Unless otherwise indicated or except where the context otherwise requires, the terms "we," "us," "our," "Company" and other similar terms in Item 2 of this Quarterly Report on Form 10-Q refer toVentas, Inc. and its consolidated subsidiaries. Cautionary Statements Forward-Looking Statements This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements include, among others, statements of expectations, beliefs, future plans and strategies, anticipated results from operations and developments and other matters that are not historical facts. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "opportunity," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events. You should not put undue reliance on these forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements. We do not undertake a duty to update these forward-looking statements, which speak only as of the date on which they are made. You are urged to carefully review the disclosures we make concerning risks and uncertainties that may affect our business and future financial performance, including those made below and in our filings with theSecurities and Exchange Commission , such as in the sections titled "Cautionary Statements - Summary Risk Factors," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2021 (the "2021 Annual Report"). Certain factors that could affect our future results and our ability to achieve our stated goals include, but are not limited to: (a) the impact of the ongoing COVID-19 pandemic and its extended consequences, including of the Delta, Omicron or any other variant, on our revenue, level of profitability, liquidity and overall risk exposure and the implementation and impact of regulations related to the CARES Act and other stimulus legislation and any future COVID-19 relief measures; (b) our ability to achieve the anticipated benefits and synergies from, and effectively integrate, our acquisitions and investments, including our acquisition ofNew Senior Investment Group Inc. ("New Senior"); (c) our exposure and the exposure of our tenants, managers and borrowers to complex healthcare and other regulation and the challenges and expense associated with complying with such regulation; (d) the potential for significant general and commercial claims, legal actions, regulatory proceedings or enforcement actions that could subject us or our tenants, managers or borrowers to increased operating costs and uninsured liabilities; (e) the impact of market and general economic conditions, including economic and financial market events, inflation, changes in interest rates, supply chain pressures, events that affect consumer confidence, our occupancy rates and resident fee revenues, and the actual and perceived state of the real estate markets, labor markets and public capital markets; (f) our ability, and the ability of our tenants, managers and borrowers, to navigate the trends impacting our or their businesses and the industries in which we or they operate; (g) the risk of bankruptcy, insolvency or financial deterioration of our tenants, managers, borrowers and other obligors and our ability to foreclose successfully on the collateral securing our loans and other investments in the event of a borrower default; (h) our ability to identify and consummate future investments in or dispositions of healthcare assets and effectively manage our portfolio opportunities and our investments in co-investment vehicles, joint ventures and minority interests; (i) risks related to development, redevelopment and construction projects; (j) our ability to attract and retain talented employees; (k) the limitations and significant requirements imposed upon our business as a result of our status as a REIT and the adverse consequences (including the possible loss of our status as a REIT) that would result if we are not able to comply; (l) the risk of changes in healthcare law or regulation or in tax laws, guidance and interpretations, particularly as applied to REITs, that could adversely affect us or our tenants, managers or borrowers; (m) increases in our borrowing costs as a result of becoming more leveraged or as a result of changes in interest rates and phasing out of LIBOR rates; (n) our reliance on third parties to operate a majority of our assets and our limited control and influence over such operations and results; (o) our dependency on a limited number of tenants and managers for a significant portion of our revenues and operating income; (p) the adequacy of insurance coverage provided by our policies and policies maintained by our tenants, managers or other counterparties; (q) the occurrence of cyber incidents that could disrupt our operations, result in the loss of confidential information or damage our business relationships and reputation; (r) the impact of merger, acquisition and investment activity in the healthcare industry or otherwise affecting our tenants, managers or borrowers; (s) disruptions to the management and operations of our business and the uncertainties caused by activist investors; and other natural events and the physical effects of climate change. 29 --------------------------------------------------------------------------------
Note regarding third-party information
This Quarterly Report includes information that has been derived fromSEC filings that has been provided to us by our tenants and managers or been derived fromSEC filings or other publicly available information of our tenants and managers. We believe that such information is accurate and that the sources from which it has been obtained are reliable. However, we cannot guarantee the accuracy of such information and have not independently verified the assumptions on which such information is based.
Company presentation
Ventas, Inc. , an S&P 500 company, is a real estate investment trust operating at the intersection of healthcare and real estate. We hold a highly diversified portfolio of senior housing communities, medical office buildings ("MOBs"), life science, research and innovation centers, hospitals and other healthcare facilities, which we generally refer to as "healthcare real estate," located throughoutthe United States ,Canada and theUnited Kingdom . As ofMarch 31, 2022 , we owned or had investments in approximately 1,300 properties (including properties classified as held for sale). Our company was originally founded in 1983 and is headquartered inChicago, Illinois with additional corporate offices inLouisville, Kentucky andNew York, New York . We primarily invest in a diversified portfolio of healthcare real estate assets through wholly owned subsidiaries and other co-investment entities. We operate through three reportable business segments: triple-net leased properties, senior living operations, which we also refer to as SHOP, and office operations. See our Consolidated Financial Statements and the related notes, including "Note 2 - Accounting Policies" and "Note 16 - Segment Information," included in Item 1 of this Quarterly Report on Form 10-Q. Our senior housing communities are either subject to triple-net leases, in which case they are included in our triple-net leased properties reportable business segment, or operated by independent third-party managers, in which case they are included in our senior living operations reportable business segment. As ofMarch 31, 2022 , we leased a total of 332 properties (excluding properties within our office operations reportable business segment) to various healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures. Our three largest tenants, Brookdale Senior Living Inc. (together with its subsidiaries, "Brookdale Senior Living"),Ardent Health Partners, LLC (together with its subsidiaries, "Ardent") andKindred Healthcare, LLC (together with its subsidiaries, "Kindred") leased from us 121 properties, 30 properties and 29 properties, respectively, as ofMarch 31, 2022 . As ofMarch 31, 2022 , pursuant to long-term management