Earnings call transcript Q2 2023

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Operator

Hello. And welcome to the Ventas Reports 2023 Second Quarter Results 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]

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

BJ Grant

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

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

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

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

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

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

Debra Cafaro

our good quarter and Thank XXXX and second you, to participants. earnings Ventas We shareholders other call. BJ, morning you the want all welcome to to of

of are quarter enterprise positively our broad-based cash growth portfolio, NOI across with FFO of This our result results of property growth this per and reflects segments all same-store pleased contributing with diverse strong $X.XX year-over-year We X%. share. NOI normalized

led senior Notably, our housing. communities continued to and in underway benefit as SHOP the Our we growth U.S. way, cycle from the recovery multiyear

Assisted Living portfolio XX% grew NOI year-over-year.

portfolios Triple-Net the our Our growth. and leased complemented Outpatient and Medical Research SHOP

our X% growth. per growth earlier outlook the midpoint consecutive in sixth of per We the are the year-over-year normalized guidance year-over-year of provided we year. also reaffirming reflects you to the year share, share and quarter full At FFO $X.XX

growth interest share year $X.XX, higher level, partially normalized by property-related FFO high $X.XX consistent those originally, a rates. offset significant that for of our with a of the drivers shared we impact At approximating the is, are key per

key share I’d unpack the recent and developments of to highlights. like some some for you

Loan a with Healthcare of we XX% the a on balance portfolio and are communities. by ownership strong of X We portfolio equity. Triple-Net start May Outpatient over took Mezzanine properties consists of to XX% facilities off to Santerre The XXX buildings, our Medical SHOP over converting

portfolio. improved There are outlook the key of components our for three

First, our over the from experience team’s certain $XX us will from advantageous portfolio annualized and This trends is experience strong believe returns. timing our flow we $XXX our is of and operating capabilities, early expectations maximize focus, We help for improved have the for increased taking NOI time. that our about this to portfolio outlook the result million. intense cash and million positive from ownership

billion $X.X the that $X.X debt below Second, replacement experts cost. now investment valuation, our the equal above was stack, we that value stated on X% portfolio per the level. last worth portfolio At third-party about valuation pound independent billion, believe at quarter valuation we it basis, the to cash is

drive cash Third, contribution the $X the on with Ventas’ another time. strength loan a over flow and capital on replaced portfolio enhancing improvements at demonstrating way the can we structure attractive portfolio’s further secured an permanent all-in rate, FFO billion that senior the portfolio

at previously as SNFs starting certain selectively expect rate. about $XX sell and we indicated, addition, In this the million of are to assets dispose later of to year cap mid-X% also in cash a

and portfolio. on do, the of have and the maximizing intensely our we success while value cross-functional to had we the work good focused teams more have far So are so NOI

multiyear the In demand recovery we driven Looking to growth in at continue believe our and broader enterprise. cycle. experience SHOP, and strongly

to to level, pre-pandemic and margins expect next the supply-demand We of years and fundamentals perhaps, have we of favorable in runway million that of occupancy, we to exceed us three NOI, as recapture improving front over about because $XXX and five return years.

markets we our grow and well years. in the Thus, no lowest virtually over five positioned growth. set over XX% is at industry to next since starts the are enjoy XX the starts With XXXX, to population level construction to outsized continue

Demand continues to be strong.

quarter led performance by was in U.S. Our the SHOP

Living. and our anticipated to portfolio We growth expense from strong continued and RevPOR growth benefited moderating Assisted Canadian highly as occupied shine.

