Q3 2025 Ventas Inc Earnings Call

Next call all.

All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

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Speaker #3: Thank you for standing by . My name is van , and I will be your conference operator today . At this time , I would like to welcome everyone to the Ventas third quarter 2020 earnings call .

I would now like to turn the call over to B J Grant Senior Vice President of Investor Relations. Please go ahead.

Thank you Dan.

Good morning, everyone and welcome to the Ventas third quarter 2025 results Conference call yesterday, we issued our third quarter 2025 earnings release presentation materials and supplemental information package, which are available on the Ventas website at IR Dot Ventana III Dot com.

Speaker #3: All lines have been placed on mute to prevent any noise . After the speaker's remarks , there will be a question and answer session .

Speaker #3: If you would like to ask a question during this time , simply press star followed by the number one on your telephone keypad .

Speaker #3: If you would like to withdraw your question , press star one again . Thank you . I would now like to turn the call over to BJ Grant , Senior Vice President of Investor Relations .

As a reminder remarks today may include forward looking statements and other matters forward looking statements are subject to risks and uncertainties and a variety of topics may cause actual results to differ materially from those contemplated in such statements.

Speaker #3: Please go ahead .

Speaker #4: Thank you . Van . Good morning , everyone , and welcome to the Ventas third Quarter 2020 results conference call . Yesterday we issued our third quarter 2020 earnings release , presentation materials and supplemental information which are available on the Ventas website at IR .

For a more detailed discussion of those factors. Please refer to our earnings release for this quarter and to our most recent SEC filings all of which are available on the Ventas website.

Certain non-GAAP financial measures will also be discussed on this call and for a reconciliation of these measures to the most closely comparable GAAP measures. Please refer to our supplemental information package posted on the Investor Relations website.

Speaker #4: As a reminder , remarks today may include forward looking statements and other package , Forward looking statements are subject to risks and uncertainties , and matters . a variety of topics may cause actual results to differ materially from those contemplated in such statements .

Speaker #4: As a reminder , remarks today may include forward looking statements and other package , Forward looking statements are subject to risks and uncertainties , and matters .

And with that I'll turn the call over to Debra Cafaro, Chairman and CEO of Ventas.

Thank you P. J I'd like to welcome all of our shareholders and other participants to the Vantiv third quarter 2025 earnings call.

Speaker #4: earnings release for this quarter and to our most recent SEC filings , all of which are available on the Ventas website . Certain non-GAAP financial measures will also be discussed on this call .

Building on our momentum Fantast delivered excellent performance in growth in the quarter as we continue to execute on our 123 strategy.

Speaker #4: And for a reconciliation of these measures to the most closely comparable GAAP measures , please refer to our Supplemental Information Package posted on the Investor Relations website .

Our strategy is based on the Mega trend of longevity.

As one of the world's largest owners and acquirers of private pay senior housing we are positioned to capitalize on the sustained growth in demand from a large and expanding aging population.

Speaker #4: And with that , I'll turn the call over to Debra Cafaro chairman and CEO of Ventas .

Speaker #5: Thank you . BJ . I'd like to welcome all of our shareholders and other participants to the Ventas third quarter 2020 earnings call .

Our strategy emphasizes growing our private pay shop business organically and by investing in senior housing.

Speaker #5: Building on our momentum , Ventas delivered excellent performance and growth in the quarter as we continue to execute on our one , two , three strategy .

We are doing both as we expect 2025 to be our fourth year of double digit shop, NOI growth and we anticipate closing $2 $5 billion of private pay senior housing investments during the year.

Speaker #5: Our strategy is based on the megatrend of longevity . As one of the world's largest owners and acquirers of private pay , senior housing .

Speaker #5: We are positioned to capitalize on the sustained growth in demand from a large and expanding aging population . Our strategy emphasizes growing our private pay shop business organically and by investing in senior housing .

Most importantly, we foresee at least another decade of accelerating demand for senior housing.

The Ventas strategy organization and team have been built to meet this moment and capitalize on the favorable external demand backdrop.

Speaker #5: We are doing both as we expect 2025 to be our fourth year of double digit shop . NOI growth , and we anticipate closing $2.5 billion of private pay .

Over the past several years, we have added expertise acquired over $4 billion of senior housing communities converted communities from Triple net to shop expanded our shop, operator base made significant strategic dispositions increased our scale and improved our financial profile.

Speaker #5: US senior housing investments during the year . Most importantly , we foresee at least another decade of accelerating demand for senior housing . The Ventas strategy , organization and team have been built to meet this and capitalize on the favorable external demand backdrop .

File.

As a result, our enterprises now delivering $2 $5 billion of net operating income.

Our shop percentage of NOI has increased nearly 2000 basis points to represent half of our business. We are working with over 40 shop operators, we have created significant occupancy and NOI upside potential in our 85% occupied U S shop portfolio.

Speaker #5: Over the past several years , we have added expertise acquired over $4 billion of senior housing communities , converted communities from triple net to shop , expanded our shop operator base , made significant strategic dispositions , increased our scale and improved our financial profile .

Through our deliberate portfolio composition.

Speaker #5: As a result , our enterprise is now delivering $2.5 billion of net operating income . Our shop percentage of NOI has increased nearly 2000 basis points to represent half our business .

And our leverage has improved by two full turns.

These actions and outcomes are designed to take advantage of powerful secular tailwind in senior housing where supply and demand are kept strongly in our favor and we have this scale platform and financial strength to win.

Speaker #5: We are working with over 40 shop operators . We have created significant occupancy and NOI upside potential in our 85% occupied US shop portfolio .

Demographic demand is accelerating as baby boomers are starting to turn 80 this coming year.

Speaker #5: Through our deliberate portfolio composition and our leverage has improved by two full turns . These actions and outcomes are designed to take advantage of powerful secular tailwinds in senior housing , where supply and demand are tipped strongly in our favor .

And more people than ever are choosing senior housing for the valuable benefits. It provides.

The over 80 population is expected to surge into the coming decade and grow 28% just in the next five years.

Yet senior housing supply is at record lows in both inventory growth and the number of new construction starts with just over 1200 units started in the third quarter.

Speaker #5: And we have the scale , platform and financial strength to win demographic demand is accelerating as baby boomers are starting to turn 80 .

Speaker #5: This coming year , and more people than ever are choosing senior housing for the valuable benefits it provides . The over 80 population is expected to surge into the coming decade , and grow 28% just in the next five years , yet senior housing supply is at record lows in both inventory growth and the number of new construction starts with just over 1200 units started in the third quarter .

Our strategy is producing strong results, increasing our enterprise growth rate and building financial strength.

Let's now turn to the highlights of our quarterly results and latest 2025 guidance increase are outsized organic growth in our senior housing operating portfolio.

And are active in increasing investment activities.

Normalized <unk> per share grew 10% year over year and total company same store cash NOI increased 8%.

Speaker #5: Our strategy is producing strong results , increasing our enterprise growth rate and building financial strength . Let's now turn to the highlights of our quarterly results and latest 2025 guidance .

Shop, once again powered our results enjoying a strong key selling season.

We saw broad based demand for our communities and excellent Revpar and revenue strength.

Speaker #5: Increase our outsized organic growth and our senior housing operating portfolio and our active and increasing investment activities . Normalized FFO per share grew 10% year over year , and total company same store cash NOI increased 8% .

Our U S communities led the way with 19% same store cash NOI growth and 340 basis points of occupancy growth.

I wanted to extend a sincere thanks to our operators and the Ventas team to deliver this performance, while helping seniors live longer healthier and happier lives.

Speaker #5: Shop once again powered our results , enjoying a strong key selling season . We saw broad based demand for our communities and excellent rev poor and revenue strength .

We're pleased once again to increase our full year guidance driven by our shop performance and increased senior housing investment activity.

We now expect year over year growth of 9% and normalized <unk> per share and seven 5% total company same store cash NOI at the midpoint of our improved guidance.

Speaker #5: US communities led the way with 19% same store cash , NOI growth Our 340 basis points of occupancy growth . I want to extend a sincere thanks to our operators and the Ventas team who delivered this performance , and while helping seniors live longer , healthier and happier lives .

These growth rates will put us in the top tier of companies across the REIT landscape if achieved.

Speaker #5: We're pleased once again to increase our full year guidance driven by our shop performance and increased senior housing investment activity . We now expect year over year growth of 9% in normalized FFO per share and 7.5% total company same store cash , and why ?

On the investment front, we are seeing a strong upward trend in transaction activity and our pipeline continues to grow with quality investment opportunities in senior housing we are accelerating our senior housing investment activities to expand the ventas shop portfolio and increase our enterprise.

Speaker #5: At the midpoint of our improved guidance ? These growth rates will put us in the top tier of companies across the REIT landscape .

Growth rate.

Private pay U S. Senior housing is the company's number one capital allocation priority.

Speaker #5: If achieved on the investment front , we are seeing a strong upward trend in transaction activity and our pipeline continues to grow with quality investment opportunities in senior housing .

The environment is highly favorable private to public arbitrage opportunities are increasing our strong and broad based industry relationships are generating significant deal flow and.

And our capabilities track record and financial strength provide meaningful competitive advantages.

Speaker #5: We . Are accelerating our senior housing investment activities to expand the vintage shop portfolio and increase our enterprise growth rate . Private pay US senior housing is the company's number one capital allocation priority .

We've already close to $2 billion of senior housing acquisitions in the U S year to date, and we've increased our 2025 investment guidance to $2 $5 billion.

Speaker #5: The environment is highly favorable , private to public arbitrage opportunities are increasing . Our strong and broad based industry relationships are generating significant deal flow , and our capabilities , track record and financial strength provide meaningful competitive advantages .

We intend to build on our momentum.

Following our rate market right asset right. Operator framework, we are prioritizing investment opportunities in private pay senior housing that have different combinations of growth and yield to produce attractive risk adjusted returns for our shareholders.

Speaker #5: We've already closed $2.2 billion of senior housing acquisitions in the U.S. year to date, and we've increased our 2025 investment guidance to $2.5 billion.

Next I'd like to highlight a key shop growth initiative the <unk>.

Previously announced transactions relating to 121 Triple net leased senior housing communities are well underway.

