Q1 2021 New Senior Investment Group Inc Earnings Call
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Good morning, and welcome to the New Senior investment Group Q1 earnings Conference Call Inc.
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After todays presentation, the will be an opportunity to ask questions.
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Two of your question piece picks dawn thank too.
Please note. This event is being recorded I would now.
Like to turn the conference over to James of Pease go ahead.
Thank you.
Good morning, and welcome.
Earnings per the first quarter 2020.
With me today are.
Our CEO.
The town.
The finance any county in the later now EVP and General Counsel.
Before I turn the call over to Susan I'd like to highlight that this morning's press the company update on a quarterly supplement and the reconciliations of GAAP and non-GAAP financial measures can be found on our website at <unk> Dot com.
Before we begin please note that our discussion.
Based on non-GAAP measures unless other line right.
Your line is call we will make forward looking statements as defined on the private Securities Litigation Reform Act of pricing.
No forward looking statements can be guaranteed and actual results may differ materially from the project.
All of a company with me on this call should be evaluated together with the risks and uncertainties that affect our business, particularly those of the risk factors and other disclosures.
Most recent annual and quarterly reports filed with the SEC, including the form 10-Q, we'll be filing later on.
We take no obligation to publicly update any forward looking statement, whether as a result of new information future events or other.
And now I'd like to turn the call over to our CEO.
Great. Thank you.
Good morning, and thank you for joining new Senior's earnings call for the first quarter of 2021, and addition of issuing our first quarter press release on supplement we posted the presentation to our website. This morning, I will be referencing throughout the economy.
I will spend a few minutes going over some of the recent trends we've seen before I turn the call over to Ross to go through the financial results and guidance in more detail.
It has now been over a year since the COVID-19 pandemic began to impact our communities and our company.
The senior housing industry has been on the front line of this crisis since day, one and our operating partners have worked tirelessly over the past 14 months from now.
The provider on the population of seniors with alchemy.
The next calendar year, but I am pleased to report that we are starting towards the positive trend that could be signaling the start of the recovery and of equal we had our first month of occupancy growth since the start of sand.
That being the distribution across our portfolio is now largely complete and today of 100% of our communities.
First of the vaccine.
As of the vaccines are not progress the rate of new pieces, but kind of opportunities has declined significantly.
On the large increase in the number of new cases, beginning of last November.
We keep counts have dropped dramatically over the past several months.
And the rate of new pieces of slowed again in April after a significant decline in March.
With strong revenue vaccination rates of over 80% of in our portfolio are greater.
The four new revenue paces in April and our reported Holly one active resident cases at this time.
Importantly, the total number of new cases was down 95% on an equal from the peak levels on December.
With increased vaccination rates and a significant reduction in the number of new pieces of our operators have been focused on safely with the metrics, Inc. Restoring service day, and increasing resident engagement activities within our community.
Over the past several months our communities are increasingly operating in a manner consistent with the freedom pandemic environment, including the full activities program and increase capacity on the guidance on the.
Services typically.
Including communal dining group activity and outside of Triptan visit on a central.
So part of the physical and mental well being of the residents in our community and they are often among the main reasons why rather than she used to living off of me.
As of the vaccine has been more widely distributed.
The top the quad our offer of your type of resuming the critical services.
And we believe the bad debt had a direct impact on sales on occupancy.
Now turning to occupancy I am very pleased to report.
The significant improvement in occupancy from January.
Total portfolio occupancy declined 160 basis points sequentially on the quarter, which was slightly better than our guidance expectation of down 170 basis points.
Importantly monthly declines improved throughout the first quarter ending occupancy was down 80 basis points on January <unk>.
Basis points of February and 20 basis points on March.
And most recently in April ending occupancy grew 40 basis points, marking our first month of occupancy growth since the pandemic.
Yeah.
April results benefited from both the improving moving in the low at the lowest smoothed out total since may 2020.
On the mid side modeling leaves and moving both increased significantly throughout the first quarter and our operators reported sales leads and moving volume that's the path.
The pre pandemic historical averages.
March and April.
March we exceeded 2019, we volume from the first time since the pandemic again kind of here to a low point of 57% in April 2020.
And in total for the first quarter leaves represented one 3% of average of 2019 volume.
This trend continued in April with leaves remaining of about 2019 level for the second consecutive months.
Alongside strong growth most of the move and rapidly throughout the quarter.
