SBRA Sabra Healthcare REIT

Michael Costa Executive Vice President, Finance
Rick Matros Chairman & Chief Executive Officer
Harold Andrews Chief Financial Officer
Talya Nevo-Hacohen Executive Vice President, Chief Investment Officer & Treasurer
Trent Trujillo Scotiabank
Nick Joseph Citi
Jonathan Hughes Raymond James
John Kim BMO Capital Markets
Rich Anderson SMBC
Steven Valiquette Barclays
Joshua Dennerlein Bank of America Merrill Lynch
Daniel Bernstein Capital One
Lukas Hartwich Green Street Advisors
Call transcript
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Good day, ladies and gentlemen, and welcome to the Sabra Health Care REIT Third Quarter 2019 Earnings Conference Call. This call is being recorded.

I would now like to turn the call over to Michael Costa, EVP Finance. Please go ahead, Mr. Costa.

Michael Costa

you. Thank

expectations I statements you in expectations in your results concerning begin, be we response operations. regarding to disposition of future questions forward-looking acquisition, financial and making our our regarding our want financing we plans, our that remind will to and plans Before investment our expectations our our regarding comments and and position

XX, actual uncertainties we the results as XX-Q for well Form furnished expectations yesterday statements to differ December to and management's are included that are could the XXXX, our risks to our XX-K in forward-looking the XX.X cause These XX, including release the current and to earnings SEC March and our XXXX, as as materially, in risks year based X-K quarter Form subject in on listed Form ended Exhibit ended the for

We assume that undertake events still update and subsequent to today make circumstances, you valid. forward-looking in reflect to are later our statements no comments we obligation should the not or the quarter

the reconciliation included financial section these will of of well In non-GAAP call as to at measures to Investors explanation Investors non-GAAP are during on encouraged the the and the Financials references be review to as results made measures these addition, comparable the results. GAAP financial of page our website

can accessed the in of be website. and also Form XX-Q, earnings supplement release Our Investors section our

over me call Health and turn to let REIT. of And the Care Matros, that, Rick Sabra with CEO Chairman

Rick Matros

investment one the more issuance the well close on than credit our Recently, our also the then. was facility traded ones it bond versus new the up at have first the Thanks, because following how since that the second billion. function simply XX-year paper first five-year Mike. did we that May that successful Happy we really and was in was everybody. first, paper was one, one $X.X in quarter end dramatically We Halloween grade

great through. about and really tangible feel gone from we the certainly other a benefit that So we've and the that merger activity

debt-to-EBITDA JV. since By year-end, X.Xx, We've sheet positioning inclusive to strongest the of balance inception brought below Sabra. to with X.Xx, of of our us that's XXXX also the down go we'll at/or target into our be the unconsolidated

folks and to has to partners develop had states finally we'll as the find includes as well in in to if of of facilities. the first some see that in investment opportunities None becomes our specialized continue Reimbursement and lot the deals, is realize million, for $XX being to tailwinds we space, We very new well. other We're our We'll the the but we'll reputation there which space behavioral as most sense space activity on fragmented of Sabra relative or addiction as lot our some relatively capital at those about insurers first being as investment peers well, of not, ones not but working feel things and point, Medicaid space space there. a of its are also opportunities know look for with rates hopefully number easy this states. we is There makes investment good. space. good it's this people quite X

nursing start for time. we some in activity see skilled We the first

million. Our pipeline $XXX is about

nursing we relative while, good something Our the beginning housing, hopefully, see opportunities. a are anticipated is starting but again, some opportunities this acquisition pipeline for primarily still skilled that to there. We senior to some of

pricing In terms of high. still pretty Senior Housing,

lose not we are, that bids the we're that by same that say the losing lost before. would margin we've I Although

competition but definitive equity there. bringing think, soon the of I that for to most private So little may funds a be any too that's make primarily and the getting pricing on the better, statement signal it's it's bit

exploring as new now, In well as the potential terms options as of environment, JV well. we're partners process for newbie

expect to from deal we close of the take to take several that, to by done announced months some We so perspective, change is it what because after will deal a our happened. regulatory will made time changes a also that after ownership trigger year-end it and in decisions have has ownership will the

about right So it's into on think those and at. negotiations, what we're specifics we we can't get the feel where because those where but and we going middle been negotiating we're in now, of process conclude good the

well, good in our -- about they're PDPM. under their of month right skilled on At little to cautious to they're actually, being belt. feel They opportunity. They're relative a now really projections. the with any more to pretty about operators, Our month point, No going in disruptions operators. full continue this time

some signs very seeing of are some early. rates, better it's but again, We

So we're this at point. just pleased

I think PDPM have operators without to their disruptions our that all transitioned any operations. of into

operating Now moving onto our results.

senior skilled Our and was nursing EBITDAR coverage sequentially housing. flat to

comprises hospitals, that Our and coverage bulk some hospital hospitals, hospitals we remind behavioral hospital our was hospitals on up. our children I’ll portfolio. are you most of the have of the

have as children's one couple acute dental We pack IRF hospitals. that and primarily is and a of behavioral hospital, well

floor up skilled coverage down how managing unpredictability lot our we fantastic see job stay length population dynamic the operators the short The of specialized and you senior up in regardless is occupancy the that occupancy that but and so activity, sometimes ticked are down. extensive, for hospitals. same-store the have more strong and moving for – sometimes doing hospitals of length really stay, of those for Our was growth to housing. in It start

ancillary was overhaul when complete Of was was to sometimes unfortunately, off know you I businesses. bit, companies. up They our facility stable. certainly of a seen picked And top little ancillary sort IT their That everybody due performance a IT operator eye go drop a their hurt systems an Avamere. as I performances ball the in then of your went ancillary the drop conversion, really through notable huge that. Their of those take their through XX, if businesses. a specifically on

going be little while. go about expect but concerns piece to forward as But have We certainly no will them to for view we a we again, and operator good very we is improve a that rent. no that that down into XXXX, relative concerns and

of our in details Talya and margin terms wholly-owned that. showed as sequentially specific as on cash RevPAR of In growth, portfolio We both well light will NOI quarter-over-quarter the into get strong JV, growth. managed

with Our things focused on operator’s for occupancy the based signs weeks. give and don't Senior was And is we occupancy up explanation they down last and one that feel rate give Talya you they will on few Housing and on some somewhat, on of positive rate expenses was stay our that occupancies. the

long strategy better to have. haul, I think a much over the that's

turn Talya. to I And will conference the with over call that,

Talya Nevo-Hacohen

Thank operating the you, of our Sabra's our XXXX, was third provide approximately managed Housing cash net an Rick. Senior on managed I'll is by generated portfolio Holiday-managed relates annualized in XX% income update that portfolio. XX.X% care communities. and In portfolio to managed and approximately the balance States. communities of to includes quarter Canadian our three Enlivant and United relates communities The XX% by small