Justin Holiday Living during significant are performance, Occupancy portfolio and expectations lagged are that been in OI These our utilizing joined the our has to good playbook Justin his Ventas good markets, successful drive proven team U.S. assets in so the Independent taking quarter. and us. since steps

Medical which NOI and growth outstanding cash under Pete’s had to is portfolio, which Medical another been growth. our Research leadership. good and business about Outpatient contributed Research a equally performance, third impressive and have Both X% with Our same-store this Outpatient quarter year-over-year of nearly and consistent

same-store delivered of X% has year-over-year eight Medical now and in NOI occupancy cash over growth growth same-store quarters the for quarters. year-over-year of last Outpatient eight consecutive seven

prior in the over quarter New leasing the up second year. XX% was

leasing creditworthy quality of Across leased pipeline with large large from and government centered benefit conversations tenant half we million users and with square research a XXX,XXX our feet. tenants and XX-million robust our square to actively multiple feet a foot first late-stage the square high institutions over to in from portfolio, are X.X portfolio for universities demand mix in continues university engaged

in million on Development Health/Wake closing of activity, recent Finally, School interest North in though quality continues Medicine still in of the we With be $XXX even Forest tenant to preleasing high Charlotte, construction. early Carolina. stages are are in Atrium XX% we our University

on to raising. capital Moving

had successes across prioritize to strength and our financial markets flexibility. this capital in billion so diverse liquidity, raising significant continued $X.X far year. We in We

that we net cash billion of dynamic skill during periods. These now have competitive even I the am $X market Bob. in a Thanks, transactions in we position with attractively evidence sourcing scale the are pleased advantage over discipline our liquidity. of and capital priced and

under and year, a In institutional competitive an expect assets. quality as existing capture focused to opportunities for platform. Ventas’ provides the disruptive this later a active management We VIM platform us also investment for complete use and billion buildings have we umbrella housing pipeline growing $X.XX our investment investment advantage of on core stabilized of within senior both VIM outpatient third-party medical we about Ventas’ capital market particular, portfolio to With high in objectives, for and communities. opportunities its capacity of

Overall, focused remain show front, and quality stabilized outsized potential with and or risk foot wide we dispersion unit. growth high on within a rates per the classes and assets profile, with reward assets portfolios investment price to credit good square embedded potential asset the on Cap continued growth even depending upon characteristics.

outpatient Xs. the strong credit good systems and see buildings assets science high We some quality in mid-to-low hospital medical with trading and life

out. variety risk with assets other or characteristics more While garden have profiles gapped

front us story into lean housing senior with look of to good challenged assets a profiles growth recovery the solutions. and is in for There opportunity as significant financing

through are for due. XXXX over We in heading debt housing coming loan with senior years the maturities $XX billion into peak

returns With opportunities occupancy to higher basis to beginning generate are housing see below quality XXX assets. still pre-pandemic about and points significant we senior rates, levels interest on rising

and We raise team, and are ability to capture group capital our well operator to OI these of relationships. expanding placed analytics, opportunities our Ventas our our tools with

Against a our given advantaged portfolio. dynamic the fundamentals macroeconomic backdrop, and we liquidity strong our remain across size,

outlook. from benefit Our asset compelling classes demand a

Ventas performance shareholders. has While the we this our year on for delivering and been and external execution, been and have focused at volatile, unpredictable laser returns environment growth,

appreciate stakeholders. lot really I our their with way Our our focus accomplished commitment our greatly to handles a and team come and macro and every Ventas enterprise specific enthusiasm. that’s and across has challenge

is Our strong. enterprise momentum

for We driven enterprise opportunity the are our balance large unprecedented confirm across FFO are capitalizing demand business of organic the and normalized growth the and SHOP year. on our growing we demographically outlook multiyear the and to in pleased

Justin?

