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LTC Properties (LTC)

Participants
Wendy Simpson Chairman & CEO
Pam Kessler Co-President & CFO
Clint Malin Co-President & CIO
Mark Parkinson President & CEO, ACHA
Juan Sanabria BMO Capital Markets
Jordan Sadler KeyBanc
Michael Carroll RBC Capital Markets
Daniel Bernstein Capital One
Omotayo Okusanya Mizuho
Call transcript
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Operator

Good day and welcome to the LTC Properties' Third Quarter 2020 Conference Call. After today's presentation will be an opportunity to ask questions. [Operator Instructions].

Before management begin this presentation, please know that today's comments including the question-and-answer session may include forward looking statements, subject to risk and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in LTC Properties filings for the Securities and Exchange Commission's from the time to time, including the company's most recent 10-K, dated December 31, 2019. obligation reflect or after the of presentation. no looking these the undertaking the to statements events is to update revise forward date LTC and circumstances is Please being this event note recorded. the now would to like turn I conference to Wendy over Simpson.

Wendy Simpson

morning, operator. LTC's XXXX Welcome you, conference Thank everyone. quarter call. to good And third

also industry our government our specifically American and how Joining and I'm responding Officer. Chief the Kessler, Chief have discuss Parkinson Officer; to the to crisis, to Co-President we us space. with from housing Mark COVID-XX is as today Care the the me Pam and Financial Association Health seniors Investment excited and nursing skilled are Clint Co-President that CARES support relates it Act and Malin, in

ALG a patient and several one like season. you face come spend time areas winter some resurgence dishwashing I well her visitation, want course. for patients, Senior at eased operating for by and close at Florida the in for communities. senior cases about could Mary all so story Before part-time of governor is husband visit quarter ties Mary. that visit took professional for know Deerwood, extraordinary to faced we over She across country. again media with and and their to husband last to during her restriction. not the job I care there employees us amidst of as nation the you best. the as begin all We they The responses the repeating their as her advocating have more they active the to not related and at about Alzheimer's a RoseCastle, enter will their their to keep restrictions community but has consistent trying to with been of thank would wife as ones. nothing meaningful proper of decrease pandemic. protocols which many valiantly also the completed partners career on loved adhering my update be And continues residents to months. and an operated the now we Mary families to we wish see told that will recently safety last be quickly efforts experience safe are I dishwashing COVID review, has she can to housings bears maintained Steve COVID-XX of in visitation of the challenges Unfortunately, find ways of our Mary It cases Because awe months the flu speaking in business positively who we Mary the could RoseCastle around Daniel, our

many in cases. fact, regions spikes seeing new states are In and

restrictions to able been easing several have however, the states, they Some curve, pertain housing flatten as to senior with care. and

to industry believe manage cost of of face tools our staffing, we continuing challenges supplies, provide partners a understanding related to to in and continues how better have support COVID. LTC our needed. While operating and better where are to world now the is much testing I

from Mandi of and President and infection rolling buildings LTC's in Executive our Development, Vice Doug operators Managing program assist Relations, for control Director upgrading in Business conceived was to This we're the Korey out Marketing Hogan. example, which initiative For by their desire new President protocols. process of Design, Smart Vice Investor and state the of called art a our comes

in Avenue same with our bandwidth. may customized partnering With resources country have biggest operators and operators in assist we the the Development on don't options. operators take are often such of have on mind, retrofitting to own, with smaller some projects turnkey that their the While regional to the

devices, sanitation Design Smart of will UV touchless equipments dividers be custom responsible bipolar filtration, ionization, the others. features for Some retrofitting. and include among Avenue air including

leases into will program While a partners of by implementation credit rates with work finance the to our LTC line providing flexible attractive of and current terms. with

the us by the helping the well relief assets. While time industry. benefits we catalyst long program, initiatives more portfolio government term serve Mark going the will to for over believe ensure safer, our about includes is talking for spend COVID his was updated our and

help point just They pay private lobbying receiving along briefly. released aid. So with effort, government will additional also continue to I'll industry. cover $XX funds lost testing comment vital to skilled billion its from government recently, detail. support in healthcare operators an the the has more CARES equipment insight Mark Phase to are of Government government. provide After for in be will receive which revenue now considerable earmarked providers. of greater operators care Act, includes and nursing Most a been X our

nearly the include to not did discussion, Moving which $XX some of preferred Clint now in in more new additional been in and of expected fourth resulted finance opportunities funded, the provide LTC-specific be has significant quarter. which Pam committing and to the focus quarter on while million already us our funded remainder details. equity, structured investments is will

the thinking market restrictions the built provide space The look reputation but visits create a targets facilities operating when are financing solutions bring surges starting virus I with up well to partners grow we fall the help and to lifted. outside and, has business. ramping restored that their as believe or to to care and serve to a the as country, box to with LTC challenging, forward our the financing regarding our that, loosen are cognizant We strong remains creative as the The reputation partner the the are constraints. parts of that potential of need restrictions REIT of care in engagement housing winter additional fact and safe will of long -- they in firmly term. by seniors Although some with that could acquisition over

in collected and third Senior which we abatements, deferrals a rent I'll excluding XX% rent quarter to moment. of Moving discuss Lifestyle

was the recognize to rent abatements and quarter The that private straight-line Third my Genesis to I rent. to were XX%. Subsequent operators. requirement second collected pay believe deferrals I GAAP they results, rent to on dislike our has reported they quarter reporting had rents write-off have mentioned granted rent to concern lease. Genesis a rent quarter's LTC and any this report had current with deferrals. the us Still, not have going straight-line reduction a is issue. for requested in revenue this related of

reluctant receiving for there top support, to in rents challenging to may impacted not requested ten, fear rent those been by go-to in performed that Another and and short COVID-XX quarter financial operator, Despite has properties, use a been government paying operator well began a for government third funds payback the deferrals. has historically has be pay actually operator and this is who our provision. adversely

a As and basis we them their the put wrote off balance. straight-line on result, cash

facility Additionally, an record damaged required attention $XXX,XXX. This had and in support agreed plaintiffs' drawn realization of one Florida reserve by was certain to of of assisted-living the storms. us a of in to Florida this that recent close closure operator, we attorneys, the

on Lifestyle GAAP. contractual We recover Senior to we have I'll obligation will the me forward. update my is a not not I rents released belief deferred going portfolio. tells operator of eventually And but our provide now Pam quick rent, and rents pay our the believe contractual

a last that trending rent rent May time remains payments. quarter, the I shortfall arrears. are and in placed up payments Since a due Lifestyle portfolio As mentioned recent while to we June basis in on Senior cash

are received changes buildings, $X.X or Senior Lifestyle third In we obligation the us million XX which September of $X.X portfolio, the an actively XXXX third their million. operators, of with month of $X.X $X.X which contractual Lifestyle's Senior At may of against contractual to hold. of payments pursuing the million. retaining our new $X.X cooperation bringing by of few rent is Lifestyle, the we rent, LTC approximately million approximately owed properties. working October, of we make recorded to some For include approximately quarter, of Lifestyle property in Senior Senior In letter XX, sales against rent a statements to rent approximately million the which $X.X for received obligation and million for in in financial second rent and is we quarterly undrawn covered credit of quarter

for with parties the We quarter majority are of currently several XXXX. have in of in first the portfolio and the resolution to expect negotiations

previously, this some operators, portfolio regional discussed provides whom we be different have of the several amongst we relationships LTC to As transitioning build LTC with relationship. an new opportunity with will whom to existing others and

