Yesterday we issued our third 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 third quarter 2025 earnings call. Building on our momentum, Ventas delivered excellent performance and growth in the quarter as we continue to execute on our 1-2-3 strategy.
As one of the world's largest owners and acquirers of private pay senior housing, we are positioned to capitalize on the sustained growth and demand from a large and expanded aging population. We are doing both as we expect 2025 to be our fourth year of double-digit SHOP NOI growth, and we anticipate closing $2.5 billion of private pay U.S. Most importantly, we foresee at least another decade of accelerating demand for senior housing. The Ventas strategy, organization, and team have been built to meet this moment and capitalize on the favorable external demand backdrop.
Our SHOP percentage of NOI has increased nearly 2,000 basis points to represent half our business. Demographic demand is accelerating as baby boomers are starting to turn 80 this coming year, and more people than ever are choosing senior housing for the valuable benefits it provides. Yet senior housing supply is at record lows in both inventory growth and the number of new construction starts, with just over 1,200 units started in the third quarter. Our strategy is producing strong results, increasing our enterprise growth rate and building financial strength.
| Metric | Period | Current guidance |
|---|---|---|
| Normalized FFO per share | FY2025 | $3.47 midpoint (+$0.03), 9% YoY growth |
| Net income per share | FY2025 | $0.49-$0.52 |
| Total company same-store cash NOI growth | FY2025 | 7.5% (+50 bps) |
| SHOP same-store NOI growth | FY2025 | 14%-16%, 15% midpoint (+100 bps) |
| SHOP occupancy growth | FY2025 | 270 bps (maintained) |
| SHOP RevPOR growth | FY2025 | higher RevPOR, greater than 4.5% |
| Senior housing investment volume | FY2025 | $2.5 billion |
| Metric | YoY | Note |
|---|---|---|
| Normalized FFO per share | 10% ($0.88) | Total company same-store cash NOI of 8% led by SHOP growth of 16%. |
| SHOP same-store NOI | 16% (U.S. 19%) | Strength in both occupancy and pricing; margin up 200 bps to 28% on over 50% incremental margin. |
| SHOP average occupancy | +270 bps (U.S. +340 bps) | Broad-based demand with particularly strong contribution from independent living; outperformed NIC top 99 by 120 bps. |
| SHOP RevPOR | 4.7% | Dynamic pricing striking the balance between price and volume; move-in rents and in-house rates both increasing. |
| OMAR same-store cash NOI | 3.7% | Led by outpatient medical; occupancy improved 50 bps year-over-year to 90.6% with 87% TTM tenant retention (up 200 bps). |
| Research same-store cash NOI | -$400,000 | Lower rents on certain Innovation Flex Space tenants. |
| Leverage (net debt to EBITDA) | 5.3x | Full turn improvement from Q3 2024 via organic growth and equity-funded senior housing investments. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Longevity megatrend and demand | Aging population driving demand. | Baby boomers start turning 80 next year; over-80 population expected to grow 28% in the next five years; at least another decade of accelerating demand foreseen. | — |
| Supply at record lows | Constrained new supply. | Just over 1,200 units started in Q3, record lows in both inventory growth and new construction starts. | — |
| Triple net to SHOP conversion (Brookdale 45) | 121 triple-net communities transaction announced. | 27 of 45 communities converted from Brookdale lease to SHOP through October (finishing by year end); 78% occupied with refresh CapEx (~$2M per building) and over $50 million NOI upside over time; 65 communities renewed with 33% cash rent increase beginning 2026; 11 assets being disposed. | — |
| Ventas OI platform and operators | Platform evolving with growing operator base. | Working with 40+ operators (75% of the sector operated by those with 50 or fewer assets); five-year track record of 215 acquisitions, 116 dispositions, 295 manager transitions, 307 refreshes, 157 triple-net-to-SHOP conversions; data delivered to operators at the unit level. | — |
| Investment pipeline and competition | Growing pipeline, accelerating volume. | $2.2 billion closed YTD across 20 transactions / 50 communities / ~6,200 units / 15 states; average deal size $110 million; more competition and new capital but a much bigger pipeline; institutional ownership still mid-teens, leaving long runway. | — |
| Research portfolio insulation | Small portion of business. | 8% of enterprise NOI; ~75% of base rents from creditworthy institutional tenants (WALT over nine years); only ~10% leased to pre-revenue or co-working tenants; no ground-up development in progress. | — |