VTR - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 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 is being recorded. I would now like to introduce your host for today's conference Ryan Shannon, Investor Relations. begin. please Sir,

Ryan Shannon

morning to Good results to Ventas XXXX. the the Thanks the and Company’s call XX, September review quarter its announcement conference third Irma. ended welcome today for regarding

many and stockholders materially me we 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 express recognize As risks, others statements be subject should forward-looking let 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 start, expectations, meaning reflect

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

Debra Cafaro

quarter call. team of by to it's be to today's shareholders good I’m and you, on also to of members our participants, growth, your earnings to all we delighted our third you ESG. recognition investment with and our questions. detailed Ventas on Ryan, Thank Ventas quarter be pipeline strength, be report our great morning to joined Bob partnerships, and our happy and answer After will into financial and to expanded results, to commitments and and another provides financial solid highlight others insights

full-year and quarter expectation. of report improve NOI $X.XX funds Let confirm normalized me share and this year. our from full-year pleased for expectation to expectations XXXX same-store cash We're the to our results with start operations normalized FFO to our per

our partnership. allocation to the future our with long-term capital strategy, following to tier approach and in enterprise by now investing of top differentiated Turning Ventas and continue and extending our enhance customers we key durability our expanding and of deliberate growth

Ardent approximately million two this attractive First, with quarter invested immediately Medical. outpatient medical facility we key following, and partners, in a XXX building Pacific and and office

a also establishing our neighborhood living firmly downtown appealing pending We high-end the Manhattan, our senior living Manhattan Park the in of announce market. acquisition community, located leadership of premier independent Battery senior in

almost outpacing benefits made Second, PMB's XX-year expertise knowledge a With attractive The and partnership we extended development we PMB. is exclusive with for this term. extraordinary. PMB example years of Pacific with experience an and further and U.S. quarter MOB key facility of or our Medical our investments partnership are of XX with the health systems, development

to Sutter, research on lease-up performance the early to downtown delivery hospitals attached new is As San our and development is our flagship university of Francisco, on innovation great open also trophy We're which track report to MOB based centers. in happy XXXX. in and

our together achieving among model leaders as share centers brought Wexford. academic attractiveness development to risk this to of leading goals. innovative ideas In at pipeline we robust summit space. positive university and light reward partner a of profile investment light investment and universities The our buzz project, of discuss ramp-up palpable growing. and base this and our attendees projects of brought approaches the recently market position hosted from to activity medical was Ventas is our by in intend was to their we The and university forward Our strong excellent demand, strategic

and knowledge track research university innovation. Our campuses advisor, to catering on an enjoys that and trusted incredible powerful communities delivering a record and partner university conceiving and is supercharge Wexford needs building reputation leasing for

which in City to District, these innovation follows be heels We for with footprint this WashU's are which XXX% knowledge precipice leading the of In XX% at submarket. is to proud further success universities business, would expect This partner Penn our and a to own the Wexford owned at Innovation out just leased of being newest and of fund on U that project on The builds this project Cortex note already to leased of I research the like shortly. and project long-term. we the our opened. attractive these recently another communities and one very buildings

Finally, Living distinguish Atria also itself. Senior continues to

In our addition to Related a Companies Atria's billion major operational to excellence urban it a portfolio, linked living senior to consistent in projects in with agreement markets. just X high-end develop

my we sustainability impact. out special like to a commitment work positive would in strength this I policies resilient in general a are high quality through financial interest we area practices. investments by from matters. organizations to another turn and for excited governance flows and partner for our been we success. are like ESG deal. give and whole a excellent our profiles specifically where Today, With launch we ESG report We with both. cash ESG and expertise environmental, or Ventas, recognized diverse long-term principals to our our to to and believe ESG would portfolio. At who repeatedly effectively are we ownership focused This our one-third our commitment Atria. mind, on at hard capabilities, that Atria's significant showing our are world-class report. underpins shout have To to in improving starts the social ESG potential to leading year, I and sustainability pleased our making showcase corporate development team leadership this Related's long potential projects inaugural are these about We

of strength our and continued a quarter, This operating and expansions, debt its efforts of refinancing and build diversification result type financial risk through per reduce maturity same-store quality cash and growing portfolio to produce model. we in X.X% proactive our successful and and product as NOI

at reported low. senior macro continued recently very living which a senior five-year starts, encouraged are improvement in we trends, with housing at Looking are the

primary in Importantly, in assisted markets, absorption net living third in demand XXXX third the for net quarter strongest quarter the on of record. was

through in widely communities of as elevated However, documented, favor anticipation our continue been it that senior reverse opening its coming XXXX, continue, to so new demographic has were the trends of of years. started expect highly demand another housing industry year that's experience we current to the way works that valued. current equation in supply and be in deliveries in why assets our will the demand If the will accelerate surely the

are were hurricanes despite our are mindful of all live patients, the properties. always Finally, healthcare we serving in and that Michael. seniors, communities, and are our Thus devastation and receiving employees patients in our Florence reported in we heartened seniors of thousands of tens recent physicians facility, when safe were employees

quality our our their in CFO, are continued and accelerating enterprise our future I'm in over preparation the in portfolio, our growth, turn increasing confidence Probst. and the the the our preparedness thankful providers the phase and In to execution exercised sum, partners especially for efforts founded our now is confident demographic and relationship sincerely our for We team of We to and of cohesive Ardent on success. thank resiliency operating extraordinary by our storm. care whose investment of happy the our This our partnerships care. focused in call is team demand. financial strength, our Bob

