Ventas (VTR) investor relations material

Market trends and demand drivers

• Demographic tailwinds from the aging over-80 population, expected to grow 28% over five years, are accelerating demand for senior housing, with a significant inflection expected in 2026 as baby boomers age into this cohort.

• Senior housing supply growth remains at record lows, with annual deliveries well below projected population growth, creating favorable conditions for occupancy and pricing power.

• Net demand in some markets is expected to exceed net absorption, potentially leading to 100% occupancy in select communities.

• The sector is experiencing multi-year double-digit NOI growth, with strong demand across both assisted and independent living.

• U.S. portfolio performance is outpacing Canada, with U.S. occupancy growth driving overall results.

Financial performance and growth strategy

• Guidance for 2024 and 2025 is for 8% FFO per share growth, with 2025 normalized FFO per share expected at $3.41–$3.46.

• Dividend growth and multiple expansion are seen as future opportunities, supported by a strengthening balance sheet and leverage expected to decline below mid-5s.

• $1.8B in senior housing acquisitions have closed year-to-date, with $2.0B expected to close in 2025 and an additional $0.5B in line-of-sight above the $2B 2025 guidance.

• Acquisitions target high-occupancy, high-barrier markets with unlevered IRRs in the low to mid-teens and yields above 7%.

• Liquidity of $4.7B as of June 30, 2025, supports continued growth and flexibility.

Operational highlights and portfolio management

• SHOP (senior housing operating portfolio) is in its fourth year of double-digit NOI growth, with broad-based occupancy gains and same-store average occupancy reaching 88.1% in June, surpassing pre-COVID levels.

• Recent acquisitions include class A senior housing in high-barrier markets, with a preference for large campuses offering a continuum of care.

• Operating leverage is significant: incremental margins are around 50% from 80-90% occupancy and 70% from 90-100%.

• The Brookdale portfolio is being partially converted to SHOP, with 45 assets targeted to double NOI from $50 million to over $100 million after $2 million per asset in CapEx; 11 NNN-to-SHOP conversions completed in September, with more expected through 4Q25.

• Expanded SHOP operator pool from 10 in Dec 2020 to 36 in July 2025, enhancing local market expertise.