Earnings call transcript Q4 2022

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ventas Fourth Quarter 2022 Earnings Release Conference Call. [Operator Instructions]

I would now like to turn the conference over to BJ Grant, Senior Vice President of Investor Relations. ahead. go Please

BJ Grant

materials, morning, quarter Good our welcome the and to quarter Ventas on Thanks, at website results everyone, conference fourth ir.ventasreit.com. presentation package investor financial release, issued are call. Ventas available earnings the Regina. supplemental and which Yesterday, fourth we

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

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

factors, please most a to detailed all more of those quarter the our For release earnings to of on this recent refer for website. available discussion our filings, Ventas which and are SEC

Certain a GAAP supplemental our on please be also reconciliation refer the measures, And posted website. Investor of non-GAAP these the measures for comparable call. measures will closely discussed to on financial Relations to this most

with Debra I'll to And A. Cafaro, the over turn and CEO. that, call Chairman

Debra A. Cafaro

of to year-end and call. BJ, to shareholders other and and quarter our fourth Welcome all participants. XXXX Ventas morning good Thanks, earnings the

We and share, the portfolio growth attractive was quarter per are financial FFO quarter, accelerating which by management Medical our diverse and our profitability a VIM. reflects deliver business, normalized results of our at and third-party benefits strategic pleased XX%, from initiatives. operating of $X.XX key Building Fourth fourth SHOP record Office fueled the strong to performance institutional capital

demand capitalize labs our and aging is care living diverse strong of are getting and senior R&I Medical are actions, trends. stronger well on communities, Office population. assets our support capital Ventas and management Buildings, health asset these business portfolio serving unified in and positioned to recycling other which that asset high-quality the all After fundamentals classes, demand nation's The across large significant growing

the at grow by we In will in years believe a XXXX. substantially led The actions and growth In to senior in are began supply by as XXXX, we over-XX what continue construction our and compelling there at and lowest population see better housing, markets. Yet, we've rebound. inventory supported favorable in recovery taken five record tailwinds. fundamentals, portfolio demand its of post-pandemic level cycle will levels SHOP supply-demand multiyear Ventas Ventas percentage in be and a

the few position market to we recovery. our decisive transitioned Over We portfolio invested our this capabilities, fundamentals, demand. taken capital communities capitalize rolled have sold, our on out OI all demographically-led years, Ventas last team, the exciting actions the powerful with and to SHOP strengthened analytic strong win platform, properties acquired in and to enhanced

opportunity. well post-pandemic trends to these are actions, the from and SHOP recapturing underway we Benefiting NOI

Our portfolio of has more we in and hopefully potential seek already enjoyed to even ahead the and us COVID significant them. occupancy exceed from performance years as recapture we and then first coming NOI reach XXXX the see levels growth trough,

billion highlighted and and $XXX significant of our portfolio a three took investments, rating steps garnered Bob history million $XXX to in MOB acquisition also key long School we both XXXX investments flexibility very in also our to million University and Maurice, million Le housing Ardent. investments, manageable in senior $XXX XXXX, Groupe Atrium financial the markets; maturities an include moves These new of the $X.X our to XX-property MOB Mangrove positive by credit balance strength North including Charlotte, continued Health/Wake of creation of liquidity. improve and sheet Carolina; Medicine and acquisition our maintain value In XXXX with actions with reduced level. of Development partners. in very Bay often in attractive These leased with new and Forest the development a

operational has bold leadership. of Roberts, Counsel, progress passion commitment diversified and forward. carbon and further who We zero including XXXX. elevated Board our General emissions to in Finally, XXXX by we a efforts leadership our Carey the net will our committed under the be advanced we us values, ESG experience as our move and made our accelerated to These achieve remain to

we normalized at are the to we FFO momentum. introduce pleased X% Now, full growth year representing XXXX Today, guidance midpoint. strong enter with

in We once the SHOP, are projecting again compounding by unprecedented by of organic our office by positive complemented business led growth and portfolio, driven contributions our Pete.

pending We for build which stake and in sale over Ardent under Atria our our recently value VIM both loan. mine investments completed Santerre also as our to to Glennis in outcome has will software continue optimize the non-property evidenced business, our seek also while billion assets out already and management, by $X the deal we equity

to will we capital we new reinforce our invest of continue sustain wherever Finally, opportunities to find cycle and success. compelling

assumptions economy, macroeconomic and conditions, tightening. in the less because demand we ways. some labor forecast advantaged inflation, and in strong relatively operations aggressive include and scenarios, of power that slowing is moderating Fed large, Against for other albeit our resilient, believe our SHOP softening continued, our demographic benefit should economic underlying softening likely The in business and demonstrated our backdrop conditions pricing assets we have many multiple is growing

investments experience connection and assumed and OI which success operations final man and Ventas making by Ventas. want happy me with our call in join our you our the Chief I deploying his to in investment now I'm turn additional across One organization. him and insights to enhancing our to to to thank between Justin Justin, outlook. good business want across congratulating platform Justin create the powerful classes, value of himself. the asset activity his And continued positive use the over has know will teams, January, the role I our Working In note. been for and leadership, strong at Investment instrumental Officer

Justin?

