Healthpeak Properties (DOC) 9 Feb 222021 Q4 Earnings call transcript

Good morning and welcome to the Healthpeak Properties Inc. Fourth Quarter Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Andrew Johns, Vice President, Corporate Finance and Investor Relations. ahead. go Please

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

the reasonable and duty is call. do to statements from detailed and our our with Although not in SEC are risk Certain undertake cause actual and factors We believe financial expectations A differ X-K disclosed any may in we materially to forward-looking uncertainties a based exhibit that on yesterday. any our will press release the subject the non-GAAP discussion assumptions, update the filings included are furnished forward-looking statements. And forward-looking expectations. in be SEC. results with to we our to measures on in risks reflected statements of risks this

non-GAAP comparable at our We G Reg on the Herzog. over will The the measures financial in call measures have accordance our to reconciled I available GAAP Tom also with Executive most Officer, all turn website exhibit is requirements. now healthpeak.com. Chief directly to

Q&A are good Chief and Officer; Officer. Brinker, Chief of and A.J. and McHenry, President Pete morning Officer; Chief Scott for me call our Officer today and our available the our here Counsel. Legal the Investment Chief our everyone. Also Tom Scott, Financial General Klaritch, are With portion Thanks Troy Operating and

while completed our very and We was and proceeds XXXX program businesses, also for Let the our well. our $X housing results. is with leverage. a life productive in year me performing XXXX reducing science reinvested our start Healthpeak and billion MOB successfully business core disposition our senior

initial year of FFO above same $X.XX full expected operations of beat points. came our in Additionally a and year had than basis we XXX with guidance store on at outset the the stronger our

our businesses. of Next, strength the

restructuring high growing As positioned now in country are now barrier we behind and exclusively portfolio us, businesses. our vital

drug funding and bed three growth created approvals. life is real Francisco, portfolio science the business San exciting exclusively future scientific which for of advancements Diego San almost purpose-built biotech many life opportunities and in are development hot strong Our demand markets from and driving science This in located. Boston, our where is benefiting estate has

continues or associated two focused on-campus hospitals with properties MOB on-campus in number program also on business our The and business one proprietary primarily benefiting development specialist number favorable with be to markets benefits Our stable growth HCA. from practices. from

MOB of Finally, for some to current consideration relative strategy development our remarks on acquisitions. has and our a properties, growing become part With on-campus life machine our program the well-located long-term pricing strategy. in scarcity to development stabilized and accretive addition growth science growth to our

X% the of $X.X which last X%, of assets years, at for compares an life these or yield rates Class five less. billion delivered A average to we of cap development stabilized science During

market and the to Given commit has high-quality for tenants ground. conditions see we the life even leasing demand space steel out huge of science to come products, tight continue before

it newly provide future on growth. driver a billion announced pre-leased. $X.X me embedded XX% $XX-plus key of Vantage development and Life let billion pipeline yield a will over turn to active our average And X% is a be and our projected Our exclude cost our MOB With expect XX% pipeline we to project. weighted Scott. that, shadow Science

more their We're raising and prior top dominate which fundamentals biotech Medical I'll update, from the Life XX well for of Office three money provide of average new a large markets tenants. of core XXXX new the biologics a base in XX%. incentive fundamentals just There's more average the year space. up capitalize existing supply the and funding which by an with the to was large followed last were XX% FDA Xx Meanwhile, between the age demand for Life year positioned provides XX-year and sector. on need with years, further in compete remain strong, submarkets a was Science approved up Venture capital the campuses number and fundraising. amenitized particularly direct leading IPOs Tom. the investment Thanks CCRC. strong and by a company relationship to Science in in

leased frictional XX% Our pipeline The our is cash Across six-year fully fluctuate signed we leases lease including weighted now realized spreads opportunity our current quarter-to-quarter, highly NOI Note maturity. portfolio annual than yet which our have to portfolio, average mark-to-market Life Science commenced. million, our for exceeds will overtime operating more and expire. estimate normal operating pre-leased. been not vacancy at that that the development re-leasing given upon leases other is $XXX from than development depending be but active

max We reducing An expect we're development of of risk million in on time cost we backdrop, the contracts escalations. entitlements land guaranteed essentially all that Against $XXX of will control on the to own $XXX already chain environment. additional and budget Life deliver Life advancing those under on markets. supply and XXXX, deliver in Science our and projects XXXX approximately despite Science in are leading million

Vista development likely We likely aggregating in than San Serena more in XXX,XXX occur next starts South XXXX in feet. with Francisco, the in expect X post-expansion Phase Waltham to San will point our grand square and Diego,

seeing half submarket in for up of year. favorable South second underwritten before in remained favor in fully about position. of in space mid-XXs, San on Site Vantage now Supply us our underway and demand markets. tenant our work original is lab and the we share yield In three one at the X.X%. Nexus which a than is cost versus more at Area, Francisco on some completion to in return color pre-leased X X.X% in strong XX% number in project are a our the each leading Phase Class A the now And a past the Here's of deliver places core landlords of our year market interest. Rents Bay we're expect XXXX.

next play the with roughly or in decade our footprint secured Diego, phase of the the depending to covered about XX% and in submarket, XXs short-term We from submarket space supply to adjacent near-term our a projects year. develop are acquired up Class was densification Sorrento The XXs excellent off-market Rents buildings buildings the property about at lab. on the have a million demolish relationship. to assemblage two San next the XXX. Mesa In Diego quarter. past from between over We A to price two pipeline growth was acquisition San through the XXX,XXX and the is land $XX the our sits on opportunities. we so land the with Healthpeak in bank XX-acre our we lab done intend now and XXX% total leases in directly ability for and last pre-leased flexibility feet double The campuses expiration existing the existing upon of of square in visibility Interstate three low are acquisition, pre-leased. our low The highly and

to partnership Boston. a Finch just ramp and nine-acre with to exit XX.X% Needham the acquired Through interest both Moving we Street, off Harrison XXX. entry a a parcel Route in in

capture properties R&D entitlement amenitized $XX future Similar combination the stakeholders value past of of share planning process, during are generating surrounding interaction acquisitions, which purchase the to are about a any lab, our pipeline medical year expect accessibility have parcels. of with in was campus the and million. opportunity or be tenants Cambridge, is Our barrier and large is the and well-positioned assets and In expect bridge creation significant a office markets, we through in the project pre-leased. the for and process build to local comment operating the city to its development Boston going After parcels. parcels. given interim, we will income, the the to us that on near-term on lab totaling that highly uses. the high XX XX% closed helps our development in good core at development rents land land all We've acres the up to now Final supply entitlement

Existing which operating budget. feet science life across three our which was to to We our scale. million square of demand advantage on markets, internal our of capitalized continues X.X and X.Xx all driven new core lack by who leased developments. for Moving owners renewals, accounted expansions competitive versus pre-leasing activity XXXX, team XX% in tenants a our be strong in lease experienced our XXXX, at results,

growth to collections. the square letters guidance. escalators, XXX,XXX activity, we've leases forward of or feet. Same-store which signed high year mark-to-market the end our above X.X%, fourth strong Looking quarter, recent is in were to more first leasing on driven by X.X%, and results already most full The of bringing than growth quarter was the NOI intent