Justin Hutchens

story demand Thank by performance. you, strong. covering Debbie. will I QX The remained start SHOP the

As the the sales funnel, top levels. performing are year and including leads consistently pre-pandemic and prior above of move-ins

cash the in led Notably, with for portfolio by expanded the basis points quarter. expectations NOI with SHOP led margin and Margin XX% and and our Our the XX% NOI to SHOP double-digit respectively. XXX continues deliver XXX expansion, XX.X% points. was with the growth way U.S. basis U.S. overall. line growth growth, same-store

The over working. And operator year is in the half assisted performers, including joined market, Sunrise. to exceptional legacy our delivering ensuring operators committed right a past have strategy us and asset, the that we by right and to as our Atria strong Assisted are our results communities transition results regional right Living living relationships are driven are

CapEx and at our the portfolios now planned XXX this over completed with are complete XX NOI and projects of returns AL CapEx continues generating established to more the These have IL program part U.S. early that as projects of we the beginning year. we year Our all excellent. in our are budget

quarter XX% occupancy reached portfolio the second NOI Canadian in quality grew high X%. and stabilized, highly Our

grew in an revenue exceptional growth portfolio of led The X.X%. remained year-over-year, X.X% RevPOR growth U.S. largely X.X% our strong. by and RevPOR growth Revenue of by driven

as expected and by expectations. was expense. in which expenses downward Operating regular OpEx, our better its X% year-over-year, increase labor grew labor partially Within was than better approximately trend continued offset an labor than contract

ramp a XX season The key is strong of the spot in had selling and June, well driving basis underway growth quarter. during occupancy points we

in at IL which year-over-year, and that However, was Living. by the disappointing see we strong points by end we Holiday grew expected U.S. basis in Occupancy month Atria our XX didn’t Independent driven portfolio. performance softness

communities, We have SHOP XX.X% would identified quarter XX reported grown year-over-year reported. the versus same-store would occupancy the have performance. have second XX.X% particularly XX% and portfolio for these U.S. achieved XX% the total Adjusting growth lagging in NOI communities XX that are versus

redevelopments our and OI aggressive playbook, benefit plans are these will more already communities comprehensive including operator These from executing and in underway. transitions the measures

ensure management we markets. to the First, solid demonstrated asset XX by California. by they manager right operator sales place operators Texas Atria transition and These in Holiday have the and regional existing communities have performance, overlap had robust have Ventas a we will strong geographic Florida, in with transitioning relationships

successful program. Next, we continue CapEx our generating NOI will

are We several by portfolio very in these Atria results. that our Holiday have projects good of completed delivering

year-end. We projects Holiday planned complete our by portfolio in of to have another round

to we investments, combining collaborating Finally, are proven aligned we to respective data very analytics, has with transitioned we performance. that utilizing new by expertise, focus approach, our execution successful operators full the and best-in-class management right communities their will market and are intent operating operators management and portfolio ensure be that which with are OI local driving agreements, our to in capital

in point different the of transition best successful operators. where transition seven early Our we to XXXX is completed assisted the portfolio, execution clusters regional the XX XX communities living in proof of

net move-in of delivered year-over-year the are occupancy sold months in the of and CapEx We past growth months XX basis has those of across portfolio and experienced XXX XX communities portfolio. improvement closed This points. and nine invested

period and they of short in growth in seven X.X%, These newly therefore, appointed demonstrated on markets. the all growth had a proposition their the respective have success NOI residents have has extraordinary recipe for relatively of value time delivering for operators with these RevPOR contributing. in operators

performing example operator market, asset our on prime of a right right right philosophy. is This and

performance drive to the We portfolio. our we across and we playbook, expect continue have executing broader are SHOP to

Finally, for our reaffirming to same-store portfolio are growth XX ex SHOP range same-store XX% assets. of XX% our NOI, we the

is XXX full occupancy We basis which the points of of expect half growth basis to approximately the year first with performance. consistent year XX points,

In in closing, the in is sector. Bob? senior confident as set we for the multiyear net table absorption across remain the recovery very housing

