Medical Properties Trust (MPW) 21 Feb 242023 Q4 Earnings call transcript

Good day, and welcome to the Medical Properties Trust Inc. Fourth Quarter 2023 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Charles Lambert, Vice President. Please go ahead.

Thank you. morning. Good Medical full call year the fourth discuss Trust and quarter XXXX Properties to to conference our Welcome financial results. are today me Edward With K. company; Rosa Hanna, Senior President Officer President, and Controller President Aldag, Secretary. Chief Accounting Vice Vice Chief Steven Officer; President Chief the Operations and and Kevin Chairman, Vice Senior Hamner, Officer; Jr., Financial and Executive Hooper, and of Executive of

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

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

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

provided with from as undertake being filed a to this is cause results the required the information future Securities the statements. We course uncertainties actual and differ XXXX. duty Laws, These information. today Reform expressed statements certain known considered date subject for company a and except this not may does Exchange may reports Act During materially projections our financial forward-looking The any to be are to by this as in Securities discussion only, and of Private or and unknown of in from forward-looking underlying the that statements you will of meaning company's company's the the cause Litigation make or and to differ events statements other that the events could that forward-looking Federal update those Commission we to of expressed future the refer other within materially results those factors call, factors the and risks, Securities such such of call.

measures most measures, certain be the financial Medical measures. Please financial conference course has describe will Properties release, which to to G in all GAAP in Trust note lieu accordance addition, the addition GAAP requirements. of with non-GAAP the in call, Reg in directly measures that press comparable comparable not and In our reconciled should of we considered during non-GAAP financial

directly Ed comparable now call Aldag. website You refer Officer, our also will and can over measures to Chief the financial for most to Executive our related the reconciliations. I at medicalpropertiestrust.com turn

Thank of earnings pleased us joined Steve fourth I'm all to our to joining again and and you, you on Hamner, morning XXXX call. today this Kevin be quarter Hooper Charles, Rosa Hanna. thanks by for

You each will shortly. hear from them of

future. outlining $X focus allocation satisfy our As I'd significant a us is primary debt in capital help the Since highlighting discussed by aim we detail strategy into additional capital and liquidity approach will our right that least this last begin new in have maturities made like executing progress. quarter, year, billion last for XXXX allocation to generate that now of years several and to today strides at

loan investment and that demonstrate term MEDIAN, world. of these our as believe Group. engaged investors the in Priory are attractive syndicated other we and We sale to in, assets rate real the transactions of parent facilities cap economic four the at Australian for this During we of five on $XXX quarter, rate. X.X% the or our including announced sale closed fourth our million hospitals remaining a $XXX a the approximately of sale transactions agreed the upon release cap morning, earlier of X.X% remain as clearly processes our around estate liquidity another operators in actively well company to recent million Prime And sophistic we press

these date achieved as -- we other received as prices several with that sale asset transactions We And asset underwritten well consistent of other have will believe broadly to opportunities working are initial we we value values. additional sell actively are indications on the that validate on assets. market

will $X to in unchanged. the where optimistic our this policy feel XXXX. The billion attractive we stand relative quarter to remains Board's good ability and dividend. discuss The execute Board on our on continue today the disciplined about we to to later remain transactions terms, dividend meet target we such, for As and

will of the aspects liquidity. the ratios, As been case, always payout Board requirements the review such company, has REIT and all as including FFO items

I Kevin provide our go over Steward to Rosa, Steve, in wanted I prospect. update more and brief detail, through it a to and turn Before to on results

terms driver flow. During we collection call that to sizable perform pronounced of supplies challenges, cash challenges and Unfortunately, higher-margin pressure constraining October, more resulted become payable key in Steward's have have that backlog. which accounts Steward's in the cycle changes revenue on vendor discussed resulting our cash has last to Steward's since management a a ability are surgeries payment put time,

