VTR - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to the Ventas second quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. to Whitford, conference Director like speaker to now Sarah today, of would hand over the your I Investor Relations. ahead. go Please

Sarah Whitford

Thanks quarter ir.ventasreit.com. are earnings available to welcome supplemental and results this morning the These second release, we Good materials presentation. morning, second financial Earlier conference Ventas the our issued on investor quarter call. Tammy. Ventas and website at

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

a statements. variety to results subject risks and cause from and are factors statements actual of uncertainties to those Forward-looking may contemplated materially differ by such

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

or at This at an prospectus securities acquisition or or Investor and obtained For closely meeting with constitutes and Senior's statement Senior, ir.newseniorinv.com most Senior stockholders of the supplemental the Relations in stock special acquisition on free issued website proposed applicable SEC's approve Senior acquisition. to Relations and filed statement website registration the New a offer also common buy other that Investor of SEC documents by to Ventas sell ir.ventasreit.com constitute the or buy for website the comparable the or at SEC GAAP or website. call measures that of filed Ventas to section our reconciliation please refer an of The offer on may approval. posted proposed earnings as at prospectus www.sec.gov. preliminary be for the the New preliminary Relations solicitation proxy Investor New at to does will connection not be Ventas' a sell charge with a to New these of a statement includes proposed of vote any S-X proxy the in Form measures, with that Ventas of In any solicitation or a a our

solicitation such Ventas carefully or You respective executive materials Senior who about a information now be Debra direct will will description and transaction, in information and and review in A. holdings participants interests security their Chairman acquisition employees should officers with they the CEO. over call and by the of proposed their about New the of be to because and of the contain their including Cafaro, directors, may and deemed other proxies contain otherwise. filed indirect or proposed important respect I SEC to turn Ventas

Debra A. Cafaro

done. Sarah, well

we safety, lease businesses Canadian life sciences, Your health and welcome benefit senior the and and across financial triple-net momentum and high first our good importantly investments, Well, and in of ongoing our our second quarter other We the the quarter from successful reliable business, strong the prior housing demographically delivered office stabilization path enterprise senior and in investments, flow external public housing growth access, our the in our in and to capital of business. participants XXXX an in capturing stability strength primarily most company Ventas areas. and cash our in diversified the growth led deployment realization outstanding upside triple-net to and want portfolio second of SHOP everyone. business morning quality by office developments, to a I from Ventas and research of board, benefits call. through contributions embedded see and significant shareholders with delivery Congratulations. clear earnings merger. innovation driven have

all to the recovery committed of winning for is our team stakeholders. experienced Our

I the high-end am turn $X.XX delighted normalized which provided guidance. of posted first FFO grew same-store is our We per results. share, our to X.X% our me that property above portfolio Let previously second sequentially. quarter of

million July which of the NOI, and driven consecutive SHOP a outperformance a occupancy these in million $XXX same-store trends $XX growth. recovery month cash of continued quarterly NOI, fifth Our NOI produced positive representing by occupancy. industry-leading for annualized of was SHOP, growth in

reached Importantly, levels by the since end began. of July, pandemic their lease highest the

Justin these unpack his remarks. trends fully in will more

that leasing providers growing as never a months remains that communities supported while confident As out NOI showing on the last and our given and we results. and customer in XX measures have environment, our triple-net retention believe third rates, relationships powerful immediately, our sustainably spread. rise that upward. in have continued may which COVID portfolio If efforts it in inexorably our residents are line, care macro will velocity and contain result, living performance, to have a that point are be national assumed office Rounding particularly by almost we supply quarter That leads been the cases U.S. have recovery may ready taken not In in that move-ins or us of been their the COVID-XX anything, path cases and and families, we welcome quarter uncertainty demand have the and taken and constrained. senior the stability. and said, more the business the the The rapidly. to its increase build some is high increase improved as a resilient, straight expenses. to then keep is experienced soon be COVID is surge taught and to we the may nicely portfolio the but leasing, of regional grow impact outlook, Pete's throughout grew full

health MLP affiliated leading shine. and to with on-campus Our system strategy continues

investment systems, continues to Ardent also Turning to our benefit. deliver in health

flow prior real strong enterprise XX% of $XX the our is results is recently equity said our notes. stake coverage debt off from with and investments. done, to and believe senior Ardent and that to prove risk leasehold of a fee, cash equity position, all will million with unlevered $X.X best in Ardent our Ardent Ardent and addition purchase on million in billion $XXX In excellent of benefiting paid When be prepayment investment notes providing our a the XX% us adjusted return on hope investment our return I one estate, in Ardent our

Turning or external investments certainly our investments. regarding to XXXX have behind partner we billion pipeline in development underway that. in pending and we with completed, capital allocation with another In total, are science, on other $X.X billion innovation our front priorities, exclusive right Wexford, over research foot $X life

have deals in about evaluating Our team we across reviewed all classes. year-to-date, already attractive many is This investment as we opportunities also saw as asset XXXX. our of busy

asset adjusted and philosophy, protection per our such will flow those taking We potential meet which reliable favorable on account focused appreciation. cost factors returns, foot into and ultimate or that risk investment growth unit, multi-factor square growing as is cash cash pursue flow for and downside

FFO pending are be unit independent a billion acquiring replacement located Senior, advantaged cost living cash in $X.X a that XXX announced to cap attractive and than a for below the in her Our XX% I job realizing in all the with And this rate quarter, expected FFO X% of doing continues. going in communities is a at estimated is creating XX rate less over second value post great housing example. XX% their The high-quality times is for as investment well-invested valuation XXXX senior New we grow are on X% team Susan estimated cap deal, to markets metrics. commend stakeholders. are the synergize In cost. tremendous expected and per recovery pricing. upside Givens XXXX multiple compelling The NOI to to and

expands from and Ventas market near We and upside receive demographic accretion long and immediate housing recovers middle term that are the will the the in also significantly shareholders as term. senior confident deal large

Justin senior strategy describe, fits Senior As with and in New housing portfolio framework. will the also our

with in same-store A well with unique the portfolio for the occupancy manager. who portfolio, second Atria in senior is into principal recently the of and the two managers advantage New increasing long-standing New Senior also to strategic the leading combined form largest months. five and Senior we Holiday, performed housing relationship operators transaction of the July, QX straight have

growth opportunities creates. pulling this And advanced square is feet. Atria's nation's million innovation we to combination continues welcome directly us industry a opportunities and to It about business. includes and in owner Atria, universities. transaction. nine Atria The the changing provide combination over research for top platform. management three projects Congratulations of located one-third capital. ongoing excited our As and the value-creating invest of life the XX Switching will Atria's Ventas in we talent of exceeds in research benefit to with to we It's of are Holiday's three attractive together science, portfolio from affiliated with enterprise. cluster Atria now the development science markets, the five life top

are we Wexford. $X in with also We projects an incremental billion have working on potential

in to is Groupe ground pipeline. be the X% totaling in additional and life pipeline, the independent Maurice large-scale steam. The exceptional largest in continue a of first capital our in XXXX. research communities West exploring our project is high-end in to Wexford North that billion universities will those living first break the in on top university also beyond the NIH we new with pre-leased potential among the Le half reputation significant should costs, project major Expected in ranks gaining Coast science life be this public located funding, $X.X and about of XX% invest its science of to projects partner, Quebec. with border, existing

pleased both through that external growth have tried returned a always acquirer to we to have internal net we We in and are value being and XXXX. create

to have the been array portfolio care active next has to over and asset robust Our providers the upside as have new the projected has describe pipeline The access capital pandemic classes. wide investments begun and The capturing demand communities will repayments, our detail. years. offered of and in To loan of of significant recovery housing proving the receipt sharp out for our and Bob both families. in sustainable, investments, announced existing sources, greater team senior started of few potential the growth deals engaged in senior in their senior value we our from seniors and including population and and liquidity embedded a recovery fund the is XX.X% significant housing asset dispositions and proposition beyond we across

