VTR - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Q1 2018 Ventas Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call maybe recorded. I would now like to introduce your host for today’s conference, Ryan Shannon, Investor Relations.

begin. may You

Ryan Shannon

morning to Good results to Ventas XX, the the Thanks, the and Company’s call XXXX. March ended review end its announcement conference year Sarah. quarter welcome today for regarding

many and stockholders materially express me in that statements the or and that securities uncertainties any actual be laws. revisions the other any results any Company’s made expressed considered updates let recognize start, risks, others statements be subject should forward-looking we that publicly to disclaims projections statements forward-looking the contingencies, and to and call and whether conference to expressly this cautions federal may from implied. changes within statements expectations. release The or these all are any obligation to during forward-looking Company certain differ predictions may to Ventas of As expectations, meaning reflect

affect to and Company. included supplemental A. Investor our the note on measure operations as for GAAP and information reconciliations that directly most on Company’s December XX, as Please the other and about the report Debra Cafaro, www.ventasreit.com. I non-GAAP in each of well at between website annual quantitative Chairman the referenced Company’s CEO XXXX the Company’s Company’s is call comparable over Relations turn may conference disclosure SEC this call available results its Form are of and year the ended filings. schedule measure, factors the section now will the that the Additional financial XX-K in

Debra Cafaro

earnings I’m our our excellent update on welcome discuss want highlight our today to joined announce first on and XXXX priorities, mutually executing morning delighted and continued our expectations. on report others today you, our beneficial Ventas to our to you our improved Brookdale team I strategic year, agreement progress the to start call. of be XXXX the to Good shareholders Ryan. Thank quarter you to to all by participants.

for in classic a priorities housing year against appointing delivering significant In delighted all triple-net financial fashion, profile, of all our establishing investing leader strategic for Ventas balance improving quality platform, Our and to a senior high sheet, maturity business, objectives. growth, commitments. our future new on the the while our I’m office improving report these our included a new progress

Let’s to normalize $X.XX start per a has our to by to this for strong normalized FFO results. with $X.XX start quarter. expectations We With were year, the grow pleased increased FFO to full to per share. X% year XXXX $X.XX our share

well X.X% performed growth. segment total to cash also each portfolio with contributing diversified same-store Our

the are resilience really mix, of portfolio. our We with happy and quality, performance differentiated

times. enhanced standing X.X also and flexibility and to strong debt improve EBITDA We maturities our ratio financial to recycling to a by a the during and quarter capital our debt staggering strength net our

development redevelopment We and continue and to science senior growth future invest through highly on focus in centers, innovation medical institutional and housing office buildings, our life project. selective quality,

We are with science development good new seeing life our projects. momentum

at Penn open Washington recent development scheduled approaching XX%. phase. year available also development XXXX our expected has open has commitments Our Meanwhile, to in XX% to this commitment for of to XXXX which later at University approximately is this Market now

and university-based our remain allocation as the grand to health medical Hospital remaining office system. University our XX% our innovation The in the Southern $X San priority. capital after and anchored opening Health, is our now early centers of is space. downtown most by creditworthy trophy billion expected Francisco preleasing, one-year of year. to Duke Sutter into approximately science a life reached Development building expected Sutter AA-rated MOB development and has XXXX a of opens expanded next by top stabilized redevelopment Finally, summer in adjacent MOB has only which at asset tenant opening available be Meanwhile, new large

with Turning housing reached living a the long-standing and tell to beneficial in maturity I’m you deal pleased our triple-net a to mutually senior that nation’s very we’ve operator. largest significant senior Brookdale, and improvement profile, tenant the

straightforward change ability other provides significant also extend guarantee for combine enhancements agreed and even it the $X credit for us does eight Brookdale occur. provided master the of population objective to asset a assets our the of asset standard the includes to support Brookdale agreed Brookdale, stability The under Brookdale control control each We’ve of terms Brookdale, lease up Brookdale which greater all of lease, XX% and quality, annual balance the executes average agreement to is to reduced its rents diversify team, sell Ventas improve to one remaining reliability rent future at will turnaround extremely whose of for into robust. and lease cash operational our new portfolio portfolio. of the an more on when with to of and XX/XX/XX, and further in flow. for be while To the we've its years have give We senior million years the change credit

ways command our and we relationship, of We decisively to support shareholders. interest invest Brookdale’s the optimize find to leadership Ventas team efforts for new the innovative portfolio, operating performance forward. them portfolio advance Brookdale continue to our and Company acting So, to and drive of in move operator in across significant

per Brookdale that our lease and our average $X than expanded of triple-net total of the years. year to of agreement, housing through we matures completion million XXXX is maturity have weighted senior less triple-net end XX the rents With

living with in operational quality January operational We start. and successfully upside high and manager newest onto led good sequential the given off sought-after strategic business. senior both are fully has of strong in asset has partnering his to ESL business. a times the and our platform, occupancy. Ventas-owned important living senior of transitioned and ready us the in housing scarcest Moving portfolio portfolio come team living are to improvement Hsiao because flexibility winning of senior communities it begun our by ESL including a management ESL, in the ESL the staff and XX show to a The senior in Kai team to experienced executive, ESL portfolio team is has

believe With behind from us, growing the we drive return we adjusted and will portfolio. this flow cash good transition risk

