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LTC Properties (LTC)

Participants
Wendy Simpson Chief Executive Officer
Pam Kessler Co-President & Chief Financial Officer
Clint Malin Co-President & Chief Investment Officer
Juan Sanabria BMO
Jordan Sadler KeyBanc
Okusanya Omotayo Mizuho
Michael Carroll RBC Capital Markets
Call transcript
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Operator

Good morning and welcome to LTC Properties’ First Quarter Analyst and Investor Call. All participants will be in listen-only mode. [Operator instructions] After today’s presentation, there will be opportunity to ask questions. Please note that this event is being recorded.

Now, I'd like to turn the conference over to Ms. CEO. Simpson, Wendy ahead. Please go

Wendy Simpson

Financial operator for and me joining you, and to the and Malin, Chief Investment welcome XXXX first today Officer. Chief Co-President LTC’s Kessler, With are us and quarter Clint call Co-President Thank Pam everyone Officer; conference on call.

thanks and no they last to have year, offering keep our staff our is to their calls started the gratitude operators residents, safe. done different. Today For by patients, I and for all

time first optimistic behind the many Now, a the long daunting entered cautiously for however, are by us, many, am I in we have and the that more mostly while, that lives lost the of recovery some and the stage. challenges presented pandemic

XX population, communities and living increasing With certainty the high begin but percentages will don't over encouraging. should seen We frequencies know levels months. we've of and from evidence anecdotal senior to nursing any memory from with operating return of assisted some the skilled partners that our vaccinations residents care new is the administered patients numbers welcoming census lower at pre-pandemic last the centers when to levels,

some have deferrals abatements. needed our in and of rent As XXXX, operators

XX.X%, million million have on respectively, and give are eligible eligible $X.X escalations, operators additional the to and and of an First income $XXX,XXX quarter Approximately $X.X first the credits GAAP capital quarter. XXXX during FAD. XXXX recognized to provided form $XXX,XXX our our The impact expected were revenue first impact approximate in quarter an excluding mortgage the of was approximate XXXX and on reduced XXXX collections the we rent quarter were operators first to interest rent provided rent during credits. working

discuss current case-by-case of of abatements second on One requests, attractive a our creates by operators smart We filtration, basis, The design the operators' helped review through months and control Pam rent across-the-board $XXX,XXX residents, approximately protocols, and don't the quarter utilizing program our the air ongoing Currently, but prospectively we decrease keeping to coverage, a liquidity. equipment. infection financing the in in deferrals GAAP expect any, and operations, a last anticipate family, physical safer we'll and mind relief, specifics if is smaller pandemic six through operators much bit and staff health XXXX. we way in bad to continue revenue touchless providing program. will amount to and bipolar additional rent for devices, a relief $XXX,XX recognize sanitation providing additional financial environments ionization, state-of-the-art in our corporate later. and UV dividers, and including the custom by of

assist are is communities. in Smart to in implemented partnership operators options. with We with being working our retrofitting Design customizable To-date, Development and our of XX turnkey Avenue

about briefly talk I'll Senior Lifestyle. Next

progress the expected are close portfolio and We to making transitioning on in transactions this with third several second of quarters. the

we portfolio will in a rent Senior on has this As Clint paid Lifestyle XXXX. in recent filing, provide shortly. X-K not disclose details

X-K, same on Senior I'll XX. with centers, Regarding refer the was to SEC which April on an update Care filed you the

deal has market in we we since LTC meaningfully. in any engage that Although, the not M&A immediate not large do changed last believe spoke the and will future, up has much transactions picked flow

preferred seen healthy equity a inbound the and we've uptick last particular, in mezzanine in month regarding Over financing. inquiries

as pricing does the what properties. not on With the and census. not we current of investments respect to traditional value we a risk due whose for opportunities, especially host more have of represent acquisitions, immediate see more which returns, potential believe is current and profiles more dependent performing development underlying are however, or success up we're lease on diligence seeing these We accurately projects, reduced strong or

on an quickly shareholders. opportunities that well-positioned senior act and in the and investment an believe increasing remains despite fundamentals, and provide I LTC they have our LTC they're solutions. ability and arise for industry strong housing need value that care as point to to accretive the to if We has which long-term pandemic

