附錄99.1Ventas, Inc. 353 North Clark Street, Suite 3300 Chicago, Illinois 60654 (877) 4-VENTAS www.ventasreit.com
聯絡人: BJ Grant
(877) 4-VENTAS
Ventas報告2024年第三季度業績
芝加哥 – Ventas, Inc.（紐交所：VTR）（「Ventas」或「公司」）今日公佈了截至2024年9月30日的第三季度業績。
CEO 的講話
「Ventas在執行我們專注的策略方面取得了又一個強勁季度，以把握高齡住房領域空前的多年增長機會為目標，」Ventas主席兼首席執行官Debra A. Cafaro表示。
我們在高齡住宅經營組合中推動了入住率和營業收入的優異表現，並實現了雙位數的淨運營收益增長，這得到了廣泛需求的支持。
今年迄今，我們已經關閉或達成了17億美元的老人住宅投資。這種不斷加速的活動突顯了我們在老人住宅中捕捉創造價值機會的能力，並有助於大幅擴大我們在多年老人住宅增長機會中的參與。
咖法羅總結道：“由於我們的勢頭不減，我們正在更新和改善我們全年的指引。”
2024年第三季度及其他亮點
•歸屬於普通股股東的淨利潤（“歸屬淨利潤”）每股$0.05
•每股標準基金運營利潤（“標準化FFO”）為0.80美元，較去年同期增長約7%
•總公司淨營業收入*（NOI）同比增長4.9%，總公司同店現金淨收入*同比增長7.6%
•根據同店現金淨運營收益（NOI*）來看，高級住宅經營組合（“SHOP”）同比增長15.3％，主要由平均佔用率增长350個基點所帶動
•到目前為止，該公司已經完成了約14億美元的高級住宅投資，另外還有30000萬美元的高級住宅投資尚在進行中，預計年底前完成交易。
•截至目前為止，該公司根據其在市場股權發行計劃發行了1980萬股普通股，總收益約為11億美元，其中340萬股可按照未來結算條款進行發行，總收益約為21000萬美元。截至目前為止，該公司已完成了超過30000萬美元的處置。
•截至2024年9月30日，公司現金🤑億，包括未擔保循環信貸設施下的可用性，以及現金及現金等價物11億和待未來結算的普通股前銷售發行中的2億
本新聞稿中的部分財務指標屬於非通用會計原則（Non-GAAP）指標。請參閱本新聞稿末尾的非通用會計原則財務指標調和表，以獲取更多資訊及與最直接相應的通用會計原則（GAAP）指標的調和情況。
Ventas報告2024年第三季度業績
2024年10月30日
第2頁
2024年第三季公司業績
在2024年第三季，每股收益報告如下：
截至九月三十日的季度 | ||||||||||||||||||||||||||
| 2024 | 2023 | 變化量 $ | 變化百分比 % | |||||||||||||||||||||||
歸屬於凈利潤（損失） | $0.05 | ($0.18) | $0.23 | n/m | ||||||||||||||||||||||
| Nareit FFO* | $0.79 | $0.73 | $0.06 | 8% | ||||||||||||||||||||||
| 調整後FFO* | $0.80 | $0.75 | $0.05 | 7% | ||||||||||||||||||||||
______________________________
n/m - 不具有意義
* 本新聞稿中的一些財務指標屬非通用會計準則之範疇。有關詳細資訊及與最直接可比的通用會計準則之調和，請參閱本新聞稿末尾的非通用會計財務指標調和表。
在老人住房領域實現盈利有機增長
第三季度SHOP同店組合年度平均佔用率較去年增加了350個基點。與價格增長結合後，總營業收入增長了8.7%。SHOP同店組合在第三季度交出了超過15%的年度同店現金凈營業收入增長。
SHOP Same-Store投資組合第三季平均佔用率增長以美國為主，同比增長400個基點。加拿大平均佔用率同比增長200個基點，第三季達到歷史新高的96.5%。
專注於老年住房的外部增長機會
Ventas截至今年迄今已結束或訂立了價值17億美元的高級住房投資。這些高級住房投資有望產生有吸引力的淨收益率，價格低於置換成本，並提供符合公司投資標準的顯著多年淨收益增長潛力。公司打算繼續借勢投資，捕捉高資產價值創造機會，並在多年來高級住房增長機會中大幅擴大參與。
財務實力和靈活性
Ventas的長期成功受到其規模、強勁流動性以及多元資本來源的支持。在SHOP有機增長和以股權方式資助的高級住房投資的帶動下，至第三季末，淨債務-進一步調整後EBITDA* 改善至6.3倍，較2023年年底提高了0.6倍。
企業可持續發展的領導力
Ventas於9月份發布了其2023-2024年度企業可持續發展報告（CSR）。該報告詳細說明了公司的環境、社會和治理倡議，以支持業務的增長和成功，並推動其重要使命，幫助一個龐大且迅速增長的老年人口過上更長壽、更健康、更幸福的生活。Ventas持續獲得可持續發展領導地位和成就的全球認可，包括自2017年以來在GRESb全球esg房地產評估中作為首位的上市醫療保健房地產投資信託，以及四年連續獲得ENERGY STAR®年度能源管理合作夥伴稱號，並連續第二年獲得榮譽卓越獎。報告可在以下網址獲取： www.ventasreit.com/csr2024.
本新聞稿中的部分財務指標屬於非通用會計原則（Non-GAAP）指標。請參閱本新聞稿末尾的非通用會計原則財務指標調和表，以獲取更多資訊及與最直接相應的通用會計原則（GAAP）指標的調和情況。
- 更多 -
Ventas報告2024年第三季度業績
2024年10月30日
第3頁
2024年全年指引已更新並優化。
公司正在更新和改進全年的指引。 公司的指引包含前瞻性聲明，並基於若干假設，包括稍後在本新聞稿中確定的特定假設。 實際結果可能有顯著差異。
截至2024年8月1日 | 截至2024年10月30日 | |||||||||||||
| 每股應佔可歸屬凈利潤區間 | $0.07 - $0.13 | $0.09 - $0.13 | ||||||||||||
| 每股應佔可歸屬凈利潤中點 | $0.10 | $0.11 | ||||||||||||
| Nareit每股基金運作績效區間* | $3.02 - $3.08 | $3.04 - $3.08 | ||||||||||||
| Nareit每股基金運作績效中點* | $3.05 | $3.06 | ||||||||||||
每股基金運作績效標準化區間* | $3.12 - $3.18 | $3.14 - $3.18 | ||||||||||||
每股基金運作績效標準化中點* | $3.15 | $3.16 | ||||||||||||
* 本新聞稿中的一些財務指標屬非通用會計準則之範疇。有關詳細資訊及與最直接可比的通用會計準則之調和，請參閱本新聞稿末尾的非通用會計財務指標調和表。
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
- MORE -
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
- MORE -
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.
- MORE -
Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 6
| 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 | |||||||
- MORE -
Ventas Reports 2024 Third Quarter Results
October 30, 2024
Page 7
| 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.
- MORE -
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. | |||||||||||||||||
- MORE -
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.
- MORE -
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
- MORE -
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
- MORE -
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.
- MORE -
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.
- MORE -
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)
- MORE -
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.
- MORE -
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.
- END -