2018 ANNUAL REPORTExcellence. Sustained. 2018 ACCOMPLISHMENTS
2018 ANNUAL REPORT
Normalized Funds from Operations (FFO) per diluted
Common Share
2018 2017
$4.07
$4.16
Reported Funds from Operations (NAREIT FFO)
per diluted Common Share
$3.64
$4.22
Net Income per diluted Common Share
Net Debt to Adjusted Pro Forma EBITDA
Same Store Net Operating Income (NOI) Growth
Total Indebtedness to Gross Value
Fixed Charge Coverage
Dividend per Share
Revenue ($ Millions)
Operating Cash Flow ($ Millions)
$1.14
5.6x
1.2%
37%
4.6x
$3.78
5.7x
2.5%
38%
4.6x
$3.163
$3.115
$3,746
$3,574
$1,381
$1,429
1 Total shareholder return represents compound annual growth rate through December 31,
2 This Annual Report contains certain non-GAAP financial measures. Reconciliations of each of these non-GAAP financial measures are available on the Company’s
website at https://www.ventasreit.com/investor-relations/non-gaap-financial-measures. Data as of 12/31 of the respective year per Q4 2018/2017/2016 filings, press
release, supplemental and earnings conference calls.
3 Source: Company financials. FFO growth based on arithmetic average of annual growth rates from the 2001–2018 period. FFO average utilizes 2015 and 2016
Comparable normalized FFO / share growth rates of 9% per the Company’s Q4 and full year 2018 earnings release and 5% per the Company’s Q4 and full year 2016
press release, respectively. Dividend per share growth based on cash dividends paid from the 2001-2018 period, excluding special dividends or share distributions.
2018.
4 Source: Bloomberg
9th Consecutive Year of Dividend Growth 32018 FINANCIAL ACCOMPLISHMENTSFINANCIAL RESULTS22$32 BillionEnterprise Value2of Debt2$3.5 BillionRefinanced/RepaidAnnual FFO/ShareGrowth Since 20013 9%Private Pay Revenues295%Credit Rating 2018 TOTAL SHAREHOLDER RETURN4VENTASS&P 500 MSCI US REIT INDEX+3.4%-4.4%-4.6%BBB+Compound Annual TSR since 20001 23%Proceeds Harvested from Successful Investments2$1.3 Billion
2018 ANNUAL REPORT
LETTER
3LETTER TO STAKEHOLDERSExcellence is a Ventas hallmark. Since our earliest days, we have been motivated by our promise to deliver superior returns for our stockholders. Driven by reliable cash flows and a strong balance sheet, we are fueled by a high quality, diverse portfolio that caters to the growing demographic needs of a burgeoning senior population. 2018 – our twentieth anniversary year – was no exception. We further extended our two-decade-long history of outperformance, delivering positive total returns to shareholders and substantially outpacing both the REIT and S&P 500 indices. We increased our dividend for a ninth consecutive year.Importantly, we continued to transform and elevate our high-quality, diversified portfolio with new forward-facing businesses. We redeployed proceeds from successful investments to enhance balance sheet strength and invest in our future growth, including the addition of premier private pay assets and our 10+ project strong $1.5 billion Research & Innovation (R&I) development pipeline.Our success is predicated on collaborating with best-in-class operators and developers. In 2018, we enhanced and expanded our relationships with key industry partners who offer scale and sophistication in their areas of expertise – Wexford (R&I); PMB (Medical Office Buildings MOB); Ardent Health Services (Health Systems); Atria and Sunrise (Seniors Housing) – as well as crafting new beneficial arrangements with care providers like Brookdale and ESL.At our core, we have the most skilled, cohesive and committed team in the business. We are gratified that our people and Company were honored throughout the year by prestigious organizations who recognize our consistent track record of excellence, our significant contributions to the industries where we have a major presence, and our leadership in environmental, social and governance (ESG) matters.As we look to 2019 and beyond, we are sharply focused on returning to our longstanding history of growth and expect this to be a pivot year in the transition. Our strong foundation and supportive market trends will combine to produce sustainable expansion through four key building blocks: • Realizing a powerful upside in seniors housing as the nation’s seniors population increases in number, embraces senior living in greater percentages and captures greater market share• Capturing the benefits of our R&I portfolio and development pipeline as projects affiliated with the nation’s leading research universities deliver and lease up• Utilizing our financial strength and flexibility• Reigniting our execution of successful accretive acquisitionsOur strong, smart and unified Ventas team is poised for consistent outperformance for you, our stakeholders, and in support of the 60,000 residents in our senior living communities who have the opportunity to live with dignity and an enhanced quality of health and wellness; for the 12,000+ physicians who provide care to over 36 million patient visits annually in our medical office and outpatient facilities; and for the entrepreneurs, medical and scientific university researchers and dedicated companies who innovate in our R&I buildings to discover and deliver cutting edge cures for chronic and life-threatening illnesses.Last year, we celebrated 20 years of outperformance. This year, we are excited by our core capabilities and portfolio, powerful and positive demographic trends and strong financial position that will return us to growth. We will continue to devote ourselves to excellence, integrity and performance in the years ahead. Thank you for your continued support.DEBRA A. CAFARO Chairman and Chief Executive Officer
PORTFOLIO HIGHLIGHTS
2018 ANNUAL REPORT
SENIORS HOUSING
Representing just over half of the Company’s net operating
income (NOI), Ventas’s 727 seniors housing communities
provide compelling residential environments for seniors with
caring assistance and support for their daily needs. These
communities generate resilient private pay revenues and
provide high-quality consumer-driven choice for seniors.
