Slide 1: Earnings Presentation: 2023 Earnings & 2024 Outlook
Earnings Presentation 2023 Earnings & 2024 Outlook
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 2023 Highlights 23 Drive Strong Execution and Cash 06 Full Year 2024 Outlook Flow Generation Throughout The Portfolio 09 Ventas’s Strategy 29 Balance Sheet & 14 Delivering Profitable Liquidity Organic Growth in Senior Housing 31 Appendix 18 Value-Creating External Growth Focused
Slide 4: 2023 Highlights
4 2023 Highlights
Slide 5: Fourth Quarter + Full Year 2023 Financial Highlights
FOURTH QUARTER 2023 FINANCIAL RESULTS FULL YEAR 2023 FINANCIAL RESULTS ▪ Strong Fourth Quarter 2023 Normalized FFO per share of $0.76 ▪ Full Year 2023 Normalized FFO per share of $2.99 at the high end of the Fourth Quarter + Full o Increase of 7% excluding $0.02 per share benefit of promote revenue
Slide 6: Full Year 2024 Outlook
6 Full Year 2024 Outlook
Slide 7: Full Year 2024 Outlook
KEY GUIDANCE COMMENTARY Increase / (Decrease) to Normalized ▪ Strong organic property growth expected to continue in 2024 with FFO/sh. 2024 Guidance Midpoint vs. 2023 Normalized FFO per share growing 5% YoY at guidance midpoint of $3.13 ▪ The YoY increase of $0.14 per share at the midpoint of the 20
Slide 8: 2024 SHOP Same-Store Cash NOI Key Drivers
2024 SHOP Same-Store ▪ 2024 SHOP same-store cash NOI growth guidance range of 10% - 15% o U.S. expected to grow mid-to-high teens Cash NOI Key Drivers ▪ 2024 average occupancy growth of +250bp YoY o U.S. average occupancy growth of ~300bp, with a strong start to January ▪ 2024 OpExPOR expected to gr
Slide 9: Ventas's Strategy
9 Ventas’s Strategy
Slide 10: Uniquely Positioned to Create Value
Uniquely 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 relationship
Slide 11: 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 11
Slide 12: …and Enhance Total Shareholder Returns
…and Enhance Total Shareholder Returns Drive enterprise NOI and normalized FFO per share growth Further enhance portfolio quality and operator diversification Increase SHOP scale Enable strong returns on capital Drive stable and growing dividend capacity 12
Slide 13: Ventas Has the Right Platform to Win
Ventas Has the Right Platform to Win Operating Focus & Capabilities Data-Driven Insights Through to Drive Value Creation Ventas OITM Ventas has the expertise, knowledge and relationships necessary to capture the unprecedented organic growth opportunity COMPETITIVE and capitalize on highly actionable
Slide 14: Delivering Profitable Organic Growth in Senior Housing
Delivering Profitable Organic Growth in Senior Housing 14
Slide 15: Strong SHOP Same-Store Performance in 2023
TOTAL SHOP NOI KEY COMMENTARY ▪ Full Year 2023 SHOP met or exceeded all same-store guidance metrics ▪ Full Year 2023 same-store cash NOI grew +18.3% YoY and achieved margin expansion of +220 bp YoY Strong SHOP Same- $626.1 18.3% o Led by the U.S. which saw accelerating NOI growth in Store Performanc
Slide 16: Ventas Operational Insights Driving Outsized Performance
Ventas Operational InsightsTM 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 Ventas’s unmatched in-house operating expertise with data anal
Slide 17: Accelerating SHOP NOI in 2024
Accelerating SHOP PRICE / VOLUME CAPITAL OPERATOR NOI in 2024 OPTIMIZATION INVESTMENTS TRANSITIONS Driving durable occupancy- Demonstrating strong Right Market, Right Asset, led revenue growth returns Right OperatorTM Expected Exit Run Rate Strong Setup for 2025+ ▪ Ventas OITM with experienced opera
Slide 18: Value-Creating External Growth Focused on Senior Housing
