Community Healthcare Trust Inc (CHCT) 2023 Q1 法說會逐字稿

Welcome to Community Healthcare Trust's 2023 First Quarter Earnings Release Conference Call. On the call today, the company will discuss its 2023 first quarter financial results. It will also discuss progress made in various aspects of its business. (Operator Instructions) The company's earnings release was distributed last evening and has also been posted on its website, www.chct.reit.

歡迎參加社區醫療保健信託基金 2023 年第一季度收益發布電話會議。在今天的電話會議上，該公司將討論 2023 年第一季度的財務業績。它還將討論其業務各個方面取得的進展。 （操作員指示）該公司的收益報告於昨晚發布，並發佈在其網站 www.chct.reit 上。

The company wants to emphasize that some of the information that may be discussed on this call will be based on information as of today, May 3, 2023 and may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the company's disclosures regarding forward-looking statements in its earnings release as well as its risk factors and MD&A and its SEC filings. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

該公司希望強調，本次電話會議中可能討論的一些信息將基於截至今天（2023 年 5 月 3 日）的信息，並且可能包含涉及風險和不確定性的前瞻性陳述。實際結果可能與此類聲明中提出的結果存在重大差異。要討論這些風險和不確定性，您應該查看該公司在其收益發布中有關前瞻性陳述的披露以及其風險因素和 MD&A 以及其向 SEC 提交的文件。公司不承擔更新前瞻性陳述的義務，無論是由於新信息、未來發展還是其他原因，除非法律要求。

During this call, the company will discuss GAAP and non-GAAP financial measures. A reconciliation between the 2 is available in its earnings release, which is posted on its website. Call participants are advised that this conference call is being recorded for playback purposes. An archive of the call will be made available on the company's Investor Relations website for approximately 30 days and is the property of the company. This call may not be recorded or otherwise reproduced or distributed without the company's prior written permission.

在這次電話會議中，公司將討論公認會計原則和非公認會計原則財務指標。兩者之間的調節可以在其網站上發布的收益報告中找到。通話參與者請注意，正在錄製此電話會議以供回放。電話會議的檔案將在公司的投資者關係網站上保留大約 30 天，並且是公司的財產。未經公司事先書面許可，不得對本次通話進行錄音或以其他方式複製或分發。

Now I would like to turn the call over to David Dupuy, CEO of Community Healthcare Trust. Please go ahead.

現在我想將電話轉給社區醫療保健信託基金首席執行官 David Dupuy。請繼續。

Great. Thanks, Gary. Good morning, and thank you for joining us today for our 2023 first quarter conference call. On the call with me today is Leigh Ann Stach, our Chief Accounting Officer; and Tim Meyer, our EVP of Asset Management. The CHCT family had an incredibly difficult and emotional quarter with the loss of the company's founder, Chairman and CEO, Tim Wallace. Tim was a great leader but also a friend and mentor to me and many others.

偉大的。謝謝，加里。早上好，感謝您今天參加我們的 2023 年第一季度電話會議。今天與我通話的是我們的首席會計官 Leigh Ann Stach；以及我們的資產管理執行副總裁 Tim Meyer。隨著公司創始人、董事長兼首席執行官蒂姆·華萊士 (Tim Wallace) 的去世，CHCT 家族度過了一個極其困難且情緒激動的季度。蒂姆是一位偉大的領導者，也是我和其他許多人的朋友和導師。

I have received many heartfelt calls, letters and e-mails of support from colleagues and friends expressing their sympathy and remembering Tim. His presence and leadership will be missed, but he built a top-notch team that I am now fortunate to lead. I am grateful for the support I've received from our Board of Directors, employees and investors, and I look forward to carrying on being mindful of Tim's legacy as the company's new CEO.

我收到了許多來自同事和朋友的衷心支持的電話、信件和電子郵件，表達了他們的同情並緬懷蒂姆。我們將懷念他的存在和領導力，但他建立了一支一流的團隊，我現在有幸領導這支團隊。我感謝董事會、員工和投資者對我的支持，我期待著繼續銘記蒂姆作為公司新任首席執行官的遺產。

Our earnings announcement and supplemental data report were released last night and filed with an 8-K. Our quarterly report on Form 10-Q was filed last night. In addition, an updated investor presentation was posted to our website last night. The extraordinary events of the first quarter required everyone on the team to step up and fill the void left by Tim. I am proud of how our executive, accounting and asset management teams responded to these challenges while still delivering a good service to our tenants and continued growth for our shareholders.

