Slide 1: Earnings Presentation Third Quarter 2023
Earnings Presentation Third Quarter 2023 November 2, 2023
Slide 2: Non-GAAP Financial Measures & Cautionary Statements
Non-GAAP Financial Measures & Cautionary Statements Certain of the information contained herein, including certain operating and clinical information, such as patient and resident pricing and rate information, lead and move-in data and number of confirmed cases of COVID-19, has been provided by our
Slide 3: Table of Contents
Table of Contents Executive Summary & Updated and Raised 2023 Guidance Midpoint 5–6 Ventas Investment Thesis 8 Senior Housing Operating Portfolio Business Update 10 – 20 Triple-Net Portfolio Update 22 Outpatient Medical and Research Portfolio Update 24 – 27 Financial Strength & Flexibility 29 Capita
Slide 4: Executive Summary & Updated and Raised 2023 Guidance Midpoint
Executive Summary & Updated and Raised 2023 Guidance Midpoint
Slide 5: Executive Summary
Executive Summary KEY HIGHLIGHTS THIRD QUARTER 2023 FINANCIAL PERFORMANCE Strong Third Quarter Enterprise Growth Enterprise Results Strong third quarter enterprise results, with Normalized ENTERPRISE FINANCIAL RESULTS Normalized FFO per share of $0.75, an increase of 6% FFO1 per share of $0.75 compa
Slide 6: Full-Year 2023 Outlook
Full-Year 2023 Outlook 1 FULL-YEAR GUIDANCE RANGE & MIDPOINT KEY FULL-YEAR GUIDANCE COMMENTARY As of 11/2/23 o Improved and narrowed range of FY 2023 Normalized FFO per share guidance with an increased midpoint Normalized Per Share FFO Range $2.96 - $2.99 ▪ +$0.01 at guidance midpoint from broad pro
Slide 7: Ventas Investment Thesis
Ventas Investment Thesis
Slide 8: Ventas Investment Thesis
Our portfolio of high quality, diversified healthcare real DIVERSIFIED PORTFOLIO, estate is unified in serving the needs of a large and UNIFIED DEMAND growing aging population We are positioned for an unprecedented multiyear MULTIYEAR GROWTH senior housing growth opportunity driven by favorable OPPO
Slide 9: Senior Housing Operating Portfolio Business Update
Senior Housing Operating Portfolio Business Update
Slide 10: SHOP Performance Spotlight
SHOP Performance Spotlight 1,2 +180bp Spot +110bp Avg. Independent Canada 95% ~120% of 2019 Occupancy Occupancy Living Update Occupied Move-Ins Improved performance in 75 Holiday IL Highly occupied Same-Store Spot communities (spot Canadian portfolio Total Same-Store occupancy increased occupancy +1
Slide 11: SHOP Trends – 3Q23 Same-Store YoY
SHOP Trends – 3Q23 Same-Store YoY1 U.S. SHOP NOI KEY COMMENTARY ▪ 3Q23 spot occupancy grew +180bp from June 30 to Sept. 30, led by the U.S. at +210bp, sequential average occupancy grew +130bp 23.8% (3Q23 vs. 2Q23) and occupancy accelerated within the quarter $114.2M ▪ 3Q23 SHOP Same-Store Cash NOI g
Slide 12: Independent Living Active Asset Management Update
Independent Living Active Asset Management Update U.S. SHOP – DECISIVE ACTIONS INDEPENDENT LIVING OCCUPANCY PERFORMANCE ▪ Deployed the full active asset management and Ventas OI™ playbook, particularly in 36 U.S. IL communities 75 HOLIDAY ▪ 26 IL transitions to three proven high performing operators
Slide 13: Senior Housing Operating Expense Trends
Senior Housing Operating Expense Trends 1 3Q23 SAME-STORE SHOP OPERATING RESULTS COMPOSITION REVPOR GROWTH VS OPEXPOR2 GROWTH Revenue Composition1 Other OpEx Cash NOI Utilities 6% ~8% Food ~4% ~25% Maintenance 4% ~4% ~4% Insurance $635M ~3% Taxes 3Q23 2% ~4% ~5% REVENUE Management ~1% Fees Contract
