VTR - Earnings call transcript Q3 2020

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Operator

Good day ladies and gentlemen, and welcome to the Third Quarter 2020 Ventas Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. [Operator Instructions] As a reminder this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Sarah Whitford, Investor Relations. ahead. go Please

Sarah Whitford

are welcome conference and third Ventas quarter These third earnings site Ventas Good www.ventasreit.com. at Earlier to this results materials presentation. investor call. supplemental our on morning, financial the release, Web morning, and the available we quarter issued

a made include today As forward-looking expectations certain including reminder, COVID-XX to remarks related and may statements other matters.

may materially statements uncertainties in of [indiscernible]. factors and from subject differ a to risks cause to are results Forward looking actual those variety

of factors, SEC site. to available please discussion of our detailed also release for and Ventas to Certain are more quarter earnings measures will our be a For Web these financial on the which filings, discussed refer non-GAAP call. this in recent most all this

of GAAP Cafaro, measures CEO. closely I Investor these to the will most the call measures, A. Chairman the section over refer to reconciliation of Web comparable Relations to Debra now and For our site. please a turn

Debra Cafaro

that discuss strategy, and touch on describe the of team is how to and Thank third you, third today's join Ventas innovation for earnings into institutional capital and The Sarah. unified provide shareholders our the call. to managing welcome quarter continue like Good We all call. third-party you trends XXXX of Ventas October. our business dispersed competitive driving morning positive our to you our I'd an want spirit other we overview housing consistent quarter highlight as forward, in are results, our we to but research advantage operating and participants. senior

about geographical and protected of out stakeholders. for growing class from diversification over is a balance to downside significantly benefit disciplined strategy. current asset commitment from also provided diversification. that continues opportunities and The high-quality cash this a proving portfolio flows the We to sheet. We've the merits our cycles myriad and reliable has diverse of aim decades Our enterprise generate operator various steady strong environment assets to our staying on seen certainly

company the affected remain the despite different COVID-XX disruption First, the our which non-correlated has asset occasioned classes and in stable, to strong our is diversified enabling by and geographies way. portfolio pandemic,

office, medical lease now healthcare half of business over represents and business enterprise. triple-net and our our Our innovation research

classes the well to quarter, quarter During these of third FFO to continued per led enabling our share. deliver perform asset us have normalized and performance, $X.XX

Second, asset the time given our over with ability five verticals to base cycles. successfully allocating through diversified has us capital continue and

firms currently systems a rate our a life Science capital the following is class recent did diverse the examples X% NOI. this large significant which research the base vacancy, tenant both cash forward clusters. business, of in [indiscernible], strategy to business entered Class nursing through our we XXXX, development a record less Life earlier, found companies U.S. delivery as Premier Cluster business, world is well our our in have access enterprise science and the the a of science sector, as company. the value. cap skilled we when our mid-stage in talent hospitals capital to in science and asserted extensive health have and up with pool. unparalleled than to high The ground we For of the performing activity Portfolio our results, systems and acquisitions. drive include forward The spinoff venture of uplift benefit care Also, we to South lab investment after as quality we life ranks opportunities into by that Science just addition a San capital business Two to office sciences flows life Trophy network has and example, of provided decade has enterprise nice of mix this very of to health located an going invested consistently San one asset innovation then, market medical the investment building of in at since allocated on essentiality South science to elite group early X% diversified life our $X life Francisco billion market Life public concentration A a Spurred Francisco The of the and

One on a are be we UCity million. leasing by acquired diversified history in performance the year, Quebec. XX Maurice over Groupe sub LEED with recommenced Last has $XXX XX% Building of basis XXX,XXX a our the invested Life thriving now and up This delivered of on Canada. is strong its in portfolio developing costs recently adults. research geographically of designed estimated known project Le and vibrant LGM total Drexel. also communities square portfolio older and to successfully certified we've construction for foot high-quality and over shop project market on senior Philadelphia, in We state-of-the-art bookended Sciences this as project Similarly,

million where are well recycle also communities, consumer $XXX too. capital underway. we senior are nearly We can investing living do focused ground We new of up development which in see areas

us recently want housing portfolio part that of key have placed senior sold or assets under continue demographically supply the our private contract which from the living, that in conclusion. us. We driven of for because capital the are and remains upside senior strong on to There not is post-pandemic, side. portfolios holds of diversified We bid supports long-term our certain for front class a living of senior making improvement asset continued a operational the demand

that and Capital liquidity, to our our investment capacity, augment growing our and sources, shareholders. tools additional our use of under side an over expertise the partners and incremental of capital this source diversify management management. platform. These our feet and has expand We management open-end in and a year, already leverage include at forms square we in appropriate launched Management funds, to capital of have times for and footprint, already Ventas institutional team third-party to improve our assets Having under and our Platform, as industry situations, in positive On continue $X billion also grown the which X nearly through billion provides significant for financial our flexibility March million successful institutional assets public customized are third-party in competitive for earnings. other our advantage of ledger, all $X

respected of over four $X also XXX Following have to progress today continues Life announced We've a innovation projects San committed our exceeds accommodate most and Sciences the raised in global estate Francisco investors. additional we This equity, capital, currently investments. closing, the South in approximately and new in with estimated GIC, portfolio to when development venture project one capital covers million discretionary fund with million equity new real new venture of research joint billion joint costs. XXX

with if in joint projects forward. Our they may go be our venture with pre-identified expanded over to currently $X GIC pipeline billion R&I development future other

Also a of medical Ventas's track real are a and tremendous life in project One UCity the in interest the these partner, office The majority financial receiving market-based a opportunity science, the to our compensation, success testament venture estate GIC market maintaining team record. of within profile with joint to recent liquidity While and a development all excellent they improve demonstrates and accelerate our and strategic our fund construction GIC senior and partnership us open-end our and research projects including Philadelphia. pipeline, housing commencement innovation align investment enables and

now, Turning some operating to to about portfolio. provide the year-end U.S. our I'd senior observations like key housing

operators Importantly, quarter. the continued the in on quarter, second our in the trend build improving third to that began

continued through movements, demonstrated which sustained and in October. leads increases communities Our

