Healthpeak Properties (DOC) 8 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to the Healthpeak Properties, Inc. Fourth Quarter Conference Call. All participants will be in listen-only mode [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Andrew Johns, Senior Vice President, 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 a reasonable statements from our Although are cause actual and believe expectations differ any may in we any materially to forward-looking uncertainties the expectations. of risk and press statements. risks A based do SEC. that on subject our our We assumptions, detailed are forward-looking update and in factors release duty not undertake results discussion forward-looking our filings to risks is with reflected statements to included in

Certain discussed with G comparable in accordance an the is In The measures our to all non-GAAP furnished we GAAP exhibit measures website exhibit healthpeak.com. at yesterday, measures financial directly reconciled have will on the requirements. also most Reg SEC X-K with available non-GAAP be of on the financial call. the

President Brinker. I'll to the Executive our over Chief Scott now call and Officer, turn

Thanks, fourth Andrew. Good morning, call. Healthpeak's earnings quarter and welcome to

me our CDO. remarks Joining fundamentals: Bohn, Q&A. will by available be our is and team Through driven are our for CFO; business today two Pete economic Senior Scott cycles, Scott, The prepared all for

health. aging for and desire improved the population,

million Demand led an for visits year. to our last to estimated real MOBs XX our estate

changing Our life diseases. and therapeutics, Houston, outpatient other for many sickle buildings are heart and tenants healthcare Nashville many producing critical cancer, Dallas, Denver other Biotech and to delivery in are attractive cell markets. disease,

tightening modest year is great Certainly, space advances have lease medicine amount expect there shape to by will with buildings push this in belt in our but not biotech, the seen Healthpeak a we driven exciting discovery. that care in next. clear, To grow, and impact, personalized and both outpatient real and to of often to in only and an impact be periods estate, drug ongoing of

and conversions in and We non-core kept XX% Our fully didn't check. new pre-leased. chase pipeline our developments funded are submarkets or

and continue we to often at relationships. XX% have we availability existing the finished occupancy with do when sign important, Most quarter leases,

advantage Our significant recent landlords in scale momentum in and second lead each sustained of reacceleration weeks, competitive demand. biotech. product. in been the in for our tier there could has to improvement positive is against small a markets public A submarkets And

results, and difficult across office. the company. had Life comps Moving Science we were grew sector, same-store X% achieved medical which 'XX X.X% operating segments. as both NOI to those same-store year in strong and despite results Full best in in We XXXX growth in in

out exceeded Our full year close rates, fourth to growth results positive quarter XXXX. the way a

$X.XX, underlying opportunity in business shape growth and on leverage great development in interest described in balance in year Offset The another we We're cover. presentation our increased quarter, of in end and that and by our rates support the and non-economic is strong from the year will operations standpoint. guidance issuance spread a credit sheet issues The some range. and high that we strong investor deliveries liquidity attractive at new Pete reflects Last timing January finished we the the by bond our XXXX. projecting earnings markets. unchanged. the that November NOI and of solid is both We're change

a recently to in have comp most Also, and Durham cap sales life of an The million in X whereas market comps opportunistic given had the maximized long-term in The value below is the sale $XXX that buildings we science market, signed at make less good the enclosed extension lease sale a was are otherwise December, creation. relevant. rents rate rents for last negotiated was a R&D price buyer. cap The two unlevered market. transaction quiet an week

be but across adjusted will returns more several in development. time that years for it's entitlements possible on core progressing first acquisitions For our risk markets, attractive the than

XXXX. our see in with sheet economy and allocation where Either construction capital optionality. as of allows the cap way, happens settle to the have cost slows. and balance costs opportunistic This rates could provides bank what us capital We'll impact be land and to

Francisco, Vantage density, South agreed a to continue has commencement owning San has agreements given Peak our were since timing A clarity wealth increase Health sovereign campus. environment. XXX% less around of in Xx Development allow the including of ago, to the changed the partner In quarters few the lot signed the allowable a and

project. to own result, a sense As made more the XXX% it Healthpeak for of

from it to aligned a Nothing conversion acquisitions. an and and yesterday structure that capital grow when standpoint us provide will if has announced with utilize peers flexible third the to company upgrade our sense the Depending will changed makes shareholders. party for more through

was like to to leadership. XX-year who and is Patadia, promoted report congratulate a would with Treasury our Scott. Ankit team. great and Pete Ankit veteran runs and to He'll to of executive FP&A Healthpeak continue skill I

We to have a from bench strong and within. promote continue

are as the Wall that of named ESG named proud being Finally, being recognition, managed Leadership the best consecutive across and by initiatives and portfolio Journal. company Band CDP's we're our includes year advancing a sustainability Street for XXth the

to results expand fundamentals. I'll Bohn and to turn it Scott on science life

we've on and share demand a the morning provide science industry project. I'll color and levels There's a science Overall, of our in with development than demand. life tenants are update. some Thanks, space, on of life I'll our our industry sector slowdown portfolio and seeking with of life XXXX from on close update an start and This healthy. fundamentals, but there Scott. an science update toward captured number XXXX, more the that actively been remains a redevelopment

and partnership biotech and has been active equity into solid market secondary and been the has R&D, open with the pharma companies for data. cash perspective, funding front licensing funnel a continues to From on

ours a in in South its fibrosis $XXX on Phase interim tentative XA a positive San data Just of secondary last pulmonary of study long Client closed heels week, the Francisco, Therapeutics time idiopathic offering million in

new market a scheduled reopen. to million week, VC later Also, invest last XXXX’s hopefully $XXX B&C while was billion, funds these $XX $XXX billion we record than rounds biotech with is of there IPO continue of this DCs and beginning about of IPO week, in for fundraising higher million $XX so successful saw XX% companies. the that existing formation trailing and nearly company to will a IPO, XXXX, another the sign than high. record

billion are $XX levels. third year X% pace discovery approved NIH The year continue the year is was XXXX to XXXX R&D academic scientific company billion, increase, quarter at be over was at provide stage the and a budget reported. through ever numbers year-end on which spend and will early to when of highest $XXX and the Public

budget the portfolio. the across new a million included leasing of the our leases feet amounted over executed to re-leasing move had science for with We on XX% of of This XX% leases. a I'll X.X which and our Now spread renewals. life portfolio, square front year XXX% cash year great on to leasing were

importance deep tenants, currently Additionally, XX% highlighting scale with XXX,XXX core with an square done LOI. the within leases of of start our off and existing again, under markets. great feet additional the our XXXX is relationships executed were to a

