벤타스(VTR) 2026년 3분기 실적 발표회: SHOP 성장이 FFO 가이던스 상향 이끌어

핵심 요약

• 벤타스는 전사 동일 자산 기준 현금 순영업소득(NOI)이 11% 성장한 데 힘입어 2026년 3분기 조정 FFO가 주당 0.99달러로 전년 동기 대비 10% 증가했다고 발표했습니다.
• 동일 자산 기준 SHOP 현금 NOI는 미국의 17% 성장에 힘입어 16% 증가했습니다. 매출은 8.3% 늘어난 반면, 동일 자산 기준 현금 NOI 마진은 190베이시스포인트 확대된 30.7%를 기록했습니다.
• SHOP 평균 점유율은 전 분기 대비 120베이시스포인트, 전년 동기 대비 290베이시스포인트 상승했습니다. 미국 SHOP 점유율은 89%를 유지하고 있으며, 경영진은 이를 다년간의 성장 기회로 보고 있습니다.
• 벤타스는 연간 조정 FFO 가이던스를 주당 3.87~3.90달러로 상향 조정했으며, 이는 연간 9%~10% 성장에 해당합니다. 중간값은 주로 2026년 시니어 하우징 투자에 힘입어 0.01달러 상승했습니다.
• 올해 누적 투자액은 37건의 거래에 걸쳐 52억 달러에 달해 기존 전망치인 45억 달러를 상회했습니다. 예상 첫해 수익률은 평균 6.6%입니다.
• EBITDA 대비 순부채는 4.4배로 개선되어 10여 년 만에 가장 우수한 레버리지 수준을 기록했으며, 가용한 유동성은 45억 달러였습니다.

주요 재무 데이터

사업 및 영업 실적

시니어 하우징이 주요 성장 동력으로 유지되었습니다. 동일 자산 기준 SHOP 현금 NOI는 17분기 연속 두 자릿수 성장을 기록했습니다. 평균 점유율은 전체적으로 전년 동기 대비 290베이시스포인트, 미국에서는 320베이시스포인트 상승했으며, 자립형 주거 점유율은 340베이시스포인트 상승했습니다.

벤타스는 자사의 SHOP 포트폴리오가 2023년 1분기 이후 누적으로 NIC 점유율 벤치마크를 600베이시스포인트 가깝게 웃돌았다고 밝혔습니다. 높아진 점유율은 가격 형성도 뒷받침하고 있습니다. 점유율 95%를 기록한 시설은 약 7%의 RevPOR 성장을 창출했습니다. 만실에 도달했거나 만실에 가까운 포트폴리오 비중은 전 분기 10%에서 15%로 늘었습니다.

영업 레버리지는 계속 개선되었습니다. 증분 마진 전환율은 53%에 달했으며, 경영진에 따르면 점유율이 가장 높은 시설 그룹은 약 70%의 증분 마진을 나타내고 있습니다. 회사는 고급 자립형 주거 자산이 전반적으로 가장 강력한 영업 레버리지를 제공한다고 덧붙였습니다.

회사의 데이터 및 분석 플랫폼인 Ventas OI는 운영사 선정, 가격 책정, 영업, 자본 배분 및 영업비용 벤치마킹을 지원합니다. 경영진은 영업비용 증가율이 2% 미만을 유지하고 있음을 밝히며, 비용 절감이 케어나 서비스 품질을 희생하면서 이루어지지는 않을 것임을 강조했습니다.

SHOP 외 분야에서는 외래 의료 및 연구 포트폴리오가 2.5%의 동일 자산 기준 현금 NOI 성장을 기록했습니다. 외래 의료 부문은 4% 성장했으며 점유율은 9분기 연속 상승했습니다. 트리플 넷 포트폴리오는 사전 협상된 임대료 인상에 힘입어 8% 이상의 동일 자산 기준 현금 NOI 성장을 달성했습니다.

투자 활동 및 재무상태표

벤타스는 올해 들어 시니어 하우징에 집중하여 37건의 거래에 걸쳐 52억 달러 규모의 투자를 완료했습니다. 2024년 초 이후 취득 원가 기준 외부 성장은 100억 달러를 넘어서며 SHOP 사업 기반을 35% 이상 확장했습니다.

2026년 시니어 하우징 인수 건의 예상 평균 첫해 수익률은 6.6%이며 호당 평균 비용은 약 34만 6,000달러입니다. 경영진은 10년 예측 레버리지 미적용 IRR을 10%대 초반에서 10%대 중반으로 심사하여 인수 거래를 실행했습니다.