As are accomplishments Ventas, our our proud anniversary of we at driven on come upon and we we in more. today, market our our enterprise challenges REIT remain and remain future. XXth the bullish for industry, our Despite we

fragmented where across the team sheet, plus an a else long has a and can’t market, creation, large market investible I rock balance think an can solid that yield, As dynamic, of look experience demand extraordinary value story, XXX you stock BBB and of results. S&P equity compelling in invest excellent X.X% dividend entire I a with and a innovation record

want of integrated I our to happy of that academic most first the and Pete Pete on square call success turn welcome high ambulatory CFO, long our Pete estate, bring Before real business am earnings to over to next valuable exceptional now, in level to Bob centers. great Bob including recently the and accomplishment science April office of especially foot sciences his a energy will our new as and focused take to performance. And call at medical our I will experience highly and Ventas. healthcare, Probst. higher know the begins in record We Bulgarelli life education has team remarks, colleague XX the leader business. Pete his MOB joined life million university-based

Robert Probst

Thanks of am our office to a Debbie. portfolio I report happy properties. and from start the seniors high strong to year housing quality healthcare,

our ahead NOI in Our cash of quarter total the growth. first to contributing X.X% property of portfolio expectations, growth delivered all segments same-store with

for second and Let me detail starting a our guidance quarter first SHOP. with XXXX performance

Our year strong, X.X% business year with of came versus ahead growth SHOP of our NOI of the expectations. full out gate cash prior

QX moving same-store prior have exceeded at our X%, basis than Less in trend operating XXX below do new at the outs competition growth first expectations were flu place occupancy in in supported was impact and expected, nearly the in season its As severe was RevPAR quarter. by revenue impact stores expectations of This XX.X% with which the an first QX activity markets. line were Meanwhile X.X%, the in was supply did opening nearly in X%. strong. continues revenues delays freight quarter wind a by also first new were competition challenged levels. quarter mitigated quarter for the of muted better those move XXXX. expenses A opening. points and occupancy on RevPAR first increases

up quarter a number a in the San basis note, sequential in in to competition did the and operator to in a the versus true Ontario. Los At new Our fourth markets a a see declines terrific managing including would strength construction holds levels and XXXX. quarter staffing notably was growth Chicago in I by mitigated trade effected fewer quarter. XX% secondary by Atlanta, expenses we starts benefited we most This Dallas, and Francisco, with new the insurance traditional favorable and NOI QX our areas strong by of Angeles, points continue Boston level, our also markets. continue see market from starts decline job also XX NOI of

of the fact, quarter our lowest level first the markets In construction XXXX represents new XXXX. since starts in

though increased of the year, deliveries this Despite minus the our we full-year to the basis in maintaining was assumptions. trend the percentage XX minus trade However, way NOI of our areas strong by delayed as updated the of construction X% already start construction X% inventory stage to recent are new points. same-store guidance in

of X%. Our and RevPAR new basis reflected between ESL, occupancy anticipated The guidance X% function supplemental operating range and spacing resulting senior points now points full housings assumes XXX is our deliveries year now impacts. is full to to year the of basis corner SHOP reporting. gap, low QX guidance is a now XXX in year improved new in range an prior NOI grow while revenue our

the basis growing We in by high portfolio pleased team to Kai transition. since running, to welcome business. the ESL our the hit points over certainly XXX quality ground ESL and are has SHOP occupancy

triple-net onto our Moving segment.

result does change. positive continued XXXX. strategies hold, cash was coverage same-store improving generate as include coverage and to taking reimbursement reporting basis our of current available LTAC X.X NOI the portfolio, in prior the supplemental the Our not quarter hence impact basis, in the IRF we PTM results that cash stabilized XX escalations. X.X to times, of In coverage and sequentially portfolio an LTAC Please remains triple-net the overall by XXXX, housing same-store grew at cash portfolio stable months same-store outstanding X.X quarter XX driven times. the coverage X.X% in note rent coverage at senior first EBITDA base our rents latest lease fourth triple-net reports for news quarter also impact a of LTAC LTAC with times. points expect down portfolio beneficial our our reimbursement PTM Brookdale a agreement. operational Trailing our flow of information flow on helps triple-net PTM the by the for With recent

quarter, assets at and expect SNFs Our skill times by which X% or principally NOI. of annual to health to the industry rents now just Genesis, X.X operated on in coverage the nursing continue. continued of represents top $XX The trends million experience headwinds line, bottom we Ventas'

results delivered East In and path XXXX, debt line Finally, IT rolling metrics in across acquisitions, strong refinancing the structure three rent of terrific XXXX, into a system its platform, out and integrating Ardent results. the Center this Ardent enabling is stable driving new and times. top leading Texas and Medical peak coverage across on bottom focused

better than encouraged proposed per of CMS rate XXXX as X.X% also by hospitals. We’re expected

lease is same-store NOI and segment forecasted XX year X%. office our reporting Brookdale grow extension, first now X% For and our portfolio points we our the X.X% is impact partially our will represents quarter. which offset of escalations healthy in portfolio the in triple-net cash by placed guidance. review the cash basis asset between the of incorporated now NOI of growth fully lease XXXX, cash which same-store We attracted delivered Around then XX% the full NOI

out break and between university-based science medical results office these me life our portfolios. Let

occupancy life driven science NOI business increasing exciting to an XX X.X%, XX.X%. Our QX same-store points by by cash grew outstanding by basis

year life science XXX, the we growth the continue robust NOI X% in expect to of X%. full range same-store to For