X.X% On X.X%, revenue increased portfolio, a quarter results per compared which the had excluding increase the X.X%. income, occupied basis, by year-over-year per at we operating up in was X.X% excludes by non-stabilized increase third cash Revenue net second solid assets, same-store on and in Holiday in shared quarter, results increased with occupied XX.X% news income the in quarter revenue, XXXX. cash managed reported performance the net This increase and the unit. the same-store the when unit, operating we revenue X.X% the third assets with builds in

results the the Our and impact the performance felt in portfolio of across in Canada is communities. delivering target the U.S. was current in flu middle positive that from all returning year's the market Housing communities largely Senior last secondary cities cycle, when

on Now the details. quarter on improvement. showed of properties, a basis. was have portfolio, This is occupancy same-store basis. a seen stabilized year-over-year made the was X.X% same-store for $XXXX, per investment. The Sabra for Enlivant owns occupied we XX.X%, XXX X.X% that since some XX% Average highest the stabilized year-over-year venture joint unit we Revenue steady RevPAR which lower higher

operating sequentially. rose for quarter cash and XX.X% the income X.X% year-over-year Same-store net

we a the period the higher was seen best NOI in margin from investment. cash to since Importantly, venture cash XXXX. joint on NOI basis. RevPAR, margin the XX.X% we year-over-year the Enlivant was than XX.X%, in same-store Year-to-date, same up made have Similar X.X%

with out model communities drive experienced this JV occupancy the more summer quarter providing XXX third than of dynamic impact XX%. rolled The so zero with measurable even to success portfolio the those move-ins in XX% initiative. was this in quarter below previous below occupancy. those The biggest in communities seen Enlivant's and pricing more other any was occupancy

X-point was that communities has occupancy October quarter, XX.X%, occupancy XX at is end third occupancy quarter XX.X% increase and the period. XX.X% third over the in the month For spot a average

buying being could we own of process partner out potential co-invests That continues the stake minority This in Our investors with partner ultimately original objective interests. in Sabra, own identifying jointly interested by the physician portfolio. began included to taking we so process opportunity. the XXX% TPG’s in several the summer, portfolio keenly of the to XXX% a our

of Now rates, operating to XXXX's occupancy net in Enlivant horizon. resulting communities the managed portfolio meaningful Sabra's higher XX the portfolio. for wholly-owned of increases traded results income surge wholly-owned in in

occupancy from by and third which occupancy up year-over-year the in lower XX.X%, the portfolio even prior as here spot October the dynamic basis pricing was was being off and a came at X.X%. Occupancy well impact period. relatively of on initiative XX.X%, X.X% stabilized. quarter X.X% with quarter The XX.X% is

rose unit and a $X,XXX, year. over to quarter a X.X% occupied increase prior over Revenue XX.X% per prior the the

and year-over-year period than X.X% Cash was on a was NOI basis cash same in NOI in year-to-date up the XXXX. higher X.X%

this well go is rate owned into for letter out eligible as -- October. sends achieved rate in as the to both X.X% the the in typically increase year, to annual residents effect year our increase JV portfolio. its Enlivant fall in tenants average This

Holiday We the transitioned portfolio quarter. the manage of second our net leased our to start portfolio at from

in statistics. prior So, this lower are slightly the XX.X% was second Portfolio quarter, we is that level than XX.X% occupancy community the quarter. the reporting in time

increase Revenue rose a unit the $X,XXX, slight occupied prior sequentially. net X.X% quarter operating per cash over rose and income to

management where Holiday for the to Sabra look continue believe living We team portfolio. independent opportunities we middle within market-oriented management to well-suited is the communities assume including

and quarter. X.X% $X,XXX, Living in XX.X% occupancy, Ontario of basis. eight manages a and slightly third Columbia steady up XX.X% prior above quarter same-store In with eight from operating is Senior the and quarter for prior XXXX, which homes on results financial X.X% year-over-year the higher British managed retirement was Sienna RevPAR the Sienna in properties showed by Sabra.

from on basis margin sequentially. X.X% Cash up and same-store was XX%, NOI Notably, year-over-year NOI was cash XX.X% up year-over-year XX% on a a basis.

Sienna maintain in controls, operating tight narrow in occupancy resulting continues results. consistent expense band to and

is opportunities in disciplined more the many from We continue Housing to look in for dynamics the capital U.S. markets. attractive Canada within is development where different quite acquisition Senior and

I Andrews, Sabra's will With Financial that, call turn Harold to Officer. the over Chief

Harold Andrews

Thank Talya. you,

our balance of capital. the debt On our borrowings and based closed improve previously to interest This of on lowered which basis quarter, quarter. efforts sheet cost $X.X of $X.X outstanding as and we XXXX, of points we amendment, XX continued billion our announced the end our September on our savings permanent provided to Xth, X.XX% of facility credit annual by million cost

also with various XXXX. maturities improved the The and years additional extending amendment revolver maturities by laddering our the created maturity to for September September XXXX our loans laddering two of debt to by term

$XX.X June from EBITDA Throughout X.XX our us venture by delevering as our proceeds shares X.X facility unconsolidated proceeds times of generating the XXth, through revolving XXXX allowed million quarter, million times $XX of XXth, adjusted down our September continued debt stock pay to we the net under million. XXXX. common ATM to and ratio, of credit of X.X of joint efforts Program, reduced as including sale our net to These

quarter debt this These to the effort ratio key other to improved through compared venture of continue a inclusive or unconsolidated adjusted delevering debt net XXXX. credit the fourth X.X to second quarter, times. expect at metrics of We EBITDA below our activities targeting of

increasing times, Total value improved X.XX Fixed to increasing improved XX%. coverage to charge X.XX times. to times, improved debt times. X% X.XX X.XX coverage to asset Interest to decreasing

notes unsecured notes million $XXX achieved unsecured due our and XXXX. And X.XXX% of finally, XXXX, we $XXX X.X% redeemed senior of on all due outstanding XXXX million senior October

to a forma reduced pro in X.XX% to savings of as This cost on September our result interest debt of and refinancing $X.X XXth, is expected annual million of basis, XXXX. permanent