Slide 14: Senior Housing NOI Opportunity
Senior Housing NOI Opportunity ILLUSTRATIVE SHOP NOI RECOVERY OPPORTUNITY1 Incremental growth potential from favorable supply / demand trends could cause NOI to exceed pre-COVID levels 3Q23 Annualized Illustrative SHOP Total Portfolio Total SHOP Portfolio Cash NOI Recovery Annualized SHOP Cash NOI a
Slide 15: Unprecedented Organic Growth Opportunity
Unprecedented Organic Growth Opportunity U.S. 80+ POPULATION INCREMENTAL 80+ POPULATION ANTICIPATED TO GROW BY 24%+ THROUGH 20281 TO ACCELERATE THROUGH THIS DECADE1 25M 5-Years Post Next 5 Years +906K p.a Financial 20M Crisis +24% growth 15M +525K p.a +7% growth 10M +215K p.a 5M M '12-'22 '23-'26 '2
Slide 16: Unprecedented Organic Growth Opportunity: Demand and Supply
Unprecedented Organic Growth Opportunity 1,2,3 SENIOR HOUSING MULTIYEAR GROWTH OPPORTUNITY DRIVEN BY RECORD DEMAND AND DECELERATING NEW SUPPLY Avg Annual 80+ Population Growth Avg Annual Unit Deliveries GFC Recovery Construction Boom COVID & Recovery Avg Annual 80+ Population Growth 800K 70K Avg Ann
Slide 17: Ventas Operational Insights (OI)
TM VENTAS OPERATIONAL INSIGHTS (OI)™ Our proprietary data and analytics platform supports our strategy, identifying and driving value creation at the intersection of the right markets, right assets and right operators. Right STRATEGIC LEVERS Markets Advanced Active Real Estate & Comprehensive Market
Slide 18: Ventas OI Case Study: Successful Playbook Execution
Ventas OITM Case Study: Successful Playbook Execution Transition 90 VENTAS ALIGNED NOI- IDENTIFY RIGHT PORTFOLIO VALUE OITM MGMT GENERATING OPPORTUNITY OPERATOR ACTIONS CREATION PLAYBOOK AGREEMENT CAPEX N AT I O N A L O P E R AT O R D I S A G G R E G AT I O N NET MIMO OCCUPANCY REVPOR NOI Transition
Slide 19: Ventas OI Case Study: Pricing & Sales Execution
Ventas OITM Case Study: Pricing & Sales Execution Driving Higher Move-Ins Sunrise Senior Living TM Right Market Right Asset Right Operator RECENT ACTIONS DRIVING IMPROVED OCCUPANCY WITHIN 80 U.S. COMMUNITIES ▪ Executed Ventas OI™ with Sunrise revenue management to identify opportunities to optimize
Slide 20: Ventas OI Case Study: Continued Execution of NOI-generating Capex Projects
Ventas OITM Case Study: Continued Execution of NOI-generating Capex Projects TM Right Market Right Asset Right Operator T A R G E T E D N O I - G E N E R A T I N G C A P E X P R O J E C T S P R I O R I T I Z E D T H R O U G H V E N T A S O I TM ~170 NOI-generating Capex Projects Completing Through t
Slide 21: Triple-Net Portfolio Update
Triple-Net Portfolio Update
Slide 22: Update on 2025 Triple-Net Lease Maturities
Update on 2025 Triple-Net Lease Maturities 1 BROOKDALE SENIOR HOUSING PORTFOLIO KINDRED LTAC PORTFOLIO ▪ 120 senior living communities producing approximately 8% of Ventas NOI ▪ Kindred 29 long-term acute care hospitals (“LTACs”) portfolio TTM with lease maturity of December 2025 EBITDARM coverage w
Slide 23: Outpatient Medical and Research Portfolio Update
Outpatient Medical and Research Portfolio Update
Slide 24: Ventas's Leading National Outpatient Medical Platform
