Ventas (VTR) 2 Aug 242024 Q2 Earnings call transcript

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

begin. may You

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

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

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

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

you, and Thank the participants of On time exciting Second I my business. It's for Ventas Call. XXXX an other Quarter Earnings to our welcome our BJ. want to colleagues, behalf shareholders all

opportunity. fundamentals We favorable opportunity, ever in unprecedented in fueled industry. This half long-term are a serving an and longevity senior plays and the growth an business most in compelling role driving and creation aging the housing. and performance with multi-year by demand NOI early of stages economy, the the powerful Ventas demographic housing large creates value growth our essential growing population in senior a over near-

income outperformance in portfolio, our latest portfolio operating improve and results optimize financial we expectations strong investment our and housing operating increased Ventas' discuss senior our as our net our activity, strength. increase throughout in XXXX shop I'll Today, generate

XXXX with continued We results. in momentum, second quarter. Let's start which with began the

the reflecting SHOP leverage nearly and positively way year-to-date. growth NOI X%, already per company year-over-year of $X.XX our with Our Total is X% of over grew FFO led cash sheet enterprise of NOI normalized points XX%. improvement trending growth. basis balance share, delivered same-store cash XX with same-store

pleased are total NOI the expectations performance. guidance same-store per raise share strength to our We once our XXXX company of FFO on and normalized this again

expectations growth put Our strategy us the executing on REIT creation focused We're companies and cohort across stakeholders. in value designed and of growth opportunity to landscape. top to deliver our our value the

flow on capture to in Ventas As investments through a organic focused X prongs value profitable Deliver reminder, there senior strategy: portfolio. housing senior and the housing drive are portfolio, growth our cash our throughout

Here delivered are some double-digit have In NOI of growth. now year-over-year key organic X we consecutive each in SHOP, same-store cash areas. those quarters of updates

revenue benefits More occupancy powered and and grew quarter, invaluable NOI XXX revenue occupancy ahead basis importantly, X%. residents durable of us gains growth Senior we provides families. year-over-year, by their industry to benchmarks Living expanded significantly see outperforming opportunity and a multiyear growth. the points In

year. occupancy to would approximate an incremental NOI by billion SHOP for senior attract occupancy margins share than demand is million NOI trended when Remember There our housing this decisions and enabled living. execution data-driven and portfolio occupancy opportunity by peak communities to $XXX operators, margin. Our more the strong Currently, talented senior our our has was additional our that getting prior fair of XX% simply in XX%. XX% to $X portfolio XX% a demographic enable XX%

Yet, is next SHOP the our prior by should X potentially demand serve suppressed expect base From to because particularly XX% in grow population our markets. the population resident senior occupancy second from the people quarter, over conditions, that edge year such the favorable we only construction boomer as individuals for only and surging there, housing of started percent and annually turns peak construction shoot each XX% the gigantic communities of lowest starting primarily X%, the housing beyond in XX. a is X,XXX and we over are of senior million as baby years. were about operators in rapidly portfolio, inventory This on The and cohort leading over XX now in creating increasing there to XXXX, XXX,XXX record. about X.X units both

tailwinds new to expect we of elongate, constrained come. duration backdrop years This provides the and long important, to unprecedented favorable and runway for to for be powerful Equally construction and deliveries a supply/demand growth. continues

explain a position data actions, and seniors insights platform, market. our and to deliver operators, Justin to their will how outperform strong Ventas our families value and together with

increasing housing track of to senior million on our We on close our of We're execute we second investments on are also $XXX as year. strategy. this investment the about activity prong focused

Given activity. conditions committed and of market the pipeline are ramping the our investment quality strength favorable up we for our to acquisitions,

growth NOI in strength. high and of Rarely market. financial conditions Ventas going-in affordability in approach. These investment housing criteria see net expand one commitment about have can opportunities prospects. single-digit is senior increase external SHOP our footprint, of housing our housing. senior near-term cost, enterprise growth reinforce key the substantial the And owners growth Replacement my remain constructive. excited to in and yields country's our our the senior investments rate we and absorption consistent projections with been assets investment as we are in We largest invest career

focused throughout we're Third, on also flow our and cash portfolio. driving creation value

complementary Our that our platform Ventas, growth competitively again and Lillibridge satisfaction contributed advantaged portfolio once powered and outpatient operating retention. for in by tenant excels medical compounding research

a about with these with you. lease maturity or LTACs last progress Currently, Acute operated We've We also properties. Kindred Care XX, since Long-term Hospitals NOI we discussions in with greater X% provide a million want you these XXXX, lot the $XXX represent our are for of to lease of advanced April on resolution we regarding updated clarity a of made XX annually. Kindred by

X, reduction a these transaction are XX would that in full to you a when to is would While May year a of share a close year deal change, We'll that and amount and is could in calendar concluded. done About XXXX. we and XX% not XXXX. deal terms result more starting be on if reflected rent X/X Kindred to happy be LTACs XX% with

continue a lease these We Ventas the and resolution properties, NOI Kindred's that future lease strengthens value positive from supports and master working XX optimizes the toward success.

