Summary of Ventas, Inc. Conference Call Company Overview - **Company**: Ventas, Inc. (NYSE: VTR) - **Industry**: Healthcare Real Estate Investment Trust (REIT) - **Market Capitalization**: Over $30 billion [4] - **Focus**: Intersection of healthcare and real estate, targeting a large and aging demographic [4][5] Core Insights and Arguments - **Demographic Demand**: Ventas benefits from strong and growing demographic demand for its assets, which is crucial for future growth [9][12] - **Organic Growth Opportunity**: The company is at the beginning of a significant organic growth cycle, with expectations for senior housing operating portfolio growth on a same-store basis projected between 15% to 21% [9][12] - **NOI Recovery**: Ventas aims to recover $100 million of the $545 million in Net Operating Income (NOI) lost during the pandemic, with a current recovery of $72 million [12][13] - **Occupancy Rates**: Pre-pandemic occupancy was 88%, with expectations to exceed this level due to favorable supply-demand fundamentals [13] - **Operational Insights (OI)**: Ventas is leveraging its OI initiative to enhance operator performance through analytics and operational best practices [14][15] Key Performance Metrics - **NOI Recovery**: $545 million lost during the pandemic, with a target to recover $100 million in 2023 [12] - **Occupancy Rates**: Aiming to exceed pre-pandemic levels of 88%, with potential to reach the 90s [13] - **Contract Labor**: A 70% reduction in contract labor costs has been achieved, with expectations for continued improvement [18] Market Position and Strategy - **Portfolio Composition**: 60% of the core portfolio is independent living, which has a higher margin and less reliance on labor [37] - **External Growth**: Ventas is focused on senior housing for external growth opportunities, expecting the best unlevered returns in this sector [43][44] - **Regulatory Environment**: The company is less involved in regulatory discussions, focusing instead on growth and profitability [41] Development and Redevelopment Initiatives - **University-Based Life Science Business**: Ventas has successfully developed a university-based life science business, which is a key growth area [47] - **Redevelopment Opportunities**: The company is accelerating investments in redevelopment within senior housing, targeting high-return projects [50] Financial Outlook - **Guidance for 2023**: The company expects to maintain its NOI and FFO levels from 2022, with potential for upside [65] - **Loan Portfolio**: Ventas has a loan book of approximately $480 million, primarily property-secured, with expectations for recovery in NOI post-COVID [63][64] Additional Insights - **Market Dynamics**: There is a disconnect between public and private market price expectations, which is expected to resolve in the coming months [39] - **Operational Excellence**: The medical office business has shown strong performance, with record results and high occupancy rates [60] Conclusion - Ventas is positioned for significant growth driven by demographic trends, recovery from pandemic losses, and strategic operational improvements. The focus on senior housing and university-based life science sectors, combined with a diversified portfolio, provides a robust foundation for future performance.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2022 OR (Address of Principal Executive Offices) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 1-10989 Ventas, Inc. (877) 483-6827 (Exact Name of Registrant as Specified in Its Charter) (State or O ...

Financial Data and Key Metrics Changes - The fourth quarter normalized FFO was $0.73 per share, reflecting strong performance driven by a 19% growth in SHOP and record performance in Medical Office Buildings [6][28] - Total company and SHOP same-store cash NOI growth was 8.5% and 19.1% respectively for the fourth quarter [28] - The company projects full year normalized FFO guidance representing 5% growth at the midpoint for 2023 [12][33] Business Line Data and Key Metrics Changes - The SHOP portfolio experienced a 19.1% growth in NOI year-over-year, with U.S. growth at 22.2% and Canada at 11.7% [18][19] - The Medical Office Buildings (MOB) business achieved a same-store cash NOI growth of 3.8% for fiscal year 2022, with year-end occupancy at 92% [29] - Research and Innovation (R&I) also posted a 5.1% growth in same-store cash NOI for the full year 2022 [29] Market Data and Key Metrics Changes - Leading indicators in the U.S. showed strong demand with leads at 120% of 2019 levels and move-ins at 101% [20] - Canada maintained high occupancy at 95% and demonstrated a 12% growth in the fourth quarter [64][29] - The company anticipates a significant occupancy ramp throughout 2023, supported by an aging demographic and muted new supply [24][87] Company Strategy and Development Direction - The company is focused on a multiyear growth and recovery cycle led by SHOP, supported by favorable supply-demand fundamentals [8][12] - Strategic initiatives include capital recycling, with $1.2 billion in new investments in 2022, and a commitment to ESG leadership [10][11] - The company aims to optimize its portfolio through the Ventas OI platform and enhance investment activities across asset classes [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand fundamentals for senior housing, driven by the growing over-80 population [7][8] - The macroeconomic outlook includes expectations of slowing economic growth and moderating inflation, which the company believes will benefit its operations [13] - Management anticipates a return to 2019 performance levels in the SHOP portfolio, with potential for further growth beyond that [9][51] Other Important Information - The company has reduced its 2023 maturities to a manageable level, with only 4% of consolidated debt due in 2023 [31] - The company has significant liquidity of $2.4 billion at year-end 2022, enhancing its financial flexibility [32] - The company is committed to achieving net zero operational carbon emissions by 2040 [11] Q&A Session Summary Question: Background on the Santerre Health Investors loan allowance - Management explained that the $20 million allowance was due to timing issues related to asset recovery from COVID and rising interest rates, but they remain current on interest payments [39] Question: Magnitude of CapEx investments in SHOP - Management indicated that they are investing about $1 million per property for 100 communities undergoing refreshes, which will be spread over time and is expected to enhance performance [41][42] Question: Insights on leading indicators and SHOP NOI opportunity - Management noted strong lead volumes and move-ins, with expectations for continued improvement in occupancy and pricing power [49][50][87] Question: Differences in growth between legacy and new properties - Management confirmed that all operators are contributing to growth, with new senior properties also playing a significant role in the overall performance [54][55] Question: Expectations for RevPOR growth - Management indicated that RevPOR growth is expected to be around 6%, driven by strong in-house rent increases and care pricing [100]

2022 Nareit REITworld Investor Presentation November 15-16, 2022 Non-GAAP Financial Measures & Cautionary Statements 2 Certain of the information contained herein, including certain operating and clinical information, such as patient and resident pricing and rate information, lead and move-in data and number of confirmed cases of COVID-19, has been provided by our operators and we have not verified this information through an independent investigation or otherwise. We have no reason to believe that this inf ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Ventas, Inc.'s unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes for the periods ended September 30, 2022 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $24.30 billion, driven by reduced real estate investments, while liabilities slightly increased and total equity declined Consolidated Balance Sheet Summary (in thousands) | Account | As of Sep 30, 2022 | As of Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$24,300,411** | **$24,717,786** | | Net real estate investments | $22,355,016 | $22,870,429 | | Cash and cash equivalents | $145,146 | $149,725 | | **Total Liabilities** | **$13,609,704** | **$13,491,743** | | Senior notes payable and other debt | $12,210,984 | $12,027,544 | | **Total Equity** | **$10,431,912** | **$10,945,760** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2022 total revenues increased to $1.04 billion, but net income attributable to common stockholders significantly declined to $1.3 million due to lower gains on real estate dispositions Q3 2022 vs Q3 2021 Income Statement Highlights (in thousands) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Total Revenues | $1,037,276 | $976,078 | | Net Income | $3,063 | $62,774 | | Net Income (loss) attributable to common stockholders | $1,256 | $60,680 | | Diluted EPS | $0.00 | $0.16 | Nine Months 2022 vs 2021 Income Statement Highlights (in thousands) | Metric | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | Total Revenues | $3,077,768 | $2,805,563 | | Net Income | $2,453 | $95,664 | | Net Income (loss) attributable to common stockholders | $(2,428) | $89,862 | | Diluted EPS | $(0.01) | $0.24 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $852.9 million, investing activities remained stable, and financing cash outflow significantly decreased due to lower debt repayments Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $852,910 | $760,315 | | Net cash used in investing activities | $(725,321) | $(716,343) | | Net cash used in financing activities | $(124,956) | $(299,612) | | **Net (decrease) in cash** | **$2,633** | **$(255,640)** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover business segments, accounting policies, credit risk, acquisitions, debt structure, and segment performance, including operations across Triple-Net, SHOP, and Office segments - Ventas operates through three reportable business segments: triple-net leased properties, senior housing operating portfolio (SHOP), and office operations[30](index=30&type=chunk) - As of September 30, 2022, the company's three largest tenants/operators by property count are Brookdale Senior Living (121 