VTR - Earnings call 4 2023

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Operator

Thank you for standing by, and welcome to the Ventas Fourth Quarter 2023 Earnings Call. I would now like to welcome BJ Grant, Senior Vice President of Investor Relations, to begin the call. BJ, over to you.

Bill Grant

Thank you, Mandeep, and good morning, everyone, and welcome to the Ventas Full Year 2023 Results Conference Call. Yesterday, we issued our full year 2023 earnings release, presentation materials and supplemental investor package, which are available on the Ventas website at ir.ventasreit.com.

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

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

call, financial a these refer closely our factors, on of discussed are for call comparable For our Debra refer Cafaro, GAAP with Ventas available supplemental posted and over most and our on to the the earnings of A. filings, on website. And Chairman reconciliation measures SEC package non-GAAP I'll quarter Relations to measures, to most this the the please recent a and turn to measures for Ventas. all that, discussion be CEO more to please detailed Investor investor this will those of also release of website. Certain which

Debra Cafaro

all power I'm advantaged want participants Call. across housing growing year expectations. commercial Full I and driven BJ. to you, large for share introduce Ventas to Year by and continues demand Fourth demographic the other Thank our and guidance discuss position pleased strong opportunity to our Quarter welcome shareholders results and Earnings growth as to the XXXX XXXX, XXXX multiyear real senior estate, our our of full

above favorable range growth, Let's FFO year-over-year of normalized year for we start share, full the over initiated results. We We X% produced full results of year February. $X.XX with midpoint reported fourth XXXX. the in quarter and representing the per guidance

normalized high the portfolios. same-store representing and occupancy. triple NOI same-store last accelerating SHOP FFO, growth which delivering results note from by unprecedented property our in of X% SHOP year. Enterprise growth cash research fueled $X.XX compounding on supported a over grew and outpatient lease by contributions NOI We our anticipated, was growth year-over-year reporting the fourth quarter, our and XX% were in same-store medical finished net cash year As portfolio, organic

invested our accomplished portfolio meaningful our in to great raised billion to took in CapEx a over integrated goals, progress our $X.X team and the XXXX, actions, made deal ESG capture $X VIM expanded strong our We ambitious a business. toward billion position capital, assets markets, priced portfolio attractively Ventas During successfully in together. demand portfolio effective

to As delivered shareholders, X of still health the XX% last total among We and return X-year health a outperformance care result, work REITs. care years performance quartile posted REIT achieved REIT we broader versus a years over to and do. TSR the row upper in indices more X have for

returns We our focused on total for shareholders. driving are

in fuels durable the believe growth growth As and of offers multiyear attractive value. opportunity demand Ventas senior an housing, we combination

demand we XXXX entered few positioned Let of we is demographic getting me classes third with in to stronger, believe are a that the asset benefiting of provide outpatient our XXXX create are normalized steady from portfolios. momentum. project net X% and growth FFO top share reasons puts medical research issued guidance from strong XX% growth digits. digits XXXX, the uniquely and FFO pleased to normalized consecutive are value. year to our consecutive same-store cash expect in double and in SHOP all growth to benefit the have of projected us lease Notably, year triple from that per of we REITs NOI the date. In Because mid-single we We another growth our

are superior expect situation, occupancy fully financial NOI FFO our As points rent half, and enjoying challenged, normalized supportive NOI and year-over-year senior context the positively, beyond. housing three, consistent operating communities In high-quality for and SHOP housing senior Brookdale renewals, Kindred remains one and what organic in we In could in and X with are growing both and XXXX benefit continued absorption they SHOP, continue same-store results. flow XXXX, our one, delivering and coverage on exit LTACs. In and in rate deliver demographic. of on SHOP serves year-over-year focused growth execution that cases, to, with highly pursuit maximize aging we large cash Brookdale's through accelerate portfolio remains basis to to senior is starting growth is senior generation over in focused to cash XXXX with improvements growth performance compelling should will into say lease strategy to presence support have XXXX XXXX value-creating case, drive two, our in growing positive prepared XXXX, and it's external ultimate we of portion another outcome performance, run XXX This of NOI growth. strong Kindred same-store have profitable that our already potential. and early trends, a look too organic January significant growth. In that housing; the a housing; a In our with we net time. In capture throughout inorganic growth be. positive is all large in second SHOP Kindred's

durable Ventas to led function SHOP of growth tools, that operators the in enable long, XXXX a compelling platform is team, senior over-XX population by platform to XXXX, the lowest a growth The yet housing on opportunity in also in our XXXX drive construction since step invest for organic has performance. in strength, optimism again in and financial founded Our supply/demand and us should and the starts dynamics, successfully. data advantaged