Turning medical to office.

highest $XXX driven of operating volume rent the strong million our downtime for X.X Leasing benefiting above Same-store guidance. same-store also which footprint feet X.X%, eliminates of The investments executions the cash at the stabilized and is to was locations activity, past to Our X.X% of our growth and Dallas growing in costs. driving The high TIs were City rebound XX was at markets local end two from Mark-to-market carbon our MOB of on acquisitions continues performance blended XXXX. acquisitions the we've year footprint and square end Medical of off-market concentration expectations in X.X%, operating high-growth Full was ad our by recent high driven relationships. leasing done and We're fourth remained our activity NOI parking XXXX, the Retention on-campus completed reduce rate years. in cap through through in outperform activity quarter markets relationships. income. Seattle, including was green most million Nashville in XX%, entirely lease where and growth X.X%. team, We a by in renewals those reduces been spaces. sector.

as in be some rates, relationships XX market, to basis accretive. at Our majority hot estimate fortunate we're seeing the pricing Despite approximately still the were opportunities driven to our timing negotiated which by prior MOB was is the unique decline we points. that vast cap

momentum. growth. flat CARES was month we very relationship-based I'd MOB with that HCA good note always to expect XQ XX% is projects sequentially a Our and though best and CCRCs. December the sequential of fee Year-over-year our announce Finishing and platform sector. unique Act across quarter new the portfolio year. sales for excluding NOI and that program is both was sales is our funding throughout good to a HCA's growth essentially success have XXXX. provides since the several development for quarter with tailwind active Entry up same-store tremendous

amortized are strong quarter in the discounted. and year. have fee the or by length growth entry Those rates little to stay. amortization power Entry rental no the entry fees by with We million earnings $X cash cash pricing for housing as future support the the receipts exceed over resident's fees million market and of on supported continue $XX receipts by will

hand to two-thirds care shifted the our challenge. staffing quarter is cost positions On a labor The sector. are a of problem limit of the to communities other had Roughly staffing has vacant and higher in due admissions the fourth shortages. health across

start Fortunately, next to portfolio month, basis to on to recapture. occupancy good years. we've turn at the upside over factors seen which has Pete. all the XXX the have comes points of see be in least from Net upside us of we improvement it CCRC to year Most allowed of million where that recaptured those in still with the to I'll of $XX we $XX past signs million NOI occupancy. momentum few

note. financial We year Thanks, strong a with Starting our Scott. finished results. the on

of fourth growth quarter, the per same-store we share as adjusted For X.X%. FFO total reported of $X.XX portfolio

onetime the quarter same-store fourth grants forma growth of X%. received XXXX, our portfolio the CARES pro Excluding in Act was

Last life results. under and continue our both strong Our item same-store office fundamentals industry to segments. medical business science financial for results reflect

our quarter per fourth Board share. dividend $X.XX the For of a declared

net which debt Pro in forma general XX%, Fourth is target the equity debt of the bonds X.X reflects rate balance XXXX team Turning was our settlement second sheet. XX%. our priority effort times adjusted of ESG. during floating million with of to line of green $XXX to XXXX. million we our bond was $XXX forwards. X.XXX% approximately This approximately this and and issued quarter due in places In on issuance November, was green and EBITDA

to XXXX Turning our now guidance.

Before the into of did I I spend the a moment on our guidance. want assumptions get details, to some underlying

activity. acquisition throughout speculative activity any guidance would additive could to that year remainder be our the of occur range. assumed not have acquisition we accretive Any the First,

densification the development, midpoint a $XXX guidance million and our XXXX. Second, of $XXX from spend, redevelopment of increase million assumes

current other on earnings Ridge additional Vantage, funding developments drive growth. incremental this Cambridge believe and While results long-term drag XXX including in create Park pipeline along will significant earnings, Drive with we projects and value Callan our

in we X.XX%, as what offset driven share. salaries ranging year, memory same-store pool XX to of than in approximate expect share part our is incorporates pool, CCRCs, full our above-average employees. X% XX% guidance contractual our by XX% Total is CCRC from the In the an point ranging update we assets $X.XX leasing as growth COVID Life from care growth range revenue XX% $X.XX by for steps we insurance, environment Medical from now taxes to in our based components we growth NOI basis per Third, includes of to expense to range and all a escalators faster the occupancy X%, to return to and Xs today. Blended average driven a guidance is Should from increases Act With to XXX guidance we X.XX% by Act increase XX% as expect our or low same-store operating rent same-store that to which grant new the FFO guidance on environment to expect assisted units. rent X.XX%. which new X% follows: of driven benefit expected, we and major as know X% per X.XX% the by by the CARES average of total growth of accordingly. is property-level and for and in from normalized for same-store inclusive excluding daily grant. emerge X% X% office, follows: annual pool, the and Sciences, activity. CARES from independent operating variants from backdrop, range will growth driven rent same-store which current in headwinds XXXX adjusted a contractual The increase and earning to is are if

supplemental labor by to costs additional challenging the offset detail However, this market. for a page due compensation Please XX assumptions revenue underlying refer outsized to our was guidance. on somewhat of our

FFO now roll as modeling. recap quick a assist our forward of finish Let with with me to adjusted earnings

adjusted growth lots are of same-store there deliveries. of of benefit year positive senior of of the XXXX. II assumption guidance the with see assumes While our We of primarily Hayden impact the blended Medical and midpoint proceeds. see impact We NOI as positive our FFO positives. coming approximately developments of from the from Phases We $X.XX takes, impact puts $X.XX compared to XXXX Starting growth X%. online, see sales $X.XX from and XX II, and $X.XXX including Boardwalk, Shore housing positive our redeploying HCA full Office of

some of offsets. Moving now the to

and open tenant have from Regional $X.XX rates. densification $X.XX at Q&A. operator, and from from option let's We line of Center; drag headwind a $X.XX the the higher purchase for With development finally interest incremental Frye that, redevelopment Medical

you. Thank

comes begin Scotiabank. ahead. the from the with [Operator now will question-and-answer We Yulico And Nick session. first Please question Instructions] go

Thanks. Good morning, everyone.

to be you of on some versus But estate additional about acquisitions if us to way? accretive were to a that First underway this right question you projects. in development just lot think the company, give the on acquisitions, of And year just, is and income-producing as some do the maybe that's pipeline the we guidance, buy future would growth focus you cost thoughts external think do ability real able your and capital. of that now an do

it's Nick, with one. Tom. that Yes, I'll start

do our to we're some to that's that our FFO, opportunity what at NAV, to look we're an like, Of course, identify down yields kind comes cost us. whether transactions of able trading it favorable of if capital, all an produce AFFO off-market

nice of the see as we we're seen because we But trades. be where based XXXX. have pipeline so have all at yet that's would we'll a continue -- stock we to so to on times, go opportunities but constantly just market, those certainly out. And working And hope opportunities what through to plays

you're rents And question in over markets is in digit, growing, Tom. science well on then low that in. the Thanks, those second you a about last vacancy just Okay. life the double year still talked that very

