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: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst
: Just maybe sticking to the previous question. We saw your partner, your institutional partner, GIC, team up with Ventas in the U.S. on a JV
announcement. With respect to Brazil in terms of potential kind of JV activity and then possibly reducing your investment capital in that region,
how much of an implication does Rede D'Or's potential IPO have in that process, if at all?
Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst
: Great. And then maybe just a broader question. In terms of capital deployment, when I hear words like generational opportunity with very
high-quality assets that are potentially highly sought after, which would imply a valuation could be -- nothing is for sale with those types of assets,
typically speaking.
In the past, acquisitions have been maybe a bit of pressure on per share growth, given the delta between acquisition cap rate and implied cap rate.
But now that the unit price has improved, like how should we think about AFFO per unit accretion from transaction activity in terms of NorthWest
co-invest, including the fee streams that are attached or associated with those co-invest going forward? Like, should we look at that as being a
meaningful driver of AFFO per unit growth going forward?
Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst
: Got it. Understood. Okay. So the incremental accretion from potential transactions would be included in the 3.6% bucket in the asset management
on this term?
Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. That's really helpful. Two more really quick ones on my end. With the kind of rise of COVID infection rates in the U.K., can you comment on
the -- any changes in NHS policy with respect to funding capacity?
Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst
: Got it. Okay. And my last question just relates to deferrals. Your bad debt expense provisions have been relatively low, given your confidence in
ultimately collecting the deferred rents. It's been several months now, but it's -- I'd say that some of the rents have been deferred. How have actual
rent collection on those deferrals come in relative to expectations?
And I just wanted to clarify that the cash rent collection figures that you disclosed, those reflect -- those are reflected for the revenue for that month
as opposed to collection of previously deferred rent.
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