<unk> increased 46% versus the lease next January.
And for the past 2019 volume from the first half.
April move ins increased again in months over months and reached the highest level since December 2019.
Move outs increase at the end of the first quarter driven mostly by the high end of non controllable move outs, including debt and higher levels of care.
Out of that both of these kind of above historical level all of the elevated COVID-19 patients early on the quarter.
April move out of declined 15% from March level out of the non controllable move outs stabilize our friends, we hosted the <unk> going forward.
That's the most of the remainder of the second quarter. We are optimistic that the positive trends we are observing our same store.
Part of the long weighted recovery and we are currently expecting Ts occupancy growth in May and June.
While we are teenagers the encouraging signs of emerge do you expect the pandemic.
Cash operations and financial results in 2021.
For the first quarter, our results were in line with our guidance expectations for the quarter and are on.
The results were slightly better than our expectation.
As we look to the remainder of comes from line one it remains difficult to predict how the pandemic will continue to evolve and how much it will impact our community.
As a result, just like last quarter, you will only be providing guidance for the upcoming.
From a quarter at this time.
Encouragingly as I, just mentioned, our second quarter 2021 guidance.
But we will continue to see occupancy growth throughout the quarter.
We expect the fifth.
The growth will begin to benefit our financial results in the second half of the year as on average occupancy begins to grow sequentially.
And we believe the financial results in the second quarter could represent a potential profit or earnings.
The improvement drive sequential NOI increases in Africa.
These new managing through the pandemic remains our top priority in 2021, we are focused on advancing our other priorities, including addressing operator alignment and diversification.
And positioning our portfolio for the recovery and growth and strengthening our balance sheet.
Along the line.
We completed the transition of one properties the atria senior living off of the software.
The transition took place on time and as planned.
Everyone of atrium holiday from making the process go smoother.
We are excited to start on a new partnership and believe it will benefit from having the additional perspective and best practices to drive growth.
Now of more than ever we believe it's critical to have strong lines with the operator, and we believe that completing by completing the transition now we are not only advancing one of our stated priorities of increasing operator diversification of alignment, but we were off the positioning the Atlas the benefit from a potential recovery.
The bad before defining of Ralph I'm going to take them.
Minutes.
One of the potential of coverage could look like for our entire company.
To be clear at this time it remains difficult to predict the timing the.
Or shape of any recovery, but we've included in the health of the bridge from the Companys presentation to help provide a framework of what the impact could be on an NOI assuming different.
The level of occupancy.
Returning to pre COVID-19 occupancy level of the 87% core.
It represents $25 million of incremental NOI.
If we assume the portfolio returns to the peak levels of 92% occupancy it could represent another 35 to 40 million of incremental loss of NOI.
Together, we believe that there could be 16 of $65 million of potential organic NOI growth within our existing portfolio of today.
While these numbers are just all of the electorate.
I believe it provides the framework for thinking about the potential earnings growth at the hopefully shifts of recovery.
Overall, we continue to bleed on the value that our communities to provide to the middle of the demographics as well of the powerful long term fundamentals of the overall senior housing industry.
With that I would like to thank our operators and associates at our communities for everything they have done to continue to keep our revenue per se.
We are cautiously optimistic based on the trends, we're seeing across the industry and the data that you're seeing there on the portfolio now.
All of the drop.
Thanks, Susan and thanks, everyone for joining us on the call. This morning.
During the first quarter of 2021, the portfolio was comprised of the 103 private pay senior housing properties across 36 states.
Our operating and financial results for the first quarter of 2021 were in line with our expectations and the guidance range of shared with you a couple of months ago.
Same store cash NOI for our total portfolio of 103 assets for the first quarter of 2021 was down 16% compared to the first quarter of 2020.
The decline in NOI year over year was consistent with our expectations and was largely driven by an occupancy starting point there was 690 basis points below that at the beginning of last year.
In addition case counts remain elevated at the beginning of the year, resulting in an additional 160 basis points of occupancy loss during the first quarter of 2021.
As Susan mentioned occupancy trends have improved dramatically over the last couple of months of the vaccine has become more widely available is matching the case counts of begun to come down significantly.
In March of occupancy decline by just 20 basis points, which is the lowest decline that we've seen since the onset of the pandemic.
This was immediately followed by a 40 basis points increase in April of our same store portfolio. Our first months of occupancy growth independent of the game.
