Community Healthcare Trust Inc (CHCT) 2024 Q2 法說會逐字稿

Welcome to the Community Healthcare Trust's 2024 second quarter earnings release conference call. On the call today, the company will discuss its 2024 second quarter financial results. It will also discuss progress made in various aspects of its business.

歡迎參加社區醫療保健信託基金 2024 年第二季財報發布電話會議。在今天的電話會議上，該公司將討論 2024 年第二季財務業績。它還將討論其業務各個方面的進展。

(Operator Instructions) The company's earnings release was distributed last evening and has also been posted on its website, www.chct.reit.

（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, July 31, 2024, and may contain forward-looking statements that involve risk and uncertainty.

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（2024 年 7 月 31 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。

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 in 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 maybe required by law.

實際結果可能與此類聲明中提出的結果有重大差異。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披露的有關前瞻性陳述的信息，以及其在 SEC 文件中的風險因素和 MD&A。本公司不承擔因新資訊、未來發展或其他原因而更新前瞻性聲明的義務，法律可能要求的情況除外。

During this call, the company will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in its earnings release, which is posted on its website.

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。兩者之間的對帳可在其網站上發布的收益報告中找到。

All 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.

請所有與會者註意，本次電話會議正在錄音以供回放。電話會議的存檔將在公司的投資者關係網站上保留約 30 天，並且是公司的財產。未經本公司事先書面許可，不得對本次通話進行錄音或以其他方式複製或散佈。

Now, I would like to turn the call over to Dave Dupuy, CEO of Community Healthcare Trust.

現在，我想將電話轉給社區醫療保健信託基金執行長 Dave Dupuy。

Great, and good morning. Thank you for joining us today for our 2024 second quarter conference call. On the call with me today is Bill Monroe, our Chief Financial Officer; Leigh Ann Stach, our Chief Accounting Officer; and Tim Meyer, our EVP of Asset Management.

太好了，早安。感謝您今天參加我們的 2024 年第二季電話會議。今天與我通話的是我們的財務長比爾門羅 (Bill Monroe)； Leigh Ann Stach，我們的會計長；以及我們的資產管理執行副總裁 Tim Meyer。

Our earnings announcement and supplemental data report were released last night and furnished on Form 8-K, along with our quarterly report on Form 10-Q. In addition, an updated investor presentation was posted to our website last night.

我們的收益公告和補充數據報告於昨晚發布，並以 8-K 表格形式提供，同時也以 10-Q 表格形式提供季度報告。此外，昨晚我們的網站上發布了更新的投資者簡報。

As disclosed in our filings, we determined that certain lease and interest payments from geriatric inpatient psychiatric hospital tenant were not reasonably assured of collection. CHCT has six leases with the tenant, and it is the sole tenant in five of our properties with one lease and a multi-tenanted property, representing a total of approximately 79,000 square feet.

正如我們的文件中所揭露的，我們確定老年住院精神病院租戶的某些租金和利息付款無法合理保證收取。CHCT 與該租戶有六份租約，並且是我們五處物業的唯一租戶，其中有一份租約和一處多租戶物業，總面積約為 79,000 平方英尺。

As a geriatric psychiatric hospital operator, COVID had a significant impact on the tenant's business through 2022. And during this time, the tenant was in process of expanding locations, which led to a more pronounced impact.

作為一家老年精神病院營運商，新冠疫情對租戶到 2022 年的業務產生了重大影響。而在此期間，租戶正在擴張地點，這導致了更明顯的影響。

In 2023, the company improved census, installed the new revenue cycle management system, and made other operational improvements resulting in improved performance. Unfortunately, recent management changes resulted in a decline in census, staff turnover, and ultimately impacted the tenant's ability to consistently pay rent and interest.

2023 年，該公司改進了人口普查，安裝了新的收入週期管理系統，並進行了其他營運改進，從而提高了績效。不幸的是，最近的管理變動導致人口普查和員工流動率下降，並最終影響了租戶持續支付租金和利息的能力。

The tenant has hired a consulting team with significant behavioral operating experience to implement a turnaround plan and to stabilize the business. CHCT has previous experience with this consulting team, and we have confidence in their ability to make the necessary changes to improve operations.

租戶聘請了一支具有豐富行為營運經驗的諮詢團隊來實施週轉計劃並穩定業務。CHCT 先前曾與該諮詢團隊合作過，我們對他們做出必要改變以改善營運的能力充滿信心。

We are working closely with the tenant and the consultants to monitor and evaluate progress with the turnaround. Bill will discuss in more detail the financial impacts from this tenant but let me review what we believe to be the unique features of this tenant relationship compared to the rest of our portfolio.

我們正在與租戶和顧問密切合作，以監控和評估週轉進度。比爾將更詳細地討論該租戶的財務影響，但讓我回顧一下我們認為與我們投資組合的其他部分相比，這種租戶關係的獨特特徵。

Most importantly, this tenant is the only top 10 tenant where we are also a lender. To improve transparency of our top tenants, we are now including in our supplemental data report and investor presentation, not just those tenants with greater than 4% of annualized rent, but a listing of all top 10 tenants.

最重要的是，該租戶是我們也是貸款人的唯一前 10 名租戶。為了提高頂級租戶的透明度，我們現在在補充數據報告和投資者演示中納入的不僅僅是那些年化租金超過 4% 的租戶，而是所有排名前 10 名的租戶的清單。

Another aspect of this tenant relationship that I mentioned earlier was the COVID significantly impacted this tenant given its geriatric patient base. During timing, we had also recently -- when it had also recently expanded locations. And because this tenant is a private founder and business, CHCT helped finance the tenant's expansion leading to CHCT's $22.7 million in notes receivable across the term loan and revolving credit facility.