agreements, we engaged independent operators, such asAtria Senior Living, Inc. (together with its subsidiaries, including Holiday Retirement ("Holiday"), "Atria") andSunrise Senior Living, LLC (together with its subsidiaries, "Sunrise"), to manage 555 senior housing communities for us. Through ourLillibridge Healthcare Services, Inc. ("Lillibridge") subsidiary and our ownership interest inPMB Real Estate Services LLC ("PMBRES"), we also provide MOB management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughoutthe United States . In addition, from time to time, we make secured and non-mortgage loans and other investments relating to senior housing and healthcare operators or properties. We aim to enhance shareholder value by delivering consistent, superior total returns through a strategy of (1) generating reliable and growing cash flows, (2) maintaining a balanced, diversified portfolio of high-quality assets and (3) preserving our financial strength, flexibility and liquidity. Our ability to access capital in a timely and cost-effective manner is critical to the success of our business strategy because it affects our ability to satisfy existing obligations, including the repayment of maturing indebtedness, and to make future investments. Factors such as general market conditions, interest rates, credit ratings on our securities, expectations of our potential future earnings and cash distributions, and the trading price of our common stock impact our access to and cost of external capital. For that reason, we generally attempt to match the long-term duration of our investments in real property with long-term financing through the issuance of shares of our common stock or the incurrence of long-term fixed rate debt. 30 --------------------------------------------------------------------------------
First Quarter 2022 Highlights
Ongoing impact and response to the COVID-19 pandemic and its wider consequences
During fiscal 2020 and 2021 and continuing into fiscal 2022, our business has been and is expected to continue to be impacted by both the COVID-19 pandemic itself, including actions taken to prevent the spread of the virus and its variants, and its extended consequences. The trajectory and future impact of the COVID-19 pandemic remains highly uncertain. The extent of the pandemic's continuing and ultimate effect on our operational and financial performance will depend on a variety of factors, including the impact of new variants of the virus and the effectiveness of available vaccines against those variants; ongoing clinical experience, which may differ considerably across regions and fluctuate over time; and on other future developments, including the ultimate duration, spread and intensity of the outbreak, the availability of testing, the extent to which governments impose, roll-back or re-impose preventative restrictions and the availability of ongoing government financial support to our business, tenants and operators. Due to these uncertainties, we are not able at this time to estimate the ultimate impact of the COVID-19 pandemic on our business, results of operations, financial condition and cash flows.
Investments and disposals
•During the first quarter of 2022, we acquired 18 MOBs leased to affiliates of Ardent, one behavioral health center and one senior housing community for an aggregate purchase price of$349.2 million . In April, we acquired one research and innovation center inPhiladelphia, Pennsylvania for$46.1 million .
• During the first quarter of 2022, we sold a vacant plot of land for
Other items
•During the first quarter of 2022, we received$34.0 million in grants in connection with our Phase 4 applications to theProvider Relief Fund administered by theU.S. Department of Health & Human Services ("HHS") on behalf of the assisted living communities in our senior living operations segment to partially mitigate losses attributable to COVID-19. •Subsequent toMarch 31, 2022 , Ventas and Sunrise entered into a revised management agreement for 92 communities with a term expiringMay 31, 2035 . Under the new management agreement, Sunrise will receive a management fee based on a percentage of revenue and net operating income generated by the applicable communities. Sunrise is also entitled to certain incentive fees if specified performance targets are met. Ventas has the right to freely terminate the management agreement as to all communities if certain performance metrics are not met and may freely terminate the management agreement as to certain specified communities at any time. In addition, Ventas may also terminate the management agreement as it relates to three communities per year subject to the payment of a fee and an aggregate cap on such terminations over the term of the agreement. 31 --------------------------------------------------------------------------------
Concentration risk
We use concentration ratios to identify, understand and evaluate the potential impact of economic downturns and other adverse events that may affect our asset types, geographic locations, business models, and tenants, operators and managers. We evaluate concentration risk in terms of investment mix and operations mix. Investment mix measures the percentage of our investments that is concentrated in a specific asset type or that is operated or managed by a particular tenant, operator or manager. Operations mix measures the percentage of our operating results that is attributed to a particular tenant, operator or manager, geographic location or business model.
The following tables reflect our concentration risk at the dates and for the periods presented:
As of March 31, 2022 As of December 31, 2021
Investment mix by asset type (1):
Senior housing communities 67.0 % 67.4 %
MOBs 17.7 17.1
Life science, research and innovation centers 6.6 6.7
Health systems 4.9 5.0
Inpatient rehabilitation (“IRF”) and long-term acute care (“LTAC”) facilities
1.5 1.5
Skilled nursing facilities ("SNFs") 0.6 0.6
Secured loans receivable and investments, net 1.7 1.7
Total 100.0 % 100.0 %
Investment mix by tenant, operator and manager (1):
Atria (2) 26.7 % 27.0 %
Sunrise 9.9 10.0
Brookdale Senior Living 7.7 7.8
Le Groupe Maurice 7.3 7.3
Ardent 5.3 4.7
Kindred 0.8 1.0
All other 42.3 42.2
Total 100.0 % 100.0 %
______________________________
(1)The ratios are based on the gross book value of consolidated real estate investments (excluding buildings classified as held for sale) at each closing date. (2) Includes assets managed by Holiday, which was acquired by Atria in
32
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For
three months ended
2022 2021
Mix of activities by tenant and operator and business model: Revenue (1): Senior residence activities
64.0 % 58.3 %
Brookdale Senior Living (2) 3.7 4.1
Kindred 3.3 3.6
Ardent 3.2 3.5
All others 25.8 30.5
Total 100.0 % 100.0 %
Net operating income ("NOI"):
Senior living operations 37.1 % 26.6 %
Brookdale Senior Living (2) 7.8 8.8
Kindred 7.0 7.8
Ardent 6.8 7.5
All others 41.3 49.3
Total 100.0 % 100.0 %
Operations mix by geographic location (3):
California 15.0 % 15.4 %
New York 7.4 7.7
Texas 6.6 6.0
Pennsylvania 4.8 4.6
North Carolina 4.4 3.7
All others 61.8 62.6
Total 100.0 % 100.0 %
______________________________
(1)Total revenues include office building and other services revenue, revenue from loans and investments and interest and other income (including amounts related to assets classified as held for sale). (2)Results exclude eight senior housing communities which are included in the senior living operations reportable business segment. (3)Ratios are based on total revenues (including amounts related to assets classified as held for sale) for each period presented. See "Non-GAAP Financial Measures" included elsewhere in this Quarterly Report on Form 10-Q for additional disclosure and reconciliations of net income attributable to common stockholders, as computed in accordance with GAAP, to NOI.
