附录99.1Ventas, Inc. 353 North Clark Street, Suite 3300 Chicago, Illinois 60654 (877) 4-VENTAS www.ventasreit.com
联络人: BJ Grant
(877) 4-VENTAS
Ventas报告2024年第三季度业绩
芝加哥 – Ventas, Inc.（纽交所：VTR）（「Ventas」或「公司」）今日公布了截至2024年9月30日的第三季度业绩。
CEO 的讲话
「Ventas在执行我们专注的策略方面取得了又一个强劲季度，以把握高龄住房领域空前的多年增长机会为目标，」Ventas主席兼首席执行官Debra A. Cafaro表示。
我们在高龄住宅经营组合中推动了入住率和营业收入的优异表现，并实现了双位数的净运营收益增长，这得到了广泛需求的支持。
今年迄今，我们已经关闭或达成了17亿美元的老人住宅投资。这种不断加速的活动突显了我们在老人住宅中捕捉创造价值机会的能力，并有助于大幅扩大我们在多年老人住宅增长机会中的参与。
咖法罗总结道：“由于我们的势头不减，我们正在更新和改善我们全年的指引。”
2024年第三季度及其他亮点
•归属于普通股股东的净利润（“归属净利润”）每股$0.05
•每股标准基金运营利润（“标准化FFO”）为0.80美元，较去年同期增长约7%
•总公司净营业收入*（NOI）同比增长4.9%，总公司同店现金净收入*同比增长7.6%
•根据同店现金净运营收益（NOI*）来看，高级住宅经营组合（“SHOP”）同比增长15.3％，主要由平均占用率增长350个基点所带动
•到目前为止，该公司已经完成了约14亿美元的高级住宅投资，另外还有30000万美元的高级住宅投资尚在进行中，预计年底前完成交易。
•截至目前为止，该公司根据其在市场股权发行计划发行了1980万股普通股，总收益约为11亿美元，其中340万股可按照未来结算条款进行发行，总收益约为21000万美元。截至目前为止，该公司已完成了超过30000万美元的处置。
•截至2024年9月30日，公司现金🤑亿，包括未担保循环信贷设施下的可用性，以及现金及现金等价物11亿和待未来结算的普通股前销售发行中的2亿
本新闻稿中的部分财务指标属于非通用会计原则（Non-GAAP）指标。请参阅本新闻稿末尾的非通用会计原则财务指标调和表，以获取更多资讯及与最直接相应的通用会计原则（GAAP）指标的调和情况。
Ventas报告2024年第三季度业绩
2024年10月30日
第2页
2024年第三季公司业绩
在2024年第三季，每股收益报告如下：
截至九月三十日的季度 | ||||||||||||||||||||||||||
| 2024 | 2023 | 变化量 $ | 变化百分比 % | |||||||||||||||||||||||
归属于净利润（损失） | $0.05 | ($0.18) | $0.23 | n/m | ||||||||||||||||||||||
| Nareit FFO* | $0.79 | $0.73 | $0.06 | 8% | ||||||||||||||||||||||
| 调整后FFO* | $0.80 | $0.75 | $0.05 | 7% | ||||||||||||||||||||||
______________________________
n/m - 不具有意义
* 本新闻稿中的一些财务指标属非通用会计准则之范畴。有关详细资讯及与最直接可比的通用会计准则之调和，请参阅本新闻稿末尾的非通用会计财务指标调和表。
在老人住房领域实现盈利有机增长
第三季度SHOP同店组合年度平均占用率较去年增加了350个基点。与价格增长结合后，总营业收入增长了8.7%。SHOP同店组合在第三季度交出了超过15%的年度同店现金净营业收入增长。
SHOP Same-Store投资组合第三季平均占用率增长以美国为主，同比增长400个基点。加拿大平均占用率同比增长200个基点，第三季达到历史新高的96.5%。
专注于老年住房的外部增长机会
Ventas截至今年迄今已结束或订立了价值17亿美元的高级住房投资。这些高级住房投资有望产生有吸引力的净收益率，价格低于置换成本，并提供符合公司投资标准的显著多年净收益增长潜力。公司打算继续借势投资，捕捉高资产价值创造机会，并在多年来高级住房增长机会中大幅扩大参与。
财务实力和灵活性
Ventas的长期成功受到其规模、强劲流动性以及多元资本来源的支持。在SHOP有机增长和以股权方式资助的高级住房投资的带动下，至第三季末，净债务-进一步调整后EBITDA* 改善至6.3倍，较2023年年底提高了0.6倍。
企业可持续发展的领导力
Ventas于9月份发布了其2023-2024年度企业可持续发展报告（CSR）。该报告详细说明了公司的环境、社会和治理倡议，以支持业务的增长和成功，并推动其重要使命，帮助一个庞大且迅速增长的老年人口过上更长寿、更健康、更幸福的生活。Ventas持续获得可持续发展领导地位和成就的全球认可，包括自2017年以来在GRESb全球esg房地产评估中作为首位的上市医疗保健房地产投资信托，以及四年连续获得ENERGY STAR®年度能源管理合作伙伴称号，并连续第二年获得荣誉卓越奖。报告可在以下网址获取： www.ventasreit.com/csr2024.