While level toward we are sober cases the and about a living recent today, nearly record of XXX,XXX confirmed look the clear senior COVID-XX post-pandemic in we environment. strength in believe increase the we to as eyed the nationally, business cases of

living also the recognized in HHS directly of suffered community allocated older funding senior living to the COVID-XX Act that Americans. are the HHS appreciative has to partially mitigate We pandemic. because role CARES protecting losses the vulnerable has crucial plays assisted

as providers. first for vaccine we will senior frontline Most a vaccines operators conditions residents, Older effective, Finally, registered treatments widely and be sources and An encouraged our the of available. for including administer care by pharmacy slated as and recovery. becomes just COVID-XX behind being scientists vaccine already Americans, responders made are COVID-XX. for on progress health doctors improve prioritized further our distribution will distributed the soon with distribution housing vaccine have to it by

this principles our embedded that have demonstrating demographically We and thesis report healthcare to and in on actions In me to and Ventas of COVID-XX and case greater other ESG. preparedness, upside a place. new remains closing, and in is leadership and our health portfolio. customized and achieve and significant diversified that Among investments that emergency team. justice. driven Today, our incredibly and series our our estate showcases racial describing we exposure sustainability things, report we safety framework long-term our the for growing our our real of our glad are portfolio, environmental proud in which consistent discloses that improvements commitment in sustainability reiterate gender are studies I'm social in our equality corporate and practice, Ventas let longstanding goals for to showing published

for assets cohesion stakeholders. all are and consistency Our our great

an have at stable All the recovery. commitment and strong win us abiding of stay to Ventas and

Justin?

Justin Hutchens

encouraging I'll the Debbie. portfolio. continue shop trends to Thanks, our start in mentioning we see by

portfolios in month or in that of for our a October persists. positive to and start the independent The senior typical to across pleased of move underlying in our U.S. living Canada. in at than and demand had and services pandemic delivering move levels ins need equal are driven Canada are We majority have first net more the since the the levels U.S. housing

pandemic should excited we remain housing that trends, the on fundamentals the business. are senior we're near-term years will pressure and spite positive in committed about come. the supply of supportive about to add underlying sector, I uncertainty encouraged to persist demand also that choppy ongoing for the While the housing the and business that in we senior waters mindful these causes

up review will outlook. our comments shop follow third latest our and Now some and in senior and portfolio the trends housing with on that I quarter triple-net results

were First with quarter, the up, expectations. shop the company's the shop, results line for in

and XX XXX Canadian XX Our and respectively, year, grew both year. comprising prior points movements in XX% prior quarter with move-ins effectively our of Leading XXX and the numbers pool trend improving posted a compared which were as resilient relative the and occupancy basis trends sequentially In portfolios XX%, declined in and is quarter, leads same-store lower flat to U.S. inter was shop demand cash points the XX% operating NOI, XXX our senior points leads basis also over RevPOR of million consistent indicators housing. assets and saw highlighting intra positive September quarter. basis as absolute while second NOI respectively. Average versus sequential and to such for

entirely by sequentially, primarily lower related offset was Third expenses. quarter which X.X%, operating revenue lower COVID declined X.X% driven by expenses

reminder, cleaning all testing, in reflected impacts results. property have been elevated costs COVID-XX a As including labor, and supplies operating

I'll which pool, including public XX.X% on As a demonstrates in sequential with was and of of XX and investment portfolio, an our in and average LGM our XX%. second quarter, QX compares a of The response. quarter, portfolio to over highlight Same-store the same-store XX% represents shop absolute XX.X% basis our Canadian for last U.S. sequential grew on by occupied, NOI within relative outperform well-orchestrated basis. the communities diversification our Canada which benefits our health the an cash

portfolio, senior its in expected quarter Ventas through of Moving triple-net triple-net and third our October on housing all senior cash housing received to rent. the

by portfolio performance our COVID-XX, addressing housing continues to senior triple-net which impacted we partners. collaboratively with have be underlying tenant been Our

senior our a with cash X.Xx. through Capital tenants, is coverage trailing result housing proactive arrangements smaller flow other XX steps to and our mutually Senior, months beneficial of for improve Brookdale Holiday, coverage As

triple-net housing expect CARES funding, also positive development. which be will will We senior tenants Act a receive

recent Now trends. I'll address

the characteristics April and in described and as These experienced incentives. move-ins trends third persisted and month-over-month part in remain since by to net quarter. selective low As in improve earlier, move senior we in October the demand solid housing positive move-ins into supporting continue point leads helped

the communities more robust move-ins. of supporting our living protecting are that's execution earlier more protocols testing Currently, in open accepting screening, successful of XX% pandemic. than operators and environment been has and Our a

Moving results. on clinical to our

predict. As than our in operators a for the efforts the and public. too result infection of peak the trends better preventative executing, seen more testing uncertain rates QX than in of In to environment, protocols U.S. of the new spite new broader COVID-XX April, outlook regards cases diligent XX% to of it general the market among to shop, due is hard increased resident

moving and the However, health we the current we frontline third expect we indicators and to the improvement caregivers and biggest would as to occupancy flat continued expenses are housing would business remain priority. In and encouraged and the by quarter be of soften the is expect senior committed residents October to levels summary, leading the we safety through and at elevated forward. relatively the

in and residents. hand We on the to are execute protocols proud the quarter of Pete. safety and our COVID-XX health the frontline operators' caregivers related efforts while successfully With to third call of I'll that, focusing

Pete Bulgarelli

Thanks, Justin. results I'll quarter segment the office cover and third trends.