January, early been in of have develop to to recovery sheet, result, accelerate plan unpaid liquidity, action Steward a and that shared balance with strengthen working we we As an its advisers their and care business called rent Stewardship. certain to including to a of exposure This wide transactions, contemplates our managed and Steward. plan strategic hospitals tenants significantly ultimately range reduce selling new transitioning its

by it Steward the early steps, progress. we encouraged will time While these some take are to for execute

liquidity executed, to continue critical plan hospital access to its is this operate needs As facilities. Steward to

we January, subordinate on $XX business second only disclosed a we As funded Stewardship's bridge MPT, Steward's which to loan, previously a lien provided in lenders. million ABL

towards quarter, new and an lenders consented release funded MPT's MPT. has rent significant and $XX Steward, MPT facility dependent deferral the in recoveries. $XX.X the timing certain that Group under for morning, of which additional rent Steward tapering amount each limited to end initial the are million. Any of a million ABL Steward's until additional to party entirely June funding shared -- already the achieving press completion of fund paid which this of milestones would and optimizing negotiating is asset bridge MPT on a In In interest approximately the of sales. also owed all We we the anticipated of XX% or and our fourth

to Turning Prospect.

not EBITDARM cost. and Importantly, reimbursement increased in lower medical is paid driven California, Prospect improved January year-over-year, February's all rent. XXXX. by admission through Prospect's volumes, rent and yet on current have interest has Though they rates higher supplies due

December rent trailing XX-month recent coverage, most which Xx. their above by encouraged are was We

today do New on we to Gale, X Connecticut While a sale Prospect of to update hospitals not the have Haven. share meaningful

As our Holdings. of investment the our liquidity expected transactions does PHP a include $X transaction this of expected in reminder, recovery billion targeted not or

As detailed have into cash portfolio we in prospect basis categories. Steward our moved our accounting release to in this two and morning, divided press

Our track that of our is and investors for the the performance split easier will using consists hope method. is assets billion make portfolio, to more of it $XX for which stabilized this of than accounted accrual

to demonstrates, reinforcing this portfolio MPT's continues conviction our well, As breakdown model. business underlying the in perform

headwinds the spent remains have several some shortages, suffered there fact have to others. that simple The provided navigating challenges tenants the ranging rates hospitals. COVID-XX than those no operators impacts long-term essential are services acute labor years, hospital and While insufficient more reimbursement unprecedented pandemic from past more by to those than from care

is these centered that essential than XX infrastructure-like are identifying to community sustaining years. hospitals more underwriting and years, characteristics For many approach health integral on our over

assets period, and our highly we Rosa? in to are we've to quarter. competent diversified fourth to of it turn achieve Rosa and will on assembled confident the now our update needed provide portfolio over replacement during the find execute the stabilized ability of portfolio as to objectives. I sales over operators that Given continue performance an

real trends, Beginning the increased including continued revenue to you, growing discussion some cost. be take to rate, hospital highlights are Europe, estate. through and labor occupancy encouraged normalization reimbursement It's with speaking, of Thank critical today's broadly great and Ed. across of participate of recent in market the we portfolio our able you by

seek Inpatient coverage compared an also Circle performance. to high-quality as in to remain As admissions to care than continues seen procedures wait Health data. continue private insurance financial expands to demonstrate in orthopedic pre-COVID Circle the XX% joint U.K., steady alternatives an has trajectory long more times. on upward increase of patients

In named being addition work as for year, third for an by Private also Best in to the U.K. Circle the was outstanding company Group Health Hospital by named Companies consecutive Year XXXX. of Investor to

services the independent turn Let's which EBITDARM the beds. the high increases U.K. delivered largest cost on increases is by care to health benefit by from of reimbursement efficient number and Priory behavioral to capitalizing this Priory, health rate, its coverage is negotiating rate for mental growth of It quarter the the U.K. and in management. a in ensuring now utilization continues X.Xx already trend rapid driving to provider of

first projects is in in long-term first existing market. its allowed a financial complement Switzerland, integrated Germany of at were which providing markets. Medical slower Network MEDIAN anticipated, launched stabilization renovation completing that one executing improve productive although Medical a care following As increases MPT's and steadily Swiss managed Germany. achieve expansion and Earlier and occupancy, a continues government-imposed in handful a smaller-sized MEDIAN, above XXXX, of a originally an to than by untapped reminder, advantage this will capabilities a rate targets. Swiss Priory year, the ramp in is their mover had have in acquisitions several organization based reimbursement expenses COVID operators expectations, energy MEDIAN Negotiated restrictions. in to highly XXXX

development focused their acute clinical the transfer multi-tenant state-of-the-art attached office see Hub Innovation making have contract Americas pleased significant track volumes our portfolio, progress approximately maintain operators Genolier remains from of space platform care billion lab on to to Innovation and simulation The half we $X reducing in Medical which accelerate to on second the the innovative is of hospital bedside. to Hub. expected been Swiss of flagship Additionally, its to labor. is while solutions to open training XXXX. Shifting largely bench A in hospital

