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COO Gabe Willhite explained that the trend accelerated in the fall of 2024 when MA plans' star ratings were impacted by provider quality, increasing their need for high-performing partners. President & CEO Danny Prosky added that Trilogy's bargaining position continues to strengthen, allowing it to be selective and secure favorable terms, though it takes two to tango on new contracts.

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COO Gabe Willhite stated that Medicaid rates typically reset in July, with inflationary increases as a baseline and potential upside from value-based care performance. He explained that Medicare Advantage rates are negotiated on a rolling basis, and new contracts are expanding resident access, creating a significant tailwind. President and CEO Danny Prosky added that MA rates often increase in tandem with Medicare rate adjustments.

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President and CEO Danny Prosky explained that 2025's announced $136 million in starts is an uptick from 2024 and that a go-forward run-rate is about $150 million annually. CFO Brian Peay clarified the 2025 guidance includes $80-$100 million in development spend. Danny Prosky noted stabilization timelines have compressed to 12-18 months, with stabilized yields in the low-double-digits for new campuses and mid-teens for expansions.

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President and CEO Danny Prosky responded that RevPOR (revenue per occupied room) growth is currently outpacing expense growth and is expected to continue, with wage inflation normalizing. He noted that while higher inflation would likely increase expenses, revenue gains should more than offset it. On labor, Prosky acknowledged it remains the biggest pressure point but highlighted that Trilogy's employee retention has returned to pre-COVID levels. COO Gabe Willhite added that AHR is proactively addressing labor risks by implementing training programs across its portfolio, modeled after Trilogy's successful strategies, to improve employee engagement and retention.

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Chief Investment Officer James Callister confirmed the pipeline includes both SHOP and triple-net seniors housing deals. CEO Dave Sedgwick elaborated that the company is opportunistic about its SHOP entry, focusing on finding the right operator, and expects to complete a deal within twelve months. Mr. Callister added that while seniors housing has a wider range of cap rates, it doesn't make competing more difficult for the right assets.

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President and CEO Dave Sedgwick expressed hope for a UK deal this year but suggested a more mature pipeline is likely in 2026. CIO James Callister noted the US SNF market remains unchanged and fiercely competitive. CFO Bill Wagner confirmed that interest income from the large cash balance held for the UK acquisition is included in the current guidance.

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CIO James Callister described deal flow as healthy and consistent, with recent acquisitions performing as expected. President and CEO David Sedgwick explained that for operators with longer rent ramps, like Linx, coverage data would likely not be included until year three (2026) to allow for full stabilization.

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Chief Investment Officer James Callister confirmed the coverage is EBITDAR and the expected improvement is driven by occupancy gains, improved Tennessee Medicaid rates, and operational efficiencies from the new tenants. He noted the new leases will be structured as new master leases due to the JV ownership. For other deals, he stated that stabilized assets are generally underwritten to a 1.4x to 1.5x coverage ratio.

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CEO Greg Lehmkuhl and CFO Rob Crisci both stated there is a significant 'disconnect' between public and private market valuations. Rob Crisci elaborated that private market transactions are occurring at higher multiples, ranging from double-digits up to 15-20x EV/EBITDA, as private investors take a longer-term view on the industry's growth prospects.

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CEO W. Lehmkuhl explained the rate pressure is due to an industry-wide inventory decline, new capacity in select markets, and customers resetting volume guarantees at lower levels. He confirmed Lineage is strategically trading price for volume to maintain high physical occupancy. He believes the pricing headwinds will abate as the year progresses, as most volume guarantee resets occurred in Q1.

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CEO W. Lehmkuhl explained that while it is still early, the LinOS pilots are on track and performing better than expected. He noted that 2025 is focused on proving the technology's functionality across various facility types to prepare for a broader rollout. He shared a positive anecdote about employee reception but stated that more concrete data would be shared later as the pilots progress.

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CEO W. Lehmkuhl confirmed the fire occurred in mid-August with no injuries. CFO Robert Crisci added that significant repairs are needed and the facility was removed from the same-store pool. They expect to recover losses through insurance over time and will provide an update in February.