Justin Hutchens

our noting excited execution portfolio. about how I am the you, Thank SHOP start I'll in Debbie. by

positive recapture actions Over and the years, as multiyear past few in in this we taken aim a growth recovery ourselves to cycle. many performance have we achieve to NOI position to put

and over and X XXX We transition to executed and which communities SHOP portfolio triple-net actions, have over been acquired dispositions successful developments. We've to over communities new XX XX executing new operators. XXX new include converted

over the season. we refreshed process to are XXX that Finally, have in selling expected complete getting key are of communities the and during

supports of approach tremendous our operating analytics of our housing collaborative team executed best-in-class partners momentum. benefit that and has proud gained really has OI, results, expertise to business our the to leverage am operating and our I we to tremendous oversight data our which where Ventas positive senior drive

programmatic priorities portfolio. revenue-enhancing deepen that strategic Our the first, parallel: market, maximize key our and timely and near-term will approach competitive tackling performance insights advantage to addresses challenges of expenditures; two influence second, in our operating capital and value long-term financial

SHOP year-over-year fourth our Now quarter same-store XXX communities. the I'll results in cover pool of

well. again pool continues excellent portfolio fourth our of to by Groupe midpoint significant growth the results. positive SHOP would perform growth in pricing due and and expenses. led partners above of Canada quarter which occupancy expectations delivering for our ahead moderating delivering services growth XX.X%, while is our was thank The excellent and grew SHOP by year-over-year and the really of Our includes Le in our while XX.X% guidance Atria, XX.X% QX Maurice. achievements NOI I year-over-year to range power, their operating Sunrise growth demonstrated financial with led U.S., care like to all and

RevPOR XX.X% in expectations, Revenue increasing in from leverage, to ahead even occupancy we've low year-over-year average and in driven positive XXX growth increases margin Pricing continued quarter impress. RevPOR operating of due in to strongest XX by grew rent is acceleration and continue year-over-year at in the to X.X% grew QX. resulting benefit XX.X%. QX X.X% We care improvement trends primarily occupancy, Same-store relatively At power improving basis the in-house in to and year-over-year from by XX% to in last this occupancy. points growth, continues the seen spreads. re-leasing years,

expected, expenses million day. per As $X.X were

As year-over-year lower a X%. to again It in in QX expense peaked at growth and X% XX%. was reminder, QX QX our reduced XXXX in at

in XXX%, the outs a of indicators experience XXXX remain deliver with Canada. as XXX% strong at XXX%. Leading and Demand at move-ins in to in we continues U.S. and leads growth U.S. XXX% XX%. move-ins and Canada over occupancy at at the at January XXXX high percentage accelerated in as XXX%

representative outlook: and is expected which expenses. of XX% includes XX% There our XXX growth, guidance primary to communities our growth and same-store range Now will occupancy XX% XXXX. driven and is in to year-over-year expanded The our moderating cover occupancy are XXXX of SHOP year-over-year of range I SHOP the of positive performance. in drivers XXXX rate pool, three growth by in the from low NOI expense growth and accelerate cash same-store XX.X% guidance high to end of portfolio.

margin midpoint. points XXX at expansion We expect of basis our

the approximately growth XXX points at X% of of of driven basis midpoint range cash occupancy the strong revenue rate by NOI to anticipate basis XXX continued growth guidance same-store We and points. year-over-year growth

this by season approximately our With OI platform the to able and deployment are increases Ventas our achieve we XX%. substantial operators, excellent rent execution of of

to typical half in of with RevPOR in realized rising growth growth, received will our that This the street be X% about in pricing, of It’s RevPOR revenue in rates, rent results much combination resident as the already have improved and important over which XX% been XXXX attrition increases. note expected our of by care already driven population growth resident has XXXX.

compared growth, move year. to regards in that to occupancy In we will prior into project our communities residents XXXX more

net move-ins to We project our higher. also be

seasonal in conditions we clinical to quarter. which the slightly expect move-outs However, occupancy to first elevated normal patterns, financial more return typical and include

points supported new demographic by supply to a XXXX. significant aging the XXX expect basis occupancy We translating muted of year-over-year average throughout year, about occupancy in improvements ramp an and accelerating

growth We be also around with inflationary lower expense to contract and expect labor moderating year-over-year, overall expected expense impacts X%.

