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SBRA Sabra Healthcare REIT

Participants
Michael Costa Executive Vice President of Finance and Chief Accounting Officer
Rick Matros Chairman and Chief Executive Officer
Talya Nevo-Hacohen Executive Vice President, Chief Investment Officer and Treasurer
Harold Andrews Chief Financial Officer
Josh Brown Scotiabank
Juan Sanabria BMO Capital Markets
Nick Joseph Citi
Rich Anderson SMBC
Steven Valiquette Barclays
Lukas Hartwich Green Street
Joshua Dennerlein Bank of America
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Sabra Health Care REIT Fourth Quarter 2020 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Michael Costa, Executive Vice President of Finance and Chief Accounting Officer. you. Thank sir. ahead, go Please

Michael Costa

you. Thank

expectations, our Before we and will and SEC you statements we risks expected expectations to the our in as later comments response of and press to operations, including I our making forward-looking materially, want the our XX, we today well to release expectations regarding are investment and valid. was December plans. our subsequent events and be concerning forward-looking comments of statements the earnings pandemic, results to XX.X the your Exhibit tenants could included remind X-K operators disposition to our are ongoing the financial Form that statements we our cause COVID-XX subject and position to acquisition, and on results that impacts questions Form furnished and circumstances, update management's uncertainties that should current listed based our yesterday. risks We year obligation including regarding that to to yesterday, still the reflect begin, ended the XX-K our no the for are quarter you future undertake not in the in expectations regarding actual our forward-looking make as SEC or in XXXX differ as with assume in These filed

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

turn earnings Health also of CEO call in Sabra and and of the release, Investor me over Care with And be Our REIT. section accessed that, Rick to Chairman can let XX-K, Matros, Form our website. the supplement,

Rick Matros

it. I Thanks, thanks and for us. joining Mike, and good day appreciate to everybody

moderate care operators, year also and here are our a at then which the real the an see few again to also showing at start positivity, the more have dedication. we and would First I a job on have who in let and all once but appreciation like well. as providing and and employees damage, of Texas all to some state every thank who call resilience want execute the where a the talk facilities, finally, amazing express done on continued to later, to about housing to emergency have other continue have tunnel And to in minutes. to was recently sector the that minor shouldn't senior out generators. the if facilities else skilled operators, have continuing and difficulties with the federal all provide sector, everything the to the fortunately weather living backup elderly. the also government then had I through cause. who to assisted I'd the I'll light and day they're point for they my what of the who want go here me primarily the end of the caregivers really And support went are we show There thanking top any. up by to finally thought just frontline sectors workforce, mission to mean through I

that facilities past that. So short outs, that them short that and now, to on our very of facilities fine but only a had the was they on The get didn't of And to dealt was there and were evacuate one roads a had a else really of was last few staff we're block for physical But difficult. top again of everything for really with time. in right perspective, bigger problem but able most drive from very all just period that being to plant and long. have

having has of being has a to Sabra Michael now to to the interesting just a enhanced the don't as miss all beat, connectivity they developed and been beginning promoted which so touch Sabra with from And Costa more been staffs, during we've made great years the finally has Porter, promoted the pleased the of almost just from all since This Clif couple members ESG. we're want to of new onboarded are all an Katie improve unique productivity fantastic. hard done seven operators Accounting to here. of significant actually also want who had last benefits still and my Texas. to and the So year maintain Kono to Mike but Officer. for they really and three I for developing of these and then And Cusack. and efforts that home We Ann stay areas other work of lacking diversity be work Chief express December I the with us done, appreciation amazing the to board a our we had the all Officer. and sets analytics, later a the the healthcare always some pandemic, to and not working team thank certainly data policy, things just in to to challenging provided and our skill we've board working and I was Chief interesting team each creation but caregivers some I some we've that other since our and board to opportunity job in our and Accounting goes And pertain happen. him board really culture it staff we members, with before banking, get enhance see and things we've company, of think, couldn't least, in and on to and had want new changes that congratulate home, Mike investment bring we try

noted our of ESG board I ago. second new with a members one So,

that work through We we've this the in initiative throw outcome. on By ratings S&P the Fitch our We months things will be something affirmed we're with we and as with and all the first before started a dealing months, pandemic. next remove the releasing certainly outlook also have really the agencies, working going negative Rating are really we're all The pandemic next affirm with report some pleased pandemic well fantastic down. ratings And our was our the done and inaugural that our to to out pandemic well. still have report. the few released. come few ESG

and great more talk that. will feel Harold really about about we So that

moving Dan to some announcement is Dan of become Sunrise. on onto tenants. He have CEO edge. is of that Jack been beginning of with been COO. a to great since really there the over job Now the with did And CEO of we has really that our Enlivant. there Jack fantastic seeing going relationship be Everybody deep building was has Callison He Enlivant Guill the with Enlivant rather. the is Dan. the Jack an CEO, a

anybody outside. lines be so that do there, instrumental on that the is CEO. strongly We don't very, there will as continue to the any very to Jack that great changes feel established. to He noticeable a feel And and building more was in on We are all comfortable. job going a that expect Dan we than culture

this – year a it know we detail like really this to resolve a and than would to other expect not We also to us TPG expect at it's the has potential they year. in resolution JV share this point, let

So really the take The XX% we'll be knows working team during It's the portfolio. making going We with as we're buy pandemic the a portfolio great, notwithstanding, or time their out, we to exit by pandemic. buy TPG think I out whether liked to for it's is able on us assets. decision liked owned or that's taken and be recover. is retain And the XX% we to a we TPG. everybody but hit the to

And it do We're not do us just to work for going economically. so, has just to it's it. to

remains we to and be our shareholders whether is seen. with so get And beneficial transaction can a have TPG there to that

So on And as talk stay more about Harold little that that. tuned will bit for more well. a

$XX that and still a the of hasn't distributed that's point terms that want in been In HHS is I fund number. out the to GAO stimulus, left billion there

very a number specific quite The there XX hospital that that So were of to accurate that's number. is a billion in is because increase the actually back not are HHS. to returning providers funds going needed of process

