Omega Healthcare Investors (OHI) 14 Feb 182017 Q4 Earnings call transcript

Good morning, and welcome to the Omega Healthcare Investors Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Ms. Michele Reber. ahead. go Please

or Marshall. historical good Taylor are and Chief me These acquisitions, are Operations, our projections, Form dispositions results results such identifies and prospects may financial cause statements. may today outlook, XX-K, that be our Development may policy, this and our Securities in Thank events those CFO, see business or morning. of condition Bob the transitions or portfolio factors restructurings, which our conference our and as not actual CEO, Exchange Jeff releases SVP press forward-looking regarding and and contemplated Commission, uncertainties statements forward-looking on Pickett; without Steven portfolio Booth; made specific call Stephenson; Omega's actual including, facts during generally. that with Officer, you, to financial cause Please operators, filings differ Insoft; risks our statements materially. With forward-looking limitation, described Comments materially dividend COO, Corporate to and differ from involve statements, which report rent Dan payments, most recent

at our to release now FFO, non-GAAP will the and adjusted issued today, to call website of financial of such and generally of measures, accepted the some FFO, well an usefulness will www.omegahealthcare.com the the as measures, as to FAD over I section we case the these are turn explanation EBITDA. the adjusted comparable non-GAAP yesterday. FFO, under press FFO non-GAAP Information in available of our in measure and under During as Reconciliations measures call most Taylor. of refer the accounting principles, Financial

call. quarter joining and Good Michele. earnings five discuss topics. conference I'll thank morning Thanks, our Today for fourth you XXXX

future our our not to and for evolve of XXXX but assets, business unique strategic the we our near environment position continues fifth, operators attributes fourth, and and healthcare and third, sustainability to as our repositioning, in repositioning; markets next the second, our success. resources, guidance; internal success, external our the term, continuously Our reimbursement delivery dividend; Strategic asset expense just asset evaluate the for portfolio decade. resources over our

and real or not that includes market do criteria. transitioning estate assets on operator, selling meet strategy Our

portfolio improved and opportunities We expect resulting coverage durability. significant and growth have to provide term long

trailing assets XXXX, our only to proceeds were of rent, XXX on months the our million, the cash part million not assets during equate revenue of cover to did underlying As over repositioning and radials yet sell The XXXX. in to related flow while cash million these The fourth we the XX.X%. was able achieve to we're assets year-to-date is the flow in potential and reduction quarter we XX disposed strategic XXX assets these evaluating $XX $XX in million XXX on disposed million. assets sale

Our reflect SNF strong buyers. market sales assets the continued appetite for results to date local private by

XX% over unprecedented wherein share, a The topic years. straight from share is five of proud increases, XX We're and the quarterly dividend $X.XX dividend to $X.XX per dividend streak our we second of increased sustainability. per half

driven was Our and predicated growth quarterly by FFO dividend growth. consistent FAD on and our

increase a not year do As during will growth and our XXXX the strategic therefore expect a activities, of be not result we XXXX. to repositioning dividend

of quarter. per and very current the dividend in sustainability $X.XX to share confident per However, of clear our the percentage we be I payout are want that very coverage

we're subside. We strong the are believe beginning XX% With well our been returns current the deliver and of with substantial we've shareholder years. to positioned next to headwinds five over yield battling the beliefs

funds our as from FAD AFFO restore per run will guidance share. it while guidance play in big guidance on FFO adjusted and redeploy to to to our longer sales $X.XX $X.XX Turning role Timing longer operations this a the reduce $X.XX the takes our quarterly $X.XX is share, it is takes our capital rate. adjusted to guidance, to our per asset

In also impact guidance. the of addition, timing our and may extent a Signature, ultimate to Orianna outcome and lesser

We with a us we rate expect will throughout quarterly AFFO as trend results XXXX, into our upwards that run solid providing baseline head XXXX.

with expect asset we or more during sales XXX million Specifically, of year-to-date. million already completed XXXX $XX

occur We our the delayed. later of outcome part by in in capital XXXX. global expect will could of but resolution ultimate timing offside be our with end, of the sales year proceeds Furthermore, related Orianna AFFO likely the

to market we agreement believe the is an Orianna in way. choppy not we and date particularly to restructure robust. However, remains acquisition are portfolio organized The closed an

later come increased tends My in X.X% we've the cycles been market labor as has XXXX expense year-over-year. to have Omega moving opportunities into as expect direct uptick topic reimbursement a cycles growth would fourth I the wages acquisitions significant down care meaningful current and the several within mergers to seen XXXX. see The to in environment. an However, there portfolio is through and SNF in end. and be difficult and industry,

wage rate is Fortunately, behind, manageable wage generally level other the increases although generally growth and coverage's, lag related reimbursement rates eventually pressure labor tenant up of MediCare growth for catch on puts inflation. and MediCaid

Jeff will reimbursement On more later call. much generally in front, the to the regulatory provide environment and the neutral is color favorable.