Speaker #5: We intend to build on our momentum following our REIT market right asset , right . Operator framework . We are prioritizing investment opportunities in private pay , senior housing that have different combinations of growth and yield to produce attractive risk adjusted returns for our shareholders .

We've already converted from Triple net to shop 27 of the 45 senior housing communities slated for management transitions by year end.

We continue to expect to achieve significant occupancy and NOI upside in these communities overtime.

Speaker #5: Next , I'd like to highlight a key shop growth initiative . The previously announced transactions relating to 121 triple net lease , Senior housing communities are well underway .

For the 65 communities remaining under the lease cash rent will increase 33% beginning in 2026.

And the disposition of the remaining 11 assets is in progress with sale proceeds to be retained by Ventana.

Speaker #5: We've already converted from triple net to shop 27 of the 45 senior housing communities slated for management transitions by year end . We continue to expect to achieve significant occupancy and NOI upside in these communities over time .

A final note on our research portfolio, which is generating only 8% of our enterprise N O y.

Our portfolio has been constructed in a unique way.

Speaker #5: For the 65 communities remaining under the lease , cash rent will increase 33% beginning in 2026 and the disposition of the remaining 11 assets is in progress , with sale proceeds to be retained by Venta .

Within this small portion of our business about three quarters of our base rents are from creditworthy institutional leaders and medicine pharma and research with a weighted average lease term of over nine years.

Making this portion of our NOI relatively well insulated from current market challenges.

Speaker #5: A final note on our research portfolio , which is generating only 8% of our enterprise NOI , our portfolio has been constructed in a unique way within this small portion of our business .

Importantly, only about 10% of our research portfolio is leased to pre revenue or co working tenants. We have no ground up development in progress and we continue to see institutional demand in new and renewal leasing from University medical and global Pharma 10.

Speaker #5: About three quarters of our base rents are from creditworthy institutional leaders and medicine , pharma and research with a weighted average lease term of over nine years .

Yeah.

In conclusion, we have built ventas to meet this moment and capitalize on the secular demand from a large and growing ageing population. We are executing our strategy to grow senior housing and delivering outstanding results and we are well positioned to increase our deal activity.

Speaker #5: Making this portion of our NOI relatively well insulated from current market challenges . Importantly , only about 10% of our research portfolio is leased to Pre-revenue or co-working tenants .

Speaker #5: We have no ground up development in progress and we continue to see institutional demand in new and renewal . Leasing from University medical and global pharma tenants .

The future is bright as we use our many competitive advantages to deliver value for stakeholders and sees the unprecedented multiyear growth opportunity ahead.

Speaker #5: In conclusion , we have built Ventas meet this moment and capitalize on the secular demand from a large and growing aging population . We are executing our strategy to grow senior housing and delivering outstanding results , and we are well positioned to increase our to deal activity .

The entire Ventas team is in it to win it and now I'm happy to turn the call over to Justin.

Thank you Debbie.

I'm excited to share an update on how 2025 has been progressing as we continue to execute on our strategy.

Both organic and external growth and our senior housing business.

Speaker #5: The future is bright as we use our many competitive advantages to deliver value for stakeholders and seize the unprecedented multiyear growth opportunity ahead .

Let's start with shop.

Our shop same store portfolio delivered 16% NOI growth year over year in the quarter.

By the U S with 19% growth.

Speaker #5: The entire Ventas team is in it to win it . And now I'm happy to turn the call over to Justin .

<unk> grew 200 basis points to 28% driven.

Driven by over 50% incremental margin revs.

Speaker #6: Thank you . Debbie . I'm excited to share an update on how 2025 has been progressing as we continue to execute on our strategy to drive both organic and external growth in our senior housing business .

Revenue grew 8%.

Due to strength in both occupancy and pricing.

We saw broad based contributions to shop performance across our operating partners delivering exceptional care and services to our senior population.

Speaker #6: Let's start with shop . Our shop . Same store portfolio delivered 16% NOI growth year over year in the quarter , led by the US with 19% growth margin grew 200 basis points to 28% , driven by over 50% incremental margin revenue grew 8% due to strength in both occupancy and pricing .

And very strong financial results with Sunrise and atria, leading the way.

Revpar grew four 7% as our dynamic pricing continues to strike the balance between price and volume.

Average occupancy grew 270 basis points year over year led by the U S at 340 basis points.

Speaker #6: We saw broad based contributions to shop performance across our operating partners , delivering exceptional care and services to our senior population and very strong financial results .

With a particularly strong contribution from our independent living communities.

Had industry, leading sequential occupancy growth of 160 basis points overall, and 200 basis points in the U S.

Speaker #6: With sunrise and Atria leading the way , report grew 4.7% as our dynamic pricing continues to strike the balance between price and volume .

Furthermore, we expect sequential average occupancy growth to continue into the fourth quarter.

Moving on the shop guidance I am pleased to re shop guidance again.

Speaker #6: Average occupancy grew 270 basis points year over year , led by the US at 340 basis points , with a particularly strong contribution from our independent living communities .

With an NOI growth range of 14% to 16%.

We continue to anticipate occupancy growth of 270 basis points and higher revpar driven by strong pricing as.

Speaker #6: We had industry leading sequential occupancy growth of 160 basis points overall and 200 basis points in the US . Furthermore , we expect sequential average occupancy growth to continue into the fourth quarter .

As moving rents and in house rates are both increasing year over year.

I'd like to turn your attention to page 12 in the earnings presentation.

On the left side of the page you'll note.

Speaker #6: Moving on to shop guidance . I am pleased to raise shop guidance again with an NOI growth range of 14 to 16% . We continue to anticipate occupancy growth of 270 basis points and higher rev Por , driven by strong pricing as move in rents and in-house rates are both increasing year over year .

We have consistently outperformed the Nic top 99 markets.

Third quarter resulted in a 120 basis points of outperformance versus near Cop 99, both year over year and sequentially.

On the right side of the page you can see the key selling season was excellent with 230 basis points growth representing.

Representing our best key selling season performance in a number of years.

Speaker #6: I'd like to turn your attention to page 12 . In the earnings presentation . On the left side of the page , you'll note we have consistently outperformed the top 99 markets .

Now I will comment on portfolio strategy.

Our portfolio strategy executed through our <unk> platform is centered on what we call the right market right asset right operator approach.

Speaker #6: The third quarter resulted in 120 basis points of outperformance versus Nick top 99 . Both year over year . And sequentially . On the right side of the page , you can see the key .

As a disciplined framework that ensures every investment we make in every partnership that we pursue enhances long term value creation.

Speaker #6: Selling season was excellent , with 230 basis points growth representing our best key selling season performance in a number of years . Now , I'll comment on portfolio strategy .

We've spent years building a platform that's ready for this wave of demand in senior housing.

We now have sophisticated data analytics and the ability to deliver those insights directly to our operators through our <unk> platform.

Speaker #6: Our portfolio strategy executed through our Ventas OE platform , is centered on what we call the right market . Right asset , right operator approach .

We've enhanced our Capex management optimized dynamic pricing.

Speaker #6: It's a disciplined framework that ensures every investment we make in every partnership we pursue enhances long term value creation . We've spent years building a platform that's ready for this wave of demand in senior housing .

And developed a broader platform capabilities needed to effectively drive performance and support 40 operators managing our communities.

And that number continues to grow.

Equally important.

We have tremendous respect and appreciation for the critical role our operators play and delivering care and services to seniors and achieving market leading performance.

Speaker #6: We now have sophisticated data analytics and the ability to deliver those insights directly to our operators through our Ventas platform , we've enhanced our CapEx management , optimized dynamic pricing , and develop a broader platform capabilities needed to effectively drive performance .

We walked in their shoes, we understand the importance of what they do.

And we place the quality of our relationships with our operators.

Among our highest priorities.

Speaker #6: And support 40 operators . Managing our communities . And that number continues to grow equally important , we have tremendous respect and appreciation for the critical role our operators play in delivering care and services to seniors and achieving market leading performance .

This level of readiness it doesn't happen overnight. It is the result of a deliberate multi year evolution of our platform that positions us to capture the significant opportunities ahead.

We have taken numerous actions over the past five years to ensure success in our senior housing business.

Speaker #6: Having walked in their shoes , we understand the importance of what they do and we place the quality of our relationships with our operators among our highest priorities .

Those actions include.

215 acquisitions, 116, dispositions 295 transitions to new managers 307 community refreshes.

Speaker #6: This level of readiness doesn't happen overnight . It's the result of a deliberate , multi-year evolution of our platform . That positions us to capture the significant opportunities ahead we have taken numerous actions over the past five years to ensure success in our senior housing business .

And 157 conversions of low occupied communities from Triple net to shop.

The net result is a much larger and well positioned shop portfolio fueling double digit NOI growth with embedded occupancy upside.

Speaker #6: Those actions include 215 acquisitions , 116 dispositions , 295 transitions to new managers , 307 community refreshes , and 157 conversions of low occupied communities from triple net to shop .

This framework drives our underlying decision, making in our senior housing business, while our portfolio is well positioned to grow its a focused data driven approach.

And it's working.

For example, I'd like to refer you to page nine of the earnings presentation, where we lay out our Ventana Oi performance management strategy.

Speaker #6: The net result is a much larger and well positioned shop portfolio , fueling double digit NOI growth with embedded occupancy upside . This framework drives our underlying decision making in our senior housing business .

I wanted to make it clear.

Our shop portfolio is well positioned for occupancy growth as our U S portfolio is only 85% occupied.

Due primarily to our deliberate actions converting underperforming communities from the triple net structure to shop.

Speaker #6: Why our portfolio is well positioned to grow . It's a focused , data driven approach and it's working . For example , I'd like to refer you to page nine of the earnings presentation where we lay out our Ventas, Inc. performance management strategy .

Our U S portfolio is well positioned to achieve substantial upside in markets that offer significant net demand over the next several years and will benefit from operational enhancements driven through our <unk> platform.

Speaker #6: I want to make it clear that our shop portfolio is well positioned for occupancy growth as our US portfolio is only 85% occupied , due primarily to our deliberate actions converting underperforming communities from the triple net structure to shop our US portfolio is well positioned to achieve substantial upside in markets that offer significant net demand over the next several years and will benefit from operational enhancements driven through our Ventas platform .