Please note that for the second quarter, our same store portfolio excludes the 21 assets of the transition to the atria on April one.
Coming back from the first quarter of 2021, let me provide some additional color on our key operating metrics.
Average occupancy for our I O portfolio was 79, 4% down 770 basis points year over year, resulting in the decline of eight 6% and total cash revenue.
Revpar grew by <unk>, 3% versus the first quarter of 2020.
Encouragingly average rental rates grew by one 3% versus prior year.
Although it represents a slight deceleration versus past quarters as of the leasing spreads are expected to the decline in the competitive market rate increases on existing residents of the main stable just over 3%.
The decline in revenue the slightly offset by a corresponding decline in expenses, which were down three 2% year over year.
Expenses for the quarter also included an additional $330000 related to higher utilities and insurance costs as a result of unseasonably cold weather and severe winter storms that impacted much of the country in February.
Now I'll discuss our financial results balance sheet and guidance for the second quarter of 2021.
Yes, it's a flow for the first quarter was $11 5 million of <unk> 14 per diluted share, which was consistent with our expectations and in line with our guidance range.
Cash interest expense of $13 4 million as LIBOR remained relatively stable.
Cash G&A was also in line with the expectations that came in at $4 2 million for the first quarter of 2021.
We continue to maintain a robust balance sheet and liquidity position the weighted average maturity of our debt is over five years with no significant maturities until 2025.
Inhibition of weighted average interest rate of three 5% of less than 30% of our total debt of $1 5 billion exposed to the interest rate volatility.
Thanks.
Forecasting remains extremely challenging on the face of rapidly shifting trends.
As a result, and as Susan mentioned, we have decided to continue the quarterly guidance and I will now share of our expectations with respect of occupancy NOI and <unk> for the second quarter of 2021.
We expect ending occupancy to increase by the 120 on 150 basis points during the second quarter for our managed same store portfolio.
I discussed earlier occupancy group for the first time since the beginning of the pandemic in April and we are cautiously optimistic that this is an inflection point signal the beginning of the potential recovery.
In the near term, we expect expenses, such as labor marketing and maintenance to trend slightly higher other operators continue lifting of restrictions across the properties and intensified their focus on growing occupancy.
As a result, we expect cash NOI for our total same store portfolio of 82 assets to be down approximately 15% year over year in the second quarter of 2021.
Lastly, we expect the full for the second quarter to be approximately <unk> 13 per share.
As of the case throughout the course of the pinned on it we expect the NOI and earnings trends will continue to lag of occupancy trends.
The occupancy continues to grow from this point on other than our current expectation, we expect earnings to pick up shortly thereafter.
We remain committed to transparency unexpected continue providing periodic updates of the closing monitoring of the business and optimistic we look forward to a return to growth after successfully navigating through one of the most challenging operating environment the lifestyles.
With that I will turn the call over to the operator to open the line for questions.
Yeah.
Yeah.
Thank you we will now begin the question and answer session asked the question you May push Dawn then one on your telephone keypad.
If you were using the speaker phone please pickup your handset before pressing the key.
To withdraw your question please.
The bank to at this time, we will pause momentarily to assemble a rough guidance.
The first question comes from Vikram Malhotra from Morgan Stanley. Please go ahead.
Morning, Thanks for taking the question maybe just on the first guidance on same store NOI.
Can you just clarify you obviously the comps are getting easier and I believe in the second quarter of last year, the occupancy was a little over 84%.
So theres, obviously less of an occupancy decline year over year, but just what's driving the 15% year over year decline.
Yeah sure of any background. So you know for us.
Second quarter of last year was really the first quarter, where we began to feel the impact from the pandemic.
And so you think about kind of where occupancy started at the beginning of the second quarter.
On throughout the second quarter of last year, it was still significantly higher than where occupancy is today. So I think the obviously its very positive that we're beginning to see occupancy growth you have to look at the kind of the average occupancy.
In kind of the second quarter most of the average occupancy of the second quarter last year and.
Yeah.
Thanks for all of last year has really been same thing yeah. There was a pretty significant kind of zone.
We're still expecting the average occupancy in the second quarter of this year will be lower the average occupancy.
The second quarter of last year. So the fill your occupancy levels are lower even though we're starting to see growth. So that's part of it and then you know we certainly.
