Slide 1: Earnings Presentation First Quarter 2024
Earnings Presentation First Quarter 2024
Slide 2: Non-GAAP Financial Measures & Cautionary Statements
Non-GAAP Financial Measures & Cautionary Statements Non-GAAP Financial Measures This presentation includes certain financial performance measures not defined by generally accepted accounting principles in the United States (“GAAP”), such as Nareit FFO, Normalized FFO, Net Operating Income (“NOI”), S
Slide 3: Table of Contents
Table of Contents 04 First Quarter 2024 21 Driving Strong Results & Improved Execution and Cash 2024 Outlook Flow Generation Throughout The 06 Delivering Profitable Portfolio Organic Growth In Senior Housing 26 Balance Sheet & Liquidity 16 External Growth Opportunities 29 Appendix Focused on Senior
Slide 4: First Quarter 2024 Results & Improved 2024 Outlook
First Quarter 2024 Results & Improved 4 2024 Outlook
Slide 5: First Quarter 2024 Financial Performance and Improved 2024 Outlook
FIRST QUARTER 2024 FINANCIAL PERFORMANCE & KEY HIGHLIGHTS IMPROVED 2024 OUTLOOK 2 ▪ First Quarter 2024 Normalized FFO per share of $0.78, an increase of over As of 2/14/24 As of 5/1/24 5% YoY and led by organic property growth Net Income Attributable to $0.00 – $0.11 $0.03 – $0.11 Common Stockholder
Slide 6: Delivering Profitable Organic Growth in Senior Housing
Delivering Profitable Organic Growth in Senior Housing 6
Slide 7: Ventas's Senior Housing Operating Portfolio
FY24 Guidance as of 2/14/241 FY24 Guidance as of 5/1/241 Ventas’s Senior Housing Operating 10% - 15% 12% - 16% Portfolio SAME-STORE CASH NOI GROWTH SAME-STORE CASH NOI GROWTH $118M $130M Top owner of real estate in the large and fragmented U.S. senior housing market TOTAL PROJECTED SHOP GAAP TOTAL P
Slide 8: Senior Housing Growth Opportunity Supported by Supply / Demand Fundamentals
Senior Housing Growth Opportunity Supported by Supply / Demand Fundamentals U.S. Senior Housing Occupied Units Highest On Record (NIC)1 ACCELERATING DEMOGRAPHIC DEMAND FOR SENIOR HOUSING 950K 900K ▪ U.S. 80+ population anticipated to grow 850K by 24%+ through 2029 800K 750K ▪ Leading edge of U.S. Ba
Slide 9: Lowest Construction Starts in Over a Decade, Supporting Expected Multiyear Net Absorption
Lowest Construction Starts in Over a Decade, Supporting Expected Multiyear Net Absorption LIMITED NEW SUPPLY VTR U.S. SHOP COMMUNITIES ARE IN MARKETS THAT SUPPORT POTENTIAL NET ABSORPTION OF ~1,000bp OVER THE NEXT FEW YEARS4 ▪ Low new supply combined with accelerating 80+ population growth expected
Slide 10: U.S. Senior Housing Demand Driven Occupancy Opportunity
POISED TO CAPITALIZE ON SENIOR HOUSING GROWTH OPPORTUNITY WITH ACCELERATING DEMAND Occupancy potential opportunity to U.S. 80+ Population1 surpass prior peak U.S. Senior Housing 20M 5 Years Post Financial Crisis Next 5 Years Demand Driven +6% Growth +24% Growth Occupancy Opportunity 15M Senior Housi
Slide 11: Now is the Right Time to Invest in Senior Housing
Now is the Right Time Attractive investor entry point given current valuations and as Ventas further aligns its portfolio to Invest in Senior with the growth opportunity. Housing RIGHT MARKETS RIGHT ASSETS RIGHT OPERATORSTM RIGHT TIME OUR FOCUSED STRATEGY Our Strategy is Expected to Enhance 1 2 3 To
Slide 12: 2024 SHOP Same-Store Cash NOI Key Drivers
2024 SHOP Same-Store ▪ 2024 SHOP Same-Store Cash NOI growth guidance range improved to 12% - 16% Cash NOI Key Drivers1 ▪ Expected 2024 average occupancy growth improved to ~270bp YoY, led by the U.S. at >300bp ▪ Expected RevPOR growth in line with prior guidance assumptions and improvement in OpExPO
Slide 13: Strong SHOP Same-Store Performance in 1Q 2024, Led by U.S.