我們的收益公告和補充數據報告已於昨晚發布並通過 8-K 備案。我們的 10-Q 表格季度報告已於昨晚提交。此外，昨晚我們的網站上發布了更新的投資者演示文稿。第一節的非凡事件要求團隊中的每個人站出來填補蒂姆留下的空白。我為我們的執行、會計和資產管理團隊如何應對這些挑戰，同時仍然為我們的租戶提供良好的服務並為我們的股東持續增長感到自豪。

We are seeing steady acquisition activity and our acquisition pipeline continues to build. Occupancy was stable at 91.6% and we continue to see good leasing activity. Our weighted average remaining lease term declined slightly from 7.6 to 7.4 years. On another front, one of our clients, Everest Rehabilitation sold the operations of 4 of its inpatient rehab hospitals to LifePoint Health in February. And now LifePoint is our new tenant in these 4 buildings.

我們看到穩定的收購活動，並且我們的收購渠道持續建設。入住率穩定在 91.6%，我們繼續看到良好的租賃活動。我們的加權平均剩餘租賃期從 7.6 年略有下降至 7.4 年。另一方面，我們的客戶之一 Everest Rehabilitation 在 2 月份將其 4 家住院康復醫院的業務出售給了 LifePoint Health。現在 LifePoint 是我們這 4 棟大樓的新租戶。

As part of this transaction, LifePoint can acquire future buildings from Everest upon completion and Medicare licensure. We believe this gives credence to the quality of Everest buildings and operations. In the first quarter, we acquired 7 properties with a total of approximately 162,000 square feet for a purchase price of $23.4 million. The properties were 100% leased with leases running through 2031 and anticipated annual returns of approximately 9.2% to 10.6%. The company has 4 properties under definitive purchase agreements for an aggregate expected purchase price of $19.7 million and expected returns of approximately 9.2% to 9.3%.

作為此次交易的一部分，LifePoint 可以在竣工並獲得醫療保險許可後從 Everest 收購未來的建築物。我們相信，這為珠穆朗瑪峰建築和運營的質量提供了信心。第一季度，我們以 2,340 萬美元的價格收購了 7 處房產，總面積約為 162,000 平方英尺。這些物業已 100% 出租，租約持續至 2031 年，預期年回報率約為 9.2% 至 10.6%。該公司根據最終購買協議擁有 4 處房產，預計總購買價為 1,970 萬美元，預期回報率約為 9.2% 至 9.3%。

The company is currently performing due diligence and expects to close on these properties in the second quarter. The company signed 3 additional purchase and sale agreements with Everest this quarter and now has signed agreements for 9 properties to be acquired after completion and occupancy for an aggregate expected investment of $214.5 million. The expected return on these investments could range up to 10.25%, and we expect to close on these properties throughout 2023, 2024 and 2025.

該公司目前正在進行盡職調查，預計將在第二季度完成這些房產的收購。該公司本季度與 Everest 簽署了 3 份額外的買賣協議，目前已簽署了 9 處房產的協議，這些房產將在竣工併入住後收購，預計總投資額為 2.145 億美元。這些投資的預期回報率可能高達 10.25%，我們預計將在 2023 年、2024 年和 2025 年完成這些房產的收購。

We continue to have many properties under review and have term sheets out on several properties with indicative returns of 9% to 10%. We anticipate having enough availability on our credit facilities and through our banking relationships to fund our acquisitions, and we expect to continue to opportunistically utilize the ATM to strategically access the equity markets.

我們繼續對許多房產進行審查，並為幾處房產製定了投資意向書，指示性回報率為 9% 至 10%。我們預計我們的信貸設施和銀行關係將有足夠的可用性來為我們的收購提供資金，並且我們預計將繼續機會主義地利用 ATM 戰略性地進入股票市場。

Also, we declared our dividend for the fourth quarter and raised it to $0.45 per common share. This equates to an annualized dividend of $1.80 per share, and we continue to be proud to say we have raised our dividend every quarter since our IPO. That takes care of the items I wanted to cover, so I'll hand things off to Leigh Ann to discuss the numbers.

此外，我們還宣布了第四季度的股息，並將其提高至每股普通股 0.45 美元。這相當於每股 1.80 美元的年化股息，我們仍然可以自豪地說，自 IPO 以來，我們每個季度都提高了股息。這解決了我想要涵蓋的項目，因此我將把事情交給 Leigh Ann 來討論數字。

Thank you, Dave, and good morning, everyone. I'm pleased to report that total revenue grew from $23.5 million in the first quarter of '22 to $27.2 million in the first quarter of 2023, representing 15.7% growth over the same period last year. Revenue for the fourth quarter of 2022 was $25.3 million, representing 7.2% sequential growth. On a pro forma basis, if all the 2023 first quarter acquisitions had occurred on the first day of the quarter, total revenue would have increased by an additional $383,000 to pro forma total of $27.6 million in the first quarter.

