Healthpeak Properties (DOC) 9 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to the Healthpeak Properties, Inc. Fourth Quarter Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President, Investor Relations. Please go ahead.

Quarter Results Fourth Call. Healthpeak's to XXXX Conference Financial Welcome statements. contain Today's will forward-looking conference call certain

measures is Certain and to do press not Although expectations in to furnished are measures a will in believe the exhibit reconciled be duty at to release to discussed exhibit results on and we our non-GAAP the that available with we to and The in reasonable are financial Discussion Officer, of on forward-looking non-GAAP included uncertainties is expectations. filings Chief also assumptions, healthpeak.com. most based this differ now statements materially directly forward-looking cause statements over call SEC. We risks accordance may Brinker. detailed subject have from website call. risks X-K we any with the all an statements. our the And reflected President, to forward-looking actual Scott turn comparable the GAAP in yesterday, SEC update financial risk factors to Executive our in on G our undertake any I'll Reg measures requirements.

Good Andrew. Call. morning, Quarter to and Fourth Thanks, Healthpeak's Earnings welcome

our today remarks prepared me Pete is Joining Scott, for CFO.

strong points business $X.XX fourth of a and X guidance X of Q&A collaboration and our volumes segments to evening, to winning basis mindset Physicians Joining the record market us produce team. I your notwithstanding, and in operationally their respectively. Last Public volatility, team Trust both Thomas, we is contributions senior for per for initial and start and our John entire Realty our earnings financially. thanking exceed and CEO leasing by want by in to XXXX. allowed quarter, XXX share, reported our same-store

X.Xx payout we at grew with below and NOI in ratio debt driving For XX%. dividend our AFFO to per the great year-end. X.X% balance shape The share net remains EBITDA by X.X%, sheet fiscal by year, same-store

X. culture, practices, Since area determine on the with teams the and working on other October, technology We the the X relationships, Physicians been announcement strategic have of best close Realty late tenant combination will success side expect merger. the in March that Trust every to by side

highest the fact of relationships, this and capabilities, our sheet balance in combination augment platform will earnings. have We that level confidence

we Just bringing X additional X staff in-house markets to week, third-party internalized XXX% years, team. property last with the near by have risk. up existing buildings success, in Those to markets We've management worked for expected had minimizing onto these X in on midyear. average, employees, our go execution

where in the we'll synergies the October, to confident and for late Pete will contributing cents the in exceeding on segments, they minutes. and demand several outlined sector in we Medical, to we're As I our synergies, X upon are want supply. targets expand share outlook few the operating with share a from Outpatient achieve thoughts earnings environment for largest XXXX. starting benefiting is per the some

history spreads volume, We at the growth. all-time and of were decades we leasing same-store in XXXX, and highs for have X near retention, sector operating or renewal in

is XX and points history to initial outlook basis for portfolio guidance. includes XXXX, the our same-store Looking above forward DOC our X-year

experience in health are plus. Today, of and company critical Relationships the deal more tenants absolutely growth in than has the bigger benefit of of real leasing portfolio sectors combined to the X never dynamic than assets have relationships Most combined systems. external believe estate leasing we're creating company. we internalization. often in sector no from very expect We senior outpatient thousands operations who combining XX% even driven and internal fundamentals of been the sector and for stronger, best tens tenants. with high-quality sector, it's and important, next company decisions, team better they unrivaled than by relationship platforms one is make It's create XXX a better combined in our and small positioned When the the are more other country the different to that the network. drive an years very an to of than the and decade

is Our the as energy next generation best sector coming innovating behind learning bringing the continue them to from and evolves.

the virtuous turn boards in Pharma business. are R&D capital. At well dynamics XXXX. and at access to and comfortably M&A with ramping Let or can and to me That be up is means when massive deliveries all-time long-term creating remains expirations our partnership The to looming our leasing companies possible. decisions drug fundamental drug deployment funding solidly with of paying drivers dividends, are the applications capital good and in in new near approvals will both highs. IPO positioned intact have turn market cycle. data we'll eventually lab a We deferring also Big growth capitalize. starting same time, replace to patent favor, venture a reduction and underwrite ready deals is and new soft Those

the Fortunately, stuck life strategy. exuberance to market even during our science, for we

stock entitlements square development past we year. most related the our LOI opportunity than the the a of the few positioned at points long-term preparing well all a close pleased XX% of a to a Callan lease. As desire lab combined always space on with XX,XXX the have create an life accommodate XX% country X relative the science of the that been Year-to-date, capital leasing pipeline was we can't country. We're portfolio, I'll feet X.X% X The we're important would the tenants. significant result, or JV more at platform, so not sheet. capture to we to on billion under sale begins in to discussions best macro including the segments portfolio submarkets sale development when bank approvals to plus but on allows are favorable of Ridge to active demand. Moreover, start scale across more, consider XXX,XXX wide our be expansions, in rent feet of feet our proceeds a submarkets about our in it for to the market with interest highly from of us I'll to we're rents depending that $XX-plus price driven sales relationship-driven and of other fund our million has or to We're repayment opportunities pricing, behind On pencil. debt that particular, and another months, by plans campuses were it, In shadow range core side, is company. close new by saying received shadow offer returns. X and cap in over feet backdrop a a with which could rate to Pete. we which encouraging lies where underlying recaps. Any We concentrated important on we're our in portfolio, turn to land such expand signed Cyclical and used or than ever a exposure. slowdowns recycling across casting XXX,XXX buybacks growing the and likely balance actively strength across deep control point, leases that of we opportunities more what accordingly. outright evaluating of and relationships confident a reduce the essentially