本新闻稿中的部分财务指标属于非通用会计原则（Non-GAAP）指标。请参阅本新闻稿末尾的非通用会计原则财务指标调和表，以获取更多资讯及与最直接相应的通用会计原则（GAAP）指标的调和情况。
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Ventas报告2024年第三季度业绩
2024年10月30日
第3页
2024年全年指引已更新并优化。
公司正在更新和改进全年的指引。 公司的指引包含前瞻性声明，并基于若干假设，包括稍后在本新闻稿中确定的特定假设。 实际结果可能有显著差异。
截至2024年8月1日 | 截至2024年10月30日 | |||||||||||||
| 每股应占可归属净利润区间 | $0.07 - $0.13 | $0.09 - $0.13 | ||||||||||||
| 每股应占可归属净利润中点 | $0.10 | $0.11 | ||||||||||||
| Nareit每股基金运作绩效区间* | $3.02 - $3.08 | $3.04 - $3.08 | ||||||||||||
| Nareit每股基金运作绩效中点* | $3.05 | $3.06 | ||||||||||||
每股基金运作绩效标准化区间* | $3.12 - $3.18 | $3.14 - $3.18 | ||||||||||||
每股基金运作绩效标准化中点* | $3.15 | $3.16 | ||||||||||||
* 本新闻稿中的一些财务指标属非通用会计准则之范畴。有关详细资讯及与最直接可比的通用会计准则之调和，请参阅本新闻稿末尾的非通用会计财务指标调和表。
Investor Presentation
A Third Quarter Earnings Presentation is posted to the Events & Presentations section of Ventas’s website at ir.ventasreit.com/events-and-presentations. Additional information regarding the Company can be found in its Third Quarter 2024 Supplemental posted at ir.ventasreit.com. The information contained on, or that may be accessed through, the Company’s website, including the information contained in the aforementioned Earnings Presentation and Supplemental, is not incorporated by reference into, and is not part of, this document.
Third Quarter 2024 Results Conference Call
Ventas will hold a conference call to discuss this earnings release on Thursday, October 31, 2024 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).
The dial-in number for the conference call is (888) 330-3576 (or +1 (646) 960-0672 for international callers), and the participant passcode is 7655497. A live webcast can be accessed from the Investor Relations section of www.ventasreit.com.
A telephonic replay will be available at (800) 770-2030 (or +1 (609) 800-9909 for international callers), passcode 7655497, after the earnings call and will remain available for 30 days. The webcast replay will be posted in the Investor Relations section of www.ventasreit.com.
About Ventas
Ventas, Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust enabling exceptional environments that benefit a large and growing aging population. With approximately 1,350 properties in North America and the United Kingdom, Ventas occupies an essential role in the longevity economy. The Company’s growth is fueled by its over 800 senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. The Ventas portfolio also includes outpatient medical buildings, research centers and healthcare facilities. The Company aims to deliver outsized performance by leveraging its unmatched operational expertise, data-driven insights from its Ventas OITM platform, extensive relationships and strong financial position. Ventas’s seasoned team of talented professionals shares a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.
Non-GAAP Financial Measures
This press release 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”), such as Nareit FFO, Normalized FFO, Net Operating Income (“NOI”), Same-Store Cash NOI, Same-Store Cash NOI Growth and Net Debt to Further Adjusted EBITDA. Reconciliations of these non-GAAP financial measures to the
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 4
most directly comparable GAAP measures are included in the appendix to this press release. Our definitions and calculations of these non-GAAP measures may not be the same as similar measures reported by other REITs.
These non-GAAP financial measures should not be considered as alternatives for, or superior to, financial measures calculated in accordance with GAAP.
Cautionary Statements
Certain of the information contained herein, including intra-quarter operating information, has been provided by our operators and we have not verified this information through an independent investigation or otherwise. We have no reason to believe that this information is inaccurate in any material respect, but we cannot assure you of its accuracy.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, statements of expectations, beliefs, future plans and strategies, anticipated results from operations and developments and other matters that are not historical facts. Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as “assume,” “may,” “will,” “project,” “expect,” “believe,” “intend,” “anticipate,” “seek,” “target,” “forecast,” “plan,” “potential,” “opportunity,” “estimate,” “could,” “would,” “should” and other comparable and derivative terms or the negatives thereof.
Forward-looking statements are based on management’s beliefs as well as on a number of assumptions concerning future events. You should not put undue reliance on these forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements. We do not undertake a duty to update these forward-looking statements, which speak only as of the date on which they are made. We urge you to carefully review the disclosures we make concerning risks and uncertainties that may affect our business and future financial performance, including those made below and in our filings with the Securities and Exchange Commission, such as in the sections titled “Cautionary Statements — Summary Risk Factors,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 and our subsequent Quarterly Reports on Form 10-Q.
Certain factors that could affect our future results and our ability to achieve our stated goals include, but are not limited to: (a) our ability to achieve the anticipated benefits and synergies from, and effectively integrate, our completed or anticipated acquisitions and investments; (b) our exposure and the exposure of our tenants, managers and borrowers to complex healthcare and other regulations, including evolving laws and regulations regarding data privacy, cybersecurity and environmental matters, and the challenges and expense associated with complying with such regulation; (c) the potential for significant general and commercial claims, legal actions, investigations, regulatory proceedings and enforcement actions that could subject us or our tenants, managers or borrowers to increased operating costs, uninsured liabilities, including fines and other penalties, reputational harm or significant operational limitations, including the loss or suspension of or moratoriums on accreditations, licenses or certificates of need, suspension of or nonpayment for new admissions, denial of reimbursement, suspension, decertification or exclusion from federal, state or foreign healthcare programs or the closure of facilities or communities; (d) our reliance on third-party managers and tenants to operate or exert substantial control over properties they manage for, or rent from, us, which limits our control and influence over such properties, their operations and their performance; (e) the impact of market and general economic conditions on us, our tenants, managers and borrowers and in areas in which our properties are geographically concentrated, including macroeconomic trends and financial market events, such as bank failures and other events affecting financial institutions, market volatility, increases in inflation, changes in or elevated interest and exchange rates, tightening of lending standards and reduced availability of credit or capital, geopolitical conditions, supply chain pressures, rising labor costs and historically low unemployment, events that affect consumer confidence, our occupancy rates and resident fee revenues, and the actual and perceived state of the real estate markets, labor markets and public and private capital markets; (f) our reliance and the reliance of our tenants, managers and borrowers on the financial, credit and capital markets and the risk that those markets may be disrupted or become constrained; (g) our ability, and the ability of our tenants, managers and borrowers, to navigate the trends impacting our or their businesses and the industries in which we or they operate, and the financial condition or business prospect of our tenants, managers