the excellent into five-month a second it and investment-grade and again, in was net with demand This span was, market execution. tremendous offering our

of all of high-yield through facility, the XXXX amendments the completed debt refinancing debt end and of full billion, on now of the along have instruments over our our availability $X.X with the including reduced maturities credit have the revolver. by the We

we advantage sheet of This the the fund completes excellent foreseeable sheet our and future. us activities our to balance our take balance refinancing in growth position as investment-grade an puts future for into

a comments performance the And now few quarter. for the financial about for

of million compared $XXX.X recorded months primarily Senior million Housing of quarter $XXX.X the revenues September XX, related the million respectfully, quarter to decreases and income of for in to $XXX.X we XXXX, These million the and Holiday $XXX.X second and NOI the XXXX. ended lease For due of are three to to our transition the the million termination managed $XX.X portfolio. communities recognized second

line the quarter write-offs our FFO facility. million debt, of FFO per $XX.X loss second $XX.X rent or basis on share. $X.X straight-line of connection in was at XXXX. compares expectations normalized the net and with for normalized or of we was a of unreimbursed our amendment per $X.X the million to of normalized extinguishment receivable million with of in $X.XX triple quarter on in $X.X million share FFO recognized primarily to exclude million and million operating $X.XX expenses, was $XX.X credit This

AFFO, FFO at revenues in non-cash a acquisition costs and was primarily in the This to compares which merger basis or million share. expectations and with normalized normalized million $XX.X AFFO and our also AFFO quarter million, from $X.XX of of $X.XX certain and on was share expenses to $XX.X per $X.X million, excludes unreimbursed $XX.X second line operating exclude or XXXX. net per triple expenses. of normalized was

income the or stockholders $X.XX $XX.X common net For million, we per to did attributable quarter, record share. of

in X.X% quarter million cash with compensation the including million G&A our for totaled stock-based $X.X of of for Recurring costs quarter expectations. our and Our cost line of million, $X.X NOI the were G&A expense. $X.X

We expect of cash ongoing approximately million. cost G&A average to $X.X quarterly

the $XX.X million of expense quarter $XX.X quarter interest the in for compared totaled Our million, to second XXXX.

$XX.X the debt rate driven cost lower overall reduction and of our This activities refinancing quarter-over-quarter decline borrowing was LIBOR during by the borrowing combination the total in a lower of and quarter. million from

interest XX, at quarter XXXX, million of $X.X million of under facility September the of and X.XX% and $X.X for bore revolving points of second the expense quarter a credit XXXX, XXXX. unsecured basis Borrowings interest decrease XX at The second the from interest non-cash includes third respectively.

the achieve by vacant from of these nursing the During the to The our three impacted We with a these operations any sell impairment in level we future million Senior than facilities of Housing real being performance. and four to effort of million assets communities. communities stabilized $XX not impairment skilled related Senior recognized associated $XX.X the fund did quarter, estate four rather during decision quarter. an recognize revenues in to assets Housing

covenants compliance at mentioned to September in and addition were of We as debt with XXX% all secured of value our metrics I debt to value from XXX% X%. And previously, asset quarter-over-quarter. debt XX, unsecured asset remained increased the in unencumbered XXXX, to

our our facility of reducing and equivalents adjusted of As times. under reaffirmed no reflects liquidity stated cash of to X.X September XX, ratio than more goal net We million of XXXX revolving previously issued XXXX, $XXX.X million, total our cash and we consisting which debt unrestricted of $XX.X EBITDA available had funds guidance, $XXX credit million. to our of

two growth X% to NOI rate Enlivant upper be be joint respect our wholly-owned October we in same-store XX% X% achieved to range. the half annual effective expectations X, part the the rate portfolio's in in lower X.X% the large increase These are XXXX. of Enlivant our range our half expect With to to to and of portfolio expectations, the X% in venture by driven the cash

of its quarterly October common Board of cash of Finally, to on company November per share. Directors The XX, XXXX, on of XXXX will XX, $X.XX announced dividend November paid XX, be a record the dividend as XXXX. that stockholders declared

open will up I to that, with Q&A. it And

Rick Matros

that, of are about before postings results that and markets are shop are there facilities one obviously just just secondary We still let's the for make lot in of that. we we -- markets. a negative a comments, have do in before Yeah, lot experiencing secondary

its think I specific. So market very

a that shop buildings board We portfolio of here those and and but We smaller little you've the view speaking, costs with labor certainly got performance are our new shows don't lighter market that that the more difficulty in have I see the extremely as bit obviously. just stable across portfolio. entrants, think markets generally we experience

bit impact but occupancy significant, is down stability up there. So to a of tend by couple more we more of or see patients

that, to I'll it So turn with Q&A. over


Instructions] [Operator Scotiabank. comes question with Trent Trujillo from Our first

open. is line Your

Trent Trujillo

Hi. Good morning.

the operator materially. level, have for stable and so you looking decline. coverage at it group that most just across nursing. declined at implication So recent more since coverage the your trailing portfolio list skilled some top operators period segment your improved in XX-month metric, that the the balancing may But EBITDA material reported smaller the implies

maybe you can difference? gap explain or bridge that So that

Harold Andrews

add off it was included guarantee. mind, Rick in Genesis part XX. kick coverage top those I'll and a can and not our it. Avamere corporate of material Those keep they then the ratios have to that in Yes, because But are

portfolio that is in And the the coverage excuse -- that decline the portion that so me, would stabilized of portfolio. overall the declined, have we showed the portion of -- not stable in reflected

there -- our So excluding. that that to of some goes maybe

Rick Matros

And most in XX, came of those top just trailing down terms XX, incrementally. pretty them of number of

concerned bit, would So say drop earlier its effective it, quarters a but persisted, not in and expect going increase off with the and headwind but to I stronger they X that improvement have the concerns basket had and about of those performances we're that see on little some about on operators any in market and nothing operators. those we October PDPM, with we those

Trent Trujillo

learning a additional it's have the would perspective, curve received? still can speaking Is how appreciated? model? you new adjusted talk from had remarks. guess, Rick. to left comments you're little I with is know maybe be I prepared I operators mentioned, a your you early about but more color it's anything How bit you PDPM, there some And in know been days, any

Rick Matros


really the there all, system much I operators patients prepare had prior just wouldn't the easier, no Skilled Nursing disruption said, Facility, had that nursing is for -- was which old was some made a at allow there as the think, issues and serious And I bill some for that good are helpful. of I that transition So every you percentage the to little one of bit they PDPM to was for. that really to there things think,