Bob Probst

approximately the some from Thanks, reported There Justin. -- discuss were with $X.XX our impacts with sale Ardent. as in net equitization I of our impacts and in XXXX excluded XX with share sheet shareholding arising net share. per of balance of performance, the communicated. of we our attributable income our Starting FFO normalized QX loan previously close will and QX highlights positive and second mezzanine of FFO quarter guidance. from the NAREIT are income notable These performance, the quarter updated XX% enterprise total

with Normalized same-store $X.XX contributing company total ahead segments portfolio to was quarter of equitized a start. that strong all cash and increased NOI expectations of FFO second year-over-year. X% per our increased the and year-over-year, in X% Meanwhile, loan had share growth, our

rates we our year the increase manage on A to sheet. backdrop is market X%. and balance treasury currently few attractive capital and at challenging, with The rates proactive comments taken XX-year the have steps over to raise continuing to this well

assets. further a HX. billion of rate diverse $X.X at line compelling tapped million secured, We sight raising bank near-term selling Canada, maturities, have access multiple multiple to sources We as the and having X.X% raised debt and markets capital, across leveraged geographies, cash U.S. $XXX and of into capital a with as in to including well our and raising convertible unsecured debt equity

SVB hedges treasury hedges executed costs debt down collapse. at through pay held at the X.XX% interest we And fixed X.XX% rate that rate two-year all-in XX-year and on floating we post our

All in money. of the significantly these hedges are

more maturing The is permanent Ventas. longer XXXX capital maturities the debt use debt, and debt XXXX paying down a accretive duration, billion with of Santerre replacing is most XXXX refinancing and these capital thereby to in notably structure senior sources secured $X full that

these in a spot. As a result of is sheet strong balance all our efforts,

targeted limited to position which cash shareholders. at through net exposure the the covers of rate a capital our liquidity nearly billion, low XXXX are XX%, end and that exceeding X.X $X is debt access in our of advantaged our by floating access with near-term times strong are We range. to and points using our proof skill benefit attractive These of our in maturing

QX net the improved equitization Mezz. X.X times to times we following anticipated the debt-to-EBITDA in Finally, versus our of X.X the

We are balance metric recovery further will BBB+ expect the we committed to to that over and SHOP time. a sheet leverage improve continue our multiyear

basis, for reaffirming FFO adjusted with full X% normalized I a continues to After outlook midpoint guidance we updated conclude our On our an the initial $X.XX share a of year, year year-over-year narrowing good February XXXX. of per will at the basis. midpoint half at normalized are for on represent first growth XXXX. the FFO and our

our now with SHOP versus $X.XX and and impact we guidance, driven the occupancy. by initial Triple-Net impact IL a portfolio a positive Research Outpatient U.S. by the loan expect equitized Medical Bridging minus $X.XX segments, from offset together

a is the now raising, A positive from capital interest forward rate from offsetting a bridge curve and higher $X.XX headwind a dispositions guidance. $X.XX final step incremental in in included proactive

company now our midpoint, at XX X% presentation our is assumptions. disclosure our cash total website expected supplemental posted reach guidance same-store year-over-year and to to the basis growth above initial further see points Please for guidance. investor Net NOI

year the are to we committed the we for results and half close, our second for of the with the half in delivering shareholders performance and and To value beyond. first pleased are

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

the turn back operator. will I call the that, with to And

Operator

you. first Capital Thank RBC question Markets. the Your Instructions] comes Carroll line from Michael of [Operator of

is Your open. line

Michael Carroll

Yeah. Thanks.

about portfolio? the prepared housing how fair Justin, impacted, bit IL made was the were in most sound like you is I seniors assets weakness it in of Holiday it it by a largely know little was comment? portfolio can sounded -- you talk the your remarks widespread a like XX but was, Atria that where

Justin Hutchens

the -- a by consistent consistent more seen. growth great with That’s communities Holiday little be the growth. about a -- They we are it, great. in U.S. growth that of Independent are Living Atria have specific all our To question. more Assisted with that’s that They double-digit have NOI have doing occupancy not have Living we

me The narrowed describe to down bit for is really and a that let issue you. Holiday little