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 5
and borrowers; (h) the risk of bankruptcy, inability to obtain benefits from governmental programs, insolvency or financial deterioration of our tenants, managers, borrowers and other obligors which may, among other things, have an adverse impact on the ability of such parties to make payments or meet their other obligations to us, which could have an adverse impact on our results of operations and financial condition; (i) the risk that the borrowers under our loans or other investments default or that, to the extent we are able to foreclose or otherwise acquire the collateral securing our loans or other investments, we will be required to incur additional expense or indebtedness in connection therewith, that the assets will underperform expectations or that we may not be able to subsequently dispose of all or part of such assets on favorable terms; (j) our current and future amount of outstanding indebtedness, and our ability to access capital and to incur additional debt which is subject to our compliance with covenants in instruments governing our and our subsidiaries’ existing indebtedness; (k) risks related to the recognition of reserves, allowances, credit losses or impairment charges which are inherently uncertain and may increase or decrease in the future and may not represent or reflect the ultimate value of, or loss that we ultimately realize with respect to, the relevant assets, which could have an adverse impact on our results of operations and financial condition; (l) the risk that our leases or management agreements are not renewed or are renewed on less favorable terms, that our tenants or managers default under those agreements or that we are unable to replace tenants or managers on a timely basis or on favorable terms, if at all; (m) our ability to identify and consummate future investments in, or dispositions of, healthcare assets and effectively manage our portfolio opportunities and our investments in co-investment vehicles, joint ventures and minority interests, including our ability to dispose of such assets on favorable terms as a result of rights of first offer or rights of first refusal in favor of third parties; (n) risks related to development, redevelopment and construction projects, including costs associated with inflation, rising or elevated interest rates, labor conditions and supply chain pressures, and risks related to increased construction and development in markets in which our properties are located, including adverse effect on our future occupancy rates; (o) our ability to attract and retain talented employees; (p) the limitations and significant requirements imposed upon our business as a result of our status as a REIT and the adverse consequences (including the possible loss of our status as a REIT) that would result if we are not able to comply with such requirements; (q) the ownership limits contained in our certificate of incorporation with respect to our capital stock in order to preserve our qualification as a REIT, which may delay, defer or prevent a change of control of our company; (r) the risk of changes in healthcare law or regulation or in tax laws, guidance and interpretations, particularly as applied to REITs, that could adversely affect us or our tenants, managers or borrowers; (s) increases in our borrowing costs as a result of becoming more leveraged, including in connection with acquisitions or other investment activity and rising or elevated interest rates; (t) our exposure to various operational risks, liabilities and claims from our operating assets; (u) our dependency on a limited number of tenants and managers for a significant portion of our revenues and operating income; (v) our exposure to particular risks due to our specific asset classes and operating markets, such as adverse changes affecting our specific asset classes and the real estate industry, the competitiveness or financial viability of hospitals on or near the campuses where our outpatient medical buildings are located, our relationships with universities, the level of expense and uncertainty of our research tenants, and the limitation of our uses of some properties we own that are subject to ground lease, air rights or other restrictive agreements; (w) the risk of damage to our reputation; (x) the availability, adequacy and pricing of insurance coverage provided by our policies and policies maintained by our tenants, managers or other counterparties; (y) the risk of exposure to unknown liabilities from our investments in properties or businesses; (z) the occurrence of cybersecurity threats and incidents that could disrupt our or our tenants’, managers’ or borrower’s operations, result in the loss of confidential or personal information or damage our business relationships and reputation; (aa) the failure to maintain effective internal controls, which could harm our business, results of operations and financial condition; (bb) the impact of merger, acquisition and investment activity in the healthcare industry or otherwise affecting our tenants, managers or borrowers; (cc) disruptions to the management and operations of our business and the uncertainties caused by activist investors; (dd) the risk of catastrophic or extreme weather and other natural events and the physical effects of climate change; (ee) the risk of potential dilution resulting from future sales or issuances of our equity securities; and (ff) the other factors set forth in our periodic filings with the Securities and Exchange Commission.
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
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| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In thousands, except per share amounts; dollars in USD; unaudited) | |||||||||||
| As of September 30, 2024 | As of December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Real estate investments: | |||||||||||