providing needed consecutive workforce to initiatives and of the moderation quarters five recruitment support have execution had stabilize employee improve the are tailwinds expenses. hiring, of retention, the to the of net Through and which we

investments. am capital in work I'm a to my our strong team situation to I can expanded work our allocation. with newly investments track responsibilities. to expert record pleased and where deeply Moving to I on excited continue into experienced very step really

forward life across drive embedded wealth enterprise asset classes to office. of senior look to science medical in success network of R&I the a external investment advantages investment by experience with have and ongoing We growth. and of to combining I existing and our the housing, our the relationships extensive platform contributing my targeted

expanding growth our across optimization, I refresh look office redev and enterprise portfolios. Ventas portfolio to to the across external forward housing OI senior and drive capital

our best-in-class opportunities. our work on with pick spots to and continue investments will in partners We attractive

well Bob? positioned believe are positive continue of forward, am demand to this business in trajectory. Moving I and confident drivers the we the

Bob Probst

Thanks, Justin. our quarter XXXX share and on on going with our I'm performance, our some balance touch close sheet outlook. to fourth highlights

Fourth cash we same-store NOI Throughout we our In company of SHOP proud results. FFO what normalized quarter was growth we start, the in accurate was strong, are particularly our and X.X% higher of total XX.X%, property quarter growth range. of at respectively. end the guidance $X.XX, followed and with do our were the say. To and fourth to mantra XXXX, quarter, fourth forecasts

Pete XX% which a I'd in to to Office NOI on our great team. Office grew growing X.X%, operating full same-store solid the as year-on-year, just NOI rates performance, performance increased Tenant level company. result exceeded fiscal year in year, cash result, 'XX. attractive posted of inflation. MOB the XX%, that give same-store led led occupancy expenses leasing the same-store with MOBs. 'XX, measures cash like management. since by posted year the expense Office highest by X.X% a MOB leasing growing X.X% higher below shout-out business, X.X% had and highest for Bulgarelli And was cash And including a and all 'XX year-end record at year R&I Same-store metrics, full strong of by also organic well satisfaction by same-store outstanding some XXXX. our NOI

which I'd general highlight XXXX. better a as of than earn $X.XX per in eligible our was $X.XX We're items the partner fourth quarter. the promote We our promotes also in first approximating two Fund, share other to further Ventas guidance. earned

coverage Second, Health noncash through fully $XX mezzanine February. on Santerre the declined through has is current loan in XXXX and we million our investment Interest year-end, but loan the allowance CECL on January recognized $XXX to interest remained expected a loan million Investors. full

on comments our few balance a sheet. Next,

used and loan years, balance through enhanced billion two with in and portfolio reduce proceeds asset we Over debt. near-term to repayments last dispositions $X.X our strengthened our the sheet

billion that in duration debt rates. the issued new pricing attractive interest of extending $X.X at before run-up also in We period,

or in having this debt on this cash And a coming nearly As requirement. consolidated in due progress locked X/X X.X% made $XXX good XXXX. have result, our towards million we just of rates all-in refinancing, X% of of we've under

floating floating Consistent approach rate with fourth was management XX% XX% in our consolidated XX% long-held in of maintain the quarter. our to risk to debt debt,

rate in We XXXX, targeted down plans end debt new $XXX have our to in debt of debt issue designated rate secured which to with bring million the fixed floating our rate would to floating proceeds range. pay lower

at debt NOI range. our moving XXXX. by improved And significant target adjusted finally, billion basis toward the net X.Xx XX our fourth back forma We ratio to year-end EBITDA growth pre-pandemic in to points pro quarter, steadily SHOP $X.X have liquidity with of that

Last but pleased 'XX is not from is is that income post-pandemic extremely organic for we reintroduce $X.XX per This estimated to for to our Normalized follows: and are and share. stockholders evidence net fully world, guidance forecast full guidance as our between share. opportunity tangible are Ventas. exciting $X.XX per range least, year demonstrates I'm the components XXXX in to growth key to attributable guidance. property The $X.XX to diluted range common FFO $X.XX a post-pandemic

same-store NOI growth cash portfolio We cash same-store at by at expect the midpoint. to midpoint, the X.X% SHOP XX% of NOI grow our led

guidance U.S. of property FFO a FFO the contributor. $X.XX bridge against organic against we from and from with rebased XXXX. per pound partially at of of A interest the year-over-year in straightforward share first, or the impact midpoint expect growth $X.XX reduction, also $X.XX stronger describing $X.XX two the rates. X% main dollar higher SHOP; represents drivers: year-over-year The outstanding dollar 'XX $X.XX the and Canadian is is growth is principally a the second offsetting Our and

described inflation recycling of range the include shares. high G&A in potential items midpoint in million changes rates. proceeds, diluted largely average guidance over environment, million are low capital weighted fully XXX at receipt million additional revenue, the in expectations including The by guidance FFO promote Other and approximating end changes macro $XXX and our of and interest no $XXX

thoughts normalized on A few FFO year. phasing through of our the

roughly the 'XX fourth point quarter, of the received quarter low in the for seasonal We promote when is to quarter expect be to of of FFO the with 'XX the $X.XX adjusted in first of flat quarter $X.XX 'XX SHOP. first for the fourth

to the the As FFO outlook our be plateau, posted growth in season can in expected found guidance key interest more the rates kicks A our of 'XX. is of and presentation discussion balance SHOP in website. selling in fulsome earnings and up to pick 'XX

deliver to To XXXX and to Ventas new engaged and with is excited close, momentum. on entire fully success and the 'XX a company our team entered cycle we reignite our for The of plans shareholders.