XX%, remains watch with portfolio the at portfolio to Year-end remains strong prior and XX.X% remains our collections at our in occupancy quarters. approximately consistent strong rent exceeded within Mark fourth and market quarter. list XX%

San Lisa's those have projects to role, work both success momentum look We Year. Diego Francisco have we exposure be had date on some in to in continue and the even redevelopments we've great modest done leasing San to on though in and as very New and XXXX, that South Boston our into

and science our returns. in XXX at ownership quarter, GMP Healthpeak In locking square lab we delivered $XXX to is our Park in XXX,XXX and life bringing life to contracts, a nearly fully feet, square space is total Cambridge estimated Boston X.X class Redevelopments. million leased Shifting under Drive, XX% greater A costs our and developments million fourth development pre-leased the pipeline XXX% feet. science

XX% dominant near core Vantage share, success Our confident as favorable market our South most our availability San approximately term we dynamics Francisco, sole and campus on three where and long-lasting remaining supply what is demand position of based we with relationships of at in markets. lease the deep, see the in market tenant remain our

LOIs XXX,XXX leases grand XXX,XXX the XX,XXX feet feet to our and Of converted feet square additional have during quarter now of square to LOI. under We point, the an that Moving square redevelopment. XX% XXXX, forward spaces to roll to this have this look and into more as already year. an success redevelopment we It's continued outstanding committed. redevelopment or start in been leased went we

We staff, progress an zoning council the working and district. of the end part the local coming step In great the also the efforts are made our first in the in with Healthpeak on be zoning zoning city entitlement week, council. Cambridge, been led collaborated vision recommendation. LOI We're project. advance direction that process other We and recommending we've for entitlements. continue to and our that This to culminating in city in we will to our rezoning look comes for group this a owners tasked community June, very relationships we've with property a working this months. Since to about forward on excited developed and proposal residents, the pleased with brought city

to over results Pete financial cover to it turn guidance. that'll, With and

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

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

adjusted portfolio the total reported per growth full For of year, of as $X.XX X%. FFO we've and same-store share

the for a Bohn a mentioned, very X.X% as color with little more we Scott on in finished segment solid In our of XX% year occupied each major me provide performance. and Let Life growth Sciences, same-store quarter markets.

to same-store quarter of growth X.X%. another we with Office, Turning Medical fantastic had

record full we renewal leases, on year feet year, for For the and new highest Healthpeak. million the of commenced X.X

quarter only strong also high-quality Our guidance. on-campus Finishing growth of the our the not midpoint to our XX%, same-store a XX%, of for CCRCs, X% tenant increased our the rate bringing and during relationships, retention deep was industry-leading with platform. growth XXXX year competitive portfolio, team reflecting but full largely advantage

for per generated of During million. basis exceeding NREP of dividend $XXX item under results, Board and collections we share. amortization our $XX quarter, NREF by million total occupancy our declared XXXX, cash points the XXX Last fourth $X.XX a financial recovered approximately in

our to continues recent competitive be advantage. a A Turning balance which to on sheet, update quick activity.

year settled million we five of we loans swapped maturity. rate opportunistically October, late in through a First, term to $XXX that fixed draw delayed X.X% the

FFO average late $XX share, at a based $XXX the equity issuance blended was Second, December, price, the X%. remaining in we per settled price million the weighted of of net yield on forward

$XXX with a late issued rate successfully Credit January, Third, high-quality concession. In further sheet sees million no a Durham our X Fourth, asset rate, times our sale we capital bond. the metrics. oversubscribed our and million value new the of we January, environment, deal in markets was on of X.XX% to portfolio cap balance a in at spreads. improve closed and to our allowing premium bond X% the ascribes challenging $XXX us market XX-year nature clearly a early issued differentiated fixed priced

billion of All-in, $X.X four at X.X%. a exposure net proceeds to to us The floating debt transactions X%. from these blended represent allowed over yield capital of approximately rate reduce transactions raise these

In we our times, a any debt-to-EBITDA maturing risk of billion X.X capital $X.X development funded, have in of XXXX. currently and liquidity, fully pipeline markets is XXXX net no until eliminating addition, bonds

XXXX now guidance. Turning to our

Portfolio We major components pool guidance of share life growth sciences, are and mark a a NOI of benefit. same from share, X% forecasting X.X%. and to lease store In forecasting FFO same-store per follows. market to adjusted to the we less we same-store of maturities occupancy our rent per cash, same-store $X.XX as a The to modest of X.XX% are in blended us have we very $X.XX are range X.XX%. is expect positive XX% growth giving to

contractual the As low escalators year this X% a by primarily rent result, area. driven is growth in

expect X% we X%. store growth to from range office same Medical to

CARES I growth and in expect during outside line growth to our store our produced X% spend X% did to XXXX, difficult store want historical important of guidance. and right we expect portfolio grants. range growth XX% year-over-year CRCs, to expanding excluding some we Our comp, average items from XXXX moment despite with on underlying in a the same same Act

and the of and an First, key increase XXXX. the million compared midpoint Boardwalk of increase same-store The by NOI of XXX to earning is Shore, Cambridge NOI the cash of driven cash in some Drive. $X.XX $XX projects, including growth development our billion Park guidance assumes

XXXX the line The assumes over is guidance credit Second, $XXX debt $XXX in is compared X.X%, expense. average floating XXXX up The expected to for rate midpoint approximately basis rate our points of million. million XXX interest of balance be assumed of XXXX. during to interest average

revenue deferred negatively is FFO $X.XX is Third adjusted impacted of by recognition.

We leases, tenant and at delayed have at Hayden one were that science one two large XX M&A. due life Ridge to Callan

However, cash AFFO and not and NOI are impacted.

which is of range year-over-year supplemental page, included We have on growth. a AFFO an our better per measurement guidance share

grants ACT CARES no in assume our we guidance. Fourth,

As XXXX. a a reminder, our on we or have FFO we uses in high-level sources guidance supplemental did page. from receive Act Fifth, approximately pennies X.X and included of CARES $X million grants

assumes starts does spend, with guidance redevelopment spend any our This $XXX assume and and XXXX. development Our not its associated modestly active million pipeline. up of from completing new development

that We the not any speculative also activity acquisition our throughout additive year would could assume be of acquisition range. occur do Any the accretive remainder to activity. guidance

supplemental refer Please detail for Page additional to of XX our our guidance. on

comment conversion other shelf We various an on closing me an UPREIT quickly the ATM UPREIT conversion. need registration let the on because file conversion, we and Finally, statement February anticipate including documents, prospectus. to XX, the updated of

X-K see course the to the Over expect you get some administrative should of following days, items filed.