SHOP SAME-STORE CASH NOI STRONG DEMAND AT THE DOORSTEP $183.4 Strong SHOP Same- 15.2% SHOP SAME-STORE > Represents 113% of prior year $159.2 Store Performance MOVE-INS > U.S. street rates are up +6.9% vs. in 1Q 2024, Led by prior year U.S.1 1Q23 1Q24 YoY Avg 82.2% 84.6% +240bps Occupancy > U.S. IL m
Slide 14: Ventas Operational Insights Platform
Ventas Operational InsightsTM RIGHT Platform MARKETS Proprietary data analytics and experiential insights platform drives portfolio actions and optimizes the right combination of markets, assets and operators Combines Ventas’s in-house operating expertise with data analytics capabilities to drive pe
Slide 15: Ventas Operational Insights: NOI-Generating Capex Investment Results
Ventas Operational InsightsTM NOI-Generating Capex Investment Results Improved market position creating occupancy opportunity 104 470bp Sunrise Senior Living Discovery Senior Living SEASONED PROJECTS COMPLETED 1Q24 YOY AVERAGE OCCUPANCY PRIOR TO 9/30/23 GROWTH 9%+ 119% 1Q24 YOY STREET RATE GROWTH 1Q
Slide 16: External Growth Opportunities Focused on Senior Housing
External Growth Opportunities Focused on 16 Senior Housing
Slide 17: Investment Pipeline of Senior Housing Assets
ACTIVELY EXECUTING ON SENIOR HOUSING INVESTMENTS Investment Pipeline of Senior Housing Assets INVESTMENT STRATEGY ALIGNS WITH VENTAS’S FINANCIALLY ATTRACTIVE TIME TO INVEST STRENGTHS Submarkets with supply / demand profile, Year 1 FFO per share neutral / accretive with strong affordability and meani
Slide 18: Senior Housing Investments Aligned to Investment Priorities
Senior Housing Investments Aligned to Investment Priorities RECENT INVESTMENT ACTIVITY ~$350M RIGHT MARKETS RIGHT ASSETS RIGHT OPERATORSTM Closed or under contract focused on senior housing Average 3-year Attractive investment basis $241k per unit submarket net New, aligned management ▪ Origin
Slide 19: Senior Housing Investments Closed or Under Contract
MC IL MC 25% 25% 27% MC AL 51% 49% Senior Housing AL 73% Investments Closed or AL, 50% Under Contract Mount Bachelor | $55M Magnolia Springs | $143M Orchard Grove | $36M (Bend, OR) (Multiple Locations) (Shrewsbury, MA) Mattison Crossing $46M (Freehold, NJ) TPC Parkway $49M (San Antonio, TX) MC 28% M
Slide 20: Opportunity to Invest in Senior Housing
Opportunity to Invest in Capital markets dislocation is increasing the number of assets with challenged capital structures, Senior Housing making this the right time for Ventas to pursue value-creating external growth opportunities RIGHT MARKETS RIGHT ASSETS RIGHT OPERATORSTM RIGHT TIME Entering the
Slide 21: Driving Strong Execution and Cash Flow Generation Throughout The Portfolio
Driving Strong Execution and Cash Flow 21 Generation Throughout The Portfolio
Slide 22: Triple-Net Update
Triple-Net Update1 Triple-Net Portfolio NOI Composition (Totaling 100%) Senior Housing IRFs & LTAC Health Systems SNF International Hospital Brookdale Senior Housing Portfolio Kindred LTAC Portfolio ▪ 121 communities2 producing ~7% of Ventas Annualized NOI with lease maturity/renewal date of ▪ 23 pr
Slide 23: Demographic Tailwinds Expected to Drive Demand Across Our Portfolio
