Sabra Health Care REIT (SBRA) 22 Feb 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Sabra Health Care REIT Fourth Quarter 2021 Earnings Call. I would now like to turn the call over to Lukas Hartwich, SVP of Finance. Please go ahead, Mr. Hartwich.

Thank you. morning. Good

regarding risks I furnished this press in to of COVID-XX we cause or you Form assume on response including included to are update XX.X our questions materially, the our quarter Form begin, making no our XX-K subsequent differ we'll to the These obligation including and plans. as to forward-looking that position statements concerning XX, statements expectations are X-K undertake later results you year based financial forward-looking to We pandemic, comments expectations events expected want the impact we of still to valid. should that our remind uncertainties regarding operators, and we the today tenants be earnings in and and your and Before results future not December investment ended listed as the operations, are our and reflect our release disposition expectations the could circumstances, to for and well actual current the ongoing management's subject expectations and regarding our our our that acquisition, in forward-looking XXXX, Exhibit morning. the in to as make risks our SEC comments in statements

section well website financial to included as of to www.sabrahealth.com. results. measures Investors of Investors financial GAAP measures results non-GAAP explanation are of will call review at financials references in this addition, to these during our page comparable In non-GAAP made be and the the encouraged the these as reconciliation

Sabra section the Rick that, And turn with call let our Chair of can Our Health to also Form supplement website. Care release REIT. XX-K, be of and CEO over accessed the and me in chair earnings Investors and

Thanks, Lukas, for thanks joining everybody today. us and

the the is song facilities. to staff, opening Our here dedicated

Let trends. current me everybody updating with start on our

really is vaccinated, operators to on occupancy our numbers about are Approximately now to workforce have fantastic. about last half up -- due had really XX%. to operators XX.X% now of staff of moving which terms XX% is from occupancy vaccination uptake, Omicron. and just our our out at of pre-COVID levels. of staff Residents returned week for In XX% are impacting We vaccines January to out being that huge of The of work occupancy. was the occupancy mandated

top coming occupancy showed two So really which XXX last last have portfolio points in a improved it's since impact managed of basis weeks, with back droves, seven started. we've a of seen pandemic as the having skill improved operators direct on two occupancy. our And our in XX staff points. big basis jump occupancy that the shown weeks, is in as The timeframe

coverage of the over and was would to a helped there like note mix of hit, was as first place, XXX obviously while I lot due mitigate concern financial points Omicron Additionally, things really that in acuity and and the skilled up year to impact skilling basis the some that of Omicron. from that of

is tremendous is money federal the government. beyond have some still in states, want do the time because I what on all have government, is. that. assistance numbers which as on to solid focus the assistance today coming the the spend of yet going update Phase Medicaid from there's though from go but to has that on most we total understandably been been really federal as reimbursement we on We'll funding, soon to so Moving X don't the

a three our costs most two before to captured. so, few just are states states, skilled In year represent And We that a XX increased took there. there's I highlight to look things of a want at XX% assets. timeline

PHEA sooner for adjust a temporary states for annual has but provided actually to The discretion of keep an an that recognition case. of have inflationary a in states number a funding if However, whether specific Medicaid the That away, continue use they to will there's want that's XX% Health states Act component. basket states market labor our which place. costs. About will increased add-on, most opportunity common inflation, increase that provides we're have Emergency optimistic goes not Medicaid misconception that place. the the FMAP to of And in that those in add-ons as Public have

all not shifted gotten we've from left a fully going comment some really betting upside and all much expect from will individual there's there. focus focus the well. want on we with be and We Phase on we're out that there. money perspective, the new Congress, look getting So that to certainly we the know on the it, out After that's Avamere the so in want one went to states. make the lobbying see negotiation I I there. really point really not to to that the assistance in Medicaid recapture just has I feds to we X, fund, that is to which the ability been think forward state

There's asset will operating additional the any This process. with and is about trusted have which deal, with to of want quality more growth ongoing We no partner a Canadian very tenants on the restructurings talk the no being new restructurings. a strong Talya high I Espirit, comment contemplated. discussions also about.