Q&A. for With the that, let's operator, open line

from first [Operator comes question Scotiabank. Instructions] Nick go Please with Yulico Today's ahead.

And I of breadth the on little the is, kind a bit market. pipeline how like right looks particular, now? first guess Vantage, I Hi, in if South thinking now? of give underway leasing guess, you of in about rest detail getting lease, morning, Thanks. the of what's could right just timing San what depth Francisco for more you're And everyone. on and good question sort that

Nick, it's Scott.

So with I'll start there. I'll Vantage. start

we group be building they month. first of is to the health year, a tenant, That past pharma existing and occupancy this this global an TIs know, the later it tenant. produced they peak should started you portfolio As XX% taking

our hopefully the South the in the come those for we of more feel in XXX, size. get and have building, but there. prospects multiple doing general. detail to about It's other to relationships market our history to do development execute of the really With San Overall, on our given share we good too activity early deals, tenant with deals the on probably ability and in Francisco portfolio our leasing tenants existing process varying

near-term and We continue demand to the feel about supply good balance.

competitive million is here in pretty bulk the about portfolio. the the we at good large on And XXXX, which our those XXXX, but market versus leaning with is come of and on And first look tenant XX% relationships when set there's Brisbane, about kind and few of in market. which feet is about to February market you X. South a our true sitting staff feel that being in and delivering X.X preleased, square solid projects the Vantage in There's Francisco deals share again, space that for

Scott. Thanks,

Just second question is on the acquisition market.

about a more give would seeing that? you company maybe if to type If of the Brinker to of in you feel, stabilized would and kind cap acquisitions can Pete, what at Thanks. terms think so, you're Scott And be about little how all or rates bit product. fund with of whether active how plan opportunities more and

the In is sheet terms of shape. balance how in funded great we

The the So acquisitions higher likelihood ago. quarter fourth months it really six we not months capacity really have I'd much is have say or today was do of there. than doing happened. XX would quiet, been ago

anecdotal, in a but the more were segments cost a minus, bit points, rule. higher like year higher little asset, six general capital IRRs rule, for public of as range today, probably last X% given and the a so in has a But changed XX on feedback the private ago, of just lot just or or just more that's XXX the bit general depends obviously, X% months. underwritten our a is in plus companies two as basis core So obviously, much to a how

which rate the have the the somewhat rental pretty tenant profile misleading. timing for as are well just Harder could the that make below questions peg so amount far the rates of science often to initial mark-to-market as given just cap life market, the cap submarket, around, you rates

do basis. So week, asset a Durham sold place. we of a lease new really with in two market. rents last to buildings that kind at the long-term Those are in lease

tenant. cap X pricing, good given market, the of lower a in profile obviously, was So pretty today's the premium probably risk thought just we the demand

general are pretty a acquisition hopefully reaching interesting. get to people feel but mean is the So market, I relationships. across some that which company, you for gives deep out, starting there's the we

I expect could pretty makes capital So if would we of XXXX, be see. active in cost we'll sense,

Great. Thanks guys.

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

-- referenced kind guidance capacity debt position, morning. being is does Hey, just commitments, balance the good sheet Scott of the your development. predominantly million $XXX but your in you Scott, great you million of just a fund to Brinker, used to assume capital existing $XXX

what's on on I'm medium-to-longer thinking curious do funding acquisitions. sort pursue capacity of And just to have So how that much basis? a term the additional you

Yes. Austin, it's Pete here.

at Scott year is did in EBITDA. to We our great As mentioned, net the shape. times balance X.X debt and sheet

of could acquisitions, have additional Since do anything a pretty redevelopment pipeline, or recycling amount and to than more require we a do that. significant ATM. but development accessing we modest So capital the do would

accessed We time. some quite have in the not ATM

about disciplined own how as NAV quite pay consensus be We attention will our we We do that. about think internal to as NAV. well

at right markets. think to is stock like Our the I trading now, access we feel appropriate it's not equity where levels

now. more ago, But of said, and we to assess do not as at But how base than we'll do we today accretive and think we're any want way acquisitions. feel most opportunistic set we capital look that's whether six would cost at appropriate acquisitions. our that looking access our for we probably ATM to now to guidance the level to right the does accretive Scott continue We case XXXX did assume months right

you starts sort do about of in starts the year quarter, could have. as how you're how attractiveness the we have returns this you given viewing next how of to result forward? of any half risk-adjusted But you to talking think going of wave back a much the a and last And should And potential in spent pivoting look today. the lot year, that about helpful. pipeline guys clearly of That's of development time alluded you

Yes. three pipeline Well, the big and is I our really it's within existing markets. submarkets mean pretty potential core

of cost that on adjusted, a rates sit less in in in So as where certainly industries, we most enormous our sense. we From we're all aggressive spread advancing capital position for markets had three make probably spread we've well when versus relative and be development and cost the been to five year, we're between cost in there return entitlements pretty we'd development years of proceed cap is across acquisition was past rates so today, those science. and when than have if of think you acquisition I to medical as as office a for cost capital on of realized Austin, capital last cap down the but life return on cost

point more a that's certain makes turnaround in at sense makes time, at sense and are points of development where points value-add cycle, there more look in it the acquisitions or then time. shorter a lot to other But

There's So per be development as but little see from uncertainty we less starts, what lot a a where year anecdotal while for been sit the slowing starting to range today, XX% evidence well we're on aggressive that costs of to as but change. really look like. new down. in now, about could development They've construction XX% we'd that, escalating that's feedback

So that a difference. big would pretty obviously make

sense would that's land our to start. a if when it makes valuable I asset, something for view So and as us bank

today move will... some forward? what premium to science sense make on to the give mind would yield And you that mean of in a I enough your of deals, life

One depends things. it major really I on mean timing. just is two

a more So a XX-to-XX-month development. than risky is development a lot XX obviously to XX-month

line what or shorter makes the invest you So an impact is you actually the that time make medical capital. have office, to when in an and we impact. decision a do which has when compare you between much

have today, than thing that the the is cap would past. And is in just to other spread been And it acquisition spread lower then rates.

realistically. going pipeline return exactly a to unclear cost. If today current be bit settled. X.X% to Our than rates And projects, have were where yield we that on it'd start a acquisition new it's probably construction is cap about on less

XX of acquisition to general, to relative I basis the it's XXX the think spread development range. somewhere in in cap So point rates,

in lower a have life months XX-to-XX-month MOB you leased premium that needs in fully delivering than XX risk a a If science. spec that's development

that gives of view general So how you a hopefully approach just it. we

Thanks That for sense. time. makes the

next with BMO The Sanabria from question is Markets. Juan Capital

Hi, good morning.