There final operators creation to are X items with our time. outcomes represent thoughtful and our investing approach that win-win of over

done and operated always communities. investment. been And patients, happy Zell $X.X First, Ventas the billion as operational its Ardent IPO employees focusing financial liquidity its our Ardent's has assets billion. with further IPO, team by value management Ardent, on invested congratulate completed successful say, has quality right, Ardent's exceeds Ardent clinical partners. Sam acumen and recently care, equity and current to it growth. and used is enhanced steady With value. positive company's $X.X has this The in stability, its we

our Ardent there's ownership over in valued in valuation. $XXX Xx and we In addition, believe an about Ventas at investment additional upside currently has million original and stake Ardent's business its

in the advantage in with warrants XX% quarter, profit. in warrants housing. warrants Brookdale in monetized concluded Brookdale's we our successful take of The upside million of arrangements in cash for about of sharing we and conditions We Also, senior lease the Brookdale $X second XXXX. positive these as macro provide the part success received

growing value live the on which future helping healthier is population and is in-the-money Stepping of Brookdale lives. about and our current centered of optimistic warrant million. our large a aging back, happier about are business, $XX longer, Our we

space. market broader across is housing the advantaged significant As of with labor highly slowing shows and down economy half REIT the business signs over the Ventas' softens, in senior

backdrop. classes benefit asset from softer employment All our need-driven benefit an most driven demographically demand and from a elastic,

we doing the us. to multiyear our continue our With everything As a Justin. we is can and With results execute drive to performance have strategy growth opportunity I'm result, and to on in improved front right happy this an that, over unprecedented to focused Ventas team our call and turn favorable quarter returns. outlook, of

Debbie. to I'm portfolio on report another happy good our and you, raise by SHOP quarter guidance for occupancy. led another Thank

far. occupancy a is contributing key off was in which Senior Atria The performance. our the best-in-class that so with one occupancy is leading are July and Life our profitable senior that mentioned, as June, to volume I'd strong and portfolios a Santerre selling holiday Debbie standpoint. to Priority initiatives. Ventas I'm outperformance seeing strategy, deliver our growth by XXx as Living. execution indicators OI year, Discovery delivering support very macro our season from May, all driven year-to-date our on results also supportive as highlight pleased to we well start, than strong move-in In are last from our from to Part well, housing is and very like of platform building really as supply-demand is performing good our net higher As operators backdrop

and occupancy basis XX.X%, grew XX.X%, occupancy and sequentially, U.S. X% grew points, industry-leading basis XX margin revenue SHOP by XXX XX% XXX of operating metrics. same-store overall of by year-over-year led all with almost the quarter to leading which second of The an at and absolute an by Canada basis are points led points

and markets, grew to U.S. almost in full-service represents basis in like X% faster strong delivered U.S. XX% NOI growth communities double-digit in communities for was XX than the Quebec to the Spot Groupe average. our U.S. NOI eighth The the and our was in the the basis in year-over-year same-store points The independent performance occupancy in Furthermore, at consistently driven points XX.X% operates SHOP grew year-over-year. of basis points NIC XX performance. year-over-year. XXX assisted Maurice, basis revenue which broad-based sequentially included pleased in I'd average. were basis XXX total consecutive living XXX portfolio. points particularly portfolio stellar with gains points top nearly XX% XXX growth the They faster XXX of in by than of our across who NIC NOI Xx market. spot We our the active adult Le of spotlight occupancy spot XXX our to and us occupancy growth of is achieve basis is points quarter Canada. living top have compared our occupancy markets in

and are key growth too higher ticks leverage taking contributors be about to operating between will X% great of are in expansion operating occupancy over of excellent the the driver many spread healthy business. as value in points. to so OpExPOR at results. XX% high partners. there and The operating very at continue at basis our communities RevPOR There occupancy as The increase to strong to XXX I'd creation Margin growth many people X% growth occupied. like will mention care remains particularly delivering are thank that and due

in same-store midpoint. the at our we full half, by are year outperformance our Given expectations portfolio to guidance the first to SHOP XX.X% again points XX the happy on raise basis

midpoint the of to occupancy XXX. range previously line from average have we about The growth remain up expectations in remaining our points, what drive Our communicated. basis assumptions key with increased XXX that

Now platform Ventas an update our I'll give on OI and initiatives.

multiyear best-in-class on continue partners analytics SHOP decisions informed wide designed our actionable advance to This enables the of reporting insights platform Ventas with variety XXXX. This is insights Part launched growth conversations from outperformance insights this to The opportunity operating with make growth a business. our operating across operators allowed to of of us our key was our our and to is drive availability strategy. have data thoughtful through the and in and to critical organic of combine real-time drive the operational which systems areas is of which initiatives. one expertise in increased benefit to We occupancy our automation cornerstone to quickly formally drive platform in platform portfolio.

and has optimization, and platform few. deep generating digital market to sales positioning, targeted CapEx analysis price NOI a name Our into enabled marketing

set. improve would and including competitive growth most how We position and start annualize demand, drive community's driven home outsized characteristics, market proof returns. among with the net market CapEx. in some those points NOI generate have that occupancy to receive other on occupancy In we investments, I'll NOI with cover and OI. investment refreshed analyze data where and rate overall relative would further the robust I'll capital to capital assessing prioritize worth, Ventas forward-looking which affordability NOI-generating we values, net the our communities position points support

has the markets XXX XXX this by late group projects points outperformed months are of since occupancy their which of points growth. basis post basis grown of X start in and We This respective XXX XXXX, project XXX at by over have least completed program completion.

this RevPOR of effectiveness has redev demonstrating X.X%, program. also the grown