MOB business, the office NOI Turning first quarter. X% in to medical grew same-store our

occupancy Our excellent benefited with did tenant above retention in from job the team lease managing quarter. Revenue escalations place in first X.X%. that an also XX% exceeded

to X.XX%. office grow of to expect basis, X.X% and strong of forecast assets medical same-store MOB portfolio our in combined science We more in cash NOI XXXX. the same-store a to steady growth to office On range X.XX% portfolio XXXX we continue life X.X%

in of Now onto per from the Income and cap venture by transition. XXXX driven to $XXX the Dispositions a and rent we operations as below related million and sell proceeds addition are for our XXXX VSL beneficial Proceeds cost and impairment times continuing joint growth overall in Normalized X% cash final company of in X% equity to were receivable debt at totaled times. year of to accretive financial deal portfolio an loans quarter an receipt in expect updated healthy in this first to rate FFO share and profits total repayments on a XXXX. unconsolidated from used our same-store the Holdings SNFs. to X.X% results grew a prior X.X of guidance. a our debt, retire in in net improvement by of $X.XX, X.X transactions. per acquisitions ratio share in EBITDA the quarter first was an dispositions resulting result on to

X% successful since execution senior capital $XXX million notes. of of and strong markets staggered the in of retire million notes in maturing to order the We February maturity and extending XX-year $XXX also of in profile issuance X% had

risk we XXXX. notes refinancing retiring of tendering X% by In in off the due $XXX and table addition, million took senior

at for now range previous the Let's our guidance $X.XX. increase diluted XXXX We're This guidance normalized of both guidance year between the for our represents share range the close for as full the out FFO a our as fully to outlook updated Company. nearing excited improve to the this guidance. year well midpoint and stage compared the with in $X.XX to early at $X.XX

for initiatives. to the expectations strong retire debt. billion our to the increased X%, of our cash of in include are and loan year, our by asset Notable flows Our rate a the over principally revised proceeds dispositions guidance expectation of resilience $X.XX from which progress the will against at repayments cap assumptions driven key and start the be used proceeds

XXX% Brookdale million. charge the of noncash the the by and JV one-time of this of agreements assets of $XX assumes shareholding ESL. in guidance our ownership sales Our by managed minatory Ventas the new impact including The

strategic same-store now triple-net outlook For the team the year full for to the NOI SHOP X.X% execute of guidance cash questions. close, to start lease the guidance with our X.X%, XXXX. the excellence pleased I’ll and in To initiatives updating the we Brookdale our growth year, are the to is very Ventas is the hand impact portfolio from our committed strong with total same-store our office extension. and line With operator it with to of and range revised of unchanged to against open that, improve to

Operator

first comes question Bank Juan America. Thank of with from you Our [Operator Instructions] Sanabria

Your line is now open.

Juan Sanabria

ratio was Brookdale impact the Just EBITDAR through assets on the the lease, us to I able and coverage you hoping you can the you’re to, execute if sales? post? targeted what to walk of go that pre on kind And to expect

Debra Cafaro

EBITDAR leases. is are impact small announce amount deals. our The It see we rent good on minimal just parties is positive creative today. rent pleased a to I have the but credit, is to credit fairly would can So, under a coverage therefore and as both the we cash you think the do Brookdale the for the deal deal like way that really

Juan Sanabria

the any potential long-term sense there is trying the at you to of below number it a just sales? still because one-time? or of a from Is impacts I’m this EBITDAR kind like asset think sustainable looks material good why coverage is get

Debra Cafaro

protection bridge and while purpose Juan credit deal give enhanced longer of lease the we us turnaround. is really good term with operational the much support a a to Brookdale Well, to contribute

this we eight meanwhile wave with years forward great protections know we’re our and about. and will Brookdale more substantial silver It gives really happy on that. cash focused the an feel is credit visibility that going turnaround expectation the our us, be team to excellent overtime so, And operating that flows about is when on and now coming great the from lease for the need that we

Juan Sanabria

the XXX% decided is Then it you any occupancy mechanics if like forward Is just from just than It down? coupled within is -- What the comment a the see that a of transition? transition on here you sale follow it headwinds you to rather gained minority to operating a you've those keep anywhere could it and up pricing, Eclipse, piece. seems related looks of going assets like drove decision?

Debra Cafaro

I the we a us. have really What We is doing are happy you team think great. that tell can behind aligned is to transition and successful

now, own here our our we're move the We Right a like options and portfolio. upside evaluate to will portfolio. we out as continue options so are to we and we it it very happy pointed we And but good is portfolio you've reevaluate decisions the as the know as guidance about valuable it. our did out on feeling correctly take

Operator

you. Thank

RBC Carroll question with next Michael from Capital Markets. Our comes

open. now line is Your

Michael Carroll

kind Eclipse. we something results? the demographics you off those upside related that to kind portfolio, in do if for is of operations? of Just that describe wait streamline that can Or of Juan’s better the to of team new could have you kind question see Debbie, that to impact

Debra Cafaro

occupancy specialized see that very segmented. we The time. the really we a so And upside starting to of that probably the plans by traction a hope is there's improve is and component that's growing asset the portfolio been since a that gain where see operating we component stable flows trending will large cash and very can then of transition sort performance There's targeted we asset really flow. cash positively think over improved deliver and planned and there's that biggest

Michael Carroll

rid And Brookdale still properties agreed the have Or specific off? out those on work potential do sell figure what your your to already the you Have doing then and get can those research And color identified? doing provide asset you you portfolio. want Brookdale? kind of leased with properties some sales been to to are assets

Debra Cafaro

while completion agreement. my outlines of for with other on Cobb a as and the been our a of this a Brookdale colleagues Ventas' has you working number Well, John can and quite colleague imagine,

identified We targeted a be of final group to are we assets would that for have good would details assets yet be assets the group think directional performance portfolio quality. and agreement sell a think a determined of potential that jointly around would really The of that but be we pool there improve is disposition. to

Michael Carroll

assuming lower And have these assets coverage metrics?

