Omega Healthcare Investors (OHI) 12 Feb 192018 Q4 Earnings call transcript

Good morning and welcome to the Omega Healthcare Fourth Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note today's event is being recorded. I would now like to turn the conference over to Michele Reber. Please go ahead ma'am.

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

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

of fourth quarter morning Thanks, quarter completion for asset conference strategic our earnings XXXX expectations fourth MedEquities Today, and thank acquisition, call. status Michele. for will portfolio our results of our and the our Good joining restructuring, repositioning I discuss you XXXX. and the

proceeds assets cover did cash flow to sale cash $XXX of The these these achieve underlying we disposed repositioning $XX yet and we total flow revenue on asset reduction Cash $XX.X the restructurings. of were consideration while equate flow not yield that assets to X%. our rent, trailing million, was XXXX, for to completed the XX-month In assets was have strategic We related XX on million. a facilities million. able of these portfolio

rent coverage We into will redeploy minimal proceeds these experiencing while assets with revenue good impacts. higher quality

the addition better XX level which facilities transitioned credit we typically resulted in should strength. to to existing disposed, new In XX that operators, improve has facility overall results and we and facilities

facilities and in All the rent or for to Tennessee been transitioned sold Orianna existing XX XX with annual $XX.X facilities Georgia have Omega sold. sold. was been million. of facilities released were XX operators facility One of $X South six related Carolina in million. have

million a portfolio from no to rent non-cash estimates, receive run has rate of value estate with of annual related our liquidation $XX GAAP in interest. Orianna rent to impairment $X.X Consistent equivalent the approximately value the of million, million sales $XX $XX final face a our received and We cash accounting and and cash is and $XXX a in transitions Orianna on all effect prior note of expect resulted million the a assets. generates Final That with million. $XX.X have future million. received which from former flow

stockholder proposed our is proxy a to filed with by statement its registration to Realty MedEquities statement We merger. the for of SEC, yesterday Inc. acquisition a stockholders statement mail the required. Once the MedEquities. the Regarding will registration is effective approve MedEquities SEC Trust not Omega declared approval

by second We completed course MedEquities quarter subject in the expect the to transaction approval of Stockholders. be to

guidance for XXXX. quarter to our results Turning and fourth

rate non-executive low share $X.XX adjusted Texas costs where share the $X.XX statewide of per payout is difficult $X.XX adjusted per of the Orianna occupancy related $X.XX a liquidity to environment of for Daybreak related XX% conclusion of operating issues The and $X.XX difference work-up approximately approximately particularly quarter to our plan per consists uncollected related reflect share relatively bonuses less current to the employee legal of in obligations. increased new per three-year Medicaid PDPM incentive outlook the Our by third of and Daybreak's combination imminent FFO share. are term than that and FFO in and via We needed lowest of providing in of cash detail, believe United bankruptcy of the relief In liquidity Dan out start near-term the will is in rate number as second with long both the favorable a rent court. of resulted a the Texas through positive is possibility and deferrals supply, Daybreak restructurings relief. the in States with in a slowdown has term June. the we much near demographics, working

guidance FFO guidance year share our fourth the million to per normalizing adjusted It includes acquisition general also at and includes share and $X.XX run to cost Our MedEquities. $X.XX XXXX million of $XX $X per $X quarter rate administrative to quarter. per full $X.XX of of

XXXX provided have MRT, ultimate our timing Daybreak guidance. the and costs cash guidance run from We general administrative fourth at year will impact the quarter of normalizing collections full rate

moving However, all will be now these turn to of call XXXX, will parts by I quarter fourth of the Bob. the over resolved.

Taylor and you, Thank good morning.

