Ventas(US:VTR)2022-11-04 18:29Financial 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]