올해 인수 자산의 약 70%는 지역 시장을 선도하는 고급 자산이었으며, 20%는 초고급 자산, 10%는 중저가 시장의 선도 자산이었습니다. 벤타스는 가치 지향형 시니어 하우징이나 안정화된 가치로 인수하는 턴키 개발 자산은 목표로 하지 않는다고 밝혔습니다.

회사는 올해 현재까지의 투자 활동 자금을 47억 달러의 자기자본, 자산 매각 및 인수 부채를 통해 조달했습니다. 벤타스는 비핵심 자산에서 회수한 자금을 SHOP 투자로 지속적으로 재투자할 계획입니다.

경영진 가이던스

벤타스는 2026 회계연도 조정 FFO 가이던스를 기존 전망치에서 주당 $3.87-$3.90로 상향 조정했습니다. 새 가이던스는 연간 9%-10%의 성장을 의미합니다.

가이던스 중간값이 $0.01 증가한 것은 2026년 시니어 하우징 투자에 따른 $0.02의 이익과, 금리 상승 및 환율 변동으로 인한 $0.01의 손실 영향이 일부 상쇄된 결과를 반영합니다.

순이익 가이던스는 주당 $0.64-$0.67로 상향 조정되었습니다. 벤타스는 각 사업 부문 및 전사 동일 자산 기준 현금 NOI 가이던스를 재확인했습니다.

이번 전망에는 이미 완료된 52억 달러 규모의 투자만 포함되어 있습니다. 또한 만기 도래 예정 부채의 차환을 가정합니다. 7% 수익률 수준으로 계획된 7억 달러 규모의 자산 매각 및 대출 상환 대부분은 4분기에 완료될 것으로 예상됩니다.

경영진은 내년 기존 입주자 임대료 인상률이 전년의 약 8% 수준이거나 그 이상이 될 것으로 예상하면서도, 계획이 아직 초기 단계임을 강조했습니다. 회사는 2027년 실적 전망을 제공하지 않았습니다.

리스크 및 관전 포인트

금리 상승과 환율 변동으로 인해 업데이트된 FFO 가이던스 중간값이 주당 $0.01 낮아졌습니다. 경영진은 또한 부채 조달 비용 변동이 인수 경쟁, 매도자 가격 책정 및 캡레이트에 영향을 미칠 수 있지만, 영향이 시차를 두고 나타날 수 있다고 지적했습니다.

점유율 상승에도 불구하고 SHOP 마진은 전 분기 대비 20베이시스포인트 하락했습니다. 경영진은 이 같은 움직임이 해당 분기의 추가 영업일 및 높아진 공과금 비용 때문이라고 설명하며, 분기별 마진 추이가 불균등하다고 언급했습니다.

인수 시장은 여전히 경쟁적입니다. 벤타스는 관계 기반의 딜 발굴, 재무 능력, 자금 조달 조건 없이 거래를 종결할 수 있는 능력이 입지를 강화해 준다고 밝혔으나, 매물로 나온 모든 자산이 수익률 요건을 충족하는 것은 아니라고 덧붙였습니다.

회사는 또한 향후 수개월 내 만기가 도래하는 부채를 차환해야 합니다. 연간 가이던스는 이러한 차환이 완료된다는 전제하에 작성되었습니다.