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Co-CEO Clint Malin explained that Prestige would need to secure new financing, likely via HUD, to exercise its prepayment option, which becomes available in July 2026. Co-CEO Pam Kessler clarified the option covers the entire $175 million loan portfolio. Regarding ALG, Malin stated that a purchase is now viewed as more likely in 2027 due to interest rates. Kessler reiterated that LTC's long-term leverage target remains below 5.0x debt-to-EBITDA, with the current low-4x level providing flexibility.

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Clint B. Malin, Executive VP, acknowledged a recent dip in Anthem's occupancy but expressed confidence in a recovery, citing past performance. Co-CEO Pamela Shelley-Kessler provided a breakout of the incremental NOI from the RIDEA conversion, with Anthem contributing $1.2 million and New Perspective $1.6 million at the midpoint. Malin confirmed New Perspective is an ideal partner for future growth due to their experience and capabilities.

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Co-CEO Pamela Shelley-Kessler described the infrastructure build-out as involving new databases, systems, and personnel to facilitate a strategic partnership with operators. Co-CEO Clint B. Malin stated that while asset-specific coverage isn't disclosed, LTC is confident in collecting rent on the 2026 expiration. He clarified that redeployed capital would primarily target RIDEA but could include other investments based on timing. The short-term renewal was an accommodation for a long-term tenant.

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Co-President and CIO Clint B. Malin indicated that expanding the platform would involve adding resources on both the accounting and asset management sides over time, but initial conversions can be managed with the current team. Executive Wendy L. Simpson added that they are consulting with peers and do not expect a significant initial investment. Both confirmed there is no major deferred capital needed for the conversion assets, as capital was invested during prior transitions.

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CFO & Treasurer Matthew Brown specified the non-recurring Q2 benefit was approximately $1 million in SHOP NOI from a PLGL insurance credit. Vice President Anthony Paula stated that recurring SHOP CapEx is estimated at $3,500 per unit and confirmed that the company is now mostly caught up on deferred capital expenditures. Matthew Brown added that the next round of financing is not expected to be secured by SHOP communities and that the company is exploring various secured and unsecured options.

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President Matthew Gorman acknowledged that the market has shifted away from traditional triple-net leases. He confirmed Omega is actively considering various structures, including RIDEA, to partner with superior operators and create long-term value. However, he stressed that any such deal must be highly disciplined and accretive, and it is not expected to become a majority of their business in the near term.

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SVP Megan Krull confirmed the situation with the provider tax is still evolving, with different potential cuts being discussed. She noted that the final amount will likely depend on how much can be cut from the Medicaid expansion population first. CEO Taylor Pickett stated that the May rent from Genesis was due on May 5th and was not yet due at the time of the call.

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CIO Vikas Gupta stated that Maplewood is positioned for improvement in 2025, with Second Avenue occupancy at 85% and expected to exceed 90% later in the year, though full stabilization may take 1-2 years. Regarding the transaction market, an executive, likely Vikas Gupta, reported no dramatic changes in behavior, stating that Omega and its peers are waiting to see how things play out but are continuing to underwrite deals as they always have.

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J. Justin Hutchens, EVP - CIO of Senior Housing, confirmed strong move-in activity, highlighting a 60 basis point sequential occupancy increase in June versus May and expecting similar or better results for July. Regarding transactions, he acknowledged a more competitive market but stated Ventas is leveraging its operator relationships and platform advantages to maintain a robust and growing pipeline of high-quality, accretive deals.

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EVP & Chief Investment Officer J. Hutchens stated that the 45 transitioning communities are outperforming the Brookdale assets remaining in the triple-net lease, supporting the strategic decision. He cited a case study of 41 prior transitions that achieved 820 basis points of occupancy growth and 40% NOI growth, expressing confidence in mitigating disruption and executing successfully.