Value-Creating External Growth 18 Focused on Senior Housing
Slide 19: Unprecedented Growth Opportunity Supported by Supply Demand Fundamentals
Unprecedented Growth Opportunity Supported by Supply Demand Fundamentals1,2,3 U.S. Senior Housing Multiyear Growth Opportunity Driven By Record Demand & Decelerating New Supply ACCELERATING DEMOGRAPHIC DEMAND FOR SENIOR HOUSING GFC Recovery Construction COVID & 800K Boom Recovery 70K U.S. 80+ popula
Slide 20: Now is the Right Time to Own and Acquire Senior Housing
Now is the Right Time to Attractive investor entry point given current valuation and as Ventas further aligns its portfolio with the growth opportunity. Own and Acquire Senior Housing RIGHT MARKETS RIGHT ASSETS RIGHT OPERATORSTM RIGHT TIME OUR FOCUSED STRATEGY Our Strategy will Enhance Total Shareho
Slide 21: Capital Markets Dislocation Causing Attractive Buying Opportunities
Capital Markets Dislocation Causing Attractive Buying Opportunities Entering the Peak Years for Senior Housing Loan Maturities 1 $12 ~$18 Billion Senior Housing Loan Ventas has an opportunity to acquire high- Maturities through 2025 quality senior housing assets with challenged $10 capital structure
Slide 22: Strong pipeline of high-quality senior housing acquisitions in 2024
ACTIVELY EXECUTING ON HIGH-QUALITY, ATTRACTIVE SENIOR HOUSING ACQUISITIONS ACQUISITION STRATEGY ALIGNS WITH VENTAS’S STRENGTHS FINANCIALLY ATTRACTIVE TIME TO INVEST High Quality Submarkets with compelling supply / demand profile, Acquisition Pipeline with strong affordability and meaningful expected
Slide 23: Drive Strong Execution and Cash Flow Generation Throughout The Portfolio
Drive Strong Execution and Cash Flow 23 Generation Throughout The Portfolio
Slide 24: Demographic Tailwinds Fueling Demand Across Our Portfolio
Demographic Tailwinds Fueling Growth in the 65+ population drives: Demand Across Our Portfolio ✓ INCREASED DEMAND FOR OUTPATIENT MEDICAL CARE ✓ INCREASED NEED FOR R&D TO SUPPORT 65+ Population Growth Projections (2010 – 2030)1 DRUG INNOVATION 80M '20-'30 ▪ 11,200 people turn 65 each day; 4.1 million
Slide 25: Outpatient Medical and Research Assets Aligned Through Strong Institutional Demand
Outpatient Medical and Research Assets Aligned Through Strong 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 natio
Slide 26: Ventas Has Assembled the Nation's Leading Business at Intersection of Medicine, Research
Ventas Has Assembled the Nation’s Leading Business at the Intersection of Medicine, Research and Universities, Attracting Strong Demand to Create Vibrant Environments uCity Portfolio: Premier University-Based Life Science The Pearl: Atrium Health and Wake Forest Medical Research Ecosystem School in
Slide 27: 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 communities producing <8% of Ventas NOI with lease maturity of December 2025 ▪ Pursuant to the
Slide 28: Outpatient Medical Portfolio Delivers Complementary, Compounding Growth
AFFILIATED WITH LEADING HEALTH SYSTEMS WITH HIGHLY FULL YEAR SAME-STORE CASH NOI GROWTH 1 SPECIALIZED USES Continuous, Compounding Growth Outpatient Medical 83% 3.4% Strong Credit 3.0% Portfolio Delivers 94% Investment Grade Complementary, Affiliated 2.4% Compounding with Health System or Growth Hos
Slide 29: Balance Sheet & Liquidity
29 Balance Sheet & Liquidity
Slide 30: Robust Liquidity & Access to Capital
Robust Liquidity & Access to Capital Select Balance Sheet Access to Diverse Capital Sources $4.0B+ Statistics1 Provides Financial Flexibility 6.9x 38% of attractively priced capital raised ahead of rising interest rates Third-Party Capital (Ventas Investment Recycling Management) NET DEBT / FURTHER
