Ventas Inc (NYSE:VTR) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
Juan Sanabria – Bank of America Merrill Lynch: Juan Sanabria here. Just a quick question with regards to your acquisition pipeline, could you just give us a bit more color on sort of how it appears relative to – before the Fed Chairman kind of spooked the market and debt rates kind of shot up and what do you think is sort of low hanging fruit with some partners that you have out there that you think you can maybe transact on over the course of time?
Debra A. Cafaro – Chairman and CEO: I think our pipeline continues to be very strong and we are seeing a good volume of different kinds of transactions across the spectrum of assets and that really has not changed, given the Fed’s commentary and so that’s very positive. I think as Ray mentioned, we have some great development – redevelopment opportunities with our existing operating partners and we are continuing to see some deal flow from the 100 plus tenant operators that we have in our portfolio. Then of course, we are seeing a lot of investment opportunities really from third parties in the market.
Juan Sanabria – Bank of America Merrill Lynch: Just I guess a modeling type question. When should we model that these second quarter acquisitions closed, were they more towards the second – towards the end of the second quarter and with regards to the 400…
Debra A. Cafaro – Chairman and CEO: Yes. The second quarter – it was towards the end and the ones under contract will be towards the end of the third.
Senior Housing Assets
Emmanuel Korchman – Citi Research: Just, if we look at your – the press release here, Debbie, you guys mentioned that seven of the senior housings communities were transferred to Atria. I was wondering, if you could give us some details there? Maybe give us some insight as to how we should look at deals going forward? And is that something we should expect that maybe Atria becomes a consolidator and you find deals and you kind of put them into that platform?
Debra A. Cafaro – Chairman and CEO: That’s a great question. So, of our acquisitions in the second quarter, upon closing of the high-quality senior housing assets that are all private pay and in Atria’s footprint, we have been transitioning operations of those assets to Atria at the closing. As we talked about before, Atria is one of the premier senior living providers in the United States with the ability to scale and a really great platform, and so we believe they will continue to grow and will be one of the potential consolidators in the industry.
Raymond J. Lewis – President: I mean where we can find the assets that’s fit our strategy of being the best assets in the best markets. The opportunity to put those in with Atria is one of the values of our relationship with them. So, we really want to capitalize on that.
Emmanuel Korchman – Citi Research: Maybe just in terms of mechanics, is that the type of scenario where you go out, you find the asset, and you say, this will be great under Atria or are they out there finding stuff and saying, hey, Ventas, if this works, our relationship…
Debra A. Cafaro – Chairman and CEO: It’s both. We are going out and finding acquisition opportunities that we think would be a value added for Ventas and where we think Atria would be a great operator, and they of course have their own network that would identify opportunities as well.
Emmanuel Korchman – Citi Research: Then maybe switching to the redevelopment comments that you made earlier. When we look at your pipeline, it’s kind of you got this $151 million of approved deals in the release, $240 million of total, sort of development projects out there. How should we think about the yields and sort of the capital committed to those annual returns?
Raymond J. Lewis – President: Yes, so as you know, the redevelopment pipeline targets assets in our portfolio where we can add additional value by adding programming such as memory care or upgrading the facilities to drive rate. So far, with the projects that we’ve completed and that have stabilized, we’re achieving the 11% returns that I referenced in the opening comments. I would say the pipeline is very consistent with the projects that we’ve done, historically. So we would hope that they would achieve similar types of returns as we implement and stabilize those
Emmanuel Korchman – Citi Research: Then final one for me, as we look at your pipeline, whether it be the $400 million or outside of that going forward, should we assume that they’re all going to be senior housing and MOB or is there chances outside of that spectrum?
Debra A. Cafaro – Chairman and CEO: In the acquisitions under contract right now, they’re straight down the fairway consistent with our strategy kind of private pay high-quality senior housing and MOBs. But in the pipeline, generally, it would be across the spectrum of healthcare and senior housing assets.