Yesterday, we issued our second quarter 2026 earnings release, presentation materials, and supplemental information package, which are available on the Ventas website at ir.ventasreit.com. For 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'm pleased to welcome you to the Ventas second quarter 2026 earnings call. Ventas delivered excellent results in the quarter, powered by strong growth in our senior housing operating portfolio and accelerating senior housing investment activity.
SHOP led the way with 18% NOI and 360 basis points of occupancy growth year-over-year as we continue to outperform the industry. Our second quarter FFO per share of $0.97 represented 9% year-over-year growth. For the full year, we are again raising our normalized FFO expectations to $3.85-3.90 per share, equating to 8%-10% growth, primarily because of our increased investment activity. Our investment success has been enabled by the integration of our Ventas OI platform with our capital allocation decisions under Justin's leadership.
senior housing, particularly acquisitions that combine attractive growth, yield, and risk-adjusted return potential. Our investment activities and outlook, of course, are based upon the unprecedented demographic demand for senior housing. The leading edge of the nearly 70 million baby boomers has just begun turning 80 this year, ushering in a decade where the growth rate of the senior population more than doubles. With demand expected to substantially outrun supply and the persistence of elongated construction timelines and high costs, we foresee an exceptional opportunity for outsized growth and value creation in the coming years.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year normalized FFO per share | FY2026 | $3.85-$3.90 ($3.88 midpoint, +$0.02); 8-10% growth |
| Full-year net income per share | FY2026 | $0.58-$0.63 ($0.61 midpoint) |
| Full-year 2026 investments | FY2026 | $4.5 billion (senior-housing focused) |
| SHOP same-store NOI growth | FY2026 | 16% at midpoint (reaffirmed) |
| SHOP same-store occupancy growth | FY2026 | +300 bps |
| Full-year dispositions / loan repayments | FY2026 | ~$700 million (non-SHOP/non-strategic assets) |
| SHOP same-store operating expense growth | FY2026 | ~5.5% (volume-driven, with margin expansion) |
| Metric | YoY | Note |
|---|---|---|
| Total-company same-store cash NOI | +10% | SHOP the primary driver with all other segments contributing double-digit same-store growth. |
| SHOP same-store cash NOI | +16% (U.S. +18%) | Occupancy up 300 bps (U.S. +360 bps) plus 5% RevPOR growth, with only 5% expense growth. |
| SHOP same-store revenue | ~+9% | Combination of occupancy and RevPOR growth, led by highly occupied communities. |
| SHOP NOI margin | +210 bps to 31% | Operating leverage as occupancy rises; 55% incremental flow-through. |
| Normalized FFO per share | $0.97 (+9%) | Strong property performance plus accretive senior-housing investment and 1-2-3 strategy execution. |
| Outpatient Medical & Research (OMAR) same-store cash NOI | +5% (outpatient medical +3% ex-fees) | 50 bps occupancy improvement and 88% tenant retention in outpatient medical. |
| Triple-net same-store cash NOI | +3% | Expected to accelerate in the second half. |
| 90%+ occupied U.S. cohort NOI | +25% (6% RevPOR) | Occupancy plus rate growth and margin expansion in about half the U.S. same-store portfolio. |
| Net debt / EBITDA | 4.7x (best in over a decade) | Organic growth plus equity-funded investments; 90 bps YoY / 30 bps sequential improvement. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Senior-housing demographic supercycle | 1-2-3 strategy adopted late 2023 | Leading edge of ~70 million baby boomers turning 80 (2 million in 2026 alone) doubles senior-population growth for a decade while new starts sit at record lows (~1,000 this quarter), setting up an exceptional multi-year NOI-growth and value-creation window. | — |
| SHOP investment engine / capital allocation | $3B 2026 target | Raised to $4.5B (over $8B since 2024); U.S. senior housing the #1 priority at mid-6% year-one yields and double-digit-to-mid-teens levered IRRs, funded via the accretive-and-deleveraging equity playbook; ~$1B under contract (two-thirds value-add) at ~6.5% yields. | — |
| Occupancy runway / stabilization thesis | 87% SHOP occupancy | Aiming to prove stabilization is far higher than historically assumed via a 'zero lost revenue days' culture; 90%+ cohort (25% NOI growth) and ~100% cohort (20% NOI growth, 7% RevPOR) demonstrate pricing power and margin expansion as occupancy climbs, with non-same-store only 83% occupied by design. | — |
| Portfolio recycling / dispositions | ~$500M normal disposition pace | Raising dispositions to ~$700M in the back half, focused on non-SHOP/non-strategic assets (including an 11%-yield loan repayment) as 'good hygiene' to improve the growth rate and push SHOP to 60% of the $60B enterprise by year-end. | — |
| Ventas OI operating platform | Active asset management build-out | Fully deployed across SHOP with data analytics, dynamic pricing, benchmarking and an AI-ready tech stack driving ~150 bps of occupancy outperformance versus industry; partnering with operators Atria, Sunrise (U.S.) and Le Groupe Maurice (Canada). | — |
| Development economics | Minimal new development | Development remains largely uneconomic (needs ~8% yield and trended rents ~25%+ higher, current ~6.5% investment yields); only disconnected luxury products may pencil, reinforcing the muted-supply thesis; Ventas stays focused on acquiring in-place cash flows. | — |
| Canada vs. U.S. RevPOR | — | Canada is 97% occupied with stable, rent-driven independent-living RevPOR under Quebec/Ontario rent restrictions (Le Groupe Maurice the standout); not viewed as the U.S. indicator, with U.S. upside instead shown by the 90%+ and ~100% occupied cohorts. | — |
| Non-same-store / Brookdale transitions | Low-occupancy transition assets | Non-same-store (~25% of SHOP NOI, 83% occupied) includes former Brookdale large-scale communities with operator changes, investment and re-leasing underway; management reaffirmed the opportunity to roughly double that NOI over time. | — |