over a NOI results and growth. continued represents the life show basis now the financial provide to and portfolio sequential role within care key steady in research and innovation health XX% XX missed a to office business million office The and same-store in of saving pandemic. MOBs XXX play value NOI cash produce Our the and and which continues services proposition delivery of strong represents our quarter. delivering of for third strength segment of Office crucial centers, growth This its and vaccines portfolio the research points two therapeutics. lines Ventas' of

that will third X.X% for You NOI quarter. the cash note year-on-year declined same-store the

a lapped parking fee $X.X NOI the normalizing we third paid increased prior the costs of and quarter cash COVID, same-store X.X%. X.X% shortfall However, for cleaning large this The grew due XXXX. to year fee. million NOI from in cash normalizing the for by grew same-store termination

been rent came industry with the rents third contractual D new de tenants quarter second and deferrals, is have an paid minimis. were leading due for which of granted In terms docs deferrals that were XX% negligible. granted, repaid in quarter of line the all This in deferrals quarter. Substantially second without receipts, office

from of quality the base. more of paid the tenant November NOI systems, federal of XX% of HCA our to tenants assist grade XX% XX% of affiliated not-fort-profit small The of tenants of significant than As amount investment our designed a major healthcare underscores quality received most is nation's D rents. variety Receiving or rent programs of without comes from with the our tenants October is docs tenants and Most tenants of of businesses. providers systems. have health X, our through some prestigious, direct Remember and solid of MOB result contractual the and our total health MOB NOI durability a XX% including quality in have buildings. of support reflection

advanced System billion XX X top in have an example, As we Health relief payments. nearly estimate CARES collectively tenants our Act that XX billion and received in Medicare

from For solid XX% investment our of publicly listed R&I a portfolio are organizations grade received our companies revenues and foundation. very

points the million is and and Philadelphia and office for Lab and XXXX was trailing quarter at had quarter XX our third a quarter Third office higher was a Louis. portfolio occupancy for portfolio total square XXXX for space level basis with was XXX,XXX of University result. quarter year to-date. XX% third lease leased Washington this to the small assets sequential research continues the months. than leasing year-to-date R&I Driven University quarter and This square is in the XXX,XXX post XX.X%, the feet by of XX associated same-store the square for retention X.X square third retention of than by Pennsylvania of offset in in reopening tenants up outstanding to office This partially Medical XXXX St. several high due X.X demand feet of innovation not feet leasing. now record decline be an XX% XXXX COVID. the feet leasing and million higher the

the trends volumes also October. reported health positive continued utilization have systems. space trends surgery admissions We a mirrored in These that saw by through

pre-COVID as depths levels, paid below of but XX% more levels. from to but XX% example, climbing historical COVID an still to the parking recovered doubled is than of As

XXX% for for also multiple our procedures. MOBs our pandemic. are free fighting buildings are All are in elective counties are in and of MOB All open business, that open, of research organizations critical restriction buildings the supporting R&I

level the with fall We major the for university do opened same of in XX person second have the in all of learning, on-campus influenced some semester. which over to relationships,

contract, we signed San of confidence already have which three will build are gives us XX% large in going high have This mentioned, state Francisco. experiencing a we occupancy renewal soon under leasing Debbie a South R&A that are Since activity. As the is pleased level added to from current our leased. buildings and

satisfaction quarter, our the we tenant that I am the in report During third received annual were survey. of years. significantly pleased results to higher year's results than this prior

quartile. independent our in is fact, the third-party, In top to when an by MOB satisfaction other portfolios compared tenant

of was pandemic. One job. scores done field team terrific pandemic, have highest during who personnel serve our tenants during how These rated a supported on-site our our tenants the essential our the

the commitment. are In personnel on positive and continuing third the healthcare clear quarter, baton that, grateful sum, and XXXX. and entered to And our in we as effort health during I'll look the With We focus quarter safety the Bob. these build to for of satisfaction, and and tenant receipts our cash pass leasing, second the of were a to from we continue their forward NOI research tenants. we normalization operations

Bob Probst

Pete. healthcare close I some enterprise level before Thanks, our touch commentary. triple-net on portfolio lease I'll with

and coverage significant our post-acute Acute Both the trailing the X.Xx triple-net XX-month quarter. October inpatient our of During total quarter, strong mitigate to to healthcare strength third liquidity second in coverage admissions increasingly to for sequentially or to admissions to cash continues pandemic. flow third for hospital funding open to early XX% months healthcare government that our fully Arden asset proved funding information are census. loans related November their Colony, of hospitals care conditions market jurisdictions had the triple-net and approached rebound EBITDARM improved of and and the providers coverage showed from and elective a prior the XX% government receiving of available losses COVID-XX. classes XX points improved Nationally was 'XX, have despite importance acute hospitals related within levels. all create evidenced access over surgeries the our are XXX% residing Holiday as despite the in tenants. quarter, healthcare by quarter improved and from XX third the trailing basis Further second continue for to year resilience and COVID. perform assets portfolio, continued significantly current. health our loan finally, care is challenging tax to heels in of Herbs QX have over QX and extremely on well quarter Brookdale without And benefiting all Health tax and with in X.Xx and in its procedures. continuum, of

write-offs, and and to these charges of Turning additional non-cash all income, performance, write-off of Genesis a across financial quarter includes and tenants These our third with charges net cash notably as basis of million rents me we on approximately COVID largest. which let quarter QX tenants, third with a page rents rent, result start are now XX represent straight-line in to being from FFO. information the will supplemental are These Most in impacts. the collect five $X.XX normalized all We cash our the non-cash GAAP excluded tenants XX. notwithstanding endeavor our annual contractual forward. provided current, are going on

second of saw included our described office we in as we a compared to million were third resulting XX%, quarter, in the second by the in cost XXXX strong decisive earlier taken reducing structure $X.XX SG&A with FFO stable in actions terms in by the In and NOI savings the quarter. third versus Brookdale corporate $X.XX and QX. normalized results year to XX the These the in per In the Ventas. the annualized the rent the in third reduction reset in of QX ensure quarter, sequentially, delivered share, stable quarter. FFO in Shop $X.XX

issuing we in good also liquidity, to sheet managing ATM investments. paying down revolving are feel XXX of Francisco Net-net, and borrowings about We bonds South under successfully San all help our substantially and financial including tendering under million fund facility, our for our active flexibility. the our balance credit near-term

billion at strong X. between cash revolver X.X as November Our available and hand liquidity of on capacity is

taking pandemic remarks. to to that win To sharply we're our and diversified housing. limited trends near-term entire our And team close, in charge will the gross maturities, capital us. recovery fixed performance when debt continuing access is The actions finally in strong XX%. asset is coverage have just on Ventas and enable sources, the value focused the behind quarter improving that with us prepared pleased to the debt We senior concludes the

respectful Before Also with the call our we ask Roethlsberger each remote, start with to one I'll Debbie on impression the I'd Q&A, be QA. to operator. we continue do her the quarterback limiting given caller to one we're to and back fact be question that everyone to follow-up the to With that, turn line.

