VTR - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Ventas Third Quarter 2024 Earnings Call. [Operator Instructions]

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

Bill Grant

presentation and Thank Ventas the we all our earnings available everyone, which Ventas investor Conference you, and good issued release, quarter third at John, on welcome XXXX and XXXX are Yesterday, supplemental package, to Call. morning, materials website Third ir.ventasreit.com. the Results Quarter

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

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

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

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

Debra Cafaro

improved in we Thank to quarter to housing. X capture I'll of other growth and in discuss shareholders multiyear Call. Ventas opportunity welcome strong strategy XXXX to want senior execute the Ventas' on results you, our our participants Third our Today, as all and Quarter BJ. XXXX QX I expectations Earnings the focused the unprecedented

meeting demand and taking deliver macro large to of participants favorable the X growth economy, a As thrive in from largest and now actions the in growing longevity results clear one are Within future. aging the and we environment, this into population. Ventas

our consecutive in-play business. senior NOI of driving housing quarter are profitable in growth we organic from operating portfolio, our generating ninth First, our shop double-digit growth

insights this opportunity Our using and housing. advantage its favorable take propel experiential of results of supply/demand unique senior and data in team to analytics is

we up in are the our senior Second, ramping time, investments at same housing.

and are to sheet. of senior expand growth attractive highly our acquiring accretive also financial can housing arbitrage. value assets at creation balance that return enterprise public a increase We compelling Here, yields opportunity our expectations with strengthen footprint, enjoy private we X year and rate, our

We organic value dedicating our and and seed of resources are them opportunities, for we our powerful create to stakeholders. rarely see external to this combination growth

Before let's to $X.XX of NOI SHOP FFO with numbers. cash outperformance. I reflecting Ventas year-over-year the growth. the increase have powered share was those and This driven third occupancy themes, get year-over-year in by delivered X% normalized per result quarter revenue XX% by

improve. X%, same-store grew NOI to credit continues Total cash nearly statistics and our

as XXXX guidance, we're FFO again our As total expectations. share a result, as per and normalized company raising cash once well our same-store SHOP NOI

basis execute margin XXX organic further operating the as we occupancies our leading and strategy, strong powering SHOP OpExPOR engine home. us has spread increased increasing RevPOR to should expansion. and is continue forward. leverage is a nearly growth is Margin XX%, As Year-to-date our and rise SHOP is to and NOI points, expand

markets are with future XX% the population because they positioned dynamics. in affordable exceptional NOI increase With expected provide growth over compelling well X to next years, communities our for environment the supply-demand over-XX

As we senior continued long have believe look housing. for a ahead, we runway we growth in

prior weren't conditions as reached when favorable late they peak SHOP as are in Our occupancy XX% nearly XXXX now. and

low peaks is construction, housing of NOI and to moderate. sits and senior for exceed which goal and shoot time levels searching outpace prior Our record demand occupancy over inflation and at

year. outperformance. to we upside to up particularly to Ventas conditions continue favorable our care $X.X our drive investments We've platform senior as and billion providers and to drive OI show expect in ramped also work with our housing markets team Our significant this

to field housing our utilizing rate increase identify footprint. and experience industry and senior are insights, opportunities, we expand too, growth attractive Here, our relationships our OI enterprise

of points percentage we our articulated expect activity, by into These over XX result to squarely to half should growing, fit conditions, investment of strategic yields investments high financial is create pool grow market a and of large offer year-end. assets such and business shareholders. value housing As framework relatively available and future acquisitions our NOI increase for favorable should We've generate by rarely and and and growth. this year senior the SHOP well where seen to X significant investment

cost to participation intend opportunity a well in the Importantly, we experience senior to positioned unprecedented in momentum successful. multiyear We active build are continue to standpoint and on from and expand sheet, balance our of highly be our growth housing. capital to

for we benefiting holistic growth a report Ventas, At key view our a aging details all large enable month, we which 'XX of taking delivering Last we environment XXXX, our growing sustainability history and initiatives of released population. have sustainable exceptional stakeholders. as long a corporate

of am which sustainability and accomplishments I proud widely and our our leadership recognized. team, are

Our approach annual nearly XXXX. of beginning us integrated since the has to deliver enabled XX% TSR

feel I sum, In business and great where our about is it's heading. where

a powering growth. runway durable multiyear Our enjoys enterprise for demographic demand inelastic

market advance longer, outperformance team Because secular mission the And whole lives. it. to capturing positioned and is happier platform healthier are important advantages, for value and our people share. going favorable shareholders after are and our these help and and Our deliver structural driving Ventas well we team enthusiastically of to live

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

J. Hutchens

in deliver I'll growth Thank to start with you, Debbie. housing. profitable organic senior our efforts

leading XX.X%, and grew double-digit portfolio of of by The points quarter points basis basis an margin at year-over-year. ninth overall growth XXX which an year-over-year, NOI is up third consecutive our operating XXX over quarter to occupancy same-store industry-leading SHOP XX%

to NOI year our growth Revenue October. and XX.X%. was the outperforming one XXX U.S. the quarter and also have around best portfolio, basis with continue We occupancy points. sequentially was X% leads in across of growth of Leading so indicators been growth tours do had all and

to deliver operating on excellent clicking Sunrise, the in occupancy Discovery and continued Double Sinceri U.S. results performance. our

occupied Maurice portfolio Groupe September, Canadian Atria. high an Our in by led is XX% and all-time the

than the The almost is XXX in NIC the double NIC faster markets, grew points basis top average. XXX grew occupancy points the these average. XX year-over-year Furthermore, XXX outperformed market. the is we Occupancy which which U.S. basis points markets, spot basis in