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

Operating off result impact for expense. the million asset and versus was the $XXX,XXX accounts, provision compensation for our loans one financing stock sales, Genesis revenue primarily decrease time loss transitions for Our of direct million provisions of million of $XXX XXXX. adjusted was revenue, million reduced approximately on $XXX $XXX,XXX $X.XX for a a to paid and $XXX,XXX the in of related fourth merger FFO $X.X $X.X quarter non-cash the quarter leases, based for that was per on and a quarter The well made capital or XXXX operator third of quarters mark-to-market $XX.X related revenue made million revenue was to also the incremental the time The uncollectable offset $XX revenue Orianna million XXXX. cost, lease and the operators impairment throughout of share includes occurred in of to as warrants. $XXX excludes million million to The $XXX revenue. a of cash the our related investments XXXX completed of new same $XXX on combination in that fourth that for by basis. during facilities of transitioned And were and renovations quarter revenue period. in of as approximately related million and receipts amendments revenue decrease existing cash partially Omega to timing from non-cash of facilities the

a the Interest bonus for non-cash the expense the quarter when as financing million higher leases or Orianna $XX primarily the expenses primarily G&A XXXX, $XX.X which costs was debt fourth as the direct offset quarter related result the of impairment restructurings, over as XXXX expense quarter fourth with of related roughly growth deferred a as to on finalization to the was the quarter to of the were for debt continued Our is excluding million rates. fourth financing of workouts XXXX related the balances blended to fourth of due LIBOR We and in quarter operator million $XX of accruals. costs well same as lower portfolio. recorded by legal Orianna

revenue of $XX recognizing of a sold related fourth We fourth the million facilities values the approximately XX gain recorded or charges selling booked values assets million. $X to million reduce net dispositions. net for also We real $XX to In approximately cash $XXX,XXX estate the quarter their in expected quarter, to proceeds estimated the three prices. in on impairments XX in we approximately recorded

and As our our elimination of an efficiency, XX. constant of our the physical closing our of result improve office part evaluation implementing and we The realignment Chicago internal effectiveness of will to are positions realignment February the certain effective organization. in

we will consisting As a result XXXX, for severance primarily record office $X.X XX, expenses. March of closure a the approximately payments charge restructuring quarter ended and of million,

in we major the in the acquisition Daybreak, we the the will their first million and be quarter. we are in contractual cash of second will before each quarter. we For receive MedEquities, assume modeling of XXXX assume returning obligation approximately per guidance assumptions, and second $X.X quarters purposes, approximately to that On $X.X assuming following completed million

amount debt in expense rates. XX, from opportunities floating XX% December interest driven rent between G&A, second asset and be as quarter per XXXX. $XXX quarterly million first project XXXX second a in or We facilities LIBOR expense $X.XX supplemental quarter. Non-cash non-cash basis was G&A million our will At roughly will our every of result the new of We and in is should XXXX increased in our stock X interest approximately share. by potential returning to for rates mentioned, million result on more $X.X expense, Regarding revenue per our borrowings Orianna, transitions, been million million assume be our Taylor rate X% the $X credit quarter per is annual quarter debt, second the to assume the in legal of in in million have compensation start fourth website. information $XX.X $XX operator LIBOR with will point on annual a construction somewhat and expenses primarily posted X.X%. estimated XX increase variability $XX to workouts $XX quarter million, released Page quarter. quarter before and in between to on outlined the million $X.X facility We proceeds revenue as of or to be $X of roughly expense continued be our traditional XX consistent disposition annual redeployed We as that project per of half assume in XXXX. our Interest of related reducing million based

to our our that continue subject MedEquities. quarter, issued common based Regarding per market issue potential to plan decide to approximately common share Omega on purchase million and conditions, million for issue our and equity will dividend we to And $XX Historically, of fund equity deliver may shares issuances, acquisitions. continue. we reinvestment we've and assume $XX on price lastly, equity and million stock through plan to X.X to ATM stock

Approximately revenue annual quarter with Orianna new adjusted approximately Our X.X shortfall December It's assets Orianna facilities the balance builds. annualized these had $X our construction turn as associated builds no leverage revenue Dan. XX% only new cash valued sheet $XX and our in calculations debt, was revenue and to million related the remains of our EBITDA fixed revenue X.XX on held times. quarter known charge XX, related forma times billion important fourth adjusting has note our three I When coverage to to sale. classified will our at is removing and call would strong, be Daybreak, fourth our to roughly for the $X.X and process was fixed and we to of related and million debt EBITDA net sales for ratio X.X facilities times. to the at asset on pro over now

morning and good Thanks Bob everyone.

