Market Trends & Industry Dynamics - Senior living is on the edge of a boom due to the aging baby boomer population, with over 4 million boomers expected to reach 80 in the next five years [1][2][3] - The over 80 population is expected to grow by 28% in the next five years, significantly outpacing the overall US population growth of about 1% [3] - Annual inventory growth in senior living has dropped below 1% for the first time since 2006, indicating constrained supply [1] - Demand-supply dynamics strongly favor owners of senior living assets due to decade-long tailwinds and historically low supply growth [5] - The senior living sector is becoming increasingly consumer-driven, with residents paying out-of-pocket for care and amenities [25][26] - The great investment opportunities always go back to where is the demand, senior living is such a great investment opportunity is that the demand is in this longevity economy [32][34] Investment Opportunities & Financial Performance - Ventas is investing billions of dollars annually in senior living, seeing returns in the 7% range going in, with unlevered IRR in the low to mid teens, and acquiring assets below replacement costs [1][3] - Baby boomers, who are now turning 80, control $78 trillion, which is half the assets in the US, with the average net worth of over 75 household is 1 million plus [12] - Ventas benefits from higher development costs because it has an installed base and is acquiring assets below replacement cost [14] - Ventas has wildly outperformed the S&P 500 during the CEO's tenure [31] Risks & Challenges - Potential risks include macroeconomic factors like stagflation or recession, and ensuring sufficient caregivers and labor [21][22] - Scarcity of construction labor and tariffs will keep construction costs relatively elevated [23]

Financial Performance - Bumrungrad Hospital Public Company Limited's total revenues decreased by 3.6% in 2Q25 compared to 2Q24 and decreased by 4.6% in 1H25 compared to 1H24 [26, 27] - Net profit also experienced a decrease of 3.8% in 2Q25 compared to 2Q24 and a decrease of 8.3% in 1H25 compared to 1H24 [26, 36] - The EBITDA margin reached a company record of 41.6% in 2Q25 [5, 26, 34] - Non-Thai patient revenue decreased by 6.6% in 2Q25 and 8.2% in 1H25 compared to the same periods in the previous year [14, 21, 46, 50] Revenue Analysis - Middle East market share revenue increased by 23% compared to Q1 2025, with notable growth in Qatar (18%), UAE (46%), Oman (28%), and Saudi Arabia (54%) [5] - Non-Thai revenue has shown a CAGR of +5.8% from Y2018 to Y2024 [7] - Middle East non-Thai revenue increased by 56.2% from Y2018 to Y2024, while non-Middle East non-Thai revenue increased by 31.7% during the same period [10] - Inpatient and outpatient services contributed roughly equally to revenues, with inpatient services accounting for 50% in 2Q25 and 49% in 1H25 [29] Business Updates and Developments - Bumrungrad International Hospital has been recognized in Newsweek's Best Specialized Hospitals Asia Pacific 2025 ranking across all 9 specialty fields [52] - The hospital has been approved for renewal of its Advanced Hospital Accreditation (Advanced HA) under the Hospital and Healthcare Standards, with a certification period from May 23, 2025 – May 22, 2029 [55, 56] - A new Bumrungrad Comprehensive Cancer Center is under development, expected to be completed in 2027, with the aim of expanding capacity and enhancing patient experience [78, 80, 105]

Financial Data and Key Metrics Changes - The company reported a normalized FFO per share of $0.87, representing a year-over-year growth of approximately 9% [31] - Total company same store cash NOI grew nearly 7%, with the SHOP segment increasing over 13% [31][34] - The full year normalized FFO guidance midpoint was raised to $3.44 per share, indicating an 8% year-over-year growth at the midpoint [7][34] Business Line Data and Key Metrics Changes - The SHOP communities in the U.S. delivered 18% same store cash NOI growth in Q2, with revenue growing over 8% for the entire same store SHOP portfolio [9][16] - The outpatient medical and research business reported same store cash NOI growth of 1.7% year-over-year, led by outpatient medical, which grew NOI by 2.2% [31] - The research business, representing about 8% of NOI, experienced a decline of less than 1% year-over-year due to lower rents on certain tenants [31] Market Data and Key Metrics Changes - The average occupancy in SHOP communities improved by 240 basis points year-over-year, with the U.S. leading with a growth of 290 basis points [16][19] - The outpatient medical segment increased same store occupancy by 20 basis points sequentially and 30 basis points year-over-year to 90.1% [32] Company Strategy and Development Direction - The company is executing a "one two three" strategy aimed at driving organic growth, making value-creating investments, and maximizing performance across its portfolio [6][7] - The focus is on expanding the SHOP footprint, with expectations that SHOP NOI will represent over half of the business by year-end [13] - The company anticipates significant demand growth in senior housing due to an aging population, with the 80+ population expected to grow by 28% in the next five years [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing aging population and the favorable supply-demand dynamics in the senior housing market [6][14] - The management team highlighted the importance of maintaining strong relationships with operators to drive performance and growth [21][22] - The company expects to continue experiencing strong occupancy and revenue growth, particularly in the SHOP segment, supported by data analytics and operational improvements [16][19] Other Important Information - The company raised its full year 2025 senior housing investment volume guidance to $2 billion, reflecting a growing pipeline of investment opportunities [10][28] - The balance sheet showed improvement, with a net debt to EBITDA ratio of 5.6 times, indicating a 40 basis point improvement since the start of the year [32] Q&A Session Summary Question: Can you provide additional color on the sequential occupancy gain in Q2 2025? - Management noted a strong movement activity throughout the year, particularly in June, with a sequential occupancy growth of 60 basis points [39] Question: How is the competitive landscape affecting your transaction activity? - Management indicated that while competition has increased, they have been able to maintain momentum in investment activity and continue to pursue high-performing communities [42][44] Question: Can you discuss the initiatives to improve move-ins? - Management highlighted the importance of data analytics and collaboration with operators to drive sales and improve occupancy rates [48] Question: What is the historical high for outpatient medical occupancy? - The historical high for outpatient medical occupancy is around 93-94%, with current occupancy hovering around 90% [58] Question: How does the company view the impact of the new healthcare bill? - Management expects minimal immediate impact from the bill, as many changes will take effect over a long period [53][54] Question: What are the expectations for the Brookdale transition? - The transition of 45 communities from triple net to SHOP is expected to double the NOI over time, with operators already engaged in the process [90][92]

