VTR - Earnings call transcript Q1 2024

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Operator

Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ventas First Quarter 2024 Earnings Call. [Operator Instructions] Thank you. I would now like to turn the call over to BJ Grant, Senior Vice President of Investor Relations. Please go ahead.

Bill Grant

Kathleen. you, Thank available and Results everyone, earnings the First which Ventas supplemental ir.ventasreit.com. website Good Call. Yesterday, welcome we Financial are materials presentation Conference package quarter the issued Quarter Ventas investor at morning, and to on our release, first

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

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

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

Debra Cafaro

you, discuss the opportunity year, all XXXX colleagues, call. senior welcome strategy I'll want share for to growth execute our as housing actions our First start XXXX are stakeholders, build. good improved on describe in other of shareholders the the earnings and On of and Thank taking multiyear I our Quarter participants to Today, the my to behalf to our and we our create BJ. value outlook for Ventas

through on housing; and cash our with over of, share senior in in this NOI. portfolio; growth portfolio. We our momentum, drive reminder, normalized per our housing focused flow our first, is delivered X-pronged senior value deliver capture entered FFO a enterprise Ventas $X.XX billion organic third, QX, $X throughout year composed annualized of As strategy and and second, in investments

are property Move-ins SHOP occupancy our portfolio X% accelerating, points came in our results portfolio strong in nearly elevated the Notably, portfolio same-store demand-driven by we SHOP taken from as providers. favorable the in across actions care basis supply-demand our gains over markets were fundamentals and at XXX in we've year-over-year. led XX%. of NOI same-store occupancy our fueled growth concert with by Our SHOP gained

million second benefits benefiting As the RevPOR The through construction are our over construction. In XX free XX% and a Accelerating lowest population X opportunity individuals of percentage multiyear their housing by families. of largest from Ventas' of starts. new from for we community portfolio, starts occupancy senior housing, demand-led SHOP they XXXX, in is the yet are demand owner is the decade, under senior residents to that housing from growth expected gain housing and provide to inventory construction the our are valuable grow senior to over continues underscores senior as the both competing communities traction in growth.

these the support to housing. of growth a long-term of highly combine favorable for trends senior business, biggest All part Ventas' runway in

We the in capturing our space. also to senior by want housing in value-creating expand footprint investments

closed have career, strategy, we a affordability potential, second such occupancy making meet $XXX pricing of that rare attractive good IRRs, contract compelling million of replacement expected and going acquire we portfolio. yield, Ventas, the assets of of where continues growth. expect of focused our strategy, and efforts to going-in investment markets cost. Over the below investments our this has flow high are see favorable growth we investment at we targets Year-to-date, in placed or relationship, third On are our further in throughout investment prong under make can to plan been opportunities my unlevered progress. about also our we it cash our the of driving team's and market in Due our progress yields on grow, conditions, our high to and balance on to year. Across element pipeline environment our

other now like In NOI, is SHOP, million generating our in two are there to annualized business. and which to $XXX I'd outpatient cover: medical areas over research addition Kindred and

for our remained stable Kindred LTAC, expense NOI. representing lease XXXX. First, projected rent trends revenue respecting coverage trailing of X% approximately The has improving performance for XX and the and Kindred

keenly with the continue X-month and more May. we We other information have lease and Kindred property, in and date to our Ventas the a providing recently to lease outcome we We our to you active parties maturity. We extension forward optimize soon as renewal notice with as are the the from decisions can. to hearing interested Kindred and know XXXX of discussion value end you agreed NOI following enterprise look for of April to

shine Our and delivering and to And to from research benefit our it's medical outpatient demand. institutional competitively compounding continues complementary enterprise. business contributions strong advantaged

strong value stronger. The the improve senior the portfolio a As year. right our in this of for Ventas Ventas point, population. to for advantaged leader getting is that a real pleased is in aligned aging estate around serving growing is large creation On are focused housing, because on is outlook we demand for commercial team opportunity and and us. full assets our front across

to same-store raising FFO increasing X% at guidance with share, midpoint. And cash that, NOI to turn XXXX between per to normalized happy Ventas' $X.XX and over $X.XX call our full are XXXX Justin. total the guidance the year We and I'm company to

J. Hutchens

NOI our Debbie. a I XX.X%. The SHOP you, metrics, portfolio that same-store Total including delivered communities cash pleased occupancy, solid same-store off our start. all to and strong am report is growth across SHOP key RevPOR performance was SHOP results to Thank OpEx.