Our model to uplift stability our to continues provide and diversified business enterprise.

recovery speed near challenges of the that embrace temporarily We our because by together will classes, demand pricing capital and benefit economic of on our business. to In the are beginning $X year are opportunity are term and especially unlike and and the tenants our demographic take XXXX, caused that, in last for the employees, of with in residents, We any largely access U.S. an is and announced safe projects and and caregivers all recovery, positive. to healthy. strength the of this are closing, now, nearly impressive asset our development investing billion midst deals

have we results a and and As the demonstrated. delivered we Ventas, pleased team are incredibly have we the at strength about momentum

Justin, to you. over

Justin Hutchens

We senior Thank you about about encouraged remain in recent we housing are industry-leading and delivering excited portfolio. Debbie. and occupancy NOI the growth trends

are the in to stages review demand supportive strong is tailwinds, benefit still sector three the fundamentals are well-positioned off of the will today. we Although recovery, leading improvement upside, start. from early a Ventas indicators. and significant housing I senior we to recovery very including in topics continued

First, quarter second performance. our

the and leading July to accelerated June and housing XX growth recovery. start the over wider slower more perspective each occupancy our favorably our during rollout, covering operators points June traditional driven indicators of of muted in on sales March move-outs leads trends of months due of as a for occupancy the portfolio second In increased quarter, XXXX XXX% has spot steady. of surpassed in as strategy. net with basis the points during were but significantly consecutive driven performance. sustained marked month the quarter, second XXX strong digital referrals, July. led has of indicators leads and best levels, execution move-ins In Leading Canada, past and quarter expanded footprint professional XXX the points, our start second Second, momentum. and trend and the as our by Strong growth now will activity basis continue to since environment. senior vaccine converting SHOP, In five of still a casting respite the continued personal quarter operating I our senior year, the remained lead inclusive housing approximate the move-ins. from and And continued growth, XX have approximate leads the pandemic XX while move-ins of as U.S. strong spot to basis remained by high increased accelerating June. sources referrals by occupancy such third, our

I occupancy growth increased more that new Atria. in quarter specifically on operating pricing, $X.X expenses million a impact in as of Operating $X.X touch in Turning impact second expected partially on offset the a operating results. routine a move-in quarter, received revenue the was or at million in first to better of sequentially SHOP Same-store strong HHS will expenses. increase minute. by incentives resident by the operating the by declined reduction than offset costs, grants partially X.X% excluding of sequentially COVID-XX a driven by by modest

the $XXX on of represents quarter, $XX.X COVID-XX and in NOI HHS which million a generated marks XX.X% approximates approximately For growth sequential same-store underlying grants. basis. sequential nearly the onset SHOP $XX an annualized quarter NOI first of the increase sequential This NOI pool, million impact when excluding of the since of received improvement a the million first or of

declined increased in points expectations. costs growth During occupancy and the and saw ahead XXX solid as both operating revenue basis quarter, we expenses COVID-XX to average substantially of and sequential NOI contribution

NOI Turning quarter company's XX% received in was contractual tenants. stable and same-store second the largely of to triple-net triple-net. from cash all was rent Sequential the

trailing senior housing, of effectively and in coverage Our arrears, coverage associated flow reporting down impacted times quarter by cash includes which timing with quarters versus now COVID. reflecting XX-months the operations reported full quarter, the X.X which prior for four is is one

which Moving onto is shoots. of operating environment, the current green full

Our and mid-March, in July a vaccine of volume from industry-leading strategic occupancy higher points to Atria's of XXX incentives and recovers mandate occupancy at position tightening and moving from increased price balanced management gains adding management for points the his announced hires. his Sunrise way gains. CEO, low depth pricing power. well-invested end experience strong approach market rejuvenated in very Callison, a a vaccination to all power capture occupancy the XX.X% XXX% to mid-March and to rates, operators through of significantly in residents forward deliver at Atria resulting to with congratulate occupancy impressively occupancy are from market employees. would continues their basis point movements. nearly both growth. the continued broad communities Sunrise's XXX We benefits low the July and in led stabilizes. of combination with demonstrating which to of like Jack benefiting growth team, and Atria, incentives high is a strong recently occupancy this which solid Supporting absolute anticipates industry-leading as pricing since July, basis spot of end, Spot team the leading point demonstrate their

XXX% off as Debbie lease July to points the mentioned, strong continuing to spot levels. start ahead, quarter XX a strong occupancy with is Looking third pre-pandemic basis at increasing and versus of June stand

attractive in Underpinning operators prioritizing Our and and to several leading transitory relationships compelling housing which and safety select sales outlook demand variant weathering staffing is positions markets. sector. pressures been shortages including wage partner from the the Delta recent have headwinds, from our momentum footprint, in the operating term our senior market resident benefit and supply near us

to our with of of and XXXX over poised the national portfolio XX% XX% outpacing that on average a in supply to with of demographics, time in construction exposure The growth construction from basis sector significantly new years. due U.S. and Canada are Approximately has every new strong aging in SHOP to in performance starts XX stabilized wealth submarkets that for eight performed housing is outpace a communities inventory. located population and exceeding as but percentage XXXX Canada. exceptionally presence in the senior improving occupancy Our well, demand lower U.S. in year our last

positioning. portfolio capabilities to is of local busy we our goal senior and the example analytical projected markets, A Senior the than experiential five by execution market our team population further of next strong with the the about in executing right As over strategy, of operator, has housing a XX% been our to that strengthen pace assets in U.S. Canada to The these strategy by our New more right twice driven senior housing with The years, execute operating foundation is notable underlying business. to underpinned are grow Ventas the expertise transaction. ensure with XX-plus is our simply located strategy attractive actions fundamentals, the the

further from and compelling New attractive Living. market relationships Senior Atria excellent market acquisition to our two high and in segment. has catering Senior an relationships quality The opportunity track with operators favorable operating benefits long-standing and Hawthorn new well strong diverse geographically demographics invested fundamentals Retirement such performance, a to expand record also and an to represents as portfolio of footprint represents a with Senior Living Holiday with a exposure

has $X,XXX. has the powerful of values we New basis resilient high high our stages Its approximately early range to of Senior business presence Operationally, pandemic transaction will high-quality assets in seen states, see We senior high progressed average. maintaining industry with price headwinds profile. include our point, consistent accessible remained the strong and as to XXX perspectives. and recently, these a grew has market diverse New locations complementary June. home flow also occupancy and Senior than a of existing New XXX recovery across platform strengthen these upside housing to in points over it cash Ventas' supply purpose-built strengthen the to the with at better during our ability strategic with NIC will proximity housing portfolio Geographically, and RevPOR senior resident living average portfolio margin on exposure types. assisted effectively high-end the building sales premium favorable as redevelop visibility Senior's generation provides trends reflection occupancy XX enhance Senior This weathered points per across from as income layout our XX%-plus focus and retail is age through and assets balance New includes household several COVID-XX in will New ideal lower Senior length existing senior housing outlooks of levels, with Most independent our XX in living markets which efficiently which to of basis the has units and the and invest approximately of nature product time. major assets industry an The versus independent a averages. stay as communities, living adding longer

to Moving new on developments.

