Medical Properties Trust (MPW) 8 Aug 232023 Q2 Earnings call transcript

Good day. And welcome to the Medical Properties Q2 2023 Trust Earnings Conference Call. All participants will be in a listen-only mode for the 60-minute call. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]

is event this note, being recorded. Phone now Charles Lambert, would like to to over conference the Vice turn I President. Please go ahead.

With quarter Good Properties morning. President Chief and financial and second the Officer Jr., President and Steven Trust Medical are results. XXXX company; conference call Chief Financial K. Welcome to discuss Chairman, to Aldag, me today the Hamner, of Vice Edward Executive our Officer. Executive

Commission. this distributed the press and on Form was with Exchange Our X-K Securities and furnished morning release

If a in on Investor you receive our website Relations available did it is not copy, at the medicalpropertiestrust.com section.

a of in Additionally, live we’re can you call, access hosting same section. webcast today’s which that

of call, XXXX. other the may statements be of this projections meaning Litigation make forward-looking statements Private Act Reform we the During Securities of that certain and considered course the will within

such These materially subject are other events that may risks, known and those our unknown from to expressed statements. factors and future forward-looking statements results underlying financial forward-looking cause differ uncertainties and to and/or

and today the does in being call. information such date required any a company’s company’s We the Exchange those the information. cause refer duty as could undertake materially federal not as provided you to The to this of only securities this laws, future company factors that except differ discussion by reports filed for is events a Commission the from the results of or and actual to expressed Securities with the update

measures. of the lieu to which in the call, and In measures, addition financial should certain comparable course addition, in financial GAAP of will considered during conference we describe be non-GAAP not

most with comparable financial Properties requirements. Trust Reg measures GAAP release, measures that note to reconciled has Medical accordance Please all our G in press non-GAAP directly the in

refer for to website You reconciliations. financial comparable most the measures can and related medicalpropertiestrust.com directly at also our

the turn our Chief now to call Officer, Ed Aldag. over will Executive I

for our call. second of this quarter thanks Thank joining all you Charles. you, earnings XXXX And us to morning on

no is world without believe said to exists always continue and scenario As hospitals. where firmly there we’ve a

of the delivery has Even system hospitals only to as not changed with healthcare years over importance. but the importance delivery critical, the has grown in advances, technological remains

category to Hospital the XX% are continue up equates According of healthcare of spending services That services to largest trillion. in expected total the projections, approximately CMS healthcare. make to hospital to XXXX. remain U.S. single $X.X in spending

to Importantly, are hospital services projected growing. continue

CMS next seven to eight expects X% aging the because medical growing offerings. hospital years expanded of to grow services demand consumer over almost population, and the service years

growth that sector. rate Medicare several generally over operators payer with this X% agreements new Combined, a compelling from performance fact average along negotiate the increases hospital as our strong with they case see and the you the are volume X% continued years for last to seeing increases rate

of sustained During with of types performance. the come volumes funds improvement the show back world have pandemic, and over to through the essential nature various COVID relief world These and to hospitals pandemic all hospitals in over funds. continue grow, these hospitals governments the validated all provider as continue now

remember, while You in this information we that our detailed quarter And reviewing more on filed refer for can arrears. information supplemental portfolio. information, our one report morning to

to probably you recent have operators of quarters. improving. which are numbers, recent reporting reporting publicly by hours, their one-quarter on Most hospital most seen than the Their continue market the various more overall show

recent than liquidity Friday, aggregate lenders, is under ahead significantly ABL third-party highlight ABL new of whose XXXX to maturity. of five Steward private provides some tenants. me December facility. refinanced to The our by take a the moments most larger the months exceed their $XX assets billion. few credit management a past group new Let ABL led Steward This more of The

with is a table that to Steward very unrelated lenders in the maturity maturity and the concerns liquidity having new ABL right plus with larger of the taking the There market extend much refinancing for ABL availability the a off years the are positive. seven of strong Steward having a ABL. four a

and MPT’s with MPT is a strong to investment all in is a an secured not This return. well otherwise in. MPT the credit participation loan not facility receivables lenders the pursue operating [ph] is interest provides would that Steward. very with This security by have other

continues to Steward perform well operationally.