of over is our in giving XXXX high-quality in this with opportunities. As embedded communities seeing layering to a on XXXX growth on November, have value-creating senior focused markets housing that to market us organic on growth complete and million good We're intend to sight line half $XXX we with of our year. we first in expand already be investment investments discussed pipeline the as factors come rich should housing. of of market, and external investments by build opportunity confidence confluence we compelling senior There a

with going-in right replacement IRRs unlevered our Our at meet mid-teens to include projected criteria attractive for framework. operator right investments right yields asset, low costs market, that below priced

the Our expect capital, broader normalized deliver dividend objectives of are growth, and shareholders. In for delivered support SHOP year of value NOI and stable share share property another on growth sum, in scale and increase commitments our and XXXX, performance per FFO on enterprise XXXX. returns we business, to in capacity we growing drive and strong our maximize FFO normalized per

senior and value an normalized for on are valuation universe. projected across a X% attractive enabling we our engine Our population growing focused exceptional shareholders. housing, REIT large Ventas environments FFO creating favorably the the growth distinguishes and of aging growth for With and

to happy Now I'm Justin. call to turn over the

J. Hutchens

say SHOP portfolio double-digit U.S. quarter sixth NOI with for same-store pleased a same-store to led Thank growth for our communities cash delivered growth in NOI was by same-store year flow. same-store I'm by which our you, is growth Canadian was Debbie. The cash the complemented NOI XX.X% row. occupied Total our valuable guidance which expectations. growth over was and stable XX% the cash deliver above SHOP high-quality midpoint continues portfolio, to and XX.X%, a

with this and the results clicking growth the attractive are strong year. Double to finish were on We happy good. the year,

that Demand growth U.S. REVPOR points move-ins quarter, saw gains, occupancy, SHOP of strong growth growth. Furthermore, to Full occupancy and by with points from led fourth. occupancy key we grew were communities primarily almost XXX of although year basis XXX for in average by the of margin occupancy grew metrics, fourth supported already quarter including of same-store Canada, and expansion. REVPOR, quarter. with year U.S. demand, sequential XX contributing prior outperformed points this the basis types year-over-year and across levels strength points. Our X% asset to was occupancy OpEx of by saw grew our SHOP XXX the to SHOP geographies revenue highly third X%. The growth across basis year. expectations occupancy accelerating basis the over growth XXX% all basis points. occupied, XXX same-store

basis basis on by performed and led points have As growth the the in U.S. if Sunrise OpExPOR fourth that X.X% a XXXX. assessment X% higher overall. REVPOR reminder, and occurred and XXXX would in year-over-year the for well XXX points was been with adjusted quarter special XX

in again, and teens the to mid- excited of fourth are NOI XXXX multiyear to start. Once expecting and accelerating, a portfolio third to typical help the better growth higher engine strong we occupancy on ramped to strong fuel drive pricing overall expecting SHOP at XX%, growth move-ins we trajectory as with continue Momentum growth year-over-year. basis the grow performance, are expected Looking our the quarter points year same-store portfolio. than XX%. XXXX, NOI get accelerating consecutive continued with over forward high occupancy to NOI in while expected our growth to end to our seasonal and to double-digit be is U.S. XXXX, of we off are with SHOP The XXX results growth,

and the to and are proposition support to continues a doorstep of of our growth and strong occupancy year-over-year. points care a average and our execution and basis volume revenue around at value services that and off seniors growth start, to demand. the performance about families. price demand assumptions already This quality X%. January serves provide growth continued solid testament communities growth growth midpoint of range our growing by XXX demonstrates which The XXX drive points, puts key the total operators strong about basis The and X%, high occupancy of to their REVPOR is delivering occupancy our

season. OI growth. properties bolstered drive We year initiatives in to expect strong by and a selling business growth expected with rate and the be our XXXX OpExPOR inflation. We around structured is Ventas performance normal throughout the grow to line renovated key to newly occupancy

as creates price operating drive moving We where the follow are sweet leverage. to will entering together occupancy and are higher spot revenue. expansion Margin occupancy

balance anticipate We a expansion moving further have creates time and higher over operating are struck leverage. as occupancy margin we where together, they

which playbook propel to We XXXX. us momentum operators' into and and will asset delivered our active capitalizing our execution, are strong finish XXXX management

build propel even We NOI and year, poised the XXXX year-end expect beyond. that strong means are should in to sequentially further for this we which throughout us

senior our on the delivering Part which is X organic We of strategy footprint. our housing X expanding growth, my are and priority. is #X part the

on existing forward success process. key our selection investment asset, activities help growth tenet is the addition operator right we right in In the capturing of having housing. portfolio, OI our approach. market, to to we A are We're to to strategy investment external value-creating right tools look our bringing focused senior