Robert Probst

our one as same-store Debby, level best-performing combined which XXX and quarter. being on of CEOs Business delivered the you, begin NOI Thank congratulations a once performance a named, with basis the by of Review. review world third the again X.X% in growth in on I'll of portfolio cash Harvard segment top

and SHOP this namely SHOP me segment for starts. new leading indicator future Let the performance, start the key discussion construction with

We are of areas in construction trade that line the the very third excited our in new lower quarter. continued starts the and trend

starts in demand rate quarters well the our just XXXX years. for In lowest inventory market. at for store for senior X% our observed near-term X first the fact, are new X.X% level target five areas, trade of our starts Annualized roughly nearly portfolio in growth new below of the represents

seasonal which the better NIC. XX is of a normal industry current SHOP same-store lower our the third In was in and with year-over-year together ahead below our than of of in while our reported the in QX sequential NOI basis the improved expectations SHOP to moderated prior growth by overall XX%, occupancy better delivering performed third of cash points GAAP with trends basis, also the as On line than NOI basis expectations XXXX. X.X%. a growth in quarter. XX Occupancy in quarter third points, terms rate reached improvement performance, by quarter versus quarter revenue Occupancy X.X% year

as competition expenses run roughly releasing Los is a meanwhile wider RevPAR growth continued and quarter spreads. expected cost seeing costs. such NOI San the X%, and in Atlanta X.X% At to Third moderated and as new drove offset reduced grew by market hour indirect we're partially Operating Chicago. competition growth NOI levels quarter. level, more Angeles at staffing strong new in efficient markets per lower third Wage by X.X% to Francisco in

year-end February of we XXXX guidance with unchanged X%. will benefit levels elevated NOI to in at Though observing new continue full-year to remains start expect our SHOP same-store to year, next finish deliveries and formal to we early X% range minus guidance Our minus of the in give do XXXX.

positive lower as with fundamentals new shop similar same-store we do in XXXX a demand, decline senior result, in powerful starts evidence may offer a overtime. the demand of supply said, expect year-over-year trend NOI together upside XXXX. housing to That As accelerating with percentage

our segment life portfolio, was in robust office same-store portfolio, XX% same-store which office university-based The our quarter The result by quarter, cash Wash in new strong the NOI XX.X% comprises valuable from at NOI a result led of by third Our third grew X.X% NOI third activity. total quarter. the in by by Penn. as a of up terrific XX% segment cash which projects a reporting science science by life and grew Duke nearly that fueled exciting portfolio U, lease the increased

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

place escalators medical to valuable operating QX as due expenses by grew of and X.X% X% year approximately best-in-class X%, of in in increased tenant expenses. versus result same-store in part reliable Our XX%. third nearly higher the quarter timing of and were business prior retention a NOI office

We X.X% continue to forecast same-store our year full X.X% office portfolio. from medical a to NOI increase

of A is City, for Panama the in was guidance on which damaged. the note of impact the hospital hurricanes office early their therefore range full Florida, science life here, principal guidance. two one Ventas-owned quick recent the to is MOBs and same-store X.XX% and XXXX. MOB unchanged to too financial also at as in combined assets, portfolio X.XX% determine cash our not Our growth is NOI year were they on are impacts and significantly Ardent-owned It included hurricanes appropriate

in segment, escalations lease onto place, in Moving lease overall triple-net were the increase. of NOI which same-store the this our third quarter, cash driver by grew X% primary

EBITDAR QX, period. our latest In held seniors terms trailing Brookdale coverage, sales progressing. part of portfolio rent triple-net asset X.X are coverage XX-month steady available transaction our reporting same-store the housing through on at Notably, announced of as the in times

to portfolio, coverage at the of sales our expect steady in We triple-net occur post-acute tranche held And XXXX. times. these X.X flow cash first

LTAC XXXX business with X.X at continues generate the solid second of expect results coverage second times In operational is with LTAC health well. and on exceptionally criteria. We improving the systems, steady Ardent and strong to our at to in continue mitigating Ardent back performing Momentum half strategies remains quarter. the

the and NOI for our range holding between grow X.X% same-store XXXX overall We triple-net are guidance to portfolio X%.