And prepared that our concludes remarks.

question respectful on to ask to to stick each caller line. we to For Q&A, one everyone be the

the turn operator. I'll that, With the call back to

Operator

[Operator Instructions] Dennerlein come question with the will Joshua from Bank Our line America. of of first

Joshua Dennerlein

I I background you're just Could about the ask Investors want Health allowance? to that optimize loan. then, looking the why Santerre you you mentioned just Debbie, more to And think outcome. provide

kind of that outcomes through like expecting. help us you're the just So think

Debra A. Cafaro

Sure. part The normal is our business. of loan

some recovered been of This allowance from COVID in to current because that think coverage took loans about interest some operators. continue have under of we've terms last care the And I assets $XX increasing. five to health of the rates care we've be of collected while billion on the made we Over quarter. receipt it's And years, in interest properties or compression $X.X particular payments. health interest, million loan a in haven't

it And think a want it's so way. timing you really to that if issue about

so we to and a experience that. and And to our that, rights and through do expect lot at we work would have tools disposal of

Operator

the next with Our Vikram from come Malhotra line Mizuho. question of will

Vikram Malhotra

guess, I maybe the in your in wondering, elevated to I a CapEx the deck, was quarter. triple-net portfolio. position I'm potential the SHOP in outlined just investments, fourth understand wanted little you to and CapEx

CapEx the investments NOI magnitude of want terms what wondering next, to call tie two like can to a it, portfolio outlined you've and with the give years of three perhaps the growth. I'm So in us of bridge sense the those these the you SHOP you achieve over or if just

Justin Hutchens

you I'll Justin. probably start, It's to and Bob want jump in.

all, initiative. is a of it large First

considered and of been have gave Certainly, to there's executing improve XXXX. believe being more XXX guidance we highest that million we've for about that picked will that impactful. We should communities We we've But performance. are do. pop. process It's And be priorities when our aggressively. stage, this help we the in do $X of at refreshed. it our It

So we these look the online forward selling coming key during projects to season.

Bob Probst

these of indeed of the NOI-generating embedded clearly over the XXX we've in in use be our to I reinvest that these of that's time. NOI of will $X the assets, our timing obviously course believe add, and quarter. forecast the given in spread given senior best in is we've housing. The opportunities. you million use ROI-generating growth. isn't backdrop terms cash, of SHOP And It pop, top are of mentioned of properties, all in cash I'd million. But the one opportunities are $XXX

Vikram Malhotra

you just these gets year spread million, this growth it that or just maybe I'm if is And of could through growth depressed. ultimately $XXX to years coming back the because sorry, $XXX tie is the multiple million, out? are to this FAD clarify it trying then FAD

Bob Probst

Well, first year. started of last we all, this

So some it. mentioned the quarter is of you acceleration. part That clearly fourth seeing

the terms to classification generating redev. Second CapEx This spend. just is a make point in of is of ROI

So you'll Again, time, same will see priority investing is At SHOP that acceleration top increase. FAD the in CapEx assets. behind the our readout.

So same program. a at time. you'll But that see increase it's the multiyear

Debra A. Cafaro

going fundamentals as a housing We'll the into forward. this and in be senior NOI will well in it's multiyear supply-demand market. And our we recovery impact investing multiyear see

Operator

of Ronald Your next Kamdem question will come from Stanley. with the line Morgan

Ronald Kamdem

Just super a was helpful. two-parter. for quick It Two Thanks the things. presentation.

bit leading that's color generators and January. and rates. little strong, the more what just pretty being lead XQ in was the just Maybe first The on a indicators both conversion capturing

SHOP NOI is, And said really of then done. you about opportunity second and piece I things talked the with think a all million end the thought presentation, of the on Just was that sort $XXX interesting.

step versus are that pre profile of about thinking just guys take back, COVID? at a you you point curious sort the how margin If

Debra A. Cafaro

format deck. external on our like but old us your glad the helping in BJ Well, Grant, put colleague, you constituencies. obviously Ronald, pride We best our we're it is ourselves the analytics, for

like glad I'll Justin to start that And answer your to over you we're it. to question. So turn it

Justin Hutchens

Sure.