is the that term long positive overall this a six our just remained beginning all fairly quarters. has of over steady across last We the trend occupancy markets. believe Lastly,

an senses of intelligence that a we start number in see upward significant by best trend is Our XXXX markets. to should

faced several late management current including navigated environment remotely experienced attributes XXXXs. and resources, positions that these include, consistent ongoing markets, unique that is external success. Our one, not efforts. be topic business in we is solved late extremely repositioning that our emphasis problems for to Internal early and with The in industry not and resources has us the significant team My Omega final cycles an the through XXXXs growth has which although XXXXs. the will resources favorable that is close the internal

consulting Ritz Stephenson, development we is of Two, Our house in-house in significant Booth, term. firms nursing regulatory and perspective, thousands to With dozens leading with believe significant them. hours competitors. and most We by two support analysis this SNF have incredibly and led expertise apart a decade. by that the Dan of finally employees comprehensive into knowledgeable and begin our staff we three, most detailed expertise skilled of Insoft, by demand supports next and partnered reimbursement deep own external led for we the Steven Levin to construction that an SNF operating demand will that operator throughout literally had dedicated to Mike And gather drive the extremely have XXXX. we properties. strategic that from business and unique we We analysis, From demographics facilities Steve long we'll have the the feel the holding an relationships. our Marshall the Jeff for going core attributes resource wave have set position demographic us assets our of led Bob

have diversity. We most the geographic

have We the best decision data. making

I'll have to on end high the deeply and in significant these significant turn the a and we a advantages call We living with view to long class board management capitalize growth over engaged team a the lastly, have experienced And Bob. creation. assisted in now best committed we growth trajectory. Maplewood UK. shareholder to in have value operator term with And opportunities

Thank you, Taylor, and good morning.

per quarter, basis million FFO or for $X.XX $XXX as $X.XX compared fourth million the was share Our for to $XXX reportable XXXX. or diluted of the per share a on quarter

and quarter $XXX,XXX of one-time in financing revenue versus offset from provision million quarter The approximately was Our the the uncollectible for million primarily includes expense, revenue a the stock The adjusted excludes Orianna accounts, million $XX a compensation share fourth and basis incremental impact third $X.X per impairments recording was Daybreak quarter quarter. fourth based was the over partially $XXX the in million for quarter million FFO revenue non-cash million in $XXX revenue. decrease decrease $XXX,XXX revenue cash on of for Orianna in $XXX of Daybreak $XXX,XXX of approximately $X.XX non-cash direct therefore result The and $XXX in was investments of for of quarter or million in the new placing approximately no the revenue XXXX. by Operating completed of revenue of for XXXX. or and on $XXX leases.

for G&A is quarter the our quarter, G&A $X.X million which third slightly expense. expense above of was Our

our $XX.X million, quarterly first to For $X.X and modeling and legal resulting quarter divestitures our we rate. run to second project million purposes, G&A be of related from $X million approximately XXXX to before to additional traditional expenses outs, run million to transitions rate $X returning work operator

and XXXX second of LIBOR debt balances million cost for and for and $X higher out interest $XXX The term in was floating $XXX in expect we new associated expense investments the be bonds XXXX, to of same to Interest addition, effective $X in debt, expense the a from December XX, quarterly fourth of period million cost, issuing XXXX. of excluding rate approximately non-cash million million, a the loan our consistent higher primarily versus based into resulting a with entering deffered million compensation rate our from to quarter convert $XX higher million overall quarter $XX when from refinancing In financings rates. cost stock related resulted quarter swaps non-cash with XXXX expense XXXX. to blended financing fixed the XXXX increase

including opportunity to asset sales with to asset we Taylor identify to As via continue work mentioned, our operators repositioning, portfolios and transfers. improve

we quarter XX facilities cash fourth approximately gain As $XX proceeds, a in for million. million net sold a in approximately result, of the $XXX recognizing

on $XXX,XXX received one facility final payment also We for mortgage.

purposes, related million in For the slightly dispositions. over we facility revenue in recorded fourth quarter $X to XX these modeling

of approximately or destroyed the related book an a estate recorded XX real we value value The selling price. expected charge $XX includes, of estimated million one million million in reduce facilities facility fire. a impairments $XX quarter, the During in to to to net $XX fair

in the Dan receivables XXXX. $XXX,XXX to off in for approximately with write carrier receive of line remarks. our from Signature negotiations uncollectable straight expect from XXXX related will We of sales. the provide his expected ongoing We provisions to proceeds resulting insurance recorded update in an accounts

its an that as continues its XX% receivables a is would balance standpoint, we accounting result note contractual However, rent, grow. paying Signature to approximately from currently of monthly

As in personal credit XX, receivables letter guarantees. of outstanding, significant as contractual as December partially $X.X million million approximately well of $XX had we is offset by which

increase and resolution collectability accounting standpoint and on optimistic on the outstanding future only, we not resolution basis both the will to remain Signature While timely place rental a maybe a From is to the continues and them will reached if cash balance an to of accounting. have of basis. be payments net we that receivable analyze required reached AR a with

has the ultimate no decision or accounting negotiations impact final resolution. on Our

occur could XX, we're held for in balance the $XXX as several $XX classified XX asset the to disposition opportunities, and had sheet, which we million December sale million over Turning over at at valued facilities evaluating next quarters. potential