With further a COVID one result, respect to of key As portfolio time at providing are to ongoing focuses. this strategic we it guidance, related not will we uncertainties. due our reduce concentration,

the I'll to Now call turn Pam. over

Pam Kessler

a two $X.X that Wendy its leases to there primarily million XX, million Total Thank most disclosed concern. with about discussed, compared ability XXXX. result Genesis rent continue $X.X cash September of a was transitioning Revenue doubt from you, accounting last XX-Q, resulting substantial contractual basis Wendy. that as write-off the as LTC collect going year's third to its Genesis. quarter, due all from of continues in recent to decreased

does maintain collectability required accrual from regarding to the level the meet of basis. of certainty rent lease through the future not However, Genesis maturity an it threshold on

XXXX contractual The third the quarter balance. straight-line their rent COVID-XX its and pay for did due other rent not wrote-off of we full operator to

operator During the totaling the abatements support and XXX,XXX. with this quarter, deferrals provided of form rent in we

in Interest of income to a collectability total increases development this maturity rent acquisitions property to $XXX,XXX certainty does contributed meet income of Decreased pay Genesis, future As threshold rent Anthem. the portfolio rent the required outstanding the property of and also Lifestyle decreased to by the $XXX,XXX that revenue funding tax an expansion and XQ related from senior Care of increases second with not our lease interest from preferred mezzanine of in quarter. to from reduction ventures loan a for and of a the contractual with decreased abated repayment decreased from and deferred in reductions investments the notes the quarter as rent million maintain offset sales payments completed due it of of increases, higher equity due from Care to sale line $XXX,XXX projects. Offsetting miscellaneous acquisitions rates venture resulting Preferred Senior and and year, affiliate to by unsecured Senior an partial our on occurred as to expense our due and and expense third revenue. projects, due $XXX rent, outstanding mortgage credit Lifestyle, lower and to Interest completed joint of were the an lower Property balances sale $XXX,XXX the from Interest XXXX, in in income. other regarding well partially Preferred in offset loan the $XXX,XXX Lifestyle, lower level Senior basis. in accrual portfolio, XXXX. decline in as rent down accounted to these a of Income increased a projects. joint decreased reduction renovation venture of the XQ the this through related mezzanine operator's loans which under unconsolidated due earlier dissolution development tax in joint

property During assisted-living we charge related the quarter, in impairment recorded closed Florida. to third the $XXX,XXX

$XXX,XXX FFO contributed last I Care XXXX $X.XX million We from and share and year's charge, interest $X.XX tax rent and the increases and deferred increases, completed that to unabated XXXX. to in available FFO in third period resulted the with gain last excluding projects, third and we decreased rent was deferred to ventures from and excluding the quarter in last non-recurring related joint the expense. this The $X.XX with decrease FFO in joint the on of year, compared quarter Lifestyle, unconsolidated and also proceeds the income lower XXXX to million, acquisition in related $X third $X.XX $X.X quarter rent year. third property this first year's Funds compared common for from proceeds. and and of million Net discussed gain a insurance of the for abated received the the increase diluted income lower diluted lower non-recurring reduced expense, Anthems' excluding non-recurring insurance due in share gain rent, roof ventures straight-line quarter from NAREIT Lifestyle write-offs fully Senior partially property decreased for offsets also quarter. a $XX $XXX,XXX for in insurance Deferred already rent, available to for was items and the lower rent, current by for income items sold fully distribution Senior rents impairment the sales, unconsolidated offset lower for an decline. to Preferred quarter Lifestyle Senior third from and property development The revenues rent primarily quarter decreased due the contractual abated discussed proceeds interest $X.XX included damage due sale from to earlier. shareholders

an preferred third During year investment to four the we and XX% an of rate investment IRR X% in IRR equity This drops and invested X% increasing community. timing as assisted-living depending achieving reaches X% million After venture. and with of care rate develop initial until X% quarter, joint cash for IRR, The $X.X of X%. an own to unconsolidated XX% the redemption. an ranging is between earns the cash to memory accounted on an the

assisted-living into We $XX invest equity independent preferred entered a and an million to also own develop and agreement to community.

discuss venture. capital third $X.X the we IRR common an an initial are greater of detail on for also met, This these million transactions to pay unconsolidated rate the is $X.X $XX.X loans for We dividends. investment as projects X. and deadline quarter, in own, under X% in also earn It is development XX%. funded of December expect in an fund certain mortgage and joint will cash accounted Clint and In investment shortly. which properties after this we improvement conditions will million million

quarter, completed costs remaining the We in properties and the in received We the center in an of million. partial XXXX our mezzanine of funding million project have nursing in the remaining development budget escalating third by fourth our yield currently of quarter million $X.X At related annually was the four Michigan. September renovations by Missouri $XX.X expansions XX, X.XX% we XX-bed $X.X is We commitments on pay skilled million quarter. During X%. in outstanding loans the XXXX under initial cash. $X.X investment related to in down million to The anticipate $X.X of loan. mortgage had under

available ATM and We of $XXX more under under approximately million than LTC million $XXX $XXX credit our also providing of million. had liquidity line program, our ample with

debt value remains profile our projected maturity net cash favorably have third XXXX and free has long-term and XX%. to economic debt fallout on real to over compared estate resulted next debt for our metrics risk, our flow X.X annualized charge The the long healthcare At debt estate maturities future to end the of REIT to of we of with long-term adjusted Our times, XX.X%. moderate helping real EBITDA debt leverage X.X of well-matched quarter, years. a an in effect COVID-XX target times, the annualized significant the fixed coverage industry markets to to our of the adjusted credit the metric enterprise ratio refinancing five of than capital no from enterprise average being higher term

we comfortably below abatement. times still annualize finish However, of discussion I'll of at debt for target deferrals estate brief to X.X our with real and are my net times. EBITDA five a comments adjusted rent below

