National Health Investors (NHI) 7 May 242024 Q1 Earnings call transcript

Good morning, everyone, and welcome to the National Health Investors First Quarter 2024 Earnings Webcast and Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Dana Hambly. Sir, the floor is yours.

Thank you, and welcome to the National Health Investors conference call to review the results for the first quarter of 2024.

On the call today are Eric Mendelsohn, President and CEO; Kevin Pascoe, Chief Investment Officer; John Spaid, Chief Financial Officer; and David Travis, Chief Accounting Officer. covered as released the yesterday call, after press that's well conference of in which as media. Any release were financial facts call the been statements. are results not notice this are accessibility of this a statements historical The in the forward-looking conference by market closed and guarantees of future NHI cautions statements forward-looking not any may involve are investors that risks or uncertainties performance. call. judgment as of date All statements conference represent NHI's forward-looking of the this disclosures made Exchange are NHI to nhireit.com. or sec.gov risk on urged the review various March XXXX. The with website in and NHI's Investors periodic on quarter its Securities factors disclosed XX, available filed SEC's for Copies Commission, by website reports Form information carefully at and the XX-Q of at NHI's ended are and these the other including filings

have the In in CEO, non-GAAP are with the those provided the and in earnings this earnings reconciliations Mendelsohn. release now addition, and call are our X-K SEC. Listeners financial measures, which Eric provided over in turn together furnished in terms other information tables provided certain to of which all with NHI's been review release, encouraged are call release. related on Form used reconciliations that I'll to schedules,

rent occupancy you cash general outperformance. and a characterized operator collections, is our thank expectations of represents revenue the everyone great and and stable the shop quarter to today. quarter unexpected remains repayments, to us The exceeded results steady Hello, third same improving start for by no as growth We're off joining fundamentals, first concessions. in XXXX theme the deferral and and straight

increased raise improved provide implies for with good the few at several minutes. the us in year, of more the FAD FAD growth guidance, over outlook. which guidance Our is midpoint. The John with year to details factors prompted full broad-based a rest excellent contributing start, our the X% visibility coupled to will

organic any include NOI deferral believe rent estate in does in SHOP channels potential concentrated guidance capital projects and portfolio our is shape reminder, existing new through significant not great step-ups large our strong real We the including investment a on portfolio. investment tenants, growth As growth for multiple activity. select NHI with and repayments, positions

during EBITDARM Housing favorable the portfolio. Strong growing with while to on and the particular to receive offset Senior Bickford coverage growth in the in revenue to within revenue on reached which preserving rent, leased our rent sale rent base moved Our properties in consecutive reduction outcome scheduled Bickford We in percentage our base period with NHC an XX% a for reset, deferral at repayments XXXX. increase eighth than rent need-driven higher the more X based the rent annually strength operators. our April portfolio approximately X.XXx by increased other XXXX of the which X Bickford ability of related drove

you of XXXX. NHC most well on at today's aware, As call end of lease the the matures are

shareholders. we're a for So working our outcome on actively favorable creating

to importance first basis over quarter. where process NOI the NHC that by portfolio year-over-year information operating the For and on The X%, when and or provide Sequentially, are to growth this our increased the to in of need related expansion. We relevant unique negotiations appropriate. Back to of on to the our million understand we $X.X I revenue sensitive. NOI NHC, as encouraging typically do the record, state the lease XX% expect results. points Senior Housing seasonal which XX.X% to approximately is XXX so lease plan relationship increased by to weakness margin we SHOP and shareholders

current targeted the to a CapEx NOI our yield of us weighted occupancy guidance with high incentives range have we'll properties good program program balance capital. net move-in investment XX%, as continues above We sheet the to remains and that this over us $XX million NOI growth. XXXX improvement, coupled for positions at be REITs levered at progresses. X%. of is returns of guidance external the committed adjusted a producing growth we Also lowest optimistic above lower organic supplementing at growth our date, among XX% for as real low-risk with $XX average portfolio. To leased at view be have at to The all continued just coverage though million end year well cost Our or a into and EBITDA debt significant our X.Xx one the estate