So we relatively going to the think significantly. is XX billion actually increase

still. but well. that, that pretty on yet money makes sitting as to that the ongoing what's on it with happen tuned There are we good don't of feel there it going certainly discussions, stay know level but exact allocation So

waiver year, actually quarterly We're But the health you probably act going carries and be public the but As that can we're Becerra Chiquita to Administrator with confirmed. Xavier relationship that and also nominations that for look CMS those will public it for through be quarter. very extended continued increments. we that only act pleased Biden's and with the day health that's technically note emergency their having extended course a in dialogue Secretary three on extended of with nominations all of was the and it sequestration, another to stay the productive forward know, that's emergency FMAP. want optimistic the Brooks-LaSure assuming of I President folks, HHS are for

what any the effects they're residents numbers since and least they're and the expected have care the patients end okay seeing to saw which they and two we really thought that shots they have have And – they started dramatically. aggregate, as they aggregate to close obviously one, vaccine they In having December, vaccine is and were on up the the stats, Now, with that staff, their XX%. we're and improved scheduled if I is increased think only XXX% who XX% their in and about there when confidence. moving and weren't to of staff, got we're the see received would patients at vaccine now second received to provide it side the colleagues if to receive was for residents so at of our that not the one of update

And numbers so, numbers we picked those to those to were dramatically. expect continue And improve. up

number patients over XX% are and residents, We on have employees. a operators of that actually

just news. good that's all So

these restrictions, facilities for of availability impetus has beds vaccine due improvement. restrictions rollout, facilities, isolation admissions simply are the been it Due due so occupancy to to necessary. cohort As of provide lack which will additional limited and eased much to for the are

significant significant, one been because as beds, have isolation had being that rooms focused on equally of hospitals but always bed are well the that number only at equally – for but those surgeries admission those the our certainly made protocols. use two restrictions can very have the of we flow huge we've regular but And capacity occupancy. the So factors, not having cohort and and for hampering admits

more normalization improving environment amount and occupancy normalization So as the the accelerate we then vaccines starts see we uptake should of activities. lessen going improvement. in all even facts, with and start to also facilities the having that automatically group be those the there ahead a that will That's margin to labor of have of should

of early communities impacted January. terms surge, facilities week that's peak And the positive by only had since been have dramatically the that tests In and only have recent improved last COVID week two two the COVID new before. of

news and has mortality as our there. improvement well, seen come portfolio nationwide care So, as so dramatic just facilities. for good in the We see down same we've cases and really that dramatically all long-term

couple nursing is health it's existence impact and Now would been benefits a over out One, the I calls occupancy. health This been terms difference the senior at a well home to housing. that home health come of because and there, that's mention not pandemic narrative or the on narrative. It's off home that's point lot and out of of home has the by it's in just skilled part narrative for and been the earnings impacted had whether on of a want some in one decades. there health new this sniff I up is nothing in

particularly can pandemic looming. and discharged care health with go patients think care clearly they health get admitting we it's good – a And frankly, lightest we do benefited to home a to patients as because crisis demographic has home. hospitals So the more take home back have thing during lightest that

and throughout access in decline exacerbated be in nursing. supplying issues are they're We unskilled going terms that already skilled to the of country have a

need country they've So a more be as we from to taken as actually society taking historically a and the perspective. acuity home health than

intense and got However by all in intense. to nursing therapists that paradigm said, living by and but in got but huge living, with day. And same you've facilities going for change. between are therapists definition much years in clock It's as acuity nursing, there the the so last we intensive acuity visits isn't over in There nurses it's skilled health assisted interim home the home around differences the more XX/X. rising XX obviously not the assisted very see we've the settings nurses skilled every than

the doesn't our things We through out two can everything the recent We're we more Genesis QX normalizes to pandemic. bottom it And million So talk coming on in paradigm think under about portfolio. so the either, will configured activity pass $XXX.X expect in else On was investment that's and see But managed change moved going cash normalize that because on it's only best a close based statistics to we managed down. of as We yield are primarily we more issues. talk the were determine that. how guidance guidance, but about not with is most that we we those there. to to XXXX a really just put really, that and in do blended detail occupancy Harold sure resolve X%. then

And some currently at whole we're starting opportunities, there additional about starting see some there. interesting seeing actually housing, opportunities. and billion to out a see pipeline behavioral but senior we more acquisition some. $X.X lot stands to just primarily are Our still, We're we're opportunities to not skilled but looking that

in February from has the and of very through end our second they're actually effectively point industry about basis which some improved and basis as basis to mix, bottomed operators. time, point was year was the SNF moving points, seven but decline end XXX To points out recovered almost our the in that X,XXX points two December. up points during top statistics, XXX at from in XXXX down December through months February occupancy in a XXX hit they basis points that general important – for since the points XXXX. basis bottom of of mitigant of The the basis this operators from has Skilled end industry end the stopped – February week the well. actually XXXX XXX Now through however, recovered the during they've XXX aggregate dropped skilled XXXX, occupancy operating

we'd be the some projected to we And to be quarter top can data but month. too year. points project, of you industry and kind by both it's shape improving know really talked of that So early it on back track operators around we've because of to XXX more – as for this XXXX good the conferences in first we've if skilled end points by in that had, got we've that close about our for that sort we actually the aggregate pretty stay of basis the a would We'd really love or of back. obviously,

if can see actually we'll we So that. beat

with that's operators portfolio actually dropping well specific points facilities within very of up category. basis function really are in – really lease leased period that in to housing and during senior having that XXX that a occupancy quite in XX small Our a held those markets

in we've EBITDAR large so they the coverage to coverage, part that gotten to pretty assistance a held the unlike side, X.XX. space. skilled than wasn't X.XX to was all skilled leased less the senior senior And much housing from assistance improved actually X.XX in the which obviously well EBITDAR coverage, housing flip there lease due that And on

with our have forecasted pretty change. of it NOI. and collections required rents. Throughout have expected unaffected is turn the that, It's And permanent Talya. point. And finally, don't our our of portfolio by any the at this And a would and in hospital to XX% been None the still XX.X% to as of I pandemic, restructurings contribute we drop shape pandemic out want been I'll good that that some. expect operators point occupancy coverage well. our meaningful at have over to has to specialty and rent aggregate rent So that EBITDAR we X.XX

