VTR - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. My name is Gail, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ventas Fourth Quarter and Full Year 2024 Earnings Results conference call. [Operator Instructions]

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

Bill Grant

quarter and the Ventas Gail, Conference everyone, welcome which and and Yesterday, and presentation Thank information website supplemental Quarter good at and the package, fourth year full Fourth issued available Results earnings Full to release, we materials on you, are our morning, XXXX Ventas Year Call. XXXX ir.ventasreit.com.

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

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

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

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

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

Debra Cafaro

want of Ventas really Thank Fourth I'm year Call. Earnings BJ. to our XXXX Quarter in and welcome XXXX. Ventas discuss participants other I happy investment powered delivered Today, the increasing you, in and Full in shareholders expectations for by unprecedented to and strong participation also opportunity activity our to senior multiyear introduce our growth momentum, With our favorable our the housing. I'm results, to growth pleased XXXX. all

to stockholders strong positive increased X%. and outlook, quarterly our by results dividend on also Building we've our

XXXX, commitment aging my like focus company I'd within thank benefit enable colleagues executed that to population. continue value exceptional our excellence. we the growing Strategy to for its position XXX effectively large We creating as advantaged The and their in on a for economy and and from stakeholders on longevity our environments

investments housing. year, we value-creating senior delivered our our portfolio. significant flow and We NOI senior growth the the in portfolio growth multiyear on made drove took cash focused senior throughout from housing During opportunity housing unprecedented of advantage

NOI normalized year year $X.XX, a delivered end the Ventas guidance the results. high our XXXX FFO nearly full of row growth. above cash of third per discuss Let's grew same-store XX%, share double-digit SHOP of in range.

of in As was communities, increasing points results. same-store communities of the demand, compelling year, Justin well-positioned together occupancy occupancy the and minimis came XXX secular at deliver with favorable outperformance year our to basis year-over-year in advantaged Ventas' supply, forecast a beginning markets platform XXXX de

I providers care extraordinary also for their outstanding recognize and want the recent fires. to the their families, during service their residents California including to actions

senior our operator $X pipeline In XXXX, in completed well-defined advantages on These investments accretive knowledgeable a which relationships include criteria were competitive our much and data focused and analytics, also we operational met our opportunities over using experienced, and investments housing. housing, from of team. financial bigger billion senior in selected

the of with FFO created growth per multiyear in and our funded senior accretion, portfolio, investments, added they participation our share opportunity value. rate, deleveraging increased expansion through equity, housing These growth improved our accelerated

our Compounding triple total net third medical the strategy, growth portfolios leverage growth achieved our strong by a our we EBITDA, and to driving same-store result NOI outpatient performance. of in to nearly our the cash XX% external in throughout and targeted organic annualized our XXXX, X% research SHOP SHOP, company significantly our year-end. XXXX, in of range, grew scale prong also enter portfolio. long-term reached our flow growth improved cash of growth lease in $X.X With all SHOP As NOI and supplemented both billion from NOI

Started during VIM, Investment the We VIM also over billion increase or Management platform, year. $X XXXX, has management. Ventas in assets in our under

drive intend accretive SHOP value footprint expand create on investments housing. to to are opportunities we the forward, for with senior continue focused our excited about we Looking and To growth ahead. stockholders, SHOP

by NOI business SHOP our of our year-end. As a expect we result, represent to XX% over

of we XXXX during FFO year. per to we If in our even the this upper anticipates benefit while, growing strength led put on Our midpoint enabling the echelon we flexibility X% share us to And normalized exceptional profile environments the the at would SHOP. growth achieved, REITs. of growth, enhance by will aging as guidance maintain further and All large our also financial that population. a and commitment expect focus

clear: it a growth; dividend. in proposition increase So our FFO further for in X% sheet and our investment NOI improve value top share per XXXX our investors growth off is XXXX with deliver property growth, balance quarterly top-tier and

build the about optimistic and competitive are beyond. our continues advantages. and to its XXXX remain company Conditions continued success We favorable for

win We it it. to in are

innings are fallen the have generally surging, to developments opportunity the in feasible. new and historic over-XX not as housing senior We are in is early construction lows starts growth still of multiyear this population

also to compelling expect talent. grow as operating top positive leverage to attractive with continue whose to We benefit and demand, environment, secular favorable terrific a pricing continue team, experienced from opportunities, investment ranks a robust rise occupancies

to it I'll With over turn Justin. that,

J. Hutchens

Thank strategy senior Debbie. you, to on our a on external both We profitable portfolio execute organic growth. in updates growth very give our deliver value-creating had and exciting fronts. I'll and year on housing successful

of growth. the third platform initiatives year relationships growth. our collaborative Ventas with operators. XXXX marked in NOI SHOP organic high-performing a very with I'm double-digit happy same-store with and OI-driven the row Starting of our execution SHOP

and contributions occupancy led delivered Our geographies across asset were types. by results

grew occupancy Total and which the was XXX basis our SHOP points. fourth growth at versus Full grew quarter, guidance initial SHOP XXX XX%, our of same-store end points range. In and same-store guidance basis is the high grew million. cash the U.S. NOI by year XX% $XXX occupancy of same-store NOI