properties), Ardent Health Partners (30 properties), and Kindred Healthcare (29 properties); Atria and Sunrise are the largest managers for the SHOP portfolio[31](index=31&type=chunk)[32](index=32&type=chunk) - During the nine months ended September 30, 2022, the company acquired **22 properties** for an aggregate purchase price of **$445.9 million**[104](index=104&type=chunk) - The company recognized impairments of **$55.0 million** for the nine months ended September 30, 2022, a significant reduction from the **$173.0 million** recognized in the same period of 2021[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operations, and liquidity, covering COVID-19 impacts, investment activities, capital structure, and detailed performance analysis by SHOP, Office, and Triple-Net segments - During Q3 2022, Ventas received **$20.2 million** in grants from the Provider Relief Fund for its SHOP segment to mitigate losses from COVID-19[180](index=180&type=chunk) - As of September 30, 2022, the company had approximately **$2.5 billion** in liquidity, including undrawn capacity on its revolving credit facility and cash on hand, net of commercial paper borrowings[180](index=180&type=chunk) - In June 2022, the company replaced a **$200.0 million** unsecured term loan due 2023 with a new **$500.0 million** unsecured term loan that matures in 2027[180](index=180&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q3 2022 total NOI increased by 3.0% to $465.2 million, primarily driven by a 61.5% surge in SHOP NOI, despite declines in Triple-Net and Office segments Q3 2022 vs Q3 2021 Net Operating Income (NOI) by Segment (in thousands) | Segment | Q3 2022 NOI | Q3 2021 NOI | % Change | | :--- | :--- | :--- | :--- | | SHOP | $168,611 | $104,380 | 61.5% | | Office operations | $135,316 | $137,622 | (1.7)% | | Triple-net leased properties | $146,359 | $178,111 | (17.8)% | | **Total NOI** | **$465,211** | **$451,811** | **3.0%** | Nine Months 2022 vs 2021 Net Operating Income (NOI) by Segment (in thousands) | Segment | Nine Months 2022 NOI | Nine Months 2021 NOI | % Change | | :--- | :--- | :--- | :--- | | SHOP | $494,812 | $326,340 | 51.6% | | Office operations | $409,873 | $410,177 | (0.1)% | | Triple-net leased properties | $439,724 | $487,962 | (9.9)% | | **Total NOI** | **$1,384,198** | **$1,298,299** | **6.6%** | - The increase in SHOP NOI was driven by acquisitions (primarily New Senior), positive occupancy trends, and higher HHS grants, partially offset by inflationary impacts on operating expenses[194](index=194&type=chunk) - The decrease in Triple-Net NOI was primarily due to rental income from communities that were transitioned to the SHOP portfolio or sold prior to Q3 2022[202](index=202&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) Ventas maintains liquidity through cash flows, debt/equity issuances, and its $2.75 billion revolving credit facility, with $2.7 billion undrawn as of September 30, 2022 - Principal sources of liquidity include cash from operations, debt/equity issuances, the unsecured revolving credit facility, commercial paper program, and asset sales[247](index=247&type=chunk) - The company has a **$2.75 billion** unsecured revolving credit facility maturing in January 2025, with **$2.7 billion** undrawn as of September 30, 2022[251](index=251&type=chunk)[252](index=252&type=chunk) - The company participates in a **$1.0 billion** "at-the-market" (ATM) equity offering program, with the full amount remaining available as of September 30, 2022[257](index=257&type=chunk) [Cash Flows](index=57&type=section&id=Cash%20Flows) Nine-month operating cash flow increased by $92.6 million to $852.9 million, investing cash flow remained stable, and financing cash outflow decreased by $174.7 million Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $852,910 | $760,315 | $92,595 | | Net cash used in investing activities | $(725,321) | $(716,343) | $(8,978) | | Net cash used in financing activities | $(124,956) | $(299,612) | $174,656 | [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Ventas faces market risk from interest rate fluctuations on its $1.4 billion variable-rate debt and foreign currency exposure from its UK and Canadian operations - The company is exposed to market risk from interest rates on its variable rate debt and foreign currency fluctuations from its UK and Canadian operations[279](index=279&type=chunk)[280](index=280&type=chunk)[290](index=290&type=chunk) - As of September 30, 2022, total debt was **$12.3 billion**, with **$10.9 billion (88.5%)** at fixed rates and **$1.4 billion (11.5%)** at variable rates[285](index=285&type=chunk) - A hypothetical **100 basis point increase** in interest rates on the **$1.4 billion** of variable-rate debt would increase annual interest expense by approximately **$14.1 million**[288](index=288&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[291](index=291&type=chunk) - No material changes were made to the internal control over financial reporting during the third quarter of 2022[292](index=292&type=chunk) [PART II—OTHER INFORMATION](index=64&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings or significant developments in previously reported cases were identified - There have been no new material legal proceedings or material developments in existing proceedings since the 2021 Annual Report[295](index=295&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No significant new risk factors were identified during Q3 2022 compared to prior disclosures - No significant new risk factors were identified in Q3 2022[296](index=296&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 32 shares at $52.46 each during Q3 2022, primarily for tax withholding on vested employee restricted stock - During Q3 2022, the company repurchased **32 shares** of common stock at an average price of **$52.46 per share**; these were shares withheld to cover taxes on vested restricted stock for employees[298](index=298&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and financial data in XBRL format - Exhibits filed include CEO/CFO certifications (31.1, 31.2, 32.1, 32.2) and financial statements formatted in Inline XBRL (101)[301](index=301&type=chunk)

Financial Data and Key Metrics Changes - Normalized FFO per share was $0.76, consistent with forecasts, with a 13% growth in SHOP and a nearly 5% total company year-over-year same-store cash NOI growth [9][40] - The normalized FFO excluding HHS grants grew 3% from the previous year [9] - The company expects normalized FFO guidance of $0.71 at the midpoint for Q4, representing a 4.5% growth compared to Q4 2021 [11][40] Business Line Data and Key Metrics Changes - Same-store average occupancy increased by 260 basis points to 84.7% [22] - SHOP NOI grew 13% year-over-year, with the U.S. leading at 17.4% and Canada at 5.9% [21] - Same-store SHOP revenue grew nearly 9% year-over-year, driven by a 5.4% increase in RevPOR, the strongest in the last 10 years [22][23] Market Data and Key Metrics Changes - The company reported that leads as a percentage of 2019 levels were at 109%, move-ins at 107%, and move-outs at 98% [25][54] - The medical office same-store occupancy is now at 91.8%, having increased year-on-year for five consecutive quarters [36] Company Strategy and Development Direction - The company is focusing on life science, research, and innovation, with $2.3 billion in R&I projects recently delivered and in progress [12] - The company is expanding its differentiated life science research and innovation investment business, with significant projects underway [13][15] - The Ventas Investment Management platform has over $5.5 billion in AUM and is expected to generate recurring revenue streams [16][17] Management's Comments on Operating Environment and Future Outlook - Management believes they are at the start of a multi-year recovery and growth period in senior housing, driven by improving supply-demand fundamentals [10][19] - The company is experiencing pricing power and expects continued margin expansion despite macroeconomic challenges [19][80] - Management expressed confidence in the growth opportunity in the senior housing business, supported by strong demographic demand [34] Other Important Information - The company has $2.5 billion in available liquidity, with 2023 consolidated debt maturities and amortization at $500 million [39] - The company is not expecting to receive any HHS grants in Q4 [43] Q&A Session Summary Question: Discussion on rate and RevPOR - Management noted that 7% of units eligible for increases were pulled forward, with Sunrise targeting around 9% [48] Question: REITs performance and move-ins - Management explained that move-ins were up 4% on an absolute basis, despite a slight decline in leads [53] Question: Annual rate increases and resident pushback - Management indicated that the process for rate increases is well-communicated, and early feedback has been positive [61] Question: Move-out levels and trends - Management acknowledged that move-outs are at 98%, which is elevated but not indicative of a long-term trend [63][104] Question: Private market pricing changes for life science and MOBs - Management stated that the life science market continues to have tight cap rate expectations, while MOBs are still in a price discovery period [67] Question: Length of stay and its impact - Management confirmed that length of stay has remained stable and consistent with pre-pandemic levels [73] Question: SHOP occupancy guidance and COVID impact - Management indicated that the fourth quarter guidance considers historical seasonal impacts and current vaccination status [100][101]

Third Quarter 2022 Business Update November 3, 2022 Non-GAAP Financial Measures & Cautionary Statements 2 Certain of the information contained herein, including certain operating and clinical information, such as patient and resident pricing and rate information, lead and move-in data and number of confirmed cases of COVID-19, has been provided by our operators and we have not verified this information through an independent investigation or otherwise. We have no reason to believe that this information is i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM____________TO____________ Commission file number: 1-10989 Ventas, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 61-1055020 (State or Oth ...

