VTR - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ventas 2022 Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded. I will now hand today's call over to BJ Grant, SVP of Investor Relations. ahead. go Please

BJ Grant

the welcome conference. and release, Ventas quarter available second and ir.ventasreit.com. Good we to issued result on are materials Yesterday, presentation. earnings website our financial at investor morning, These the Ventas second supplemental quarter

today remarks other include forward-looking As matters. made statements a may reminder, and

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

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

to of reconciliation Investor measures For of Chairman our to website. closely our to posted these comparable Cafaro, A. on over with and the Relations call most CEO. turn the that, please Debra I'll section a the supplemental And refer GAAP measures,

Debra Cafaro

advantaged our our other BJ, deep second markets. diversified portfolio labor We colleagues, business tenure. and in in has want results, to many newest to morning macro quarter insights our environment team's of made high-quality you to highlight joined to I'm and value the the is industry all Thanks, and BJ because deliver dynamic economy Grant, and short business believe an life shareholders innovation addition, Ventas good trends in research our science, position already momentum and in experience. contributions and of the Today, my second Ventas in address this the by that a call. I'll quarter participants. our recap strong be to welcome delighted earnings I including to Ventas who and our

XX% expectations end showcase excited operating Ventas and SHOP Let's our science, our our quarter very at of business, by XX at growth. in property at which research delivered With spans portfolio. This guidance medicine higher the and with I'm record X% now nation's to $X.XX million reputation deliveries, and income start for innovation life or same-store the second Property enjoys has above our range. research, investment strategic net momentum of growing large Ventas feet led portfolio was leasing intersection track and year-over-year normalized FFO and leading activity. performance with and universities. of our accounts Wexford, positive partner, differentiated the of square results. a significant

with market investment-grade credit of how AA since Importantly, weighted XX% our invest when business cap XX% from began billion then. accomplished to a of grown we've of high tenancy since in or this I'm universities rating $X companies. really rent we from and XXXX balance the average is with we've proud credit from it and what

its leased on by Here million-plus delivered in project we XXX% in District Building are some and developed uCity of strong deliveries, our graduate yield. School Professions, Nursing the and and for when this X% a School R&I ready programs partner, Health fall. Science cash The welcome is XX% Wexford. of of Innovation with University R&I ahead Science located expected Building opens and recently the schedule. to project strategic Philadelphia to biomedicine, of GAAP budget Health Starting school Health its is examples momentum. Drexel was provide Medicine our Drexel Drexel's This $XXX thriving

in in District already research This our building presence square continues the We Innovation XX% XXX,XXX uCity Philadelphia, deliver adjacent University to Pennsylvania, to and uCity expand foot lab by also to leased. multi-tenant year-end. it intend Square of One is and

million. and both is cost a deliver our with cash science to $XXX exceed XX% to the pace stabilized over pro substantially of rental now building tenants on project and and institutional lease-up leasing the forma, expect yield highly-regarded early XXXX. We are X% in research life The of rates ahead nearly expected

momentum leasing of terrific our life see across R&I also science other portions portfolio. We

caters research nation, the demand expanding creating and portfolio institutions these for top incremental X% are their to aggressively in Our functions, universities research lab of the space.

additional We are universities currently in discussions of significant lab amounts about space. handful a with of taking

In demand centers. commercial from and is are high to university are who attracted leasing space we addition, quickly, innovation tenants

For Phase XX,XXX the tenants or already II at open with rates. In feet recently to shortly, new expired global example, square at premier a Pitts for signed lease Miami, XX% scheduled we've a we company. of to mid-XXXX that leased building higher technology committed

that deliver that opportunities we developments and future we Today, momentum will great create growth. exciting new in have Finally, R&I announced investment two are value examples.

progress, of these research, at in all billion R&I universities. of medicine leverage two currently competitive total projects, $X.X with significant and have our development advantage Wexford With we intersection the

Sponsored XX% The partner. University exclusive for The School the of IRCAD, as health project which Medicine. XX% Carolina. first in headquarters new North Wake will XX the a house located also will will surgeons. lab, academic and Health, surgical is the medical by is robotics Charlotte, project rated Training in North and top AaX Pearl Pearl our uses, techniques Health, of leasing and world-class Forest for the fast-growing system, be research, Pearl Atrium French including is project the serve Institute the American advanced Atrium