Moving on to guidance.

expectations original the the third by increased versus have to we is RevPOR quarter XXX Year-to-date our has off basis and about which occupancy inflationary spread points As XXX experienced good up continues average and to healthy moderating outpace OpExPOR October basis exceeded a is basis growth start, to XX as expectations points, points, pricing a expect the pressures guidance. exceeded growth year. continued we this have our

time attractive that seniors pleased to be demand, and a Furthermore, anticipate SHOP this well-positioned of families. growth to considered, expectations significant favorable year we as XX%. full their raise All third we year we the believe are will and communities for rate XXXX guidance this into is value proposition to

Ventas on OI. to Moving

and to data stems enhanced market, platform performance points marketing, market positioning, This by SHOP our digital sales, experiential our insights. Ventas which X operators right and financial Our pricing, OI and asset, from right few. SHOP with in CapEx right operator leverages name the empowers billion operational advantages a approach, platform,

acquisitions, margin. and Key segment increase investment trends The SHOP in senior designed SHOP portfolio to and NOI boosting this ways OI all triple in to at CapEx favorable the drivers include new supply-demand to from and enables occupancy also operators, aimed NOI strategic conversions us net in platform housing.

I and higher incremental occupied margin between all understood growth. XX% in the the familiar think that XX% it's compile how XX% flow-through are a flow-through in occupancy. don't widely thumb, with are that communities communities communities XX% And of We XX% our rule occupied. are above

a you walk case me this to Let study highlight through opportunity.

want If study Page our in you deck. can along, on see to case you follow XX this earnings

NOI and offering in Our maximizing portfolio, occupied potential. select initiative across growth. aims is XX% SHOP XX%-plus outperformance portfolio category Revenue substantial communities Zero Loss minimizing our in Day for vacancy our occupancy of full the

frictional and the occupied to to ultimately small to we to scarcity vacancy don't that significant turn. senior communities. to It's growth in important for periods value sufficient leverage note a Due we frictional tear units, opportunity time of typically highly in the have notice drive lack low lengthy the to our vacate allowing in size, due on NOI operating wear experience business, plan unit and and housing unit vacancy, relative

communities improvement, over deliver These which XX% is our market-leading X September and NOI I'll year, occupancy portfolio, occupancy saw employees. As essential loss all every in XXX These benefit communities RevPOR month. services, and properties day retaining increase XXX% days, reached materializing. that revenue are the attracting grows occupied across to highlight growth maintaining highly of care occupancy communities a revenue quality and the in growth. X last over point a residents X% basis XX% and the

through The our leverage, operating value new We every every philosophy and with operators aim and portfolio, NOI X value targeted result this replicate it acquisitions. throughout achievable our continue is scarcity underscores and full, daily, for simple, full vacancy. communities to not unit maximizing We'll of property. to including the is renting

NOI double-digit SHOP my the occupancy our business. are summarize growth. momentum truly highlighting and commentary in seeing by We outperformance continued I'll

renewal, Brookdale, renew by improving comprised XXXX. on points end markets It which basis to with with at potential strong expires November of of underlying with of which positive this lease progress Brookdale our X,XXX in include portfolio Next, sit of year. a I'll well-covered assets XX and We'll underlying there this comment triple-net the in coverage, you for full are outcomes the the projected of or occupancy upside. know Ventas, that performance when full Due to lease something to between. the compelling tailwinds, more. could are we update strong variety and transition SHOP option that has is lease the of about of a

investments. Now I'll on move to

focused our strategy, which concentrated to external in compelling The capture on execute growth opportunities. market is to continue senior presenting is We value-creating housing.

housing capitalize senior a successful as far-reaching in of record. senior a on and these track advantaged with large sector relationships position our given to financial strength and owner are its position flexibility, We transaction housing great opportunities,

senior size quarter pace $X.X or $XX billion which XX The more of XX comprised is we closed contract, is median of than million. with of stated is billion new accelerating senior $X investment communities, housing a different investments with $X.X the Our transactions billion under ago. housing

targeted upside that should continue fundamentals, market to due demonstrated have We operating competitive pricing. communities strong and and NOI grow the increased leverage have performance market-leading to high-performing with

a are generally have living, communities The living we services, independent and large-scale assisted of memory including variety offering purchased care.

basis replacement per unit, significant costs. is in which We a an attractive discount are purchasing to investment communities $XXX,XXX of

are investments right in strike These our zone.