Performance and Expiration of Triple-Net Leases
Although our lease expirations are staggered, the non-renewal of some or all of our triple-net leases that expire in any given year could have a material adverse effect on us. During the three months endedMarch 31, 2022 , we had no triple-net lease renewals or expirations without renewal that, in the aggregate, had a material impact on our financial condition or results of operations for that period. 33 --------------------------------------------------------------------------------
Significant Accounting Policies and Estimates
Our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q have been prepared in accordance withU.S. generally accepted accounting principles ("GAAP") for interim financial information set forth in the Accounting Standards Codification ("ASC"), as published by theFinancial Accounting Standards Board ("FASB"), and with theSEC instructions to Form 10-Q and Article 10 of Regulation S-X. GAAP requires us to make estimates and assumptions regarding future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base these estimates on our experience and assumptions we believe to be reasonable under the circumstances. However, if our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, we may have applied a different accounting treatment, resulting in a different presentation of our financial statements. We periodically reevaluate our estimates and assumptions, and in the event they prove to be different from actual results, we make adjustments in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Our 2021 Annual Report contains additional information regarding the critical accounting policies that affect our more significant estimates and judgments used in the preparation of our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. There have been no material changes to these policies in 2022. Please refer to "Note 2 - Accounting Policies" of the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding recently adopted accounting standards. Results of Operations As ofMarch 31, 2022 , we operated through three reportable business segments: triple-net leased properties, senior living operations and office operations. In our triple-net leased properties reportable business segment, we invest in and own senior housing and healthcare properties throughoutthe United States and theUnited Kingdom and lease those properties to healthcare operating companies under "triple-net" or "absolute-net" leases that obligate the tenants to pay all property-related expenses. In our senior living operations reportable business segment, we invest in senior housing communities throughoutthe United States andCanada and engage independent operators, such as Atria and Sunrise, to manage those communities. In our office operations reportable business segment, we primarily acquire, own, develop, lease and manage MOBs and life science, research and innovation centers throughout theUnited States. Information provided for "non-segment" includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to any of our three reportable business segments. Assets included in "non-segment" consist primarily of corporate assets, including cash, restricted cash, loans receivable and investments, and miscellaneous accounts receivable. Our chief operating decision makers evaluate performance of the combined properties in each reportable business segment and determine how to allocate resources to those segments, in significant part, based on segment net operating income ("NOI") and related measures. For further information regarding our reportable business segments and a discussion of our definition of segment NOI, see "Note 16 - Segment Information" of the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. See "Non-GAAP Financial Measures" included elsewhere in this Quarterly Report on Form 10-Q for additional disclosure and reconciliations of net income attributable to common stockholders, as computed in accordance with GAAP, to NOI. 34 --------------------------------------------------------------------------------
Three months completed
The table below shows our results of operations for the three months endedMarch 31, 2022 and 2021 and the effect of changes in those results from period to period on our net income attributable to common stockholders (dollars in thousands): For the Three Months Ended March (Decrease) Increase 31, to Net Income 2022 2021 $ % Segment NOI: Triple-net leased properties$ 147,553 $ 155,060 $ (7,507) (4.8) % Senior living operations 175,591 110,821 64,770 58.4 Office operations 137,974 135,236 2,738 2.0 Non-segment 11,866 21,615 (9,749) (45.1) Total segment NOI 472,984 422,732 50,252 11.9 Interest and other income 536 341 195 57.2 Interest expense (110,794) (110,767) (27) - Depreciation and amortization (289,064) (314,148) 25,084 8.0 General, administrative and professional fees (42,998) (40,309) (2,689) (6.7) Loss on extinguishment of debt, net - (27,090) 27,090 100.0 Transaction expenses and deal costs (19,992) (4,617) (15,375) nm Allowance on loans receivable and investments 54 8,902 (8,848) (99.4) Other 27,190 9,428 17,762 nm
Profit (loss) before unconsolidated entities, real estate disposals, income taxes and non-controlling interests
37,916 (55,528) 93,444 nm Loss from unconsolidated entities (4,269) (250) (4,019) nm Gain on real estate dispositions 2,455 2,533 (78) (3.1) Income tax benefit (expense) 4,490 (2,153) 6,643 nm Income (loss) from continuing operations 40,592 (55,398) 95,990 nm Net income (loss) 40,592 (55,398) 95,990 nm
Net income attributable to non-controlling interests 1,860
1,811 (49) (2.7)
Net income (loss) attributable to common shareholders
nm
______________________________
nm – not significant
The following table summarizes results of operations in our triple-net leased properties reportable business segment, including assets sold or classified as held for sale as ofMarch 31, 2022 (dollars in thousands): For the Three Months Ended March (Decrease) Increase 31, to Segment NOI 2022 2021 $ %Segment NOI-Triple-Net Leased Properties : Rental income$ 151,561 $ 159,885 $ (8,324) (5.2) % Less: Property-level operating expenses (4,008) (4,825) 817 16.9 Segment NOI$ 147,553 $ 155,060 $ (7,507) (4.8) In our triple-net leased properties reportable business segment, our revenues generally consist of fixed rental amounts (subject to contractual escalations) received from our tenants in accordance with the applicable lease terms. We report revenues and property-level operating expenses within our triple-net leased properties reportable business segment for real estate tax and insurance expenses that are paid from escrows collected from our tenants. 35 -------------------------------------------------------------------------------- The segment NOI decrease in our triple-net leased portfolio was primarily driven by rental income from communities that were transitioned to our senior housing operating portfolio or sold prior to the first quarter of 2022, partially offset by an increase in rental income for one property acquired after the first quarter of 2021. Occupancy rates may affect the profitability of our tenants' operations. For senior housing communities and post-acute properties in our triple-net leased properties reportable business segment, occupancy generally reflects average operator-reported unit and bed occupancy, respectively, for the reporting period. Because triple-net financials are delivered to us following the reporting period, occupancy is reported in arrears. The following table sets forth average continuing occupancy rates related to the triple-net leased properties we owned atMarch 31, 2022 and 2021 for the fourth quarter of 2022 and 2021, respectively. The table excludes non-stabilized properties, properties owned through investments in unconsolidated real estate entities, certain properties for which we do not receive occupancy information and properties acquired or properties that transitioned operators for which we do not have a full quarter of occupancy results. Average Occupancy for Average Occupancy for Number of the Three Months Number of the Three Months Properties Owned at Ended December 31, Properties Owned at Ended December 31, March 31, 2022 2021 March 31, 2021 2020
Senior housing communities 261 75.2% 284 79.2% SNFs 16 79.5 16 79.7 IRFs and LTACs 35 57.0 35 57.2
The occupancy declines are primarily the result of the impacts of COVID-19 on senior housing and SNF operations.