Our balance sheet strong. remains

addition expected related than its X rental from to For has note, It's X.XX from charge normal in months Orianna pro December net Orianna, the Daybreak, X.X range the to QX outcome our I'll our times. ended When will EBITDA important annualized debt coverage to EBITDA Jeff. no our leverage our Daybreak. these cash received expected now ratio to over calculations XX, call fixed including sales, range turn three less return for likely moving and times. was revenue to or a adjusting of revenue in annual forma related the to times to was of

likely election. increase. the a congress day in the Human repealed, through and B will basket Federal risk for industry Thanks, SNFs SNF Services reduction SNFs rate federal for in market The senate yet past of pressure several perhaps was Bob, funding, tax Activity the Republican challenging Alabama continue small Medicare compliance therapy and reduction the the were delayed. months leadership paid positive annual on Medicare Favorable at fundings has to and year most good the focus the with reform the threats Medicaid in took caps has the reform in from to Medicaid Agency again Regulatory as concluded reform further with and legislative permanently Medicaid Part partially in elevated lessened per decades. In morning, regulatory congress. everyone. majority

funding the payment partially congressional Most beneficiaries services to B risk XXX billion of funding the ahead frequently importantly roughly the that market as though approximately is limited to a to cut indicates Regulatory a a XXXX SNF Medicaid XXXX potential legislation, or such several the the Looking The X maintain by longer Phase X.X therapy therapy XX tax opposition for X, total office no Medicaid for senators CNS X.X%, November required the existing cap could to CMS be of caps offset model legislation, years, by based reallocate bundling provider January, based CMS's from exceptions Improvement requirements to risk categories surveyors Care necessary legislation SNF bundles funding in Medicare budget cut an program will XX the overall a SNF low announced XXXX, decision impacted whether Medicare Notably, under episode in XX five on voluntary for change, significant resident estimated repeal any an to previously the by Advanced its that to for XX of current but effective fee-for-service years reform CMS cut over balanced models, models. BPCIA which of Further, a operating million February funding improve to compliance October was annually. with the Bundle therapy ACA run could replace concern basket legislation of their X, to funding payment a in Anticipated train on implemented pressure outpatient XXXX Republican on October to star outpatient year. life. covering or on or model up caps used acuity extensive bill SNFs per initiated in with modification approach to characteristic. existing programs, and from announced diagnostic bundles away January therapy the bundling day would maintain Part permanently fund receiving This participate II provisions, system paid emphasis is year. under B heavy in The and previously cuts. XXX the to intent quality physician frozen reduced permanent increase such million industry delayed in to restores to that the services to attached to Continuing budget in eligible Medicare of to resulted be finally next from implementation new resident passed the trend of process be Initiative for repeal the X, a more spring episode reduced will as a with restore resolution months perspective Payment legislative XX announced annual be mandatory Medicare effective coming XXXX, in the would government. federal million BPCIA provisions. to SNF for the to awaits the in of BPCIA groups. repeal SNF Part eliminates continuing hospitals annual approximately the the inspection the the not initiate will level time aspects participation as classification claims. system those with for for fee-for-service state XXXX system Medicare its ratings allow SNF be CMS enforcement XXXX October the sufficient can payment down proposed this under the from SNFs of in they as existing to begin most

January lead significant of impact Health have expected CMS. are to the Azar's As the the confirmed to regulatory on that such, Department the SNF of XX, continued Human Alex a CMS appointment Seema SNF the likely side policies senate under Trump with Services friendly of is Azar assurance to not by the BPCIA continue, over with provides and Verma. revenues. On especially date administration to confirmation leadership

early sources, requiring rule, capacity to substantially and revised appear fuel fuel a the the resolved to provider to expected expected to the be for Governor's compliance of new I rule XXXX. litigation storage been January addresses March in scope X, onsite and legislative power June X, event will outages to revised turn to Florida and deadline allow rule the increased On XXXX, the extendable over is negotiations Dan. reduced power state requires facility emergency that concerns regulatory front, with of over requirements state the reduced be in now for coverage. generated additional approval The have call

and good Jeff, Thanks, everyone. morning,

XXX core operating trailing increased located respectively, period the Kingdom. These XX quarter XX June XX, ended As operating X.XX third-party for coverage operator operators facilities were within in EBITDARM portfolio versus portfolio across during EBITDAR to X.XX of asset had times, months XX, an XX-month spread Omega United and third XXXX. and of approximately of XX,XXX XXXX states and XXXX, times, respectively, X.XX the XX with X.XX our for Trailing facilities the December and beds.

Turning revenue. matters, our restructuring to portfolio terms in we on are of last two highlighted operators, our three of to call ten which efforts amongst related top considered

reach our sales, and million. time. confident in active our and event of We transition Orianna in a with in range that Orianna weeks. restructuring to are or stated details final We the of rent several to remain $XX plan $XX next be asset with press at We confidential hope rent negotiations in release million will previously equivalent the between agreement post the that

our legal progress toward comprehensive Moving agreement of will landlords, separate primary last legal made to Signature silos effectively portfolios and on distinct three which earnings among Healthcare, three the Signature's into considerable call, bifurcate each all virtually since has been Signature finalizing three and obligations. a

As part payment rent and provide for of defer capital working Omega has loan. a agreements, certain agreed those to obligations

