Slide 1: Earnings Presentation Second Quarter 2024
Earnings Presentation Second Quarter 2024
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 Second Quarter 2024 21 Driving Strong Results & Improved Execution and Cash 2024 Guidance Flow Generation Throughout The 06 Delivering Profitable Portfolio Organic Growth In Senior Housing 26 Financial Strength & Flexibility 17 External Growth Opportunities 29 Appendix Focused o
Slide 4: Second Quarter 2024 Results & Improved 2024 Guidance
Second Quarter 2024 Results & 4 Improved 2024 Guidance
Slide 5: Second Quarter 2024 Financial Performance and Improved 2024 Guidance
SECOND QUARTER 2024 FINANCIAL PERFORMANCE & HIGHLIGHTS IMPROVED 2024 GUIDANCE ▪ Second Quarter 2024 Normalized FFO per share of $0.80, an increase of As of 5/1/24 As of 8/1/24 approximately 7% YoY and led by organic growth in senior housing Net Income Attributable to Total Company YoY Same-Store Cas
Slide 6: Delivering Profitable Organic Growth in Senior Housing
Delivering Profitable Organic Growth in Senior Housing 6
Slide 7: Senior Housing Operating Portfolio
Senior Housing Top owner of real estate in the large and fragmented U.S. senior housing market Operating Portfolio Positioned in markets with favorable demographics, strong net absorption and affordability Positioned in product types with strong growth and margin profiles Expert operators who levera
Slide 8: Occupancy-Led Multiyear NOI Growth Opportunity
Occupancy-Led Multiyear ▪ 2024 SHOP Same-Store Cash NOI growth guidance range improved to 13% - 16% from 12% - 16% ▪ Expected 2024 average occupancy growth improved to ~280bp YoY, led by the U.S. NOI Growth Opportunity1 ▪ Higher occupancy levels to generate improved operating leverage and margin exp
Slide 9: Occupancy Growth Driving SHOP Outperformance and 8% Same-Store Revenue Growth
Occupancy Growth Driving SHOP Outperformance and 8% Same-Store Revenue Growth in 2Q1 SHOP SAME-STORE U.S. SHOP SAME-STORE CANADA SHOP SAME-STORE +380bp 13x 96.0% 2Q24 U.S. YoY Average Occupancy Growth YTD Net Move-Ins vs. PY (~900 net move-ins vs. PY at ~70) +400bp Canada June Average Occupancy 2Q24
Slide 10: Strong SHOP Same-Store Performance in 2Q24, Led by U.S.
SHOP SAME-STORE CASH NOI KEY TAKEAWAYS ▪ Occupancy-led Same-Store Cash NOI growth of 15.2% YoY o 8 consecutive quarters of double-digit YoY Same-Store Cash NOI growth $189.6 Strong SHOP Same- 15.2% ▪ Strong occupancy growth driven by broad-based demand and strong $164.6 sales execution across commun
Slide 11: Multiyear SHOP NOI Growth Opportunity
OCCUPANCY OPPORTUNITY 1,2 92%+ Multiyear SHOP 88% NOI Growth 84% VTR U.S. SHOP communities Opportunity at ~81% occupancy are in 78% markets that support potential net absorption of ~1,000bp upside over the next few years 2Q21 2Q24 Pre-COVID ILLUSTRATIVE NEAR-TERM SHOP NOI GROWTH OPPORTUNITY 1,2 KEY
Slide 12: U.S. Senior Housing Demand-Driven Occupancy Opportunity
POISED TO CAPITALIZE ON EXPECTED SENIOR HOUSING GROWTH OPPORTUNITY WITH ACCELERATING DEMAND Opportunity to surpass prior U.S. 80+ Population2 occupancy peak U.S. Senior Housing 20M 5 Years Post Financial Crisis Next 5 Years Demand-Driven +6% Growth +24% Growth Occupancy Opportunity1 15M Senior Housi
Slide 13: Lowest Construction Starts in Over a Decade, Supporting 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 14: Ventas OI Platform
Ventas OITM Platform RIGHT MARKETS Proprietary data analytics and experiential insights platform drives portfolio actions and optimizes the right combination of markets, assets and operators Combines in-house operating expertise with data analytics capabilities to drive performance Provides data-dri