by basis points of XXX gains. grew occupancy saw occupancy quarter points by the first basis The same-store led XXX year-over-year which U.S., SHOP

types, year, normal the U.S., start operators. In the broad-based at geographies XXX% to and move-ins portfolio same-store year versus in had a contributions our strong were at have led patterns. across letting with elevated XXX%, independent seasonal We move-ins outperforming by community prior

performed than insights strength the and to in quarter a start net had vast to line. RevPOR in lower due we I X double-digit experiencing. tours the our Operating outperforming prior leveraging operators, positive operators, analytics from to levels, hiring expenses efficiencies drive have our same-store U.S. are We grew our months insights XX% of we strong our leverage in were momentum and continued said, a realized year we cost been This powerful the the by data the performance have for NOI move-in NOI consecutive delivered Ventas that portfolio, and contributing and outcomes. Notably, their row. and X% Sunrise, was Ventas' broad-based highlight same-store year. for excellent expected to cash cash results. I'd year. our adjusted performance really Discovery in Like continues OpExPOR Growth our continue our great like is services when leap delivering seventh I'm for to contributions from SHOP and and operators X.X% which to and experiencing care Sinceri, portfolio all-around superb are growth. with performance growth Maurice OI's Le which and in particular, the platform. U.S. to led in sets happy OI X.X%, first quarter Groupe XX%. cash and flow year-over-year complemented stable by by was communities, Canadian valuable deliver occupied was or high-quality

expected to our in portfolio, our range, start about year growth by about guidance which are strong the XXX is at occupancy full with than the XX% and points, originally growth XX% that X.X%. year-over-year. happy still on SHOP XXX of average drive of X% OpExPOR total expect slightly raise than from NOI forecasted key to U.S. up points, over our approximately grow growth Given same-store The which led which puts expectations basis anticipated. XXX lower we we around to our we previously midpoint the the higher now of at We is RevPOR basis X%, assumptions expect to revenue be year, to the

of growth, tours expectation than to to to levels. prior start, and by we expectations add million. $XXX and move-ins strong Our were are have occupancy $XXX that NOI is volumes driven total year a both already million SHOP originally April higher off raised

So we're Remember selling the now key our performance. ongoing optimistic about critical just we season. entering that are occupancy

So that to out. have plays how see we'll

course upside our OI years. properties the by the excited markets platform basis supply/demand of Looking of forward, drive energized supported to by few occupancy next excellent we are very potential growth. our well-invested I'm with combined X,XXX over operators the in fundamentals Ventas the and points strong about

to half the of Ventas organic NOI is well. now and growth on are housing SHOP as growing over investments. with and XX% now due we Senior exceptionally externally strong representing expanding just portfolio Moving the to

have We been external senior opportunities focused on actively growth capturing housing. value-creating

million So already unique with high opportunity growth. These going-in yield high-quality the mid-teens outsized coupled is million excited housing relatively with housing am far, the opportunities senior $XXX are high-yielding, These in blended for sweet we closed. have approximately coupled Xs, a contract IRRs. have investments of unlevered communities, spot. I closed or in invest by exactly our investments which in of particularly $XXX under senior to

discount cost attractive an are replacement an of we Additionally, to costs investing with $XXX,XXX unit. at per average

combination investment our compelling including communities prefer are profile, executing asset, right with in is absorption. by our Ventas OI strengths employ living asset assisted of and active by services memory data in and the management driven offer value-creating right We markets that strong need-driven We're of demand Ventas meaningful through net a to platform our us playbook expansion strategic investing framework. approach a strategy living, a our affordability care. These by Our analytics. independent supply/demand and best-in-class right help expected guided operator market, communities supported supported

existing proven performance. with We are operators expanding primarily with

we more acquisition, years. I'll to Indianapolis, process, few new operators X past than They're services pool market average the tailored few Additionally, strong we a old offering as of assisted community and XXX market Magnolia revenue to around each more our areas. which over and located offer communities and years, projected over are points living have our growth. care part includes X,XXX and XX our selection that records as XX% with in capabilities memory units welcome occupied, currently grow Springs service on with basis the at Louisville SHOP average. years communities combination data-driven supporting operator of the next track is Cincinnati the highlight the doubled The significant

mid-teens. to proven be record is operated of to yield very outstanding our Xx services be IRR around has and in Sinceri a and the replacement be track going low on at strong unlevered markets of Xs the who projected a projected communities projected cost estimated to Affordability length The The to is discount by stay. The average XX%. care performance. is be in is delivering will

we pipeline plan Moving execute on to of to ahead, communities. growing senior our housing continue

start occupancy is executing look strong, are we Bob? off In evaluating many actively opportunities. and SHOP We strong momentum to growth our pipeline. are to on attractive continuing compelling investment summary, a We organic to year. the and forward

