yeah. then, it in with there's lease-up - significant And cost because period, even rent up. the is the there's small, through cash it getting associated

Eric Mendelsohn

- of like like thing the building. just we to would each sell we instance estate, the remember buildings, in The we and market, we real is like these the otherwise,

buildings that So there selling. we're are

see You that can disclosures. in our

So to to we've made changing decision to trauma hold and go onto reinvest through these of a conscious operators. the

Jordan Sadler

I Okay. more guess one just for Kevin.

sequentially, trailing and I slipped was guess, coverage what was four fees I saying. were I you thought to that mentioned trying understand You quarters. it

noticed So the the lumpiness, X.X. understand the X.X where decline lumpiness don't comes I from year-over-year I also guess, from. to I

any of expect principal what's you wouldn't describing? driver were but I the So seasonality, the lumpiness

Kevin Pascoe

biggest quarter. much good thing just for a off really is and quarter more replaced that entry - Jordan, with sales fee rolled there, it moderate The a more was

a it, back that's been we're And it's seasonality we little also out entry good to. decisions the So overall repurchase at came has When is fees, quarter quarter-to-quarter. been inventory. winter guess, I as look really strategic bit, months, tends of - as smooth had but they cyclicality as what the really I lumpy was through look amount mentioned, we it some but less, to referring some I some you then and and to fee year-to-year, made at there in mentioned, entry had to it a really and that

way So cash coverage net at it on generated. look the is we

for repay cash in that but cash not time. an flow, point to and inventory, an at not entry that becomes which around to have them, asset sell they So purchase fee it's they unit but used and turn can

as that So well. there bit little timing a is a there layered issue gets of in it,

Jordan Sadler

you. Thank Okay.

Kevin Pascoe

Sure.

Operator

question comes Please with question. next line SMBC the with of Rich your Anderson proceed Our from Nikko.

Richard Anderson

Hey, thanks. Good morning.

Eric Mendelsohn

Welcome back. Good Rich. morning,

Richard Anderson

you. Thank

operating a an a So is this or response for you to going little better interim building for the having I at sure just see the you're much some day? it, the all triple-net this an could end if right? partly and of of I chance questions. more of just to in of to asking, in then that the future couple want And you to or in was it of you more essentially for lease that period, some love RIDEA there understand bit all a a be yourself and what wanting setup so Jordan transition so control to make

Eric Mendelsohn

moment That's signing would these a them contemplate or leases accidental tell consider instances, But can to the triple-net. I converting RIDEAs. fair in all question. agreements you we're at And that I these

this at point, the So that's plan.

Now, but the mean our eating words, moment, at plan. be those won't that doesn't that's now, I two from years

Richard Anderson

Okay. I commentary. appreciate the honest

How when a Now, did for did did you we get with to these this I fall your to about this speed sort point? think versus I little assets, of know I'm rest these cracks curious, happen fair them? a of things the of or sort the bit between just it's a which but to of you amount suddenness the it relatively by of lot of some small happened portfolio, or guys?

Eric Mendelsohn

Well, at Rich, to you your NAREIT we all actually that and a forecasting coincides this analysts away, while other with places vacation the are so were roadshows. on we with met and it non-deal

happen. in forecasting So these going things we've were good trouble a I of to think in or pretty job done all that seriousness,

see last If you year a Leaves, year references talked also Regency. you'll fascinated over filings look well, then by been with Autumn for that. them about We've battling people from to And our you'll to Landmark, we as and at last so... well quarter third year, references been have see certainly

Roger Hopkins

full a in in of back discussion the Eric, there was pretty February. three XX-K these

Richard Anderson

wondering was just scenes if year that. all but... read was or I percolating the a - if behind it year-and-a-half a I the ago, Right.

Eric Mendelsohn

December Leaves to and Autumn XXXX. the its up Lake of rent rent mean, I all its East paid up way paid November, Regency no, until No, no.

with might if we're disclose still trouble case So we what Regency. actually shaky can someone their they're them work or we doing limited you ready is or know in they're of they're the paying until But in - in rents, to them. are

Richard Anderson

Okay.