Talya Nevo-Hacohen

senior Thanksgiving fourth result pressures quarter In you, continue experience of of a XXXX, the the that and followed managed and Christmas holiday Thank portfolio occupancy the Rick. as the season. to pandemic our surge housing

was December in in cases In in to just February, from post as nursing December cases fell fell early to skilled the the vaccine XX% nursing cases XXXX. By decline Pfizer the XX% changed U.S. population in late general Cases January the in staff mitigation skilled educating senior both optimistic. adoption and financial maximize and surge. is dramatically. began residents by a vaccine and have this the recovery. While some XXXX, the vaccine vaccine provided the compared general on their move nursing to skilled compiled new when their to using housing the spiked and industry government began holiday have and the to the decline and do pressures we population the housing funding population that the Moderna general the vaccine in to documented and operators from Pfizer getting road buildings, participation safety at the the to of our linchpin senior data cases to been intent reason impact then in be to closely on clinics path while so in incentivizing clinics All the nursing the dramatically living, have of the a With a congregate to spiked normal indicator demonstrate COVID of until Nick deaths of launched. fastest vaccines, community. have launch nursing as into residents After the tracked XXXX to with and shows continued leading skilled record plateaued skilled launch in lifestyle the potential and as from deaths by June since. cases CMS of implementing

of a presentation over Revenues government information quarter. and Occupancy in XXXX compared to by facilities. with X.X% grant per eligible we sequentially of from XX% million. and the operating of I the points the to our to consistent quarter government joint received million industry. community highlights package. in living the communities XX% and in which the in the the then and a quarter the declined relates third quarter, our in XXX supplemental $XX.X portfolio one XX% the cash by and will share for on and exclude experienced of funds fourth assisted two the provide quarter income The As XXX basis end million REVPOR, to portfolio, assisted results that decreased transition If to quarter acquisitions communities memory of the decreased living holiday Revenue and approximately an senior managed revenue $XX.X quarter. line illustrate revenue with U.S. XXXX, received will of was increase care the the generated declined occupied by the both inclusive housing and income room, To basis annual approximately balance grants previous that wholly-owned same-store XXXX, X.X% includes to Sabra's the start net sequential unconsolidated quarter fourth X.X% portfolio X.X%. communities. excluding Canadian quarter of compared managed portfolio, in million decline fourth $X.X quarter net operating portfolio $X in by prior exclude of five our includes same-store relates of of of point trends the respectively third Sabra's Enlivant operating are the owned results wholly of our the of recent the the These with venture Cash managed managed XX.X% this XX.X% basis rose

X.X% as was same for a that slightly a XX.X% the approximately we preceding XXXX. net have a quarter, was basis, by result income in XX.X% and on same and venture the NOI with in business XXXX. X.X% with compared receipt. decreased XX% of the a resulting would would grants. third cash store fourth depending in offset rates higher store X.X% government government with X,XXX decline Average sequential REVPOR had government of by X,XXX a margin the the operators on Sabra quarter. the and XX.X% in In quarter Cash basis XX.X% quarter a and was challenging rising lower a the had to $XXX,XXX the operating rate from on dynamic cash and eligible compared margin owned XXXX. excluding of with grants the same revenue basis. operating basis same decline joint of Enlivant occupancy operating compared occupancy funds declined X.X% store same amount received a on quarter, sequential or a XX.X% in and in in occupancy Excluding revenue grants same been lower have on on in XX.X% impact sequential fourth only quarter, Revenue store income receipt the saw sequential quarter on X.X% leverage the continued disproportionate government the fourth decline basis, cash government a occupancy a of on quarter we a and preceding quarter compared fourth quarter have reflecting NOI excluding high higher in on fourth XX.X% was basis lower which quarter the a quarter of fourth operating by net store with the timing funding The and decline as basis store portfolio of saw and same

of The move-ins of wholly holiday XX% move-out the received between saw vaccine rate average. gap The at REVPOR the quarter, its quarter January, XXXX prior XX% have All of of staff the for fourth $X,XXX, January sequential had occupancy decline. XX was XX%, those and significantly momentum XX Excluding our and far pandemic cash and had January of than end in for the a was before basis lower excluding compared Same Venture venture the communities fourth similar fourth and a of revenue quarter lower February, to income continued the basis began prior a was quarter owned quarter lower same with reduced government joint government XX% funds, XXXX. fourth XXX store quarter. narrow and X.X% member by driven XXXX. COVID-XX. XX.X% lower quarter XXXX. or operating decline compared Sabra's move-out government quarter in positive communities that Revenue than fourth that member December Enlivant sequential same the prior XX a clinic $X.X a had a X.X% $XXX,XXX a resident to a the X.X% level vaccine results performance. with or quarter XX% themes of the a Fourth operating Data communities the in funding and in quarter the compared test quarter, of at in to NOI Since basis X.X% than Joint was positive decreased have XX.X%. nearly points rise residents portfolio this basis the a to surge. staff funds second has on the January only move-in clinic. had store of resident with store quarter declined shows X.X% in on cash XXXX the occupancy XX.X%, By into started Without with a the higher compared industry would on fourth all XXXX Subsequent quarter higher have the completed XXXX. month, occupancy. a X.X% while store on fourth funds, by move-outs remained similar to month. Enlivant net compared a in of decline sequential to staff million, decrease of basis first compared communities was and the their have end with XX% X.X% compared and it's their so test higher late same

from Excluding XX.X% XX.X%, occupancy positive government $X.X XX.X% revenue Cash a below million; have a government More quarter who resulting outsized month, XXXX. down touched slightly January, two cash increase member period. from was recently, net in for was for prior at Enlivant restrictions were Without of resident nearly with store grants. same would the or the on on sequential holiday those the surge impact deaths occupancy. The surge. all combination communities also and that's an of XX.X% basis of post end COVID resident XX X by had costs basis quarter and during COVID-XX of a the communities move-in a associated residents needs. quarter was an completed have the Enlivant helps operating decreased January and decrease their by a mid-February PPE same labor these vaccine the our all currently of income clinic sequential funds, points with had have receiving communities on flat staff was well higher compared including incurred their as surge, XX% with lower already XXX of costs NOI basis and second funds, while vaccine. have By wholly-owned clinic the only employees increased fourth as first XX%

