The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Hope you all are well. We appreciate very much your efforts to support the operators under the current environment. First question
on PDPM. Don't want to lose sight of the impact amidst the ongoing pandemic. Has there been any commentary from your operators
in regard to functioning under the new framework in this extraordinary situation?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Appreciate the color there. And then on rent coverage, it seems like a few operators have moved into lower buckets. I mean
can you provide any color as to the extent of these moves, if the characteristics of these operators had changed meaningfully through
the fourth quarter of 2019?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then on further iterations of the CARES Act, I mean, is there any expectation that there would be a provision from Medicaid
at some point?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Right. Right. And then last one for me, just quickly on external activity. Noticed you were able to sell several assets year-to-date. I
mean, what kind of buyers are still out there in the markets? And then what would it take for OHI maybe to become more comfortable
in acquisitions here?
Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst
: I just wanted to go back to the occupancy drop that you talked about from serving operators. What were the operators telling you
in terms of thoughts about whether it could get worse from here? And also if you're hearing any sort of early expectations about
how states opening up elective procedures again for hospitals? Any anecdotes on how that is already, I know it's very early, but
maybe helping the occupancy number for skilled nursing?
Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. I guess, I mean, obviously, that's a key component for getting the skilled nursing industry back to normal. When you look at
the amount of federal aid that's been given so far to the industry, and you run some math about occupancy pressures that operators
are facing short-term expense pressures. What is your sense here about when you need to see the hospital system returning back
to normal, so that skilled nursing can return back to normal? Is this -- do your operators have a lifeline until June, July? How should
we think about that?
Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst
: Yes, I understand. It's a little tough to gauge. I guess just last question, Taylor, how are you thinking about rent deferral requests if
they come in? I get that there hasn't been many yet, but as you're saying, it feels like the industry in the short run is facing more
pressure. You get through this period and then you get back to normal, and there are a lot of benefits that are in place via PDPM,
the removal of sequestration cuts.
So if you're getting a rent deferral request this month, next month, what is your approach going to be? Are you going to make sure
that the operator has fully exhausted every sort of federal program out there? Are you going to -- are you more likely to give a deferral
versus some sort of permanent level of a rent cut? How should we think about what could still play out here for your portfolio?
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