related rent we of not rent. abatement collected mentioned, to related rent Lifestyle. quarter $XXX,XXX and related $X.X from million $XXX,XXX to As rent Wendy rent XX% Senior to delinquent Of collected third the deferrals

and and XXXX, rent rent totaled in of of deferrals abatements the quarters $XXX,XXX abatements were rent or deferrals delinquent period. contractual million deferred second approximately was October, $XXX,XXX $X.X net In third for the $XXX,XXX, of rent repayments were During $XXX,XXX. and rent X.X%

deferred repayments we in rent October. Additionally, of received $XX,XXX

XX months. to agreements generally to paid six within As rent deferral a require rent the be reminder, deferred our

over like I'd Now to Clint. to turn things

Clint Malin

two investment Pam. like today start Thanks, our nearly $XX I'd recent to with million. totaling commitments

represents with preferred Arlington, in past. being completion million LTC's mentioned, project complete, at in conjunction assisted-living care Development, in for Point with XX five cost. successfully When in Fields, an million unit Fields Magnolia Washington. have Washington, in Fields community invested with estimated Oregon Pam first Senior we by developed XX.X% have investment approximately one Seattle. developed community, and both two the total will worked is in of memory quarter the by $XX.X two will the of RJ of the operate entity which currently a is $X.X California, LTC and XXXX. as we and whom scheduled of Living that investments Smokey First, in Place we in suburb equity owned

The and an approximately second of and Pam independent will on one preferred in Located of XX.X% Vancouver, Salmon represents XXX-units ability capital At is have equity transaction in we have In University in living and completion, assisted-living with LTC community Washington million equity Texas deploying preferred initial is LTC's commitment market. total a discussed. our Village Koelsch $XX project the our Creek the partner. operate by RJ will deals scheduled in $XXX.X of Koelsch, being total Koelsch Development. XXXX. Communities, is Koelsch the also million investment of projects, current developed Fields successfully this Koelsch these environment, with the which current with with operating currently is cost. by structured the completion working community, for and investments estimated two in transact Washington. three finance efforts focused to end demonstrate

identify to to shorter we continuing loans. opportunities, believe additional what and duration bridge this loans, loans, be In including are their returns. tranche and We unit like environment, risk-adjusted mezzanine investment better we

Moving to our now projects. developed

venture XX%. for Fields Weatherly in putting At October joint infection occupancy Senior Medford, with September XX, place. after in Living residents Oregon, Court began control project in Our was accepting protocols

in As assisted-living It care XXXX. the reminder, is Inn, this memory to independent adjacent community Weatherly an a joint and living units. XX community venture includes acquired

October developed and is Our and Independence, area in Resorts licensure of skilled a we are XX, by City operated that early for was Kansas centers This nursing Ignite occupancy is own with in received project patients welcoming At Resorts property XX-bed Ignite Missouri, Medical began XX%. Springs two Medical Ignite. one Blue October.

some have providing are portfolio in of support XXXX. for three additional provide numbers, through the visibility the are we to pay whom we deferrals I There from November either getting quarter our rent to private or abatements. operators committed into like first Before portfolio rent

One first year. $XXX,XXX these of months totaling the we next rent or two and $XXX,XXX operators, quarter $XXX,XXX have of December deferred provided of in in

For the of have December November XX% in rent. the per which we and contractual second, provided of amount rent month, abated is $XXX,XXX for

needed, operator rent month. as $XXX,XXX was March approximately to to The obligation rent is third the flow operator's subject provided per defer ability cash This through XX.

lease compared operators were the elongated, negatively portfolio These will We pre-COVID, pandemic that these to progress making the pandemic but remain Some up a operations. path impacted our especially believe in timetables. when begin. properties were buildings stabilization with the with pre-COVID before

new through money the pay, that repayments Fund, efforts more Relief available Provider given could deferred as is government outstanding include Additionally, made of private relief we see rent.

Next, I'll numbers. discuss our portfolio

stimulus and and challenging EBITDAR funds environment indicator shortly. X.XX created, Given trends as time. for don't X% of statements. on future P&L EBITDARM their And same Due the pandemic has times we X.XX the coverage our the using fee to operators which these funds this are times allocate trailing a discuss performance it a is to focused at we are management and coverage These no was without believe good portfolio. with I'll and XX-month metrics respectively assisted-living occupancy

assisted-living times. X.XX X.XX to Senior our times would and and Excluding coverages EBITDARM increase Lifestyle from portfolio, EBITDAR

to XX. on like operators, our occupancy those payments EBITDAR as times and stimulus our available in nursing to portfolio through of funds. skilled X.XX reported portfolio, was respectively. made provider PPP fund the EBITDARM of For X.XX EBITDARM trends X.XX allocated which I'd and coverage excluding and stimulus specifically now excluded, some times you and times us was are If update payment by coverage October relief our and times X.XX but is including respectively, distribution EBITDAR

the And partners the our that occupancy private as As to provided the for portfolio, is our Because data our for paid we pay XX% XX% the October specifically. have occupancy a of a voluntary portfolio, average on information our and for expedited includes private of before total reminder, beds. date closed, basis skilled are of is approximately month-to-date. units and nursing month providing our is approximately us skilled

data. XX, we at same XX% and the XXXX at For June and context, sharing October October was for June information occupancy occupancy Private XX, as about XXXX XX% September XX. comparative September for also XX, XX, population XX% are additional the used pay of

those for standard is and skilled relationships and same the can actively For investments criteria. to period were respectively continuing to more when so XX%, XX%, XX%. return the and average acquisition nursing right development time occupancy underwriting time our investments meet monthly and operator when that We're our enhance build we

growth-oriented We has changed. creating that partnerships been companies strong and have operating always interested regional in with enhancing not and

when actively remaining With we are the market deals. in we opportunities sure source those themselves, but not will new confident are to constrained, present ability LTC's

to a by one-off ability Our deals smaller advantage. operators' providing solutions our competitive to is flexible changing needs complete

will LTC and as strategically as capital and ready our soon to practicable be for We beneficial shareholders. deploy for

closing Now, back her I'll call turn the comments. Wendy for to

Wendy Simpson

in portfolio Despite of continue the a the within and Thank write-offs so experienced XXXX, throughout far we you, signs to Clint. have whole. Pam and we industry our as see progress

Again, remain to learned they to a allows their safe gratitude during on want to and express while and the their team thanks still virtual also patients, without a families LTC workplace the transitioned visitation a our senior that missing which I has seamlessly employees done several continue and to to I operators of to my do. the and and have growing. all is care staff. aging focusing owe the last expand constant a for their families years residents, and of and their to understand that will not to is months, Our they have believe our relative duties safely beat change population responsibilities required need care LTC. work the is come. care will admissions to The operators, we for hard lot steps This all new accept sincere for

of investments there as normalcy, to As look sense and President new currently is our Mark Care today's generate more Parkinson time opportunities welcome call. Health American and providers. Kansas. AHCA quality differently. part frail honored for has when post-acute CEO large the the in the REIT has of Marl's we needed and, association With Americans Mark. Welcome, path aid. done elderly importantly, I was greater career, played and our long-term government LTC's our largest the a secure of I'm in to nation's is services Mark am confident to portfolio for State build to that, the a for diversification ability forward of further much the care the long in Mark of Earlier of care long-term and After will and lobbying and lines for advocated Association, we esteemed open his the COVID-XX presentation, the governor to questions.