謝謝戴夫，大家早上好。我很高興地報告，總收入從 22 年第一季度的 2350 萬美元增長到 2023 年第一季度的 2720 萬美元，比去年同期增長 15.7%。 2022 年第四季度收入為 2530 萬美元，環比增長 7.2%。根據預計，如果 2023 年第一季度的所有收購都發生在該季度的第一天，那麼第一季度的總收入將額外增加 383,000 美元，達到 2760 萬美元。

From an expense perspective, property operating expenses increased quarter-over-quarter from $4.2 million in the fourth quarter of 2022 to $4.9 million in the first quarter of 2023 or 17.3%. The increase in property operating expenses was mainly due to expenses on properties acquired as well as increases in property taxes and other normal fluctuations occurring from period to period.

從費用角度來看，物業運營費用環比增長，從2022年第四季度的420萬美元增至2023年第一季度的490萬美元，增幅為17.3%。物業運營費用的增加主要是由於收購物業的費用以及物業稅的增加以及不同時期發生的其他正常波動。

G&A increased from $4.1 million to $16.2 million sequentially. G&A for the first quarter of 2023 included the non-cash accelerated amortization of Mr. Wallace's unvested shares totaling $11.8 million. This accelerated amortization -- excluding this accelerated amortization, G&A increased $0.3 million quarter-over-quarter or 6.2%.

G&A 從 410 萬美元連續增加到 1620 萬美元。 2023 年第一季度的一般管理費用包括華萊士先生未歸屬股票的非現金加速攤銷，總額為 1,180 萬美元。這種加速攤銷——不包括這種加速攤銷，一般管理費用環比增加 30 萬美元，即 6.2%。

Increases in G&A were driven primarily by increases in compensation from annual salary increases as well as professional fees associated with the passing of Mr. Wallace. Also, interest expense increased from $3.5 million to $4 million or 15.2% sequentially. This increase was due to the credit facility refinancing in December of '22 in which we added on a net basis, $100 million in term loans as well as increases in interest rates.

一般行政費用的增加主要是由於年薪增加以及與華萊士先生去世相關的專業費用的增加所致。此外，利息支出從 350 萬美元增加到 400 萬美元，增幅為 15.2%。這一增長是由於 2022 年 12 月的信貸融資再融資，其中我們在淨額基礎上增加了 1 億美元的定期貸款以及利率的上升。

Funds from operations, or FFO, for the first quarter of 2023 was $2.2 million, which includes the non-cash accelerated amortization of Mr. Wallace's unvested shares totaling $11.8 million as compared to FFO of $13.5 million in the first quarter of 2022. On a per share basis, FFO was $0.09 per diluted share in the first quarter of 2023 compared to $0.56 per diluted share in the first quarter of 2022.

2023 年第一季度的運營資金 (FFO) 為 220 萬美元，其中包括華萊士先生未歸屬股票的非現金加速攤銷總計 1,180 萬美元，而 2022 年第一季度的 FFO 為 1,350 萬美元。按每股計算，2023 年第一季度稀釋後每股 FFO 為 0.09 美元，而 2022 年第一季度稀釋後每股 FFO 為 0.56 美元。

The non-cash amortization of Mr. Wallace's unvested shares recognized in the first quarter of 2023 reduced FFO per diluted share by $0.47. Adjusted funds from operations, or AFFO, which adjusts for straight-line rent and stock-based compensation, including the accelerated amortization of Mr. Wallace's unvested shares totaled $15.6 million compared with $14.8 million in the first quarter of 2022 or 5.2% growth year-over-year.

Wallace 先生的未歸屬股票於 2023 年第一季度確認的非現金攤銷使稀釋後每股 FFO 減少了 0.47 美元。調整後的運營資金 (AFFO) 根據直線租金和股票薪酬進行調整，包括華萊士先生未歸屬股票的加速攤銷，總額為 1,560 萬美元，而 2022 年第一季度為 1,480 萬美元，同比增長 5.2%。超過一年。

On a per share basis, AFFO increased from $0.61 per diluted share in the first quarter of '22 to $0.62 per diluted share in the first quarter of 2023 or 1.6% growth. Finally, FFO for the fourth quarter of 2022 was $15.4 million, representing a $0.012, 2% increase on a sequential basis and down on a per share basis by $0.01 per diluted share.

按每股計算，AFFO 從 2022 年第一季度稀釋後每股 0.61 美元增至 2023 年第一季度稀釋後每股 0.62 美元，增幅為 1.6%。最後，2022 年第四季度的 FFO 為 1540 萬美元，環比增長 0.012 美元，增長 2%，每股稀釋後每股下降 0.01 美元。

On a pro forma perspective, if all of the first quarter acquisitions occurred on the first day of the first quarter, AFFO would have increased by approximately $214,000 to a pro forma total of $15.8 million or about $0.01 per diluted share. That's all I have for the numbers perspective. Operator, we're ready to start the question-and-answer session.

從預計的角度來看，如果第一季度的所有收購都發生在第一季度的第一天，AFFO 將增加約 214,000 美元，達到預計總額 1,580 萬美元，或稀釋後每股約 0.01 美元。這就是我對數字的看法。接線員，我們準備開始問答環節了。

(Operator Instructions) Our first question is from Rob Stevenson with Janney.