The following table compares results of operations for our 331 same-store
triple-net leased properties. See "Non-GAAP Financial Measures-NOI" included
elsewhere in this Quarterly Report on Form 10-Q for additional disclosure
regarding same-store NOI for each of our reportable business segments (dollars
in thousands).
For the Three Months Ended March (Decrease) Increase
31, to Segment NOI
2022 2021 $ %
$ 149,371 $ 149,428 $ (57) - % Less: Property-level operating expenses (3,798) (3,834) 36 0.9 Segment NOI$ 145,573 $ 145,594 $ (21) - Segment NOI in our same-store triple-net leased portfolio was flat during the first quarter of 2022 as compared to the same period in 2021 driven by contractual escalators offset by reduced payments from select senior housing tenants due to the continued pandemic impact.
NOI-Senior Living Operations Segment
The following table summarizes the results of operations for our reportable retirement residences segment, including assets sold or classified as held for sale in
For the Three Months Ended March Increase (Decrease)
31, to Segment NOI
2022 2021 $ %
Segment NOI-Senior Living Operations:
Resident fees and services $ 651,121 $ 528,650 $ 122,471 23.2 %
Less: Property-level operating expenses (475,530) (417,829) (57,701) (13.8)
Segment NOI $ 175,591 $ 110,821 $ 64,770 58.4
36
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Average Monthly Revenue Per
Average Unit Occupancy for the Three Occupied Room
For the Three
Number of Properties at March 31, Months Ended March 31, Months Ended March 31,
2022 2021 2022 2021 2022 2021
Total communities 546 439 80.0 % 76.3 % $ 4,373 $ 4,649
Resident fees and services include all amounts earned from residents at our
senior housing communities, such as rental fees related to resident leases,
extended health care fees and other ancillary service income. Property-level
operating expenses related to our senior living operations reportable business
segment include labor, food, utilities, marketing, management and other costs of
operating the properties. For senior housing communities in our senior living
operations reportable business segment, occupancy generally reflects average
operator-reported unit occupancy for the reporting period. Average monthly
revenue per occupied room reflects average resident fees and services per
operator-reported occupied unit for the reporting period.
The increase in our senior living operations reportable business segment NOI was
primarily driven by the acquisition of over 100 independent living communities
from New Senior in September 2021 , an overall increase in occupancy and higher
HHS grants received, which are reflected as a reduction in property-level
operating expenses. During the first quarter of 2022 and 2021, HHS grants
received reduced property-level operating expenses by $32.8 million , net of
management fees of $1.1 million , and $13.6 million , respectively.
The following table compares the operating results of our 321 seniors’ residences on a comparable store basis (in thousands of dollars):
For the Three Months Ended March Increase (Decrease)
31, to Segment NOI
2022 2021 $ %
Same-Store Segment NOI-Senior Living Operations:
Resident fees and services $ 479,716 $ 436,890 $ 42,826 9.8 %
Less: Property-level operating expenses (344,704) (329,563) (15,141) (4.6)
Segment NOI $ 135,012 $ 107,327 $ 27,685 25.8
Average Monthly Revenue Per
Average Unit Occupancy for the Three Occupied Room
For the Three
Number of Properties at March 31, Months Ended March 31, Months Ended March 31,
2022 2021 2022 2021 2022 2021
Same-store communities 321 321 83.0 % 78.8 % $ 4,821 $ 4,625
The increase in our same-store senior living operations reportable business
segment NOI was primarily driven by an overall increase in occupancy and revenue
per occupied room from strong in place resident rate increases in the U.S. and
improving re-leasing spreads as well as higher HHS grants received, which are
reflected as a reduction in property-level operating expenses, partially offset
by higher operating expenses, driven by macro inflationary impacts including
labor, utilities and other operating expenses. During the first quarter of 2022
and 2021, HHS grants received reduced property-level operating expenses by $21.1
million , net of management fees of $1.1 million , and $7.6 million , respectively.
37
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Segment NOI-Office Operations
The following table summarizes results of operations in our office operations reportable business segment, including assets sold or classified as held for sale as ofMarch 31, 2022 (dollars in thousands). For properties in our office operations reportable business segment, occupancy generally reflects occupied square footage divided by net rentable square footage as of the end of the reporting period. For the Three Months Ended March Increase (Decrease) 31, to Segment NOI 2022 2021 $ % Segment NOI-Office Operations: Rental income$ 200,540 $ 197,455 $ 3,085 1.6 % Office building and other services revenue 617 2,345 (1,728) (73.7) Total revenues 201,157 199,800 1,357 0.7
Less:
Property-level operating expenses (63,183) (63,946) 763 1.2 Office building and other services costs - (618) 618 100.0 Segment NOI$ 137,974 $ 135,236 $ 2,738 2.0 Annualized Average Rent Per Occupied Square Foot for the Three Months Ended March Number of Properties at March 31, Occupancy at March 31, 31, 2022 2021 2022 2021 2022 2021 Total office buildings 361 373 90.5 % 89.3 %$ 36 $ 34 The increase in office operations reportable business segment NOI for the three months endedMarch 31, 2022 compared to the same period in 2021 was primarily due to successful new leasing, sustained tenant retention, improved parking revenues, revenues from exiting tenants and the acquisitions of 18 MOBs and one behavioral health center during the first quarter of 2022, partially offset by dispositions of non-core assets during 2021.