Over will the program benefited We remarks, of are have those Atria those prepared are our half with end XX redev that from already. I XX XX of communities in the will done of have Holiday communities mentioned moving the year forward. by or that

We plans have year. more many throughout the

track great going have for which far record in communities with Ventas very are a that to staying with excellent the have to generating in The track record results. good thus an is So states those Atria program, transitioning redev communities are are the and continue had relationship. respective operators plan their that to us

underperforming were confident on are plan of an hands get putting good and those, those action are them have There’s we and they we track. in we place in particularly XX to

I IL would say of it’s it’s an to not So, place a plans issue, by yeah, in have Atria address really issue it, it. and Holiday we more

Operator

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

open. line Your is

Joshua Dennerlein

the Yeah. Hey, Appreciate guys. time.

looks initial $X.XX was it is in guide. like it a portfolio, Santerre portfolio outperformance? the particular versus driving the like positive that the On kind in of What

Debra Cafaro

start to Debbie. a there. is the I say, off we would this for question. are So Thanks strong

intense making the we expectations sure from are and to that’s principally have the and are maximize all flow this cash asset can increased value. reason, focus we steps and management and of and kind NOI integration on taking really -- been We the that’s

Joshua Dennerlein

Sorry. Senior housing, net is it from lease…

Debra Cafaro

Oh! Yes.

Joshua Dennerlein

…. Yeah. MOB segment? or

Debra Cafaro

Sure.

sense are in Pete’s going and portfolio. MOB very I there. you from about and generating it’s and we then of magic to it why going is part stages minute to the portfolio over for is turn well the of Triple-Net Pete his So And the is talk get take additional the bringing and to portfolio, early a largest as early do the a expectations will And to which activities Healthcare want well. some

Pete Bulgarelli

Thanks Joshua. the for question, Debbie. Thanks, Yeah.

MOB of the X.X assets, million a we systems square about loan that are buildings, are medical reminder, XX% systems feet. as is medical portion the the have as existing sitting a XX medical same the Also, portfolio just MSAs of and those Just with our overlap of of equitized XX% these with the portfolio reminder, associated from them legacy the buildings, office office buildings. of in office

we to and busy. efforts integration you tell been easier I’d much do our So really have are

using been have We playbook. Lillibridge the

We each one of for assessment have engineering an the done buildings.

We buildings. for each asset strategic one plans have of the

spend and curb the improve buildings. approved have to and efficiency safety, beginning capital of We are appeal to the

are forth. We elevator maintenance so contracts OpEx and like transitioning cleaning and

We think worth feet savings of we for our just by of have square tenants identified contracts. about transitioning XXX,XXX or $XXX,XXX

We done results tenant plans. on and are a action we the satisfaction received working and survey have

have we these some property management the of transitioned finally, buildings. And of

six have this total and the pro the this news on Lillibridge, is which of transitioned for forma XX our good We we $XXX,XXX about ahead since brings are week May portfolio. the MOB the to portion,

Operator

the of Evercore from Your Kammert next question Jim ISI. with comes line

open. line Your is

Jim Kammert

you. Hi. Good morning. Thank

what power recoup sort legal and with call As versus portion not that earnings post just am just get $X.XX associated of earnings I understand. you be drag $X.XX, of trying more that you all be or the can it, issues you. Thank better contractual like to the other maybe let’s repositioned of would regards reposition transition? to just back assets, transactional, may

Justin Hutchens

portfolio really it’s Justin. described. all performance plans recoverable we Yeah. $X.XX in The and captured It’s as I Holiday the that Hi. through action improvements view

Debra Cafaro

more. $X.XX a and then back lot Yeah. We the want to get

Operator

Michael Griffin line Citigroup. Your next of comes question with from the

open. is line Your

Michael Griffin

Thanks.

transition. Any underperformance that you to those expect color helpful. Just to that around issues be at of of kind saw going mean, would to was back mainly I facilities? assets you declines, due occupancy kind the those labor