deliver supplemental, reporting have to in strong after Francis, to coverage across Utah Centura impact delivered respective their year-over-year during take given longer our and another continue of quarter. Prime direct excess reduced continues maintained the contract costs Common labor in of coverage two increase XX-month level facilities. reported across hospitals which Xx no from of steady demand hospitals Health the Our our volumes Prime with operators while successfully has in over is Spirit, performance to that which our transaction Colombian the St. performance, EBITDARM recently hospitals communities ER see continue volumes of X.Xx. Colombian management high quarter trailing property today. and would inpatient it removing announced five announced strong the of

our negotiate to payer to performance. over deliver contracts, focused we remains As increased steady to portfolio on more continues Prime see favorable volumes surgical expect efforts time. Overall, Earnest

offset hospitals long-term that. were waivers navigate of in continue business with eliminated to associated half has impacts criteria its of Earnest acute declines any the XXXX. that the While care Rehab admission first

went Conemaugh portfolio. that for self-funded $XX retention they million this for EBITDARM Surgical new will execute and market into as and remain true will with initiatives, this on time, vast new volumes where portion over achieved new basis. improved year-over-year towards state-of-the-art believe their cutting-edge and an when patients. contract LifePoint coverages Conemaugh provide will in cardiovascular we their recently coverage. Volumes Xx of their portfolio dedicated market fact, leadership the Care on made revenue. This reducing ramp-up half performance. recruitment recruitment same-store particularly costs we flat in the particularly Pavilion labor real any result over is LifePoint's $XX recruiting The developments, nearly excited is at their strides LifePoint a the majority IRF impact of Hospital by IRF well positive outsized combining Pennsylvania approximately this a our about physician positioned have is clinical at improved the relatively significant physician on the associated on remaining their successes, has for impact estate, Memorial new has this which, expect And underperformance while side, million hospitals care this went in In equipment. The investment patients. examining for with for exclusive

inpatient increased from in volume. strong Our them labor LifePoint benefit wage behavioral further to revenues LifePoint environment enabled increased has behavioral's rising manage resulting costs performance. ability maintain to facilities a from to continue

revenue other We the our coverage hospitals projects increase year hospitals our in continue the labor. ScionHealth's in XX% both past progress in by ScionHealth admissions of expansion prior LifePoint McKinney, has facility behavioral on consistent to have along acute revenue construction increases Texas, growing quarter-over-quarter Texas reducing at Kansas. year-to-date and multiple year, seen while driven surgeries. with over new improvements in general and make an contract by in produced

XXXX performance compared that reporting with QX hospitals. public are portfolio's We of pleased to our

with care acute that months of that Excluding reporting the higher statement XXXX, of the metrics reporters. than companies trailing the were those generally were, XX for increases line most that growth public part, of MPT's reported volume public Steward, and hospitals income in QX portfolio for

of geographies. MPT operators constructed in settings, Over terms the portfolio a years, has and carefully well-diversified care

XX% Health, including X%. We second settings, unique across and care of are highest States. operator, United our tenants After Priory behavioral X% rehabilitation, Circle at properties have by spread followed Steward, acute nearly XX hospitals. the at care over Geographically, operating nine our was our acuity outside XX% across the and largest countries represents Prospect portfolio,

challenges the operator-specific to any economic Kevin? over against disruption. With to safeguard helps results. turn discuss our as geopolitical may strategy that call diversification arise deliberate this Importantly, financial Kevin, I well and that, as will

we GAAP share share and fourth net Rosa. This of reported of positive per a $X.XX $X.XX per you, normalized morning, loss Thank a of 'XX. the FFO quarter for

Steward and accounting want effective this to As in morning, normalized the fourth have January included basis to press mentioned we cash described XXXX. moved Ed as that We highlight release FFO $XXX we press Steward accounting million Steward. release, in X, is quarter recognized recorded quarterly approximately detailed revenue change. In $X.XX share per the approximately of to related of this quarter, primarily to this also charges prior