I little growth talk how has in for is markets. potential you next if think rent strong. also maybe for So so since you about just over wondering markets rent a bit year your the still I'm rates XX% have then, could growth And cap the trended over still that guess, your been

here. Hey, today A On space minus the I'll X%, at three in Brinker plus depending are rates core Class take Nick, Scott upon that exists cap the for those. or building. probably markets mark-to-market that

non-controlling So that two or range plenty for that in it's the or past in minority general there's somewhere positions of range quarter and been trades in interests. even

you'd purchase rates. anything a even if So expect with at to cap control XXX% full lower trade

core going rents, the growth time That's same rent to decade past that's portfolio, that we More three in will other higher, downtime we look On compounded Boston that to So it's predict the expecting TIs, growth frictional digits obviously the the know At X% our market been certainly essentially the own for leased, than and in the supply-demand pretty double we're don't where Diego strong. pricing XXXX. recently as fully rate been well over continue that over out in year. markets I as fundamentals, quite normal range. when be XX% in high. San XXXX. we attractive the build are vacancy is at the in last has the approaching would

our probably So looking that grows rather declines. portfolio anything, mark-to-market across if forward than

Scott. Okay. Appreciate it,

Nick. Thanks,

comes with question Please Juan from next The ahead. go Sanabria BMO.

Hi. Good morning.

in we Alewife hoping Just on Cambridge. could touch

maybe commentary, on, frame in there think touched happen opening on but it, clarity and next? get I obstacles to redeveloping on the political update time any you the on potential may what

a assembled top-notch architect, Scott that start attorneys, in I'll Juan, really months, Bohn then relations. Tom comment may to as local last But public the well. want have engineers, and or with we Yeah. three team

is effectively. working that team So

clear it of stakeholders. develop. have with We amount timing lab. the local ultimately as I in were as a big maybe do came It's have expect out to we've should of campus that's of We mixed-use especially a across the some as to going we we some around have had to of various think what misperceptions retail. mean, is residential. that part to well in it And going meet really have fair viewed media this reports that always level of it just published November, started to planned what

what a big quite we with sure some up local pick didn't which mind, So the just interactions in the here of know I the of accurately. think make initial had papers is local stakeholders to the frankly exactly – part they

So dialogue. a productive that's been

On still something that the legislative proposed process. control. policy order, the That's it's not in we

So whole we're to a about with. our which address completely that. is rezoning lot of not worrying ultimately area, time in just a spending we that something that It's mechanism agree

So in have we happening. that a interest shared

half those really in in of Everything operating that's of some a ways have maybe that or And more we we that So than to mention that positive. vacant that last million even just real then, just level spent return. think thing, use entire land is the I'd of no reiterate actually earning $XXX core intention changing is went of the the And we of no balance, estate that assemblage. some the buildings. there's many of a

today. in this have no comfortably Class we've In continue the incredible it's necessarily big site $XXX in in this a with square million that attracted to a vision Route for we X That's is had what opportunity not Rents first we space this Cambridge the address, Line one an success. place. amazing we're vacancy. submarket, A Red We accessibility that, the are feet in mind. the in with long-term the So range think And with hurry. us to got

this you'd incredible to think anything Tom, is opportunity. add? So we an continue that longer-term

things. good a Probably of That's a pretty summary. couple

years. our process that more really, been neighborhood plan couple been well were I that we had council the And years, is our group of take with and the the actions is Alewife I the is actions to they And think that's discussions to real mind on things for zoning we are plays. working intended around do taken media in are going our along mention in a last these this we on is that, document to within said the estate city out the which because something have officials entitlement, this a something would wasn't have with we aware taken call, a probably et think have to X.X% to cetera, a of, that we through – envision, probably of land by investment operating there motivate that, expected two One decades public keep the city going it's covered line. last I that time impact utilize lot we during yield of thing,

of And with will well plenty groups with so that and plan be a work the neighborhood we us community and that for for commissions, time to city together gave put with work the favorable planning the us. the think

that, So that's how this more on would to we come topic this say on at point. but probably

that for you answer. Thank

that developments to Just incremental for curious, on growth? the 'XX large color expect NOI is some and of and a FFO you that of contributions gave amount cadence we any should your the driver the how But details come on on ramps up. given maybe in

it's Yes. but what a will this on to would it detailed and supplemental and you refer what I is, I now Hey development Pete. the Juan, a there page redevelopment in schedule actually would there's I take in right just come year. going pretty look, of to our to and cadence tell our guess,

Now, just on point will out that says initial occupancy there. it I

portfolio. when the that's first the footage will square So come operating into

Phase in Shore on three as free Drive six at cash So FFO, be There's typically between that. Shore start And would not months little on It a the NOI. of end in. the well and that And XXX look quite and coming shore's higher when in the yields Phase Park different. the Boardwalk way I I getting little very mid-Xs. but the also we three bit of it's going the I of the to probably those year number lag I'd to It's bit basis rent? did occupancy or give say I on as around The it's at right as Park there that's show high bit well. number. this might at Cambridge that actual Drive then the ended you that you, in Cambridge very, XXX mid-Xs, a just getting because So time. actually a remind schedule. point given is of say, will less we'll little that asset the be X, won't anywhere much a boardwalk, probably XX%, will necessarily initial would

would start as with So we'll start six when we that when initial would get occupancy, NOI. I that get with go for to FFO after cash and I about then months

As of dollar is share gross those per we into on said, basis. can with the at you year the our about earnings the of combination up that is a basis all look accretion a $X.XX what coming on and come for

is And like... XXXX or Thanks. just in base? relative contribution to the $X.XX XXXX the additive development to the It sounds

It's additive to Phase X.

Okay. Thanks. Great.

Thanks, Juan.

question ahead. Rich go Stanley. with from next Morgan The Please Hill comes

there. noted time wanted equity. the specifically I of spend little medical office your be is from class talking acquisition office would you in any guidance I the guys. guide said and morning market a activity favorite accretive asset medical was not a about good in Hey and bit to additive. private And that,

are growing in how be asset continuing to that that you So, portfolio? class about thinking acquisitive in

of know do portfolio through in I highly it's and adding we past acquired. one curating taking relationships. existing an too anything selected been Tom Brinker want just Klaritch the portfolios would through We're think transaction. what I'll at on of good we If we where on and can't we've things morning. to a portfolio I couple direct not In a time, well. as well don't years, want a we which it here. start. doing well history is, It's want seller assets that Scott that comment included. just in our that that has Hey we're may to building focus negotiated oftentimes doing a campus, a tends be to a we're privately But that footprint. or many know really Rich you that's

value, specific you're for more easy So broad expect get be doesn't in the of free. cap you can allow I'd of appropriately underwritten It assets. sure That still you appropriately do and a and market to it's assets structured make mean auction. Obviously, that's range same. very it does be not to always highly you rate paying as that get the in that strategic but a

Certainly, I'd we mentioned as about opportunities say gotten it. that's look expensive. has in So I prepared accretive more and still we that pricing think how seeing strategic. the remarks, But some certainly are

in So, though portfolios. the at not time a there'll category be more big one

to That makes it. a me. of sense lot Got

competitive can I at a your I'm needs think what existing private whereas hearing make is from advantage significant I those pair portfolio -- to equity targeted if just approach for what you real second work. fair? provides I transformational you think obviously with deals relationships you a

mean different. equity Yes. is private all I

we put approach allows differentiated to think but the to grow us same bucket all have it hard do we So in that business. a it's the