XXXX. at EBITDARM Steward’s times. and to improvement of focus they in currently XXXX expect Their well be, their one one, down fact, contract strongest fit In forward X% is to going of reduce will their to from their total are of continue which throughout X.X plans doing divest coverage the volumes to our and to continue that primary only lines don’t of XX/XX/XX their FTEs. and is XX% labor, some use their into overall around portfolio future

in some and management few time spent Prospect a weeks Pipeline few I the and a ago, California respective visiting the of teams hospitals.

perform start to line continues me Let Prospect. California with expectations. in Prospect with our

an One the the impressive revibalization The and area seen of busy. visited extremely was hospital the Hospital. hospitals I itself has Culver was City

making the Prospect is Prospect facility, department. be corporate to area a also their brand-new this emergency several state-of-the-art closer to of including headquarters to this to improvements moving areas is hospital.

of continues The in revenue be to managed profitable managed on and and track EBITDA are care lines. planning targets business a monetization time meet for care to still the They XXXX. event and business

of the FBI procedures. Prospect nurses, have to attack. Prospect, downtime According The case. and minimally was that hospital is impacted, the hit hard following staff care the to in late Prospect may week, all you extraordinary to this in-place bring of with Some has hospitals a assisting systems patient doctors impacted the is ransomware seen last at efforts working online. of Prospect been thanks back

with providers country Many hit attacks. the similar have in been hospital other

transaction. opposition CHS, many the Connecticut to breaches. the of and such first health including business XXXX Hopkins, this nor Spirit, healthcare months associates still Kaiser aware XXX suffered The Yale, pursuant to John we providers During Common healthcare the to APA, six has is and HCA, are close approximately as providers, progressing transaction more. include neither plans sector, alone, Prospect of These any

Pipeline contract subside. to in represent report to steadily which on facilities our California, track. continue X% continues to improving are be labor only Volumes portfolio, that pleased I’m of and

portion recently state behavioral near-term. Plaza Plaza this significant from weekend. increases the grand unit in approved see hospital to of past Hospital. EBITDA opening The was should Coast The of this the unit Coast this

for LifePoint, portfolio Regarding performance good second the their for first results. the reporting the of overall our today quarter over saw quarter improvement

was bond these target. its may seen issue had was LifePoint. from included by original The upside issue the You quarter have recently announced that second and results bond

a results the the by quarters year. should their Senior that facilities. of of There in operations. indication current going are initiatives significant bullish of team improvement end quarter to management their be and this All third in fourth is their on continues good several on show

to in on the operations Moving United Kingdom. the

portfolio. of performance We be pleased continue with the to overall that

endorsement In list NHS sector. the reflecting further by was issued U.K. a historically patient recent Taskforce the implementation addition, the private Government, Elective The releases address healthcare wait the plan large press of Recovering to

the of our that Notably, available access time. well resolve wait choice more to as advocating U.K. contemplates plan patient will care. utilization increased to capacity hospitals We list, private as positively impact sector over this help believe

the the that momentum the alignment have patient to of validate a plan ensuring quality component continuous our and the healthcare the NHS this of landscape are hospitals all along, private care known U.K. overall the U.K. we in healthcare continues behind in importantly, and private in vital U.K. what sector, Most

as over grant at X% LTACHs be flat trailing to longer just approximately behavior months to from XXXX from reminder, times continue time a from the X.X hospitals any European calculations. care our of rehabilitation XX-month Also, sector a X.X quarter-over-quarter, times XX in in to trailing and steady X.X QX quarter-over-quarter essentially just XXXX. times. acute other times. rock. were QX Inpatient money at no X.X a Overall, improved portfolio declined any include Our in facilities of we our X.X