Slide 31: Appendix
31 Appendix
Slide 32: Non-GAAP Financial Measures Reconciliation
For the Three Months Ended December 31, 2023 September 30, 2023 Net loss $ (90,819) $ (71,124) Non-GAAP Adjustments: Financial Measures Interest 154,853 147,919 (Gain) loss on extinguishment of debt, net 85 612 Reconciliation Taxes (including tax amounts in general, administrative and professional f
Slide 33: Net Income to NOI – Trailing 5 Quarters Reconciliation
For the Three Months Ended For the Years Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 2022 2023 Net Income to NOI – Net (loss) income attributable to common stockholders $ (45,019) $ 17,517 $ 103,453 $ (71,124) $ (90,819) $ (47,447) $ (40,973) Trailing 5
Slide 34: Senior Housing Operating Portfolio Same-Store Cash NOI Reconciliations
Trailing 5-Quarter Comparison 4Q22 1Q23 2Q23 3Q23 4Q23 Total revenues $ 674,126 $ 704,993 $ 724,614 $ 754,417 $ 775,195 Senior Housing Adjustments: Operating Portfolio Revenues not included in cash operating revenues1 (18,315) (14,212) (11,823) (12,071) (12,648) Same-Store Cash Revenue impact from c
Slide 35: Outpatient Medical and Research Portfolio Same-Store Cash NOI Reconciliations
Trailing 5-Quarter Comparison 4Q22 1Q23 2Q23 3Q23 4Q23 Total revenues $ 201,125 $ 203,632 $ 216,366 $ 226,988 $ 222,722 Outpatient Medical Adjustments: and Research Straight-lining of rental income (2,040) (2,345) (1,958) (2,350) (2,989) Portfolio Non-cash rental income (2,537) (2,573) (2,177) (2,48
Slide 36: Non-GAAP Financial Measures Reconciliation
For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 SHOP OM&R SHOP OM&R Total revenues $ 2,959,219 $ 869,708 $ 2,651,886 $ 803,607 Non-GAAP Financial Measures Adjustments: Reconciliation Straight-lining of rental income — (9,642) — (9,499) Full Year 2023 Non-cash rental income
Slide 37: Non-GAAP Financial Measures Reconciliation
For the Three Months Ended December 31, 2023 For the Three Months Ended December 31, 2022 SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total NOI $ 185,430 $ 147,945 $ 151,925 $ 3,801 $ 489,101 $ 152,654 $ 136,731 $ 143,129 $ 25,928 $ 458,442 Non-GAAP Financial Measures Adj
Slide 38: Non-GAAP Financial Measures Reconciliation
For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 SHOP OM&R Triple-Net Non-Segment Total SHOP OM&R Triple-Net Non-Segment Total Non-GAAP NOI $ 711,407 $ 576,932 $ 604,651 $ 32,177 $ 1,925,167 $ 647,466 $ 546,604 $ 582,853 $ 65,717 $ 1,842,640 Financial Measures Adjustments: R
Slide 39: Non-GAAP Financial Measures Reconciliation
For the Year Ended December 31, 2024 SHOP OM&R Triple-Net Non-Segment Total High End Net income attributable to common stockholders $ 47 Non-GAAP Depreciation and amortization4 1,212 Interest expense, G&A, other income and expenses 5 806 Financial Measures NOI $ 847 $ 586 $ 606 $ 26 2,065 Reconcilia
Slide 40: FFO and FAD Reconciliation
Q4 YoY FY YoY For the Three Months Ended Change For the Twelve Months Ended Change December 31, December 31, 2023 2022 ’23-’22 2023 2022 ’23-’22 Net (loss) income attributable to common stockholders $ (90,819) $ (45,019) n/a $ (40,973) $ (47,447) 14% Net (loss) income attributable to common stockhol
Slide 41: Outpatient Medical and Research Same-Store Cash NOI - Trailing 8 Quarters
1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Outpatient 1Q22 1Q21 2Q22 2Q21 3Q22 3Q21 4Q22 4Q21 1Q23 1Q22 2Q23 2Q22 3Q23 3Q22 4Q23 4Q22 Medical and NOI $ 137,974 $ 135,236 $ 136,583 $ 137,320 $ 135,316 $ 137,622 $ 136,731 $ 133,704 $ 136,719 $ 137,974 $ 144,195 $ 136,583 $ 148,073 $ 135,316 $ 147,945 $ 1