Yesterday, we issued our fourth quarter and full year 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 want to welcome all of our shareholders and other participants to the Ventas Fourth Quarter and Full Year 2025 Earnings Call. As secular demand from a large and growing aging population strengthens and supply remains constrained, we are intent on the significant value creation opportunity ahead.
Our normalized FFO per share increased by 9%, and our same-store SHOP cash net operating income grew 15%, our fourth consecutive year of double-digit SHOP NOI growth. We raised $7 billion of capital from a wide array of sources at attractive prices during the year. Our investment activity also accelerated as we closed $2.5 billion of high-quality senior housing investments that enhance our enterprise growth. Our investors were rewarded in 2025 as Ventas delivered total shareholder returns of 35%, significantly outperforming our industry benchmarks by wide margins and the S&P 500 in a year when it reached record highs.
We are keenly focused on the multi-year NOI growth and value creation opportunities ahead. Let's start with the durable and powerful demand trends in senior housing. Both sides of this demand-supply imbalance are weighted strongly in our favor... With a long runway ahead, we intend to continue executing our strategic vision of, 1, delivering outsized senior housing organic growth.
| Metric | Period | Current guidance |
|---|---|---|
| Normalized FFO per share | FY2026 | $3.78-$3.88, $3.83 midpoint (8% comparable growth) |
| Net income per share | FY2026 | $0.57 at midpoint |
| SHOP same-store NOI growth | FY2026 | 13%-17%, 15% midpoint |
| Total company same-store cash NOI growth | FY2026 | nearly 10% at midpoint |
| OMR same-store growth | FY2026 | 2.5% midpoint |
| Triple net same-store growth | FY2026 | over 4% (led by January Brookdale cash rent increase) |
| SHOP occupancy growth | FY2026 | 270 bps |
| SHOP RevPOR growth | FY2026 | 5% (supported by 8% in-house rent increases) |
| SHOP operating expense growth | FY2026 | 5% |
| Senior housing investment volume | FY2026 | $2.5 billion, equity-funded |
| Cash G&A | FY2026 | low $150 million range |
| Average share count | FY2026 | 503 million shares |
| FAD CapEx | FY2026 | about $400 million |
| Metric | YoY | Note |
|---|---|---|
| Full-year normalized FFO per share | 9% to $3.48 | Solid execution of the one, two, three strategy led by SHOP organic NOI growth and $2.5 billion of accretive senior housing investments. |
| Q4 normalized FFO per share | 10% | Same-store property growth of 8% led by SHOP (up 15%). |
| Q4 SHOP same-store NOI | 15.4% (U.S. 18%) | Occupancy growth of 300 bps year-over-year (U.S. 370 bps), revenue growth over 8%, and 50% incremental margin; margin up 180 bps to over 28%. |
| Q4 SHOP RevPOR | 4.7% | Mixed impact from outsized occupancy growth in lower-priced independent living portfolio. |
| Q4 OMR same-store cash NOI | nearly 4% | Outpatient medical up 4.5% with occupancy reaching almost 91% (6th consecutive quarter of occupancy growth) and TTM retention exceeding 85%. |
| Q4 research same-store NOI | 30 bps | Supported by occupancy gains from university tenants despite sector backdrop. |
| Leverage (net debt to EBITDA) | 5.2x | Best since 2012; organic growth plus equity-funded investments. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Demographic inflection point | Demand strengthening from aging population. | 2026 marks the historic point baby boomers (nearly 70 million, wealthiest generation ever) start turning 80; over-80 population to grow 28% in five years and double in two decades; over 2 million people turning 80 in 2026. | — |
| Supply constraints | Supply near all-time lows. | Only about 2,500 new senior housing units started in Q4 2025; rents need to grow 20%-30% to justify new construction, with a roughly three-year development cycle. | — |
| Investment pipeline and competition | Active pipeline, $2.5 billion closed in 2025. | U.S. senior housing pipeline of $35 billion, growing and larger with more mid-sized deals; increased competition on marketed deals but Ventas pressing advantages (track record, repeat sellers, deep operator relationships); $800M+ already closed YTD 2026 with high confidence in $2.5 billion. | — |
| Ventas OI and operators | Platform deepening with operators. | Partner with 43 operators; OI execution at all-time high with deeper collaboration via site visits, summits, dynamic pricing, NOI-driving CapEx; technology-agnostic platform; network effects widening the competitive moat. | — |
| Capital allocation and balance sheet | Equity-funded investment strategy lowering leverage. | Raised over $7 billion since start of 2025; $1.2 billion of unsettled equity; 8% dividend increase; leverage trend of deleveraging expected to continue; non-cash stock-based comp ($0.08) excluded from normalized FFO starting 2026. | — |
| Affordability and value proposition | Senior housing provides valuable benefits. | Residents can afford to live in communities almost seven times longer than the typical length of stay; baby boomers control about half the country's wealth; framed as an affordable replacement expense for living at home with in-home care. | — |