| Land and improvements | $ | 2,638,649 | $ | 2,596,274 | |||||||
| Buildings and improvements | 27,626,929 | 27,201,381 | |||||||||
| Construction in progress | 362,189 | 368,143 | |||||||||
| Acquired lease intangibles | 1,460,883 | 1,448,146 | |||||||||
| Operating lease assets | 309,765 | 312,142 | |||||||||
| 32,398,415 | 31,926,086 | ||||||||||
| Accumulated depreciation and amortization | (10,888,157) | (10,177,136) | |||||||||
| Net real estate property | 21,510,258 | 21,748,950 | |||||||||
| Secured loans receivable and investments, net | 144,797 | 27,986 | |||||||||
| Investments in unconsolidated real estate entities | 622,996 | 598,206 | |||||||||
| Net real estate investments | 22,278,051 | 22,375,142 | |||||||||
| Cash and cash equivalents | 1,104,733 | 508,794 | |||||||||
| Escrow deposits and restricted cash | 60,964 | 54,668 | |||||||||
| Goodwill | 1,045,955 | 1,045,176 | |||||||||
| Assets held for sale | 50,637 | 56,489 | |||||||||
| Deferred income tax assets, net | 3,495 | 1,754 | |||||||||
| Other assets | 803,354 | 683,410 | |||||||||
| Total assets | $ | 25,347,189 | $ | 24,725,433 | |||||||
| Liabilities and equity | |||||||||||
| Liabilities: | |||||||||||
| Senior notes payable and other debt | $ | 13,668,871 | $ | 13,490,896 | |||||||
| Accrued interest | 113,753 | 117,403 | |||||||||
| Operating lease liabilities | 215,440 | 194,734 | |||||||||
| Accounts payable and other liabilities | 1,148,752 | 1,041,616 | |||||||||
| Liabilities related to assets held for sale | 5,252 | 9,243 | |||||||||
| Deferred income tax liabilities | 36,755 | 24,500 | |||||||||
| Total liabilities | 15,188,823 | 14,878,392 | |||||||||
| Redeemable OP unitholder and noncontrolling interests | 329,688 | 302,636 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Ventas stockholders’ equity: | |||||||||||
| Preferred stock, $1.00 par value; 10,000 shares authorized, unissued | — | — | |||||||||
| Common stock, $0.25 par value; 600,000 shares authorized, 419,267 and 402,380 shares outstanding at September 30, 2024 and December 31, 2023, respectively | 104,723 | 100,648 | |||||||||
| Capital in excess of par value | 16,466,182 | 15,650,734 | |||||||||
| Accumulated other comprehensive loss | (38,472) | (35,757) | |||||||||
| Retained earnings (deficit) | (6,748,224) | (6,213,803) | |||||||||
| Treasury stock, 3 and 279 shares issued at September 30, 2024 and December 31, 2023, respectively | (25,115) | (13,764) | |||||||||
| Total Ventas stockholders’ equity | 9,759,094 | 9,488,058 | |||||||||
| Noncontrolling interests | 69,584 | 56,347 | |||||||||
| Total equity | 9,828,678 | 9,544,405 | |||||||||
| Total liabilities and equity | $ | 25,347,189 | $ | 24,725,433 | |||||||
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
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| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||
| (In thousands, except per share amounts; dollars in USD; unaudited) | |||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Rental income: | |||||||||||||||||||||||
| Triple-net leased properties | $ | 155,349 | $ | 159,812 | $ | 464,651 | $ | 463,906 | |||||||||||||||
| Outpatient medical and research portfolio | 220,957 | 226,326 | 658,687 | 645,137 | |||||||||||||||||||
| 376,306 | 386,138 | 1,123,338 | 1,109,043 | ||||||||||||||||||||
| Resident fees and services | 845,532 | 754,417 | 2,476,436 | 2,184,024 | |||||||||||||||||||
| Third party capital management revenues | 4,392 | 5,315 | 13,020 | 13,488 | |||||||||||||||||||
| Income from loans and investments | 1,881 | 1,208 | 4,606 | 21,351 | |||||||||||||||||||
| Interest and other income | 8,204 | 2,754 | 19,809 | 5,529 | |||||||||||||||||||
| Total revenues | 1,236,315 | 1,149,832 | 3,637,209 | 3,333,435 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Interest | 150,437 | 147,919 | 449,629 | 419,259 | |||||||||||||||||||
| Depreciation and amortization | 304,268 | 370,377 | 944,371 | 957,185 | |||||||||||||||||||
| Property-level operating expenses: | |||||||||||||||||||||||
| Senior housing | 631,550 | 573,715 | 1,844,730 | 1,658,047 | |||||||||||||||||||
| Outpatient medical and research portfolio | 77,479 | 78,915 | 224,703 | 217,999 | |||||||||||||||||||
| Triple-net leased properties | 4,379 | 3,847 | 11,623 | 11,180 | |||||||||||||||||||
| 713,408 | 656,477 | 2,081,056 | 1,887,226 | ||||||||||||||||||||
| Third party capital management expenses | 1,553 | 1,472 | 4,956 | 4,614 | |||||||||||||||||||
| General, administrative and professional fees | 35,092 | 33,297 | 121,556 | 112,494 | |||||||||||||||||||
| Loss (gain) on extinguishment of debt, net | — | 612 | 672 | (6,189) | |||||||||||||||||||
| Transaction, transition and restructuring costs | 8,580 | 7,125 | 16,143 | 11,580 | |||||||||||||||||||
| Recovery of allowance on loans receivable and investments, net | (56) | (66) | (166) | (20,195) | |||||||||||||||||||
| Gain on foreclosure of real estate | — | — | — | (29,127) | |||||||||||||||||||
| Shareholder relations matters | — | — | 15,751 | — | |||||||||||||||||||
| Other expense (income) | 3,935 | 9,432 | 10,729 | (765) | |||||||||||||||||||
| Total expenses | 1,217,217 | 1,226,645 | 3,644,697 | 3,336,082 | |||||||||||||||||||
| Income (loss) before unconsolidated entities, real estate dispositions, income taxes and noncontrolling interests | 19,098 | (76,813) | (7,488) | (2,647) | |||||||||||||||||||
| Income (loss) from unconsolidated entities | 4,629 | (5,119) | (5,406) | 20,512 | |||||||||||||||||||
| Gain on real estate dispositions | 271 | 10,711 | 50,282 | 22,317 | |||||||||||||||||||
| Income tax (expense) benefit | (3,002) | 1,662 | (7,764) | 14,237 | |||||||||||||||||||
| Net income (loss) | 20,996 | (69,559) | 29,624 | 54,419 | |||||||||||||||||||
| Net income attributable to noncontrolling interests | 1,753 | 1,565 | 5,306 | 4,573 | |||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 19,243 | $ | (71,124) | $ | 24,318 | $ | 49,846 | |||||||||||||||
| Earnings per common share | |||||||||||||||||||||||
| Basic: | |||||||||||||||||||||||
| Net income (loss) | $ | 0.05 | $ | (0.17) | $ | 0.07 | $ | 0.14 | |||||||||||||||
| Net income (loss) attributable to common stockholders | 0.05 | (0.18) | 0.06 | 0.12 | |||||||||||||||||||
Diluted:1 | |||||||||||||||||||||||
| Net income (loss) | $ | 0.05 | $ | (0.17) | $ | 0.07 | $ | 0.13 | |||||||||||||||
| Net income (loss) attributable to common stockholders | 0.05 | (0.18) | 0.06 | 0.12 | |||||||||||||||||||
| Weighted average shares used in computing earnings per common share | |||||||||||||||||||||||
| Basic | 414,599 | 402,859 | 408,691 | 401,424 | |||||||||||||||||||
| Diluted | 419,474 | 406,655 | 412,785 | 405,166 | |||||||||||||||||||
1 Potential common shares are not included in the computation of diluted earnings per share (“EPS”) when a net loss exists as the effect would be an antidilutive per share amount.
