Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• The ongoing COVID-19 pandemic negatively impacted business, results of operations, cash flows, and financial condition.
• Decreases in operators’ revenues or increases in their expenses negatively affected financial results.
• Defaults under borrowings due to operator failures to pay rent or satisfy performance thresholds.
• Increased competition affecting occupancy rates, operating margins, and profitability.
• Risks associated with capital expenditures, including cost overruns and potential declines in property value.
• Potential actions by joint venture partners that could decrease investment value and lower overall return.
• Operational risks at certain healthcare properties affecting revenue and operations.
• Increases in interest rates reducing profitability and impacting ability to refinance debt, sell assets, or engage in investment activity.

Mitigation Strategies

• Sale of Watermark Fountains net lease and operating portfolios for $580.0 million.
• Repayment of mezzanine loan in full.
• Repayment of borrowings under revolving line of credit.
• Sales of Kansas City and Smyrna properties.
• Extension of maturity date and principal repayment of a mortgage note.
• Refinancing of an existing note payable.
• Active portfolio management to enhance performance of existing investments.
• Strategic capital expenditures to maintain market position and enhance asset value.
• Pursuit of dispositions and asset repositioning to maximize value.
• Use of interest rate caps to manage exposure to interest rate volatility.
• Rigorous credit evaluation of healthcare operators prior to acquiring properties.
• Implementation of credit enhancement mechanisms into leases.

Supply Chain Management

Climate-Related Risks & Opportunities