DHC 2026财年第三季度业绩电话会：SHOP净营业收入飙升50.4%，上调业绩指引

核心要点

• Diversified Healthcare Trust公布2026财年第三季度标准化运营资金（FFO）为3070万美元，即每股0.13美元，高于去年同期的每股0.02美元。调整后房地产EBITDA（Adjusted EBITDAre）同比增长28.4%至7340万美元。
• 综合同店现金基准净营运收入（NOI）增长25.6%至7790万美元。高龄住宅运营业务（SHOP）同店NOI大涨50.4%至4800万美元，主要得益于入住率提升200个基点至84.4%，且月均租金增长5.2%。
• DHC将2026财年SHOP同店NOI指引的中值上调500万美元，至1.9亿至2亿美元区间。同时，公司将经常性资本支出指引的中值下调1000万美元，至9000万至1.05亿美元。
• 公司已将位于科罗拉多州的七家专业护理设施转为与The Ensign Group签订的15年期绝对净租赁合同。首年合同租金约为800万美元，而此前12个月的NOI仅为510万美元。
• 截至季末，流动资金为2.61亿美元，包括1.11亿美元现金和1.5亿美元未提用的担保循环信贷额度。净债务对年化调整后EBITDAre的比率从一年前的10.7倍降至8.2倍，若剔除绩效管理费则为7.4倍。
• 管理层预计，随着运营方缩小与各自NIC（美国全国高级住宅和护理投资交流中心）市场表现的差距，SHOP入住率仍有500-600个基点的潜在提升空间。

关键财务数据

自2026财年第三季度起，标准化FFO和调整后EBITDAre包含了根据美国通用会计准则（GAAP）计提的预估绩效管理费。历史期间业绩已按相同基准进行重述。本季度包含540万美元（即每股0.02美元）的已计提绩效费；今年迄今累计金额为2200万美元（即每股0.09美元）。管理层表示，该报表列报变更不影响GAAP财务结果或现金流。

业务与运营表现

SHOP仍是DHC的主要增长引擎。同店收入同比增长5.8%，而运营费用基本持平。餐饮采购优化举措使支出较上年减少约130万美元。

环比来看，SHOP同店NOI减少了400万美元，降幅为7.6%。管理层将此归因于第二季度220万美元的一次性费用收益未在第三季度重现、第三季度约100万美元的非经常性费用以及200万美元的季节性公用事业成本。若剔除这些项目，第三季度同店NOI本应较第二季度增长2.5%。

DHC已批准13个社区的改造项目，将未充分利用或已关闭的专业护理空间转换为约356套独立生活、协助生活和记忆照护单元。管理层预计稳定后的现金回报率将达到15%左右或更高。项目预计于2027年开工，部分单元预计将于同年下半年交付。

涵盖由传统运营方管理的76个SHOP社区的新管理协议预计将于2027年1月1日生效。DHC预计这些协议最初将每年节省约200万美元成本，同时使运营方的激励机制与股东利益保持更加紧密的一致。

位于科罗拉多州的七家专业护理设施已于10月1日转交给The Ensign Group，并签订了为期15年的绝对净租赁协议。该租赁协议包含年度CPI递增条款，并将报销、劳动力和资本风险转移给租户。按备考基准计算，管理层表示该架构本可使第三季度综合SHOP利润率提高约80个基点。

在医疗办公和生命科学物业组合方面，DHC完成了约13万平方英尺的租赁，租金比此前水平高出25%，加权平均租赁期限为9.7年。在两家占用约21.3万平方英尺的租户于7月1日退租后，该组合的总入住率从第二季度的92.2%降至88.4%。

DHC已达成协议，拟以1050万美元出售一家12.6万平方英尺的空置物业，并正在评估另外两家总计约23.2万平方英尺物业的要约。这三处资产在第三季度产生了69万美元的负NOI，年化计算近280万美元。

管理层业绩指引

DHC将2026财年SHOP同店NOI指引上调至1.9亿至2亿美元，其中值增加500万美元。修改后的展望假设：

• SHOP运营费用增长2.3%，低于此前预期的2.5%。
• 月均租金增长5.6%，高于此前预期的5.5%。
• 入住率增长200个基点，保持不变。
• 收入增长6.3%。