Slide 15: Ventas OI Platform Supporting Senior Housing Performance
Ventas OITM Platform Supporting Senior Housing Performance1 MARKET ASSET OPERATOR Data-Driven Market Analysis NOI-Generating Capex Optimized Operator Mix 40+ ~1,000bp 215 350bp 160+ 25 Market-related data Potential net absorption in NOI-Generating Capex Outperformance in 2Q24 Assets transitioned to
Slide 16: Ventas OI Seasoned U.S. NOI-Generating Capex Investment Results
Ventas OITM 133 Seasoned U.S. NOI-Generating Capex Investment Results Improved market position creating occupancy opportunity Sodalis Senior Living Sunrise Senior Living 530bp 6.5% 2Q24 YOY AVERAGE OCCUPANCY 2Q24 YOY REVPOR GROWTH GROWTH 350bp 109% OUTPERFORMANCE IN 2Q24 YOY 2Q24 MOVE-INS VS. PRIOR
Slide 17: External Growth Opportunities Focused on Senior Housing
External Growth Opportunities Focused on 17 Senior Housing
Slide 18: Top Owner of U.S. Senior Housing Real Estate in a Large and Fragmented Market
5% Top Owner of U.S. Senior 8% REIT Peer Housing Real Estate in a Large 2% Publicly Traded Owner-Operator and Fragmented Market Opportunity To Expand SHOP Footprint Through Value-Creating External Growth 1.8M Units1 U.S. Private-Pay 85% Senior Housing Rest of Market 18 1. Company supplemental report
Slide 19: Investment Pipeline of Senior Housing Communities
ACTIVELY EXECUTING ON SENIOR HOUSING INVESTMENTS Investment Pipeline of Senior Housing Communities INVESTMENT STRATEGY ALIGNS WITH VENTAS FINANCIALLY ATTRACTIVE TIME TO INVEST STRENGTHS Submarkets with supply / demand profile, Year 1 FFO per share neutral / accretive with strong affordability and me
Slide 20: 2024 Senior Housing Investments
2024 Senior Housing Investments MC MC 16% Senior Housing 27% Investments closed Near-term line of sight to an YTD incremental ~$750M MC AL 49% AL 51% 24% IL ~$400M 60% ~$350M AL 73% at ~8% Going-In of Senior Housing Investments of Total Senior Cash Yield Magnolia Springs Mount Bachelor TPC Parkway H
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: Notable Developments During Second Quarter & Subsequent Events
KINDRED UPDATE FOR 23 LTACs ▪ Advanced discussions with Kindred Healthcare (“Kindred”) regarding 23 LTACs with lease expiration of April 30, 2025 and Q2 2024 annualized base rent ~$110 million (~5% NOI) o Potential ~(25% - 30%) annualized cash rent impact for 23 LTACs beginning May 1, 2025 if lease
Slide 23: An Essential Role in the Longevity Economy
An Essential Role in the The aging of America’s 70 million baby boomers is expected to drive unprecedented demand for outpatient visits and healthcare research & development. Ventas Outpatient Longevity Economy Medical & Research properties are at the center of these growing portions of the economy
Slide 24: Outpatient Medical Portfolio Delivering Continued Strong Results
AFFILIATED WITH LEADING HEALTH SYSTEMS WITH HIGHLY SECOND QUARTER HIGHLIGHTS SPECIALIZED USES 83% 1.5M SF of new and renewal deals executed YTD, 20% year over year Outpatient Medical Strong Credit Portfolio Delivering 94% Investment Grade Continued Strong +30bp Affiliated Results with Health Sequent
Slide 25: Update on Value Creation Activities Within Equitized Loan Portfolio
ELP OUTPATIENT MEDICAL OCCUPANCY GROWTH FUELED BY LILLIBRIDGE ACTIVE MANAGEMENT 91.4% 81 3.0M Opportunity for continued Update on Value occupancy growth Creation Activities Within Equitized 81.5% occupancy ELP Outpatient Medical Assets Portfolio square footage +450bp Loan Portfolio 77% initial $46M