As we've been expanding our shop footprint to half of the company's NOI are benthos Oi capabilities continue to evolve and we have been deliberate in positioning the portfolio for significant occupancy and <unk>.

NOI upside.

The most recent example of the Triple net to shop conversion is the 45 communities, which are 78% occupied converting from the brookdale lease to shop and transitioning to five aligned proven high performing local market focused operators with significant transition experience and track records of delivering.

Speaker #6: As we've been expanding our shop footprint to half of the company's NOI, our Bento's OE capabilities continue to evolve, and we have been deliberate in positioning the portfolio for significant occupancy and NOI upside.

Excellent results this transition is well underway.

We have completed 27 of the transition through October and we expect to be finished by the end of the year. The communities have performed well year to date with both occupancy and NOI growth.

Speaker #6: Our most recent example of the triple net to shop conversion is the 45 communities , which are 78% occupied converting from the Brookdale lease to shop and transitioning to five aligned , proven , high performing local market focused operators with significant transition experience and track records of delivering excellent results .

We have already made progress with the reader plans with a significant number of the projects expected to complete by the key selling season of 2026.

We continue to expect greater than $50 million of NOI upside over time as the new operators execute and we invest NOI generated capex of around $2 million per building.

Speaker #6: This transition is well underway . We have completed 27 of the transitions through October , and we expect to be finished by the end of the year .

Senior housing is a high touch business.

Speaker #6: The communities have performed well year to date , with both occupancy and NOI growth . We have already made progress with the Redive plans , with a significant number of the projects expected to complete by the key selling season of 2026 .

And I'm pleased to report that in the communities that have already transitioned theres a strong level of engagement between local management teams and the new operators.

Along with a great deal of enthusiasm.

I'd like to note that this transition is occurring with the full cooperation and support of Brookdale, which is greatly appreciated.

Speaker #6: We continue to expect greater than 50 million of NOI upside over time as the new operators execute and we invest NOI generating CapEx of around 2 million per building .

Furthermore, we look forward to collaborating with Brookdale on the 65 assets, where the lease has been renewed.

Speaker #6: Senior housing is a high touch business , and I'm pleased to report that in the communities that have already transitioned , there's a strong level of engagement between local management teams and the new operators , along with a great deal of enthusiasm .

Moving on to investments.

We continue to build on our momentum and our relationship driven capital allocation plan targeting private pay senior housing in the U S and.

And we have now completed $4 1 billion of senior housing investments since the middle of last year.

Speaker #6: I'd like to note that this transition is occurring with the full cooperation and support of Brookdale , which is appreciated . Furthermore , we look forward to collaborating with Brookdale on the 65 assets where the lease has been renewed .

Three and a half billion closed during the past four quarters.

Speaker #6: greatly Moving on to investments , we continue to build on our momentum in our relationship driven capital allocation plan , targeting private pay , senior housing in the US , and we have now completed 4.1 billion of senior housing investments since the middle of last year , of which 3.5 billion closed during the past four quarters .

We have close to $2 billion of senior housing acquisition acquisitions year to date.

We have a robust pipeline that continues to expand and our latest guidance for 2025 is now $2 5 billion.

Our senior housing flow business is in full swing as our year to date senior housing investments totaled 20 transactions for 50 communities with approximately 6200 units across 15 states.

Average deal size is $110 million, including a range of singles doubles triples, together with select larger portfolio deals.

Speaker #6: We have closed 2.2 billion of senior housing acquisitions acquisitions year to date . We have a robust pipeline that continues to expand , and our latest guidance for 2025 is now 2.5 billion .

These properties improve our shop portfolio of quality.

Increase the Companys enterprise growth rate.

Speaker #6: Our senior housing flow business is in full swing as our year to date senior housing investments totaled 20 transactions for 50 communities , with approximately 6200 units across 15 states .

We are located in attractive markets that are poised for outperformance due to favorable supply and demand dynamics.

We continue to have an advantage position to source and close meaningful and attractive senior housing transactions.

Speaker #6: The average deal size is 110 million , including a range of singles , doubles , triples , together with select larger portfolio deals .

And the opportunity set is growing at an accelerating rate.

We look for a range of senior housing investment opportunities each with its own balance of growth and yield.

Speaker #6: These properties improve our shop portfolio quality , increase the company's enterprise growth rate , and are located in attractive markets that are poised for outperformance due to favorable supply and demand dynamics .

So we can deliver attractive returns that are aligned with our targeted low to mid teens Unlevered IRR.

It has become clear that <unk> is a senior housing partner of choice across our many transactions are growing stable of strong operator relationships provides us with preferred access and the opportunity to win deals.

Speaker #6: We continue to have an advantaged position to source and close , meaningful and attractive senior housing transactions and the opportunity set is growing at an accelerating rate .

Our transaction execution track record has also created opportunities for repeat business with sellers.

Speaker #6: We look for a range of senior housing investment opportunities , each with its own balance of growth and yield . So we can deliver attractive returns that align with our targeted low to mid teens .

In summary.

We have conviction in our strategy and we are intensifying our efforts to drive outperformance in our senior housing business.

Speaker #6: Unlevered IRR . It has become clear that Ventas is a senior housing partner of choice across our many transactions . Our growing stable of strong operating relationships provides us with preferred access and the opportunity to win deals .

And the best is yet to come.

I'm confident in our ability to execute and create value for our stakeholders and senior housing and investments execution.

Excluding a valuable living experience for our residents.

Valuable workplace experience for the tens of thousands of dedicated community staff and ultimately leading to significant value creation for our shareholders.

Now I'll hand, the call to Bob.

Thank you Justin.

I will start with our third quarter performance highlight our balance sheet and conclude with our improved guidance for the year.

Starting with our enterprise performance Phantasms delivered normalized <unk> per share of 88 in the third quarter.

Which represents a 10% increase year over year.

Driving the strong year over year growth was total company same store cash NOI of 8% led by sharp growth of 16%.

Our outpatient medical and research business or Omar.

Same store cash NOI growth of three 7% year over year led by outpatient medical.

Outpatient medical third quarter occupancy improved 50 basis points year over year to 96%.

A 20 basis point sequential increase versus the second quarter.

TTM tenant retention was a strong 87% in the third quarter, an increase of 200 basis points year over year.

Reflecting tenant satisfaction scores in the 95 percentile.

Okay.

Our research business represents 8% of our NOI.

In the third quarter.

Research same store cash NOI was $400000 lower year over year.

Driven by lower rents uncertain innovation flex space tenants as previously discussed.

Next turning to our balance sheet and liquidity.

Our net debt to EBITDA at five three times in the third quarter represents a full turn improvement from third quarter of 2024.

This leverage reduction was driven by a combination of organic growth and equity funded senior housing investments consistent with our strategy.

I would note that this significant improvement in leverage was achieved.

While delivering normalized <unk> per share growth in the top echelon of routes.

We have already fully fund equity funded our $2 $5 billion investment guidance for 2025.

With $2 $6 billion of equity raised.

Including half a billion dollars of unsettled equity forwards.

We have over 4 billion of liquidity as of September 30.

Which supports <unk> growth and financial flexibility.

I'll close with our updated and improved 2025 guidance, we expect net income attributable to common stockholders.

To range from 49 per share to <unk> 52 per share.

We are also improving our full year normalized <unk> guidance midpoint by <unk> <unk> to.

The $3 47 per share.

This improved 2025 guidance midpoint represents 9% year over year growth in normalized <unk> per share.

Approximately two thirds of our <unk> guidance increase.

That's a normalized mid point can be explained by our improved shop performance in senior housing investments completed year to date.

With the final third representing improvements across the balance of the enterprise.

We've also raised our total company same store cash NOI growth by 50 basis points to seven 5% year over year.

Led by the shop same store NOI, the midpoint, improving by 100 basis points to 15%.

And our updated guidance with the 45 Brookdale conversion is now underway.

We are reflecting the shift in NOI from these conversions from our Triple net segment to our shop segment.

Because cash rent on these 45 conversion assets approximate current NOI at the assets.

And that impact on 25 <unk> is de Minimis.

I would point you to our earnings presentation deck and supplemental for more detail on these and other assumptions underpinning our guidance.

To close we are pleased with the results both in the quarter and so far this year.

The entire Ventas team is determined to build on our momentum into.

And to continue delivering superior performance for our shareholders.

With that I'll turn the call back to the operator.

At this time I would like to remind everyone in order to ask a question Press Star then one on your telephone keypad.

Because cash rent on these 45 conversion assets, approximates, current, noi at the assets.

And that impact on 25 ffo is de minimis.

Please limit your question Oh, sorry, Theres no levered towards your question sorry for that our first question comes from the line of Jonathan Hughes Raymond James. Please go ahead.

I would point you to our earnings presentation deck, in supplemental, for more detail on these and other assumptions underpinning, our guidance.

Yeah.

Hi, Good morning, Thank you for the prepared remarks and commentary.

To close. We are pleased with the results both in the quarter and so far this year

The entire ventas team is determined to build on our momentum.

Was hoping you could talk more about underwriting criteria I know the acquisition volume guidance is $2 5 billion from one the start of the year and you've been very consistent buying properties with 7% yield.

And to continue delivering Superior performance for our shareholders.

With that, I'll turn the call back to the operator.

But with the lower cost of capital today. It seems like you would now be able to make the math work to buy some lower initial yielding properties that come with higher growth rates still low to mid teens IRR I guess.

At this time, I would like to remind everyone that in order to ask a question, please press star, then the number 1 on your telephone keypad.

Please limit your question. Oh sorry there's no limit to other questions. Sorry for that. Um, our first question comes from the line of Jonathan use Raymond James, please go ahead.

Are there any plans to lower those initial yield requirements, maybe get more aggressive to buy properties of more growth given the outlook for seniors housing supply and demand is so strong over the next 510 years.

Hi, good morning. Um thank you for the prepared, remarks and commentary.

Morning, Jonathan It's Debbie.

We are certainly going to be ambitious in our goals to grow our senior housing business as we have over the last couple of years and build on our momentum.