我之前提到的這種租戶關係的另一個方面是，考慮到該租戶的老年患者群體，新冠疫情對該租戶產生了重大影響。在時間安排上，我們最近也擴大了地點。由於該租戶是私人創始人和企業，CHCT 幫助該租戶的擴張提供資金，從而使 CHCT 在定期貸款和循環信貸便利中獲得 2,270 萬美元的應收票據。

This $22.7 million is by far our largest lending relationship with our only other notes receivable currently outstanding consisting of a $4.5 million term loan to a long-term acute care and inpatient rehab hospital tenant and a $2.2 million revolving credit facility to a substance use and eating disorder mental health provider tenant.

這2,270 萬美元是迄今為止我們與目前未清償的唯一其他應收票據的最大貸款關係，其中包括向長期急症護理和住院康復醫院租戶提供的450 萬美元定期貸款以及向藥物濫用和飲食問題提供的220 萬美元循環信貸額度精神疾病提供者租戶。

To conclude, we believe we can work closely with this tenant over the coming quarters to enhance returns on this unique investment within the portfolio. As for other components of the business, our occupancy increased slightly from 92.3% to 92.6% during the quarter, and we continue to see good leasing activity in the portfolio.

總而言之，我們相信我們可以在未來幾季與該租戶密切合作，以提高投資組合中這項獨特投資的回報。至於業務的其他組成部分，本季我們的入住率從 92.3% 略有上升至 92.6%，我們繼續看到投資組合中良好的租賃活動。

In addition, we have five properties where significant portions of those properties that are undergoing redevelopment or significant renovations with long-term tenants in place when the renovations or redevelopment is completed. Also, our weighted average main lease term increased from 6.9 years to 7.1 years.

此外，我們還有五處房產，其中很大一部分正在進行重建或重大翻修，在翻修或重建完成後，長期租戶已就位。此外，我們的加權平均主租賃期限從 6.9 年增加至 7.1 年。

During the second quarter, we acquired an inpatient rehabilitation facility for a purchase price of $23.5 million. We entered into a new lease with a lease expiration in 2039 and anticipated annual return of approximately 9.1%. Subsequent to June 30, we acquired one medical office building for a purchase price of approximately $6.2 million and expected returns of approximately 9.3%. The property is 100% leased with a lease expiration in 2027.

第二季度，我們以 2,350 萬美元的價格收購了一家住院復健設施。我們簽訂了一份新租約，租約將於 2039 年到期，預計年回報率約為 9.1%。6月30日之後，我們以約620萬美元的購買價格收購了一棟醫療辦公大樓，預期回報率約為9.3%。該物業已 100% 出租，租約將於 2027 年到期。

Also, the company has signed definitive purchase and sale agreements for seven properties to be acquired after completion and occupancy for an aggregate expected investment of $169.5 million. The expected return on these investments should range from 9.1% to 9.75%. We expect to close on one of these properties in the fourth quarter of 2024, with the remaining six properties closing throughout '25, '26, and '27. And we continue to have many properties under review with term sheets out on properties with indicative returns of 9% to 10%.

此外，該公司還簽署了七處房產的最終購買和銷售協議，這些房產將在竣工併入住後收購，預計總投資額為 1.695 億美元。這些投資的預期回報率應在 9.1% 至 9.75% 之間。我們預計將在 2024 年第四季關閉其中一處房產，其餘六處房產將在 2025 年、26 年和 27 年期間關閉。我們繼續對許多房產進行審查，並列出指示性回報率為 9% 至 10% 的房產條款清單。

With our modest leverage levels, we anticipate having enough availability on our credit facilities and through our banking relationships to fund our acquisitions and we expect to opportunistically utilize the ATM to strategically access the equity markets at favorable share prices. These traditional capital sources, combined with proceeds from selected asset sales will provide sufficient capital for continued growth at attractive yields.

憑藉我們適度的槓桿水平，我們預計我們的信貸額度和銀行關係將有足夠的可用性來為我們的收購提供資金，並且我們希望機會主義地利用 ATM 以有利的股價策略性地進入股票市場。這些傳統的資本來源，加上選定資產出售的收益，將為持續成長提供足夠的資本，並獲得有吸引力的收益率。

To wrap up, we declared our dividend for the second quarter and raised it to $0.4625 per common share. This equates to an annualized dividend of $1.85 per share. We are proud to have raised our dividend every quarter since the IPO.

最後，我們宣布了第二季的股息，並將其提高至每股普通股 0.4625 美元。這相當於每股年化股息 1.85 美元。自首次公開募股以來，我們每季都提高了股息，對此我們感到很自豪。

That takes care of the items I wanted to cover. So I will hand things off to Bill to discuss the numbers.

這照顧了我想要涵蓋的項目。所以我會把事情交給比爾來討論這些數字。

Thank you, Dave.

謝謝你，戴夫。

I will now provide more details on our second quarter financial performance. Let me start by detailing the impacts to our second quarter financials related to the geriatric inpatient behavioral hospital tenant that Dave described earlier.

我現在將提供有關我們第二季財務業績的更多詳細資訊。讓我先詳細介紹與戴夫之前描述的老年住院行為醫院租戶相關的對我們第二季度財務的影響。

Rental income in the second quarter was negatively impacted by the reversal of $1.9 million of rent, which includes approximately $900,000 of non-cash straight-line rents. Also, other operating interest in the second quarter was negatively impacted by the reversal of $1.4 million of interest. Combined, these items reduced total revenue in the second quarter by approximately $3.2 million to $27.5 million. Compared to the second quarter of 2023, total revenue declined by $294,000 and compared to the first quarter of 2024, total revenue declined by $1.8 million.