Ventas, Inc. (NYSE:VTR) Q2 2022 Earnings Conference Call August 5, 2022 10:00 AM ET Company Participants BJ Grant - SVP of Investor Relations Debra Cafaro - Chairman and CEO Justin Hutchens - Executive Vice President, Senior Housing Robert Probst - Chief Financial Officer John Cobb - EVP and Chief Investment Officer Peter Bulgarelli - Executive Vice President, Office and President and Chief Executive Officer, Lillibridge Healthcare Services Conference Call Participants Steve Sakwa - Evercore ISI Joshua Den ...

PART I—FINANCIAL INFORMATION Presents Ventas, Inc.'s unaudited consolidated financial statements and management's discussion and analysis for the first quarter [Item 1. Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents Ventas, Inc.'s unaudited consolidated financial statements for Q1 2022 and 2021, covering balance sheets, income, equity, and cash flow statements, with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202022%20and%20December%2031%2C%202021) Presents Ventas, Inc.'s consolidated balance sheets as of March 31, 2022, and December 31, 2021, detailing assets, liabilities, and equity | Metric | As of March 31, 2022 (in thousands) | As of December 31, 2021 (in thousands) | | :--------------------------------- | :----------------------------------- | :------------------------------------ | | Total Assets | $24,950,107 | $24,717,786 | | Total Liabilities | $13,843,732 | $13,491,743 | | Total Equity | $10,792,690 | $10,945,760 | - Net real estate property increased from **$21,816,838 thousand** at December 31, 2021, to **$21,982,221 thousand** at March 31, 2022[9](index=9&type=chunk) - Senior notes payable and other debt increased from **$12,027,544 thousand** at December 31, 2021, to **$12,413,743 thousand** at March 31, 2022[9](index=9&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202022%20and%202021) Presents Ventas, Inc.'s consolidated statements of income for the three months ended March 31, 2022 and 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total Revenues | $1,017,554 | $910,291 | | Total Expenses | $979,638 | $965,819 | | Net Income (Loss) | $40,592 | $(55,398) | | Net Income (Loss) Attributable to Common Stockholders | $38,732 | $(57,209) | | Basic EPS | $0.10 | $(0.15) | | Diluted EPS | $0.10 | $(0.15) | - Total revenues increased by **$107,263 thousand (11.8%)** from $910,291 thousand in Q1 2021 to $1,017,554 thousand in Q1 2022[12](index=12&type=chunk) - The company swung from a net loss of **$(55,398) thousand** in Q1 2021 to a net income of **$40,592 thousand** in Q1 2022[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202022%20and%202021) Presents Ventas, Inc.'s consolidated statements of comprehensive income for the three months ended March 31, 2022 and 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Income (Loss) | $40,592 | $(55,398) | | Total Other Comprehensive Income | $9,135 | $4,773 | | Comprehensive Income (Loss) | $49,727 | $(50,625) | | Comprehensive Income (Loss) Attributable to Common Stockholders | $43,955 | $(55,351) | - Total other comprehensive income increased significantly from **$4,773 thousand** in Q1 2021 to **$9,135 thousand** in Q1 2022, primarily due to unrealized gain on derivative instruments[14](index=14&type=chunk) [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202022%20and%202021) Presents Ventas, Inc.'s consolidated statements of equity for the three months ended March 31, 2022 and 2021 | Metric | As of March 31, 2022 (in thousands) | As of January 1, 2022 (in thousands) | | :----------------------------------- | :---------------------------------- | :--------------------------------- | | Total Ventas Stockholders' Equity | $10,697,406 | $10,854,385 | | Total Equity | $10,792,690 | $10,945,760 | - Total Ventas stockholders' equity decreased by **$156,979 thousand** from January 1, 2022, to March 31, 2022, primarily due to dividends to common stockholders of **$180,496 thousand** and adjustment of redeemable OP unitholder interests[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202022%20and%202021) Presents Ventas, Inc.'s consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Cash Provided by Operating Activities | $274,553 | $237,593 | | Net Cash Used in Investing Activities | $(437,326) | $(102,612) | | Net Cash Provided by (Used in) Financing Activities | $165,382 | $(377,067) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $2,609 | $(242,086) | - Net cash provided by operating activities increased by **$36,960 thousand (15.6%)** YoY, driven by increased net operating income at senior housing communities and HHS grants[20](index=20&type=chunk)[229](index=229&type=chunk) - Net cash used in investing activities significantly increased by **$334,714 thousand** YoY, primarily due to **$349.2 million** in acquisitions of MOBs, a behavioral health center, and a senior housing community[20](index=20&type=chunk)[230](index=230&type=chunk) - Net cash provided by financing activities swung from a use of **$(377,067) thousand** in Q1 2021 to a provision of **$165,382 thousand** in Q1 2022, mainly due to debt repayment in 2021 and increased commercial paper borrowings in 2022[20](index=20&type=chunk)[231](index=231&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of Ventas, Inc.'s accounting policies, business segments, and financial instrument fair values [NOTE 1—DESCRIPTION OF BUSINESS](index=11&type=section&id=NOTE%201%E2%80%94DESCRIPTION%20OF%20BUSINESS) Describes Ventas, Inc.'s business as an S&P 500 REIT focused on healthcare real estate, its property portfolio, and operational segments - Ventas, Inc. is an S&P 500 REIT focused on healthcare real estate, including senior housing, medical office buildings (MOBs), life science, research and innovation centers, and hospitals[25](index=25&type=chunk) - As of March 31, 2022, the company owned or had investments in approximately **1,300 properties** across the United States, Canada, and the United Kingdom[25](index=25&type=chunk) - Operations are divided into three reportable segments: triple-net leased properties, senior living operations (SHOP), and office operations[26](index=26&type=chunk) - The COVID-19 pandemic continues to impact the business, with **$34.0 million** and **$13.6 million** in Provider Relief Grants received in Q1 2022 and Q1 2021, respectively, recognized as a reduction in property-level operating expenses[30](index=30&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) [NOTE 2—ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%E2%80%94ACCOUNTING%20POLICIES) Outlines the accounting principles and methods used in preparing Ventas, Inc.'s financial statements, including consolidation, fair value measurements, and revenue recognition - The financial statements are prepared in accordance with U.S. GAAP for interim financial information and SEC instructions to Form 10-Q[36](index=36&type=chunk) - The company consolidates wholly-owned subsidiaries and joint ventures where it exercises control, including certain Variable Interest Entities (VIEs) where it is the primary beneficiary[37](index=37&type=chunk)[38](index=38&type=chunk)[42](index=42&type=chunk) Total Assets and Liabilities of Consolidated VIEs (in thousands) | VIE Type | As of March 31, 2022 - Total Assets | As of March 31, 2022 - Total Liabilities | As of December 31, 2021 - Total Assets | As of December 31, 2021 - Total Liabilities | | :--------- | :---------------------------------- | :------------------------------------- | :------------------------------------- | :--------------------------------------- | | NHP/PMB L.P. | $752,970 | $250,825 | $749,834 | $251,352 | | Other identified VIEs | $3,970,582 | $1,570,662 | $3,949,294 | $1,556,136 | | Tax credit VIEs | $452,646 | $99,701 | $458,953 | $103,992 | - Investments in unconsolidated entities are accounted for using the equity method, with fair values estimated based on discounted cash flow models[44](index=44&type=chunk)[45](index=45&type=chunk) - Redeemable OP Unitholder and Noncontrolling Interests are classified outside of permanent equity and valued at the