So really quarter highest fourth noted solid. Movements were in had, good. lead leads. leading of in the looking to they're indicators, on We've you've think, we regards record volumes terms

We there. have no a already, in that website move-ins Those slowed the intra noted leads, place in It December. conversion a down an month You worries put January operator in move-ins. bit recovered slowdown rate. since upgrade had so

We expect trends. normal seasonal to follow

move-outs see move-outs. have Canada. it's have in clinical the we're normal financial you'll so little move-ins so strong additional normal U.S., in far And And XXX% January, It's to -- additional be start had higher. at bit We've to a a off move-outs. XXXX with XXX% in of to then

looking a standpoint. all good indicator pretty So leading from

to regards really all X growth In to the noted thing and question, margin excited as Debbie the helped Obviously, power. margin pricing noted we're there's that's I about. That's expansion. accelerate it, that Occupancy our well. does it,

margins continue back demand And grow senior should anticipate settle get again. to and out strong housing but sector. for expand. continue And that the to of to will we're because do also So margins Debbie's should -- anticipating we hoping to the to to also, level point, XXXX

Operator

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

Michael Carroll

Just think portfolio? senior is regarding the assets same-store the from I a of new versus meaningful profile I added of legacy coming growth? different properties new of that than a in legacy being same-store seniors, the there growth so in, Is forecast. to growth your same-store stuff mean, between assets the new lot SHOP the new the difference terms

Debra A. Cafaro

that, I'm you going Bob ask and glad I'm to answer asked it. to Mike,

Bob Probst

as across pools, importantly board senior broad-based recovery look Yes. it. growth pool, you improvement portfolio. the that reflects say, is see mentioned the in when look really contributing all at growth are And you This strength. growth And fourth I'd you at fourth the of off, 'XX, asset same the operators attractive that contribution. new part literally across Mike, almost and that and the in quarter first of the of new the you'll senior, broad-based all quarter

Debra A. Cafaro

you the the in have think we like business about should I pool. our is now SHOP what mean, it vast I same-store of majority Yes.

So meaningful the of to it more for the investors business. that makes understand performance

Operator

come from with will of line Evercore Your the Steve Sakwa next ISI. question

Steve Sakwa

just was Justin, I about bit hoping occupancy guess could speak a little growth. the you I

XXX You in think, picked up, I points basis 'XX.

forecast the at Your for XXX this is midpoint year.

sort fruit more a picking and early a So a to of I'm XXX maybe as you reconcile out, low-hanging you of parts a do XXX bit the up about. is view I'm and the was trying towards the normalized pace? slowdown just figure have XXX the that to leads of you the talked move-ins maybe of the a in Or think the got economy? is recovery trying bit with cautious that the

Justin Hutchens

a that's Yes, question. great

helping describing seasonality. 'XX me XXXX, start was XXX basis basis want performed So relate to things and grew the XXX than that with When in to QX points two I seasonality. growth let had metric. we points, it of better we that One typical

really So start much There at all. 'XX. very strong activity clinical in wasn't

that so us. And was helping

'XX, pandemic comparing impacted. also was was year, that prior to It of a QX

have you So 'XX a and you have stronger start comparison. favorable a in

'XX, that in the Moving mentioned prepared I normal ahead remarks we're into experiencing seasonality.

lower have seasonality. we about QX effectively has than you change It's QX from line basis see in QX, occupancy starting normal so with QX. points to point lower a Typically, in downward QX. XXX So

net in said, then is see this We're And we'll expecting I more acceleration growth. more we're expecting And move-ins. as an what move-ins. year

'XX be is at rate XXX will stronger, is the but So growth fact, points of basis in rate growth. midpoint the The effective stronger. average growth overall of in the

Debra A. Cafaro

timing of in Because phasing.

Justin Hutchens

exactly. Right,

Operator

Your next James. line question of Jonathan Raymond Hughes the come will with from

Jonathan Hughes

that helpful. I to is SHOP breakdown But providence versus conveys. would appreciate year the between upside I'd the be Canada of came are seems for breakdown of some us could was housing have the there the just providing full restrictions U.S. in know you the I Canada. year that and U.S. and NOI that guidance been guidance seniors guidance price outlook fourth border. the north between Canada confidence hoping recovery and the and quarter. in the where some I But the give growth this

Justin Hutchens

generate the Canada tend is It as of bit growth of is Canada but higher to Bob occupancy. range, overall, included full is expect is guidance contributing we'd growth. in contributing side, average everything everyone and growth lower the It's guidance less be on contributing. to the it at to 'XX. does higher the the everyone Justin. the the said, And on in but Well, U.S. end a with a year little

Bob Probst

Canada growth the I That we XX% fourth driving in business is would delivered in the -- occupancy quarter. is well. just and I'd engine emphasize But performing overall obviously, the the midpoint. XX% U.S.