with powder point, to of several plenty which on now reality. be ATM. created pipeline active to at for sellers initiatives borrowers and quarters that has rate and revolver for a more million certainty We us. in for higher execute growth advising $XXX could We've environment a this our dry over longer the have be seems It the capacity right a been

external the a the including years details on call foreseeable to $XXX more higher on Kevin growth the and over and capital. allowing pathway will at remain with yields is We and a environment have in rates improvement makeup on turn expect growth. sum, of to exceptional pipeline. capitalize a cost become providers on future. now more details LOIs for I'll Kevin macro provide cap NHI of position more organic The more by million, cost driven is our our several adjusting X% significant to clearly slowing we to average. capital strategy, several we moving favorable Our multipronged external and competitive our growing to capital other With provide see expectations robust our operations. Kevin? momentum for lower, great NHI deals across of seller pipeline growth of to initiatives the $XXX of is submitted and of currently several million demand. In for the on opportunities growth create than in us supply paths, on initial over valued

Eric. you, Thank

estate new volume deals more $XXX including last across These loan and have months. look As the across on of deal housing than Housing LOIs Senior million significantly joint opportunities several primarily more on lease In mix last looking venture submitted currently new quarter, with to and to a inquiries of estate see with the real loan, path senior more than average. at approximate the actual in increased multiple in an to starting continue to focused valued noted We're are products, acquisition. for and and nursing case future yields of X% opportunities. We of real we're skilled has at investments, ownership. activity we XX-XX continuum of the loan

the XX-unit option $XX and property care on Crossing X years. a and we and an quarter, a the NHI by memory loan million a well-respected on Midwest purchase As growing property a mortgage assisted an NHI. The relationship has for living example, during properties a carries X-year and the first operated Carriage new of X.XX% Living, funded after maturity operator in Senior X

Turning operators, We quarter and the nursing SHOP to from with skilled senior and need-driven NOI discretionary strong Specialty Asset had Management. Hospital adjusted housing another and positive year-over-year growth the portfolio.

a again X.XXx. On XXXX results XX EBITDARM months X.XXx the we're $XX.X of sequential for is increased period operators and lease to X% million. had of the coverage straight restructuring and by At very approximate base healthy under improvement determined Bickford's is X.XXx April next annual be Bickford pro the is increase basis, pre-pandemic level, driven minimum, outperforms. The representing rent in was operators obviously April other eighth at defined pleased prior XXXX X.XXx portfolio. The so increase from at by the the is with ended need-driven coverage, XX. of with The at current rent coverage but CPI the the growth. of reset could need-driven Bickford trends December we base both to coverage This a still was from an forma above a on and base X, with reset rent for rent XX% if which based million, Bickford well range base a On trailing X% EBITDARM the will $XX.X scheduled ratio higher floor this Bickford a escalators. positive

property Eric years. we that committed part Bickford the As next CapEx producing should the approximately over enhance have to flow coverage of a $X described investments portfolio, cash which in million the of NOI couple program and

million. We to a also results million growth. with and estimate first quarter Bickford's going which XXXX us continuing on repayment repaid is million. Through and Bickford record deferral approximately quarterly align approximately $X forward March of which while formula repayment, we repayments formula, was based adjusted $X Bickford's older revenue XX, the has improving fundamentals the $X.X

which sequentially of fee driven housing entrance improved the and largely senior our continues primarily performed X.XXx Coverage above portfolio discretionary tenant to case. on our uptick an from from entrance sales. Discretionary our by of pandemic largest coverage, to expectations SLC, to be began, since another which entrance fee quarter portfolio, X.XXx the fee our includes the Our at excluding that X.XXx performance other improved solid sequentially communities X.XXx. SLC, reflects has