（操作員說明）我們的第一個問題是 Rob Stevenson 和 Janney 提出的。

Dave, how does the breakdown of the 9 properties totaling $215 million of completion breakdown in terms of expected '23, '24 and '25 in terms of taking possession and you guys needing to fund?

戴夫，總價值 2.15 億美元的 9 處房產的竣工細目，在預計“23”、“24”和“25”的佔有率以及你們需要資金方面如何？

Yes. So based on the information we have today, thanks for the question. Based on the information we have today, we are expecting 2 of those facilities to close in this year. And then we're expecting 4 to close in 2024, and the remaining 3 would close in 2025.

是的。因此，根據我們今天掌握的信息，感謝您提出問題。根據我們今天掌握的信息，我們預計其中 2 個設施將在今年關閉。我們預計 4 座將在 2024 年關閉，其餘 3 座將在 2025 年關閉。

Okay. And are any of those outsized? Are they all sort of roughly, call it, $20 million, $25 million assets?

好的。其中有哪些尺寸過大嗎？它們是不是大約相當於 2000 萬美元、2500 萬美元的資產？

Yes, they're all in that range consistent with what we've done in the past.

是的，它們都在與我們過去所做的一致的範圍內。

Okay. All right. And then how do you guys look at the credit quality of LifePoint compared to where Everest used to be?

好的。好的。那麼，與過去的珠穆朗瑪峰相比，你們如何看待 LifePoint 的信用質量？

Look, I think LifePoint obviously did a large take-private transaction a few years ago, Apollo is their private equity sponsor. My guess is LifePoint over the next 12 to 18 months will be exploring an IPO as Apollo looks to get out of the deal. I think it's a pickup in credit from our perspective. And we think it -- like I said in the prepared remarks, we think it really gives credence to the quality of the buildings, frankly, the locations and the operations of Everest. So we think this is a great transaction. Obviously, for the folks at Everest, it really validates what they're doing. But we also think it validates our partnership with Everest, and we're very excited about it.

看，我認為 LifePoint 幾年前顯然做了一筆大型私有化交易，Apollo 是他們的私募股權贊助商。我的猜測是，隨著 Apollo 尋求退出交易，LifePoint 將在未來 12 到 18 個月內探索 IPO。我認為從我們的角度來看，這是信貸的回升。我們認為——就像我在準備好的發言中所說的那樣，我們認為這確實對建築物的質量、坦率地說、對珠穆朗瑪峰的位置和運營產生了信任。所以我們認為這是一筆很棒的交易。顯然，對於珠穆朗瑪峰的人們來說，這確實驗證了他們所做的事情。但我們也認為這驗證了我們與珠穆朗瑪峰的合作夥伴關係，我們對此感到非常興奮。

Okay. And then last 1 for me. Where are you seeing cap rates trend these days? What was it on the first quarter acquisitions? It looks like that the 4 properties for $20 million are sort of low 9s. And then what's coming across your desk these days in terms of pipeline for the back half of the year?

好的。然後是我的最後 1 個。您最近在哪裡看到上限利率趨勢？第一季度收購情況如何？看起來 2000 萬美元的 4 處房產都屬於低 9。那麼，這些天你的辦公桌上有什麼關於今年下半年的管道的信息？

It's really consistent with that 9% to 10% range. Occasionally, we'll see opportunities north of 10%. Usually, there's a story associated with those properties such as shorter-dated leases or some other dynamic that might make the cap rate a little bit higher. But in general, we're seeing really consistent trends in that -- call it, 9.25%, up to 10.25% range. And from our perspective, those are right down the middle of the fairway for us. And so those are attractive yields, and we'll continue to go after those opportunities.

這確實與 9% 到 10% 的範圍一致。有時，我們會看到超過 10% 的機會。通常，有一些與這些房產相關的故事，例如短期租賃或其他一些可能會使資本化率略高的動態。但總的來說，我們看到了非常一致的趨勢——稱之為 9.25%，最高 10.25% 的範圍。從我們的角度來看，這些就在我們的球道中間。因此，這些都是有吸引力的收益率，我們將繼續尋找這些機會。

Okay. So you haven't seen any big ballooning from the -- what's going on with the banks and other capital sources and pricing these days to really expand that much beyond about a 10% cap rate at this point.

好的。因此，你還沒有看到銀行和其他資本來源以及定價方面目前的情況出現任何大幅膨脹，從而真正超出目前大約 10% 的上限利率。

That's right. That's right. And look, we're going to continue to obviously try to drive the best yield we can. But I think to the extent people have an asset that would yield north of that 10.5% range, my guess is they'd look to hold it for a while and not look to sell. But again, we think that 9.25% to 10.25% is right down the middle of the fairway.