We Pearl of XXXX. the expect delivery in

more space as billion university. medicine forward of our its Washington We I project projects, more an you Moody's, this see thoughtfully, partners. Coast, excellent exciting project these a and conditions will market through U.S., research to Behind new that look six momentum rated and life is align Aaa a #X a additional university funding science expand R&I science the great new our life the by X any clean square markets. research successfully the progresses. by anchored of world-class details development example develop a market expand selected It for hope life life research the and programming Seattle other to to grow R&I foot contains attractive in is of university the with this ability our West top sharing it in and energy, public picture opportunities. than pipeline U.S. development the that UDub, with footprint our federal in science. of science receives the R&I enter Ventas potential On and you business. a to have of Wexford gives we different project $X by is been XXX,XXX-plus University

growth acquire and at stable additional capital capital fully-leased stated activities, shown allocation year-to-date, balanced of and our our housing medical yield approach. senior Regarding MOB. space in an office $X.X with billion and approach building, priorities announced the this with fund to from a we've investment We've activity also our attractive utilizing future potential consistent investments

are from reinforced quarter's outstanding year-over-year third our in earnings at remain We benefit in forward is QX today's look XXXX, midpoint, again our growth we by SHOP elevated, will that jobs As increase the quarter projecting year-over-year to segment, NOI do higher to which second expenses X% in growth rate. XX% SHOP expect and the than NOI report. we of wages expected

We well will succeed. pandemic, our to of interest expect to that of expenses for consequence reimburse also a keep higher recognize backdrop impact which us the supportive we we although of $XX incurred the The are business, safe a demographic in of we rates and we Fed HHS we $X.XX tightening. to a the benefit positioned be received believe million by grants portion residents the will benefit as is muted during of from the workers third quarter, and

are the growth population. conditions with First, supply the XX-plus favorable demand acceleration of and in

housing in supply-demand housing senior the stakeholders. affordable our commitment, independent Thanks we With value in product we housing significant it use team's turn Our under continue well to up business I'll for favorable market continued particularly starts net high-quality portfolio this power the pricing to senior power. and serve experience and will highs senior senior highly resources. your our and living, inventory time, for With Justin. over set for is backdrop need-based, to housing, insights cyclical diversified construction our create senior and absorption has and and and below of is

Justin Hutchens

Debbie. I'll drivers. from is very which demand by you, how our this sector, is within housing strong Thank highlighting benefiting senior portfolio well positioned start

Canadian communities by and owner operators. distinct XX housing the We provinces are largest managed with UK the second world in XX senior states, of located seven in market-leading

the As in senior Debbie mentioned, housing fundamentals are compelling. supply-demand

the the We represent growth an record. XX-plus XXXX on population and have past years, in two in XX-plus acceleration increase will population the highest experienced over

worth senior need pay population The also We respective where target net savings markets customer setting. average our significant our for the Xx the cost our home affordability is in utilized outsized has services equity have to if arises. in stay are and a of that our

since Senior National is the low we this On this housing the of been side, Housing, units not an as to of according down as to markets senior we the of has the well-positioned construction XXXX of XX% quarter starts peak. not XXXX, to XXXX for our second second in X,XXX and strongest from been our on not deliveries a quarter inventory seen. of the first are quarter of portfolio. has low Ventas point from Center X.X% Investment demographic, exposed aging And aside senior of since percentage which units considerable facts is upside XX% These new supply XXXX. the face have housing

early benefits position. We of our are the evidence seeing of market strong

and grow. And move-ins portfolio the have solid XX.X% activity had as has year-to-date and months, quarter SHOP for instance, through we net positive our net first past grew in of continues NOI XX year-over-year For July, move-in in second. same-store XX to been the the X.X%

SHOP results year-over-year our quarter second the to and same-store pool. Turning

XX.X% last U.S. rate June. that is and another quarter rent XX% year-over-year driven that was spreads XXXX our quarter strongest by year-over-year solid with in was move-ins have XXX start. seen while impressive. X% the with above which in year-over-year average since the improved XX.X%, has flat to key season are which off NOI X% is to line in negative in-house The Same-store our Canada, point At by selling basis low continued XX May of report approximately first pre-pandemic We delivering re-leasing been nearly growth. X% consistent of September running are primarily the perform increases we've a strong to in and points RevPOR power to and levels. at the Pricing Leads, pleased to in the occupancy to expectations from sequential growth, years, increases, guidance. in grew care

revenue in move-ins period increase average XX% grew same-store occupancy points We than July basis over higher to versus and results by in XX positive rate These same have netted the the is XXXX. June. over XXX drove year. prior July, which XXX occupancy through