Operator

next Your question line Citi. come Griffin the from Michael of will with

Michael Griffin

Justin, can with the what in if them those you us give for not that a the bring right transition they're of better your be great. your doing plan underperforming, you operating are what to of sense equation? And look partners, performing, is be conversations to on would sort then there the side that better partners of performing labor the And But might some maybe could snuff? expansion partners? to your any up to ultimately, conversely,

Justin Hutchens

way to for done emphasis recruitment professionalize professionals the a gearing are all more priority. the Sure. growth been through and that that operating by automation. the person. cost That's It's to in Well, it's 'XX, is a ways. of of recruitment everyone in to local where to few managing partners first One had become how was our really contributing of staff all, It's NOI also towards a line labor is central contributing improvement that’s always similar additional done your operators. focus the extra the on the and There’s -- done priority agency was just which to to in that to be the coming emphasis communities been And that numbers make, markets competitive. on where our increases probably an wage indicator then our put more throughout at leading all back There in we noted retention 'XX place locality. starting as or But help entering down. entering indicator you in were 'XX have well. agency competitors agency, that’s put

just changes So that been, in of lasting execution. there I been And think, made process improvement. good that be have will has terms really

Operator

Your next question line Sanabria come the Juan with of will from BMO

Juan Sanabria

on question. off question a CapEx, piggyback of to Vikram’s FAD Just maybe

bit should on what ICE guide thinking the the a in I the the low maybe year, guide? if what which gets 'XX, as is included given $X,XXX, we be what guess I curious $X,XXX about 'XX of inflation. that units about two color well add is versus little in compare little And for average kind CapEx. as the then Just per per for the and FAD to normal it of seems together unit implies

the rate, cap curious for what So expecting be kind of year? just we should on

Debra A. Cafaro

principle is mean start really go further. out steady CapEx I Bob kind with will FAD recurring state And non-income then Well, the producing that routine activity. of

Bob Probst

last The what you in either really simply standard. the that is second market premise up activity of because in is, will reduction ICE because versus year. reduction, haven’t part function ICE -- of bringing acquired transitioned 'XX assets, to And see or 'XX it in a call we significant a had is

So that flushes out of the system.

Again, cash properties, acceleration and house of to behind back to mentioned both back front you expect of use to see the house. Bringing would in, earlier. best core I CapEx our in I that which FAD, of some invest

placeholder. you number $XXX refresh redev, increase is the which increase in meaningfully, ROI see will an in that. a we a as more projects, which front-of-house mentioned So million And these really

will So going be both up.

think properties. line about of growing also think in terms I contribution by driven it the FAD would flows cash the bottom net-net-net, XXXX I of in the

Juan Sanabria

Any guidance dollar total for CapEx then? spend

Bob Probst

No, a as as simply million a a I'll up by the $XXX redev number. change. give year-on-year you

Debra A. Cafaro

of something You've Juan. got him, out

Operator

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

Tayo Okusanya

on the being better kind the about on word, results more strong very the if on in made to in case some understand expected? and of trying A than numbers, a I is the quantitatively guidance. trying side. that And little quick to may of a drag specifically use 'XX. that FX the of that question understand on and fundamentals the underlying assumptions drags how side, the this I'm FX Again, bit in becomes year, interest much built FX guidance earnings

refinancing to And rates of to $XXX the refinance numbers, exactly understand the kind expecting that's what at? baked million into the also trying around that assumptions of are you

Bob Probst

Great. I'll take that.

but see Of of really it impact a floating here contributor. the $X.XX Canada, the interest we helpful on is translation focuses rates. a having deck the of rate the contributor in have, is stronger vast what show vast the we NOI. large rates. majority really posted is impact deck. yesterday that's on that hedge of interest small is majority a part that curve is And XX is Canadian a on the and FX in in because debt, and U.S. dollar, noted natural bridge, Page to So I which rising the because And we in the

driver. primary So that's the

as in of been again, some source of the going the to which pay terms U.S., two to Canada, pricing of well a issue, key to are on of able terms That's those we're be attractive this planning agency we've In And rate principally. $XXX funds here as And in to key guidance drivers really down the some the million use debt debt. in floating that's of year which in refinancing. secure mortgages refinancing, Canada. we'll

Otayo Okusanya

you specifically us for be a sense $XXX And could the the old million, give what versus rate the going of is to new rate?

Debra A. Cafaro

the depends mean I XX-year. it on Well,

Bob Probst

on the Yes, would XX-year. Xs the is. depending reasonable In be where the XX-year a depends on it expectation,

Otayo Okusanya

X% Okay, great. Pete, you're MOB year. giving me X% next to

but like I down, Going still it.

Peter Bulgarelli

good. feeling We're

Operator

with from line come will Our next of question Nick Scotiabank. the Yulico

Nicholas Yulico

$XXX the the of million on recycling I just also capital terms guidance, that in getting. proceeds you're question of a

breakdown that mean, are how proceeds? should Any those development? the in just on about a or you helpful. would debt acquisitions that repayments think And there dispositions be color your versus could earmarking give second we you If just I for would loan be the on using paydown, as property number.