So get for. didn’t for reimbursed never they bill – because

and because the operators setting in particularly is facilities protocols. clinical that those focusing authority new exist have to allows a of not really doing shifted done and So to trading, coding historically population coding up interesting start to coding on the biggest from but nurses one And of, the system coding has much doing much coding therapist obviously categories. issues that's something to simpler relative it's

terms we so couple I go to as of of of in a going fuel -- And think, improvement will happen forward, things sort forward.

everybody people know was fact, hitting that will sure at coding. though in one, I'm on still one. day get think from disruptions, no day better on were -- I felt even like it there I

for it's to take to time some So better. that get going

therapy, about much for look In the just operators as of think regulators as not pretty I flags. terms as concurrent have certainly in and red moving would cautious and group our possible quickly there been

I think they’ve being cautious on that.

think a will I of So therapy have time. strong in period concurrent group growth happen

So there well. see you'll as continued improvement

there Skilled a to at the doors help you facility savings want reimbursed. opened, certainly of they because the because they of people to quantify, away operators that's And the which Nursing of want sitting patients course, to really that then, wouldn't bit cost very hospitals get take hard stayed quantify, from of and simply to that will one issues extent reimbursed can whole kinds the certain to quantify quite host impossible because now

in going may and have the short-term because And also that patients stay of your in will should to really length see -- rehab to length to that we of occupancy created of the to that which they issues. on changes go have biggest the stay, think, exactly going lower rehab industry and because going I so as on reimbursement solely which longer stay shift of some here headwinds the -- is that a those system operators gearing, fact, length that's impact that then, got than patients from single that's That incentivized thing, population that going continued patients, of all you're well. your shortening is short-term

created I actually the actually the last headwinds the think, the other that and in percentage few So headwinds impacted significant system have years. industry somewhere of

at So you hopefully, some gives that least explanation.

Trent Trujillo

That's color. very good Thank you.

in Nursing the also if push but acquisition opportunities pipeline, don't Rick, not previously because of you more, Skilled interested you might portfolios, mind. to as Nursing mentioned SNF REIT. Sabra that I Just classified Skilled you be more particularly, in, one your perception really mentioned think you're large

in to what's discount seem by more earnings if currently space and your for if those trading viewed and you're are means active attractive investing SNF the REIT, of that being you negative some be earnings a to stigma peers, But in are in yields multiple acquiring of accretion? peer this you it in opinion the

Rick Matros

deals. with one, to We'll and going do Well, exposure we're we can deals -- being portfolio increasing portfolio afford skilled deals. Maybe it do do our XX%-plus to is, skilled exposure. a portfolio sizable deals, deals. think skilled We on do dollar number multi-billion will our back becoming of but Senior going that Skilled through a to we exposure -- without where Housing

class sentiment due swings based asset too for the dependent usually And the of all you us and what negative it's the usually class market much upon the When that with is on positive, negative, too positive. So, respect is by asset it's it's negative. to when completely really sentiment, market. it's

on bit it's a have asset the We think based Senior sentiment a future really invest than more to class. diversity And and bright little we more of to because long-term ahead one class in have got asset advantageous some so, in Housing's it.

we the we Earnings year. laser next that to meaning absolute that but and doing that as more several focused in portfolio that that than doing kind Xs, accretion aren't on still on one we’re Skilled are by that be hundred do the for something we're keep and be to doing seeing dollars, that and million think portfolios no going Xs But, just now, what entertain Nursing it’d focused is that. take should of to how

and to This and the it's year, those the much question. we've one growth right And prepared going advantage really that kind how the of everybody question it's have the going company it's company take clearly position to opportunities, has, forward? of

think going be good. So, that to pushes our it it forgo the we've a exposure confidence we're And more stubborn are and we skilled up, our and that we if capital in about not we cost little opportunities have of do as interim, liked deals other bit maybe than complete continues to improve.

with always As that be existing the a the position balance you later know, more discount to we'll able be to in portfolio on.

to the as field that that there expect opportunities So, out advantage take are side. in

Trent Trujillo

Appreciate you very that. Thank much.

Rick Matros



comes Our Citi. question Nick with from next Joseph

line open. Your is

Nick Joseph

read Thanks. continues grow as you De-leveraging to out.

to growth Let’s of more EBITDA driven? the getting additional start or in this actually do Is that target. equity terms

Rick Matros

was of part I'm sorry. What question? first the the

Harold Andrews

additional equity… Would it take

Nick Joseph

into get the additional there any or leverage really, equity Execution target is contemplating it that -- you’re is

Rick Matros


primarily Program. continuing ATM under issue it's by equity driven the to So,

the driver. that continued it made do We the announcement fourth main but see you'll that's that. in so, And quarter, obviously to

Harold Andrews

And consistently that guidance from said we've been day build guidance. we issued and the

is So there there, is we're have no any there to do. that of -- out sort unusual going other new spike them nothing to no and or

material in that number ATM that amount the raising isn't at of to this we're end through point the going the be -- the of on the calendar. equity year So the

Nick Joseph

And That's just FFO on guidance. Thanks. helpful. core

range. guidance indicated reaffirmed you've of and the that trending previously, You the towards low-end you’re

think I or differently stand now? still comment that trending does So,

Rick Matros


we're the update the line the the but basis that removed we're we again, an -- a it when accrual trending On trending reason towards on specific the about cash we from because still And didn't low-end. high-end. FFO, towards think of we trending we towards comment. moved still for was AFFO, do to low-end tenants basis, rents straight $X.XX I that

think that for got I be to some that. opportunity we've higher than

straight an as Obviously, for then more have us timing And the number have is as had the than well. And collection basis tenants. managed the some down cash we certainly, forecasted issue basis. portfolio on stuff on impact we of your so earnings from mailing cash of booking the as on the the obviously where line upside far could it

So forces we end we with but on the hit to to out overcome still the the feel it's comfortable and expect range. that I total have AFFO, to high the true, range, they still that so put would of have

Nick Joseph


Rick Matros



next Our comes from question James. with Jonathan Hughes Raymond

open. Your line is

Jonathan Hughes

Hey. out on the West there Good morning Coast.

Rick Matros

Thanks, Jon.