Mark Parkinson

operated I DC and and situation, most and whole eight assisted-living very ago, comments the Thanks, Wendy. I for appreciate opportunity is largest long-term wife the about the sector XX,XXX headed some I'm to some both COVID facilities is to in the future. of of this clinical and the it And business built, background, in the By Health was background, I country. the ever and which the nursing make happy country my significant President the the that I'm nursing facilities, challenge At make facilities the and presented faced. across both care most challenge assisted-living We American professional of and represent Care way response outset, in in Association skilled in buildings. the my CEO the XXXX then clear, comments where almost my the XX% had general. developed, them that months and see Center sector trade Assisted-Living, background crisis owned about Midwest. to the significant National association COVID skilled political that And the the another addition

there of side, But thousands and we and keep to questions spreading side, just collapse while facilities, impact business enormous killed been been about facilities perspective residents the we before. the many business that knew for those that faced to last on and business I'll talk business of residents were full business living a never our is census allowed unanswered occurred buildings, system occur. filled side, few of the side, census soon what response. affected, the the all There our Would world part completely process on congressional side, where part, most enormous both how many and on that going multiple assistance XX% over challenge. a devastating from get? as clearly of fend system flee to or unanswered saw the And literally a to state gaps the months Would clinical in of hands it from it long-term would the both here continue. cases of to did also then the all and in months, certainly the virus become had we who XX% held a people, now questions investors parts favorable. a knew and were receive side eight has as in themselves, challenge that is is, markets as eight not were questions later the the forced our were There it March. has incident And system faced infected April, that this would the we again, regulatory unlike across the we funding flee know for literally business of betting and have bumpy, the care the that never together. no. clinical didn't clearly on for this entire in quite there, in allowed the And disease most about certainly the them the of for collapse, collapse? we the to has bad a bumpy providers going, situation business the this from have And the those faced But would questions Yes, have times the was to the country, some long-term the answer March employees trading Kirkland been together, level were many needed answers in to the minutes. happened employees care federal hundreds On were that side as that has what facilities residents challenges. an and There the back held has collapse, of although we about were and sector side a buildings? did that the that the started flee would be we The we or

today going what going think be about talk may I'm I you is to So I'm in. three different interested to talk areas about that

and about I'm right nursing has skilled DC First, response it to talk put sector where on side now. the the going the

on getting Secondly, future thing then to to the about finally, I'm talk the about talk And about let's assisted-living into nursing skilled headed. where whole of what where election for is things look and this XXXX all stands. response I'm side. DC going like on talk upcoming side and do assisted-living Well, for the post first going months the

I skilled The report what not occur. would probably think Early help good. the most was people all material. has really really nursing the surpassed but would side, there, federal on on the be at level the thought response

incurred feds just those of government of really get thing way of lifting a occurred the FMAP the away years when, the calendar of not to DC material a additional a money happen, that sequester, the this the saying but facilities, Some which second that to the is in things be would material states are the through and the a or taken Medicaid. help year, was is a X% The that some X% was end kind giving match, the for a pandemic cut states more in year for normal eight of and providers about that money deal, act, was number. started stimulus through federal close cut in all example, that next That to so provided X% year, ago. big Medicaid

material there no discretion in and provided some those states, states, funds. amounts facilities, in how that given at were of the states there the some all. of funds on to nursing spend skilled those were to were Now, And help was

So help the been and states it FMAP whether large some has a very in is dependent help. and Jersey, in provided. New state little Florida, in. and But New like Texas, been states the the and there's completely that was like increase upon California, there Medicaid helped very facility York increase Unfortunately

on dependent a was and So they're Medicaid question, state is whether business-by-business not in. the that type much the or increase completely helpful it's very

you emergency is think If And the public it. the it's you're if It expire declared long extended public to extremely it emergency. on January public California, to is continue HHS. FMAP of They actually October declare in that public the Secretary health of now is to only quarter health days to emergency Secretary is increase It get Azar authority the tied set FMAP in the time. helpful. tied by this to fortunately, at XX, as it's health to will the were able that, for health emergency know when I as to the for increase in XX you're we It extend to but the end effect. The was And XX. have important HHS is a ends. Texas,

health can that quarter on increase changes then this began received are some there that things means rate is yet material made least were another and means After three-day until increase into stay then than January in was One very next that people was quite We second and with for out become there things, at The waived XX, resident. stay health to were CMS has public them skill the and will payments, sector. confident extended PDPM. requirement for example, important finalized, three no on We're giving that we would of us another received we're the extremely XXXX. the you're which that get able PDPM been occurred to on emergency the end have the folks hospital. that has providers more a a diagnosed may for X allowed hospital Medicare probably rules, to there's occur to going sending X.X% pretty been future. the if, So January CMS been pandemic all discharged of rule again the COVID. which in those payment. the that and without Under stay coming looking fact PDPM the to lot not sure to a the recall, to well you the order about which they Medicare first a I'm that a thing hope person waived providers been that a news before important -- that days quarter. occurred that's but into as requirement Medicare Medicare necessary get as and a It's facility aware, And ends May FMAP two as continue has until to to extension April, adjusted. of in the of FMAP through the to increase normal public the that skill be was a resident three-day increase the in emergency now

to to they've had ability into for their to it's decline had general stay That And waiver is skill have the them population, that rate, a the emergency. them census in though above also a three-day residents to skill had able even to Medicare health done tied the keep is to send under water. they haven't they've what Medicaid providers heads been hospital because Medicare many in their rate. public We a