Justin Hutchens

Sure. been portfolio Yeah. occupancy. The biggest issue has this with

We price across CapEx those and a NOI, are have where the had where been particularly in transitioning. remains had and -- we portfolio that that’s we markets especially a we invested of some successes this and good driver really occupancy have focus

have are so to a proven have that the communities and management they for have operators platform The transitioning managed us have sales robust executed quickly in to far.

them for are really get started. So to excited we to

Operator

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

Your open. line is

Jonathan Hughes

morning. portfolio seems the now SHOP nearly pretty became organic SHOP not and expected turn? be headwinds the Good down transition being then a before delevering from amount visibility Why full And the why that’s Hi. second small these drive severe? done given raise relatively is to recovery the of equity what Thanks. NOI to one, the leverage

Justin Hutchens

It’s Justin. the Fair take part. I question. Hi. first will

of acquisition portfolio They end the at Holiday an have by the So time. saw period for efforts a they integration acquired had conclusion been of was to We come Holiday Manager and really Atria. integrating see the merger they remarks, XXXX. in points the been that forward our and proof season looking short. At the stage, key said integration I fell that prepared to we those were to like working, had selling

the some actions the So includes of redevs. which underway, already were

to a in more communities, doing and we are transitioning I are mentioned several new We as then comprehensive operators. redevs

now had integration activities. good stage, this the taking it’s are time are at and to action, up that we ROI step we visibility We merger into

Bob Probst

Jonathan, second equity. the one, take will I on

Jonathan Hughes

then… And

Bob Probst

If…

Jonathan Hughes

Thanks, Robert.

Bob Probst

we have you to sheet, balance real. with which start commitment is BBB+ the I our … know

ceteris points in XX paribus, we basis highlighted is levering, the the earnings Santerre call. last Secondly, equitization

And and permanent been it variety leverage liquidity includes and As of rationale. includes what that part debt it’s on emphasized, that’s sales, and the investment putting all equity, includes management equitized asset really and also so structure balance sheet and are a that that’s doing. we we of have a we capital

Operator

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

Your open. line is

Mike Mueller

Hi. Yeah.

relates it range expecting the you year to or the are second As NOI the pulling of top down? guidance, acceleration full year consider the half a SHOP same-store you end of did

Justin Hutchens

have really, regards NOI visibility good existing through and cash looking I that, That the preserved we run we the to so at will midpoint really just to XX%. guidance, it that’s In runway. XX% are and the

around basis midpoint, the well. less same, XXX less consistent with OpEx as the performance have little original we year-to-date. than it’s Occupancy RevPOR, a revenue points, little at the and seen guide a the

the in consistent portfolio been there’s bit so it’s second obviously, a So and have pretty running quarter. this of because, little around we around it, in -- growth XX% in

a of growth bit So contemplated. is little occupancy

Operator

line comes Wurschmidt question Markets. next KeyBanc of Your from with Austin Capital the

is open. line Your

Austin Wurschmidt

Yeah. Thanks.

you I did year-to-date you real from Justin, XXX exclude hear guidance or assets is if XX curious balance of same-store have growth implying I been, and no Thanks. pool, need And original in was assets occupancy acceleration? with you the the am XX same-store around and for the then kept same-store more correctly in portfolio, had outperforming that basis the in expectations the revenue same-store NOI that pool points the then line? performing

Justin Hutchens

Yeah.

on just year consistent growth. first the where points first the XXX with perform to the point I are growth year-over-year on it in of occupancy, basis terms saying we half basically of So in expecting am performed the it supporting

pools, the performing our it’s year the In the of and in quarter difference little guidance. a in better full XXX is supporting terms original obviously

conclusion Holiday and that are So, that therefore, by taking demonstrated about therefore, that’s probably if pointing you talked in the Atria really actions the kept is is that really communities to the portfolio, address $X.XX less in, performance. to we $X.XX those are earlier, performance we the there’s natural