Jonathan Hughes

you're commentary at I give EBITDAR on coverage coverage when concerned portfolio you nature? there, EBITDAR us the able I not earlier for appreciate us the those to leases facility then but know are decline Avamere. level and remind their

Rick Matros

in combination Yeah. pretty Facility actually losses is similar charge X, a It’s X, with they fixed that coverage. level coverage difference got X X, employee.The coverage that to the pretty to similar Avamere X. the of X, as

research So, exploration of lease Avamere, a on we’ve terms in done that. quite on

Harold Andrews

now many for percept It's years.

Rick Matros

like five-years It’s that. Yeah. something out, probably

Harold Andrews

It's beyond XXXX. t Avamere actually that. before matures

Rick Matros

the XX for the now you this pretty the is what's they that on Washington up to really financial XX% being that been affects them have on Very good state to in most quarter. talking the But going as waiting we'll But probably there huge XXXX. facilities – that's first next at And because in it's happen with X rates? hopefully, about closed after least doing year of State number one a a have of news that doing the state. know closed things that everybody the coming, in Washington state and and facilities increase we're haven't that to another they're knows, reasons, is point. X% the hear in Medicaid Avamere, on rate issue sometime

markets. in have start to certain going access they're problems So to

that with we’ve really we'll had in what we we – capital Medicaid want differently happens once, So we’re know partner the going rates Washington whether State, say, see to of Avamere. or do anything

them to things the at up opportunities environment, more good being sold in appealing And you them is, to that might if way price is be at a even can for that see the starting distressed go. facilities of pick them One they're for levels. extremely right that to

So they're considering that.

the none facilities. Washington. be impact see another, But things rate two do increase in One, to And one really see do they think, there will way we secondly, them I of those know until don't the of want whether or the on of state occur. anything first a we anything PDPM want to

So ancillary conversion all kind issue really digit stay tuned the got for their that, but IT passed, with of that's issue. it's single really The Washington State. but

Jonathan Hughes

little helpful. has there. That's switching over the portfolio, to Okay. occupancy And declined bit managed

Your the kind when strong to need expenses, what portfolios? just in just turn and rate driven with provide trying of NOI really expense understand I'm to within higher and has understand those been I'm better by to increases, more trying growth services savings. on rate increases is you going

Talya Nevo-Hacohen

talk room When about is and increases. Sure. Talya. board about we're the rate rate talking This we increases,

So change delivery care. that doesn't in to service correlate and a

to So be in the of per continued we care the rate has as has the needed what terms delivered room on individual, focused basic increase. and but board been the rates

Rick Matros

Yes. don't high And levels. acuity have our extremely operators

it's that be going of this will time service think traffic continue top part over of opportunity point. to creep at -- and up is the more to room on but rates level going that driver the on I there forward, the driver of

begin more impact nice think starting stratified occupancy vibrant sort increases because approach to much ratification to and things portfolio the a show how are to the has are taking disproportionate some of days, they more noted low I scalpel that on as should have are of of the Talya and and lower with.

Jonathan Hughes

for years they impact underwriting seeing of as in That's are I look process you out begin tell overall on Meaning SNF? underwriting I'm more down and And know a case for too covering I one your margins maybe that further SNF assumptions reduce it's just their altered look about to then XXXX. in early the pipeline and But helpful. Okay. of PDPM. reimbursement horizon, last If overly deals the as in bit in the kind might one talked just significantly conservative improve to you CMS take to your road that SNF cost. using some they several rates loved thoughts there. did you the -- Rick,

Rick Matros


is quality the depending plus. the to our the X.X of So the operator coverage skilled approach be cap X on underwriting to and X.X and market on rate facility and the

changes gives think don't I room. and breathing think So that I some that

or the with poorly now, money I the call additional CMS that see that relatively don't facilities And egregious. any additional XXXX. back amount going level in that CMS beyond beyond different projections is But Medicare projections there versus think way from was expenditures system same happened with you're is and if One, couple government the of I again. it what to a think to was designed PDPM things of really

coming issue but money again within call the is XX happen final down, the timing back supposed time recession. Secondly, recall may that And not certainly could the really the horrible was was to and pure for then looking call be it that industry the the it. great about as it of rule we and is but during House at that, before recession about back was was of do hours perspective you have the back should as it was math in it threat a much was just can was actual and been, half there White system the twice then nothing

respect. with investors do have -- memory think a I all than Operators due with operators

bucket I conversation. why and you're good that see happened, going the what That's not all restart in the remember think from include they to I operators and earlier. to to would my ours So comment

You're to going see not good the operators.

So concurrent from group this the to XX% max. and X% therapy is

see adjustment don't of scenario that they'll it's if that. marginal in looking judicious what much in is they're through operators to some where the and are because a that they than be and the a there going and line. to years happened may more out the looking they that at few some more And callback smarter be adjustment, most want we've trouble its think down there they XXXX. of guys system than But You if do talked I do

all a And So system this better want step that. that it. is would was industry the see that think much fact think way CMS much environment and do have for do out at this pilots CMS mindful that of think think with I to of putting But the different design creates really runs are the I I didn't just we and in engaged would but some input there, giving people to together like them feedback the for. system fact every I it than and

Jonathan Hughes

Got it.

all Okay. the Appreciate color.


next from of Kim comes BMO Our question Markets. Capital John

open. is line Your

John Kim

you. Thank

incentives, hard hearing supply? Housing from you been rate occupancy. what on board it's push loose new your push elaborate and we're new And on performance. able managed a to of the Just is on out you're just at follow-up too facility peers face there in time room the rates how Can not of really to some communities and that much the aggressive with same Senior

So can you provide more color?

Talya Nevo-Hacohen

This Sure. is Talya.

properties of and where the as exposure. are properties, So venture, new portfolio joint XXX first has not bulk others well as supply. in managed in that's we many additional in our economic XX% have there overbuilding our frankly Those been the all, sits significant because markets portfolio of

competitive the -- markets. are forces uniformly all not across spread have So

to And so and we certain probably supply, that new are within more certain markets narrowly specific they about the that, cetera are submarkets. news oversupply, hear within et

found have the near There the have are the that which we pressure the where Metro some of not had been The the we are have of that's that assets, across Dallas some impacted managed And experiencing seen supply area, markets. even that markets of the cost case. pressures. portfolio, secondary generally kind of of we we because addition communities of pressures locations not have the anywhere in significant but our spectrum some and in in we has territory new some some have others from seen some primary

a that our The is not that has see targets of to market afford really is really needs product in because how other to middle order build you product on a and product rent large -- to I'll add today, this market target cycle, a probably That started market can't in becomes price break needs is part thing product $XX,XXX month a focus a that the point economic that even. interesting certain if that construction. you

Rick Matros

a other Yes. I'll make of comments. couple

net comments still tends our you everything Talya's think things if triple at of to well. senior monolithic. market also look, look is I apply And All housing as the portfolio

not are the it high is. So market urban this, way it's market the the secondary just this and are

specific and operator make where look portfolios got and the difference. located they're the at to You've who the operator is,

discounting think of to has way think with I long-run, they've the rates our operators pay have, resistance lot will able been do off. in quality why a services push their to the they I by the provided to

product of middle happen of in in we'll elderly, to to afford class is have senior not assets be you housing we point the got -- going able our XX% a And Talya's of lot if lot a be portfolio And our to country. where affordable. to

underwrite the right these and so well XX pretty XX to things And in a tough we're we now environment. years holding for

years, realized recovery that better we'll in couple becomes next the the shape, but the be over as so isn’t much of just And stuff monolithic.