to growth after pleased additional years Canada. So, in really of making the we're see finally effort

see seeing the senior certainly about of increased we that billion, opportunities but deal nursing Canadian it's Our so. has -- Canada, anyway, the addiction in housing, announcement more deal in still stands behavioral also at the flow opportunities X.X acquisition and even We're currently, more starting while seeing pipeline, more deal we were to are it more skill primarily we flow flow deal space. and

sheet, target going down. we natural to doesn't to to five EBITDA convey ongoing. want of be on and time should and within really the In we're with well improving. mean to times, that's but the We'll leverage everybody, We've message we it deal to can that primary particularly that, fluctuate, if of leveraging terms improving, it access some continues events spend to be hit more balance plenty will lot be a asset range Michael, equity. expected to and room up Leverage We've got managed and be as still that the the sales portfolio fluctuate have happens. X.Xx got up flow portfolio expected de that

access good fact really in the a and we're markets. need perspective the in of So, shape we balance sheet from that to don't terms

this but think away, quarter, after at it's have first now we guidance, at better unlikely and the we'll rate of would issuing And an degree predict makes for Hopefully, it aren't issue If to turn on the the but strictly in a did degree recovery. in a weeks and with that, over six doubt issuing portfolio last we better of particularly to of right in by I'll if of And a exceptionally that. first we about to high confidence be that. Omicron hopefully portfolio do time net we the and least We have be impact had periods Talya. a year, I shape managed able the time. will are time we do while quarter position guidance point much impossible guidance. I to, triple relative

communities four into average We Saskatchewan. nearly has XX investment the Sabra to with well senior the the an you, will housing six Ontario avenue given occupancy Thank in years recently double This acquire old. growth. the in assets that announced for of And as and venture agreement joint Canada across is portfolio vintage Sienna expansion the acquisition, Rick. at the of additional on and path entered of one Sabra’s Senior Living to there as lease the Substantial and increase of timing up. providing a an exist communities clear opportunities community

pursue transaction our Canada XX has with venture assets is financially we the in and activity both believe said, operationally Rick that in there As through including Sienna. significantly well increased joint and Sabra months last to

housing senior in senior rollout, range or equation of death of me then particularly communities of Omicron turn care, even top-line and contract variant by we another among continue offset sustained will quarter, pre-pandemic point speak, the This the in remains senior rising in have point spread, on following labor higher senior contract move-outs fourth rates normalizing acuity variants remained memory industries with have our let the variant. fewer of Omicron the gross the which been senior the for housing the XX% results. return of In and housing, wholly-owned challenging a as to availability to which the communities lower will move-in result by dissipation infections emergence managed with and and a move-ins middle Demand workforce the but along rates staff, in After the since Early of occupancy lift third quarter the prior Omicron Delta of with labor rates XXXX housing for vaccine rates impacted higher of Sabra the have for momentum insensitive. the between move-out and occupancy contagious indicators seen employment Now of is the highly the create that price managed community utilization strength higher. somewhat the quarter recovery growth first the dipped costs gross resulting portfolio greater higher lower labor resilient virus. In labor, exceeding healthcare ongoing fourth expenses COVID-XX. in from and and continued of the housing at demand operating to been variant levels quarters. barring

that by heard have their increases to X% gone have in We residents from our X.X% rate families. unquestioned operators

remained non-stabilized RevPAR excluding the move-ins $X,XXX prior While a and with residents' for non-stabilized of has at are are value. communities communities seeing point Occupancy XX five where quarter excluding in view the XX.X% follows. the of our over time, quarter, wholly-owned RevPAR basis competing stable numbers pricing headline increase. The fourth was manage as portfolio in the has quarters. coming compared communities from past the XXXX same operators XX.X% aggressive changed was