will While master reflect that and demonstrated provide performance. we’re strength continually of our our equity structures value given in stock More rents -- strategies investors year cash a deleveraging pricing Board recovered prices our our and months, our our evaluate inflation portfolio, ago, the debt sustained we the investment and our to and continued our especially and value that told of reacts portfolio. that couple as bond not of lease our protection past Steve? than and true they the inflated growing satisfied some the have

of quarter of second in Ed. that reported components we GAAP you, morning FFO minutes. the I and a few course, a few take There results of a This questions normalized and then of for loss are $X.XX out will net we Thank XXXX. of diluted share per reported will, point these $X.XX

million, neither the First, as of to the lease hospitals Common affected assets of FFO. our the rent, normalized have for write-off resulted non-cash we very straight-line former lease a acceleration intangible Steward and attractive $XXX charge Spirit about Utah aggregating of in of previously amortization adjustment disclosed,

of tax benefit our Second, billion ownership U.K. approximately a in assets of FFO. the REIT we a approximately most have under our in not restructured regime, again, of resulting $X.X affecting million, normalized $XXX of

However, addition to do cost to efforts reduction going flexibility, an and to it expect more strategic forward. our providing in we efficiency important contributor be

for and This estate included other is recognized Third, certain business. in based that Prospects Prospect the recapitalization disclosed real interest. of assets previously exchange interest we about our million and $XX rent on care managed in Prospect transactions

roughly million quarter through discounts, the and in $XXX the from That’s Accordingly, summary, that that that updated of California million rent $XXX and first In million. carried second approximately an in these hospitals have you cash of in the was announcement million. $XXX end to Yale XXrd managed of recall collected Connecticut addition will we to we quarter, estimated value to been recognized of brief to of in and obtaining approximately of would determine interest leased we interest May our closing care at expect collect appraisal date. the May the the the sale of XXXX valuations our $XXX as marketability closing May as assets the our hospitals. After our

the are most significant Those items.

and comments. additional important a Just few less

out cost Short million. Seller normalize Litigation, were to $X.X our which we of First, related FFO, about

may which to reconciliation founders. likelihood acceleration of reflecting the of performance our line the that we our adjustments of retirement of for one is offset partially -- a metrics achieving compensation in certain You by note FFO normalized related share-based the added and

quarterly decreases by finally, investments million. unfavorable quarter approximately for adjustment and the And $X non-cash this in was increases mark-to-market

had a the we approximately completed hospitals of in and nominal in normalized impact debt. FFO. million quarter, sale This seven repayment the related on of Australia A$XXX the During

During the proceeds expect for we complete approximately or million, our of we for of use third hospitals expect further early reduction. the the fourth remainder sale to Australian of A$XXX quarter to which quarter, debt

One impact June Subsequent approximately although XX, previously sale it we to $XXX Prime last of to on three FFO. completed announced normalized for hospitals the has point, no million.

our Australian the capital be Connecticut the Our debt million This hospitals from proceeds of use cash portfolios, expected our $XXX reduction. primary of to million of the from for million as from that and of of million affiliate focus that of mortgage as Infracore to $XXX few Yale on cash $XXX received continues could use includes the million sales approximately Prime our and expected in remainder smaller repayments plus of possible aggregate we closing the that in late cash XXXX quarter. There $XX second during are to transactions proceeds. also a a of loan $XXX are sale much

we received second million in quarter, Steward XXXX. also During in the repayment we $XXX loan from of made the

care Steward’s press the government is ABL our interest payers, participate secured up primary our by several commitment from and $XXX receivables facility others. to companies for receivables. facility as in in described, There to syndicated this benefits release That we managed investment. and first-lien This quarter came million. elected As third commercial are insurers, new patient earlier Ed compelling to capital is in new

rates. noted, lending and the the the in return including MPT, these facility, receivables. conditions paid collateralized since our is SVB been bank investment first-lien government market The year, other disruptions the as will this at very group monthly borrowing double-digit of and Given attractive. collateralized and be earlier a facilities on base commercial lending by has Steward the And