$XXX reserves the and receivables following: adjusted all unpaid net interest recorded others to we assistance impairments a $XXX independent real international were and and analyzed of our consisted books These Steward charges of many rules loan quarter fair assumptions rent properties joint these reflect related of rent to accordingly. and pursuant the exceeded third-party value, with this on to and million loans and million regarding Importantly, $XX impairment venture. a XX reserves accounting potential value we Steward other properties identified were GAAP U.S. charges PIC estate and the possible straight-line million estimated where conservative book our less million of recoveries. reserves. $XXX than appraiser, our of of

collateral. of our impairments, in using which, the also had estimated million estate to we independent non-real of $XXX adjusted estate a value non-real reflect our third-party We current appraiser, Steward investments related fair again,

we the additional reflect billed these straight-line tables of showcasing our for and from Finally, included on in and recorded the These of we in venture. earnings to joint million charge line in interest Massachusetts rent the on charges release reserves made our have the different impact properties were equity a $XX several charges. income this included items statement morning

highlight. have two that we adjustments Beyond impairment normalized did to to I FFO charges, other want

AEVIS we our PHP the This well. Swiss investment as negative market. our adjustment recognized continues perform value $X.X of million from in managed gain to adjustments ] fair is on As adjusting care a certain in [ typical, like securities, recognized quarter marketable net is investment business to the

with the turn to to position our our a for adjustment stock over software we Steve? reflect estimate grants I the due and and $X.X Steward of expense quarter, for million a expected adjustments years. this that, over significant recorded certain updated to Second, and compensation payouts cumulative liquidity will it plans. made of to And past Steve discussion

$X the $XXX to our about over we XX% initial sell to of largest Prime almost agreed target This Kevin. mentioned our we for call, you, the wrap far hospitals sales transactions an so agreement asset and The morning, recapitalization capital of plans of up initial I have prepared limited is our Thank two billion accessing financing. some of through last our We XXXX. aggregating that transactions million. target. that On announced remarks we call. to with will of at perspective near-term around process secured these Ed announced described course quarter's the that for start

our secured by million. be. Moreover, realize $XX gain the undepreciated on financing exceeds purchase to and transaction initial rate what our about imply than or capitalization the investors of economics transaction. believe even expect our what is of better would that million $XX X.X% obviously investment the and an encouragingly, some much price we share a rate Importantly approximate the implies about price GAAP

cash due expiration X-month and to million mortgage receive expect upon price the of remaining $XXX $XXX million short interest-bearing of on notice expiration or to purchase the in a the MPT. period before note We of a

able the a master of original master leased were hospitals lease year. with new for lease was place set $XXX consolidate otherwise these a expire lease Prime three of Notably, hospitals to base our to we addition, million. in to In XX-year remaining four under next

will In addition the increase million. of $X this rent to approximately extending lease, of the term benefit by our relative

lease Prime million is lease the over represent added sale sold, a yet and hospitals of based that the the rent care for additional these rate. This are $XXX So well and which option amongst real master above $X That interest million speaks provides new purchase mentioned. management the community's rate cap the our by hospitals. $XX location and of facilities are on time investor million net are on they And underwritten million, million to Reddy and two to team we portfolio acute of of and increased the for a an an Prem economic $XX reliable would most his new of on offset base the view, any rent. is operators economic capable the in of to best continued results that at rent from $XX hospitals the strongly lease. The X.X% contractual country. increase million These estate gain Dr. and approximately I MPT million of all $XXX are also at traded the But overall the infrastructure. in $XX in purchase gain not our geographic necessary X.X% capitalization just the attractive health hospitals very confidence these necessarily hospitals in price

year that the limited sale We the a financial in mid-X% stream. Other markets to interest possible put been one of more our cap exceeding progress roughly investment Connecticut less place attractive path these to previously than quarter's least ago. executed in why initial from any discussed prospects fully very XX large potential our and a which and target, couple All necessarily sales reminder, we over hospital to, that assets proceeds the by not initial global that X%. and on years, IRRs friendly our not repeatedly of effectively rate recovered for $XXX Yale, recent PHP operating at certainly Utah capitalization the making generated have sellers year the on the and operator facilities. in include, but which The XX care October rental rate million, which as Common with assets past a to for new does have most from Australian in the Spirit of Other so-called placed to our call. lease is prime non-top at portfolio recent are and proven mentioned example. is in recent of of an our business Prime validated value have transactions are transactions integrated not that of from just been of billion And our that account have of sale economic we we proceeds resolution encouraged last monetization of earlier. any managed any years our last are $X or

transaction. morning, in-process we this not are subject in definitive comparable prepared highly for and valuation letters recent and Although adjusted tenant size are that characteristics metrics specifics of the transactions announce geography, of Prime intent are potential currently transactions to the to to particular, and, these documentation