The following table compares the operating results of our 332 same-store office properties (in thousands of dollars):
For the Three Months Ended March Increase (Decrease)
31, to Segment NOI
2022 2021 $ %
Same-Store Segment NOI-Office Operations:
Rental income $ 192,093 $ 180,307 $ 11,786 6.5 %
Less: Property-level operating expenses (59,811) (56,753) (3,058) (5.4)
Segment NOI $ 132,282 $ 123,554 $ 8,728 7.1
Annualized Average Rent Per
Occupied Square Foot
for the Three Months Ended March
Number of Properties at March 31, Occupancy at March 31, 31,
2022 2021 2022 2021 2022
2021
Same-store office buildings 332 332 91.8 % 91.5 %$ 37 $ 35 The increase in our same-store office operations reportable business segment NOI for the three months endedMarch 31, 2022 over the same period in 2021 was primarily due to contractual rent escalators, successful new leasing, sustained tenant retention, improved parking income and revenues from exiting tenants. 38 --------------------------------------------------------------------------------
NOI-Non-Segment
Information provided for non-segment NOI includes income from loans and investments and other miscellaneous income not directly attributable to any of our three reportable business segments. The$9.7 million decrease in non-segment NOI for the three months endedMarch 31, 2022 over the same period in 2021 was primarily due to lower income from loans receivable investments as a result of repayments during the course of 2021 of loan investments held by the Company. Company Results Interest Expense Interest expense was relatively flat for the three months endedMarch 31, 2022 compared to the same period in 2021 due to an increase of$3.1 million from an increased debt balance and$0.6 million of lower capitalized interest, offset by a decrease of$3.7 million due to a lower interest rate. Our weighted average effective interest rate was 3.49% and 3.62% for the three months endedMarch 31, 2022 and 2021, respectively. Capitalized interest for the three months endedMarch 31, 2022 and 2021 was$2.5 million and$3.1 million , respectively.
Depreciation and amortization
The$25.1 million decrease in depreciation and amortization expense was primarily due to$78.5 million of impairments recognized in the first quarter of 2021 for properties sold or classified as held for sale, partially offset by$41.9 million of depreciation on assets acquired from New Senior, and$14.3 million of impairments recognized in the first quarter of 2022.
General, administrative and professional expenses
The$2.7 million increase in general, administrative and professional fees was primarily due to the inclusion of a portion of New Senior's overhead and the return to a more normalized business environment.
Loss on extinguishment of debt, net
The$27.1 million decrease in loss on extinguishment of debt, net is primarily related to the first quarter 2021 make whole redemption for the entirety of the$400.0 million aggregate principal amount of 3.10% seniors notes dueJanuary 2023 .
Transaction expenses and transaction costs
The$15.4 million increase in transaction expenses and deal costs was primarily due to$12.0 million of costs incurred in connection with stockholder relations matters as well as costs associated with operator transitions.
Provision on loans receivable and investments
The$8.8 million decrease in allowance on loans receivable and investments was due to a change in our estimate of credit losses during the first quarter of 2021 and the corresponding reversal of allowances as ofMarch 31, 2021 .
Other
The$17.8 million increase in other income was primarily due to an increase of$8.6 million due to insurance proceeds received during the first quarter of 2022 and expenses incurred during the first quarter of 2021 relating to winter storms and an increase of$7.6 million in unrealized gain on stock warrants received in connection with the Brookdale Senior Living lease modification in the third quarter of 2020.
Loss from non-consolidated entities
the
39 --------------------------------------------------------------------------------
Gain on disposal of real estate
Gain on real estate dispositions was relatively flat for the three months endedMarch 31, 2022 compared to the same period in 2021, and relates to the sale of a vacant land parcel in the first quarter of 2022 and the sale of two MOBs and one triple-net leased property in the first quarter of 2021.
Tax benefit (expense)
The$4.5 million of income tax benefit for the three months endedMarch 31, 2022 as compared to the$2.2 million of income tax expense for the same period in 2021 was primarily due to operating losses at certain of our TRS entities and a net benefit for the unwind of certain tax credit structure during the first quarter of 2022.
Non-GAAP Financial Measures
We consider certain non-GAAP financial measures to be useful supplemental measures of our operating performance. A non-GAAP financial measure is a measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are not so excluded from or included in the most directly comparable measure calculated and presented in accordance withU.S. GAAP. Described below are the non-GAAP financial measures used by management to evaluate our operating performance and that we consider most useful to investors, together with reconciliations of these measures to the most directly comparable GAAP measures. The non-GAAP financial measures we present in this Quarterly Report on Form 10-Q may not be comparable to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. You should not consider these measures as alternatives to net income attributable to common stockholders (determined in accordance with GAAP) as indicators of our financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of our liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of our needs. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine these measures in conjunction with net income attributable to common stockholders as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Quarterly Report on Form 10-Q.
Funds from operations and normalized funds from operations attributable to common shareholders
Historical cost accounting for real estate assets implicitly assumes that the
value of real estate assets diminishes predictably over time. However, since
real estate values historically have risen or fallen with market conditions,
many industry investors deem presentations of operating results for real estate
companies that use historical cost accounting to be insufficient by themselves.
For that reason, we consider Funds From Operations attributable to common
stockholders ("FFO") and Normalized FFO to be appropriate supplemental measures
of operating performance of an equity REIT. We believe that the presentation of
FFO, combined with the presentation of required GAAP financial measures, has
improved the understanding of operating results of REITs among the investing
public and has helped make comparisons of REIT operating results more
meaningful. Management generally considers FFO to be a useful measure for
understanding and comparing our operating results because, by excluding gains
and losses related to sales of previously depreciated operating real estate
assets, impairment losses on depreciable real estate and real estate asset
depreciation and amortization (which can differ across owners of similar assets
in similar condition based on historical cost accounting and useful life
estimates), FFO can help investors compare the operating performance of a
company's real estate across reporting periods and to the operating performance
of other companies. We believe that Normalized FFO is useful because it allows
investors, analysts and our management to compare our operating performance to
the operating performance of other real estate companies and between periods on
a consistent basis without having to account for differences caused by
non-recurring items and other non-operational events such as transactions and
litigation. In some cases, we provide information about identified non-cash
components of FFO and Normalized FFO because it allows investors, analysts and
our management to assess the impact of those items on our financial results.