transact, senior investment are creating to continue Sellers be Our NOI-generating in and priorities numerous top deals. existing our motivated actionable to acquisitions. real estate housing CapEx

projections. with senior supply-demand with We low expected profile, opportunities absorption and seek located in are net affordability housing meaningful mid-teen unlevered strong IRRs. are to communities that targeting submarkets compelling We

the We with are AL primarily in expanding to plan performance memory proven existing our IL, footprint communities. fast-growing care and combination increase with partners for Ventas,

investments pipeline several as growing, in our sites. potential have we Our interesting is

doorstep. criteria, actively year our that adding I is working as look that progresses. In meet on and our the forward is team summary, demand Our XXX to transactions million at exceeding to

and see to throughout to rich acquisitions. is pleased the beyond. quality year with the on U.S. the external growth growth. I'm should valuable ahead. year by and SHOP opportunities are the and the support continue in beta, growth The both to through Bob? XXXX led We complemented with fronts value growth forward highly creation Canada engine portfolio exciting low XXXX by high looking be and compounding organic

Robert Probst

Justin. with and close performance, you, We X% outlook. the the of $X.XX the XXXX. promote quarter, to FFO share Thank with highlights by our share start our QX strong, touch reported for finished in received a some 'XX on prior accomplished adjusting sheet year, with we all I'll fourth in I'm our are per on the we 'XX. normalized year pleased XXXX saying versus going of increase in balance

of display year with SHOP approximately per items. The when For total trajectory we senior in unusual million. fiscal adjusting growth prior share by or housing FFO over year-over-year NOI year-over-year full delivered multiyear increasing growth X% for $X.XX year 'XX, was in normalized the 'XX, $XXX the

our company We growth also one year-over-year, organic total history. of is growth NOI over in the of company's same-store reported which fastest X% cash rates

research in impact Our range, FFO at the share share that $X.XX per quarter to OpCo end previous $X.XX cybersecurity our $X.XX of high Ardent fourth our and in normalized included revenue XXXX the investment was per guidance of and increasing $X.XX guidance. Pete nearly of was XXXX, growth, cash end and medical our NOI at in X% range. continuous prior contemplated year with guidance of same-store our delivered another in not the team high Bulgarelli outpatient compounding

activity Lillibridge in capital, its Lillibridge of refunded notched scale attractive capital tenant record XXth markets leasing also the led satisfaction. among diverse and which used key capital the our across raising A business, geographies. of a X tenant satisfaction to few overall and top XXXX top satisfaction, the remarkable management retention medical that over sheet. sources in debt XXXX, XXXX year of result placing we percentile our quartile Throughout maturing consecutive the strong managers. I'd way. property outpatient of in it comments like XXXX, driver is part attractively-priced raised tenant share This In Ventas' to fourth of Continued property for and access rates. in multiple million on balance $X reached at

net in billion our a a EBITDA SHOP debt result, of a SHOP and growth improved ratio year-end $X.X had the cash relatively quarter, XXXX to trend X.Xx beyond net also the of $XXX to attractive The debt-to-EBITDA and by we and Ventas' we in million business maturing As expect hand. have opportunity. liquidity position multiyear led modest in robust continue NOI XXXX NOI growth of XXXX fourth on

normalized year benefiting double digits, the powerful our with classes demographic NOI Let's are demand, growth same-store from in SHOP outlook. our the mid-single year of asset consecutive to conclude in XXXX third full cash digits. are we growth consecutive the and of pleased another year FFO project Because

we attributable XXXX, of $X.XX income net share expect midpoint. common stockholders the to at For per

Our by range X $X.XX or items. $X.XX be share year-over-year FFO XXXX to normalized per $X.XX bridged year-over-year can increase per X% the FFO which share $X.XX growth. The represents is midpoint, guidance at

million per expense $X.XX is share is capital increase $X.XX which year. and This year-over-year $XXX of SHOP, outstanding led property an offset growth for consecutive a expect the by growth property NOI by to expected from share by impact interest again second grow the We per $X.XX in higher XXXX recycling. partially contribution over

cash led our SHOP between and XX% total same-store In NOI same-store NOI by of X% XXXX cash same-store, to terms we of XX%. in grow X.X% growth to expect company

phasing. are investments Our includes final guidance remarks. his described our by senior million, in range housing A mentioned largely high new in and NOI low XXX which end of of on also FFO interest and rates. Justin property potential The note our expectations changes guidance

occupancy that FFO expense assumptions 'XX I'll should year, 'XX growth remarks. outlook exit versus is posted found beyond. A and and together We the an expect the higher team 'XX, to close, by to [Operator our all Instructions] With same-store more to in fulsome first normalized our driven And the SHOP, cash of and year-over-year in win in the to the through entire rate the NOI 'XX and resulting attractive in ramp To our our key season selling stakeholders. of the of growth enable in interest SHOP half run discussion with that presentation ready call website. can earnings be prepared turn that, the guidance Ventas concludes back operator. acceleration