greater of cost or redemption value[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Real estate acquisitions are generally accounted for as asset acquisitions, with costs allocated to tangible and intangible assets and liabilities based on estimated fair values[58](index=58&type=chunk) - Fair value measurements for financial instruments utilize a hierarchy of inputs (Level one, two, and three), with cash, escrow deposits, and derivative instruments primarily using Level two inputs, and certain loans/debt using Level two or three[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk)[76](index=76&type=chunk) - Long-lived and intangible assets are periodically evaluated for impairment, with losses recognized if expected future undiscounted cash flows are less than carrying value[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Rental income from triple-net and office leases is recognized on a straight-line basis, while resident fees and services are recognized monthly as provided[78](index=78&type=chunk)[81](index=81&type=chunk) [NOTE 3—CONCENTRATION OF CREDIT RISK](index=19&type=section&id=NOTE%203%E2%80%94CONCENTRATION%20OF%20CREDIT%20RISK) Details Ventas, Inc.'s exposure to credit risk through its investment mix by asset type, tenant, and geographic location Investment Mix by Asset Type (Gross Book Value) | Asset Type | As of March 31, 2022 | | :----------------------------------- | :------------------- | | Senior housing communities | 67.0 % | | MOBs | 17.7 % | | Life science, research and innovation centers | 6.6 % | | Health systems | 4.9 % | | IRFs and LTACs | 1.5 % | | SNFs | 0.6 % | | Secured loans receivable and investments, net | 1.7 % | | Total | 100.0 % | Investment Mix by Tenant, Operator and Manager (Gross Book Value) | Tenant, Operator, Manager | As of March 31, 2022 | | :------------------------ | :------------------- | | Atria | 26.7 % | | Sunrise | 9.9 % | | Brookdale Senior Living | 7.7 % | | Le Groupe Maurice | 7.3 % | | Ardent | 5.3 % | | Kindred | 0.8 % | | All other | 42.3 % | | Total | 100.0 % | - Properties in California accounted for over **10%** of total consolidated revenues and net operating income (NOI) for the three months ended March 31, 2022[88](index=88&type=chunk) Triple-Net Leased Properties Concentration Risk (Revenues & NOI) | Tenant | Q1 2022 Revenues | Q1 2021 Revenues | Q1 2022 NOI | Q1 2021 NOI | | :------------------ | :--------------- | :--------------- | :---------- | :---------- | | Brookdale Senior Living | 3.7 % | 4.1 % | 7.8 % | 8.8 % | | Ardent | 3.2 % | 3.5 % | 6.8 % | 7.5 % | | Kindred | 3.3 % | 3.6 % | 7.0 % | 7.8 % | - Kindred Healthcare, LLC's lease term for six LTACs ends April 30, 2023, with annual rent of **$31.9 million** for the 12 months ending March 31, 2022[91](index=91&type=chunk) - Ventas and Sunrise Senior Living entered into a revised management agreement for 92 communities, expiring May 31, 2035, with performance-based management and incentive fees[94](index=94&type=chunk) [NOTE 4—ACQUISITIONS OF REAL ESTATE PROPERTY](index=20&type=section&id=NOTE%204%E2%80%94ACQUISITIONS%20OF%20REAL%20ESTATE%20PROPERTY) Summarizes Ventas, Inc.'s real estate acquisitions during Q1 2022 and subsequent periods - In Q1 2022, Ventas acquired **18 MOBs**, one behavioral health center, and one senior housing community for an aggregate purchase price of **$349.2 million**[98](index=98&type=chunk) - Subsequent to March 31, 2022, the company acquired one research and innovation center in Philadelphia, Pennsylvania for **$46.1 million**[98](index=98&type=chunk) [NOTE 5—DISPOSITIONS AND IMPAIRMENTS](index=21&type=section&id=NOTE%205%E2%80%94DISPOSITIONS%20AND%20IMPAIRMENTS) Details Ventas, Inc.'s property dispositions and impairment charges recognized during Q1 2022 - In Q1 2022, Ventas sold one vacant land parcel for **$5.6 million**, recognizing a gain of **$2.2 million**[100](index=100&type=chunk) Assets Held for Sale (in thousands) | Segment | Number of Properties (March 31, 2022) | Assets Held for Sale (March 31, 2022) | Liabilities Related to Assets Held for Sale (March 31, 2022) | | :-------------------- | :------------------------------------ | :------------------------------------ | :----------------------------------------------------------- | | Office Operations | 2 | $3,098 | $1,558 | | Senior Living Operations | 2 | $23,133 | $6,853 | | Total | 4 | $26,231 | $8,411 | - Impairments recognized were **$14.3 million** in Q1 2022, a significant decrease from **$78.5 million** in Q1 2021, primarily due to changes in intent to hold or expected future cash flows of properties[102](index=102&type=chunk) [NOTE 6—LOANS RECEIVABLE AND INVESTMENTS](index=22&type=section&id=NOTE%206%E2%80%94LOANS%20RECEIVABLE%20AND%20INVESTMENTS) Provides a breakdown of Ventas, Inc.'s loans receivable and investments, net, including their amortized cost, carrying amount, and fair value Loans Receivable and Investments, Net (in thousands) | Category | Amortized Cost (March 31, 2022) | Carrying Amount (March 31, 2022) | Fair Value (March 31, 2022) | | :----------------------------------- | :------------------------------ | :------------------------------- | :-------------------------- | | Secured/mortgage loans and other, net | $488,827 | $488,827 | $483,491 | | Government-sponsored pooled loan investments, net | $40,312 | $41,561 | $41,561 | | Non-mortgage loans receivable, net | $29,449 | $24,116 | $23,826 | | Total loans receivable and investments, net | $558,588 | $554,504 | $548,878 | - Net loans receivable and investments increased from **$549.2 million** at December 31, 2021, to **$554.5 million** at March 31, 2022[105](index=105&type=chunk) [NOTE 7—INVESTMENTS IN UNCONSOLIDATED ENTITIES](index=22&type=section&id=NOTE%207%E2%80%94INVESTMENTS%20IN%20UNCONSOLIDATED%20ENTITIES) Outlines Ventas, Inc.'s investments in unconsolidated entities, accounted for using the equity method - Ventas reports investments in unconsolidated entities under the equity method, where it has significant influence but not control[106](index=106&type=chunk) Investments in Unconsolidated Real Estate Entities (in thousands) | Entity | Ownership (March 31, 2022) | Carrying Amount (March 31, 2022) | | :----------------------------------- | :------------------------- | :------------------------------- | | Ventas Life Science & Healthcare Real Estate Fund | 21.1% | $264,675 | | Pension Fund Joint Venture | 22.9% | $28,248 | | Research & Innovation Development Joint Venture | 51.1% | $244,115 | | Ventas Investment Management Platform | | $537,038 | | All other | 34.0%-50.0% | $4,876 | | Total investments in unconsolidated real estate entities | | $541,914 | - Total management fees earned from these services were **$3.5 million** in Q1 2022, up from **$2.7 million** in Q1 2021[110](index=110&type=chunk) - Ventas holds a **34%** ownership interest in Atria and a **9.8%** ownership interest in Ardent, both unconsolidated operating entities[111](index=111&type=chunk) [NOTE 8—INTANGIBLES](index=24&type=section&id=NOTE%208%E2%80%94INTANGIBLES) Presents a summary of Ventas, Inc.'s net intangible assets and liabilities, including their weighted average remaining amortization periods Net Intangible Assets (in thousands) | Category | Balance (March 31, 2022) | Weighted Average Remaining Amortization Period (Years) | | :----------------------------------- | :----------------------- | :----------------------------------------------------- | | Above-market lease intangibles | $129,118 | 5.8 | | In-place and other lease intangibles | $1,244,246 | 7.1 | | Goodwill | $1,045,663 | N/A | | Other intangibles | $34,536 | 6.3 | | Accumulated amortization | $(977,491) | N/A | | Net intangible assets | $1,476,072 | 7.0 | Net Intangible Liabilities (in thousands) | Category | Balance (March 31, 2022) | Weighted Average Remaining Amortization Period (Years) | | :----------------------------------- | :----------------------- | :----------------------------------------------------- | | Below-market lease intangibles | $334,347 | 9.5 | | Other lease intangibles | $13,498 | N/A | | Accumulated