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Executive J. Hutchens explained that wins are driven by price, unique partnerships, and transaction certainty. CEO Debra A. Cafaro clarified that losses are rarely due to being outbid on a desired asset but rather a strategic decision not to overpay based on their internal valuation and risk assessment, stating, 'There are very few deals, very few, where if we want it, we don't get it.'

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J. Hutchens explained that the independent living segment, which includes Holiday, has been a strong contributor to occupancy growth. He noted that while a seasonal dip is typical in Q4, Ventas is not observing that trend this year and expects continued growth based on strong leading indicators and outperformance versus the sector.

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Chairman, President & CEO Edward Aldag confirmed that HSA's operational improvements are on track, with doctors returning and rent payments current. He explained the prior loan issue was a resolved timing matter related to state supplemental payments. Regarding Prospect, Mr. Aldag noted that while PHP proceeds were modest after debt repayment, stalking horse bids for the remaining California and Connecticut assets are expected soon, leading to an auction.

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EVP and CFO R. Hamner stated he does not see a risk to the new operators' ramp-up, noting the collection issues are temporary and expected to resolve as tenants transition fully away from Steward's systems. He explained the $40 million investment was to repurchase assets, like a necessary hospital parking lot, at a discount from a creditor, which will now generate rent. Chairman, President and CEO Edward K. Aldag and Mr. Hamner also confirmed a modest investment in a Swiss hospital and a $10 million addition to a working capital loan for a Florida operator.

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CEO Edward Aldag confirmed the vast majority of new operators are now cash flow positive. CFO R. Hamner noted the rent ramp-up is not ratable across the new lessees. Controller and CAO James Hanna verified the $10 million payment was from a previously discussed tenant who is now current on rent.

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CEO Edward Aldag explained the $90 million covered additional professional fees for the transitions and expects the short-term loans to be repaid in 2025. Regarding PHP, CFO R. Hamner stated the write-down was based on a recent third-party appraisal and declined to comment on the confidential sale negotiations.

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CFO Mark Peterson confirmed that prior projections for Regal percentage rent remain in line with expectations, with the largest portion expected in Q3. CEO Greg Silvers and CIO Greg Zimmerman added that Regal has successfully recaptured market share and is making revenue-enhancing investments in theaters, such as adding IMAX screens, which bodes well for future performance and percentage rent.

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CFO Mark Peterson explained that EPR does not break out percentage rents but confirmed the primary driver of the increase is the Regal master lease, with other properties being relatively stable. He also confirmed the annual box office forecast is not meaningfully different from the Regal lease year expectation on a run-rate basis. Regarding Kartrite, CEO Gregory Silvers and CFO Mark Peterson noted that while operating theaters are expected to improve, this is offset by expense pressures like insurance at Kartrite, leading to a guided net breakeven scenario for consolidated operating properties.

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CEO Gregory Silvers announced that the company will look more aggressively at selling assets from its education portfolio to fund experiential investments, with the sale structure (portfolio vs. individual) depending on what drives the best value. CFO Mark Peterson clarified that the percentage rent guidance increase was due to strong performance from non-Regal tenants, while the other income adjustment was related to performance at the Cartwright hotel.

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CEO William Crooker attributed the increased activity to moderating seller expectations, greater buyer conviction as tariff concerns abate, and a narrowing bid-ask spread. EVP & CIO Michael Chase explained that a typical deal closes in 30-60 days, but year-end deals can be compressed, allowing transactions agreed upon as late as mid-November to close by December 31st.

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CFO Matts Pinard acknowledged Q1 was renewal-heavy but pointed to 1 million square feet of new leasing in April as a sign of continued new tenant demand. He emphasized that decisions are just taking longer. CEO William Crooker addressed the pacing question, stating that being 1-2% behind last year's leasing completion rate is considered 'in line' and not a cause for concern.

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CEO William Crooker clarified that all acquired land parcels have already broken ground and fit into a laddered development schedule. He stated that the company is comfortable with the development pipeline being around 5% of enterprise value. He also confirmed that the capitalization of costs like interest ceases per GAAP rules, typically 12 months after a project's completion.