Financial Data and Key Metrics Changes - Year over year normalized FFO per share grew by 9% to $0.87, with total company same store cash NOI increasing by 7% [5][29] - Full year normalized FFO guidance midpoint raised to $3.44 per share, representing 8% year over year growth at the midpoint [5][32] - Company-wide same store cash NOI growth expectations improved to 7% at the midpoint [6][33] Business Line Data and Key Metrics Changes - SHOP communities in the US delivered 18% same store cash NOI growth in Q2, with revenue growing over 8% for the entire same store SHOP portfolio [7][14] - Outpatient medical and research business reported same store cash NOI growth of 1.7% year over year, with outpatient medical growing NOI by 2.2% [29] - Research business, representing 8% of NOI, experienced a decline of less than 1% year over year due to lower rents on certain tenants [30] Market Data and Key Metrics Changes - The 65+ population is projected to represent 20% of the US population by 2030, driving demand for outpatient medical services [10] - New construction starts in senior housing are at record lows, with only 2,000 units started in Q2, leading to supply constraints [12] Company Strategy and Development Direction - The company is executing a "one two three" strategy focused on driving organic growth in SHOP communities, making value-creating investments in senior housing, and maximizing performance in the balance of the portfolio [5][6] - The strategy includes expanding the SHOP footprint and enhancing relationships with high-performing operators to drive growth [19][20] - The company anticipates continued multiyear NOI and occupancy growth opportunities due to favorable macro conditions and supply constraints [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing aging population and the favorable supply-demand dynamics in senior housing [4][10] - The company expects to continue improving its balance sheet and leverage through organic growth and equity-funded investments [30][31] - Management highlighted the importance of data analytics and operator relationships in driving performance and occupancy growth [20][79] Other Important Information - The company has raised its full year 2025 senior housing investment volume guidance to $2 billion, reflecting increased market activity and a growing pipeline of investments [8][25] - The company reported a record level of liquidity at $4.7 billion as of June 30, bolstered by recent capital raises [31] Q&A Session Summary Question: Can you provide additional color on the sequential occupancy gain in Q2 2025? - Management noted a strong occupancy growth of 60 basis points in June versus May, with July expected to maintain or exceed this momentum [36][38] Question: How is the competitive landscape affecting your transaction activity? - Management indicated that while competition has increased, they have been able to maintain momentum in investment activity and continue to pursue high-performing communities [39][40] Question: Can you discuss the initiatives to improve move-ins? - Management highlighted the effectiveness of data analytics and collaboration with operators to drive sales and improve occupancy, particularly in independent living [45][48] Question: What is the expected impact of the new healthcare bill? - Management expects minimal immediate impact from the bill, as many provisions will take effect over a long period, but sees potential benefits for outpatient medical services [51][52] Question: What is the historical high occupancy for the outpatient medical portfolio? - The historical high occupancy is around 93-94%, with current occupancy hovering around 90% [57][58] Question: How does the occupancy growth impact RevPOR? - Management explained that higher occupancy leads to better pricing opportunities, with significant margin expansion expected as occupancy increases [66][95]

Second Quarter 2025 Performance - Normalized FFO per share was $0.87, a ~9% YoY increase, driven by SHOP NOI growth and senior housing investment activity[11] - Total Company Same-Store Cash NOI grew 6.6% YoY, led by SHOP[11] - SHOP Same-Store Cash NOI increased by 13.3% YoY, or 15% YoY excluding a $3 million property tax refund in Q2 2024[12] - U S SHOP growth was ~16%, or over 18% YoY excluding the prior year property tax refund[12] 2025 Outlook - Senior housing investment guidance increased from $1.5 billion to $2.0 billion[12] - Normalized FFO per share midpoint improved by $0.03 to $3.44[15] - SHOP Same-Store Cash NOI growth guidance range is 12% - 16%[14] Capital & Portfolio - $1.1 billion of accretive senior housing investments closed year-to-date[12, 55] - ~$1.8 billion of equity raised, including ~$0.7 billion of unsettled equity forward sales agreements[12] - Liquidity of $4.7 billion as of June 30, 2025[12] - Net Debt to Further Adjusted EBITDA improved to 5.6x, a 0.4x reduction from year-end 2024[12]