Debra Cafaro

the that how just really somewhat lease within master on lease. you the it rent coverage Remember is allocate depends artificial within

So operating not assets the believe to good as is that's as identify that idea future the be assets you're where the performance not may you real selling.

about of lease. not master a future really about coverage somewhat is as assets, it's allocation So as said operational within artificial the it's the I which

how about are we think the which which one So reason portfolio, thing. of in of could think a to that segmenting to then assets that’s upward are strategic assets be either nonstrategic for it, by another think that operated else ones performance do better trajectory or not better the type terms have we and someone out or

Operator

you. Thank

Our Rose Smedes next Citi. question from with comes

line now Your is open.

Smedes Rose

I just moment. a turn to SHOP maybe the for wanted to

And occupancy results You from were the more but by hear the that intense there notice still operators at more noted outlook that be season to wondering would range? full full impacted relative thinking is or I’m unchanged. end do your flu that -- changed better quarter year you about that first higher of all? comfortable you year have just execution, your at you you the the are

Robert Probst

good come growing the out pleased are with of certainly in indeed We the strong what X.X% to did. that’s quarter, we the gate first start always

last openings quarter for the quarter now. new the trend we’ve number quarters One openings delayed mentioned of new several that reduced the I of in and benefited the things was the seen

the our open outlook assuming is of the in those are So, year. going really that to balance

impact and new see coming increase We’re the an consequent in going online on to the P&L. things

early keeping obviously we’re good so the but on year, start the to range. assumption So, still that and

Operator

UBS. comes next Nick Our from with question Yulico

is now line open. Your

Trent Trujillo

a I clarification guidance on This an clarification was, is that how some Eclipse you back having in are to just what keep circle maybe versus in wanted the FFO? Just since embedded wanted potentially was to of XXX% for and Nick. here on impact terms now going JV? to of much you’re potentially portfolio retaining Trujillo Trent with

Robert Probst

was our February we not be assumption into guidance consolidated XX% that and into result. would in the JV sale would it the Sure, approximately

the So, XXX% impacts kind the on in of consolidated guidance. you’ll through we P&L coming And to keep of a financial decisions see our through. see the therefore, guidance in P&L

de FFO real So, guidance. impact that’s on changing really The is minimis. the

Trent Trujillo

front? wanted on there that And clarify, on to line? the again just think latest was Are the LHP is pre-payable I any thing March. starting what discussions that

Debra Cafaro

wants asset we’ve continued for our would in Well, capital and as its and year, streamline continues maybe LHP around consistently the into structure projected way. be loan Ardent and consolidate do to to year the more a guide refinanced in well

be that’s And expectations by conditions. obviously so, market our will driven that

Operator

question Anderson Securities. Mizuho next Our with Rich from comes

line now is Your open.

Rich Anderson

just issue. if So, get a bit of kind the I into rent could little Brookdale

million I’m get rent XXXX, a start if reading think trickles million in profits of year $X with off I and you into at and that’s this there. this right, So, it you concession down there is $X

years. So, its of it million up from right cuts collectively rent adding $XX eight over

is you’re question silver wave if about of appropriate achieved all coverage So, gradually the but to XXXX, it the goal once, the appropriate time. to good maybe aren’t even well in -- have once hopefully, as better that or and it you issue Is by coverage coverage way think a then the that you overtime doing resolving the it? call you say that a hits

Debra Cafaro

a beneficial efforts and we're team good again support about create to it can drive is operational to mutually improvement. the way agreement trying to It of think the the we where

always have thing the to shareholder said drive create is We value that can that do Brookdale operations. best to

why you the over pattern see supportive are you rent that's all EBITDAR the out, we to we effort about of as expect and -- Brookdale point improving of would of correctly it's the so, credit that and portfolio. And time

Rich Anderson

rights least changed bit for some little a Can consent And control, how negotiation? that as a this have degree. you relinquished then Ventas of at to give has more color the of on topic on of consequence Brookdale says you change your that

Debra Cafaro

Yes.

modified basically have we control change So, right. our

from so. Brookdale also strategic more who that operational including at always do deeply in and have takes importantly the to and wherewithal protect become XXX,XXX financial control So care Ventas about as side I seniors has if change credit enhancements because reputational side it flexibility an we their And from mentioned significant And outset. the in that that of the situation that shareholders cared does change some the extensions, some that and flexibility. these Ventas side streamlined get and gives lease event, objective control occur from of we

Rich Anderson

if don't And like if response you is in them. comes someone What that? to replace possible your

Debra Cafaro

think a Well, that’s liking much senior do really operational seniors. who it. care is I and has to objective in significant experience with its who a firm should a view position in things don't living very has company has and be Brookdale it firm do credit for someone that's has a behind reputationally who It a for important, Is that to or been. the as an it obligations company always seniors to is care does

Rich Anderson

some those have of you are Right, not so boxes if can checked, a voice?