John Kim

and just I'm What rate Was Sure. this kind what the revenue exact give just increase rate to the management catalyst system to catalyst or was quarter? occupancy? some being double-digit get the willing pushing surely wondering us the was?

Talya Nevo-Hacohen

did live by that it's They really our portfolio the of – really properties, of and we're really and talking rate gave -- so they and up at intent. occupancy pushed pushed wholly it's XX about. Well, put so They small owned they they so a set expense occupancy and and that. occupancy push expense they

drive to occupancy a like and year So they were below XX.X% were go they really rate. that at willing and ago

Rick Matros

at control They expense is …Their better. looked

is, experiences [ph] turnarounds fruit. -- having it of in there's of One low-hanging of my a in say, done those think few lot just, the terms first BKs stuff rather operator about and and ways to years,

your to that's it's more start everything their on differently, over and a well then where it getting And a And lot point in and results really so so, allocate of sort live resources stratifying you're where leaps they we better of in and doing bounds. Then basis, as systems can time, as in at the their see expense place. improving efforts nice you putting we market-specific looking getting start controls job fine-tuning.

system IT they we've in them the partner that EMRs XXXX, and be convey are on particularly initiatives and done at to a to close of the doing embarking already will not on that that part, new the like, in lot looking they're them that. we And with

So appreciate occupancy focused a that giving can versus But on it's get them, term just there's an I too, comes fine-tuning discounts. still they awful lot and other fact are the more when operators perspective. not and just -- rate actually from it done our to really that of the long

John Kim

And performance, just I'm sure capital Given a the of your back…? balance more the of and venture time, partner feel partner? existing comfortable with go strong sheet cost same still do you joint you joint at buyout to not need the for venture pursue the improving assets. Why

Rick Matros

of write partner to percentages think portfolio. in ability it's on whatever to at, to the where is the going -- dilutive look, And to XX%. for that the regard retain full that less I it's to still our still the check be a bring percent of is exercise remainder then to ownership

middle in of So still the we're negotiations.

venture So our right how that maybe see TPG. we'll a it may -- new be it and of new goes. kind arrangement focus But now a joint not partner with

John Kim

to intention your on Is majority stake? start a

Rick Matros

been intention our That's XX% said from August intention. majority. quarter call always to second that stated some We to X. always It's go been on our the on

John Kim

Great. Thank you.

Rick Matros



patient from comes SMBC. Rich next Our with Anderson

Your line is open.

Rich Anderson

Good morning. Thanks.

up finishing Enlivant. on Just

-- transitioning get -- from So didn't to in are hanging? I they're Or are low in fine-tuning they quite you do or they fine-tuning phase low-hanging fruit still?

Rick Matros

I resources. stratified that marketing in of the portfolio -- terms they've now of say and So they would -- allocation

dozen low-hanging in of got maybe of a quite close portfolio that lot they're low-hanging, then portions So ladder. still is the are But of of Tier chunk kind a the big of where buildings And of couple really not sort portfolio there you've not just middle a it's fine-tuning. to bigger But about a -- fine-tuning. quite, there's fruit. they're

it issues the the got at I'm that's a good because can they where So pretty portfolio, they've it towards look holistic shape and point taken in historically -- where okay, improving were some really there where they over when now the more to we're getting effort say, it, here. holistic shifted more

this a off level group's this versus there resource XX%. percentage these XX% not already I'm XX%, ball, group's my with guys because going this percentage, occpuancy, over different but this is the obviously, over to that's needed management under eye are

Rich Anderson

All right.

[ph] say And Okay. is that? revenue initiatives, was Did management, what what IT that was? John that

Rick Matros

medical electronic really probably biggest records the ones. Its is

Rich Anderson


Rick Matros

still everything paper. Because

stuff kind a it's – in occupancy, occupancy. source help have are the that will that what systems should through and better the -- an extent outcomes of and but the place, intangible So how to referral hat to improve efficiencies with bit. that’s show your quite that you allow on And helps your expenses

Rich Anderson


anything or is could or So there question, taking the TPG this out might that is question? fully process and yes about you're rate be no all partially when or market cap predetermined yes but driven addressing no this the or or of

Harold Andrews


That's stated we has the current with option the part on As of a TPG price. the range discussion. before, floor

about options. performance, think the about, writing right that the to is under to think there current think way cap I So our will be a

still place. next what's already kind them with the of working kind we talking of in with context -- of So in

Rich Anderson


today, understand. between currency message using But Okay. the of few you starting messages yourself balance of that much one down the you've the to last that a of find to use just striking your and more easier delever? it story of times beyond fire do ATM kind maybe make to a also incrementally bit quarters of is the sort turned growth in talking main been Rick, external hose and

Rick Matros


an so focused things. this other So, not one People that on -- busy you're think, and important to point. is because you're things, with tend

on the so not focused completely year. focusing We've done on some acquisitions this balance getting sheet, finishing been always we're restructuring, acquisitions. we're the we're So on focusing

else. pipeline, many We've frankly the skilled had of or that -- affordable, just a the selling stuffs nursing by that been have side. and opportunities opportunities investment not have portfolios is outside that full and and have most Housing couple haven't of anything been the an found We team active we on distracted just on interesting that's not focused of we’ve some

we uneventful it happen of in would main year wanted that. this done I just to terms whatever perspective get So, an us message think complicated, the from be investment for be to

it looked it people sense. is makes just that at say, done, and whatever So yes,

be a the lot XXXX, of to that to place. got like a noise It's good we growth to we don't for up into it's that. doesn't We we our though, reason us need even And it want -- ramp going to right that do it and matter mindset. and with

the really and It noise work. going people to while, understand It's much lot made want just of have a we forward. a it quite that We story. difficult too for don't for takes

kind it who of are And are a that announce conference nice And pin to about the changed, way had, so, to in and we it. period the deals the diversity a don't how we how a we And for that we try of is looking that stuff. get been can all all balance time, have talk back to ways. another of see call sheet more growing we’re I to a position, this why routine want going we changed, complex, it maybe be to have going is people think, to to activity post so tenants in doing frame we're you to