to X% afford The Our stated we affordability the year length X% to costs. X markets of greater supportive replacement IRR, to entering can where new NOI our Xx and expected residents below are of stay. in criteria purchase financial low we than mid-teens continue is unlevered yield,

a of absorption significant We in supply growing demographics minimal next a and have selected. we markets years new the the during also few expected opportunity net as result

housing, our currently housing includes acquisition strategic to operated these an independent with mix acquired are continue by markets our the senior as XX we aligning years. over investment memory on communities growth as living, occupancy management price with agreements. growth located where expand a senior We existing in operators in welcoming care, This communities potential and significant communities offering line management. well new and high-performing few of assisted relationships I'll in Grace support focus next value-creating that operator spotlight opportunity the living

At XX% as opportunity, investment benefit occupancy, the this from high noted earlier. operating should leverage I

with to consistent We investment metrics. and who low X% expect with our yield a year our IRRs existing target mid-teen relationship operator. Grace, financial X% Ventas is strong unlevered X expands performing This

high-performing remains priority housing investment Our housing we value-creating our we financial returns. effectively investments. growth both in pursue communities organic senior housing with are senior pipeline as summary, In executing active Bob? on attractive senior continue and to

Robert Probst

Ventas of quarter. I'll year. sheet reported close and in to overview our common an with third income update of per our our attributable you, balance provide Justin. $X.XX of give financial net improved for the share outlook results, an the stockholders Thank

FFO normalized year-over-year. $X.XX QX X% a represents increase per of Our share

over total growth by led third company cash X.X% SHOP. Our the increased same-store XX% in NOI in quarter, portfolio

or basis. same-store segment and in X% increased NOI a Our research over outpatient OMAR, medical quarter grew year-to-date the cash on third and X%

new portfolio, in executing deals our on Tenant X.X of X million total square the quarter points year. remain of from square XX% of the and In for feet outpatient prior and retention basis year-to-date. a medical active team has improved feet Pete million renewal leasing, XXX

improved occupancy year-over-year third points result, in a same-store XX the outpatient quarter. medical As basis

both and rents. X% the year-to-date, portfolio and Our higher cash nearly led in same-store by leasing university-based third NOI research new increased quarter by

portfolio demand. well to research is core and Our performing strengthen our very markets institutional

via senior described, billion funded of an housing Justin of have average senior housing or billion investments our closed dispositions. investments price equity We we increased in of of at under $XX.XX contract. closed and housing issuance As senior $X.X $XXX investments billion the $X.X in completed million with $X.X

improved quarter, second the funded an of growth our million since that $XXX materially note equity our sheet. I'd balance strategy, approximately housing Consistent have at $XX.XX. price raised senior average organic have we with in of investments SHOP equity

has X.Xx of the have of targeted debt line we sight by the to net and our Xx to XQ Our of range. since improved start XX EBITDA X to basis now points year,

of $X.X robust also have current We liquidity billion.

debt addressed a through a We long the prior including XXXX September issued in X% our maturing of and run-up to refinanced proactively XXXX have portion million maturities, our in rates. debt bonds $XXX recent

our of I'll this time $X.XX close We've guidance. $X.XX. common with our income share attributable We outlook expect the We to guidance FFO share. $X.XX net range year. normalized our increased of diluted for per per now from 'XX year raised full the updated third XXXX from to for midpoint previous the stockholders midpoint to $X.XX to

notes. Our same-store of by higher growth by dilutive strong partially from price expectations, increased driven exchangeable a investment impact our year is and on SHOP improved midpoint $X.XX improvement full stock $X.XX our offset performance a activity

investments, our average XXXX accretion. thereby on $X.X billion note middle our housing in would the I basis closing of the senior $X.X QX billion weighted in a limiting that of

raised have as midpoint, cash same-store NOI our NOI year-over-year SHOP at expectation year-over-year. same-store company well to midpoint XX% cash our as growth approximate X.X% We now total increased the to

For additional earnings please QX presentation and supplemental assumptions, our XXXX our deck to see posted website. guidance

with pleased again once this in results and improved have our and are the we full year so both the to close, far quarter expectations. year To

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

Operator

Instructions] [Operator question line from of Citi. Nick comes Joseph first the from Your

Nicholas Joseph

obviously, We outlook? just it the are but that you're you overall others to what or within mentioned question everything. yet, to runway as the long from that, early seen the wondering in and what just could expenses, the starts indicators is just operating fundamentals, you strong of supply given the pricing, haven't I industry seeing of forward Debbie, my lenders data kind reemerge. sector guess that start obviously kind the the improving spur occupancy, talk could really what

Debra Cafaro

Thanks, Nick.

inventory little customer starting mentioned, as So growing. the a increases think at at the resident quarter, over I I annual units over in of percentage year X,XXX of a XXX,XXX a and seeing as record just were this construction we're base

And so have levels, which new including including including lending, justify to we're to considerations net still seeing higher supply constrained and cost be significantly construction. would

it and lag a there a occupancy. financial is long is we know We runway. really crisis, was in we peaked the years or there saw as So in then X significant X

And growing baby X conditions now a boomers We enter far few see as years population grew favorable the X% that over less I the population. and now than it's start function from mentioned, in for senior the the to XX%. population step and years over-XX

good all of So long see it it is a runway we grow and we why growth and this combination organic external really about to winner. that feel and that's is

Nicholas Joseph

just And then in that in ramp on housing. investments maybe senior

a I can of the into mode kind that the perspective, this now that also seller why set talk given opportunity would think the of sell you're kind this at about from Just runway, improvements point seeing there? and seller runway? that see can you fundamental

Debra Cafaro

good a Yes, question.