Operator

Steve Instructions] first comes question from Evercore Your [Operator Sakwa ISI. with

Steve Sakwa

how about are. have talk and the the versus fund was you I could of curious, the and bit other developments of a about thought how guys kind of in these formation just you venture. I'm wondering some you about upside in And if lot a excited little bringing a giving GIC the talked to partner And more portfolio in you R&I assets joint that. maybe the up selling

Debra Cafaro

one. Steve. I'll take morning, Good that

Basically, I think our partnered of it's way of and someone we're science these whether continue developments to a be this us Philadelphia that venture with their life And helping those further partner, and We to happy expertise a moving strategic potential we're really great GIC very R&I forward. significant move to quality. portion business growing very forward. joint a GIC gives really upside. development And, the is activities, that, to us of business great other believe with again, their it whole our commitment the building, joint projects own or on to our we've got it's underway. really three we've about and restarted significant business accelerate a R&I venture. excited

Steve Sakwa

quarter up to a say to then Francisco correctly. fund sure you for Did San wanted in just the heard Bob, I Okay. you the follow help I purchase? make And you just stock that quick issued

Bob Probst

billion dollars majority newly of vast transaction really step funded included million fund on across equity and that the some modest one ourselves just was that some Steve, we of that raised senior little bit, through dispositions Within second back of equity new ways the and our housing equity. Right, ATM. XXX portion, the a two

that ultimately, deal sources the was overall. uses for So the of

Debra Cafaro

Right. $XXX million was And piece debt the attractive debt a about piece.

Operator

your next Citi. with And question Joseph Nicholas from comes

Nicholas Joseph

housing give on the size are color also what the asset senior sales then, pricing market, of some some are? mentioned Debbie today? And the on seeing sort the you're portfolios what of in market those

Debra Cafaro

And about I'm we to the it's are of The recycling are Right. couple that talking continue point of a around to of Yes. million which model. important sold, in is an believe are main contract. some to we six. really is blended rate We definitely assets, really, dispositions cap continue kind some a part are over senior which diversified capital. think under housing hundred business and our of of those The open

Nicholas Joseph

Thanks.

development you've in So getting value the you about asset? then paid just back developmental that existing compensated to the created or JV, the think GIC for how did

Debra Cafaro

were Yes, a And we partnering very strategic with on focused again, I that's great partner. think question. a

as give profit as us the are upside move have are in as only much but but you For with half myriad ways partner remarks, I additional generating partnership lot mentioned market-based. that this than preserving confidence not that and in of of that measures, get and more we the is a just can then, sharing of market-based certainly. us, forward. we capital, upside getting we They compensated a which And a keeping as about of income having strategic can much we see, my great

Operator

next James. Hughes Raymond from comes Your question with Jonathan

Jonathan Hughes

There some avenue seniors for is other Ventas that a and a make housing oversight relative businesses? for regulations, of going growth for less forward potential business attractive to federal potentially your

Debra Cafaro

we the the business, in I demographic of said, in demand the to mean, us, I front continuing is as improve. think, is believe I supply

well, business, So upside the from would transparency. the and assisted I welcome that, living or appropriate With that. we clinical reporting compares to performance be nursing housing, the we Act, some business. there could be the skilled government's communities for under certainly financial that of obviously, there's the requirements and terms CARES about operationally to which of think we're that And, incredibly of there frankly available support, grateful and we're record senior benefiting, in other think overall

Jonathan Hughes

significant then raised a via willingness for but desire very to the you And understand Okay. ATM, small why amount. liquidity, was walk you the I can through me, plenty equity And manage of leverage, us one time to shares that my opinion, have just more it away a last give you when the that. signal, how just ago at in to the done bit a rationale Thanks. you a mixed seemingly your a and year discount, was about thought love of views, hear sends I

Debra Cafaro

to going I'm capital. ask private about and answer to access talking public Bob to that. again, And

for Bob, can So Jonathan? question you take that

Bob Probst

Sure.

million principally I point equity start XXX with and to party capital think via transaction the fund. the for is, the main sourced of that was principally from new third

call assets, small attractive set of a I -- main part is Ventas And dispositions. the the that, million. fund. keep was San that a partners, ability portion of We part it approach risk of equity vehicle an eye source assets, the And the ATM like demonstrating in we our the Jonathan, Francisco to that's has that through on leverage and size. attractive overall. to think have balanced the with took the frankly, fund of through to about to So and a XXX Within that acquire majority mentioned frankly, our

a balanced majority, the So equity from coming private the of approach, third-party course, capital. of but

Jonathan Hughes

think, by turns. X.XX would line, you gone mean, did up But Right. pulled leverage I I the it on just have like how

seems So -- just equity it and pull why as of down. it tap inconsequential to kind why it not just

Debra Cafaro

you in then was part with way And, a across of size, Georgia. that again, to keep side ATM currently disciplined, active capital, different is, mentioned, lead stay Bob we that. way the sales. asset that's the we Biden's think a Good an as the but all these markets. part want case continue could to in the be the balanced Yes, decided it's it private with sheet. make other We just for I math, I And in balance and And either asset it's think like appropriate capital to fund of approach, sourcing.