第二季的租金收入受到 190 萬美元租金逆轉的負面影響，其中包括約 90 萬美元的非現金直線租金。此外，第二季的其他營運利息也受到 140 萬美元利息沖銷的負面影響。這些項目加起來使第二季的總收入減少了約 320 萬美元，達到 2,750 萬美元。與 2023 年第二季相比，總收入下降了 29.4 萬美元，與 2024 年第一季相比，總收入下降了 180 萬美元。

It is important to note that of the $3.2 million impact to second quarter total revenue I just described, only approximately $1.5 million as a result of rental income and interest we expected to receive in the second quarter of 2024 from the geriatric inpatient behavioral hospital tenant with the remaining amount resulting from onetime out-of-period adjustments to prior period amounts outstanding, net of payments and security deposits.

值得注意的是，在我剛才描述的對第二季度總收入320 萬美元的影響中，只有約150 萬美元是由於我們預計在2024 年第二季度從老年住院行為醫院租戶處獲得的租金收入和利息而產生的。

In addition to the reversals of rent and interest, we recorded an $11 million credit loss reserve on the $22.7 million notes receivable from the tenant. This credit loss reserve reduced net income and is based on an estimated value of the underlying collateral which we will continue to monitor. But any future credit loss reserve, reversals, or increases will not impact FFO or AFFO.

除了租金和利息的轉回之外，我們還對租戶應收的 2,270 萬美元票據記錄了 1,100 萬美元的信用損失準備金。此信用損失準備金減少了淨利潤，並且基於我們將繼續監控的基礎抵押品的估計價值。但任何未來的信用損失準備金、轉回或增加都不會影響 FFO 或 AFFO。

Moving to expenses. Property operating expenses decreased by $219,000 quarter over quarter to $5.6 million since the first quarter had higher seasonal expenses at several properties. General and administrative expenses increased by $206,000 quarter over quarter to $4.8 million as a result of increased professional fees. And interest expense increased by $924,000 quarter over quarter to $6 million because of increased borrowings under our revolving credit facility to fund the $23.5 million of acquisitions during the second quarter of 2024 as well as the $27.7 million of acquisitions during the final week of the first quarter of 2024.

轉向開支。物業營運費用較上季下降 219,000 美元，至 560 萬美元，因為第一季幾處物業的季節性費用較高。由於專業費用增加，一般和管理費用環比增加 206,000 美元，達到 480 萬美元。利息支出環比增加 924,000 美元，達到 600 萬美元，原因是我們的循環信貸安排下的借款增加，為 2024 年第二季度 2350 萬美元的收購以及第一季度最後一周的 2770 萬美元的收購提供資金。 2024 年。

Moving to funds from operations. FFO was $11.6 million in the second quarter of 2024. On a quarter-over-quarter basis, FFO decreased from $14 million in the first quarter of 2024 and on a per diluted common share basis over these periods, FFO declined from $0.53 to $0.43 per share. These decreases are primarily the result of the $3.2 million of reversals of rent and interest described earlier. Adjusted funds from operations or AFFO which adjusts for straight-line rent and stock-based compensation totaled $14.3 million in the second quarter of 2024.

從營運轉向資金。2024 年第二季的 FFO 為 1,160 萬美元。以季度環比計算，FFO 從 2024 年第一季的 1,400 萬美元下降，以稀釋後每股普通股計算，FFO 從每股 0.53 美元下降至 0.43 美元。這些減少主要是前面所述的 320 萬美元租金和利息逆轉的結果。2024 年第二季度，調整後的營運資金或 AFFO（根據直線租金和股票薪酬進行調整）總計 1,430 萬美元。

On a quarter-over-quarter basis, AFFO decreased from $15.7 million in the first quarter of 2024 and on a per diluted common share basis over these periods, AFFO declined from $0.59 to $0.53 per share. These decreases are also primarily the result of the $3.2 million of reversals of rent and interest described earlier, net of approximately $900,000 of straight-line rent, which was added back and that is why you see a smaller impact to AFFO quarter over quarter than FFO. I'll note that even at $0.53, our dividend remains well covered with the current payout ratio of 87%.

以季度環比計算，AFFO 從 2024 年第一季的 1570 萬美元下降，以這些期間稀釋後的每股普通股計算，AFFO 從每股 0.59 美元下降到每股 0.53 美元。這些下降也主要是前面描述的 320 萬美元租金和利息逆轉的結果，扣除約 90 萬美元的直線租金（已加回），這就是為什麼您會看到 AFFO 季度環比影響小於 FFO 的原因。我要指出的是，即使是 0.53 美元，我們的股息仍然可以很好地覆蓋，目前的派息率為 87%。

That concludes our prepared remarks. Darwin, we are now ready to begin the question-and-answer session.

我們準備好的演講到此結束。達爾文，我們現在準備開始問答環節。

(Operator Instructions)

（操作員說明）

Rob Stevenson, Janney.

羅布史蒂文森，珍妮。

Could you talk a little bit about how many facilities in total this tenant has? And what percentage you represent of them? And what -- how these properties are performing versus maybe some of their others in case they were to file bankruptcy and look to give up some leases?

您能談談這個租戶總共有多少設施嗎？你佔他們的比例是多少？如果這些房產申請破產並放棄一些租約，那麼這些房產與其他房產相比表現如何？

Yeah. Hey, Rob, thanks for the question. We are -- this tenant has a total of six hospitals and so the buildings that they have with us is really the entire -- makes up the entire complexion of their business. So obviously, the reduction in census has been the catalyst for some of the issues that they've been having in paying rent and interest. But anyway, what -- did that answer your question?