Operator

Markets. from [Operator Instructions] RBC line the Michael Our of Capital first with question comes Carroll

Michael Carroll

can that you Medical that your mean lease? in occur of could coverage has update improvement are XQ is Kindred Kindred had 'XX. quarters? kind I Debbie, and additional into XQ on you this Select just of strong provide the grow next you handful coverage some highlighting or that improvement some in of really highlighted performance that know there initiatives, the some that implemented Or data implying also can growth -- Kindred in is that Ventas points ratio? over has improvement and EBITDAR I highlighted, some color business

Debra Cafaro

on we about initiatives to performance what incentives. the Right. those they And I time significant the would renewal you that improve Mike, communicated have earnings most thing tell has XXXX capacity and the underway of Kindred assets obviously, about think beyond. us those to is expense in is in -- the operating and that that at important revenue

Kindred's it as see business, significant improvements Some it's shows take of XXXX are early example same We XXXX. to possible. fact, and initiatives improve the too surely those, are say, But are take it. in in give the we will, on working to public in to a company extent And that can whether EBITDAR they hold. starting an because really hold Select it's to and and

Operator

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

Nicholas Yulico

Maybe just for Bob. a question the on guidance

of could terms unpack terms refinancing? sure wasn't that terms in if of the in just perhaps you're any on up more. you year, in but sort of In leverage this just assumptions debt is going of assuming there you anything also a us expense reduction, some interest there bit change give of can little the I

Robert Probst

Sure, Nick. Yes.

year-over-year. I into debt mentioned the that big of refinancing rate is environment. So piece $X.XX A higher our a

debt due in mid-Xs kind of quite the billion -- have year, call that years having We from of it and $X.X ago. this coming you debt issued range

So effectively, half of in the midyear of in we're refinancing that we lapping so dilutive. The the the have environment year-over-year that volume that, a current have impact we is year, of debt transaction also, 'XX. last first ELP

in note us, So together, on it can to guidance, model new interest know to expense but because be those which are included that try I'd drivers. increase interest the X those to I help order things describe analysts' year-on-year the tricky, expense. is we've

Operator

Our from line next the Rich question comes Wedbush. with of Anderson

Richard Anderson

I could Speaking What in process, call portfolios, come any cleaner a some in that of XXXX kind if also it some Brookdale and of with -- next of that be year does maybe temporary in of Are but year, of have one reset you've chances Santerre to when year that X more activity such the there be drag make deal that with won't picture. addressed could you activity are of other and sort -- that. you have of those XXXX, situation Kindred, the there you can this do so that around, that buckets? thinking those issue deal XXXX will a this on to preemptively to sort some this sort

J. Hutchens

Rich, it's Justin.

Brookdale. me start with Let

have we is Brookdale the in year, will has portfolio performing That let lease 'XX, end of 'XX. through well. extend and starting lease the So to end us then a and run this new know, lease the the opportunity at of to the

we around good and X,XXX has the of upside think that improvement, over next have growing few basis continued in resides coverage, is said, years. points I markets coverage As

So a that it's position we're but good how a there. strong situation. We'll out, in see plays

Richard Anderson

through, The yet long there work preemptive there's curious if sales, just I'm that work there's Santerre to has situation, term. but incremental some be working some understanding things you're as be kind maybe There's that you asset could want don't of well? done. there

Debra Cafaro

mean, off I and of favorable some we've are Yes. gotten -- start, as kind we at pricing. already favorable know, sold to a assets Santerre's you

Right this we'll of I say be in to Kindred, pick thinking of But what and to form financial into we'd to next or we're this early think more benefit have now, would it's that that. And whether year. have our visibility or lease year. terms then next but not that's -- spots able the say, a that impact valuable continue asset. about and of May of year opportunistic really, I we that think we'll take, too the that XXXX, be on a certainly runs year,

Operator

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

James Kammert

extend what of the come on if to were Kind May, Rich's process sort just building In this hypothetical, not how alternative trying be the as question. Hypothetical, of arise transitional much has Ventas maybe might what that a might again? and any actually portfolio understand. just shift Kindred be or to operators? you cost better worries associated that, investigated And would with of kind

Debra Cafaro

ago. are was kind well it's XX yes, talking we about because funny We're really what is years look, But I years started, be after this. to doing I this on prepared. of experienced XX Jim, this

so that And to always and try can focused will think a before, really I makes are kind and subplans, -- really are it tools XX there optimize puzzle, that, in scenario. execute assets And It's kind course, will we've have total, we alternatives that's what would you this to it's we plans have ready have NOI say. in that of we're of assure we the the and on. be We of of lots I used only lots I manageable. And of that assets. and of