Next, price optimization. volume

nearly to all to continue basis, to market is relative operators our collaborate with our U.S. SHOP on street a to monthly on monitoring data proprietary in ensure We pricing pricing rate optimize portfolio units move-ins. set

pricing X over identify efficiently process executed monthly this street enables automated to in resulting roll data of second Our XX%. rate and move-in process Life and historical opportunities. proactively improved price several analyze have successfully rent us optimized positioning and million better consolidation These including operators rows performance market Care. to We've quarter improved price Atria their across through Holiday Priority Sunrise, momentum the operators and sales by volume, understand

driving allowed digital the easily the experience Next, to information to We've focused potential initiatives residents marketing improving in instance, Search, options available website and to higher marketing. Google learn of also communities. move-ins, improvements and have on the gather executed user about attractiveness for families and living, our care service digital

operating insights, proactively from over to produced to and on of platform our enabled and OI have our have The It's focus website has completed double-digit derived growth. on Our referrals. Summarizing with OI. align of digital our tools expectations. performance sharing X,XXX are in Ventas delivering I we've marketing which partners we us benchmarks engagements, created improvement since move-ins we continue for perform started, data part

Moving of to to on on growth executing Part strategy, we senior which where our focused value-creating capture on are external investments, housing. two is

is We in relatively yield second million on bringing high a up strong housing are period are operator tremendous X%. in we IRRs. opportunities to the investments $XXX leading and attractive investment of run blended housing which XX a $XXX high at volume attractive to where The by senior time, tailwinds. seen yield executing of sector existing closed in communities, career, my very best combination of going-in in we I've XX growth opportunities. demographic the have quarter, unlevered the greater of In growth unique our with We year-to-date million continued value-creating than relationships, of Ventas the supported external approximately senior

going-in growth, yield, IRRs resulting right this in investments the squarely the low the as In framework unprecedented invest is to will right to by drive right the backdrop now asset, amplified right in within these our positioned housing unlevered addition favorable NOI accretive and mid-teens. are senior to supply/demand positioning time operator market, continued in

average to continue price also below per unit We replacement invest an basis an with attractive extremely in purchase $XXX,XXX. costs of

Looking robust profile with XXXX. both deals forward, in already pipeline relationships, to new actionable existing remains with the similar opportunities our operator and filled closed a with

$XXX Specifically, volume million we housing housing have line sight of senior $XXX bringing incremental senior to investment of XXXX total to an the investments million.

SHOP portfolio. this deeply high priority expanding of Additionally, engaged we executing are in our

in near-term We pipeline additional and forward. a via large and growth continue our creating continue opportunities to to ability growing going external value underwrite attractive of are confident

Now I'll over hand to Bob.

Thank outpatient executing which of sequential update new basis build start led you, second XX made renewal XXX,XXX Justin. our the in quarter and leverage in the over significant we medical I'll quarter, the deals gains. Further, and In year-over-year our with generated outpatient equitized cash Pete translated to have square to second research by of X% playbook outpatient strong with results across over drive second platform points Ventas Lillibridge I'm loan guidance. In to operating conclude team and our liquidity on momentum, leveraging strong medical quarter our an leasing occupancy occupancy our XX.X% progress, the and portfolio pleased with that contributions and OMAR, performance, quarter and and delivered medical growth with XXX continue and NOI portfolio. property occupancy. segment increasing portfolio, improved updated basis the report feet provide to the or and same-store SHOP quarter, stable assets to margins in growth. points

basis quarter university-based occupancy growth the the increased NOI across second same-store X.X% portfolio. of our Meanwhile, cash with by XXX portfolio points same-store research in

already feet new with half over million attractive X.X square pipeline executed. is Our leasing at

income in quarter, common attributable second $X.XX share. of stockholders we per reported to net the For the enterprise

FFO share metrics point normalized year. of improvement our We're of and SHOP strategy, was of this growth represents the increase $X.XX total X% of XX% Underpinning far year-over-year. in of QX growth this result a debt-to-EBITDA XX basis per Our nearly a year-over-year the our benefit seeing net same-store same-store execution with so X%. company

The to pipeline investments investment growth robust are housing and expected senior improve driving senior forward. leverage and expected funded the ratio are SHOP in equity our housing new multiyear the going Organic to in continue growth improvement.

this year, in closed million $XXX raised far of million have down equity. new $XXX we've So and investments

to and $XXX midpoint We strong year. billion, that investments over of net raised at share now equity per $X.XX our on close range for including on our FFO housing updating in in $X.XX of debt remaining this million in the the $X.XX outlook $X.XX have and with common to million income hand quarter $XXX per stockholders Year-to-date, $XXX limited normalized funded we per focused included previous another And guidance. million from are our was to We cash year second senior We've XXXX close diluted sales. improved attributable share. guidance to expected liquidity guidance at with at completed in increased of the $X.X asset the full our updated to from share. our XXXX. I'll maturities midpoint end

points cash is and an guidance full noncash XX combined our NOI increase for driven from by XXXX. cash basis to NOI expectations growth potential our improved organic $X.XXX growth, same-store lease original company year from points guidance X.XX% back each year-over-year, in a of by February. a of is year-over-year now impact from Kindred higher Total offset resolution $X.XXX midpoint segments. We've midpoint in grow than raised our also SHOP, Our and improvement same-store expected XXX partially our basis inorganic prior

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

and beyond. the to for back we the first operator. the of we're With creation continued and to that, year, results the half with pleased committed are call turn half To I'll the close, second the in value

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

resolution. little the potential more hopefully on Kindred Just get a color wanted to

would how to kind rent expect some those the for in of going And them you? opportunity final a about or rents, back be resolution? the just the there? As all And terms to could growth resetting of of you you think do come for when coverage think of then facilities about timing, and it is you