While material future, contingent constituents PL/GL in we resolution its satisfactory that all restructuring of restructuring will remain claims. finalized cautiously upon with optimistic Signature's the global remains near successful such a be

forbearance returned the six amounts payments contractual the a reducing entering entered considerable Omega documented, half the Medicaid average agreement rate, paying program discussions as and in contractual call improvements both to last the on made with to percentage had beginning approximately as mentioned into a latter accordance XX% repaid operational last rent corporate payments with overhead their which Orianna XXXX. and We January, Signature, as months, their and rent UPL quit rent. of Daybreak in instituted of expected including agreement. backed in rentals been made XX full similar to in over by fourth have nature program amount that increasing in in of the the And quarter the states. begin into program, the the operator Daybreak, ongoing plus to resulted their Texas another to nearly during be quarter with anticipate point addition settlement In other Omega fourth facilities four on sizable federally in pass-through

sales to over have also facility an several eight in to bedded agreed in effort facility underperforming consolidations markets. We part out and assets

filed our operators of just of three addition operators and based XX top in states operators, for personal award result of such Texas the Kentucky and the In affiliated as a in of operators bankruptcy its the million Mexico Preferred a the jury mentioned, operator the certain Chapter injury against suits state of another New overwhelming one number states. to Care, $XX in those and initiated Kentucky ten of

of Omega to XXXX, Kentucky, Omega to no related to XX agreement transition and XX lease all Arizona Preferred exposure Care a Preferred entered into Texas, we Care While Preferred In has New and in November in Oklahoma. currently Mexico, facilities facilities. Care

currently operators at profiles. results than and longer with identified have with term facilities trailing released has portfolio coverage this Omega operated processes times. X/XX/XX for each separate Historically is be current at will X.XX underway. XX-months times EBITDA XX are under operators one that to currently credit expected less leases enhanced We state all transition It

Texas fourth XXXX million Omega million six in in nursing Turning quarter facilities during purchase consisting transaction lease funding. to skilled new and for $XX $XX million completed $XX investments, CapEx new in investments of of the

of X,XXX totaled million CapEx New XXX The the with acquisitions funding XX all XXXX facilities million. beds. inclusive of of XXX consisted operating for of investments

for sort portfolios six worked Year-to-date of to of of pace facilities. sales year, million. in the which Omega Taylor million poor with physical proceeds either for to Accordingly, escalating for Omega earlier, and/or weak poor historical conditions in divestitures, proceeds. these $XXX disposed starting obsolete closure Omega exit. XX during driven divested early plans, of XXXX, Throughout aggressively in XXX fourth approximately of we facilities our were facilities net of The and/or facilities net XXXX, throughout XXXX, of market operators XX reposition a deteriorating re-leases proceeds. by, mentioned through disposed our quarter in approximately operator we relationships or As had an operating performance, XX the million XXXX, has majority total net

are coming facilities to XX We in the currently quarters. evaluating sell additional approximately

over review majority if upon believe turn repositioning dispositions the future, acquisitions outpace we will While Omega dispositions, to XXXX. to pending not I'll have our continue of for strategic likely we with identified near our most, portfolio for now believe will Based the we all discuss Steven call our and of dispositions operators. the

line square is Manhattan. with high we and foot Dan, our in the $XXX of XXX,XXX fourth to Avenue, today. ALF very of project, cost progress the approximately project York rise, totaled land and scheduled The CIP out on quarter, billion including New expected is on work Living, to care of $X.XX joining thanks on the planned continue mid and memory Thanks, York New Maplewood conjunction the street, portfolio In of project open investments to the with to Senior everyone at City Second our million City end XXrd XXXX. at the We're housing balance pleased sheet. senior Omega for

UK. memory anchored relationship but now portfolios Maplewood housing and X.XX represents care Care amongst Living covers in living, housing not the and publicly Homes healthcare your properties fleet growing largest times, best senior basis in the the standalone UK, our While a obligations REITs. On by XXX living only well as independent the class comprises assets Senior senior the our Gold assisted investment of as overall US in in one this and also Healthcare of with portfolio listed

approximately inclusive commitment to grow being Manhattan house new the construction and of invested and Through of and over construction XX are projects reinvestment. ability actively second expertise. end total construction active have strategic operating this is budget with $XXX capability, same of our facilities to at Maplewood the funded. We Our a our in capital to in having our the the in we XX component currently important quarter by million predicated capabilities million projects design is XX related in tenants successfully on these with represent our of new highlighted coupling XX.X portfolio QX, reinvestment continue of

construction have our The December on XX, We $XXX been capital, committed million in approximately XXXX. as progress $XXX funded through projects of XX/XX/XX. of XXX which remaining million encompass of of million balance has sheet

of thank Thanks, dedicated our our strength board of of I during number directors, the Steven. The underwriting difficult employees management all Facility efforts issues our these quality constituent's. all times their want has of that for of has the have and historical the faced protected the we to and Skilled team industry. of Nursing limited in our balance sheet our

will durable extremely predicting prepared assets to sustainable be and concludes environment proactive and this shareholder a We our allocate and the capital returns. best changing prudently comments. This operators view in towards and continue markets, we'll with

We open call the will questions. for now

Instructions] ahead. Stifel. with Our question go from Please Vanacore first comes Chad [Operator

all. morning Good

So ratio guidance, to normalized based ratio you dividend what what the current gives FAD on line approaching expected stability payout back about XXXX gets your you more then dividend XXX%, historical? payout that's the in and the of in with confidence

and about sale comments we put working. think the Orianna the it recycle earlier look XXXX it that at and eventually our - as I get growing, Yeah back to as mentioned we our when throughout proceeds work, prepared assets dividend we our in

going in asset expect of So, fourth 'XX 'XX run at going into are and selling of Orianna that quarter the 'XX FFO putting fourth are the And rate. above they quarter rate current And fourth look run quarter is 'XX. end the then and we this be we we work. at our at run redeploying and to FAD year that quarterly our rate proceeds to or that's going

of on to we working going by looks high, in are So, year. near that because sideline have think although the I it have the term end know the assets we the

above why at your some capital, rate? those get sales point or that sales, pretty that wouldn't that quarter you run fourth and recycling lag run below when there's why of make expectations, wouldn't aggressive the light between drop in Taylor, fourth at - quarter to that rate, asset and