to operators. starting are see We stability some our in

However, early to discussed increases not our approximately we support to to gain ratio timing together traction. Senior guidance full a and FAD. It of census until uncertainty it provide Board's has been is the with of practice too of recovery. light XX% Care the dividend predict bankruptcy, In a the matters the occupancy again, do payout above, additional regarding plan of

of operators financial we defaults providing lease support, of significant the and As are Senior Lifestyle Care. our the a and result some of Senior

payout dividend likely the ratio XXXX XX% exceed target. will Our

totally we as to to transition recovery portfolio issues the operators involving and in we Care resolved. FAD the more However, see Senior bankruptcy Senior Lifestyle our stable LTC able are are the XXXX

of Pam. to the further like our Cheng. XX%, number instrumental I'd turning Before over Pam, call be ahead, our LTC With and Her will Cornelia are who please member as ESG to directors that, recognize to women. the diversity newest addition brings we go develop board Cornelia initiatives.

Pam Kessler

to that received quarter, portfolio you, working impacting a revenue XXXX related rental a with a last impacted of lease from million Thank Lifestyle, by decrease COVID-XX. Senior and with non-payment transitioned. obligations to due abated increased additional revenue, capital and declined with offset by by were to recognition property interest XX% costs eligible from results operators Revenue $X.X time compared and reduction provide rent rent our this to Results Total Wendy. in XX partially one of escalation tax rent quarter, reduction in further year's the in were granted properties deferred of first

offset rent partially quarter, by operator's due under rent The and acquisitions decrease to decreased straight-line receivable an partially lower XXXX expense credit from was offset the completed transition related to in interest lower cash of we development our by lease basis line payments wrote-off the Interest projects by and Anthem. to rent accounting. interest. $XXX,XXX capitalized rates from of Additionally, higher first

total in quarter, the first recognized the During $XX.X during loss gain closed nursing of sale living of a community recognized a skilled and comparatively we on sold $XXX,XXX, XXXX, quarter assisted of XXXX properties we first a Florida sold million. and XX

items a quarter, of decreased million, is on prior compared As $XX.X shareholders discussed, lower diluted interest decreased year. XXXX the due period offset straight-line FFO the compared the diluted $X.XX XXXX for the FFO share the fully XXXX receivable this write-off revenue in $X.XX partially a excluding the first per common share quarter, to sale expense. to first last in primarily net NAREIT in with and fully per first by $X.XX $X.XX rent income already gain by was $X.XX This year quarter, result to quarter to available of discussed. declines the

to the payoff million During loan of the payoff note receivable. related XXXX, of a we quarter of first mezzanine $XXX,XXX received related a and $X.X the to

borrowed under million we revolving Additionally, unsecured line our of $XX at credit X.X%.

Moving on investment to our activity.

invested of Washington. equity XXXX our preferred rate $XX the X% venture. a first joint to we initial an The of assisted investment IRR remaining million the earns preferred XX% and and quarter, $X XXX-unit an unconsolidated develop in accounted for commitments is as living community equity Vancouver, cash independent million During living and a

improvement $XXX,XXX under $X projects funded and on mortgage we own also existing loans. capital million properties We in

and on a under expansion mortgage We remaining the property. a one related commitment loan $X.X renovation have to million of

paid in end quarter, $X Subsequent in our of to notes also $X $XX.X repaid payments common of million unsecured paid million we the under million scheduled our the first ATM under principal line this We providing million outstanding is million. including LTC $XXX regularly dividends. have credit, million and credit, under senior available and in we program, $XXX.X cash, repayment which our under of X.X under million liquidity line our $XXX.X with of $XXX.X million unsecured

As X.X strong to the enterprise end the real adjusted adjusted value with years. significant net debt credit we no annualize of times next and times of EBITDA a XXXX debt long-term for ratio remain debt maturities quarter, of have a fixed first our XX.X%. charge estate X.X metrics reminder, coverage and At over annualized to of five the

I'll on deferrals Next, abatements. rent and touch

rent revenue As the excluding interest the Wendy which XX% in provided $X.X mortgage mentioned, revenue reduction rent cash quarter, collected GAAP by the million $XXX,XXX. the form of first and operators XXXX credits quarter we of eligible income, at first interest to by and and in escalations XX.X% reduced rent

repayments rent rent of $X.X abatements. quarter in $XXX,XXX Additionally, net million during we in the provided deferrals and

mentioned, thus in far XXXX. Senior and we not net to-date. Communities Lifestyle Wendy April has rent receive deferrals operators of XXX,XXX rent Senior did the from paid to In Lifestyle transitioned XXX,XXX. abatements rent former rent XXXX, us But As we totaled were repayments whom

the abated Additionally, through we rent escalation a credit provided in discussed. to related already reduction and XXX,XXX rent rent April