31%
23%
Brookdale Battery Park City,
New York, NY
20%
60,000+ SENIORS LIVING WITH
DIGNITY IN OUR COMMUNITIES
7%
7%
6%
3%
2%
MEDICAL OFFICE/
OUTPATIENT BUILDINGS
The Ventas Medical Office/Outpatient Building (MOB)
portfolio generates reliable growing cash flows and has
expanded more than seven times since its inception in
2010. Generally affiliated with or on the campus of market
leading hospitals, Ventas’s 20+ million square feet MOB
portfolio expands across 360 properties in 32 states.
Sutter Van Ness Medical Office Building,
San Francisco, CA
12,000+ PHYSICIANS PROVIDING
CARE FOR MORE THAN 36 MILLION
PATIENT VISITS EACH YEAR
4Research & Innovation CentersPORTFOLIO HIGHLIGHTSCURATED HIGH-QUALITY DIVERSIFIED PROPERTY PORTFOLIO~$2B NOISeniors Housing Operating (SHOP)Seniors Housing Triple Net (NNN)Medical Office/Outpatient Buildings (MOB)Health SystemsLoansOtherInpatient Rehabilitation Facility (IRF) & Long Term Acute Care (LTAC)
2018 ANNUAL REPORT
PORTFOLIO HIGHLIGHTS
RESEARCH & INNOVATION
As the leading developer of university-based Research & Innovation (R&I) knowledge communities, Ventas and
its exclusive development partner Wexford Science & Technology are actively expanding our R&I portfolio with
the nation’s leading research institutions. A priority in the Company’s current capital allocation, Ventas has grown
the business by nearly 50 percent since its inception in 2016. The partnership has created a $1.5 billion near-term
development pipeline comprised of 10+ projects with existing and new university relationships.
uCity Square, University of
Pennsylvania, Drexel University
South Street Landing,
Brown University
Cortex Innovation Community,
Washington University in St. Louis
Phoenix Biomedical Center,
Arizona State University
Converge Miami,
University of Miami
Wake Forest Innovation Center,
Wake Forest University
BLINDNESS
DIABETES
CANCER
GENETICS
OUR 14 UNIVERSITY
RELATIONSHIPS
(<1% OF UNIVERSITIES
NATIONWIDE) FUEL
10% OF ALL R&D
SPENDING IN THE U.S.
University of Pennsylvania
Washington University
in St. Louis
Duke University
Yale University
University of Maryland
Baltimore
University of Miami
Wake Forest University
Brown University
Virginia Commonwealth
University (VCU)
Penn State
Arizona State University
Drexel University
Illinois Institute
of Technology
IMMUNOTHERAPY
Old Dominion University
5Research labs where the world’s best scientists are developing cures and solutions for chronic and life-threatening conditions
ESG HIGHLIGHTS
2018 ANNUAL REPORT
2018 HIGHLIGHTS
Member of the
Dow Jones Sustainability™
North America Index
Designated a Winning Company
by 2020 Women on Boards Gender
Diversity Index
Listed on FTSE4GOOD
Sustainability Index since 2013
#1 Healthcare REIT 2017 & 2018
in GRESB Real Estate Assessment
ENERGY STAR® Charter
Tenant for the Ventas headquarters
location in Chicago, IL
Fortune World’s Most
Admired Companies:
Only Healthcare REIT
listed in 2017 and 2018
Third time winners of the Nareit
Healthcare Leader in the Light
Harvard Business Review Named
Debra A. Cafaro a Top 50 Best
Performing CEO in the World
for the 5th time
The first real estate investment
trust (REIT) to join the CEO Action
for Diversity & Inclusion™
100+ LEED® and ENERGY
STAR® certified properties
Achieved Leadership Band
in the CDP global disclosure system
for implementing best practices on
climate change
Nearly $1 Million donated to
78 important causes through the
Ventas Charitable Foundation
COMMITMENT TO ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG)Our commitment to ESG is reflected in our strong corporate governance, ethical business practices and policies, and our engagement with the communities where we operate. It is also manifest to our efforts to minimize the environmental impact of our portfolio and corporate operations. These smart and responsible practices benefit all our stakeholders – shareholders, partners, tenants, residents and employees alike because they provide resilience in the face of economic, social and environmental challenges. Sustainable practices and resilience are essential to delivering superior long-term results.6
2018 ANNUAL REPORT
ESG HIGHLIGHTS
INTERNATIONAL RECOGNITION
To provide the information stakeholders need to make informed decisions,
Ventas voluntarily participates in several ESG-based reporting initiatives at
the national and international level.