Operator

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

Michael Carroll

we Thanks. outlook, driven his remarks I near what COVID over next little driven your is I this typical What Justin volatility of wave want the prepared two trends and seasonal bit months, to type talk by, believe mentioned that by term third a is seniors expect like about occupancy should housing will it few the soften. quarters? you expect

Debra Cafaro

a so to going of the nationally clinical our trends in that mind near-term to that about ask that's outlook. overview and think answer in I'm very just keep we're something Justin to course, dynamic you with with the as environment

Justin Hutchens

certainly would we're October encouraged I I contributors they've in positive add U.S. mentioned. to Yes. just board were trends, up had the Canada. by that net across We that in leads move-ins. operators month going And in and the the the and consistently been the that in

the is So but the environment macro positive concerning. trends are

it's the continuation the to in U.S. just difficult increase predict infections broader in So, of of the the face trends the positive across public

driver continued positive hesitancy make that's And improvements. about biggest really predictions so for our the to

Michael Carroll

kind of rank of some operators free that out term I ramp type results? you widespread Web they're rank has what portfolio? now, of that in of forms And weigh on site then, that guess, other concessions, And highlighted and near will dropped on seeing, right are I competition is Okay. from know, its cuts the Atria or offering

Justin Hutchens

Yes.

only points more leading with to our sequentially. getting the easy Canada in has I'll the NOI growth one, All with overall. three growth XX start Canada their basis LGM well, XX% Canada, than really performed contributed NOI Canadian So with double-digit dropped because that's with operators occupancy way of

supply/demand was dynamics impactful. So the there. there's virus less less of kind And

the we U.S., of PPE in you in So Northeast look performance an prevalence on, on move that the more of had U.S. and deal we've activity. and the pandemic. set throughout a get was you impacted to had virus the interesting been expense Early out to move if impact our at the add from and the the with aside, also and what's Canada perspective, had into then because

to the for Northeast geographies trends, with been impacted improving these the is we now across these improving part, as they geographically, exceptions. some started equal are the across all most have But competition. see facing as want was So operators then, and operators the Since continue what trends to some relatively trends early.

and operators at greatly fixed cost incentives to in an are a we're that you would this to see what point. that. so occupancy, stages environment from early And move-in some classes, asset markets, certain you increased business in have the in starting And in expect benefits and seeing certain high use that's where

Operator

And line SMBC. comes with your Anderson Rich next of question the

Rich Anderson

the fund, So maybe of is a not is I partially your the a to kind from to it business, the purchase, but university can goes science also, respond you on But guess departure why that. explains maybe, life which based could situation? there that turnkey portfolio, any redevelopment of sort kind pretty some angle need assets of some of of in understanding addressed -- it is maybe that some much a some orientation that awkward there or be

Debra Cafaro

turn it asset. Rich, now And talk really asset to very area, asset why is the time, that. ask to a essentially to XX% the we we new current is, to its I'll period about over liked a like that in up Pete leased short of

cap terms In a to a I capital for the the rate not But cap was work of them. these case, something the really us competitive available be there's this five to say in with assets, that the size, capital, it's in would markets. -- forward of public after sought huge designed capital a rate in advantage amount always is may fund really trophy acquire of highly where perfectly

continue science why our really that's capital And footprint. we having different advantageous to as life pools so is of these us expand for

Now just out where about life that XX just have years really X like XX% we do just built campuses a nation, over thing, now. incredibly of to research mean, XXXX point feet. we the represent, a university research only I in million our have science, square this all it's been to And not the on also, for say one other business in major but couple Cambridge presence customers, from we've

couple in with And the both South the two years largest so, acquired that investment. ago a Mass and we're Francisco now now we science of San life Ave clusters

Pete are portfolio. would some answers to the address I why those like the we of more So ask that capital

Pete Bulgarelli

Yes. this square Rich enter fortunate market San feet. We a the South be feel is on scale, very to to able XXX,XXX Francisco

start a for it's us. So terrific

and the It's highly it's side got close It's It's And expressway. be to enhance said, we're to occupancy that it's to the short their proper largely lot and fits the this XX% think the it's amenities. really XXX% got from the like views; BART rate, And great as for. is a activity. differentiated fact opportunity XX% And tenants on leased. period also It fantastic time. this got expressway. very have we leased at We square stations Caltran. perfectly we’ll XX,XXX a to competitors. it's close And from drives in the Debbie we've of buildings niche accessibility got towards of onsite a we XX,XXX the very building of market new foot

an refer buildings high are for out and Sciences. infrastructure, are they're as floors built Now, to they that several not in quality But you there buildings. the Life new are

the do convert So as some life those floors those floors construction leave, into tenants space. to lab office will in we sciences

Debra Cafaro

yes, the tenants we the characteristics the tenants location And of the really the Pete. liked Thanks, and in did, work building. that the

So that's occupancy the leasing out kind of by activity. proving and itself

Operator

comes next Capitals. with from Kim question BMO Your John

John Kim

looking joint open we developing does you're cap rates on contributing the and I for asset to was assets I if think venture, assets? to compare cost. low R&I the in sell the How market new this these the were XXs in

Debra Cafaro

morning. Good

to And of generating over of upside. are cap in seven again, time. benefits sharing as it fully the of of are kind developed keeping I leased we mentioned, transaction, about this XX% So, they're the relates stabilized assets the profit and based terms is rates level strategic compensation the wins, and market of and as

John Kim

cap in a ground how platform. bought impacted, as Battery peers and Manhattan? outcome? like the competition as Seems from lease second when the your on of you discuss occupancy you you My could potentially potential Park. similar being timing expect also the far question reset rate given some is you Brookdale to be new Can if Okay. And discuss

Debra Cafaro

Yes. Great.

just give So long that to plant. acquired that a talk I you about we ask operations for successful it's been a a has market cost. the in asset physical remind great Justin It time, in And I'm want but to underwrote to rent to everything, and environment going is silver the of And the reset us as quite a quite lining and becomes COVID-XX that there's ground it's on always carefully. a it the current when applicable. benefit may we lease reset, asset possible terms at replacement below the case, that

the talk you how Park see do asset to John post-COVID to in Justin, in about want the Battery upside operations and Manhattan. So you