We in growth. are markets occupancy outperforming our

basis Top beating assisted communities by across were markets basis points NIC NIC benchmark and XXX broad-based XXX shop points. These the independent results in grew living. the living XX U.S. Our

The favorable. our our are we exceptionally dynamics supply forward, are senior across dimensions. housing and Moving highly demand multiple in optimistic sector about business

XX% turning the driving period, the age for significant XX. Over begins projected by the the an generation group during years, as XX+ senior in this will This boomer demand U.S. next X is population surge experience housing. unprecedented grow to senior baby

construction new construction the to at opportunity before. starts inventory in are first markets unlike growth We years, These we constrained all-time factors and absorption Meanwhile, compelling race low. lowest an several record an characteristics with the net long remain projected seen our the create new number just at extraordinary remains combined as finished supply-demand of lap in over upcoming have anything a the on years. next

continue a growth is position portfolio. to our in drive Ventas in strong SHOP to

Ventas data and We optimizes OI portfolio competitive by experiential positioning have which favorable analytics insights, proprietary and actions underscore with driven performance.

growth consistently expanding Our SHOP tremendous delivered while their share market of network has in operators capturing respective XX regions.

ahead. to immense together opportunities closely capture the them working to committed are We with

a aligned performance. care of through the and We approach delivering differentiated collaboration offer exceptional goal services and

our refresh and to positioning. therefore, continue our We competitive on community improving environment of execute improving and working living the communities, program,

We at units. projects resident completed modernized over have including XXX year-end, refreshed XXX X,XXX over break employee and rooms

on key XX by should the projects another our drive season enhance NOI. further are to complete year, refresh this We selling which pace ability to

NOI, markets a structure previously to This as portfolio housing Speaking SHOP to large-scale are located that to we in our with by triple senior from about occupied XX of is communities expand SHOP. excited absorption. reposition great low communities the opportunity net converting announced, projected X,XXX of net driving strong are units comprising

strong performance. high-performing X communities these improving of transition to a to plans have with operators operating proven record track both We and transitioning

of environmental and improvements Ventas XX% execute to ultimately playbook the NOI occupied pricing, drive to occupancy, plan the the OI double We portfolio.

XX% conversion to in our by to project this enterprise the of account to Assuming X% our of over occurs the footprint we our of units for increase year, increase and end SHOP by portfolio NOI. number SHOP

embark we and Looking our The RevPOR key forward grow SHOP in a occupancy about about XXX highly to expense season, continue of X.X%. growth of of the we selling successful dependent on XXXX, we points Per will driven X%. our strength XX%. double-digit inflationary driving fourth operating to as revenue SHOP consecutive usual, basis range are year to a midpoint X%, stable is NOI our average in Furthermore, are outlook. around same-store growth portfolio. of growth Same-store NOI and by we relatively growth be trajectory of our of continued expected growth on results expect assuming to pricing XX% excited is multiyear

with Once points growth. off performance of occupancy growth expecting start. again, strong be accelerating a we to engine is to are over basis the XXX the occupancy January with U.S. continued

growth, SHOP opportunities the coming about are off as SHOP continue excited platform. ahead year are we organic and a unleash we Summarizing results, the strong to of our we advantage occupancy-driven of power

Moving on to part strategy. of our X

quarter value-creating We on continue and throughout senior in to growth fourth the XXXX. on execute housing external focused

discount investment we year in low fourth the For alone. a to investments, within X $X.X unlevered closed These fit squarely to XX% $X.X yield, on billion criteria, including mid-teens housing senior IRRs and year, significant including replacement the of cost. investments billion quarter expected NOI our full

high-performing of and meaningfully projected absorption portfolio of in-place upside This with with markets XX%. SHOP communities occupancy investment the communities activity expands addition are including new with strong average our net XX and

Even $X approximately billion. pace $X we our billion ultimately external with In billion maintaining pursuing approximately are this XXXX, and growth, on underwriting opportunities reviewed accelerated discipline. senior closing we of nearly housing of $XX

that are framework. market, within right for our Ventas investing a right have We the right asset, and ensures rigorous data-driven operator we process pursuing deal best

and Our experienced external team the executing focused we team. on to intend growth plans, remains our expand

and and of for of range present opportunities We reasons investment variety maturities. fund expect a debt with selling, from continue to potential our pipeline a compelling set coming large owners including will deals of a

investment equity, owner also of private profiles balanced includes activity operators, with and of capital. Our other a coming developers seller a transactions range mix from institutional

of which Looking advanced in are forward expect we expect housing XXXX, external senior and of our $X half already momentum, on first keep to weighted to be to of including billion line in year. the the investments, growth stages, we sight

and competition risk community. are in as of be seeing choice assets the there investment the reward may senior true even for housing. sellers, a favorable Ventas with housing senior more is brokers entire This as remains partner others

prospects transaction record Our scale, propel manage data growth moving to forward. should capabilities to industry help experience, our science and track platform

With investment very none, excited to mind, announce and of our capabilities Our are Russo, in Senior our Managing as team Director on second building strengths. that team continuously we are Investments. joining Alex I'm to

continue During has on value-creating demonstrated he at career external I and as growth our expect And on an focused we XX-year be exceptional investment will Alex execute to housing. financial addition Lazard, the his senior instrumental team to acumen.

call I'll to hand the Now Bob.