than from Groupe quarter X,XXX had have three to the relationship fourth the in past our pre-leasing Both the with occupancy. drive opened over developments our more communities, value XX% development Le three of continue approximately we XXXX. and at pipeline units delivered We were with Two Maurice, year. where of activity substantial through have already stabilized projects

third June project, of in end The Maurice half has a been leasing Montreal, occupied units expansion as in an the XXX-unit of existing Initial the of July. of community with of Groupe this more year. new delivered was than Le activity strong

Our position, realize across redevelopment significant SHOP deployment our pricing capital, we plans strengthening growth leading upside the over our where broader refresh portfolio and of expect few next market and includes to occupancy years.

assets to In success. to with business actively We for operators of housing transition in of our term manage our the the is select summary, and long our senior start. non-strategic position a off to markets continue portfolio strong disposition recovery

portfolio near help from strategy demographic, and I well-positioned term. senior benefit to are with now Pete. that will the rapid wealth we outsized executing are to in [indiscernible] our markets in success over hand We long ensure and aging housing

Pete Bulgarelli

the of segments NOI. XX% Together, represent cover Thanks these segments. and will over healthcare Ventas' office triple-net Justin. I

We continue reliable to produce results. positive and

climate. commitments changing university seeing Health system a and investments. term are to business business longer strategic these leading growth is segments, rising, and confidence Within we

and years center leasing industry leasing our focused business we in is in. an two excellence, remain invest incremental continued a by pandemic, and We led growth of in the on During resources veteran. we She now confidence. to kept creating

competitiveness, that in our team We our Phoenix, our our also in of satisfaction tenant teams in XX buildings months proud an equals expanded a to real the XX running top months Texas. have redevelopments in. He focus, leader. by Happy property tenant capital our leader. I MOBs our now assist MOBs am under national Atlanta technical local as built more including satisfaction this efficiently, the surveyed is in also programs our major veteran. management estate in. to now of new doubled We invested led We and rank higher Austin, survey leadership quartile ensure Because by occupancy. is engineering Kingsley, tenants their of overall property industry say to the He

growth focus results. and is the on fundamentals showing Our

Forest. medical Office describe now. million me which termination was from a large them Office, growth XX.X% Winston-Salem was XX performed quarter. basis quarterly Wake was sequential innovation center, X.X% the and quarterly Medical our The same-store quarterly office innovation XX same-store segments includes basis growth fee research in same-store delivering a XX.X% by growth was growth, same-store points from and Adjusted benefited for office $XX growth year-on-year tenant year-on-year. well, anchored R&I for termination the fee, growth. Let office portfolio X.X%. points and same-store same-store and a sequential sequential year-on-year strong

the for same-store we XXX,XXX year-to-date, and feet XXX,XXX XX Total MOB total improvement quarter, The trailing the feet the increased was result million square year. strong leasing XX% is office quarter points feet of that in XXX,XXX basis retention year-to-date. leasing and square occupancy office feet the X.X For for sequentially. XX-months. office for had prior quarter square and executed a XX% from new Medical square XX%

escalators We annual same-store escalators are the X.X%. X.X% quarter, annual which X.X% portfolio to MOB that from new the caused for for also increase our pleased to leases rent MOB averaged

investment sequential to occupancy same-store same-store termination Year-on-year sciences was quarterly life Adjusted standing for support continued points. XX% growth growth basis of by as year-on-year fee, strives Quarterly into X.X%. increasing business sequential same-store XX sequential the record was quarterly strong Same-store R&I facilities termination Our the was a was growth growth same-store now X.X%. it with occupancy XX.X%. the Adjusted was to level for fee, effective excel research. XX.X%. to provide

Drexel committed. XXX% leased is while in XX% three leased, comprising one square uCity under R&I Square space million XX% are our feet leased Philadelphia, buildings building of over Looking Collectively, two at of or they buildings committed. the or is uCity forward, construction. X.X the we have Complex Of

our currently In remaining Pittsburgh oversubscribed are proposals on University space UPMC numbers project XXX% be above Arizona and reflect quality Phoenix, activity space. committed are of assets. well remaining XX% outstanding. State expect the located University pre-leased. leased building R&I opened new These or forma is the shortly. with to recently pro and the we At of our with for in Pittsburgh, leased XX% XX significant performance our We was

Now let's turn healthcare triple-net. to

During assets quarter, triple-net strength XXX% our reliability rent the second showed healthcare and continued with collections.

quarter cash Health June was X.X% times point Trailing in a flow EBITDARM trailing through was XX-month quarter, the systems cash XX same-store sequential XX year-on-year. coverage X.X Second NOI XX-month growth an strong portfolio. excellent across the was basis first coverage improvement.

LTAC Debbie Ardent in mentioned, results. to business IRF points to the improved basis buoyed first this XX well As market. continues quarter, in coverage X.X dynamic by perform extremely times and strong

points impact declined XXXX. the quarter centers, X.X total XX basis of times first skilled to points the continued as increased sequentially in to X.X Although by post-acute times nursing coverage basis pandemic XX to

Spire Bob. entertained Kindred partners our estate. opportunities. our over for approach offers that, the to I call merge to LifePoint and It of a by to recently is is healthcare operators M&A have the will turn testament the With underlying value and expected of several multiple with an Finally, associated real Ramsay.

Bob Probst

original of strong share for finally, our of my net activities income per normalized with remarks to outperformance will expected was or today, In funds second sheet third our second and quarter stable Starting QX liquidity in the end the of from operations to NOI results, cover XXXX. the be above Ventas and our $X.XX by better share was second office, $X.XX driven and the and of results initial per that our quarter in $X.XX recent guidance strong high Pete. per FFO June results better capital update our continued recorded portfolio. Ardent Normalized share. range Thanks at $X.XX our for expectations consistent quarter. balance quarter our and I triple-net, SHOP the of quarter high from The from with end in $X.XX than than range. growth is performance

capital. to Turning

managing debt our in our busy proactively call. of duration capital since last been liquidity have We structure, earnings and

new million First, $XXX we price following in The ratio New $X.X issued the funding the the share Senior overall Senior of per of refinanced agreement, shareholders gross the program. of million transaction. our fixed under raise assumed the billion Senior Senior of an or New the at to and equity to $XXX be average announcement $X.X billion $XX.XX to New $XXX approximately million for debt raised ATM equity together be with of exchange equity New constitutes

