Land & Buildings letter to Ventas notes significant NOI underperformance

Today Land & Buildings Investment Management (VTR) a significant shareholder of Ventas issued an open letter to the Ventas Board of Directors detailing Land & Buildings’ continued dissatisfaction with the Company’s long-term underperformance and undervaluation. Land & Buildings believes further action is necessary to address the lackluster returns shareholders have experienced under the current Board and intends to vote against the election of Lead Independent Director James Shelton and Board Chair Debra Cafaro at VTR’s upcoming Annual Meeting of Shareholders. The letter said in part: "As we approach Ventas’ Annual Meeting to be held on May 16, we are disappointed by the continued poor performance of the Company, especially against a backdrop of positive senior housing tailwinds. These positive indicators include: increasing demographic-driven needs-based demand, declining new competitive supply growth and waning expense headwinds. Shareholders had expressed their displeasure with several directors at the 2022 Annual Meeting, as Lead Independent Director James Shelton and Chair Debra Cafara received poor vote totals of 79% and 86%, respectively. When we first highlighted – over a year ago – the significant undervaluation and underperformance of Ventas and our suggestions for how to improve the Company VTR was trading at a 16% lower cash flow multiple and a 80bps higher implied cap rate to its closest peer Welltower (WELL). Both those spreads have now widened and are near all-time highs, with VTR trading at a 26% multiple discount to Welltower and 130bps higher cap rate."