Robert Probst

performance finished XXXX share with I'll some X% quarter attributable outlook. you, normalized $X.XX. and our XXXX share by pleased of the for XXXX a with of net close Justin. in per the fourth increase periods. XXXX. represents year, year-over-year highlights share of in strong XXXX are we accomplished start both I'll our saying in full $X.XX per all $X.XX with FFO we income and Thank We

housing senior end the led exceeded pipeline. full on accretive year FFO our normalized SHOP execution result same-store of range, and by high investment The growth, our guidance

NOI property total cash reflecting NOI Our across in growth in our growth portfolio broad-based XXXX, X% company XX% same-store year-over-year grew SHOP. by nearly led

in compounding outpatient Our medical X% with business research continued expectations. growth and line our XXXX, in delivered of

year, the outpatient For research full X.X% grew X.X%. medical and increased

described, equity currently have in in billion total $X.X all an Justin $XXX million of since raised of share $X.X unsettled on housing raised XXXX $X.X forward to and third including equity. investments average We available we equity price senior approximately investments of quarter of billion As funded closed XXXX, the senior at XXXX. We billion fund approximately housing year-to-date $XX.XX.

leverage entered strategy, Consistent investments Xx. improvement balance basis our debt-to-EBITDA year-over-year net our now housing of our growth targeted strengthened funded and has At with sheet. equity XX senior further X.Xx, long-term point all SHOP X a to our is QX range in have

housing We in expect improvement senior driven growth. leverage by XXXX continued

billion liquidity XXXX quarter which proceeds note we included debt subsequently with ended XXXX XXXX. senior maturing pay of in used We $X the nearly of which issuance, down to first billion, of quarter third $X robust our from

with our Let's conclude XXXX outlook. full year

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

expense, or to share growth interest expect normalized from SHOP by represents accretive per business is midpoint, the the offset at we senior which share $X.XX and higher a housing partially posted increase driven and from investment share line per growth NOI the X% in XXXX. to FX FFO by price. activity, year-over-year $X.XX with higher The FFO We share range in $X.XX dilution $X.XX net FFO growth. in per normalized

growth year-over-year Our led XXXX approximates SHOP. by the total same-store company midpoint, X.XX% cash NOI guidance at

have with forwards. and to guidance equity these half of the housing of Our line $XXX in senior principally million and first XXXX, already close $X intend of to equity includes We in year. billion sight approximately waited raised the fund investments investments clear via

efforts. the to capital million we For also year, raise expect $XXX through recycling

rate from supplemental guidance of to Specific fulsome lower can refinancing and our posted our and be earnings maturing XXXX a presentation A assumes to in of more discussion found increase expense, assumptions compared debt net at our XXXX our QX to of interest high midpoint an year-over-year. cash guidance website. increase $X.XX balances

pleased advantaged To close, on our momentum entire share. in really per XXXX are growth Ventas this strategy executing The our XXXX. determined normalized we is in performance, team growth are with FFO to and delivering continue

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

Operator

So your question Bank. Instructions] from Okusanya [Operator line the Omotayo Deutsche first of comes with

Omotayo Okusanya

the So side building medical my is office question things. actually about of

occupancy in Just XXXX looking appears. some same-store But you NOI quarter, have it declines, growth. the at guidance, pretty your strong

the So whether refilling that results the have of quarter curious we about you're do is fourth to I'm that relative year? kind some trajectory Or what in space how the business, the just of expecting kind gains, of vacated occupancy guidance? think may that of 'XX in

Bill Grant

And XX% 'XX. than year. start you start in NOI. cycle seeing construction actually more had results in meaningful started it through more Really, We that and question. they the for online, Tayo, coming leasing. prior We leasing did as the Thanks, [indiscernible] your Yes.

or 'XX, already If a which you look at February. terrific we've XX% our we've leasing done is for of 'XX, -- start plan,

plans occupancy the gains our assume 'XX So corresponding growth. NOI for and

Omotayo Okusanya

you. Got

getting is may to if where, is sort point, showing regards Again, of capitalize Okay. one results. Curious favor? kind especially the clearly is housing. now you kind strategically, you and regards in to of VOI everyone what's kind and I demographic demographic supply/demand tailwinds on this happening at about aware your of the ask clearly things at of your in telling very That's helpful. doing and And in guys to should what point those up demand fundamentals higher anything occupancy that you're be -- further tailwind, again, in different of senior