是的。嘿，羅布，謝謝你的提問。我們——這個租戶總共有六家醫院，所以他們與我們一起擁有的建築物實際上是整個——構成了他們業務的整個組成部分。顯然，人口普查的減少是他們在支付租金和利息方面遇到的一些問題的催化劑。但無論如何，這回答了你的問題嗎？

Yeah. I mean I guess the follow-up to that would wind up being how much revenue would be at risk here if they were in bankruptcy from where we've adjusted to thus far? And are any of the acquisitions in the pipeline with this tenant?

是的。我的意思是，我猜後續的結果是，如果他們從我們迄今為止調整的情況來看破產了，那麼這裡的收入將面臨多少風險？該租戶是否正在進行任何收購？

There are no acquisitions in the pipeline with this tenant. The run rate amount of rent and interest associated with this tenant is approximately $1.5 million a quarter so that gives you a sense. And look, like I said, we've got consultants in there that we've worked with before that's familiar with this tenant and our intention and our thought is that, that consultant will be able to help affect the turnaround that should allow them to start paying us rent at some point. It's difficult when you're in the middle of the turnaround to identify exactly when that is, but we are on top of this on a weekly basis, monitoring progress.

目前尚未與該租戶進行任何收購。與該租戶相關的租金和利息的運行費率約為每季 150 萬美元，因此您可以了解一下。瞧，就像我說的，我們有以前合作過的顧問，他們熟悉這個租戶，我們的意圖和想法是，該顧問將能夠幫助影響週轉，這應該讓他們能夠在某個時候開始向我們支付租金。當您處於週轉過程中時，很難準確地確定具體時間，但我們每週都會對此進行監控，監控進度。

Okay. And I guess, how long were these guys on the watch list? I mean was this a slow process to get to here? Or was it basically a couple of weeks and it was like flipping a switch. Just trying to get a sense as to these days how quickly these problem assets are appearing on the radar screen, whether or not it's something that there's a little bit more warning for basically, you've come in one day and find out that they're having much more difficulties than you imagined?

好的。我猜，這些人在觀察名單上待了多久？我的意思是，到達這裡的過程很慢嗎？或者基本上是幾週的時間，就像按下開關一樣。只是想了解這些天這些問題資產出現在雷達屏幕上的速度有多快，無論是否有更多警告，基本上，有一天你進來並發現它們'你遇到的困難比你想像的要多得多嗎？

Well, one of the things I mentioned in the prepared remarks because this has been a relationship for the firm for a while. So for the last -- for 2000 -- 2020 to 2022 during COVID, they were very much on the watch list just given the nature of the business and the geriatric patient base and the challenges they were having ramping up the two new hospitals that we have financed.

嗯，這是我在準備好的發言中提到的一件事，因為這與公司的關係已經有一段時間了。因此，在過去的2000 年、2020 年至2022 年新冠疫情期間，考慮到業務的性質和老年患者基礎，以及他們在擴建兩家新醫院時所面臨的挑戰，他們在很大程度上處於觀察名單已融資。

And so they were on the watch list then they had fallen off the watch list in 2023, and the business is performing very, very well. Then with these management changes late in the fourth quarter of 2023, we started seeing some late rents and some concerns with regard to census and performance. And so they came back on the watch list in the first quarter. They made partial payments in the first quarter and second quarter, but ultimately, it wasn't enough to make us comfortable that although the rent was going to be collectible. And so that's why we moved them to cash basis.

所以他們在觀察名單上，然後在 2023 年從觀察名單上掉了下來，而且業務表現非常非常好。然後，隨著 2023 年第四季末的這些管理層變動，我們開始看到一些延遲租金以及對人口普查和績效的一些擔憂。因此，他們在第一季又回到了觀察名單上。他們在第一季和第二季支付了部分款項，但最終，儘管租金將被收取，但這還不足以讓我們感到放心。這就是我們將其轉為現金制的原因。

Okay. And speaking of the watch list, how significant is that overall today? And anybody else -- any other of the top tenants on that list today?

好的。說到觀察名單，今天整體來說有多重要？還有其他人嗎——今天名單上還有其他頂級租戶嗎？

None of the other top tenants are currently on our watch list. The watch list is similar today in terms of numbers than it was before. But obviously, very disappointing to us, it's such a large tenant on the heels of what we had to get through the Genesis Care last year is having this issue and these problems. But again, we feel good about the top 10 list currently. We're very well diversified beyond these other tenants. And so we feel good about the portfolio overall.

目前，我們的觀察名單上沒有其他頂級租戶。今天的觀察名單在數量上與以前相似。但顯然，令我們非常失望的是，繼去年我們必須經歷創世紀護理之後，又遇到了這個問題和這些問題。但同樣，我們對目前的前 10 名名單感覺良好。與其他租戶相比，我們的多元化程度非常高。因此，我們對整個投資組合感覺良好。

Okay. And then just one last one for me. Bill, how should we be thinking about the $0.53 of AFFO per share going forward? I know that, that didn't get adjusted as much as the FFO but is that -- is there other stuff that either has to come out of that or be added back to that in future quarters? Or is that still a ballpark run rate for where the company is today given the reductions with this one tenant.