J. Hutchens

Justin. It's Yes.

or repeat have done closed just that were If have that some transactions sellers. either a of X we've what, us groups those about contract. transactions at been the like, with in. These before catching were look developers instance, for came it you to under been, to just to billion back track XX $X.X we've just good There with again, given we record do them. are There's

were of And variety then firms who reasons. just there's of handful for a selling a PE

our really certain a that the are but -- and and and a selling opportunity described, clear also think all it us, players our that well. great Debbie the great as created strength backdrop given for very given opportunity fundamentals good for runway flexibility, financial creates the I it's a and buying it that's has capabilities long

pipeline. have certainly opportunities in growing our been the So

Debra Cafaro

in perform should that. assets better And

Operator

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

James Kammert

XX just cohort cross-section about on study operators? occupied If section a a I or case of could communities very down communities. units on drill your Justin Page the and that whole XXX of the of high cross thinking Was

J. Hutchens

Yes.

were the really the of Canada, even you study, particularly had focused a were majority So a case cross-section, we -- in cross-section it's of a U.S. do in have I X them communities, AL, IL, in on a most those couple -- mix and

for achieve have to we're in I So best it does board. market the be really occupied already across speak we or that themselves the bake X pursued we opportunity think, pipeline the And that acquisition a lot that with to communities many have really standard unit going really have the of established market XXX% as bonafide have certainly, ahead. And leaders. upside of those are leaders that opportunity,

and that we're see to pushing it support really start to we're outcome, happening. pleased So

James Kammert

Great. And question, may. then a second I if

housing of their rates about are Are or to to does you penetration by that Just back some of of how all in for people your what -- the decreasing tell increasing track -- these you collection get data senior some cohort, age usage secularly, share as or how your wealth markets? able product? sort stepping more insight

J. Hutchens

to tell why number We tends a in rate. to going those was of can now utilization absorption we is it and there's to penetration tend affordability. affordability of track you have the basically XX%. I our follow it's up. across one net where higher sector at Well, of Penetration trended projections. that the go that reasons senior It's it's you're markets, prefer There's housing we very into factors It's have penetration track do -- pre-pandemic. strong exactly because markets -- a

It's the time kind mean, where off results clearly, if to fallen need a was, penetration much at don't move get multiyear a this we're see to really back growth rate in that years really it anticipating I and has over you opportunity, little few occupancy ago, bit. to penetration of all.

We're that helpful certainly these performance we and have markets, to selecting affordability. demographic, And as markets a platform foremost, strong ensure and it's strong there's the those characteristics. to there's said, in have strong really tailwinds. good have that, very Debbie So aging first

Operator

Your comes from the next Killechawski line from of Fargo. question John Wells

Unknown Analyst

guide I I wasn't there on missed and updated the but SHOP. -- an RevPOR, I noticed Just for me this, guide. if forgive OpExPOR

kind X.X are there's heading This was back quarter, in going OpExPOR to softer came that your I X.X, and of export Curious softer a conservatism guidance, also believe those your seeing X.X with it XQ? XQ little guidance? and line at balancing year-to-date. but that's out. X into if maybe any kind that RevPOR are in just RevPOR both -- Or Is you XQ and of

J. Hutchens

Right.

on we And that's So first expect how to focus X, of all, basis around really we that's spread that and XXX points. the been the between continue.

was So guidance gave. update we That a that's pretty number for that considered the good proxy mentioned, that in you full been where we've year running.

the and -- performance. spread XXX basis year-to-date the in point is reflected So

Robert Probst

Put indicator supplemental and I piece of of year-to-date growth in good the this parts way is another say RevPOR about OpExPOR Bob. we that terms year. a as -- would in P&L the the think

Unknown Analyst

and And touch specifically, it. maybe Atria's talk then your more on bifurcate the jumping just but tenants Got if any maybe and top to IL anything AL newsworthy. there's and about Atria, others, just But you portfolios? please performance could

J. Hutchens

sure. Yes,

largest is Atria So shop our operator.

them have with where focus performer been our had the footprint in helping We've really portfolio a we legacy a in over them to then have their relationship and been working portfolio. markets. Canada, and into in They've legacy U.S. good We a really consistently time cluster holiday the portfolio. we've

Atria so as a thought the platform. with you at have national point, of might And -- X

well Holiday year-over-year, to The super as in them had occupancy has regional we've solid because a getting We're portfolio progress. a portfolio. a They're clustered. of work contributor growth been in big the though. legacy think the they're I Now execution

been what of around year-over-year. we're growth So XXX we has seeing basis occupancy like points

high they're been the terms also occupied, of Groupe would has that, Canada out U.S. one driving to other key that I the in XX% Atria where boxes Canada checking the mentioned occupancy, in contributor I is a of leaders So say our Maurice. the in they're being

of a about. and place a now. new been to Atria of direction we're enthusiasm as CEO quarters and the brought in There's couple pleased Holly experience at She's really well. company that a lot has for

Operator

from comes line Spector of question next Your Bank from Jeff the of America.