Just the historically has a -- we in guidance in could remind just impact anything is what that think and the X% if hoping rent X% to long-term And in you was into the for what to ad us 'XX what MOBs, growth? 'XX typically the is bit. of the kind if on for of go contribution assumed type

Klaritch. Tom was in results that the is City was We growth a range. 'XX. ad the hospital the kind Typically, X% just of this recovering at Juan, did it seen Part grow significant we've Part pandemic. have X% at in the of some great Medical to items. onetime of Sure. rent from

given little kind higher we of the the So growth we XX%, that's will assuming now than a we're for -- big that in saw close bit to right X that think large of 'XX moderate plus, kind rent 'XX. growth ad that

that's is in a down guidance So year. our the for for bit number why this MOBs

and typically of obviously, average the expenses. on mark-to-market are strong quite X.X%. an our to from escalators And And have kind range. net at from comes X% then escalators, which -- mark-to-market offset X% and of We some in growth you of bulk the the in-place

our 'XX any on just skis, would for least in NOI so just then we at details that for what 'XX, of how into curious not development you guidance on you sort you fantastic much in Thank but details And can development currently, of kudos give get for and insights provide development whatever curious to on to contributions be you, expect ahead 'XX, guys of but incremental should just contribute comment. NOIs. to

last we we've start and November development out in Yes. the investor project, Juan, giving yield deck will year, did by included that thing here. starting it's Pete in One I point our is in supplemental.

going with just development forward. That about me said, earn-in hope, the we contribution. assist should talk that So let modeling 'XX

end is of growth A when in of the coming my say phases. had earn-in. the development of very projects you three piece coming did I to shot relative during chunk still million look then There's small in that the of 'XX is remarks that Park NOI Cambridge that big the Drive, this that's Boardwalk. prepared at We that's delivered earlier 'XX. in $XX XXX we XXXX, at year, which have And very year. course a

the And you on around blended that think about yield was X%.

cash So perspective, another NOI million. $XX a we have, from

will of said $XX I earn-in about the they And million that growth, not that active right $XX mentioned. now our million of from NOI projects when So delivered is I year, yet incremental X on is three then deliver and pipeline the well as Ridge. those the has little you've the $XX Phase of over course that got And less Nexus, Sorrento Vantage NOI also Gateway from then a cash Calen contribution as and million. than

'XX, the So to driver same-store significant balance growth and the 'XX NOI of our within that be guidance. that's just of included then would that's really growth,

soon because, on have some we'll your how yields exactly the question little But me coming those in that Around year. interactive range. to phase what's additional for in. as pipeline I I It's you projects aggregate, of too number the certainly, the the And course year. gave earnings is that are blended saying 'XX, active some of a delivering this start the of on mentioned, the mid-X% would pipeline during in in

in, So due the kind XXXX. would that into what in or balance least back can at earn would you of be come

it. on pieces enough you gives that hopefully, So

perfect. That’s you. Thank

If I'm question. can another live, ask still I

notice operators line Juan, we that just crashed. the got

you. for So we'll we're the I rule still here two-question and guess soften

CCRC, of eventual as had those an kind to you've conversations interest curious or foreshadowed maybe just you any assets exit. any on in regards with Just

when So transpire you pool latest interest that anything just what portfolio? like? and on the to thoughts for or exit buyer -- looks the how may

Yes. process. we're we last changed. I a hasn't said mean mean, That hire be quarter, we'd a running broker, didn't Juan, opportunistic. it's But Scott. we not I

expect update. markets, the but any XXXX, there's well. updates of wouldn't big continues see. to we'll now, I in the business financing perform But given state Right the it's no So a just and portfolio,

it in the interim. to So we're happy hold

you Okay. up happy for to are I'm again it. continue if guys

I back if the don't not...? know. operator on, Is

come going next the question We from Sakwa Steve Evercore to The could question. next of today ISI. is take

you in on about happened Scott, funds wanted circle color from opening the to Thanks. advantage. overall back life just the to venture kind little what of to wealth guess sovereign I kind Great. the if just comments science. I change continue up maybe your provide a structure of appetite And and come there into to could

Yes.

door progress led them We by with next tremendous successful have our getting a team the venture redeveloped Point is Scott up. those leasing making assets Grand, at ground, them Bohn and right on

So campus our A density with a changed, in massive partner the in Healthpeak. is sovereign transaction allowable a change really lot so future up X.X over happy That there. the pretty negotiated in the interim. of summer, though, for really dramatic to development, pretty feet investment now was million the has that square opportunity

would of we less X ago. cost, have And it months Healthpeak, in return we earlier, on on I would, mentioned terms than at be aggressive today starting been construction new

us more project XXXX more go sense, flexibility. into flexibility of moving that it less likely control would to forward. was a commence quite given made venture because joint we in and And the bit So us, that, to that it it's to have control and for lose important

Okay.

to lost that it interest, like are likely yields to the forward? sounds earn pulling haven't back just you're guys funds wealth where go given less are So just sovereign you

Yes. mutual that I of mean decision. a to it yes, was control project. But happy we're XXX%

your felt in I hence, has just competitive to I Pete UPREIT, put secondly, have it guess, you you having a disadvantage help desire conversion. like I the on lost UPREIT Okay. then structure not here? or to deals and And mean, been the guess, that

portfolio mean down which in to expensive the did XX the today, reach are campus one about Yes. ago, on structures manage. pretty months I Medical we've X legacy we City cumbersome and got or X

would that we that expect would I yes, structure So able going use forward. be to

Great. Thank you.