Operator

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

line open. Your is

Juan Sanabria

done question. seniors Two-part financial the And been the Good Austin’s well on about recast for NOI up distress customer What discussion Hi. follow on year-to-date pool? some as Mike’s then just there’s rates. concessions in question is housing. or discounting some morning. on some I growth new anecdotes and guess. it There’s about being One, same-store to the secondly,

competitively have -- the pressure front new what rates. on and that of you of doing if maybe your seen some curious have any just are there’s the customer if you rate operators on or seen So new themselves

Bob Probst

one. take me let first Yeah. the Juan,

in the described in ex of We positively out impact coming year-over-year highlighted impact Just XX the the XX%-ish the growth growing pool materials, first Justin of XXX points assets the this assets the pool rate. XX quarter. XXX the the half That’s second in the range. basis of on to

about year it all. think a proxy and so, impact, some hopefully, pool, As the you puts that’s numbers of that behind full good the

Justin Hutchens

pricing, been have portfolio they have that mostly as to They to regards ever in are negative increases can say year. historically. even I our the following In rent been releasing good our positive of within spreads slightly beginning the as big

We selling that. the Clearly, are key advantage take now. wanting in season to are of operators

there’s some constantly that striking So it’s occurs something sure look movement kind we price always we and of to rate. at during where this are we period, balance can that and reprice and operators at certainly, between make that look volume

to expect would operators certain I markets compete. amongst see try in to So to movement

Juan Sanabria

Thank you.

Operator

comes question of the Morgan Kamdem Stanley. of next Your Ronald line from

is line open. Your

Ronald Kamdem

Great.

Just a as two-parter well. me for

out part is been you pricing sounds thinking of certainly, hone basis down right, it. give here? are just to half they have peak XQ how But and changed I saying is part trying deck, can from increases a just trending, going are it just And period, to But just have will in really XX this you you did how on you looks it what hone in think one, two shouldn’t like But SHOP about? asked It season maybe right selling points. wondering, on slide are, you the a over are occupancy some the the the or different as rent through in took changed was way, I what us something, not signs at stab just power then now. That just what So, progress can back really there three-month the remind expected. a like take the and one. year for others in-place just

Justin Hutchens

yeah. that’s So will Justin. question is occupancy. This I first and with second the change -- in start the

key the looking As is portfolio, we with integration I we really the are Atria have behind mentioned, selling season. activities are Holiday looking by all for what for

Key particularly selling season July, going in months. June, are to strong August starts May. be

know way until When And of of end came you models are June the the you and end don’t disappointing. the eyes was impact that of results through bake all to really month. work, flow net in, rest and so the on it the would in have So year. the the the month

As mentioned, underway to have we trending. that address I actions

of it very In levels really for us pricing, quarter strong. pricing remained we a of didn’t first have terms in-house of this more rent increases. in as because still feature We it’s deck, phenomenon high

still our Those increases are very and very -- anniversary. around more you strong or part a increases, but strong. really not in of independent big generally our on not it’s see portfolio, living, so so those We see it’s X%

Pricing be to and gets is, as to continue a view, opportunity going our in only is power goes big better occupancy up.

that price some absorption We opportunity and are we supply-demand that net the to have for that what value. with will having dynamics in But backdrop close volume not we we sector think continue to scarcity that supports even and time. of is a has and going are into play

Operator

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

is Your line open.