Assisted Nearly the assisted Cash drove to COVID-XX. -- increase 'XX COVID more control X.X% fourth December X.X%, in sequentially are and period to November declined more quarter. living flat fourth to living compared while community increased XXXX, memory points, October in cash first as attributable a to two XXXX, to place quarter They and from increased declined net dip experienced our November wholly-owned while have Sabra's XXX XX in grew infection wholly-owned with the our is move-outs variants living to XX other longer wearing in making And February began basis living generally because X.X% has XXXX, care basis decreased expenses quarter. points. signs Well, in occupancy less quarter. pandemic trends NOI operating to the decreased assisted quarter the occupancy points. residents, to comply NOI of in from to September positive December managed continue into more basis independent in increasing compressed and residents margin mask by October, portfolio RevPAR a December in entire has points. labor momentum portfolio. XX X X.X% occupancy and cost and where occupancy in was assisted experience from From assisted up wholly-owned received to prior portfolio to is Omicron was the and third the January margin living shown points. this declined independent NOI than with cash driven quarter to portfolio with declined XXXX and that occupancy XX increased January XXXX, variant XXXX, increased move-outs wholly-owned X.X% downward in its to XXXX, this revenue these in quarter. in by operating income increased are labor the to recover quarter. occupancy caring grant our most XXXX in was XXXX. From power Sabra’s clear wholly-owned income October distinction basis living to declined Sabra’s XXX fourth communities been XX grew care lower to quarter the residents frailer November due increasing following received There from occupancy same-store points From protocols. to points. Throughout September basis vulnerable gradual. are portfolio occupancy pandemic, points. the able October for 'XX XX.X% same December X% higher we of with and And in the XXXX The and this the to From labor less increasing decline basis and of in From XX.X%, seen the five XX.X%, quarter-over-quarter, contract surges portfolio basis From need have occupancy quarter-over-quarter by driven mid-February. Virtually recovery basis previous living costs basis of third deaths January we third duration occupancy Enlivant properties XXX, late of in to managed XX surges was in from occupancy the But despite general Enlivant points increased than loss the RevPAR in XX.X% increasing the our none where to decline. basis portfolio Canadian by memory 'XX portfolio margin care Contract points. related increased XXXX, and the occupancy there quarter see fourth 'XX, occupancy of no XXX shortages. and between the with decreased pricing the occupancy portfolio compared by cash our revenue with slightly a U.S. quarter. November stayed

to labor portfolio starting decline rates New residents residents independent the has are rise the U.S. move-outs a the and been after the in impact to began February. the vulnerable accelerated holiday as that is cases X to shortages been a and our that that season January, in living holiday among of the time, began COVID-XX same result to of less contributing in labor have properties where the and COVID-XX higher same vaccination labor challenges, in due Year. through At was which As among there emerged the XX and during whole, December drove trend late Canada active in Despite staff high communities, down both overtime not in to costs

was the and of minor outbreaks lockdown the where few -- Our and during Ontario end COVID-XX Sienna had Retirement a of BC Home of Ontario, large Omicron there in portfolio the during surge variant the through partial January.

were the the I period, Mike residents to Chief Officer. While mid-XX% this And Costa, during these safe moving will in Sabra’s that, homes. turn rates slowed call given retirement Financial over with vaccination

Talya. Thanks,

fourth per the XXXX, $X.XX $X.XX. we For FFO quarter of normalized of of normalized share share per recognize AFO and

both AFFO midpoint normalized share of For XXXX our and per share our earnings the our year, totaled hit per FFO which normalized totaled $X.XX the $X.XX, of guidance.

or from from due our our result income normalized of decreases tenants joint share Avamere's in AFFO lower offset amount bases share third this rental Compared loan of for during in quarter noted Included for payments These cash higher cash XXXX, costs. As joint funding both of fourth namely AFFO pressures rental the our of the for basis, interest a from Enlivant of and sequential and to Omicron for as compensation. by quarter, was compared persistent dealt third portfolio the is you increased per December quarter NOI managed to third normalized first impact Since them joint the on $X.XX both $X.XX January were results and higher normalized noted $X.X quarter were million of to venture million and quarter. for primarily deferred from with labor diluted million reflected the and primarily to XXXX, per wholly-owned million the paid lower -- AFFO support they venture quarter. $XXX.X on a operations. from in Enlivant in $XXX.X as partially Avamere to stock-based The NOI variant revenues mortgage the common venture labor made Enlivant obligation the RCA Compared of XXXX. will a increase reductions earnings totaled taxes by accounted in $X.X the share for XXXX. offset release, of our the decreases in cash be FFO the in Avamere's Cash the leases $X.XX. quarter

effectively was sequentially. payments, flat these NOI cash support Excluding

million costs million the $XXX.X million Recurring compared and our million XXXX, G&A third our exposure cash of G&A represented XXXX. XXX,XXX stock-based in XX.X% XXst, the As cash cost in-line was compensation costs expense expectations. the quarter of include with of cash X.X% of to for third $X.X million NOI. were quarter $X.X analyze December our in NOI compared quarter. our the of annualized totaled SNF $X.X for NOI cash $X.X to quarter G&A of and