好的。然後是我的最後一件事。Bill，我們該如何考慮未來每股 0.53 美元的 AFFO？我知道，這並沒有像 FFO 那樣得到調整，但是——是否還有其他東西必須從中產生或在未來幾個季度重新添加到其中？或者考慮到這一租戶的減少，這仍然是該公司目前的大致運作率嗎？

Yeah. I think until we see improvement from this tenant, we're in the right ballpark. I mean the short answer is of the charges we took in the second quarter that were out of period charges. You'd say approximately $750,000, $800,000 of AFFO should be added back on a run rate basis compared to where our second quarter AFFO was. Obviously, as we move forward, we don't provide guidance, but interest expense, G&A, other things, it will also be taken into account as far as what AFFO will be. But clearly, the biggest impetus to an increase quarter over quarter on an AFFO basis will be improved performance and the payment of rent and interest from this tenant.

是的。我認為，在我們看到該租戶的改善之前，我們的大致情況是正確的。我的意思是，簡短的回答是我們在第二季度收取的期間費用之外的費用。您可能會說，與我們第二季度的 AFFO 相比，應按運行率添加約 750,000 美元、800,000 美元的 AFFO。顯然，隨著我們的前進，我們不會提供指導，但利息費用、G&A、其他事情，也會考慮到 AFFO 的內容。但顯然，AFFO 季度環比增長的最大推動力將是該租戶的業績改善以及租金和利息的支付。

Alexander Goldfarb, Piper Sandler.

亞歷山大·戈德法布，派珀·桑德勒。

Dave, I mean I don't -- as you have this tenant, and obviously, as you said, it's on the heels of Genesis, clearly something you guys didn't need. But one, these were all deals that were done before you guys took over, not casting blame, but clearly, these were deals done years ago, not recently.

戴夫，我的意思是我不——因為你有這個租戶，而且顯然，正如你所說，它緊隨創世紀之後，顯然是你們不需要的東西。但第一，這些都是在你們接手之前完成的交易，不是指責，但顯然，這些交易是幾年前完成的，而不是最近完成的。

So as you look at the portfolio and at your underwriting, what are some of the lessons learned from Genesis and now here that as you look at your acquisition pipeline and existing tenants, you go, hey, maybe we want to kick these deals out or hey, you know what, we have other tenants that look like Genesis or this tenant in terms of payment history or coming up a little light in their envelope when they pay the monthly rent. What are some of the things that you've seen and reassessments of existing tenants and acquisition pipeline?

因此，當您查看投資組合和承銷業務時，您從 Genesis 中學到了哪些經驗教訓？你知道嗎，我們還有其他租戶，在付款歷史方面或在支付月租時在他們的信封上有一點亮光，看起來像Genesis 或這個租戶。您看到了哪些事情以及對現有租戶和收購管道的重新評估？

Thanks, Alex. That's a great question.

謝謝，亞歷克斯。這是一個很好的問題。

I will say, in the wake of Genesis Care in this latest situation, we have tightened our underwriting standards. The bar is higher, I will also tell you, you won't see us land at these levels to a single tenant, again, that just won't happen. So obviously, COVID was a unique situation. And everyone who went through it, we all went through it, especially the geriatric population, a very unique situation. It was -- but it drove significant borrowings from this tenant.

我想說的是，在 Genesis Care 在這種最新情況下，我們收緊了承保標準。我還要告訴你，門檻更高了，你不會看到我們在這些水平上登陸到單一租戶，同樣，這不會發生。顯然，新冠疫情是個特別的情況。每個經歷過這一切的人，我們都經歷過，特別是老年人，這是一個非常獨特的情況。是的，但它從這個租戶那裡帶來了大量的借款。

And at the end of the day, any slip in census had an impact on their ability to pay rent and interest. And so from our perspective, we're just going to be more rigorous with our underwriting, and you're just not going to see the same levels of loans to a single tenant going forward because honestly, that is not in sync with our diversification strategy as a firm. So and that's very important to us. So that is a core lesson here for sure.

歸根結底，人口普查的任何失誤都會影響他們支付租金和利息的能力。因此，從我們的角度來看，我們只會更加嚴格地承保，而且您不會看到未來向單一租戶提供相同水平的貸款，因為老實說，這與我們的多元化不同步作為一個公司的策略。這對我們來說非常重要。所以這肯定是這裡的核心教訓。

But as far as -- it's not just the loan that went bad, it was the tenant as well, and certainly it happened with Genesis. So does this mean that you want to shy away from doing portfolio deals and stick to single-asset deals or -- like how is this changing? And then also why even lend anything to a tenant? Why not just keep it at purely a rental relationship?

但就此事而言，不僅貸款壞了，租戶也壞了，而且 Genesis 也確實發生過這種情況。那麼，這是否意味著您想要迴避進行投資組合交易並堅持單一資產交易，或者——這種情況有何變化？那為什麼還要藉錢給租戶呢？為什麼不只是保持純粹的租賃關係呢？

Well, every situation is unique. And so sometimes there are competitive reasons. Sometimes there are very good reasons for us wanting to lend as part of an overall relationship. And what I would say, Alex, relative to portfolio deals, historically, we have been reluctant to do portfolio deals in a meaningful way. But going back to Genesis Care, look, that was a portfolio deal.

好吧，每種情況都是獨一無二的。所以有時會有競爭的原因。有時，我們有充分的理由希望將貸款作為整體關係的一部分。亞歷克斯，我想說的是，相對於投資組合交易，從歷史上看，我們一直不願意以有意義的方式進行投資組合交易。但回到 Genesis Care，你看，這是一項投資組合交易。

Ultimately, it wasn't a fun process, and you're disappointed that the holdco had -- was overleveraged and didn't perform. But ultimately, the performance at our facilities largely worked out. And it wasn't a fun process, but at the end of the day, it's important that we underwrite each individual market and each individual property because that is what is ultimately going to drive rent and interest payment to us, whether from that tenant or a new tenant. So I'm not going to say we won't do a portfolio deal because there could be opportunities for us to do portfolio deals but our underwriting standards are going to be more rigorous.

