Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Did you list your areas of focus in order of priority, and what is the timeframe for implementing these changes? A: The areas of focus are not necessarily in order of priority. The main objective is to complete portfolio optimization and deleveraging in the near term, ideally by 2026. Leasing improvements will take two to three years to reach stabilized occupancy levels.
Q: How do you feel about the joint venture (JV) model, and is there a plan to unwind it over time? A: We value JVs as part of our toolkit and have strong relationships with our partners. We aim to grow JVs through acquisitions rather than contributing more assets. The focus is on selling 100% of assets in markets where we lack scale.
Q: Is the current guidance "Pete stamp approved," or will it be refined as you incorporate your strategic plans? A: We have reaffirmed guidance after reviewing the 2025 forecast. The forecast includes $400 million to $500 million in sales. Efficiencies are expected to offset any dilution from asset sales and deleveraging.
Q: Are you seeing any impact from potential federal healthcare budget cuts or policy changes on your tenants? A: It's too soon to say definitively, but outpatient medical is a resilient asset class. We are monitoring policy risks and working with lobbyists to stay informed about developments in Washington, D.C.
Q: How do you balance disposition-driven portfolio optimization and deleveraging with earnings impact over the next few years? A: We are mindful of the cap rates and do not have to be price takers. While asset sales may imply dilution, we aim to offset this through lease escalators, efficiencies, and leasing upside.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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