Justin Hutchens

COVID has it's Park for consistently before community a performer And in direct been strong competition Sure. point. been -- New price its Manhattan now a seeing market the us very Battery at the entered not it's has York and environment competition The that more in higher area, but

So forward. we point that community we history as positioned product, us we'll closely to price there a solid our to continued taken It within strong be we've a competitive of can expect be are we to performance, evaluated own demand to and that actions positioned have is intelligent forward. there consider be moving very an be help continue moving -- to

Operator

Okusanya Omotayo from comes with Mizuho. question next Your

Omotayo Okusanya

broader you see amidst life a based impacting and university is thing. you're quarter. sciences. Question restarting But happening for what's that Again, the I that's budgets think good concern with based think forward around the universities, COVID, things life Do I universities like pause tightening solid the project, on sciences? Congrats that. going demand you it?

Debra Cafaro

I mean, science, again, of sciences with demand life those capital capital life also into record real for now the are estate. nice at and flows this we've the Good. really built record flows, business highs highs where

good to that and really distributed our of currently, the help to high really and to really Cambridge about levels, pandemic Clearly, developed getting going will and public to university San health so coupled sciences and that. diversification, situated be hopeful pandemic. to different the leaders Francisco. universities, Obviously, policy, feel in now, academic that, including And demand. the public And is that significant we there life But have general, that in are we're elsewhere, buildings throughout we science, feel is and we all in COVID as business. going fact developments segments South and universities potential life I a being the that mentioned about both the year other affecting the based research great funding the consequences pursue in of response, sorts frankly, XXXX. forward begins we're good with differently, know a is post-pandemic if before markets So in with continued within vaccine research the cluster looking the at us with that like be we sound continues of in we government our portfolio

we with life base universities. leaders science that case. that continue like our case, the these So we and associated that's glad to in these business And at research be we're continue to

Omotayo Okusanya

quick or you helpful. to government up. Okay. Democratic Republican a just the follow Senate, hinders fight president, elections, perspective? we're That's heading And Kind from senior do seems the housing then a as one helps help house, of Democratic for or additional think it that how drive

Debra Cafaro

living divided steady she play we the obviously, we it's Yes. what toward a will you. house is that certainly yet, thank the closely what president, my a And what the because us is, be more has guess a that are even only Well, role in goes and mean, are policy, but guess, backdrop well. to grateful of know Senate, consistency don't Americans this as moderation and HHS will quite and senior crucial a pandemic. for hopefully results with understood for as more I more a vulnerable moderate policy, in democratic during a older for democratic be country that's push favorable Ventas likely election

Operator

from Stanley. Malhotra Your comes Morgan with question next Vikram

Vikram Malhotra

have be platform fund end kind of both growing it's of housing thinking kind Whether just this on structure sheet. here. senior fund How in the finance, from other balance or and using housing during you or about spectrum, have one on should of kind of or contributing properties fun housing senior the of platform first business. potentially like acquiring the -- the just Maybe

Debra Cafaro

broke up, but of your question? kind you I sorry, repeat could You am

Vikram Malhotra

from of Ventas sign is, properties you fund how well, as fund, housing you I platform like the growing senior What a into business you've think or was asking contributing the whether housing? it's like structure using do to just MOB for using the O&I the senior grown grow structure fund about kind

Debra Cafaro

Yes.

really the housing. senior in business we did do I fact like embedded have Again, Okay. upside that hear we that. our from

of those figure obviously what additional of typically terms tools that's what disposal And housing. depending acquisition. at that look would low and out have core type source for on And for characteristics investments at the real to were. assets, vehicle our is the be senior cap customized rate, open-end their In low to we including highly plus really estate, designed leverage core investments, stable, capital now an fund be we would various

funds. of they on suitable fund for more So those opportunistic, that other could or profile, be add some extent sheet, are use opportunistic, that in up could the form do pension balance senior assets housing. ground case the they value be value the now, To either to could obviously fit and you have add, capital in development capital for private them. really do likes we Right and/or

we types could capital of if we've for available we had opportunities those do that pocket that that's So a so. of another for to while, use wanted

Vikram Malhotra

distribution of of housing, And pull were levers a of Okay, a that would you just between senior sense the vaccine rent year equation, rent end cycle at and just occupants in lever? growth on and get then how how and last the the you out, occupancy about any regaining sort other trying of the you do plans get -- and the laid the make in a it's levers follow think to say, up, sense.

Debra Cafaro

Justin, I'm really as October, how move over move key, to that And to and that we've obviously, Yes. in attained succeed going then described been which, the out back occupancy. for to in in having Justin turn the that's gain of,

that would take you Justin, you So would on?

Justin Hutchens

Sure.

years. desire environment pre-pandemic very portfolio big senior when and driver a And what of housing typically relatives enjoy up, the amount throughout and enjoy the less their has and there's then it key that's to the where back demand our In sector, expect amenities is we you a and pandemic, see virus where persisted. leads to over to also operators they mean, with ability XX to a occurred to this lifestyle was you pandemic, being living at be driver was offer would can the restore that that be throughout either obviously residents improved. the too. you vaccine it and population you the the back in really senior And can that the the big once going that change able in. across the just safely impactful we've was across more of So, visit supportive robust move you're to or seen a of the CAGR that eliminated XXx your the and the have and move-ins five demographics are is time to next plus doing housing remaining supportive, I and really be that case some

by starts deliveries at nine-year are low, half year-over-year. down New are

if of vaccine. lot we especially a there's So a can get support,

point of is delivery really that's vaccine what availability impossible. is predicting deliver can to residents care and environment of to think I supportive it's growth. moving are really we the accessing the in and parts very post And it. All the that and Now, the lifestyle nearly the going