Debra Cafaro

Right, took like if over. you

Rich Anderson

the be Brookdale really? Kidding just I basically? I no with element. line you guess me. assume the about an correct. that I rent mainly inclusion isn't issue Am of longer Last thinking the it correctly guidance can guidance, accounting question on Now CPI straight the the that's

Debra Cafaro

about gap are this for let doing lease for cash that, years, you. than is rate rent, same. we and it was cash gap Yes, and higher get our really our we this before simplify What’s approximately deal the good it eight expansion by

And can aligning that. think it so like think more cash gap I you and it, in we

Operator

with Advisors. Michael Knott Green from comes Our Street next question

now Your is open. line

Michael Knott

everybody. Hi,

about portfolio full one the you maybe in operator recommitment curious, a of Brookdale versus Debbi, hand appose to then how of keeping thought net it triple on just and SHOP sort maybe transitions that conversion ESL maybe lease? On entire as front, to strictly Brookdale

Debra Cafaro

repairman. like Bob's Well, thank LTAC feeling you. the

we’ll circumstances. look for So, shareholders partner, happy mean excellent we to certain I I’ll to cases to we believe this said have an optionality continue to that then and I a we certain in and have retain good certain Ventas want be is to be -- flexibility transitions want some as outcome on asset including and answer move we Brookdale,

Michael Knott

if you that SHOP continue barrier into the and And is then of or comparing to you of maybe as performance the just what side, I’m site you guidance? expected built one your had barrier that to sort between worse on sites than did bifurcation and two year markets. better start curious the sort those low high is side about

Debra Cafaro

you Thank for Bob. care partner taking of my

Robert Probst

good seen line, the bottom The occupancy, very Look, of power, a both are the Boston and prepared We’ve of theme the again those good very that top literally bottom et Chicago good year LA, over in markets stronghold pricing the slide And called I and course that’s to on perspective from the the continued perform openings encouraging roughly as well. helpful challenge cetera. line Atlanta, is momentum. at also markets have new market performance which common time But it for is lots delaying generally perspective. of from really new in is the and us. that I no for expected, What is surprises the I the by in starts really so changed materially think unique absorption and to newables hasn’t future the highlight occur, obviously and which to planning give very to also profile for remarks,

Operator

with question next from KeyBanc. Jordan comes Our Sadler

open. Your line now is

Jordan Sadler

one have question Brookdale Debbie. Hi. you more I I advance in for apologize

Regarding credit, million timing $XX guess of sales, figure rent the on rights additional I just I’m of you if under their this the how still… trying much potentially you concession to or depending

Debra Cafaro

no. No,

Jordan Sadler

Sorry.

Debra Cafaro

no. no, No,

Jordan Sadler

through I go potential, to -- $XX a trying you was was want just to million that? there credit

Debra Cafaro

no. No,

from Okay, and has yield the that all let six proceeds we say rent on the numbers about of sold, at quarter XXXs rough get we get the what in basically. that XX% a of could there the a depending be in -- is are credit the the proceeds annual portfolio to Brookdale

Jordan Sadler

we think that that should million of a up Is how to it? maximum $XX credit about

Debra Cafaro

the a Jordan. If relevant XX to is the calculation, part of somewhat second

Jordan Sadler

Okay.

Debra Cafaro

all So, the…

Jordan Sadler

If XXX. you sell

Debra Cafaro

Ventas on different achievement. basically way. minus, maybe now to proceeds which me this about Let portfolio stay times Think the X.XX% try All certifies rents it way. the this that's it that there net

Jordan Sadler

So you could on assets and credit sell a $XXX X.XX% theoretically? that million of Brookdale give them

Debra Cafaro

on it all proceeds. Yes, turns

Jordan Sadler

Got it.

have leasehold they my full the guess will was of or those sell? leases which terminations sales those but surrounding will do of control over my and necessarily, I you assets they any heart those timing So rights How do really and question -- do have interests? in terms terminate of when question is

Debra Cafaro

And redevelopment proceeds? the those about development obviously science, process reinvest given it again in into the or fact year positive office be would Ventas, and think again next we and a really that seriously a those two, money Well very sales that as encourage to that happen getting market over companies would Brookdale think the redeploy that portfolio, conditions. life this help we to help it. potential subject to for we think could how medical That's improve

Jordan Sadler

those can't terminate Okay, can option? their they but leases at terminate, they

Debra Cafaro

it's we at be that would there Well would a be idea is full time. sale, would new point a buyer. lease scale There in the so no

any know proceeds. housing they to which the buy and senior benefit that wanted could of enhance have operating who person asset we would You think

Jordan Sadler

Okay.