Operator

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

Nicholas Joseph

It's here Michael. with Nick Joseph

what it's any Just to discount then range, IRRs, going-in on the are. seeing acquisition of XXXX? would what kind on a plans just external there? funding in opportunities the that the opportunities what just is? mid-teens I'm mentioned curious the but you're seeing, you're What yields And just replacement thinking growth you're for sure you costs be but

J. Hutchens

I'll part. with Justin. start It's the first

in XX% that XX% in We have We're We are the opportunities seeing replacement discount target good seeing costs. to opportunities discounts housing. around senior do pipeline. to a

In IRRs. mentioned terms of you mid-teens the unlevered low in to return expectations,

tend there's We there is -- rate also down, up little obviously, and now, the around the cap depending the a bit and see X% to on growth of -- of is component right a of We movement that. asset.

be housing have to senior sector. and X supported So accretive in the is growing by in strong the growth is which this demand neutral asset, and the year goal or then

Robert Probst

maybe I'll question. on And funding touch the

returns, into to those of sheet attractive think Nick, do indeed, and Given with $XXX million our we shareholders. financing we And of those the alternatives and think achieve an types in can built on delevering we about we've investment attractive And for that be can both in guidance order that. proposition investments balance process investments.

Operator

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

Juan Sanabria

there's the lease, FAD. other question wouldn't results or just the that expense. or away a any about that kind from to you if items say, should I from interest that on, about? be the And you're think commenting that's me thinking that mind if on on the between of the line if through initial trying guess, expectations maybe I lease, to fourth 'XX running numbers see I'm Street. on some kind items of we I should relative presumably amortization wrong. But goes of 'XX Anything changes, Brookdale Just 'XX unusual the unusual correct any expectations matures, noncash skewing below quarter of

FFO, You great would parts any FAD on be well. gave as normalized but the piece

Robert Probst

Sure.

changes any of, is situation. the terms you guidance to doesn't say, So first below in line the say lease thing 'XX in the items, assume as

business in 'XX assumptions. in so our usual And guidance as it's

that depends we itself. restructure would we amortized. say on If there, be the affected, to deal extent amortization the consideration is Brookdale You're it a years could outcome that received that correct to ago but of number ultimately, be deal a there and the an have being from restructured in

in this with FAD, FAD of -- I to FAD, would line I is operating grow expect year-over-year. say would growth FFO terms In

Operator

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

Joshua Dennerlein

on just segment. put and was Can you what in litigation Slide at there's to class related out, over to? it just like saw go XX, looks looking I your I a SHOP the footnote that's presentation related you action

Debra Cafaro

Josh, sure.

J. Hutchens

Yes, it's Justin.

-- California, issue adjustment to don't in course view the relates action like ordinary business properties. involves the think especially as primarily suits We our come up They an and it's this FFO So from our the is don't be class business. Because we some suit, really of the -- to to they in California. appropriate. time, in time to do core relate to performance, the adjustment SHOP

Operator

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

Michael Mueller

a of for assume the you for this of Or does occupancy more it a SHOP you guess, cadence of I to experienced little Does seasonality? bit at Looking normal compare 'XX? it talk just how the year. in Can occupancy? the, year about guide sort what

J. Hutchens

It's Justin.

front for anyone in I the deck question. in to Page There's has it. this. them. It that a that great X So of articulate appreciate helps

midpoint year seeing we that and our and seasonal of fourth points the of basis occupancy acceleration to solid had guidance. year-over-year, at supportive starting in are results the which growth January. We're than encouraging the is points starting basis occupancy in and was included in really third of we XXX the occupancy better quarter, led which had the we at We quarter, So SHOP growth far, points fourth XXX year-over-year the year-over-year basis in XXX at XXX of basis already move-ins quarter and which in XXXX. ending points so typical

move-ins So of the as to of beginning the good we growth, and versus well. that prior year really have strong also, We've have in run see fourth been occupancy they're as year I quarter. a strong the move-ins continued around mentioned a well. at XXX%

Operator

Our next Stroyeck Street. comes Michael the line from of question with Green

Michael Stroyeck

outcome in the be I'll do I magnitude if you those going ultimate assuming of next the return this early to slightly in did future back near say a order as sustainable required ask way. Kindred reductions for rents it's those know today, on rent level, So operator will be, of to a in believe to this you different hypothetically, to what down too try or operations go but properties? to path, Kindred, will either and what the