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 8
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Funds From Operations Attributable to Common Stockholders (FFO)
(In thousands, except per share amounts; dollars in USD; totals may not sum due to rounding; unaudited)
Q3 YoY | |||||||||||||||||
| 2024 | 2023 | Change | |||||||||||||||
| Q3 | Q3 | ’24-’23 | |||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 19,243 | $ | (71,124) | n/m | ||||||||||||
Net income (loss) attributable to common stockholders per share1 | $ | 0.05 | $ | (0.18) | n/m | ||||||||||||
| Adjustments: | |||||||||||||||||
| Depreciation and amortization on real estate assets | 303,599 | 369,781 | |||||||||||||||
| Depreciation on real estate assets related to noncontrolling interests | (3,942) | (4,045) | |||||||||||||||
| Depreciation on real estate assets related to unconsolidated entities | 12,890 | 11,057 | |||||||||||||||
| Gain on real estate dispositions | (271) | (10,711) | |||||||||||||||
Gain on real estate dispositions related to noncontrolling interests | — | 2 | |||||||||||||||
| Gain on real estate dispositions and other related to unconsolidated entities | (34) | — | |||||||||||||||
| Subtotal: Nareit FFO adjustments | 312,242 | 366,084 | |||||||||||||||
| Subtotal: Nareit FFO adjustments per share | $ | 0.74 | $ | 0.90 | |||||||||||||
| Nareit FFO attributable to common stockholders | $ | 331,485 | $ | 294,960 | 12% | ||||||||||||
| Nareit FFO attributable to common stockholders per share | $ | 0.79 | $ | 0.73 | 8% | ||||||||||||
| Adjustments: | |||||||||||||||||
Loss on derivatives, net | 1,489 | 5,533 | |||||||||||||||
Non-cash income tax expense (benefit) | 1,157 | (3,417) | |||||||||||||||
Loss on extinguishment of debt, net | — | 612 | |||||||||||||||
| Transaction, transition and restructuring costs | 8,580 | 7,125 | |||||||||||||||
| Amortization of other intangibles | 96 | 96 | |||||||||||||||
| Non-cash impact of changes to equity plan | (2,599) | (2,194) | |||||||||||||||
| Significant disruptive events, net | 2,104 | (872) | |||||||||||||||
| Recovery of allowance on loans receivable and investments, net | (56) | (66) | |||||||||||||||
| Normalizing items related to noncontrolling interests and unconsolidated entities, net | (7,737) | 2,778 | |||||||||||||||
| Subtotal: Normalized FFO adjustments | 3,034 | 9,595 | |||||||||||||||
| Subtotal: Normalized FFO adjustments per share | $ | 0.01 | $ | 0.02 | |||||||||||||
| Normalized FFO attributable to common stockholders | $ | 334,519 | $ | 304,555 | 10% | ||||||||||||
| Normalized FFO attributable to common stockholders per share | $ | 0.80 | $ | 0.75 | 7% | ||||||||||||
| Weighted average diluted shares | 419,474 | 406,655 | |||||||||||||||
______________________________ n/m - Not meaningful | |||||||||||||||||
1 Potential common shares are not included in the computation of diluted earnings per share when a net loss exists as the effect would be an antidilutive per share amount. | |||||||||||||||||
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 9
Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values historically have risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers Nareit FFO and Normalized FFO to be appropriate supplemental measures of operating performance of an equity REIT. The Company believes that the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers Nareit FFO to be a useful measure for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses on depreciable real estate and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), Nareit FFO can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies. The Company believes that Normalized FFO is useful because it allows investors, analysts and Company management to compare the Company’s operating performance to the operating performance of other real estate companies across periods on a consistent basis without having to account for differences caused by non-recurring items and other non-operational events such as transactions and litigation. In some cases, the Company provides information about identified non-cash components of Nareit FFO and Normalized FFO because it allows investors, analysts and Company management to assess the impact of those items on the Company’s financial results.
Nareit Funds From Operations Attributable to Common Stockholders (“Nareit FFO”)
The Company uses the National Association of Real Estate Investment Trusts (“Nareit”) definition of FFO. Nareit defines FFO as net income attributable to common stockholders (computed in accordance with GAAP) excluding gains (or losses) from sales of real estate property, including gain (or loss) on re-measurement of equity method investments and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests. Adjustments for unconsolidated entities and noncontrolling interests will be calculated to reflect FFO on the same basis.
Normalized FFO
The Company defines Normalized FFO as Nareit FFO excluding the following income and expense items, without duplication: (a) transaction, transition and restructuring costs; (b) amortization of other intangibles; (c) the impact of expenses related to asset impairment and valuation allowances; (d) the write-off of unamortized deferred financing fees or additional costs, expenses, discounts, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of the Company’s debt; (e) the non-cash impact of income tax benefits or expenses; (f) the non-cash impact of changes to the Company’s executive equity compensation plan; (g) non-cash charges related to leases; (h) the financial impact of contingent consideration; (i) gains and losses on derivatives and changes in the fair value of financial instruments; (j) gains and losses on non-real estate dispositions and other normalizing items related to noncontrolling interests and unconsolidated entities; (k) net expenses or recoveries related to significant disruptive events; and (l) other items set forth in the Normalized FFO reconciliation included herein.