Jeffrey Spector

life the into into life on My coming time will months there first a lean Or lean be Is it to science time over to science? question opportunities. again?

Debra Cafaro

is we prioritizing Hi, now, definitely it's long conditional But really in executing. senior Debbie. our the right in Jeff, We're that business housing key And we're investing housing. the that's investing in believe focus to certainly, senior strategy term.

Jeffrey Spector

margins . if across quarter? different then during question, And It Can they my I explain quarter? the I Fair. compressed looks you Okay. second apologize formats. can during like margins And discuss you the missed the this. the

Robert Probst

us, SHOP see, and have driven renewals So basis, we impacted that kind That's on what, in see growth so there's year-over-year, -- of seeing OpExPOR quarter, expect we've expenses -- expansion there's basis that a expansion. the -- RevPOR, second XXX given there's are just so by typically, rate, a between change improvement had the expense There we having But sequential little of some that don't points revenue we quarter. a and expansion. sequentially. relative what we're we year-over-year margin is there's had growth -- -- occupancy we're third the faced mentioned we to was by -- had, certainly -- metric, and overall margin bit insurance seasonal of decline for third from to

Operator

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

Ronald Kamdem

Just X quick ones.

capital they and clear equity, be the have going to when more ramping thoughts of I you private 'XX start far everything becoming at you so updated space into more and sort is so not on think you why think strong. is to acquisition think that done and the come space, look it will if With any the good? private Maybe

J. Hutchens

Yes.

in cost of is put Justin The to the private Definitely, just again. would say haven't over really always and debt. conditions year past of the been supportive That's due capital private So availability is capital this comfortable circling. and again. used We're expect see fair advanced our to get very us the feel in we'll that But that competition we'll I would fundamentals share. competition facing given clearly position. that an really the

to have the see flexibility performance also to capabilities and strength from the drive others opportunities just standpoint. fantastical standpoint team We're might not. advantaged have underwrite where really where platform, We we financial advantaged outsized an and a

like really So -- to opportunity I'd continue compete. to like our

Ronald Kamdem

almost there there line growth pretty is question figure second is gain and Great. we trying any the I fruit And -- we're RevPOR, Just when year reasons anything my to sort is thinking I top look, that this XXX to what and is obviously next low-hanging numbers. occupancy out X.X obvious why should guess at bring. beyond there sustainability some trying I basis was, this look of slow? my we picked to And very about start question of X% year point guess almost think impressive year that Was the should be about? maybe maybe these sort of impressive.

J. Hutchens

Yes.

guidance I'd first agency to say, year-over-year versus thing year. a you One all, expenses in comparison this. is this -- answering going So costs give last of year flatter expectations that what we we're not did XXXX had

So metrics. core much now. out OpEx agency that labor is That of for pretty impacted system our

to that pricing that's these we all forward. fundamentals consider we're So the expect a But facing, the comp supply/demand, moving opportunity, continue. to

moving look forward. we'll about to forward So expectations talking more our

Operator

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

Georgi Dinkov

on separately, acquired is what's transition the Vikram. quarter? assets just This occupancy part growing for they pool? you the relative are same-store become of to And and give some same-store on details average Can of the the assets how would us Georgi when this the

Debra Cafaro

Yes.

Our the same-store question. pool for thanks --

same-store our by portfolio. total start to pool the SHOP of share really important that saying is lion's it's think our I

And so is representation the a good performance. of overall

J. Hutchens

Yes.

good pool of we're honestly, forward really that the transitioned occupancy NOI been had those it's that a in moving into reporting year the There's communities, based opportunity same-store pool we've are that we've on. looking case, to lot will come transition already in And But largely last communities. on growth, we we represented the forward pool. when in talk those already. that So some about

terms continue modified XX%. leaders the your acquisitions, we're question and been of board. markets for really and that drive of and reason is services in have price upside to around that proven around and in XX%, track care quality a market acquisition so have outperform. has that more occupancy across we targeting delivering Also, see off that in communities the the That's should And best-in-class can record

like And so are we how really like acquisitions -- positioned. the

Georgi Dinkov

in Okay. second question allocation. of capital And just a terms

monetizing is nearly Canadian of how the and about the entire portfolio it Given assets? think for portfolio you part fully or redeploying do maybe occupied,

Debra Cafaro

incredible Thanks The terrific contributor to is a question. you're Canadian to continues the be right. an it and tool growth. has for portfolio Yes, been really significant

it that SHOP the and a in to mean so way a with want to philosophy instead value provides that operators we And great is related performance. occupancy leveraging our drive basically work our Yes. to grow manage portfolio footprint. continue I by to and

Operator

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

Richard Anderson

for far back and did maybe you much sort on yields of lack the assets visibility. activity terms in the activity. X% by look question at senior because your you When far, is multifamily of about so your then think So housing industrial outlook cap the X%, better competition debt. on of to lack X%, you relative can to argue PE And of compare of that I the for X%, rates, you

do people the of just component, can't PE putting Is lack it. that the competition aside

to talent You assets. need a these some certain level go of of operating after

think always comes question, we XXXX of about X, to it type XXX basis should set? you And correlated of that estimates? the do a about cost back? it's to be spread going we limited that equity your be if in think Or is point competitive range the when So thinking way is a