Robert Probst

the research and performance, with quarter close outpatient our capital and or Thanks, on which and increased loan our basis last Pete balance taking cash of with growth team our renewal In by Justin. from in effective guidance. I'll our higher Meanwhile, executed nearly year. outpatient team. activities comments medical, the from some provide and prior medical due the feet my XXX,XXX ownership NOI first X% and an than of and update XX% quarter, property quarter of the points new quarter. XXXX in segment, asset highlights first share the first I'll start OMAR, Ventas equitized same-store outpatient square occupancy to management medical assets since reported year sheet increased portfolio XXX the leases initiatives

occupancy cash NOI same-store growth in X% with the quarter. research university-based portfolio. across same-store increased the first Our over

has increased institutional university and square with demand X.X leasing to for strong new XX% feet pipeline million university-based science overall life Our buildings. by

loss enterprise results, Normalized X% attributable per at quarter we share reported was first of to in strong net QX common per $X.XX share. year-over-year stockholders a representing $X.XX, growth. terms FFO of In

same-store total X%, NOI cash XX%. grew SHOP, increasing by Our nearly led company

in the in of activity fully housing leverage guidance drive expected was net to organic so year Strong continuing raised is also our growth of improvement far The some first to capital leverage quarter. average equity price our improvements an trajectory year. SHOP in fund $XX.XX the notable included million investments. in Further drove XX-basis-point senior in SHOP growth debt-to-EBITDA supporting sequential at had the a markets $XX XXXX. We this balance

facility strong for credit their improved oversubscription our we with We on thank platform. maturity $X.XX support from XXXX to our partners. First, pricing our revolving of extended banking the and billion

XXXX Second, we attractive senior maturing the some X-year table early taking Canadian at at raised first X.X% in debt in notes rates. $XXX off million the quarter,

for to We $X.XX for of outlook now common our stockholders left We per $X.XX us maturities this improved increased debt, a net our to guidance to updated the share in the by used repay midpoint million $X.XX attributable $X.XX per diluted improvement same-store rates. We've same-store our from in property a year-over-year year income normalized to X.XX%. share. We increase guidance. recent per offset X% full of XXXX FFO on organic with cash $XXX midpoint NOI, hand our expected each maturing and cash by year-over-year of debt of segments. year. I'll also to portion previous range NOI of refinance close leaving both of higher to grow can raised cash The our from XXXX midpoint is NOI to share expectations compared our NOI growth explained now Total interest prior also partially midpoint company $X.XXX. SHOP our be midpoint

We and have contract attractive pipeline an our our not discussed investments additional the recycling $XXX any senior or proceeds closed of to on portfolio $XXX beyond incremental full we capital enhance our outlook housing year million, in our fund increasing to today. sources as included We're build investments. million

FAD million $XXX spend CapEx Finally, in we XXXX. to expect in

our posted earnings QX our website. With and please I'll turn the For supplemental to back operator. see additional to that, guidance the deck XXXX presentation assumptions, call

Operator

Your Evercore. the from line of of Kammert first Instructions] question James comes [Operator

James Kammert

about know Justin, assumptions core you're couple making there upside regarding years times of many obviously. mentioned I right, of your that very said how I if of of in terms across it's X,XXX some what of -- markets, sort a growth markets core I fluid mean, that they bit would pace absorption incremental occupancy you in target, potential your a about take? points But of guess, the a [indiscernible]? optimistic the you

J. Hutchens

Yes, sure.

been and Debbie obviously, highlighted those in the So which housing has a I stepping lot supply remarks. there's on of us senior by back, that in think, excellent. demand, that, nicely participate focus sector of opening the been

to variety in We but of expand articulates opportunity X,XXX outlook. continue and in years. determine testing page upside our mentioned new proprietary, activities the sources Clearly, we perform a exciting earnings haven't to on a capitalize points basis and markets feel to within use and those over data added deck, We've to our next you've comfortable that into back pacing, good the of to we those our markets few included markets a through certainly well but that's we like then the upside. external

James Kammert

follow-on just that. a And of a to sort

use improves If for gets can of there's any algorithm every is we you XXX to points there fixed that cost about because that levered. occupancy, -- obviously had margin, think component basis a how

J. Hutchens

Yes.

because in portfolio mid-XXs In our independent So assisted the we're there's certainly overall, a both for both XX% the XX%, lot U.S. -- opportunity of living under around margin us just occupied. living. in and SHOP -- expansion total

that So that there's And a lot from we of business. occupancy upside ahead. benefit our with comes the operating leverage in

good we'll really some some upcoming there's conferences. so And of Maybe ahead. expansion There thumb. rules at that are margin include

Operator

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

Michael Carroll

that to by for they that it. know needed month? about option touch option kind some they wanted that made or about I you if to extension of the But on exercise remarks, you can more asked assessing I Kindred. for Debbie, the reason prepared something wanted this time one talk Is extra Kindred not?

Debra Cafaro

about Kindred I we're others. engaged working with to the and mean, look, you outcome. to right talk get And in active to we're discussions to Happy really it.