We also each for of of rent agreed and have deferrals up abatements XXXX. to and May XXX,XXX June to provide

I'd over to call turn Clint. Now the to like

Clint Malin

portfolio quarter. the by we quarter, the After end this closing have XX one an to to start sold offer contract the the under transitioned with I'll are approximately Pam. for was in escalating quarter, Senior closed One two care with property Castle portfolio And our expected total XX alternative year properties The properties X% additional and these transitioning the Colorado year least for four member Three which my in Rock, buildings. evaluating third annually to discussion starting of portfolio. of XXX,XXX on at property, a the an we community of transitioned first year in lease LTC. of in was in as Living book second in Thanks update at There Lifestyle rent lease. quarter. remaining the are in one for three by Senior X lease be a QX, remaining expect the million. for unit April, XX value buildings today are the of three, Cash is options a an the of in first be by then after option expected term thereafter. in XX purchase Graceful the year exercisable $X.X additional of would we the remaining was with a $XXX,XXX, use return three lease now to sale third and end the agreement

details more provide completed. on will have transactions been after We these they

properties October in that October. development. budget. began all occupancy XX% up record XX% operational. March three operated XX was from at the began most Senior walking XX I'll recent are on At provide under on October and on color We They in XX% At XX Whether and on February accepting currently last XX% Oregon, residents on Living last Ignite patients Medical Next was by Field schedule same March XX% some February September. Resort are have now development on XX%, and Springs, occupancy Blue located projects our XX. Missouri, XX. in

Moving now whose was on exploration XX, December master XXXX. lease to Brookdale for scheduled

term by Rent terms XXXX. one extended through under available XXXX mass will option XX, $X million XXXX. maturing have December We and remains renewal we January December in amended April To-date, year a commitment now the begin lease recently did million yield. commitment. XX, extended first X, have XX, a Brookfields Brookdale through not change. $X.X and their on we Last funded of year XXXX at this capital which X% go

reminder, a contract expires have second other this lease year. that quarter. this for in only The we under sniff expected sale, closing is one operated lease the As under

numbers, the are focused X% will environment caveat assisted the occupancy EBITDAR don't for Next, management I believe shortly. discuss that is our and created. I'll times reported a future fee which has using living respectively portfolio trailing X.XX at mainly with our X.XX was EBITDARM coverage good given as times We of the QX it indicator and and XX-month time challenging a discuss on pandemic trends, portfolio. and performance this coverage

times by received funds X times and Excluding our operator's, X.X coverage is stimulus respectively.

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

Excluding and coverages X.XX Lifestyle and times X.XX respectively. Senior EBITDAR would EBITDARM funds, both times and stimulus be

and and times For respectively. EBITDAR coverage EBITDARM was our as X.X skilled X.XX nursing portfolio, reported times

X.XX Excluding coverage times X.XX stimulus was funds and times respectively.

some as XX. occupancy trends, of for are which March Now

XXst, the For voluntary December that portfolio, XXst, as our for approximately date occupancy month, given the March XX% beds. because are and pay information XX% occupancy And data and skilled our our is portfolio, at pay the average XX% for our is and XX% to partners expedited on have us private pay total specifically. of of private occupancy includes our at skilled units, XX% we approximately a this basis, nursing XX% was of XXth, Private at February XXst. January at providing

including XXXX skilled respect XX%. a than occupancy the been nursing it's time time. monthly is pay, and deals, With in these to those active operating cycles periods pipeline provide and some be the average we to we predominantly in our yet XX%, improved opportunities XX% new existing can't was same closed for returned has to are seeing partners For we LTC, specificity, deal of With normal what more number when to XX%, growth, to respectively mix elongated. bids. have But an of been And pleased deals and are be sales will or flow. not respect market with as of making increasing kind private

quarter, As price I regional can use at liquidity our confident for operators that said return, provide right when complete the the are we to deals they with the last growth will capital strong the we we need. right

we we risk her profile, believe turn with experts mezzanine with for have call operating part an the build For of in better remarks. including to important of the strategy, records reward what regions. now, focusing that, to local are is operators course equity and and I'll with smaller ongoing a back those that be regional relationships their preferred markets closing Wendy of we our loans will investments completed are on and which continue the we good track have throughout and financing, pandemic. Partnering several to With