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

Just new be as are expected a portfolio reminder, or projects or that been a operator. new Excluded have open, to portfolio core to are are facilities transitioned represents facilities deemed recently sale core not and facilities slated which our development yet stabilized. for stabilized, projects, but that from closure, our

over of improving further our in quarter XXXX, XX%. rent quarters, quarter we in executed amount XXXX fourth increased the XX% XX% the consistently XXXX the first As repositioning, reported strategic up to of of and have last four XXXX, the of XX% of in core to quarter from as in second on the third quarter the has

matters. to Turning portfolio

that As increasingly years. Taylor skilled state have facilities has environment the the mentioned, headlines more the the several have state challenging including the operating bankruptcy sought operator Texas Recent last in largest protection under reported in operators gotten U.S. the over code. nursing for of several

a robust pressures. state as result but of a labor in none Omega's many virtually erosion Medicaid a of slow woefully are experiencing labor margins low board the occupancy market shrinking reached across causing operators While steady rates, have that and point,

approximately million in of into second million direct operator Accordingly, Omega forbearance quarter XXXX month's of result to or and settlement XXXX, the were reasons. $X.X span approximately of challenges, of first XXXX. and agreement, in to of these quarters. agreed rent Daybreak a and the granted second XX, These partial whereby $X.X of five deferrals defer in rent deferral for quarters second one a fourth approximately number Omega each Omega As and entered for January Daybreak, amendment has requested one a on the a time the

to results are improved to the which form allow on certain operating performance. to First, Daybreak continue in to positive starting of operational embark improvements, yield already

and is legislation $X The potentially rate improvements. to Medicaid third benefit permit a participation several program, million what million. provide and NFRA commonly reap Allowance Daybreak in enrolled State Daybreak program, passes And benefits Second, is Nursing to into to has Quick as care for be an capital increase Quick facilities be to facilities, the and the significant $X between additional of event to of currently enroll introduced time within expected Texas other UPL to is or by program. the to in to to the used XX Facility Texas enhanced revenue to states Daybreak has Omega months. NFRA, give which a estimated in applied Texas recently XX for similar currently an which of the which legislation direct annual Reinvestment would increase next the refer

In be The to rate provide providers State quality to metrics, based in bill current upon needed the will legislation programs NFRA much in for to the similar provide across existence performance enhancements addition, would Texas. of form, its XX entire already states. relief earned in additional

is and rent and outcome impact Daybreak bill time aforementioned temporary critical their reach the of allow benefit of improvements timing the performance the potential of to the NFRA additional to full the are we provide to and the the believe operational initiatives these deferrals portfolio. While positively uncertain,

Pennsylvania mentioned Omega all merger $XX fourth million in leases. master proposed totaling million included January X, capital quarter approximately XXXX, investment million. $XXX capital to term Turning them sellers to bring nursing with The facilities XXXX, completed million million. party fourth new $XXX nearly pursuant seven announced Omega facilities $XX $XX Subsequent additional expenditures. our investments, which two new in $XX the to of and Taylor during three Indiana for The investments purchase to on in are an investments of and the existing XX long purchased skilled million states plus operators in transactions for a from nursing new expenditures. new total and skilled the for Omega third leased of quarter XXXX involves transaction with Omega. including Omega operators, MedEquities These facilities to to the eleven as facilities

two our in operator health one base, to MRT XX the also acute operator adding hospitals, SNF, LTACs, classes one and to building. three inpatient further addition two by our transaction behavioral diversifies facilities, rehab In diversifying addition ALF facilities, five care medical office

Turning facilities turn $XXX million, to Omega total XX the fourth quarter the XX Steven. during mortgage brings for the XXXX, to will over dispositions, total three now of $XX payoffs, million. of inclusive approximately loan this sold consideration approximately facilities for XXXX of call dispositions I

and homes CIP billion anchored At York investments Omega today. care best-in-class work open cost to care rise on as project. the expected by Maplewood Thanks our with of Avenue, Dan land The including is the late totaled XXXX. quarter, and the joining In UK. in Senior of their Housing scheduled growing memory Care properties fourth Senior XXrd we $XXX and in Senior to high our as the Including City and approximately accrued everyone on is the and Maplewood line at Street, health Living rent relationship continue conjunction end Gold Manhattan. Living, to for $X.X of sheet, balance our ALF, Second portfolio our million well New thanks project with on