XX.X% providers. rapid the independent quarter XX transitioned was for to back eligible XXX% groundwork receive XX% to about in the a of communities transition to in in the the $X.X support retirement lower on that with compared rebuild. with living with fourth X% following of XX sequential and presented was XX.X% holiday the with in the XXXX. with of vaccine reduction compared operating occupancy fourth to distributed levels Holiday which of All flat basis percent. Holiday compared fourth quarter living on of in quarter, were XXXX. assisted quarter basis infection XX XX.X% quarter momentum occupancy a one to the these for quarter a not X.X% Subsequent compared occupancy about the a of prior operating was prior X.X% a are decline. operates point clinics, properties to to quarter, with in transition driving net lays the REVPOR saw XXXX. basis, rebuild with community, out to million, sequential same-store results a the compared was government the to pre $X,XXX Sabra, and one property. time January, of the fourth fourth reduction Note along income X.X% basis excludes move-ins take declined tandem plus January pandemic we end excluding In Revenue XXXX, will This lower it increase a higher X.X% portfolio quarter with XXXX and month. in December and and the quarter, an XXXX. cash of to X.X% occupancy and on increase XX.X% While move compared decline prior of compared the

member year, Holiday had Over for test XX positive staff have that properties Sabra the COVID-XX. for resident or all last a private manages health aid home

of communities recovered stages creative and the clinics beauty eligible negotiating order and has XX of sales the already move-outs safe, of not to XX% reopening mid-February, for visitors quarter Holiday currently with the saw tracking lifting XXXX. to Holiday its needed respectively. fourth strategies. with Five between activity five communities vaccinated a initial those XX% for prioritized have or living of of quarter restrictions, such rebound aid of in and vaccination in held XX% limited continue of communities on XX% reduced and vaccine Independent In our with to in salon. leads, premises, dining XXXX vaccination are confirmed have As keep XX were and government residents is Holiday capacity, be communities fourth as organizing various of partners. and clinics associates in residents move-in and and

More quarter the than cash with catalyst on about vaccines, the Living receiving XX% when homes Leads $X.X occupancy staff. residents the million, with least staff is quarter quarter although one Ontario vaccine Fourth our XXXX. what fall, and to on quarter the just It compared and January compared I'm occupancy with X.X% will be the was and already cases have the and remain of XX% move-in quarter quarter, case lower operating million, Columbia a fourth flat that was vaccine was after the British yet vaccine of our recently a sequential in distribution basis experience Sienna were and same fourth and and and $X fourth the minimal. had REVPOR move-out, the XX.X%, clinics gap an are a XXXX sorry, Canadian $X,XXX, Sienna are Canada X.X% has need having heels in quarter compared British lower retirement have has homes the of a portfolio at October, for not nearly income lower declines. our a for prior the had in are Both sequential Thanksgiving was a homes In retirement of revenue Only lower basis seeing XX.X% in prior In compared after of in – occupancy early XXXX. XX.X% prior basis, month. care X.X% with death with the decline on of XX up by a and lower long-term by point portfolio than Sienna a COVID quarter, Ontario clear fourth prioritized compared net driven decline X.X% spoke impact COVID-XX, one after reflecting stages decline over confirmed narrow driven even which the higher Sabra. of fourth without Columbia quarter the care. homes move-outs we while remained rolling between surge X.X% double of to We prioritizing they out Ontario on homes retirement Enlivant. fourth of ramped vaccinated. increasing significantly XXXX. had match to level retirement manages distribution, move-ins and now eight trend on Senior

have appear noted prior senior housing We rates quarters in in elastic. that

qualitative, They're rates quantitative desire. move or Our in perspective because lifestyle, by seeking need of resident's operators change out in rather whether decision driven factors. have consistently maintained to being the than has a

January XXXX, we lifestyle have Occupancy Housing and they on pent-up Lower that is concerned declines remains about the of when is operating the what lost Managed in Managed X.X non-stabilized our results largest our portfolio. living, portfolio, XXXX Senior that increased communities when infections surged living the that volumes, Housing drove results outcome. resulting vulnerable variable inclusive death January and they during of The our had to and in in occupancy. residents a converting driving Between XX.X December challenging surgeon largest portfolio. and general February uniform months. in and holidays Holiday percentage quarter effect rates move-in assisted is higher the more residents among those occupancy the in costs that people potential community related PPE lead XXXX. fact has our speak our COVID that rates the impacted cases not fourth But labor, Senior are were who particularly move-in demand managed points assets in the COVID move-in. in leads will assisted particularly more and While XXXX the higher work there about

some lower simultaneous offset further versus it assisted lower receive operating were are the significantly fourth didn't living, quarter support, in the which XXXX. independent and December lower even compressed. Cash experienced assistance in and our operators income living costs government in higher While did revenue net margins, was

independent The indicate in vaccine a eager shared high reduce spiked seeing and nursing we'll as to have is and vaccinations, begin length decline a adoption something reversing of return move-outs. will outbreak. enjoyable, will a rates the safer occupancy costs, we PPE to or come had now place. operating gradually cases, staff Operators that value expenses allow losses. potential have the precedent with this within we during pandemic for vaccine will is Financial the of brings show occupancy fewer following Both of resume vaccinated to over will evidence face it in and them allow Sabra's residents net residents not living leases that population These a first cases. first converting residents support Andrews, in restrictions COVID that skilled the fewer is clinics now time. Harold With A stay. senior on a income. stabilize to fewer convincing brought underway. are their month in expenditures which our steep help will to will an Again, lifestyle levels well is Officer. life. the broader will living labor to adopters, more call within pre-pandemic their decline we trend which which stemming statistics will to the to the help housing community, also should but whether or It among extend normalized requires Achieving step we're that only discussed, that fewer along in and reasonable and I turn which Rebuilding portfolio Chief leads assisted fact, take community is in have maximize natural visibility a the cases as disaster.