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

Thanks taking for the question. Morning.

two. Just

have Life but you and X%, I’m this, go particular, X%, through us guidance conservatism in? First the maybe much sorry you that how Sciences, to to expirations, -- rent or the you've missed you baking last, started, in fewer I you in at and are can occupancy of then want occupancy X% through maybe. Can that I you the in, spreads? are just back around just if four or bumps I say, but think, just us typically walk and terms baking walk You and know three I exceeded years. what but there,

we've to me, I asking so it's that in Vikram, years, row. five Vikram. had got you as X% -- But guided to Juan, And years X% five a question, Juan I a adjust. not questions excuse the good previous to noted, used Juan sorry.

of on So a that. we consistency lot had

the last leasing of had contributors, significant five activity our us year, allowing was net we One still over though the to every years pretty that increase single fact occupancy. the

is at XX% occupancy good to weighted not many But news than lot tenants in across higher have the just the now. average The lease the the this of a in portfolio and how room right portfolio time, term. we bad there's point really at that is news given we're go

for it's So guidance low and when have within within focused the X%. rent escalator, pool. around do embedded was all on maturities, year, is have our that which, guidance. modest benefit Not we mark-to-market though this primarily our lease same-store you modest look do average, on some at of We some the

biggest and name within redevelopment one. Point Oyster is Some just to of the our Grand Point that two campuses, large

other to the before, year. bad asked to the X.X%. it, to the beginning And that's on course bit you little markets And a the utilize thing it, see for of time, that in debt. debt the a debt tenants. this just very the within to So guidance think the little extent X% cushion all not of really the benefit been within include It's the in A of don't need And do year bad I we've at early life bad the or that we same-store we that would point about although our deceleration significantly portfolio. reason year. would of to I at pleased this our comment certainly a be for our improve you've we the asked don't throughout capital add science

range gist X% of really our in that the So that's X.X% segment. guidance to

either. that rent free and I with mean taking you a long-term it rent. free Development sign always comes the benefit redevelopment, we're -- it of not lease,

coming obviously that some a at through absent issues but see overcoming eventually of this redevelopment of from development a generating unique lot that you NOI So it's portfolio, year. all, we're all flow not and the NOI that's growth that will heck benefiting that same-store earnings

follow-up. helpful. sticking And you, Scott, just That's with maybe just, a

as of call the the gauging the how time, expectations about seeing And can you're into link that and long-term maybe of that acquisitions may development executive as or on types are you for give maybe more the team think first to terms what mentioned of color feeds it more development. You in appearing attractive you that the beginning opportunities, just metrics on specifically over sort at acquisitions than goals broader pricing what be altips for you compensation of call to Can if you us IRR? pertains [ph].

of metric a don't mean return, on have total growth Yes. I around we lot and shareholder just But acquisition metrics leverage. focused FFO obviously, we have volume development. or of a

lot of we're to So going if do accomplish growing objectives, a help us it. the those then can company

not So five years, it's overwhelming a made new sense development. for

acquisition spread capital as cost well. relative spread our is and nice a to easy basis bit to quite spread decision rates was The today. is of It feels a XXX-plus there's that like points pretty a cap down

really big is doing commercial financing banks that But anecdotal. yet. of secured the Some aren't

big which are make portfolios more things can harder trade, interesting. So to

But not buyers. rates is two LTVs basis least XXX a seen not sense. than saw banks of a And to at that interest weeks impact probably if be strong X.X ago. are bond buyer are in the have a levered execution levered are market pretty you really down We're Some in the huge touch. That obviously, regional the traditional points the on would you XXX starting what higher years more ago, active.

earlier, of year, it's like cost early as higher it do we conversations So feel In a just big make sense to capital there's relative it's still could private like equity, whether was that counterparties, brokers, have I quiet. with but really quarter, acquisitions the feels the the likelihood our banks, it mentioned had we LPs, fourth year. the in the this

of activity more So for years. phone not would have the to a and couple But picking lot much of than and that last get actionable are things what said up, calls on we're happened. interesting potentially is we starting more

you of non-core quality where life more Would traded kind could that, I versus core, assets -- -- a non-core today mentioned clarify think on the X. can if life you just like it that higher was I asset give sorry, at core? pricing share sciences And color just any quality sciences in not us are you higher

durum I correct. the relatively a because like $XXX assets -- closed, million. directionally just But I'll buyer counterparty I cap done X in ours in but it's do is the they've an a mean actually at that portfolio think Yes. small my much of unlevered best, we've some anecdotal but is done at of still not It's it past.

know them we So well.

had of But a with XX-year a couple quarters we lease Duke ago. signed extension

in not it's So more work much on escalator there's And do top the percent initial X% to cap of X-ish rent. rate. a collecting really

highest line that's earlier, product the X% unlevered when we So for the that that in like our price started or probably segments plus year more with plus said with I quality today, X% minus to seems got of probably up the expectations minus IRR ago, was X%, Durham. in the type or and a

kind we it to bigger of deemed that buyer what's willing was as think was the a strong investment. do just collective a price maybe that rent environment a for a price a Now low-risk type pay given

you. Thank

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

Thanks.

anticipation think I to XX ask question my just I'll I wait Juan. with like seconds because that

because I general costs structure acquisition spread a the now. driving would just I the have just I also on have may and I because get cost capital thought narrowing the But with acquisition it that a gap on of and to still development that If interesting I moderate this, starting more on on year have on. acquisitions want have more what Thanks. can some that. versus sense detail conversation making would of of been sort that, but last between to to based of development? is understand declining the side. So have cost is conversation, the and advantages spread so development you

to take the are just changing LTVs cost happy change obviously I'm acquisition which Yes. down, is that expectations a one. of cap cost of borrowing rates rates is Rich, I capital. for equity, driving are return what's lot up. Risk-free is mean, higher, in

is you appreciate. straightforward, sure as one I'm that pretty So

row side, couple a more and a development chain the been years for lot demand. costs up now, On just or of have a issues in given XX% supply of

the return continues if is cost some in up, to to keeping cost. a compression putting change a As the XXXX, while but obviously in a to build which change bit we're exceeding not costs, result, construction on climb. on And starting little that's rents for

Now obviously, cyclical. it's

So we things over that's of time. where today, our see in will both we those change Rich. two the from But sit businesses, that dynamic core

on this the just things or seeing of on that UPREIT the then road. Is type well. follow-up know versus side, UPREIT of give was office medical opportunity that terms medical on real-time some -- some the conversion. Are you Okay. science, you in -- more color potentially down another could have perhaps using OP you I the office sort or but you day be missed opportunity it'd structure. sort rainy unit the a of deals more life imagine the maybe question UPREIT set Great. as of I and in term And maybe on optionality But near more is for

Yes.