reallocate different is well-developed term we optionality lending uses. the assign and and capital of that our to four-year liquidity agreement, There a market for the during us for the participations elect for should give these investment

approximately to we things, other in continue among and package In this most the generating deciding to addition perform capital to collateral particular allocate operations considered, investment and EBITDARM recently investment, well, return incremental capture our incremental X.X attractive coverage of allows of income to represents accordingly, $XXX new and operating at approximately accretive participation and million Steward our overall us nominal risk. this cash to that the and attractive Steward’s times, X%

only million. XXXX have Simply by press this on indication evolve, as straight-line year-to-date is we release, range as approximately So investments, and that more we this will XXXX stated FFO cash will countries estimate basis already directional the where based between a in $X.XX to our that, per meaningful in continue calendar share. than anticipate we we refined have morning’s $XX $X.XX to normalized inflation per our in share of included a of course, rents and GAAP million increase data $XX Of projections. data

time call the a that, for questions back the operator. over I’ll few to we have with And turn and

America. you. Instructions] from comes Our of with ahead. [Operator Please Bank Thank first Joshua question Dennerlein go

picked looking guys. when were the organization? to far comment Hey, I that what reduced the up as reduction. the mentioned the -- Steve, one else U.K. on Yeah. mentioning you I costs REIT you as do like you are across said cost guess

our debt the the acquisitions certainly, monitored. the transactions look as what the of toward over in acquisitions at the of inflationary environment, every continually is really years We and G&A. the over -- a of last, impacts couple as component So velocity changes, cost nature the

I unlikelihood You reduced, also, compensation the would was awards that of share-based think, will mentioned, be prior I because note met.

XX%, the you of least to benefit we tax reflected pick U.K. That from evolve expect and over the properties respect remainder the taxes at about there properties, U.K. restructuring our we XX% of be restructuring. a attributes that up. mentioned, simply will million certain as that additional go-forward benefit a With on those basis quarterly $X

what’s what of the included Just if for is the range, guidance well? there kind assumed offsets? just and $X.XX in as the Steward there? Is then -- the the PHP And And so, included? then were in from loan

the -- marginal. have is I am... first a than way forward. already as we get loan of less from less represents, I the at not the would even relatively large net Steward. mentioned, it impact what Steward on of It’s impact that -- What it’s was Again, than So million, X% part would FFO $XXX that question? going

$X.XX... The

FFO. Yeah. Yeah. That’s Yeah. That’s historical Yeah. in there.

clear, that, Now we not said course, of we’ve cash. clearly made that’s

is I in book that the the values a of of the and lieu came the think in exchanged It cash. the of we that said, assets we it managed value over interest care press release care excess actually business. other of reflection for managed estate real that have

just to clear... be So

don’t I thing... But

Go I’m sorry. Josh. ahead,

in going was I included to prior No. that XQ? No. -- you guidance is ask, was at that released the

Yeah. Yes. estimate Yes, prior that included guidance. for It was was. an in the

Okay.

jump the line. back in will Thank Okay. I you.

Thanks.

go with Capital Wurschmidt Markets. Austin from comes question next The KeyBanc Please ahead.

Hey. Good morning, everybody.

to stake, in be related equity there I any those loan PHP guess, convertible the flow -- recurring will from will So and cash any your investments?

this No. Not at time.