As at we and entrance The Specialty see is classes Remember over reported foreseeable results do seen, to X.XXx. coverage due long EBITDARM coverage represents variability overall, asset of all coverage CCRC NHC's from is Hospital NHC that that fixed sales. comparable other variability have time, charge in coverage shifting the portfolio improved and which in operators. not X.XXx. improved sequentially higher coverage delivered from and reported the fee to steady corporate in operators X.XXx, X.Xx the we to a our have future. SNF coverage But the solid and period reported not the at for

their XX reference, NHI, of payment represents and properties, payment of owned only our point are XX operates significant fixed lease a by obligation. NHC For which

to quarter The filings, scheduled rent offset the first a another than in an approximately yesterday's operator presence in in of greater resulted remaining percentage previously portfolio, $X.X straight-line NHC lease. Separately, impact of should decline $XXX,XXX much more through are operated rent in million which process percentage $XXX,XXX. Recall the base pay prior detailed cash has by continuing $X the Wisconsin SNF of the NHC our SNFs on this on but in mass As million net period. $XX.X September release year maturity in rent to not the at receivable from of NHC X that we in sold This proceeds the the rent in properties and amended increased increase that the declining the rate sold to X in for which effectively state. rent the the million XXXX, year. we transitioning a that write-off, rent has X

SHOP, in the momentum continues throughout to Lastly, build portfolio.

to approximate in year-over-year XX.X% X.X%, to XXX an increased year-over-year a $X.X NOI Operating XX.X%. margin increased basis point million. XX.X% to by XX.X%. fees increase improvement increased quarter Resident X,XXX expenses leading point to basis on First occupancy

basis XX to rely sequentially RevPOR. while quarterly basis Our flat on continues margin relatively the declined in slightly growth, drive to by points, Occupancy evident using rate XXX is points. occupancy strategy improved which by the

we the quarter so first see quarter, occupancy our acquisition on weighed though margin. is costs The growth seasonally which weak, throughout happy were the higher, to were

to the As we expect current to year, cadence SHOP quarter, lead last XX%. the at of would quarterly mentioned the high grow range which the of throughout to end we growth XX% be guidance NOI

approximately into year, to million margin We growth $XX in help also should invest $XX to year. million drive portfolio which SHOP this the expect the later

that John? generate Our longer-term in range margins on to discuss can over to I'll portfolio unchanged. this teens the dollars NOI turn results financial remains guidance. high our view and the mid-XX% call now in John the

Kevin, and you, everyone. Thank hello,

strategy mentioned, toward continues additional to organic on pivot As previously NOI execute be Kevin our Eric our and growth accretive from opportunities and investments. to

is all of on to us that indicate today track. strategy our results Our

First from quarter NHC rent as percentage and our reflected revenue results primarily the results Bickford. above in were expectations

But inflection results. Our previously as seller We believe pipeline. cap capital. to our compared reflects cost talk about more rates spoke about our are between our means that Kevin an our guidance. point for a guidance improved moment. in this we seeing what improved this year further guidance our of I'll improvement and February first,

and For ended FFO NAREIT net March FFO XX, and per the share income, per were XXXX, $X.XX, diluted common normalized $X.XX quarter $X.XX respectively. share,

declined share was X.X%, prior improved increase our NAREIT a X.X%. FFO diluted year XX.X% income diluted respectively, Compared to approximately X.X% year-over-year. the share quarter, $XX net common FAD is million, by per which per and while NFFO by Our common and

results million of base a the in occurred attributable that percentage net to decrease year-over-year quarter Our NHC first we for the NHC, in $X.X $XXX,XXX property. rents rent increase the comprised that in of net in million associated rent of first increase prior a disposition in for $X.X which rent revenue was rent scheduled property quarter, high-performing a XXXX. Also $X.X a deferred the Bickford the acquisition X year recall of included recognized Northeast noncash with million,

million the $X.X property year-over-year. Other repayments discussed. Bickford one deferred which items those were straight-line significant receivables with Excluding approximately impacting new write-off million operator, results to of associated planned transition rent year-over-year a the $X.X rents, included previously of up the Kevin of