that possible to it tends speaking, that's more likely that's we could more for in which, are a as group to examples certainly to doing life envision could individual going see life Rich, we think science it's I small more the projects. science be are it's life owner, used be but big to units It being owners, well. But generally likely, applicable OP science, that office. the medical be there more in institutions of

individuals? even a think more nature? to health willing and systems OP And standpoint do be do deal from of would that see Or you hospitals the of on it taking units, could you

see. I and really for This pitch little a have it equity from I or better that to idea. a our to obviously, perspective, us effectively but outcome allowed mean as much in could ideal allow counterparty. we'll But that the antiquated idea. happy didn't both requires mean we're wasn't in aggressive different the use that us could pitching be a we it sides the bit place the structure price we different Yes, would risk model, us the Obviously, is structure well. downrate more for quite an the still be execution counterparty the far a is for with.

great. Yes,

very much. thanks Okay,

comes Ronald with from Kamden The next Morgan question Stanley.

about by the I just have comments on of back $XX.XX the on I a one uses. second deck opportunity But out total had and Just you really I'll disclosures, XXXX. sources guys put going the two sort the was quick which really, the -- ones from me. and to helpful guidance about peak are the think first if of NOI

comparing guidance 'XX to And that cash. $XX.XX sort on so of I'm for the of

at that year going So need to a XX% sort XX% there. get suggests you're forward, to a growth going of be to to rate

sort that get Just better it post if you sense sense, guidance, about how it. about still the those a makes of long-term guys trying thinking opportunity worse or to Thanks. feeling numbers feeling of post are

it's measure did NOI page. typically, And not a intact. year. Ronald, I a supplemental great what we can say, Look, growth We cash within question, would our this Yes. is firmly guidance is that story NOI provide

the same-store pipelines and portfolios. we as our be to as We forward earnings because to put about significant bridge will continue still development provide guaranteed. have pretty in a did year at on we look across earn-in we next what do when wanted year that I that deck. well But before, development should nothing again talked the growth after is able you the Obviously, that going well consistent and our to active be plus to portfolio, redevelopment our

economic perform believe environment, about And should three when they in, the irrespective we think segments the well. you we're of

items NOI that story of that was So disclosures the reasons we line in year. actually much our supplemental intact, feel one and to like additional is some we growth very provide wanted this

I year to for going questioning and really I'm this just sciences. today, sort question is which down the at that back low I than is, given the potentially next thought sort schedule, the little bit Great. basically that Really looking And stocks at see lower life the for pretty same-store small guess a helpful. guess people you're year. a of was peak rent maybe then expected. of occupancy, exploration the getting you're bumps Xs I

good. X.X% that X% past which It's just years of was for next the there? a sort the normal, So it's of going pretty if you than of for sort will, to new the Is sort couple. still to of slower be the is couple takeaway it

I range Point, Oyster mean amount a in redevelopment South into this the fair going Grand San both is it's Francisco. and and year right next lease Point expiration probably between and of that

mark-to-market That's the overall a So that that of Present comes is $XXX $XXX is the portfolio to gross closer value number. million. same-store. probably range. But in across obviously, million out still

lease mark-to-market thereafter. are and XXXX biggest in maturities the and biggest the But

mark-to-market market point. have So then see at what grows relative with And that impact could escalators a rents obviously, happens that reacceleration time contracts. you would opportunity on whether or to our an over

Right. That’s just Thanks. for me.

Citi. The Griffin with comes next from go Please question Michael ahead.

Thanks. Great.

maybe the tenants rest in On the like of what's that are momentum Bohn, the mentioned space you of you're needs, that remarks, guess, of you're be LOI helpful. the and And leases under in concessions, for would seeing when anything asking then terms for XXX,XXX talking what your prepared I demand them for year?

Michael. Sure,

are off I'll there, But demand record past -- like core three in highs I with at of pre-pandemic active be and mentioned. strong come numbers with the all we've done, in the the market. to a few years, low Grand they're done getting markets. our Pointe campus. of levels line in single-digit users certainly markets in demand the as vacancies start Deals So, lot There's kind continue just

from mid-size with tenant a an hold. wasn't got a think well, there's -- and put I where I demand the say large several larger say that think deals against I been that on I note as necessarily up clock would expiration perspective would deal one

will the those into those come as demand markets back numbers. market of the continue think I improve several to here, to

still new XX% in investment and fundraising I the with drivers strong think remember, the too, demand incredibly are in index, VC mid-June. NIH biotech to funding increased is since biotech. importantly S&P of fundamental

So, I six for or off we've very seen secondary -- with the some good so, we've available the markets capital signs now improvement, which well had the also months well steady we've encouraging. There's said, IPO companies of their in seven XXXX week really valuations in are fairly And still the past is as highs, market. or in data. good

think what tenant we for. and demand pretty are the tenets So, where concessions heading things looking on standpoint, a feel good from I that are

seen concessions haven't a big We and good, product. uptick on well-located

the but deals I may spaces get companies type get A least a market a where you to little turnkey build, quicker. suite and are smaller Series at think spec type some bit those otherwise may with of a require more have done

So, your little kind and spec those of two. tenant I bit the a a view with sheet as of

good spaces we're at there have new are profile still on building look credit put bigger make that and some a shelter larger take those out are TIs those who generic deals spaces in those a at looking strong. certainly We the of different build pretty to on smaller credit going if or space. the sure or that we're But tenants

Great. on Thanks. revenue a as I little tenant the deferred if you give color a the was of more improvement could delays. And result curious

I you there obviously occur that I was a future, great. more to And the be this this, you mentioned had something Or predict to that's any know guess, in M&A think road? think but see I could And would we do it the to down related one-off? of harder do color activity. is kind

I'll Michael, it's Yes. Pete. take at a that. stab

XX two spoke push dates are occupancy is with project, redevelopment main yesterday we where those. were initial to a Callan other you to recognition regards issues project, when pretty is this the and astute think out on Hayden year we the I back point that revenue our one Ridge, development the

commence, Nordisk Myer, of and time with other by commenced lot actually heck campus. commence. this the Actually, own just cash they more our with bought Dicerna, will they turning bought rent. to those Hayden a has Bristol point Dicerna at their They've the money lease point leases and in into are one Novo money invest will decided and was by who We have who one XX was paying a

we little but longer, are right complete, credit and rent it's can't bit upgrade So FFO cash a receiving longer that just us, to we for into project a takes now. quarters the recognize great about three

gist to basic Ridge, a Callan spending that has wait then until And Point Bristol So would is dollars sublease acquire decided the Turning it. they TI that's that on identified. to any like subtenant at and of Myers space

we're this point of pushing as in the occupancy conservative as to initial at So dates a just date time, out possible.