Hi, it's Justin Yeah, and we feel like I said in my prepared remarks into three 5 billion at a four one as it's been over the past four quarters. So.

7% yields, but with the lower cost of capital today, it seems like you'd now be able to make the math work to buy some lower initial-yielding properties that come with higher growth but still low to mid-teens IRR, I guess.

The volume has been accelerating we have momentum in our pipeline and the execution on that pipeline.

And yeah, we are really happy with the returns we've been getting.

The primary metric we target our Unlevered IRR is everything has been in the range of low to mid teens and Theres a variety of way to getting there.

Are there any plans to lower those initial yield requirements? Maybe get more aggressive to buy properties of more growth? You know, given the outlook for seniors housing, supply. And demand is so strong over the next 5, ten years. Thanks, good morning, Jonathan. It's Debbie. Um, we we are certainly going to be ambitious and our goals to grow our senior housing business. As we have over the last couple years and build on our momentum.

Really yielding growth.

We've seen the opportunity to buy assets that are delivering significant growth potential.

That's where we're leaning in and we're using the market asset operator framework to help determine where to focus.

And we've had plenty to do and we look forward to doing as much more of it as we possibly can.

Okay.

Ask one more if I can.

Sure on the leverage it's great to see great to see that improvement.

Can you just remind us of the target leverage how you weigh equity and debt to fund this external growth, especially given that cost of equity capital today is is really attractive.

Hi. It's Justin. Yeah. And we like I said in my prepared remarks and 3 and a half billion of the 41 is have been over the past 4 quarters. So the the volume has been accelerating. We have momentum in our Pipeline and the execution on that pipeline. Um, and you know, we're, you know, we are really happy with the returns. We've been getting and the primary metric. We target are unlevered RRS. Um, everything's been in the range of low to mid teens and, you know, there's a variety of ways of getting there is that and it's really yielding growth. And we've seen the opportunity to buy assets that are delivering significant growth potential.

Yeah, I'll take that Jonathan we were really pleased with the with the leverage improvement five three for the quarter. That's a full turn.

And the strategy that we set out quite a while ago now of organic growth plus equity funded investments given the returns.

Um, and that's where we're leaning in. And we're using the market asset, operator framework to help determine where to focus. Um, and we've had plenty to do uh and we look forward to doing as much more of it as we possibly can.

Is it really been working.

So we're going to continue to run that play as long as the market gives us the opportunity.

And we are obviously trending favorably in terms of leverage I would expect that to continue should the market conditions exist.

Okay. Um I'll ask 1 more if I can. Um, sure on The Leverage, it's great to see great to see that Improvement. Um, can you just remind us of of the the target leverage? How you weigh equity and debt to fund this external growth, especially, you know, giving that cost of equity Capital today is is, is really attractive

And that just gives us more more flywheel of more opportunity to continue to invest so that's that's the strategy and thats. The approach we are clear eyed that equity is very precious.

Yeah, I'll take that Jonathan. We're really pleased with the with the leverage Improvement. 53 for the quarter, that's a full turn.

And therefore, we're making sure that we're investing in the best assets as Justen described but we're really pleased with the way the playbook is working.

And the strategy that we, we set out quite a while ago, now of organic growth plus Equity, funded Investments, given the returns.

Alright, thanks, everyone at this time.

Thank you.

Has really been working. Um, and so what? We're going to continue to run that that play as long as the market gives us the opportunity.

Our next question comes from the line of Michael Carroll RBC capital markets. Please go ahead.

Yes, Thanks, I wanted to quickly touch on the Brookdale shop transitions and the revenue generating capex that Ventas plans, we're putting into these assets I mean can you give us a few examples on what type of investments these will be and how disruptive will that be the current results. I mean is it just trying to get these done.

And we are obviously trending favorably. In terms of Leverage, I would expect that to continue. Should the market conditions exist.

Um and that just gives us more more flywheel and more opportunity to continue to invest. So that's that's a strategy and that's the approach. We are clear eyed that Equity is very precious.

And therefore, making sure that we're investing in the best assets, as Justin described. But we're really pleased with the way the Playbook is working.

Before the key selling season and Thats just the key to minimize this disruption.

All right, thanks everyone for the time.

Thank you. Thank you.

Hi, Yeah, so I'm going to start with kind of the the plans we have in place to help ensure smooth transitions.

Our next question comes from the line of Michael Carroll RBC Capital markets, please go ahead.

First thing just to reiterate something I said, then that is that the performance has been really good. So we're receiving the communities with an in place where they've had really good occupancy and NOI growth over the past year.

There's been a very high touch approach with my team our team here at <unk>, but also the the operators the Ceos of the operators and personally engaged in the communities on the ground right away.

Yep. Thanks. Um, I wanted to quickly touch on the uh, the Brookdale shop transitions um, in the revenue generating capex, that that dentas plans, they putting into these assets. I mean, can you give us a few examples on on what type of Investments, these will be? And how disruptive will that be to to current results? I mean, is it just trying to get these done before the key selling season and that's just the key to to minimize the this disruption.

Assessing.

You know the situation and the opportunity to improve on operations and also help us to solidify our plans to invest the refresh capex.

Types of projects that we're focused on are mainly kind of.

Hi. Yeah. So I'm going to I'm going to start with kind of the the plans we have in place to help ensure smooth transitions. Um first thing just to reiterate something I I said and that is that the performance has been really good. So we're we're, you know, receiving the communities with in a place where they've had really good occupancy in noi growth over the past year,

Ruth I call them like routine refreshes.

We're repositioning through common area refresh paint paper furniture.

Picture as we refresh all the lighting first impression types of investments and we've become pretty expert at doing this with as little disruption as possible Theres a few projects that are much larger.

There's been a very high touch approach, uh, with my team, our team here at ventos, but also the, The Operators, the CEOs that of The Operators and personally engaged in the communities on the ground right away, um, assessing, you know, the situation and the opportunity to improve on operations.

That we have we are a hallmark in Chicago, what you'll get a full readout, that's a really exciting high rise.

And also help us to solidify our plans to invest the refresh capex.

That has been a market leader for years, and we're going to take it to a new level with the new operations in the in the investment.

But most of them are pretty routine.

The types of projects that we're focused on are mainly kind of, uh, Ruth. I'd call them like routine refreshes where we're repositioning through common area. Refresh, uh, paint paper furniture,

Projects that we have immense experience delivering.

Okay, Great and then just lastly for me another shop portfolio at least on the same store side has really delivered some good margin expansion of about 200 basis points year over year.

Just given that occupancy now for the same store portfolio was 89% and presumably next year, it's going to get above 90%.

How much faster can that margin expand because I know Justin you've always talked about that you get more incremental margins as occupancy improves. So like we're it's a good kind of ballpark of how much that could tick pick up.

Ations and the and the investment. Um,

But most of them are pretty routine. Um, you know, you know, projects that we have immense experience, delivering

Yeah. So it's one of our favorite topics, you know margin expansion and incremental margin and we've experienced really over the past two.

Two years, 50% incremental margin in our shop performance and that's a rule of thumb that we've articulated many times and that that rule of thumb really applies for that journey from 80% to 90% occupancy, but once you start getting over 90% on your way to 100%.

When you start to see a higher incremental margin closer to 70%.

Does that operating leverage is really kicked in so that will be an opportunity.

Okay, great. And then just lastly for me um, another shop portfolio. At least on the same store. Side is really delivered. Some good uh margin expansions of what 200 basis points every year. I mean, just given that occupancy. Now for the theme store, portfolio is 89% and presumably next year, it's going to get above 90%. Um, how much faster can that margin expand? Because I know, um, Justin you've always talked about that. You get more incremental margins. Um, as occupancy improved. So like, where it's a good kind of ballpark of how much that could pick pick up.

Just simply through operating leverage and growing occupancy to have margin expansion. The other opportunity is through price and you've heard so.

So far in our prepared remarks, we have.

Good experience in terms of Revpar growth that is driven by underlying rent increases and move in rents and in both cases, the higher occupancy you get the stronger that resolve is we get two times. The revpar growth, we get two times the move in rents and communities that are over 90% occupied versus.

Yeah, so I it's 1 of our favorite topics, you know, margin expansion and incremental margin and we've experienced really over the past full 2 years, 50% incremental, margin and our shop performance, and that's a real thumb, that we've articulated many times and that, that rule of thumb really applies for that Journey from 80 to 90% occupancy. But once you start getting over 90% on your way to 100%,

he starts to see a higher incremental margin closer to 70% um because that operating Leverage is really kicked in so that'll be an opportunity um, as

The rest of the portfolio, so that will create opportunities to help push margin as well.

Okay, great. Thank you.

Thanks, Mike.

Just simply through operating leverage and growing occupancy to have more expansion. The other opportunity is through price and you've heard, you know, so far in our prepared remarks, you know we we have

Our next question comes from the line of viral granite from Bank of America. Please go ahead.

Good morning, Thank you for taking my question.

I first wanted to address.

Comment in the opening remarks about occupancy is expected to increase sequentially or at least quarter over quarter. I was just wondering if that has to do with anything coming into the same store at a higher occupancy or if youre seeing things in market trends right now.

Good experience in terms of rep for growth, that's driven by underlying rent increases and moving rents. And in both cases, the higher occupancy, you get the stronger that result is, um, we get 2 times the Rev 4 growth. We get 2 times, the moving rents in communities that are over 90% occupied versus the rest of the portfolio. So that'll create opportunities to to help push margin as well.

Okay, great. Thank you.

Hi.

Thanks Mike.

It is.

This is about just a strong end to the third quarter and that carrying into the fourth quarter.

Our next question comes from the line of feral Granite from Bank of America, please go ahead.

And we have good visibility into that obviously, so far so.

It's an organic outcome driven by.

Strong strong demand and strong move in volume that we're seeing.

Thanks, Gary.

Thank you and I also wanted to ask about as your pipeline right. Now is all U S shop, what's you're comfortably of potentially expanding that into the U K or in other areas as well.

Good morning, thank you for taking my question. Um, I first wanted to address the comment in the opening remarks about occupancy being expected to increase sequentially, or at least quarter over quarter. I was just wondering if that has to do with anything coming into the same store at a higher occupancy, or if you're seeing things in market trends right now.