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

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

FFO total share EBITDA. reported same-store For X.X%. adjusted finished is year, per sheet growth portfolio the as balance shape And full we of and net in as the year with to $X.XX great X.Xx of we our debt

in growth lab, color a Let range. segment more little full same-store with line of our bringing X.X%, In to midpoint on me X.X%, our for growth performance. the quarter was provide the guidance year

Occupancy the these renewals lease existing XX%. signed positive cash relationships, ended transactions with the year majority we also in our portfolio at demand new operating of from in XXX,XXX During leases year, of capturing were square signed we spreads The XX%. and were re-leasing on incremental successful of feet with tenants.

Turning quarter XXXX year portfolio to with by collections and had ended gears sales same-store exceeded X.X%, cash range. line bringing FFO year a reflective and our year the for Outpatient metrics on was quick cash before record These in growth amortized million. Two amount to of the Both AFFO with shifting year fee of same-store leading our full CCRCs, and and XX.X%. a platform. the of tenant our Medical. bringing year XXXX to results X.X% approximately X%, in midpoint outlook. to Occupancy $XX growth our was collection. items full the to XX% Finishing strong both growth entrance increased at included our financial growth, with are retention the finish We XX%. guidance

in earnings Board provide merger, fourth is forecast post closing of For us payment The per a dividend the $X.XX dividend the same remain should which the incremental to with share. retained of quarter, our declared XXXX.

fourth noticed also year financial an DOC time with the their X-K quarter next filed reporting full line this other normal complete probably and to XXXX They week weeks. results. in expect You and on their earlier few that XX-K preliminary

to now for our outlook Turning XXXX. combined

high our are provide XXXX initial to we by to the our in our an respective degree of teams integrate view our merger done outlook. position the of close, Given lifting will combined coupled heavy confidence investors forecasting, with successfully a with

GAAP the including after However, date. adjustments the occur closing items, merger critical not will finalizing until

from to to as which which our merger-related $X.XX of we conjunction XXXX to that ranging $X.XX includes most outlook includes share, initial AFFO finalize follows: earnings. With benefits merger-related same-store Total ranging with any said, to in to per positive growth $X.XX. X.XX% our per $X.XX guidance make first $X.XX will as for quarter share adjusted So $X.XX. $X.XX approximately likely from FFO our necessary is ranging of updates and benefits all from X.XX%. positive outlook approximately

that of on Let touch some outlook. me items our underlie major the

Healthpeak a year for the on million DOC. equity for assuming this of combined additional average The outlook our based issuances. March months approximately weighted and closing months result XXX X full XX of is X date, stand-alone and share Healthpeak is no count XXXX, First,

all funding our closed swapped eliminating and fixed identified Callan of on venture, Ridge entire and have a our capital and needs spend. X-year million for Second, million remaining requirement $XXX to joint month, TI of no loan amount our future XXXX. we in X.X%. Last well-received upsized of term proceeds $XXX to generating recently million the We rate have of sources we $XX

development proceeds earnings and costs. seller used redevelopment dividend, all to $XXX fund million expect well-covered financing of million our $XXX fund our We of projected notes placement retained and given and of repay These our be we have debt private DOC's pipeline, repayments. will transaction some

are to billion. Fourth, on the mark-to-market increasing $X.XX of a we despite not not add the our adjusted. inflation debt headwind expected FFO to our of negative in Graphite G&A current growth FFO to compares and we $XXX Bio $XX item, do conservatively, $X the to same-store asset will components $XX Fixed $X.X include at back any fee we year as this the full adjusted. range from our XXXX. as versus historical midpoint approximately FFO as million Fifth, perhaps improve million, ranging termination that We is base only benefit by positive approximately outpatient increased medical our in, outpatient and norms, is assume. outlook G&A X.X%. Third, Notably, increasing rent by billion do includes retention, including which Fundamentals in medical to increased follows: mark-to-market positive $X see stand-alone X.X% escalators. tenant DOC Peak continue from million All at to from higher for million

overall XXXX is approximately medical XX% or $XXX of Our for the NOI outpatient million same-store pool.

DOC have strategic our in given the and same-store the pool nature size We for XXXX, the of included merger. portfolio

to of fluctuates first drivers some to is XXXX free major our same-store see a quarter. Finishing Diego. Not rent I from positive modest it by positive of Francisco and X.X% the San in growth rent X% with lab. relative same-store to in the San with of rent, continue occupancy a CCRCs, positive in see Turning X%. surprising, to mark-to-market would high-level year-to-year benefit we We particularly and timing Lab outlook offsets, positive driven we contractual internalizing growth ranging NOI increased operations to naturally escalators, bridge which X%. finish including thought have of is a headwind, in decline do a from be XXXX outlook. and helpful positive with in growth and the to