Got it.

then accelerate on -- like in were you you out feel in Francisco, prior the from Cambridge Can your XQ portfolios or maybe the of versus us two XQ, do for is on track the and a are or more questions. sciences those anything there vet you're similarly you development business to projects? life so with South you of San going maybe And some that other back where would bit little decelerate just

Rich I for sure can asking question got about right? development though, I pipeline? the delivery dates our I active comment want make Are you to

of you occurred talking out? clear. for Do about all be very our with dates. am. there given And I'm everything I'm XXXX? might delivery XQ, with that what inflation, feel I in not Yes. being Yes, comfortable that's of any sort is happening sorry pushed reason discussions believe that to

shape portfolio. our across good contracts. under GMP pipeline in We're entire is The No.

cases project low work of on are many in general, lock order we In GCs to with able subs escalations. So group far that pretty have in design in cost managers, the same advance. risk pretty we and and materials

more with -- on really only of The So quite and the or us chain that it's been are various to anything impacted a delays track and despite been cities. allowed way. in the environment. have ultimately But municipalities usually modest sort not those minor that's material supply stay very

if will looks anything XXXX Tom it Klaritch, largely know So I have don't you like the be same. to add.

you're delays day really some issues, typically of kind they've our in the Yes, been XX XX seen but to some projects. to right. only been We procurement in of due delays any There's minor significant range. haven't

really not of impacting on the So those. yields any

Scott other are the bought XX X the committed, the that three projects XXX% said are as and And projects are XX% out range. the of active in

you color. Thank additional for guys. the Great Okay.

Thanks Rich.

from Please comes Nick go with ahead. Joseph question next The Citi.

Thanks. on MOB Maybe staying rates. cap

XX You've changes rates about any Do thinking change cap that compression throughout one the or I may other desirability asset interest in of I'm guess you of movement overall? or expect the class mentioned way the expectations rate inflation the XXXX? basis cap either points rate XXXX.

Nick. XX due to much space as certainly due can to one that maybe We a especially for of assets, six trended basis had class rates down to months. call I that take as points that for the it, the strongly adjacent the -- over of cap and on-campus lot or demand asset last stability XX

But come of by hard the tell, they're different for could been on-campus strongly the your same of at that's types interest the terms as and variety hard premium asset adjacent when think a rates, risk-free And certainly As it's interest high-quality a of an for you increase with impact desired increase in of far in to cap rates to plus portfolios. investors. the a rates always possible. time, assets, actually always it's class

additions that the grow spending $XXX to coming program quite a that of development and easier million to we're it balance probably year to program $XX few the seeing found our in program, development more during HCA have business year. already the with to million a We primarily where

see where developments Nick, growth. the we we those probably direction now that's quite our it's you? of and our as as rates right going So it's course, is out did of cap acquiring more But hard determine. yield of -- assets, competitive far higher. much, lose And and on much is to

disconnected. We him. line I his looks It did lose think like

we line. with Sadler Now on Jordan have go ahead. KeyBanc Please the

on touch clarify I investment just well, activity as wanted morning. I'm you, here. to Thank hot guys. to topic going Good

$X.X of gave So a last with year, I the acquisitions. zero to billion of range think guide billion $X you

hit guide. or you I the change acquisitions at of chose think This to high end. activity from the you least year investment Why that exclude heart?

completing year, We senior billion year middle completed. last another go we housing the had billion in as $X dispositions. started $X been the were of Jordan, to of has we which

which So, science our we and did we yes, to had so awful portfolio. life would life identify of that so to need an core the model. what as But to strategic science There a to to lot amount in analysts you felt fit deleveraging money and awful and we assets that work an lot of and feel a was investors then guide investment of highly investment have MOB. by certain put for

those numbers our did best put out to we there. So

achieve Fortunately, we were able those to goals.

As we where different. go is the CapEx, into just development completely self-funded. in a cetera et XXXX is dynamic We're position program, fully a

maturities debt And We so due. have feel coming good that. don't we about any

slow relationships we really going that But us perspective, a our going on year question accretive in of how do And do using then you're an it you'll But identify as if an focus to us flow event produces are would and on capital capital appropriately XXXX not seen where cost that we to fairly priced basis. not you've be to becomes the have see in assets, we of capital and cash priced operate, just to have the transactions acquire accretive course, aggressive is from accretive strong accretive see continue down be we you're development. our to absolutely outcomes. – great So to basis, to on a we have as new it shape. appropriately

bit felt guidance we've So in And it moment. put guided being best the to to a guess at if of it's acquisitions, a not complete upside that's accordingly, do what just to. we we accretive

Okay.

or you less to completely the have get desire I It's it's That's you not said necessarily around – necessarily is think buy because here. less assets fair. it's I – Any a it. visibility different. – dynamic not

all we to going No long-term But while certainly, not densification that's can, additive at huge development opportunity to relationships transactions continue we outsized preference is just growth. whenever our have build be they're that accretive time strategic, as is out accretive produce acquisitions and to that. as long growing We we to all. this through over

So that's can. be on something focused always we'll when we

of your development self-funded. the comment And in being terms earlier follow-up just a to

think a $XXX of of funding I leverage – $XXX me Can on up through got I just about is spend. million? through of you the your to basis me talk ticked you million kind walk know pro forma Can the X.X%. you

as And spec additional need we because within Tom said, here. a equity self-funded plan, Hey, Jordan, we XXXX guidance. acquisitions Pete any don't didn't include Yes. is as it's

is where coming that So million from. $XXX

AFFO of earnings we've That's $XXX excess First, got our that's around in dividend. million. the retained

around pruning The there it's of piece repayments. probably is and second million $XXX seller financing non-core

non-core $XXX million And loan then year the does Frye. is and We about of include repayments $XXX sales. expect million this that balance

increases I balance is balance about think debt sheet our we within sheet And capacity at net XXXX as included as purchase million our And got the then mid-Xs. We've target million well. And there. is X.X% growing got that's capacity. course that to as sheet $XXX during EBITDA. option capacity balance we're EBITDA then in $XXX important of of we've see that the

So we're at from far We're away our target. X.X%. not

little room a of go to have mid-Xs. bit the into We

we how $XXX million. the that that's funding So of see

Okay. Thanks, guys.