As we talked about our operators are other shifting the kind of focus on occupancy. They are spending more on the expenses that makes sense to be spending money on things like marketing and commissions as you're growing occupancy.
You want to answer a question on of those expenses and so when you take those two things together you end up you know kind of with the next bill while growing the occupancy relative to where we are today.
Occupancy is still expected to be lower in the <unk>.
Second quarter. This year the next year and then you're planning on.
Smartly spending on the expense side to try to drive that occupancy growth and on.
You talked about you know, we really think that you know hopefully if occupancy continued to grow and this is kind of the second quarter share of the trough for US and then you start to see.
The same store NOI numbers really through kind of the second half.
Yeah. That's that's kind of you know our hope and obviously, that's all predicated on.
The recovery of it that's sort of how it pencils out.
In terms of kind of the protection.
Just on the Capex side, you know obviously, there was a general deferment last year, but I imagine as occupancy comes back there's a need to ramp up capex as well can you just maybe walk us through the trajectory as we look.
Throughout 221, and maybe even just 22.
Yeah sure. So as you pointed out I'm wondering if he did the last year and the pulled back on.
Non of acquired Capex, So obviously, there's a need to kind of tap.
On a continuous basis, and we and our operators are focused on doing that last year, but from what we kind of consider more discretionary capex items. Those are the things we pulled back on as we were kind of navigating through everything.
This year of 2021 we are on the point.
Kind of a more normalized level and so we do have additional capex kind of running through.
Our numbers as compared to last year, but not necessarily of significantly higher than kind of what it what it's looked like on a more normalized basis. So I think when you look at the Capex numbers for the first quarter.
Of this year you do see the other slightly higher than the kind of what we saw quarterly basis last year and in parts of do exactly what you just said it to get back from our normal operating environment.
Okay.
The market, there's obviously a lot of capital on the sidelines and particularly for senior housing we've seen some big trades over the last call it six months and.
At prices that we may not have believed maybe six months ago.
So given kind of how strong the market is can you maybe just update us more from a more strategic perspective thinking about the portfolio.
In terms of.
The jv's acquisitions dispositions, just monetizing some of it and just just more broadly.
Your view on any sort of strategic actions the company may take to kind of realize incremental value.
Yeah sure so.
As we've talked to you and others about our company.
You need to be focused on our priorities and I left on that kind of on leverage are on Peter and.
The diversification and the alignment and then overall on our cost of capital and scale of the sort of the three things that I generally identify and as.
As we sit here today, we are like I said I'm very focused on the recovery and very focused on package of seeming to get through the pandemic, but those other three priorities are things that as you would expect we're very focused on and I do think that there are more things out there now.
That can help us address of the three items and their worst day, a year ago and so as you might expect many of those are things that we're looking at and we're focused on so you know I think the as I see it anything that can help us address those items and get the company into a better place those are things that we will think about and consider.
Obviously not commenting on.
Any sort of state and the 19th specifically, but I think youre right Theres more activity out there there is more on.
The stuff generally that could help us advance our strategic priorities and so many of.
Of those are things that we're thinking about but I think first and foremost we want to make sure of that the portfolio performs and that we.
I can get you know the assets in a good position to kind of benefit from a recovery, but obviously the other strategic things of things, we're always thinking about and you know I do think there could be Mr of more activity. This year, we'll see but you know.
I agree I think there's more out there certainly first of all remember last year.
Great. Thanks, so much.
Thank you Tom.
Thank you. The next question comes from Dan Bernstein from capital One. Please go ahead.
Hi, good morning.
Good to hear of the option.
Glad to crack the code the optimism on the on occupancy.
I wanted to go over the operating margins for <unk>, They were down about 300 bps.
On the typical seasonality it looks like 100, 120 bps going back and looking at your numbers.
So I just wanted to better try to better understand.
The impacts from COVID-19 expenses in the quarter as well as the the weather related expenses and how I should think about debt.
Relative to normal seasonality and maybe how margins might might look going forward.
Especially with the occupancy ramp.
All of a follow up question after that.
Yeah sure. So yeah. So he is here.
Our margins were down a little bit.
The first quarter of that versus where they were on the fourth quarter.
And as you rightly pointed out I think it's a couple of things going on on the first there were a bunch of of winter storm at the group.
<unk> of this year on the first quarter.
On the Texas storms on some other things that impacted our operating expenses and so.