And to that kind good that, to in the of so believe we optimizing best interest get define Ventas everyone value NOI. was as a really and outcome, which we of

Michael Carroll

deliver, Okay. few And that in new quarters, efficiency I are place the you kind on in you results, returns? has initiatives has then to put highlighted And better Kindred past of operational I kind been just know seeing that. those putting been of yet? in guess,

look of the X.Xx. quarters, that portfolio XX-month I coverage steady for held mean, on past X EBITDARM if the it's like you at kind ratio trailing that at

up, has number. that's seem but yet it doesn't So trailing coverage I know picked a like

on more quarter upticks recent recent highlighting data of some didn't the most know I if kind have So there. we

Debra Cafaro

improve you're -- heat course, and initiatives mean on the has seeing we the look. I underway and sequential are performance, Kindred right to both map, but a trailing revenue is expense of improvement,

that's ought really so And it. think about you how to

So head. you the nail hit on the

Operator

Michael from Griffin comes question Citi. line of the next Your of

Michael Griffin

on Maybe have following end additional May for an or Kindred, extension do is up think decision. there will Could when Michael's be just a you we question. of

Debra Cafaro

Yes.

active the with and and properties. and Ventas in we're So I discussions for Kindred that, focused the right for others, getting we're really think enterprise outcome the for on these also

be -- outcome. kind of to And to we're very would that I working hard get

resolution I'd soon focused we're as to notice time, on that it that team a soon This telling so a work the similar on be what and is and as last you date we doing, to as just working less And We've have as the get focused forward on we we while. happened great a it. on for very more we working been can, it on look can. and to we're

Nicholas Joseph

have guess it route? parties, is just if be is Nick what should the that this of the kind for would goes portfolio, other as it second retentive, the you I probably said to Michael. here I downtime with if talk down question,

Debra Cafaro

If players a a Right. seems would see X, on kind that's that it's LTAC properties. transition -- some day a be or tenants like and Ensign say interesting to have the of of would the now moment that It be I space. positive. there of for bit if well-respected enjoying there other were all entered to

it. I were a So or not transfer that's direct like if anything. operational the downtime. to There's outpatient there's think It's medical no to way about occur. that

Operator

line the Your next Deutsche Tayo Bank. question Okusanya of comes from from

Omotayo Okusanya

on Congrats quarter. great a

on deck, have Should at housing as In in a look the can terms interesting acquisitions of see how Or we X structured about transactions? about just an of at acquisitions, purely more kind you simple maturities the debt well? thinking page all opportunity. side senior in you as we be talking that again, your finance you upcoming doing and potential possibly

J. Hutchens

That refinancing we asset have generally higher tremendously lower LTV fundamentals, have articulates because and really Primarily at X an chart opportunity maturity that's good a the but interesting you cost. simple.

putting make in owners. on sellers there's institutional variety private that it's on. we've our creates an And So a of that executing seeing to for better operators equity opportunity stack. a capital and us high-quality well. and pipeline, acquisitions like pressure been been multifamily it And existing There's which as with but sellers buyers and sellers including we've

Omotayo Okusanya

that's Okay, then in. if one I sneak more could And helpful.

much rent Brookdale, portfolio triple a great if how is [indiscernible] coverage could that's coming the how senior all and portfolio But curious being fine. terms again, fundamentals generally. structurally SHOP doing and that well In to a from are strong of which up, is other is change just portfolio, of your that's more given housing lease net

Debra Cafaro

is for thanks occupancy Brookdale And X.Xx of has basis. intermediate-term coverage NOI. been on it's a lot And at asking support that. Tayo, in right, those about trailing you're X% the trends again, about also a of our markets improving, the and increases.

And that, think which are Ventas positive outcomes at we you for is lots there XXXX. of as of end as about mentioned, the so

Omotayo Okusanya

same So as I you expected net? triple guess a the stay structurally, to

J. Hutchens

say from think that I these So a the are when a supply-demand mean we options. upside positive communities we lot standpoint, also are a I of demand have tremendous have excellent. markets metrics in

the trailing the Kindred, coverage out little is of on a always same Debbie To made point date.

