John Kilchowski's questions to Ventas Inc (VTR) leadership • Q1 2025
Question
John Kilchowski of Wells Fargo asked about the recent increase in cost per bed for acquisitions, questioning if it was driven by competition or asset quality, and inquired about replacement costs in the markets where Ventas is buying.
Answer
EVP & Chief Investment Officer J. Hutchens attributed the higher cost per bed to acquiring newer, higher-quality communities in superior markets with strong absorption potential. CEO Debra A. Cafaro added that replacement costs are rising and typically start with a '4', meaning Ventas is still acquiring at a significant discount while targeting low to mid-teens unlevered IRRs.