Debra Cafaro

Michael, we EBITDAR -- remember, an important the it's early too And in the assets. and again, own those very own we that's that's important. to assets And say.

have in Kindred, We the and trends out as situation, Brookdale to hope favorable trends have favorable XXXX. you to look in we

into think a lot about more with more be, you there's to as going that share facts when the and be outcome happy So goes is it what the we'll develop. to you

Operator

Our next with comes the Connor Fargo. line Wells of Siversky question from

Connor Siversky

a want on in earnings to conversation the to assets. loan outpatient 'XX to back specifically jump call the I QX medical regard equitized the portfolio,

that into a going outlined to back were you improvement You to occupancy plan in place those bring assets. put capital

assets, return what I'm time, for So those plan? improvement wondering, this look are a what profile like, looks that plan quantify at medical capital then if outpatient for you and could occupancy expectations what that like capital could improvement

Debra Cafaro

many overlap I our get mean is, the those sentence, think in we'll own I topic the to with the respects. and answer assets key point, portfolio

XX%. effectively. the occupied was managed under Our portfolio is very and by over and Pete This XX% team

was it turn as those So take over get self-manage and the we and now your questions. to occupancy I'll significant there upside in And there -- was team there to is assets.

Peter Bulgarelli

Yes. playbook. all for using that I our been management the Lillibridge We've think, surveyed gives We've Thanks, renewing This extremely locations in Connor. active XX to excited transitioned portfolio. Pete. is It Lillibridge upside. portfolio. the tenants. ELP haul, the and long the we're portfolio of that over We've Yes, us, absorbing

specific we're of have each And plans the We really asset results for buildings. happy far. with so the

X%, plan well underwriting. above we're and occupancy increased also in have about We by our

we portfolio, have in we forward this on So 'XX look as to about occupancy. it increase a relates to how X% expect in

capital And some a and we're so I in as-you-go supplemental wouldn't of have seen the you've kind about we'll that. do some tenant commissions. of common And in and upgrades areas the improvements ICE so We'll of will do happy forth. normal the more And we And here. -- very bit that.

the for of ELP being expect don't out anything I So used portfolio. the capital -- that extraordinary for

Operator

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

Vikram Malhotra

quick, can indulge I housing senior Just X if me. you questions, guess,

'XX about but you First, harder. I'm what be of expense looking wrong, also acceleration. the harder may the I comments just gives think better, comp I guess, kind confidence, because into and that or I exit gets comp occupancy will get wondering the

just I'm the one. And housing. confidence number you So just acceleration, what senior of number on wondering two, gives

ago recycle a an where Maurice generating had wondering, portfolio just investment there Canada X% through get great maybe you asset that same-store guys to opportunity a next into, U.S. say, into the growth? is in a though, year. in like I'm arguably while Is higher could You investment. minds now your the

J. Hutchens

Justin. It's

the start let at me year. the the jumping So end of off with point

coming what's have is that know, Occupancy, we a But significant We're our we're So in outperforming plan. executing that to what's underlying off growth. Typically, key we're a kind because see the what's growth May the in the this seasonality. it is from good to selling see on provides which of which we performance next, there, the September is occupancy that period, lot pretty happening season. demand. most important demand numbers is the you year comes start of just occupancy we already as typical

start then occupancy NOI. And we're a on that when growth clearly, NOI, the higher that. able year, of be ending end grow for launching when good a you making top you at that the run that the point build that up you more it's the to we'll XXXX through the adding that is gives and occupancy. have you pad So us then year And confidence during

U.S. when to an XX%. inflection band at looking stage in early expansion. the of up, -- is you mentioned in is the We're that and as goes 'XX. the and occupancy lot most margin we're forward place XX% we're where we just U.S. our Well or right The starts around also grows, you operating the growth that next we're grow, thing be Canada. at is occupancy a leverage -- It's margin occupancy occupied. in to point, in should more as as could -- other And expansion so year we're -- well happens of margin XX%, a now,

number, 'XX should longer. not it's it demand that and be this So we and the should support think is runway there's the good then such the executing, for even we're growth, -- and help

So what there. we're we like seeing

expand really Canada, it in terms a of because occupancy light we core high physically. It's it glad a There's performer Groupe footprint consistent for and good that In good a Maurice can margin. It's we markets. time. continuing us. growth is in that a you do And and opportunities is to over with with most asset, It's Canada. demand portfolio in look of these in high very execution, about Le really forward the to it I'm And very operator. there. and relationship and the been great asked of have Primarily quality that offer that, terms really, quality compounding also NOI

Debra Cafaro

overall percentage do represents that, investments, be will shrink And will emphasized also, that senior obviously, as denominator the because the the growing of and Ventas portfolio U.S. we housing. new SHOP and on

will that So change impact the as well.