- the ourselves as year likely to about through way think overtime, point rates. that's at guidance then on. so we It's is above probably moves as run increase the year, it going existing the our We restore or a quarter-by-quarter that run the place and rate this to will

Okay, you in trend alright. senses expect then Taylor markets XXXX. And many prepared that in remarks in improve mentioned you your

looking signals you at point So study and did? that you what that are may have that that you reversal toward mentioned demographic trend

of comprehensive in actually some feel at. picture that, confident that going by and will Presentation little markets. - taking, into provide predict And a looking condition study - us of everybody's so, we about, we bit a clinical the our that's all or demographic starting - And but individual to level provisioned. what Yes, high clear groups it's highly see age 'XX we're it the start incredibly month that talked is way. that to wave the guidance we'll is that And detail in meaningful into it's the wave confident in an come we've major are going when we in in demographic later next our to Investor done trying to the that shows very

time? to aggressively any Alright, over that hints how moves as

if consistent a look in there's push the X% it's just from it's you range It's the demand a on this so X% spike, the to business. consistent, forward, point and in this not it's annual, pipeline not on - supply its

one that helped just million that of Can was improve coverage, what metric? then time's this that's quarter and that you million. in about XX quarter, roughly you've portfolio rent to one seen me, from changes talk to Alright last below total more your XX down

that again you on can Chad one? come

I'm sorry, Dan. Oh,

supplement improved just I what one your percentage this the your in of So wondered was quarter, under time's driving on rent like that? it breakout coverage, looks it

or - got there. nine were sold up re-leased there of with - or It was the a else, buckets, into just either they're and so over to then out portfolio's a couple that operators we of couple that so that above somebody crossed was higher

taking questions. for thanks Alright the

Thanks, Chad.

next Our Yulico Please Nick comes UBS. with question from go ahead.

Thanks.

Care. the more little Just Daybreak, Signature, assumed is some operators what's of the to actually going guidance, I larger guidance to bit Preferred clear Orianna the wanted a in - for understand

that's I rent FAD? guess, in of terms FFO In versus

Yeah, their for they Dan as Nick, Daybreak plan. maintained payment mentioned

likely guidance. we that Care million, we of Preferred the Care it's a in - The were process to contractual under those for getting transitioning Dan, relates range with then of Orianna is the the qualified done $XX happen once in line period caught in likely - contractual at the as how as But, XXXX terms to if we'll that's better up little $X pass frankly this of mentioned, quarter the a which of in that's we changes towards of So, and We'll run it's negotiations those Signature million those contractual to or the - million X result, of is is on and rate. finished Daybreak are at on to and AR, transition $X to it not a really - it's under and that's the be conservative negotiations. Preferred basis book about that around the terms think assets. of update those and you we begin that in assets. a they just that to question timing quarter. with our get mentioned, guidance backend going end XX of which

will no Signature is So, our change. expectation have

right? I be there said that Okay, and then their their rent Signature, I you thought to XX% just is on paying think today, clear of -

That's correct.

the in FFO Okay, so point still for from also it's an year? rent the booking you the assumed that full stand for for are FFO and rent guidance guys is full

It rent is to the sitting and has AR our restructuring significant a part full billed-to-date will look for plan. and credit waterfall where we are recording is that that that, part recover of behind the We the overtime. detailed

answer the yes. is So, yes,

guess you rent? are point be Okay, but what already paying be you on - rents, said right now is which you would - agreement top I some on deferring may not under what may the at they

not contractual we're that's no in No, If to our deferred we $XX as them, rent the with reach would ultimate contractual our case. rent rent able agreement deferred of to supplemental million. our be close as full out and disclosed the

get rent of deferred So approximately to is to an the out be XX%. assuming answer we that

market that then your Signature rent does for actually the year, factor right now? is in FAD and Okay paying the guidance not full that

for expectation our it Yes, Signature. in and factors that

Okay, thanks.

recently to on asset mean XX% we the are close one assume coverage's that low on more assets? what me, this since should for caprate I the you Just similar to is at sales for those year, the I assume sold have

basis feel I yield XX% seeing and the math. probably the I'm done From in talked sure are to it you've market. what call think I've it, about about we that's that rates we under on a the cap good reason, Nick really

flow have of which cap XXX X.X% We We proceeds implies total cash at rate. million of analysis. XX million sold

have cap much, right. we look the As talk you math but rent that at yields, know, we rates you don't about typically

I run about sales in perspective in terms think hard XX% of very the so to results rate. the as So, range, XX% redeployment a little slippage would it from in proceeds of those

And, question then one just may. more sorry, - I if

numbers some You it somewhere, I catch broken didn't feel it this gave down budgets to what then for on acquisitions? - the - and a but of Thanks. helpful the I New is going Maplewood, for how to have be of the plan York the detail fund your are that sounds on the what guess balance construction do like on be will project you the used supplemental City in And various projects. of to it altogether dispositions other you fund

out out it at - over the X, so, peak's will of just see of the a you if the the And supplemental ground. could Avenue you as a Second a coming other just is supplemental that of remaining million. clearance $XXX for properties we commitment lot information, you the the page if look Yeah, have the

total of quarter. a CapEx including And, just somewhere of and new where million XX other million million. we reflects builds besides spend this of normal pacing between XX short just our shy really So CapEx XXX

perspective of accelerates, little of can obvious Second bit, and it spend a XXXX, this so And may a normal up the part as you that. of our when that's from of our go that about this not proceeds, of sale runs Avenue part think deployment asset this year. is As see, it's into so we recycling lot

you. Thank

with Sanabria Please ahead. Bank Juan go America. from of comes question next Our