Debra A. Cafaro

Nick, it's Debbie.

purchase some couple a is full repayment hundred There's we On that was $XX million the are of -- option-driven. show got that. in got of as loan the in $XXX based a in interest office at deck, on dispos, we million, million, full small on And Freddie balance then I a other double-digit on Mac January, rate. paid think, We items. a the is which

Operator

Our next come Rich question Anderson line the with of will SMBC. from

Richard Anderson

to supply of want I So the talk the house. side about

if is a thumb because spot And in substantially may table It's in of X% stock, Page in you great down possible trending oversupply. is, to anywhere senior the people as But down. remember, for supply as of you're pandemic over shown of business trended was some not existing XX problem. the not know on prior deck. mind, the it's your that a housing As of I my the rule

fundamental So me five business. ago the was years, five comp a that, great of though substantially it's over not for why period down even years past the year tell that

So development for a being you good tell why this optics window And starts coming we're seeing when down muddle again of the expecting. sort me the that the demand beyond to down. is just to thing certainly you with story is will, also now. what in think of in this And think it ramp all you because particularly costs see it sort supply of and

could you be more that color that, if So great. would comment on

Debra A. Cafaro

record side, all know, as with Good. XXXX. I you the mean, demand the with in population it starts XX-plus growth

we're financial bit obviously, we analogize of to crisis development I of are seeing are for pre-COVID a the starts, high, during supply, capital costs paused because that quite of what this because then construction terms still In those because particularly is where costs. you kind really now time after a similar would were continuing COVID during financial little period the then to great but period from of crisis. kind of and And and years, referenced also the

expensive now. loans construction extremely are mean, I

we be seeing point, got and XX% that's at where should think level. very because a to get deliveries And nice costs and starts up And around kind -- in the the remain have really Justin capture tend specifics. to again, game muted, good for I markets, that while, at like want we kind very can kind And of here that this you window in where of window being, can low. did able we give time crisis, can see of and to occupancies effects, much the so we XX% plan. muted in level where really be that's the our we the we the And demand we if financial they'll believe time, high. there's the the would know be are But profile because deliveries that after the multiyear remain, have low that to were back same

Justin Hutchens

mean, would and at continue I summed will out different what's population, period years. that the growing the it several to perfectly. point record just I for that you levels Yes. up is from next think XX-plus again I

the XX And side. that have It's it's the Supply, in Debbie we demand low. exceptionally next So supports our window it's over that's supportive markets, most on like supplemental, the very points. top -- basis obviously basis like are the In points, starts. that is describing years. few

And fundamentals. demand this is a has tremendous sector that

have supportive window we've the really formed So through that's eventually. exciting that recovery a and bring and we the been that's supply capital of talking about. will those see we'll do But

Operator

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

Michael Mueller

a curious for of 'XX in given growth Should SHOP. 'XX, expense has your been just RevPOR I'm the moderating? pace and growth how moderate lot the

Justin Hutchens

So it's Justin.

I So to I'm about, which go is just what demand. talking going back was to

affordability part high the markets, in just which very our of is So services. and this demand there's for another is

never needing in you demand with And to service So that of ability the combination the the seen have the doorstep. people of people having numbers before terms and we've pay. at

power But be should to moving inflation pricing what supportive doing earnings create And to this been working and in cycle. do is forward. really a sensitivity we've growth that to that you're CPI. in So some of There's effective spread. generate to relative always

Debra A. Cafaro

think take more all through would maintain you you may out or that power. some this occupancies, higher capacity you pricing market as of the of And

Operator

the Bank. line next Derek question Deutsche Your come will Johnston of from with

Derek Johnston

special of agency, release or OpEx very agency specific material all outside SHOP On I costs to don't labor being utilized even and recall and pre labor pandemic, at situations.

get improvement, But And agency there's do labor 'XX? no plan by your achieve centers? year-end agency you pre-pandemic So labor out can levels to you how been doubt. of of

Justin Hutchens

Justin. It's

shifts others. zero to our had labor the right. which Obviously, we in as assume sector you've XXXX pre-pandemic. Agency since close we managed In than down, market our it big there's bring We've absolutely then. to in it guidance, year-over-year. did 'XX And noted. been we've was enter agency You're lower

supportive moderating our expenses. that's of so And

of are, range. prepared It way -- QX in my I bottom. that which revenue in end, like is the works is the the occupancy on remarks throughout rate, guidance more fact, There we run forward carrying and mentioned the at top year. the other X% But assumes expenses lower

we've agency But So that stable. anticipating remains our we're into relatively incorporated that thinking.

Debra A. Cafaro

across at is share actions other kind and is really participation the force that and healthcare macro the at function getting of large fair positive that of the you're level principally of labor Justin workforce. where is rate about key hiring, mentioned net to And a factors. your take true hiring the this And least at

Operator

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

Steven Valiquette

seasonality flu historical have Slide let's So this little call presentation, would the on expecting in 'XX 'XX. you But flu of normal little quarter occupancy XQ earlier high the just about SHOP, talk to, expirations, in I would the to XQ a levels you XQ. of bit normal in subject, that about just XX maybe leads historically but that prevalence been on fourth of versus spike resident seasonality trend a guess extent talked bit the given of that fourth earlier. It's thought hurt the I the elevated it, in the so instead quarter, happened much season a sensitive a

downtick I here of in kind really 'XX, would the flu this not have in dramatically happen year with off maybe falling inversely, XQ thought XQ. then historical And really would

the normal some just potentially sense. get thoughts So hopefully, on of to altering of wanted all your the trend. I flu makes seasonal early kind that

