Ventas

“led by cash rent increases in January for Brookdale in our triple-net senior housing business”

Brookdale Senior Living is Ventas's triple-net tenant; January cash rent increases from Brookdale drive triple-net growth, while 45 former Brookdale communities were transitioned to other operators.

“set up our SHOP platform earlier this year with a new operator, CCG who's been delivering excellent results so far.”

CCG is Ventas's new U.K. SHOP operating partner, delivering excellent early results as Ventas explores U.K. expansion.

“very strong financial results with Sunrise and Atria, leading the way.”

Atria (which now operates Ventas's former Holiday IL communities) is a top-performing SHOP operating partner delivering strong results.

“very strong financial results with Sunrise and Atria, leading the way.”

Sunrise is a top-performing SHOP operating partner delivering very strong financial results for Ventas.

“the 45 communities which are 78% occupied converting from the Brookdale lease to SHOP and transitioning to 5 aligned, proven, high-performing local market-focused operators with significant transition experience and track records of delivering excellent results.”

Ventas is pulling 45 communities off Brookdale's triple-net lease into its own SHOP structure with new operators, and renewing the remaining 65 at a 33% rent increase, a negative read-through for Brookdale's leased portfolio.

“And to believe that you just have to look at Le Groupe Maurice portfolio, which is over 98% occupied and they have several communities that are running 100%.”

Le Groupe Maurice, Ventas's Canadian senior housing operator, is highlighted as a standout performer with occupancy above 98%, illustrating upside potential elsewhere in the SHOP portfolio.

“And so it's hands-on as we've been in execution and Atria has just been a tremendous partner and working with us to drive really exciting growth.”

Atria, which operates Ventas's Holiday-branded independent living communities, is credited with driving strong occupancy growth through close collaboration with Ventas's OI platform.

“If you met with us at NAREIT, you probably heard us talk about Discovery Senior Living. And they had, had 45 communities with us. They'll be much higher as we go throughout the year because they're going to be in the 60s with the recent transition.”

Discovery Senior Living, one of Ventas's operating partners, is expanding its managed community count from 45 to the 60s as Ventas transitions more properties to them — a growing, positively regarded operator relationship.

“Recall the next big conversion tranche is the 45 former Brookdale triple-net communities. This portfolio is only 78% occupied offering a long runway of growth ahead.”

Ventas is converting 45 previously Brookdale-leased triple-net communities to its own SHOP platform under new operators — a loss of leased properties for Brookdale, though management frames the transition as amicable.

“The 45 communities that are transitioning to new shop operators are actually outperforming the least assets that are staying behind in a lease.”

In Q&A, management says the 45 Brookdale communities being converted to SHOP are already outperforming the Brookdale-leased assets remaining under the triple-net structure, supporting the transition decision.

“One example of how we are positioning the portfolio for future growth is our decision to convert 45 Brookdale communities from triple net to SHOP with new operators later this year.”

Ventas is converting 45 Brookdale senior housing communities from triple-net lease to its SHOP operating structure with new operators, expecting to roughly double NOI in these communities over time.

“So, Justin, you know, I know the focus from an acquisition standpoint is high performing 90% ish type of occupancy, but you're kind of jumping out of your shoes talking about the Brookdale 77% occupied and doubling the NOI and all that.”

Analyst references Ventas's conversion of 45 large-scale senior housing communities (previously leased on a triple-net basis, associated with Brookdale) into Ventas's directly operated SHOP portfolio, aiming to double NOI on the 77%-occupied assets.