NOI transaction Good is we on Good XXXX. morning, that We we're to you. Nick. the whose to discussions. multiple lease answer value we're obviously, the most questions to success. to working those future from LTACs believe from applies The strengthen advanced we master maturity are enterprise also that to a XX, the are for close And Kindred's which improve and in hear April to support properties get can goals, your XX is to and that Ventas

are factors and about how those So thinking it. we're all

And then it's like maybe to just It pivoting to acquisition starting the pipeline. there. go sounds

curious broadly just these you're opportunity at? on looking more that color lease-up kind kind set was are of of I So seeing you're just and a what opportunities stabilized the

Sure.

and we're We're and platform. number the the are opportunities we focused the strong net very a We with the We're support pipeline communities of OI asset So investment in record applying generally and communities the criteria, looking absorption track like for markets well-invested looking supply-demand where also for we're meets seeing relationships. expanding existing primarily strong on Ventas fundamentals is in different when operator and do have that well. operator affordability. underwriting We're as framework. market, our leaning strong

as had new add have relationships opportunity well. We the some to

engaged has those And rental throughout we're the continue like independent pipeline in and that The our we in campuses, opportunity pipeline. we're and actively for and living, we looking been growing grow. were campuses seeing it, living and year, memory assisted to to include the care,

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

expected quick. Ventas talk probably And too directly But drive discussion. in Kindred there needs in this wanted I is about this record can't payment why update some like I XXXX? that's $X.XXX I real general, on would touch a year. to much that? noncash I would the to mean amortized be reasons guess you what's about the of Debbie, charge that related cash know, that to

years tenant left counterintuitive pull but a if rent a you and and the Basically, forward sum over it's and gets noncash. that rule. Yes, it GAAP-related somewhat it's an that's simple, by you have lease is. it the divide And I can it's all really basically you extended, a mean period impact. with all the up pretty

And you deal. the that happens from sign the time

So immediately. it happens

GAAP rent a that expectations of So you. that the gave it's cash we on just reflection we

know And higher? in you accelerating rates the Okay. of -- then are guidance, a little that target guess, growth why that's you on the and that year No, lot the growth X%, slightly sense. RevPOR you're first RevPOR of the in tracking a generate second street to can the I just the that of that you SHOP the the the behind compared is real on makes of able better year. And half kind quick first SHOP half to push is half of year? think I

second impactful, we've RevPOR. it's be the had led. did of occupancy sheer In on Well, just metrics. growth, We've impacting growth well. other in occupancy first couple strong there's expectation RevPOR, had. growth so have not as quarter, our we in to product. can guidance, obviously you mix lot where this occupancy and had our occupancy mix expectations change of we mid-price the all, We things occupancy more point We very our NOI due a where raised raised of of the the environment volume a that

year-over-year rent there's we the of on it impact in first an has increases operators very just that's it the of certain year. a weighted because last then had average. half in comp, the And So affecting strong

of And year. as in we half move forward, second comps we the better that the would there's expect

large a part us, as still potential have of the ahead of lot key that. selling of season a We part of volume

will mix in So remain focus.

appropriate look we the facts given [indiscernible] was so And forward those and NOI. thought to growing leaving

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

guess about that timing a point. of I trying maybe that change could sense you the much up and included I whatnot? the if us signed And guess why let historically, for how XXXX? like I'm here? then benefit like ask acquisitions that you know guide get was is strategy to you're only to just of now. the including just additional guess, what acquisitions in your I I just wanted into

excited housing, will question. the impact We're Josh, thanks question. Bob your for your opportunities to invest in and answer about senior

that And $XXX execute you're February, the the we at year on the given we in year our right closed. to we very team that feel for We closed million unusual deals in guidance and hadn't was say that, pipeline including us, that but started done, started those this deals. confident can

We have now close million forecast $XXX in the to this year.

So is contribution tipped we from from $X.XXX inorganic. towards organic said, FFO guidance of doing the roughly bit those what in the on say split those I is SHOP, would increased the and investment. not new a equal, the if

with So get-go. are the laid from consistent accretive strategy Equity out. funded they very and the we

senior then of Okay. in mix seeing? themselves, just And are other things there? RIDEA I And kind of the guess, rates kind all what a there maybe structure? is Or cap the of in is acquisitions it you like housing

as on Josh, financial. touch our as senior both characteristics looking well Justin qualitative, we're SHOP for housing is capital allocation a data-driven investments. focused series priority will And on there's of

absolutely. Yes,

deal of care. deliveries They're a margin period that's expected and for I'll So well markets new margins the within Good underwrote around highlight, on units, XX%, a replacement kind XXX absorption closed. living, X the about over just deals, over net $XXX,XXX In markets, activity around of basis supply of years X-year per we the very of in, a very below costs. XX population strong upside, lot are growth, near around average. in and upside starting but time. assisted as -- X,XXX few attractive in going basis next -- There old at the memory going-in offering rate points, the already lot living we occupancy grow years example, metrics unit, investment some independent upside those

growth, mid-teens. NOI the both yields are and the operators. to X%. and And but were the operators, been with working really new X% overall. then to they're far, outcomes revenue also low to have X% which above going-in we of relationships, some targeting most line Thus is good manager unlevered And management IRR The rewarding contracts, for existing we're

sight continue seen to this we've very So that's see next the similar line and have in that on. this characteristics characteristics with $XXX we of tranche million in

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

quick ones me. for Just X

us why Obviously, on you've increased pickup could stay out, is trying to on figure the acquisitions. of sort and annual just $X of And of rate the one. which that sort of is billion there is nature sellers? you funds Just X year, Are you here? opportunity remind can seen guidance, number get these basis the sellers is this coming all but volume due, a run the an just you sort number to question

in Well, ramping the activity. we're certainly interested up

debt debt -- they sell they're even more a some do to they haven't there -- having are and decision are to the able fundamentals maturities do and those there with quite of for been have of sure, the priorities? investments. of but advantage certainly they little in sellers, make priority are senior of is though more sellers volume, to that the asset We reluctantly that do that other just fundamentals good, out others because then there other there's targets selling the The a any terms types have opportunities. just, that and other given and We've Or seeing dealing There's returns they take put we're dealing with and capital of asset in the in? on classes active they're and other fund. sellers their sellers. are frankly, And bit move maturities housing that they're some fund aspects

the have wide been really excellent. had good been then fundamentals. We're and have that is a returns markets And that's though, upside so And -- great targeting consistent, we've what's variety.