covers in represents obligations UK. memory the one the times, healthcare of Our listed basis, care the its housing not investment portfolios core only but at a comprises On portfolio senior U.S. larger X.XX now lease XXX publicly and amongst independent overall also senior the living REITs. living and assisted housing assets standalone

construction facilities successfully Our same $XX.X design active pipeline continue and with projects million ability the coupling expertise. the million quarter invested related and tenants this now construction a in-house I related highlighted this by our Maplewood to remaining in on our our of to of of turn having in operating the is portfolio, commitment comments. Through construction investment million our grow important is strategic fourth to to related capability, call was new components inclusive The predicated we over in XX approximately $XXX our million Taylor, some of final ongoing portfolio CapEx of total $X for this XX with reinvestment. to program. will Manhattan. reinvestment predominately new is $XX.X the capabilities budget investment to

which and acquisition XXXX FFO going to forward look net growth We profile, historical drive our forward. Steven. Thanks to should returning

In and improve And I'll questions. model, and open payment addition, profitability. outcomes to with patient October patient-driven the are should excited are our up operator operators which X about both preparing that, for

Thank you.

begin question now session. go question-and-answer of comes from Please will first the Capital Today's [Operator Bernstein One. We Instructions] ahead. Daniel

good Hi, morning.

Good morning, Dan.

operating do and look as how increase and picking a operating up that, going – about well? in or the thinking profile context nursing the confidence risk that it's actually then overall mix how profile wanted that Texas some you're so at assets to maybe at get industry you will I about underwriting how MRT well Medicaid trying gone to and about mix, that you're within and the to little Daybreak is bit maybe more it just recover are ask you for of you're try up environment if to change assets understand thinking in so skilled the Medicaid

Yes.

online through Taylor mix. X, the little flat operators that program. which operators for remain see got, portfolio So that be there, benefit in so quick additional that operators Texas going is I we've future is that think coming the in want talked I challenges again. quarters. of – as the been a it's to we a specifically, most specifically back mean the about into least specifically, would on certain eroding our challenges. five you've pick for of coming money we slowly there we the online and to a virtually We PDPM that the October last our enter is think quality at ever or up But upside decline mentioned, there like did go for all occupancy to in some for got Texas for don't

of got about. we the nursing facility the the act reinvestment potential talked You've that bill, allowance NFRA

percentage to So at level, PDPM least at point – and block having a on. keeping and their tackle mix up the pick again, a this are operators keeping in trying same terms here just then quality of the and the and occupancy there comes point until

environment So, operating that's overall dealing kind the of that we're with.

Does your change all mix is underwriting Okay. at Medicaid that it increasing?

I think you to case-by-case have as on a basis underwrite. at look you it

one more look you but much and predicated then question seems upside again upon And seeing a so Okay. lot the trying the is not it acquisitions, like past, as your are spreads, you future assets are housing, bid-ask within the or and that continue what makes reasonable that reasonable at yields you can opportunities seeing senior underwriting nursing to point? this optimistic you're skilled acquire at of

Dan, XXXX active benefited the is see to us the saw more discipline that where it coming in And I nines the assets progresses. XXXX. for the pipeline of into and in I high has medium XXXX we're think we'll today think more yields was pricing throughout as we quality in year than seeing

that. about good feel we So

in did beginning which acquisitive of appetite. Some of little a operators less had perspective. that at XXXX was and a the into the We of QX, of our XXXX bit end an more have our from little that been

about think around I sophisticated among environment there's the PDPM. reasonable of amount good feel impact a operators of and the So we the more clarity

helpful. – underwriting visibility perspective, an that's from is So, that

is lot read way think you and bringing this Understood. I a The operators of are to the that? transactions

We’re seeing more.

more. seeing We’re

more. seeing We’re

here. off. plenty hop me sure I'll of questions I'm there's Okay, behind

Thanks.