更新后的全年指引还包括：

标准化FFO指引包含了2930万美元（即每股0.12美元）的预估绩效管理费。SHOP NOI的增加使展望每股增加了约0.02美元，而绩效费使其每股减少了0.12美元。管理层提醒称，最终的绩效费将取决于截至12月31日DHC相对于其基准指数的总股东回报率，且可能与截至9月30日计提的金额存在重大差异。

第四季度的业绩预计将包含整季度来自Ensign租金的约200万美元现金NOI。管理层表示，交易本身并不是上调SHOP NOI指引的原因，上调指引反映的是SHOP更强劲的底层业务表现。

风险与关注焦点

7月份租户退租后，医疗办公和生命科学物业的入住率有所下降。此外，位于加利福尼亚州弗里蒙特（Fremont）的一家年租金收入达220万美元的生命科学租户预计将于11月底退租。

DHC的下一笔到期债务为2028年2月到期的5亿美元高级无担保票据。管理层指出，鉴于拥有40亿美元的无担保资产、不断改善的SHOP现金流以及更强劲的信用指标，公司有能力应对该笔债务到期。

针对性的入住让利优惠有助于加速提升SHOP入住率，但导致月均租金环比持平。管理层预计高额让利优惠不会长期持续，并预计随着社区趋于稳定，租金增长将变得更加明显。

预估绩效管理费的计提可能会随着DHC股价及相对总股东回报率的变化而逐季波动，从而给标准化FFO和调整后EBITDAre带来不确定性。

分析师问答集锦

管理层表示，经常性资本支出可能会在2027年和2028年进一步下降，长期目标更接近每单元3000美元。

资本配置仍集中于DHC的现有投资组合，特别是专业护理侧翼的转换改造。资产出售收益可能用于再投资或去杠杆，而收购的优先级较低。管理层表示，包括未提用的1.5亿美元信贷额度在内的当前流动资金足以满足计划中的投资需求。

第三季度约100万美元的非经常性费用包括销售与使用税结算调整以及坏账增加。管理层预计这些项目不会在第四季度或未来再次出现。

管理层表示，入住让利优惠是选择性实施的，而非覆盖整个投资组合的永久性策略。公司预计2027年租金将持续改善，并将进一步受益于费用削减和创收举措。

业绩电话会议完整文字记录

完整财报电话会议逐字稿

管理层陈述

Operator

Good morning, and welcome to the Diversified Healthcare Trust Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matthew Murphy, Manager of Investor Relations. Please go ahead.

Matt Murphy

Good morning. Joining me on today's call are Chris Pilato, President and Chief Executive Officer; and Matt Brown, Chief Financial Officer and Treasurer. Today's call includes a presentation by management followed by a question-and-answer session with sell-side analysts.

Please note that the recording and retransmission of today's conference call is strictly prohibited without the prior written consent of the company. Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws.

These forward-looking statements are based upon DHC's beliefs and expectations as of today, Tuesday, November 3, 2026. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call. other than through filings with the Securities and Exchange Commission, or SEC.

Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements.

In addition, this call may contain non-GAAP numbers, including normalized funds from operations or normalized FFO, net operating income or NOI, cash basis net operating income or cash basis NOI and adjusted EBITDAre. A reconciliation of these non-GAAP measures to net income is available in our financial results package which can be found on our website at www.dhcreit.com.

Beginning this quarter, our calculation of normalized FFO and adjusted EBITDAre include estimated incentive management fees accrued under GAAP, and prior periods have been recast to conform to this presentation. And finally, we will be providing guidance on this call, including NOI.

We are not providing a reconciliation of these non-GAAP measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all. such as gains and losses or impairment charges related to the disposition of real estate. With that, I would now like to turn the call over to Chris.

Michael Kodesch

Thank you, Matt. Good morning, everyone, and thank you for joining our call today. Our third quarter results reflect continued execution on the strategy we have laid out for the year. That strategy shows up across stronger operating results in our SHOP portfolio, active optimization of how we own and operate individual assets and a steadily improving financial profile.

Following the market close yesterday, DHC reported normalized FFO of $30.7 million or $0.13 per share and adjusted EBITDAre of $73.4 million, an increase of 28.4% year-over-year. Same property cash basis NOI increased 25.6% to $77.9 million and consolidated NOI increased 27.5% to $80.8 million.