Those I think accounts for roughly kind of a no.
The one per cent for the margin decline.
Of that stuff that you don't include type of utilities and insurance costs all of those things that we were sort of unexpectedly hit with if you will and so that's part of the than the other part of it is it's definitely occupancy related and I think as I mentioned before we're sort of in the inflection point whereby price before you start to you know hopefully the occupancy.
The growth.
You end up with the expenses that need to kind of be reintroduced into the system on things like marketing.
And then of course edge of growing occupancy youre paying referral fees, you're paying commissions and so.
That's the reason why we're seeing the light you know kind of margin.
<unk>, we certainly expect and hope that as we start to get that occupancy growth margins, just bounce right back to where they are on a historical basis I think as you're building occupancy.
And you're combining that with kind of your lowest average occupancy level, the sort of natural to assume that there's a slight amount of margin compression, but we certainly think.
That's very kind of near term and again as we've talked about extensively in the past that we really liked the Io model, we think that.
Margin and moving kind of.
And come back right. When you start to see that that occupancy growth, so kind of what's going on there.
I guess.
The question here would be.
Are your operators discussing the inflationary pressures at this point.
Yes, if you look at a lot of the <unk>.
And that's on.
The article.
80% of the S&P 500 companies.
Because the inflation on the earnings calls, whether it's utilities toiletries.
Anything so.
The commodity so.
How is that playing into your thoughts on margins.
What is the atria and holiday been saying about.
Cost pressures that are starting to filter in or might filter in.
Into the system, but I know, obviously, you know gain all of that occupancy back it could overwhelm that but that's probably one of the questions. I have is what kind of inflationary pressures are being sort of yeah.
Yeah look I think it's sort of a little bit too soon to sort.
And of the correlate.
Expenses of sort of of what's happening from the inflation standpoint, but what I will say that as we model of the projected things. We are expecting expenses to go up we're expecting the wages go up we're expecting the cost of supplies and other things to increase the we'd model of that because we just think of that.
Appropriate at the same time, but I think it is very encouraging is we've seen very steady and stable on the straw Rafe brown from our in place of residence and so I think that when you kind of an environment, where you can continue to get good increases on your in place residents that you know certainly.
The.
Kind of accounts for what Youre seeing on the specified debt.
On the whole point of the reason why you need to add and kind of push for rate increases. It's the cover some of the increasing so.
We still think that'd be kind of model. It out our margins are still good and can be good wants to start the really through the occupancy growth. So after netting out the bottom out or kind of you know our trajectory and you know I don't think there's anything at this point that would.
Indicate the margins are going to come down over a long period of time. This is really in my view kind of the near term thing is we're building off of a thing.
Okay.
I guess really that's all I have I'll hop off of and maybe come back sort of another question. Thanks.
Thanks, Tim.
Thank you again, you have a question to start day. One if you have a question. Please press Star then one.
Next question comes from Michael Gorman from BP I T. Please go ahead Michael.
Thanks, Good morning.
Hi, Michael how are you.
I'm good how are you.
Yeah.
The Susan if I could go back to maybe kind of the three core.
Pillars that you talked about outside of the recovery from COVID-19 can you maybe provide a little bit more context, how you're thinking about them within the recovery from COVID-19 right. Obviously as you laid out in the presentation of <unk>.
Lot of potential upside here on the NOI side, a lot of potential earnings growth.
If youre able to kind of push that occupancy back up so how do you think about.
Obviously of the ATM in place now how do you think about debt reduction how do you think about strategic growth.
And how do you think I guess that.
Based on how do you think about the equity value with the potential.
Covered in the offing.
Does one have to come first before you you execute on the others or how are you strategizing about that.
Yeah sure. So I think that when we think about the strategic priorities.
Everything we kind of evaluate and in our opinion to be advancing on it doesn't mean that you know we can drop them in their entirety all at once.
And not in conflict with advancing the kind of stated goal and so all of them.
He says you know the.
Operator kind of diversification in alignment now.
I think you've seen us already take steps to address and so while you know we feel.
Fairly concentrated relationships, we're taking action and we have to try to address that and we think that.
By addressing that now sort of in the midst of a pandemic, which as you know number of ideal timing for anything it really puts us in a place where we can get the transition completed and get everything kind of strong footing the benefit from the recovery of strategically I'm not factored into our decision to same either.