Demographic Tailwinds Expected to Growth in the 65+ population expected to drive: Drive Demand Across Our Portfolio ✓ INCREASED DEMAND FOR OUTPATIENT MEDICAL CARE 65+ Population Growth Projections (2010 – 2030)1 ✓ INCREASED NEED FOR R&D TO SUPPORT DRUG INNOVATION 80M '20-'30 ~18M Age Growth ▪ 11,200
Slide 24: Outpatient Medical Portfolio First Quarter Highlights
AFFILIATED WITH LEADING HEALTH SYSTEMS WITH HIGHLY FIRST QUARTER HIGHLIGHTS SPECIALIZED USES 81% 900K SF of new and renewal deals executed in the quarter, +50% YoY Outpatient Medical Strong Credit Portfolio Delivers 94% Investment Grade Complementary, +300bp Affiliated ELP occupancy growth since inc
Slide 25: Outpatient Medical and Research Assets Aligned Through Institutional Demand
Outpatient Medical and Research Assets Aligned Through Institutional Demand RESEARCH PORTFOLIO OUTPATIENT MEDICAL PORTFOLIO >17 ~71% ~14,000 >35 million top-tier research credit tenancy patient visits annually providers universities Cutting edge research to advance treatments Supporting nation's lea
Slide 26: Balance Sheet & Liquidity
26 Balance Sheet & Liquidity
Slide 27: Balance Sheet and Liquidity
BALANCE SHEET MANAGEMENT ACCESS TO MULTIPLE SOURCES OF CAPITAL Provides flexibility in funding external growth and maintaining a strong Liquidity covers remaining 2024 debt maturities by ~4x balance sheet Balance Sheet and $2.75B $3.4B Capital Third-Party Liquidity Recycling (Ventas Investment Exten
Slide 28: Positioned to Create Value
Positioned to Create Value Leader in senior housing in North America Data-driven insights influencing with high-quality portfolio serving large asset performance, execution and and growing aging population market selection Attractive valuation and growth profile Strong operator relationships Deeply
Slide 29: Appendix
29 Appendix
Slide 30: 2024 Guidance As of May 1, 2024
Net Income and FFO Attributable to Common Stockholders2 NOI2 2024 Guidance As of May 1, 20241 FY 2024 FY 2024 - Per Share FY 2024 Low High Low High Low High Dollars in millions USD, except per share amounts, totals may not sum Net income attributable to common stockholders $11 $45 $0.03 $0.11 NOI $2
Slide 31: 2024 Guidance: Year-Over-Year Same-Store Cash NOI by Segment
For the Year Ended December 31, 2024 SHOP OM&R Triple-Net Non-Segment Total High End Net income attributable to common stockholders $ 45 2024 Guidance: Depreciation and amortization5 1,216 Interest expense, G&A, other income and expenses 6 807 Year-Over-Year NOI $ 855 $ 585 $ 606 $ 22 2,068 Same-Sto
Slide 32: Non-GAAP Financial Measures Reconciliation: Adjusted EBITDA
For the Three Months Ended March 31, 2024 December 31, 2023 Net loss attributable to common stockholders $ (14,312) $ (90,819) Non-GAAP Adjustments: Financial Measures Interest expense 149,933 154,853 Loss on extinguishment of debt, net 252 85 Reconciliation Taxes (including tax amounts in general,
Slide 33: Net Income to NOI – Trailing 5 Quarters Reconciliation