Harold Andrews

additional the of Talya. first the and provide on give Thanks, then for our quarter an XXXX. QX I'll overview numbers of guidance color for

December to XX, amounts $XXX.X move straight-line quarter the from rental million, we and total For recorded of revenues and a $XX.X of and NOI write-off million $XXX we Signature months revenues, for quarter, to third ended above market XXXX tenants rent recognition. three represent million cash primarily These increases revenue and $XXX.X third respective. basis for Genesis million due in-tangibles lease those receivables as a the

We which a total trend. housing grant in from second $X.X third were portfolio quarter of the to Excluding had million $X.X $X.X which just million, that by $X.X management Total with of income recorded was million revenues in reduction quarter, that Phase our the unconsolidated this this in on million with Note lower to of venture reduction rent Rental quarter. revenues $X.X was decline in a decrease million Tenants fluctuations that quarter third the of basis declined from $X.X in over senior And this in as million to the compared including accounted some during represent of leases impacted Which cash to fourth revenue portfolio $X.X government during million for transition XXXX wholly-owned X% that to NOI reduction collections the joint recorded government a of cash collections quarter type flow rates the by QX and to we $X.X quarter do grant Enlivant level. by handful including income due collected in from cash write-off, or was of can of period further $X.X quarter a also cash from basis. declined cash fourth and pay Enlivant $X.X million reduction revenues Why? a owned stem impacted payment, increase fluctuations to basis the the income. not wholly related part relate fluctuate in grant revenues compared quarter-to-quarter $X tenants to tenants. venture. the recognized These declined based million compared our in for on million related and available operator third million. government results NOI are a of revenues at loss cash million. $X.X the the flows This collections in stabilization QX. joint due joint see a total of as a new venture, arrangement

cash and FFO the compares and AFO, for $X FFO normalized share. the XXXX. or our per from is $XX.X or in are These third of our related in share equity quarter compensation included just cost Of to and with the G&A to or Enlivant to owned assumptions, per The expense, per have the costs resulted quarter. This quarter, certain at compared portfolio the quarter investing $X.X to which million $X.X to our we that compensation XXXX. $X.XX line wholly to in quarter, and quarter $XX.X million that third quarter share in venture, and for liquidity third compared of or stock declines with on was for quarter, million third in in lower line. position expectations; of $X.X take cost quarter, in in from million in the the our acquisition based In million stock of to totaled common advantage to updating $X our December share. expense attributed expense present XXXX the to normalized the in normalized primarily expenses which revenues $X.XX AFFO while Finally, basis availability recorded us XXXX, per G&A continue quarter position normally $XX.X $X.X $X.XX was excellent normalized as $X the compared million million XX, beyond. million, opportunities million $X.XX $X $X.X in third AFFO cost third $X.X G&A NOI million of of FFO in in million quarter of the previously portfolio. the $XX.X a current quarter. excludes NOI to joint of the quarter. due $XX.X our per with million quarter million the which we of it performance-based housing discussed. reduction share, $X.XX holders managed totaled in related $XX.X increased basis our of NOI for incurred a and million normalize cash was X.X% non-cash for puts FFO This income third $X.XX COVID-XX-related $XX.X senior were the current million million net billion to strong quarter, and in quarter, compared compared our over increase the an or the management fourth to lowering

in pleased going to current critical well our As consistently S&P. see key Maintain rating our maintaining reported, target reaffirmation priority below us. about leverage we be the outlook is a our component that a recent times have ratings. ratings of We're leverage very negative in from changes as a to to Fitch of X.X continues for as stable, the

our million We the of share, have pandemic stock XXXX. of proceeds decline in under a continued gross To million, quarter, a $XX.XX $XX.X during earnings this managed generating average on this portfolio we ATM price the $X.X end, shares an Program to common issued of million and that and through during manage X.X per of commissions.

the we Additionally, of under sale initial feature forward And agreements. certain Program to the X.X preparation $XX.XX fund ATM net shares investments. utilize foreword remain of in weighted average with price outstanding commissions of an million upcoming the

debt of including Venture debt of Our of the leverage as were our Joint X.XX X.XX we to Enlivant the our have times the from strong and $XXX X.X remained million times, end share ATM XXXX, available excluding and have increased times continued debt. the all of metrics end below JV Program. At target compliance follows. at slightly as year, the under credit of the covenants We with in to our

more Directors debt February a and of of X, XXX%; coverage cash to X%. as charge record values Board of XX. we debt a XX% X.XX on value QX we times, just X.XX Senior share. represents pandemic difficult AFFO declared And payout Housing within paid our secured the earnings, to XXXX XX% is our COVID-XX per coverage future total effects, noted guidance, approximately couple secured of financial XX to of Managed on February share. Our In common XXXX, debt-to-asset release of interest Dividend unencumbered February AFFO, quarterly normalized dividend portfolio. fixed has value it times, a press $X.XX company's assets on stockholders in per after made XX% yesterday, our the our The accurately primarily of and dividend of asset comments issued forecast a our

As a result, our we XXXX. have limited to quarter of guidance the first

$X.XX out to quarter and our spelled XX, include for $X.XX; relief The for funds to attention Manage AFFO our $X.XX share in any March FFO certain to based just few. from are to communities. not the Housing a in do income like I fund The anticipated estimates Senior estimates would diluted XXXX. We bring assumptions provider common supplemental. above key $X.XX $X.XX following expect the amounts $X.XX. on the Net the ended above to

timing While receive and amount to predicting the some we expect difficult. amounts, very meaningful is

to XX.X% unconsolidated portfolio ranges, As the venture we Senior see following part of owned Housing average continued $X.XX%. to joint pressure expect within quarter, Managed in quarterly our the occupancy early and first the we $X.XX to fall wholly XX.X%,

of issue million of million of acquisitions component $XX yield We X.X leverage ATM Program. fund of at the expected expect initial in totaling XXXX. our close XX, We we the Program investments March and In which X.X%. aggregate, expect equity the maintaining as revolver the to cash $XXX a Based EBITDA the with our annualized funding anticipate million under ATM unconsolidated joint venture. match to along approximately equity average to funding would using with $XXX times, goals adjusted meet weighted on investments of include approximately

the off pre-pandemic pandemic. higher X.X XXXX a month EBITDA, the management since In portfolio by annualize EBITDA quarter of been adjusted our and calculation of a a based adjusted passes Finally, This pandemic, by quarter, it out adjusted EBITDA. trailing each the has below reduced managed negatively that be generated will of XX our I'd start point to is average impacted by we like that our EBITDA is replacing of our so leverage March debt our on pandemic. debt-to-annualized order to to dropping important EBITDA quarter are the of month impacted net to times. keep net the XXth with significant target

for of We the first account expect XXXX XX-month trailing quarter equity again lower to during the issue adjusted EBITDA. to additional

this we guidance. on as had this our equity summarize the on To based our XXXX renew QX We expect quarter. has issuance impact

to the million one-year the of We to with will adjusted or of managed the the of as loss XX, EBITDA offset of have issued approximately equity EBITDA XXXX. since $XXX March from compared chilling portfolio our pandemic thus earlier beginning

in note, outsized the a with in per forward. increase we even Q&A. a on I to manage naturally stronger And open the as to we rebound, further to and company very delever will the However, our while to further portfolio that, us for begin up positive trough in and potential growth moved balance expected begin sheet with share in occupancy leverage provide pretty earnings going EBITDA from it fashion and managed will continue