Rich Anderson

of you avoiding and to Is Okay. Last thing question time? with perspective around the sort on the can can is can ball how me. can your of if sort that think dynamics these a do you or operators to a whole do types REIT in something fair regard? in It that of I'm easily coming sterile. down eye Avamere wondering, of ahead from rollout to partners the your role off them you get distracted partner environment ball, amount landlord something the is keep eye and The these be be a say pipe the Is seems other tech you words, the and a are that disruptive, play and of future? that happen isn't me there that somehow. this that you all holding from the In it stuff. of sort in potentially from if time

Rick Matros

got this, as to REIT PDPM, a triple be say new it active I dialogues making is can referrals lot to when you've were I to we when of as A stores partner going net challenging be. came helpful. somewhat would think, flow. It's possibly

the helpful there. each things as the our think perspective to that I best practices active we're operators was about really form for share So, it with from Operators talk Conference all to provided other. because well

goes that. think, have disruption, in haven't operators they And of our these we've I that, time done there. for to having been with we So PDPM, terms credit but period kind the helpful where I all certainly, margin, of think, a look, of seen a

IT and trust stuff, and zillions operators company comes do the and some made running eye he had I've doing to it it – level at we’ve things is its thing. a gentlemen really Avamere Avamere you by who the seen your and have has like basis, engaged senior people a way and and we people its now just I think he of When Chair been takes I've look, on fully issue management number of of was it and really have frustrating had ball. the lot, another in good He's day-to-day times to their rollout there – taken take Founder changes. of think compounded backseat the a which a running CEO management

changes probably but same same transition with think the a ancillary systems, time, companies, they're their time with their management through I So going senior compounded going at at they're software help, the didn't to just it.

Rich Anderson

Got you.

much. very Thanks Okay.


Steven Valiquette with next Barclays. Our question comes from

is line Your open.

Steven Valiquette

Thanks. the everyone. question. Good Thanks for taking morning,

because around as may into that reimbursement comments is of initial have it And acuity average appropriate in overall operator whether coming am more patients already been you some I there REIT kind higher that talked I so So industry. would certainly sounds about. therapy already your comments Rick the specifically guess just utilization are it within sniffs, already was hear down helpful. that funneled patients then to be per far you like been for sniff more the PDPM not or curious

with Thanks, been would those go from acuity so patients So IRS higher LTAC of be coming normally I I patients that taken pool from they would and/or somewhere curious guess am else?

Rich Matros


other, in they that equality basis to their have they system, to rates any be make LTACs things of outcomes that they helps well operators specialized rates happen do it than a skill saying better on exhortative had. the more sniffs and a happen each perspective done path IRS And knew do states been reimbursement get show got of more because and of others that me I LTAC number Medicare rates reimbursement you've So, studies IRS. regular I think number know, but Med few would call changes in it. a from a There've that create a where that to only we've had at that got that by

of under Medicare You do normal Medicaid that rates. couldn't and sort

with had those them impact with are There that LTACHs nursing those where states. to easily of high believe can asset lot where yeah, a do think they aren't discharge hospitals so I that market, from place to in haven’t – LTAC there So many think, them I hospitals – to, patients had because in get what if a they're though send map like concentrated even IRS about patients hospital IRF states, of have an out you the at they markets the to to have or lot more markets something in in states absolutely they I look or and that. these on in where number to facilities but other five are relatively And a a in compete tracker small no sit there the choice occupancy because it's IRFs, classes. definitely skilled we acuity going has

Steven Valiquette

But that yet? per mean there beginning -- problems, coming there or down then very your you maybe color and just but no average disruption a not to saying you curious then more when was the should about in Okay. that no is the prepared that are we talked the you at therapy -- at But again, are that beginning comments I of not And is no that. trend is patient, there little maybe seeing there just is the change hey, I'm guess therapy in yet. take just on already very

Rick Matros

think that seeing the that to that reason are XXX billing and for in where it's therapy operators I really XXX and no same our minutes patients have PDPM before next them the my day And patients. There's being careful. group you goes yet. not to you're We're day it's specifically earlier comments really

So, really I think our operators us that. in all are being careful with of discussions about their

competition, believe the manage they'll decrease start positive. be other that rational. is to up of way that services able time And it's think ramping a to we to over period and balance, going in in that will a be net any their I So, they going as the be therapy level to of be utilization --

think see the So, months. more stay next I tuned. But we'll over few

to on think, of been in we to consistent, that even super saying I've been really operators we've good six about along really all I number going take PDPM that see And tangible impact though we're PDPM. believed some positive months across

year time to operators And of maybe its show till issued position if we provide seeing not because from we be in we're improvement, snapshots going won't of to now, quarter the basis, to we first XXXX, trailing it by so So, XX on right? earnings see some that. the a coverage able for you're

keep everybody supplemental, and that the an eye to some to to would that helpful -- we'll we that. extent So, on we'll make additional that be want then do disclosures

mom-and-pop One feeling other to comment I there small make sort with there just sophisticated terms start are When been in think, operators I less said has want a opportunity. to operators and disruption, pain I pretty particularly some no where they're of of number quickly. of operators, going disruption,

weren’t to you October So, and going prepared you're from nurses that really patients, if lower care your enhance that's your weren’t appropriately Thanksgiving. specifically, all that trained you billing then to NBS Xst, rates those and really haven’t that make PDPM function starts a to nurses, -- if tough with your than the for money and and to of going to at XX requires coming you're a level XX days,

certain to more because those to part do in prior about out. operator that skilled be PDPM lot the they're the on can of much terms So, to some there they and they case. all how on will they've pressure depends that, opportunities later some time some ready hear that a to why themselves cash in feeling operators now of out how But just that be operators of stuff have bank will of whether much done of buy and than something sooner that level the goes percentage it wasn’t of to that going and -- the there sort and is awareness they got be there

think that way. and we prepared, be October lot money. that not So, going going on this It's so you more are of great, that just it operators appears making don't work if around -- was said we're to to that a Xst, everybody -- hang

Steven Valiquette

Okay. All perfect. the that's color. Appreciate extra Thanks. right,


Merrill Our Lynch. Joshua of from next comes America question with Bank Dennerlein

line Your is open.