애널리스트 Q&A 하이라이트

• 점유율 및 가격 정책: 경영진은 높은 점유율이 기존 입주자 임대료 인상과 신규 입주자 임대료 모두를 뒷받침하고 있다고 밝혔습니다. 기존 입주자 인상이 RevPOR의 주요 동력으로 유지되고 있으나, 최근 신규 입주 가격 책정도 강화되었습니다.
• 마진 잠재력: 증분 마진이 대략 50%에서 70%로 상승하는 단일 점유율 임계값은 없습니다. 자산 유형, 가격 책정, 케어 강도가 모두 중요하지만, 점유율이 가장 높은 시설은 이미 70% 수준의 증분 마진을 기록하고 있습니다.
• 인수 수익률: 벤타스는 점유율 회복, 임대료 인상 및 맞춤형 자본 개선을 통해 자사의 인수 자산이 10%대 초반에서 10%대 중반의 레버리지 미적용 IRR을 창출할 수 있다는 입장을 유지했습니다. 투자 물량의 90% 이상은 기존 관계를 통해 발굴됩니다.
• 포트폴리오 구성: 회사는 자립형 주거, 지원형 주거 및 치매 케어를 포함하여 연속적인 케어 서비스를 제공하는 대규모 시니어 하우징 시설을 선호합니다. 최근에는 자립형 주거가 가장 강력한 점유율 성장을 기록했습니다.
• 브룩데일 전환 자산: 경영진은 구 브룩데일 전환 포트폴리오가 비동일 자산 그룹 내에서 상위권 실적을 내고 있으며, 동일 조건 기준 전 분기 대비 약 120베이시스포인트의 점유율 성장을 기록했다고 언급했습니다.
• 지역별 우선순위: 미국은 여전히 SHOP 인수의 주요 시장입니다. 경영진은 캐나다를 높은 점유율과 꾸준한 성장을 보이는 포트폴리오로 설명했지만 장기 성장 프로필은 미국보다 매력도가 떨어진다고 덧붙였으며, 영국은 여전히 관심 대상이지만 우선순위는 낮습니다.

실적 발표 콘퍼런스 콜 전문

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전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Hello, everyone. Thank you for joining us, and welcome to Ventas, Inc. Third Quarter 2026 Earnings Call. [Operator Instructions]

I will now hand the conference to BJ Grant, Senior Vice President of Investor Relations. BJ, please go ahead.

Bill Grant

Thank you, Chase. Good morning, everyone, and welcome to the Ventas Third Quarter 2026 Results Conference Call. Yesterday, we issued our third quarter 2026 earnings release, presentation materials and supplemental information package, which are available on the Ventas website at ir.ventasreit.com.

As a reminder, remarks today may include forward-looking statements and other matters. Forward-looking statements are subject to risks and uncertainties, and a variety of topics may cause actual results to differ materially from those contemplated in such statements. For a more detailed discussion of those factors, please refer to our earnings release for this quarter and to our most recent SEC filings, all of which are available on the Ventas website. Certain non-GAAP financial measures will also be discussed on this call, and for a reconciliation of these measures to the most closely comparable GAAP measures, please refer to our supplemental information package posted on the Investor Relations website.

And with that, I'll turn the call over to Debra Cafaro, Chairman and CEO of Ventas.

Debra Cafaro

Thank you, BJ. I also want to welcome all of our shareholders and other participants, including our newest Ventas colleague, Andy Wattula, to the Ventas Third Quarter 2026 Earnings Call.

Ventas delivered strong enterprise results and growth in the quarter as we execute our 123 strategy. Our senior housing operating portfolio now in its fifth year of double-digit organic growth powered our results and our significant shop investment activity enhanced our outlook. In an environment of rapid change, the Ventas investment thesis remains consistent and clear. Our $60 billion enterprise generates performance from nearly 1,500 physical assets serving the need-based secular demand of a large and growing aging population.

Ventas is one of the rare growthy businesses that is neither AI-focused nor AI correlated. In addition, our strong and improving financial profile provides stability and opportunity amid volatile capital market conditions. As a result, we are well positioned to thrive in a variety of economic environments.

Within that context, our team remains focused on using our high-quality portfolio, differentiated platform, operating expertise, deep industry relationships and data advantages to fuel our momentum and deliver outperformance at scale. Our excellent results demonstrate the power of our enterprise and our position as the world's second largest owner of senior housing.

U.S. Shop same-store cash NOI grew 17% in the quarter, contributing to our 11% total company same-store cash NOI growth. The first prong of our 123 strategy is capturing organic shop growth through rate and occupancy. Strong rate growth was coupled with shop occupancy outperformance in the quarter. Same-store average occupancy grew 120 basis points sequentially, driven by Ventas OI. This continues a multiyear trend of materially outpacing industry benchmark. In fact, our SHOP portfolio has grown occupancy at twice the pace of the NIC average since 2023, generating nearly 600 basis points of incremental outperformance during that period. And yet, our U.S. SHOP properties remain only 89% occupied, supporting a multiyear runway ahead for durable occupancy rate and NOI growth.

I want to thank our Ventas colleagues and operators for their strong execution and commitment to outstanding senior care and services in our communities.

Our third quarter normalized FFO per share of $0.99 represents 10% growth year-over-year, and our credit profile continued its significant multiyear improvement trend as we ended the quarter with net debt to EBITDA in the low 4x. We are pleased to again increase our full year FFO per share guidance to $3.89 primarily because of our 2026 investment activity.