So there's performance, come. to even better sure I'm

the we're communities. positive structure the And opportunity these own facing. that So we any in like to opportunity really that's

Operator

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

Juan Sanabria

leverage acquisitions, should that? think about high still just think to How we got wanted how capital improving. seems relatively to your ask it just another And group I definitely about of funding but properties looking cost with and at. you've of you you're maybe wanted like around

Robert Probst

proceeds in Justin baked about work returns first Juan, capital. what to And last those at on funded added in quarter. even sheet housing current fact, investments, the look and balance which forward, fact the call source. seeing into given equity. And we've of what take returns, guidance our on are these on we the We Sure cost that really, guidance. the that's attractive financing financial at We as the given fully can with is we're we pipeline, incrementally senior one. the more those Thanks. Starting I'll that that really earnings disposition with talked executed articulated investments that

we across of classes of us. million So a asset of another source see front as the just in because hundred opportunity couple funds

doing said summary. much pretty So more powder building and what my be we dry would

Juan Sanabria

portfolio a the where And follow-up of points Justin I upside on an comment is comment portfolio. first, basis U.S. for on guess, overall or same-store that X,XXX a of and occupancy kind the as or starting knowing always do occupancy the now. of out ceiling seniors for the the of structural is point And the customers what some kind communities. churn see of there's in you and

J. Hutchens

question. Great

it's all, the upside. X/X several occupied obviously at we're U.S. assisted view, living XXX% in living see independent have our U.S. a it's just do U.S. The a lot our about portfolio. So SHOP, in first and philosophically and running products focused It's assisted that in upside opportunity we occupancy. in XX% under of structural living and my XX%, experience both We is the in communities total of and XXX% occupied. SHOP through And are total

And and so demonstrate just really care there's nothing great like a the completely full deliver also and community leverage services. operating to

certainly And deliver U.S. that certain in look opportunity. happen our to starting the in And so around we able just goal, great have forward demand are much it's to the that's keep it's to at and confidence on markets, we'll be have doorstep operators and in the so driving. goal. And to and Canada, starting that have to

Operator

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

Ronald Kamdem

Great.

Just two quick ones.

the trying one, the connect here. on dots So occupancy to

in sort year. I stopping CapEx is, that investment. a what be points direct senior The lot we're new than You obviously, gain occupancy of that if the bread Ventas of on presentation, XXX the finally of normal, crumbs senior is upside would sort that to occupancy basis put to housing. OI gains not, be starting VP basis and seeing occupancy question X,XXX you're XXX and a Is here points that? getting hired of and like with the guess you the

J. Hutchens

in response here. couple So a comments of

projected mentioned that over is be occupancy XXX-basis-points U.S. this year. I to growth So our

beginning to of at set think the that's a I just key season. So also the we're about. mentioned selling that

out. seeing we'll that So plays be how

leading into it. about a trends the make We're good You point. optimistic

So goes. see that we'll where

new chief introduce officer a revenue senior will This and person senior in the performance June, lead very held she's made the and first roles XXX really background hire, a global leadership companies. for her and platform drive job to housing. in of SHOP to has senior and starts performance when but housing of in line Fortune VP part in housing have in she be will very, top hospitality, strong senior We

So really excited platform. even really about is team OI and continue addition think driving the And the and will the what a with really existing That's of I new work addition momentum been tremendous stronger. team. the this us just make

Operator

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

Joshua Dennerlein

Or than SHOP the like The XQ, from and elaborate question revolves higher update drive better could America? aging just guys you the that occupancy demand, uplift. year. the so that you of market around, in expecting by why latter, was driven guys If My you're the what overlay then like driving better, some beta this alpha kind like internally is to that there you getting you revised that's is the being are were the doing that being maybe and for like on doing of better alpha? customer driven you're outlook that's

Debra Cafaro

OI-driven take It's both. and kind defer to to within of and on the then a macro. And demand-driven actions I deliver the I macro outsized performance all sort initiatives Justin of of

J. Hutchens

take of advantage And the been time great for some sure opportunity. then this positioned it all starts to macro sure. within quite working we're great. we've for with And to well that, That's make

is operators position. optimization, the and And out we to We Atria, in move-ins to Sunrise we year, where make jumps examples. tested then the good market. well increases this the time, this, had other big of we -- past which and tracked price over those average in we've me just as invested, maintain well we're new A to the markets. made in performance relative relative ensure place. the in there's sure one that we examples. and the want companies. And be local market we actions and back really that example would established as our and One are market. over opportunity couple invest the A really operator outperforming adjust maintaining is -- market to took we And volume Sinceri pricing in we to properties we've they're put in then position --

And X%. we deck opportunity. and a that's over earnings of The of rate basis XXX highlighted points our growth an overall growth CapEx we've street in investment where had so year-over-year of occupancy

a combination actions strategic as they a of executing the basis. give helping of day-to-day job and operators to it's on support our lot and activity do a So great some of

Joshua Dennerlein

On have you guys a know year-end exercisable I they're different note, through Brookdale warrants. XXXX. the

are essentially they're how in of think the you capital? guys know is how which really source exercising using Just those. I about thinking potential you money, a do as about those

Robert Probst

that Yes, take one. I'll

You're right.