I'll as that, expect satisfy As bank these planned approximately $XXX which capital proceeds operator. to have months to from with dollar we we have maturities. December. In we maturing. in immediately transactions two balances, secured roughly questions, U.S. $XXX we have carried XXXX, than sufficient in maturing around XXXX, debt the of and million transactions, our unsecured recent these our realize the the the turn $XXX will call time and expect million in interim, In we $XXX in for maturities. reduce million reduce will May And In over revolver financing and for back only we And will interest a have million we rate our loans, few borrowings. and X.X% an debt to in sales just more provide noted, notes

Austin from Our Markets. [Operator comes Instructions] Wurschmidt KeyBanc Capital first from question

agreed you just coming that the year to out cash have partial in February? one, this payment second, laid rent much fund, guess, ABL confidence and do capital the you in payments additional months rent Steward, that other earlier you given that you have On I year? in lenders have ramp the how this the you they upon earlier And agreed paid

back previous when our for remain all compliant compliant and is through XXX%. rent, agreement gets that June that will to with Steward ramp expect up ramping they we So way the the

as I amount you the on it. was for how what think you mean you far debt, XX% as then proceeds? I when on such specifically, or Got any guess, are billion liquidity, And secured along far of And I in loans Any through front? are I could just terms of more that negotiations that be believe hearing expected $X close? sense around to

would So to be in clarify, not debt. fact, XX% sure I don't -- remember, I'm saying that secured

we details. the $X documents. And of secured by in transaction, the metrics all that But think definitive pricing to rates and LOI to the generally you with those transactions last not done a there'll I under all either further, with the being the that billion negotiated that seeing morning this saw tried not position most mention, in through Prime is year, valuation we've transactions only we -- give a that did with I means that debt. but limited amount consistent be interest recent remaining mention it's is We're is we're way, are that or or in significant progress. the said pricing

Bank from question Next Joshua Dennerlein of America. comes from

will rent a Just you kind What the able up on June? confidence paying Steward in of full starting be start and that follow-up ramp to gives that.

that mentioned we driven key strategies it's two last month. early So by

efforts by and facilities are that is those repositioning, operated at aggressive of otherwise the One now re-tenanting selling or Steward. occupied

upon a dependent of care its managed stewardship satisfactory it's own Secondly, monetization business.

exceeded to of one Steward's addition they've we've getting every in far. to thus Josh, reports And advisers been from which flow that, them weekly cash

a Okay. And follow-up answer. maybe to that

re-tenant do a think to how Just to is period, were you guys Steward property? how the if about easy transition re-tenant like just you a it facility? And

the state. that answer So from to varies

easy. be overnight. Some states, it's really done can It

party gotten real And that interest of almost that the for facilities, the we've the with all facilities. in extremely in than the pleased I got think, facilities. us, longer. of is been bit almost answer question, who we've little we've is The Some all interested one states take in a more to amount

from question RBC. next Michael comes The from Carroll

just this back the I Steward to get on bridge circle straight. to loan. want wanted I

already that has certain an haven't million, other So to going additional lender provided $XX funds? but funded yet was ABL match that, the they those MPW

has yet. closed not transaction That

guess, And that milestones then on waiting other need million to you And out? what agreed to $XX.X what achieved to be money for achieved out need you for be I do? be milestones to is -- what now? for other what that the to are pay you paid

Well, so been have those milestones reached.

So in that, And assets. words, key that to milestones specific on other I million, ABL very the re-tenanting fund $XX be to clarify, early just million stewardship order having which the the just have is anything $XX.X and close the expected a additional of fund But those already order that depending in stringent relatively some There that are than expected million each to Those we first again, mentioned, else. fund. have which funded milestones are to piece, to have to reached. lenders anything met MPT $XX.X two the milestones been then further in and to are directly selling noncore related strategies soon, met milestones.

funding the why So initial yet? provided hasn't other lender their ABL

is not The documentation complete.