Debra Cafaro

be there on is the differentiating. think hit a itself that but It way. and in expertise of analytics There competition reasons you is that it are I now. investment a only experience Obviously, that and market, and is limited important And are that We feeds very it Look, business opportunities enjoying I I'll lot. also [indiscernible] helping. because Rich. more there selling bit. multiple of and a team think, our little a something on, the cost require significant and capital the Thanks, we're that positive --

scale, the the we have have we data. so And

seeing of us senior We XX have should compelling is and competition we having important more of But that really share. is the get we and enable housing keep competitive of we competitive we know the and moat Justin how all that the be that create a that competition with on, that and the are a relationships over operated And that I dating investment their really significant course, very reason, last things left, hit you think, those industry to owner opportunity. premier to operators. a have years, advantage always experience site global have than with the and

Richard Anderson

the is points where AFFO And XXX terms investing kind thinking inverse -- multiple? just do spread you in an of of you're of basis if yield AFFO

Debra Cafaro

look, to yes, shareholder -- we'll pleased time. us to goes now, delivering for metric our and do a right strong stock mean our working be that's here continue mean, very over so hopefully, calculus, it's even... it and for performance we're that variable And and I changes I into obviously for,

Richard Anderson

Last you're a decision would much, Brookdale. know day go to a you I stop, maybe but little Could going by not bit XX full to allow more. say question that them they Or got then. to? past November is on their know you

your allow perhaps Just to curious to negotiation next year? flexibility the extend into what is

Debra Cafaro

has . goes mean, date beyond notice contractual renew longer feel the that the option to we I it Well, no both. in

Operator

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

Juan Sanabria

versus which sure a indicators. provide about about Would you and/or same-store kind experienced to or thinking able rent what OI Jan coming hoping a occupancy would the X, of what in SHOP talk bit could about SHOP on I'm you year bumps you're suggest 'XX? this October a you Just for lead be little comment the data

J. Hutchens

I'm this. try to answer going to

do just too giving is to I'm without rent the environment favorable the 'XX think pricing. not information but going with going start up numbers, much here, into the to get because for we're the we So

we'll that in the on so And more future. report

had throughout the than true leading the year. been and entire That true was -- indicators, third through year, tours it's have of terms we've running last leads higher in In the October. quarter,

driving that's move-ins So obviously and growth. occupancy

I doorstep. growth, As industry-leading to and to ability had starts mentioned, we've our that business drive really with occupancy all the

encouraged the season with see this by So activity performance that we're that pleased even late that to seeing. in the we're and

Juan Sanabria

vacant your question a just then And couple Okay. on I here. guess X days,

shrinking there is of can person people an for give they're moves you out, vacant people that associated element start You fair periods. many away. unfortunately pass I actually mentioned in with How And a where notice a notice those thought, days? amount booking revenues moving

J. Hutchens

is there that from so range can days the in resident XX So to depending no there's on days periods miss anywhere -- XX agreements circumstances.

available. residents. opportunity have unit you for a also when There's new into the So become visibility

you prospective If that's demand about making to going unit. they you're access community make to to experiencing the the that units, X sure a in think have are residents want

we're they they So possession proactively really about you happens take financial But if even don't, think about. oftentimes. what that talking if

belongings, furnished. a It's like it's We're might a have operator but foot turnaround to X our homes. you're has talking more -- a U-turn. we complex a not nothing touch-up some you and can a square that has because hours unit is in targets needs And add it's pain. about But few personal than own XXX lightly It XX-minute quickly. that, deep extremely It a If simple. claim it -- that. this happen

can plan You for it.

most your the with units. X market making in to so demand market. and opportunity really we're what do best because this the that importantly, of That to yourself And positioning combined as leader the have the you on doorstep leads

Operator

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

Omotayo Okusanya

things in But involved in helpful. makes I'm of election answered, Most would senior kind curious out of Justin been of could questions looking are housing potentially world one anything maybe through harder we of top guys there's for regulation there health impact to be anything at my be a as at is if and whole kind care Yes. it particular, going mind of a if we're again, the looking health you care. end have Debbie where but that of PE as season, up that kind and in

Debra Cafaro

-- that kind equity to on estate private real advantaged at estate public a that is depending an who on who's questions the elected position of most longevity as large, driving a think I but have and -- have But have capital. answered. of though we have than right significant because guys economy got were we be products . better impacts you happens that platform election. that think position of in private. your it we demand, there. the that the long would would should of on with relative glad There would we're focused really spot in access in rates regardless even have performance company Well, public estate in participate we may should The I private really be or cost a do market consumer-driven limited as an impact have and of do a the we in this public is real now, real could It out we sector what because I'm advantage are affect favorable have to

Operator

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

Michael Stroyeck

Maybe medical on portfolio. one outpatient the

ELP same-store of? in been pool. And legacy occupancy just there hanging now part already that growth has quantify just taken portfolio or that, that recent in lowest NOI occupancy you much upside be is how that actually within Can those deceleration NOI remains may quarters, any portfolio gains assets? now across or of the So care the fruit

Peter Bulgarelli

Thanks, Pete. Yes. the appreciate I question. This is Michael.

