Ventas, Inc. · NYSE:VTR
Ventas — Citi 2025 Global Property CEO Conference
44 slides from Ventas's conference presentation, March 2025
Slide 1: Citi 2025 Global Property CEO Conference
Citi 2025 Global Property CEO Conference
Slide 2: Non-GAAP Financial Measures & Cautionary Statements
Non-GAAP Financial Measures & Cautionary Statements Non-GAAP Financial Measures This presentation of Ventas, Inc. (the “Company,” “we,” “us,” “our” and similar terms) includes certain financial performance measures not defined by generally accepted accounting principles in the United States (“GAAP”)
Slide 3: Table of Contents
Table of Contents 04 Ventas’s Strategy 31 2024 Results & Full Year 2025 Outlook 09 Delivering Profitable Organic Growth in 34 Appendix Senior Housing 21 Value-Creating External Growth Focused on Senior Housing 27 Drive Strong Execution and Cash Flow Generation Throughout The Portfolio 3
Slide 4: Ventas's Strategy
4 Ventas’s Strategy
Slide 5: Ventas is a Leader in Real Estate
Ventas is a Leader in Real Estate Focused on serving a large and growing ~1,400 $44B +19% $1.92 aging population with an PROPERTIES1 ENTERPRISE VALUE2 ANNUALIZED TSR SINCE 20002 ANNUALIZED DIVIDEND PER emphasis on senior Including: Compared to: SHARE 2025 housing 7% Growth rate >800 13% Nareit HC RE
Slide 6: We Are Executing a Focused Strategy to Drive Growth
We Are Executing a Focused Strategy to Drive Growth… 1. 2. 3. Deliver profitable Capture value-creating Drive strong execution organic growth in external growth focused and cash flow generation senior housing on senior housing throughout portfolio 6
Slide 7: Execution of Focused Strategy is Driving Growth and Total Shareholder Returns
Execution of Focused Strategy is Driving Growth and Total Shareholder Returns Focused Strategy Outstanding Execution Strong Outcomes for >$100M Shareholders 1 Deliver profitable organic growth in senior housing SHOP SAME-STORE CASH NOI GROWTH IN 20241 ~7% YOY NFFO PER SHARE GROWTH IN 2024 AND PROJEC
Slide 8: Expanding SHOP Footprint and Increasing Total Company Growth Rate
Expanding SHOP Footprint and Increasing Total Company Growth Rate ~47% ~54% Expected SHOP Segment as a % of NOI by YE251 SHOP SHOP 16% 43% SH NNN 11% 31% SH NNN Expected to 50%+ increase VTR participation in 32% multiyear SHOP 29% growth OM&R OM&R opportunity Other 21% Other 17% Annualized NOI as of
Slide 9: Delivering Profitable Organic Growth in Senior Housing
Delivering Profitable Organic Growth in Senior Housing 9
Slide 10: SHOP 2024 Same-Store Cash NOI Key Takeaways
SHOP 2024 SAME-STORE CASH NOI KEY TAKEAWAYS NOI Growth, Revenue Growth and Margin Expansion: $751.2 ▪ FY24 Same-Store Cash NOI growth of 15.8% YoY, led by both U.S. NOI growth of 18.1% and Canada NOI Strong 2024 SHOP 15.8% growth of 10.0%2 Same-Store $648.7 o 3 consecutive years of double-digit YoY
Slide 11: 2025 SHOP Same-Store Cash NOI Outlook Key Drivers
2025 SHOP Same-Store Cash NOI Outlook Key Drivers1,2 (As Updated March 3, 2025) Average occupancy Revenue Cash NOI +270bp ~8% 11 - 16% growth guidance of growth guidance of growth guidance range of ~4.5% RevPOR Growth ~5% Operating Expense Growth Led by the U.S. STRONG OCCUPANCY GROWTH CONTINUED FAV
Slide 12: Rapidly Growing U.S. Aging Population Fueling Senior Housing Demand
Rapidly Growing U.S. Aging Population Fueling Senior Housing Demand Poised to Capitalize on SHOP Growth Opportunity with Expected Growth Exceeds Historic Opportunity for Growth Accelerating Demand Levels US 80+ Population1 Avg Annual US 80+ Population Growth1 +876K • In the next 5 years, the U.S. is