Nareit FFO and Normalized FFO presented herein may not be comparable to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. Nareit FFO and Normalized FFO should not be considered as alternatives to net income attributable to common stockholders (determined in accordance with GAAP) as indicators of the Company’s financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, Nareit FFO and Normalized FFO should be examined in conjunction with net income attributable to common stockholders as presented elsewhere herein.
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 10
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Full Year 2024 Guidance as of October 30, 20241
Net Income and FFO Attributable to Common Stockholders2
(In millions, except per share amounts; dollars in USD; totals may not sum due to rounding; unaudited)
| FY 2024 | FY 2024 - Per Share | |||||||||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||||||||
| Net income attributable to common stockholders | $36 | $53 | $0.09 | $0.13 | ||||||||||||||||||||||
| Depreciation and amortization adjustments | 1,280 | 1,280 | 3.07 | 3.07 | ||||||||||||||||||||||
Gain on real estate dispositions | (50) | (50) | (0.12) | (0.12) | ||||||||||||||||||||||
| Nareit FFO attributable to common stockholders | $1,266 | $1,283 | $3.04 | $3.08 | ||||||||||||||||||||||
Other adjustments3 | 43 | 43 | 0.10 | 0.10 | ||||||||||||||||||||||
| Normalized FFO attributable to common stockholders | $1,309 | $1,326 | $3.14 | $3.18 | ||||||||||||||||||||||
| % Year-over-year growth | 5% | 6% | ||||||||||||||||||||||||
| Weighted average diluted shares (in millions) | 417 | 417 | ||||||||||||||||||||||||
1 The Company’s guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. Actual results may differ materially from the Company’s expectations depending on factors discussed herein and in the Company’s filings with the Securities and Exchange Commission.
2 Totals may not add due to minor corporate-level adjustments.
3 Other adjustments include the categories of adjustments presented in our “Non-GAAP Financial Measures Reconciliation – Funds From Operations Attributable to Common Stockholders (FFO)”.
Select Guidance Assumptions:
1.Expect to close $1.7 billion of senior housing investments, with $1.4 billion closed year to date
2.Expect to dispose of assets for $330 million in net proceeds
3.FAD capital expenditures of ~$250 million
4.General and administrative expenses expected to range from $155 million to $160 million
5.Interest expense expected to range from $605 million to $609 million
6.The $9 million gain recognized in the third quarter arising from the Ardent IPO in July 2024 and the year to date impacts of $14 million in net cash proceeds from the exercise and sale of Brookdale warrants are included in Net Income and Nareit FFO and not included in Normalized FFO
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 11
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Full Year 2024 Guidance as of August 1, 20241
Net Income and FFO Attributable to Common Stockholders2
(In millions, except per share amounts; dollars in USD; totals may not sum due to rounding; unaudited)
| FY 2024 | FY 2024 - Per Share | |||||||||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||||||||
| Net income attributable to common stockholders | $31 | $56 | $0.07 | $0.13 | ||||||||||||||||||||||
| Depreciation and amortization adjustments | 1,272 | 1,272 | 3.07 | 3.07 | ||||||||||||||||||||||
Gain on real estate dispositions | (50) | (50) | (0.12) | (0.12) | ||||||||||||||||||||||
| Nareit FFO attributable to common stockholders | $1,253 | $1,278 | $3.02 | $3.08 | ||||||||||||||||||||||
Other adjustments3 | 40 | 40 | 0.10 | 0.10 | ||||||||||||||||||||||
| Normalized FFO attributable to common stockholders | $1,294 | $1,318 | $3.12 | $3.18 | ||||||||||||||||||||||
| % Year-over-year growth | 4% | 6% | ||||||||||||||||||||||||
| Weighted average diluted shares (in millions) | 415 | 415 | ||||||||||||||||||||||||
1 The Company’s guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. Actual results may differ materially from the Company’s expectations depending on factors discussed herein and in the Company’s filings with the Securities and Exchange Commission.
2 Totals may not add due to minor corporate-level adjustments.
3 Other adjustments include the categories of adjustments presented in our “Non-GAAP Financial Measures Reconciliation – Funds From Operations Attributable to Common Stockholders (FFO)”.
Select Guidance Assumptions:
1.Close ~$750 million of investments focused on senior housing, all equity funded (no further investment activity assumed)
2.Dispose of assets for $300 million in net proceeds
3.FAD capital expenditures of ~$250 million
4.General and administrative expenses expected to range from $155 million to $160 million
5.Interest expense expected to range from $603 million to $611 million
6.2024 Guidance midpoint includes ~($0.015) per share non-cash GAAP impact on Normalized FFO from straight-lining upon potential Kindred lease resolution
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 12
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Third Quarter 2024 Same-Store Cash NOI by Segment
(In thousands, unless otherwise noted; dollars in USD; totals may not sum due to rounding; unaudited)
| For the Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| SHOP | Outpatient Medical and Research Portfolio | Triple-Net Leased Properties | Non-Segment | Total | ||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 19,243 | ||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Interest and other income | (8,204) | |||||||||||||||||||||||||||||||
| Interest expense | 150,437 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 304,268 | |||||||||||||||||||||||||||||||
| General, administrative and professional fees | 35,092 | |||||||||||||||||||||||||||||||
| Transaction, transition and restructuring costs | 8,580 | |||||||||||||||||||||||||||||||
| Recovery of allowance on loans receivable and investments, net | (56) | |||||||||||||||||||||||||||||||
| Other expense | 3,935 | |||||||||||||||||||||||||||||||
| Income from unconsolidated entities | (4,629) | |||||||||||||||||||||||||||||||
| Gain on real estate dispositions | (271) | |||||||||||||||||||||||||||||||
| Income tax expense | 3,002 | |||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 1,753 | |||||||||||||||||||||||||||||||
| NOI | $ | 213,982 | $ | 144,096 | $ | 150,970 | $ | 4,102 | $ | 513,150 | ||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Straight-lining of rental income | — | (2,394) | 1,276 | — | (1,118) | |||||||||||||||||||||||||||
| Non-cash rental income | — | (1,935) | (11,841) | — | (13,776) | |||||||||||||||||||||||||||
NOI not included in cash NOI1 | 514 | (167) | (194) | — | 153 | |||||||||||||||||||||||||||
| Non-segment NOI | — | — | — | (4,102) | (4,102) | |||||||||||||||||||||||||||
| Cash NOI | $ | 214,496 | $ | 139,600 | $ | 140,211 | $ | — | $ | 494,307 | ||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Cash NOI not included in Same-Store | (20,872) | (5,440) | (6,702) | — | (33,014) | |||||||||||||||||||||||||||
Same-Store Cash NOI | $ | 193,624 | $ | 134,160 | $ | 133,509 | $ | — | $ | 461,293 | ||||||||||||||||||||||
Percentage increase | 15.3 | % | 2.1 | % | 3.2 | % | 7.6 | % | ||||||||||||||||||||||||
1 Includes consolidated properties. Excludes sold assets, assets owned by unconsolidated real estate entities, assets held for sale, loan repayments, development properties not yet operational, land parcels and third-party management revenues from all periods. Assets that have undergone business model transitions are reflected within the new business segment as of the transition date.