J. Hutchens

Yes. Justin. it's Tayo,

that decisions extremely to the Ventas to investment operators. underscores markets, point It's assets. us really basis is invest deliver well well have to mid, And ahead, from whole really that's long and take it the important sustained that's ensuring focused. going that time. all the And the if helpful we going the decisions make of market power locally It's decisions, and really And that standpoint confidence decisions, a we it's data And because make. certain for growth us in we're the really perform particular opportunity key hyper is really disposition aspect we opportunity, term So the near, actions that gives assets on OI help our to it's comfort over and platform. investment, to positioned. looking most is the focus to of and

Omotayo Okusanya

and All right. outlook. the Congrats on the quarter

Operator

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

Nicholas Joseph

Nick here Michael. It's Joseph with

to on Just acquisition strategy, targeting wanted base assets. touch the more stabilized

yield rate hoping the about could of get the and those IRRs of where kind kind kind upside going you of what can I So sort was profile return you talk of push stabilized versus you in and of there? occupancy could

J. Hutchens

Yes, sure.

haven't can a We a that billion delivering growth. We There then are we're senior invest seen I we that. And high-quality, yield ensure really focused of helped and we're be a we to combination had of in had on because at. opportunity extremely combination and we where growth you the really it's the variety assets $X the before. pursue that have criteria asset. invest different So of started ultimately, that getting opportunities to find set being this we're look housing. now mentioned to looking we in only $XX to very forth, yield billion we're right unique that high-quality us has for, which -- high-performing this

high first the performing. occupancy XX% don't mean that and but doesn't These They're leaders. have pursuing foremost, market they is, asset So upside. we're are the occupied, that

opportunity as and XX% improve value should another continues -- they're in absorption only grow. plus strong scarcity come We as have will occupancy that markets increases, which that pricing opportunity, and have there's to occupancy

IRRs to larger growth, AL to we in, services. a buying tend IO memory markets the We're have and strong communities net and that and factoring are that's a We're a use absorption unlevered strong obviously, that have rate. cap low mix of and care affordability constant and mid-teens, in and

that So that's an that have assurance driving you growth really IRR. it's can

this like opportunity. we So

same that $X and We We're investment we're with in last that that's billion up continuing the well criteria. pursuing, 'XX we year. the with mentioned that used lining criteria

Nicholas Joseph

That's move potential acquisitions, -- identified also then that a of growth it helpful. would impact is those the we that both needle? very more And meaningfully basis? it on per Could the and just share XXXX. on Or future of kind see

Robert Probst

equity these get-go, good did year, Yes, quarter. news, the it's we all accretive Last from nearly the Nick, billion Bob. are $X.X in funded. fourth acquisitions

last was yields a year XX% So is activity And of was fourth accretive. it quarter weighted. lot the

part normalized to contribution, share. did of certainly sight of obviously, in year. will $X continue growth per what year. again, have X% line billion do So But in to we'll the we that's just to timing given strive The the the year-over-year new FFO lesser last

Operator

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

William John Kilichowski

that question this acquisitions looks the second curious now time circle just acquisition this drive And to last for how deal about the year then half 'XX? competitive right is Maybe and what maybe $X you quarter? changing room the and in at and billion I'm point guide. back all like the flow fourth the last versus of maybe talking environment to

J. Hutchens

guide the it billion Yes. $X confidence This was than million, $X is year. year, at ended pipeline we And up $XXX of remember, last around Well, have time last this first bigger already. we we all, billion. year's started

new around table seeing the that to seeing back more pipeline, we're the again. but been So There's some in more competition. we're sector have that certain coming the players of before and itself kind activity demonstrates at

asset we reasons. OI, is the this the in to and a making platform assets itself. we and then analytics, class, that are one sure few But capital it's track the and data in the operators. well-positioned advantage a the the Ventas important experience is picking One we records why I'm their emphasize we have The have competitive picking so there's that are operators reasons proud operators in classes their of of that we have And of markets. asset amount right because particular

of And a platform we we operators. that. to delivering sale many, manage not local can how and within multiple have the about manage markets, It's it's about

the amongst housing. platform senior market So turbocharged. it's even a differentiator of many that's pursues most taken This that's a that years to grow, is

well, we think I as the recent in to housing. competitive continuing And senior execute. forward do we've to opportunity a period we'll reentered we'll look think within and

William John Kilichowski

be maybe development here. just the then if How could we having RevPOR jump And are start development really close to what we need pencil? to it. would growth in cycle Got Like to out to inflect? sketch to delivery likely environment in when rate so your just there models and and a times think get typical maybe supply like can we would then neutral we

J. Hutchens

Right.

it's development, on cost, and it land anywhere needed anywhere varies now. to fronts, not from needed. debt seem you're market We looking not financing the a on on be could seeing based costs, There's really at. There's material doesn't And range like starts. the a anywhere by on for from it's what to and depending fronts higher and we're we development ways multiple And XX% justify source seeing really close. off are that big that we're the barriers think XX% then So -- it of spend. just wide a are market. rents were that's multiple It it's the labor price costs