to result we Our strategy our end March, in be the to in NOI our SHOP occupancy of is and which results NOI forecast budget, our occupancy our while additional of tracking segment SHOP increase continues improvements. At believe were will guidance. ahead

to million income SHOP attribute $X NOI essentially attributable cash cash $X compared rent period million $X rents interest SHOP quarter improved interest included in improved after to last in cash and flat annual to quarter. Sequentially rent million was compared the rents. increase remaining in in this NHC including $X.X million. $X.X to changes improvement $X.X deferred year G&A. Our net and to contribution of growth FAD in this to increased million when The up revenue million improvement rents was $XXX,XXX quarter, recurring was from the fourth cash same which income escalators, we FAD sequential and fourth The collections. the CapEx

During are closed to the we previously our from disposed properties investment first guidance. continue property updated all X we the assets on X loan property impacts sale. end investment quarter, have quarter, X.XX%. in for Subsequent transition included the first held million, for small to $XX the dispositions we mortgage of yielding mentioned new and in and new the The a

metrics further compared XXXX Our improvements. when QX QX XXXX to saw

to midpoint is raise to in ended $XXX.X of This our guidance. raised the range improved range and net Last and compared was and the night, FFO or full million for initial XX.X% to a $X.XX when period guidance respectively, our compared year Normalized adjusted EBITDA $XXX.X March, a year. XX.X% X.Xx, XXXX. diluted of million For February to raised payout a to prior $X.XX debt share. ratios to to $X.XX per we X.Xx FAD

our and midpoint X% $X.X million results. XXXX at our increase the comments to X.X% a February's increased the year FAD million A the of million, $XXX.X point range full year-over-year $XXX.X guidance We represents also at guidance. compared midpoint regarding few to of growth to guidance. FAD also guidance is a which the at to more compared high

to discussed. amendment the Bickford remaining Commencing Bickford's to expect to lease, from rent X, increased see Our was recent million. guidance additional continue collection includes balance. $XX.X a April we previously to increasing from annual cash Bickford million deferral which Kevin $XX.X Bickford's rent And the of

SHOP NHC guidance year-over-year, Eric from XX% say we rent XXXX And have to is uncertain, the of quarters. the growth the includes previously revenue of capital the mentioned, Our view not increase program. The rent. program in future from We'll which expenditure Eric this more in is guidance. yet activity percentage recent conservative. this in to as NOI our timing guidance we million already be up includes still committed toward have this so activity to about $XX program future mentioned,

but unidentified new does of our commitments our Finally, the includes include new not investments. investment and a fulfillment mortgage expected guidance any

at At $XXX.X $XX $XXX end sheet a we April, of and continues our under end September. program. have At continue of and end available million availability ample and million we of $XXX the revolver cash over our the on revolver debt be single million for outstanding this source a us. to year the April, had $XXX of only for the balance full strength million liquidity of Our ATM in maturity to million

debt up year. we extend maturing maturing, our loan debt Looking $XXX $XXX option ability loan, million which does an the towards NHI's XXXX, the an to term million is this have X additional have for in of to

for X, share That and XXXX. June payable Directors shareholders we remarks $X.XX prepared concludes of of XX, record today. August night, a declared last announced on As our dividend XXXX, our per Board

again, So With lines questions. please thank joining open operator, for call. our once the that, you for

[Operator Instructions]

Your first Anderson from question Rich Wedbush. is from coming

presumed I'm on guidance. was like the clear. Bickford, previous in the already part just increase $X not increase that I So that want increase. sure a was your correct? make to -- of guidance The million Is

No. let's about increase hi. with guidance How was was part an there say it, This in is associated our -- that. John, that? Rich, of It

right. All

from they're changed like deferral paying -- rent. you say the can percentage and it's April has you the both repayment Now the rebalanced -- with you X reset? Is base then standpoint how the balance How pays base the rent setup? with ratio XX% of new rent, that like that when and deferred off how has have change that XX% ratio

Rich, this is Kevin.