We use the National Association of Real Estate Investment Trusts ("Nareit")
definition of FFO. Nareit defines FFO as net income attributable to common
stockholders (computed in accordance with GAAP) excluding gains (or losses) from
sales of real estate property, including gain (or loss) on re-measurement of
equity method investments and impairment write-downs of depreciable real estate,
plus real estate depreciation and amortization, and after adjustments for
unconsolidated partnerships and entities. Adjustments for unconsolidated
partnerships and entities will be calculated to reflect FFO on the same basis.
We define Normalized FFO as FFO excluding the following income and expense items
(which may be recurring in nature): (a) transaction costs and expenses,
including amortization of intangibles, transition and integration expenses and
deal costs and expenses, including expenses and recoveries relating to
acquisition lawsuits; (b) the impact of any expenses related to asset impairment
and valuation allowances, the write-off of unamortized deferred financing fees,
or additional costs, expenses,
40
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discounts, make-whole payments, penalties or premiums incurred as a result of
early retirement or payment of our debt; (c) the non-cash effect of income tax
benefits or expenses, the non-cash impact of changes to our executive equity
compensation plan, derivative transactions that have non-cash mark-to-market
impacts on our Consolidated Statements of Income and non-cash charges related to
leases; (d) the financial impact of contingent consideration, severance-related
costs and charitable donations to the Ventas Charitable Foundation ; (e) gains
and losses for non-operational foreign currency hedge agreements and changes in
the fair value of financial instruments; (f) gains and losses on non-real estate
dispositions and other unusual items related to unconsolidated entities; (g) net
expenses or recoveries related to natural disasters and (h) any other
incremental items set forth in the Normalized FFO reconciliation included
herein.
The following table summarizes our FFO and Normalized FFO for the three months
ended March 31, 2022 and 2021 (dollars in thousands). The increase in Normalized
FFO for the three months ended March 31, 2022 over the same period in 2021 is
primarily due to increased net operating income at our senior housing
communities as a result of improved occupancy, higher revenue per occupied room,
acquisitions since the first quarter of 2021, including the acquisition of over
100 independent living communities from New Senior, and higher HHS grants
received, partially offset by lower interest income on loan investments.
For the
Three months completed
2022 2021 Net income (loss) attributable to common stockholders$ 38,732 $ (57,209) Adjustments: Depreciation and amortization on real estate assets 288,103 312,869
Depreciation of real estate assets related to non-controlling interests
(4,449) (4,618)
Depreciation of real estate assets related to non-consolidated entities
7,265 4,018 Gain on real estate dispositions (2,455) (2,533)
Gain on real estate disposals related to non-controlling interests
17 - FFO attributable to common stockholders 327,213 252,527
Adjustments:
Change in fair value of financial instruments (29,881) (21,008) Non-cash income tax (benefit) expense (5,805) 1,344 Loss on extinguishment of debt, net - 27,090 Gain on transactions related to unconsolidated entities (3) (21) Transaction expenses and deal costs 21,288 5,360 Amortization of other intangibles 268 116 Other items related to unconsolidated entities 131 101 Non-cash impact of changes to equity plan 7,206 8,741 Natural disaster (recoveries) expenses, net (3,709) 5,127 Allowance on loan investments, net of noncontrolling interests (53) (8,900) Normalized FFO attributable to common stockholders$ 316,655 $ 270,477 41
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NO I
We also consider NOI an important supplemental measure because it allows investors, analysts and our management to assess our unlevered property-level operating results and to compare our operating results with those of other real estate companies and between periods on a consistent basis. We define NOI as total revenues, less interest and other income, property-level operating expenses and office building and other services costs. Cash receipts may differ due to straight-line recognition of certain rental income and the application of other GAAP policies.
The following table provides a reconciliation of net income attributable to common shareholders to NOI (in thousands of dollars):
For the
Three months completed
2022 2021 Net income (loss) attributable to common stockholders$ 38,732 $ (57,209) Adjustments: Interest and other income (536) (341) Interest expense 110,794 110,767 Depreciation and amortization 289,064 314,148 General, administrative and professional fees 42,998 40,309 Loss on extinguishment of debt, net - 27,090 Transaction expenses and deal costs 19,992 4,617 Allowance on loans receivable and investments (54) (8,902) Other (27,190) (9,428) Net income attributable to noncontrolling interests 1,860 1,811 Loss from unconsolidated entities 4,269 250 Income tax (benefit) expense (4,490) 2,153 Gain on real estate dispositions (2,455) (2,533) NOI$ 472,984 $ 422,732 See "Results of Operations" for discussions regarding both segment NOI and same-store segment NOI. We define same-store as properties owned, consolidated and operational for the full period in both comparison periods and that are not otherwise excluded; provided, however, that we may include selected properties that otherwise meet the same-store criteria if they are included in substantially all of, but not a full, period for one or both of the comparison periods, and in our judgment such inclusion provides a more meaningful presentation of our segment performance. Newly acquired development properties and recently developed or redeveloped properties in our senior living operations reportable business segment will be included in same-store once they are stabilized for the full period in both periods presented. These properties are considered stabilized upon the earlier of (a) the achievement of 80% sustained occupancy or (b) 24 months from the date of acquisition or substantial completion of work. Recently developed or redeveloped properties in our office operations reportable business segment and triple-net leased properties reportable business segment will be included in same-store once substantial completion of work has occurred for the full period in both periods presented. Our senior living operations and triple-net leased properties that have undergone operator or business model transitions will be included in same-store once operating under consistent operating structures for the full period in both periods presented. Properties are excluded from same-store if they are: (i) sold, classified as held for sale or properties whose operations were classified as discontinued operations in accordance with GAAP; (ii) impacted by materially disruptive events such as flood or fire; (iii) for SHOP, those properties that are currently undergoing a materially disruptive redevelopment; (iv) for our office operations reportable business segment and triple-net lease properties reportable business segment, those properties for which management has an intention to institute, or has instituted, a redevelopment plan because the properties may require major property-level expenditures to maximize value, increase NOI, or maintain a market-competitive position and/or achieve property stabilization, most commonly as a result of an expected or actual material change in occupancy or NOI; or (v) for SHOP reportable business segment and triple-net leased reportable business segment, those properties that are scheduled to undergo operator or business model transitions, or have transitioned operators or business models after the start of the prior comparison period. 42 -------------------------------------------------------------------------------- To eliminate the impact of exchange rate movements, all portfolio performance-based disclosures assume constant exchange rates across comparable periods, using the following methodology: the current period's results are shown in actual reported USD, while prior comparison period's results are adjusted and converted to USD based on the average exchange rate for the current period.