March realize expecting that on related We of not expect PHP to increases collection that monetization we’re beginning value start the the no, To business. facilities in cash income year. XX% will and the September, we the at to instrument. collecting upon the clear, level, next rent to in any ultimate that XXX% of But, be California

point? to Got but at it. this Understood. the And current like that time, the know time monetize I line of then and all plan happening so, it’s investment what does real sort look what’s

yeah. as am I So ahead. -- sorry. Go

on slightly hope scheduled They’re well, still can they in that for projections probably, and original better is performing XXXX. XXXX. The still still EBITDA numbers are and revenue doing that track. sometime the that’s than Austin, monetize

it. Got

And so help then last the me, one just understand just to for guidance.

from and any PHP. really we sort the forward of the rate need to that So guess, moving $X.XX on, figure cash out back plan quarterly I to not about think then current from run

really So getting that it’s pickup this just from from you’re point. California the

Yeah.

it the California pickup year? that of way -- right that was think? any guess the I Is to So half $X.XX the back in plus

all That correct. is

Yeah.

correct. all Yeah. That is

Thank Okay. you.

from comes Steven with ahead. go Our Please Barclays. next Valiquette question

It $X.XX that because similar I if not at about The a to asked is obviously, that around $X.XX back it. on FFO, or half that’s right sounds Look, which in my Good $X.XX this quarter. way normalized where to you was thought was a was maybe quarter was guidance, one right the would $X.XX normalized first the quarter, parts. guidance, street $X.XX think which now like be Yeah. kind implying only Thanks. $X.XX on the below FFO, Hi. the the is of the were to quarter just question morning, everyone. moving

to was of half quarter. quarterly that So make the just there’s in in of $X.XX FFO year I want versus happening in least at the back not step the rate what versus maybe run some down the sure first

Well…

that Thanks. on insight further Just [ph].

what which are Yeah. correct. Only is know, to with is diluted that the Australia, you extent already we’ve obviously, sales, Prime yes, although you those of had some clarifications, But just not Prime, meaningful.

sure. Okay. make I just to want

Thanks. it That for me. was Okay.

question Malhotra Vikram next Please from with The go Mizuho. comes ahead.

for the Thanks taking questions.

you guidance. participation. But not Just back ABL it’s the the really to mentioned know returns. go double-digit I Steward I wanted also and said you your to moving

And So and the members are want other investors? XXXX if assuming to for dusted syndicate was in through I’m us did walk there what other in you that to A, the and financials are participate step to can Citi access that, you’re now back, not was need you participate? the and maybe just done syndicate, you them? What six have like and need the

market the doing So, banks dislocation traditional Vikram, these types just the lending banks, in regional banks, of loans now, national anymore. the aren’t right main

So MPT. lenders any in is that’s Steward with types these are unassociated or lenders it why It you’ve of that got us six of with other with totally different now.

out merely going done a to there ABL keep they and to about having XX days. when right getting as extend? the able for participating going refinance, for right lenders versus timing. on that have as is It’s is syndicate. be this to because was takes the other the getting it us now trade-off from the But of to four-plus the reason in simple refinance? an interest years good done that’s decision it There it they participating off getting questions table. be maybe The -- continues it in It Steward potential Are the takes getting to now ABL we

And a and our for will be forward. specifically exhibit doing financials file we as Steward’s XXXX to taken to a we going will so request That these yes, Vikram, XX-K. of not file new XXXX SEC clear, once be the we do them. XXXX we’re annually plan precedent should appear at receive it the To as that

as required very be tenant statements and SEC’s need private not we financials permitted provide the and filed will not generally financial reminder, to guidelines may file actually the unless be a guidance. clearly may to specific As tenant’s rules to by this when

drawn? much Thanks stepping how is mean, it picture, then sense an related can invest And tenant? is some to -- back loan, or like fully helpful. limit give what’s an And I on it is maybe so like you official would just That’s incremental internal fully to just that, this there a of bigger much. or can liquidity, you to us specific as or to lend the

with So, the respect Vikram, we’ve your answer think the But amount for really got I to bad question liquidity of a to Steward, that’s sizing to connection. incremental I can not and us and the on we comments than to that than provide old they in it can’t said share Ed under that more opening significantly his facility. had so comment what Steward does liquidity other

various part aware, have other policies. able think, invest a as the than second does any guidelines. which not rules The REIT, the buckets I’m I REIT to certainly, not don’t We we don’t your any question certainly implicate. this is, of that in we’re and no, have

line. ongoing to point this this business an at plans no have We make

decisions further level. at These just the made are Vikram question. that answering Board