Justin Hutchens

Yes.

start kind I'll would that I with describe flu. in of wasn't clinical and of observations. It's far they just or clinical were It's as around January. both points very so of representative December the certainly great side, normal. So in normal kind side. seasonality headlines typical The the

relatively is well. over mentioned have year increases. because also which of typical this residents our also high this financial their We half received we've And time they're I around in-house mentioned move-outs, as had rent

contributing that's and move-out trend to which the So normal. is

we're normal and doorstep. we're then back kind those was due a the And and to move-in improve to -- to the to expect standpoint, make, from standpoint continue of the expectation kind at trends. net That's demand point move-in of expectation trying we I in that to regard,

Operator

Your the with Qiu of line Tao next question will come Stifel. from

Tao Qiu

So lower been kind higher X% -- about. that growth, housing Justin, the slightly increase of RevPOR single SHOP guidance in-place the operators talking rate slowly some and senior digit even is which XX% have a assumes than

as Are comment promotional the the current So expecting follow-up, much annualized off how activities? talk the you take on spreads did the interest quick you you re-leasing And moving of a on could XXXX? in on expectation $XX the Colony guidance? loan, -- still rates million could income you the positive the for

Justin Hutchens

deck in that I'll page Page about the for question? have pricing start those How it, with the that There's this. XX, a addresses

rates care around rent strong RevPOR, increases street to First, have as XX%; running the then contributors well. increased in-house XX%; pricing, and

So in going is really, that regards. everything up

there's year, represents One XX% the just attrition. it's thing RevPOR. our about typical then And adjustable of care, attrition, throughout normal about

of And so the in the throughout these receiving other words, is benefit not full whole resident year. every increases

than you're So that's might X% XX%, which a why RevPOR seeing around the indicate. above rather numbers

Debra A. Cafaro

FFO I Colony, a contribution of on then say there's range basically And would in outcomes the XXXX. bracketing

Operator

from Your next of Street. John Green question line come the will Pawlowski with

John Pawlowski

interest can me really, range And the just service believe properties for set you bps stack cash a and is capital had I flows. plus sense your really XXX these magnitude the originated Because the the Can question fully you at for I follow-up increases the needed what mezz to are rate NOI debt? out of that's LIBOR painful you mezzanine remind tranche loan. then what loan? when give a in loan-to-value on us

And so larger would helpful. not just comfortable any a got taking you thoughts on about be how impairment

Debra A. Cafaro

a plus to Sure. if is on will, I and the stack in full think rates there's mean, really you I as again, increased. of post-COVID closer and assets XXX-ish, senior the The impact we some the said, junior. have X], loan [L

underwriting of kind And so the very original XX% was LTV. conventional, XX%,

a you it's so just mismatch, will. if timing And

the rates, XX/XX taking portfolio value reasonable, believe, our the balance made borrower, the decision side. consistent And And valuation. and the at so making rates sheet is on assumptions the we actions and the collateral we about in are

John Pawlowski

operating are, loans? the NOI If will stay cover rates fully the income On they where to mismatch. when timing start

Debra A. Cafaro

so now loan. covering the paid it's being it's Well,

interest So being paid. is

Operator

final Rodgers with question Baird. the Our will of line Dave come from

David Rodgers

Justin. you, for Probably

dislocations you do guys in it continue how terms be put you in new are today in taking you which Or opportunities think, of MOB? bringing or today science last by I In to year. kind the $X.X think outside are Where in interested of life seeing call? deployment are more guess, are year, capital the redevelopment, And in this you've work I will what much put on? to of the SHOP you you seeing portfolios mind? to your of those? commercially mentioned money advantage biggest more opportunities earlier the But billion best out,

Justin Hutchens

Yes.

normal. life exceptions first have further a senior capital asset There's science, to Medical obviously, to all, exceptions well. sources very not Pricing tends our our acquisitions. of are on portfolio could and prioritize So unclear we're we're preferred housing, be deals remain is to in of fortunate market that those, the key itself classes, Office wide The is that. be as getting variety that one but there The of right stabilized to interested We'll assets. repriced. we But the there's now. to seeing expanding Again, fewer classes. participants market in asset this, growing

Operator

the back remarks. turn to I'll any conference time, this for concluding At management over

Debra A. Cafaro

you. look appreciate you you seeing us your very opportunities all in forward to Thank are after company. much. aligned on get ready sincerely everyone it. today. Thank so very for joining interest and I much. want our to call XXXX and We really optimistic thank We We're around the to momentum the and

Operator

conclude Thank for that joining. gentlemen, and today's meeting. will you Ladies all

You disconnect. may now

Ventas (VTR) 10 Feb 232022 Q4 Earnings call transcript