improve its term through profile August million disposition of this received is a XXXX buildings third the in quarter loans of due in of will office X.X% XXXX. of also due $XXX X.XX% near XXXX and and loan Second, notes Notes million the Senior XXXX. in or $XXX Medical notes disposition, sold repayment debt maturity X, fully August $XXX million Notes a quarter of in second resulted Using two proceeds we to-date have from $XX Ventas Holiday's due receipt repaying of further X.XX% received in total Senior $XXX proceeds approximately by July, $XXX in Included redemption outstanding million. repayment due the June structured well proceeds part in receivable. of of million million of X.XX%

we on the and recovery improvement, underlying point NOI are senior XX liquidity we point Senior that seeing supported sequentially Senior is times. basis capital XX improving to of portfolio. credit a totaling billion. forecasted Ventas' strengthening NOI QX in housing issuance As the structure result for our times. seven points highlight actions, went resulting would better announced forma, in basis I net Within in to to metrics. EBITDA ATM growth that and XX than from provides the recovery underlying $X.X EBITDA from Reported the EBITDA in This by XXXX which basis by flows offset senior was has Senior in X.X proof improvement SHOP $XX of QX. impact improvement quarter. points leverage levering of improved transaction the organic just basis XX New point anticipated housing time. beneficial nearly SHOP from ample of This times annualized a was one New projected be the to Ventas' in net ratio material experienced capital seven elimination million QX or is New expected Pro debt over cash lower and activities, the expectations

X, August of paper $XXX the and $X.X had billion outstanding. As revolver company commercial million of cash no undrawn capacity,

with guidance. Let's our future finish

is Third $X.XX share. to to diluted per range fully quarter income from flat net estimated

intended FFO the QX, grants Our assets QX NOI continuation from guidance third $X.XX basis is normalized share. QX loan raise. roughly repayments QX to the $X.XX the range prepayment per follows. by with interest fee in to from June for on assumptions last QX as net be $X.XX income growth of bridged trends to QX, from offset describe of between July $X.XX points, $X.XX of and In XXX the in loan underlying XX $X.XX quarter, our is guidance lost to increase reductions XXX XX for spot of $X.XX. by for Ardent September dispositions the occupancy in there July. FFO SHOP from forecasted benefit equity HHS the Ardent occupancy from can The the midpoint are midpoint

maintenance and the quarter, triple-net and expected and the routine assumed costs in expected Third third Sequential in occupancy, an the and revenue repairs Sales additional in is expected including performance to day are to is and incentives items move-in due SHOP costs. No higher are to by quarter. HHS quarter segments. sequentially received growth the expected quarter. is office in flat be increasing be operating offset roughly seasonal labor narrow be to to Grants utility

reflecting equity half year asset XXXX Fully billion announced raise of million Senior. XXX sales expect is year. diluted repayments the of balance count include of any for We the line markets shares now other full to sight New not in loan does with for remaining and in continue the anticipation $X Guidance share in second this activity. the capital

business Our $X.XX from pending any FFO $X.XX of well-diversified in our The in is experienced is to in trends be QX remains to we underscore our New the to the very the that prepared future and acquisition we guidance normalized That positive. would our difficult accretive remarks. I best-in-class highly excludes recovery Senior. pandemic's that forecast the SHOP closed, believe impact on per is uncertain share still underway. to and win now to are and the transaction operators Senior predict. a Growth XXXX. Ventas in like to expected of we close have business second portfolio, it impact are half is team New concludes about excited once between The in environment. XXXX to

to Before questions back we everyone caller the line. to will I on With operator. respectful that turn we to call to are each two the start limiting with the Q&A, be

Operator

first question the line Jonathan comes Hughes. from Instructions].Your of [Operator

Jonathan Hughes

Good Hi. morning.

it maybe at guess as down your up versus just a RevPOR wasn't some on occupancy digits? Justin, were other X% share year, And probably over length look I portfolios was is not discounting that some affordability positive? attractive here more it others you demand philosophy? can why only ever, details I flat at rate perhaps the now is why little low-single seems RevPOR is seems years as more some seniors when been growth least rate, as housing than and given in year you there is of stay bit about a rebounding if and it's few

Justin Hutchens

to talk you. Hi. to Nice

me with made. year-over-year Let start the comment you of kind

to which at So but mentioned in were prepared RevPOR in and exclude had operate LGM back year as if the you in price which a they active living will well I Canada. that this past some really our discounting. Atria, lower an product in come to point performed I remarks, exclude you and look year-over-year at

a impact mix there's shift So LGM. from

have those RevPOR out, take two were So would increased to if our you X.X%.

So back let's take and to Atria. LGM get aside

starting for few pandemic first broadly. to the volume execute different You go were ways. in on, might remember positioned during early the a Very to testing themselves that had back they Atria,

throughout for the moved of emerging was of ahead the saw volume they part winter. pandemic, they the the an opportunity worst the fall As and into pandemic, which in

basis if points the price move basis look they And versus they if incentives. back XX, from were you low to XXX So start Atria's growth, points. rest December further our have XXX like in of occupancy back at be the instance and go grown SHOP point offered total to you for

they chose volume. to driving recent are leader an discounting in so the occupancy months. bonafide stay And absolute into They with

sector. a tighten. portfolio absolute they in the occupancy starting also We that are the in of of and rest trends have They operators noticed lot higher underlying than a our to have

that it. they intent. record a the to push continue That's believe they this long start in track are occupancy to and early have are started are to So do stabilization. the we their seeing of stages They do recovery. They markets They well-positioned to pricing where both very in will driving it. And of price. we

point mix and have They deliver. at XX% lot and then our way a well. way Senior grow. They the with portfolio. occupancy Living will over RevPOR. of sitting shift One occupied. and that will to And is Sunrise of starts comfortable confident are other in has as a time So the that we outperforming went LGM have that the that I kind we other Sunrise X,XXX they that Sunrise shift other mentioned been driving growth are

think the long RevPOR will So be in our I outlook term. fine

Jonathan Hughes

then side. sharing to desire shift creation really spread shareholders? strength appreciate helpful. That's for wholly-owned, us JV dilution? and given to value still planning earnings the developments And on Or the maybe to lower pipeline. business, is and potential to drop that of the those on help that. utilize partners some those let to R&I It's science there me the the risk now for Yes. Are future keep just tough a But some helpful. of see that out is on Okay. one our benefit you life I just mix the you more color

Debra A. Cafaro

a great That's morning. question. Good

to and answer grow some be there are make go is in some say We balance again, will on on do the pipeline about a to some. would may lot and ventures. carefully And is, Wexford in There joint on, venture. sure opportunities. we joint that depending continue I going are selected projects working risk-reward that strategy the And sheet this would are to around they excited profile. pre-identified coherent is have others the that that But are Wexford the has business are that of a

going have our lot we with both think balance I a initiative joint So forward, sheet will of venture on benefits from strategy. and this business

Jonathan Hughes

Thanks will time. Okay. the for I off. jump

Debra A. Cafaro

Thank you.