amortization | $(248,092) | N/A | | Purchase option intangibles | $3,568 | N/A | | Net intangible liabilities | $103,321 | 9.5 | - Net intangible assets decreased from **$1,506,001 thousand** at December 31, 2021, to **$1,476,072 thousand** at March 31, 2022[114](index=114&type=chunk) [NOTE 9—OTHER ASSETS](index=24&type=section&id=NOTE%209%E2%80%94OTHER%20ASSETS) Provides a detailed breakdown of Ventas, Inc.'s other assets as of March 31, 2022, and December 31, 2021 Other Assets (in thousands) | Category | As of March 31, 2022 | As of December 31, 2021 | | :----------------------------------- | :------------------- | :---------------------- | | Straight-line rent receivables | $179,997 | $176,877 | | Non-mortgage loans receivable, net | $24,116 | $19,024 | | Stock warrants | $77,452 | $48,884 | | Other intangibles, net | $7,072 | $7,270 | | Investment in unconsolidated operating entities | $71,511 | $73,602 | | Other | $252,943 | $239,412 | | Total other assets | $613,091 | $565,069 | - Total other assets increased by **$48,022 thousand** from December 31, 2021, to March 31, 2022, primarily driven by an increase in stock warrants and other miscellaneous assets[116](index=116&type=chunk) - Stock warrants represent **16.3 million shares** of Brookdale Senior Living common stock exercisable at **$3.00 per share**, with changes in fair value recognized in other expense[116](index=116&type=chunk) [NOTE 10—SENIOR NOTES PAYABLE AND OTHER DEBT](index=25&type=section&id=NOTE%2010%E2%80%94SENIOR%20NOTES%20PAYABLE%20AND%20OTHER%20DEBT) Details Ventas, Inc.'s senior notes payable and other debt, including changes, credit facilities, commercial paper, and maturity schedules Senior Notes Payable and Other Debt (in thousands) | Category | As of March 31, 2022 | As of December 31, 2021 | | :----------------------------------- | :------------------- | :---------------------- | | Senior notes payable and other debt | $12,413,743 | $12,027,544 | - Total senior notes payable and other debt increased by **$386,199 thousand** from December 31, 2021, to March 31, 2022[118](index=118&type=chunk) - The company has a **$2.75 billion** unsecured revolving credit facility maturing in January 2025, with **$2.7 billion** undrawn capacity as of March 31, 2022[121](index=121&type=chunk)[122](index=122&type=chunk) - Ventas Realty has a commercial paper program with a maximum aggregate amount of **$1.0 billion**, with **$636.9 million** outstanding as of March 31, 2022[123](index=123&type=chunk) Debt Maturities as of March 31, 2022 (in thousands) | Year | Principal Amount Due at Maturity | Commercial Paper Notes | Scheduled Periodic Amortization | Total Maturities | | :--- | :------------------------------- | :--------------------- | :------------------------------ | :--------------- | | 2022 | $342,600 | $636,948 | $40,477 | $1,020,025 | | 2023 | $700,088 | — | $40,291 | $740,379 | | 2024 | $1,666,791 | — | $34,504 | $1,701,295 | | 2025 | $2,052,522 | $46,037 | $28,354 | $2,126,913 | | 2026 | $1,036,035 | — | $21,441 | $1,057,476 | | Thereafter | $5,713,952 | — | $117,836 | $5,831,788 | | Total | $11,511,988 | $682,985 | $282,903 | $12,477,876 | [NOTE 11—FAIR VALUES OF FINANCIAL INSTRUMENTS](index=27&type=section&id=NOTE%2011%E2%80%94FAIR%20VALUES%20OF%20FINANCIAL%20INSTRUMENTS) Presents the carrying amounts and fair values of Ventas, Inc.'s financial instruments as of March 31, 2022, and December 31, 2021 Fair Values of Financial Instruments (in thousands) | Instrument | Carrying Amount (March 31, 2022) | Fair Value (March 31, 2022) | Carrying Amount (December 31, 2021) | Fair Value (December 31, 2021) | | :----------------------------------- | :------------------------------- | :-------------------------- | :---------------------------------- | :----------------------------- | | Cash and cash equivalents | $149,599 | $149,599 | $149,725 | $149,725 | | Escrow deposits and restricted cash | $49,848 | $49,848 | $46,872 | $46,872 | | Stock warrants | $77,452 | $77,452 | $48,884 | $48,884 | | Secured mortgage loans and other, net | $488,827 | $483,491 | $488,913 | $478,931 | | Non-mortgage loans receivable, net | $24,116 | $23,826 | $19,024 | $19,039 | | Government-sponsored pooled loan investments, net | $41,561 | $41,561 | $41,213 | $41,213 | | Derivative instruments (assets) | $10,410 | $10,410 | $1,128 | $1,128 | | Senior notes payable and other debt, gross | $12,477,876 | $12,518,899 | $12,093,138 | $12,891,937 | | Derivative instruments (liabilities) | $2,571 | $2,571 | $12,290 | $12,290 | | Redeemable OP Units | $217,225 | $217,225 | $182,112 | $182,112 | - The fair value of derivative instruments (assets) increased significantly from **$1,128 thousand** at December 31, 2021, to **$10,410 thousand** at March 31, 2022[128](index=128&type=chunk) - The fair value of senior notes payable and other debt, gross, decreased from **$12,891,937 thousand** at December 31, 2021, to **$12,518,899 thousand** at March 31, 2022, despite an increase in carrying amount[128](index=128&type=chunk) [NOTE 12—COMMITMENTS AND CONTINGENCIES](index=27&type=section&id=NOTE%2012%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) Discusses Ventas, Inc.'s involvement in various legal proceedings and management's assessment of their potential impact - Ventas is party to various lawsuits, investigations, claims, and other legal and regulatory proceedings arising in connection with its business[130](index=130&type=chunk) - Management believes the disposition of currently pending legal matters will not have a material adverse effect on the company, but significant financial resources may be expended to defend and resolve these matters[131](index=131&type=chunk) [NOTE 13—INCOME TAXES](index=28&type=section&id=NOTE%2013%E2%80%94INCOME%20TAXES) Outlines Ventas, Inc.'s tax status as a REIT and the consolidated provision for income taxes for Q1 2022 and 2021 - Ventas has elected to be taxed as a REIT since 1999, with certain subsidiaries treated as taxable REIT subsidiaries (TRS) subject to federal, state, and foreign income taxes[133](index=133&type=chunk) - The consolidated provision for income taxes was a benefit of **$4.5 million** for Q1 2022, compared to an expense of **$2.2 million** for Q1 2021, primarily due to losses in TRS entities and a restructuring benefit[135](index=135&type=chunk) - Deferred tax liabilities for TRS entities totaled **$52.8 million** at March 31, 2022, down from **$59.3 million** at December 31, 2021[136](index=136&type=chunk) [NOTE 14—STOCKHOLDERS' EQUITY](index=28&type=section&id=NOTE%2014%E2%80%94STOCKHOLDERS%27%20EQUITY) Details Ventas, Inc.'s stockholders' equity, including its ATM equity offering program and accumulated other comprehensive loss - Ventas has an 'at-the-market' (ATM) equity offering program with **$1.0 billion** aggregate gross sales price of common stock available for issuance as of March 31, 2022; no issuances occurred in Q1 2022[138](index=138&type=chunk) Accumulated Other Comprehensive Loss (in thousands) | Category | As of March 31, 2022 | As of December 31, 2021 | | :----------------------------------- | :------------------- | :---------------------- | | Foreign currency translation loss | $(66,784) | $(56,227) | | Unrealized gain on available for sale securities | $1,249 | $1,836 | | Unrealized gain (loss) on derivative instruments | $6,239 | $(10,129) | | Total accumulated other comprehensive loss | $(59,296) | $(64,520) | - Total accumulated other comprehensive loss improved from **$(64,520) thousand** at December 31, 2021, to **$(59,296) thousand** at March 31, 2022, primarily due to an unrealized gain on derivative instruments[139](index=139&type=chunk) [NOTE 15—EARNINGS PER SHARE](index=29&type=section&id=NOTE%2015%E2%80%94EARNINGS%20PER%20SHARE) Presents Ventas, Inc.'s basic and diluted earnings per share calculations for the three months ended March 31, 2022 and 2021 Earnings Per Share (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) attributable to common stockholders | $38,732 | $(57,209) | | Denominator for basic EPS—weighted average