Wendy Simpson

and more Thank world and unchartered in our caused the industry, you, and disruption the by unprecedented, cycles. resulted Pam The upended Clint. pandemic unpredictable specifically operating and

the strengths heroism need in those and within There be of industry, bravery, services. those also the care are the deep stories many people we provide However, of countless who and all which to of proud. our should pandemic particular highlighted

As forward moving of at the with are call, today's caution I optimism. said we outset

consumer recovery ramp-up the It continues are stabilize rollout, learned and and on of result to that to will work that As of normalcy. to steadfastly we've thing we If resilient. return an and that one industry pre-pandemic a through as government us focus resiliency help is occupancy ending is the pandemic, the vaccine attention that we work confidence. restore to

the operators that by and our You all know team. now very I of am LTC proud

of built And sheet of us to last. a a investments, and while balance continued something find our culture be tested partners, as choice. maintaining creative have we to ways solid treating our We work will partner as our tested, over portfolio, diversify operators year we were to and well, last as serve a enhance to growth continue serve and this

open Now, the questions. we'll call for your

Operator

question-and-answer Juan Now from go Instructions] First with Sanabria BMO. we’ll begin [Operator Please comes ahead. session. of question

Juan Sanabria

to lease, just morning in little a are potential if could tenants bit the kind see of just care, hoping a negotiating with good the decreases I was there. range rents of we could start with a out of decreases the rental you in you for of Hi, sense potential new senior get relative the quantum in the place to rate?

Clint Malin

that At Clint, in transition not clarity is assessing. with updates new provide but filing we'll more next quarter, get we're we're of information point, today. a something's that timing This And that this we not able the provide that The give on to as information to and able bankruptcy process.

Juan Sanabria

letters pay quarter? first of may in disclose the you second not available Can there if any to credit be was in quarter the applied that rents

Wendy Simpson

And give a credit quarter, drew the letter discussed not now. last we amount. enough did data right we Yes. We don't of we down but that on have

Juan Sanabria

Okay.

any as we that a only there a caution at for as why to to a is mean, take -- year? I maybe Can renewed of For provide should this extension wasn't they that switching longer topics you that color time? Brookdale. point

Clint Malin

evaluate they’re want the same holds my want to with Brookdale's this – extension. the speculate similar But led And pandemic, don't assumption They current to intentions. XX-year want to to I is a they renewal. to into for time last walking the environment. I on true believe

So beyond have any speculation I don't thoughts that. or

Juan Sanabria

Okay.

that disposition, just on that and the quick proceeds? me. sale Florida one the – were lost And Okay. for any Any NOI last was what one on

Pam Kessler

It $X And… dollars. $X The was $X a million, proceeds a million right? million, were

Clint Malin

are $X.X million. Those

Pam Kessler

proceeds, million in $X.X care the senior lease. in was I’m sorry. X.X, and the it X.X.

they're loss, I proceeds So, paying. mean, not

Wendy Simpson

was care. not So, it senior

Pam Kessler

It was in No. wrong It was NOI And another on She's operator. there in that. XXXX. No. or not senior no care. XXXX was

Wendy Simpson

In XXXX.

Pam Kessler

XXXX.

Wendy Simpson

Yes.

Pam Kessler

Among right sorry. us, I’m the Okay, can three we a get of answer. sorry.

on also no has We now out that it one one are senior care. currently. revenue And selling of

Juan Sanabria

It's It’s Thank morning. Friday you. year. long been It's okay. a

you. all Thank good. So,

Operator

Thank you.

Your Jordan Please KeyBanc? of go question is from ahead. next Sadler

Jordan Sadler

Thanks. Good morning, guys.

rent, full follow-up first quarter book quarter centers? accrue say to in care on Did of rent you a quarter, --did of you wanted I a consumer or So, the care. senior full

Pam Kessler

cash they're a And Yes. basis. on

of So, we full a booked and credit drew quarter down on of the we letter rent.