Operator

from with Your next question comes Jordan KeyBanc Capital Markets. Sadler

Jordan Sadler

leverage. on would eye start, Bob, you I keeping so just an to like mentioned

debt to should portfolio? your with seniors you fund leverage are conversations maybe looking to agencies you equity development with net funding NOI raised the ATM? your receptive rating and pre-COVID expect housing given the same continue we on So at then, first, had at to commitments, they to the the have lines, under along And surrounding X.Xx, EBITDA

Bob Probst

Jordan. Sure,

expect. start of there's attention the the with senior the clearly, so paid you included, to the the rating were whole trajectory. lot for sector, stakeholder, let's in you a agencies, rating of an housing important been They're ourselves as agencies, rightly and consistent would with So dialogue

like? so, trends that far. And is focus numerous is of And encouraged, with the it them said, our the what as is we as conversations look main you, thus been times by with trajectory we've

code. flexibility things to commitment assets, in the good. that's stay demonstrating to we we're it's prudent, being the course, strength third-party capital, our accessing smart, managing doing, And being sure zip appropriately. In right make meantime, selling financial and is what sheet balance whether the So of like that

our situation. the that's of be But recovery things. smart the day, about approach. to very end in the is how going leverage housing meantime, so be And the senior At manage to the helpful we

Jordan Sadler

contributed, even consider Okay. seems GIC, and the some guys on that? Have by monetizing or I would was follow seemingly also what cost be pre-leasing who's up to you portfolio essentially, monetizing was Then created maybe you it the JV, though stabilized the value? struck just R&I you considered have

Debra Cafaro

evaluating variety is morning. talked really of and we're this This private capital, about a ways public sourcing, of capital. capital have sort to Look, happy We're length to source our Debbie. we've at as debt constantly

significant strategic stabilized profit. it kind our If we've retained of have strength partner, as and a launched March, mentioned, the our as in you'll of our cap R&I gives we the part And the significant recall, at managing us development compensation, we profile. fund we together of financial in interest rates, XX% we MOB some also flexibility assets. which that to sits market-based while with assets and And all when including our of have upside at respect retained a a also attractive actually risk know, JV, seeded R&I I've here, you with

consistently types. we feel the we opportunities evaluate on capital will portfolio recycling for that balance. opportunities certainly, So profit-making And can about all and good all of

Operator

Joshua America. from Your Dennerlein Bank with next comes of question

Joshua Dennerlein

to elaborate on brought JV? also maybe they was not reasons, could a strategically the but strategic and what just as partner GIC mentioned You capital bring for

Debra Cafaro

be very Right. estate GIC is say with. obviously I that, mean, investors. about I would leading would the partners world's particular of who real just one we're we

them types long of like because that was the a we they If We types. relationship of good known for we we case across other them. optionality or activities, asset or a good felt certainly strategic a having for investments partner them with the us time. have we We've with that be a And could appropriate. relationship in

So benefit over relationship establishing enterprise with time. public our could entire stakeholders and good them we a think

Joshua Dennerlein

housing additional you mentioned appreciate Okay, senior potential asset that, Debbie. And sales. then

that or cap quoting I is rate were NOI. more assets? And what then, to think is XX-month at current or being six you Are those trailing you're mentioned a a you or that at? shop said marketed basis they sell expected lease cap, net that's they're

Debra Cafaro

have with again, a other for know, combination NOI that And that's both sort really today's and we we the triple-net sold And on current assets. in environment. consistent assets -- very and under in that's you So of third that sale. they're portfolio we a more have based quarter trends leased market of data, targeted that

Operator

Nick question Yulico next Your from Scotiabank. with comes

Nick Yulico

on about just talked a trends this. delivered moving But message and I I you of fourth bit the off historically, wanted lasts necessarily know, period through that etc. because the to though so portfolio, little quarter, is October, So in was talked up shouldn't but October, you follow about the senior assume weaker spot occupancy the occupancy move the we housing in benefits the And that is your that benefit in occupancy it message, far. it's

DebraCafaro

it's I been from this the that nadir move in results, mean, have take celebrate month-over-month, been consistent April, of it. Those I traction, propositions are on and we in Yes. sustained I think and appreciate demand in important for it's trends showing trends living think improvement look good had good. pandemic, and value and demand moment and that, that our to that to, senior a and

a the pandemic, are On of and unpredictability. know we other hand, a that creates uncertainty we in that lot

positive the have. does the unpredictability, the we can But facts, want discuss be quarter, of humble fourth of the the as what class kind we evidence, that recovery time, is evidence as fact the what asset how to, normal at that the positive benefits mentioned. class, you asset and to same so, And really want history, about share of virus creates

Nick Yulico

Right.

fourth kind I again, of because guess, year, And as for of in rebound, I that of some happened, really in quarter, occupancy that opportunity they're pressure the quarter? terms earliest sort the about, be fourth a dynamic quarter in typically, first I happens thinking a quarter sequential we more given soon as or as occupancy, what the business will of going guess spring Okay. benefit, experience coming is, this out first of occupancy to some up of the occupancy year terms obviously if, should thinking and be about flu. mean, historically figure next as to just already in an trying pressure,

Debra Cafaro

not again, let's COVID. the we're talk be do win, right when time again, that it's talking Well, I'll to very so. and about flu not about happy the

Operator

Bernstein Your with One. from Daniel next Capital question comes

Daniel Bernstein

view health threat a you see and seniors the How a senior housing, the acuity, the I'm you the and especially CMS initiatives care smaller needs a of CapEx two one, more I higher going do lot about how house more do a, been a been into? there's post-COVID care, environment, seniors home needs quick at see questions of forward happens kind of threat for you administration, guess how of we'll new given but of housing medical a guess dining talk rooms on health there's I post-COVID. counting for or, in home senior what or a see to home to number do

try to just CapEx? those in think items So about two somehow

Debra Cafaro

home supposed take we Justin be about when but questions. turn housing housing, and That's to Well, to I'm think over senior the environment. the is social differences your important senior it to to going between a health