Hi, yeah, so it is, um,

Great question I'm sitting here risks Justin who.

This is about just a strong um, end to the third quarter and and that carrying into the fourth quarter.

I think it's only read executive who actually ran a U K large senior living company well, let him take that question, yes. So I would say our first second and third priorities are to invest in private pay senior housing in the U S.

Um and we have good visibility into that obviously so far. So um it's an organic outcome driven by um, you know, strong, strong demand, and strong move in volume that we're seeing

We were we have we like the footprint, we have in Canada don't have meaningful plans to expand there.

Okay is interesting one thing we did do there is set up our shop platform earlier this year with a new operator.

Thank you. And I also wanted to ask about, um, as your pipeline right now is all Us shop. What's your comfortability of potentially expanding that into the UK or in other areas as well?

CCG, who has been delivering excellent results. So far so we'll look forward to expanding our footprint.

In the UK over time, but the U S is is where all the action is.

Okay. Thank you so much.

Great question. I'm sitting here with Justin who, um, I think it's the only read executive who actually ran a UK large Senior Living company. So I'll let him take that question. Yeah, so I would say our first second and third priorities are to invest in private pay senior housing in the US.

Our next question comes from the line of Vikram Malhotra from Mizuho. Please go ahead.

Good morning, Congrats on the strong results.

Just two questions I guess.

One you know.

Um we were we we have we like the footprint we have in Canada, don't have meaningful plans to expand their. Um, the UK is interesting. 1 thing we did do, there is set up our shop platform early this year with a new operator.

A lot of your peers are engaging in I guess strategic portfolio shifts, whether it's selling them obese.

Or are some of them will be.

Or moving into the U K and it appears I mean, just the broader health care sector.

Um, ccg who's been delivering? Excellent results so far. So, we'll look forward to expanding our footprint, um, in the UK over time. But the US is, is where all the action is.

I'm wondering sort of if you think of the portfolio today with the lifestyle University exposure medical office.

Okay, thank you so much.

But then this outsized growth in sharp like is there a is there are either thinking about like bigger picture change in the portfolio number one.

Our next question comes from the line of Vikram. Malhotra from mizuho, please go ahead.

And then just going back to.

Specifically on Canada, you've had really good results there, but what's the appetite to sort of monetize the investment and the returns maybe until fund or just outright selling thanks.

Thanks Victor.

We're always willing to consider and we're always evaluating different portfolio actions that we think will create long term value for the company and you've seen us do that.

Uh, morning. Uh, congrats on the strong results. Um, I just 2 questions, I guess 1. Um, you know, a lot of your peers are engaging in, I guess strategic portfolio shifts, whether it's selling mobs uh, or or some mobs or moving into the UK and I peers I mean you know just a broader Healthcare set, I'm wondering sort of as you think of the portfolio today with you know, the the lifestyle University exposure medical office.

Over the years.

And we will continue to actively monitor our portfolio.

For those types of actions.

Our main focus.

Which I'm sure is coming across is really an aggressively growing our private pay shop business, which we've increased 2000 basis points to half the company over the last couple of years and we're going to continue to try to rapidly expand that business from internal and external investment activity.

Back to um, you know, specifically on Canada, you've had really good results there. But what's the appetite to sort of monetize the investment uh, and the returns maybe into a fund or just outright selling, thanks.

Hello.

Thank you okay.

Yeah.

Our next question comes from the line of Michael Goldsmith from UBS. Please go ahead.

Good morning, Thanks, a lot for taking my questions you raised your shop Revpar growth.

You raised your shop Revpar growth guidance from four 5% to greater than four 5%. It seems like every quarter, we see less and less supply growth can you just talk about the change to greater than four 5% and how much visibility you have into 2026, given the pricing power should strengthen as occupancy increases and further do.

Thanks Vic. Um of course we're always willing to consider and we're always evaluating different portfolio actions that we think will create long-term value for the company and you've seen us do that uh over the years and and we'll continue to actively monitor our portfolio. Uh for those types of actions currently our main focus it which I'm sure is coming across is really an aggressively growing. Our private patient shop business, which we've increased 2,000 basis points to have the company over the last couple of years. And we're going to continue to try to rapidly expand that business from internal and external investment activity.

Hello.

Thank you. Okay.

Do you think higher revpar growth could somewhat offset any slower occupancy growth in the future.

Our next question comes from the line of Michael Goldsmith from UBS. Please go ahead.

Sure, so or where we've been really pleased with our underlying pricing both in terms of rent increases this year as well as the move in rent trends, which are up year over year.

And they are working together to.

Through our dynamic pricing approach with our operators to deliver that result, and one of the things. We're equally as pleased about is that we're striking a really good balance of also driving occupancy and price together, which is what this dynamic pricing is approach is designed to do.

Good morning. Thanks a lot for taking my questions, you raised your shop rep for growth morning. Uh, you raised your shop rep for growth, guidance from 4 and a half percent to greater than 4 and a half percent. It seems like every quarter we see less and less Supply growth, can you just talk about the change? The greater than 4 and a half percent and how much visibility you have into 2026, given pricing power, should strengthen as occupancy increases in further, do you think higher repport growth can somewhat offset, any slower occupancy growth in the future?

Terms of the opportunity moving forward, we're not going to really get into 2026 right now.

But you know the.

Some of the things I mentioned earlier I think our earlier I really relevant and that is that in higher occupied communities, we've seen better price outcomes, both in house and through moving rents.

Sure so um our we're we've been really pleased with our underlying pricing both in terms of rent increases this year as well as the movement rent Trends, which are up year-over-year.

Obviously demand has been really good and we have more scarcity value across our portfolio. So over time that that should create an opportunity and when it's time to get into 2026, we'll do that but this isn't the time yet.

I appreciate the response and as a follow up you've acquired $2 2 billion of stabilized senior housing your date at 10, new local focus operator relationships. It appears these are good operators because occupancy is already at 91%, but can you talk about what you look for when assessing whether a new operator.

And they're working together to through our Dynamic pricing approach with our operators to deliver that result. Um, and 1 of the things we're beko is pleased about is that we're striking a really good balance of also, driving occupancy and price together, which is what this Dynamic pricing is, approached is designed to do, um, in terms of, um, the opportunity moving forward, it's a little, we're not going to really get into 2026 right now.

Um, but you know, the, you know, the some of the things I mentioned earlier, I think our earlier I really relevant and that is that in higher occupied communities. We've seen better price outcomes, both in-house and through moving rents

It's the vantage platform and then the average price per unit on a year to date activity was 381000, and so is that still a discount to replacement costs and if so how much if you had to estimate thanks.

Um, obviously demand's been really good and we have more scarcity value across our portfolio. So over time, that that should create an opportunity, and when it's time to get into 2026, we'll do that. But this isn't the time yet.

Yeah. So we've consistently been buying below replacement cost and it you know it varies I mean, it's anywhere from.

10% to 50% depending on what.

What particular investment we're talking about.

One thing I want to clear up as you mentioned the word stabilize then.

We really don't think of 90% occupancy as being stabilized. There's a you know we're sitting and markets that have net absorption projection of 1000 basis points plus over the next few years. So we have you know.

Uh I appreciate the response and as a follow-up, you acquired 2.2 billion of stabilized senior housing Year date at 10 new local focused, operator relationships. So it appears these are good operators because occupancy is already at 91% but can you talk about what you look for when assessing whether a new operator fits the ventas platform and then the average price per unit on the year to date activity was 381,000? So is that still a discount to a replacement cost and if so how much if if you had to estimate things, okay?

Not only good operational opportunity, but a tailwind that is unprecedented that we're facing.

Yeah so we've consistently been buying below replacement costs um and it you know it varies. I mean it's anywhere from

We have and then we have the price opportunity as I've reiterated that comes with that as well. So we see a lot of growth ahead in these assets.

And just to reiterate another strategic point I made on top of the acquisitions. We also had the strategy of moving our triple net communities over to shop in those communities were lower occupied the most recent example is brookdale, a 78% occupied and what Thats delivered.

10 to 50% depending on on what which it particular investment, we're talking about um 1 thing I want to clear up is you mentioned the word stabilized and um you know we we really don't think of 90% occupancy as being stabilized. Uh, there's uh, you know, we're sitting in markets that have net absorption projects,

For us as a U S occupancy thats, 85%.

So we're buying these high performing communities through acquisitions, we transitioned the lower occupied communities from Triple net to shop, and we have a long runway ahead of growth opportunity with tailwind to support it in a platform designed to deliver on that.

Of 1,000 basis Points Plus over the next few years. So we have, you know, not only good operational opportunity but a a Tailwind that is unprecedented that we're facing. Um we have um and then we have the price opportunity of of reiterated that comes with that as well. So we see a lot of growth ahead in these assets.

um, and um, just to

Thank you very much good luck in the fourth quarter.

Thanks.

Our next question comes from the line of Seth Berg Burgee from Citi. Please go ahead.

Thanks.

Reiterate another strategic point I made on top of the Acquisitions. Um, we also have had the strategy of moving. Our triple net communities over to shop and those communities were lower occupied. The most recent example is Brookdale, 78% occupied. And what that's delivered for us is a US occupancy. That's 85%.

The answer to your process.

I just want to go back to the question on diversification and kind of the benefits of being more diversified versus more of a pure play.

Is it do you think there are synergies between the businesses.

Is it just a matter of pricing and if you had the right pricing and you talked to get more pure play.

Transition the lower occupied communities from trip on that the shop. And we have a long Runway ahead of growth opportunity with Tailwind to support it and a platform designed to deliver on that.

How do you think about kind of the portfolio composition of the company composition overall, and ultimately how that attracts equity capital relative to the other healthcare companies out there.

Thank you very much. Good luck in the fourth quarter.

Our next question comes from the line of Seth Berg Bergie from CD. Please go ahead.

Yes.

Overall as I mentioned, the company's portfolio is unified by the Mega trend of longevity.

And of course, the senior housing business caters to the over 80 population.

<unk> is growing is large and growing and should be accelerating in growth over the next decade as I mentioned, just 28% over the next five years and so we are leaning heavily into our senior housing business.