We are in covenants debt continue XX, compliance a balance strong to XXXX, with our of all maintain sheet. of as December and

maturity, increasing XXXX, the due extending weighted less than by senior our term cash our debt our of only meaningfully $XX.X expense $XXX,XXX fortified we while $XXX XXXX, average debt During quarter and by laddering million. our our interest node through million balance lowering sheet reliance issuance to our improving fourth on

of leverage well of above As is was leverage X.XX our Xx we housing From our in but capital. time up of target from as down investments, target long-term we performance recovers Xx, times, would as as December expect may our leverage senior and and XX, come our over of our line we maximum portfolio naturally pandemic below the leverage which managed XXXX, X.Xx. particularly with our in tick time-to-time, recycle to make

as February The declared XX% under The $X business totaled $X.XX December close a $XXX XXXX. per our will consisting per XXXX share of February $X.XX. February equivalents. million $X.X a AFFO X, stockholders XX, dividend of On XX, to of of share a unrestricted approximately XXXX cash cash XX, the record, of normalized be of of of paid represents of our common dividend common on stock. as on our quarterly payout of full revolver Board dividend liquidity and Our availability billion cash of and Directors of billion XXXX, of

on I want Lastly, to guidance. comment

We'll performance, around guidance earnings the resulting of impact XXXX a not be time. in this uncertainty Q&A. confidently these continued quarters to with items continue providing determine, financial and in we'll of And up pressure, timing occupancy, if line open the recovery to we earnings meaningful can at guidance. on these for circumstances our future Given provide we'll the the evaluate labor that,

from [Operator first Citi. Instructions] question of Our Nick of the Joseph line comes

open. is line Your

the you. you after Thank rent some uniquely come announcement other recapture to Have Avamere reduction? of the ability given any to tenants just the the structuring

Not one.

unique a a the just upside. term Avamere of in also in given of tenant in to both map restructuring? of near terms the Is situation, of but ability liquidity, obviously, Is kind surprising, future that kind given bit that participate was that roadmap for but

No.

look RevPAR us. they really with coming need don't talk not to think, good and the it, it's we've all a we're I They if they're them if here help got necessary. to We know time.

So, we're not to it. need don't this of they like the going situation take advantage if

you. Thank

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

everyone. Hi, thanks. Hello

So revalued demand high In just assets wide through REITs of Rick, the SNF And more skilled of is one of your are sell question more assets one the saying on some into this wants whether, talking your some showing quarter, think performing side that So the various market? auto just you're strategic here overall you're more also array you Thanks. peers that from elevated on with with valuations up to and that guess general and in caught a was then view your around assets companies. I Rick peers? in SNF healthcare it's how about brought strength. and pretty I that -- comment of describing asset curious nursing distress updates the that opportunities just what by or side your deal perspective. assets seeing I'm are in curious the you seeing life I

Talya. it's Hi,

stab your of take me Let question. a answering

would and into it's no we I sold publicly lot NOI healthcare high for nursing and just conflict bidding off what been there's what has all, are There bid, of nothing price. seeing skilled they seeing but that traded in Frankly, sales small words, first nursing. of skilled or are other are we that And of In valuing. consistent or quality have there's pricing think been sell part what is we're more described. we're terms in groups anything have if skilled a where in we to So other that really both, than mostly of assets a been because they're there incremental seeing, facilities. the amount not that market, nursing there's activity, transactional you low,

in capital, I that are a that's pharmacy to thing add or and would not SNF they of businesses out of opportunity other their or equity, or The is is the whether other little businesses. private these you see And some bit opportunity for them there own private pricing because misleading kinds healthcare revenue whatever. is, therapy the groups private an generate

a picture. So, bit it's of a different

some with a the And typically affiliated landlord. Right. operators real in are fashion also, estate

stream they're limited income capture. why same to parts SNF the different able we're to So able you're not bought I the capture healthcare more seeing the again, think publically and the being of as what traded REIT. essentially fairly transactions of And that's

next comes of Vikram Mizuho. Malhotra from Our question

Your line open. is

just you that's ones it's a quick are and would us in recovery of capital skilled then waivers any helpful. Just potentially of One, for in may Two FMAP remind baking again? kind terms regulations path but latest other of are be SNF states the monitoring mentioned or front, regulatory on both relooking labor And receive? can for post you additional of the sort maybe vary regulatory goes the senior thinking whether on housing your about on just for projections can versus terms you your sort going me. pre-COVID fund matching you that a What talk just anything second nursing of bit levels? internal you occupancy in sort away, away quite of Thanks.