最終，這不是一個有趣的過程，而且你對控股公司過度槓桿化並且沒有表現感到失望。但最終，我們工廠的表現基本上取得了成功。這不是一個有趣的過程，但歸根結底，我們必須承保每個單獨的市場和每個單獨的財產，因為這最終將推動向我們支付租金和利息，無論是來自租戶還是來自租戶。租戶。因此，我不會說我們不會進行投資組合交易，因為我們可能有機會進行投資組合交易，但我們的承銷標準將會更加嚴格。

Okay. Just the final question is, obviously, the stock has taken a bit of a hit. Do you reconsider the committed acquisition pipeline? Or how does where the stock is now trading change the goal of getting the pipeline back up to that $130 million, $150 million a year?

好的。最後一個問題是，顯然，該股受到了一些打擊。您是否會重新考慮承諾的收購管道？或者，股票現在的交易情況如何改變將管道恢復到每年 1.3 億美元、1.5 億美元的目標？

Listen, we're very focused on looking at all sources of capital. We continue to have a modestly leveraged balance sheet. We don't think that this is going to impact in any way what we've committed to do in our pipeline. And actually, we recognize as a small REIT even though we are definitely going to be judicious with our capital, growth is what's going to drive our performance from a share price perspective, it's all about driving AFFO and FFO.

聽著，我們非常注重尋找所有資本來源。我們仍然擁有適度槓桿化的資產負債表。我們認為這不會以任何方式影響我們在管道中承諾要做的事情。事實上，我們認為自己是一家小型房地產投資信託基金，儘管我們肯定會謹慎對待我們的資本，但從股價的角度來看，成長將推動我們的業績，這一切都是為了推動 AFFO 和 FFO。

And so we're just going to be very strategic in how we do that, and we've got other levers than just the stock. We can do some capital recycling in the portfolio. We can borrow just given our leverage levels and the support from our banks. And so overall, we feel very positive in our ability to access the various markets to be able to continue to fund our growth.

因此，我們將在如何做到這一點上採取非常策略性的策略，而且我們還有其他槓桿，而不僅僅是股票。我們可以在投資組合中進行一些資本回收。只要考慮到我們的槓桿水平和銀行的支持，我們就可以藉款。總的來說，我們對進入各個市場、繼續為我們的成長提供資金的能力感到非常積極。

Michael Lewis, Truist.

邁克爾·劉易斯，真理主義者。

So Alex just asked one of the questions that I think has one of the more important questions, right? So the stock over the last 12 months was already down 18% or 20%. And I think investors were asking at what point is the cost of equity no longer acceptable to issue shares to fund new investments at nine handle cap rates.

所以亞歷克斯只是問了我認為更重要的問題之一的問題之一，對嗎？因此，該股在過去 12 個月裡已經下跌了 18% 或 20%。我認為投資者會問，在什麼時候，以九個上限利率發行股票為新投資提供資金的股權成本不再可接受。

It's obviously this morning, it's taken another leg down. I know it's a tough question to answer. You don't want to put yourself in a box. But when does the cost of equity become prohibitive because I think there's a danger here if you lose access to kind of that capital or that spread over your investment yield, so I don't know what more you could say on that. Maybe you already answered it.

顯然，今天早上，它又跌倒了。我知道這是一個很難回答的問題。你不想把自己放在一個盒子裡。但是，股權成本什麼時候會變得令人望而卻步，因為我認為，如果你無法獲得某種資本或分散在你的投資收益率上，就會存在危險，所以我不知道你對此還能說些什麼。也許你已經回答了。

Well, it is a tough one to answer. But what I would tell you is we're looking to make accretive acquisitions. And those acquisitions need to drive overall revenue and AFFO growth for the company. And so we're highly sensitive as shareholders in the company about doing a dilutive equity raise and doing that in the ATM.

嗯，這是一個很難回答的問題。但我要告訴你的是，我們正在尋求進行增值性收購。這些收購需要推動公司的整體收入和 AFFO 成長。因此，作為公司股東，我們對稀釋性股權融資以及在 ATM 機上進行的操作高度敏感。

And so we're going to be very mindful of that in terms of and as I just mentioned earlier, with the prior question, Michael, I mean, we've got opportunities within the portfolio to do some capital recycling to fund some growth. And so we do have other tools in our toolbox that will allow us to continue to grow without putting pressure on the stock. We recognize that, that's not good for us. And ultimately, it's not good for driving AFFO growth.

因此，正如我之前提到的，對於前面的問題，邁克爾，我們將非常注意這一點，我的意思是，我們在投資組合中有機會進行一些資本回收，以資助一些成長。因此，我們的工具箱中確實有其他工具，可以讓我們在不給股票帶來壓力的情況下繼續成長。我們認識到，這對我們不利。最終，這不利於推動 AFFO 的成長。

Bill, I don't know if you want to comment there.

比爾，我不知道你是否想發表評論。

No, I agree.

不，我同意。

Okay. Thanks.

好的。謝謝。

And then you talked about your expectations to hopefully, the consultant helps and the tenant gets paying again. Worst-case scenario, where the tenant doesn't recover, are these properties -- do you think they're relatively easy to re-tenant or sell or what kind of the plan would be. I don't mean to jump right for the worst case, but I think it's important to kind of judge what that might look like.