這是正確的。這是正確的。看，我們顯然將繼續努力提高我們能達到的最佳產量。但我認為，如果人們擁有的資產收益率高於 10.5% 的範圍，我的猜測是，他們會希望持有該資產一段時間，而不是出售。但我們再次認為 9.25% 到 10.25% 就在球道中間。

The next question is from Alexander Goldfarb with Piper Sandler.

下一個問題是 Alexander Goldfarb 和 Piper Sandler 提出的。

And yes, obviously, condolences on Tim. So Dave, you got big shoes to fill.

是的，顯然，我對蒂姆表示​​哀悼。所以，戴夫，你有很多事情要做。

I appreciate that.

我很感激。

Hopefully, you can channel some of Tim's snarkiness, that way that part can live on. So 2 questions here. First, just Tim, obviously was long tenured in the business, started the company and had a lot of relationships out there, especially with the sort of cyclical or the serial developers and such. But you guys have a big team -- acquisitions team. Do you feel that the relationships that he had will be maintained? Or are there some that really were -- really Tim centric and you guys will need to either work to rebuild -- not to rebuild, that's a bad word, but you know what I mean, like bridge the relationship?

希望你能疏導蒂姆的一些尖酸刻薄，這樣這部分就可以繼續存在。所以這裡有兩個問題。首先，蒂姆顯然在這個行業工作了很長時間，創辦了公司，並且有很多關係，特別是與週期性或連續開發人員等。但你們有一個很大的團隊——收購團隊。你覺得他的關係還能維持嗎？或者是否有一些確實以蒂姆為中心，而你們需要要么努力重建，要么重建，這是一個壞詞，但你知道我的意思，比如彌合關係？

No. Listen, Alex, that's a great question. Appreciate it. A couple of things I would say about that. First of all, the entire team was really instrumental and that included myself. It included Paige who's still actively engaged and working on those types of relationships, and it included Tim. But I would say Tim's focus was a lot more around originating some of the broker transactions and the broker relationships.

不，聽著，亞歷克斯，這是一個很好的問題。欣賞它。對此我想說幾件事。首先，整個團隊都非常有幫助，包括我自己。其中包括仍在積極參與並致力於此類關係的佩奇，也包括蒂姆。但我想說，蒂姆的重點更多地圍繞發起一些經紀人交易和經紀人關係。

And so from our perspective, and frankly, from my perspective, I was laser-focused on making sure that we had those broker relationships institutionalized. And I think we've done a good job in doing that and reaching out because obviously, the client relationships are very important, but so is the brokered business. And Tim was the one that had most of those relationships.

因此，從我們的角度來看，坦率地說，從我的角度來看，我專注於確保我們將這些經紀人關係制度化。我認為我們在這方面做得很好，並與客戶接觸，因為顯然，客戶關係非常重要，但經紀業務也很重要。蒂姆是擁有最多這些關係的人。

And so I think what we've done over the last 3 months is do a real good job of reaching out, reengaging with the brokers that we did a lot of work with and making sure that they knew that we're going to continue to grow the business consistent with some of the parameters that Tim had, and I think that's been successful. I mean our deal flow has -- really hasn't missed a beat.

因此，我認為過去 3 個月我們所做的就是很好地與我們合作過的經紀人進行接觸和重新接觸，並確保他們知道我們將繼續按照蒂姆的一些參數來發展業務，我認為這是成功的。我的意思是我們的交易流程確實沒有錯過任何一個節拍。

Okay. The second question is going back to the banks and the serial developers and some of the smaller businesses, I guess it's sort of 2 parts. One, are you seeing any of the developers or small practices that are getting hit because their local bank is pulling back on credit, and it's making them harder to proceed with development? Or is this where this increases the opportunity for you guys to put out more capital? And if that's the case, do you see doing more sort of like mezz or pref funding upfront versus buying out on the back end?

好的。第二個問題回到銀行、系列開發商和一些小型企業，我想這是兩部分。第一，您是否看到任何開發商或小型企業因當地銀行縮減信貸而受到打擊，這使他們更難繼續開發？或者這會增加你們投入更多資本的機會嗎？如果是這樣的話，您是否認為採取更多類似中間層或優先資金的方式進行前期融資，而不是在後端進行購買？

We are seeing and hearing anecdotally that some of the developers out there as well as some of the buyers who had a deal under control like cap rate that was 6.5% or 7%, all of a sudden, that cap rate doesn't make sense. And so they're not in a position where they can close on that deal or they perhaps reach out to us and see if we're interested. And ultimately, that isn't of interest to us.