Operator

Citi. next line Joseph question the of from Your Nick comes with

Nick Joseph

think of color Obviously, line as about you the for have straight third get least underlying Thanks. Good in occupancy? do near quarter. was about assumptions growth already be basis the the on the term to near SHOP But housing more on you said. Delta term morning. XX had won't variant July from risks hoping you recovery how senior I points at recognize the at and and impact the occupancy

Pete Bulgarelli

Nick. start that, on Sure. will I

XXX outlook the is occupancy in to So of this, the spot terms XXX gains. numbers,

to in month. are XX You right say the first

is if the the about So And the right I to clearly is doubt midpoint. no backdrop a at say you leads month-to-month not the time that is times into That never it's three. In one in July And what that, said, of worth take at occupancy. month strength line. about something thinking above it mean it's we are as it, look in future. light noting as about, pandemic you think move-ins you the are straight translates in well.

the But it. of is So right we months consecutive positive leads. still strong way of caution a trend seeing very backdrop think five about and to with now are occupancy

Nick Joseph

term. senior Thanks. medium supply you of Then about talked being positive outlook for housing the near kind on the

recovery terms up to the expect you of that's in starts? when supply underway, start picking that new would Given

Justin Hutchens

Yes.

that bit catch-up and deliveries experiencing So that year the but a in from are it's strong think the term. so can few in of is years fundamentals. we of terms little there the Certainly, we bump absorption a out. Justin. It's window last short very in follow and have road capital will a starts There sector. to are is low in runway We of supply a really the look

the chase when that they they demographic We be see But aging the development faced. sector with this do, expect to strongest will sector. faced has ever

confident bullish senior on housing. certainly are for demand the we and So

Nick Joseph

Thank you.

Operator

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

Joshua Dennerlein

everyone Yes. loan Hi since is on Ardent, Curious doing repayment. you the everyone. Hope well. got

the curious, maybe It you of into further like. have feel interest there. if Just just to curious expand kind kind any of yes, sector? hospital just

Debra A. Cafaro

would additional population really Thanks investment that good growing in health the in one and if characteristics there. commit having performance adjusted in of payers about pricing many ahead. No, we markets, local and I the additional been morning. around question. capital experienced that growth say we those obviously power market, ways. commercial Ardent, on so I different being position leaders, for with providers. like types find those characteristics Great days return, of we assets strong certainly were has space And care good and and great would are system risk to able characteristics, better Ardent have think the Well, the even that great a

this commit continue to space as if even be I there. we to find opportunities close additional Ardent, can as to capital in would we So explore good we anything happy and think

Joshua Dennerlein

that maybe that that Okay. then or kind takes on guidance, were of $X you the Ardent disposition And billion, And originally of the do? include did sales repayment? the is the to some additional other place going

Bob Probst

loan was Yes. originally. $XXX Josh, in $X the the that in our billion million guidance that repayment, was that initial

both senior the So housing surprises And first guidance. continues estate property balance the no being that in real assumption, to be and our dispositions there. MOBs. was But

Joshua Dennerlein

Okay.

could that? their is one was Colony included? back that's Or think repay I Colony real loan, quick If follow-up. Just to, not

Debra A. Cafaro

Correct. That is correct.

Bob Probst

not is That in $X assumed. not is Correct. billion. That

Joshua Dennerlein

it. Got Okay.

Debra A. Cafaro

Thank You it. got you.

Operator

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

Michael Carroll

be on to RevPOR August point be are how rates I I versus about Thanks. can will able have the mid not, guess be what February, if And And you stay I hit aggressive then, wanted beginning of this real talk back they Are quick. to occupancy year? Yes. pushing to XX% mean setting aggressive? into does range? more they the more rates, in today? to outlook operators able at

Justin Hutchens

Justin. Yes. Hi, it's

to in throughout the think use first will second as could and Operators underlying even particularly incentives rents. we short tend persist see foremost. And quarter, So those asking term tightening, we as continues, reach pricing power occupancy. rents tighten. expect demand strong markets would and Clearly, particularly return If communities I that living. asking the is independent assisted and really for pre-pandemic to

we pricing. drive potential ahead to there of plenty think is So

phase Of Debbie of not straight course, mentioned as may face it be this recovery. we that as line a the next

Debra A. Cafaro

benefit And different we their see forward. operators strategies. strategies on that will we work clearly And with and support should pursue the different from going them and

Michael Carroll

back we of point, we not occupancy XX%-plus. your I mid like expect portfolio or into get XXXX mean, digits had in when mean aggressive SHOP single XXXX RevPOR or to see RevPOR back to mean push operator the occurs? I the maybe were something able rate? at could expect how could then is that And Okay. I that if

Justin Hutchens

Yes.

then. that moving ahead moving supply it different persisted supply and and pricing the the given pricing time demographic So That backdrop of have some outlook backdrop facing. supports we would growth was really market forward and certainly during that facing power. new occupancy it's with was power are still beginning been new the the than completely It there

Debra A. Cafaro

mid growing Michael mean, very that reminding doing thank in considerably. and to low of RevPOR the occupancies I the for were Yes. and was you good XXs times you where me are

demographic a growth, And we so be and period cetera. that as growth is levels, very et positive over constructive RevPOR Justin baked going said, growth, low occupancy this at backdrop multiyear very window is a baked for the with the and that's to supply to getting have back where outcomes,

Michael Carroll

Okay. Great. Thank you.

Operator

of line the Your question next from comes --

Debra A. Cafaro

sure. That's ahead, why for went we

Operator

line from Your next Valiquette question comes of Barclays. Steven the with

Steven Valiquette

Thanks. Great. morning Hi. Good everybody.

Debra A. Cafaro

morning. Good

Steven Valiquette

on updated the you thinking living and around curious about property So transaction the am of of light talk in seen some property it type? hear about just have memory strategy market, some thoughts AL how on by IL, think housing just just subtype care. just operators on in the in mainly recovery? I Are transaction, on you and have care your of senior thoughts memory occupancy a am to independent you areas New I biggest about pace Thanks. versus any the those we with the Senior curious versus large gains operators by focused three

Debra A. Cafaro

like enterprise the portfolio. really and are also with to answer diversification XX%, example. in senior Canada products we do mean Great. I intensive Thank like housing IL pro it's a our I within model, we the New the will labor in over forma, our going like we which And for including less you. think be it and But Justin we Senior that.

So build the Justin we imprint about Justin's framework kind ask as we I are with upon it. will describe strategy thinking and this really portfolio to of that

Justin Hutchens

Thanks.

our the operator we prepared that asset and to first mentioned this we foremost, the that I So lot, the wanted managing just remarks a in and right right I asset. are in make with and as right markets sure, say to like

memory So living and need-driven. might independent more living, sites product are care assisted have really be assisted that characteristics. the or living all The good care, memory

higher price You points. do They have run at also cost. tighter

to the And the It pandemic products, the with far. product can did after the vary. that tend after quickly. on associated so so well does depending But recover crisis, your RevPOR a really margins it's financial doing

there are long it. as It's product. it's twice your have facing for right the Independent In extreme affordability less So longer as choice living competition within has AL. the exposure New has product. a resident making that AL you length is Senior of, if Senior, of for great to to in about new to versus independent of New a market are right a with local relative stay. good the terms you operator living an markets at least as also a case in It

outpacing Pre-pandemic have it XXX also it subscribing it investments that coming care moving memory points. ceiling. basis it We higher any ceiling and higher see other by does So and about One It a competition, has strong less living broader the other pricing also it faces through wave reaches independent AL earlier. a new why have doesn't was about same upside faces are the that audience. because demographic side thing don't out reason forward.

