Yesterday, we issued our second quarter 2025 earnings release, presentation materials, and supplemental information package, which are available on the Ventas website at ir.ventasreit.com. For a more detailed discussion of those factors, please refer to our earnings release for this quarter and to our most recent SEC filings, all of which are available on the Ventas website. I'd like to welcome all of our shareholders and other participants to the Ventas second quarter 2025 earnings call. We're pleased to report strong earnings growth and, again, raise our guidance as we execute our 1-2-3 strategy.
Ventas is an essential participant in the longevity economy and is well-positioned to capitalize on the secular demand from the large and growing aging population our company serves. This engine of our growth is being supplemented by compounding contributions from the balance of our portfolio and our continually improving balance sheet. Our 1-2-3 strategy is designed to deliver superior FFO per share growth, enhance our financial strength, and create value for our shareholders. We also raised our full-year normalized FFO guidance midpoint to $3.44 per share, representing 8% accelerating year-over-year FFO per share growth at the midpoint.
We also improved our company-wide same-store year-over-year cash NOI growth expectations to 7% at the midpoint. If achieved, these growth rates would put us in the upper echelon of REIT growers. One, drive organic growth in our SHOP communities using our platform advantages, data analytics, and experience. delivered 18% same-store cash NOI growth in Q2, adjusting for a tax refund we received in the prior year.
| Metric | Period | Current guidance |
|---|---|---|
| Normalized FFO per share | FY2025 | $3.44 midpoint (+$0.03), about 8% YoY growth |
| Income attributable to common per share | FY2025 | $0.47-$0.52 |
| Total company same-store cash NOI growth | FY2025 | approximately 7% at midpoint (raised and narrowed) |
| SHOP same-store NOI growth | FY2025 | 12%-16% (midpoint reaffirmed) |
| SHOP occupancy growth | FY2025 | 270 bps (maintained) |
| SHOP RevPOR growth | FY2025 | 4.5% |
| SHOP operating expense growth | FY2025 | 5% |
| Senior housing investment volume | FY2025 | $2 billion |
| Metric | YoY | Note |
|---|---|---|
| Normalized FFO per share | approximately 9% ($0.87) | Total company same-store cash NOI growth of nearly 7% led by SHOP increasing over 13%. |
| SHOP same-store NOI | over 13% (U.S. 16%; 18% adj.) | Accelerating occupancy and strong pricing; underlying U.S. NOI up 18% adjusting for prior-year tax refund. |
| SHOP revenue | 8.2% | Accelerating occupancy throughout the quarter and strong pricing producing 5.3% RevPOR growth. |
| SHOP occupancy | +240 bps (U.S. +290 bps) | Strong move-ins throughout the quarter, exceptional in June, while move-outs normalized; Holiday by Atria led with 110 bps sequential June growth. |
| RevPOR | 5.3% | Price-volume optimization via dynamic pricing; higher move-in rents and continued strength in internal rent increases. |
| OMR same-store cash NOI | 1.7% | Led by outpatient medical (up 2.2%); occupancy up 20 bps sequentially and 30 bps year-over-year to 90.1% with 86% retention and 1 million sq ft of leasing. |
| Research same-store cash NOI | -less than 1% (about -$100,000) | Lower rents on certain innovation flex space tenants. |
| Leverage (net debt to EBITDA) | 5.6x | 40 bps improvement since start of year (10 bps sequential) via organic growth and equity-funded investments. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Longevity economy and demand runway | Aging population driving demand. | Over-80 population to grow 28% (4 million individuals) in the next five years as the leading edge of baby boomers turns 80 in 2026; the number turning 80 increases every year through 2038, elongating the multi-year growth opportunity. | — |
| Supply constraints | Low new supply. | New starts hovering at record lows, approximating only 2,000 units in Q2; constraints expected to persist for an extended period. | — |
| Operator expansion | 10 operators five years ago. | Reached 36 operators as of July; selectively growing with top performers having strong local clusters and product expertise; relationships are a major source of proprietary, relationship-driven deal flow. | — |
| Triple net to SHOP conversion (Brookdale 45) | Conversion strategy underway. | Next big tranche is the 45 former Brookdale communities at 78% occupancy, moving to five aligned operators via aligned management agreements with NOI-generating CapEx; expect to double NOI over time (from ~$50 million to ~$100 million); transitions begin in coming months, financial impact mainly in 2026. | — |
| Ventas OI and dynamic pricing | Platform driving performance. | Five-year actions: 130+ triple-net-to-SHOP conversions, 260+ manager transitions, 110+ dispositions, 300+ refreshes, 190+ acquisitions; dynamic pricing and price-volume optimization the best they've been, with day-to-day/week-by-week sales execution alongside operators (e.g., Atria/Holiday). | — |
| Outpatient medical and policy | Outpatient trend a tailwind. | Occupancy at 90.1% with structural max around 95% (historical high 93%-94%); 3% escalators; the 'big beautiful bill' has delayed implementation with minimal near-term impact, and the outpatient shift (e.g., CMS proposal to remove the inpatient-only list) is favorable for the business. | — |