Before going further, I want to note a change in our presentation Beginning this quarter, adjusted EBITDA and normalized FFO include incentive management fees as recognized under GAAP and prior periods have been recast on the same basis.

On a comparable basis, normalized FFO increased from $0.12 per share in the second quarter and from $0.02 per share a year ago and adjusted EBITDA increased both sequentially and year-over-year. The momentum in our portfolio is also reflected in our outlook. Today, we are raising our same-property shop NOI guidance by $5 million at the midpoint and lowering our expected SHOP recurring capital expenditures by $10 million.

Matt will walk through the full guidance update, including the effect of the incentive management fee change. Let me start with our shop segment. Same property NOI increased 50.4% year-over-year to $48 million, this growth was driven by a 200 basis point increase in occupancy to 84.4% and a 5.2% increase in average monthly rate which together expand same-property NOI margin by 470 basis points to 15.8%.

We used targeted move in incentives this quarter to accelerate occupancy which kept average monthly rate flat sequentially. As communities stabilize, we expect to reduce these concessions and allow rate growth to flow through more fully. Expense discipline also continues with our dietary procurement initiatives contributing to an expense reduction by approximately $1.3 million compared with the prior year.

Importantly, we believe significant embedded upside remains with same-property occupancy at 84.4%, we estimate 500 to 600 basis points of occupancy upside as our operators close the occupancy gaps between our communities and their respective NIC markets. Beyond occupancy, we continue to reposition underutilized and close skilled nursing weeks into independent living, assisted living and memory care units.

We have now approved projects across 13 communities that we expect will add approximately 356 units. We expect these investments to generate stabilized cash returns in the mid-teens or better while converting vacant space into revenue-generating units.

Finally, we are putting new management agreements in place across 76 shop communities that are managed by our legacy operators. Implementation is expected on January 1, 2027. These agreements extend the operator framework we initiated across our transition communities in 2025, including more closely aligned incentive structures and appropriately sized base management fees.

We expect them to initially generate approximately $2 million of annual cost savings while further aligning operator incentives with shareholder interests. Turning to our portfolio optimization strategy. Over the past 2 years, DHC has repositioned its portfolio through asset sales, operator transitions and targeted capital investment.

With much of that foundation in place, we are increasingly focused on optimizing individual assets. The clearest example this quarter is our transition of 7 skilled nursing facilities in Colorado to a 15-year triple-net lease with the Ensign Group effective on October 1.

This transition does 2 primary things for us. First, it increases cash flow. First year contractual rent is approximately $8 million with CPI annual escalators, which compares with $5.1 million of NOI over the prior 12 months or about $3.5 million after capital expenditures. Second, it sharpens our SHOP portfolio.

Skilled nursing relies primarily on government reimbursement and is a more labor-intensive which is why these facilities generated only about a 5.8% margin for the quarter. Skilled nursing is also more commonly under triple net leases with specialized operators. The new structure shifts reimbursement, labor and capital exposure to the tenant leads our shop portfolio more focused on private pay senior housing and on a pro forma basis, would have lifted our third quarter consolidated shop margin by about 80 basis points.

We are applying the same asset-by-asset approach to operator alignment. In September, we provided notice to transition 6 shop communities in Georgia, representing 486 units to a new manager, which we expect to begin as early as the fourth quarter. This consolidates these communities with an operator that has deep regional expertise and fits the operator framework we have built across our transition portfolio. We look forward to working closely with them to ensure a seamless transition.

Turning to our medical office and life science portfolio. Leasing activity remained healthy during the quarter. We completed approximately 130,000 square feet of leasing at rental rates 25% above prior rents with a weighted average lease term of 9.7 years. As discussed on our second quarter earnings call, 2 tenants representing approximately 213,000 square feet vacated on July 1, and and total occupancy declined to 88.4% from 92.2% in the prior quarter.

Near-term expirations are limited. Through year-end, $3.3 million of annualized rental income or 2.1% of the total is scheduled to expire. This includes $2.2 million from a life science tenant in Fremont, California that we expect to vacate at the end of November and we are actively marketing that space for lease.