due Finally, Ventas X% at profitable of at of loans. down loans XXXX star to now of NOI, book by extended X% of stands the repayments our from

pipeline. our We reductions existing loan life the earmarked half our development investment of maturities to to in book $XXX on loans science expect exciting XXXX, with fund second roughly million proceeds of further with

was the third Let's company third overall per was This FFO result $X.XX share principally results. factors. quarter. to driven in financial by two turn quarter Normalized our

billion billion also completed been have a in expected Kindred creating since year received same in in share in per in receipt July. limit repayment value $X refinancing to And back half we $X.X of XXXX extend exposure. we've time $X.XX Stepping loan that from First, used or capital recycling reduce duration interest the Over activity. and go to proactive and XXXX, rate maturities debt alone, period, of nearly we billion and retired $X.X refinanced the second, dilutive dispositions first debt. proceeds private the in the successful debt. highly have of net In transaction fee impact our

financial evidence three the XX% stood strategic our and years, third quarter than we As liquidity at less our charge asset quarter, some $X net-debt-to-EBITDA X.X in of coverage have end, flexibility, debt X.X a strength total times next fixed a and sector was result, of the leading enjoyed matures billion. we our nearly ratio times at in from

extend profile significantly paid-off risk completed prior aggressive efforts and debt, already reduce stagger Our efforts in has to our reduce as move upwards strong rates. medium-term recent refinancing these the to maturity and we

our the close Let's up XXXX Company. prepared with for remarks guidance the

$X.XX. time which year, normalized full-year we forecast now our improving this FFO $X.XX third range are the diluted for share, outlook we XXXX, fully for between to and For per

debt sharply delivering the cohesive, our we XXXX. year commitments recycling and closeout, to substantially the in for guidance financial same open assumptions is XXXX. confirmed We it total July, in our operator cash line With the determined the previous on team closeout our the previously guidance have described hand as focused range are To segment X.X and including Ventas guidance retirement. back related to NOI questions. capital same-store full as that, billion against this within the I'll The level also and for

Operator

Rose first Instructions] [Operator of Our from question Smedes comes Citi.

line Your is open.

Smedes Rose

expectations front, to to it kind would construction you just And just ask what you of of guidance you of your telling primary inventory that are as this pointed trailing wanted about So what market. under mentioned? XXXX, open about going course the out, the year in months next a into forward XX for similar on like year. I their on you SHOP think [indiscernible] will is have your around that percentage increases in what you X% wage operators just that? which next you sense place over Do

Robert Probst

This is Bob here.

we course early formal the I the First into with But are just indication roughly view deliveries will guidance. in we as in there say quarters look would to give are see which that here today a of in now clarify, we view going would XXXX, for next expect three light is 'XX price to of delivery of today on standing we'll rate saw seen the pretty of and out, the things, occupancy to within all play wages in February. include comment in SHOP 'XX of would likely guidance having deliveries before similar know in opposed XXXX good are in highlight so it year, levels line line. we we where the pan formal you And to And And to and I to there see effectively on our have we terms they out as the again, year. letters But that say, year-over-year. same give equivalent to performance quite want same whether the things, want 'XX. see thing to in that we so 'XX be year-end,

Smedes Rose

your relationship Atria, announcement given investing Related that or remain now will you And then unchanged? with does their more capital relationship be into that just with with

Debra Cafaro

as is potential This overtime. billion really see be capital with on Related opportunities will And opportunity if general in have invest other is The capital those projects a urban deal exciting well. could manifest the senior to projects. that has as the Debbie, invest opportunities there living X of attractive, one partner are position of to us course high-end Smedes. to we and for in then, And effectively those we

Operator

question America. next comes Bank from of of Juan Our Sanabria

line Your is open.

Juan Sanabria

and part exposure? cycle discussions, you your if leases some about some are at through about having thinking ask the of been to about been also in the wanted converting have your some you triple-net about this confirm interested asset just broader those holiday And I how [indiscernible] you've are idea. of you acquiring of incremental given been peers as that in for sale? available holiday, Can scared any talking On maybe in point

Debra Cafaro

would context of they a fee conversion It's a with senior did with structure I of NOI our fee, and payment therewith. as that from X% So, you the of has for assets to holiday like public to management into management is large Ventas. lease that know a deal about put new connected

customer just conversation over with Kindred like we the did we of just they other I are we with have that engage up we done appropriate. will and optimal think believe just should Brookdale, think would in like coming changes I have, have ways every like we typically of years. lot And with thoughtful be we a

Juan Sanabria

trending? to sequential numbers, are the I sure, And you did or just the looking ticking at has on expansion that renewals looked what side just if comment down on not know those then RevPAR if how can same-store between there back up. equipped on you specifically, don’t on regular that spreads two, Related been And come housing like seniors any the I'm drove going comment newer was occupancy it could despite if to that, not?