我們看到和聽到的軼事是，一些開發商以及一些控制住交易的買家，比如上限利率為 6.5% 或 7%，突然之間，上限利率就沒有意義了。因此，他們無法完成這筆交易，或者他們可能會聯繫我們，看看我們是否感興趣。最終，我們對此不感興趣。

I mean we view our capital as very precious, and we want to generate the best yields we can on that capital. And so we feel like the best opportunity to do that is through client relationships that we develop. And so I will tell you, we're continuing to push forward. We've talked to many operators in the behavioral space. We've talked to operators in the inpatient rehab space and beyond, and we'll continue to have that dialogue.

我的意思是，我們認為我們的資本非常寶貴，我們希望利用這些資本產生最好的收益。因此，我們認為做到這一點的最佳機會是通過我們發展的客戶關係。所以我會告訴你，我們正在繼續前進。我們已經與行為領域的許多運營商進行了交談。我們已經與住院康復領域及其他領域的操作員進行了交談，我們將繼續進行這種對話。

We think that all of a sudden, the capital that we were offering at 9% to 10%, which appeared expensive a year or so ago is not so expensive today. And so the good news is, I guess, what I would tell you is we continue to have that dialogue with the potential -- and most of those are owners, owner-occupied type of folks and not providing a capital source for developers per se. Never say never, we'll look at every opportunity as it presents itself. But in general, we like the idea of working with our banks and getting them to fund the actual deal and then taking it out when that transaction is open and ready for operations.

我們認為，突然之間，我們以 9% 至 10% 的利率提供的資本，大約一年前看起來很昂貴，今天卻不再那麼昂貴了。因此，我想，我要告訴你的好消息是，我們將繼續與潛力進行對話，其中大多數是業主、自住型人士，並且本身不為開發商提供資金來源。永遠不要說永遠，我們會抓住每一個出現的機會。但總的來說，我們喜歡與我們的銀行合作，讓他們為實際交易提供資金，然後在交易開放並準備好運營時將其取出。

So Dave, to be clear, you guys are not interested in getting into the mezz or pref business. You only want to buy completed assets at the back end, correct?

所以戴夫，要明確的是，你們對進入中層或首選業務不感興趣。您只想在後端購買已完成的資產，對嗎？

That's correct.

這是正確的。

The next question is from Michael Lewis with SunTrust.

下一個問題來自 SunTrust 的 Michael Lewis。

So first of all, sad for all of us to have this first earnings call without Tim. And I especially extend my sympathies to everybody on the call who worked with him on a daily basis, more so than I interacted with him. I'm not going to say things, but sorry for the loss. My question, first, maybe an update on the CFO search to the extent that you can. And I wonder if it's important to you that they'd be paid in stock, which has been kind of the history of the company. And maybe any other structural or strategy changes at the company as a result of Tim's passing?

首先，我們所有人都對蒂姆缺席的第一次財報電話會議感到難過。我特別向電話中每天與他一起工作的每個人表示同情，比我與他互動的人更同情。我不會說什麼，但對損失感到抱歉。我的問題是，首先，也許您可以盡可能更新首席財務官的搜索情況。我想知道他們以股票支付對你來說是否重要，這一直是公司的歷史。蒂姆的去世可能會導致公司發生其他結構或戰略變化嗎？

Michael, thanks for the question and really appreciate your kind words. And it's -- we miss Tim and miss his presence and we appreciate that note. As for the CFO search, we are very focused on getting that done. As you might imagine, in my spot, juggling both of those roles over the last 3 months has been challenging. It's a lot of work. And so what I can tell you is, we're having good dialogue with qualified candidates. And we think that, hopefully, those will result in the near term getting somebody on board.

邁克爾，謝謝你的提問，非常感謝你的客氣話。我們想念蒂姆，想念他的存在，我們很欣賞這張便條。至於首席財務官的搜尋，我們非常專注於完成這項工作。正如您可能想像的那樣，在我看來，在過去的三個月裡同時兼顧這兩個角色非常具有挑戰性。這是很多工作。所以我可以告訴你的是，我們正在與合格的候選人進行良好的對話。我們認為，希望這些能夠在短期內讓有人加入。

As for the compensation question, we've always said as we launch the search and discussing it at the board level, it's very important that we, as a firm, I think, maintain kind of our shareholder-centric approach and all of us sitting in this room take 100% of our compensation in stock. But we're not going to let that drive be the sole driver for our CFO search and candidates.

至於薪酬問題，我們總是說，當我們啟動搜索並在董事會層面進行討論時，我認為，作為一家公司，我們必須保持以股東為中心的態度，並且我們所有人都坐在一起，這一點非常重要。在這個房間裡，我們100%的報酬都是庫存的。但我們不會讓這種驅動力成為我們尋找首席財務官和候選人的唯一驅動力。

So while it's important that candidate understands that, that's a significant part of what we do and how we operate, we're going to be open to finding the best candidate. And if that means that, that person over time or right away take some amount of cash versus stock, we're not going to preclude that candidate from being considered. So I think that answers the questions or at least all I can say about the CFO search.