Steven Valiquette

That's helpful. Great. Okay.

bullet real generating to revenue Just one investments Ventas additional have expecting make and opportunities. quick transaction. capital for you other New above on value point a Senior follow-up

as that hear Just part that about curious and more critical transaction? overall is the of how to

Justin Hutchens

Yes.

This Justin is large are has that type again. units. units, XXX is great that product characteristics. I a this There mentioned So

dining. If walk you because been Big of kind have floor all been them the exactly have same. you to to plan you of stories. a There's Open are open community, when they holiday three in.

retail. located are traffic locations aging lends to They wealth have or close And strong several demographics. situated markets be so to are in or high to redevelopment premium well happy itself we great that locations and or refresh incoming And it investment.

to the to pushing make And occupancy additional investments. we push goal, of targeted growth are lot out but a is we think support basis, a cases, So open pricing. the make on also the investment, door

and are over in next evaluating of into that will the those we we few opportunities plans our So integrate the of process years. couple

Steven Valiquette

Got it.

Okay. Thanks.

Debra A. Cafaro

you. Thank

Operator

line BMO with next from question Your the Sanabria Juan comes Capital.

Juan Sanabria

hoping talk. to morning. Good was Hi. I just

Debra A. Cafaro

morning. Good

Juan Sanabria

little Good just strategy. morning. hoping about big I to picture talk was a bit

Just meaningfully the are gauge years. years in the over long different window couple be next seniors nice much housing it And to types nice in you kind so seniors window to and you the grow truly how of products? appetite the have how versus stated point for just this in trying asset cycle, few at exposure opportunity the given have thinking about curious term set housing that the desire this of to diversified across next given you

Debra A. Cafaro

have Well, of money mouth the put where invested well is well Yes. Senior New in and investment billion of definitely we located our $X.X senior terms living.

will coming but increase portfolio housing also the New We not in to only That are our excited embedded upside that. from senior will NOI Senior. about percentage the Ventas area us living capture senior in and enable

environments. and environment benefit the area office life are have demographic is to want never business. diversification to you will proven And proposition over know continue really we great believe, and senior is last the So the to to good that living and in hospital we market in external differently of that's they best their we you that have that belief we the in different our the the and because upside invest and there a is that of at kind that, perform science in year, by invest areas performed gotten exceedingly in of asset the know, classes well our other a throw so the shareholders. year value will the really value of that deliver we business profile have area, the are unified we for risk where that us model area, last over medical benefit adjusted We do really as And so to demand much the you. think these going different what diversified of return continue to remain deliver

Juan Sanabria

you. helpful. Great. Super Thank

Debra A. Cafaro

you. Thank

Juan Sanabria

I And just seniors for on guess then Justin. housing,

visitation the as on points the landscape? on NOI revenue the data flow-through could variant, to operators' any on thoughts policies Canada, on latest curious just fluid very in uncertainty of incremental the if line. a the Delta I or of thoughts latest result a be if is any And sneaky there Just on implications

Justin Hutchens

Sure.

start will year will our kind of and ago of I operating on So with occupancy supplemental from that's to on margin, One even or a it only thing a basis just you a this, right much the the points interesting, can margin. occupancy. you catch much as lower maybe kind refer the now, in is higher of see like margin XXX XXX off flow-through a

upside some very, in margin more some occupancy, close think we margin fast portfolio time. the there hanging be occupancy if We be are very plus basis XXX, to to back so and should is kind And points seeing were pricing of forward should the think there. XXX potentially pre-pandemic within that you power there we plus get at than you pre-pandemic of

margin were then grow Delta. pre-pandemic. to occupancy question wave the kind back So points to well. occupancy, we we is part of feel in that And XXX going performing as period see operators the to where increase your they good but about during fill of has it's second next as basis to of we of And this have and where one the I the of this and flow-through really best to they view are get be, in terms expect another flow-through Atria go of mentioned our

Debra A. Cafaro

is But Right. is in you mean, as I usual. understand, I and my business right of dynamic. mentioned now clearly and environment the it's there kind fluidity remarks very as

visitation communities open the because vaccinated to and sitting continues that all be highly quarter. we good today about we And new have But comfort we the want that are frankly is move-ins that now feel for right that And in about. thought so here and are the communities happiness third we prudent really and process so that protected. the our and the hope

Juan Sanabria

everybody. luck crossed. Fingers Good

Debra A. Cafaro

you. Thank Exactly.

Operator

comes of with Lukas question the Hartwich Green next from Street. line Your

Lukas Hartwich

provide compares pre-COVID senior ventures? housing level any Good morning. sense in-process the to color disposition? there levels? how Just a you on of Thanks. of Can pricing And is maybe

Debra A. Cafaro

making Well, we are good progress.

favorable, expectations. are class. is with line have sight the of And the significant in to, which the in senior pricing very We office will a to said, think and composed of housing. investments medical interest outlook And asset for housing as is because our of balance the there Bob be we senior line

Lukas Hartwich

sense are Great. those purchase in looked of exercised And you Can it portfolio? during quarter, then the tenant of provide the how types options a a a option. like pervasive

Debra A. Cafaro

historical They frankly, one, are got absolutely that is a minimis we going NHP de back because is from to that this PMB.

So one. a is long-standing can't which deal. was did on this sale million, We the $XXX significant remember, million gain very million $XX $XX I on a or recognize

that So limited was But purchase good. very options have tenants. for very, we

Lukas Hartwich

Great. Thank you.

Debra A. Cafaro

Thanks Lukas.

Operator

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

Jordan Sadler

investment. quick that still morning. expect Good Q, to the repaid? Thanks. fact update the excluded be in it guide don't surrounding follow-up expectations? that from I Or the a just Any you Colony it you on there your the wondered, sales loan

Debra A. Cafaro

latter. the think I

loan guess real the assume it's loan would and likely moved continues that to portfolio disposition capital from have perform well. the the And real call know that encumbered guess, portfolio intended that you portfolio that they As Colony the of a and existing stack. buyer is is by for be only the my estate estate our to of would

Jordan Sadler

Okay.

portfolio? hold looks it somebody, it's to mean by the there portfolio the it if might repay parcel or to Although I Because who possibility that is off portfolio, entire right? mean doesn't or guess supported they that loan, I entire a own the goes have to to

Debra A. Cafaro

well a proves get Yes. the when know will. though good loans But it it's is supported you pool have we our investment, It always the the the to we feel if merits And capital. even definitely. And you very of recycle by structured loan. portfolio, repaid

So we are open-minded.

favorable Ventas. way either be think I for could

Jordan Sadler

you closing as and a as Spire the might your follow-up the in approached one mentioned deal, Kindred of Okay. partners actions portfolio of comments anticipated to pursued, portfolio. then of his comments transactions? to a result relative And he his being Pete Any within just guys those some the see

Debra A. Cafaro

be we look those mean exploring whenever is forward can I opportunity. things. Yes. there to kinds there And of activity

I for We continue. have really a will that done Kindred we of constructive and and good would together that relationship had XX years lots things with hope have

Jordan Sadler

Thank Okay. you.

Debra A. Cafaro

Thank you.