Jordan Sadler

Okay.

Pam Kessler

there's no… So,

Jordan Sadler

XQ, from Essentially rent lease. care senior XQ same

Pam Kessler

Yes.

Jordan Sadler

line question reject to accept DAM. the or from have that And the we then, process, but days, short it. early know super Have of Got window or what is sight the remember on on I reject other have to come day or what of the have we a to to lease? lease. this affirm point we'll I they

Clint Malin

And to is expedite But out day that Chapter there born filing there bankruptcy based this it’s that extensions, can period court on provision last the reject. from granted of Well, to date, to X, differs Jordan, one a circumstances. assume in time that or really Sub-Chapter XX typically a processes. certain is as to be by COVID opposed thing XX was

is this by Sub-Chapter the is turn The Trustee mediate timeframe appointed days allotted parties. to the there's make which election fact the a to under to reject. or is So judge assume between the And that to new. X, a XX effectively that resolution

Jordan Sadler

this it difficult of us, try on that the then, this want hold a given just history protect file guys again. sense, you properties And it's it's and -- your and they circumstances, to obviously, bit understanding, see get a in with borrower little to bit extenuating them. these if a XX, twice to a and years, would in Is Chapter little and assumedly unusual same the but, tenant two to because we Okay. kind is a because,

lease other working some capital And or right. in debt motive to or that objective, the is look they'd loans get not so, get of debt under. other debt does to out place XX rent, from like your some -- the rid the payment that There's of

Clint Malin

We're the we're I not -- of not in what aware. satisfy. to objective filing, is what or aware mean, trying they're their

So…

Pam Kessler

their relate motivation. Other than on

Wendy Simpson

point press think to Jordan, if release you right. was the saw press their had. in May, Well, can Jordan they it I we release, don't know, I

Pam Kessler

of May. Yes, beginning Yes.

Jordan Sadler

Okay.

Wendy Simpson

Beginning of May.

Jordan Sadler

Okay.

Pam Kessler

I'm sorry, of beginning April.

We’re…

Wendy Simpson

April of Beginning

Jordan Sadler

is I it. with properties you is of I you. not a pickle, what – mean transitioned. can't in yet know Thank curious, really we're the a in I get seeing – but to you it's did I remaining – SLC have Okay. you so terms put don't that Clint, that property it's speak transition. to just the the But know,

to three, as that for indication is your proxy good is one going happen XXX might XXX, rent leases? the a what So or a other with

Clint Malin

No. option be unique this in to effectively This building able when one. them year asset occupancy, Colorado, and purchase improvements to hopefully, really they second then we rent purchase the is It's make – one the in year. to make zero to can in give

think the intent we XX that So be and this to likely That's purchase this. purchase XX specifically. asset, really asset. months a it's On will option to in exercised the behind

Wendy Simpson

small It's a XX units, asset,

Clint Malin

is As memory mentioned XX a I in care my comments, unit community.

Jordan Sadler

on and call a surprised you news by know, were We little the surrounding or it on a that potential back call then lastly, just PDPM. CMS’s Okay, bit adjustment.

You might know, are groups talk sort as and of expectations? current industry thinking guys you what happen are some your the partners? What of with you

Clint Malin

been potential surprise it for to wasn’t was recalibration. So – don't I a think the There's us. it always

I about been think of since that's commencement the PDPM. talked

that So always…

Jordan Sadler

next be thought earlier on Just year. for might the thought. table I was my it seemed

Clint Malin

because you operating can pandemic that think an would the was environment. one pass there So abnormal

after have period probably we've had wouldn't a that happened of So pandemic. beyond you the time would think

Wendy Simpson

would that and illogical. decision. they make seem a to I which of XXXX be recalibration. set there as Yeah, that they wouldn't data to going put But That out always a a reduced permanent there's think XXXX

Jordan Sadler

be the an year Right, you X rate current XXXX? fiscal October this do sort adjustment know, so As comes is think, that could for of ultimate the this thinking to of implemented you year?

Clint Malin

as recalibration going when, far we’re But… actual as sure evolving not implementation still is something far as the to the We're follow. as and

Wendy Simpson

to return classes. know, get you decision. data normalcy of on And, when we you some you going to either don't on I recovery, we're think not good, make that's in know, which to happen know, to I speculating asset have our would that

Jordan Sadler

fair. very All you. Thank right, It's guys,

Clint Malin

Thank you.