higher So that and last they performance what based over threshold the modified threshold had the we it's baked because year then is the rent of or the then effectively in on revenue more where that percentage. slightly currently were lowered percentage operating. now revenue And increase base did and they've

going being last and that the at in be the balance on where increase ostensibly with XX-ish we're And -- still to So base at -- CapEx have also would a still interim we're up. given X performance, over then in, more be year. seemed we apple, expect variable would leasing rent where they're we more step. what a in rent they'll this you're to We prudent have reset there another to their still the your have some rent years. But percent putting be will now bite net then start of it saw nature. doing But again, and

is John Hey Spaid Rich, This again.

way. if Let me help a I see can you different

XX, the to operations go you result our you results the what If X kind can months of were. of page, ended March see XXXX, in

annualized can quarter the approximately just that you signaling $XX.X $X.X to there's slight million, you annualize plus Kevin you compare million and what a mentioned, If increase the we're per $X we're which see that that number, it is expecting. in million

right? that the higher for base give pace back that rent, up to by which is that I You're lowering the, you're right. exchange guess, willing basically but So -- in pay they

happened here. what's precisely that's Yes,

pipeline. for the me Last on Okay. question

million, $XXX $XXX of mentioned million. You LOIs

You of a that simple I is said though, XX-XX even owner? mean, kind period for lender a a versus time, get you overleveraged debt, risk, fee a there being to of how the much too short term? are let you get those out kind of in to you even of don't far watching that that of to loans make equity ratio sure whack

Rich, this vehicle a we put a to ownership at Sure. it's and longer-term when sure the versus again. a is we're making right that trying lease. look Kevin consideration. is at relationships, for keys loan to a property The point, a stabilized It's like acquire entry more definitely into us

We So want I consideration our think out But there. you're have spot for us. some a get think over capacity to skis. on. that don't be something would It's I we

to going where really have It's are run. versus are stabilized. some I room think be the buildings acquisition and to more relationship we But stabilizing again,

is to ultimately, for that's in always to loan And Our going preference acquire. we're be a scenario. angling what even

some there's and that be the see business is of of or more So get then property to road. kind the more let can that as more joint something refer venture new season we relationship, long-term we dating this bit a a to down if else together the whether more, a lease where have a have period what relationship, do them a we or

from Borden Your from is Capital next Eric BMO question coming Markets.

rate Just the occupancy, to And prepared on the mix and then remarks tie risks the between year? occupancy in should with the expect accelerate look SHOP we opportunities to the rate, where trying are in within your pushing guidance, big driving throughout and as start potentially portfolio? of increase kind the we just to about just

piece we on Kevin. we will kind which aggregate -- until We're going building-by-building on of is be this XX% the to basis on basis. a get mark, more a to continue crest an that push going occupancy it is than Eric, be to

be where fine-tuned is that going having. markets, they're and the specific that with the kind their volume program we're each at leasing we have one of So to CapEx for

now deployed, mark. incentives going that believe been few From standpoint, be it's have the to as see the more is So going end buildings. to we the in we We're that a probably once I fall or have We're progresses. been we matter the again. That's keep we into would more sure put as a start getting front to incentives you're pretty residents cross stabilized the off move-ins, steady see getting I in on have those going believe that each place going building, on that one cadence the capital as tailor-made wane some doing there we that you you're off residents so on of -- making more to fall short-term then year that's right risk a tell XX% far. to a that

years, the of some it's to Over done. projects the CapEx last get longer couple been of

have I a Merrill the up work the done both on but get in we top think the taken doing work, and to and are they more lined can so Discovery the has liked. time that these best getting buildings, performing again, of and forth subcontractors and probably than little would

I've on if So it I'd leading here. getting the cadence. the it's risk, we're so good into indicators a there's still done, second far, But seeing quarter and keeping been say that just cadence. more going

So feeling positive.

occupancy And the the just recovery add opportunities to potential there? the external pipeline, then -- SHOP on the growth helpful. is incremental at board and to That's given ready acquisitions, look

