Question-and-Answer Session
[Operator Instructions]. And the first question comes from the line of Michael Bilerman from Citi. You may proceed, sir.
David Toti - Citigroup
Hi, this is David Toti here.
Debra A. Cafaro - Chairman, President and Chief Executive Officer
Welcome.
David Toti - Citigroup
Thank you. Couple of questions around the balance sheet, what you believe is your sort of maximum capacity or appetite for structured finance portfolio at the top end?
Debra A. Cafaro - Chairman, President and Chief Executive Officer
Are you asking us what our capacity is or our appetite for making investments in debt?
David Toti - Citigroup
Yes. Basically, if you are buying debt pieces and pieces of the capital structure; how do you see that portfolios popping out or maturing?
Raymond J. Lewis - Executive Vice President and Chief Investment Officer
Hi, David, this is Ray Lewis. I think as Debbie mentioned in her opening remarks, we think there is a good opportunity in the market right now to generate good risk adjusted returns for our shareholders by investing in debt. That having been said I mean it will always be a relatively small portion of our portfolio, and I don't foresee us really having any more than say 5% of our total value in a debt portfolio at any one point in time.
David Toti - Citigroup
Okay. Are there loan loss reserves established for these?
Debra A. Cafaro - Chairman, President and Chief Executive Officer
We are really at the leading edge of this program; and so as required, we would establish reserves. But at this present time, there are none.
David Toti - Citigroup
Okay. And then I'm just sort of moving over to sort of a transaction environment; are you seeing an increase in sort of distressed opportunities across respect from of investment areas?
Debra A. Cafaro - Chairman, President and Chief Executive Officer
I mean the areas, the healthcare areas that we participate in, skilled nursing, hospitals, independent and assisted living and medical office by and large are showing good defensive characteristics and are generally performing quite well. So there are very limited, if any, distressed opportunities in our sector unlike some of the more classic commercial real estate basis.
David Toti - Citigroup
Okay, yes that was my expectation as well. And just a sought of a detail question relative to some of the debt that you purchased; I think it was the $100 million piece. That appears to have a higher yield than some of the debt that was structured in the same transaction that's lower in the capital structure, can you provide some color on that?
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