J. Hutchens

for blend growth that XX.X% to high-quality, same-store us opportunity the grew mid- actually, the other portfolio. and a portfolio, is expecting stable. And the growth It's other comparable little to in engine. And U.S. and have my year stability, we're where you very teens 'XX. high-performing less well that's growth high pool, is hampered last the anyone. But a They U.S., when Canada it's is. quality and it in similar hampers obviously, our as I'll growing is it and -- okay, high being And as the upside X, our bit, make by take one of this That's what to Yes. NOI and that in that points. favorite

Operator

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

Austin Wurschmidt

a Kindred's like least plus. lease and master not of I guess this all here, only years, sounds but NOI these It X% no-go XX% after it's for at Great.

Debbie... So,

Debra Cafaro

'XX.

Austin Wurschmidt

you that you year. acquisition can before in or chance given move But the you want sight, into in curious, And my I plans those equity time. maybe -- confidence laid ATM of had? not out. I under a half of capital year did the guess highlight of late have there's first a the assets And the you bit. for kind in to highlighted on hit fits stock the And of piece and kind increase, the the $XXX sounds That's completing discuss that given million and of the where investments target-rich you I'm attractive given maybe line just about environment even little issue why could it favorable that last Bob more cost plan? like you funding of this

Debra Cafaro

stated. Well

about Bob, Bob, think, I to do talk want funding? you

Robert Probst

Yes.

of mentioned this returns As investors that earlier, when started numbers. NAREIT continues think the this the our even to changed. to a make capital that look, good rates with I shareholders consensus our view view, at investment. we're at seeing on be have day these discussion you the And look investments late year And I last really current attractive point where from in cost we the that's cap at X at

in being built And effectively, we've important a of into so of opportunity disciplined way. that million. guidance over-equitizing That that, the I is said, that's that our also narrative. alongside very the And the mentioned $XXX part think assumed. I this And in

assumptions we in there so will of but the around always, market. And some is a are -- all, prudent there that, be function very

Debra Cafaro

be multiple investments asked you with top as I FFO very all really REITs, capital glad layer focused giving it an represents that the that we too, really guidance organic I'm and effective on that And improved because housing. have the 'XX, to on aiming and story benefits XX build into it, think of reward attractive of are in cost on a is senior and we shareholders, growth could that Ventas

Operator

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

Ronald Kamdem

X-parter a for Just me.

helpful was on the slide. the slide through deck. realize it, Just you recovery removed looking I a NOI pretty opportunity, One, it was looks the which that guys like

be has the #X still getting occupancy to the with good the about $X of that or views but pretty either the occupancy Presumably guidance, on the So margins back I guess changed anything the question conviction story redevelopment last asset guys that recovery that of time. you dispositions is see it's slide? And don't and the a or sort because provided then I part of to sources question uses CapEx X, guidance the really, sort pull #X, feels billion. the would question and

a more about to more million issuance. redevelopment thinking minus bit So little little even could about and dispositions acquisitions, or you of do you're CapEx, know bit maybe specific? you're how $XXX specificity equity We but a going be an plus

Debra Cafaro

I'll too, I but give to Justin it to answer. Slide, liked that

J. Hutchens

high Yes. us, I moving focused back that. the on on really -- kind frankly, it's getting like lot XX% and beyond a the demand backdrop not we're enough. we supports what can to that of see It it. occupancy and ceiling be higher dawned But we're because really prepandemic quite and is is cash flows,

think the on put more the more don't up around putting per We got time. We've portfolio. $XXX little year in -- SHOP So to we rate a ceiling it's million want million opportunity. run over a established. We're good $XXX bit a

looking we to to move try decided So forward. on focus on,

I want I'll something hand you of to XXX did to One in the those just to that 'XX, 'XX. Bob, the the the mention mentioned in -- of that, by October senior before I CapEx complete on over on throw things end and housing. We want projects. projects of just started

for another then or by May And the by year's so of portfolio our hopefully, selling strong about had the season. XX there's key of next refreshed. this that run another a key really completes season getting and think selling group XX so, beginning of we We

increase competitive. to be past well halfway to the So like done do more and and we're opportunity our opportunity

Robert Probst

a about our to guidance, in asked redev. especially good segue you the That's some of assumptions

start Let's there.

said our of cash #X behind is redevs. So use investing we senior housing

returns. from the the in that coming seeing growth attractive You're that's

numbers in to normalize dispositions call calls are expect current as of round this to projects guidance assuming, complete. Other in I'd I'll capital redev and million XXXX. redev. some $XXX last come that our $XXX we mentioned these reduction million. over year it we're spend should is $XXX last assumptions, recycling, the time million going would million And So time, over previous we are that normalize after of year. again, down, year, starting was projects $XXX in Because

in So And a out senior both very million. assumption, earlier, that assumptions the do I assumption. $XXX significant that. the share underscore what reduction, The count some investments focused in housing are on equity in of on noncore To and that. have, listed finally, funding the mentioned we our that assets those comes then is of and just