Operator

question with comes Your Daniel from One. of Capital next the line Bernstein

Daniel Bernstein

on Congrats SHOP. a morning. Good with Hi. quarter good

scale of It's want just I the the question Sunrise a of broad kind maybe real and on in just seniors housing participate wanted I too maybe terms like operators perspective not try to Atria that? the versus operators of a housing, on obviously how Brookdale, just forward? maybe well kind get here Holiday. there So been seniors And can to that? going And from scale in of out that's worked larger But get importance in merger has your regional of as mean to Historically, perspective success REIT changing. some performance. Ventas has on your

Debra A. Cafaro

that's has time. great from question. a someone Well, a long It's who clearly industry been around the for

capabilities platform a that largest the said, AL combination the IL the become As like a and of as on do coming talent, the advanced to has Atria, together very we owner second of operator. the we Atria third

yield really talent would benefits, and capabilities can coming say, together. the that with I all analytics So and technology the some data,

So I also scale, about the it benefits smaller than would say. more it's can that about There is be from operators.

Justin benefits to are that were, a know, some well. provide think some, those And you and operators strong you new with are as going original as mentioned, local can if we there have guys, will. I relationship those the Hawthorne Holiday

So and forward out as we relationships having to them those appropriate. look building

Daniel Bernstein

in back occupancy other could have go be of that get kind of lack near gains nursing just there from to at I may REITs to more maybe some occupancy could guess heard wanted of is the your whether thoughts limits down occur slow any other challenging. and labor. Okay. And skilled then labor? the to momentum shortage I I wanted operators seems you labor that term of mean a terms of because But question,

Debra A. Cafaro

the would second we problem. And Ventas managing the think that market up New that a such a Well, about again economy of quarter, keeping demographics, of side, other to comfortable would supply strong that our robust and chain have and call building is power Right. demand way I it's I well kind with recovering that trouble country is both really, in we it. is call, when because feel high-class mean having very with housing pricing mother are what Ventas our you I through in and And senior environment capturing embedded that that now occupancy both Senior. really an and the of that upside back, a a speedy all kind step as and is really demand, labor we, that as recovering the and as my

of rather would this in it the and think have we because demand right us. through others is successfully of we So can front many environment manage really I that than

Daniel Bernstein

Okay. helpful Thanks. That's perspective. a

Debra A. Cafaro

Right. I the been question, to-date constraint are communities capacity hasn't our occupancy. our mean able And residents. accept specific to to any on take There to ability

Daniel Bernstein

you. right. All Thank

Debra A. Cafaro

you. Thank

Operator

of Amanda Sweitzer. next the from question Your comes line

Amanda Sweitzer

morning. Good Thanks.

on And touched prepared your additional today could conversion pre-COVID higher remarks. just trending to realize recover are continuing relative you where to Can conversion expand higher those on those? levels? lead much how you you upside through sources think in sources You

Justin Hutchens

Sure. Yes.

happening. expanding and that things the two coming other One leads the So digital kind back. footprint is there's traditional really then is the is of

Internet-based pre-pandemic are agencies levels. referral XXX%, way over and XXX%, leads So of XXX%

played That's to pandemic a source operators the so that referrals in role it where have maybe changer, really. that of lining forced a came leads. a And into driving it's huge game they from and silver invest

And so we leads have seen tick most up.

at convert those rate but lower merrier. more Now the the do a though,

three So sources. XXX% we and for quarter There of that, personal addition in referrals is levels. to Personal other us, are at lead referrals in there's second referrals. pre-pandemic the respite, professional

under still down respite that. XX%. Professional XX%to just have those roaring around And come So back.

quite we respite to there to is still recover of been go a levels have ways because with So the think yet professional and which the is strong. encouraging lead

Amanda Sweitzer

SHOP how and expense did expenses terms expenses the expectation to are quarter, increased for Well, guidance? the on that's you revenue sequential are growth. great your And expense of largely your in that growth in third potential helpful. up July? meaningful guidance, offset following see And in that particularly COVID-related including What increased growth just then the you will

Bob Probst

have I a the third that Yes. one with for will go quarter.

versus I quarter. is it quarter the So seasonal buckets growth when is second a one. and pretty you There's sequentially within increase has The think, another. That think Utilities expense offset is expense third you an is Repairs you are say right cost next I which a simply day growth. But worth every number quarter. third highlighting. in third is, revenue meaningful quarter. One different extra impact. of much line, see call typical to the the by easy the that meaningful maintenance

levels a incremental growth cost in And of function third associated increasing the kind And which thing. really a have is overlaying all communities. obviously of bucket activity you is, The with is occupancy back then that there of good of altogether light different labor expense buckets that third the quarter that a of up question term short to pressure wage add effectively in thinking. to the is number. in But this market, is of which series embedded that and

Amanda Sweitzer

That's the helpful. Appreciate time.

Debra A. Cafaro

you. Thank

Operator

with comes line question next Your Nick Scotiabank. from Yulico of the

Nick Yulico

I instead work was of how, guess you. same-store quarter trying is and not for guess, up you occupancy side. wanted points well your on the in as expense on growth I that, Maybe in expense follow portfolio, bit occupancy be an question. labor XXX going this some up you terms how get increased to now, your deflexing if feel third same-store sequentially? against as that the going the is I going you Meaning much a points, how going to offset have Just that to Thank in worked us to just of just the basis is basis downside you XXX think up as forward would about occupancy as then that's NOI going from could give of growth? of, a expense if on

Bob Probst

a to is. not right a level. you perfect say to you always some occupancy you that that I going one-for-one Nick, more This are as it's a type It's have function. what linear level as Yes. of is step-change add a whereby head. to It relationship grows add beta creates think occupancy

in I think, you we qualitatively, we are would tell that.

the reach We advantage, scale the right having occupancy. labor, are trajectory But where upward level now. as of are a then some that. if is out you like, give now that a which number occupancy in we right you you say, on there until side other labor I growing we consequence off certainly can't as hold you level that as flexing can next then should are come you a get of to growing

Nick Yulico

-- Okay. I just that. Yes. following I up And appreciate guess,

Debra A. Cafaro

transitory. of to should discussed Yes. related I some is the that shifting of be in it mean, and I this economy really mismatch that in terms gears

Nick Yulico

outlook. then up following saying earlier, Justin, that. on about And I were margin you. the know you just Thank Okay.

were? below at ago margin if feel going you the XXX, chance within You a that where are Because the think pre-COVID be almost XXX and get XXX going look you guess third good basis to still said SHOP does And way the are versus I on next was that quarter to XXX, right year year, thought in occupancy about I to a are you this building meantime, it basis the XX%. quarter the in points XX% be your way, guidance, there's as of about the margin to back, about third back. think over points the margins you I is the like

of that it's So piece being also, that bit of is, maybe RevPOR year-over-year. a expenses, it's fits kind the still down guess, down I being COVID which

Justin Hutchens

I kind stretch Yes. of would, little a out further. would timing I your

term kind well. mentioned, effect of as a and have as is transitory revenue a be expense going that mentioned we there of increase bit you periods will out have to Bob catch As the Debbie little up. near

the higher that the on But So of away We if don't when occupancy and more really a we margins the for get occupancy basis. should was to reach we pricing thinking I within and terms kind upside in over from time. margins ball push crystal power they of stabilize. stabilized you timetable have of even there the then there pre-pandemic and be were out where

term of to mean that's like year the a to only near kind picture, And except off XXX, I of basis I kind margins was points So were ago. saying. it XXX of QX pin didn't our say as that really all in

Nick Yulico

everyone. you Okay. Thank

Debra A. Cafaro

Thank you.