Robert Probst

referring artifacts the and was releasing by Sure, X.X% I that other bit. former last you or about in Again, call quoted that second In quarter, that leasing down of you're is think a mid if year-over-year one and quarter to the which quarter, new words, RevPAR like that's resident, third that single spreads, has spreads new X.X% want driven what to refer to what widened to digits does way. was I I resident new of in look competition. that the

driving drift that sequentially? really that's what's So

Operator

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

open. is line Your

Michael Carroll

XQ? And drop Can what's And correct and and some quarter. driving this if be run the rate this the between you guidance in what run fee color? even to that drop of the implying is Bob, you fourth the rate run FFO? is rate, there's quarterly currently the kind another exclude going around the as quarter the bounced of has year XQ Kindred provide

Debra Cafaro

been I line, We've repeat the the on some to understand asked so there which maybe questions. operators apologize. we static

question the really discuss XXXX fourth quarter in normalized FFO guidance. implied in think So, our I to sum, is the rate

Robert Probst

and were that very explicit Kindred Right quarter $X.XX just I'd $X.XX about quarter. again, included frame a the was we FFO third fee, which last that

see last $X.XX. that, quarter that's third when In for fact, quarter, you in that's call we as of this adjust the

no and but implied we you going $X.XX. as key second midpoint at the and look evidence the say, half year, that half is the fourth the conversation, the is including What's pre-proceeds last As LHP over last to approximately Kindred we of cumulative on those The seen first there? dispositions this about in the including year, of quarter quarter the debt. think fourth impact dispositions we've most the is repayment, effectively the retire when using

And and the manifest it seeing therefore impacts of the run quarter, of really that that is so, complete really in complete, quarter. as rate second fourth now was end the we're

Michael Carroll

expect And between then remarks XXXX XXX I within last question that Wexford ramp-up to the your XXX million. million means? for like that investments churning me. the exceed prepared in highlighted you investment pace? you you quantify what that Debbie, seems Will the that platform. ramp-up Can and think It

Debra Cafaro

projects, harder could seeing or good certainty, mentioned, either lot timing, I is they that high I we're And see as and quality to a the institution predict the increasing. a with customers timing lead substantially new but Well, are universities. of are they with projects large existing

Operator

And ISI. next Steve comes question of from our Sakwa Evercore

is line open. Your

Steve Sakwa

of Bob, of up the follow you've just to questioning. end the dispositions were line the of quarter. done comment that I most on last guess by of sort I second the that made want

impact QX. further been thought would've there have wouldn’t I that be So, third therefore drop and in fully quarter in to down QX the a would the felt negative

kind just something those quarter? me down So of second that's by all Or there dragging done help where really of or not else QX? is can you maybe understand the

Robert Probst

in dollars go is and is, Steve. difference, Sure, there driver, that quarter to that's quarter adjusted XX basis biggest I point really fourth on XX quarter seasonally question Steve. seasonality item SHOP Kindred the fourth that’s third to stage, particularly at The fee. sequentially would the the for And the when is that key lowest why for the

Debra Cafaro

in and with really And holidays things behavior do around that and seniors' to moving the like has that.

pattern. typical a that’s So,

Operator

comes from question of Mizuho Securities. Anderson next Rich Our

is Your open. line

Rich Anderson

could think question, the earlier. if get So, asked I rate run back to I Mike

this you I also giving if for consensus your So, year take the way. guidance, maybe you $X. multiplied not know XX next XXX, question frame me but let I you are by know, for life well you're be buyer more to science to but turn the before time to that housing this said ready do is as some in side, happen. senior the starts a this on inevitable

this call currently guys you on Ventas for context is The in thinking next the I'm is that you think thing I with for and Street waiting about what feel how wondering, XXXX? from about everybody big

Debra Cafaro

Okay, question. the so, I'll try to repeat

around hoo, could I the think a question is it but senior housing, if really buying I Rich. started with woo summarize,

Rich Anderson

The noise went just bit. little down a

you when is versus something on, So get that going XX perhaps a expecting. senior housing I'm number you to missing to shape? Ventas be lower your what buying Street wondering, is And for annualized rate, 'XX is before currently the time take The starts run if to the the recovery actually variable this

Debra Cafaro

question. good Well,

investment that we very asset because so there say there. for example will Park news creating housing assets is see So open buying are strategically, opportunities trophy transactions. strength a that are And -- bid senior good so do be we at as in The value upturn. we our continues accretively, are said I continuing to inevitable the Battery do valued, look the to very to highly for I we Ventas think would strong are for very something

opportunistic, next to is be there know. you so, the if and first will as always, thing, will And we big be a

Rich Anderson

more breakout And reconciliation the basis is to detailed What X.X%. then, lower you difference? and of to Bob, X.X% points in the but supplemental. reiterated is The on the it's same-store X.X%, range back a if guidance I of the could XX the just explanation. get

Debra Cafaro

didn’t to we you us again hear can Rich, refer the page, you?

