Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $0.20 per share and normalized FFO of positive $0.14 per share for Q1 2025, affected by a partial quarter impact from February debt refinancing transactions and increased stock compensation expense [21][22][24] - The second quarter normalized FFO is expected to be reduced by approximately $0.02 per share due to higher interest expenses from refinancing [21][22] Business Line Data and Key Metrics Changes - The new tenants in the transitional portfolio are ramping operations, with cash rents expected to increase significantly by Q4 2026, with specific operators like HSA and HonorHealth showing strong performance and growth initiatives [10][12][14] - The established portfolio continues to perform well, with operators like LifePoint Health reporting strong revenue growth driven by increased admissions [19][20] Market Data and Key Metrics Changes - Across the portfolio, operators reported strong results with increasing volumes and steady coverage, indicating resilience in the healthcare sector despite macroeconomic challenges [8][9] - In the UK, operators are benefiting from increased private medical insurance utilization, with Circle Health investing in innovative technologies to enhance performance [17][18] Company Strategy and Development Direction - The company aims to empower hospital operators by providing affordable capital solutions, enhancing financial flexibility, and redirecting funds into patient care [9][10] - The focus remains on creating value for shareholders through accretive growth opportunities and maintaining a diversified portfolio [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthcare sector's resilience and the company's ability to navigate challenges, emphasizing the importance of hospital assets in communities [8][29] - The company is optimistic about reaching total annualized cash rent of over $1 billion as new tenants ramp up operations [11][20] Other Important Information - The company issued over $2.5 billion in secured bonds to strengthen its balance sheet and ensure liquidity through 2026 [10] - Impairments and fair market value adjustments totaling approximately $73 million were recorded, reflecting challenges in certain investments [22] Q&A Session Summary Question: Risks to Steward transitioned assets and ramp-up ability - Management does not foresee risks to the ramp-up of new operators despite challenges in the Steward bankruptcy process, noting limited uncollected amounts [34][35] Question: Details on the $40 million investment - The investment was made during the quarter to repurchase assets previously part of Steward campuses, which are expected to generate rent [36][38] Question: Monitoring regulatory changes and potential Medicaid cuts - Management is not concerned about potential changes to Medicare or Medicaid, stating that tenants are not nervous about these changes [43][44] Question: Updates on operators in Colombia and other situations - The operator in Colombia is performing well despite political challenges, and the 1% tenant is back on track after a strong quarter [48][49] Question: Timing for Prospect process following court approval - The company expects to identify potential new tenants for Prospect hospitals by late May or early June [50]