the flowing Our same-store from And development through merger Vantage noting joint includes and venture. plus million the see earnings a largely from benefit from portion $XX million We benefit outlook positive that of of of these see year-over-year a from $XX Nexus Ridge approximately earnings, $XX synergies we operational and growth. synergies NOI. million the benefit are Callan

aforementioned interest So of debt as received XXXX expense our roll mark-to-market. But a which, provide million rates plus earnings tangible a our trends. to positive there $XX recycle onetime are well XXXX the businesses. as lot capital down some some of an million from are rising are is approximate we business certainly combination financing headwinds. Interest core dilution due forecast There deposits forecast seller to lab in $XX although does debt to to increase facing not potential repayment, that in in dilutive security due is into

have NOI campuses We in decline at $XX of X million a wanted a to that temporary I moment on. spend marquee

year-over-year expiration of Oyster $XX we combined well and Class at redevelopment decline across buildings. product to First, being in assets is multi-tenant The from disclosed of into million the XXX,XXX Amgen there A square is assets as Point. footage X put upgrade these NOI

life square amenity leading contiguous substantially tenants. the rebranding Point to buildings Oyster are the science package a with X foot infrastructure creating million We integrate upgrading more and campus [indiscernible] the mega and order campus with in Portside at nearly

expirations We to the base have commence we we expect that lease, client to with as although feet already the third backfilled suite. their until complete the our building of lease and XXX,XXX don't work quarter square

after we Second, uncertainty, in the of XXXX. have Therapeutics a NOI months rejections situation, do in million the result although $XX impact Sorrento negative lease on clarity

upside the XXX,XXX buildings, square through XXXX. a tenants as we assets mark-to-market touring Place and into is the redevelopment opportunity campus We have downtime the retenant is a buildings. the Directors in actively are this There on placed headwind but foot nice

there sentiment rate XX try proactive million included but items, like lots In will puts outlook in to debt. In it addition recycling bad me and headwinds to our positioning years. the we improve. let market is Core already, the perpetuity, the than up conservatism line and sum do lease outlook, grows same outperform performing as sky about various terminations conclusion, potential of we expectation. not and we our better Nothing are while in operations are fundamentals further discussed succinctly. capital believe have and perhaps and takes $XX to in activities, as at including for firmly last to Lab growing our the in

On synergies. Outpatient averages than with in the rate key is the and a a our improved DOC Medical merger as other with supply, capabilities higher spectrum, side outstripping the of significant at growing demand is thesis combined historical

all out, undergoing campuses managed we large the REITs, have not we We balance sheet have the can merger-related And X to as like have are conservatively consistently avoid mark-to-market. we nor rates required but pointed we rising repositioning. immune marquee debt significant

but these the forecast none in the have spend We redevelopments XXXX upside. of plan, capital earnings for our

assumption We projects beyond. If NOI, it these have the that, further open our Q&A. will then that are in upside our commencements line, is we confident at outperform ability to we recoup let's lease start lost XXXX and but outlook. our to to With until can base up case time won't

with [Operator Our Scotiabank. first from Instructions] Nick line comes Yulico the question of

way year-over-year? relating some gave there to I But appreciate is plus just guess info first the you just impact question the to or is FFO like Peak legacy just other of impact? DOC any on what sort I items. maybe year-over-year on AFFO or Just of percentage about guidance. all merger the the us growth all aside pennies the basis think impacts, of putting kind a would be

were Pete we is include at just versus to Yes. here. with on don't does We call. year into all synergies. this of on GAAP those start of Nick, benefit if get merger-related look AFFO but I'll where items, that AFFO. of did last this year it's this AFFO want discussion flat, effectively outlook provide and the because our the But you necessarily mired all year, we the Maybe

would forecast primarily the lost go of if the in remarks. you'd a out, to back year-over-year. those And actually prepared merger I in our because that X back you down our as proxy, temporary and try statement. at S-X really the AFFO well. see correct be that's say you we And actually That's you'd NOI large out, campuses the put mentioned If the

the of accretion if our our this down to for share, would flat the able year-over-year, benefits keep merger, year-over-year. Certainly, being merger, we're actually not AFFO So this about were $X.XX AFFO articulated with be we've per but

any you guess I would Kind bit the helpful. the to that how like Diego if a going forward we talked of in maybe just think give what composition -- pipeline of relates look mark-to-market lab know leasing should plus about, second in the San impacted of a maybe I that business, the right you about leasing guess, question because from how terms quarter? That's of the that was if that's for standpoint can Okay. I feel fourth now. the in more little is

signed Good we've question, leases that it. LOIs. of feet Nick. did you're We I'm XXX,XXX that and disclose about not year-to-date square surprised asking

of week first January is The slow. quite

a pretty So probably number. that's X-week good

If it give was. those ago LOIs. where color in a a positive to trending still Bohn bit Scott on little to turn leasing a I'll the it compare you it's you to that, direction of and annualize more as actually year composition leases

this it's really Yes. LOIs, deal, markets. Nick, we're just Scott. across a the is multitude On all of not large deals. one It's -- those

are about towards talked range, look has XX,XXX the those. are the the where the quarters, trended foot bulk kind the that's probably today. that mark-to-market in square We're shaking happy XX% on few year. range and pretty past deals over portfolio, we we When the of economics last those sub we really on As you that were at demand with of the out

the of are If you X% look but varies given today. the TI are the and aspects Capital it in probably range, more in account today, we lease that that taking to XX% other into at play where greatly

overall. much exact down X% number it's in there's so differentiation probably because in to range today. leases So say, But I'd the hard to pin the XX% an

with Markets. come Juan the will Capital line BMO Sanabria from question next Your of

question Just on dispositions. a

come market. potential for to about on assets the talked You more

more look may little more you types core, of be flavor if noncore or of the that maybe you they could assets to assets, kind just So give for curious, sell. Would bit stabilized long-leased a assets.