Rich Anderson

just breakout curious guidance published growth if of between the total look store same is And same-store page and I'm the it at of the difference sort last what new outlook? you supplemental. the is X.X%, X.X% It's to

Debra Cafaro

X.XX which outlook reaffirmed total X.X. our has been the company to is Yes,

Robert Probst

fee item item, want received you'll is see it for called included Brookdale it's that's fees there that item we we the but adjust show And year. which if line cash difference, the that guidance, the the The to with that's without you in and difference. and a Rich, in

Operator

Sadler from comes question next KeyBanc Capital Our of Jordan Markets.

is open. Your line

Jordan Sadler

for like MOBs. offer you looks sold compare purchased And there a of of end last insight It since Any bit traditional could a there? contrast appetite maybe is the increase maybe little versus what an little of the quarter? on

Debra Cafaro

So was our investments outpatient MOBs. in the in question really about

built a is great who We very business reliable. It's turn grower, XX% business and at here We then, that make. which going have very the the and like this people like to what steady are And XX% investments we a we about I'm talk of portfolio. of business. our new to really about leader been

Pete Bulgarelli

Debbie. Thanks Sure.

As leased, careful remarks, very very They five well. Arizona assets are pieces locations, Dignity with the investments, one that great key they great of Tenants. They essentially and Debbie and additional been ours. in California, Baylor, but hospitals opportunistic we've fully very we've and and are said here Texas. of partners felt bought and opening They with associated our our importantly, primarily these are we in operating in associated are

these same key piece transactions And all they that very is priced. an MOB development were existing our and last campus, Ardent, in so One with have we with and are were others off of five is market, and them associated PMB, the partner. the attractively

Jordan Sadler

sold. one, higher caliber quality new rate asset? or that the in was acquisition. cap XX% going the asset stake was a that know you cap talk to you relative but the that it maybe was -- can of the on Can there Pete, think a I had I bit the expand rates on the you about just

Debra Cafaro

sold Jordan, pursuant purchase quickly, asset, about Real Debbie. the to is a with question a this Yes, option. not was

Jordan Sadler

one that clarify straight more spreads or Bob, value? scout Lastly, quoted. value include to Bob. concessions that can Does face face you just that just one quick is you for, that releasing

Robert Probst

to face a a value, but face, it's That's not price it's are actuals. face discount, significant against actuals, which rent street like it's so value

clean think number. I a pretty So, it's

Operator

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

Your open. line is

John Kim

by key expenses? some indication early your high color can may SHOP, higher of In and On for year, components some this? offset on you the words be next rate growth other of occupancy provide lower

Robert Probst

Could think summarize P&L, we insight say as early question. I'll year-over-year and similar, the and a P&L, about the quarter the you just of I themes next occupancy sense year third a to I improving some nice would your we gap has if the look still into a we been indications, prior it's look the in again think to as albeit, have very at guide 'XX more year.

do have a year. said, expect carry then how will we that we spreads have that the some job also, of of get done And The think run have Some still have the and way year. have the this pressure next at on about relative place in letters repeatedly, the in -- the year managed line, very tight wonderful and continued operators nice the as as they so line staffing to operating as increases pressure do year to moderating I we I expect yes, some balance but expect will pricing, there's releasing on we through beginning on models we we again I similar price in the we about rent expense certainly, thematically to occupancy year, the quarter. that the nice will continue I the way next as but third get cost. annual the there the labor look think of wage P&L, market

John Kim

think CapEx midpoint, two million. year-to-date, FAD Are your as XXX is the Bob, comparable CapEx I a million your for these year's but this FAD was XX guidance, figures?

Robert Probst

A great question.

significant because bit is a quarter the for and That you decline So, question the my is fourth it we FAD it on of interpretation in typically, do the would have question ramp seasonally quarter fourth achievable typically year a We significant increase. the ramp. the CapEx is this is be hill a steeper.

have its of bit all perhaps, do little fourth. core opportunity But seasonally, significant we we equal a there. So expect in the increase

John Kim

you on agree may capital both? also seems an be the to at the it's NIC the space. there characterization that verticals increased looking abundant amount with wondering that finally, is what and And feedbacks healthcare if in impact the of conference I'm this

Debra Cafaro

is you years business pay in really beginning the is the where I that for are a housing and that's have, the asset me to core about in all the we nature it that the the senior been institutionally XX private interested classes So healthcare when characteristics. discussed, And highly answer there, the lines. the like we of MOBs and to demographic the question qualities the it's at couldn’t about over whether shared is, capital to yes, attractive business now me returns and has get talk anyone they our get multifamily

coming attractive is very assets, improve senior therefore the that look when, not value continues the people long and will are category. enhance the and of now the our XX% in population We be too our coming to from way to of and years capital as

are verticals. you with So, XXX% in our right the interest

John Kim

broad or it that is more based specific that factors is others? may But than benefit

Debra Cafaro

based space. living but interest broad the interest in institutional fairly we I is see outpatients, significant is at moment. also that in capital it think the senior from MOB And hospital do and the highest

fourth public quarter, that example, the started and increases, we the have performance broad so rate to in fairly it's look based. as For of the

Operator

Chad from Our of next comes question Vanacore Stifel.

open. is line Your

Chad Vanacore

have observation, the quick here. couple seem X.X to billion. ones Just refer what’s going doesn’t assumes guidance but supplement dispositions clarification, point to shows, there? your a difference One it we're of year-to-date, of a Since net only

Robert Probst

of dispositions, share, Chad, difference growth, SHOP, we our guidance is our is X.X. that. X.X data of The show The question is on billion the

a that's owned, a now So, so net it's XXX% difference.