Ventas’s Leading National Outpatient Medical Platform Continues to Build on Its Core Values and Strengths ADVANTAGED LOCATIONS W ITH STRONG CREDIT TENANTS VENTAS HAS FAVORABLE TENANT SPECIALTY MIX1 % of Physician Occupied OM sq. ft. Primary Care 83% Specialty Strong Credit 94% Investment Grade Affil
Slide 25: Active Asset Management of Outpatient Medical Properties from Equitized Loan Portfolio
Active Asset Management of Outpatient Medical Properties from Equitized Loan Portfolio OUTPATIENT MEDICAL PORTFOLIO PORTFOLIO ACCOMPLISHMENTS ▪ Completed strategic asset plans for each building to establish a roadmap for success ▪ Conducted building assessments (including elevator, electric, roof, H
Slide 26: Excellent University-Based Research Portfolio Credit
Excellent University-Based Research Portfolio Credit 1,2 HIGH QUALITY RESEARCH TENANT BASE PHARMA / BIOTECH TENANTS BY DEVELOPMENT STAGE % Annualized Base Rent % Annualized Base Rent Science, Tech, Healthcare 5% Flexible Innovation Space 6% Commercial - 73% Commercial - IG or Public >$1B Other 19% A
Slide 27: University-Based Research Portfolio Benefits From Institutional Demand
University-Based Research Portfolio Benefits From Institutional Demand, Pursuing Long-Term Strategic Goals STRONG DEMAND AT A POW ERFUL PHOENIX BIOSCIENCE CORE AT ARIZONA STATE UNIVERSITY INTERSECTION ▪ In September, executed 34K SF long term lease with National Institute (NIH) of Diabetes and Diges
Slide 28: Financial Strength & Flexibility
Financial Strength & Flexibility
Slide 29: Robust Liquidity & Access to Capital
Robust Liquidity & Access to Capital ACCESSED DIVERSE SOURCES OF CAPITAL AHEAD OF RISING INTEREST RATES ~$2.8B of capital raised year-to-date at ~4.9% average cash interest rate with line of sight to an additional $0.2B by year-end (Dollars in billions) 4.98% Dispositions 10-Year US Treasury Rates $
Slide 30: Capital Allocation
Capital Allocation
Slide 31: Growing Pipeline of High-Quality Senior Housing Opportunities
Growing Pipeline of High-Quality Senior Housing Opportunities ENTERING THE PEAK YEARS FOR SENIOR HOUSING LOAN MATURITIES 1 W ITH ~$18 BILLION COMING DUE THROUGH 2025 $11 ~$18 Billion Senior Housing ▪ Strong senior housing industry fundamentals Loan Maturities through 2025 expected to continue during
Slide 32: Recent Capital Recycling Actions
Recent Capital Recycling Actions SENIOR HOUSING VIM OUTPATIENT MEDICAL VIM DISPOSITIONS ACQUISITION ACQUISITION ▪ ~$80 million of high-performing, recently ▪ ~$130 million high-quality outpatient medical ▪ In August, closed on ~$60 million of skilled developed Class A senior housing assets opened pr
Slide 33: Ventas Sustainability Update
Ventas Sustainability Update
Slide 34: Integrating ESG Into Our Business Practices
Integrating ESG Into Our Business Practices is Essential to Delivering Sustainable Long-Term Outperformance 2022-23 CORPORATE SUSTAINABILITY VENTAS’S SUSTAINABILITY PRIORITIES REPORT OUR IMPACT Enabling Sustainable Environments and Strong Communities Our strong ESG practices position our business fo
Slide 35: Recent Sustainability Highlights and Progress
Recent Sustainability Highlights and Progress SUSTAINABILITY HIGHLIGHTS DELIVERING ON OUR NET ZERO COMMITMENT Executed on Net Zero In 2022, Ventas became the first healthcare REIT to commit to net zero Property-specific decarbonization roadmaps created and rolled out for all operational carbon emiss
Slide 36: Appendix
Appendix