Slide 13: Expected 80+ Population Growth Significantly Exceeds Senior Housing Supply Outlook
Expected 80+ Population Growth Significantly Exceeds Senior Housing Supply Outlook Average Annual Senior Housing Deliveries vs 80+ Population Change1,2 Avg Annual 80+ Population Growth Avg Annual Unit Deliveries GFC Recovery Construction COVID & Multiyear Growth 900K Boom Recovery Opportunity 70K 80
Slide 14: Ventas OI Data Advantage and Analytics Platform
Ventas OITM Data Advantage and Analytics Platform Proprietary data analytics and experiential insights platform drives portfolio actions and optimizes the right combination of markets, assets and operators that combines in- house senior housing operating expertise with data analytics capabilities. V
Slide 15: Ventas OI Platform Driving Significant Portfolio Actions
Ventas OITM Platform Driving Significant Portfolio Actions1 MARKET ASSET OPERATOR Data-Driven Market Analysis NOI-Generating Capex Optimized Operator Mix 40+ 1,000+bp 241 170bp ~180 29 Market-related data Potential net absorption in NOI-Generating Capex Outperformance in FY24 Assets transitioned to
Slide 16: Ventas U.S. SHOP Markets Support Strong Net Absorption, Occupancy Growth & Affordability
VTR U.S. SHOP COMMUNITIES ARE IN MARKETS THAT SUPPORT POTENTIAL NET ABSORPTION OF Ventas U.S. SHOP 1,000+bp OVER THE NEXT FEW YEARS1,2 Markets Support Strong Net Absorption, Occupancy Growth & Affordability • Potential uncapped net demand growth of ~1,500bp over the next few years and scarcity value
Slide 17: SHOP NOI-Generating Capex Completed Projects
Completed Projects 241 237 228 231 220 221 222 390bp 241 218 SHOP NOI- 205 Generating Capex 197 YoY average occupancy growth Completed projects as of 183 Projects recognized in 4Q24 U.S. Same- Store SHOP seasoned2 projects January 2025 171 228 229 219 170bp 209 210 216 206 208 193 185 171 159 Outper
Slide 18: Expanding SHOP Footprint to Achieve Significant NOI Growth Opportunity
45 SHOP CONVERSION COMMUNITIES FROM BROOKDALE MASTER LEASE (~5,7 00 UNITS) o Converting select large-scale senior housing communities with significant upside potential to SHOP • Engaging aligned, proven, local market-focused operators Expanding SHOP • Deploy Ventas OITM active asset management playb
Slide 19: 45 SHOP Conversion Communities
45 SHOP Conversion Communities (~5,700 units) Converting Large-scale Communities to SHOP and Transitioning to Aligned, Proven, Local Market-Focused Operators >$50M Expected annualized SHOP NOI upside over time ~77% Average occupancy ~5 Proven high performing, local market-focused operators to take o
Slide 20: Expanding SHOP Operator Footprint Expected to Support Multiyear Growth
Expanding SHOP Operator Footprint Expected to Support Multiyear Growth Ventas SHOP Operators 29 OPERATOR SELECTION CRITERIA Ventas has nearly tripled its SHOP operator pool, focusing on the Strong product-type acumen highest performing operators with established local market clusters 10 and product-
Slide 21: Value-Creating External Growth Focused on Senior Housing
Value-Creating External Growth 21 Focused on Senior Housing
Slide 22: Opportunity To Expand SHOP Footprint Through Value-Creating External Growth
Opportunity To Expand SHOP Capital markets dislocation is increasing the number of assets with challenged capital structures, Footprint Through Value- making this the right time for Ventas to pursue value-creating external growth opportunities Creating External Growth RIGHT MARKETS RIGHT ASSETS RIGH