We share. have XX million warrants at a $X

And and of but obviously, So left money. senior years X.X terms real as invest another in source opportunity. housing And clearly a duration, again, gains recognized clear that of about we to estate. deeply in about the is, funds think the opportunity both behind value create

Operator

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

Nicholas Yulico

If more investment we should higher now, think year of in to right the owned, -- bigger a we just lot a that focus could company to the is of Ventas about picture a of exposure. How assets housing. company, pipeline, fast it? opportunity seniors be forward Maybe now from housing going capitalize on is terms question larger for invest on a kind in there how sort senior of you

in Because somewhat I year-to-date neutral. or the think what's is pipeline

roughly have portfolio sort right now? the acquisitions, do you growing How matched. think of dispositions about You

Debra Cafaro

on the capital, is we're of with grow. is second part -- the driving And XX% bus. the as growth of on for the high senior advantage the we organic see external we're driver acquisitions and at mean The the market to access larger Yes. we're growing. overall portfolio think housing largest to you're that a taking assets find those to We're to way executing portfolio. yields and over going with growth good of already our opportunity part a I of kind and layering in focused again, we're returns senior have multiyear I senior the we're continue. committed trends going job seeing obviously mean, high this potential, strategy. at going we with that of platform it's and to those housing make going to housing And I make on definitely to that -- owner half growth are of

Nicholas Yulico

Okay.

long just in the point you term. on to in realizing here at for growth on when about share is about have long obviously, there should neutral/accretive X? happening the on senior a invest Second FFO How question talks in focus people the what your is per time you're I important, housing. that, focus thinking X runway how think we know slide obviously, it But that. And -- because attractive earnings the about year think -- year investments, there's is should accretion we again

Debra Cafaro

we And too. Bob? Definitely. are,

Robert Probst

I to an IRRs the term, neutral, in relative accretion. and drive would there's in growth yields used. not so which the But of near growth would cost immediately the example capital, potential accretive. roughly think and in I investments, says the in these point to mid-teens going you attractive That

Debra Cafaro

Yes.

Robert Probst

so to exciting what's us. that's And

Debra Cafaro

be would near-term it accretion. And

Robert Probst

Near term.

Operator

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

Vikram Malhotra

on strong quarter. a Congrats

go understand but still want occupancy? conferences occupancy suggests trends and just Because I you're wanted XQ, questions. conservative, guess mechanics in growth mentioned you've or I the the know acceleration it you some being the Maybe NOI is guide the but to SHOP. both? acceleration quarter last that SHOP the two Or year. you at the Just of that you. year? decel had to or Justin behind. I Is through a same-store be strong as acceleration Is prior one for clear, I really midpoint through

J. Hutchens

it's of an We all, that guidance from start Good point. been had and quarter occupancy the expectations is part gave. of to first Well, NOI underway, that's strong we a standpoint. real -- first That's the accelerating.

the of the we're changes throughout kind that what in right of point, selling season So terms starts now. trajectory good stepping of key another And expecting up also year.

So there. see and plays to we'll time that give go ourselves from out how

Vikram Malhotra

quarter, So -- occupancy -- the sure, growth to you clarify, are just said make it is acceleration. acceleration? like it just I is you Or still to NOI last same-store want

growth? NOI are said just still change, You trajectory the accelerating but anticipating you same-store

Robert Probst

XXX posted first you XXX We've so far year-over-year. year-to-date. Yes. I to, We would occupancy. point got off,

the clearly, embedded So growth year-over-year to there's incremental forecast. in going be occupancy

posted midpoint Our pretty NOI. close. to gone in quarter, the XX% at range XX% on the has first up We

just to out. I back that. how one think this that We're starting to season coming selling notion. We we want see plays key keep

Vikram Malhotra

it. Got

partial with the players or solution, an and you I there -- another them not some meaning likely is you've then extended it's throw by And it more It's table, all if us extended renewal you other is you've is the the know that mentioned the outcome. if part tealeaves the Kindred Okay. just of it's at other parties. guess, or by unlikely more off fact that month, are and month. renewing just just potentially can it like fact all here Kindred don't on maybe that given to assume Debbie, X fair I that

Debra Cafaro

part that again, and that tealeaves happy active Well, It's to that give working say and with a would are going so and soon shareholders to Kindred can from be keep many more goal, I in But value NOI more Ventas of on these solution would we as every we likely properties. optimizing we're as as the can. again, the others. which, discussions forward. reach is alternative Kindred for we continuing

very on and focused, So we're we're it. very

Operator

next Your Securities. of Richard the line comes Anderson of Wedbush question from

Richard Anderson

own So optimization, also proving do assets Justin, properties. price investing to a talked that what operators to be about perhaps And the in little them other worthy. themselves you are transitioning you with bit once you

maybe transition how now? full do a you And but category? get do downtime the $X would be think you in expecting whereas year If billion, meaningful you you benefit, not year, from much the this fall will any