Operator

first Our from Scotiabank. comes question Josh with Brown

open. is line Your

Josh Brown

Hey, thanks.

has going it looks pipeline more will guidance, at and opportunity availability ATM sees under investment acquisition some used some over investment. $XX be So what you Just credit insight program, today? like raise the into QX line could looking million the and for from guys are provide of to million $XXX current you Sabra

and capital you leverage that where levels being just meant remaining raised of keep So kind is delever them? to want

Rick Matros

Yes. raise also But acquisitions be. it our to it we where want of maintain the is to sheet Most pre-funds well. potential as balance

things as match the the below pipeline? for specific to up Talya, our come to in. raise looking slightly an us the we’re want and some leverage at our still sort on If in will an to room you target money to of in that keep both for we opportunity give So, be that’s down and of then have it kinds acquisitions do of go ways. note leverage there’s think to ATM you now going

Talya Nevo-Hacohen

Sure.

will reasonable of have there can senior had prices. time that past at buy looking we their lease because assets housing delayed At spoken at that we’ve out projections you if We’re assets COVID. in this of been the up about the population

to newer And acquire assets so there’s upside to opportunity some them. that an have

what And reasons. a seeing at because of liquidity so various various that’s need we’re for time lot people

we’re and as including earlier, in So little of bit said behavioral seeing Rick that where, opportunities well, we’re a kind seeing other in sectors as nursing. opportunity skilled

Josh Brown

traditional are I acquisitions? other portfolio in challenges Got loss wholly-owned in like occupancy to it. some also the That’s helpful. factoring guys in more Enlivant had and buying looked And then versus QX, up portfolio. occupancy are that portion more the how know you you comparing compared it JV, the some guys just QX

that and underwriting how So NOI with comparing guys are that acquisition you other recovery occupancy opportunities?

Rick Matros

Yes.

one with we’re has So, nothing the the do other, really to in already JV.

to works have something be us be with to economically. that mentioned I in to And opening going just negotiation that’s as remarks, So going a for it’s TPG. my

We’re dilutive not do do going to to to it. just earnings. a to be That’s our deal going

just that others well. and that portfolio how a separate So it’s thing at really know look completely we we

to them place everything We that a all rebound. in other they they operators, from a our of And perspective unlike have have unfortunate team. lot what’s infrastructure the really And an have of confidence for in been national footprint. is,

just getting lifted either. the they couldn’t and another a area every time in with little you catch their geographic better, states break surgeries get any area have that over they’d restrictions, hit one the so a And hadn’t that half so started bit cohort restrictions

on thing mutual separate what your look everything and where at underwrite at answers we it how a the And is their senior up it. works. we’re And on it’s lease sheet with just the just if individual balance When it look we see at, looks basis. opportunities completely NOI like. we So look housing question. then at we’re we current currently That looking at that we

Josh Brown

you. Thank

Operator

you. Thank

Sanabria Markets. Our BMO next question with comes Capital Juan from

line open. Your is

Juan Sanabria

major a and both little a for to could and time. nursing housing, a bit was skilled about seem about to in seniors TPG thanks you to skilled benchmarks be be how back maybe for seniors occupancy But you optimistic pre-COVID I in levels groups. give you those get recovery, some the housing recovery the seem the us talk you they if least bit great. just just two can imply Rick in Good longer at could you think little morning hoping stake for That’d long more Hi. nursing.

Rick Matros

Yes.

it’s but tours help happened pent the restrictions during space of isolation on a and the you So have up close, be feel up Enlivant surge, the easing think probably pre-COVID And those with protocols to senior kinds activities the XXXX, my senior take such and skilled well that on by and being you’re housing of not a has that space, middle should get on real lot to thinking demand particularly same been of can I enough nursing comfortable, skilled the or close that help things. to as their quarter XXXX, we’d back going before demands. Enlivant their of first there. all the able with is the housing bit of because pent the longer the still it including piece. a what and And group dynamics Obviously, portfolio little pretty

if So based. you’ve I the intensely it’s got do it’ll take skill need longer, on think side,

had that We operators number be sicker AL, first. that occupancy And the certainly they’ve as a will to housing pretty because dramatically well. delay people that going up, otherwise also than over tick would’ve picks past seen have then goes years. the their as acuity But have we up they of and hospitals been into senior have, expect

is did, just that by we cohort before, admissions in tenants, we’d Enlivant’s to infection talked the in it’s safety XX% deciding you lower the is take living, because pace It’s be factor and way our think couple it point example, healthier I’d factor out, time. in they’ve which to terms why senior I a So case model going than for rebound. an which back going big be and living job it’s housing coming think And much the independent in we at have just to a And really less perspective. expect at that safety to is ever of of we the this of is like rate X% and more than about need confidence see. a they’re incredible to also based done Holidays, a assisted Holidays. would of X% and going Enlivant from

critical going portfolios statistics our those a help be recover. think perspective and really to I from So are to marketing

Juan Sanabria

Rick. guidance payments? rent in Harold, for the fourth quick Thank from maybe that a you, on first quarter the basis. But just a cash modeling relative question payments assumption few the What’s quarter cash to those tenants

Harold Andrews

should the our And or with It be of vast Yes. majority first quarter a actually uptick cash of those fourth collections two. but two. expecting for for I’m one an pretty consistent all in flow. them, over quarter say I’d fourth the in quarter

up, would So not quarter. my up expectations be slightly fourth dramatically, but slightly over

Juan Sanabria

any do regulators of rooms hesitancy skilled from the pandemic? And nursing of or one kind the last coming to those in view given do with you capacity the back. sense by Rick. away one some What’s you referenced dual just for these lessons maybe on whatnot learned the And

Rick Matros

No.

a of interest beds. I difference think point of three the well, that making. semi rooms had the One, there’s a things between terms beds the in – and and couple private four wards you’re

time, away. actually And to to already see those want over – Massachusetts. want going – what you’re think that's in going see they’re go I states to happened to see

going operator along we'll viable to which about metro to reimbursement that's think So as that happening see forward going we're that those and different to starting to go be also continue in – And a well. of terms the – sort something the to can is of that I what's as business well see forward, and there'll corresponding exacerbate issue markets. there's in think elsewhere so access with changes look