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 13
| For the Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
| SHOP | Outpatient Medical and Research Portfolio | Triple-Net Leased Properties | Non-Segment | Total | ||||||||||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (71,124) | ||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Interest and other income | (2,754) | |||||||||||||||||||||||||||||||
| Interest expense | 147,919 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 370,377 | |||||||||||||||||||||||||||||||
| General, administrative and professional fees | 33,297 | |||||||||||||||||||||||||||||||
| Loss on extinguishment of debt, net | 612 | |||||||||||||||||||||||||||||||
| Transaction, transition and restructuring costs | 7,125 | |||||||||||||||||||||||||||||||
| Recovery of allowance on loans receivable and investments, net | (66) | |||||||||||||||||||||||||||||||
| Other expense | 9,432 | |||||||||||||||||||||||||||||||
| Loss from unconsolidated entities | 5,119 | |||||||||||||||||||||||||||||||
| Gain on real estate dispositions | (10,711) | |||||||||||||||||||||||||||||||
| Income tax benefit | (1,662) | |||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 1,565 | |||||||||||||||||||||||||||||||
| NOI | $ | 180,702 | $ | 148,073 | $ | 155,965 | $ | 4,389 | $ | 489,129 | ||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Straight-lining of rental income | — | (2,350) | (191) | — | (2,541) | |||||||||||||||||||||||||||
| Non-cash rental income | — | (2,484) | (12,464) | — | (14,948) | |||||||||||||||||||||||||||
NOI not included in cash NOI1 | 1,908 | (5,481) | (8,073) | — | (11,646) | |||||||||||||||||||||||||||
| Non-segment NOI | — | — | — | (4,389) | (4,389) | |||||||||||||||||||||||||||
| NOI impact from change in FX | (780) | — | 190 | — | (590) | |||||||||||||||||||||||||||
| Cash NOI | $ | 181,830 | $ | 137,758 | $ | 135,427 | $ | — | $ | 455,015 | ||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Cash NOI not included in Same-Store | (13,971) | (6,389) | (6,029) | — | (26,389) | |||||||||||||||||||||||||||
| NOI impact from change in FX not in Same-Store | 5 | — | — | — | 5 | |||||||||||||||||||||||||||
Same-Store Cash NOI | $ | 167,864 | $ | 131,369 | $ | 129,398 | $ | — | $ | 428,631 | ||||||||||||||||||||||
1 Includes consolidated properties. Excludes sold assets, assets owned by unconsolidated real estate entities, assets held for sale, loan repayments, development properties not yet operational, land parcels and third-party management revenues from all periods. Assets that have undergone business model transitions are reflected within the new business segment as of the transition date.
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 14
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Adjusted EBITDA and Net Debt
(Dollars in thousands USD; totals may not sum due to rounding; unaudited)
| For the Three Months Ended | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | December 31, 2023 | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 19,243 | $ | 19,387 | $ | (90,819) | ||||||||||||||
| Adjustments: | ||||||||||||||||||||
| Interest expense | 150,437 | 149,259 | 154,853 | |||||||||||||||||
| Loss on extinguishment of debt, net | — | 420 | 85 | |||||||||||||||||
| Taxes (including tax amounts in general, administrative and professional fees) | 3,324 | 9,214 | 5,743 | |||||||||||||||||
| Depreciation and amortization | 304,268 | 339,848 | 435,276 | |||||||||||||||||
| Non-cash stock-based compensation expense | 4,268 | 5,791 | 5,690 | |||||||||||||||||
| Transaction, transition and restructuring costs | 8,580 | 2,886 | 3,635 | |||||||||||||||||
| Shareholder relations matters | — | 37 | — | |||||||||||||||||
| Net income attributable to noncontrolling interests, adjusted for partners’ share of consolidated entity EBITDA | (7,268) | (7,014) | (3,491) | |||||||||||||||||
| Loss from unconsolidated entities, adjusted for Ventas’ share of EBITDA from unconsolidated entities | 21,178 | 29,038 | 30,539 | |||||||||||||||||
| Gain on real estate dispositions | (271) | (49,670) | (39,802) | |||||||||||||||||
Unrealized foreign currency (gain) loss | (3,687) | 33 | (320) | |||||||||||||||||
Loss (gain) on derivatives, net | 1,489 | 1,401 | (24,375) | |||||||||||||||||
| Significant disruptive events, net | 2,104 | 2,363 | (1,901) | |||||||||||||||||
| Recovery of allowance on loan investments and impairment of unconsolidated entities, net of noncontrolling interest | (56) | (39) | (73) | |||||||||||||||||
Other normalizing items 1 | — | 302 | 2,750 | |||||||||||||||||
| Adjusted EBITDA | $ | 503,609 | $ | 503,256 | $ | 477,790 | ||||||||||||||
| Adjustment for current period activity | 4,888 | (375) | 1,035 | |||||||||||||||||
| Further Adjusted EBITDA | $ | 508,497 | $ | 502,881 | $ | 478,825 | ||||||||||||||
| Further Adjusted EBITDA annualized | $ | 2,033,988 | $ | 2,011,524 | $ | 1,915,300 | ||||||||||||||
| Total debt | $ | 13,668,871 | $ | 13,175,077 | $ | 13,490,896 | ||||||||||||||
| Cash and cash equivalents | (1,104,733) | (557,082) | (508,794) | |||||||||||||||||
| Restricted cash pertaining to debt | (32,892) | (31,461) | (29,019) | |||||||||||||||||
| Partners’ share of consolidated debt | (311,685) | (302,231) | (297,480) | |||||||||||||||||
| Ventas’ share of unconsolidated debt | 650,166 | 637,504 | 575,329 | |||||||||||||||||
| Net debt | $ | 12,869,727 | $ | 12,921,807 | $ | 13,230,932 | ||||||||||||||
| Net Debt / Further Adjusted EBITDA | 6.3 | x | 6.4 | x | 6.9 | x | ||||||||||||||
1 Includes adjustments for unusual items, including approximately $0.3 million and $2.8 million for the three months ended June 30, 2024 and December 31, 2023, respectively, primarily related to the settlement by one of our operators of class action litigation in our SHOP segment.