buildings quarterly this in level services work to same-store relate the replaced really buildings. virtually contracts XX the ASA hard replaced teams. we management the of and replaced to And leasing XXX% property We've We've to applying that at Just to the we've half set, we've XX the and got quarter. ELP about portfolio. the enter brokers pool Lillibridge been the for playbook

So tenant you're a quartile bottom went the see to from starting quartile. results, of to satisfaction the third lot

is happy of and satisfaction. Occupancy So up about we're result has surprisingly, really as is retention up then happier growth. that. not NOI been so tenant And a

stronger this be a got than we We really we're for excited us outlook . solid when first forward. this portfolio that in portfolio think is all anything, that. So what it was about going growth on our will If

Debra Cafaro

that the improvement to the And X-plus occupancy there's level probably percent portfolio it the get is. of rest to potential

occupancy upside there So from . growth.

Robert Probst

Absolutely.

Michael Stroyeck

on the you ROFO acuity in That's actual Anything that? would quarter. on be provide then can then details secured during underlying it. occupancy on the the And there the of investment Got details properties loan additional provide levels, mix? location, any And helpful. maybe some just terms you surrounding Could helpful.

J. Hutchens

Yes, sure. the Seattle living product. one Living. in attractive independent it It's housing -- high and senior living of ] Justin. and in that mix a Yes, memory it's plant. this very country, It's is assisted This a has a unique Senior physical assets quite opportunity price high rise own is It's to [ point, of frankly. high-quality the Merono care potentially

anywhere loan. the senior from rents month good $XX,XXX to get a are opportunity to per secured loan. You It's and $XX,XXX get a a high-yield

So we're lender. the only

properties exciting potentially it. enhancements. to have other We But is credit and I think us interesting and buying what's collateral most

asset have for of like neat return. a and opportunity type it we a right just the money a typical this, was we're buyer Clearly, put So at nice an ROFO. out to really

Debra Cafaro

Cambridge potential the ownership.

Operator

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

Michael Carroll

was don't the And that like on I I comment hold think operators, individual that about changes you guys or XXXX? into you results talk in implemented on more performing if details you're sustainable holiday provide last can you taken they've know August, better really seeing but call, did the earlier and to how those wondering you have they're going are

J. Hutchens

Yes.

it performance equal has tenant about overall to living strong overall in there's that. just well. part to been I way Independent asset. other a operator occupancy growth and higher been think to had And contributor the also Holiday to best independent occupied probably We've strong that operators, the tends the talk our really really There's of really that as is U.S. demand. living we've is Living that had. a attack be

leverage. very high all it operating So

from the and it board. occupancy But to be as progress an living a momentum NOI expect in the we've seen product so across independent really And grows, big standpoint. we contributor good

Michael Carroll

summer? mean occupancy. start then trying -- that? I something you then And understand disclose? throughout And I question answered And to Does apologies. I I in accelerate is the spot occupancy have seen you occupancy you what's just late mean, tail the think think trend if Justin, in if was the you see mid-summer trends off can don't the of that Okay. to at that, there's But really there's quarter. about did, about of you earlier a really the seasonal I end the like quarter. believe I what kind if in I'm question didn't, that typical it know you

Debra Cafaro

we and talked here had third. it Justin the and We sequential occupancy growth about repeat to great can second average from the

J. Hutchens

Yes.

key see is September, that in in a that the typically, period. seasonality during to also to made typical So selling the quarter. fees It of you occupancy in going is downturn come see occupancy would fourth growth is most the

performance that quarter seeing that. expecting so in not the We far. we've the We're in seen growth are occupancy fourth based on

regard. to off is in that good everything really So a start

had XXX as of top and XX versus our and when XX up that's XXX about we you compare was the across been us I top talked sector the growth points we've well, We've think really strong. the to -- outperformance then our markets, growth basis notable, sequential in

XXX And so outperformance XX I we're now as points -- points. mentioned, versus basis basis

very growth So I Xx all and in third occupancy indicators the occupancy sector And quarter. as our remain mentioned, the expectations sequential confident. around the leading

a so to far. leading good quarter that's So fourth

Operator

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

Michael Mueller

equity substantially I fully if fund expecting ahead are again? or you to to guess XXXX, look you acquisitions

Robert Probst

Yes, this is Bob. I'll take that one.

that is the beginning the equity, been there participation. to that housing that's And see us. And working laid fund executing grow XX but has can which market year. our we been at Clearly, we've our improved been portfolio, senior out you behind of on in in which investing has points the that strategy So successful only very senior basis the growth our in if in housing playbook. also year-to-date. for to the with not , is

working, So can given more that what continue. to we I'd is playbook to. that be conditions, like [indiscernible] And we're market the and like up hope

Michael Mueller

it. Got

SHOP? Brookdale you a the the of this Okay. And can lease us the transitions at sense question, second full to point initial if drag give then

Debra Cafaro

NOI would comment the Well, lease yes. remember transition -- has that standpoint or is I to rent. to Remember, SHOP, if covered on EBITDAR the that an is there's what from well

rent. there's an so EBITDAR to of And compared excess amount

to to be what conversion fact of as into account you favorable have taken of that's pattern. a the consider a lease would Brookdale would SHOP. be that And whole So the impact

Michael Mueller

. it. Got

Debra Cafaro

you Do sense? There's that what more . -- make is that Okay, than rent. EBITDAR you're Does good. cash saying?

