With one of the best, most experienced and cohesive investment teams in the REIT sector, Ventas is the premier capital partner to leading care providers, developers, research and medical institutions, innovators and other healthcare providers, with a well-earned reputation for using creativity and insight to execute deals that others cannot.
External growth is a core competency at Ventas. We’ve delivered more than $38 billion of accretive investments with superior risk adjusted returns in the past 20 years through a best-in-class investment culture, rigor and process, built on our dedicated team’s deep industry knowledge and diverse expertise across the critical areas of underwriting, finance, investment, banking, development and operations.
Partnerships with Industry Leaders Provide Proprietary Growth
Ventas aligns with superior operators and developers to invest in their long-term growth alongside our own. We have a proven track record of investing in and promoting long-term and growing relationships with partners across our portfolio who bring scale, skill and access to growth opportunities.
Proven Investment Approach
As a disciplined investor, Ventas has a clear set of capital allocation priorities and looks for accretive investments in advantaged properties that will complement our diversified portfolio. We evaluate each opportunity across a wide variety of risk-adjusted measures and invest in high-performing assets and partners who can deliver strong cash flows year after year.
Ventas maintains a balanced investment strategy that has produced significant cash flow, accretion and value creation:
Ventas is committed to environmentally and socially responsible investment and development in collaboration with our operating partners.
Responsible Development and Redevelopment: Ventas is committed to environmentally and socially responsible development in collaboration with our operating partners, including the pursuit of LEED certification, developing urban brownfields and infill sites, and supporting urban revitalization through our developments. We are on track to achieve our goal of LEED Silver or higher on 100 percent of our $1.5 billion Research & Innovation development pipeline, and have zero projects being developed on greenfield sites (as of February 2021).
Responsible Acquisitions: Reflecting our commitment to long-term outperformance, our acquisition due diligence process includes rigorous vetting of environmental, social, governance, operational and other business risks, as well as Property Condition Assessments (PCA) and Phase 1 Environmental Site Assessments (ESA) for all new acquisitions. The Ventas acquisitions team also collaborates with risk management and our property insurers to evaluate the exposure of new properties to high hazard earthquake, flood and wind zones. We ensure appropriate insurance coverage, limits and deductibles, as well as applicable geographic dispersion to avoid issues from concentration of risk.
Energy and Water Efficiency: Our Sustainability team collaborates with operating partners, tenants and leading vendors and technology providers to identify and implement energy and water efficiency measures across our portfolio. Since 2018, we have approved more than $50 million of energy efficiency investments with a blended annual return to Ventas of more than 13%. Projects include LED lighting upgrades throughout our SHOP portfolio, and LED lighting and HVAC upgrades in our Office portfolio.
1. Data as of Q3 2020 filings, press release, supplemental and earnings conference call dated 11/6/2020.