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
: Just starting on a high level. I know in a recent investor presentation, it was stated that Steward was seeing virtually a full recovery
of patient traffic. And now that we have the Delta variant spreading, you're seeing the curve go parabolic. There's some -- there's a
narrative out there now that some of the hospitals down in Louisiana and Florida are cutting back on electives. I'm just wondering
if this is permeating through the operating base. What is the strategy to handle a sustained spike in infections? And if you could
extrapolate that out into what I could possibly look in rent coverage, that would be very helpful.
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. That's helpful. And then moving on to behavioral health. You had mentioned in the prepared remarks that there's this growing
need within the United States in particular, and I'm wondering what the competition base looks like right now, if you're starting to
see more eyes turn to those assets and whether or not those -- you could expect those 9% yields or so to come down in the years
ahead.
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And last one for me. Just on the sale of Capital Medical Center, apologies if I missed this. Any sense of what the pricing was
on that deal or what it could look like?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: Just after Mike's question, I want to talk a little bit about the JVs. I know MPW has been working on this for the past year, year plus
or so. I mean is this taking longer than you expected? I mean are these deals more complex than for these -- taking time for these
parties to work through? Or is this by design? Is it MPW just wanting to get these deals done by the end of the year? So I mean is this
kind of what you always thought in the first place?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: Okay. And then going back to, I guess, some of the recent deals. Can you talk a little bit about the L.A. type transactions that you
completed? I think, Steve or Ed, I think you mentioned that these were hospitals really for -- to serve a population that doesn't get
a lot of access to health care. Can you kind of explain that? And how are these buildings are different from some other general acute
care hospitals?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: Okay. And then, I guess taking -- I guess, with taking that forward, I mean, is there other types of deals like this out there that you're
looking at? I mean is this a segment that you can grow with this specific operator? And I know that they have some assets outside
of L.A. in Illinois. Is that something that you're interested in, too?
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