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CEO Angela Aman stated it's too early to determine a start date or partnership structure for Flower Mart development. EVP & CIO Eliott Trencher described reinvestment opportunities as varied, including value-add or core-plus acquisitions, but noted the company is less inclined to pursue speculative development currently.

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CEO Angela Aman explained that Kilroy is exploring a broader range of uses for the site and a phased execution strategy, feeling optimistic about San Francisco's recovery. EVP and CIO Eliott Trencher added that they are hopeful for a warm reception from the city's new administration. Aman noted that while the timeline is difficult to predict, guidance assumes interest capitalization on the project will cease in the second half of 2025.

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Executive Angela Aman confirmed that the Bellevue move-out is included in the 216,000 square foot figure. Executive Eliott Trencher stated that any other potential land sales are at a much earlier stage and are not factored into the 2025 forecast, with the focus remaining on parcels with a higher and better use than office or life science.

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Vice Chairman & COO John Burkart clarified that while data improves the system's effectiveness, there is significant commonality in processes across the portfolio, allowing for scalable improvements. He noted that the benefits are not entirely unique to each property and highlighted the successful training of over 8,000 employees on the platform as evidence of its broad applicability.

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Executive John Burkart affirmed that Welltower expects to grow margins over time, which requires revenue growth to continue outpacing expense growth. He identified the Welltower Business System as a key driver that will enable the company to achieve this margin expansion for many years.

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COO John Burkart stated the platform is being rolled out over the 'next couple of years' to ensure a high-quality, seamless experience for site-level employees. CEO Shankh Mitra added that the rapid pace of acquisitions makes the rollout a 'running target,' implying a dynamic timeline.

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Tim McHugh (EVP & CFO) and Shankh Mitra (CEO & CIO) clarified that the goal is to drive significantly better financial results, not to create a new fee stream. They noted that while Welltower bears the initial investment, the new tech stack will ultimately be less expensive at scale, with software costs already part of SHOP operating expenses.

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CEO Scott Brinker explained that tenants went through bankruptcy or ABC processes, allowing assets to be bought free of lease liabilities. CFO Kelvin Moses stated the risk for monitored tenants is more tied to the macro capital markets backdrop than specific company milestones. He added that the quality of returned space is mixed, with some ready to re-lease and others requiring capital investment.

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President and CEO Marshall Loeb stated that while EastGroup likes the Raleigh market, there are no set growth targets. The recent acquisitions were opportunistic. He explained that having an operational presence helps in being taken seriously for future deals and provides market knowledge. The goal is to eventually reach about 1 million square feet to support self-management, but the company will not overpay just to grow its presence.

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Executive Marshall Loeb explained that the adjustment was primarily driven by their own increased cost of capital and the desire to preserve balance sheet flexibility, not a change in property-level cash flow assumptions. With the ATM equity window closed, an investment needed to be 'compelling, not just good.' The higher yield requirement was a function of raising their return hurdle to justify deploying capital in a more uncertain environment.

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Executive Marshall Loeb confirmed it was both. He stated that while the volume of initial space tours has increased, this activity is also translating into a higher number of signed letters of intent and leases under negotiation. He pointed to the record square footage of leasing within the operating portfolio in Q4 as tangible evidence of this positive momentum and conversion.

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CFO Brent Wood explained that the higher termination income resulted from two successful negotiations with tenants where the company drew on letters of credit, expecting a net positive financial outcome after re-leasing. He described the bad debt situation as 'frustrating' but contained, driven by just four tenants who account for 70% of the year-to-date total, primarily California-based logistics companies.

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Joel Marcus, Founder & Executive Chairman, responded that concerns vary by tenant type, but high interest rates and cash conservation are overarching issues. He noted that while tenants are wary of potential FDA delays, there is no tangible evidence of them yet. Mr. Marcus confirmed that a key problem with NIH funding is the slowdown in issuing grants despite appropriated capital, which disrupts institutional tenants.