Got it.

may. if I last, And just then Okay. one

that so environment. real with investors whether share anecdotes, examples the investors seeing in, new much. potential attractive on or and interest can landscape, mean pricing? in you globally, the talked hospital and any Just estate for Thanks stepping of about U.S. may finding the you’re new hospital stepping off We’ve back in from what still

the that appropriate Yeah. time than of we you don’t at new conversations people Vikram, calling have monthly. least this think given I have other had we literally at to us tell it’s some that

Thank you.

comes The question Mueller JPMorgan. go ahead. Please with Mike from next

things, guidance baked year is can California remind the us you Yeah. half much income of Hi. A how into of first? back the couple

here $XXX I’ll while somebody Well, million the contractual rate of the -- year. my will but the investment head. at top on to it’s XX% help X%-plus the I’m off me telling you end we a you, of an that roughly out from just collect can give September Maybe

I Somebody and writing something here. the can’t down read writing

is that So Drew? $XX -- million,

Okay.

About $XX of rent. Yeah. million

in then And March, goes it. is that… Got XXX% and that to

Exactly.

GAAP …and is versus is rate? cash that a rate or cash a that

That’s That’s cash. No. And… cash.

Okay.

be in I X.X%, will upward think. March, that of And

Okay.

On the million... $XXX

And then…

Yeah.

guess, up Got Steward have how you be it. ABL, do $XXX initially, expect I And the on million much you guess, then that outstanding? to of drawn to I down, can

drawn. $XXX million, is initially you should assume

$XXX The million.

to last debt question, give possible you U.K., the it Europe? think U.S., your are as XX-year And where costs sense to is today a across Okay. regions,

but mean, a very We market. obviously, imagine, follow No. there’s that, can’t. I in little you we really can actually trading disrupted

we’re believe a years that, if really for discount We take of So very thankfully. don’t doesn’t where million or mature refinance a we on now that of for issue trades eight don’t necessarily showing six would that indication bond $X we years. as

of And now. to course, don’t by design, we have refinance

million. We single later year, £XXX maturity the due have this coming

of liquidity the down only that. The XXXX then majority repeating write significant already that. liquidity which have again, been loan, but a for simply paid We maturity, I’m a what Australian we’ve going only a while, is term the for through check we’ve in the maturity resources to and

we we And to in than to price you debt then, and reflected share capital by have earlier, minimum Board is considers levers those the that different liquidity required. pull significantly that by mentioned our our to certainly our monitor to sure indications the make continue as our more Ed and as alluded markets cost the that of continually

you. Thank Okay.

Wells Our next go Fargo. Siversky with Connor question Please ahead. comes from

new efforts ABL of involved? this we line credit completed input for does is believe and I the could an how so dollars with the for the of to was Thanks described Steward this I morning. million the along A several be operating from restructuring and/or MPW having currently? me funds year hundred expect improvement to restructuring Steward’s call. ramp Good far EBITDAR. a change there on or efforts, ago, When all mean strategy these at

at cost EBITDA Not all show Connor. will that -- show completed Yeah. benefiting vast They’re XXXX They their restructuring. continue are XXXX numbers they all, cost restructuring. and and improvement. of to from all number will have of XXXX No. a positive

And question debt pricing, just XXXX you’re and Vikram’s missed plan earlier, this line what looking to in apologies the I us just there stack? thinking refinance more that on where I Okay. to assets if to significant maturities. mean, is if but XXXX are mean, there I asset you down or related sell towards a through could walk place

kind what pull, So other we’ve to pricing very I’ll back something and just not who one the similar come like which a Macquarie. mentioned, to joint in And assets. with similar is are we have eager past of in already to that get ventures these literally interest of from participate over minute. in done levers is we’ve to others the mentioned these we And Ed’s monthly sales transom and asset find the the Primonial quite but ways