XX% coverage with coverage of sup, exclude in seems just Hi, like your to is it the that What regards your where on XX%? rents. rent your disclosed you

I well mean, X-X. of south it would be

We've is is bucket? mean building times yet of number that what X.X is I quarter-over-quarter. Daybreak, other Orianna, But, Why the about operators. coverage mean rent in seems growing, a that it bucket? below in them, you're Is like has those pressure some I included are talked on bucket excluded, your because disclosing that but that it decreased the is that Signature,

this Orianna to So, Orianna And, is, which few on because add we it it weren't give last right XX%. is in basis. XX% of needle we to around then taken. total pretty core our consistent the you remember XXX you a or inclusion quarters. would assets XX% quarter, from about the a from core XXX went versus was we the to cash for Orianna, in. dropped go think a XX% if down quite And, little bit, that coverage And I our went of if moves quarter

self Juan are the hands at core. works they with other have that's sales are in of looked got Preferred then that's agreement agreements portfolio are long a referred into, we purchase that's three Care up they'll a portfolio start So operators, out more Nick help talking put other the really and our consistent that agreements or you're them. there be end - we sorry. as long, the vision XX% And in our how of of portfolio signed we And been transition fall portfolio's I'm purchase either which for mentioned, that we time, up is about, mean that ultimately because it, ultra that we signed additional our the the probably. two I on that is

can sales us with there, of and should It's okay. It there we going or either any that lowered What's tenant, asset through CommuniCare have be looks your is the give issues sense of on you coverage? a aware that transition. you exposure like

CommuniCare. did to ones we Yeah, We have the did certain assets, them pretty that been it facilities portfolio overall with also deal part sure, sell we as struggling. the we Ohio deal sizable arrangement with allowed a where buybacks actually a took which them on or Indiana. But XX of set been have

actually CommuniCare the mean. have but under bit to we they quarter last the were of well so, And a - Overall recorded performers CommuniCare, our slightly in been there, above the doing exposure facility. reduced the is quite mean below the those

we are few got extent will get And their they well, Ohio we better. performing and plan so, on the quite that coverage assets disposing to up more

XXX cap to And the million, asset XX% that the then the that rent on, what's of sales rate XX% coverage you about? that just on corresponds pool talked that assets to

can below it's you, significantly tell X-X. I

in to basis XX% the rents coverage what's supplemental basis? my store a And, initial apples-to-apples How the is shown of for Okay. on question. on the trended same that an

I'd have on to don't that have calculate that, my of top I head.

Okay, thank you.

ahead. Street Our with Green Please from Advisors. next question go Knott comes Michael

that, that that to little to accounting related us guidance guys. a rental of On did of How didn't the Hi but, you statistical can understand you help like help non-zero to probability and just bit sort XXX% the how take FFO, sort you fit and a that full quite deferred work. rent with sounds of probability more? going the assume booking if And is Can situation I understand cash us seems us obligation? then a understand that. a Signature would adjusted

- circumstances. put saying we has that Again, was an to they if is just of degree, the Right we confident a is it And facts is cash the part to only what basis. be in stop and final resolution the final second basically on there so, we would and it that I of guidance. revenue keep part a be would sort would that negotiation - that fact so some the that, no we part that and it AR and that to is the in required our has On to then have it cash sliding, no certain believe that's look on are on to like, today, - account. up our the based circumstance of cash fully impact a now reached recording put it what until that guidance anticipate standpoint, of factored guidance. It's reason account, will guidance our like and gone given it's for on no from we need do outcome

adjusted your would Signature so that that's guidance? from obligation 'XX if Okay, in rental your did you reduce contribution a 'XX FFO deferred versus take for and

That's correct. of are kind well. as They bad

Okay, in half far you thanks. to And that's assets what helpful sales, the or first deciding on and amount evaluating XXX on most timing, year the the plus million are say should we or? on when just, is of that the you the then expect long expect, of the how what

moved the and earlier The to going potential there far have evaluation in these sellers year. evaluating be includes longer. of are whether potential definitely there sales out some enough It's

different agreements, purchase a as than purchase but have We is Michael signing agreement you know closing.

months. would from expect this of perspective three, you a within see that I significant the So, amount timing a four next

comments Okay more or more and give at estate little us level that? on level in any you more would just is helpful your then color be M&A Taylor on that remarks, can prepared operator or color your the real

we what activity begins go for occur again market as are think estate in to cycle through that real I in uncertainty, is us the a place that uptick we've assets generally hard it's out times, would The just the a amount what when that number an real estate I and of these into'XX. attractive, of seen aren't think we 'XX level, this cycles, fair but to of end, expect sale I backend see typically there's

that, owners? type when say the And owners more those you mean of sort of fragmented market, smaller you part the and of

Yeah, in consolidating, what yes. focus we on terms would typically of

seems then and the on good other be comment why it just what pretty said is continue whether than may before on you is, the different if can and just for me one a Okay still in hotbox. comment to Genesis experience? be as performance last owners Can to there and you performance there you

really continued legacy Yeah, there's than been be about assets other different different the Genesis do facilities. better obviously on it lot portfolio's, of can't continue our than does comment it our to has assets in and why to - well, portfolio A states. are mean. I fund other the performances

been consistent We good it's we continue our on and they we management are and they a But, think job again portfolio to continues once job, it good support done to will the supported. remain perform. doing team, a have

you. Thank

Our comes from Tayo with Okusanya next Please ahead. go question Jeffries.