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CFO Marc Binda confirmed that capitalization is pausing on future land bank projects where pre-development work is complete for now. Executive Chairman Joel Marcus explained that while complex deals are inherently slower in the current cautious environment, the mission-critical nature of R&D space gives them confidence. He clarified that he was not seeing broad cancellations, but rather a more judicious and situation-specific decision-making process by tenants.

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CFO Marc Binda confirmed the associated cash NOI is approximately $91 million. Executive Joel Marcus clarified that the portfolio quality is already 'first-in-class' and the disposition program is an ongoing, multi-year strategy to harvest capital from assets that no longer fit the core mega campus focus. Executive Peter M. Moglia added this funds the pipeline without issuing common equity.

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CEO George Chappelle stated that inventory levels are driven by lower consumer demand but a seasonal build is still necessary, albeit muted. CFO Jay Wells clarified the forecast assumes a less pronounced holiday build, not further cuts. President of Americas Rob Chambers explained that while new business decisions are slower, the company is successfully closing deals from its existing pipeline, though the transition of that volume may take longer.

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President of Americas Rob Chambers clarified that the $200 million figure is a probability-weighted estimate from a much larger pipeline and that the company's win rate on these opportunities is increasing. He confirmed that netting this new business against the consistent 3% churn rate is the correct way to view its potential positive impact on occupancy, which is expected to materialize in the second half of the year.

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CEO George Chappelle clarified that Americold already has 5-6 facilities in Dallas and the new project is a consolidation play to build a facility of scale for large customers. President of the Americas, Rob Chambers, emphasized the build is not speculative, but a unique, hybrid automated and rail-served facility designed to meet specific customer requests for consolidation and efficiency. He confirmed it will be multi-tenanted but filled with a pipeline of largely existing customers asking for more space.

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CEO Darrell Crate, CFO Allison Marino, and executive Meghan Baivier explained they proactively re-leased the space to the State of New Mexico with a new 10-year firm term lease. The U.S. Forest Service consolidated into another Easterly building nearby, with its lease expiring in 2026. Regarding the D.C. property, executives described it as a high-priority "center of excellence" for D.C. public schools, located in a key economic development zone for the city.

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CEO Peter Baccile stated they could not quantify the number of paused tenants but noted the underlying demand still exists, with the main question being timing. He emphasized that renewal tenants are still transacting about six months in advance. EVP Peter Schultz added there are no specific industry or market concentrations among the pausing tenants. CFO Scott Musil clarified that the remaining 2025 rollovers are granular, consisting of leases under 100,000 square feet.

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CEO Peter Baccile said he could not quantify the number of paused tenants but noted that underlying demand persists and renewal activity is strong. EVP Peter Schultz added there is no specific industry concentration among pausing tenants. CFO Scott Musil clarified that the remaining 2025 rollovers are granular, with no lease larger than 100,000 square feet.

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President and CEO Peter Baccile confirmed that in target markets like Pennsylvania, Florida, and Texas, current rents are sufficient to justify new development starts without needing to underwrite future rent growth. He described post-election tenant sentiment as an 'evolutionary' increase in confidence, resulting in more foot traffic and RFPs, but emphasized he remains 'cautiously optimistic' pending more consistent lease signings.

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Christopher Caton, Managing Director, explained the timing varies. Renewals can be signed anywhere from 3 to 12 months in advance. New leases can commence very quickly, sometimes within a couple of weeks, but can take up to around 45 days, depending on the mix of new versus renewal leases and the size of the space.

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CFO Timothy Arndt clarified that while USLF has a recurring promote structure, the company's funds also provide for promote opportunities upon the completion of successful developments. He explained that Prologis is compensated for the value created by its data center business G&A, procurement, and structuring efforts that benefit the funds. CEO Hamid Moghadam added that value creation from pre-procuring equipment with the balance sheet is another way fees can be earned.

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Timothy Arndt, CFO, attributed the increase to leasing commissions and tenant improvements, particularly in high-rent markets like Southern California where such costs are inherently larger. He also mentioned that property improvements can be lumpy and were elevated in Q3 but remain normal on a trailing twelve-month basis.

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