Sure.

Medicaid on eye a day place. to in points waiver, keeping at FMAP, in certain important close three the in the on So, It's piece so scaling we're addition time.

of place as mix financial back got wasn't because was our mix out things contagious, to while more also affecting important helped other mitigate pre-COVID that's active increase normalized variant When went Omicron way anywhere the really us the deal a really then Omicron Delta near in an did it big because skilled in of serious as Delta too make it. we to want level. and skill don't with some I from So, saw was really impact the that you've But even skilling virus.

see So have, we'd that that one We away. going sequestration in long-term. to and place stay is a already like noticed nice to

So from states. I positive. been add-ons essentially, and place that said, in of And the it's really Medicaid all has as skilling various most the dialogue

first So sorry question, your I'm Vikram. again, say

path, recovery recovery occupancy the part. Just

Yes.

is for obviously is housing. a to caveat up. skilled So, latter a XXXX think that Prognostication make else's. at than pre-COVID we pent-up the and close better of occupancy no on want And We had either levels, and away don't senior year weeks I being the probably the too part or about last much demand. of anybody two just in because the skilled increase fact just huge we're

of from happy so, that. we say saw think XX% because we'd January fall before of that get really could the was back think that, if is rate the of And be Delta with of part we but hit, to which I that month, a 'XX, recovery through I bit

if then, could clarify. And just Okay, great. I

requests, have in additional is issues relief year. for in your You are peers kind come guess additional mentioned, mentioned Can of it's anticipating have anticipate of just that or or your deferrals additional for the seeing I kind tenants of the rent post -- or no you year, actual underwriting whether anything relief. instilled? you they some tenant

folks, summer the and kind but in a played if assistance is internal about has in federal or our I that the out put note our forecasting, late underwriting or we certainly would We're cautionary need maybe you spring there of that not think longer quite to of may there rent recovery, issue. not it's it restructuring for that's hasn't a enough but been possible term out a defer temporary kind and some issue and

you. Thank

part add-on the with one nursing labor. waivers question. on helping me previous let along are waivers just of your And The assistant that Medicaid the rates to are point more

starting And might add a restrictions that. recall of Medicaid you facilities. to So already subside that. help are that relaxation in to on those see as COVID we're and there the rates so will And admission part well, -- the rules subsides as staffing was to certain of

the for thanks clarification. Great,

you. Thank

Our next ahead. Rich Please of question Anderson go comes from SMBC.

Good there. morning out

So, easier Rick net, to net, guidance. be portfolio was triple triple you if entirely said produce the it'd

net So maybe can you. out some of we triple get guidance

fourth quarter… we if So go

Good try, Rich. That's not fly. to going

out. hear me let just me Well

fourth it Avamere payments quarter for of a is what from to So and in make and whole you coming then came couple December January. is, have in

So sort there's for COVID going nothing perspective least of of new on that a negotiations? triple It from be pretty portfolio XXXX, spread? else abatement shouldn't should fair to just of fairly if or the normalize any we run any barring net were sort going the predictable, remainder it if pretty be that kind shouldn't should out, be forward, -- rate,

And Hey, a it. I Rich, that's it's to Mike. think way fair look at

you're That's You skew for would hit a be net first in bit. one our assistance right, rate between quarter. or good that government little mean, that's was like XXXX. a I look to of a the timing rate, skew, kind on it numbers part at of tenants, going of alluding a you're going and the like Rick what giving anything run to payment as shortfall to at Avamere recovery, any head, that which the XXXX But temporary this is us absent triple of key that's to points if for ramp run the way deferral looking our and QX

Good.