Thanks, it's next year with Seth. Um, Debbie just want to go back to the, the question on diversification and kind of the benefits of being more Diversified versus more of a pure play. Um, you know, is it do, do you think their synergies between the businesses, um, you know, is it just a matter of pricing? And if you had the right pricing, you'd you'd look to get more Pure Play. You know, what, how do you think about kind of the portfolio composition? The company composition overall and ultimately how that attracts Equity Capital relative to the other healthcare companies out there.

Um, over.

And that is our number one priority to grow that by doing so both internally and through external investments we are increasing the growth rate of the enterprise, which we believe increases our return to shareholders.

Is Unified by the mega trend of longevity.

And we are we're going to continue leaning into that strategy, we're always evaluating the merits of.

All of our businesses all of our assets and we're open minded to considering portfolio changes.

And of course, the senior housing business caters to the over-80 population, which is large and growing. It is expected to accelerate in growth over the next decade; as I mentioned, it is projected to increase by 28% over the next 5 years. So, that's where we are leaning heavily into our.

Senior housing business. Um, and that is our our number 1 priority to grow that.

And we'll.

We will continue to be aggressive in looking for ways to create value for shareholders.

Thank you and then just as you think about that growth I think you said the first second and third priority is in the U S are you seeing different amount of competition for senior housing assets in the U S versus anything internationally.

To look at.

Well I mean senior housing that I would say a strong performing asset class, there's there's new capital entering the market we've seen more competition, we've seen a much bigger pipeline, though.

So we.

By doing so, both internally and through. External Investments. We are increasing the growth rate of the Enterprise, which we believe increases, our return to shareholders and we we're going to continue leaning into that strategy. We're always evaluating the merits of, you know, all of our businesses all of our assets. And we're open-minded to considering portfolio changes um and uh we'll continue to be aggressive and looking for ways to create value for shareholders.

It's not surprising that it would be more interest in the asset class given the.

The fundamentals.

So we really like our ability to compete.

As I mentioned the platforms designed to manage a large number of operators that's important because 75% of the sector is operated by operators that 50 or fewer assets. So if you're going to grow at scale in this.

Thank you. And then just as you think about that growth, I think you said the first second and third priority is in the US. Um, are you seeing different amount of competition, um, for senior housing Assets in the US versus anything internationally that that you do look at

Sector, you need to be all you need a platform that can manage multiple operators and we do that.

Well, I mean, you know, senior housing is a, obviously a strong performing asset class. There's there's new capital, you know, entering the market, we've seen more competition. We've seen a much bigger pipeline though. Um, so you know, we

Well as anybody and were positioned through that Oh, I platform as well as our transaction experience and.

you know, it's not surprising that that'd be more interesting in in the asset class given the

Track record and our financial strength and flexibility that has positioned us to continue to grow so we like our ability to compete whether it's the U S R or in other markets.

Thank you.

Thank you.

Our next question comes from the line of Richard Anderson Cantor Fitzgerald. Please go ahead.

The fundamentals. Um, but we really like our ability to compete. Uh, yeah. As I mentioned, the platform's designed, you know, to manage a large number of operators that's important because 75% of the sector is operated by operators at 50 or fewer assets. So if you're going to grow at scale in this um sector you need to be all you need a platform that can manage multiple operators and we do that um as well as anybody.

Thanks, Good morning.

So not to bring up a what was a sore subject at the time, but back in March you had this sort of surprise uptick in deaths caused some disruption in the sort of the transition to the following quarter.

And we're positioned through that um, through the oi platform as well as um, our transaction experience in.

And I'm wondering if that is sort of smoothed out over the course of 2025, whereas.

Um, track record and our financial strength and flexibility that has positioned us to continue to grow. So we like our our ability to compete. Um, whether it's the us or or in other markets,

Thank you.

Thank you.

It sort of slowed down hopefully.

The full year 2025 might look like a lot of other years and is that playing any role in your optimism in terms of sequential occupancy growth into 'twenty.

Our next question comes from the line of Richard Anderson. Cantor Fitzgerald, please go ahead.

Thanks uh, good morning.

So uh not to bring up a what was the source subject at the time? But, you know, back in March you had this sort of

The fourth quarter or is it sort of a normal pace now just wondering if that's playing a role at all.

Hi, Richard Justin.

Yes. So the bottom line is is that we never backed off our full year occupancy guidance. It was $2 70, the whole time, we alerted the market set too.

Uh huh.

It kind of it.

There are many change in the occupancy run rate, we had the key selling season ahead of US we've delivered on one of the best key selling seasons that we've had you can see it on page 12 in the in the deck, we had 230 basis points of growth within the key selling season best in the past four years.

Surprise uptick in, uh, deaths that that caused some disruption in their sort of the transition to the following quarter. Um, and I'm wondering if, if that is sort of smoothed out over the course of 2025, whereas, you know, it it it sort of slowed down hopefully, uh, where the, the full year 2025 might look like a lot of other years and is that playing any role in your optimism in terms of sequential occupancy, growth into 20 into the fourth quarter or is it sort of a normal Pace? Now just wondering if that's playing a role at all.

The third quarter.

It was a leader amongst.

Amongst the industry.

Versus neck and peers in terms of sequential occupancy growth that was driven by higher than move ins versus prior year. So the move in strength has been very strong the move outs have moderated and were growing occupancies. So it's old news.

And you know, we've stuck with $2 70, and we're delivering on it.

Okay fair enough.

Second question you.

You talked about a growing investment pipeline, which is great to hear but I am wondering about the finiteness of the external growth story here when I think about senior housing I don't know, maybe Theres 30 million apartment units in the United States, but is there 2 million senior housing I don't know and Youre certainly.

Buying as a group as Reits faster than product is being developed so do you what would you say is the timeline where you.

Intermittent change in in the occupancy, run rate. We had the key selling season ahead of us. We've delivered on 1 of the best key selling Seasons that we've had. You can see it on page 12 in the in the deck we had 230 basis points of growth within the key selling season. Best in the past 4 years. Um the third quarter um it was a leader um amongst the industry uh versus Nick and peers in terms of sequential occupancy growth that was driven by higher than move-ins versus prior year. So the moving strength has been very strong the move outs have moderated and we're growing occupancies. So it's old news.

Um, and you know, we've stuck with 270 and we're delivering on it.

Sort of getting to the point, where you have seen and considered what you kind of want to have and that we will start to see external growth start to sort of materially slow down, but you've done a good job in terms of acquiring into that market. So it's such that the the story transition is much more to an organic growth story still sort of drag.

Okay, fair enough. Um, second question. Um, you talked about a growing

<unk> off of all of this aging of the population, but more of an internal growth story, maybe a couple of years from now and less of an external growth story.

Rich.

Investment pipeline, which is, you know, great to hear. But I'm wondering about the finiteness of the external growth story here. When I think about senior housing, I don't know, maybe there's 30 million apartment units in the United States, but is there 2 million senior housing? I don't know. And you're certainly buying as a group as the REITs faster than product is being developed. So, do you, what what would you say is, you know the timeline where you've

We feel very confident about our ability to build on our investment momentum and to accelerate investment activity and quality you know U S. Senior housing for the foreseeable future and we're very happy as you mentioned that we.

We have a really outstanding internal growth story and.

You know very large and growing senior housing business.

And I would just say.

Really explicitly we're not even close to it.

Sort of getting to the point where you've seen and considered what you kind of want to have and that will start to see external growth start to sort of materially slow down, but you've done a good job in terms of acquiring into that market. So it's such that the, the story transitions much more to an organic growth story, still, sort of drafting off of all this aging of the population but more of a internal growth story, maybe a couple of years from now, and less of an external growth story. Thanks.

It seemed that the slowdown from an external standpoint.

The institutional ownership long term ownership is still in the mid teens in the in the sector and so you know you have a lot of private equity in friends and family equity to own assets that trade assets routinely.

And we anticipate participating in that those trades.

Okay, great. Thanks very much.

Thank you.

Uh Rich. You know, we feel very confident about our ability to build on our investment momentum and to accelerate investment activity in quality you know us senior housing for the foreseeable future and we're very happy as you mentioned that. Um, we have a, a really outstanding internal growth. Growth story in this, you know, very large and growing senior housing business.

Our next question comes from the line of medallion Okusanya from Deutsche Bank. Please go ahead.

Yeah, Hey, guys. This is Sam on for Tayo I Hope I didn't Miss this.

But can you guys provide an update on the go.

Our performance update on the 27 accidents that have been converted from triple net to shop.

Yeah sure Yeah, so you're referring to the transition the triple net to shop transition from Brookdale. We've had there's 45 total.

Yeah, and I would just say, you know, really explicitly, we're not even close to, um, seeing the the slow down from an external standpoint. You know, the the the institutional ownership long-term ownership is still in the mid teens in the, in the sector. And so, you know, you have a lot of private equity and friends and family Equity, that own assets, that trade assets routinely. Um, and, uh, we anticipate, uh, you know, participating in that those trades.

Okay, great. Thanks very much.

Thank you.

And those communities have performed really well year over year and.

And they've.

Our next question comes from the line of Omnia from Deutsche Bank. Let's go ahead.

Their NOI really is approximates the rent run rate now so you know that that was a good outcome.

And there is 27 to have that or have transitioned.

Yeah. Hey guys, this is Sam on Foreo. Um, I hope I didn't miss this, but can you guys provide an update on the performance of the 27 accents that have been converted from Triple at the shop?

As of October everything is going really well, we've had boots on the ground.

From Ventas team members and most importantly from the senior leadership amongst the operators to ensure that there's a smooth transition that's underway and there's a lot of enthusiasm.

Yeah, sure. Yeah. So you're referring to the, you know, the transition, the triple net to shop transition. From Brookdale, we've had, there's 45 in total. Yeah.

Um and you know, those communities have performed really well year over year. Um, and they've uh,

Around the attention that the communities are getting both from the new management, but also around the refresh capital that we're gonna be putting in to help better position, our communities and deliver occupancy growth over time.

um,

And sorry, what was the you said after since October <unk> been transitioned I think I understand theres 27 that transition so far.

Alright.

<unk> 45 should transition.

In the coming months.