Cash and capital resources
Our primary sources of liquidity are operating cash flow, proceeds from the issuance of debt and equity securities, borrowings under our unsecured revolving credit facility and proceeds from the sale of assets .
For the next 12 months, our principal liquidity needs are to: (i) fund operating expenses; (ii) meet our debt service requirements; (iii) repay maturing mortgage and other debt; (iv) fund acquisitions, investments and commitments and any development and redevelopment activities; (v) fund capital expenditures; and (vi) make distributions to our stockholders and unitholders, as required for us to continue to qualify as a REIT. Depending upon the availability of external capital, we believe our liquidity is sufficient to fund these uses of cash. We expect that these liquidity needs generally will be satisfied by a combination of the following: cash flows from operations, cash on hand, debt assumptions and financings (including secured financings), issuances of debt and equity securities, dispositions of assets (in whole or in part through joint venture arrangements with third parties) and borrowings under our revolving credit facilities and commercial paper program. However, an inability to access liquidity through multiple capital sources concurrently could have a material adverse effect on us. Our material contractual obligations arising in the normal course of business primarily consist of long-term debt and related interest payments, and operating obligations which include ground lease obligations. During the three months endedMarch 31, 2022 , there were no significant changes to our contractual obligations from those disclosed in the section "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Annual Report. See "Note 10 - Senior Notes Payable And Other Debt" of the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information regarding our significant debt activities. While continuing decreased revenue and net operating income as a result of the COVID-19 pandemic could lead to downgrades of our long-term credit rating and therefore adversely impact our cost of borrowing, we currently believe we will continue to have access to one or more debt markets during the duration of the pandemic and could seek to enter into secured debt financings or issue debt and equity securities to satisfy our liquidity needs, although no assurances can be made in this regard.
Credit facilities, commercial paper and unsecured term loans
We have a$2.75 billion unsecured revolving credit facility initially priced at LIBOR plus 0.825% based on the Company's debt rating. The unsecured revolving credit facility matures inJanuary 2025 , but may be extended at our option, subject to the satisfaction of certain conditions, for two additional periods of six months each. The credit facility also includes an accordion feature that permits us to increase our aggregate borrowing capacity thereunder to up to$3.75 billion , subject to the satisfaction of certain conditions. As ofMarch 31, 2022 , we had$2.7 billion of undrawn capacity on our unsecured revolving credit facility with$46.0 million borrowings outstanding and an additional$25.0 million restricted to support outstanding letters of credit. We limit our use of the unsecured revolving credit facility, to the extent necessary, to support our commercial paper program when commercial paper notes are outstanding. Our wholly owned subsidiary,Ventas Realty, Limited Partnership ("Ventas Realty "), may issue from time to time unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of$1.0 billion . The notes are sold under customary terms in theU.S. commercial paper note market and are ranked pari passu with all ofVentas Realty's other unsecured senior indebtedness. The notes are fully and unconditionally guaranteed byVentas, Inc. As ofMarch 31, 2022 , we had$636.9 million in borrowings outstanding under our commercial paper program.
From
From
43 --------------------------------------------------------------------------------
Senior Notes
We may, from time to time, seek to retire or purchase our outstanding senior
notes for cash or in exchange for equity securities in open market purchases,
privately negotiated transactions or otherwise. Such repurchases or exchanges,
if any, will depend on prevailing market conditions, our liquidity requirements,
contractual restrictions, prospects for capital and other factors. The amounts
involved may be material.
Equity Offerings
We participate in an "at-the-market" equity offering program ("ATM program"),
pursuant to which we may, from time to time, sell up to $1.0 billion aggregate
gross sales price of shares of our common stock. There were no issuances under
the ATM program for the three months ended March 31, 2022 . As of March 31, 2022 ,
$1.0 billion aggregate gross sales price of shares of our common stock remains
available for issuance under the ATM program.
Derivatives and hedging
In the normal course of our business, interest rate fluctuations affect future cash flows under our variable rate debt obligations, loans receivable and marketable debt securities, and foreign currency exchange rate fluctuations affect our operating results. We follow established risk management policies and procedures, including the use of derivative instruments, to mitigate the impact of these risks. Dividends During the three months endedMarch 31, 2022 , we declared a dividend of$0.45 per share of our common stock. In order to continue to qualify as a REIT, we must make annual distributions to our stockholders of at least 90% of our REIT taxable income (excluding net capital gain). In addition, we will be subject to income tax at the regular corporate rate to the extent we distribute less than 100% of our REIT taxable income, including any net capital gains. We intend to pay dividends greater than 100% of our taxable income, after the use of any net operating loss carryforwards, for 2022. We expect that our cash flows will exceed our REIT taxable income due to depreciation and other non-cash deductions in computing REIT taxable income and that we will be able to satisfy the 90% distribution requirement. However, from time to time, we may not have sufficient cash on hand or other liquid assets to meet this requirement or we may decide to retain cash or distribute such greater amount as may be necessary to avoid income and excise taxation. If we do not have sufficient cash on hand or other liquid assets to enable us to satisfy the 90% distribution requirement, or if we desire to retain cash, we may borrow funds, issue additional equity securities, pay taxable stock dividends, if possible, distribute other property or securities or engage in a transaction intended to enable us to meet the REIT distribution requirements or any combination of the foregoing.
Cash flow
The following table presents our sources and uses of cash flows for the three months ended
For the Three Months Ended March
31, (Decrease) Increase to Cash
2022 2021 $ %
Cash, cash equivalents and restricted cash at
beginning of period $ 196,597 $ 451,640 $ (255,043) (56.5) %
Net cash provided by operating activities 274,553 237,593 36,960 15.6
Net cash used in investing activities (437,326) (102,612) (334,714) nm
Net cash provided by (used in) financing activities 165,382 (377,067)
542,449 143.9 Effect of foreign currency translation 241 658 (417) (63.4)
Cash, cash equivalents and restricted cash, end of period
$ 199,447 $ 210,212 $ (10,765) (5.1) %
______________________________
nm – not significant
44 --------------------------------------------------------------------------------
Cash flow from operating activities
Cash flows from operating activities increased$37.0 million during the three months endedMarch 31, 2022 compared to the same period in 2021 primarily due to increased net operating income at our senior housing communities, including the net benefit of HHS grants received, and acquisitions since the first quarter of 2021, including the acquisition of over 100 independent living communities from New Senior, partially offset by lower interest income on loan investments and increased transaction expenses and deal costs primarily due to expenses relating to the stockholder relations matters in the first quarter of 2022.