Chad Vanacore

is and your at looks guidance, then your but non-segment then higher. guidance changed, And overall looking just a bit SHOP little lower NOI segment the

pushing what’s non-segment So higher? guidance that

Debra Cafaro

XXth from is guidance Bob there's to specifically, the if July add. you'd reconfirmed anything which and further again guidance, like segment can speak question The our we've about

Chad Vanacore

higher? non-segment What's the guidance pushing

Robert Probst

The small to Yes, net some amount amount non-same-store, we've and of that small is of acquisitions. impact acquisitions in that's the in difference. so built

Chad Vanacore

And there? are in assets what

Robert Probst

Those that's… that we reported in been have supplemental, the

Chad Vanacore

Let’s move on.

of update million to any year early degree assets market just up in leased the on selling the So of rents? XX Brookdale your to you're

Debra Cafaro

rents. prune the the portfolio does probably about of had Yes, we, about other and improve leases deal million Brookdale sales to a components that and as XX% the in you recall, that in XX and quality, it, asset the represent with extended some of including did portfolio

And those in so, mentioned underway. remarks, as Bob are to starting get his

Chad Vanacore

that right now? in marketing early Just stage is

Debra Cafaro

just it's at point. emerging, would premarketing say say would I yes, this I

effectively recall expect you and we the to those quarter overtime to to would So, sales basically in a Ventas. happen at as happen. be X they Those

Operator

Okusanya Our comes of next from question Tayo Jefferies.

Your line is open.

Tayo Okusanya

to ask next question, take Ventas little for happen the one the rate, additional alluded kind of mind. at earlier I trying money to people want might did numbers. just And on. closer get in. first talked order in kind of an towards a I is, about put to you more to you think you area one this run have if But almost to work MOBs implies bit the consensus again the don’t it's When look on something to been university [indiscernible]

consider possibly deals Just would relative deal, type curious that attractive there actually group expert that in the not you of cost were MOB group? university if type quickly to can is somewhere they where one, available transaction a your capital? you hospitals it’s And really pretty again like

Debra Cafaro

so And and do that to is say quarter fourth we So the so how than Bob we would our would said consensus analyst guidance, I will rate what with limited typically think just run relate to the question repeat know and we run practice in in numbers. I may I provide acquisitions the just consistent with obviously XXXX when them, I rate. other do about quarter about February. that, really mean that fourth

Tayo Okusanya

big again helpful. think space outside again on happen more of that's that traditional that's me would made MOB the Okay, in this something outlook the But of Is acquisition that side. expert? actively university a sorry science's will hospital you if could it difference, space? university a up is transaction type I'm Or that make side be looking allow the -- life that the at

Debra Cafaro

As which is -- you acquisitions investments are know, predict are our always and they lumpy. difficult and to

be that We have really development capital We that share our number communities. our they these these across university more years. over able great had want classes. leverage asset one is the our could I accretive priority based than you knowledge are remind board strategic of of done to allocation find good do the acquisitions. relationships to we in And to the

multiple very creating we in will growth. are and ramp future years a that produce thereby EBITDA. cash about into takes And in so, are will assets future investing very generally and we order deploy those growth, high portfolio when that But quality capital, high we capital we that in to investing company, quality talk flow

other think that’s aspect important priorities investment going an our I So as think you about forward.

We will continue to be opportunistic.

attempt the past. to generally to. again We those try But be will across you predict them guys as to unpredictable well the sometimes we therefore and board have don’t look to in tend we continue

Tayo Okusanya

it's Bob. the quick in missing, XQ. jump income Again, the XQ am for from just big one rental sure Another to nothing leased but triple-net I'm I

understand to trying was? just I'm So that what

Debra Cafaro

Tayo, back, we too. are having feedback some

could please? the So you question repeat

Tayo Okusanya

XQ big for that? XQ income one was? Bob. sort by million. a The lease in Did $XX Yes. rental trying to versus understand It's get triple-net just you what I'm jump that grew of

Robert Probst

lease in to We closure that as JV second XX of that last have The off or write-off was wrote approximately had million Speakers]. of we second million a XX extension had quarter. Brookdale, year the we result a Brookdale about [Multiple that quarter based last pardon me,

Tayo Okusanya

quarter and Speakers] last Just [Multiple

Robert Probst

But so sequentially, that’s have that item. we FAD don't

Tayo Okusanya

SHOP So, [Multiple it's a one Speakers] item.