what kind this at there being curious may point out in floated Just time. on be of

Juan, at it's the and what Scott. the with what stock market is pretty assets disconnect the I our would where private would. mean, obviously, There's trading. we're big public not between a happy markets value

available So value. we're certainly looking to opportunities at create all

So whole couple considering. ownership that be at a less that we menu kind a core but recap assets pretty could like an If would not it Diego say, higher things it's than wide-ranging than San a ago, noncore we're a likely I it's those maintain did lot core of selling of we more weeks print in sort assets of we may consider true have don't we we assets where stake. We of rates have cap slightly of come the ago be real number San But was net had We've campus. were we a of in shape, here We a saying estate where we a in we're seller the spoken weeks been are last Balance today, for in From Diego. XXXX. ability uses type have probably to year. for. in be couple price looking A+ obviously great and seller that we'll the sit sensitive. asset is at XXXX. an sources in sheet of a of That But net things. would

So we we'd be that price on anything sensitive do.

could believe about just curious rent, be which of cadence quarter. temporary you not But you expected first And 'XX. the information, the growth in fiscal -- talk great. said to I a year you talk cadence hoping Lots drag lab I'm same-store could kind of you is growth, if of question free Great. The a for sure. for mentioned Pete. maybe of the could there then maybe

Sure, Juan. Yes.

of over will the quarters an the first as from huge larger of variability we beginning especially the think these months X well the the deal buildings that probably Boston January, as and this been deal. that for across did out I out one lab, we deal pretty X of of commenced I of are RevMed that I the in some quarter there's just the at say beginning leases say, that vocal ones took not that they commencing Amgen that we've look the I year just I MGM like or in as with we a year. as cadence, you amount rent, in that of came the should mean, of they some perspective, say the expired. commenced the would Voyager FFO free about month have

but to So additional there's what's earlier this leases free sizable all a -- pretty there's and those of commenced amount of going rent a year. are just not say I'm significant beyond market,

relative really to little that's So guide. second have a going I to first numbers the on it's wanted bit impact overall just an to and of out. quarter that point why the same-store And

little rent year your years high-quality favor, of long-term really years Some headwind leases our are with a A this doesn't. again, bit in tenants. works some free number. But it in these

that will the bit second I weaker year same-store want point a versus half out to just be So of for half. lab first little

the Your of Griffin next Citi. question with comes from line Michael

a I for any ask worries noticed Curious of there development on case? were projects those wanted pipeline. quarter. I that's projects? any relative quarters color about could the Are demand on to of couple out why if some you those pushed to give last the

that's Pete. later another can year. a do the initial the with hit this start expected have and Greg, ones. actually late remaining, I'll portion that last of we lease delivered Astellas for we biggest start Yes. to that. what's occupancy Vantage, with it's year. certainly I is then And on And

with before a So little Sorrento signed even lease point We a of work a don't have between we X Gateway, the that. On time. that a situation. signed at doing space back talking It's do at a to the planning specific we the the and months we certainly that's really lease this realistically, lease today, last over actually bit. I to X commence. I TI build-out, can about of mean got the to talked we reason pushed X X delivered because have look length months at some mean, you're why about in if even the portion way that it,

push there facility. A+ and high-quality based tenants long actually it out you'd the get It's if Bohn great add that out, did look we looking, little it through know, XXX. sense we push So made a takes as to bit. building out leases bit. certainly overlooking a as has the to right upon anything we that that campus, We're the touring couple how result, that. don't But to a a there's to of little want really slowed quarters. I a signed, just decided that Scott

it's good, No, Pete.

Great. then just the wanted Thanks. on synergies And the from merger. I again touch to

You realizing pace of $XX could is the see. on of that $XX It or going top seems than million the talked of additional you about about million synergies million to even that's that. better merger highest of maybe on see kind you like sort that any expected. or $XX upside could kind Curious level if if of of

I'll It's our synergies, rate Griff, a October, run talked got million In XXXX guidance. Yes. and that. of $XX full we've year about $XX we in take million Scott. X

I of So are expectations say, X. we ahead would in year

So number well. hopefully, we can as exceed that

in the with could big internalize end, end well, X that part markets range. above more that certainly year is to at going would In satisfied far taking and that internalization see. continue if we down, high high we'll to the of well, a one not forward queue, going be so results, a markets we're The more if just X goes it reduce sure of so terms and the risk. But execution the more synergy them time make X, we're of achieving

Wedbush. with Your next of Rich from question comes line Anderson the

of a see XXXX, I'm faster Amgen numbers -- if is time time punch. sort the the your I'm I sounds in and spaces, to assets? them just in me paying correct the that like the other to is on little more the see Sorrento think wrong. comments your Is line were. to next curious maybe of bit the back on what what any cash use So It Sorrento realistic ready we'll based one is

