Business & Finance
Ventas Posts 1Q23 Results
10 May 2023 - - US-based real estate investment trust Ventas, Inc. (NYSE: VTR) reported results for the first quarter ended March 31, 2023, the company said.

First Quarter 2023 Highlights

Net Income Attributable to common stockholders per share of USD 0.04 with total company year-over-year Net Operating Income change of. Excluding USD 33m of net HHS grants received in the first quarter of 2022, the total company year-over-year NOI growth was 5.8%

Normalized Funds from Operations per share of USD 0.74

Total company year-over-year same-store cash Net Operating Income growth of 8.1%

On a same-store cash NOI basis, the company's senior housing operating portfolio grew 17.4% year-over-year led by the US communities. Total same-store SHOP cash NOI growth was driven by approximately 8% revenue growth, with margin expansion of 200 basis points

Some of the financial measures throughout this press release are non-GAAP measures. Refer to the Non-GAAP Financial Measures Reconciliation tables at the end of this press release for additional information and a reconciliation to the most directly comparable GAAP measure.

Year-to-Date Highlights

Financial Strength and Flexibility: Ventas's long-term success is supported by demonstrated access to multiple sources of capital, and the company has taken several proactive measures to manage its debt maturity profile and variable rate debt exposure:

Ventas has successfully refinanced over 70% of its 2023 maturing debt, with just 1% of the company's total consolidated debt maturing for the balance of 2023.

In April, Ventas issued CAD USD600 m of 5.398% senior notes due 2028 and successfully repurchased, at a discount to par, approximately CAD 527m aggregate principal amount of its 2.80% senior notes due April 2024 and approximately CAD 87m aggregate principal amount of its 4.125% senior notes due September 2024.

In the first quarter, the company executed USD 400m in fixed pay 2-year SOFR swaps at an all-in weighted average rate of 3.79%.

As a result, Ventas improved its floating rate debt exposure to 10.5% of total consolidated debt as of March 31. This represents a 160 basis points sequential improvement and is at the favorable end of the company's targeted range.

Ventas remains committed to maintaining its BBB+ rating and preserving a strong balance sheet.

Partial Sale of Ardent Health Services: In May, Ventas closed on the previously announced sale of approximately 24% of its successful investment in Ardent OpCo for approximately USD50 m in total proceeds.

The valuation on the partial sale represents a greater than 4x equity multiple versus Ventas's original investment basis.

Post the sale, Ventas retains an approximately 7.5% equity investment in Ardent OpCo. The company expects to recognize a gain on sale of approximately USD34 m in the second quarter, which will be excluded from Normalized FFO.

Santerre Portfolio: On May 1, Ventas completed its previously announced plan to take ownership of the Santerre Portfolio through the equitization of the USD 486m principal balance Santerre Mezzanine Loan, subject to an approximately USD 1 bn non-recourse senior secured loan, with no additional consideration being paid. The company received full payment of contractual interest on its Santerre Mezzanine Loan through the April 2023 payment date.

ESG Leadership: Ventas remains committed to strong Environmental, Social and Governance practices that drive value for the company's stakeholders.

Ventas received the 2023 ENERGY STAR Partner of the Year Sustained Excellence in Energy Management Award from the US Environmental Protection Agency and the US Department of Energy.

The Sustained Excellence designation is the highest honor awarded by ENERGY STAR and reflects the third consecutive year that Ventas has earned the distinguished Partner of the Year recognition.

With more than 150 buildings certified in 2022, Ventas ranked among the top 15 ENERGY STAR certifiers of the year and became the only REIT to achieve Elite Status in the EPA's Certification Nation program.

The company is proud of its continuing commitment to best-in-class corporate governance practices.

Following its upcoming 2023 annual meeting, the Ventas board of directors will be comprised of 11 directors, 10 of whom are independent, and is expected to be 54% diverse by gender and ethnicity, with an average tenure of approximately six years for its independent directors.

All of the Committees of the board are 100% independent, with two of the board's three NYSE-required committees chaired by women.

Ventas is re-affirming its previous full year guidance for Normalized FFO, as described below.

The company is also re-affirming its guidance for net income attributable to common stockholders and Nareit FFO before the impact of purchase accounting adjustments and other GAAP impacts (e.g., depreciation and amortization) resulting from the Santerre transactions.

The company has not finalized these purchase accounting adjustments or other GAAP impacts and cannot provide guidance on net income attributable to common stockholders or Nareit FFO including such adjustments and impacts at this time.

The company also re-affirms its previous overall and segment level same-store cash NOI growth guidance. The company's guidance contains forward-looking statements and is based on a number of assumptions; actual results may differ materially.

A first quarter earnings presentation is posted to the Events & Presentations section of Ventas's website at

Additional information regarding the company can be found in its first quarter 2023 supplemental posted at

Ventas Inc., an S&P 500 company, operates at the intersection of two large and dynamic industries healthcare and real estate.

Fueled by powerful demographic demand from growth in the aging population, Ventas owns a diversified portfolio of over 1,200 properties in the United States, Canada, and the United Kingdom.

Ventas uses the power of its capital to unlock the value of senior living communities; life science, research & innovation properties; medical office & outpatient facilities, hospitals and other healthcare real estate.