J. Hutchens

question. Good

So pressure ]. just [ about a tick the I'm back talk and to bit going little step

high-growth, about right talked focus markets lot also make need-driven So to on first and of to on focused always and memory particular we've asset. living there, lot is care, upside product. opportunity sure the We're entering including affordability. we're is step need-driven from assisted And markets a we independent living, then a obviously, campus support the the and and

who's And to position the we're performance we're it's really delay. cause manage decision the in It's trying because to really Then that. because sooner. trying make cause not we the best better to

There's good managing and very over we the with getting well So that over few the new expectation. risk transitions. having manager experience that's through associated lot in, transitioned transition. have our XXX We've results we outcomes. always good years, a with when a Obviously, move communities of had past

to to it's to really And in is come community. position the the so going best down ourselves going like in that to putting decision be drive performance

Richard Anderson

Okay. funded second that's lot And been everything what's of then -- you with done so question, equity. been or I has think, a Bob, far mentioned

in AFFO you is I an dispositions, then new looking one. -- are I'm talk you OM your the and I'm OMAR, like cost and What cap of disposition your much comes like equity of X%. it back to about at comparable it of much But called comes how how a out and envelope, yield of of when view about think curious... out Just which AR, how much how rates

Robert Probst

Yes. medical It's research. and acronym a outpatient OMAR, memorable

Debra Cafaro

The A is for and.

Robert Probst

to Easier OMAR. an. Yes, remember.

others. of OMAR, across So guide $XXX also million housing asset is senior but the step classes, dispose includes back, and including of

say that, to dissimilar So quoted. you digits the roughly I would the blended rate number on mid-single is cap not

think maybe again, short growth So the upgrading the and over really portfolio in accretive as run, in the the with time. we about again, but reinvesting potential neutral investments

recycling another very So is of on. focused source capital we're increase that funds hence,

Operator

Mueller comes the line of of next Michael Our JPMorgan. from question

Michael Mueller

give was I the AL SHOP some IL varies high-level on the can the outlook wondering, from to segment. color you how maybe us

J. Hutchens

sure. Yes,

So most from of our NOI growth is AL. coming

the that's particularly of in -- on U.S. be much going end the the have We higher average, to

looks XXX% excellent that at in living trends really our independent it have -- opportunity really been in terms but this growth portfolio we see that we ran IL the growth of contribution is now of in that of good drive move-ins April prior in leading multiple will first and that in right living. ultimately had in really quarter good U.S. U.S. in the occupancy portfolio NOI, indicators the there's way We've growth. year independent the but the some and across months some the of so the a be the So more big mentioned independent U.S. there'll XXXX year, AL I living U.S. Occupancy in contributions leading

Operator

comes line the Your from next Golladay of of Wes Baird. question

Wesley Golladay

IL on year? operating follow that want to next next up picking in just kicking leverage regarding I more just that Is year. question up last so the

J. Hutchens

exactly. Yes,

So relatively you're offering care, not more you're business. limited high IL has high-margin It delivering because costs a is services. fixed

you So have benefit higher upside. from runway the the long that, high. occupancy in of operating occupancy, a more leverage very terms and is And we very, the the

forward So some we driving out, moving that see NOI plays look to continued growth then there and forward. how

Wesley Golladay

I want And back that to to Okay. then slide. go

of continue about on And over issues loans you higher, accelerating. front? have of on think do just the How also the refinancing is your have On then has hand, much amount changed You last, X the view some grind months. to of the loans. call one have will the billion recovery $XX rates those but distress you it,

Debra Cafaro

-- necessarily COVID were doesn't constructed contributions. percentage rates good, Right. NOIs, difficulty there and but original a that growth good, loans mass pro really without some significant are I are and that recovered The lower, assets pre-COVID good paydowns. LTVs would good. have markets say work that many in There's therefore, refinancing or their you higher upside, in the are and because levels those be them newly formas. say, can have additional refinancing the delivered really the large is meeting assets there not of But aren't to were are they the be of without can equity as

on go. creating that opportunity that's forces where to pipeline are overall pushing sellers to really they whether said, But opportunity. significant and and a part decide in really Justin in again, are that want they market there can And or billion of for that put they to and move And either reasonable sell as which the market them many owners, value other want their so is think, that percentage just that's pocket the reach of those if are I we're seeing. a if $XX equity to more have

Operator

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

Michael Stroyeck

of What of on the if one terms move-outs, were year. with consistent then anything in sequential tenant quality we provide? And the move-outs saw Maybe any, occupancy with decline outpatient drove or quarter, recent asset during you business. themes half credit, the last what the those whether the medical tenant second compared can