Wendy Simpson

Thanks. Welcome.

Operator

our go question Okusanya, And from next is Please you. Mizuho. Thank Omotayo ahead.

Omotayo Okusanya

guys, Hi, try. Good are how you?

Wendy Simpson

Thank you. okay. We’re

Omotayo Okusanya

Good.

confidence. what to since wanted he of about of your I nursing field recovery with kind talk again, So sites, been talk of [Indiscernible] skilled that kind of because to rebound about of kind first kind kind recovery, of occupancy just nursing under stabilizing And but your a January? kind seen whether bit talks is about little you the tenants, gives

they're think, quite again, bps back that seems data kind I'm whether to pips could quarter, know, nursing leading XXX that skilled a month, sure is I you're if that you tenant the XXX a is time you about, but seeing but I'm bouncing that bps unless not at see of industry saying? the of if you guys sure talk lagging not just like suggest to kind what it's

Wendy Simpson

we that the the gave has it with seen know, troughed, others bit decrease I the have they four seeing have of we last for little though. been, occupancies in a uptick and flat. discussions operators monthly average in months are an you markets, hoping It's some continued to hasn't

depends it market, the but dropped. we're hopefully looking thing has positive right decrease that at that that So on now,

Omotayo Okusanya

really a struggling industry big with difference. quarter. seems has I it I'm guess, first why set But of up like from an such for what the the kind different data just

Wendy Simpson

In was January, normal discharge to you're hearing pattern. return that a there

Omotayo Okusanya

suggest increase just data or your you March, Yeah, dropped like seems didn't the things kind XXX to and February, tenants saw of seems it like see in that? per then kind see of and that, month, industry of kind bps in your January, that portfolio this

Wendy Simpson

and the of still January the middle in in surge most of our February. And were tenants in

Omotayo Okusanya

Okay. That’s fine.

The second is… question

Wendy Simpson

of We difficult Michigan had difficult to have of a times. kind in lot and Michigan a assets --

Omotayo Okusanya

I your dividend And I make making two, target confident the my one, that, back XXXX? of what Wendy? payout guess around to of kind you then comments recovery to have return assumptions don't are feel you about question is, it? the you to dividend made that with you you anything of Then by appreciate again, kind do

Pam Kessler

currently recovery temporary that Pam. there Well, a challenges and the are normal and in will transitioned. the this and margins normal are seeing the with senior Yeah, and we're contributing. return We're be green lifestyle care and that facing industry will to that senior with that that our occupancy we shoots is and assuming is industry

Omotayo Okusanya

you XXXX, we're a be by normal? where so like back XX to All going to think at kind point do that's out, we're XX months of to

Pam Kessler

Right.

Omotayo Okusanya

Okay. Appreciate you.

Pam Kessler

you. Thank

Omotayo Okusanya

Thank you.

Operator

Thank Markets. you. [Operator Instructions] Michael RBC ahead. Next Carroll, Capital from question Please go is

Michael Carroll

about credit that I Thank that you. And was that to a or is they I for talk Yes. shorter, since last since on still they this I you I Brookdale the escalators. guess renewal. Wendy, said term want get real? think rent could different the do the like time guess is they execute that, renewal credit, option, it's qualify shorter now only XX%

Wendy Simpson

the they It was No, got $XXX,XXX. credit.

Brookdale. they’re the And using it a buildings. by But different good, positive view We said, from the Their -- they what money as credit. So Clint move sometimes. analysts thought to a take got census are improve is was getting they're Mike, we reported.

Michael Carroll

that that there Care’s extra this uncertainty guess, what No, year from an I more I mean, is it a with Pam, because about to of I then, guess, uncertainty get how bankruptcy, I in why is known? credit, big less renewing is little Senior always just the guess, And environment the bit is during I what's that, it's regard letters for able Is guess, to or LTC is? good.