Gotcha.

They're noi really is, you know, approximates the rent run right now, so, you know, that that was a good outcome. And there's 27 that have trans that are have transitioned um, you know, as of October, um, everything's going really well. We've had boots on the ground, um, from ventos team members and most importantly, from the senior leadership, amongst the operators to ensure that there's a smooth transition that's underway and there's a lot of enthusiasm.

Is it on my own thank you.

Sure. Thank you.

Our next question comes from the line of Juan Sanabria from BMO capital markets. Please go ahead.

Around the attention that the communities are getting, both from the new management and also around the refresh capital that we're going to be putting in to help better position the communities and deliver occupancy growth over time.

Hi, good morning.

Just hoping you could talk a little bit of just hoping you could talk a little bit about the independent living corner, you see kind of highlighted that as an outperformer. If you could just give us some color as to what's driving that and maybe as a subset of that how holiday TX holiday assets with the.

Um, and sorry. What was you said after since October? How many have been transitioned? I think I missed that. There's 27 that have transitioned so far and the remainder of the 45 should transition

in the coming months.

Got you and uh, I bet that's it on my end. Thank you.

Our holiday assets are performing as a part of that.

Sure, thank you.

Yeah. So.

Most of our independent living footprint in the U S is as you know.

Holiday, our former holiday communities.

Our next question comes from the line of 1 Sabria from BMO Capital markets. Please go ahead.

340 basis points of occupancy growth in the U S.

<unk> was stronger.

So there that was 390 basis points and so we've had really good.

Growth in that IL product.

Please that it's outperforming and.

As it is it.

<unk> has a long way to go to you know, it's part of that U S opportunity for occupancy growth and it's delivering and has a long runway. So.

Callers to, to what's driving that and maybe as a subset of that, how holiday uh, the the X holiday assets or the now, Adrian by holiday assets are performing as a part of that.

Really pleased with the performance.

And how is that.

The <unk> growth.

Outperformance, you've seen there impacted revpar growth.

Is there any impact in terms of.

The mix there and how does how should we think about that into 'twenty six versus what you've delivered year to date.

Yeah. So, you know, most of our independent living footprint in the US is is uh, you know, holiday or former holiday communities. We had 340 basis points of occupancy, growth in the US IL was Stronger. Um, so they were, that was 390 basis points. And so we've had really good, um, growth in that eel product, um, and uh, pleased that it's outperforming and, um, as it as it, um,

Yes.

Not going to get into 2026, but.

The IL growth.

Because it runs at a lower revpar.

Has a long way to go, too. You know, it's it's part of that us opportunity for occupancy growth and it's delivering and it has a long Runway. So we're really pleased with the performance.

And therefore, the outperformance in IL at a lower Rev for does cause a mix impact on the rep for metric.

So it does pull it down.

And it's a high class problem, because it means you're growing more occupancy.

And how is that the uh, the io growth in the, the outperformance you've seen their impacted Ripple growth? And is, is there any impact in terms of, um,

Higher and faster, but it happens to be in a product that has slightly lower rent.

The mix there. And how does how should we think about that into 26 versus what you've delivered year to date?

So.

That's all in the numbers.

And you know the goal will be to continue to grow with broad based performance across the whole platform and both in terms of occupancy and rate.

Yeah. So I'm not going to get into 2026 but um the eel growth um because it runs at a lower ref for

Thank you.

Okay.

Our next question comes from the line of John Quealy chose ski from Wells Fargo. Please go ahead.

and therefore the outperformance in il at a lower ref for does cause a mix impact on the ref for metric. Um, so it does pull it down.

Hi, good morning out there.

Justin.

Last quarter, we discussed kind of the building blocks of your higher occupied assets at at that margin profile that we talked about earlier on the call, but if we look at your Canadian portfolio, you're at mid <unk> occupancy and we would kind of expect to see that that sort of lay out on margin or Ed.

Um, and it's a high-class problem, you know, because it means you're growing more occupancy, higher and faster. But it happens to be in a product that has slightly lower rent.

Um so that's that's all in the numbers. Um, and you know the goal will be to continue to grow with broad-based performance. You know, across the whole platform and both in terms of occupancy and rate.

Thank you.

And ran for I'm, just curious why that same store NOI numbers, maybe a little lower than we would expect to give you. The building blocks that you walked us through I think it would probably get us to mid teens and we're seeing seven for this quarter is there anything to point out there.

Thanks.

All right, the next question comes from the line of John Koski from Wells Fargo. Please go ahead.

Yes, so the Canadian portfolio has.

Very very high occupancy I mean, it and it has a there are some limitations around.

How much and where you can push pricing there's also.

Hi, good morning out there. Uh, Justin and uh last quarter, we discussed kind of the building blocks of your higher occupied assets and, and that margin profile that we talked about earlier on the call. But if we look at your Canadian portfolio, you're at mid 90s occupancy and we would kind of expect to see that that sort of layout on on margin or and uh,

A mix issue that happens at times, we have a sunrise product, that's very high Revpar and if there's any volatility in those 12 communities that can impact the operating metrics.

But we would really kind of view, Canada as a you.

Uh, and Rev 4, I'm just curious. Why are those same-store AI numbers maybe a little lower than we would expect, given the building blocks that you walked us through? I think it would probably get us to mid-teens, and we're seeing 74 this quarter. Is there anything to point out there?

Uh huh.

High single digit grower I mean, that's what it's been for US. It's the reason why we're not looking to expand in Canada.

Just don't have the same organic NOI growth opportunity in Canada, so, but it's solid and its a good good opportunity the U S opportunity is different.

Yeah, so the the Canadian portfolio has um, you know, very, very high occupancy. I mean it and it has a, there's some limitations around, um, where how much, and where you can push pricing. There's also um,

The opportunity to really deliver a better revpar opex poor spread in the U S over time.

You'd have less limitations on the on the top.

Top end in terms of where you can push rent were located in markets that have high income and wealth demographics.

A mix issue that happens at times. We have a sunrise product that's very high risk for us. And if there's any volatility in those 12 communities, it can impact the operating metrics. Um, but we would really kind of view Canada as a, um, you know, a.

Various strong supply and demand in the U S. As well so we do like that opportunity better and would expect better growth in the U S.

High single digit grower. I mean, that's what it's been for us. Uh it's a reason why we're not looking to expand in Canada.

Okay that was very helpful. Thank you and then my second question is just on the acquisition pipeline you know a couple of times on the call. You said you have clear visibility on the ability to accelerate your acquisition cadence.

Are there any near term risks that you're monitoring that could possibly sort of uproot that thesis or is it pretty reasonable for investors to start expecting higher investment volumes and 26% and 25.

Well I mean structurally we don't see anything limiting US now we have the track record we have the platform we have the cost of capital and we have momentum.

Um, you just don't have the same organic noi growth opportunity in Canada, um, so but it's solid, you know, and it's a good good opportunity. The US opportunity is different. Um, you have the opportunity to really deliver a better rev 4 op Opex for spread in the US over time. Um, you have less limitations on the, on the top end in terms of where you can push rent, we're located in markets that have the high income and wealth demographics. Um, in very strong supply and demand in the US as well. So we do like that opportunity better and would

Expect better growth in the US.

So all of that's working together to have this accelerated investment pace that we've been delivering.

And well well.

Tension is to continue that.

Very helpful. Thank you.

Okay.

Our next question comes from the line of Ronald Camden from Morgan Stanley. Please go ahead.

Okay. That was very helpful. Thank you. And then my second question is just on the acquisition pipeline, you know, a couple times on the call you've said you you have clear visibility on the ability to accelerate your acquisition Cadence. Um, are there any near-term risks that you're monitoring? That could possibly sort of uproot that thesis or is it pretty reasonable for investors to start expecting? You know, higher investment volumes in 26 and 25?

Yeah.

Arnold Your line now open.

Go ahead. Thank you.

Great just two quick ones from me just going back to the operator conversation a little bit.

Well, I mean that, you know, structurally, we don't see anything limiting us now. Um, we have the track record, we have the platform, we have the cost of capital, and we have momentum. Uh, so all of that's working together to have this accelerating investment Pace that we've been delivering on

You've added some more operators now you've had a lot of experience working with different operators. I was wondering if you could just talk through in terms of their ability to use data to use the platform.

and uh, we'll we'll

tension is to continue that.

Very helpful. Thank you.

As well as our capacity to take on more facilities like where all of these operators in that journey right is it early innings of the mineral acres as a leading earnings just trying to get a sense of the potential efficiency and upside potential over the next three to five years. Thanks.

Our next question comes from the line of Ronald. Camden from Morgan Stanley. Please go ahead.

Ronald, your line is now open. Please go ahead. Thank you.

Great. Just 2, quick ones for me, just going back to the operator conversation a little bit.

That's a great question.

So let me start with this.

Every single one of our operators and their communities have end to end tech all of them do it's an industry standard.

And what that means is that they have tech in place for safety monitoring care in compliance Med administration.

Managing their CRM foodservice says maintenance delivery all of that is is managed through tech.

Um, you know, you've added some, some more, some more operators. Now you've had a lot of experience working with different operators was wondering. If you could just talk through in terms of their ability to use data, use the platform, um, as as well as our capacity to take on more facilities. Like, where are all these operators? In that Journey right? Is it early Innings, is it middle Innings? Is it leading Innings just trying to get a sense of the potential efficiency and upside potential over the next 3 to 5 years? Thanks?

And most of it is AI.

Enhanced style.

That's a great question. Um, so let me start with this.

So that's the starting point is that.

Believe it or not technology is widely used in senior housing.

And certainly our operators are deploying.

Every single 1 of our operators and their communities have end-to-end Tech, all of them do, it's an industry standard.

Deploying that technology to help deliver more efficient and also most importantly high quality care and service delivery to.

To the residents and to manage the business better.

What's really powerful about the Oi platform is that we designed it to plug into any system.

It doesn't matter what they are using.

The CRM side and from a financial side to get the operating metrics and the financial metrics. We need we designed our platform to be flexible we pulled the data in.

And then we can access and utilize the data and the Oi platform and the powerful aspect is that we then deliver that back to the operators.