Robert Probst

just sale asset it's a to third-party the of which So again…

Jordan Sadler

thought No, or were of may but dragging how process say feet they I it your the feet. dragging guys was long have understand your you taking you and least were let's in at terms sale

sale? have And rights control any accelerate so to or they do in that

Debra Cafaro

and commercially way, work good that where we've cooperatively assets both for sales worked them buyers. the mean timeframe together and sides a the reasonable sale we to something optimal in are we on identify for out asset would invest think I a to sell

Jordan Sadler

on a who little that? for said helpful. you Bob you that's joint stake, just Nursing other the Can venture shed is? X sale. I is Maybe of then bit it And on your it it light cap, is what one I the sure Skilled Okay wasn't had

Robert Probst

being assets business cap effectively therefore those about that there selling we an be old a I X as recognize, on rents. of to attractive us venture, mentioned impairment cash at at XX there ultimately cash XX It's sell that quarter Small that to exit assets. other a joint if consequence first for rate the deal And saw and within decided gross, in an we but - price. assets, but million at those want another share you get small we'll Sure. proceeds which SNF

Debra Cafaro

interest. a the venture, in we’re Yes, our quarter joint selling we're quarter so of

Jordan Sadler

XX million be share proceeds. to your And would gross

Debra Cafaro

exactly. Yes

Operator

Stifel. with Vanacore Chad from comes question next Our

open. now is line Your

Chad Vanacore

I little detail to a just leases. get the on more wanted Brookdale

some the in have met So you the this control. have change What that control? order change the key on thresholds objective be of on metrics to side those the mentioned objectives in of to are of

Chad Vanacore

everyone. All right, for let question. just thanks recap me the Again for

really So, for and hence to but there standards. is have consider. control One we financial in would as are protection the basically result operational I’m do one reputational. through that, there that is control XX order additional to lease in a occurs a CapEx principally three rents is change And standards to received the out that as fees. are commitments classes. – the be provided simplifying over is In change experience general objectives One objective asset expansions of than objective, chase obviously, control And objective enhancements fire. those including standards an well and we’ll

Chad Vanacore

there financial Is a Okay. on the threshold covenant?

Debra Cafaro

Yes, and leverage there is significant requirements. worth net

Chad Vanacore

the CapEx and referenced for possibly commitment you then Brookdale And additional Ventas.

lease? new go car under what are to amongst now where So, they the the commitments and lease the

Debra Cafaro

and consider then for would and those performance Brookdale there so, And to the is we the appropriate responsible the we market as them work it’s Brookdale and agree Right, work if which ongoing the to based triple maintenance invest quality will net whether release, in hopefully definition communities. market performance capital and press the said capital of Ventas would to improve additional we return with CapEx. with would as investment, of course positioning on asset to be a be the improve again tenant

Chad Vanacore

new under the the year So what’s minimum per requirement CapEx lease?

Debra Cafaro

about a it’s unit serves a $X,XXX memory If year. a

Chad Vanacore

Brookdale Okay, there? just that’s referencing then mentioned lease. some protection And the are you you What in credit great. additional

Debra Cafaro

type handful new requirements operator if credit conduct that of leverage have as a is we enhance worthy of financially to requirement. a type those network said business I that is Well, seniors. the credit before change that are is control. And which typical there taking to Very requirements typically know and is care

Operator

comes Markets. from Kim Our next John BMO with Capital question

Your line is now open.

John Kim

would right a up be sale a any operator to got quality you've transaction that completing where has QCP interest? but of high itself put game different bids. a nursing just to wondering open then skilled and I’m this

Debra Cafaro

it test SNF has sure the passed not I’m John.

John Kim

SNF. like looks It

Debra Cafaro

That's that with who involved should this the parties something probably transaction. in you up take are

John Kim

interesting no? be that to would So or you

Debra Cafaro

MOB focused delivering and performance to know investing which as in our about our is and development you drive are really talked plan we've shareholders. life redevelopment really growth executing and science results We future for through our our really with operators on our and working

John Kim

And a question Bob. for the then on supplements. Probably

And metrics your that of big All up sale? for if and wondering exclude disposition. that's equivalent how held dollar assets I'm assets portfolio $XX is to the million for

Robert Probst

Outside – was now intended for It's or those about for materially are they most I so sale. assets that the those assets sale there XX. a talked held of are dozen and

So of it's a proportion properties. the very XXXX overall small

John Kim

of sector XXXX? some do or and and to expense plan within then are planning G&A. I'm this constant wondering to outside internal if that in acquisition you're it And currently doing leasing And REITs other healthcare

Robert Probst

first part, commendation which along that That's we standards, so everyone a think and next with else working right question now on for great year.

goes. So see how we'll that

having tenants of leasing the extend of to One those that potentially costs.

through right as obviously and back we we'll report working that So we're get now more.

Operator

Jefferies. comes question with Tayo from next Our Okusanya

now Your line is open.

Tayo Okusanya

quarter So lease you net lease my and the big breakout that coverage X.X portfolio, it flow for correctly the that X.X seems that Is against by question might EBITDAR change I'm I'm is Brookdale X.X and I to And correct? reflects somewhere if trying it look quarter, coverage move from am the reading cash to this somewhere has quarter. X.X piece like between last last comparing at that looking taken to this triple Brookdale.

Robert Probst

reflect we've all math. agreement X.X as and that triple-net piece this bucket to Brookdale today old group any partnered at in TTMm, but biggest X.X imagine been did the talking does doesn’t housing X.X% the so move quarter. is include disclosure, that's see to relative Yes, our of about to on again you the I the the of And Wells you is speak last which senior mean

Tayo Okusanya

That's the math.

I that have Okay, that now so correct.

So EBITDA Brookdale. around on little to if on like that to the EBITDA points X.XX old you somewhere number still slipped X agreement basis down It's for number X, about you adjust a X.X show kind coverage an of bit.

to be of why enough sustainability backs question, going why feel to might the Juan's confident about -- So coverage. only a $X the million credit

Debra Cafaro

what I Well back expand is to here years. maturity out Again, me we’re feeling eight for lease the to guess.