Second question is.

guys You we billion recent pipeline. the mentioned active had going year. year lately pace have with investments. external the of in -- of last you been stock a fairly wondering much something is tough wondering, expect how could I'm forward I'm light your X.X that

bunch the see be all and balance eye of can a going on a slower perhaps on? a keep once you you your Or still to just expect actually standpoint sheet. growth on challenges lately? year Do that it there an pace the activity more things acceleration of a -- despite of to want external You going happen kind forward at from an through going an

underwriting. advantage a we time. couple just -- take for going of price a at We look there, but our I'd we're don't today's because invest of philosophically, period the to opportunities out stock look So, of say One, when long things. at we're and we

making stock that levels Occupancy 'XX. assumption recovery. everything last in which had that an back looking makes not are when Delta the to was And is gotten we're in at pre-COVID to pretty you'll year $XX, getting increasing. recovering hit, The everything We even we're before to be note up was August going nicely. there that's very back doable by

do long that of an to going XX stuck at we So, make we're be a not for time. assumption period

us Yes, that I of to is investment to other the there a can a way comment allows real the up becomes positive. our then that the we add the structure that in investments think I'd extent ride recovery

even that entry over Canadian is is upside again Rick's point back we'll point the for the as to around upside if that investment the X%, go there's opportunity long-term. in and our So to like in participate opportunity to and portfolio

And that debt last to an hair. impact perhaps know for adjusted by EBITDA EBITDA of investment five annual then activity. it's assumes I I below question, Mike, think whole

to of the they How metric you so on calculate sort in world, that you of if day those all, that underperform number and calculation when right. don't do you real because those there wrong comes of going correct that the the in you the miss do expectations numbers First start perhaps when that's come me when in? I'm that, haircut about so but everything assuming your I'm underwrite that leverage

at you're adjustment get there related the in our is to you be to adjustments any forma larger RCA going do into right far that biggest loan. look number. by pro to forma Yes, that QX, matter or for And of for the pro mortgage if dispositions kind that we acquisitions

expect in don't any number. much if So that volatility

a off our forward based is out But that that is at fourth I it forward. but is there it blips we not five could doesn't looking on want and or any we on right. for expected the that be sheet extent variability get some room that is on issue to us a reach -- going you're that leverage there of We're if a in there. possibly. just the necessarily enough around not the that performance Will an in underwrote, quarter calculations, give to that from you on annualized, So, some ballpark that from numbers leverage that's to think, our go to it of XXX? Like times get correct, It's basis, some long-term will around perspective. an NOI, happen that to create for it XXX, going we're a yes, of it's timing potential cause to a ourselves basis, to going point X.Xx are too. And hovering it our balance on focused quarter keeping by what such maximum going

you. Thank

of Our Juan next capital. question comes BMO from Sanabria

open. is line Your

to to what Hi, Is there call any morning. using security you're pay the a it. where whatever supposed good want tenants help on you Based other to deposit deferrals rents? for

pretty We're so one No. transparent no.

Okay. That's hear. good to

Sorry.

portfolio speaking so. had we stable this through been whole we've think a remarkably No, relatively We've -- pandemic.

Just -- go back. looking to at I wanted

that was $X million Mike up top something I venture get just the the last it. TPG. a plus I that been about to already I joint an said support around was thought think was and supposed of with to payment. had more details if wanted be to there that

wanted what to that was So about? just understand

No, of one the wasn't original it. last the

TPG last call on point. we expect our quarter which noted second continue year, this You lifetime that like seems should to becauseas I a from know at

One be want both position and to bleed, the bleed. XX% we having the to of other to got to in TPG's a we reasons support the write not OpCo. of on opted decision the exit to a to OpCo OpCo's pretty was take and check of because delever that big didn't

there deal a So finalized, until the is there. is bleed

OpCo, XXX$ going not and June, at but about participating we're talked support TPG are because X.X We that it's a some owns past, of that. point. from time-to-time we've support bit And for to this million, so last participate about the in little they of and did provide

expect The are talking to you should isn't sales parties there process So -- some that. a process yet. that full blown sales they're there

about that's high there's in X.X X happen. there to as we're portfolio until was for And things that everybody's the that a there private holding people enough well. of housing. well. portfolios about there's off that a billion billion senior One out X.X kind portfolio marketing of another It a huge There -- process things portfolio subside go is did it. as that's There's that project recovery off they're billion was large some quality. through out waiting a, a didn't seeing And pretty can

in until going having little full I recovery, So, there's blow to more think they a bit individual discussions. be there over a there's not -- process are traction on having

costs then that much of quantify point represent And how hopefully Can agency some you you. at growth? could one. what Thank how that in terms think just shop numbers moderates one to last through forward the are flowing help and about us

again. that went then then around down, came have it and don't actually because November peaked and its it and we down number coming it Omicron of up No,

to So a and volatile. a because to be small while which been bit moment little than have closer it's normalizing more relatively rather pick little like bit a should in We to get prefer little towards, see, time we'd where wait just actually a a it's so number.