Yes.

as more Rich, I years, a perspective, from as quoted that's same-store you really figure. you pointed think, of say a X would out, the X lease-out campuses. I

we've Sorrento, port work of that work on the that scope than project of the on significant is scope rebranded. side the less

So I campus quicker, of that actually the work lot portside the we'll can finish and we scope Sorrento, would campus. work say finish Place the the on Directors that's a on and

to probably NOI see you that would I were the X then some I the campus. I port from So if give earlier guidance would campus between side from

bear at Although have in that that the XXX,XXX lease, Portside said, do commence to year. this lease that with will you client square mind we actually foot later

backfilled have we that. some of So

of backfilled through have point campus, it. any tenants this certainly We touring Sorrento but the we're not at

Can then we've upside operating and hasn't a some and I a add we to a the redevelopment NOI in X yet. of occupancy sit fair a seat, has big we're bucket ago, that? got on my XX%, working on. pretty amount portfolio. of We've Scott Mike where upside development lot lab business, are that development and that nothing been something at From our completely essentially pipeline. From essentially redevelopment years occupancy, pre-leased like got XX% in even today, leased

and standpoint about little maybe bit capital, it's Those that's upside a I do achievable. A million, $XX upside. it's of that a XX% an Amgen, or cost XX%, are just Class from NOI on alone, but don't of think subtract Sorrento talking million if Vantage $XX but earnings So you're so all There's substantial. of assets. we know

was business ago amount upside us kind of fair go hit utilization, a recapture. today, better of our of So full years word. lab for for X there's lack to And a

Scott. Okay. Yes, fair.

medical, them, X% with to or guys shifting The DOC. outpatient second guiding combine would so call over MOBs we same-store to whatever are you question,

see -- up Healthcare beyond of that's of Your you over lift through if years going like couple your occupancy game I'm sees X same-store a of do the sort pure starting next whatnot. peer play and plan that but some the been big years? you past path office level to curious point, medical Realty you have that Wondering see several growth out growth the see more it more X%, where of your has the of over office medical here. many of sort Do potential going which representing for majority portfolio? you growth now beyond from legacy of a

XX%, but for a previous last We demand, the push mean XX see we our supply ability it's it's business improve that therefore, It's to do really to X years, rents. do X% versus to and to going I given XX X% for forward X to to cost think accelerating. years decade. the the going Yes. construction just growth been not

So the we've the segment our any actually guidance this high year end is above given guidance of historically. very end, at that well in high

a earnings of and track guidance. pretty our our good We guidance have same-store beating record

like some So the Obviously, spreads, But combination gave. All-time assume you were number high we up all-time I that year-over-year. points high basis a of upside think it's can XX re-leasing quarter-over-quarter, we there's XX basis retention. hopefully, that occupancy. to points

is So think outpatient upside that growth rate. there yes, some the historical we do medical to

rents, condition of do system, and got to higher think? there that screwing world careful speak. for you lived taking, to you you needle? be about to you so of thread with the of the this they've do Or up be have How Is right, because it sort sort okay tenants to with sort

And Tom ask today. I'll John well. Yes. here to They're both as and comment

Yes.

at, or because that those look is than are. is rents the existing we've are so rents, in seen the on market benefited coming us Rich, new rates higher you typically If developments the mean, what's XX% I -- the actually what

was back number grow. it And XX% leases So that our at Today, hospital. room us third-party XX little and to then XX% ago, if XX% tenancy hospital it gives look physicians. you a is years

like So anything ability you do to when up little more a you you're if dealing with push have that. John, rents add? the the have institutions to

tenants, new And your was think I spreads the X than renewal the rents -- conditioning but comment I quarters above new now said, we've historically conditioning seen are a the of that options, higher building. as Tom with in go that, No, Tom. then to and straight agree XX% well Yes. building, to about

-- that's I the XX%, XX%, I conditioning. And rents you're And it's than much to X% raising just leverage. it's that's So if negotiating guess, then that's inflation more, important, better increases, the and the think, more X% increases. the than CPI fixed people X%, do don't annual renewal board starting to right now, get are the spread we're to to to want increases X% inflationary that of across

continuous adds just to So that stream. that

X% annual a increase. then adding are more it's up rents the portfolio more spreads to the X%, So you're of X%, more and and X% renewal roles, more going and on of X%

said, So as the years, optimistic. XX next is very Scott

Baird. the Your Golladay next Wes question comes line with of from

pushout seller out few Can on it on pushed with was going what's months? the you comment of if the financing, collecting on a

seller The sales, were well X, providing of our years that ago. housing mean, did we quite X financing, actually I which off senior Yes. on

we that the if business the LTV actually a like to counterparty. provide right we it's So

gotten now With million it, $XXX had million, few think, was And our repaid the $XXX these high, call getting loans, we've to guidance we down $XXX million. a repaid. last this million. I to $XXX about pretty for balance year, mean X It over I the lot was, outlook, years.

obviously, million $XX could more little be that's well. than that. higher So the a probably bit of as year at And midpoint, the weighted front

will more near I probably those to repaid in get gets loans towards it that. if get think expect But is the versus it that it again, repaid repaid, is obviously, extended, which of if are LTVs would then year. earnings if get of those gets as very an end the extended it the given assets, counterparty our there's and front to where expectation the term, the sell the we'd expectation benefit not, repaid,

in bit in been in change there's just but on I activity in XXX,XXX a new lab think little of It effect, nice space. this comment Okay. noticeable on how that that's you had had guess, conversations? there's And I in the balance. a can biotech January. first maybe some leasing the square lag the some going under half feet looks There's Any in fourth maybe like the your M&A you conversations a on, And lease good quarter. then are space?