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

the disagree, at How think About you the industry. educate some Certainly guess, with you appreciate, product many have that Debbie, profile would still maybe do arguments statement? you your is at this comment but home also do I regarding inelastic care. One, I trade-off? least marketing don't I the need-based hear, that initiatives? staying OI how do here? agree senior than your you or consumer within two, And that of cheaper

at a really And and question. is about operators important it's we a are the pre-COVID. it residents And who's back families service, it or where penetration care families gone by is above utilization through Anyone the above the -- their really one at that understands of that. things valuable. and offering really Great or their is is the we and lot population and was

So the in that's The numbers gigantic. direction. right trending are

social, penetration of secure, stay the our more are not your So in that lives from safer, expensive their studies of housing but to secure a lot to it's they show impact better more homes more that seniors And and it's more move dwarfs is only rate. it's when importantly, home. there that also senior enjoy even it

those And of on if you do suburban even senior -- many home, even can't replacing move is basis, many which to a cases, a in in all that's it more get in housing. live alone economical regular those services you you can to services that the cost it, if

maintenance, and don't -- You you have don't and lawn cetera. have meals, mowing taxes insurance, et

health what replacement is really anyway you're a it So even or spending you're in-home services. better requiring for if

the given Okay. to could do Bob. price, you a is just in quick the you say price? in had I the the are that? dilution here, on cash, And option think the Good is exchangeable need stays your notes share more remind potential for but resell to remind will money. me, And presuming account conversion that above you news conversion I me, accounting to you reading. know in if one how how value pick I could for the stock

this The in guidance. price the conversion below stage a problem camp. Yes, Those high-quality is modest just a in for in the get It's high-quality this shares. diluted and embedded effectively Jim, fully I situation impact at But really for XX%. accounted it sure. a put is

now. as it -- the numbers about de So as year stands minimis this but think we

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

maybe partners opportunity Obviously, on in the for bullish investments of have and bigger a picture Just or rightfully business. opportunity in I so to your you the seniors venture do or Debbie, using Is format? guess. housing joint a strategic seniors a you kind question ones some have accelerate of new housing acquisition third-party an stuff you in successful there to fund capital management

senior that capturing and have but really great have kind done footprint It circumstances fund. in a us. the with present appropriate capital are the at housing, investment Juan, selective we business, focused we to we our of successful a do assets enterprise senior At and because have to a of in available partners. on the few time, opportunities an Ventas REITs platform including those experience housing management is open-end advantage level,

to be and for maybe should most bit So ones the be have balance appropriate core-like growth less a base. sheet could investor more a that little

Is to anything think business And of equivalent changes we on in How then occupancy of or with the regards year? RevPOR growth just side. the kind noticed on occupancy forward? guidance. from side going half the in impact the You've and about the any some there seasonality second SHOP pool should

Yes. on timing. Good the question

take you want do to that? Bob, So

typically, in whether or one, into Sure. you'll selling There the October. the pool no impact, very on key is typically sequentially, Then could -- There's have sequential that's September been clearly bleed depending season moderation in you're QX since February. housing. some basis. running on looking is seasonality fourth is into consistent year-over-year a through there Again, senior QX,

us, modeling is the midpoint. we're robust again growth that For you improved But you're sequentially, that's this in. if just what should driving year-over-year seeing factor

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

little to to bit. wanted back go a [indiscernible] Just

seems guidance itself the improving So to you're do XX% commentary reduction rent I the recall for XX% a like calling is business that fundamentally.

that reduction? kind immediate an upside having curious by rent give kind up why of of So just just

that the toolbox for shareholders directional Thanks of what will a over we we And be. master to do capture Obviously, of give expectations our NOI and leases we as have lease. on with question. want our rent to broad We this to would used lot here. the at want much the that Look, do strengthen some kind connection be the true our in in to we've want goals, guidance levels of as successful. time can, equally want tools we remember, be we our years, and Kindred

we those we about extension. in a put So making lease decisions all basket about the as think structuring and

Curious, some question in move contracts second line Ventas little better idea a line a towards the being performing? bottom in of bit line and towards of third-party able terms contracts such time more in these Okay. the themselves top those managers managerial bottom contract Atria Sunrise the that to more bit That's just managerial your expire contracts the little in that are that of And the line. when helpful. tight

Yes. Operational alignment is one of Justin's favorite topic.