Steward business? then And just there there. I of parts is of the if those potentially related And Okay. buyers to fraudulent their all one in guess them concern? for I selling off do potential conveyance that buyers concerns at of more have can the assets, squeeze

any in particular a fraudulent clearly, conveyance. legal happen I including type transaction no answer wouldn't that situation, know Steward But under there advisers, are how of any would buyer. multiple is distressed advisers, and for to and

years underwriting own nobody one the been -- to to keys closed. hospitals that wants over of we that So has the see our

regulatory or deal transactions. states eastern of And cooperation, help there's particularly for so the facilitate heavier some great others to these of regulators, in for hand have that typically a the state the

conveyance. to going think an don't I So with fraudulent be there's issue

and plenty of are obviously, working before, transactions. on advisers Mike, And these done we've there this

comes The Mike next JPMorgan. from Mueller from question

the going For looking X.X% number the on the at away to I on $XXX number there. high in sales, of looking the million are at isn't versus similar that, you're rent Xs? rent -- guess using rate isn't escalator cap are the way just right then in it that forward, top the in it And at Or economics the stand-alone look the of stream Xs. the that transactions more just to netting why Prime net why going

Well, in the that answer [ question to it one part transaction. simple, is all done that was very ]

that question similar yes, is quoted. Second more part that of that, the to -- are it's number we they

next question Vikram Malhotra Mizuho. from comes The from

us to color Just little understand $X give you plan the the can more I if maybe billion maybe a bit wanted -- first on one, of sales.

mentioned there's well. just there LOIs these understand, coming to things get timing-wise, as due? give You the type what are, a you let's bunch buyers on can terms of addressing B delayed. a a debt of say just trying Is flavor us I'm plan in of

what from And this beginning, buyers said was back the Well, going broke to last addressed we debt also. and to XXXX the question we you timing. significantly, through little transition. X- October, but we've of up all the was and way type a And year expect a bit, Vikram, this X-quarter I the think

amount are terms under we And the Prime with that actively we're just negotiated, But next That's billion what of the to we've have negotiating capable we've not done a XX%. highly quarters, transactions the so first those LOI. with X very do $X reiterate, done significant of encouraged rapidly. to X We're you the will counterparties, saw be transaction. the as by in again, to consistent which and again that with predict

backups them. or of Vikram actively stage have LOI question, all the documents to we're with in answer that the working on everything either the that And mentioned definitive Steve rest

the just us the months backlog on on Like maybe made of call, rent. Or that all it that they've be XX% just prior I that just related then things probably of that's paying payments. think or where contractual are Because those but must they've But of where bridge sort linking partial dividend a feels dividend given period sense Steward, proceeds what's paid -- -- on up give to been a the the delayed of when clarify you this far? point, going is of you was, just And at back what to trying you there about like payment payment comments and I sort your dividend and correct said for I'm think Okay. on would about the be between last beneficial. get me, full the the see you are resolved. And just to that, not going? the link, it but be

just actually to like think about what's I'm they and backlog? trying have So the what paid

on part the of dividend liquidity our We, question these start end of not more to some transactions. Steward's rent. the on I'll It's with that is dependent and dependent ability close

heard question the correctly, and quarter. the about I rent total, joint if the that XX% paid the master everything venture again, Steward owes that is in leases, fourth is other the two about And In Massachusetts of one else. on of XX% was

that's I question. the think

I correctly, the was shortfall or to remember it October? prior was If October it started,

as the rent It And any paid quarter. in is Yes. October. rent thereafter. and All paid was third that not was was of XXX% October of end the

Connor comes from question The next Siversky from Wells Fargo.

in still of been value? full been In provided been has the written Steward to stake today loans Steward, of your down are context the down? already that already in any release, have written were to those equity the write-downs sitting some at Steward outlined those of that the Or press or have related

combined Connor, been $XX investments, for look written on down. we we non-operator I in call a yes, the and down at as the wrote operator well million loans it. it equity, we'll around mean, they have combination as basis, the

loans? include that Does

we Again, at combination. together. a it's look them Yes,

for $XX combine. So it's million a reduction all

currently $X.X to in worth in that release, cash cash detail, anything billion Steward $X in then the the comments and is if outlines of press Prospect wondering accounting operators the only assets the And there? there And are in billion. in pool. accounting? that subject Or I'm states else are it the Okay. then

Yes.

less operators. we've have small. small been on that them very there I They would We three, them our call represent X.X% total of X, day cash basis. about accounting One's than since assets just for a been

from next John The Pawlowski Green comes from question Street.