XXXX to when our we And that senior near-term of flow support future wave We received quite improvement. the the driving Brookdale that on are and silver to full cash importantly, communities. credit stream. rent team, hopefully who support bridging the new as we force significant focused giving operational of are will reliability in We confident Brookdale the enhancement of really customers some living causes will is be all are of

from lease really the improvement bridging it be and have will meanwhile, cash where operating And again at Brookdale the robust expansion, so of improve resilience forward the which of future we extremely visibility be to a think great. our credit period very support credit I demand about carry And and then as the as senior and population said flow. time to very, the will

Tayo Okusanya

of another have get get and the believer release give of $X million. further most large, then from fundamentals think us I $X so now today million I what to we another strong the because even months you the know what is XX guess saying press will supply

done go today don’t just that of people kind where just pain think through it. cut, kind of I the we to take So, kind than to us rather we’ve with of what depth want

is comfort thing? type just I it going put million $X some to of think So, we’re that

Debra Cafaro

is And really upward Well, our key we to we we Brookdale leases eight believe trajectory think, which about. is great we feel we team where focused should really, improving and the years are good for very are the on about feel people everything. really really expanded that operations which

Tayo Okusanya

That’s Okay. All helpful. right.

Debra Cafaro

again, And believe we’re time at succeed. same Brookdale to helping the we

Tayo Okusanya

Yes. that could that you an pulled in? assets our what of get The on targeted indicate and on pull rent coverage sales,

Debra Cafaro

on the talked based asset the by of asset master Right, when as is coverage. about we the in what we schedule before, a coverage have lease we write

consistent board pruning. will to have assets across and focus of performance nothing with to there we’re better, the assets can by lease be maybe the as that growth doesn't one quality can non have of the the sale we for are performance expansion. profile, has the retaining. do the in on to lease goal the a leasing should across of that, improve portfolio local else maybe future market us expectations of of focus as really assets to our as is operator relative someone The future it it assets be is as consistent again, but coverage that the maybe the of with future asset It will basically good the that of So, with everything being by assets which strategic do do do expansion, both retained

Tayo Okusanya

Got okay you,

Debra Cafaro

We question appreciate support. and the your

Tayo Okusanya

quick one Thank Bob, just You One don't you got mind. it. if you. more for

portfolio to about keep is really in decided where raising guidance looking like why you what you SHOP again it kind right new get more guidance? performance XQ. SHOP Just Could for before kind you've us the And began of good confident are you of the remind pass now? used just

Robert Probst

Sure. made Well, here it one quarter not clearly. does

And on full so we a the over on pacing on by next pacing to better new of really that's So, the of handle consequent see range experience and year. to to really get the is driven get and the quarters some unfold revenue. impact deliveries more occupancy, where frankly like want the we

Debra Cafaro

we to start are to the Again happy and year about that.

Robert Probst

it. take we’ll Yes,

Operator

One. question Bornstein Daniel next from with comes Our Capital

open. Your line now is

Daniel Bornstein

you’ve towards made you increase that development actually with because focused good comments which comments I turn that’s opening in first remarks the want is you your you first quarter. Sunrise your on capital haven’t start almost this to made allocation,

think on seniors particularly development? that and there's limited you just housing funding start and Do funding you flow to of within do of increase And about I'm within going opportunities So see to that’s the your if for continue trying more space? the development to could some in seniors and opportunities development a portfolio? coming increase to -- an the housing portfolio? to you percentage I redevelopment any understand limited think you increase your talk are operators given perhaps the as this

Robert Probst

over is life one a and most we've along Well, perspective last been focus clearly from year. capital development notably within allocation number the science the a that and hearing us way for area

brought good was risk we really really the even opportunity So there highlighted to see pipeline since adjusted ago. high new it of business that - today a append few a and and and years returns progress and of there have several exciting we expectations robust which grown that tidbits ahead continue our we is

can continue we this focus see further on assets next trophy talk presume and for you opportunities. clearly Francisco this really year. So that about development, to Other San we see MOB, opening

The it's really operators XX% about super again like life our trophy science selective variable in to with but about as opportunities that. housing preleased we development. excited think very selective pursue. high type senior continue But we’ll approximately assets, markets in Now Sunrise,

Daniel Bornstein

$XXX is is this that now, a the which number, thinking that staying level? X to that could about be around or Could dollar almost should development billion check closer

John Cobb

can is the others I that Cobb we're really traction recently. set, their great getting we I good good see on said good trophy partners definitely do a But and in and side science skills reputation high of see seeing we really of really mean Bob life have markets lot with some Wexford the PNB Mike. risk there we John some this on our medical office Yes, some like because asset great is quality California. -- see adjusted side,

and this is good really we're pipeline. a So, good

Debra Cafaro

I like are we’re rated where Sutter, like PMV, with mean the institution like These for very, said, and importantly Penn, U, the as and is well some demand the West product focused really John can high. regarded others Wexford like highly And really very deliver

John Cobb

saw seeing you before as signing we opening start traction the even some by preleasing earlier, we’re get and good development development we preleasing really during really period. the And we’re up are

Daniel Bornstein

more think look that credit going their X%. some Do of yields you the rates doing mean credit came and KCP below you’re X% with on that assets bond I And on cap if these Does the assets? kind a yesterday. the overtime? should X% bonds to lot lower -- for this rationale yields you’re grade deal getting versus you getting of these and up investments of houseful be retro some investment if that’s