expenses. to Turning

staff expenses inflationary navigated other we a wage were X.X% XX.X% occupancy and elevated pressure recruiting, successfully and have and the Same-store day expenses. in day. operating identified number result Labor encouraged stabilization impacts include that expenses labor last per managers macro process is driven and tracking labor on higher of hiring of initiatives by line advancement implemented unit enhancements year-over-year per applicant staff and we as basis overall our am our inflationary we These $X.X shortages. occupied an The the that As remained a initiatives expected operating workforce. improvements. as grew expenses on technology macro centralized anticipated, fall. application and I million net continued

labor. the a XX.X% U.S. a less grew reduce led margin at experienced in have expanded from costs contract COVID incremental end same-store We hiring year-over-year, XX most near relatively our the hiring, net range staffing move-ins quarter. still SHOP X%. grew margin contract from had overall XX%, double-digit our reliable few pool. on basis last for months. XX by QX the the cases growth will staff reliance critical positive on the QX occurring impacts QX and we Canada cover regulatory The while again new sequential in while more XX.X%. Bob ability notably is remained of residents X.X% conditions We the points demonstrated and reduction high more costly to shortly. guidance row positive marginal in XX%, second have stabilize SHOP stringent. and where guidance Canada, X.X% the Net to in with was and NOI causing months have to consistent is NOI to and of our workforce environment in labor

wrap give a I'll OI. on I update Before quick Ventas up,

our using with to our utilize continue more operational insights Ventas engage and expertise. operational partners operating analytical closely to We

is addressed three website bank, we are in meant represents how of summarize operating we capabilities I'll Ventas user digital upside experience fastest quarter, We've and for in pleased model introduced backdrop, a organic already marketing of housing with our technical digital and be sources lead UX XX% growing XXXX. XX%. optimize low initiative opportunity operator saying among significantly over all made by significant is post-COVID and evaluations; hyper excited to of since to the lead NOI partner audits, volume. year, and since we This opportunity senior given which March to of beginning audits; This then local now I this was OI And which it lead at modules: X/X supportive been a the and mutually-beneficial our recovery well of the received lot our develop SEO. has am it partners remaining. The position strong to continued capital with point macro progress that continue in relationships. are occupancy our have grown we about market portfolio. growth our to Bob? we our all

Robert Probst

results start an Justin. for before second Thanks, quarter enterprise the I'll closing our quarter. outlook third with with of our office overview and

ago and XX same-store parking. the by is X.X%, of increased quarter rose benefiting at result escalators, end sequentially. challenging When end same-store of And a cash the points leasing range very higher backdrop. we prior Same-store bottom with escalators, or R&I in $X.XX businesses, X% expense our X.X% Medical in were described, occupancy share, to research per by SHOP, range. increased strong range. enterprise year Our from results office led property basis higher grew office Justin with from office quarterly We total and XX.X%. segment, called favorable growth. and overall a net, the growth revenue NOI the of $X.XX. it triple quarter that combined delivering and with X.X% same-store and of despite guidance of contractual occupancy pleased a as better to above R&I performed performance in NOI strong year-over-year, basis same-store top led where end performance office second our in and where with innovation $X.XX NOI our we and is XX occupancy also year-over-year, medical retention, our leasing our which quarterly MOB points Notably, delivered which at strong high X.X% guidance nearly was FFO includes year-on-year new well year-on-year controls. higher QX, was guidance

are and trajectory deliver results performance being Our recognized. proactive to steps

loan prior For debt, pricing. XX% fixed Debt rating We're run-up of extend five-year and we agencies enhance BBB+ better stable, now moves last that our a loan six our example, prior million quality lending relationships at term in refinancing positive steps to the $XXX all three pleased reduce took the XX month and provided the ratings term to have made upsizing exceeds maturities rates portfolio to in smart debt. very duration to and have and near-term years. rate

of debt X.X%. Our average is cost

$X.X have robust limited of We near-term and liquidity maturities billion.

stronger the debt NOI A comparability, terms net QX per QX QX we $X.XX FFO net property our share. of Debbie FFO as HHS of received diluted present and QX normalized HHS development of same-store from to In range results expected to led income opening the dollar; share all received The the our from expect $X.XX to from in from of share. to by interest benefit of of to range $X.XX rate $X.XX Drexel grants U.S. grants on earlier. at now higher follows: bridge described fully per $X.XX R&I a $X.XX enhance $X.XX midpoint growth and July, less is note: is of from a to rates periods. floating per $X.XX excluding SHOP guidance, $X.XX in we $X.XX cash increase plus

