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
: Good morning, everybody. I appreciate your prepared remarks and, well, a rare Matthew appearance on the call today. First question on acquisitions.
I mean, it seems relatively quiet on the SNF REIT fund, yet some publications, some of the industry journals are suggesting even an acceleration of
activity maybe from private investors. So I'm wondering if from OHI's perspective, is this a cost of capital issue? Are there just not really attractive
opportunities in the space? Or is there a new kind of competitive element floating around out there that may not have been present prior?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. I appreciate the color there. A bit more of a broader question on operations in general. So there are some commentary out there that certain
operators are looking to take on higher acuity patients. So I'm wondering at a high level, maybe Megan can jump in here, how that affects the cost
structure on a per patient basis? And then if this dynamic is to turn into a trend across the whole industry, I mean, how could this look in terms of
the rate changes in years to come?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And last one for me. I apologize if I missed the detail here, but on the dividend, it seems like the payout ratio remains relatively comfortable
even with the degree of lost rents. So I'm wondering how you guys feel about it at a high level, maybe what are the payout ratio bands you're
looking to work in, in the near future? And whether or not you'd be willing to let that climb above 100% for the short term, if necessary?
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