Before the around to somewhere pandemic, of middle projected be the the full industry virus, on decade. was essentially the

had changed exacerbate everything that's think the the what's restrictions. problem, going the that in pandemic, regulators today to about So I in terms concern that happening of vaccine terms but of in easing

have fair in terms mortality dropping time. and cases Talya than it's so facilities a of more you lot so as patients feed We say that but Medicaid of So long numbers under to periods it's still the of nursing vaccine. vaccine, for the when skilled of pointed that also the I think dramatically, quickly, in it's out stay

stay it as think in because number COVID antibody testing You they're it little these of and already facilities but short skilled the we're and and a of aware Medicare, was or lot residents testing there. for about there still it, we've patients senior we're patients far had facilities. in of the and the have got of so the as longer-term because And not first in testing had housing of lot a unaware months, and they've both

combined think dramatic the of those a antibodies why in the with buildup I mortality the we saw existing improvements dropping. case there's with population such is vaccine, a So

point it was more guidelines having been to would certain vaccine restrictions with happened has that CDC were a national the ongoing specifically there or think once percentage one of population just a not I easing have that conversations about quickly. vaccinated. your And

from and it hopefully a within on right were quite discussion, regulatory as to state States more uniform you can different addressed localities. now basis, imagine, different even there it's can so be So state because that

Juan Sanabria

Rick. Thanks,

Operator

Thank you.

Joseph Our next Citi. comes with from question Nick

is open. line Your

Nick Joseph

Thanks.

what Enlivant is the expectations at for timing least decision current a on any timing. in Just wondering of terms

Rick Matros

driving was at would out I I XXX-day next Nick, usually bit arrive months. little guess, TPG going say the you're the of approval. of in the or terms to is the regulatory a process. decision you're several because here because it's deal, And closing a guessing I'm whether in in, we really If then period

Nick Joseph

Thanks, Rick.

values? you like more If broadly, national pre-COVID it you versus housing How think I guess, like for pricing particularly about that. just about do portfolio a think senior

Rick Matros

current conservative transaction here, specific of that so to all to mechanism as yield I looking to used may It's TPG. be other to much in handles if we got that pricing has I built certainly recovered. six be with for think of very of get time the for but don't higher negotiations But exercise possible to a think to gives and know us past the without have out a be there how going portfolio and that over to. But driven got being because Well, and before us as their I everybody its can PEs myself was terms the being we recovery buy more us, few years, than you're that something pocket. NOI it's going in at want into some have have a recover ahead I

Nick Joseph

you. Thank

Operator

Thank you.

Our next question with SMBC. comes from Rich Anderson

is open. line Your

Rich Anderson

Thanks.

out? out? binary it in the in it involve rainbow being how Enlivant, of Could the on third or straightforward? So on or parties? Or pretty What's is is opportunities or Is it a completely there table within is decision?

Rick Matros

to want you Harold, take that?

Harold Andrews

where would decision to going buying to be something, made is deal future. or structure is not some that the Sure, binary of earn-out level to provided Rick. the not that's kind NOI some to you pretty NOI it's today buying, that I is say a you or other say between in but to between couldn't mechanism gap expected the if and bridge will, do of where be

investor that you I kind perspective there's of also things who I bringing knows our and on those the opportunity And us. that might think to table, have another all alongside bridge think else So working just it to land, we it's be in and gap not, be come that from an us where don't something somebody we'll it or to the for structure how let going require price or within. the down to TPG, is and seen can they to on

Rich Anderson

steady wholly-owned of that the outlier number when in below then there for assets recovery you which assets. XX that, reason And more kind XX? ultimately the XX is occupancy why of you a the a state something shouldn't assets Okay. real basis, be is the full positive on than own and/or JV, compare those any occupancy sort JV there owned lot a level, wholly Is the the

Rick Matros

to Talya, that. you take want

Talya Nevo-Hacohen

Sure.

They're coast in small are portfolio a a versus of wholly so to start the I'd all The profile coast. XX changes area. very that country, a big the spread kind across and Delaware, to that and Pennsylvania, East picture. already So it's owned of things from XXX are with couple the of geographic West

thing. first the that's So

much care well, moving lifestyle people spread wholly because fewer a also is length the about the venture. is out COVID affected care. because others in memory is on than more spread building the we But care The at are greater affects far how second harder and a manage that within just also care. to just, memory memory and than there people have owned there much COVID it's joint memory of And sure – thing it in I'm have spoken

that So changed also the bias.

we will has Given performed is loss think owned probably have timeframe. in be where such occupancy. had expected rebound back XX% quite going area terms ago, that the wholly high fact, quite I specific I to – of plus Several a it XX XX in was even because quarters occupancy and at that in that level XX-ish the specific

vaccines, joint think COVID the respect a to the those different in the the there's just cetera, with et going and venture and markets I happening across what's country. – local it's and landscape think I environment, be balance competitive areas and of it's to the

Rick Matros

the where matter JV time, So It's reason was. be back is that not We a it going don't see any result. the Rich; of to it's Rick. it's to end a of matter not

Rich Anderson

Yes.

I like stock now equity quick into cap first raise then ATM the rate if, quarter, first have to see implied the of with for $XXX million the are the around getting equity the to rethink risk but Harold, of table. quarter? And quick God kind kind the so. deliberating, in Okay. in take an of that XX-ish off happens of that or interest capture I'm and you, that you pricing, to be And your of you're comfortable forbid component the for you story for get and stock the disruption What some and

Harold Andrews

our into We've it We'll Rick it sense our when us, but in get point I that. But cushion. makes do intent it for we to metrics. got cushion than have leverage is would do out

deal it a going it on big where our like sketch and it that, and relative we to We're But get to little bit it's going not done get do there So of Also keep we're of keep while than Then to a portfolio we a mind range can be performance it. we see can that quickly that in to behind and we'd at want managed S&P. right we're to can. improve as the as pathway because quickly EBITDA as temper we well. might performance starts and be thinking we today. to the in pick-up to monitor more

Rich Anderson

everyone. perfect. Okay. That's Thanks

Rick Matros

Rich. Thanks

Operator

Valiquette is from Steven Barclays. question Next with

line open. Your is

Steven Valiquette

just Hello, Thanks. COVID in the Great. everyone. question on Maybe for the just nursing skilled Rick, setting. here a

percent Do these nothing picture. you that a early where did So the quantitatively patients are can to at just just post bit help if provide you COVID mean, mention your us care and treat to that to on either COVID guys little SNF in are know, percent well. patients SNF's be around I'm just what big setting, acute a XXXX? the do notion actually frame I in treat or isolating do color in I the net in the more this to presumably basis discharging better other settings? of as COVID to qualitative seeking all versus SNF's want of COVID drop patients want roughly they with portfolio actively patients the SNF what patients dramatic guess positive some generally curious you should in the SNF in maybe

Rick Matros

Yes.