individual market is just meaningful of our we really even particularly disparity that said the The by nothing -- curve. an facilities point aggregate and degree I'd number individual huge. that the between better not other resembles there's but is facilities, make because see the isn't bell the I the mean, operators operators,

correct. with up extrapolate and I doesn't with that and any think coming it sense. are just are make one make to going So assumptions it number, run People from just

Connor question comes next Our Berenberg. of from Siversky

line open. Your is

Apologies, leave there my there. took you I'll question. just right last

you. Thank

Okusanya Our next question Credit of comes Suisse. Tayo from

Your line is open.

out looks around about question So it acquisition guys pipeline X.X you the very and going the talked healthy. forward billion,

year-to-date kind I are great. your it senior portfolios still But X.X deals sometimes when again a when to really X and good buying some done the is all pairs was cap, of You've X the leverage given which even kind think fives, of going housing buying of the targets? today kind your of is equity of of just some you guys about cost of and about curious where think trading stock forward giving you, kind funding acquisitions especially how kind

Yes, I'll real take that quick.

in cash That'd there's we that short-term, would one. couple we bit funding look a a to, have of on hand. terms be first, of the quite In

recycling sales line And Enlivant this capital the have have of also but some year. proceeds. our We we credit, not on availability full that's even occurring including throughout is the

acquisitions capital without place recycling where leverage -- some we the think sales without a would about expected So, have having of will raising help in we we those to that throughout putting have some finance that our year have equity. some to

the But issue, of availability right? you which basically would an fully use needed equity is expect to

I'm Well, if comfortable leverages keep little in that bit leverage to Canadian there, a sales the go with proceeds portfolio We'd hand credit with like sales on what and just we had to our is using saying to on that have the of wouldn't and but hit the our check. be the plus announced, the that line proceeds, everything cash we cash we for the ATM and hand. on

as Tayo, how were we message important the aggressive got because quickly deleveling it, we willing were Mike an us that's use to year, focused as really of we we get. think said, we've And now. recall I balance ATM. the with where as last might pretty on sensitivity about sheet, tools to but a we be needed And there's number you to to got And available certain

place. much a better in we're So,

you. Thank

Pawlowski of from Green next question ahead. John Our go comes Please Street.

on disposition market us last Could year? we how disposition could the of follow-up Maybe a volume see there. range sense or volumes for just that a potentially the this give you question

disposition this in it at rate volume. of bit over earnings have it's cap really Yes. leave that and years to -- last and I given said, I'm given similar on a the want your have I'll recycling portfolio putting normal like and but you've in investments, level guidance couple going terms we I be I either we of the to be pruning guidance of of mean, your pipeline our the capital to mean, going don't a on that. it call, new not be call. seen into just I

think the some to private it bars willing is dispositions think not day-to-day normally some what is thing of about paying. major, Mike's to but going the be are slightly would additional considering. could It's to the discussion only If look may more we I be at these to point. stuff we worth Yes, be to again evaluation that that than We earlier are pay we willing do. just add folks

mortgage the size equity Rick,, the stable? does meaningfully plus here? Okay. XXX on give it that your grow latest thoughts it of and could think from trajectory three two year to that right of loan you help us million us book? Just book. Is now,

a strategic Talya. pursuing. it turn It's grow operators be going we're make the was partner comment I'll capital oriented not it's and Yes, strategically. to We be don't expect it Philosophically, a operators. more a relationship and and to good with substantial over one that not it's and with that direction those ability

exactly That's That's right, side. right. the mortgage on

with On relatively is opportunity doing a started think optionality where for the return are of long of the capital have cycle the And Sabra. timing to and equity financial specific real continue the I since small you'll preferred estate preferred in in as the rate at what equity, us amount and term typically as future. on the high we've in deployed an the which we been in ownership we to very and a of cycle do us to various see project that points

lets basis able techs that's row the might in buy us otherwise be also stabilized be It a on in like. to front marketed willing So, on fully process. something a property be we not of to

Thank you.

of Dennerlein Joshua Bank America. from comes question Our of

please. Your question

Hey, everyone.