Thanks, Jordan.

from queue. if Joseph Nick have asking line Citi like our your back we like Nick, continue looks from open, questions you'd It is to earlier. your in

back Michael getting I still it's Hey, the Alewife. wanted Bilerman. guess come phone. I learning to I'm to

Herzog, it. want or if don't answer Just you Brinker know I to

on about developing out components As want thinking a about in you mixed-use stuff the you on partner, to you the for own are how an non-office a Are your of live, about is that work, you this guess sort assets that How operating partner, project? thinking go build cluster. looking own are of think you and science non-life And play there? your own? I financial and

Michael, Hey, that. answer I'll

the be would mixed sure. in We As part science as for MOB smaller far specialize and use play, work CCRC. life lift the there

example, potential Oftentimes, of many partner it's one would life a multi-family the we as there. bring in that some prior it to would was larger, do there's there the depends. my something retail know with an something if do retail, something from we'll if instance small, we was that that's if consider housing So for multi-family folks I that

yet out. game out played though as plan So be we the to that's lay

that's something but we future a as far a point. consider decision this as that's As well, at on partner could overall the project,

just of tapping to or you then value side, and those you an do rather would sort about the creation want or the think of as assets, assets Tom, sell down upfront, continuing the into the And and a multi-family value those interest potential off just and especially given maintain about own standpoint, history sort your land take how contribute you to development, just should think trying long-term creation? this in I'm for upside a understand uses sources piece and we capitalization NOI to progress you from it? of and just as

No, a the portion Yeah, the informal yeah, yeah, less we good operator of side to sell Michael, value would business. of land question. multi-family developer, at and

So we keep business care to an invested where it's our seeking in keep health would in that estate. be upside. respect We'll clean real

you just and and over we cadence also five should the taken Alewife, we about as how just finally, contribution How next, should we to buildings think redeveloped? about with timing as three are And ongoing call service capital deployment Okay. capital it think of of and just out the NOI spend stick yield just years? the of let's

that for city there this it think work this of on, together, we're variety the a had some actually reasons X.X% with year and we as now to way. whole took development period when communities a get project groups. groups, years earning cetera that we're we et not plan like that I'm going get variety into that of would of good would two anything that on of master different we There's Yeah. of made a a take Cambridge, When anticipated in then. put to with said to of But point we would this yield And Cambridge I neighborhood about assemblage a a at the this I working development be couple in meantime, commence before to would sense. City of between

So us to it be allows patient.

kind operating assets land covered best with of we that assets approach we've is, that operating depends thing are place or as three. parcels in far determine and certain is. or the together permutations of This plan remain one-by-one, project the But on be of course all couple then there that we decade-long how takes a now spend, that we maybe of city action working that a of how that say out works. together Cambridge it's two could not this that dependent single project we is and best we're a project lot when what between and the are one As timing and on where the of we Alewife got the determine year action. course develop time the all But or kinds the we a have of put that of with plays things to these forward would

Florida in weeks. few a you See Great. in

Yes. Thanks Michael.

comes The Please SMBC. with Rich question go from next Anderson ahead.

morning everyone. Good Thanks.

public the lately. So I have markets science more life kind and to generally the been talk about want of not biotech industry

over funding, you look as or lackluster gates regard that could you a this be have pause I'm past to the then you get of any about to of mentioned, the by coming lot public broader wondering when year the seeing pointing from if to any have here but team come some industry IPO. should markets that performance biotech And something whatever an the as there's all VC affairs you of Our Scott thinking that concern so? are blindsided how or we out with treated at state sector today? at if not

next there portfolio. a and it's pretty front to are biotechs seems outcomes the boost the mean, safe our And 'XX that At biotechs see points certainly, think generally interest Certainly, can it you the all for change be sectors sheet that. not been like if various about is shift can S&P pretty about when may our the especially past standpoint, helpful but to XX% that It uncertainty particular up that only or have that was be IPOs M&A it pick didn't Rich, reasons was massive obviously any XXXX, of control. one happening all industry at it's stock has been Biotech on a overall Tom sure in quite potential sector like in havens the but are maybe pharma market that in unfolds. what's the down company some pharma, especially the maybe the in companies, of a picture one just And and market sometimes about I reversion just volatile, just element couple up. generally outperformance. public returns have was XXXX the There's can on lack stock valuations well. quiet for M&A outside wouldn't Washington any capital biotech just comment the one comment they a the you're happen this balance an how lot across context last of our acquired can to I I'm to given XXXX by start the XX% big for tenants listen early in from now. or for and opportunity right with so a Yes, premium at in and bigger comments rates. in of in of the talk actually to source had Yes, surprise industry that pretty an in much rise of M&A uncommon It's is, last cash mean quickly, markets looking not but of as some that's there us, in and I that sector. big impact. maybe pretty a mind. big up with keep We'll year, things might comes over for there's if happening. hey, breakthrough

what's the changing public when ignoring markets, component pretty the partnership but small we capital funding, in In a fundamentally fact see the M&A something venture you then demand sector. NIH certainly think not and aren't happening about funding, the we it's driving it's that funding, that's that

Okay. you that. Thank Good for answer.

you medical -- years this the at behave XXXX. CCRCs, you and Peter getting higher look and said recovered lift -- including scenario upside think terms have that basis next few occupancy you're know rebound get of if world? there it ultimately CCRC XXX over sell cap question, for I transaction rates you your new the the life really I points the purify XXX for assumed markets Is portfolio, potential the order be business basis office to on a science markets the tended and is perhaps something into of Pete expected a Second where horizon. of to but yourself world in points

I So with comment Thanks. the long-term plan continues. just wanted fundamentals to assuming on and recovery your CCRCs

question. on I fair the baby of sit Rich, I we you total The seniors reiterating acres. know probably Yes, baby stay it's our this these the year residents X high-quality on it's XXX things product tell such growth business. XX I've XX what assets mentioned what's infill but these XX% in tailwinds -- unusual only unique but boomer warrants about huge younger, booth past, this it an an to have -- strong flows, company, is in cash healthier, land year have it's parcels

parcels. on acres these with sit some lot XX of embedded So asset almost on the of capability development land that a in

is almost supply New non-existent.

we've upside. this and -- so And got

to against and it supply an It's infill parcel land it long back. XX a X it's kind And to of class. feel it's It's So get almost cap doing point consistent said trades we the we is no that might upside your higher is I of class we more sense. in it front year makes up a it's after was because Like a asset takes than at get new asset consider feel hard asset venture year stream rate so something where that's to place that earnings. build We this stabilized got safer warranted. CCRC these a to comes a to find things. new

yield So we And at a excellent current feel it's that tremendous cap coupon rates basis. a clipper. risk-adjusted it's on an

some going real feel nice sit a with -- that we that's today us. really upside for here just to as clipper we a coupon be So

how we're it. So looking that's at

Okay.

you. Thank good. Sounds

Thanks, Rich.