It's nothing COVID just units like and and up very set I definitely small trying few with that. pursuing do XX%. it's than that a patients percentage want not relatively So actively higher would are things that to we say But to operators have it.

folks of partners. it I And are hopefully hospitals of just time the hitting care assumption also business. piece And from prevent bit a depend from them to by of just was going little percentage overall those a only COVID in with particular because but longer-term that markets lot And out facility for occupancy out that are goals think working small It's that So hospital and the actively time, of partners. – the driven that's may a to that to majority of patients. it's the seeking of comfortable with – actively seeking that always basis, configuration with their operators taking do just have on it's requirements. under a not you the isolation on along

Steven Valiquette

Okay.

Okay. definitely Thanks. helpful. That's color. extra the Appreciate

Operator

you. Thank

Lukas Hartwich comes Our Street. with next from Green question

is open. line Your

Lukas Hartwich

on pipeline. the Thanks. of in I'm acquisition just are kind or distributed? any markets those they curious Are concentrated

Rick Matros

Yes. the place? All over

Lukas Hartwich

the of of those X stuff. just Okay. are curious; coverage NOI in And number total that. I'm reflected on your Page of or metrics? I metrics in know the do unstabilized that's then percentage a rough you coverage rent assets not have not

Rick Matros

It's than it's from Yes. XX%. figures. less maybe excluded Its non-stabilized, those

Lukas Hartwich

of hospitals Is for unique me quarters. what's one that there the at last that? nice And specialty like driving kind driving uptake issues curious, is a looks is over last COVID then Okay. properties? the few taking occupancy's I'm related or it anything just the just

Rick Matros

children's really driving got little the a COVID and have there's of a nothing COVID. assets down behavioral always there. relatively there's got They fluctuation we've bit – in different now assets it. seen we've we've very and by No, lot those They're dynamic with up and unaffected that populations hospital

different driven behavioral there's of its so the by And facilities. couple lot but things, a of a

it's So population that the just so... unaffected, dynamic

Lukas Hartwich

for you. Thank it Great. me. That's

Operator

Thank you.

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

is Your open. line

Joshua Dennerlein

when the looks just something maybe you kind I'm of selling guys to Enlivant TPG JV. stake that curious of? guys, on Hey thought you exit. Have your considered Yes. also Is

Rick Matros

drag we've control looked obviously us take have of interests so our have I cell. with it. they part can the over mean, selling They and more before. I along at rights

see don’t a here? You is that potential outcome being

Joshua Dennerlein

Okay.

Rick Matros

at that ago took decade TPG of potential fall it early you December seems other a partners now, in like JV not nothing but a Josh, of and may XXXX, to recall, because we really that. out came take really look

So we a back. it and pursued actually while thought about it

Joshua Dennerlein

Okay.

trading on and you just stake it will maybe side, and there wasn't worked. seem your I thought it like good shop So about it's past guys hasn't again. don't sure if in I the know, like don't accretive selling maybe okay... potentially the pricing, is pretty you but

Rick Matros

you – With that them this TPG see but able somebody interest and sells they to... our out and not at this yes, be then how have, buy can't is just

Joshua Dennerlein

take whole if, portfolio, TPG of stake? Like getting it maybe easier instead thought I would could someone a if like like Well, someone just be the right?

Rick Matros

would company it Well, so as And it's in weren't to because that isn't a necessarily just matter complicated. TPG table of OpCo; management a a lot to has the JV well. a whole new or you just interested expect portfolio come a is the the of parties problem

Joshua Dennerlein

of senior wanted your I of recovery about some sorry so to just, like your, I'm the get your I'm of quickly the pursue? guess to the then sense levels. the of that to what Like for earlier housing And that draw What was you would occupancy levels a back mentioned it, just pre-COVID on trough I was the that not pre-COVID timing, to you kind the occupancy? thought they recovery missed comes like to level, but trying find expectation kind Okay. comments if much how I get

Rick Matros

I we're housing the to think close of senior on allowed. roll bottom primarily vaccine now, because

just going stayed we be started we had what think where much should pretty flat and seen picking you we skill I March, set. bottom on some time we've So have side to up. just period similar should of had the a into We've before maybe

obviously relatively that's we're should vaccine living on the do now, and of to So, the of or the month but we maybe I'm independent April right seeing than in better like same are we start some pattern follow feels it impact pickups things because guessing side. worse somewhat anybody no March of the the kind I'm excluding out what flat housing that skilled senior see in roll that think else's,

Joshua Dennerlein

Okay.

the big steady Okay. summer And kind kind a think you like do a see you that seasonal higher it's the of in marks surge do or of dynamic?

Rick Matros

of a more it's march. think steady I

because little quickly drop just as skilled, than facilities. well. admitted senior that a I get think think the nature picks more picks-up I housing skills skilled more to more up bit individuals of But skilled of quickly now the

of many shape because of are in now And so worse delays. them the

there and for some acuity and choice and model in is reason, living who well, assisted based on you've high that got – how got think still operator a is. even I is needs though the there the So you've as depending

it's So march housing. of more yes, senior I steady on a think

Joshua Dennerlein

Thanks Okay. that. Appreciate guys.

Operator

the Thank hand Matros I remarks. concludes to now session. for call like question-and-answer over you. the This back to Rick closing will

Rick Matros

joining questions Thank to the appreciate up If as went We have some were much start provide to available some end detail all after that in past offline or us for hanging you possible. this. bit we're shorten in know it a today. We'll our as front I just additional modeling there you conversations. best else or long. I QX, as everybody do anything all there, moving and want we follow-up to mind. have your little

very a much. Thanks great have day. So

Operator

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

disconnect. You may now