Robert Probst

which did actually quarter, the first Thanks feet And talk health to we for of We're our more come I'm has terrific. Yes. back. XX% year, We've about is really Yes. prior in what with health is also happy the square -- system question. really XXX,XXX happy leasing, leasing. than

the COPPENHALL than year XX% look almost the you were the for If higher data financials what health they [ ], at are ago. a systems

and and they're space. nonclinical facilities back. they're their to So their upgrading strategy, They're space converting clinical executing on

we practice cases, basis feet associated And and I you the many examples. that essentially point out and health a same your in lease that I'll the an immediately occupancy. re-leased example health immediately, equates Now with entity. is just system you is it's the back XX,XXX. give X practice of points, again. about about One system to independent where to space with of square tell that feet moved who the XX,XXX worth to square almost lost can XX,XXX XX that

We to out build space. have the

So essentially occupancy it's re-leased. but goes down,

a go larger on health the so Another a and more a have wanted as example those suite, they particular one can space just let to had, efficient system and is, all floor, re-lease small bunch of they suites, practice.

bit of or the things occupancy So little will execute leasing, a are a result on better that next then on health systems of losing going year year. we're better types strategy as in their and in those vacancy, rents as later

Michael Stroyeck

Okay. second That's if helpful. Maybe may. question, a I

Going versus back that discussion. IL to AL

reflection outperformed in during attributable that Holiday So terms the gains improvement demand IL the greater to Is quarter. an in Atria of by portfolio. occupancy product meaningfully a of are of that for operations just IL the more

J. Hutchens

Yes.

includes legacy includes our recent have Atria our had -- of our and -- mostly Holiday definitely good legacy include communities, our within momentum of by some Atria operated some portfolio most communities existing had former it in other our that we've we Holiday living independent portfolio. ILs -- So

our that work continues. communities, that and ensure those getting So with operators there's effort intense to the performance within to been an we're best

and used, And then been whole from everything price playbook optimization, really oversight really CapEx operators volume insights, executing. the sales has the investment just

really And to look the results to growth. so we're forward good and see happy more

Michael Stroyeck

the clarify, across it's IL pretty portfolio. So just to broad-based

J. Hutchens

IL Yes, broad-based portfolio. it is across

Debra Cafaro

Yes.

Operator

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

Austin Wurschmidt

RevPOR. on hit to wanted just I

what which you lagged that that that the acceleration the from You confidence? just gives is driving markets kind are similar growth guys occupancy portfolio? other quarters the ahead, is overall kind RevPOR firm, a And assumed imply does acceleration for buckets improvement? of Or in that year the have of primary to that coming it

J. Hutchens

just Yes. when is want supporting One metrics I notice of point are to that the lot gave [indiscernible]. thing we out SHOP you'll guidance, a the

of So X% NOI then it's lift. have approximately approximately occupancy XXX range. we RevPOR approximately X% revenue, And an

movement amongst metrics And little room out. see so plays those and left we for key a selling the how season

don't quarter. around just expect to consistent was necessarily X.X% from what We're saw we and which we I X%. think going X% with the be saying in saying first we're So we're to

Austin Wurschmidt

That's growth, occupancy leading it. street lead that And strength Got harder to I demand to given the see now the if what continue in see showing kind strength, helpful. last test waters you mean of that of lean into of overall maybe that the of some kind and then the rate the for you've indicators quarters? little for pushing a on couple you mean, the to acceleration. the just on same-store would you broad-based I portfolio. pointed

J. Hutchens

Yes.

volume is in we to really a making part and where there's sure move price pricing market of the we're more market, more demand with do opportunity right the an priced optimization that. So aggressively,

occupied highly a move-in certain higher certain higher are and communities So street markets there's rate, rate. that attracting

of part plan. So the definitely that's

have Now opportunity and the NOI. upside, Balance and continue that's occupancy demand drive getting total a having said to the it revenue to for volume. of the just lot out that is then us that, big into of we so we're best play growth drive

Austin Wurschmidt

And the the on occupancy kind was kind assumes X% -- stays to guidance of the upside? that that, thinking point steady that I your of guidance just

J. Hutchens

a I mean year-over-year it's stat.

But the occupancy. in see probably you'll metric. expecting rents growth think within and little in growth see growth in I is a of we're movement what rates, street to So bit move-in

Operator

now for back I Cafaro, CEO conference remarks. will the That Q&A turn session. of Ventas to our Debra Chairman and closing over concludes

Debra Cafaro

Great. analysts you Great. and of attention to forward and seeing in also much appreciate colleagues shareholders, I our interest participants very today. your soon. and my want other and Ventas to thank We all your all look

Operator

and for joining. that Ladies gentlemen, concludes today's Thank all you call.

may disconnect. You now

Ventas (VTR) 2 May 242024 Q1 Earnings call transcript