So...

for is, sure. It

I question updated a ago, portfolio, -- to just SHOP mind level Atria on also I'm NOI in few upon aligned. relationship, But in of gone driven a to the else performance. a terms in years improve realignment. and windows alignment is that ours. newer and not well be fees the that on in that upcoming opportunity on that we through through really So of Atria the a actually are of contract, transition agreement. my our in years few it's particularly the have good agreements. thing one through, Sunrise, want It's revenue focus we've they will driven with legacy is have the operations, lot already happy the say everything that given they've The very there's portfolio -- We're we

been much that footprint They've that some to we've have they've owners. -- there's taken a number actions taken a led that and of tighter other

XXX level under we've points so they've where and occupancy made with I across the we've focus especially seen independent had the occupancy of mentioned in new living, that leadership year-over-year. of board basis the them the And growth contributions the to and that

and they We our have their full full have attention support.

ongoing forward we to look performance with So them. good

from KeyBanc Your the question Austin City next Wurschmidt Market. comes line with of

some guess, year-to-date? in same-store of NOI the low portfolio remarks, achieved I growth to and of just relative that given total year. you mid-teens in segment the the going what from near And operating in leverage, factors term sort the half implies are that outlined for that deceleration back just Just to your impacting growth back sustaining backdrop you've guidance, occupancy, the SHOP that limiting the you prepared the

that's happened things the of one really So strong start. is to off we're a

actually twice we've So raised guidance now.

due outperformance early the the had in that's year. we've and -- to So

some what's expenses. That's second assumed kind part impacts the in As half. you guidance into metric also that We've year, mentioned you for in in other the you can And seasonality growth page. see the OpEx seasonality, expenses. can seasonal driving utilities have see in the you occupancy, as there's in and that some X.X% of you of later the see get can Bob of regular inflation

anticipating So expense you the accuse conservative might but to little us kind of a on just we're normal be seasonality. side,

because your the words XX%. first like mid-teens half, grew I we

year Our is XX.X%. guidance for the

darn pretty I So consistent, would say.

you How for forward, does highly Canada affect kind level upside region? that of given the remaining growth same-store thoughts are what on the in sort occupied the region? more are your And going NOI

deck, points. growing product and had a articulate their a performance Page driven. will point Canada our We still by occupancy price up quarter page, have mix driven really have that growth, you of second Canada. drove Canada and basis XX year-over-year. if is keep and and was we so good they in the earnings now, occupied XX% Well, XX% grew the That which higher also was RevPOR the XXX outperformed is growing Canada occupancy. rate

it's so a be in wouldn't and to continue good been a just double-digit to we good expect And performer year Canada. but forward, performer, it it's a going

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

color. some first maybe I just more just wondered get

guidance going the gave. mentioned ones expense X.X% sort side, comps even like to you the You conservatism the or of from you're maybe on but the

much anticipating maybe cost specific that is I'm wondering so would just in you're quarters? labor it's there X that up any drive reason or So

Good. Bob, can you take that?

the the agency half think came is as up first profile really recall, as year, we thing which were you'll staffing to labor to note, I or half. labor -- contract second last key we down

year-over-year good so a on the in guy. half OpExPOR, a first the And on that's basis

dynamic that the the You year. half don't same back of have in

a of the important your to So really part question. answer that's

XX% That's distribution helpful. I'm you the terms and you And occupancy. segment are the par the where most RevPOR I'm then you're with versus on sure lagging. just But What's mix in SHOP seeing the what's where segments pricing maybe shift portfolio. if markets or Sunrise. wondering you there of mentioned obviously have like

Yes.

-- than very point growth West, that price lower strong really an had which East. better the like acuity seen mid- growth the been point. in living our and higher products occupancy acuity broad-based mid-high price So We've seen we've we've is better lower a growth to or assisted growth. closer in product, occupancy better We've in growth. been are living a relatively than independent There's a but the

a And is why combination of the of so there's CapEx. the point recipient be -- also a lower price is really NOI-generating It happens lot reasons to product the outperforming. mix of our just

also group, had had so but XXX RevPOR growth over we And that X.X% basis of within occupancy points growth. of

But to profile, growth RevPOR down brings of and it, a contributor the a story it's growth from rate. average So within big occupancy strong and as it's a to both standpoint. part weighted the the it

reality mix key and the But in the volume X% high, becomes I I really think growth so XX.X% the earlier, said revenue So is is, like and is metrics. factor strong occupancy bigger NOI a performance. takeaway

the a latest of on year, last do you Could the or us just you thoughts give what terms what in Makes Brookdale just just And due sense. there? leases just then coverage come next an on that might -- one. metrics update are where

So again. it's Justin

Brookdale, So start here. I'll

So a lease. well-covered it's

the at that You'll you they've if supplemental look notice probably that a moved up row.

project we've net absorption They that X,XXX our in points -- of markets we upside. coverage, in have portfolio. so They're And good growth had around good performer. basis

growth strong really profile opportunities it. So ahead of

would SHOP to it happy. if make to this were So its portfolio be really, portfolio, very our way

Brookdale lease all and an of have expect of a have but it at could the the here and see. would performance end and we in be extension. Brookdale market extends to about wait and mentioned November, case, nothing has they well-covered that, the market, value worst opportunity they if high lease have XX% the X% that, extend, have and decide Considering review. fair opportunity the optionality that But and that lease. to and concerned kind the love you in we'll upside on they If will the I've then really we end of by to coverage we we're better So extend or escalate do extension. based least the on as do as the a 'XX, the