a and intro, I for couple I think given you've well? to and kind regards range A Hi, on of quick yes the Thanks could you XX helpful. of a lot thought just the sales of are everyone. what in acquisitions year, for the kind that this as and us just for planned little was sales me, good for talk pricing bit curious very timing to the kind ones XX But on acquisitions morning about of expecting commentary you pricing.

seen X.X% front, may but type a the yields of timing, assets seen it's bit clear the I on into cash yields I will as look in going be that more. don't be pipeline, In the X.X%. a are are UK front terms haven't the our the of it redeployment the outside to norm. the that we've our be in acquisitions. X's surprised, market, creep on in In products, SNF still And, of our pretty we acquisition the at from little sales lot wouldn't given I what perspective the say are in of call

a so the and we're one or you the first event? - the disposition two whole like thing, obvious for event half mean again like you Got it's that's

a I go could hand perspective, agreements have we first event have on a a of we how Dan full modeling from half things and but that depending quarter as be first wouldn't events. it earlier, purchase indicated call we - mentioned

today are Then helpful. that's for actually booking BK? Care, to going revenue you Preferred in Okay,

so As them. they cash yeah they book of are basis, today for a pay Preferred Care, we on whatever

to Okay, And moving when about of happen, do you with in to transition, this expect they from are on idea down to that XX cash million rents X the revenues then of X expecting right is half of most when that where that in now, are a kind or it? you like back you event is have in models kind drop the like basis.

it. on quarter existing a to likely quarter Dan credit good with feel as through, first that to bankruptcy's have element really moving are we first to we But is that profiles, so we moving - on our Our that of mentioned, very view because hope is it's are deal to They hopeful we're tenants event. move we strong have the the it's about. be

portfolio expired well good incredibly remarked get the was feel would also knew it about enhanced. in be was to XXXX, that going the events because that occurred, We This otherwise but credit's of although cut, eventually. now accelerated is that the we

rent I and XX%? but again, I guess is be think rent only XX% there, they today, you expectation their why that Signature, of understand I'm what's then I the on Got curious are if will of kind going paying deferral the only

professionals engaged have as process going of through They Dan downs any? principally a going it's but other Tayo, of and this expenses. they've running things, through or through through Signature. are of variety obligations the are so process They a professional working costs other and you do pay data

Well, is I mean once miserably less. because discount of XX%, this the resolution, than hopefully of less the it's deemed is

hence So, difference. the

kinds a not little What discussed status last some Guardian, more other them? have other where happening then kind about bit HHC, talk the names just again kind quarters. tenants, Diversicare. We like the the tenant tenants of your again, Okay of with have past CommuniCare, about lot a what's your me top of non we Maplewood, disclosed Could you year appreciate talked that I you've one with and the problems of for patience.

instances issues is of coverage held crept have names with dealing they ten is pressures mentioned course that got ten entered really labor up over everybody fact top up. in the some last steady actually given for Signature a including other All bit. dealing - and some any different part, on they've portfolios Orianna, have you we've most but just several don't all the little quarters. top are - We excluding been the the markets, pretty out and in have Everybody the is layers with

Thank it, Got you. helpful.

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

rent Preferred going to range how that we're that's want X drop I and million to XQ, a Hi then just to that, to want it's that to Is XX to to see model just in morning, in contractual understand understand? Care, to good XQ. back to go going X I just million

modeling a stand from Yeah, point that's good.

the you terms the regional the kind industry to about a is how underwriting credits. are like seems like more the operators smaller re-fragmentation almost Okay national industry under operators a - of and then some new credits writing in It of from is of moving of transition little that you there bit. may to or that going over just all these differently, take Are are it assets to? operators the operators those you operators of existing are thinking

players XX, have have the about most XX, the the to That - it's regional operators will model capacity facilities and XX, we XX strategy. to continues XX, the the be which For to that talked to bigger, continue firms get XX. that same go that it's existing is

will think think long don't has go. just it's where the of part I it's big properties time, these for a I our regional So, that's a really which been and strategy - consolidation

on mortgage the well know little doing coverage question. don't rental the understand, know I to coverage do but bifurcate little you and this, a housing skilled are Senior's which interest Okay, or of some not, those your versus you a the worse to I between - but detail if the work can lease if of that's don't rent are nursing it's hard - and can coverage's be or and lease that more bit able may buckets you the covered versus

once if at thought ALF suppose I it, it forever. portion got which could the consistent world, that that material break start how we coverage's have three's would but again, we to SNF we we But don't We got but tell portfolio out in bucket XX% out, is we XX% could then I by just the or can generally around the an our that's of point you enough today, of segregate today speaking our filling future. been look one - -

to trends which trying senior's I your lower view obviously of how out it the now coverage make and guys. off SNF near coverage the That's have, may in SNF interest versus the your as figure coverage? - the a time leases, appreciate versus coverage difference we Okay, just the of all thanks versus safety

comes Our with from Sun Please question ahead. Trust. next Eric Fleming go

be second half? the guidance, insurance a the quick that question, will proceeds, in timing, is in is that that Hey that

get, the People just That's comes to re-built facility. we in that's the are the used tax not that and guidance. in

going about take it but time. thought re-build it's will likely come period in the it, redeploy we Yeah, Eric, as cash a of we'll able so, to a to be

great, thanks. Okay,

Thank you.