As M&A, a generally, with I of to upgrade. are credit to pluses about lot regards think the there it

that received don't the cash credit minus it's we be this cases, when metric to because versus metric. another is minuses great when of a timing a there we such both recognize it can in a one can I just in matter know we're of sometimes really and rents getting recognize And upgrade it. the

delays don't occur. sometimes, So these

do Sometimes just transition M&A process. occur they and through the

overall the but and your sometimes So sometimes it's works hard are, tell doesn't. in it it what trends to you favor

Got for you. me. it the time. great Thanks Well, that's for color. That's

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

your tenant-driven come one might potentially in this just on follow-up TI Maybe a What's ability from back or event that. that delays, year? get next year that to that kind of the is something $X.XX

Yes.

later really depends the With because back are I upon highly subtenant. beginning start think on of Ridge get that when to larger the we hard it's to Hayden it Bristol confident the right, a that this Myers year. Callan project, say, we'll identifies XX two,

aren't our over that recognize NOI. beginning this conservative in is to lease to it a most out cash So the to FFO term shorter recognize But we do XXXX. get I way slightly we the to of the it think the we've year able recognize earnings recognize versus we in pushed that date the important that

on takes recognize so from delay a XX-year recognizing would modest FFO year before it you start over slight So example, perspective. a for lease, benefit. that years, a you takes nine that it if if FFO,

you just TI recouped done. to doesn't begin project So recoup get after until It that do eventually it. is

guidance of any your include that coming in XX does Hayden total And Okay. back?

Yes.

So about is million $XX that at of $XX XX I'd Hayden. million say

maybe then MOB guide. on the And just Okay.

QX a what year? come year, if versus I and high like QX of correct, And this then this that you you recall end of that gives low think guided the confidence QX, do QX I how the I to with the QX. you range? QX kind the get ahead last out year last think Curious well year, end of

from Yes. is as escalators. earlier, year, This said X.X% Tom. the we This I did benefit,

anticipate So last higher started when out. number that we we didn't year

fact and escalators the X.X% fixed where XX So CPI we points given jumped basis continue would XX, is that up that our expect to about to the range.

So growth. of that's, driver the again, biggest

in shift The up other XXX basis more recovery is from leasing to XXX 'XX jumped from thing able benefited leases we were as to some we our to about percentage points gross. net

at were We XX%. be we kind 'XX. of in expect don't ended but So year, a that over we growth next higher recovery that to number. about We again expecting at percentage XX% little expect up

So X% this that's in putting why year. X% more were the out we to confident

but have pre-pandemic better there. we 'XX. we can that benefit markets we obviously, some are from are other hit much the We'll growth Medical we opportunity. Parking levels, in income still of our drivers City And than back still to up some have below. expected. some two does And get we Most of

So we could see there. pickup some

So that we're be little it pretty with now. right comfortable think could a but conservative, I

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

one model guidance? might touched but the Thanks questions missed of the And then have of that was drivers any the there here. upside last higher guidance, might the taking everyone. portfolio for one, on just relative Thanks just my it, you assumption to and within -- this. still growth have for I again, occupancy or the

then separate question. a And

of into to grants You is, that it the question receive 'XX haven't to this assumption in stone just 'XX not is the from have grants Or no the there I it guidance. any some in year. Act the probably you you're in $X.XX FFO versus set for potential and CARES baked headwind guess 'XX? pretty some, receive still is much going

wanted Just thoughts that? around get Thanks. your to

This this. excuse the Act Pete. CARES team tag grant we'll I'll Steve, CCR -- is question. take the me,

expectation you Act in which CARES know Act X.XXX a which had down. we grants not $X is to I that are do could receive could, wanted down CARES we just this year roll into So get that that we the year. benefit this million guidance. is FFO was our that's we some? grants, that, point X.X I any baked assuming winding in about last but at not we our to Sure, program $X.XX. And time. said confirm is

be upside to So just our it would numbers.

I'll MOBs, to regards it Tom to Klaritch. With turn

Sure.

take. that XX% Same-store XX.X%, of at On is kind occupancy, right at give occupancy the historic you occupancy look our range. run if XX% to percentages, we or now

down. a I XX, see think Overall, slight XX when at from we some year, occupancy each it's points, look So up bit growth have increase an our occupancy. benefit, basis has of to typically opportunity or a only but But either little you

but earlier, escalators our really comes the -- growth of renewals. So I as said from in either the bulk or on pricing mark-to-market

Okay. that's grant, CARES the on That Act transcript. live $X.XX the

So just in hopefully, to version of the I that the will want mention get corrected final that. transcript.

Thanks. So I'm glad you that. corrected

appreciate that. I

accurately So the the but down, on final roll expense it's interest make sure regards to X.XX with just the we'll transcript reflected.

Thanks. it. Got Okay.

Tayo The Okusanya is with next question Credit Suisse. from

data, being financing Yes. context on earlier about appreciated. for good Good that comment you Yes. I morning. available have that made is science The still companies life think

around. patient could implications from a those quite data. that, them of try kind maybe Could financing, get got closing going in just maybe results basically, guys got what still curious, companies are to just demand turn companies as the to cheap kind being there shop, up time all lifeline not mean, with describe of things where some today Just what's have and kind like who other the out market? they not of a whether they're did days VC that to the I of is in you for things well and happening good

that. Scott can take It's Bohn. Sure. I

secondary the that the offerings past six nine I over to that positive I maybe call of it, thing the weeks because negative or just have really it the would neutral past slightly decent past, note one who little out This a over seen we've So anecdotal come data. more data would to over companies two, it's in several months, is bit you months. pretty secondary but couple some call one needed market with

there. So development it's an interesting

this enter to We've tenants on of placements. as debt via on overall. it seen there. in in with agreements licensing there's who a companies into pharma. pretty have raise pretty to also And seen industry be not in position capital, to also tend are capital We've and an creative They in ways raise private number that resilient like been kind public offerings times push of market short several a partnerships a pharma or

M&A So like it focusing kind of are and some things that. those companies maybe sounds more of like on

M&A licensing reverse and mergers trade partnerships molecules whether or to mean or pure it's programs I or Yes. of out just pharma.