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

quarter. Nice

say. Welltower the got going So question I question, to shut call, see on I and you same ask asked down. what I'm the fully you

so difficult it does from become grow there. So higher, as to increasingly occupancy it more gets

to have people. you range at the XX% you're of if at have full unit fewer is But my you options. occupancy, theory So XX%, offer options

occupancy cheese longer So maybe get and then to Do that agree you effect, will use XX% to that. that, when peak start post-pandemic Swiss harder your you process if just targeting I take to it's logically with of that sort in that achieve? fill that can history

to that. going Mr. I'm Zero-lost-revenue-days take let

and... my So we days passion project, this, they're where on referring operators to month our lost benchmark get revenue to and and to Debbie it we is X every report is which achieving communities encouraging

occupancy. as known XXX% Commonly

XXX%. But Exactly. truly

So vacancy. the out. one turning within do units. XXX%. them frictional with our be the that in thing turning X can of senior X portfolio have I about literally you may They're have are They or X housing month communities love We all truly already that is business and having move-ins same new

to it's to a XX extra units. at effort. last it's an going view, the So get. easier two than established upward fill unit the opportunity or say of with market the look is that actually you easy, with And occupied point to it's is but because not participant or higher you've reason two a my just there's market Rich, leader. easier, Usually, yourself for fill year or I'm to strong much as

the I the it. other comes they is And the value communities and in to with price opportunity to can XX% are that close like over with that way all obviously, that, scarcity our XXX it. to or push as goes So thing as get

big the that's opportunity. So

So with you. think I agree don't I

the revenue Is lift, the quarter? the the you that, benefiting of Okay. in get that CapEx that of talk -- capitalizing there is XXX-basis-point My words, still SHOP, got from occupancy when all the program occupancy question, some but optics factoring from any is Foiled in improvement that same-store mentioned you at lift that you again. the that results you the about next in you the U.S. to or program redevelopment lift that, and and in where got other the amount In costs? you're

in Good our that's communities vast SHOP majority the that our of Yes. the our mean one results same-store thing I is are about good results. showing question. we're way

that's downs so that extent to projects we true in for redevelopment those and time the those process. then ranges. of and the take all the most now, there remain during stay during -- And they And almost any in are

right. Yes, that's

we're reporting came in are when and never were They seasoned they those XXX during projects, the all out. period. So same-store construction on

and and disruption the of come And reporting benefits which the But intrusive experiencing that on of out opportunity there's the investment. around non-same-store pool. defining some and more for are a we're a now already we're criteria in pool. lot so those fees projects There's definitely projects absorbed little do be that bigger redev we've from the a are upside there's the to qualify in that are the that

then, stuff close U.S. So that's the and when still occupancy boosting redevs it wash in the of occupancy to XXX you Is be probably activity. think would sort a XXX? the underwhelming about net when stuff pretty the X, that's you those the

redev net can the in cases sell is But you to disruption. There a the many honestly, some it's think I gainer, residents. Rich.

You opportunity. the can plans, can the see show they

of and so occupancy see price advance you see completion, And you the lift. in

there some net-net, definitely a disruption So is positive.

-- to present that's them so you're meeting you're get this that this time. trying demand And at that's right done intensive

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

cap rate the independent typical living? market. spread deals Maybe you're that on assisted versus one transaction What's seeing on living the

So we everything a really, haven't of -- we've has services. had bought combination

we're what impendent volatility. There's can of on in a the pipeline. a that activity have don't like spread the I been past. that, independent comment living. for buying freestanding living freestanding really the and historically, along I of services. be assisted been both campus, I rate, so care spread less I that the confirm exists a there's And with little to on assisted today wouldn't cap living, that because able know in versus we really a memory XX-basis-point living state on of independent know living our instance, Most longer has just based a length

research should redev those you Okay. That a And additional enter couple What sort in it assets of return makes we have redevelopment the on quarters? targeting sense. the research looks assets coming quarter. in of are projects? to entered like expect this And pool then

Happy is Thanks Pete. to question. the This for answer.

redevelopment The return They're really are a assets markets. bit Market buildings XXXX in example the We life and has in are -- great substantial. the need healthy compete will is we marketplace market. And tenants. just located It's XX% go in good in these office a well. for one us, future. Philadelphia. sciences well itself. good market building It's really next don't of quality a These foreseeable they upgrade to about buildings, markets. into in performing the expect The be to -- additional in They're aspects

to growth rate we to space, and will or into that Some from of an strong the And building. have we rental office in looking that the research so left, can which those next really asset. tenants year achieve increase it dramatically opportunity rate in that rent have forward we're growth turn

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

just saw So understand the up? the sort we could reports sounds in I you you're to of second expenses which if there like curious guide circle back it conservatism year that tougher the here comps keeping a operators But on half unemployment labor. bit of [indiscernible], labor little of ticks job the we're morning. other if as I'm just this be expressing get of availability your is greater soften agency from have hearing to reports recently, matches to labor started

Yes. mean be there in I some they're conservatism that metric. could

around X NOI. were the We We occupancy, till have one being to being those other around very metrics, explicit everything.

year-over-year comp normal have comp they just considerations and inflation. and we and have others, some OpExPOR considerations an mix The expectation OpExPOR considerations both well of RevPOR some has as as the then

to So been how very it have favorable. labor we'll market plays the out. just But see has

you're right. Yes,

we continue X drive may spread monitor the between revenue we'll Today's have and right. and You're that, a to healthy growth. and influence to report metrics make sure key NOI

would old what at starting in as in XQ? comment favor? I it same all your is seen you it quarter-to-date Or be to same to was shift from it mean, able labor? Is So. you've

Again, that year-over-year we again, and is do dynamic I comparisons. we in forward, And year-over-year now. look as what said pretty important the is should distinguish Bob market sequential, right between think the then labor

a out, in say. so that we little see going goes. report, on today's she based to improvement steady point we're forward, especially may too But as it's And but as of early assuming kind you

maybe in to then it. dispositions the like And drove give for they upside a these strong just acquisitions we're is lower you execution maybe what there's jumping fund and on SHOP? to there, quarter. looks rates a the assets low rotating on the just because assets? really the Got pro strategically high-quality could Are more where It are are quality in buyer? cap color any noncore but forma Or and those there like these here