Slide 23: ~$1.9B of Senior Housing Investments Closed in 2024
~$1.9B of Senior Housing Investments Closed in 2024 Residence at Orchard Grove Discovery Commons Brookfield The Glen at Lake Oconee Village Shrewsbury, MA Brookfield, WI Greensboro, GA Key Financial 7 – 8% Low-to-mid teens Significant discount Criteria expected year-one NOI yield unlevered IRR expec
Slide 24: ~$1.9B of Senior Housing Investments Closed in 2024
~$1.9B of Senior Housing Investments Closed in 2024 Murano Senior Living HarborChase of Wilmington Richmond Place The Lodge at Greeley Seattle, WA Wilmington, DE Lexington, KY Greeley, CO Key Financial 7 – 8% Low-to-mid teens Significant discount Criteria expected year-one NOI yield unlevered IRR ex
Slide 25: ~$1.9B of Senior Housing Investments Closed in 2024
~$1.9B of Senior Housing Investments Closed in 2024 RIGHT Residents can afford to stay at MARKETS communities >7x longer than average length of stay1 Markets projected to support net absorption of ~900bp over next few years De minimis new supply deliveries expected over next 3 years RIGHT Attractive
Slide 26: Increasing Investment Momentum in Senior Housing
Increasing Investment Momentum in Senior Housing 2024 2025 Investment Process FY Investment Guidance (Feb 2025) Reviewed ~$18B pipeline of senior housing investments ~$1.9B Senior Housing Investments closed in 2024 Bid on ~$5B of senior housing investments Seller Profile ~$1B Senior Housing Investme
Slide 27: Drive Strong Execution and Cash Flow Generation Throughout The Portfolio
Drive Strong Execution and Cash Flow 27 Generation Throughout The Portfolio
Slide 28: An Essential Role in the Longevity Economy
Expected growth in the 65+ Population3 An Essential Role in the Longevity Economy. By the year 2030 1 in 5 26% 65+ Population Share of Total U.S. 24% The 65+ population now makes up ~18% of the U.S. population, an all-time high that is continuing to rise as 11,200 baby boomers turn 65 every day.1 22
Slide 29: Driving Strong Execution and Cash Flow Generation Throughout The Portfolio
Driving Strong Execution and Cash Flow Generation Throughout The Portfolio Advantaged Lillibridge Outpatient Medical Platform With Prime Strategic Dispositions of SNFs Locations And Strong Credit Tenants Consolidated • Expect early 2Q25 closing of 84% $150M pending PA SNF disposition at favorable pr
Slide 30: Commitment to Financial Strength
IMPROVEMENT IN LEVERAGE DRIVEN BY SHOP NOI GROWTH AND EQUITY FUNDING OF INVESTMENTS 6.9x 6.9x 6.0x Commitment to Financial Strength Entered target 5x to 6x range in 4Q24 (As Updated March 3, 2025) 2025 expect continued improvement, supported by multiyear SHOP growth and equity funding of investments
Slide 31: 2024 Results & Full Year 2025 Outlook
2024 Results & Full Year 2025 31 Outlook
Slide 32: Fourth Quarter and Full Year 2024 Financial Highlights
FOURTH QUARTER 2024 FINANCIAL RESULTS FULL YEAR 2024 FINANCIAL RESULTS Fourth Quarter and ▪ Fourth Quarter 2024 Normalized FFO per share of $0.81, an increase ▪ Full Year 2024 Normalized FFO per share of $3.19, above the high end Full Year 2024 of ~7% YoY, led by SHOP NOI growth and investment activ
Slide 33: Full Year 2025 Outlook & Increased Quarterly Dividend
FULL YEAR 2025 OUTLOOK SELECT GUIDANCE ASSUMPTIONS 2 ▪ Normalized FFO per share growth of ~7% YoY at guidance midpoint Full Year 2025 Guidance Ranges & Midpoints Per Share Amounts of $3.41 Attributable Net Income Per Share Range $0.42 - $0.53 Full Year 2025 Attributable Net Income Per Share Midpoint
Slide 34: Appendix
34 Appendix
Slide 35: 2025 Guidance