for Let's into drill the QX. SHOP assumptions

quarter. range or SHOP to the of the XX% X% We inflationary as in year-over-year grow to which represents to pressure, rates. an growth expense points Despite NOI margin expect forecast the posted implies by from as grow growth midpoint, in well our at NOI X% cash the year-over-year Revenue midpoint to expansion. acceleration guidance occupancy at X% through of is the second XX% XXX broad basis at basis led increasing continuing NOI XXX improving points the midpoint XX%

extra Our continuation cash day guidance Therefore, and effectively July. fully unannounced is incorporates QX grow XXX to XXX include notably Final occupancy, average quarter. revenue acquisitions basis diluted which increases inflationary seasonal though by a new patterns, and occupancy expected flat. in SHOP trends operating in to sequential of sequentially expense This growth SHOP by average QX is the assumptions an growth is offset forecast positive revenue observed led QX versus points is the of material in and pressure including or markets million capital effectively QX, ahead NOI, activities broad shares. no increase

evidence information to and as running, comments, the more of website. on an believe are on To the creation. streamlined and remarks. I'm latest underway BJ QX posted assumptions, BJ advantaged direct Ventas. update Ventas concludes we ground enhancements has For of are sustained supplemental the the at part our that To would the deliver our Debbie's we earnings I hit the backdrop in guidance the value the deck position with package posted Grant excited our to dynamic close, to have team to portfolio the IR is improved macroeconomic in That you echo and prepared team. business

Q&A, be with that, one the Before turn caller to With call to to will line. each I ask the we the back to on we question start operator. state everyone respectful

Operator

[Operator ISI. Steve from Instructions] line Your Sakwa question Evercore first of the comes from

Steve Sakwa

I for guess Justin. maybe

wondering sort gains? occupancy gain back? is Is something it's seems out the you in-place . increases. a of pricing, positives, What's of rate that the the getting guess about occupancy the You great. re-leasing see in sort Everything move-in, why I conservatism? better, of And holding was QX QX. there than Is care that your trends I'm laid just the it lot whether less in that

Justin Hutchens

Sure.

I'll positives So first. of those a reinforce few just

positive net had So last mentioned move-ins. months XX is I thing that the the we've XX one of

year-over-year really Our strong. comparison been has

We're way, XXX expected third. some pointing the We by XXX us is quarter. XXX to be in U.S., points. in from quarter, up, the Canada, time. well. the occupancy second and the basis the to we the that year-over-year basis that expecting the over be We're thing has last XXX upside But mention growth year-over-year as have was and be lot points do ahead to it third in growth expecting One in certainly I'll been basis of that fact, year-over-year. XXX sequential in sequential was have were of the a second. points In is year-over-year quarter, so XX we benefiting that, everything in we're

Operator

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

Joshua Dennerlein

A question lagged of bit a underlying on underperformance? XQ. was XQ? What's assumptions just on And little for Canada. color the I maybe guess it more that in driving what kind

Justin Hutchens

It's Justin.

So yes, very Canada, in It's performer consistent stable, for the did second have first a occupied. of all, quarter. it's XX% growth us. strong, It

the between break the gave, X%. year-over-year basis X%, a X% and revenue to that of third already cash of year-over-year guidance on And down in that occupancy I mentioned NOI to Just Canada basis. includes growth is expected Bob quarter have points and XXX

And growth is But occupancy. NOI some anticipating revenue had we're in so year-over-year where of engine, move-ins, not had the the expected and They've second to X% points that growth basis in COVID-related was activity Canada. it where our restrictions the cash And was on affecting the XX% U.S. Canada. did is we've a we have it, XX% of quarter, in disproportionately really meanwhile, -- lot then grow quarter. and third XXX between

So Canada, really performer growth the stable strong, in U.S. engine in

Operator

from Your Citigroup. Mike line from of the Griffin next question is

Michael Griffin

it I to disposition on guidance. $XXX to wanted declined noticed the just quarter-over-quarter. million I that go

assets transaction for targeting bit, maybe sale then be Just broadly. the what curious seeing on in expand more and can that if you're you market a might you

Robert Probst

the second terms half. million transactions? will market. as when back the into using those and John can touch on on it guidance. for close anything, of theme question opportunities in reinvest. really to on asset with million the Yes. back you continue went $XXX But the want timing $XXX the a the That's sales from next I I'll of various upgrade in But to proceeds question. of to to year. looking half to much portfolios disposition Do expectations hit as portfolio frankly, on we the pass in We'll

John Cobb

billion good start of I mean, had roughly new We've we in think done I investments. a XXXX. about Sure. $X.X

fair volume think of seeing deal I out amount there. we're a still

being that I careful do fair are of we we like. transactions we're amount what think volume choose, in but we of seeing -- a seeing still