January So got we we help that are the when about I January sector. want have to XX, extended as approach that an XX talk days things the we April final to optimistic we XX get will been got most be to also XXXX. extended XX, material to that we extended waiver another the to two three-day able stay The and to

in in solves all a have. advance your a Medicare The people March cash first this a April. Medicare having Suddenly It's by payment. with provider that of provider Medicare That advanced virtually any solved to receive and and took lot providers decision HHS authority skilled would a a and any is payments. have cash bank, months amount allow three nursing of to the the to of immediately heck money advantage of Medicare CMS problems. the provide on of their three-month provider every problem material to HHS

that this few this is have XXXX, grant, normal would of this challenge the ago. Now, in is August a rules, start been had repaid being months under a not loan. And a it's the

does shouldn't flow to there cash and of multiple billion to been a to the skilled able discussed come. money, the the the it's delay actually the the we specific Congress we were Congress have of of that's providers, possibility also been of had most success $XXX so start we bill believe the repayment favorable the April made able receive that comes that most providers CARES repayment skilled were part we grant to that and other subsequent was facilities repayment now normally have the pretty on even those fund will advance continue be further have to Act been just for that issues That area are not should that lobbying notably that achieved. does funds. so Those get funds. would start, be it we of over We really that's money is of totaling then who for back hospitals, nursing we on for when and have we Act wasn't a be able been solved there widely any funding. stimulus rounds lot the of that until more And facilities, And first hospital that believe those to repayment success extended Fortunately, convince XXXX experienced now the to it that The CARES billion, help basis. and get significant out called subsequently is lobbying time, that nursing for had most payments of all hospitals, has waiving And Congress Medicare pathway the the out $XX we've helpful, been over final issue. but victory very has this of just the for providers. the of not a hard on when

all collapsed. that believe that add to wrong. up things COVID FMAP for over of sector that waiver, were buildings. was that skilled those going in the are April of would does successful money, payments have and billion to it's the particularly stay up who Monday is be mean? facilities, week, all the good fact, add additional keeping you out will funding, these sequester thought relief March you in to it most the the in for on billion out It providers has What And their the are it CARES Well, not been and providers there's nursing sector. cash or to Medicaid pandemic. Next as the skilled Act example, occurred of When of that back payment X-day in first the $X whether being nursing been means prior disappear that $XX in the that we paid it as have position

cash have XXXX they're think, overwhelming in comfortable can a for number vaccine pretty think the position that be good they're add I a in census can that XXXX the all up providers and to get and into when I if that of you going rebound things we early of pretty heading that occurred, okay. feel,

that profile providers, Now, those a there -- are them often categories hit is at and group two those. it's visible the minority, are still of that fall it for a they -- who into basic is a unfortunately [indiscernible] of and number sometimes a

particularly struggling struggling is They pandemic, And the were case last at loss financially eight that which secondly, the highly the mortality was exacerbated hit to particularly were were They that into rates of companies that experienced by when are was than time the very first it leveraged. those over coming The of no virtually folks to average greater XX% their coming probably on a happened COVID so. into facilities and virtually high, a northeast, are the appears or no the be PPE, the providers be in had pandemic early this national were there hard testing, months. problem struggling.

to February, highly of some out continuing the hear don't are year, the can the of sector going you are and think the that this there, can census the of sector. a it make in and And to belief get majority through vaccinated January representative we'll its that I of vast about that is by is vaccine And and some this. are folks visible, of so folks struggle, we end part will if my rebound, get but them overwhelming

success lobbying been kind secondly of nursing. will road. not Let's achieve recently have that the I some assisted-living that and news not by is we talk have breakthroughs able be for the been about to for what now there do The that assisted-living. down skilled more there's that good. is we as I mean think successes important And

heck needs and like in should or I the well, it's not because HHS think not that a pay just not assisted-living believe don't don't they has. private be assisted-living that the lot really assisted-living none much to wonder, doesn't doesn't funding because have have think to received has of why that skilled the folks it's philosophically nursing have, reimbursed, know people that government assisted-living that live things the provides funds and very problems doesn't certainly is those nursing doesn't of homes assisted-living, in about that regulate down regulate same doesn't federal it's that. no it of kind federal assisted-living. HHS What it people all. comes And at

assignment what to was that with, working billion started So when the which and being assisted-living. pass given did ended with in working it out groups not providers HHS include used up funds, the to the it $XXX was

a they don't were able don't They they well, payments, as And they some then Medicare us, say. to. told us let convince policymakers and are. well. get well, assisted-living made companies door we they and any to hey, assisted-living to we these saying, make hey, who initial successful. help providers and then say, to the the we'll problem. assisted-living know pounding have rid into ran were what did very they our funds providers because Because we really send case eventually don't of don't pay regulate list and have they of as as we assisted-living you So that a We the even were hear help needs first, let's needed money, We unique were assisted-living then to Medicare But that.

et X% take their it for that and working with folks point, pure made straight but And took the database that others, companies a first X ours at trade HHS. all a in receive out the began the work assisted-living all numbers, buildings, for both of pay cetera, decision It long-term the AL, association, Medicaid until time. long developed waiver September of when the that so XXXX was all it and of to went and the private care assisted-living they and wasn't And taxpayer will that ID country, funds worked, to the went revenue.

not enough. door pursuing much that's it the us to needs opened still the additional are relief. greater. now Now, But And

funds figure And calling a again are out they're X HHS have third that they're of today, portal hand they apply. out so billion, the apply application, what are the additional can said as providers assisted-living trying can under to to part phase we how talk specifically assisted-living the Phase as or/and where of And an that. $XX

that So road. broken we through with months have down are hopeful and the kind the that assisted-living, now continue, and we've, of, success as optimistic to greater we'll weeks be able

let Now, next? should you at little what talk of What's headed. be this And me a the about future. where all as bit investors, looking and is

the first the have the well DC, their last care. I last this the everything stimulus and be all, the that back before with XXX% will in right long-term there believe, bill, the because I pass not is going will state implications as all, election. it threw corner, its of did the bill. Obviously, and up after to about is it, obviously election. talk -- be was have hands an view on week stimulus conventional The come said, folks agree let's will another and that on including of and what let's election chance there around impact enormous First it

retain likely be be the additional Where irrelevant whether be of apparatus, there for week, the then the presidency republicans very both way. $X.X of of that the skilled And Act fell CARES to this of stimulus will be bill the the the $X.X bill one trillion being a the added to will significant is discussions assisted-living. nursing If to of when the election outcome that and will apart discussed be the whether is around funding available trillion. part So was is it's that or somewhere to size funds either it will senate, bill. bill, relevant not or a is the there size

$X.X the August in trillion. $X.X passed be over, than of be wait to it's until back in but bill, will $X bill stimulus trillion amounts stimulate just bill wanting significant On like take COVID. a lame everything, beginning. view They may be whenever economy that that if fight the they spend possible larger it democrats there They trillion to the the the over win take want hand, to in money the may democrats other clearly that stimulus the a duck. more is their there they if won't It'll to be and are the to

there those be question the will not things a bill. be of and large in there It's how whether of the stimulus will bill it's So nursing and a a assisted-living. be will important bill really skilled help just will that question

of to thing stimulus. to additional is, pretty in look forward first good So form some the relief