因此，雖然候選人了解這一點很重要，但這是我們工作和運作方式的重要組成部分，我們將持開放態度尋找最佳候選人。如果這意味著，那個人隨著時間的推移或立即獲得一定數量的現金而不是股票，我們不會排除該候選人被考慮。所以我認為這回答了問題，或者至少回答了我能說的關於首席財務官搜索的所有問題。

As it relates to our focus as a business, and I've said this on our last call, when Tim was on medical leave that Tim has developed a really good road map for this business, and it's consistent, it's replicatable. We've got a team in place that understands how this works. We think our investors like the way we go about our business. And we've created a nice niche for ourselves in the marketplace.

因為這關係到我們作為一個企業的重點，我在上次電話會議上說過，當蒂姆休病假時，蒂姆為這項業務制定了一個非常好的路線圖，而且它是一致的，是可複制的。我們有一個團隊了解其運作方式。我們認為我們的投資者喜歡我們開展業務的方式。我們已經在市場上為自己創造了一個很好的利基市場。

And so I don't have any plans near term to change that. I think it's -- it's a good operating strategy and has served us well since the company's inception in 2015. So we'll continue to push forward being consistent with some of those guiding principles that Tim set forth for us.

所以我近期沒有任何計劃來改變這一點。我認為這是一個很好的運營策略，自 2015 年公司成立以來一直為我們提供了良好的服務。因此，我們將繼續推動與 Tim 為我們提出的一些指導原則保持一致。

Great. And then just 1 more for me. You've improved the occupancy quite a bit the last couple of years, largely through acquisitions of well-occupied assets. What do you think about, say, the bottom 5% or 10% of your portfolio? Stuff that maybe you've owned for a while, and it's not up to the quality of what you've been buying more recently or maybe it's underperforming for some other reason. People have already asked about access to capital and what's going on with the local and regional banks. I imagine maybe it's tough to call the bottom 5%, maybe because of high cap rates and they're worth more in the portfolio and that sort of thing. But is there any stress in the portfolio or any thoughts like I said, on some of those underperformers?

偉大的。然後再給我 1 個。過去幾年，入住率有了很大提高，這主要是通過收購使用率較高的資產來實現的。例如，您對投資組合中排名最後 5% 或 10% 的股票有何看法？您可能已經擁有了一段時間的東西，但它的質量不符合您最近購買的東西的質量，或者可能由於其他原因而表現不佳。人們已經詢問了獲得資本的途徑以及當地和地區銀行的情況。我想也許很難確定排名最低的 5%，也許是因為資本化率很高，而且他們在投資組合等方面的價值更高。但是，投資組合中是否存在任何壓力，或者像我所說的那樣，對其中一些表現不佳的股票有任何想法嗎？

I think there's always going to be some level of buildings that aren't performing where you want them to. I think in general, what we've been able -- been successful at doing is redeveloping those projects and those buildings in a way that allows us to get those projects yielding where we want them to yield and get the occupancy up.

我認為總會有某些級別的建築無法達到您想要的性能。我認為總的來說，我們已經能夠成功地做的是重新開發這些項目和那些建築物，使我們能夠讓這些項目在我們希望的地方產生收益並提高入住率。

But what I will say, Michael, is to the extent we've had buildings empty for more than a year or 2, we're going to take a look at the portfolio. And if it makes sense for us to look at selling those properties, we will evaluate doing that. I know Tim was very reluctant to do that historically. I think it's incumbent on this team to take a good look at some of those buildings and look at potentially recycling that capital, nothing has been decided at this point, but we will certainly look at it.

但邁克爾，我要說的是，如果我們的建築物空置了一兩年以上，我們將審視一下投資組合。如果我們考慮出售這些房產有意義，我們將評估這樣做。我知道蒂姆在歷史上非常不願意這樣做。我認為這個團隊有責任仔細研究其中一些建築物並考慮回收這些資本的可能性，目前尚未做出任何決定，但我們肯定會考慮它。

(Operator Instructions) The next question is from Jim Kammert with Evercore ISI.

（操作員說明）下一個問題來自 Evercore ISI 的 Jim Kammert。

I apologize. Did you cover in the prepared remarks that I see in the investor presentation you've also perhaps entered into a development agreement or a takeout agreement for some dialysis centers. And I was just curious if you could provide more color on the timing and about the credit profile of that to operate.

我道歉。我在投資者介紹中看到的準備好的評論中是否涵蓋了您可能還簽署了一些透析中心的開發協議或外賣協議。我只是很好奇您是否可以提供更多關於時間安排和運營信用狀況的信息。

Jim, no, that has been an agreement that we've had outstanding for a while now. Those term sheets have been -- that term sheet has been outstanding for a while. And that is with an existing client who we have -- it was a tenant in a handful of our buildings. We like that tenant a lot and that tenant actually just a year ago raised some private equity financing that we think really was, again, gives credence to their ability to operate dialysis centers and I think provide some good overall financial footing for the company.