Debra Cafaro

Yes, remember repeat, noncash a that’s that to then item. just and

Operator

next Our Lukas from of Green Hartwich question Street Advisors. comes

open. line Your is

Lukas Hartwich

I'm receiving housing, how tight Given triple-net compete not coverage necessary you the are on just the those growth? to that but curious, comfortable supply new maintain the guys all with senior CapEx also only effectively properties

Debra Cafaro

about senior the repeat and the triple-net portfolio was it think CapEx me expenditures. I let question, So, housing

minimum in and I required continue position. market we our So to that the most monitor would leases with keep be CapEx the not add that also expenditure have so, CapEx minimum of and the good Brookdale that it's percent the assets would we that plus expenditures is that that's ensure that most have way all, Brookdale agreed that we which requirements. for positioning. off in does think And course of we market portfolio also other excellent XX assets

consider so forth returns. on funding we market for and and CapEx so would additional that And

are we of way give the continue examples maintain assets different And as way could really I market that positioning. two so, to there triple-net can ensure those that

Lukas Hartwich

some NOI the life Can strong color on you print growth? science for provide

Robert Probst

question newer communities Rhode really lease The a well, we the first and Island, in foremost that driver of we was pool. is in incredibly particularly was XX% for with now had life up performing so one Brown the XXX% really and which occupied our have Sure. quarter, that is and strong that growth in science quarterly the

over On to at basis, strong also the which we it. continue the do way well full-year look pool incredibly pool, so on X% growth you full-year as

Operator

Ford comes Karin Securities. from MUFG of Our question next

is line Your open.

Karin Ford

ask in acquisition. City? Battery opportunity How And the expect do accretion scale rates sort there? Park What about to wanted to like cap I York New trend? the of additional do you see you X% you would

Debra Cafaro

been So, excited the a well pending We've that question is is pricing about Battery think the acquisition deal and is the cost. since market the we're really replacement Manhattan living senior that this we Park about. asset asset below on that really in XXXX,

that for potential could and we with of going New demographics licensing positioning unique really could additional NOI just opportunities stabilize foresee there asset, the in overtime the are returns. York So, that growth forward, have would redevelopment attractive and obviously this we and great opportunities provide

path So, conclude. to I what would success is we multiple have

Karin Ford

have the change your finance in or in question cap on increasing move your Are expectations seeing And up the any with any rates excitement earlier. rates rates you just your the from next you university with changed base of And John's investments? the follow-up segments? in is question return about

Debra Cafaro

Cobb, for capital the This rates states keep you and an discussed of Officer, the is previously sitting depending is that on really looking of the way same cost And for that. continuing university we the the asset. X% great give as our growth as that that. a our to all if cash is be we location, range, to the across preleased the the that amount in mentioned looking you of XXX% we underwrite rate Chief that AA capital credit X% question of we I'll flows. before expect are now. in or going the of is in to expected relatively said we science, X.X% they reliability rate our and several at would assets with end I attracted always the is have the base the to the asset reasons high we on have like that And look would So, to example, have at And lower a that’s a frankly stabilized cap years in cap profile are there as range range valuation at building of yields we from Investment been on at of beginning, and John terms say the obviously are

XX% building would cap rate. different a preleased obviously have If a stabilize have you that to expected

of elite the and looking the the we at So how but highly are with is that rated big reliability the our and increasing these day, takeaway portfolio, that’s of it institutions. this as really is portfolio opportunities, quality end improving we of overall these age, grow part our

responsive hope So that's Karen.

Operator

comes question Fargo. Our of Wells Todd Stender from next

open. is line Your

Todd Stender

that include with [indiscernible]? would your of Back did consider cap that above economics any the to could talk you how relationship some rates growth you about the what And the the X.X. on four around just PMB PMB? maybe transactions, Does acquired was get fees you MOB market I shown you or paid

Debra Cafaro

and is were very pricing MOBs, about question is existing acquired the because the said, through we assets the acquired on Pet yields the We these said that relationships. do attractive. Pete As as think

of rate the the to terms fee the a for management assets, the that’s In in that extent NOI is embedded there already. cap

Todd Stender

store And other NOI is or of think range a there how said states, four, may but for same about California the I I these Pete exposure expectations? they Texas, maybe expectations have are forget

Debra Cafaro

so and we like in we type rate. about is of returns, core what churns that steady year-over-year would and the normal MOB the Again, growth the expect likely MOBs

Operator

comes Daniel Bornstein Our from next of Capital question One.

Your line is open.

Daniel Bornstein

outlook ESL I the just that. performance its how sort about, is 'XX? ESL of a doing bit I'll ask it just that whether in for includes little was switch and outlook and know up preliminary

Robert Probst

older so I'd and months like practice XX, and into roll Yes, out Cai now, continuing that and operational right say operating I initiatives, best X now, things guess the maybe itself team really bringing ESL there. staffing deep model the model, to are and

some to seen as we've I that's of of transition in forward were But rolling that expected. we've it. impact terms the initiatives always again, on those Certainly, stabilized are they it amount. on and NOI impact So think is looking

Daniel Bornstein

SHOP trying that I'm we're do or portfolio? better Ventas to in… just performing or the they they NOIs general negative Are positive worse seeing the previous NOI -- than have

Debra Cafaro

you is but This a have expect would perform again. take hold. stabilization think are I in the said a When line to Debbie. getting the as offset basically initiatives at you stabilization Yes, potentially transition, then you with operating point which industry Bob to as overtime, it were to and basically positive point

but discussed upside So as here would occupancy and overtime. be some improvements from same, with again before from we've operating directionally expect you the to