Second discussion vaccines. is whole a clearly of

on probably companies be drug to making the seem science You're progress. good really, vaccines. following really The

I'm provide we they've certainly should person assisted-living turnkey the for and program for skilled all the the fact, the we long-term where will country in February of Walgreens country. of forward vaccinated by and the will an care is create we our January about have looking vaccine, have much people the the to on to and and year, and staff in all to there. the vaccine be our scientists would think approved policy skilled failed read As in as a residents nursing vaccinations CVS that is vaccine, a and probably that done front. distribute for possibility the be spectacular the that assisted-living now facilities this looks to wonderful older actually are been priority side and us COVID, job public of the buildings that place in that's of time be news policymakers say it is good one to all If, there right the buildings in I created that to across that The able able all for end out you vaccine safest agreement the convince not to a on contain only a and on with nursing we've therapeutics it like a

a prioritized Testing are getting testing. and cheaper get is is little we about talk would I that thing being continuing better and third bit for it's to it. The

all you care when buildings the we months, our phase, -- water. and and look that. at the is the as in that months then, to I containment going, receive kind testing, we'll where So level few people we over doesn't will long-term we'll next over and from in quarantining federal hopefully, the get there get And will think vaccinated. understanding safety of heads the clear and the vaccine of are into this COVID robust to be continue above headed next keep all our few state who of need And funding who we has and a and

are two the about at think space. remaining I'm are questions that in of you sure forefront there as your Now, investing thoughts this

election. to to federal the The first is solution whether answer liability a And not liability or highly be situation. a will there is tied the

they I senate, or As the I any will of think federal believe the the part it's long discussion presidency that set will have Tuesday, whether possibility If providers of continue bill as there healthcare continue, sweep maintain the to future there forward. that all that that one set republicans kind stimulus will next republicans this needs function maintain that to apparatus, going liability the democratic the protection to by is was the liability -- be a aside. need

And they the school be there's have democrats thought is forward, move an that other of got for liability of another economy to if is some the to the of thought. school there protection. sweep kind Now, everything, understanding

liability term lame news who protection like. And some a even side collapsed is the be their will not February be or then, bigger by good this is in or stimulus liability possibility they the are followed the any and of not, declined The initially bill if duck story up it a what XX% part bill it the stimulus we'll in and of one whole democrats is January whether nursing skilled at that that long some of Long census out want get smaller it of on care. as if believe there about federal would further. to So business issue smaller a way that case the protection. short, win of will everything, hasn't to on although secondly, know or the level election it the look after level

vaccine. once comfortable conventional better Now that is day a bad operators buildings, feel any be the we thought every is able get vaccine the The to the news more I talk this among single census. either. gotten will will coming be work a a with rebuild we federal people And into that X.X% hasn't we okay. sufficient is that's and be we'll If a enough If we true, vaccine, numbers funding us get can census month, start or to because to the that once out. rebuilding get X% the to

recover, hand, get other the if census On real to we a doesn't got we problem. vaccine a and

in for the through wouldn't the XX time, in that. you investment, I call, will growth would out is think census, the side. the group a And dramatic continue and two increasing in clearly this there can pandemic and in I there of, our that will At on of needs be we're that new of think, are made be number will together. to the people this past interested And aware got remind you XXXX. where Well, of to all you're that case, the now. capacity discouragement be those I we belief medium will hasn't but spot new There the And population here the on And finally, not this lead services. space our once looked combine that and the as it's the that between past get the the long-term and same but be went horrific We am and in pandemic we're March, in XX aware that invest of you believe continue hope I invest a gradually better ended finally absolutely continuing that that past our I much all the tell demographic wasn't to And the saying at that are should XXXXs now. as this the them, to everybody's so, demographics U.S. improve to our am We in I'm space. you trough I in right really that about just vaccination. it something in and space. to be continue back space, less space. folks

have. I'll to end any forward questions my with that So look that, and comments people

Operator

I would like to turn the call over back Wendy. to

Wendy Simpson

from now on a Jordan taking people Jordan. understandable you, of calls the call. That start Thank Mark. thank lot wonderful will And and you, information. was

Operator

and the now Instructions]. answer [Operator question begin We session. will

first go Markets. Capital Sanabria comes Our question from Juan with BMO ahead. Please

Juan Sanabria

thanks the Hi, for time.

been Just viewpoint gets wondering it's permanently on the that's where or do Mark, unlikely? waiver your three-day waived it the probability, political the that discussion beneficial, you what's tremendously stay that in think

Mark Parkinson

correct. question absolutely because Great you're

emergency has important in least at As really couple of for into revenue companies public it to XXXX XX% dropped the along at keeping we're that next and some though financials continue you extend be dive these I providers, health or levels, so. feel thing quarters. been it's the of to confident census with going for the a even able to

whether XX. that days Biden, January will XX think confident and that on beyond that. expire another it's probably to be I set XX another currently or it's days, I'm So President Trump then President extended

gets of the list lobbying worst There that stay. first XXXX absolute a permanent at the hopefully growing the to the past pandemic. past is of us, for XXXX among half top of three-day So and of appetite providers our put the a elimination

and point be be It's absolutely early to that or connected that. we're into it. It's not too succeed is or early is sort really the see two, whether as certainly that for able a know we're to going not to at list, whether the we too to to case to look interesting probability financial and that the be government or that in of able with what the to this go not. any to at going to get on numbers will can quarter that it's impact last be So give making the changed cost will to or

stay. for observation that I think rule of getting of likelihood three-day count don't the it changed purposes the probably days that increases

to rule, complete early yet that to I but of probably chance a elimination. rid we're think handicap improved too our get

Juan Sanabria

the previous of this and be that then In was team, that any rent what changed deferrals, new abatement? And going abatements the LTC for forward kind of has was and tenant revert could the you Great. structure is trouble permanent more had once words, there will previously stuck give just back or expectation -- a rent the that things normalize it to bit there. a little there color other

Clint Malin

its forward. far addressed the September, as we forward. comments, change We into Wendy rent mentioned rent as for we in August through not Juan, Clint. What change, the abatement going did then we the deferred did going that rent and as her provided not was

rent. contractual So no to change the

Operator

Jordan with Please from comes question go Sadler next KeyBanc. Our ahead.

