Ventas, Inc.

Roughly half of NOI derives from OM&R long-term leases and NNN triple-net contracts with contractual renewal provisions, providing a durable income floor. The SHOP operating portfolio adds variability, but same-store cash NOI has expanded for four consecutive fiscal years through FY2025, including through the 2022 inflation environment, reflecting improving occupancy and rate dynamics.

The portfolio spans three distinct healthcare property types (SHOP at 49.4% of NOI, OM&R at 24.7%, NNN at 24.6%), with no segment below 25% and no single segment exceeding 50%. All three segments share healthcare end-market exposure, which limits diversification benefit compared to a portfolio spanning unrelated industries.

Substantially all properties are located in the United States, with Canada and the United Kingdom providing a secondary but modest share of assets. Single-country concentration amplifies exposure to U.S. labor regulations, state licensing requirements, and domestic interest rate conditions.

Growth requires continuous capital deployment into new properties, and the SHOP operating model carries staffing and overhead costs that scale with headcount rather than purely with revenue. Operating leverage exists at the community level as occupancy rises, but the overall model is capital-intensive and each incremental property requires meaningful upfront investment.

OM&R and NNN leases (roughly half of NOI) are long-term, mission-critical contracts with healthcare providers that carry high switching costs and meaningful tenant credit quality. SHOP revenue is necessity-driven in-person senior care rather than discretionary, adding defensibility even though individual resident contracts are shorter in duration than institutional leases.