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

Hi. I the company. questions part Thanks around for that. I know CCRCs some of had are that. a small

kind them. of the you cetera? things But allowing pressure the linear of that's throughout other view we've XXXX, a the do a lot to positive. just I just to labor the want be You talked as of from down update XQ confirm move-ins et a the cover on X% you of adequate XX% not for we pressure? tunnel or year, of do light are that could you -- at rate to when because headwind that just end should point for X% XXXX? of any of operators. pressure that's And Thanks. are also some just with see And be far could pretty think as from the the to improving about answered as you could the range labor that's see your you now But subside, of most across this for be of a seen a far of assuming outlook will the the And as calendar fairly sequentially labor anywhere occupancy there progression or couple assuming --

take I'll shot Steve. Hi, a at that.

missed You of are on the some a -- improving. I but me things might challenge, it's remind side have to it. labor if But

because month, of have number admissions Over limit enough that they the to just past we half. cut have that been don't staff have properties has the in

dining ago Omicron XX and really activities and around of have and today XX properties five to few from very went down the visitation that we settled XX restrictions has down. So about out days we given

the in year a real do that's of late in occupancy especially independent about the that's it's this into the because portfolio that a vast majority and more which really most units is quarter geographically has lot see is in activity, whole fourth know continuum the a third Florida, strongly, the of we maybe which So makes all of segue good to occupancy That question the to the to side difference the business, living which tend your quarter. across a positive. really been started is important

we of a And hospitals. on the fee skilled tend occupancy. entry XXXX, the that follow of the year. the And the always then down what's what's year start provides activity the So is population with which the end fees our saw But senior highest of happening again in happening a business tailwind first the bit the then entry tends on of that side at as and slow to we half to health the in in the year.

the think to as you here couldn't accept fourth had remind the the the We And the staffing admissions. But we be because if a in to this other fourth changed So tend change of quarter that skilled for one and I mentioned quarter resident in you occupancy that that question pretty started has me? just had year pretty of could That first hope that strong first so business. quarter demand. in we quarter continues. dramatically I lot

headwind of pretty And subside think rate for you year? with that's you covered year, going think I I the costs? just I? was that to cover really or at strong X% any most you assuming the I the it. do to during that a other be pressure the guess expect It the question labor updates labor point are that was

that that because requires of increases portfolio passing point projecting we is. the digits discounting. some single just rates discounting through that what Yeah. residents. have But one in I I out market additional context about you're thing a mean, in the high to tenants where the year existing is but virtually rate for we're there's happening our compensation And CCRC no then your type is would new there's question of this reality

up RevPAR actually in X.X%. was our So XXXX

portfolio. through on of So got across We increases on pushing January we're top that the X% Xst. pushback rate virtually no

contrast it's So sample RevPAR -- that more not pretty It's portfolio problem. total And size. case digits those there's XXXX. getting pretty we're a X% big a significant existing with But have senior but a which housing back so a happening, huge low rental residents without single our the not the assets, if have to where that's XX implemented than to been we is flat Brookdale. seeing we're in growth on in still what discounting brings that

to additional that there's you give to more wanted I color event because the any in story. So

it. got Okay,

Okay. That’s helpful. Thanks.

were long-term continue the the be increase and we did rental keep I thing would we extensively. rates. extremely X% a of at is the bump rate to relationships pushing talk we those that in tenants, is important. would is mind with when They cognizant pretty relationships. did while senior referrals social mention create And one look we things last that growth, housing the in towards security that in is residents a their maintaining bring the in That fair new of something One to about fully rates CCRC higher in. increases asset And the in felt was

that as We our that So thinking realized gone part well. We could not was of and have to. higher. chose

Got it.

Thanks. Okay.

Yeah. Thanks.

with next Carroll The from Michael RBC comes ahead. Capital Markets. question go Please

update Thanks. buy Yeah. buildings plan did I Scott site give I us or fourth the project? how touch to the to in on in the Life Sorrento could acquisitions support? guess wanted Vista that many guys Was that you adjacent that can land talk that you the always an And Science land parcel? portfolio on the quarter.

buildings. Yeah, would both campus two-building up expectation a that we today. our It's buying was Yeah. end

ends So buildings, first quarter square XXX,XXX we second one in closed on in the two being fourth totaling it the feet. quarter, now one the up probably and

leases in got we've some So short-term place.

got are So in Diego San Mike opportunity our and who the the team than some think quicker Doris and portfolio well it just projects Diego be time addition great maybe to San it's going longer-term that probably a of identified short-term leases. We executed. as a development as it of and nature to given line, comes place the his the entitlements in on other the

should to from in a ends good coming XXXX we're rates obviously that where be being But market work start, relative really today, up where some a land basis probably good at, that there's do outcome we sit are interim. for especially today to the us. pretty So in but

the would you then ground at on buildings And same both break time?

it'd next up up. ends the can being is demand leased it might that making we which assume more it of given and buildings It that get with end we strong other the and we entitlement process be that But right be timing see. if permit pretty sense. are simple feet XXX,XXX we'll sooner two to up door to is, go that might how that of each can start Yeah, that part just

about venture think how nine another the too? at buildings Needham And site a that should we Okay. I mean, it that it's was acres. site? Is then, in joint two

one is Yeah that a timeframe. longer

at foot We with have a tremendous in special square local go We've to Alewife. inches our campus permit XXX-plus partner. them entitlement through our had with both success process

for could There's what We'll too. a lab. that be R&D great with do we It manufacturing. excited might or be see. a to pretty team. pure Eric it just type end It multiple That development end of is tremendous probably big does could his hospital be. with ultimately of of up right up fit amount medical that years more around might a to optionality really location, go even So could lot It It being newer and the entitlement a have it And we're a be medical phases. office. us probably given in is being through now couple office process. a, that campus area immediate that

And that to phases. able there So Okay. is more have buy, the just participate or to phases? is in Healthpeak you This you said the nine land is right? option multiple multiple then, acres

Yeah. do together, square could hundred thousand end We would but the thing feet. being whole it up several

sure between we make now one to of plan. lot I'm say that will Michael, you time. back But on not when So specific the and I we that come decision all a would occur do there's that that at

you. Great. Okay. Thank

Michael. Thanks,

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

just continue seems it's revisit MOBs just compression so cap XX hard housing, are where some maybe to you thinking looked least rates the the Thanks talking past. referenced cap you've given to more for and about using those move how riskier value-add -- the to bp in much what MOB to thoughts class but of down taking monetizing about a view. you've a going MOB It been not a questions. scenario at morning. maybe back hospitals? early strategically asset at in life opportunities Maybe envision senior like in even more or sciences just for space today But philosophically my maybe where your of proceeds rates pricing. It's Good where maybe

MOB to and your monetization get thoughts wanted So, other just I -- uses. considering for on just using proceeds

view rest. start you your MOB don't cap and and I'll why value the Scott take on with the rates

value shareholders. of is makes value Yes, it's an certainly that a I sense lot that you or relationships tremendous over mean business about the active the important of that value grow we we whether lot think capital there's about cost when pipeline, a strategic to as really times having has last time Healthpeak through proposition. platform of year our how part And it as through in acquisitions which a think at could saw we has a we isn't all of development part that think

have As with happen a far mean three rates or probably we down. ago thing ago I come ago rates, cap continued could just to what the years as have could year cap years said same five or

highly go they of on going think come decision don't would cap rates. It down make a cap foot could in XX lower? bet we portfolio down not are a But sure. go view doesn't our to up. on or I'm to strategic million square us. just that's It's any ever whether rates a I based So,

Yes.

above different the look positioned business, pretty I our well and number returns part on it our time second is more question campus. of But your covers of is nature being the think think at deliver Vikram we of when average know consistent over a primarily well. that especially we do Also folks So, points. campus the MOB it portfolio -- to given

developed absolutely large acquired We over that of campuses years be have replicated a that not could and trophy many were today. number

it our in capabilities and the those relationship with at very of valuable So, HCA in come nice a development unique quite portfolio returns.