Operator

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

Michael Carroll

RevPOR the within on touch SHOP portfolio. growth to wanted I expectations your

understand increases with second with the is care all part, quickly we pricing often in think residents inflation? can those But changing? expectations keeping to real the up given the I the up that are part. inflation operators XX% your fully estate or quarter, And on how how pass

Justin Hutchens

we up been a is So raised actual has seeing charged rate care with step as the are keeping XX%, direction it huge to pertains care, in inflation. and the that's of that

we'll care care residents. as occurs labor that is know needs which thing resident have helps place that with resident required increase in other I'm you we'll needs, is of for pay and on to sure conjunction The to charges their at the take grow, have

time the was there's happen And happen prices on is we've to charge one as to the can highest in-house plus so this That the rates seen -- a of -- growing really a increases. year, care on it's are only strong of see encouraging year. tend They increases, Street care terms well. rent time but The more top execution in it one the than

Operator

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

Richard Anderson

sequential versus total. talk the and So again about to at I want specifically same-store looking

did XX same-store points pool. you the basis So on

right. I'm rate, that substantially when but which excuse had I was somewhat total -- the the increase less. you sequential me, is look looking more at think at I assets, portfolio, -- was the the And increase

and not new build about that Justin, you are assets something anticipating? So are new XXX the for or more some the the are same-store acquisitions . senior we're see whether an and -- transitions difference to is that is XXX same-store incremental total can that the what time upside Ventas take all Or the versus to that picture? going occupancy to and of there is the you maybe beyond the bucket

Justin Hutchens

is kind characteristics. hundred some they're Rich. They Yes. have lower in a that non-same-store That's it's -- of are that of a One There's unique couple that observation, occupied. category. communities good

to the pool, of below of They growth So They faster. they QX the therefore. also run They growing have more upside QX. been sequential double-digit kind mid-XX-ish. have rest had

the performance growth U.S. and we expect and contributor grow be So that engine do I that big to to a that good, pool is mentioned.

Operator

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

Juan Sanabria

change bit a credit the plan What little up at the kind And you just rating affirmation I sheet of wanted of by curious balance and the ticking a tack target when notwithstanding to with wanted of kind the leverage do is? agencies. there to just for get on expect just to plan I be the timing. X.Xx. which range, So is the back than to that? within your lower visibility definitely sense

Robert Probst

one, take Juan. I'll Yes, that

key get NOI recovery, the three the to off, It's that trends upgrade NOI across were the SHOP example. all the board in senior pleased been the of portfolio, action due rating And in know asset to on reducing an and above been agencies that the In mentioned along meantime, the see to really, seeing be was First range housing. of way. COVID. the really the I therefore, the positive take near-term doing And BBB+. debt you'll as we smart the things to we've we've that the the predicate we're -- been fact impact back to has continues dispositions to range.

NOI SHOP to continue market types back growth. predicate fundamentally, those on We depending conditions. into the range things But is of of do that getting

Debra Cafaro

debt EBITDA back the getting an of the EBITDA, growth range. important in component right. net The is Right, to

Operator

line Vikram the Malhotra is Your from Mizuho. of next question from

Vikram Malhotra

step So think maybe maybe us I'm where bigger wrong. I back just that through trend tell picture guess a to about me I help can little walk you want and or

O&I out strong. laid just You really

steady. growth. percent producing MOB is NOI You're X-plus

the is You and well set Justin, into just 'XX. laid why very -- portfolio up housing out you senior

underlying So it given ultimately, for all underlying I'm is, where three-year can this boil be and growth. asking trying not I earnings plus FAD numbers, the say cash want does wrong what that all a multiyear earnings? growth you and FAD would X% average I I'm of 'XX to growth period, over I to But period, question over if understand if of all of is, translate this, take of into down to a

Robert Probst

different is, yes, absolutely, short non-correlated view. feel forecast, FFO projection. Ventas, the The on we seen with eight and growth point. so Not the and that of slope. at drivers course, Well, portfolio, in growth reliable to portfolio portfolio opportunity NOI than cash organic and better is your I've cash flows see before growth, answer giving the drivers, and some timing growing think But we of you and years the that, I will across demand flow do FAD is is growth my and that certainly a time