Jordan Sadler

or that you've how potential on a are of metrics good and thank there beds Coming so like this, other seen your A And to couple generally back and sense risk of the are providers around hopefully. of all waiver, is? ones side. to a number the morning converted pervasive seems the in Thanks. have area been taking quick any that much for It you, it skilled, you, for advantage time. how this converted three-day and Mark,

of pulled that basis So sort census, And be patients then points, X,XXX there. that just is the I'm going back it to that just mostly where loss residents to XX% your of essentially your the they'd have going, the sense census curious, from? are the back are coming issue, so or the thoughts -- of

Mark Parkinson

Sure.

three the visibility of beds the that day any decline occurred have would skilled on My stay guess three-day don't number the without the total pre-pandemic it. on stay, first we would same, roughly be have So versus neutralizing is post-pandemic. be the waiver it that that would

to aren't that, a very there that there it to. will how the from providers variety reasons your But ability in issue, because think And will are by don't that second will to the I provider -- talk made that it for and a that's that do aware being hospitals in And provider up clearly so are seeing they be That are decision because in for less ties by then question. And net-net, census we're are or come some the a either in other addition. of about just be that I'll not skilling skilled made people have folks that providers place. an people. there aggressively being

the see overall, them I we're for going so neutralizing the much but the post-acute And to normal in less, factor impact to a census. that decline is think it's net-net,

just anecdotal, that All yet. have with and providers, we speculation based any me data don't upon though, talking of

census, is In several terms things. different census the that I turn hope that of on think will

it a we vaccine. will once get First, hopefully turn

loved And that vaccine so in because once it will folks having feel a at of more point. a turn comfortable with little ones facilities,

to and and relationship, don't probably they space don't facility, the think at visitation can is between there they true particularly in think to be move Second any AL have visitors I census. a this if into People want appears all.

the elective elective the started decline are in we're hospitals, a up then having the the on virus, will again, those restrictions of go problem slowly ends, think has the a now of part surgeries. And that and visitation. an admissions the of And been those post-acute directly again, been because I of there. slow obviously, from in real finally, the lot because of down occur pandemic of spread as result then So stopped a and hospitals move-ins surgeries away. as in census are impact stopping as on And there's

where are a in buildings, people our combination that going? things. the now, The think, I So aren't of right it's people

it's First, sadly, of because deaths.

sending issue on directly because is is, And hospitals are they third their people folks, they're they're our elective factor those are The to health surgeries. off the permanent, post-acute for hope the that so temporary. phenomenon, doing is then holding are and about just have have care think second not long-term million a there. is you been XX,XXX that we're died average there nursing A occupancy the people that factor basis that we plus If a close on of little to fact facilities, getting a that rehabilitation. skilled XXX basis, right points temporary in over have some and those that's home an

Jordan Sadler

quick And Thank LTC. you folks for that. just one at then for one maybe

to any net the guideposts front SLC, that transitions of offer impact you on the guys XXXX? we might Just half terms in as you of of forward look can see

Clint Malin

timing Sure. Jordan, impact referring when say to you net-net transfers? of

Jordan Sadler

actually the let's to think original and right think transmission wider? it assuming face million in $X.X or essentially, $XX and or was, $XX receive these expect that rate it? in on a to I'm trying so is I but upon you properties range. million narrower about a we of booking, October, month of rent ultimately basis you're with say, SLC How your you're million $XXX,XXX like you run million now, received $XX it Is XQ Okay, understand, do any 'XX somewhere kind the between

Clint Malin

at I some of re-leasing think buildings. and point, engaged selling at of looking the this actively process Jordan, the in we're

as because have on will we of our like. progress, we're So by Hopefully majority negotiation more having more more remarks we call, visibility as completed have actively process. mentioned that our the visibility I we think quarter. We're looks transitions as of making what next first in on prepared on

happen is up what So rents on over we give be over the I time, it over clarity phase-in are time. more quarter, to now, three-year hard you two tell But will will a is will thing stepped that. able but you be you there a that of can one in as to to periods rents I details likely give probably right period think of will be

Jordan Sadler

did you from And the them how record in quarter? much

Wendy Simpson

X.X?

Pam Kessler

Yes.

Wendy Simpson

million. $X.X

Jordan Sadler

you million, guys. $X.X Thank okay.

Wendy Simpson

welcome. You're

Operator

of Michael go Next Please RBC ahead. Carroll question from comes Capital Markets.

Pam Kessler

Michael, you might be muted.

Operator

One. Capital ahead. from Daniel comes question Please Next with Bernstein go

Daniel Bernstein

I on Hi, Two the comments higher at you maybe the in for and point, of is from that systemic questions, one REITs senior thoughts were number few that good month what of and been move-outs phenomenon that housing for short-term? weeks the in LTC LTC a appreciate or one noting or and how your and had all in so. it last see your versus morning. this operators Mark. Mark. question, kind for causes Have portfolio,

Clint Malin

operators, operators on I triplet information always our our from Sure, side, census, on Dan. updates into the Being and from which we're call, going getting getting we're in provided. ears

express We over concern have recently not operators move-out. more had any

them. haven't like us just that's of about had it occupancy but -- the that to So declines, decelerating, seems significant communicated concerns have the been deceleration

Daniel Bernstein

Okay.

Wendy Simpson

and move-ins think this a to at up back too the was XX% you at of it's come October, it be and point, the month, in time would towards like in speculate that end because is point XX. that on premature I have it could September to decrease in the

this point. be So at to read reluctant that, I would into anything

Daniel Bernstein

kind haven't about industry then, a how changeover that administration. was bundled Mark, and that been of that put the we of about seems the by like administration? somewhat payments prior And forward. is going the backburner issue an industry, to payments President bundled much on the we other concerned a would have in Trump administration, Trump's heard hindrance be might to some have items lately, SNF If of It those

Mark Parkinson

to post-acute PDPM. decision administration bundling per to towards a work away Obama was type both lot the and with Trump clearly about made to as blown bundling, And payment but the by which really make payments, really finalize bundled decision by to both administration, it obviously, payment. the Well, type administrations, the the is whether a full though diem head was talk Trump choice of administration or whether had from made, even go Sure. and to relates there was to a the

And so of talked well. about lot COVID and PDPM it which the haven't because the coming worked all, about year, we at has the talked into a we darn crisis, PDPM pretty

this to hey, smart. think, had a was look the policy have that at on chance it people think I side, pretty

in a radical unlikely At will person administration to Obama an mature the five allowed think like et it's very and until time years. that they there purchasing, in departure is be I so going good fully And there much health PDPM basically bundled that to to for of payments, idea administration. work same a be the were policy policy cetera. people health the its people three to same Biden And are way probably value-based a the all

see, think assuming think I get I et through And, COVID both and things bundled year, So get this trying world, quite the spend a in kind we it fighting re-attention think bundled to cetera. threat in We you'll actually But a it's going don't payments, world. to to they're can take first a that well COVID. a at wins, point. bundled all operators tend view crisis of while, to and Biden like going do then we as just to sophisticated

they're fear so right So maybe but the five years or in sector the there's then not near ago.