Joshua Dennerlein

guys. Hey

Just from one me. question

trended systems it's think kind far more has as plays Housing dynamic rate or occupancy mix rate mentioned your You the out? keep How forward? keep out we pricing point pushing of managed At should and that that going this going think dipping you balanced forward? do Senior as on they Will portfolio. as occupancy

Talya Nevo-Hacohen

to I explain going think how that Rick's depending and point the when goes that the and you occupancy portfolio opportunity you by metrics. and to is how other differ on the why tranche earlier -- portfolio tranche

and So, and cetera. occupancy, of the lowest et model in economic been I track it's -- opportunity to a that think, benefit point of disproportionate pricing the probably whether is greatest in that has particularly add the at dynamic should be has fixed terms occupancy effective continue to cost, covering

our might will lease units typically been be occupancy it harder the think of search. have on other tranches to that to I additive

Rick Matros

been five now spot occupancy spot real it's weeks this seen We're new six engaged really we've where looking some since about Yes, when really improvement. fully at we before, actually to talked they initiative.

feels just once Australia. in but season it people the what lot based you is concerned this on about really a of got to what we've better, flu So, seen going do happen year are

where So, than will into we'll they they lot can through trend be been current going position that, goes, that to otherwise have it. see but get a this better there would if continue

Joshua Dennerlein

Thanks it for me. That’s Interesting. guys.


comes Bernstein One. Capital with question next Our from Daniel

Your is open. line

Daniel Bernstein

back good goes me. it’s to you, My the for morning Good still question for JV portfolio. afternoon

You're XX% occupancy. pushing at rate

get that until that you is XX%. don't rate at typically, stable kind close so you is push indication occupancy? an to portfolio that And And of that

portfolio? that understand within assets growth showing, that So some Maybe dynamics there? high I'm that rate the on what even are pushing understand just so are trying above just the nuances to rate to there’s trying you're

Rick Matros

same a I and and the is of, at improving can occupancy function time. push to They – more rate community. is it's think continue to there push reputation try

mutually lot So, things are exclusive. of there

think it’s awhile. that mode have portfolio a with different I little in turnaround quite -- been I for think the it's just bit

want Talya, you do to…

Talya Nevo-Hacohen

is sort across detail and comment forward. not best of only dynamics of and granular occupancy it -- the and your And is same portfolio talking the is properties the complexity with neither My the question rate. answered is about comes XXX we're where of that's

specifically. specifically rate in leap getting properties raising tranche about opposed a there there I occupancy seen and occupancy to lower terms when there’s there the referenced what focus are deriving spot is So And is one is a – well-occupied opportunity of that's talked that focus assets. push on there and and the are rate where as people of and the are occupied property and the in we've and that's properties occupancy tranche I of the big

Daniel Bernstein

within of wholly-owned portfolio, a occupancy way, folks other other drive over occupancy the obviously, operator but using maybe and that's good a other too, I'm not the think, strategy, some to strategy, your using REIT some your by is there rate? rate some we strategy, you over general Is are to portfolio driving general -- assets Okay. I saw a that

Rick Matros

circumstances. any that have the occupancy for -- little negative Yeah, they on that, a operator under impact that with don't don't time. they period staying long-term to want want I we they rate than to compromise think They compromising of more bit can that a that to of is think drive extent lower the do any

Daniel Bernstein


Talya Nevo-Hacohen

those four in one it’s the wanted units and make team actually discounting sure occupied. be that. would getting in in has I I specific and And The to dynamic of is buildings Rick what evaluating understood. add decisions six about or I to it's me to model not nuance. but pricing Let units said your possible the assist would not be It's range not that this, understanding think pricing a -- make model. rents making It's and months, want free discount

Daniel Bernstein

some feedback on guess, so And little has been and calls, free from guess comments my using the, under Okay. guess, trying nurses pressure but of you bit do, PDPM, was other that's discernible I bit to labor under labor there benefits can I I missed are savings nursing of some of you some be last a question, on discernible, seeing of any and in I just little now I some will paperwork I'm PDPM. pressures might maybe instead guess, operators of, would of that I that there, PDPM? just understand your staff up expense actually

Rick Matros

to I helpful Therapy going why -- Association screening therapy, therapy side because levels, very therapist, to you're including is extent the a which to hear going that the you current a they’re people which be think of some it's big of to the going percentage is have on one different need that's PDPM. on more therapy experts number there

now, stuff been more bit got they the as to on assessment kind – some margin, Dan. has little coding be But have going got a often, there, maybe to to other side, you're do so been regulatory burdens there’s on not nursing there do. it's more that they have There some of so care some been lifted, time the but

Daniel Bernstein

appreciate I That’s color. had. the all Thank I you. all


Mizuho. Our Tayo question next with Okusanya comes from

Your line open. is

Rick Matros

Tayo, welcome back. Tayo?


Tayo, your your line is open. Please mute button. check


Hartwich Advisors. Lukas with from comes question Green next Street Our

Your line is open.

Lukas Hartwich


Rick Matros

Coming Tayo… the of from shadow

Lukas Hartwich

I hanging. he sure Thanks. will him come back. am Leave

I Just the including and all got level wall provide fixed a tenants Can others? your quick coverage with four facility one. so add you of coverage,

Rick Matros


to The that been and that clear guarantees, disclosed primary of then give those XX. a I to the and historically tenants we has coverage where that there we'll and stand. have provide there haven’t and coverage our our investors really is We top think everybody don't give for picture intent coverage approach significant

We have never that. And published calculate…

Talya Nevo-Hacohen

Yes, critical people like is and confusion number. reality early showing -- and to lower of at the back a both to is all look actually this there the create time the was always been are we the us would guarantee days in and way

we're on very we So paid for few many is so we charge that coverage that of get have number the fixed them. the to going show --

Rick Matros

Two of them.

Talya Nevo-Hacohen

two that Lukas that we do of for. many have ways, We

Lukas Hartwich

Thanks. Thank you.


to over this I'm no showing call back like And questions further Matros remarks. turn the time. currently Rick closing to I'd you. Thank at for

Rick Matros

for today. everybody Thanks, time your

hope kids, that treating have you those or have For tonight. trick I gone guys

around We questions. day. available for and Have are great a follow-up all Thanks.


for you concludes call. Ladies today's and gentlemen, Thank participating. this conference

You may disconnect. now