The portfolio's weighted average remaining lease term was approximately 5.1 years at quarter end. As part of our capital recycling efforts, we are actively pursuing disposition opportunities. As of yesterday, we were under agreement to sell 1 vacant property consisting 126,000 square feet for $10.5 million, and we are valuing offers on 2 additional properties totaling approximately 232,000 square feet.

Together, these 3 properties generated negative NOI of $690,000 during the quarter or nearly $2.8 million annually, selling them eliminate that drag and provides capital for reinvestment. Looking ahead, our path to earnings growth is embedded in our existing portfolio. Several drivers are already in motion for 2027, a full year rent from the Ensign lease approximately $2 million of annual savings from our new shop legacy management agreements effective January 1, skilled nursing ROI conversion projects, adding approximately 350 units and the sale of nonearning medical office properties.

Most significant is the continued improvement in shop occupancy and rate on rate concessions normalize. Our third quarter results show this strategy is working with stronger shop operations, active optimization of individual assets and improving financial profile and a higher shot NOI outlook for the year.

These results are clearly resonating with investors at DHC has been the top-performing REIT in the U.S. over the past 3 years, with a total shareholder return in excess of 277% and we remain confident in our trajectory and in our ability to deliver sustainable earnings growth and long-term value for our shareholders. With that, I'll turn the call over to Matt.

Matthew Brown

Thanks, Chris, and good morning, everyone. Before I review our results, I would like to walk through a change to how we present our non-GAAP financial measures. The SEC recently provided its interpretation that incentive management fees accrued under GAAP should be included in normalized FFO and adjusted EBITDAre.

Historically, we excluded the incentive fee in these measures. While we believe our prior approach was appropriate and supported period-to-period comparability, we have adopted the SEC's interpretation and changed our presentation. Beginning this quarter, normalized FFO, adjusted EBITDAre and CAD include estimated incentive management fees as they are accrued under GAAP, and we have recast prior periods to conform.

To be clear, this is a change in presentation only. It does not affect our GAAP results or our cash flows, and it does not change how the incentive fee is calculated or the amount, if any, that would ultimately be payable to RMR because the fee is based on DHC's total shareholder return relative to a benchmark index over a 3-year period ending December 31, the accrual will fluctuate from quarter-to-quarter with our share price.

For the third quarter, normalized FFO and adjusted EBITDA include $5.4 million or $0.02 per share of accrued incentive fees, and year-to-date, we have accrued $22 million or $0.09 per share. Page 8 of our earnings presentation includes a bridge to previously issued guidance. We believe this bridge will assist our investors with comparability between our revised normalized FFO and adjusted EBITDA calculations from prior guidance.

During the third quarter, our normalized FFO was $30.7 million or $0.13 per share, and our adjusted EBITDA was $73.4 million, representing a 28.4% increase year-over-year. Our third quarter results continue to show the earnings power of our SHOP assets, the cash-generating ability of our business and a significantly stronger balance sheet than a year ago.

During the third quarter, consolidated same-property cash basis NOI was $77.9 million, a 25.6% increase year-over-year, Shop continues to drive this growth with same-property NOI increasing 50.4% year-over-year to $48 million and same-property NOI margin expanding 470 basis points to 15.8%. This improvement came from both the top line and expense side.

Same property shop revenue increased 5.8% year-over-year, driven by a 200 basis point increase in occupancy to 84.4% and and 5.2% growth in average monthly rate. At the same time, same property operating expenses were essentially flat year-over-year and expense core declined 30 basis points as our operators continue to capture the dietary maintenance and labor savings we discussed last quarter.

Sequentially, Shop Same property NOI decreased $4 million or 7.6%, driven by second quarter results that included approximately $2.2 million of onetime expense benefits that did not recur. Additionally, the third quarter includes approximately $1 million of nonrecurring expenses and $2 million of higher utility costs due to typical seasonality.

Excluding these items, third quarter same property NOI would have been 2.5% higher than the second quarter. Importantly, same property occupancy increased 130 basis points sequentially, our largest quarterly gain this year, which supports our view that the occupancy ramp on our transition communities is well underway. In our medical office and life science portfolio, same-property cash basis NOI was $22.9 million, a 1.6% decrease year-over-year.