CDP, formerly the Carbon Disclosure Project, is a global
disclosure system that enables companies, cities, states and
regions to measure and manage their environmental impacts.
It is the world’s most comprehensive collection of self-reported
environmental data.
GRESB assesses and benchmarks the ESG performance of
real asset investments and infrastructure portfolios and assets
worldwide to provide standardized and validated data to capital
markets. More than 80 institutional investors use GRESB
data and analytical tools to engage with investment managers
to enhance and protect shareholder value. GRESB Investor
Members represent over US$ 18 trillion in institutional capital.
Dow Jones Sustainability Indices are a family of indices that
serve as benchmarks for investors who integrate sustainability
considerations into their portfolios and provide an effective
engagement platform for investors who wish to encourage
companies to improve their corporate sustainability practices.
FTSE4Good is a series of ethical investment stock market indices
launched in 2001 by the FTSE Group. The index rates companies
for inclusion-based environmental sustainability, relationships with
stakeholders, and attitudes toward human rights, supply chain
labor standards and the countering of bribery.
Ventas published its inaugural CSR report in October 2018, showcasing the
Company’s leadership in its environmental, social and governance (ESG)
policies and practices. Covering the period of 2017 through early 2018, the
report references criteria from the Global Reporting Initiative (GRI), the world’s
most widely-used sustainability reporting framework.
“As an organization founded on integrity, transparency and trust, we are
extremely proud to launch our first CSR report and further demonstrate our
commitment to ESG. We firmly believe there is an unbreakable bond between
business performance and corporate responsibility and, with ESG principles
woven into our decision-making process, our enterprise is built for long-term
sustainable success.” Debra A. Cafaro, Ventas Chairman and CEO
CORPORATE SUSTAINABILITY REPORT7
DIRECTORS
Debra A. Cafaro
Chairman and Chief
Executive Officer,
Ventas, Inc.
James D. Shelton
Presiding Director, Ventas, Inc.,
Former Lead Independent Director,
Envision Healthcare Holdings,
Former Chief Executive Officer and
Chairman, Triad Hospitals
Jay M. Gellert
Former President and
Chief Executive Officer,
Health Net, Inc.
Richard I. Gilchrist
Senior Advisor, The Irvine Company,
Chairman, TIER REIT, Inc.
Melody C. Barnes
Co-Founder and Principal
MB, Squared Solutions, LLC.,
Senior Fellow, Compton Visiting
Professor in World Politics and
Co-Director, Democracy Initiative,
University of Virginia
Matthew J. Lustig
Head of North America
Investment Banking and Head
of Real Estate and Lodging,
Lazard Frères & Co., LLC.
Roxanne M. Martino
Managing Partner, OceanM19,
Former Chief Executive Officer,
Partner and Investment Committee
Chair, Aurora Investments
Management, LLC.
EXECUTIVE OFFICERS
Debra A. Cafaro
Chairman and Chief
Executive Officer
Robert F. Probst
Executive Vice President
and Chief Financial Officer
Walter C. Rakowich
Former Chief Executive Officer,
Prologis, Inc., Lead Independent
Director, Host Hotels & Resorts
Robert D. Reed
Former Senior Vice President
and Chief Financial Officer,
Sutter Health
John D. Cobb
Executive Vice President
and Chief Investment Officer
Peter J. Bulgarelli
Executive Vice President,
Office and President and Chief
Executive Officer, Lillibridge
Healthcare Services
T. Richard Riney
Executive Vice President,
Chief Administrative Officer,
General Counsel and Ethics
and Compliance Officer
LEADERSHIP ANNUAL MEETING
The Annual Meeting of Stockholders
will convene May 14, 2019 at
8:00 a.m. (CDT) at 353 North Clark Street,
James C. Tyree Auditorium, Chicago,
IL 60654
TRANSFER AGENT
& REGISTRAR
EQ Shareowner Services
P.O. Box 64874
St. Paul, MN 55164-0854
(800) 401 1957
STOCK INFORMATION
INDEPENDENT AUDITORS
NYSE Symbol: VTR
As of March 15, 2019, Ventas had
357.4 million shares outstanding.
KPMG LLP
INFORMATION
Copies of our 2018 Form 10-K
and other filings with the Securities
and Exchange Commission may
be obtained without charge via our
website at ventasreit.com
MEMBER
National Association of Real Estate
Investment Trusts
ventasreit.com
CORPORATE HEADQUARTERS
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