Operator

question next Your is Barclays. line with from the of Valiquette Steve

Steven Valiquette

day unpack just And there a be little favorable on maybe should as a more the grow down. presentation leverage show 'XX come pace move the basis, million day, end That the at X bit of operating per where exit could stay wanted that SHOP further I same Just Slide when if on the come down? expenses that an XXXX? XQ. operating you in number be number to $X.X I the and in does million of in actually XQ. just guess will Or just up, slower it that absolute to the hopefully guess, flat at $X.X into is, you I question does

Debra Cafaro

I macro saw by we a in macro really jobs minute, today's obviously, very changing as we're the with mean a environment question. dynamic And that's trends.

do looking to I continue third, we into those see think pressures. inflationary the

is expect see $X.X new of CPI think and the news million the really function we minds the where with of But next longer-term a wage to policymakers' macro. need year. view now -- to incorporate I today over a we the expectations in that is

We are we doing everything can.

that growth, they pretty that Justin which everything is to manage talked can doing hiring are operators about, Our the including fundamental. net

Operator

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

Adam Kramer

of drill disclosure kind Just of RevPOR. Slide wanted the there kind in on appreciate pricing and to I around maybe in X,

kind of of re-leasing kind turn when But here? positive is can push how the number. asking number as at go down how take drill really trends, of push trends of the high guess we we you for may from where well? can kind I And side, How And strong from kind you of you again, on Looking the releasing can spreads? is, kind kind the much can And XX% not of in timing spread a of to then the specific where this question that here year here? care kind on positive. that plus. of kind really last

Justin Hutchens

So this Justin. is

of re-leasing been great, trend So the particularly yes, trend. all, first the has spread

typically slide a but certainly was We encouraging. that better but negative. even price doing possible, power around mid-single that's -- June. the was doorstep much the a and have that's demand of and that always consideration second It remember -- flat the That communities positive that showing see you and are going than do come before already was quarter the negative We're there's be demonstrate around in of pandemic, over actually that the to on re-leasing the at helps pricing standpoint. really that digit from groups a almost we're really that number it time. You mentioned, And might now. number kind spread volume will

that's trend. There confidence walking around is just to of assisted gave So this And doesn't business. helped living The an up necessarily pricing. component care -- in-house look -- another in the as rent power. pricing The stairs. spread important really then and it's increases movement form care, of well, re-leasing really not necessarily it's the be some a on in could the like set going

a and that's in growth just that an really of that as of pricing. gets area well the eventually taking goal revenue And possible the the expense between and that’s in to opportunity doing the terms care and best increase -- that increase really that is way drive NOI people. keep and differential a So focused

Operator

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

Nick Yulico

to turn Le I to with want I program. you a So announced the new development Maurice. know start Groupe

You also two incremental originally, a have Maurice think think I Le R&I when standpoint, know new size year. about just per I remind development. Can us three should then a R&I you starts starts And lumpier. did forward? you you sort to how going of Groupe we is about development from talked

as us think fund I there this this well, construction one are a joint to just this? the all from already then within You loans guess, quarter. how this? reminding And Is funding up got of a standpoint, just most we about big set -- ventures should

Debra Cafaro

to been you're us great talk has right, we in we Maurice. assets say, is I that acquired grown really the the deal. existing operating investment they terms about and These they're Groupe to significantly two you're would unique really Good new of pre-leased, at model year assets. that's for thanks. a already open a a yes, the development Well, And we This three as you. developments are and that's a And Le pipeline. both correct did thing then have the and when that really one about effective. like to there outstanding announce about that been

super In new financing fund We'll get two the I in construction terms X/X these exciting. projects we business, for the continue to to would say, -- building. R&I are of XX% XX those. Optimally, of do general, to

of the some we can Investment on Management for we for balance And Ventas best do we platform. that structure would to with under them optimize developments, them our way and Ventas. new And do sheet expect we capital these some of

Operator

next of with Your Mueller question from the line Mike is JPMorgan.

Mike Mueller

Curious, the those? discussions did development for long start return -- few expected new you guess how announcements, returns ago And your expectations evolve I for the past your did two months? over

Debra Cafaro

I to yields universities. continue we've time, target universities universities able with attractive this just again, is, on are Wexford really The these on long return state-of-the-art in The projects for from on very major budget. good research delivering this with successful news basis. And demand top voracious, risk-adjusted X% and discussions of continue to is think, processes. space been a we're research to lab be, These

there yield ability costs a ultimate upon an universities. record based track those with modify to good And have so and we working very

So it's keep in doing And a we very pre-leasing. this this have is good it. quite model lucky with We're significant risk/reward competitive that why we business. which is advantage good, the

