Slide 1: Earnings Presentation Third Quarter 2024
Earnings Presentation Third Quarter 2024 Provided October 30, 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 Third Quarter 2024 22 Driving Strong Results & Improved Execution and Cash 2024 Guidance Flow Generation Throughout The 06 Delivering Profitable Portfolio Organic Growth In Senior Housing 25 Financial Strength & Flexibility 15 External Growth Opportunities 27 Appendix Focused on
Slide 4: Third Quarter 2024 Results & Improved 2024 Guidance
Third Quarter 2024 Results & 4 Improved 2024 Guidance
Slide 5: Third Quarter 2024 Financial Performance & Improved 2024 Guidance
THIRD QUARTER 2024 FINANCIAL PERFORMANCE & HIGHLIGHTS IMPROVED 2024 GUIDANCE ▪ Third Quarter 2024 Normalized FFO per share of $0.80, an increase of ~7% YoY, led As of 8/1/24 As of 10/30/24 by NOI growth in senior housing Net Income Attributable to ▪ Total Company YoY Same-Store Cash NOI grew 7.6% in
Slide 6: Delivering Profitable Organic Growth in Senior Housing
Delivering Profitable Organic Growth in Senior Housing 6
Slide 7: Occupancy-Led Multiyear NOI Growth Opportunity
Occupancy-Led Multiyear ▪ 2024 SHOP Same-Store Cash NOI growth guidance range improved to 14% - 16% from previous 13% - 16% ▪ Expected 2024 average occupancy growth improved to ~290bp YoY, led by the U.S. NOI Growth Opportunity1 ▪ Higher occupancy levels expected to generate improved operating lever
Slide 8: Occupancy Growth Driving SHOP Outperformance and ~9% Same-Store Revenue Growth
Occupancy Growth Driving SHOP Outperformance and ~9% Same-Store Revenue Growth in 3Q241 U.S. SHOP SAME-STORE U.S. SHOP SAME-STORE CANADA SHOP SAME-STORE +400bp 84.0% 96.7% 3Q24 U.S. YoY Average Occupancy Growth U.S. September Average Occupancy +410bp Canada September Average Occupancy 3Q24 U.S. AL Y
Slide 9: Strong SHOP Same-Store Performance
SHOP 3Q24 SAME-STORE CASH NOI 3Q24 KEY TAKEAWAYS ▪ Occupancy-led Same-Store Cash NOI growth of 15.3% YoY, led by U.S. growth of 17.5% $193.6 o 9 consecutive quarters of double-digit YoY Same-Store Cash NOI 15.3% Strong SHOP Same- growth ▪ Strong occupancy growth driven by broad-based demand and succ
Slide 10: U.S. Senior Housing Demand-Driven Occupancy Opportunity
POISED TO CAPITALIZE ON EXPECTED SENIOR HOUSING GROWTH OPPORTUNITY WITH ACCELERATING DEMAND Opportunity to surpass U.S. 80+ Population2 prior occupancy peak U.S. Senior Housing 20M 5 Years Post Financial Crisis Next 5 Years Demand-Driven +4% Growth +27% Growth Occupancy Opportunity1 15M > U.S. 80+ p
Slide 11: Ventas OI Driving Outsized Performance
Ventas OITM RIGHT Driving Outsized Performance MARKETS Proprietary data analytics and experiential insights platform drives portfolio actions and optimizes the right combination of markets, assets and operators Combines in-house senior housing operating expertise with data analytics capabilities to
Slide 12: Highest-Performing SHOP Communities
Highest-Performing SHOP Communities Generate Higher RevPOR and NOI Growth CASE STUDY: PERFORMANCE OF COMMUNITIES WITH ZERO LOST REVENUE DAYS IN SEPTEMBER Ventas OITM initiatives at highest performing communities seek to • 8 communities reached Zero Lost Revenue days for every day of September 2024 r
Slide 13: Vast & Growing Data Advantage Creates a Competitive Moat