Slide 37: Adjusted EBITDA and Further Adjusted EBITDA Reconciliation
Non-GAAP Financial Measures Reconciliation Adjusted EBITDA and Further Adjusted EBITDA Dollars in thousands USD, totals may not sum due to rounding, unaudited For the Three Months Ended September 30, 2023 June 30, 2023 Net (loss) income attributable to common stockholders $ (71,124) $ 103,453 Adjust
Slide 38: Net Income to NOI – Trailing Quarters Reconciliation
Net Income to NOI – Trailing 5 Quarters Reconciliation Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited For the Three Months Ended For the Nine Months Ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 2022 2023 N
Slide 39: SHOP Same-Store Cash Operating Revenue & NOI Reconciliations
Senior Housing Operating Portfolio Same-Store Cash Operating Revenue & Same-Store Cash NOI Reconciliations Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited Trailing 5-Quarters 3Q22 4Q22 1Q23 2Q23 3Q23 Total revenues $ 668,583 $ 674,126 $ 704,993 $ 724,6
Slide 40: Outpatient Medical and Research Same-Store Reconciliations
Outpatient Medical and Research Portfolio Same-Store Cash Operating Revenue & Same-Store Cash NOI Reconciliations Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited Trailing 5-Quarters 3Q22 4Q22 1Q23 2Q23 3Q23 Total revenues $ 201,414 $ 201,125 $ 203,632
Slide 41: YTD 2023 Same-Store Cash Operating Revenue by Segment
Non-GAAP Financial Measures Reconciliation YTD 2023 Same-Store Cash Operating Revenue by Segment Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited For the Nine Months Ended September 30, 2023 For the Nine Months Ended September 30, 2022 SHOP OM&R SHOP OM
Slide 42: Third Quarter 2023 Same-Store Cash NOI by Segment
Non-GAAP Financial Measures Reconciliation Third Quarter 2023 Same-Store Cash NOI by Segment Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited For the Three Months Ended September 30, 2023 For the Three Months Ended September 30, 2022 SHOP OM&R Triple-Ne
Slide 43: YTD 2023 Same-Store Cash NOI by Segment
Non-GAAP Financial Measures Reconciliation YTD 2023 Same-Store Cash NOI by Segment Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited For the Nine Months Ended September 30, 2023 For the Nine Months Ended September 30, 2022 SHOP OM&R Triple-Net Non-Segmen
Slide 44: 2023 Guidance: Year-Over-Year Same-Store Cash NOI by Segment
Non-GAAP Financial Measures Reconciliation 2023 Guidance: Year-Over-Year Same-Store Cash NOI by Segment1,2,3 Dollars in millions USD, unless otherwise noted, totals may not sum due to rounding, unaudited For the Year Ended December 31, 2023 SHOP OM&R Triple-Net Non-Segment Total High End Net income
Slide 45: FFO and FAD Reconciliation
FFO and FAD Reconciliation Dollars in thousands USD, except per share amounts, totals may not sum due to rounding, unaudited Q3 YoY 2022 2023 Change Q3 Q4 Q1 Q2 Q3 ’22-’23 YTD 3Q22 YTD 3Q23 Net income (loss) attributable to common stockholders $ 1,256 $ (45,019) $ 17,517 $ 103,453 $ (71,124) n/a $ (
Slide 46: Outpatient Medical and Research Same-Store Cash NOI – Trailing 9 Quarters
Outpatient Medical and Research Same-Store Cash NOI – Trailing 9 Quarters Reconciliation Dollars in thousands USD, unless otherwise noted, totals may not sum due to rounding, unaudited 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 3Q23 3Q22 2Q23 2Q22 1Q23 1Q22 4Q22 4Q21 3Q22 3Q21 2Q22 2Q21 1Q22 1Q21