shares | 399,297 | 374,669 | | Denominator for diluted EPS—adjusted weighted average shares | 403,260 | 377,922 | | Basic EPS | $0.10 | $(0.15) | | Diluted EPS | $0.10 | $(0.15) | - Basic and diluted EPS improved from a loss of **$(0.15)** in Q1 2021 to a gain of **$0.10** in Q1 2022[141](index=141&type=chunk) - Weighted average shares for diluted EPS increased from **377,922 thousand** in Q1 2021 to **403,260 thousand** in Q1 2022, partly due to OP unitholder interests[141](index=141&type=chunk) [NOTE 16—SEGMENT INFORMATION](index=29&type=section&id=NOTE%2016%E2%80%94SEGMENT%20INFORMATION) Provides financial information by Ventas, Inc.'s reportable business segments: triple-net leased properties, senior living operations (SHOP), and office operations - Ventas operates through three reportable business segments: triple-net leased properties, senior living operations (SHOP), and office operations[142](index=142&type=chunk) - Segment performance is evaluated based on segment Net Operating Income (NOI), which excludes interest expense, depreciation, amortization, and corporate-level expenses[143](index=143&type=chunk)[146](index=146&type=chunk) Segment NOI for Three Months Ended March 31, 2022 (in thousands) | Segment | Total Revenues | Segment NOI | | :-------------------- | :------------- | :---------- | | Triple-Net Leased Properties | $151,561 | $147,553 | | Senior Living Operations | $651,121 | $175,591 | | Office Operations | $201,157 | $137,974 | | Non-Segment | $13,715 | $11,866 | | Total | $1,017,554 | $472,984 | Segment NOI for Three Months Ended March 31, 2021 (in thousands) | Segment | Total Revenues | Segment NOI | | :-------------------- | :------------- | :---------- | | Triple-Net Leased Properties | $159,885 | $155,060 | | Senior Living Operations | $528,650 | $110,821 | | Office Operations | $199,800 | $135,236 | | Non-Segment | $21,956 | $21,615 | | Total | $910,291 | $422,732 | Capital Expenditures by Segment (in thousands) | Segment | Q1 2022 Capital Expenditures | Q1 2021 Capital Expenditures | | :-------------------- | :--------------------------- | :--------------------------- | | Triple-Net Leased Properties | $634 | $8,218 | | Senior Living Operations | $143,403 | $48,717 | | Office Operations | $274,074 | $31,547 | | Total | $418,111 | $88,482 | - Total capital expenditures increased significantly from **$88,482 thousand** in Q1 2021 to **$418,111 thousand** in Q1 2022, primarily driven by investments in Office Operations and Senior Living Operations[149](index=149&type=chunk) Revenues by Geographic Location (in thousands) | Country | Q1 2022 Revenues | Q1 2021 Revenues | | :-------------- | :--------------- | :--------------- | | United States | $897,933 | $797,768 | | Canada | $112,144 | $105,033 | | United Kingdom | $7,477 | $7,490 | | Total Revenues | $1,017,554 | $910,291 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of Ventas, Inc.'s Q1 2022 financial condition and results, covering business, risk, segment performance, non-GAAP measures, and liquidity [Company Overview](index=34&type=section&id=Company%20Overview) Describes Ventas, Inc.'s business as an S&P 500 REIT specializing in a diversified portfolio of healthcare real estate and its strategic goals - Ventas, Inc. is an S&P 500 REIT specializing in a diversified portfolio of healthcare real estate, including senior housing, MOBs, and life science centers, with approximately **1,300 properties** across the US, Canada, and UK[156](index=156&type=chunk) - The company operates through three segments: triple-net leased properties, senior living operations (SHOP), and office operations[157](index=157&type=chunk) - Key strategic goals include generating reliable cash flows, maintaining a diversified portfolio, and preserving financial strength, flexibility, and liquidity[161](index=161&type=chunk) [First Quarter 2022 Highlights](index=35&type=section&id=First%20Quarter%202022%20Highlights) Summarizes Ventas, Inc.'s key operational and financial achievements during the first quarter of 2022 - Acquired **18 MOBs**, one behavioral health center, and one senior housing community for **$349.2 million** in Q1 2022, and one research and innovation center for **$46.1 million** in April 2022[166](index=166&type=chunk) - Sold one vacant land parcel for **$5.6 million**, recognizing a **$2.2 million** gain[166](index=166&type=chunk) - Received **$34.0 million** in Provider Relief Fund grants in Q1 2022 to mitigate COVID-19 related losses in senior living operations[166](index=166&type=chunk) - Entered into a revised management agreement with Sunrise for **92 communities**, extending the term to May 31, 2035, with performance-based fees and termination rights[166](index=166&type=chunk) [Concentration Risk](index=36&type=section&id=Concentration%20Risk) Analyzes Ventas, Inc.'s investment and operations mix by asset type, tenant/operator, and geographic location, highlighting potential risks Investment Mix by Asset Type (Gross Book Value) | Asset Type | As of March 31, 2022 | | :----------------------------------- | :------------------- | | Senior housing communities | 67.0 % | | MOBs | 17.7 % | | Life science, research and innovation centers | 6.6 % | | Health systems | 4.9 % | | IRFs and LTACs | 1.5 % | | Skilled nursing facilities ("SNFs") | 0.6 % | | Secured loans receivable and investments, net | 1.7 % | | Total | 100.0 % | Operations Mix by Tenant and Operator and Business Model (Revenues) | Category | Q1 2022 Revenues | Q1 2021 Revenues | | :----------------------------------- | :--------------- | :--------------- | | Senior living operations | 64.0 % | 58.3 % | | Brookdale Senior Living | 3.7 % | 4.1 % | | Kindred | 3.3 % | 3.6 % | | Ardent | 3.2 % | 3.5 % | | All others | 25.8 % | 30.5 % | | Total | 100.0 % | 100.0 % | Operations Mix by Geographic Location (Revenues) | Geographic Location | Q1 2022 Revenues | Q1 2021 Revenues | | :------------------ | :--------------- | :--------------- | | California | 15.0 % | 15.4 % | | New York | 7.4 % | 7.7 % | | Texas | 6.6 % | 6.0 % | | Pennsylvania | 4.8 % | 4.6 % | | North Carolina | 4.4 % | 3.7 % | | All others | 61.8 % | 62.6 % | | Total | 100.0 % | 100.0 % | [Critical Accounting Policies and Estimates](index=38&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Discusses the significant accounting policies and estimates that require management's judgment in preparing Ventas, Inc.'s financial statements - Financial statements are prepared under U.S. GAAP, requiring management to make estimates and assumptions about future events, which are periodically reevaluated[172](index=172&type=chunk) - No material changes to critical accounting policies occurred in 2022[173](index=173&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Analyzes Ventas, Inc.'s financial performance for the three months ended March 31, 2022, compared to the same period in 2021, by segment and company-wide [Three Months Ended March 31, 2022 and 2021](index=39&type=section&id=Three%20Months%20Ended%20March%2031%2C%202022%20and%202021) Summarizes key financial results for Ventas, Inc. for the three months ended March 31, 2022 and 2021 Key Financial Results (in thousands) | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :----------------------------------- | :------ | :------ | :--------- | :--------- | | Total segment NOI | $472,984 | $422,732 | $50,252 | 11.9 % | | Net income (loss) attributable to common stockholders | $38,732 | $(57,209) | $95,941 | nm | - Total segment NOI increased by **11.9%** YoY, primarily driven by senior living operations[177](index=177&type=chunk) - Net income attributable to common stockholders significantly improved, swinging from a loss of **$(57,209) thousand** in Q1 2021 to a gain of **$38,732 thousand** in Q1 2022[177](index=177&type=chunk) [Segment NOI—Triple-Net Leased Properties](index=39&type=section&id=Segment%20NOI%E2%80%94Triple-Net%20Leased%20Properties) Analyzes the Net Operating Income (NOI) performance of Ventas, Inc.'s triple-net leased properties segment Triple-Net Leased Properties Segment NOI (in