Eric, be they've that absolutely. acquisitions. and of that that's this that this to I And can to help think the perked having avenue Yes, more that I done, Board forward. and that getting an different do people seen now turned is has CapEx assigned growth nicely. operators his around an ability really Kevin up completed. all bit Eric. certainly SHOP these And But up a program and will going think had more experience for line We've buildings holiday Hey,

coming Instructions] from Markets. from is [Operator Your Wurschmidt Austin next KeyBanc Capital question

with the operator question. relationships diversify of on SHOP Piggybacking look and would that to willingness look do would of kind up? I scale additional operators guess the to bit on into existing enter and you portfolio? SHOP, the last given base I you a Or mean, the more to sort deals do little new

balance Gardens as go as reputation. and much with again. going mean I'd Eric current venture Discovery, or experience, operators. deep the SHOP a is This would profile that, same we're with new Merrill I the delighted a to to joint that And great the be our can by be If co-invest they us sheet operating do so operator, both. partners

So kind are operating the those new a picking when criteria partner. look we're we for of SHOP

a resets clarification, repayment helpful. is specific but as then any here revised market market X-parter for sizable Is there's so the That's How repay how rent then isn't of opportunity the out, type process on resets? you of the a reset compare stacks that what it forth? just rent in up they maybe the Discovery you I But a And in and emerging kind formula? the curious, was Bickford general. believe. And pushed occupancy just separately, coverage on know cap as do Bickford, 'XX, it quarter? And tenant rent contrast I'm see and there formula into kind amount would Bickford versus you look that would as any there? rent I as it on of

Sure. Kevin. This is

pay the you referring cap, you base the your pay of reset, clarify Bickford are or given a say to when question, they the any time? at they to amount would On rent just rent deferred

rent you NHI which would I'm about quarterly was there's The capped that out. any curious that the deferred how just deferred talked amount rent, be with revised. in just if payment And formula,

a keep Okay. lease. a to on are there's not we we clarification. NOI REIT, a on with there. is as Understood. revenue. do And Thanks No, cannot for participate in pace trying the What the in cap

cash and in margins, that invest off we we're meaning see keep to where flow trying with why in the formula. We're margins, but line to thereafter revenue their it they basing still communities in also to continue operations. that's the have So it some

the So around. again, just no cap, moving but pieces more

line amount a the rent, So to we have allowing previously. rate market what but for that's the run in still appropriate signaled base we of with

On that the kind the That terms of timing. in still to is base then fresh it's as the revenue rent component. reset, compared of comparable added participation in Bickford in that Discovery rent and lease, we modified

again, But So that to was in of revenue relates it's as it done relates deal now. a amount portion that pay the started November. They've it. to small small to as really it just

do would expect then up Bickford we we in over that pricing and some XXXX. So would of time, to ramp like reset sort with did we

we're just what those season that's made I well, do we've we Overall, but as occupancy. So room the move-ins, which seen bit pretty in need they are underlying properties like operating confidence to more got They've feel discovery. there. SHOP, not the to buildings before the in are on a have keep progress their but little same on

their You've been teams buildings. are similar focused on SHOP these seen what on progress has have the that side. They

moving have we So confidence in. ability their to in keep people

next Juan Sanabria BMO. from is Your question coming from

use of levelS? unique you wanted and to parties compares I know about reset revenue Just year-over-year that the with percent NHC. XX% to the to lease -- 'XX. pre-COVID the NHC's ask with how kind comment the time a or with rent sorry, it's situation related in involved on strength how Can their how to increased

Juan, this Kevin. is

seen higher think some percentage was for rent this increase it than time. Part of payor of quite the is is catching we year sure up. So in we've that,

there's Medicaid been example, some rate an to specific Tennessee, As increases.