to abatements, what's domestic on or number have going was provide financial or you you X some that on that loans deferrals? rent expect operator you Could details coverage, operator more through just do And give to support rent operator? X.Xx

of have that part no, question last the to answer first not. is The we

no. John, And

this expect We going XXXX. have operator. turnaround course which not over confidence But we're in particular this the we to the disclose see particular of operator, to market, do in

particular made to. facilities particular that Rosa place referring that in significant new just investments And at is operator that

Okay.

to financial to don't operator? support expect give year And any so this you that

No, needed. be it will not

Appreciate now, terms a Any question what for general you average rate? able can me. assets on in details to those secured it. Steve, the give type right would us Last portfolio your sense acute care appreciated. you'd be be of in for financing get hospital LTV of

until to hope to to, with We wait we'll We expect under referred announce. and definitive to But transactions negotiation. that one least being been soon relatively transaction definitive of something referring LOI is that that. we've are at included that's announce have as secured to we that the be document able those financing a to and

The Tayo next from question comes from Okusanya Deutsche Bank.

credit, that sure of syndicators just your have on in line have sales of large this to you in you they're conversations regards were or line kind credit there's going could mean involved them way? all make any with to how particular, unsecured, the of comfortable of what And the at to us do they balance looking of movement? with the assuming upcoming this secured financing, to that's everything asset in on? a kind In the I'm have given get you how through walk just

May down until next in to and we starting transactions, excess few to absolutely tried with through minutes bank as the revolver. a ago, the maturity these as the to you pending go complete group So maturity the million the we will will we walk pay $XXX

So lenders satisfied that. to very bank are obviously, see the

question next RBC. Carroll follow-up from Michael a The from is

now? you confident that you have then your How to full right credit? how the of line And tight are access covenants your financial are

confident. Fully

headroom significant interest. either We own have group our with or in financial covenants, with and bond the unsecured bank the

what we provide be Steve, the needs is know be? then, should one on it covenant And it I Is if at don't any that Is to looking you And color it at? where is ratio? where interest today? versus coverage that tightest, that's where is can it the the the

not publish, headroom schedule in mentioned is have that's certainly we Yes, The we the not one a but covenants. all an normally you issue. significant of

those what exercise those rate the purchase the Steve, options then rate for So purchase on on is last cap is one assumed I if prime remaining sales? And guess, they Okay. portfolio? that the on be would cap me, options, what

this but to to or don't sorry, that have -- I'm to new as will, let front to on base million. the -- additional I come you base that million you in $XXX those we me is that would transaction, me. it I'd of point And on of put was assets that. have master this actually lease. comprehensive that in $XXX million million. I option, includes they includes a million it not $XXX that $XXX called sure a this, exercise right as what I'm back But Ed that disclosed I way, is unified this, added if now lease would -- $XX And it -- be part lease

that's of represent $XXX million gain way $XXX long-winded will the million almost of assets. saying of kind So all purchase those a price on

to to So I very back basis, cap think rate that's but I'm a on happy come indicative. you very,

And million... then $XXX

in show the again, point valuation just in is puts all disclosing the to on market interest The the these assets. that that,

Great. gross value then other depreciated And $XXX was number and gain, book that's the the us million that you assets. the gave of the Okay. booking

right. That's

Okusanya The next question Bank. from Tayo a Deutsche is follow-up from

Yes.

that most with and did, before could Just a reporting going Is about bit? the talk if a else ago. going on about you coverage little that X.Xx all LTAC a down sure X.Xx the quick not but you I'm you to there for one. reporting something Or the talked this, Earnest? apologize is X.Xx if year there versus I recent rent

decline of more more for of remaining, No, the IRFs covers either is XX LTAC X.Xx. than few have had about for away. waivers Yes. we've the talked The XX own gone that last all in during obviously quarters. that the LTAC the reason COVID everybody only this We are it those higher LTAC cross-defaulted obviously covering a Of parent guarantee the with much than half or them all facilities, that facilities. have are

questions There I closing to conference question-and-answer are concludes for in over the our back would This the any Ed more like remarks. no to Aldag session. queue. turn

you all in thank you much, today. listening thank of for Jason, and very

Tim. any Drew very questions, contact much. please or have Thank you you follow-up to hesitate If don't

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

disconnect. now may You