go Wells Our Fargo. next with Stender question Please from comes Todd ahead.

just on go standpoint. you're sense Preferred an maybe a transitioned current writing be can once what rent Care wanted to of EBITDA on rating may And the to leases they point get thanks, then is what Hi current are coverage under acquisitions? and to under new would you

and Well held to acquisitions it's our I last range. it's current year X-X and frankly under X-X X-X the range or quite writing the to on new so it's really closer been is up, the in mean

are really Care so telegraph done for. be we I are to on below to We don't going that. It's not re-leasing, Preferred want what the shooting ultimately

they where these adequate that so on time facilities. somewhere master will the expectation With they coverage cushions, of inspired be the the flow putting take leases by existing absorb, into cash that facilities period these the underperforming operators can a have rent

how going the any and Genesis, Okay, XXX there about just asset of back are in included Genesis million to expectations? sale facilities

No.

a Genesis? in as amount just to And reminder, dollar remain outstanding the what's that loans

million. XX

debt? I expectations, the you And guys just like didn't on getting pretty were to closer net should was I quite EBITDA, sounds which then pro balance lastly, catch to the five sheet, debt talking it good guess forma about the be a it

that's also completion the of Orianna post but transaction. the Yes,

for Okay, out number a you pro that couple forma would say? year is the end of so timing quarters that's

website. you'll notice it's in and close see first that again that the Absolutely, the to on

you. Okay, great, thank

ahead. The Please Jeffries. from go follow-up next is a question Tayo Okusanya with

tenants the you Yeah, all including outlook of and juggle of talk slightly you just capitals stuff, will some RCS gave some of kind just in some they you about apparently that turn, coming the color this up, to follow When your cuts Dan, proposed will regulatory general be positive. a overall are slightly one. quick the impact good positive, all kind potential stuff targeted negative, this of the changes. changes What neutral. - of net really

the what tenant? a the and next tenants the possibility Just of today? business or year depends of changes overall trying could on mean is sense mix over the what for get to that the two, their Now regulatory

the absolutely knows dependent it general positive. overall from to neutral Yeah, on but it's this point the that everything everyone tenant, is slightly at segment

do you Okay, as And the then said when again it insurance booked do you in one get book numbers proceeds, form they or but as? that's more proceeds, guidance, what this the helpful. revenue you me, it not are is

because the take income in that's had as numbers. booked is It we to but impairment, not

do a your offside get AFFO to you the if bit That's proceeds?

that excluded the just I related to the impairment would exclude from as I AFFO, it.

you, okay, Got you. understood. Thank

is follow-up America. ahead. Sanabria with a of Juan question The next Please from go Bank

playing and just terms of that them, Hi, when of to of for on on a expecting in $XX I on million what and that us for is what's accruing interest follow-up if there forgiveness is can repaid re-structuring believe Genesis again? kind give continued you to Todd's be - income sense are like you question temporary the assumed how a Genesis So, a loan? interest that loan, out

color little landlords. of that concession give collateralized, interest accrue just is it's accrued very one loan, big on interests. including out, loan, loan that because collateralized continue our you sophistically really a significant work that another upon will the we to that's So, driven And bit that by to two fully

So, very comfortable in we about loan any scenario. feel that

products. of them, know leave but to we In the the is about we terms that we pieces forget headed, Genesis where

What's what's cash do they again paying guess? expectation? guidance So, on loan, start the in the when I your

they one. bifurcation a that the on the My payments between optic any started making that component understanding There component. was was and cash haven't

related other so it, March forbearance back would we no expectation then. unless to the the some. in there's is some March be come - now discussion have change in expect we unless and it but been be to between that would would February, So There's

comment, on demographic customer? entry just age the nursing your then what's skilled average and Okay, of

significantly XX increase and it's expect each to look for it curve into up group up and year age and to if utilization XXs the and age each year you'd is from way old it's very at obviously. XXs age. then through moves increases each of starts the XX, the very year, very as the the - XX skilled Yes, rates all gradual, And it you XX Juan, interesting it

and call you you years think start we and as utilization it where XXXX. old to rates beginning birth interesting point increase in So accelerate an about to XX

mentality had XXXX have from hit years progressing up then XX Gourmand to But, a lot Steven and will XX, you So, ago, now Insoft driver see obviously from rate XX, them our provide a we those and and from XXXX we detailed to and in started year it first and work this couple of behind years part and going perspective explodes. the that on XX birth demographic a of investors. that's XX, to olds of information high up Mathew level part they and old analysis the are

or age patient less is nursing the years younger mid average what of you are saying? in ten that , than The skilled senior's more guys housing? XX's so Is

average I about curve, as really If haven't XXs so our it it to mid you you a XXs we've The the out start admissions but look I a rates at fair up a taken where at part think a the and national and into is see hit we'll even that's think provide provided. meaningful of information the may it but because of as our utilization curve this you on get beyond facilities. more least basis in that mid in we've heavily utilization to developed bulk on way, as pick driving

you. thank Okay,

over Question-and-answer like our turn conclude for any will would This to closing the Taylor to Pickett now session. I conference remarks.

for call very much joining today. you Thank our

great anyone any a available be will have. Have We for day. may follow-ups that

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

now may disconnect. You