Operator

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

Juan Sanabria

of your R&I and hoping impact Just a views on lack policies around NIH of Ventas' the assets? the and risk by changes business little or as a administration about funding the you new thereof bit result talk could

Debra Cafaro

Juan, it's Debbie.

just on that. briefly I'll touch So

XX is in the total our leads about NIH. such world because And know, pace is with part funding research, research within X% our U.S. the universities. because consolidated growing accelerated enterprise, distinct our in As the biomedical NOI of at you SHOP of an portfolio from

the And so positive long-term the biomedical about feel we generally research in prospects of U.S.

grant research portion, moment. only large time, have changes some their proposed at full NIH around And the institutions funding. to any and the very, which But of NIH present continue a recipients And you note, at is the that. of of small receive as very there funding and to have a that, the is, changes been grants a minority the very, budget, portion therefore, these halted should generally are noise

So that it for you. hopefully frames up

Juan Sanabria

bucket for And expect talked skilled still you helpful. on the dispositions that we there? capital as yields selling follow-up, and that about maybe kind million? that then strategy selectively via You should color if could recycling Very $XXX the $XXX maybe on of provide nursing little my before. what just the a Is million -- in

Debra Cafaro

about Yes, and this. been you've writing

$XXX of know facilities it have a is of and quite or of which we've the pending to ago, skilled capital done acquired strategy big that nursing you about of disposing we bit a we $XXX well, million housing that expect and senior a we'll referred. had recycle Bob year have the So X to into million and that And investments. would which be the part

Operator

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

Vikram Malhotra

a Congrats first side. strong of in typical in the on you then 'XX you XQ? just in to pattern are different? you your Can dipping quarter. something Or guide, XQ of sort are on seasonal clarify, SHOP in and XQ baking from kind a in baking Maybe

J. Hutchens

Yes, sure.

of the results January. said first very We'll to a year. in So strong a in start last to also we And counter-seasonal we guide. had we kind consider have be strong admit we're historically normal off our seasonal do that pattern

reliance where new change selling really the activity do could heavy normal demand it well-positioned that's important the happens. that's is well, But obviously, have up. change key one season that So on picking that season. the think fact a because of important a always net the we're And but we as lot I doesn't most movement is and to

Vikram Malhotra

it. Got

occupancy typical in go baking through et seen as dips pickups, So cetera, like we you've just to year just the as and you're clarify, historically?

J. Hutchens

seasonality yes, Yes, our we underwriting. in historical [indiscernible]

Vikram Malhotra

evolved guess, today? perhaps portfolio of around or of same the bands than the of us bit can occupied a occupancy store pricing in part just portfolio, you give different the is then what kind SHOP and XX% I overall, less a sense percent And how of

J. Hutchens

Yes, sure.

like second remind It's I'd the about XX%. I'll to occupied. U.S. the it's is one below take that And XX%, XX% people So first.

have we opportunity the SHOP growth portfolio lot direct occupancies higher in terms a in within of So Pricing, price. the and U.S. relationship there's between a higher of occupancy

XX% higher. So being we'll or the occupied see best in

far XX% range. is up up to We away, The that you're XX%, well. one better have pricing and in by next down, XXX RevPOR basis be could rents, points seeing exceptional as move-in [indiscernible],

below And that of occupancy pricing where not as really it's we're category, kind XX% pushing much.

if think good we're we're positioned, occupancies, the Debbie we they occupancy XXXX support. 'XX, push solid mentioned that fully pricing as expecting time. you opportunity will XX%, led; higher So about And where get occupancy with into growth over again we have pricing expect as more to

Vikram Malhotra

you then the tapping for the senior And you the fund maybe pipeline it. thinking or balance MOBs the but fund fund? you've the overall about talked housing? life just volume business on growing are talk last Can how or and on just and about Got Like sheet, about you have. deal -- about what clarification sciences,

Debra Cafaro

Thanks.

continue been grow very for investor inauguration It's because well as since the its in has a and And its the are use partner benchmarks. would compared investors good business to it. to that to fund we expect been we Our it that. benefit continuing as vehicle successful institutional are the Ventas to and of in general we performer an

and have the investors additional the overall enterprise nice tool have fund. and the benefit in to we it's used that So a

Operator

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

Richard Anderson

talking sweet an that, given of occupied and shoes is is the out to are all the activity NOI in XX% is your occupancy. about of from focus on value-add that. the just focus housing? senior fundamental doubling and this in Brookdale of acquisition opposed jumping I kind opportunity as the call stages you're early know of high-performing, if why I sort risk, curious we that's But opportunities lower I'm standpoint a more such XX% Justin, So, in it could cycle spot type

Debra Cafaro

good aggregate mean, we look investor portfolio et portfolio risk/reward I really, just cetera. at aggregate mean, looking growth, look at to should composition, comment. Yes. would at I like their an be

like to let's buy Justin. it overall great doing, turn over as can you Clearly, talk have risk-adjusted I'll construction. that we've about But we so And when portfolio been return things that.