Why Our Advanced Data Capabilities Vast & Growing Data Advantage Creates a Are So Difficult to Replicate Competitive Moat KEY CHALLENGE There is no industry-standard platform to collect and Ventas has spent years accumulating ~1 billion operational and analyze data from operating partners, market da
Slide 14: Portfolio Strongly Positioned For Expected Multiyear Net Absorption
Portfolio Strongly Positioned For Expected Multiyear Net Absorption RIGHT MARKETS 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 to drive broad-based multiy
Slide 15: External Growth Opportunities Focused on Senior Housing
External Growth Opportunities Focused on 15 Senior Housing
Slide 16: Senior Housing Investments Closed or Under Contract YTD
Senior Housing Investments Closed or Under Contract YTD Summary Statistics: ▪ $1.7B closed or under contract ▪ 7 – 8% expected Year- One NOI yield ▪ Significant discount to replacement cost ▪ Low-to-mid teens unlevered IRR expectation 16
Slide 17: Increasing Investments in Senior Housing
Increasing Investments in Senior Housing $1.7B of Closed or Under Contract Senior Housing Investments YTD $1.7B Senior Housing Investments Meet Key Financial Criteria: ~$1B • 7 – 8% expected Year- Closed or ~$250M One NOI yield ~$750M $1.7B Under ~$750M Contract YTD • Significant discount to replace
Slide 18: Expanding SHOP Footprint and Increasing Enterprise Growth Rate
Expanding SHOP Footprint and Increasing Enterprise Growth Rate 47% ~52% ~54% SHOP SHOP SHOP 43%+ Increasing VTR 31% 40%+ 16% 11% 11% participation in SH NNN SH NNN SH NNN multiyear SHOP growth opportunity 32% 30% 29% SHOP NOI OM&R OM&R OM&R percentage Other 21% Other 18% Other 17% increases 12 perce
Slide 19: Investment Pipeline of Senior Housing Assets
ACTIVELY EXECUTING ON SENIOR HOUSING INVESTMENTS Investment Pipeline of Senior Housing Assets INVESTMENT STRATEGY ALIGNS WITH VENTAS FINANCIALLY ATTRACTIVE TIME TO INVEST STRENGTHS Submarkets with supply / demand profile, Year-One FFO per share expected to with strong affordability and meaningful be
Slide 20: $1.7 Billion Senior Housing Investments Closed or Under Contract YTD
$1.7B Senior Housing Investments Closed or $1.7 Billion Senior Under Contract YTD Housing Investments Closed or Under Contract YTD in 2024 Investment Stats: > 44 Communities > Acuity Mix1: • 46% IL • 54% AL / MC > 7 - 8% expected Year- One NOI yield RIGHT MARKETS RIGHT ASSETS RIGHT OPERATORSTM Res
Slide 21: 20-Community Portfolio Operated by Grace Management
INVESTMENT SPOTLIGHT 20-Community Portfolio Operated by Grace MGMT EXECUTING OUR PLAYBOOK 20 Expanding with existing SHOP Communities operators with proven performance for Ventas $725M ($244K / Unit) Right Market I Submarkets that support continued growth from Criteria Metric Meets Investment Criter
Slide 22: Driving Strong Execution and Cash Flow Generation Throughout The Portfolio
Driving Strong Execution and Cash Flow 22 Generation Throughout The Portfolio
Slide 23: An Essential Role in the Longevity Economy
Growth in the 65+ Population3 An Essential Role in the Longevity Economy. 26% By the year 2030 65+ Population Share of Total The 65+ population now makes up about 18% of the U.S. population, an all- 24% 1 in 5 U.S. Population time high that is continuing to rise as 11,200 baby boomers turn 65 every
Slide 24: Leading National Outpatient Medical Platform