For the Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income (loss) attributable to common stockholders $ 17,517 $ 103,453 $ (71,124) $ (90,819) $ (14,312) Net Income to NOI – Adjustments: Trailing 5 Quarters Interest and other income (1,743)
Slide 34: Senior Housing Operating Portfolio Same-Store Cash Operating Revenue & NOI Reconciliations
Senior Housing Trailing 5-Quarters 1Q23 2Q23 3Q23 4Q23 1Q24 Operating Portfolio Total revenues $ 704,993 $ 724,614 $ 754,417 $ 775,195 $ 813,304 Same-Store Cash Adjustments: Operating Revenue Revenues not included in cash operating revenues1 (17,496) (15,720) (16,582) (16,989) (15,499) Revenue impac
Slide 35: Outpatient Medical and Research Portfolio Same-Store Cash Reconciliations
Outpatient Medical 1Q23 2Q23 Trailing 5-Quarters 3Q23 4Q23 1Q24 and Research Total revenues $ 203,632 $ 216,366 $ 226,988 $ 222,722 $ 219,508 Portfolio Adjustments: Same-Store Cash Straight-lining of rental income Non-cash rental income (2,345) (2,573) (1,958) (2,177) (2,350) (2,484) (2,989) (2,144)
Slide 36: Non-GAAP Reconciliation: First Quarter 2024 Same-Store Cash NOI by Segment
Non-GAAP For the Three Months Ended March 31, 2024 For the Three Months Ended March 31, 2023 Financial Measures SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total NOI $ 203,483 $ 145,570 $ 151,630 $ 3,201 $ 503,884 $ 167,771 $ 136,719 $ 145,943 $ 15,432 $ 465,865 Reconcili
Slide 37: Non-GAAP Reconciliation: 2024 Guidance Same-Store Cash NOI by Segment
For the Year Ended December 31, 2024 SHOP OM&R Triple-Net Non-Segment Total High End Net income attributable to common stockholders $ 45 Non-GAAP Financial Depreciation and amortization5 1,216 Interest expense, G&A, other income and expenses 6 807 Measures NOI $ 855 $ 585 $ 606 $ 22 2,068 Reconcilia
Slide 38: FFO and FAD Reconciliation
For the Three Months Ended March 31, Q1 YoY Change 2024 2023 ’24-’23 Net (loss) income attributable to common stockholders $ (14,312) $ 17,517 n/a Net (loss) income attributable to common stockholders per share1 $ (0.04) $ 0.04 n/a Adjustments: FFO and FAD Depreciation and amortization on real estat
Slide 39: Outpatient Medical and Research Same-Store Cash NOI – Trailing 8 Quarters
2 Q2 2 3 Q2 2 4 Q2 2 1 Q2 3 2 Q2 3 3 Q2 3 4 Q2 3 1 Q2 4 2 Q2 2 2 Q2 1 3 Q2 2 3 Q2 1 4 Q2 2 4 Q2 1 1 Q2 3 1 Q2 2 2 Q2 3 2 Q2 2 3 Q2 3 3 Q2 2 4 Q2 3 4 Q2 2 1 Q2 4 1 Q2 3 Outpatient NOI $ 1 3 6 ,5 8 3 $ 1 3 7 ,3 2 0 $ 1 3 5 ,3 1 6 $ 1 3 7 ,6 2 2 $ 1 3 6 ,7 3 1 $ 1 3 3 ,7 0 4 $ 1 3 6 ,7 1 9 $ 1 3 7 ,9 7
Slide 40: 2024 Guidance As of Feb. 14, 2024
Net Income and FFO Attributable to Common Stockholders2 NOI2 2024 Guidance As of Feb. 14, 20241 FY 2024 FY 2024 - Per Share FY 2024 Low High Low High Low High Dollars in millions USD, except per share amounts, totals may not sum Net income attributable to common stockholders $0 $47 $0.00 $0.11 NOI $
Slide 41: 2024 Guidance: Year-Over-Year Same-Store Cash NOI by Segment (Feb. 14, 2024)
For the Year Ended December 31, 2024 SHOP OM&R Triple-Net Non-Segment Total High End Net income attributable to common stockholders $ 47 2024 Guidance: Depreciation and amortization4 1,212 Interest expense, G&A, other income and expenses 5 806 Year-Over-Year NOI $ 847 $ 586 $ 606 $ 26 2,065 Same-Sto