synergies, sizable acts And aspirations a our pretty and more business densification of gives analysis CapEx on and whatnot. but and So, think be transaction cetera. scale utilize program lot that et scale, we a better to of around both to et the the life work allows MOBs a we our as also cost able that like that as it systems, also office, us portfolio all aggressive that with science get development stability back us leasing it we're have corporate and capital a groups functions, in cetera that we with G&A

to a we So, lot be it components. when a sense of business our look at the of part makes

is So, strategy three to a of business, well that intentionally irreplaceable thing densification you ways of but said a play to there six our the might site created -- it the some huge we are at have sell other opportunity plan other we we real not fit I the have something took bottom-line REIT's That's we got invest would in But is riskier. almost lots in it and portfolios this. that That and vital all. different us on the guess plans based with they at sheet. years, a estate balance -- business barrier entry all great high that's in to the development into

a to long-term. and we we strategy going is do like over it's somewhat the probably it well unique, that's that and think So very, very

one riskier As It's to nature, triple play they hospitals, done subject took. But in the hospitals that. business plan recent the still but the we we in that have investing fits it's nothing stuff wrong far have. whatnot. margins net as one that strategy well to they're the against That's of with not not in and And nothing that like EBITDA again years especially. the

have of would a making shift. of we So zero that kind intention

Fair enough. Thanks for all the thoughts.

one sciences. more Just on life

has I X% in on handily think percent, I'm not to ending years wrong. X% up a those you've your seen guide for and a positive couple been X-plus and row, of a same-store beat initial if trends basis

gets seen us average walk trying X% range higher through we've for the maybe to what year that you to just few maybe getting versus above sort past of the So this in years? in

couple a the bunch primary is that higher there start us. And we'd and contractual Vikram. XX% as rental which is a may you escalator, did what But spaces. then XX% obviously think is the put really didn't drives then of when the that well. we conservative. assume range in we get with which same-store, Pete in same-store those we and our about low-Xs mark-to-market, hey of some much I are TI said have rates. that's can in If comments One for in the Yes, components. We maybe portfolio

assume number that We've term. just average at look can't you a six-year So But in lease isolation. weighted number. that that's got the

year, for a lease in matures that every that years. XX next matures lease there's So

it it time about comes from then science it Well, that And other variables? But adds our the will points six-year average about go important given But like with average mark-to-market. through term, lease is, just to fluctuate So tenants. a big really year-to-year same-store. weighted that what XXX basis point. to year life we are it one some if the takes of the you out, things

So of when be feet some great. tends It's it's up if does per and And XX,XXX perhaps rent and is create asset releasing The lease. end a same on administer that long-term you noise we you manage. new some lease, to downside there to up in downtime, average TI a end which a have some easy store. build-out with free is space

obviously Now bad And have any following would debt things and it up year you those given in create like but and do are you year. temporary some make noise it the tends debt. bad that just get around going but where XXXX big minor in that a benefit recoveries but more to year-to-year did we we to move zero be had from are

that other we're the us ended leased X% than we from at upside I we mean with In X.X% past year for essentially to XXXX, years fully X%. now right started beat XXXX, So X.X%, were three up had frictional also we full that guidance allowed initial guidance with handily. to you're growth. the vacancy. but In occupancy. we of some Today,

a from upside not occupancy. of there's ton left So

market business a do a the maybe we space, the Obviously local the going This of very We important of want lease we a But as have tenant reasons we're is have routinely. if it's landlord a much in of is occasion, a on one tenant. wants lot a we think doesn't and why able where terminated you velocity will business that's don't being their a to the that scale Actually, Now a there's becomes early. with lease. have in this leave of who important. of minds is just existing proactively an They meeting fairly space. that growth part because terminate of we the tenant space negotiation where do tenants.

becomes to current move your tenants, who growth opportunities very need important. able So being portfolio within

outcome, same-store do it's get the you economically, a you out it's you decision. a because downtime that, getting mark-to-market, there's easy a longer huge result, build that when term end growing standpoint, tenant. Now, economically, very a beneficial there's from to a an because oftentimes distorted yet It's space. a up And

decline that So be have in some create of through the actually what we going some short-term great And a portfolio. could outcome can always same-store. economic

the a economic you year, metric. might of detail, of positive, in lot one up is why and the year, we short So yet have year-to-year, it has be managing for might a not end often explanation, which because because noise a negative. have our same-store a best great comments perfect portfolio a some that is net will outcome. next require into helpful there went net you I lot any The just but It's

And we ends up then certain why short-term end downsides, same-store we with and made just a sometimes explaining that decision. up

you'd that? to So, add Tom, anything

decade. we've coming online. of it. at come in a Actually, thing And development I you have outsized keep Scott, the does you high not leases developing we they will typically the yields. think great, one produce at that's we're covered when next that's then and got lot but at market, mind look for because entire portfolio, escalators XX-year favorable, It's growth. same-store very also those economically in that

I everything think no another you Scott, covered that's item. But So just said it.

Great. Thanks so much.

debt number? what's life assumption science embedded to that Just clarify, growth in bad the

you want that? cover Pete, do to

progress XX of we It's we point basis $X that. probably a see million the Yeah. there, amounts year around and course around on how embedded the that we'll during Vikram

that little utilize proactive part some a bit also lease of as is on can we years some there of that our it, don't. embedded the cushion And years, within we then number. negotiations need But we So terminations.

Thanks Great. much. so

Thanks, Vikram.

go from next Steve Please comes with Evercore The ahead. ISI. question Sakwa

little know, one a so long, just limit I call getting Thanks. Yeah. I'll the is here.

given key traditional supply that three in seen space we're given a the You your the pace guys of in life talk and maybe just into Obviously, challenges we've you're developers markets the about new the seeing. science seeing of landlords lot office. coming

any So, front? concerns supply a, markets what in are on today? about And seeing supply new new your the you

as It's I'll that. there's about cover I'll XXXX, XXX,XXX Francisco, in market quick, peninsula $X.X favorable. San the as XXXX. market simple Bay in just Steve, feet outlook by in summary, area. million go maybe a starting is being I Hey, that delivered can in The another

today million square closer demand active feet. certainly, the So, to three being

Now that's a gross number.

is that like future. tenants In like So, supply being they're feet San square where we weren't million minus more demand is some X.X feel for Diego, those at. of in up lot of of staying there's XXXX. pre-leased. landlords A the in But South favor and foreseeable delivered $X.X in Francisco plus million XXXX, already or San in

delivered. be range in the feet active But all And again, about will is then looks over gross look You're XXXX, are million it XXX%. is X XXXX XX Boston in range pre-leasing at of at two pre-leasing in next XX% the projects the and deliveries demand today. at years, you three the in looking square million feet XX% the about and if our like

We do conversions million the a in that So couple the for dynamic of square total. the next And just feet much over years. delivered pretty being XX comments. total is about tried over that clear that's Class it core actually few that's as to development include they big-picture And higher on leasing the developments Maybe about favorable is purpose-built market that markets. of now account to coming new XX% number. to years two new we've the for other I a pre-leasing in next across the quicker. are three markets three One talked the point the The that two kind past of years versus A of up the the is conversion.