Yes, I'll one take too. that

in So got just million. cap that's the some housing. X% very senior is full kind great. numbers. bank. And We've And by $XXX rate X% million, see and a sold buyer the about to the to in is low $XXX-odd of is majority guide We've analytics so range, that markets. lies cash the of a capital the It's like led which other of the year this recycling we rest using markets identify Yes. exiting portfolio, opportunity may upgrading opportunity that was, the that data to the portfolio. The those nonstrategic And not therein that question transaction. have grow may have your

we're rate. of portfolio. capital while upgrading Clearly, pleased that And so growth source the us another with that's for

So happy the we're with result.

analytics, side. the and then we're curating the senior portfolio the housing data with buy sell on And the

approach. same Yes,

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

capacity I pipeline? cost? for the on your Just create just Are wanted cycle. advertising ahead much to any you thoughts over that. bigger for you get essentially concerns? of investment there a deals a waiting macro looking strong Are Are to your just thoughts deleveraging on

our continue expand are you year-to-date. the because we and that improve is our of balance whole And mean funding to increase rate, I growth Yes. our strategy enterprise saw to sheet. assets designed to way the shop our footprint

XX And points on you top. playbook or million of improvement do by SHOP run net now driver flexibility is we And there. it points basis to organic provides year. same to both is improvement. execute on playbook The to going to out. continue and equity-funded look key been addition And then financial basis to so continue that, we'll so the $XXX that, of organic That opportunity on And debt-to-EBITDA. Xx start growth we've of indeed, the investments are to is this this from and to first is this leverage we go year the Yes. in lower far able be range, to to that itself the gravy leverage the foremost, get growth that's strategy why and in on Xx going year, and if been, has numbers just to like and offense, XX at

senior any few to Canada, start markets the housing And get the may Okay. want supply from turning countercyclical years then then a they development. a that any into point to now? developments, would be to maybe little the supply stabilized bit where Is get point? at on look more deliver Any obviously start first in and to there market, you

we're assets equity enterprise focused invest on cash value. over I But allocation very characteristics change now, the flowing growth even capital overarching right that time. and that near-term priority immediate that that in could our Justin our enhances meet now, when area. and is provide funded accretion, housing mean, outlined right to That senior very, near-term

comes JP Bely of Your from Morgan. next Nikita question with the line

remaining made medical programs, a far the specifically research, that? your and that having you're the outpatient little you Can progress still your bit on conversations do leasing on guys in you talk to have about development and so

can quite can take a that? there are Pete, about We and you well few are this, talk underway. that And Yes.

fairly under have -- so we There's that a of outpatient Sure. medical, Sure. are redevelopment. for minor list assets really

just are sub was So okay? to what We me finish which redevelopments, say. have let going I development

online for On and one complete, an It we or to redevelopment, and that do we're XXX% office returns the medical, that with just outpatient buildings, is and really Sutter upgrade spec buildings, times suites medical those excited have So we leased. us. forth, been have about asset. good create so many we're looking have came is very asset

you life bit talked X development think to it the redevelopment, development different really about the but we about have assets on On sciences -- tranches. in themselves, a in

X be that largely set and operating and have they're assets Pit of We X, XXX% Pit would a Examples occupied. they're full. online, are they're where

Institute XX major tenant. under our asset Phoenix You've of with Arizona which State, attracted improvements. construction, National It's the a got Health in as has

city, In got is new and XXX%. is Philadelphia, which you've Drexel, XX% one which

about, have under construction. pre-leasing, we're still those under forward. one with are tranche with X assets that and have Davis, Atrium UC going of about pre-leasing, Charlotte development, and They and optimistic We another under in [indiscernible] optimistic Health They that assets are they're construction. good XX%, we're associated XX%

Scotiabank. line Yulico Nick with the will come of Your next from question

to get get to of feel want ones. a July, if see same-store sequentially. quick Just couple the how we it's I can SHOP On a occupancy improved

What key off for the you that's And I I selling now. strong that is prepared the in remarks to mentioned that start, can July. including tell is have what season a we

to Senior not Housing? it, I mean, not any reason I it, self-storage gives multifamily give mean, why

point own operate for now. think their Justin for said is what. portfolios they what But I data a Well, good

stabilized get NOI it's, And a give investments, that assumption but then to in embedded a so much terms us I know Okay. of -- this can yield, modeling growth How is the correctly. we're X think, you just feel to a I you yield. in the yield, year quote initial just

Say Yes. Nick. that again,

I think...

understand to to much get of in quoting senior trying growth the the sure is that how first want in just initial to initial we're embedded modeling terms to NOI yield? this you're year I'm housing, for correctly. yield Just like that make

where into trailing Got it what X obviously. pre-COVID are acquisition, forward. time of expectations and the the model going We our look look is we of gets at it. numbers, I we and we underwriting, at it at kind mean year's, our at look last

some XXX%, little bit. that if from, you some amount. a in in there modest that fundamentals the place the X is occupancy in number, may trailing the a or growth Given would diminish would typically say, it cases, actually be we And expect

as them -- see have, it's depends on X% you'll the with So of some ramping. to the most the it yields we talked template near-term the But growth, significant number. And at but for modest, in really NOI given about, from asset. closing will investments going X% it's elevation

A. CEO, remarks. this back time. at no to will Debra Chairman over are Cafaro, closing questions I turn it and for further There

in much. thank the all to person interest participants you. look seeing have We I we today's on you and for summer, so support your rest forward And to the soon. want call a Thank for you you of Thank Ventas. hope and great

does conclude This today's conference call.

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