Sorry more any the that even more are of have? changes some less this, about points or to positive states end maybe there funds where state of of receiving or like on but -- missed you're they kind operators kind

that Actually, good. most been in we're the of really have states

to So, the in the country, Texas, of they've surprise as which knows has systems the terrific really but worst state operators. biggest really was been historically everybody one Medicaid

it stepped been it's mean and we're has helpful, underfunded the of well. in dialogue view their tone have by states far big really surprised majority think certainly and The well been as where them that I happily so going the future I’m many banked have the affected good fact a that. shape that they could certain pandemic the So, the bodes perspective. They're doesn't get of just the for of states to Medicaid up by how and budget but the from changed, of that fact has in have increases,

sign. good a I think is

of asset be of… follow-up more a it would of certain just to to maybe dispositions, like or And class kind potential on just a like one then there other way waiting a kind a

really Yes, so it's opportunistic.

low it's in seems So long like be see this there where time. below as downtown I'd is thing that a as we'd been XX%, exposure which that as hit as out is there [sniffy]. XX% we're noted skilled to say, Mike, of our we kind really XX%, And to soon

growth the back to So senior these several had genesis said, that sales the it's years. decline care to pandemic, and earnings get between last is primary been sales all our center focus we've and the -- to

back And that so, to growth. primary is getting focus our

not a XX% a to bypass or then so, trying under to deal swing. on doing we're number depend simply get because exposure we skilled do going we're And where

it's earnings one, portfolio, number comes growth; balancing first. earnings So, growth growth two, the -- but number it's

Capital. Thank you. from Juan [Operator We Instructions] follow-up have BMO of Sanabria a

line is open. Your

we And potentially a the about Just is on we how rents you've lease or thinking the thinking question so? got should year color the as of well there should purchase X.X% be in expirations, about that? next off expiring portfolio on year. this Any be over that any

me. no next options that there's Yes, purchase or to year stand so, over the out

lease, talked maturing a that that's while. year tenant this we've a the that's for about For

and it's should about the we're process at portfolio a year of for the the lease announced with called and We have portfolio hopefully for that base that the for wide-open. the one That of our of cash it talked in tenants long-term putting several that of quarters we've now. -- year. Now, expires in end end

they feds. it. money, the that make -- money skills skilled of states the the Medicaid states If I stuff nursing that the comment on to states The passing to the And states have the let me don't said, the all industry. majority on other as some follow-up One have have spend from to of return been received was.

should good as assistance tailwinds create the that So, our federal tails for operators off.

expiration essentially bit us on coverages the what are on or give that a times? more could you Mike, just paying one they

that stabilized our portfolio we they're flow there's that best was in portfolio years Yes, operators. over of it took couple one one and And portfolio of on looking ago. as transitioned that took one were of and reposition then lease there, that XXXX one the a it the one And we to did a down a first They year our several to deals really best five our portfolio portfolio a suite years thing put a that portfolios, top-XX time. cash of they the key they've lease years we back a Katie, reopen for that back. they shut that It Katie cash and operator. with got was And on them short-term just was a flow with the over sweep, facilities been wide-open done. deals we've couple I now. at

we're basis and years five up steady. to six a that on cash on is going now coming and be it now be put to So a level to more going just rent a not looking something more of flow and that's

provide G&A, to for just color but And one Great. or on uncertainties the there's you any be appreciated? can [T&E] million Any be, in would project would color guidance XX what XXXX. me. some last know I one

the end we on always The our rate I Yes. little are quarter higher the say, had the a bit side. always for with fourth should I million. mean, numbers, -- numbers year quarter run X.X

X -- decent tax on but a like rate tax quarterly our call in issues, ops a have some things X payroll to for issues, assume basis million quarter and acceleration with probably X.X unit. I like fourth million, and the have is tax stock point not cash you -- happens that. You But and that million payroll think run X that between

call you. Rick closing Matros this turn like CEO, time, the for back Sir? to over remarks. to At Thank I'd

hopefully are said know work. for joining through I today we've it everybody and the Thanks us we before.

XX% going you all the is now workforce everybody. think Talk I Thanks most that vaccinated, there. really the out fact some putting positivity to so of forward, well soon.

conference today's call. Thank concludes And this participating. for you

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