Scott. is and line new demand as Pete Boards perspective, with taking expansions is pre-COVID and this portfolios. like we're that. all X still mentioned, are from Bohn a in cautious, levels I things Wes, space across Scott think Yes.

and We are approach the market, capital seeing public groups plans to some sidelines dig up. in the of on who really -- as at have of open kind kind the and markets, getting have on they starting real space of in both private funding some around been floating been are

that off is the We the So I shaping think like year. pipeline the start a that we're way strong to up. for

mentioned demand. are strong of prepared his that fundamentals underlying The Scott in remarks indicators future

next comes Jim Kammert Evercore. Your with the from of question line

and a million detail guidance regarding built bit that redev CapEx to of could provided provide little ask this, because kind or of the but is on of development more million Q&A you you redevelopments The to $XXX to kind in $XXX what And roughly I 'XX, and remains of million spent spent. think kind development were half if a and that's known kind be you even all reconcile that $XXX of a I of target. of some

help that of please? total terms major are So at what If components that of kind AOI Vantage, of could is spend the Sorrento? this in for 'XX, ], [ activity other just you

capital continue also that's mean, keep a out and HCA to still take that, for we'd are program and to that, We've Yes. us, which kicking development I recycle developments have pretty on which going great mean starting are that and to is obviously, Happy off. some great. to yields finish is project, side, increase to significant. the the program Vantage on that I like the Jim. we got new

year-over-year mean say at I'd the bucket. significantly Vantage. we're larger, took got gone the behind what lease there given our at is they asset Grand redeveloping look Astellas space XXXX another campus. has on still redevelopment the as up you I as pretty [indiscernible] We've Point versus XXXX

building well another portside the as got we've So large go as have buildings we'll Plus Sorrento. there.

components well And up. biggest that the of expectation are that X out for ticking would as that leases expired. say finishing period development time. the put specialty current always I'd really, have Amgen into of had was was we to to as the over that we that portside and on mean campus redevelop CapEx that the I So our years those XX pipeline was when redevelopment that

well really, are years But that to did year. we there's that XX that that. Those biggest investment. really later, go really the some on spend capital has drivers of this into So

in a no couple medical. in There's there's Yes, outpatient starts forecast. starts that new lab of new in

legacy development, X%, the just DOC commitments made cases, pre-leased. in highly are X%, from though years are attractive, were ago. commitments, Some some Any that from because it's yields Healthpeak, on X others new legacy

we attractive those. continue find with go very and to those So we can move and would ahead that recycle forward capital so

Great.

as this you're or explicit apparent, unfolds, more what become saying? So is to activities, CIP becomes more opportunity when those that's basically, lease the redevelopment shift

. Correct Yes.

That's if could. And I secondly, fine.

You looking might potential? and portfolio? CCRC are you're capital on alternatives. at to that a the Or grow contribution? is mentioned, What you? room a still all event I Scott the NOI for maturity the still latest nearing be think, Brinker FFO that Is that it on capital thoughts that Or is

Yes, overseeing today. got in We've that In strong seniors, LCS. that internal we've a get mostly operating a performing we're well. we team partner at it. assets, obviously, into Florida, really occupancy in really market supply/demand back good favorable got XXs. portfolio, I would could in think got it's XX% for good We've

with cetera. really we're not complementary, which in At medical overlap it are highly no and lab and time, a same the has same rush. So businesses, procedure, process our strategic et

run we'll be to to size, but point, recycle. will We transact we earlier, if have to at performing see got my soft that in on too don't to sensitive. the think of start and So it, but It's markets the some need open been But We've XXXX. anything. do I to things portfolio comment would tight capital just up a fine. price team

comes of Dennerlein from of line question Bank Your Joshua America. with the next

quick color all question guidance. around Appreciate the on that. One

you're in -- correctly, outlook. I I I DOC if heard including NOI think same-store you office think medical your

like? out what from same-store same-store strip the would XXXX NOI MOB you DOC If pool, the growth look

Yes, hard to say.

we of leases X% X said sign numbers. done the Healthpeak, to they historically, parse peak as escalators. that's the think But John as so we but with, the lower merger, escalators in-place that benefit would getting DOC the in obviously absent comes has not I time the better are it have internalization We hard or over new portfolio converging than said,

materially. not a little be it'd guessing I'm So bit lower but

growth by and numerous events unique specific asset proactive in some XXXX their I was rate termination. think said times, they impacted

expect growth growth our closely to going or mirror would rate forward. mirror Healthpeak I So rate the

Okay.