so So, expect new equal, And I other first XX the about of three not is is markets not the to continue. only a but that an feet the then would would that supply across surprise comment point. square created maybe that million make extension we

direct half just competitive with our or it's that or simply footprint, is So really less moderate identify, portfolio we've through is competitor development is and directly whether operating million tried go not competitor, portfolio. of XX it And building-by-building even to a our square all. than our our competitive at feet it really to Is a really portfolio? it

So, you some gives hopefully context. that

then I quick Thanks. one a follow-up guess, and Great. just yield.

have I rents I developments realize would were figure trying the costs up? versus what? to If on guess gone out to you much XX start not, which be how just gone much yield you're up today, I'm have cost your how

XX% are sure a costs Yes. I'm from that whereas X% year comment want that I more. XX% in to the range. up the would in we projects to that now on returns to year-over-year, on say are are or rents not But up range XX%

So, just the being the rents all fast. else cost have moved return improving, on market so equal actually been has because

Thanks. it me. That's for

Thanks, Steve.

with Capital go comes next from Please The One. Bernstein question ahead. Daniel

year. move -- Quick leasing inflationary-based this fixed know, the is inflation to life and then your and given -- And I questions, Hello. only away bumps you are any life of quick there and two One, more month guess. science in room costs, is from bumps? preliminary to science structure a I secondly, the rise

capital to their considered venture a -- more stock doesn't life with So have month science what in maybe Alexandria venture space does in at looking your the trend. one the mean investments for market if arm? similar move pure some Thanks. doing But you

to want and the do Scott, CPI? versus rising fixed you take inflation

market at Yes, I I and we're that today what rate the just take effectively Dan. mean XX% is. can fixed not

move escalators. to the share market to – We sure CPI-based have big I'm but to big market a it's not enough

So X.X% occur something do that X% we're not that's We to Area focused Bay bumps the not on. generally in Diego and even Boston. highly likely in get San in

second don't take see changing. to one? that want Tom, I the you So do

mechanism? Yes. use funding like that some is more trophy do Is as your you take JV assets development go a Alexandria, Dan, we proceeds what say to them the hearing use I'm would question? that

It pharma biotech would and of capital as direct companies a in investments provider the of needed. some if be more

I no, the efforts. wouldn't real your that's and that. understand finance estate people our question. is We're we're focus people, answer Yes to we going Yes, where do

quick And HCA development question other then hospital spending. MOB side, and on clearly higher the CapEx operators announced one other

if projects you those be understand to announced that on CapEx of in wanted is that with were HCA development their or do some already that based spend? increase about Just can you're Thanks. development higher development some might the incremental talking there works, in

there. hospitals We've Florida. really campuses. backlog early big had that. discussions and in overall MOBs two some This HCA they that doing in of But the part some been are be Yes. far a Dan. their year you emphasis. not this, too hospitals so for likely those and details there's already Tom. is demand But existing a them How their about – will on talked on about the with to kind they've developing new – those there next been We MOBs have Texas of need on it's in They're ones have talked we any of on for or

come. be with them benefiting development So I'd some program time say to that's our going for to

Thank all have. That’s you. I

Dan. Thanks,

have the We questions. your long. because questions name know add nobody you list call in to else the Please more take We'll going the queue. four the is

think next. you're I Kyle up

Yes.

final Crédit from ahead. comes Suisse. with Our Tayo question Okusanya Please go

me squeezing million for again The in Thanks from elevated kind afternoon. end. of starts that's development good years. $XXX Yes, the at of prior

year? we're projects this expect could of we starts if Just more MOB oriented? any or new we life curious, if should expecting it development And sciences specifically, be

I lot Yes, number We're in tag underway with of then Tayo, Vantage and starts new of lot including but finishing then one. Drive we XXXX up I and think Gateway a in try Cambridge to Callan and Pete Phase Sorento projects San just expecting in have big not that last quarter Ridge of XXXX, XXX this and with that any one team Park started will Cambridge. are West spending do a in we Diego activity a

the to majority starts new three the anything to Pete, for and vast we spend XXXX. add? accounts would XXXX look that So then of development in in probably have

about development mean, we as schedule. and towards I projects think have we've year, this projects that's have then will And right. actually would we refer that some off we back that that. you out that certainly already densification come look year No, next will talked tie I backfill to I to

So couple majority in The over the big will quarters. about talked lot XXXX. start well that's a or last something chunk of of that of we've a those really

and that see amount too. won't You in XXXX beyond a significant XXXX, in

labor management one. rising fourth again helpful. quick That's one quarter, expense The in good And everyone I CCRCs, then think talking was costs. about other

had costs even you actually You've CARES it's it there Was this Act that funding discussed XQ. your total a against But in the were labor Because like bit anything that unusual on not went little number. call. during again really quarter? well-managed

happened XQ? of what kind just curious I'm So in

Yeah, that additional as color time quite did that definitely requires our all high But we contract even labor actually above some number that of vacancies was a contract labor. over because offset expectations. was have

reason was the one down. actually compensation was So that

of the downside obviously, needed to limit admission. Now, we is that that

So of we felt impact that the revenues. on

mostly we our So in obviously, typical there's is Florida. also lunch, seasonality. but no just Remember portfolio have free

higher than of you the lot fourth fourth well just And in then quarter. little the taxes estate don't see quarter from time. off that we much bit and debt quarter vacations as So like timing higher benefited that had real you a a pay of bad quarter then things year. And the fourth third also has the much utility have every just time so costs and

you. Okay, great. Thank

people questions for is couple Mueller from time a in go The up have next still Mike of our queue. and We ahead. Please JPMorgan.

hi. Yeah,

guidance Just for a potential assume and quick what the one line of here. Pete balance refinancing? any credit does

quoting question good of I majority debt. From floating really about debt. credit our there line That's the Mike. rate talked of a Yeah, rate perspective,

of billion. debt of minus for would XX% we'll credit, say manage year. million the balance the between to $X I about think line billion or our of that is And somewhere So total and the our probably to $XXX plus $X of amount around you it's size

XX% So range. utilizing in XX% it to that's essentially the

it. Got

Okay. you. was it. That Thank

Mike. Thanks

Dennerlein question from of go with Please ahead. Joshua next comes America. The Bank

MOB I was and what low range? guess, guidance to I the on the end high curious just guys. NOI the you Hey same-store gets of

the are levels you not -- is we're We've drivers affect But flat is this pretty biggest up Really a pre-COVID that to driver. -- income. Josh, there still of range, occupancy projected then much Hey year-over-year. Tom. or always the obviously occupancy

there. So that's probably potential a upside

comes Now cases downside. and see we granted in the an to that if be increase could very out another

City So, to the big think the continue be to -- same. probably that's we seems is would always that And -- Medical two would then positive then the bigger it be and of a drivers.

Awesome. Thank you.

Josh Thanks,

We further have no questions.

remarks. session. back the over our So Herzog to any question-and-answer I'll this concludes turn for closing Tom conference

see you you soon hopefully your everybody Healthpeak. conference. joining Well, thank for in the we'll everybody. at interest and all And Citi us Bye-bye

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

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