Cash flow from investing activities
Cash flows from investing activities decreased$334.7 million during the three months endedMarch 31, 2022 compared to the same period in 2021 primarily due to the$349.2 million paid in connection with the acquisition of 18 MOBs, one behavioral health center and one senior housing community, partially offset by lower development project expenditures in the first quarter of 2022.
Cash flow from financing activities
Cash flows from financing activities increased$542.4 million during the three months endedMarch 31, 2022 compared to the same period in 2021 primarily due to theMarch 2021 redemption of$400.0 million senior notes due 2023, and increased borrowings under our commercial paper program and proceeds from debt in the first quarter of 2022.
Capital expenditure
The terms of our triple-net leases generally obligate our tenants to pay all capital expenditures necessary to maintain and improve our triple-net leased properties. However, from time to time, we may fund the capital expenditures for our triple-net leased properties through loans or advances to the tenants, which may increase the amount of rent payable with respect to the properties in certain cases. We may also fund capital expenditures for which we may become responsible upon expiration of our triple-net leases or in the event that our tenants are unable or unwilling to meet their obligations under those leases. We also expect to fund capital expenditures related to our senior living operations and office operations reportable business segments with the cash flows from the properties or through additional borrowings. We expect that these liquidity needs generally will be satisfied by a combination of the following: cash flows from operations, cash on hand, debt assumptions and financings (including secured financings), issuances of debt and equity securities, dispositions of assets (in whole or in part through joint venture arrangements with third parties) and borrowings under our revolving credit facilities. To the extent that unanticipated capital expenditure needs arise or significant borrowings are required, our liquidity may be affected adversely. Our ability to borrow additional funds may be restricted in certain circumstances by the terms of the instruments governing our outstanding indebtedness. We are party to certain agreements that obligate us to develop senior housing or healthcare properties funded through capital that we and, in certain circumstances, our joint venture partners provide. As ofMarch 31, 2022 , we had 15 properties under development pursuant to these agreements, including six properties that are owned by an unconsolidated real estate entity. In addition, from time to time, we engage in redevelopment projects with respect to our existing senior housing communities to maximize the value, increase NOI, maintain a market-competitive position, achieve property stabilization or change the primary use of the property.
Off-balance sheet arrangements
We own interests in certain unconsolidated entities as described in "Note 7 - Investments In Unconsolidated Entities." Except in limited circumstances, our risk of loss is limited to our investment in the joint venture and any outstanding loans receivable. In addition, we have certain properties which serve as collateral for debt that is owed by a previous owner of certain of our facilities, as described under "Note 10 - Senior Notes Payable And Other Debt" to the Consolidated Financial Statements. Our risk of loss for these certain properties is limited to the outstanding debt balance plus penalties, if any. Further, we use financial derivative instruments to hedge interest rate and foreign currency exchange rate exposure. Finally, atMarch 31, 2022 , we had$25.0 million outstanding letters of credit obligations. We have no other material off-balance sheet arrangements that we expect would materially affect our liquidity and capital resources except those described above. 45 --------------------------------------------------------------------------------
Financial information about the guarantor and the issuer
Ventas, Inc. has also fully and unconditionally guaranteed the obligation to pay principal and interest with respect to the outstanding senior notes issued by our 100% owned subsidiary,Ventas Canada Finance Limited ("Ventas Canada"). None of our other subsidiaries is obligated with respect to Ventas Canada's outstanding senior notes, all of which were issued on a private placement basis inCanada . Under certain circumstances, contractual and legal restrictions, including those contained in the instruments governing our subsidiaries' outstanding mortgage indebtedness, may restrict our ability to obtain cash from our subsidiaries for the purpose of meeting our debt service obligations, including our payment guarantees with respect toVentas Realty's and Ventas Canada's senior notes. 46 -------------------------------------------------------------------------------- The following summarizes our guarantor and issuer balance sheet and statement of income information as ofMarch 31, 2022 andDecember 31, 2021 and for the three months endedMarch 31, 2022 and the year endedDecember 31, 2021 (in thousands). Balance Sheet Information As of March 31, 2022 Guarantor Issuer Assets Investment in and advances to affiliates$ 17,789,558 $ 3,045,738 Total assets 17,922,405 3,155,639 Liabilities and equity Intercompany loans 11,313,313 (3,863,941) Total liabilities 11,537,000 4,133,468
Holder of redeemable PO units and non-controlling interests 96,646
–
Total equity (deficit) 6,288,759
(977,829)
Total liabilities and equity 17,922,405 3,155,639
As of December 31, 2021
Guarantor Issuer
Assets
Investment in and advances to affiliates $ 17,448,874 $ 3,045,738
Total assets 17,561,305 3,156,840
Liabilities and equity
Intercompany loans 10,742,915 (3,563,060)
Total liabilities 10,972,521 4,097,362
Holder of redeemable OP units and non-controlling interests 98,356
-
Total equity (deficit) 6,490,428 (940,522)
Total liabilities and equity 17,561,305 3,156,840
Statement of Income Information
For the Three Months Ended March 31, 2022
Guarantor Issuer
Equity earnings in affiliates $ 44,555 $ -
Total revenues 46,321 36,683
Profit (loss) before unconsolidated entities, real estate disposals, income taxes and non-controlling interests
39,202 (40,293)
Net income (loss) 38,732 (40,293)
Net income (loss) attributable to common stockholders 38,732 (40,293)
For the Year Ended December 31, 2021
Guarantor Issuer
Equity earnings in affiliates $ 133,143 $ -
Total revenues 137,348 158,255
Profit (loss) before unconsolidated entities, real estate disposals, income taxes and non-controlling interests
49,694 (215,773)
Net income (loss) 49,008 (215,777)
Net income (loss) attributable to common stockholders 49,008 (215,777)
47
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