然後你談到了你的期望，希望顧問能夠提供幫助，租戶再次得到付款。最糟糕的情況是，租戶無法恢復，這些房產是否相對容易重新出租或出售，或者計劃是什麼樣的。我並不是想直接考慮最壞的情況，但我認為判斷最壞的情況很重要。

Yeah. So Michael, one of the benefits from having been in the healthcare services sector myself and Bill for a number of years is we know a lot of operators in this space. And obviously, we have some tenants that are operators that, that would be interested in these assets. The short answer without jumping to that scenario is there are many potential buyers that we think are operators that we think will be interested in these site hospitals. And there is a little bit of scarcity value to these businesses. And so again, the business in these individual hospitals, I think would be attractive to an individual potential buyer.

是的。因此，邁克爾，我和比爾在醫療保健服務行業工作多年的好處之一是我們認識這個領域的許多運營商。顯然，我們有一些租戶是營運商，他們會對這些資產感興趣。簡短的回答是，我們認為有許多潛在買家是營運商，我們認為他們會對這些現場醫院感興趣。這些業務有一點稀缺價值。因此，我認為這些個別醫院的業務對個人潛在買家來說會很有吸引力。

And Michael, it's Bill.

邁克爾，是比爾。

I'll add that we have not seen and we do not believe there's been a change in the competitive landscape in these local markets where this tenant operates such that it is more of an execution issue. And so I think that helps preserve what is the value of these properties as we think about it.

我要補充一點，我們還沒有看到，也不相信該租戶經營的這些當地市場的競爭格局發生了變化，這更多是一個執行問題。因此，我認為這有助於保護我們所思考的這些財產的價值。

Okay.

好的。

Because for whatever its worth, I mean, we do see REITs and other healthcare sectors lose significant tenants and the stocks don't take it like this, I think it has to do with being able to reposition assets.

因為無論其價值如何，我的意思是，我們確實看到房地產投資信託基金和其他醫療保健行業失去了大量租戶，而股票則不會這樣認為，我認為這與能夠重新配置資產有關。

My last question, just on the acquisition pipeline, I think the deal that you closed in the first quarter, you had already mentioned on the -- or I'm sorry, closed in the second quarter, you had already mentioned on the first quarter call. So has there not been any new activity over the last few months? And does the pipeline still seem full? Do you think you're still on target for your acquisition goals for the year?

我的最後一個問題，關於收購管道，我認為您在第一季度完成的交易，您已經在 - 或者對不起，在第二季度完成的交易，您已經在第一季度提到過稱呼。那麼過去幾個月沒有任何新的活動嗎？管道看起來還滿嗎？您認為您仍然能夠實現今年的收購目標嗎？

We have continued to be active seeing a number of deals. We've got term sheets outstanding, as I mentioned in the prepared remarks, sometimes we've seen in the past where closings are a little bit slower in the third quarter, just the reality of -- some are in vacation schedules, et cetera.

我們繼續積極地看到一些交易。正如我在準備好的發言中提到的那樣，我們的條款清單尚未完成，有時我們過去看到第三季度的成交速度有點慢，只是現實 - 有些是在假期安排中，等等。

But we do think that hitting our acquisition target is certainly still achievable in the balance of the year. And like I said, I think we're still seeing good activity from an acquisition standpoint, which doesn't always translate into closed deals, but it's certainly better than not seeing the activity. So yes, we still feel like that that's achievable.

但我們確實認為，在今年剩餘的時間裡，實現我們的收購目標肯定還是可以實現的。正如我所說，我認為從收購的角度來看，我們仍然看到了良好的活動，這並不總是轉化為完成的交易，但這肯定比沒有看到活動更好。所以，是的，我們仍然覺得這是可以實現的。

And Michael, I'll note, we did include that we closed a $6.2 million property early in the third quarter here. So it didn't show up in the second quarter closed numbers, but we did mention it in our investor presentation that we did close an additional property early this quarter, just this month.

我要指出的是，邁克爾，我們確實在第三季初關閉了價值 620 萬美元的房產。因此，它沒有出現在第二季度的成交數據中，但我們在投資者介紹中確實提到，我們確實在本季度初（就在本月）關閉了另一處房產。

(Operator Instructions)

（操作員說明）

Wes Golladay, RBC Capital Markets.

Wes Golladay，加拿大皇家銀行資本市場部。

Hey, good morning, guys. It's actually Baird Capital.

嘿，早上好，夥計們。它實際上是貝爾德資本。

When you look at the lease expiration schedule, you have $107 million of rent annually. Is that include the tenant that is having issues right now? And is that a cash number?

當您查看租約到期時間表時，您每年的租金為 1.07 億美元。這包括現在有問​​題的租戶嗎？那是現金號碼嗎？

I have to look. So I would think that it would include those leases in the number, but those leases that we have with the tenant on -- yes, that's expired in the near term. The lease maturities of the tenant we've been discussing is between 2030 and 2036. So no upcoming maturities with that tenant.

我得看看。因此，我認為它將這些租約包括在數字中，但我們與租戶簽訂的那些租約 - 是的，這些租約將在短期內到期。我們一直在討論的租戶的租賃期限是在2030年至2036年之間。因此該租戶沒有即將到期的合約。

Okay. I just want to make sure the $107 million incorporates that. And then when you look at what they're paying on cash accounting now, would that -- did they pay anything in the second quarter?

好的。我只是想確保 1.07 億美元能夠包含這一點。然後，當你看看他們現在在現金會計上支付的費用時，他們會在第二季支付任何費用嗎？

Just a little bit, not much. Just some small payments. And we're not necessarily expecting to get meaningful payments in the third quarter either. I mean, they're in the middle of this turnaround, so yeah.