Justin Hutchens

many is health to tends of any of pertains to home housing allows they it senior to Yes, living, health, supportive our residents attention which be medical home independent portfolio, as about half receive, of a care and certainly to living been that's been It's within offered service need been offered a and part for NFL that's their years apartments. continuum the might seniors. in services

assisted follow we what terms well. of was need would the that higher to as care have of positioned of And take that is needs residents would living care memory well question? that assisted terms living, continue needs. then, expect up acuity and In And in

Daniel Bernstein

needed even that or means CapEx the within portfolio, redevelopment opportunities. be may

are other opportunities way it needs? COVID? on coming there that are the there side, increased is, development at CapEx out The flip are to And of look

Justin Hutchens

markets that out pandemic, list forward. and probably to we the that's say from portfolio benefit class And And to remain to we of certainly well when have expect would review are the also continue. class to And Yes. over get from definitely under would invested definitely see investment. would our within continue redevelopments that our asset certain and I projects and or relevant market. should this important CapEx that time. benefits a a of ongoing refresh. has that I I been moving benefits from for broader -- the that And competitive expect asset

Operator

Lukas comes from question with Street. Hartwich Next Green

Lukas Hartwich

to Are going all into a if And life not, for go determines going new for they company will So science, the acquisition? opportunities in that what and development now has whether Ventas How not? JV they JV forward? or a JV? a evaluate new go

Debra Cafaro

Hi, Lucas, this is answer. very Debbie. a That's clear

stop. for options, markets leverages and for as public that of And segmentation that the is UCity business of identified to are Then, able sheet. assets again, at in a the forward. joint significant that It handful kind and we as And could way. particularly we may at very be and difficult be talked go that gives would the is drive And open-end of fund designed. capture March, underway, designed there's rate, of Ventas pipeline a the a in is JV, about, of cap again, positive assist our we when that's quality creates projects basically GIC we these the how venture in low us So a platform to that to our full on launched is when disrupted high public cycle really development the lots be this time accelerate core four started value projects result balance on, buy ability the our COVID-XX. to construction for part JV believe to including that shareholders our in going that very that

Operator

with comes Valiquette question Barclays. Steven Next from

Steven Valiquette

XQ, shop the lower offset XQ portfolio to current revenue for decline X%. you that was expenses, at X% Lower. And expenses the the shop the When remain by related operating in elevated COVID expect you flat to mentioned operating levels.

looking portfolio? can percent guess I margins, disclosure just, or the was slides impact question revenues of give as just dollar for on So either just I expenses, therefore again, amount either around NOI just the points, in any in or is, and related And expenses? COVID you of rod the more if COVID dollar XQ amount a and hopefully Ventas shop absorbed in the have partner's But miss there this. total of not, didn't any even your data quarters? we're that prior the

Debra Cafaro

Justin that. to I'm Sure. ask going to answer

Justin Hutchens

But that saw went to million expenses I down we're around by QX XX expense. QX still from about the COVID COVID half. carrying of

still So sequentially we're do will running at the overall that But an we elevated think be expenses flat. level.

Steven Valiquette

color colors kind wasn't Okay. follow on the slide sure just on up than really just XX you to other of thank red using what the what takeaway on that that But quick not slide that particular… slide. blue deck, more of do the in get from for One point want just and was

Debra Cafaro

so page can… Which we

Steven Valiquette

a U.S. has map? That

Debra Cafaro

Oh, that flag. yes. We like

in of It's new that shown share significant extent will the show NOI confirmed cases our and which our supposed the markets, is backdrop with by is there yellow. to We where of of -- different COVID, you. green, red

we cases? NOI? within where percent in move more we kind Where see of importantly, So where there and of year. geographies, those do a less And or are have prior as do more COVID less

see can are area, York New pandemic lower, So New for cases the you is the York green. in confirmed example, that COVID

lot level. and large year bubble a above our of movements the of have see because their prior are can XX% You that is there NOI we

bit that little movement to affecting really a geographical the of have I I of think earlier have Justin a of, --Justin's of was credit, and it of to And that's, where be in virus the there like it kind yes, pandemic, So gives we this bit we housing that that's especially, where I investors and -- markets assets. brainchild was map. be continues operating the it. senior -- kind his parts could how it love of the really different little give

Operator

from comes with question Tan last JPMorgan. Sarah Your

Sarah Tan

measures the some it you all will and the senior of just once in expenses hitting to just the parts will past security operating moving given pandemic, with that what think you've all was forward from I of assume So and COVID do COVID-XX occupancy recovers, be be place? margin different the housing materially carried business the the of

Debra Cafaro

turn to we'll to up. and then wrap Justin, over going I'm Okay. that

Justin Hutchens

a margin of going that said is to The out revenue margin, underlying post expect If cost but it's like potential to that's in amount be to a there's the going big that really carrying used would to I small of revenue earlier, And side very proven drivers to may expenses a question. PPE to not wasn't it pandemic material virus, normalize. growth be back. we're be be with defense helpful the situation, regards combating comes growth this per lot of I'll impact. little get start as bit help There the In I when of we pandemic. previously, the support a

occupancies high XXs when and up historical fixed this move back into with Go markets margins. very the high a significantly. the of cost is get the So, at in business, levels it XXs certain you

be So, to period to to somewhat similar previous levels recovery once we a expect there'll but be get margins there.

Debra Cafaro

to as to and Yes. recovery upside fairly demographic And we be these that thank because housing Justin off will for post-pandemic said. of the leverage there lot powerful is the demand. the operating get a you levels of senior that, occupancy of question, Sarah, When

of that call for And, Ventas, to is for safe. And hard winning hope So interest recovery. here your we working very support want stay and always, committed we're thank the I us. the for end in you. as of all Thank I and you you today. to everyone Bye. are sincerely joining our

Operator

you concludes participation. and Ladies wonderful gentlemen, this Thank for a day. conference. your today's Have

disconnect. all may You

Ventas (VTR) 6 Nov 202020 Q3 Earnings call transcript