Slide 26: Financial Strength & Flexibility
26 Financial Strength & Flexibility
Slide 27: Balance Sheet and Liquidity
COMMITMENT TO FINANCIAL STRENGTH AND DELEVERAGING Organic SHOP growth and all equity funded senior housing investments driving meaningful leverage improvements YTD Net Debt to Further Adjusted EBITDA Leverage improvement driven by Commitment to Financial Strength Balance Sheet and 6.9x 0.5x $90M+ BB
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 August 1, 2024
Net Income and FFO Attributable to Common Stockholders2 NOI2 2024 Guidance as of August 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 $31 $56 $0.07 $0.13 NOI
Slide 31: Non-GAAP Reconciliation 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 $ 56 Non-GAAP Financial Depreciation and amortization5 1,275 Interest expense, G&A, other income and expenses 6 742 Measures Reconciliation NOI $ 867 $ 584 $ 599 $ 23 2
Slide 32: Non-GAAP Financial Measures Reconciliation: Adjusted EBITDA
For the Three Months Ended June 30, 2024 March 31, 2024 Net income (loss) attributable to common stockholders $ 19,387 $ (14,312) Adjustments: Non-GAAP Interest expense Loss on extinguishment of debt, net 149,259 420 149,933 252 Financial Measures Taxes (including tax amounts in general, administrat
Slide 33: Net Income to NOI – Trailing 5 Quarters Reconciliation
For the Three Months Ended June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Net income (loss) attributable to common stockholders $ 103,453 $ (71,124) $ (90,819) $ (14,312) $ 19,387 Net Income to NOI – Adjustments: Trailing 5 Quarters Interest and other income (1,032)
Slide 34: Senior Housing Operating Portfolio Same-Store Cash Operating Revenue & NOI
Senior Housing Trailing 5-Quarter Comparison 2Q23 3Q23 4Q23 1Q24 2Q24 Operating Portfolio Total revenues $ 724,614 $ 754,417 $ 775,195 $ 813,304 $ 817,600 Same-Store Cash Adjustments: Revenues not included in cash operating revenues1 (16,073) (16,562) (16,989) (15,499) (7,060) Operating Revenue Reve
Slide 35: Outpatient Medical and Research Portfolio Reconciliations
Trailing 5-Quarter Comparison Outpatient Medical 2Q23 3Q23 4Q23 1Q24 2Q24 and Research Total revenues $ 216,366 $ 226,988 $ 222,722 $ 219,508 $ 219,559 Portfolio Adjustments: Straight-lining of rental income (1,958) (2,350) (2,989) (3,290) (3,482) Same-Store Cash Non-cash rental income (2,177) (2,48
Slide 36: Non-GAAP Reconciliation Second Quarter 2024 Same-Store Cash NOI by Segment
Non-GAAP For the Three Months Ended June 30, 2024 For the Three Months Ended June 30, 2023 SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total Financial Measures NOI $ 214,241 $ 146,273 $ 150,428 $ 3,412 $ 514,354 $ 177,504 $ 144,195 $ 150,818 $ 8,555 $ 481,072 Reconciliati
Slide 37: FFO and FAD Reconciliation
For the Three Months Ended Q2 YoY For the Six Months Ended FY YoY June 30, Change June 30, Change 2024 2023 ’24-’23 2024 2023 ’24-’23 Net income attributable to common stockholders $ 19,387 $ 103,453 (81%) $ 5,075 $120,970 (96%) Net income attributable to common stockholders per share 1 $ 0.05 $ 0.2
Slide 38: Outpatient Medical and Research Same-Store Cash NOI – Trailing 9 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 4 Outpatient Medical 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 2 Q2 4 2 Q2 3 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
Slide 39: 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 40: 2024 Guidance: Year-Over-Year Same-Store Cash NOI by Segment as of May 1, 2024
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