thousands) | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :----------------------------------- | :------ | :------ | :--------- | :--------- | | Rental income | $151,561 | $159,885 | $(8,324) | (5.2)% | | Property-level operating expenses | $(4,008) | $(4,825) | $817 | 16.9 % | | Segment NOI | $147,553 | $155,060 | $(7,507) | (4.8)% | - Segment NOI for triple-net leased properties decreased by **4.8%** YoY, mainly due to rental income from properties transitioned or sold, partially offset by an acquisition[179](index=179&type=chunk) Average Occupancy for Triple-Net Leased Properties | Property Type | Q4 2021 Average Occupancy | Q4 2020 Average Occupancy | | :-------------------- | :------------------------ | :------------------------ | | Senior housing communities | 75.2% | 79.2% | | SNFs | 79.5% | 79.7% | | IRFs and LTACs | 57.0% | 57.2% | - Same-store segment NOI for triple-net leased properties was flat YoY, with contractual escalators offset by reduced payments from select senior housing tenants due to pandemic impacts[183](index=183&type=chunk) [Segment NOI—Senior Living Operations](index=40&type=section&id=Segment%20NOI%E2%80%94Senior%20Living%20Operations) Analyzes the Net Operating Income (NOI) performance of Ventas, Inc.'s senior living operations (SHOP) segment Senior Living Operations Segment NOI (in thousands) | Metric | Q1 2022 | Q1 2021 | Increase (Decrease) ($) | Increase (Decrease) (%) | | :----------------------------------- | :------ | :------ | :---------------------- | :---------------------- | | Resident fees and services | $651,121 | $528,650 | $122,471 | 23.2 % | | Property-level operating expenses | $(475,530) | $(417,829) | $(57,701) | (13.8)% | | Segment NOI | $175,591 | $110,821 | $64,770 | 58.4 % | - Segment NOI for senior living operations increased by **58.4%** YoY, driven by the acquisition of over **100 independent living communities** from New Senior, increased occupancy, and higher HHS grants[186](index=186&type=chunk) Senior Living Operations Occupancy and Revenue Per Occupied Room | Metric | Q1 2022 | Q1 2021 | | :----------------------------------- | :------ | :------ | | Average Unit Occupancy | 80.0 % | 76.3 % | | Average Monthly Revenue Per Occupied Room | $4,373 | $4,649 | - Same-store senior living operations NOI increased by **25.8%** YoY, benefiting from increased occupancy (**83.0%** in Q1 2022 vs. **78.8%** in Q1 2021) and revenue per occupied room (**$4,821** in Q1 2022 vs. **$4,625** in Q1 2021), along with higher HHS grants[187](index=187&type=chunk) [Segment NOI—Office Operations](index=42&type=section&id=Segment%20NOI%E2%80%94Office%20Operations) Analyzes the Net Operating Income (NOI) performance of Ventas, Inc.'s office operations segment Office Operations Segment NOI (in thousands) | Metric | Q1 2022 | Q1 2021 | Increase (Decrease) ($) | Increase (Decrease) (%) | | :----------------------------------- | :------ | :------ | :---------------------- | :---------------------- | | Total revenues | $201,157 | $199,800 | $1,357 | 0.7 % | | Property-level operating expenses | $(63,183) | $(63,946) | $763 | 1.2 % | | Office building and other services costs | — | $(618) | $618 | 100.0 % | | Segment NOI | $137,974 | $135,236 | $2,738 | 2.0 % | - Segment NOI for office operations increased by **2.0%** YoY, driven by successful new leasing, sustained tenant retention, improved parking revenues, and recent acquisitions[190](index=190&type=chunk) Office Operations Occupancy and Rent Per Occupied Square Foot | Metric | Q1 2022 | Q1 2021 | | :----------------------------------- | :------ | :------ | | Occupancy | 90.5 % | 89.3 % | | Annualized Average Rent Per Occupied Square Foot | $36 | $34 | - Same-store office operations NOI increased by **7.1%** YoY, attributed to contractual rent escalators, new leasing, tenant retention, and improved parking income[191](index=191&type=chunk) [NOI—Non-Segment](index=43&type=section&id=NOI%E2%80%94Non-Segment) Analyzes the Net Operating Income (NOI) performance of Ventas, Inc.'s non-segment operations - Non-segment NOI decreased by **$9.7 million** YoY, primarily due to lower income from loans receivable investments as a result of repayments in 2021[192](index=192&type=chunk) [Company Results](index=43&type=section&id=Company%20Results) Provides an overview of Ventas, Inc.'s overall financial results, including interest expense, depreciation, and other income/expenses - Interest expense was relatively flat YoY, with an increase from higher debt balance and lower capitalized interest offset by a lower interest rate (**3.49%** in Q1 2022 vs. **3.62%** in Q1 2021)[193](index=193&type=chunk) - Depreciation and amortization decreased by **$25.1 million** YoY, mainly due to **$78.5 million** in impairments recognized in Q1 2021, partially offset by **$41.9 million** depreciation on New Senior assets and **$14.3 million** impairments in Q1 2022[194](index=194&type=chunk) - General, administrative and professional fees increased by **$2.7 million** YoY, due to New Senior's overhead and a return to a more normalized business environment[195](index=195&type=chunk) - Loss on extinguishment of debt decreased by **$27.1 million** YoY, as Q1 2021 included a make-whole redemption of **$400.0 million** senior notes[196](index=196&type=chunk) - Transaction expenses and deal costs increased by **$15.4 million** YoY, primarily due to **$12.0 million** in stockholder relations matters and operator transition costs[197](index=197&type=chunk) - Allowance on loans receivable and investments decreased by **$8.8 million** YoY, due to a change in credit loss estimates and corresponding allowance reversal in Q1 2021[198](index=198&type=chunk) - Other income increased by **$17.8 million** YoY, driven by **$8.6 million** in insurance proceeds and a **$7.6 million** unrealized gain on stock warrants[199](index=199&type=chunk) - Loss from unconsolidated entities increased by **$4.0 million** YoY, due to Ventas's share of increased net losses from investees[200](index=200&type=chunk) - Income tax benefit of **$4.5 million** in Q1 2022 compared to an expense of **$2.2 million** in Q1 2021, primarily due to TRS operating losses and a tax credit structure unwind benefit[202](index=202&type=chunk) [Non-GAAP Financial Measures](index=44&type=section&id=Non-GAAP%20Financial%20Measures) Explains Ventas, Inc.'s use of non-GAAP financial measures like FFO, Normalized FFO, and NOI to provide additional insights into operating performance - Ventas uses non-GAAP financial measures like Funds From Operations (FFO) and Normalized FFO to supplement GAAP measures, providing insights into operating performance and comparability across periods and companies[203](index=203&type=chunk)[205](index=205&type=chunk) - FFO is defined by Nareit as net income attributable to common stockholders, excluding gains/losses from real estate sales, impairment losses, and real estate depreciation/amortization, with adjustments for unconsolidated entities[206](index=206&type=chunk) - Normalized FFO further excludes specific recurring and non-recurring items such as transaction costs, debt extinguishment impacts, non-cash tax effects, and changes in fair value of financial instruments[206](index=206&type=chunk)[207](index=207&type=chunk) FFO and Normalized FFO Attributable to Common Stockholders (in thousands) | Metric | Q1 2022 | Q1 2021 | | :----------------------------------- | :------ | :------ | | FFO attributable to common stockholders | $327,213 | $252,527 | | Normalized FFO attributable to common stockholders | $316,655 | $270,477 | - Normalized FFO increased by **$46,178 thousand (17.1%)** YoY, primarily due to increased net operating income in senior housing communities, improved occupancy, higher revenue per occupied room, acquisitions, and higher HHS grants, partially offset by lower interest income on loan investments[208](index=208&type=chunk) - NOI is defined as total revenues less interest and other income, property-level operating expenses, and office building and other services costs, used to assess unlevered property-level operating