simplest the are for those think situation? I best and tenants path in that

of XXXX? a to to of that? created 'XX the of pool Okay. is in result talk just the That's But helpful. today, to some again, pulling back helpful. of that as and things a What having your line, nature. same-store doing some development, about And some again, being things moving also then the bit earlier out, redevelopment some what drag things them are on contribution of purposeful that the And the of potential you is that on is redevelopment impact numbers the guidance comments out going just could side little earnings the life numbers bottom science you

redevelopment it's really It's big two Tayo, Pete. projects. Yes.

have as well It as numbers in redevelopment addition some or appropriately we the take projects, immediate really that, the point we Oyster but to those of redeveloped doesn't same-store. pulled do the on them it's point. out We same-store brand have any campuses and impact the because

regards before fact that lease during and on to be redevelopment with we the of even receiving with lot a then success little them. of how long associated rent deliver leasing redevelopments downtime a the downtime it there typically aren't had takes up. period, up bit is We've could to There we

income. that's but the on the rental interest get do benefit, yield get than the capitalized lot we a we And typically lower

redevelopment a talked of as result from So campuses earn-in -- deliver, me, about have earn-in period story well there Oyster period from as as there development excuse time, three-year redevelopment Grand embedded over also growth we the there Pointe actually the that, but we the the NOI And as of Point. when well. certainly in is drag those as nice is during from those there a do a is

there's not little So non-same-store couple see a but earn-in into on projects no come to bit same-store next have redeveloped. online. bucket assets do those is they're noted And of drag go as a same-store, real expect redevelopment, impact there while you during the we years some in of are they because those

more one attractive get Got Again, you. that now talking nature? life And bit if than then that little they to part acquisitions you more interest I related a process, or look last thought you on science indulge desires, about ever of the global U.K. to development me. something the guidance in any would but in guys have of do acquisitions know may markets ambitions numbers, are not acquisitions like as no I

don't the private us government some international done, global of a but a high put wouldn't that much to same over I R&D list. market, to really It's be party I that would of is our There the investing funded office wouldn't that's medical mean more much government have on is list No, standpoint. of countries healthcare side, priority model. product from so a time that which years. most on pay in the is say that format exists reimbursed, for-profit I especially other doesn't and that the really lot interesting

to see scale in in to here it dramatic scale form lot sense, in U.S. I don't of got a advantage, have segments. a competitive our a pretty make we We've can and the two do to try opportunity It opportunity really

So we'll stick with that.

Thank you.

question with next is Street. from The Pawlowski Green John

Thanks for taking my call.

us Just one NOI me. the question for CCRC, could you guidance? to underpin growth give X% XX% expense assumptions the and revenue Pete, that growth growth

occupancy high stabilized have XXX points of Maybe just it, and about be occupancy more more Yes. to of stabilized I'll to call to NOI there. get level that. a than levels still basis recapture We even

and get to of half and NOI a has a rule year think that benefit significant 'XX, about I that in this good thumb of probably is we it back year us. the next balance pretty

kind with of will this right dealing are year costs say It's is are we full one market a high, labor labor still thing right? I pretty now. stubbornly

more typically a been, still a of and those today elevated than that's wildcard. costs bit are they have So

perspective, is an XX% rate And it I year-over-year probably to as we say on are seeing then would towards tracks rate closer what higher number. a growth inflation

So occupancy a expense, drivers, couple remain other rate just those growth, but in items unfortunately, main elevated. labor, the but are growth line really not of

Okay. don't moderate presumption expense really issues all at And in is XXXX? the the

mean XX% mean peak. labor is from the they're down I contract better. I

have down just So workers things But bringing I more. mean, that number part of is paying improved.

the despite $XX, the headlines employees very around $XX think still part, hour, the So labor, competitive a service I that's making most for level market. an

food come strong pretty seen down, certainly, utilities, insurance. have labor we but cost inflation, So there's contract still

residents lot that X. reflect XXX all We're higher of margins XXXX as mentioned, occupancy. quarter a big the January throughout we'll a in Nonetheless, this we year, margins because aren't in of a that occupancy. than to but as gets we'll improving. but opposed date them fourth spread recapture we basis growth out our So of are couple rate to points next are increases rate the improvement some anniversary get of the year, on get good going rate and increase Pete over were

in then last to far what point we're able and earnings strong that exceed just but this, $XX And you million continue recognize cash is, about is XXXX. in I to be really think know receipts

rates actual cash to what and we're a So entry when about fee growth stronger are because recognize both of amortization you than year-over-year via lot results our gap think that XXXX XXXX, able model. in

Yes, for Thanks the understood. time.

Balasandran from comes Aditi question [ph] Next The RBC. with

up One the demand of general supply few science for a expectation and growth will and costs, be question given me. rent XXXX? in what But to of market your XXXX that in life appears major likely normalizing is pick

take This is one. that can Bohn. I Scott

a three macroeconomic probably kind mid-single environment. XXXX say here growth challenging rent saw the pegging is as today, sit we all XXXX, bit markets growth I'd bank digits. given of across the in So in in we

rent a standpoint, capture We will science with properties always bulk goodwill type demand. to sponsorship of perform rents located continued with from the in product minimal well the and well that tenant A experience see doing locations on do concessions of this products, currently life

an don't I markets slowing the any on would impact probably Thankfully, is have So of in secondary or really any much product that persists, the in that more portfolio. of in product submarkets, market of say rents we be will there really

But are other hold good will product. in I up really from and things well pretty landlords So think generally anecdotal more and brokers. they XXXX

Great. Thank you.

The Baird. next question Please comes from go Dave Rodgers with ahead.

on do those sheet debt wanted big rates Hogan being balance for reserved I a positive. ask, the you to just curious intend for apart. swap with if Daniel mentioned strength paper, just short-term from further about new lines do was along Dave. is anything is XXXX? the and This just that move that continue Or remaining I commercial long-term you versus in to to

Yes.

the I understand I question. think

curve think you and do we and guidance, today that's forward around commercial rate paper could. the our embedded than rate, we Could look XXXX better to think the bond that that about our for average -- market translates If in at the year. X.X% we for what's in

but is look year, any needs certainly that for to we we down something the So, in fund at. looking access have actively the that would our of debt we and that case. there on to line plug draw worst that's the inside market is We could are rate,

as to no inside risk while permanent need certainly do accretive of financing the we could to an don't have that, that. some we have markets year because we do opportunity capital progresses So

Helpful Thanks. Great. color.

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

everyone. Have Thank great call, you. the joining for Thanks Yes. day. a

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

now You disconnect. may