The Company believes that Net debt and Further Adjusted EBITDA are useful to investors, analysts and Company management because they allow the comparison of the Company’s credit strength between periods and to other real estate companies without the effect of items that by their nature are not comparable from period to period.
Adjusted EBITDA
The Company defines Adjusted EBITDA as consolidated earnings before interest, taxes, depreciation and amortization (including non-cash stock-based compensation expense, asset impairment and valuation allowances), excluding (a) gains or losses on extinguishment of debt; (b) noncontrolling interests’ share of adjusted EBITDA; (c)
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 15
transaction, transition and restructuring costs; (d) net gains or losses on real estate activity; (e) gains or losses on re-measurement of equity interest upon acquisition; (f) gains or losses on derivatives and changes in the fair value of financial instruments; (g) unrealized foreign currency gains or losses; (h) net expenses or recoveries related to significant disruptive events; and (i) non-cash charges related to leases, and including (x) Ventas’ share of adjusted EBITDA from unconsolidated entities and (y) the impact of other items set forth in the Adjusted EBITDA reconciliation included herein.
Further Adjusted EBITDA
Further Adjusted EBITDA is Adjusted EBITDA further adjusted for transactions and events that were completed during the period, as if the transaction or event had been consummated at the beginning of the relevant period and considers any other incremental items set forth in the Further Adjusted EBITDA reconciliation included herein.
The Company considers NOI and Cash NOI as important supplemental measures because they allow investors, analysts and the Company’s management to assess its unlevered property-level operating results and to compare its operating results with those of other real estate companies and between periods on a consistent basis.
NOI
The Company defines NOI as total revenues, less interest and other income, property-level operating expenses and third party capital management expenses.
Cash NOI
The Company defines Cash NOI as NOI for its reportable business segments (i.e., SHOP, outpatient medical and research portfolio and triple-net leased properties), determined on a Constant Currency basis, excluding the impact of, without duplication (i) non-cash items such as straight-line rent and the amortization of lease intangibles, (ii) sold assets, assets held for sale, development properties not yet operational and land parcels and (iii) other items set forth in the Cash NOI reconciliation included herein. In certain cases, results may be adjusted to reflect the receipt of cash payments, fees, and other consideration that is not fully recognized as NOI in the period.
Same-Store
The Company defines Same-Store as properties owned, consolidated and operational for the full period in both comparison periods and that are not otherwise excluded; provided, however, that the Company may include selected properties that otherwise meet the Same-Store criteria if they are included in substantially all of, but not a full, period for one or both of the comparison periods, and in the Company’s judgment such inclusion provides a more meaningful presentation of its segment performance. Newly acquired development properties and recently developed or redeveloped properties in the Company’s SHOP reportable business segment will be included in Same-Store once they are stabilized for the full period in both periods presented. These properties are considered stabilized upon the earlier of (a) the achievement of 80% sustained occupancy or (b) 24 months from the date of acquisition or substantial completion of work. Recently developed or redeveloped properties in the outpatient medical and research portfolio and triple-net leased properties reportable business segments will be included in Same-Store once substantial completion of work has occurred for the full period in both periods presented. Senior housing operating portfolio and triple-net leased properties that have undergone operator or business model transitions will be included in Same-Store once operating under consistent operating structures for the full period in both periods presented.
Properties are excluded from Same-Store if they are: (i) sold, classified as held for sale or properties whose operations were classified as discontinued operations in accordance with GAAP; (ii) impacted by significant disruptive events such as flood or fire; (iii) for SHOP, those properties that are currently undergoing a significant disruptive redevelopment; (iv) for the outpatient medical and research portfolio and triple-net leased properties reportable business segments, those properties for which management has an intention to institute, or has instituted, a redevelopment plan because the properties may require major property-level expenditures to maximize value, increase NOI, or maintain a market-competitive position and/or achieve property stabilization, most commonly as the result of an expected or actual material change in occupancy or NOI; or (v) for SHOP and triple-net leased properties reportable business segments, those properties that are scheduled to undergo operator or business model transitions, or have transitioned operators or business models after the start of the prior comparison period.
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Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 16
Constant Currency
To eliminate the impact of exchange rate movements, all portfolio performance-based disclosures assume constant exchange rates across comparable periods, using the following methodology: the current period’s results are shown in actual reported USD, while prior comparison period’s results are adjusted and converted to USD based on the average exchange rate for the current period.
Contacts
BJ Grant
(877) 4-VENTAS
Source: Ventas, Inc.
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