Daniel Bornstein

one MOBs. about or on there assets quick hospitals science, one with last life assets? universities to than develop science science And rather we've talked Is just monetize always and buy here universities any existing opportunity life any monetizing life to discussion

Debra Cafaro

in trend that So, well several science acquisitions and about space. university innovation the was university question for is the in assets life the are decades, kind and science research of the office we has life and is, in and based seeing been answer of a as that medical

Operator

Rose next Citi. with [Operator Instructions] question Smedes Our comes from

open. is line Your

Michael Bilerman

had Smedes. It's couple a with of here Michael Bilerman I questions.

time first I housing the supply. and you high Related at stop same The pleasantly confidence in talked with come the that about surprised will are and the to senior in the what you your how about comments senior you that you the Atria out reduction supply gives on rate, you both see in range that anytime is at not billion especially growth end And by guess just is $X talked the going launching but demographic housing. future? soon

Debra Cafaro

thought was in this We you snuck here. Mike, Smedes.

I we'll open guess. with and call with close Citi So, the

moment, as senior to that would predict that big are five data question on sense supply which here about now coming I we starts that the So able they as points data the ago years encouraging a expect the could at coming at data today And in we a we new in the housing predict think are supply, key the the very around at upside think be were years. and year one really this low. are we based can look is sitting I see

and in we in supply now in continues. about developments, seeing if But start the So with then developing these it and continue talked the that continues being to be favor. we true Related assets is our the feel with upbeat urban optimistic are high-end we that interest there as fundamentals much that very about demand interest and trends very

Michael Bilerman

prepayments a portfolio that we couple on of should there loan maturities about just we XXXX? about Bob of the that Just others. running at million. or be Is aware as are any XXX you aware think

Robert Probst

maturing matures XXX Yes, the in That million year. of that all loans next have approximately XXXX XXXX. Michael, we back into is half of

a of So that obviously is NOI percent NOI a have would today lower we as next -- that X% of implication percentage of our have we loan in now year. our book

Michael Bilerman

replenished assumption you will not that an you or that invest in capital and when in? loans about other would guidance repay assumption that just debt you around provide would that goes do find to repaid gets your think be make to that we As

Robert Probst

marking development now right Yes, science you are Michael pipeline. the for to that where reinvestment life

Michael Bilerman

we start number completed of share? in your the a $X,XXX,XXX,XXX actually billion that of How by $XXX share, development then, standpoint, to process stabilized your we the 'XX. of yield producing pipelines then not of at and pipeline are completed you Certainly give should those development lot them think redevelopment. on stands investments to about at about as all through 'XX? you recently now going think assets a right gross and And and the and are development but million income about should going on tailwinds that the go your them in for X redevelopment How a about we

Robert Probst

particular to Penn a and Those really start will these few. opened, up to of we pick of we steam in right The So, back recently 'XX have you in of income starting which some for in into the there. but to from 'XX. really we WashU, mentioned but accelerate on, half example, science, name are Michael, in benefit start see, 'XX, developments life

we come tailwind certainly as work. and puts So, that’s the on takes certainly the with side a out in good February

takes off really it but that, about excited 'XX. are We in

Michael Bilerman

redevelopment, be like in XX on And have on the it Page the dates for seems your helpful, supplemental. the you development then would

perspective Just because way producing you income to the the -- that’s a When redevelopment so the Page same date it obviously XX the almost side, on active when become chunk those X.X for have on pipeline? start billion. from big development

Robert Probst

we as on the we if page repeat I so as information going I idea for analysts terms investors deliveries, that guidance benefit, suggestion the of redevelopment would while period, so forward. housing because at in get you lease going have some the to breakeven. good, distinguish do in look good have completion developments and you EBITDA, I work negatives senior for including think provide just lease everyone that you operating senior Michael expenses, post and to office have through of up between are developments as opening up actually some you could and can add the and you housing

if that appreciate asset different make this the So it. we people But redevelopments, we also as it's they input online. start different class information developments and understand and important, provide are we the what come impacts that good to very is sure of

Michael Bilerman

on of lot senior this pulling like the talked a 'XX, quarter have seasonality it transition as moving the about as into same-store Bob back we the you did has that fourth is Theirs the side, roll clearly modestly year. housing you parts

income. to is XXXX investments be pieces There the that lot a start of have taking to earn into will that need which consideration. You still we to making you're

Debra Cafaro

about best certainly reaffirm forward thank so we get you. to hear look with which in enunciating and going you moving and to actually to and we've these observing, will lot I look and talking Thank further you for we at recently how if we of are as really February. attention, noticed And to those with and is your want Michael aligned pieces can everyone 'XX, to are there confident support want of to that Yes, forward opportunities, how that, NAREIT. the is team

Operator

Ladies in participation you for your and gentlemen, conference. thank today's

all Have a may You disconnect. wonderful day.

Ventas (VTR) 26 Oct 182018 Q3 Earnings call transcript