Operator

with Our Anderson next Rich question from of Wedbush. line comes the

Richard Anderson

ask heck. the what but going, things question. unanswerable keep I to perhaps want to an Sorry

between So you a guys there. There's kind of NAREIT in normalized lead the and FFO. FFO league normalization in lot

I'm presentation You that's really the it factors there's of can it difficult going a tighten maintain your well, it guidance offer to either we like or if -- it's does to perhaps I than $X.XX for and way of sort don't with is does to offer were say, model, to it degree something do in -- put feel lot to do not what way point. guidance? year, a year, guidance. To during it you there way. Is our normalizing can know, -- I main be, we that something know, needs unanswerable, movement process. your to of to an change opportunity this I let's in have opportunity have that we're the allows more but up, to Kindred materialize in complicated your the

Debra Cafaro

that and as it and defined such. in, is we an on to comment that It's this we would use further. league very we lead -- very want don't we I the category, don't the area about in league part can one mean and I any it is are disciplined a about lead and talk

So, Bob...

Robert Probst

[indiscernible] And across would and that numbers. our measuring of FFO by I very well, suggest in I peers, between benchmark, FFO you to normalized would NAREIT they're similar terms [indiscernible]...

Debra Cafaro

You benchmark would [indiscernible]. say

Richard Anderson

hit is How hit number, predictable you confident to How often you that number? do How that to is the guess, $X.XX question. you? I are that

Robert Probst

Which $X.XX number, Rich?

Richard Anderson

NAREIT The normalized [indiscernible] FFO. between and

Robert Probst

see. I

warrants. I'll Some of market-based, highlight which is just Brookdale those are importantly. one,

adjustment NAREIT And warrants, is predict. of a the we between normalized. [indiscernible] there's quarter, to business is it We have Brookdale think make that right underlying of performance that in in to flows normalized every mark-to-market the of million impossible that. adjustment, through and the lot that's volatility of But and portraying and and FFO $XX absolutely terms

good So that's example. a

Operator

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

Vikram Malhotra

on? is this a just that in here that the rates the one-off line? from but that wanted just for, million could those if Or costs to an like Number there liable number to there's fees, forward that that is accretion know? the you hard legal think legal clarify how Is clarify about to of bottom flowing normalized. two, were Ventas terms cap just -- $XXX more potential it should hear just like won't I and and may fine see we about -- you one. And associated we be potential and are acquisition, how is going

Debra Cafaro

other will minus typical mid-teens attractive, on over fund, we will that obviously, on housing. into those the Okay. by year a affects X We're talked to plus year counting about opportunities, acquisition to to think we a think, the and It's and how or of growth want IRRs be -- accretion, that's lot IRRs, leading terms I have, cap going which, the reserve And time. are our pipeline think not but growth our expand REITs. rate rate, again, presence I it we low be us investment at is the in which and litigation X% enhancing senior affected how determined. in And accretion depending looking of in we in that X, U.S. rates, Justin rather

Operator

final the Our with of line comes Capital Juan Markets. BMO Sanabria from question

Juan Sanabria

little you background is Santerre outsider's if elevated happy you the -- SNF if fourth SNF a latest on that business of how a curious comfortable Or there, assets disposed in around is? me, to quick bit just looked to again. with those. follow-up still was fairly why exposure? a the what's a as have of focused you perspective. And about that? I quarter cap to the guess, the hold which remaining thoughts kind of I for R&I chose X The thinking dispositions Just you on from Are your sell curious substantial, rates what and are then

Debra Cafaro

Yes.

what mentioned, assets some the we'll on purchase God. that. And with better SNF. on capital the -- Santerre portfolio the -- be think the were We've than was been others pick part, happy -- of we're the a we time. in of attractive sold have Including and the disposing of valuations, I our universities bed got per who spots as cost on over certain we've we'll acquired options latter that So embedded with at -- very the I

them. exercise So to they chose

all that's that was. So

Operator

for like Cafaro, Chairman now would CEO, to I turn the over Debra to closing remarks. and call

Debra Cafaro

everyone want Ventas, joining again Ventas, to seeing have in your answer support to us to of questions. All right. really a you chance a Mandeep, and It's very thank with you speak and your and look interest you your thank I much, to today. appreciate we pleasure soon. for forward We

Operator

This concludes call. today's

You may now disconnect.

Ventas (VTR) 15 Feb 242023 Q4 Earnings call transcript