This primarily reflects the previously disclosed tenant who vacated effective July 1 and which also drove the 120 basis point sequential decline in same-property occupancy to 94.5%. Third quarter G&A expense of $14.6 million includes $5.4 million of estimated incentive management fees, as I've discussed, and $2.2 million of noncash share-based compensation.

Excluding these items, G&A was $7 million, consistent with the second quarter. During the quarter, we invested $28.9 million of capital, including $22.6 million into our shop communities and $6.3 million into our medical office and life science portfolio. Year-to-date spending of $76.5 million is $32.1 million or approximately 30% lower than the same period in 2025.

We are reducing our 2026 recurring CapEx guidance by $10 million at the midpoint to $90 million to $105 million. At quarter end, we had total liquidity of $261 million, including $111 million of cash our undrawn $150 million secured revolving credit facility. Net debt to annualized adjusted EBITDAre was 8.2x, a 2.5x reduction from a year ago. This calculation now includes incentive fees, which added 0.8x, excluding them, leverage was 7.4x, within our 6.5 to 7.5x target range.

Adjusted EBITDAre to interest expense improved to 2x from 1.2x a year ago, and we remain comfortably in compliance with all of our bond covenants. Our next debt maturity is our $500 million of senior unsecured notes due February 2028 with $4 billion of unencumbered assets representing over 64% of our portfolio, growing SHOP cash flow and steadily improving credit metrics we believe we are well positioned to address this maturity.

Turning to full year 2026 guidance. Excluding the presentation change regarding estimated incentive fees, we are raising our SHOP same-property NOI guidance by $5 million at the midpoint to $190 million to $200 million, and that increase flows through to adjusted EBITDA and normalized FFO.

The increase reflects lower expected operating expense growth of 2.3% compared with 2.5% previously an average monthly rate growth of 5.6%, up from 5.5% and with occupancy growth unchanged at 200 basis points and revenue growth of 6.3%. It should also be noted that for the 9 months ended September 30, same-property shop NOI was $144.3 million.

Separately, adjusted EBITDAre and normalized FFO guidance now includes estimated incentive management fees of $29.3 million or $0.12 per share. Netting the 2, normalized FFO guidance moves to $0.46 to $0.52 per share from $0.56 to $0.62, up $0.02 from the SHOP NOI increase and down $0.12 for the estimated incentive fee.

The final amount, if any, will be based on our total return relative to the benchmark index through December 31 and could differ materially from the amount accrued as of September 30. Updated guidance ranges are as follows: $2 million to $328 million of same-property NOI, adjusted EBITDAre of $276 million to $291 million, normalized FFO of $111 million to $126 million or $0.46 to $0.52 per share and recurring capital expenditures of $90 million to $105 million which is a reduction of $10 million at the midpoint, as I previously discussed.

Fourth quarter results will also include a full quarter of Ensign Rent for the 7 skilled nursing facilities, which will contribute approximately $2 million of cash NOI. We are confident in our updated full year guidance, and we are building momentum into 2027. We will share our 2027 guidance on our next earnings call which will include changes to our shop segment, mainly driven by the 7 skilled nursing facilities now leased to Ensign being presented in our -- all Other segment. That concludes our prepared remarks. Operator, please open the line for questions.

Operator

[Operator Instructions] Our first question today is from Henry Newell with RBC Capital Markets.

分析师问答

Unknown Analyst

Just hoping you could touch on the updated CapEx outlook briefly. Should we expect really this updated outlook to be a run rate moving forward into '27 and '28. Or is there any reason why we should expect recurring CapEx to decrease in '27 and '28.

Unknown Executive

Yes, it's a good question. I could see it decreasing a little bit into 2027 and 2028. We've been targeting closer to 3,000 per unit as we look forward. So we do expect that to continue to kind of come down as it has been over the last few years.

Michael Kodesch

Wonderful. And then just more generally, how are you viewing your different sources of capital at the moment? Is the current leverage profile and ongoing concern? And do you think you'll continue to finance CapEx or maybe any acquisitions with dispositions or something else moving forward? .

On the latter part of the question, I think right now, most of the investment we plan to make is within the existing portfolio. We've talked about the conversion of closed skilled nursing wings and that being kind of a priority given the returns that come from that profile. So that will be kind of top priority.