J. Hutchens

I existing demand ready over today, exactly years lot have of within positioned this Yes. to right And our growing that SHOP sure of seeing for -- portfolio an to we the portfolio occupancy standpoint. And in a really which we've upside make because that's what mean, environment. be and actions lot is a we're taken we're well from

And U.S. like said, in XX% only I the occupied we're

looked you group, in half other XX% the non-same-store occupancy. that's If at of the half the is acquisitions,

lot do get we where net So from them we Well, those through conversion. to moved communities? a triple SHOP of

and making growth. to complement deploy have good around even the communities, where that that's we can really SHOP. been Brookdale, And XXX some want we've a we're really to for if OI net already playbook are then returns value-add So Ventas fullest. call the kind converted of, And that without triple nice you to really source that the these this a it also acquisitions opportunity, high-performing

Debra Cafaro

the expected unlevered to I investments mid-teens are the meet Yes. to deliver mean expectations. that. Low IRR

asset well pretty that is performing that's for so good an And already.

Richard Anderson

question below asked second portfolio what is, Okay. And then think my percentage XX%. is of your I someone

percentage landing of What point XXs? currently occupancy the could that's whatever the for some SHOP proof give you and that running in disruption said is was occupancy mean pandemic I pre do wonder that. prior is the to think around you high greater meaningfully find we I color above than so sort XX%. You on? that starting point where something if the the

J. Hutchens

see you basically sector the -- mean can there. is yes. mean I I well, --

that's to achieved the really level. have U.S. that the that you They're in So pre-pandemic back industry

have way that. We -- over half of has portfolio done already our

growth communities we kind outsized that repositioning in been have we've for opportunity to moving deliver -- As think of we've said, us. we're

makeup the So that's of part portfolio. of the

and had expand, the And occupancy over would. last growth the is just few I margin growth, seen said you're it you've we've our opportunity. years And really, think we seeing our as the results demonstrating

now, lap like when So we're the say muted. but analogies. during like a demographics first really the just become this. -- different long happens is said getting period the now, right to race it I'll it, to and completely strong we really I where If said just because of be said period it, finished a in we're Debbie and I supply

So it's more forward good moving some We're years. been forecast. few the to forward looking pretty strength achieving last our and

Debra Cafaro

Rich, analogy Yes. baseball the you. for I used

Operator

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

Michael Carroll

remarks, can Ventas the billion and might know bidded on reason lose $X -- I billion. prepared that on seniors this on said in comment Justin, closed Ventas housing about why you of transaction? your deals $X you

XXXX? Ventas Is the reasons for it to reasons forward there are what decides other that misses not in to those with? So is Or move due price?

J. Hutchens

So couple when start -- $X The when deals. you the first why we billion obvious to the there's a a are the these that is we win next had highest we next the long coming, lot we're and look a of driven, capital partner opportunity. their to And going they'll I'm over with billion that's deals Ventas is thing $X at -- partner like And the and owner-operator unique bidder. term. with as

be won. with deals that's And we've to helped that so well positioned us certain

off-market opportunity opportunities have of that for us. like the lot that, driven kind a had We've quasi of

the other have opportunities We counterparty where we've with before. transacted

in going us on of that side who leads what table. know So with opportunities. the really do. we know They we're the confidence to we And us, helps other they're with that to say they deliver win dealing on which to transacting

terms is versus it. a if disconnect the generally, think we a of of the asset value in player not the we're bought that deal, there's winning what So obviously

not a that certain that So may we into outbid it because certain we get even happen others have Certain type will cases. times, expect might insights but of asset, market have. in the might be you

on deals we're falls shocked right the lot the if we there's usually So around have rate. fit. and deal that our us, usually that out We're a are a of liking confidence success not

Michael Carroll

you? And peers competition Okay. but the REITs who private are to complete That's you you? helpful. they don't main names, typically they deal that are Obviously, that mean you I or players? because can't a beat name typically the outbid have like who are public

Debra Cafaro

Well, -- Michael, is this I Debbie. mean

adding someone maybe is our value the bringing be else under may course, One important and these of bid OI the choose can does. on asset knowing secret of very Justin that we we don't I is what said, more and assets which not an Part think is things offices. the way platform because to sauce, of the delivered

say that deals, And like common risk-reward choose proposition. so because I get are where there don't would we smaller bid it, we number. if want in not plenty it. That's the And much, much to There that's just don't the we there very characteristic. few, few most we a are more very

Operator

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

Ronald Kamdem

ones. quick X had just I

market as expenses little Just a wondering bit? if Just is that the of we sense at? could what And give going that's think you a is labor looking touch on a forward? if concern something us about

J. Hutchens

Yes. In assumes forecast the SHOP business, current really kind the inflationary projections. of expense

it includes Obviously, in the very is volume all because is We plus that flow-through increases, the occupancy. wage strong, have which X% includes of impact the great.

