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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