Pam Kessler

providing we're that and until not it's comment You're around they're in because much bankruptcy resolved. correct. It's

Michael Carroll

of that's to transfer or to specific floor senior licensing it the, to was -- -- I plan timeline within is one the bit transitions? something then I that? the is it is time a little July. going for or going it why the know you to states lifestyles, in problem, talk an waiting is I operator longer can is guess, are what's that guess, guess taking about be And But those Okay. XQ in different, adjust. These and three is trying I back

Clint Malin

sale. licensure, I we longer sale the bit the mentioned, others. and would I process little Mike, then elongated. do a some have states cycles than as are And say, And are

So those items. would be the

Wendy Simpson

surge the some things. And delayed

during surveys get that time. done couldn't You and things

Clint Malin

Yes. -- Earlier But a a we're items. those nothing that's other the beyond that into was at getting people challenge, bit but that I little buildings. of point, on, than this mean, just --

Michael Carroll

on are and do. offers that that? sales Is you discussions status those potential leases those, the license then assets? I just guess, what's were the three what's you're is and assets and Okay, still guys I analyzing that you're -- what analyzing or and/or the it to guess, the of transfer? around getting

Clint Malin

the of they’re we've assets. Because and more options, hopefully we're Again, now. on book details to that available working the analyzing be provide just relevance provided net we’ll for next right a associated couple those And quarter, got regarding value timing that. we with the three

Michael Carroll

three the on those assets? What's Okay. book gross value

Clint Malin

net I is think, more get have of book gross don't book, the front in me. you. But the relevant. We can that information I to

Wendy Simpson

were or built million probably around $X million. for these the think $X -- this I

Pam Kessler

the stable, -- network Yes. we probably It's double

Wendy Simpson

$X probably to I'd say, it's that $X Mike, million around million.

them Just them we because we and in built the built XXs.

Pam Kessler

in We XXs built the them

Wendy Simpson

yes. Yes,

Michael Carroll

great. you. Okay, Thank

Clint Malin

you. Thank

Pam Kessler

Thanks.

Wendy Simpson

CC the [ph]. closed I If

Operator

of a have follow-up we next, go Sanabria And BMO. Juan question ahead. from Please

Juan Sanabria

the time. Thanks for Hi. extra

Was any of there quarter? may not letters Care Senior outside on Just from quarter. perspective? first in helped quick that question of applied credit in a received a accounting the recur rents That the the second cash

Wendy Simpson

was there No, not.

Juan Sanabria

Okay. And skilled I recovery hear full question. then months? on, for just I at comment of a [Indiscernible] up following end expect seniors both that XX you in the correctly think, Did and

Wendy Simpson

No, we --

Juan Sanabria

margin [Indiscernible] perspective.

Wendy Simpson

not sharp our expect mean, the is clear. now. crystal of We that know we full not ball but that I yes, right timing Not a do that. recovery,

Juan Sanabria

Got Thank Okay. Follow you. that. it.

Operator

go Thank you. [Operator a is question Mizuho. Next ahead. Instructions] of Please follow-up Okusanya Omotayo

Okusanya Omotayo

Yes, guys.

portfolios you STC, just already weak portfolio of of these the can and kind some of inherited tenants gotten has all you SLT kind a into pandemic was of, little about, from, weaker. talk So again, portfolios, occupancy again, apart in going transition that, and kind even bit of have your

because like names, names, you like tenants? with Anthem, about just how kind what just tenants kind in of additional feel you're about from start they're these names think with seeing I of, get kind Ignite And starting portfolios some when those the and together? as that to a idea occupancy, those So you can may of their comfortable lower -- help, little bit not need they, a of

Clint Malin

the for Anthem we which which been some too done now with have the couple years. -- but not a working And provided we -- for -- flexibility, we past over them we've say high. the to of rent, them Let’s increasing of increase have couple years rent

So had their flow going flexibility cash into some they on COVID.

had to Anthem extend that. not support beyond incremental we've any So to

we've operators. majority helped of that and assistance, lease the we've set previously, as were talked same a the as point, buildings result, at previously. this the And same of But operators the it really Pam's For other it's been that population, at provided mentioned is up. on really it's

Okusanya Omotayo

Great. Thank you.

Wendy Simpson

subset So not has that changed.

Okusanya Omotayo

Thank you. Okay.

Clint Malin

Thank you.

Operator

you. Thank

this further have questions time. We no at

Now to closing to for the Simpson any turn over call Wendy I remarks. like back

Wendy Simpson

you very speaking to the to Thank attention thank next spent our you much to Again, time forward you quarter. you. paying and look for company we

Operator

Conference today's is concluded. now presentation. attending you for Thank

You disconnect. may now