Daniel Bernstein

I way. that appreciate that. hadn't thought quite in about I

have. off. I you. I'll So all that's Thank hop

Operator

[Operator Instructions].

might Please Mizuho. ahead. Our next Okusanya go with Omotayo, Omotayo you comes be question from muted.

Omotayo Okusanya

again potentially being gets Two that decent government you. aid, thanks does quick up of regulated? for And risk regulation there the in it assisted-living Mark, form take? insightful that end ones getting for successful is If could comments. increasingly the industry what any

Mark Parkinson

ultimately, assisted-living I question It's a and was associations made the for for risk by And think to additional the about the that it think the outweighed good all prior of opened funds. that But the potential door the up the regulation. it's very themselves boards a I the of need any of question decision you're XXX% ask to discussion making lobby we've funds right, accepting the funds. to decision a

a anywhere still like will think a a of skilled still full unlikely. democratic nursing complete don't in I looked folks with that in near I think republicans, scenario assisted-living Now the bring that sweep, think regulated regulation interested than are in which blown that occur. is is under that even of I more would that that that regulation what bunch

stockpile of all program. or regulation, some be regulations specifically level for I of infection control minimum think there should be should having whether, there having have buildings of to some all sort PPE have have buildings the some to margins, control, infection of discussions sort to like about perhaps will at some some whether states relating example,

think question, nursing homes the and that it you're be will probability. under increases for the I discussion scheme the regulatory correct absolutely of increases there have so think suffered your in But I that it don't long. kind

Omotayo Okusanya

up need brought And of the then that? happening? That's up. goes nothing, risk And you some risk helpful. how that you that it's, do not think point create What go about to also necessarily housing census, of a actually of whether even the post that of kind vaccine would senior scenario kind

Mark Parkinson

going think, happen. all, first that's the of that risk. to think to I want I don't I overstate don't Well,

that couple problem a changed. new be where because But we'll to that pre-pandemic, and development. were back census hospitals think of permanently patterns better a situation create be would if in from this specific maybe of were a little years recover from slowly even would I discharged a contraction will now we

able a dependent a as them you nursing that decided, skilled to send be of that would So opposed big home depends, that just the problem. post-acute significant if the how problem. a was, home in a setting we're It setting, and hospitals get upon and would numbers know, to people hey, phenomenon be

this significant to, make at people important it's -- the change biggest discharge in risk that that buildings can't have just But face people our in they to we also to not comfortable is decision our will probably come that's just remember the they of whole notion The into have challenges old, single the that's quite whether So they patterns. and buildings, into feel important. because building. they're the point come discretionary

So I'm rehab try just that as decided worried am really as folks not to home. at do I much they're going that about about to

Operator

ahead. RBC Capital Our Markets. Carroll Please next question comes of from Michael go

Michael Carroll

want Yes. this talk a sure understand Thanks. Lifestyle, make little Senior bit I I about correctly. to

$X.X the the you What's on So but rent the you million the receivable only about have behind delinquent rent, is million receivable tenant million of then rent. difference of $X.X and about $X.X balance? delinquent and bit have between

Pam Kessler

it to second reflected it, balance but quarter, us. put so $X.X balance not them delinquent that basis, stopped on rent non-accrual a of we So million last the from the quarter, quarter you but sheet on is owed we they recall amount this is sheet on the the it's because were accruing but

Michael Carroll

that trended gotten I better I it was on the since, Okay. June how us EBITDA was And or but what what then -- portfolio gave guess, you and it that analyze, has has trended about, is has through the think, worse? September, it

Pam Kessler

been up. It's trending

Michael Carroll

what Some or kind for you that? is much -- of, their with pockets of rent line they, in since better from collecting? that they're taking trends it pay Is basically are money you're [indiscernible]? of, Is it's to, run kind how that Okay. paying

Pam Kessler

they're with commensurate It's No. paying us. what

Wendy Simpson

received. include But, Mike, funds it yet they've government any doesn't include doesn't any -- it

Pam Kessler

Right.

Wendy Simpson

Or will receive.

Pam Kessler

Yeah.

Wendy Simpson

reflected So not that's numbers. in

Michael Carroll

you to they Lifestyle if qualify those? And out, of transmission do if Okay. or to HHS little you they a I are Senior transition the the kind risk for, do them you about happens guess, the talk run bit what from do still then of losing -- out, -- funds transition decide

Clint Malin

being the I risk, always X guess, right has already being approved actively Phase Mike, run right it's a or now. you could potential, and now, allocated

that we So, this, as to transitions allocated would Mark, the maybe, being now, that's wouldn't X, until it's to the Phase speak And you on right funded wouldn't submit I it risk QX. deadline but upstanding actively with the occur and sounds could XXXX, mentioned, -- X And applications. be like that. as even I in think, November likely

thoughts So X whether from that, and on whether affect operators, you not? have money and that of, -- operators get I any or you're aware not any timing know, Mark, if transition or would would of the Phase of

Mark Parkinson

money we it to year. to to of decisions applied X. trying of on the an with the the X goal haven't closes that out going Well, for, trying do been the get the to out their of that how November accounting because But their point, make the achieve closes about and much out money Friday. timelines. and It goal quota they're at But the by end to And some has by they Phase is of goal get this year. been to have can't when that's able there commit times been that money get end next

Michael Carroll

that achieve then, I risk to the know asset that? And if an would basing transitions on operator assuming able a a Great. those prior Because doing you Okay. lose of funds? that I'm they've is be of there potential to has that to Mark, funds there's or same be additional lot revenues levels, been

Mark Parkinson

owner and is, there's but to I that HSS is been be cases, is a have have and explain not [indiscernible] because just should a the et who getting and to owner change sent, funds getting the that checks challenged it's money, new new get of because the what where cetera. to administrative had the ought hard that philosophically ownership risk an in think people HHS in some risk the doesn't administrative really think

take funds. the receipt I fundamentally down owner the HHS funds, it think slow position that I the So think the but new don't of get could shouldn't the would that

Operator

to session. remarks. I question and Wendy the Simpson closing the turn concludes This over like would conference answer to for any back

Wendy Simpson

you Thank you, thank Jordan. Mark. And so much, again,

and Bye-bye. about you certainly who's the to you We and thank You've provided everybody on so much to Stay results. to insight And call. been LTC to and our year-end investors, analysts look safe, talking Thanksgiving. good have our forward a too.

Operator

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

You now may disconnect.