Operator

Your next the from Vikram Stanley. line question of comes with Morgan

Vikram Malhotra

much the morning. for Good taking question. so much. so Thanks Thanks

months. Justin, back XX So the also I near sort increase maybe term guess, of going to next the over occupancy to but XX

the look very move-outs your I of certainly they second last and guess trending or are look and recently, quarter if first, leads lead higher the are volumes months and numbers. the So the at XXX% lower than your I slide at XXXX over are few

months? point why occupancy wouldn't uptick it. second Why So to in than your just you what low the call similar seen because view, be would of the your be your the saw, leads in last, midpoint the what in four have are higher just the you guidance quarter?

Debra A. Cafaro

Well, Yes. is this Debbie.

well, know in beginning since again July, first it me, it are is and the And have that higher pandemic. are all, important That in happy portends a meaningful leads occupancy. certainly You means there's statistic. demand they really to and we the July highest of been portends of very

we say. talked a good, we there In growth as you about in is spot-to-spot So you And uncertainty lot basis as had that about, points. know of of is July, really XX the environment. have

guidance the near that's to just that So the our of that's XXX if rolled forward, And how XXX. you constructed. midpoint is

Vikram Malhotra

Got it.

operators like but for, the guide. you smaller puts different would think, mid August, guess your do takes? Nick, of pretty are to your But occupancy those just bullish? I number time. easily one think the a back A, it puts should optimistic? occupancy terms do your too September. that's you do of into could maybe get view to even you like versus I that in the feels of to that's maybe is whatever I have next do too of what don't perspective, on setup I of No, operators I get high surveyed recognize of end that, wanted more lot rent, think sort smaller they are to it's Okay. by the the mean And you your tied just broad year. ask right, et your conversion than where like, the translate takes? lead think just you from you occupancy are in strategy pre-COVID and What's to Or that terms cetera, view and July

Debra A. Cafaro

get recovery and the and Yes, the how slope pace occupancy broadly to levels. determine U.S. in quickly we the environment clinical really that I of mean going back pre-pandemic to the is

path. good a on are We

so front it's the encouraged as think are sustainable. in that been as It us. very by that's I well demographic far. of has right we And very growth

continue this, environment. And back predicting we what, visibility sight pre-pandemic get dynamic had going of I it about, depend the Atria quarter, of to that. thereafter have to be points that upon mentioned conscious and it's we I basis want think were really And to to Justin line XXX levels. to be think again, occupancy third pretty to we to a continues

and you hope that are we the about So things I are you of encouraged right said, many Vikram.

Vikram Malhotra

Debbie, ahead. -- sorry, go if I just can

Justin Hutchens

say just things was I to that. to of trying support kind

just communities move-in that achieving the So only XX% are our levels. at are as or Over sit, occupancy. currently pre-pandemic about of XX% around we right, we have just pre-pandemic

we for a is there recovery. far so ways have have this go early support we still we way really and But to long So a activity. good it. with to really are great go And But yet. pleased

Vikram Malhotra

bigger There lot if struck am X similarity. are question. several ago maybe were. now can were I squeeze how Debbie, one Big different just I more Great. by the now picture from they REITs Healthcare years Okay.

am this of and wondering from a if life to MOBs seems good. have private side. housing, I guess on a senior rates maybe just a laid and strategic senior research you science, momentum become and strong is think two have more wrong, pure-play, sell, housing? set years out be maybe to know on not maybe I life lot really in that I am segment low, exit time or momentum fair You a of correct this the focused a call. Obviously and ago, value on Why there of the even to three of $XXX out perspective, MOB are $XXX segments, there's demand science pretty lot of me maybe I just Cap differentiation you the million as it was million, good a amount assets. I segment.

Debra A. Cafaro

MOB do Again portfolio you that lot you. Thank question. the of our point out. value as Love created a with we have we believe

Pete that's and have strategy Lillibridge We management runs a really differentiated with well. going platform our that

have MOBs housing. capital and recycling that XXXX of part We of that the is is billion senior $X mentioned,

diversifying a on being has that right you And have low do of differentiated strategy think cash our our stability provides the flows we benefited and stream. but affiliated. rate, there, it from cash MOBs campus cap at I good I overall So and that to are with also really you on flow the right are the of think aspect very it

And so like we that.

will we there. So and here trim

recycle capital. We will

We we will we advantage we a the really But some our business benefit take is to MOB as of created. believe the value that that owning shareholders. of have do

Vikram Malhotra

up on offline, will I that and follow have Okay. but so thanks a weekend. great much

Debra A. Cafaro

you. Thank

Operator

next Your with Rich SMBC. the of question comes from line Anderson

Rich Anderson

found sorry ago it going. reason. for out about am logged to in I I you hours Well, didn't two take some and keep

one question So me. from

Debra A. Cafaro

It you. might be

Rich Anderson

or fingers Fat something, Yes. don't know. I

Debra A. Cafaro

are You welcome.

Rich Anderson

would of has I But the sounds time, Atria past, concentration on. whittle concentration it. through and an you following other the concentration question gets you With time regret with or own how depending ask how to and one have of risk. XX% operator. will The much to merger on interest new that outside I down The slice of the is, is quickly, how time come is Holiday you risks Holiday, their idea in curious recognize like in it? to that a following have at issue investments as I over and I am moved of Atria great good that people

radar get of screen down sort So teens couple of or mid I to to like that's that am curious something in the years? on if the your over next something high that's Thanks. something back

Debra A. Cafaro

Yes. the my there certainly dear operator, assets has you as been always the Rich, leading thank near with best something really you for been this And is mentioned, that right been and your has always asking and markets heart. to that operator. the Holiday because has right that. that Atria putting between tension, a operators. is And

put between there concentration wisely. eggs and manage your that sure a all don't you your in So basket and one making you is tension

the benefits that Senior so through a And the lot as and do said, growth Atria gives Atria's an combination And think Holiday contracts and growth I us flexibility contracts the move that. direction management we the provides think New strategic Holiday of of like and We having manager that ability diversification owner the we like contracts both of to in to in are us the management in of point. the Atria. structured do platform. have our we own That been way the right on the

Rich Anderson

much. very Thanks Great. Okay.

Debra A. Cafaro

need all tools have So way. we the the to we in right it manage

Rich Anderson

the is of want this like your much What's that threshold Ventas? Is a my own it is long XX% kind for I of to Is pie? term, or the of piece have or XX%?

Debra A. Cafaro

right time you I specific mean, that seems about know kind and But with way the of it to situations. will over directionally change it. think

Rich Anderson

you. Great. Thank Okay.

Debra A. Cafaro

you. Thank

Operator

at no questions And audio there time. are other this

Debra A. Cafaro

us sticking appreciate it. for in all you interest your really and We with thank for Ventas. Well,

seeing health a and with so again. Thank and in of you we you look results all are soon. forward and delighted great person safety We quarter to

Operator

you This conference participating. call. concludes Thank for today's

disconnect. now may You

Ventas (VTR) 8 Aug 212021 Q2 Earnings call transcript