Net Income and FFO Attributable to Common Stockholders2 NOI2 2025 Guidance1 FY 2025 FY 2025 - Per Share FY 2025 Dollars in millions USD, except per Low High Low High Low High share amounts, totals may not sum due to rounding, unaudited Net income attributable to common stockholders $192 $244 $0.42 $
Slide 36: Non-GAAP Reconciliation 2025 Guidance: Year-Over-Year Same-Store Cash NOI by Segment
For the Year Ended December 31, 2025 SHOP OM&R Triple-Net Non-Segment Total High End Net income attributable to common stockholders $244 Non-GAAP Financial Depreciation and amortization4 1,304 Interest expense, G&A, other income and expenses 5 825 Measures Reconciliation NOI $1,112 $597 $603 $61 $2,
Slide 37: Net Income to NOI – Trailing 5 Quarters Reconciliation
For the Three Months Ended For the Years Ended December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 2023 2024 Net (loss) income attributable to common stockholders $ (90,819) $ (14,312) $ 19,387 $ 19,243 $ 56,835 $ (40,973) $ 81,153 Net Income to NOI – Adjustments: Tra
Slide 38: Senior Housing Operating Portfolio Same-Store Cash Reconciliations
Trailing 5-Quarter Comparison 4Q23 1Q24 2Q24 3Q24 4Q24 Total revenues $ 775,195 $ 813,304 $ 817,600 $ 845,532 $ 896,360 Senior Housing Operating Portfolio Adjustments: Revenues not included in cash operating revenues1 (21,775) (20,239) (11,733) (8,057) (3,984) Same-Store Cash Revenue impact from cha
Slide 39: Outpatient Medical and Research Portfolio Same-Store Cash Reconciliations
Trailing 5-Quarter Comparison 4Q23 1Q24 2Q24 3Q24 4Q24 Total revenues $ 222,722 $ 219,508 $ 219,559 $ 221,575 $ 216,950 Outpatient Medical and Research Portfolio Adjustments: Straight-lining of rental income (2,989) (3,290) (3,482) (2,394) (1,014) Same-Store Cash Non-cash rental income (2,144) (2,13
Slide 40: Non-GAAP Reconciliation: Full Year 2024 Same-Store Cash Operating Revenue by Segment
For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 SHOP OM&R SHOP OM&R Non-GAAP Financial Total revenues $ 3,372,796 $ 877,591 $ 2,959,219 $ 869,708 Measures Reconciliation Adjustments: Full Year 2024 Same- Straight-lining of rental income — (10,181) — (9,642) Store Cash Opera
Slide 41: Non-GAAP Reconciliation: Fourth Quarter 2024 Same-Store Cash NOI by Segment
For the Three Months Ended December 31, 2024 For the Three Months Ended December 31, 2023 SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total Non-GAAP Financial NOI $ 234,677 $ 143,332 $ 153,197 $ 6,489 $ 537,695 $ 185,430 $ 147,945 $ 151,925 $ 3,801 $ 489,101 Measures Adju
Slide 42: Non-GAAP Reconciliation: Full Year 2024 Same-Store Cash NOI by Segment
For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total Non-GAAP Financial NOI $ 866,383 $ 579,271 $ 606,225 $ 17,204 $ 2,069,083 $ 711,407 $ 576,932 $ 604,651 $32,177 $ 1,925,167 Measures Adjustments: Re
Slide 43: Non-GAAP Reconciliation: FFO and FAD
For the Three Months Ended Q4 YoY For the Twelve Months Ended FY YoY December 31, Change December 31, Change 2024 2023 ’24-’23 2024 2023 ’24-’23 Net income (loss) attributable to common stockholders $ 56,835 $ (90,819) n/m $ 81,153 $ (40,973) n/m Non-GAAP Financial Net income (loss) attributable to
Slide 44: Non-GAAP Reconciliation: Adjusted EBITDA and Further Adjusted EBITDA
For the Three Months Ended December 31, 2024 December 31, 2023 December 31, 2022 Net income attributable to common stockholders $ 56,835 $ (90,819) $ (45,019) Non-GAAP Financial Adjustments: Measures Interest expense 153,206 154,853 123,999 Loss (gain) on extinguishment of debt, net 15 85 — Reconcil