Ventas, Inc. · NYSE:VTR
Ventas — Investor Presentation (May 2017)
20 slides from Ventas's investor presentation, May 2017
Slide 1: Ventas Life Science and Innovation Centers
Ventas Life Science and Innovation Centers May 2017
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, statements of ex
Slide 3: Ventas Investment Thesis
VENTAS INVESTMENT THESIS EXCELLENCE. SUSTAINED. We are the premier provider of capital to leading senior living and healthcare operators and research institutions Ventas is positioned at the intersection of two large and dynamic markets: healthcare and real estate • Each represents nearly 20% of U.S
Slide 4: Life Science and Innovation Center Investment Thesis
LIFE SCIENCE AND INNOVATION CENTER INVESTMENT THESIS EXCELLENCE. SUSTAINED. Ventas has a long track record of providing innovative capital solutions to help research institutions and healthcare and senior living operators fulfill their core missions Ventas’s life science portfolio has a strong align
Slide 5: Normalized FFO per Share Growth (Indexed to 2001)
OUR FORESIGHT AND INNOVATION CHANGED THE WAY REAL ESTATE INVESTORS THINK ABOUT HEALTHCARE; CHANGING THE WAY LEADING ORGANIZATIONS THINK ABOUT REAL ESTATE Execute Grow Platforms with Healthcare Real Estate Foresight Early Winning Organizations ~25% Growth in 5.0 Life Science Business NORMALIZED FFO (
Slide 6: Exciting Entrée into University-Based Life Science & Innovation Business
EXCITING ENTRÉE INTO UNIVERSITY-BASED LIFE SCIENCE & INNOVATION BUSINESS High-Quality Properties Partnerships with Leading Institutions 5
Slide 7: Ventas Funds Highly-Rated Universities & Frees Up Capital for Core Uses
VENTAS FUNDS HIGHLY-RATED UNIVERSITIES & FREES UP CAPITAL FOR CORE USES Significant Needs for Research / Other University Capital Uses Innovation Campus Development Universities Can • Universities, including those with • Create life science & innovation Leverage Limited excellent cost of capital, ha
Slide 8: The Life Science Market
THE LIFE SCIENCE MARKET University Life Science R&D Spending ~$40B and Growing VTR Current Tenants Account for 11% of University Life Science CAGR R&D Spending (~$4B) $38B +3.6% $6B +4.0% $28B $4B $21B +3.7% $15B $9B $12B +3.2% 2005 2014 Biological Sciences Medical Sciences Other Fueled by the Megat
Slide 9: Strong Alignment with Ventas Strategy
STRONG ALIGNMENT WITH VENTAS STRATEGY Ventas Portfolio Strategic Focus Life Science Business Top Research Universities, Investment Leading Care Providers and Research Grade Tenants and Public Companies Institutions $1B+ Market Cap Reliable, Growing Cash Flows Long Lease Terms and Stable Escalators N
Slide 10: Ventas Office Portfolio
VENTAS OFFICE PORTFOLIO1 Specialty Hospitals International Hospitals • ~25% attractive life science and Loans Seniors U.S. Acute 7% Housing - medical office 1% Care Hospitals 6% Operating 30% −>20M square foot leading national Skilled Nursing 5% MOB outpatient business Life 6% 1% $2B −>4M square foo
Slide 11: Case Study: Attractive Investment with Strong Risk Adjusted Return
CASE STUDY: ATTRACTIVE INVESTMENT WITH STRONG RISK ADJUSTED RETURN VTR Life Science VTR Life Science1 Duke MOBs vs. Duke MOBs Average Occupancy2 97% 93% Average Lease Term2 10 Years 9-10 Years Portfolio Average Age2 6 Years 8 Years % Office Properties3 100% ~80% Tenant Credit Profile4 >75% A
Slide 12: The Ventas Advantage
THE VENTAS ADVANTAGE ENSURING EXCELLENCE. SUSTAINED. OUR PEOPLE OUR PROCESSES PEOPLE OUR CULTURE ADVANTAGED REAL ADVANTAGE LEADING ESTATE ASSETS IN OPERATORS ATTRACTIVE PROPERTIES ACROSS THE PLATFORMS MARKETS SITES OF CARE 11
Slide 13: High-Quality, Newly Constructed Properties
PEOPLE HIGH-QUALITY, NEWLY CONSTRUCTED PROPERTIES PLATFORMS PROPERTIES Newly Built Properties (Age)1,2 Virtually No Near-Term Expirations ($ Revenue)2,3 % Revenue Rolling Over 45% 3% 6% 9% 3% 78% $122 24% 20% 6% 5% $14 $10 $4 $5 ≤3 Years 4-6 Years 7-9 Years 10-12 Years >12 Years 2017 2018 2019 2020
Slide 14: Excellent Credit Tenants Principally on Campus of Major Research Institutions
PEOPLE EXCELLENT CREDIT TENANTS PRINCIPALLY PROPERTIES PLATFORMS ON CAMPUS OF MAJOR RESEARCH INSTITUTIONS Revenue from Excellent Credit Tenants1,2,3 Adjacency to Major Research Institutions2,4 Other 6% Other 24% 76% 94% Excellent Credit On-Campus / Adjacent Tenants to Major Research Institution 94%
Slide 15: Delivering Value to Shareholders and Meeting Customer Needs
PEOPLE DELIVERING VALUE TO SHAREHOLDERS PROPERTIES PLATFORMS AND MEETING CUSTOMER NEEDS • >7x investment growth ~5 years • Stable, growing cash flows MOBs • Significant multiple expansion since investment creates value • Trophy development project underway • ~$3B initial investment with consistent c
Slide 16: Ventas-Wexford Platform
PEOPLE PROPERTIES PLATFORMS VENTAS-WEXFORD PLATFORM Exclusive Relationship with Wexford Wexford is the leading real estate development company focused exclusively on partnering with universities, academic medical centers and research companies Ventas relationship with Wexford: – Exclusive pipeli
Slide 17: Significant Follow-On Growth Since Initial $1.5B Acquisition
PEOPLE PROPERTIES PLATFORMS SIGNIFICANT FOLLOW-ON GROWTH SINCE INITIAL $1.5B ACQUISITION Investment ($B)1 $1.8 >$350M (~25%) Life Science Business Growth in ~6 Months $1.5 2 development projects associated with the University of Pennsylvania and Washington University Acquisition of a high-qualit
Slide 18: Case Studies: Providence and Philadelphia
PEOPLE CASE STUDIES: PROVIDENCE AND PROPERTIES PLATFORMS PHILADELPHIA Growth in Existing Markets New University Relationships 3675 Market Street Development South Street Landing Acquisition (Philadelphia, PA) (Providence, RI) • Expansion of Philadelphia presence • New life science market • $161M • A
Slide 19: Future Growth from University Relationships
PEOPLE FUTURE GROWTH FROM UNIVERSITY PROPERTIES PLATFORMS RELATIONSHIPS VTR Life Science University Relationships Total University Life Science R&D Spending - Tenant Life Science R&D Spending (2014) (2014) Wash. U. $586 VTR Life Science Maryland Yale 11% $382 $640 Miami $254 Next 20 Largest Penn Sta
Slide 20: Excellence. Sustained.
EXCELLENCE. SUSTAINED. 1 Welcome Overviewv9.ppt 19