Debra Cafaro

like organization. want a lot has they’re new even ways. partner, hurry that good very we very, of I’d They weight And a of still have of way the couple a comment they robust in they or both so leases AA it to capitalized than point, very that lot in universities more which things, it’s well and to experience. are making it You’re And systems a the sources. whether heavy high mission, they One is to see rated, accomplish of have it. highly do help

of our and and in moved we with we their organization capital forces so these is able medical come to case universities these have the those rate in highly really rest life and provide assets be and are science additional centers they with in business of brand things like names. our to in the that. where use academic capital And And MOB develop willing their the academic to the the to programming business where and

beautiful others. rated we our among over And our it we’re actually And then in cost priority are significantly so have as seen healthcare allocation we who This And the retail historically going of adjusted capital capital as it’s rotate cost that years, very we’ve capital in have really risk companies. retail to inverse good lower capitalized that business for a to of our where way is this getting to people rotated said that you’ve number is around capital returns the capital. a allocation a which well one from has provide been past highly reason great direction. got

in value portfolio below. it concept a created the it’s at I’m and where built quarters raised think where see five six So, already billion we we in huge we about interesting and you we’re its or in of assets glad a trading very three think we’ve in science life we amount $X

value as of we that and creation feel amount shareholders long as filing big will keep can. a for we Ventas that’s so And

Operator

follow-up of We Rose coming have from Citi. Smedes question a

Your line is now open.

Michael Bilerman

it's Hi, Debbie. Michael Bilerman,

Debra Cafaro

Michael. Hi,

Michael Bilerman

then are this your to I that but more to back road not not just into view Ventas trying wanted Hi, I trying you the more to but wanted like or into in nursing Can more back. Promedica skilled clearly so so down transaction, view? nursing and coming interest, to go to changing this subscribe landscape, the the and successful the the is there over that that to how maybe interested point and views system reinvent to do be sort health time that’s of deal, then go make sector? in back Welltower, some skilled is nanocare any something relative mean space. could I we at about getting or see

Debra Cafaro

point hospitals would Michael, amount the health great about see achieve Well without we across first there and we post a to a of patient question. not talked are is as we goals, integration, senior really really huge and we've and a activity a and merger horizontal when the for it’s large care, space fragmented recall if exciting to of about to now exceptionally positioned these types. healthcare for what all shareholders. dynamism across call seeing and their starting really to One vertical how of talked living And a do great of length see long -- are starting thing but cetera. also thanks I we where we dynamic lot you for place or a say types team you're you're assets at all acute one well see asset a was partner a convergence became converging And really et time lot an play Ventas Arden, whether acceleration organizations it's these and help

to business landscape we for a heart we're within in and to senior I of think to And there's see of housing. and it opportunities the all us ways there healthcare dynamism We of play. so, are lots continue move forward across the of right the think the lot that

Michael Bilerman

larger how has down Arden regard? portfolio. guess in go a exposure to given and potentially pretty Specifically the prior system, skill I on tenants more negative? something been again could know do your integrate the the of get that into the hospital nursing nursing a that comments you nursing that industry road any then you of potential skill your your comfortable skill integrating health Is there and Is view changing

Debra Cafaro

there for we continue headwinds, the trends for years have see have very time skilled see that business significantly very been those very I that difficult right the where a into we been to and years in and a it’s a get of I is itself. and would have for within working nursing long awaited very we the many a portfolio, to business, lot smart which say seen are have We years people negative and to the XX I've which place been think speaks now business. over who

a And to forward science, our that's life happy be. Bob are business described moving happy that business is we're so also MOB in focus to are, our we our way we good with and where lending where investing do place we see a time over really being in and senior continue

Michael Bilerman

one never so Just to people not actually Brookdale. got on it than last be. flow that and many is your cash lower seen FFO unhappy question you’re I've

participating in an I have in the you things as lowered would know structure of the lease a get some today discussions negotiations? that have potential may certain understand seen you to you've over years the having efforts you further upside ways upside to SHOP maybe being where the you So two just Did to would expanded better never relative lease. if to and and rent assets better limit have floor worse eight of regard you about. with you issue this guess next things get But talk into the run dynamics assets lease come about trying

Debra Cafaro

the And of or great have really one for that, as corporative different expertise the advance many honestly be were and and think the this also out optimal situation you up and really those came thought Ventas of really up were and whether the figuring you. the outcome. both best and Ventas we glad discussed this well. shareholders. shareholders. what the that looking think I think the for which and achieve solution the off that we outcome. lot was be should of could thank is great a is track cells companies of others really in tell of has ideas goals same optimize I’m happy results is said so interest Yes, achieve we is constituents Brookdale believe with I can was That in brain structures A I that we a coming how process the record because Well, we that that team considered, better with And proof and really really so her what that with I And and point – Brookdale with there and they at that a creative people think

Debra Cafaro

Is that our final question? Okay.

look make such being to We So, a seeing everyone your today you’ve forward interest to everything we success here. years you last And done sincerely thank to support for Thank great a for want you. of Ventas. again we appreciate to Ventas XX story. here and

Operator

Ladies and gentlemen, for today’s program. conclude in thank participating conference. today’s you This does

have You great disconnect. may a Everyone all day.

Ventas (VTR) 27 Apr 182018 Q1 Earnings call transcript