results[210](index=210&type=chunk) Reconciliation of Net Income to NOI (in thousands) | Metric | Q1 2022 | Q1 2021 | | :----------------------------------- | :------ | :------ | | Net income (loss) attributable to common stockholders | $38,732 | $(57,209) | | NOI | $472,984 | $422,732 | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses Ventas, Inc.'s principal liquidity sources, capital needs, credit facilities, and cash flow activities - Principal liquidity sources include cash flows from operations, debt and equity issuances, unsecured revolving credit facility borrowings, and asset sales[215](index=215&type=chunk) - Key liquidity needs for the next 12 months include funding operating expenses, debt service, debt repayment, acquisitions, development, capital expenditures, and REIT distributions[216](index=216&type=chunk) - The company has a **$2.75 billion** unsecured revolving credit facility with **$2.7 billion** undrawn capacity and a **$1.0 billion** commercial paper program with **$636.9 million** outstanding as of March 31, 2022[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - Ventas declared a dividend of **$0.45 per share** for Q1 2022 and intends to pay dividends greater than **100%** of its taxable income to maintain REIT qualification[226](index=226&type=chunk)[227](index=227&type=chunk) Cash Flows Summary (in thousands) | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :----------------------------------- | :------ | :------ | :--------- | :--------- | | Net cash provided by operating activities | $274,553 | $237,593 | $36,960 | 15.6 % | | Net cash used in investing activities | $(437,326) | $(102,612) | $(334,714) | nm | | Net cash provided by (used in) financing activities | $165,382 | $(377,067) | $542,449 | 143.9 % | - Cash flows from operating activities increased by **$37.0 million** YoY, driven by increased NOI in senior housing and HHS grants[229](index=229&type=chunk) - Cash flows from investing activities decreased by **$334.7 million** YoY, primarily due to **$349.2 million** in acquisitions[230](index=230&type=chunk) - Cash flows from financing activities increased by **$542.4 million** YoY, mainly due to the Q1 2021 redemption of **$400.0 million** senior notes and increased commercial paper borrowings in Q1 2022[231](index=231&type=chunk) - As of March 31, 2022, Ventas had **15 properties** under development, including six owned by an unconsolidated real estate entity[234](index=234&type=chunk) [Guarantor and Issuer Financial Information](index=51&type=section&id=Guarantor%20and%20Issuer%20Financial%20Information) Provides condensed consolidating financial information for Ventas, Inc. and its guarantor and issuer subsidiaries - Ventas, Inc. fully and unconditionally guarantees senior notes issued by its **100% owned** subsidiaries, Ventas Realty and Ventas Canada Finance Limited[236](index=236&type=chunk)[237](index=237&type=chunk) Guarantor and Issuer Balance Sheet Information (in thousands) | Category | Guarantor (March 31, 2022) | Issuer (March 31, 2022) | | :----------------------------------- | :------------------------- | :---------------------- | | Total assets | $17,922,405 | $3,155,639 | | Total liabilities | $11,537,000 | $4,133,468 | | Total equity (deficit) | $6,288,759 | $(977,829) | Guarantor and Issuer Statement of Income Information (in thousands) | Metric | Guarantor (Q1 2022) | Issuer (Q1 2022) | | :----------------------------------- | :------------------ | :--------------- | | Total revenues | $46,321 | $36,683 | | Net income (loss) attributable to common stockholders | $38,732 | $(40,293) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses Ventas, Inc.'s market risk exposure from interest rate and foreign currency fluctuations, and mitigation strategies - Ventas is exposed to market risk from changes in interest rates on variable rate debt (revolving credit facility, term loans, floating rate mortgages) and foreign currency exchange rates[246](index=246&type=chunk)[254](index=254&type=chunk) - The fair value of fixed rate debt is sensitive to market interest rate changes; a hypothetical **100 basis point** increase in interest rates would decrease the fair value of fixed rate debt by approximately **$526.29 million** as of March 31, 2022[248](index=248&type=chunk)[249](index=249&type=chunk) Debt Composition (in thousands) | Category | Balance (March 31, 2022) | Percentage of Total Debt (March 31, 2022) | Weighted Average Interest Rate (March 31, 2022) | | :----------------------------------- | :----------------------- | :---------------------------------------- | :---------------------------------------------- | | Fixed rate debt | $11,065,729 | 88.7 % | 3.7 % | | Variable rate debt | $1,412,147 | 11.3 % | 1.4 % | | Total | $12,477,876 | 100.0 % | 3.4 % | - A hypothetical **100 basis point** increase in the weighted average interest rate on variable rate debt would increase annualized interest expense by approximately **$13.5 million**, or **$0.03 per diluted common share**[252](index=252&type=chunk) - Foreign currency exchange rate fluctuations are mitigated through hedging, with a less than **$0.01 per share** impact on Normalized FFO for a one standard deviation change in exchange rates[254](index=254&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded Ventas, Inc.'s disclosure controls were effective as of March 31, 2022, with no material changes in internal controls during Q1 2022 - Disclosure controls and procedures were deemed effective at a reasonable assurance level as of March 31, 2022[255](index=255&type=chunk) - No material changes in internal controls over financial reporting occurred during Q1 2022[256](index=256&type=chunk) PART II—OTHER INFORMATION Presents other information for Ventas, Inc., including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates legal proceedings information from Note 12, confirming no new material developments since the 2021 Annual Report - Information on legal proceedings is incorporated from Note 12, which states that management believes current lawsuits, investigations, and claims will not have a material adverse effect[131](index=131&type=chunk)[259](index=259&type=chunk) - No new material legal proceedings or material developments in previously reported legal proceedings occurred since the 2021 Annual Report[259](index=259&type=chunk) [Item 1A. Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) Supplements 2021 Annual Report risk factors, highlighting potential adverse impacts of activist investors on business, management, and stock price - The section updates risk factors from the 2021 Annual Report, emphasizing that activist investors could lead to substantial costs, divert management's attention, and negatively affect business, reputation, and stock price volatility[260](index=260&type=chunk)[261](index=261&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q1 2022 common stock repurchases, primarily for tax withholding on restricted stock vesting, with no public repurchase plan - Ventas does not have a publicly announced share repurchase plan[262](index=262&type=chunk) Issuer Purchases of Equity Securities (Q1 2022) | Period | Number of Shares Repurchased | Average Price Per Share | | :------------------------ | :--------------------------- | :---------------------- | | January 1 through January 31 | 46,170 | $51.87 | | February 1 through February 28 | 27,227 | $51.37 | | March 1 through March 31 | 44,310 | $56.28 | | Total | 117,707 | $53.41 | - Repurchases represent shares withheld to pay taxes on the vesting of restricted stock granted to employees[263](index=263&type=chunk) [Item 5. Other Information](index=56&type=section&id=Item%205.%20Other%20Information) No other information to report [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with Form 10-Q, including guarantor lists, CEO/CFO certifications, and XBRL financial statements - Exhibits include a list of guarantors and issuers, certifications from the CEO and CFO (Rule 13a-14(a) and 18 U.S.C. § 1350), and XBRL formatted financial statements[265](index=265&type=chunk)