The only thing at this point was let's get the assets kind of debt.
So that when we do start with the of recovery there, they're prepared and really kind of ready to go and so we've enhanced that I think there's still no thoughts you have on that and kind of think we're still on me.
Contemplating but.
Along the way and advancing the Apple <unk> leverage and kind of balance sheet I will call. It the law.
Leverage is kind of our biggest challenge of Ics.
Ive been I think hopefully pretty open with people about that well you have seen US do is do everything you know kind of within our power to put our balance sheet in a better place. So.
You know by selling assets last year and refinancing all of our debt pushing out our debt maturities being really strategic and smart about Boston and interest rates and everything we can kind of see you on the margins you could give us a lot of flexibility with the balance sheet.
That's what we've done and then I think you know of bringing overall leverage you know down is going to be something that's kind of take more time to do and you know all the things that you might expect us to be thinking about in terms of how to do that I think we're thinking about but I think first and foremost as I thought about the balance sheet you have to give yourself flexibility on the balance sheets of Mb.
Are you able to kind of reduce debt overtime. So that's something that we're thinking about different options and alternatives for the company.
Of course as you know that's at the front of our minds and then lastly, just kind of stay on cost of capital that kind of come when you've addressed the first two things I believe and so.
Those are we think if we can make lots of progress on the first two things that will hopefully you know kind of all of them and beyond that I think just being able to post strong results and actually show good solid kind of performance.
The performance on our core portfolio that will also.
Allow the sort of the cost of capital just to kind of law. So that's how I think about it in terms of on your kind of fundamental question of you know what.
What are we sort of thinking about to address those things and what's there.
Worrying about lots of things and I don't necessarily think so.
Sort of one has to kind of before the other in terms of everything across the capital spend on dress leverage I think we need to think about it holistically and see if there are things that can help us.
You know to tackle the biopsy challenges the work to really kind of accelerate you know the kind of diversification.
Diversification. So we're thinking all of the things I mean, I'm I'm, probably the intentionally you know sort of day, but yeah. Those are the things we're trying to address and I think you'd see us do anything other.
It's really true because we think it will advance those priority.
Okay, Great. That's helpful. And then maybe just on the moving inside obviously March and April were strong even comp against 2019.
What kind of color are you getting from your operators on these move ins is this pent up demand the that they're hearing from people that were waiting to move in until they saw more progress on vaccines or saw more amenity availability or is this just a return to traditional you know even if it's slightly above average just the return to traditional.
The man levels trying to gauge how much of the potential pent up demand, we could see as we try to as you try to move back towards that.
Those occupancy levels of pre pandemic.
Yeah, I mean, I think of that there's a lot of discussion around the pent up demand.
I think the little bit tricky to kind of pinpoint like what the pent up demand versus as you say kind of the normal operations now what I will say.
What we're seeing and hearing from people.
Certainly you know kind of of the more of the vaccine had been distributed the more broadly comfortable senior to our but importantly also the more comfortable their family members are so family members are a big hit.
The effective faster.
Faster here in senior housing and so as we're seeing.
More people kind of the vaccinated broadly the senior that's leading to.
Some of the increased kind of moving then we're also hearing a lot from our operators that you know a lot of big questions and of the focal point for a potential move in the what is it like the living here now one of the services that are offered can I do the activities that I would like to do and so you know I think it's a really important thing for senior.
And there's a real focus on actually having access to the services.
On that or kind of critical particularly in independent living and so I'd say if anything you know kind of those two things overall, the kind of comfort level with sort of more vaccine distribution not just the senior but also with me from the family members of infusion what does the experience like in the communities and that's a really critical items.
That people are focused on and I think that would be heard and you know that's been kind of widely discussed.
The socialization and what that does on you know to everyone, but particularly to know kind of seniors throughout the and actually the real focus on I think there's a real awareness.
Among family member of P&C, Here's the thing needs to have more social engagement and the need to be more active and so I think if people are thinking about moving in and that's a really critical kind of question for people on one of the environment within the community look like.
Great. Thank you.
Okay.
Thank you.
So a question and answer session.
I'd like to turn the conference back over to Susan Givens for closing remarks.
Great well. Thank you everyone for joining us and we look forward to keeping you updated us in the forward.
Thank you. The conference calls has now concluded. Thank you for attending today's presentation you may now disconnect.
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