ahead. And of go our Trujillo question Trent comes Scotiabank. Please next from

and taking good thanks morning question. the Hi, for

basis, just don't little being for sticking on operations second that the this was And them. it seemed then last improving. you Yes, out were a year until If a is weren't they no situation weren't with but the work were up – collecting you've collected. with like cash bit, you had trending the this they There a arrangement things happens last were rent positively. release mind an indication announcement was Daybreak night, time collecting, to on that and

having I So rent that with with can but how operators – you appreciate can are something happen. as confident you operator prepared them get how you And conversations like any more won't the adjustments? this an other about recent comments earlier, Texas-based

said we clearly and is reasons now environment of they very right Daybreak improvement the we some mix, falls showed that occupancy terms to line. operating to trends in both see stated. bottom we their payer a the As for in do upside operate some said, happens But we difficult the recent which have all as

We program. Quick have them expanding in the

going what and up combination once little a next of see XXXX We upside the up will have have, end Daybreak. to we NFRA of bill once again time months. or see through where help here why for Texas as we we on of in these that's come the Daybreak ourselves of And buying or again quarters lot vastly clarity lot a that will where We some kind PDPM three brought those, think we that's those and did and more two all two any issues a land. because with the and first we'll we're

coverage. have know exposure? that – out to just of Do for your your I to break Do happen for do a EBITDAR you happen Okay. Texas have portfolio you you ��� Texas your

it but we on I don't can fingertips, do certainly have that. my

And just mind. Okay. don't more you one maybe if

you So how about EBITDAR contractual of addressing that bucket below Can for portion rent? quarter-over-quarter. coverage like looks talk the that cover, deteriorated times it you're one your

of all collect one we is the which depending form there's group to guarantor, one it back of – haven't and below from in But that of one them, rent go quarter, corporate over and operators they the or a credit those same any back a given of lot the times strong one to continue have they'll why bucket. and every of support in individual to it's sort under almost between and mostly float that forth on and A forth. some folks

the for you. the Thanks Thank back in I'll yield queue the and time. Okay. floor. hop

ahead. next our go from of comes Please today Chad Stifel. question Vanacore And

morning. Good Hello?

Chad. Good morning,

Good morning, Chad.

Okay.

So I'm beat a and to on going horse take dead Daybreak. just a minute

been in earlier an issue had Daybreak So, XXXX.

You up they deferred mid-year. caught some by rent, but

red. the in back they're Now

So what now? to or operations that time first changed the and in allowed changed to what from catch then mid-year them liquidity up

think and exception up. all of back the really started the quarter. caught XXXX contractual I necessarily with just on don't of paying throughout they fourth They their rent

The third quarter expectations bit a operational and was difficult one certain little than a quicker came fruition. had things of they to improving

to starting not a Daybreak, the was pay are and We lot that of again quarter But for expected third see slower once our than now. it for off one was a just operators. rough but

So and of or half were of a Dan, is there for matter the the were it expenses back really census year rate excess in some accumulated them? that

mean, above of the Well, issues, running rate for everybody's good labor that’s Texas. right, not got got, all obviously and a operating it's you've performance, State really. the I they've

that those and residual their So, keep was in P&L. do their Obviously, expenses current the have – through was to new vendors of consistent running they are mix what they and a relatively blip are quality so. in have occupancy blip basis

then what right. do hospitals thinking MRT All you'll think hospital just What those? your you that's a outside you earn? kind And your acquisition up with MRT mid-year. think about you'll some do especially had do coming And core. of

anchor communicate they've pool. big that to our continue the MRT – if the look hospitals, We've to anxious. to you actually we're all we'll to is – the credit. with asset of be Baylor in the anxious Baylor's, met part about about operators pretty met growing add have think you got when We're seller world. to deep we're And a And We've excited is, pockets. and them with of

LTAC So, small are a that we'll in there in what see we happens business then way. the side, and on

there it understand we're relationship as excited the we and about well. So

something I that All to keep mean or on that is door just you'd look the Taylor, right. expand open?