nature to the nature. of seen going catch-up watching of term it revenues several to Clearly, payments the from from states that lately. They're the make Some of them that were be But increase. in done rent more rebounding is side. we've long benefited COVID have that sure they're on

something sticky. sure making So going watching revenues be that these it's to are we're closely,

are. it So looks like far, they

good news, we're something that's still think on. I but that So focused

Hey Juan, is John. this

XXXX. record. that are to that in pre-Covid, pre-COVID of properties X go I the you got you disposed a think to we included when they remember And

a that now, for So it's have we population the record.

do any And how guys record that visibility have the you margin same-store on would pool? compare on to that

response to that. a of more give I'll Well, global

lot seen operators. a have we've think with labor of pressured I margins by been

see macro buildings. and filings their at look can margins You their their are of on what kind

-- all been pressure there. would agree been -- there's there's think there's So some I we'd

bit compared So a pre-COVID. constrained probably to

revenue it's there. good that So is additional see the to

-- are themselves, producing are additional So there but they NOI there. some it's factors counterbalancing for

Juan, John this again. is

a that terms see. public of the do lot have sort best is We of watch limitations we're NHC. same from we you in getting The the of can information information

their of revenues basis. improvements I to on So see think total we're an aggregate continuing

our can't we completely of piece we're portfolio, big to right? So a but them, that relate

question. And just last That's helpful. the

be think, we or me Bickford wrong, be is guidance? should with quarterly Is not, the repayment deferral amount We assuming per that it you be should this $X John, expected from correct was I if referenced million, taking about that going going maybe forward? think John, built I'm was quarter. into to it is I result? And the ? cast

me well. also really And about on guidance. about no, way. not our we're lot and So thinking Bickford, any haven't We're assuming I a it you to in answer what let trying this we're on front -- conservative be as concession Yes. told concessions the

tell So you that's to I reason answered Kevin answer what can lot it may I'd best well, we have better we're is -- what of to really but believe kind mentioned, going see not that have the a give than to I like you.

Instructions] [Operator Anderson our Rich is from from coming next Wedbush. question

to comment buildings. on anything But commentary assuming the is situation like land Do say equally the ask that Or keep the have role from record, today? this Board you're should you about whole sensitive on and Sorry point? should I -- a can't on that we you I to in. guess at I'm prepared that

And you, Rich. landed engage scripted ours. We with answers buildings. we buildings we'll their views and and have dialogue with constructive give share appropriate, to better We've to some can land understand had as continue

elements it. don't wire center Warren do of came comparing the requirements. I of across comment progressive then inability something the from maybe sort meet staffing letter I on the to some now caucus executive any that, of similar to my skilled minimum their minimum you to and political thing, Sanders say. And operators solve nursing if I their the But the salaries should just or -- you to have Okay. a on know staffing other saw something

Rich, this is Kevin.

the a So we there's are did read pushing our understand see nursing why and maybe letter they the it on and also partners and skilled back why issue. question, understand

be more probably their the good then operating that's applied delivering a our RMs to think well probably particularly saying probably been are our When that think there think Star and thoughtful buildings. Yes. CNAs. what ratings partners really than approach thoughtful delivering how I for there's against care. that good aggregate and do hours everybody care way we and there's is portfolio, get should and it it stack And it just pretty look in at are to a they up also I versus -- and applying

not the kind where and just It's of into have skilled hospitals struggling them. then pick much nurses. even be keep trickle-down housing to that I It's issue pay the our ability people the down flows nurses think it scrambling biggest get then that much available. We need not the there, effect and care get the senior and we where residents matter to you able be at the see markets want to especially where don't that are have they you And it's that doesn't they're labor. available. it's to to and to just a when is the look to retain for talent, It to They in to attract first that nursing, get able so RMs not they're don't staff. they how

So a thoughtful again, work done that's that it more compromise there. a approach there's there's be to to seems can there I be think on think be likely like this. more going and like to out

hand I remarks. concludes conference will to Mendelsohn for Please now Thank Q&A go our Eric That ahead. back session. you. closing the

look everyone, seeing Thanks in forward you for NAREIT attending, June. to and we at

concludes This today's event. everyone. you, Thank

at wonderful for Thank a have participation. time, and disconnect may this you day. You your