吉姆，不，這是我們已經達成的協議有一段時間了。這些條款清單已經懸而未決有一段時間了。這是我們現有的客戶——它是我們幾棟大樓的租戶。我們非常喜歡那個租戶，實際上該租戶一年前就籌集了一些私募股權融資，我們認為這確實再次證明了他們經營透析中心的能力，我認為為公司提供了一些良好的整體財務基礎。

So it's a recognizable private equity firm. And so we're hopeful that those term sheet -- that term sheet results in some business. We've looked at a couple of transactions. What I will say is most of the focus of the business or just the reality of the deals they've been looking at in terms of acquisition, there has not been to own real estate as part of that. And so as a result, there hasn't been an opportunity for us to get involved on the real estate side. I still think they're going to focus on some development projects, which could involve us in that -- in those -- in that term sheet.

所以它是一家知名的私募股權公司。因此，我們希望這些條款清單能夠帶來一些業務。我們研究了幾筆交易。我要說的是業務的大部分焦點，或者只是他們在收購方面一直在考慮的交易的現實，其中並沒有擁有房地產。因此，我們一直沒有機會涉足房地產領域。我仍然認為他們將專注於一些開發項目，這些項目可能會讓我們參與到投資意向書中的項目中。

But private equity is very focused on ramping up growth as quickly as possible. And so they're rightfully looking at acquisitions and so that's been their primary focus over the last year. We're actually going to be meeting with that private equity firm next week to get a better sense of what their growth goals are and whether there's some development opportunities there and how we can be more helpful. So I'll have some better color after that meeting, but that relationship and that term sheet has been in place for a while now.

但私募股權公司非常注重盡快促進增長。因此，他們正在正確地考慮收購，這也是他們去年的主要關注點。實際上，我們下週將與該私募股權公司會面，以更好地了解他們的增長目標是什麼，那裡是否有一些發展機會，以及我們如何提供更多幫助。因此，在那次會議之後我會有一些更好的看法，但這種關係和投資意向書已經存在了一段時間了。

My mistake. I never agree you're waiting for a resolution. Got it. And then just turning to the operating portfolio, if I could. You've got sort of a mounting amount of lease expirations coming in the next 3 years. Any color you can provide on sort of expected roll up or roll down? I know you've been kind of flattish. I don't want to put words in your mouth, but in terms of the rent movement. Just curious what you are foreseeing coming up on renewals.

我的錯。我從來不同意你在等待解決方案。知道了。如果可以的話，然後轉向運營投資組合。未來三年內將會有越來越多的租約到期。您可以為預期的捲起或卷下提供任何顏色嗎？我知道你以前有點平淡。我不想在你嘴裡說什麼，但就租金變動而言。只是好奇您對續訂有何預見。

I think what our experience has been that in general, we've -- it's very market specific in some of our markets we've been up and some of our markets, we've been down a little bit. On average, our portfolio is right about where market is. And so we don't expect a material roll down relative to these leases. But the leasing team and Tim's team has done a great job at improving occupancy over the last 1.5 years or so. And I don't know, Tim, if you want to add any more specifics.

我認為我們的經驗是，總的來說，我們——這是非常特定於市場的，在我們的一些市場上我們一直在上漲，在我們的一些市場上我們一直在下跌。平均而言，我們的投資組合對於市場的定位是正確的。因此，我們預計這些租賃不會出現實質性縮減。但租賃團隊和 Tim 的團隊在過去 1.5 年左右的時間裡在提高入住率方面做得非常出色。蒂姆，我不知道你是否想添加更多細節。

Yes. I mean we like where we are from a leasing perspective. We like where the pipeline sits and we're going to have some natural flow as some tenants roll off, but we've been very successful with the plan that we have and what we're executing. So we're very excited about where the pipeline is and what we're seeing from a retention rate perspective as well in the portfolio.

是的。我的意思是，從租賃的角度來看，我們喜歡我們現在的處境。我們喜歡管道所在的位置，隨著一些租戶的退出，我們將有一些自然的流動，但我們的計劃和正在執行的計劃非常成功。因此，我們對管道的位置以及我們從保留率角度以及投資組合中看到的情況感到非常興奮。

This concludes our question-and-answer session. I would like to turn the conference back over to David Dupuy for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 David Dupuy 發表閉幕詞。

Great. Thanks, everybody, for the questions. We appreciate everyone's interest in the company and look forward to if there's any additional questions you have, feel free to reach out. Look forward to seeing everybody on the upcoming NAREIT in June. Thank you.

偉大的。謝謝大家的提問。我們感謝大家對公司的興趣，如果您有任何其他問題，請隨時與我們聯繫。期待在六月份即將舉行的 NAREIT 展會上與大家見面。謝謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。