Um, and what that means is, is that they have Tech in place for safety, monitoring care and compliance met Administration managing their CRM Food Services, maintenance delivery. All of that is, is managed through Tech. Um, and and most of it is AI, um, um, enhanced now. Um, so that's the starting point is that the Believe It or Not technology is widely used in senior housing and, uh, certainly our operators are, are deploying that technology to help deliver more efficient. And also, most importantly, high quality, and care, and Service delivery, um, to the residents and, to manage the business better.

And what we're doing and doing so is articulating opportunities to improve across all the key metrics revenue and expenses.

What's really powerful about the oi platform is that we designed it to plug into any system.

And in a very targeted way and we get down literally to the unit level.

And we have a price strategy sales strategies.

Expense efficiency opportunities are identified and a granular detail in a way that the operators can really take it and deliver our plan.

And to improve performance and so it's a very collaborative effort.

It doesn't matter what they're using on the CRM side and from a financial side to get the operating metrics and the financial metrics, we need, we designed our, our platform to be flexible, we pulled the data in, um, and then we can access and utilize the data in the platform and the powerful um aspect is that that we then deliver that back to the operators.

It's data rich, but in a very focused consumable way and that's how the Oi platform plugs in.

And it's.

It's only again again much better you know one of the things that you hear me talk about the best is yet to come and that's referring to a number of fronts and one of those fronts as is the ability to execute on performance to the Oi platform.

And what we're doing in doing so is articulating opportunities to improve across, all the key metrics revenue and expenses, um, and in a very targeted way and we get down literally to the unit level, um and we have price strategy, sales strategies.

It will only get better over time.

If, um, expense efficiency opportunities are identified in granular detail, in a way that the operators can really take it and deliver a plan.

Really helpful.

And then my second question was just I wanted to ask the competition question sort of a different way because we've been thinking a lot about that as well because when I look at sort of low to mid teens Unlevered IRR I think the demographics trends are clear.

Into improved performance. And so it's a very collaborative effort. Um, it's data rich but in a very focused consumable way and that's how the oi platform you know plugs in. Um and it's uh,

If you could be a little bit more specific in terms of why do you think private equity specifically has not come into the space right is it that theyre here and there is enough product to go out.

Like what are the reasons at this pool of capital is not coming for these sort of low to mid teens.

It's only going to get much better, you know, 1 of the things that you hear me talk about is The Best Is Yet To Come and that's referring to a number of fronts and 1 of those fronts is is the ability to execute on performance to the oi platform. Um, we'll only get better over time.

Teens, Unlevered IRR with a good supply demand backdrop, just what are you hearing.

So I mean, there there is private equity in the space I mean, they quite frankly, they own much more of the sector than the public companies do and so they are in the space, but in terms of and when I say that I'm, referring to private equity and friends and family equity.

The the reality is though you know if you are an institutional private equity player and you want to enter the space and scale everything I've described that we do that that you don't flip a switch and just make that happen and you know what the ideal it seems like the ideal private equity investment it would be a lineup with a large scale operations.

Really helpful. Um, and then my, my second question was just, I wanted to ask the competition question, sort of a different way, because we've been thinking a lot about that as well, because when I look at sort of low to mid teens and levered irr, I think the demographics Trends are clear. I mean, I think if you can be a little bit more specific in terms of, why do you think private Equity, specifically has not come into the space, right? Is it that they're here? And there's enough product to go out which is like

Like what are the reasons that this pool of capital is not coming for these sort of low to mid digit. Teens unlevered irr with a good Supply, demand backdrop, just, what are you hearing? Thanks.

At her and help that operator to improving and expand and grow.

But to grow in this space you are usually not gonna find may those opportunities because it's a collection of smaller operators in senior housing as I mentioned and so our platforms designed to buy communities operated by <unk>.

So I mean there there is private equity in the space. I mean they quite frankly, they own much more of the sector than than the public companies do and so they're in the space. But in terms of and when I say that, I'm referring to private equity and friends and family Equity. Um, the the reality is though, you know, if you're an Institutional private Equity player and you want to enter the space and scale,

Multiple multiple operators, it's 40 and growing.

And I do think that creates a barrier to entry issue for for some private equity.

Having said that I mean there.

Expect that there'll be plenty of interest from a variety of capital sources and in the sector given the strong fundamentals.

Thanks, so much.

Your next question comes from the line of Michael Strike from Green Street. Please go ahead.

Thanks, and good morning.

Can you quantify what the potential opportunity for triple net to shop transition looks like within the current portfolio. How many more assets do you expect the transition over the next call. It six to 12 months or so outside of the Brookdale portfolio and what's a rough range of NOI upside you typically underwrite on those.

Your housing as I mentioned. And so our platform is designed to buy communities operated by many multiple multiple operators and it's 40 and growing. Um, and I do think that creates a barrier to entry issue for, for some private Equity. Um, having said that, I mean there, you know, we would expect that that they'll be plenty of interest from a variety of capital sources in in the sector, given the the strong fundamentals.

Thanks so much.

Yeah.

Yes, I mean, we've had.

Quite frankly, most of that plan has been executed you know we had 150 already that we've lost that we've moved into shop from Triple net that's created that awesome occupancy upside opportunity, we're seeing in the U S.

Your next question comes from the line of Michael Stroh from Green Street briefs. Go ahead.

We've had you know we do have some very high performing leases that are left.

One of those.

Brookdale I mentioned that.

There, we don't have any plans to do anything different with that portfolio. There's a there's a couple of other smaller ones one of which we just made an acquisition you know through whenever our tenants out and bought some new really high performing high quality assets as part of that pipeline and move those to shop and so.

Thanks and good morning. Um, can you quantify what the potential opportunity for triple net to shop? Transitions looks like within the current portfolio? How many more assets do you expect to transition over the next call at 6 to 12 months or so outside of the Brookdale portfolio and what's a rough range of noi outside? You typically underwrite on those

Yeah, I mean we've had um,

That was a way to leverage that relationship.

But really the plan at this point is to deliver on the organic growth opportunity that is embedded in our portfolio through all those efforts we've had in place over the past few years and continue to grow externally.

Quite frankly, most of that plan's been executed, you know, we had 150 already that we've plus that we've moved into shop from triple net. That's created that awesome occupancy upside opportunity. We're seeing in the US. Um we've had you know, we do have some very high performing leases that are left. Um 1 of those is with Brookdale. I mentioned that um there we don't have any plans to

Got it.

And then maybe one on the research business can you just quantify the magnitude is bad debt during the quarter and are these one time rent deferrals or more permanent rate cuts. The tenants just just help us understand how long the credit issues during the quarter, we actually weigh on NOI growth in that business.

Yeah. This is Pete thanks for the question.

You know the typical character of.

Doing anything different with that portfolio. There's a, there's a couple other smaller ones 1 of which we just made an acquisition, you know, through 1 of our tenants and and bought some new really high performing high-quality assets as part of the pipeline and move those to shop. And so um, that was a way to to leverage that relationship. Um but you know, really the the plan at this point is to deliver on the organic growth opportunity. That is embedded in our portfolio. Through all those efforts. We've had in place over the past few years and continue to grow externally.

Some of the restructurings, we've done to give people additional runway is to.

You know initially reduce their rents have climbed back up he has some participation opportunities later as their business improves and so that's the playbook, we've been running sort of working well and you know it's hard to say when that's going to end, but we're pretty pleased with the results.

Got it. Um then maybe 1 on the research business can you just quantify the magnitude of bad debt during the quarter? And are these 1-time rent deferrals or more permanent? Right cuts to tenants just just help us understand how long the credit issues during the quarter. May actually weigh on noi growth in that business.

Yeah, this is Pete. Uh, thanks for the question.

Got it thank you.

um, you know, the, the typical character of, um,

Our next question comes from the line of Michael Mueller from JP Morgan. Please go ahead.

some of the restructurings we've done to give people additional Runway is to, um,

Yes, Hi, busy day I'll, just keep it to one here.

As the aging population surge is do you expect to see a widening of performance between.

Al memory care and the younger population IL portfolio.

I don't want to make sure you understand that.

You know, initially reduce their rents, they have a climb back up and they have some participation opportunities later as their business improves. And so, that's a Playbook, we've been running, it's been working well and, um, you know, it's hard to say when it's going to end but we're pretty pleased with the results.

Thank you so so.

Got it. Thank you.

So the 80.

Plus population the baby Boomers start turning 80 next year, that's really our customer base in senior housing.

Our next question comes from the line of Michael Muller from JP Morgan. Please go ahead.

The truth is that both al and IL.

Ages are relatively consistent with each other and so.

So we would expect those to be benefited by this broad based demand, it's really just a different type of resident with.

Yeah, hi uh busy day. I'll just keep it the 1 here. Um as the 80 plus population surges, do you expect to see a widening of performance between Al memory care and the younger population IL portfolio?

Whatever type of needs that they have when they move into senior housing and.

so, the 80

The age.

Relatively consistent between the two you can get a little bit younger skewing in the independent living.

Which is one of the benefits of that asset class, but overall those are going to be benefiting from this broad base and growing demand.

plus population, the Baby Boomers start, turning 80 next year. That's really our customer base and senior housing. Um, the truth is that both Al and iil, uh, ages are relatively consistent with each other and so, um,

Got it okay. Thank you.

Thank you.

Okay.

I will now turn the call back over to Debra Cafaro, Chairman and CEO of Ventas for closing remarks.

Alright, Dan Thanks, and I want to thank everyone, who joined us on a busy day for your interest in and support of Ventas.

We wish you and yours had a good holiday season, and we look forward to seeing you soon thank you.

So we would expect both to be benefited by this broad-based demand. It's really just a different type of Resident with you know whatever type of needs that they have when they move into senior housing and uh uh the age is a is relatively consistent between the 2. You can get a little bit younger skewing in the independent living um which is 1 of the benefits of that asset class. But overall both are going to be benefiting from this broad-based and growing demand.

Okay, thank you.

Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Thank you.

Call back over to Deborah Cafaro, chairman, and CEO of ventas for closing remarks.

When yours is a good holiday season and we look forward to seeing you soon. Thank you.

Ladies and gentlemen, that concludes today's call, thank you all for joining. You may now disconnect