Ventas(VTR)2025-02-13 18:12Financial Data and Key Metrics Changes - Ventas delivered full year normalized FFO per share of 5 billion in assets under management, contributing to the overall growth strategy [16] Market Data and Key Metrics Changes - The U.S. senior population aged 80 and above is projected to grow by 28% over the next five years, driving significant demand for senior housing [26] - New construction in senior housing markets remains constrained, with inventory growth at historic lows and new construction starts at an all-time low [27] - Approximately 25% of the portfolio is currently below 80% occupancy, indicating substantial growth potential [102] Company Strategy and Development Direction - The company plans to continue driving shop growth and expand its footprint with accretive investments focused on senior housing, expecting shop business to represent over 50% of NOI by year-end 2025 [17][18] - Ventas aims to maintain its competitive advantages through data analytics, operator relationships, and an experienced team, positioning itself well for future growth [28][41] - The company is focused on executing a community refresh program, improving living and working environments to enhance competitive positioning [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, anticipating normalized FFO per share growth of 7% at the midpoint, driven by shop growth [18][48] - The company highlighted favorable conditions for continued success, including compelling secular demand and a favorable pricing environment [20][21] - Management noted that the current labor market for operators has been favorable, with strong hiring and retention [136] Other Important Information - Ventas completed over 2.2 billion in total equity in 2024, with 200 million through capital recycling efforts, primarily from the sale of skilled nursing facilities [92] Q&A Session Summary Question: What is the trajectory for the medical office building side? - Management indicated that they had 15% more leasing than the prior year and expect occupancy gains in 2025 [58] Question: What is Ventas OI telling you about capitalizing on demographic tailwinds? - Management emphasized the importance of data analytics in making investment decisions and ensuring sustained growth opportunities [62] Question: Can you discuss the acquisition strategy targeting stabilized assets? - Management highlighted the unique opportunity to invest in high-quality assets with a combination of yield and growth, maintaining strict investment criteria [68] Question: What does the deal flow look like compared to last year? - Management noted that the pipeline is larger than last year, with increased activity and competition in the market [78] Question: What are the risks around NIH funding changes? - Management expressed confidence in the long-term prospects of biomedical research in the U.S., despite some noise around NIH grants [90] Question: Can you clarify the seasonal pattern in your guidance for 2025? - Management confirmed that they are using historical seasonality in their underwriting for 2025 [100] Question: What percentage of the portfolio is below 80% occupancy? - Management stated that about 25% of the portfolio is below 80% occupancy, indicating growth potential [102] Question: What is the outlook for capital expenditures? - Management expects capital expenditures to continue at a higher level due to increased volume from acquisitions and conversions [144]