Importantly, of the has for operators. now to ability strong trend fill well. Retention on good opportunity been long hiring the having as very is roles. We're a

for market and as on time. wood as say been us has some good knock I'm seen labor we've going in the So to about

Ronald Kamdem

Great. And there's XXX I this then and the on done you That's about conversions, talked think you've Brookdale. just helpful.

and at you conversions? X is to the on [indiscernible] look call think looks portfolio, it, years how you much like? as tricky, I to more figure know but they're more Just do what opportunity X out trying the the next there

J. Hutchens

to picked performing, repurpose jointly can their There the we're is we that remains that question. may and I say into focused on have coverage, that we've good strong execution. portfolio That's the And that opportunities, think But very are happy structure. most different really lease position. agree be tenants now to of a assets, with relative good a good I some

Operator

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

John Pawlowski

CapEx The -- year-over-year. is expenditures. included separate the bucket on CapEx, FAD capital question Or for the that is the in $XXX continue million in Brookdale And this to level XX% above few about should it's kind CapEx? up reposition FAD a years? Is level this we next first expect this redevelopment of My -- that figure? is in -- Brookdale

Robert Probst

It's Yes, I'll one. take that Bob.

difference. at talked X/X net So higher, and really The about more the on we activity inflation, the it's $XXX describes million from million, all it CapEx. call conversions or were $XX about, from investments million just kind it $XXX just in whether we guide triple FAD is of units XXXX X/X

expect principally Brookdale, higher assets units. at as would buy more that but we it's I continue conversions, So a will level, really including volume-based, continue to and the make more

John Pawlowski

RevPOR missed. follow-up that? XX% catch that higher. Justin, are you threw then, I you occupancy your versus And to a Did Okay. being point out data XX% referenced expand that RevPOR on in low rates properties higher one -- tranche you growth It could Or right? occupancy. was I to XX% on That XX% higher

J. Hutchens

good Yes, It's a growth Yes. RevPOR question. rate.

demonstrates very exciting there's think really in price -- as get around future our we the occupancy opportunity time. up what it over we is So a

Operator

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

Wesley Golladay

bit picking You little cap for starting mentioned you of housing. a to Are any signs senior compression? see may be competition rate up

J. Hutchens

good question. That's a

been unlevered year, So all basically one to the that are squarely far year year so we're IRRs and through and we've range X% in X% targeting this their last the that yield same.

it's still that And good, far that so focusing so targeted so on finding And meets returns. been opportunities we're those criteria.

Debra Cafaro

as points up rates XXX XX-year over know, you even September. basis And since are

bears that well. on So it as

Wesley Golladay

[indiscernible] Yes,

Debra Cafaro

And that's of of us and capital. access to is pricing area another the for advantage

Wesley Golladay

ago, One to point. this thing? A portfolio. that Are see a Fair one would with of Cherry be that few in opportunity you portfolio. MOB talked having me XXXX starting for you some years kick the about more St. or is the year, last

Peter Bulgarelli

assets. the Pete. is happy Thanks We've This with. EOP Wes. we're for XX the Yes, got question, portfolio, Yes. really

went tenant up. the Lillibridge is What from satisfaction continue to 'XX the really solid was tenant was had We and a satisfaction. a impact We team. third material Lillibridge lowest quartile of playbook leverage terrific we quartile, on which step the in

was of year XXX last up points, NOI about retention great also substantially XX% basis X%. had also TTM. and We was at Occupancy up

that carry expect to we So through.

Operator

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

Austin Wurschmidt

the triple the that what curious headwind this transitioning one transition. the million assumes benefit I release, first half just Are was that SHOP or you of it year? think to to FFO Brookdale range? you in And those assuming net identified NOI in back any from from Just mid-$XX assets on in the underlying

Debra Cafaro

Thanks, Austin. Yes.

Robert Probst

Yes, I'll Bob. that. It's take

vast as of the towards So the to hopefully We triple see triple-net the of the impact majority the NOI the transitions. year, the That's vast for the CapEx think we to the asset some of year. majority But lease. of net really deal remain a the it on effectively, assumption guidance way segment begin the as We'll begin start is assets for the start year. in in is end can that the was the structured. to them under transition plan

more story, honest, the of a be So think it's is 'XX to it. about would I really way

Austin Wurschmidt

thinking transition. I Understood. was September, the those started

in at gains Justin, clearly high Just upside. guidance, of level, this that. XXX last SHOP year, started of assumed you And you're starting revenue points XXX year, basis occupancy bps exceeded

comment selling earlier seasonality think there with increased you key what be occur, assumed And guess seasonal guidance, I gives So see do still you in historic don't if you that that pattern and year? upside? delivers that confidence seasonal about that season similar the historically could this

J. Hutchens

Yes.