We’ll as like forward. merger. grow we're continue relationships that We We're of up part the picking those the relationships. to looking

Got just for it. right, one me. All then one last

quarter asset evaluating mentioned you're you about last $XX So dispositions. million

almost You dispositions or we little or the stand? taking bit just think about the a where fourth forward should time quarter. in that more done How all you materially reevaluate to going disposed you're than

repositioning We're perspective. done a from

there operator driven we're are different where quality, sure we But discussions or with think don't in a but I that going XXXX. not driven be we're you'll in see reasons, and meaningful just asset acquirers – scenarios to dispositions for repositioning strategic operators. be from net quality might way for from

the All for right. Thanks taking questions.

Yes.

Michael And Lewis ahead. of comes go Please our from SunTrust. next question

he Chad was a thank you. Daybreak. Great, dead horse on beating thought

to So it I'm one more going really beat I guess, question. with

to expect $X Just be year, $X with of this by to XQ, XXX% half first and you from the million this this million of year million the half back clear, they from $X recover kind as back running this just you be legislation you do of passing gets business should relief a is bit think this of And usual. that dependent on think track? that or on time little

this would the we It's other the that helpful, without out helpful, components for back also deferral very laid think the deferred legislation the be be till but we've Actually is not even of And the the $X will year. out million take half or give that XXXX. hugely legislation.

that? a picture here, yesterday year conference. has seen that the bigger him of He been quote model or do coverage, an you about that's given think uncertainty, seems here of What think there. as the there's quarter-after-quarter – think the But that the from all sustainability it X.X this to the argue still failure, I I'll you traditional performance sustainable at last big question, Okay. I have model stock may a over X% times of by speaking like against far operator picture proven Genesis, that perspective a argues a argue statement. as that George restructuring do said, your and be Hager a nursing would I escalators I you have might model

struggle big a the through management couple Genesis that. with a particular. team I And like been of which We reflecting on we years and have the he's George and have in he's last Genesis think relationship been and

tie that a can of it things and challenges and that the long-term to demographic work look and within reimbursement our going last occupancy which to inflation frankly, reflect the that catch know be done is And and we would the One talked environment, the our you of decade, the that's tracks in to rate driver up which occupancy view the then analysis he about you But all all in portfolio. the over direction. inflation. basically of Genesis one rates a happened broken. right – at there restructures if tight note is don't to here, demographic face escalators, we've think is And and of X% I are is was big demographics that model We challenges.

at sense. we the X.X. And we at our today. X.X where So perspective, XX.X, cover makes think underwrite model and isn't underwrite it from look we we

you get world tighter when to But any a into have downs the like and of in that than be. the build and would business. going us this knowing ups we bit cushion little X.X to So you're that's

works I model fine. So think the

does the escalators saw I think and X.X% inflation broken were at cover. where you models that the to that begin X% lay and ones outpaced

So around there's get no way to that.

G&A correct said – the for quarter to ago I Okay. more, thought I and quarterly $X $XX maybe million that million of I that rate. million that And $X in MedEquities is you changes thought million to run can. one rate run I'll the sneak G&A? if kind just was a $X

piece to the of a correct $XX is rate. MedEquities million $X million million. $XX million $X run that is to

inflation normal had well so. also You year-over-year as

Perfect, lot. a got thanks it. Okay,

Please Okusanya And of question Jefferies. ahead. go comes today our from next Tayo

for Austin This good is morning. Hey on Tayo. Caito

buy Texas about portfolio of headwinds you MRT, now. Daybreak, bit little the you're skilled nursing about Can that to focused you. some – like what's different quick question Daybreak? seeing They're a a versus talk facility. so Just kind Thank decision

you you SNF mean mean guess, I Texas. Do the in – component well,

that XX they issue that Texas lot basically of before and There on MRT $X.X new million. reset the Fortunately, they to that by reduce of resolve announced transaction. a we facilities was portfolio released a in did coverage our operator work rent even and and a approximately the

So partner us. We fixed. one we not think with a does that it's and that so is portfolio operating good trouble think

for Thank it That's me. great. right, All you.

Thank you.

for session. includes final back like our the [Operator turn Instructions] this And Pickett to over conference Taylor I'd question-and-answer any to remarks.

everyone and you call our Thank morning. thanks joining for this

attending for we concluded today's has presentation. conference and This sir. all you, you Thank now thank

have disconnect may lines You day. your now a wonderful and