Okay. then question. helpful. kind of That's maybe X And different

not with mentioned the Just it. you stock happy price, you're

curious of kind stock Just here. your buybacks for appetite for

but that. stock, not with capital years at said, the a the attention issuance an X ago. Board. And we which paying did buyback We Street some certainly, it's think, And buy would I to do a say why response albeit or that consider long issuing I talking we're today, where pretty Yes. recycling. we're something we're stock a put from ways from away buy level, even every at our We're is level about that price That we a certainly equity, unenthusiastic higher was for authorization back back where we quarter to. X.X stock, more year,

buyback don't to in file shares, do, we We it to we going program probably buyback bought up not lever one. do place. if at look have a look leave just but $XXX-plus We ever of that, have to still million something recycling. I Josh. think through need But back we could So we to I'd capital would we're

the line Mike Your next question from comes Mueller with of JPMorgan.

a occupancy when did, you more some tightened there in spread are the missed with I and can moving terms into what's redevelopment. embedded us it, going properties 'XX the there in parts what color, you to know give unless NOI, spreads lab for I 'XX in . of especially that same-store little are compared But for

that. Yes. Mike, handle it's Pete. I'll

average What some on X.X% got Xs. outlook obviously, X% tend be in I internalization which there's embedded We've the of that, as to get got in is that rent bit do positive within little mean, positive. done. then are obviously, low on lease well. you've escalators, benefit our we drivers So to positive said, there a And mark-to-market we've renewals as the

well I think are low stop mirror . That the years. right average plus XX last there in over be perspective, same-store what's are pretty occupancy area. think We've known. I probably happened probably growth be offsets, from of if XX% would Which there, So got said, we actually just will some X% a the which we'd kind

headwind. decline, bit So it's some basis a modest It's up; on down. bit this what within you provide goes in year. as significantly depending compare improved a mentioned, year-over-year, well. a years, free probably it it's upon And certainly a a That's that some with of do I pretty our flexibility The we bit a that is so XXX-plus do, a up points bad there. we little rent where were include portfolio, of tenant as but to to then that always order still little bit last but debt we little certainly year, have little headwind ourselves but nevertheless of cushion years, decline, we

it you all take know that kind to blends was for as couple a what of out of X%. take stock when but not years So and the was you ago the it is X.X% price well. XX years, where not to positives our headwinds also last all it's I the

our I at into, So this time. valuation think, been it's factored certainly point of

what spreads. showing And in fourth think -- would XX positive 'XX? X the to closer Sure. you about spreads or 'XX year quarter full that were Would maybe be you follow-up, talk

number quarter portfolio be would but outlier. fourth was the may select was outlier. mark-to-market, I that mean spaces that an there No, renewal an the a rate have within negative

space I wanted no think to with credit, no the TIs, XX-year-old credit the that downtime, investment-grade stay in -- TI. tenant

So lot expect a of I mean that was a unique I situation. . wouldn't those.

Vikram of Mizuho. with next comes the Your Malhotra line question from

and at outlook. you of looking thought I the be would I outlook. I least just mentioned look would a But sort maybe higher, Just I I was divest. first to might be you anticipating was CCRCs. more at robust bit on there at growth know point, just thought the surprised a some it

from your So of different earlier something can maybe you if just and contrast give compare expectations? or if seeing just a sense you're

fundamentals through but Yes. occupancy to digits growth benefit more Rental huge We're in labor some had benefit. contract given the Well, a in that from see digits opposed we the past largely Then high obviously, grow, single the just rates as over months. down will mid-single XX XXXX. sector. in that we've coming still

contract today. We portfolio in little have the very labor

lot a lose same of just you benefit in that store. So

accounting fee. well. Most the portfolio NOI cash comes asset entry happening then just to the we that's this obviously, earnings the So That's accounting class million all as generated. rents the And And table usually and income being of roughly NOI than amortize relative total prepaid nonrefundable XX% our have actually we on property of the from the has at in mean, for on entry that that's what's leaving level. this this more of $XX impact fees. GAAP an method I the we're the

asset that GAAP for unfortunately, underlying up CCRCs that reporting our accounting, does but unfortunately. not really to performance the class, So reflect chalk of

X Okay. of becoming wondering program then or HCA. That likelihood sense. One, to got you've properties other is health then makes is expanding, just second, within programs bigger a And there there pathway in larger you I'm sort that. with HCA and HCA key subparts systems? types just relationships similar MOBs of program. great the or mentioned And of for a

the across I these big port. outpatient is ask a network. I grow their might answer yes to John The opportunity mean systems there's massive comment help health to specifically.

Atlanta, further [indiscernible], relationship have Yes. opportunities fantastic been those so Vikram, development have a to we well and Northside with come, just in and Northside great to actually both of this to top -- standby. at But on as routinely. are we've aware, I organizations have doing with think there thing markets. out both we continue project examples opportunities about and a on you're a that's great -- Same the pretty couple

Capital next will Austin KeyBanc go Your Markets. from with question line of Wurschmidt the

smaller that versus expiration the estimated strength over You of And -- the curious the lease to to flagged between curious you in X% just of I'm sort have on I'm years? how compares variation you that next of smaller the requirements? some requirements. Scott, XX%. larger several there's mark-to-market sort lab what also if noted segment

would detail be any So helpful.