Summary of Ventas (VTR) 2025 Conference Call Company Overview - **Company**: Ventas, Inc. (VTR) - **Industry**: Senior Housing and Real Estate Investment Trust (REIT) - **Focus**: Serving the aging population within the longevity economy, capitalizing on strong demand trends and limited supply [1][2] Key Financial Metrics - **FFO per Share Growth**: Expected to increase by 7% at the midpoint for 2025 [1] - **Same Store Senior Housing Operating Portfolio (SHOP) Growth**: Expected growth rate revised to 12-16% [1][5] - **Occupancy Rate**: Approximately 86% across the total SHOP portfolio [2][13] Strategic Initiatives - **One Two Three Strategy**: Focused on driving multiyear Net Operating Income (NOI) growth through: - Organic growth contributing about $100 million annually [2] - Capital allocation for external growth, targeting $1.5 billion in investments for 2025 [3] - **Portfolio Composition**: Transitioning communities from triple net structure to SHOP structure to enhance occupancy and performance [11][14] Market Dynamics - **Demand Trends**: Strong demand for senior housing driven by a burgeoning senior population, with projections indicating a significant increase in the 80+ demographic [26] - **Occupancy Growth**: Sequential occupancy gains of 30-50 basis points observed from March to May, with a strong start to the key selling season [8][35] - **Pricing Power**: Strong revenue per occupied room (RevPOR) growth, with in-house rent increases around 7% and street rates catching up [17][18] Operational Insights - **Incremental Margins**: Expected incremental margins of 50% when moving from 80% to 90% occupancy, and 70% from 90% to 100% occupancy due to fixed costs [21][22] - **Mortality Impact**: Elevated mortality rates noted, impacting occupancy but not demand; strong move-ins recorded despite macroeconomic uncertainties [6][34] Investment Activity - **Investment Pipeline**: $2.8 billion in senior housing investments closed, with a projected $1.5 billion for 2025, focusing on high-performing communities [40][42] - **Sourcing Transactions**: 70% of transactions sourced through relationships with operators, indicating a competitive advantage in a fragmented market [44][46] Competitive Positioning - **Operator Relationships**: Ventas has expanded its operator pool to 33, enhancing its ability to manage diverse markets and asset classes [12][46] - **Analytics Platform**: Utilization of a data analytics platform to optimize pricing and operational performance, providing a competitive edge [51][52] Economic Resilience - **Market Resilience**: Historical performance indicates that senior housing remains resilient during economic downturns, with demand continuing to grow despite market shocks [28][30] Funding Strategy - **Funding Sources**: Primarily equity-funded investments, leading to improved leverage and attractive returns [58] Conclusion - **Outlook**: Ventas is well-positioned to capitalize on the growing demand for senior housing, with a robust strategy focused on organic and external growth, strong operator relationships, and a favorable market environment [4][25]

First Quarter 2025 Financial Performance - Normalized FFO per share for the first quarter of 2025 was $0.84, an increase of approximately 8% year-over-year, driven by SHOP NOI growth and accretive senior housing investment activity[15] - Total Company Same-Store Cash NOI grew 7.1% year-over-year in the first quarter of 2025, led by SHOP[15] - SHOP Same-Store Cash NOI grew 13.6%, with U S growth leading at 16%[15] - The company reaffirmed previous guidance ranges for Attributable Net Income, Nareit FFO, and Normalized FFO per share, as well as segment and total company same-store cash NOI growth[15] Full Year 2025 Guidance - The guidance for Attributable Net Income per share is between $0.42 and $0.53, with a midpoint of $0.48[14] - Nareit FFO per share is projected to be in the range of $3.27 to $3.38, with a midpoint of $3.33[14] - Normalized FFO per share is expected to range from $3.35 to $3.46, with a midpoint of $3.41[14] - Same-Store Cash NOI Growth is guided as follows: SHOP between 11.0% and 16.0%, Outpatient Medical & Research between 2.0% and 3.0%, Triple-Net between (1.5%) and (0.5%), and Total Company between 5.5% and 8.0%[14] Investment and Capital Activities - Approximately $900 million of accretive senior housing investments were closed year-to-date, meeting stated criteria[15] - $1.3 billion of equity was issued, including $1.1 billion issued year-to-date via equity forward sales agreements, combined with $0.2 billion of unsettled equity forward sales agreements at year-end 2024[15] - The company increased the capacity of its unsecured credit facility by $750 million to an aggregate of $3.5 billion in April[15] - The company expects to dispose of assets for approximately $200 million in net proceeds[15]