I that guidance recipe $X.XX only is is about is done with the different, Is to $X.XX same, actual the quarter you've an to to the growth fair it range I think, get a same balance these process game in thing standpoint different is As to different? the of transitions. way what a that far between think probably last as the to of about get think the the the quite goes, moving some end but because there numbers, from external the quite parts the

Eric Mendelsohn

little may that certainly stew land in We be the certainly comfortable we're a very going than was to feel it Well, range. February. in different bit back now that

Richard Anderson

and Okay. degree well, did to not I basket? growth is just versus the having to quicker activity guidance? the one come how out external - of then you it, the a to basket Roger, accretion question rescue yeah, the external growth to what of In words, by maybe lower guess, the dilutive make other

Roger Hopkins

going one already to tenant down ago. as accomplishment, January. rent the Holiday that we consider described per response, frame our plus the thing, from upset a $X.XX, think, as we had had those in you that was per - will great frame that for we in take we that amount when tenants three Well, I that how the AFFO able fact do share, - were one-year same FFO share We did

we this So of and performance are proud quarter. our greatly relieved

Eric Mendelsohn

on back so I to the that Yeah, a to gone that they heroic get Regency been I lining a subject would it's were that would there year a to out next to also option and effort like [indiscernible] is point rent buildings silver And that would is have even. away purchase anyway.

now, away those start instead that perking buildings NOI. having year, it's and producing So likely next up of it will go

that. comfort take in So I

Richard Anderson

then And Kevin last quick for question Okay. on Bickford.

deeper going is to to but that rent are of to a the with the there sales you in portfolio? aren't past know get mix find anything still and three anything months on. coverage together conversation just said solutions optimal out of on Bickford I working new, so and right You the

Kevin Pascoe

regular very big we in stay Well, customers, ones, all with of our particularly with contact them.

they've plenty that we well help in can of. conversations been that each to Bickford how something big and So good job on markets, other that is does out. continued there's Thing a develop that do of really happened

they And then they - I about our a up now, sense, wage help buildings is to quarters They they're makes and doing them keeping what where house seeing where in remain the some with a on coverage. lot So the there's help to that's have continue business, where talked of or engaged and the occupancy probably very their where make years think avenues you're refine portfolio, the in couple side. want And just both of initiatives staff and of develop lot sense, in they're try along way. see them sure we've them, make it it. last underway getting strategy show the the I to And initiatives sell the some think a pressure. they

conversations at, plenty with really the well. to we're And at they want some have better. that. how going hard on foster. can So things had things we they're headed, portfolio, where do to make in Those are take them, improvements where work things a we where And look we that of making they're we

Richard Anderson

All right. everybody. Thanks, Good enough.

Eric Mendelsohn

Thanks, Rich.

Operator

of question proceed line with your next question. Daniel Bernstein comes Our from the Capital with One. Please

Daniel Bernstein

understand afternoon. more you good lease back I some occupancy It's of kind go entrance you're not a repurchasing to like just coverage. Communities the of just want operational of a, just fees? in them Living that's and the that to any Hi, said, pressures Senior nuance seeing or of

Eric Mendelsohn

they've on to done part and as are some bigger like as of of so feel own improve that - well. fee they're there speak the they any to to job competition is weathering storm, equation. immune been, to their but good of there, not other things trying a partners volatility, the the but wage have operating entry They're The our so pressure speak,

pressures we've biggest entry I perspective coverage to it relates guess, they're immune disclosed, contributor is as but fee from a the said, the as not I like well. other those to what So

Daniel Bernstein

for but the making then those with something wrong that would get impacting see you supply? able you you keep or in assets? that assets can just about operational, transitioned, those if on assets to you real some wanted something I if the color thought - else were the I assets you'd of there Or those And assets sell on talk know markets. on the Okay, estate, were more supply local I just where those said there in the terms to that pressures are the being other of new Were terms competition Okay. are mistakes? operators issues the

Eric Mendelsohn

little Sure. I would say each bit one different. a

the - of the reposition At there that that's finish would opportunity somebody have that's looked portfolio, plant, We issue is a an - in like we a where one with the there step to that physical though, of predominantly that just really if focused company, competition. and the type having I coming a been issue. a relationship is Not the be. the re-launch that LaSalle area. than management that in really community, has Class really market having day-to-day different independent at more a they not in time, - look competition base. I and side, there. restructure in, that their level this said to would independent as there market, Senior to market it's Living we the on up is the back here was to competition home building Regency those on going support we has niche and have community, building. you it's there buildings same say Charlotte it that - operations going is so competitive to think And need AL still and Communities - not it. matter to so like as at the the somebody is that's that allow can A But very how to some get The of focus really and As the