We are selling some assets, which we highlighted. I don't think the overall proceeds are overly material, but nonetheless, that will provide optionality for reinvestment to either delever or again, that's part of the flow skilled nursing wing strategy and then maybe in kind of small select cases considering whether or not acquisition makes sense, but I think that's kind of last aligned. So right now, it's really focused on the existing portfolio and kind of the embedded upside opportunities that we see and then Matt.

Yes. Just to add to that on leverage, leverage has been on a nice decline as we've seen the SHOP performance significantly improve over the last 15 to 18 months, and our trajectory should prove that, that will further decline as we move beyond 2026.

And as it relates to just kind of capital and liquidity for the things that we're focused on, which, as Chris mentioned, is mostly in our existing portfolio. We have adequate liquidity to continue making those investments. We have the $150 million credit facility. We have not drawn on that. So that produces us with sufficient liquidity for us.

Operator

[Operator Instructions] The next question is from John Massoca with B. Riley.

Unknown Analyst

Maybe just a quick clarification. With regards to the FLIR 26 guidance, does that include the positive impact you're expecting to NOI from the Ensign transaction?

Michael Kodesch

Yes. I mean it's factored in that we're going to receive $2 million in the fourth quarter. For the 9 months ended September, we've received a little bit over $4 million of NOI there. So there's some moving pieces as it relates to the change, but it is included. Is that part of where the increased shop NOI expectations are coming? Or is that something that was maybe kind of previously contemplated in the guide?

No, it's unrelated to that change in structure. -- on those skilled nursing facilities. But we've been trending towards the higher end of our SHOP NOI guidance for the first several quarters. And we're just shy of $145 million year-to-date through 9 months. So we really have added conviction in our SHOP results, and that's really the driver of the $5 million increase to the guide on this call. .

Unknown Executive

And John, I would just add that going back to the enzyme. The proceeds from the lease we get for the quarter in Q4 is more or less equivalent to what we would have gotten under the RIDEA. So as Matt alluded to, that's a wash. And again, the upside is more just performance base, which is driving the guidance.

Alexander Kubicek

Okay. In terms of the one-timers in 3Q, can you just provide a little more color on what those were? And are those things that we should expect to occur seasonally in 3Q going forward? Or was it just kind of really onetime events?

Unknown Executive

No, they were largely onetime events. It was about $1 million in total. We had some sales and use tax true-ups and a little bit of elevated bad debt. But we don't expect those to recur into Q4 or beyond.

Unknown Analyst

Okay. And then as you think about occupancy versus rate. I mean, should we expect some of these strategies using concessions to kind of promote occupancy before you push rate to continue going forward? Is that something that we can see kind of the next couple of quarters? Or is this kind of really a onetime situation based on an opportunity operator saw or something else in the market?

Unknown Executive

Yes, it's a mix. I mean, look, the concession piece is more hand-to-hand combat on certain assets to drive strategy. It's just -- it's more pronounced now as we think about where we see the opportunity. I don't envision this being something that continues long term. I think this is kind of incremental, and we will continue to see rate lift across the portfolio.

And so I think, generally speaking, we would expect to see at least the same lift we got in 2026. And again, we've also talked about a variety of different strategies we're finding with respect to expense reduction levels of care on the revenue side. So there's kind of a whole suite of different initiatives that we continue to work through, which will be more pronounced as we go into 2027.

Unknown Analyst

Okay. And then last 1 for me. In terms of some of the redevelopment potential within the portfolio, has any of that started? I mean, has there been any spend yet on that? I guess that wouldn't show up in the recurring CapEx guide, right? So are you in process on any of those projects? Or are those still primarily kind of 27 starts?

Unknown Executive

They are all '27 starts. Any spend this year is really soft costs related to design and consultants, but kind of the swinging of hammers will commence next year, and then we'll start to see delivery of some of those towards the back half of the year.

Operator

[Operator Instructions] It is showing no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to Chris Bilotto for any closing remarks.

Christopher Bilotto

Well, thank you for joining our call today. We look forward to seeing many of you at the NAREIT conference in Atlanta this November. That concludes our call.

Operator

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