John Pawlowski

looks in same-store the I investor there. that misunderstanding morning. page wanted last it question deck, Good on just Maybe the for was pool. I like Thanks. guidance am reduced XX revised occupancy to follow-up but

driving Atria sluggishness issues Are in just Atria? the broader So is -- the in there portfolio not there broader of outside occupancy. it’s weakness IL

Justin Hutchens

Sure. Yeah. a -- Okay. something. Good clarify opportunity that’s good to

are we mentioned So communities redevs moving away XX doing. those, we by Holiday are Atria, that we XX of from there’s

and redev remove they not them are same-store from are redevs, comprehensive would There that performance They are they actions that remaining to the pool. getting are within in the are help there’s but Atria improve the those, still pool. underway with also communities the

where opportunity performance. big So to Holiday that there’s revised an a same-store the remains confusion that’s the improve communities are pool, that, That -- area probably is. that of focus, within even have

Operator

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

Your line is open.

Steven Valiquette

But question on deeper just of reasons the underperformance similar in guess kind I Thanks. other occupancy ones of in Holiday is primary that dive IL and for Hi. portfolio. some these the shortfall. to the My to

curious like landscape. the competitive on Just

everybody issue. So in various other softness for not like reasons all color outmaneuvered by curious it just just market decipher versus curious pricing Just to these markets words, around the whether pinch was yet? competitors that was you Holiday particular was the able and is or there those markets? in share But that sounds hit in Holiday if maybe more that losing just just competitors Thanks. being feeling competitors been or was have

Justin Hutchens

Yeah. Sure.

really We say, up really the even to to reason big with markets, these come I or is macro opportunity in going execution. a market So a reason there’s point would down local to to it market. can’t keep

doing we make them are We to what more competitive. can

new place. put We operators in

drive are this. CapEx new focused operators pricing, putting focused in help NOI, The Atria very That will place. on on redev We are this. volume. is

are over all it. We

intent is market get beyond. to our back to So them and

Steven Valiquette

fruit Okay. What just be to do. like, performance with the as the within things lowest up the follow-up. list you hanging the quick to number easiest what’s in in, going improve thing coming are the all new operators one then as far a would to Maybe pick

Justin Hutchens

Great sales Yeah. It’s question. execution.

to in are One need of this. new remarks as capture communities the have prepared We leading to ability indicators and operator’s things ready is in They excited well. started. confidence of to in markets that the noted have these that just lot of the opportunity. true that, a get been that’s I I strong a and these do lot in

Steven Valiquette

color. Okay. Thanks. Appreciate the

Operator

Markets. from Capital KeyBanc follow-up Your Austin Wurschmidt question a next is of

is line Your open.

Austin Wurschmidt

taking Thanks Great. the follow-up. for

the at the I cap is this to year we about quoted? to at talked on of the You range, the reflective plans because $XX,XXX two, later you imply guess, I do and sell a portfolio rate to rate which basis, some $XXX,XXX the Thanks. sell cap that NAREIT $XX guys and then you lower for one, And that million would a mid-X% think a bed ability overall versus of cap a SNF mid-X% I price-per-bed mid-X% portfolio? non-core SNFs SNFs asked is think of overall flagged what rate. at

Debra Cafaro

Yeah.

that being SNF Triple-Net am enjoying the per So a I back within especially ownership that bed, better. some a trends rate Healthcare operating cap as situation is the bed little of portfolio the in of are about of unique and took business, of the change we $XXX,XXX getting and will valuations. each situations kind bit These are

of value-add part one and there’s and -- really and the this handle X%s But are these are -- the get to with these that. best the we particular the we judgment with is uniquely doing happy of and project experience the these low each on and unique outcome sales, portfolios of

Operator

Cafaro, the remarks. I concludes over Debra you. to for This A. Chairman will CEO, Thank closing session. turn call now question-and-answer and the

Debra Cafaro

so morning. Thanks for want and us thank again all I to this joining you of much

We are remain story excited us. about and achieving the that. opportunity We and and of ahead recovery are multiyear the and aligned around of growth all we the convinced capturing momentum

and participation forward you. seeing soon, morning. Thank appreciate we to So look you this again, your

Operator

thank concludes call. joining. you This today’s conference for We

lines. your You may now disconnect

Ventas (VTR) 4 Aug 232023 Q2 Earnings call transcript