Operator

will with The next caller -- John Street. come Pawlowski Green from

John Pawlowski

I want Rich's about SHOP question the to go trajectory back to and occupancy. Steve of

year, normal coming but a in still of the good very we're out improvements basement. sequential bps XXX So

we're occupancy aren't type what's lot should the demand? given a bps, seeing trajectory bps, coming occupancy back XXX given XXX So of from? have holding point pent-up jump-off all of I of specifically the guess trajectory the we're of And U.S., XXX wondering we we in bps why

Justin Hutchens

a and that of recent Well, or I and point kind what stands is fundamentals. would demand. just seeing But would for If happening of next XX us phenomenon months. the pent-up guess mentioned, XX had even like function and more new supply demand, movements. we it's a it's out, pop growing, I frame have It's is been of not overall we've April it last to the think some We've we were think been these a just way early year I was really and instance. I experiencing -- And where when we're I strong ahead for demand there 'XX I had in part of it's growth beyond. executed vaccines

positioned. it. we're playing So well We're into

the been industry Our the puts portfolio NIC NIC outperforming significantly the has sector out. overall data, data that

and seen growing before. a So we're pace haven't we're growing at we

Debra Cafaro

growth. occupancy And growth the than second projected the higher occupancy is quarter sequential sequential

and third. good year-over-year So growth the we're that pleased by projected in

Operator

line is Your the with Baird. next Rodgers Dave question from of

David Rodgers

down able an today? on and kind to little us if medical a a MOB particular, a are you and you're additional increased and in for wanted spreads coming bit those spreads drill and little the of guess I spreads R&I leasing escalators those for be interested leases. in push of for being bit would commercial give level where conversations And in Can to seeing office. through I sense leasing

helpful. would there be color additional any So

Debra Cafaro

is Pete for question. the very happy

So Pete.

Peter Bulgarelli

got I a question. Yes.

Debra Cafaro

Yes, exactly.

Peter Bulgarelli

in and high Well, terrific. all we've across really in success in of particular degree having occupancy. a Yes, been office MOBs growing

in year, also the then had again in For MOBs, last occupancy second the quarter first quarter. growth few and one we the that of were

leasing pleased So with we're very our success.

just based quarter, to did we're expirations have we a space lease much more quite on in than space the at leasing lease bit this time. We but less last this year

great are escalators both So a significantly. it's increasing spreads dynamic. Leasing and

basis entire been because able our don't lease re-leasing spreads disclose it's -- gone points portfolio, works by up some with we it still positive. of competitors, I in has haven't tails the And the escalator just leasing and the this how really quarter. but of XX For to heads make

Operator

question Tayo from next Okusanya line Suisse. the Your Credit with of is

Omotayo Okusanya

the about so well it's question housing senior quick triple your the occupancy portfolio. I below the And side, net guess occupancy a on So side.

does of to curious additional rents risk have continues to of as as address that why of to it and if for that having kind of So any there's some rent the lag still weak kind kind coverage. much meet tenants of the

Debra Cafaro

to Justin that, is going take Tayo.

Justin Hutchens

Yes.

is a of going the So occupancy. in function really just the occupancy

it I pandemic already. was into lower when heading leading mean running that, I the So period, say

kind last effort We've We credit is our the have portfolio little with COVID occupancy SHOP last a the bit the the and those flows a some dramatically. absolute little position The situation higher to carried portfolio. well. of cleanup, improve in we more in lower triple stability But leases. net of a the have obviously quarter as now. It's over of occupied. years our put improved cash lot mentioned that's X.X occurred And expense

continues So if to the to a triple-net improve well. continue portfolio the trajectory way, of the we perform in sector positive expect and

Operator

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

Daniel Bernstein

when home of the at or of And projections from any the go historically, of when coming that effects to quarter back projections down you that Have does kind in into down want we've market quarters. seen kind actually XQ? few right, you and any of XQ. I goes So deer-in-headlight Have seen they've play two percentage for When velocity and the been -- seen when stock versus for impacts look kind housing into XXXX, over XQ? last slows. of your sales move-ins the seniors to and you move-ins evidence last some

Justin Hutchens

Yes.

we housing has impact it's usually do We've needs-driven, sentiment. it's more It's I move-ins. that We've correlated fringes. experienced something net senior So helpful low, eye watch supportive one is had to maybe also been senior and keep strongly an and is could is consistent. on we move-in because consumer pretty we've The which relatively mean something thing although not housing the been lead on growth consistent activity. very obviously of because have

we the market lot them, a watching we're of now, mean growth, gave I and that. others right quarter. and indicators. the key of kind mentioned guidance third there's there's always So We're just support And all as macro well. good Debbie expecting for on

we'll the So be mindful macro of environment.