these of our like as the community protected and private governments during like community, assets, to assets. in community many infrastructure maintain our Investor we’ve COVID all we since that mean, what can to that recently remains We’ve XXXX, and virtue a done list and assets of by slide done like there got NAREIT well underwritten you’ve I the in are beginning pricing, saw people seen very every vibrant that demonstrated they’re with there doing transaction we’ve everything point market infrastructure, of most necessary the deck. On what if is possible we which for inflation demonstrate a

we’ve for that So this in for that indication doesn’t what the that like that doesn’t pricing to at Steward prove at this. market that all sold going diminishing at But getting for Common Macquarie obviously the we say we Spirit, X.X% great private sold or Australia it’s no we’re X.X% is happen or what future. seen on assets

is to earlier. So, to levers XX to months, get those again, or do as we opportunity be major reiterate, of There pull may course. things closer just earlier, we XX are can the months -- that

Okay. Thank you.

James. Hughes Please Raymond from question Our ahead. next with comes go Jonathan

some why related in it was Prospect I’m just there I’m now from I revised guidance do to curious, recapitalization the to when trying with today? May. uncertainty that? versus there. just Hi, maybe Was understand just announcement conjunction then timing

Jonathan, we be but why Is saying earlier? you to thick, it it do the make we did hate I didn’t question? we Why And guidance. don’t that revise as... Are

Yes. Thanks. Yeah.

Yeah.

versus Back in today. May

of guidance Well, That of on may our not practice revise not generally many or it’s of between based our but it’s One, reasons. peers our couple a be, quarterly to reporting. experience, may not practice. And my probably the practice. not

it’s relatively from what of we compression minor Secondly, earlier. a guidance had

Thirdly, XXrd third took independent point It’s to managed of the transaction a happened company. had we May parties perspectives the and as private multiple multiple earlier, care out different business. validations, I who on on tried value the

done to measure appraisers and then extract from forth, into and It’s and different provide and the not that various uncomplicated subsidiaries is that that so and such what operations Prospect across Prospect has company information that. the ownership to operating put it a single

six-plus XXrd. the look were the weeks didn’t on were something auditors got in we at only to $XXX happen We It million and able value. That May that for didn’t afterwards. confident happen

simply there generally, what and mean, something So just recently. unless reasons, it’s not do was -- have and we just information really material between dramatic, didn’t more until those it’s two I we the

you which guidance Okay. guidance or I FFO, and guess to $X.XX sticking that nearly about today quarter And is be dividend, X it, improve morning out just quarter from of updated is take and with the a you of you and still then leverage then third were the and up the so by but know giving below comfortable FFO credit it, get to kind last $X.XX from dividend sustainability the you’d little updated expected call market fourth you and is the with are the yielding stock to I the income, I if just quarter said in but about that’s the next the XX% quarterly would this times. last implied year. midpoint asked non-cash with and of -- quarter comfortable of with you And

to cut debt? have has to So sheet more considered improve balance I down pay again, a retain more the quickly and ask just seriously funds the to Board

look, both, our would price. that satisfied not reiterate and I have So, and already with the as what just implied of we’re share capital Ed by cost said, I is

We’re not we getting the credit we that should. think

And and just table. And I quarter everything back actually a our again, February, I in Board on I’ll call minutes that’s is so Board is call we’ve the about going said back opportunities everything all I at repeat is and if think, already the said to, way the that. we constantly on level. And few the think, evaluating, talked table liquidity fourth this on ago, the considering just it, then,

you. Thank Okay.

This turn I concludes conference over to the session. our back for would closing Ed Aldag any remarks. like to question-and-answer

Thank like I a with Emmett will I’d that take the I On table Mclean, time appreciate mark very and in note, years you, Operator, just the today XX will almost one a interest last of to moment. today. original our founders. This sit personal everybody’s across

is very grandchildren, well announced, you previously Emmett. We we your this we Enjoy your yourself As retiring that wife. have Emmett month you very Thank the and with the you. wish best best. wish

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

You may now disconnect.