Daniel Bernstein

your you in put point? propensity have is more some want to this go want of assets. to you're then, is maybe peers almost the at do value-add the bring value-add doing any just assets? is - properties discuss a value-add of don't any on what like propensity housing. some have I at to particularly different properties know value-add. Would competitors additional - Okay. point. do words value-add I'll transitioning this having after to it And in ask way, that and box reason ask at your the It's opportunities But why or I senior see go market, not propensity But value-add to you on I in see I And use question, the RIDEA. to last Eric

Eric Mendelsohn

our we the point Absolutely, beginning New Alzheimer's I building to Hampshire the mean, Dan. bought year. I loan, last of would

Daniel Bernstein

now. Yeah, it's year ago little over a a

Eric Mendelsohn

loan a care a funded we building. so Yeah, memory on distressed

So we're always on that. the hunt for deals like

it a yes. fund because look would current we're would like to loan, It interested I'm sure like pay look so, that in not RIDEA. short probably a And more answer, dividend. very our

Daniel Bernstein

Do the call? you opportunities those of on you within see any earlier the pipeline that mentioned

Roger Hopkins

There are to there we are continue some that out that opportunities evaluate.

what how we able still has to we'd it. good get our get the turnaround of for but value-add some to is. Ultimately, it's just cash flow customer, is of a could matter be like something where So to current the value deep a

said, lease to sense So, a continually described. make and there a a bolt-on of That where to not that or that, coverage to little might something to use having where lease, it'd loan, on We're a building might definitely a drag a where help, they're do Eric a back it as at beat have the essential organization. look or big be. to either taking be and where bit needs currency get they and some it to be

So are an just more say, we tuned definitely I opportunity, something of. seeing that. on little a would it's stay

Daniel Bernstein

Okay, have take okay. more offline. but maybe questions, some we'll I it

Eric Mendelsohn

Okay.

Daniel Bernstein

All Thanks. right.

Operator

line Sadler of our And question from question Please Jordan Markets. follow-up KeyBanc Instructions] is [Operator Capital a with next proceed. the

Jordan Sadler

Hey, thanks.

did the has Chancellor them? Chancellor, Just many mention have including on how properties that umbrella, its X you total under with you existing

Eric Mendelsohn

X Ventas. in And owned they by building They not. then in did to three We a so for buildings addition that ours. Bridge, is other manage Colorado have

Jordan Sadler

is on the or of scope scale thoughts incremental portfolio existing to manageable? this pretty I portfolio, Any Okay. this mean, relative their

Kevin Pascoe

really bring grow so an for it them, ability to organization. to onto manageable. And it's bench, their and us the the help is affords really their much grow this but believe people some team not opportunity them We help

like feel our And nice community. done relates memory same bench them this So, job some they really they've specifically but to have to add within scope, time it the at right care a as strength. portfolio, the allows

good for them this addition felt them organization. helps and a was like So keep coming as an

Jordan Sadler

I just status of Any through X properties. there, thoughts the And backing was at well what's disclosure. update on on looked the, it Brookdale looking that then, or under And it the lease? those X Okay. time on coverage like was into noticing, going the

Eric Mendelsohn

which have exercise. they've Sure. indicated on Well, they option as properties year, a purchase intend a they to reminder, those next

an we'll they're that year So, we we payment credit. those And, huge excellent on A, reinvest. properties. deposit and going a a away get have B, C, can next they're probably cash

Jordan Sadler

that that I it's... Is guess right. rate - on the All cap have you repurchase?

Eric Mendelsohn

so a TBD. value, fair It's market

Jordan Sadler

spin to then, on impact would last great. digest But to to one I don't any all. sort credit the be… And just TBD, know had Okay, Ensign news at this thoughts be you've night. chance last a if it of on

Eric Mendelsohn

for housing as yeah, actually we buildings. of reached them it And it soon their buildings SNF was our out affect doesn't as out They're right coverage it away improves and to Well, any and the spinning starters, credit. announced. our senior

So, yeah, we're the spin. on neutral

Jordan Sadler

Okay. Thank you.

Eric Mendelsohn

you, Thank Jordan.

Operator

back no Mr. turn Mendelsohn, questions I'll remarks. continue there further at time. this to your closing are Please the call with you.

Eric Mendelsohn

in month. you at Thanks, today us and joining everyone, Nareit next see of most for we'll

Operator

participation for and call your today. does for conference That ask We the you conclude you disconnect line. thank that please your

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