then there. business season, the and Your outperform really that itself key there's because that that of in kind drives we're selling what-ifs the projecting. lot of a winter we demonstrates is almost growth question outperform and consideration [indiscernible] of summer a If and a the in lot

see get. lot still. a we executing those where certainly, see go all of So but focus And we you could the boxes, we'll to out and that there's check if all play -- on more, year can

Operator

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

Michael Mueller

leasing first, developments Why is then that Quick completed of this update that the just the other that's kind ones Atrium leased, for XXX% on for the And are project, in new XXXX? an still that's stabilization year. X the are I X up? being underway. guess,

Debra Cafaro

Right.

exciting Charlotte projects, kind are think XX% that are X pre-leased. of X projects, those that X are the very that basically. market we of So buildings And of there are in

basically. date the we're that's really because so them consolidating And stabilization driving

and And is so the pre-leased. XX% other XXX% one pre-leased one,

those tenants, well. And get desirable really from going obviously, So to and name. the that, benefits that's are Health, an they have Atrium incredible expect we including

And so that's on update that. the

of and to leasing. pre-leasing we're going And other kind X continue to and to achieve coming the target online try significant have are well, as

Michael Mueller

in it. maybe And if could there. one Got other I one squeak

are with guess little and a about thoughts what bit on looking at AL, talked And I properties memory You high-level care communities there. entry the in larger today? fee IL

J. Hutchens

Yes.

just if population you surging. XX-plus you So there's is an -- step back, I mean, have that

So market, offering opportunity, they've communities. they interest -- invest every done currently. a have includes place should and that the service in those that fee have Clearly, facing well. We don't that's everything in

we've had growth, We're moving of ahead. So I opportunities good would lot opportunities we there's expect a expect that And and there. obviously, rental focused. really

Operator

from comes the Nick Yulico line question with Scotiabank. last of Your

Nicholas Yulico

to X.X% the refresher us for I how a if you then and rent RevPOR. of about just give wanted and X% think the think year, growth see about I you increases January a So could to RevPOR guidance bit housing? the about talked on here is senior

pricing. dynamic So I how it's change? should -- on of that about, for what's guess, sort lease imagine the to difference the And new I there, ability think something we

Debra Cafaro

Yes.

increases, answer for bit little is kind and -- there's unpack RevPOR the the generally, a you. of between mean, January a relationship but I that. X/X that Justin, a about I'll it's to going let Justin

J. Hutchens

because simple. a It's question. not it's Great. a big topic great Yes. It's

U.S. did X% year. number last actually all, similar rent So That's first what did increases. to what exactly -- in of headline in is the in the we we U.S., of terms

been good feel around we'll anniversary increases. of we The U.S. year, increases. to the of X% rent a So about usually, rest rent X% so. range And or that's in of the have kind

how And here's it works.

impacting you in time. blend the then anniversary you they'll year, increase And that and aren't rest rent a the rent move-ins so population. so a the were the is January new have have in an quarter of getting increase. over The of And increases only increase. the about really There's fourth half percentage in population

assisted they're new When care, resident. XX% replaced grows memory In of new and acuity a a coming a have resident, XX% and revenue care during charge. level of lower assisted living, revenue you stay a and in that the care, of living lower time at that level memory of care is length like with over is paying of level therefore, the care resident

And potential so -- that's of have, RevPOR. you kind that's drag your a on

in-house equal rents an actually for to generally, is it is And rent to improvement opportunity metric move-in that see see sector in time. we increases. that of But over the thing the lags. that Another expect really area

of to occupancies getting the that, opportunity given being said having the value but think and up you're is the X/X is how that scarcity market, the lot describing. And demand that's doorstep that -- affordability Debbie are that so fact a And result the and of we there's that going at created.

Nicholas Yulico

acquisitions Okay. funded mean second I That's we being should there's it And guidance. on just think to very the about with clear. sounds then question the want I is like be helpful. just -- equity.

I be sort So be $X have you share in And we sort of raise Bob, there is net if know of guidance? billion a should then a year-end count debt-to-EBITDA outlook? clear, of modeling a don't To equity guidance. higher in

Robert Probst

Yes.

the expect So on the we're latter strive end now continue point, to that even we going to range continue net definitely to further improve to drive We're down. at to high to the and of EBITDA. debt

So organically that's and both housing, -- and that's by senior driven inorganically.

that a our been all under funding, in forward. senior and So equity million I model. yes, raised terms mentioned, the funding, assumption -- check of formula, as in effectively investments of $XXX housing part has And is winning the

reflects And on share count good number the the we're that. in shape regard. So in that

Debra Cafaro

in Well, thank your I excellent for us interest We year support appreciate we're everyone want Ventas right. and All going to XXXX. and to today. an try continue joining of just to to have

Operator

joining. Thank much, for you Thank and call. today's That gentlemen. you all concludes so ladies

now you. You day, everyone. disconnect, and nice may have a Thank

Ventas (VTR) 13 Feb 252024 Q4 Earnings call transcript