Operator

line the Griffin from is Citigroup. question of Mike next Your with

Mike Griffin

quick that. build Maybe a spot and in on average about kind the the the late quarter, third that noticed question curious any in of growth. second higher the your thoughts occupancy expected of kind around is Just explains I maybe quarter. there expectations occupancy but

Robert Probst

in close I'd are spot other. the say average the each Yes, Michael, pretty to

second, end for the nice a the of the had third. same we in but yes, So hope

proxy. So good average is a

Operator

Sanabria come line will Capital. question Juan final Our BMO the from of

Juan Sanabria

are maybe Is Justin. Page affordability, looks XX you it deck is that in focusing question an OI just your to? for on Just Or pricing. that operators opportunity something have to significant a that look I a mind. headroom the push potentially for at investor the If of and the like curious receptive push if platform

Justin Hutchens

would favorite the first… of Juan. much topics, so are say my I Those

Juan Sanabria

go…. had I to

Justin Hutchens

say on price sector even big did. in I the you don't through this, know really is the to but have think which opportunity know I don't the we today. we transparency, affordability, know time would all. at you first have go I part I on

engaged just for we're fall, to were we've a we the called you'll where officially. partners it's area to that do pricing language been And obviously, well. definitely magnificent, that execution hear then playing So resistance. fronts. much pricing And our And hasn't operating points having an an there huge really before highly plan in this of and our with focus confidence standpoint, year, like the the markets price as I we're even have into pushing And we're on all in. It's testing in affordability pushing been because part push, discovery, seen opportunity and to we this OI and think, that just the operators focus pricing. we OI for Last it improving that on definitely year. from

service opportunity as it's So it sector residents. deliver and a over -- valuable. hot topic, for time a it's a well our big And... it's It's very comprehensive, to and because we tremendous always the

Debra Cafaro

it. afford can They

Justin Hutchens

And they bottom can afford it, yes. line,

Debra Cafaro

All of situation. definition right. a Thanks, the that's Justin. So good

close. we those couple before we follow-ons and take have more I can think we do a

Operator

Credit Okusanya next of question the line from is Your Suisse. Tayo with

Omotayo Okusanya

Okay. Great.

of kind taking there, general on. thanks in news half a first on curious for follow the post-acute over ever really of of happening lot side industry-wise. of ask you kind of slight one in kind So about the just in to seems a hospital for No XXXX what's coverage guys, the but decline

but again, curious, of side. just portfolio, So on seeing a curious part your that small it's what you're

Debra Cafaro

going period period Well, and census I you've of coming kind think and acuity now, all public census of the a are transition a a environment they in hospital COVID the and kind into operators, normal from are of seen providers environment. more out

the continue think there employment and pressures increase. as to to is business. volumes So I there Certainly, beneficial care abate, you'll acute improvement higher see wage

which just both So a rate think in effect business, increase, got October also some would the take of beginning the in in that's to will you're than that's of They sort post-acute, food normalization And going the and some positive. way X. go at obviously, there. but I see top And starting say, normalization I that take volumes then wages, always in a long of more time, the the to to chain. hospital is

Operator

John Green Pawlowski from Our Street. from the comes question final of line

John Pawlowski

you the release in on frictional life about line help science. quantify and hoping can talking Could vacancy coming expand that you I'm caused move-out? into what the Pete, press the

Peter Bulgarelli

Yes. the Thanks for question, John.

created this space. in where have are our type actually some in space to space tenants of for But they the we move-outs have have occupancy, they and had into COVID So lab the an tenants the that that area us -- pure of we also convert high-demand good we same-store space, of office XX% opportunity some just and people -- couple need. caused reconsidered space and It's need disclosed innovation we for really pool we -- last that have a R&I, that quarter

tenants over and have about year. tenant we be vacancies. -- are But we repopulating transitions. so We'll or the bullish some those quarter two bullish the next space lab and some to 'XX beyond. We're of about And full converting

Debra Cafaro

And I as already mentioned, backfilled rates. Miami, example, at higher feet immediately in [XX,XXX] we've for

to time delivering want all it's and attention We for future. the it? everyone and for the your right. we're in a Well, environment, excited continue Is and for job thanks done that, the All about Pete's I We're great company. here that So but and value. know to interest on a question. ready dynamic thank committed your

thank very much. you So

Operator

joining. you. Thank Thank This for today's concludes you call.

You may disconnect. now

Ventas (VTR) 5 Aug 222022 Q2 Earnings call transcript