Operator

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

Wesley Golladay

deferred and just CapEx quick ROI be an those there Brookdale Would potentially opportunity assets? I follow-up com. the on a had on

J. Hutchens

Justin.

renew. think way Brookdale at So I they mean is to option best that at an look stage have I to this the

if review. be market to subject that's escalator, to X% renew, X%, then could so XXXX, they And a there's lease there's X% a fair XX%

of opportunity. obviously, playbook. we kind agreed it SHOP hybrid becomes would the And do run that be they some a the if mutually opportunity deal, And don't there's to then like If upon.

have We a Ventas platform. OI

We and have occupancy know significant tailwinds. that they're proven where been have when we We've drive in great well-established and to operators markets to turnaround. invest have

-- all options so a But it's coming really the down opportunity. and the are deadline. And good there's table it's to right the on now,

Debra Cafaro

[indiscernible] And favorable.

Wesley Golladay

about I quantify more was some now Okay. Can year? finalized. is you revisiting moving us everything next -- impact and Kindred. there that about know the talk of for rent Fantastic. that noncash around noncash the tell then And maybe or the

Robert Probst

this terms in in estimate release. at much this our time The details are And press Bob. quarter noncash this frankly, about and Yes, of in we the in impact pretty the pull the forward with this line, lease. is extension in of we for So lease of year, of quarter the the that's of those where were terms reduction talked effectively all the last the last rent year. this restructure

refer as expected. for all the but pretty much I'd to So it's details, . you that

Operator

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

Nicholas Yulico

I Can you Just going The X is. day senior over guess, back the about yield yield the the on are or closing to that. $XXX closed expected just X.X% talk housing investments, already. what that partially million

NOI would growth just next much assumed how you assets So is understand the for year?

Debra Cafaro

I could yields Xs, kind acquisition. higher that after you'd next are number that current Nick, have go that yield Yes. kind of in X a into the it's months over the you mean, the expect XX of low of Debbie kind X.X% year

growth assets. the So in there's

Nicholas Yulico

about of in talk then leasing? is the of just second what you the just can terms after Kindred the LTAC that? reason question the to And was that triggered Okay. What do purchase, resolving

Debra Cafaro

Sure.

really experience a used has toolbox tools that these Kindred had situations. resolution favorable with we our and of the a of in in our lot So types

positive really coverage So improve with the have the well-performing trends. they coverage that all product release of philosophy on fit the coverage in up and that their they because in will improvement was assets it additional investments goal to bring really lease, have to of and master EBITDA overall

it Kindred's improved significantly really profile. And so credit is

its helps believes improve and stronger task it good sheet. return a for it risk-adjusted them Kindred that tenant helps overall balance with made to it enables So a because --

in will just along So us potential it's performance which been the overall, in warrants give rent, nicely upside if or with revenue-based improved. valuation

would an that overall it's for approach stakeholders. to situations we get these holistic always our best do in the as So an outcome is

Operator

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

Austin Wurschmidt

Great. that What's the I'm that have continues under given average you occupancy across plus year? or senior more prepared buy tail the you've flow-through or your assets highlighted housing yielding if or contract pursuing may even capital close to of assets or a to And in improves lower in this longer curious not XX% consider profile XX% improve, range remarks? occupancy it the just to assets or if the as attractive closed you'd that to occupancy your growth, or whether cost

Debra Cafaro

our under question. and really what really right that a financial objectives are is in that -- way the terms we're in What are. now fair Great that investments made down we we've or contract strategic of right like

we profile, think of mentioned really remarks, as really So high kind I and we in and growth a want risk-adjusted them. attractive a that on yields my significant because very immediate embedded executing in good And have that's return. continue they profile, to it's

lines doing, Now that along darn could feel which the but return we exciting. aperture is the same the have we're to better risk-adjusted you've than pretty expand of or currently we what is what described, the

Austin Wurschmidt

back would on a then outcome And of I around great fair. in And seems between senior the internal all-or-nothing view to given Brookdale, acquisitions. just the this renewal. be prioritizing the housing kind I like That's mean why something guess, going avenue. table

something what understand me in like. might help of kind look just So outcome between

J. Hutchens

opportunity the renew. have has or of those some you're our all in from SHOP the mean, Brookdale to I is Well, perspective, portfolio. the But communities option like our -- reality we to

decision with sits So the really them.

the some to What really really community playbook see and But to to from is have of something it Brookdale's If in mentioned. decision opportunity what win like pursue could the need happen SHOP hypothetical. there a we I go move where there. we then that's is, being between amount go and is the have of we'll

Debra Cafaro

than and for. look out, can what something always . There Yes. better binary a always be we that's

Operator

no turn I are over for questions back remarks. at there this and further CEO, time. would call like the Cafaro, A. Chairman to As Debra to closing

Debra Cafaro

in the your much. call John, Vegas Ventas our to for your you participants I all want We and so look of soon. interest participation seeing thank forward Las to really today. thanks in in

Operator

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

now may You disconnect.

Ventas (VTR) 31 Oct 242024 Q3 Earnings call transcript