只是一點點，不多。只是一些小額付款。我們也不一定期望在第三季獲得有意義的付款。我的意思是，他們正處於轉變之中，所以是的。

Okay. And then when you look at the line of credit, the utilization is getting higher, but then you could probably issue another term loan. How are you looking at that?

好的。然後，當您查看信用額度時，利用率會越來越高，但您可能可以發放另一筆定期貸款。你怎麼看？

Yeah. We had $41 million available under our revolver at the end of the quarter. The next maturity is not until March of 2026. But typically, what we do is when we get within a year or so of those maturities look to term out those revolver borrowings. And so we'd anticipate taking a look at that, and again, have had success with our bank group doing that historically. And so we continue to evaluate that.

是的。截至本季末，我們的左輪手槍下有 4,100 萬美元的可用資金。下次到期要到 2026 年 3 月。但通常情況下，我們所做的是，當我們在一年左右的期限內到期時，我們會考慮償還這些左輪借款。因此，我們預計會對此進行研究，並且我們的銀行集團在歷史上已經成功地做到了這一點。所以我們繼續評估這一點。

Jim Kammert, Evercore.

吉姆·卡默特，Evercore。

Do you have the ability under the lease with this tenant in question to replace them, meaning they're in default. I presume they're not paying the rent. Obviously, why wait in other words, and if these are desirable assets, try to parallel path and look for a replacement tenant or a new owner, I mean, probably to new operator?

根據與該租戶的租約，您是否有能力更換它們，這意味著他們違約了。我猜他們不付房租。顯然，換句話說，為什麼要等待，如果這些是理想的資產，請嘗試平行路徑並尋找替代租戶或新所有者，我的意思是，可能是新的運營商？

Hey Jim, thanks for the question.

嘿吉姆，謝謝你的提問。

Yes, we absolutely do have the ability to replace them. They're obviously in default of our lease and we are taking multiple paths. We're not just wed to the consultants, and we're looking at other options. But given the fact that this tenant has outstanding loans to us, and we think if you go back in 2023 and see how this tenant was able to perform and pay their rent and interest, certainly, from our perspective, we want to try to preserve options with this tenant.

是的，我們絕對有能力取代它們。他們顯然違約了我們的租約，我們正在採取多種途徑。我們不僅與顧問聯姻，我們還在尋找其他選擇。但考慮到該租戶有未償還的貸款給我們，我們認為，如果你回到 2023 年，看看該租戶如何履行並支付租金和利息，當然，從我們的角度來看，我們希望盡力保留與該租戶的選項。

But I will say that they're on a short lease. And like I said, we've got a number of folks that we think could operate these facilities. And so we're -- obviously, we're aligned. We want to make sure that we get a paying tenant in there. Hopefully, it's this tenant. But if it's not, we'll evaluate others.

但我會說他們是短期租約。就像我說的，我們認為有很多人可以操作這些設施。所以我們——顯然，我們是一致的。我們想確保那裡有一個付費租戶。希望是這個房客。但如果不是，我們會評估其他人。

Great. Because I'm just trying to reconcile that with the prior comments, but that's very helpful. Thanks. You've taken basically a 50% reserve against the loan balance and if these are just basically the business entire network of hospitals keep you salable, just trying to understand why such a draconian hit then on the receivable. If there's any additional color you can provide there, it seems inconsistent with the premise that these are salable marketable assets. Maybe just going through cycle sell it?

偉大的。因為我只是想將其與之前的評論相協調，但這非常有幫助。謝謝。你基本上已經對貸款餘額採取了 50% 的準備金，如果這些基本上是整個醫院網絡的業務讓你保持可銷售，只是想了解為什麼應收賬款會受到如此嚴厲的打擊。如果您可以在那裡提供任何其他顏色，這似乎與這些是可銷售的可銷售資產的前提不一致。也許只是經歷週期出售？

Yeah. No, listen, I hear you. It's just one of those processes you have to go through that CECL requires you to go through, and it's a pretty structured accounting process that we have to take. And so that's what we went through.

是的。不，聽著，我聽到了。這只是 CECL 要求您必須經歷的流程之一，而且這是我們必須採取的非常結構化的會計流程。這就是我們所經歷的。

And look, at the end of the day, we're trying to come up with a value for the business and be conservative given the current environment. And so that's what you're seeing there in terms of the reserve. But there's no question. We think that there is value in the operations here. And we're trying to stabilize the business and make sure we can drive as much value from those operations as we can.

看看，歸根結底，我們正在努力得出業務價值，並在當前環境下保持保守。這就是你所看到的儲備情況。但毫無疑問。我們認為這裡的運作是有價值的。我們正在努力穩定業務，並確保我們能夠從這些業務中獲得盡可能多的價值。

Great.

偉大的。

So you worked it with your accountants and so CECL really did drive that determination. It was not a in-house?

所以你和你的會計師一起工作，所以 CECL 確實推動了這個決心。不是內部的嗎？

Yes.

是的。

Okay. Perfect. That's helpful. Thank you.

好的。完美的。這很有幫助。謝謝。

Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Dave Dupuy for any closing remarks.

謝謝。女士們先生們，我們的問答環節到此結束。我想將會議轉回戴夫杜普伊 (Dave Dupuy) 發表閉幕詞。

Listen, thank you, operator, and thank you, everyone, for joining us this morning. We hope everyone has a good day, and look forward to talking to you next quarter. Thank you.

聽著，謝謝你，接線員，也謝謝大家今天早上加入我們。我們希望每個人都有美好的一天，並期待下個季度與您交談。謝謝。

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

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。