Leading National Outpatient Medical Platform Has Strong Performance Track Record and Significant Competitive Advantages Advantaged Locations With Strong Credit Tenants Consecutive Years of >3% YOY Same-Store Cash NOI Growth1 Continuous, Compounding Growth 82% 3.4% 3.0% 3.0% Strong Credit 95% Investm
Slide 25: Financial Strength & Flexibility
25 Financial Strength & Flexibility
Slide 26: Commitment to Financial Strength and Deleveraging
COMMITMENT TO FINANCIAL STRENGTH AND DELEVERAGING Organic SHOP growth and equity funded senior housing investments driving meaningful leverage improvements YTD Net Debt to Further Adjusted EBITDA Commitment to Financial Strength Balance Sheet and 6.9x 0.6x BBB+/Baa1 Liquidity 5x to 6x 6.7x Leverage
Slide 27: Appendix
27 Appendix
Slide 28: Non-GAAP Financial Measures Reconciliation: Adjusted EBITDA
For the Three Months Ended September 30, 2024 June 30, 2024 Non-GAAP Net income attributable to common stockholders $ 19,243 $ 19,387 Financial Measures Adjustments: Interest expense 150,437 149,259 Reconciliation Loss on extinguishment of debt, net — 420 Adjusted EBITDA Taxes (including tax amounts
Slide 29: Net Income to NOI – Trailing 5 Quarters Reconciliation
For the Three Months Ended September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Net Income to NOI – Net (loss) income attributable to common stockholders $ (71,124) $ (90,819) $ (14,312) $ 19,387 $ 19,243 Trailing 5 Quarters Adjustments: Reconciliation Interest and ot
Slide 30: Senior Housing Operating Portfolio Same-Store Cash NOI Reconciliations
Trailing 5-Quarter Comparison 3Q23 4Q23 1Q24 2Q24 3Q24 Total revenues $ 754,417 $ 775,195 $ 813,304 $ 817,600 $ 845,532 Senior Housing Adjustments: Operating Portfolio Revenues not included in cash operating revenues1 Revenue impact from change in FX (20,179) (2,001) (20,337) (324) (18,811) (1,489)
Slide 31: Outpatient Medical and Research Portfolio Same-Store Cash NOI Reconciliations
Trailing 5-Quarter Comparison 3Q23 4Q23 1Q24 2Q24 3Q24 Total revenues $ 226,988 $ 222,722 $ 219,508 $ 219,559 $ 221,575 Outpatient Medical Adjustments: and Research Straight-lining of rental income (2,350) (2,989) (3,290) (3,482) (2,394) Portfolio Non-cash rental income (2,484) (2,144) (2,136) (2,22
Slide 32: Third Quarter 2024 Same-Store Cash NOI by Segment
For the Three Months Ended September 30, 2024 For the Three Months Ended September 30, 2023 SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total Non-GAAP NOI $ 213,982 $ 144,096 $ 150,970 $ 4,102 $ 513,150 $ 180,702 $ 148,073 $ 155,965 $ 4,389 $ 489,129 Financial Measures Re
Slide 33: FFO and FAD Reconciliation
For the Three Months Ended Q3 YoY For the Nine Months Ended YTD YoY September 30, Change September 30, Change 2024 2023 ’24-’23 2024 2023 ’24-’23 Net income (loss) attributable to common stockholders $ 19,243 $ (71,124) n/m $ 24,318 $ 49,846 (51%) Net income (loss) attributable to common stockholder
Slide 34: 2024 Guidance Same-Store Cash NOI by Segment Reconciliation
For the Year Ended December 31, 2024 SHOP OM&R Triple-Net Non-Segment Total High End Net income attributable to common stockholders $53 Non-GAAP Financial Depreciation and amortization4 1,283 Interest expense, G&A, other income and expenses 5 738 Measures NOI $868 $582 $605 $19 $2,074 Reconciliation
Slide 35: 2024 Guidance
Net Income and FFO Attributable to Common Stockholders2 NOI2 2024 Guidance1 FY 2024 FY 2024 - Per Share FY 2024 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 $36 $53 $0.09 $0.