sure. Yes,

term tenant we've square past probably X between I kind if over mark-to-market, leases that It's I that mean, the across weighed about it's a that very the quarters, Amgen after rolling. over demand several XX-year those bit, on demand the of leasing, that relatively XX% down mentioned. the Pete in XX,XXX markets, high then is the the and to talked all period On slightly were And XX% somewhere you sub of grew side look with rent feet. little just near lower think

past zone really months. So strike it's the for over X deals been X to the

do a I more to flagged opportunities? get of is mean, has sort bit wiped as was I that of little in a rents be we does year? still pretty past, 'XX that gradual But some we any have market the muted? expect moderation next Like that of as to year. in I into into there get reaccelerate away Or 'XX be sort then think upside? Or and guys the you 'XX, even of going attractive still know you

more just bigger comment It's on keeping up But picture were 'XX beyond. a modest should and 'XX mind, to from gather in is down thereafter. more fundamentals. Amgen some momentum the because what in point of mark-to-market, of because we'll the 'XX former. that a more 'XX ago But low said and market starts it and it this we year then the would pick be year-over-year of lot and Scott's and materially into have

sort the getting that sort what That's thinking of thoughts just the of up year? even do helpful. pull the then how a synergies. right And little is you of that? around you that? guess out of much even gate color of kind thoughts. How down forward beyond then I cadence end the closes? Just end I'm of high maybe or $XX around for upside And curious the million balance think go-get about the kind break could what the But latest you the that bit curious gave hits guys of of of when would deal of And maybe

thumbs up hoping wasn't quarter. X and are it quarter. we'll Austin, next these days Maybe will keep [indiscernible] Pete. this that I see one but be it it's Yes. of green, open

means just It do. you

synergy would the vast of on pretty majority to million, savings, G&A is what that and at we on -- of on much closing. $XX actually all achieve the Look, I we expect say the said do. certainly We would that

are Some G&A difficult. savings of those

We of those to side. on fun, to away. I'd has had, hit that have but the been have vast employees expect have conversations majority to right our DOC conversations side. with never on their have Those

the talked really we've said markets balance, on we've internalization, most we is that X As about on of that the already. the internalized

that That's those in all why our hit again, opposed months kind really hitting to going we numbers. to we're throughout that's as are tangible, but that year. we those portfolio benefits estimate it's year. XX will in million just those a $XX get of our But really NOI So hit quarterly feel as within confident the

So hitting a earlier on. those numbers little bit

there be really As more and through to today, hit And although numbers, XXXX will think numbers. and beyond where lot the all of modest confident is we we the . are years focused, really I 'XX of kind numbers, a additional $XX a amount be we that could those G&A. of internalization those will again, that that to can sit those feel But flow that. million,

Yes. thumbs No, that's answer. the great. Green the Appreciate on detail.

Our final of Green question come line John with from will Street. Pawlowski the

a just this you provide to is that year can close rough you hoping very of your still if on look market depressed. was would disposition public range volume valuation I

call. row it mean, them. of on the market could tighter, if it could been opens a earnings X that I couple of of all see, the we'll dollars John, in if of market discussions, a billion we saying mean, I sorts is a be having up. quarters couple We've be we're have but

So see how lot a we'll the the just today. there's plays have of to market portfolio But across active discussions out.

right low narrow now X% still the of gap. you're know know well like even not still to such try -- to right and some where there liquid I to trading seems trade at able gap massive interesting stock is like Okay. completely valuation going and in your a to but close rate. I that, deals, where everything there's public it's to not market's private cap now, But the a north trade a very it is if

now much on are the are science sell life right -- in like actively and lease. So you you how to -- market looking [indiscernible]

up.. it across a what gave be markets I don't if than different the portfolio. in the Yes. mean really I active number a very discussions material have answer I could open

Yes.

if us I immediately of we have have bake capital. to actually from to to other right? to And flexibility dilutive did forecast be would wanted business is and top remarks dialed hopefully, the to our within say likely this time something we would we that acquisitions look use was got don't John, have segments, that's not sell well. I assets thing And the in, further we're got to think to from that proceeds debt, obviously, baked impact into recycle to in in add, dilution delever. our core any we noncore repay that allow our our like but potential prepared is everyone then into over as capital dialed of going on some it. That's that recycle We'd to forecast we that, a

X development on small Okay. volume, repayment, follow-up. thin you debt us starts I help basis pretty X% the a a on to again, X% it's yield the And relative a risk-adjusted but just trading seems or maybe again, even million. where risk-adjusted Can understand know development to stock $XX a basis. is

is development right out why of proceeds winning use the So now? of

Yes. I HCA. mean it's with in top partner a

seams. of One obviously the It's got We've campus. bursting for -- success. is signing the future. Dallas, on no foreseeable that CapEx them had tremendous long-term leases where with in pre-leased highly we've assets at We're

So at it the to and fund we're level. accretive cash our assets an attractive are view, flow in quite returns still selling

of to those for So still our John. I capital attractive find an use be shareholders,

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

for at everybody here focused, their our beating to hard team completely is Yes, interest. thank again. I guidance earnings The want on work

really continue strong think we the grew this AFFO year than and we X%, expect that. delivered more to than X% FFO I that, before growth more year we at

questions. of you that, today, any I with call appreciate in any tuning Thanks, everyone. So in

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

disconnect. now may You