The Ventas strategy is built to capture unprecedented durable demographic demand. Now more than ever, individuals and their families are attracted by the benefits of safety, socialization and support provided in our senior housing communities at a cost comparable to aging at home. The baby boomer generation, a cohort of nearly 70 million individuals and the wealthiest generation in history began turning 80 this year, and we are just now stepping into the period of enormous growth in our customer base as the U.S. senior population is expected to expand 28% over the next 5 years and remain elevated for over a decade.

Yet construction starts of new senior housing units hover at record lows with a poultry 1,000 units being started in the quarter. With at least a 3-year start to finish development cycle and increased construction costs, we should enjoy these powerful tailwinds supporting our growth for the foreseeable future. Our business and team at Ventas are built to meet this moment, capitalize on these trends and continue to outperform the industry at scale.

The second prong of our strategy, of course, is to aggressively expand our SHOP footprint through attractive acquisitions designed to enhance our enterprise growth rate. Our investment momentum is strong. And year-to-date, we've closed more than $5 billion of SHOP investments, which are expected to produce double-digit to mid-teens unlevered IRRs and year 1 average yields in the mid-6s.

Our pipeline remains robust, and we are actively advancing actionable shop investment opportunities to build on our success and expand our SHOP business. As a long-term industry participant with nearly 1,000 senior housing communities, we have built a significant competitive moat, including our relationships, platform, data, team, financial strength and operating experiences. These advantages, coupled with our right market, right asset, right operator framework, drive our investment decisions, keep our win rate high and help our acquired communities and operators outperform after closing. With the recent global move in interest rates and geopolitical uncertainty, our competitive position has strengthened even further.

To close, the entire Ventas team is unified and excited about the opportunities for a multiyear growth and value creation ahead. We remain focused on winning together and delivering outperformance at scale as we help people live longer, healthier and happier lives.

And now I'm pleased to turn the call over to Justin.

J. Hutchens

Thank you, Debbie. Good morning, and thank you for joining us. The third quarter reflected continued strong execution across our senior housing operating portfolio and our investment platform. I'll cover 4 areas: our SHOP results, the OI platform supporting them, the pace and quality of our external growth and the outlook for the business.

Let me start with the SHOP results. Same-store shop cash NOI grew 16% year-over-year, led by our U.S. portfolio of 17%. Revenue grew 8.3%, benefiting from both occupancy and rate growth. This marks the 17th consecutive quarter in a row of double-digit shop NOI growth. Average occupancy increased 120 basis points sequentially and 290 basis points year-over-year overall, and 320 basis points in the U.S., led by independent living, which is up 340 basis points. Growth was broad-based across markets, community types and operators. RevPOR grew 5%. This compares with 4.7% last year and 4.4% the year before.

We continue to achieve stronger pricing in communities with higher occupancy demonstrating the value proposition to the resident. Operating leverage is also visible in the results. Same-store cash NOI margin expanded 190 basis points to 30.7%. And incremental margin flow-through was 53%, which has also been trending positively.

As occupancy rises, a greater share of each incremental revenue dollar converts to NOI. This performance reflects how we have built the portfolio in the right markets with the right assets and the right operators. Furthermore, our communities that are currently 95% occupied delivered 7% RevPOR growth. Our SHOP communities across 48 states, Canada and the U.K. are weighted toward markets with favorable fundamentals including Texas, New York, California, Florida and North Carolina. Projected uncapped net demand in our U.S. markets is roughly 1,200 basis points over the next few years. And residents in those markets have plenty of resources to cover the cost of their expected stay. The communities are large scale, averaging about 115 units with a mix of roughly half independent living and the other half being assisted living and memory care.

We have completed nearly 400 community refresh CapEx projects since 2020, and we work with nearly 50 operators ranging from emerging regional names to institutional platforms who are all locally focused. Occupancy and rate working together remain the primary driver of performance. Within the NIC top 99 markets, our occupancy outperformed the industry by more than double with 130 basis points sequentially. We have consistently beat the market. Since the first quarter of 2023, cumulative outperformance is nearly 600 basis points. We attribute this to our operators' execution at the community level supported by the Ventas OI platform. Our U.S. SHOP portfolio is just 89% occupied, which leaves substantial room to grow. We expect strong performance ahead driven by occupancy gains, rate growth and operating leverage as price and volume work together, we see this as a multiyear growth opportunity.

Now I want to touch upon the Ventas OI data analytics and insights platform, which has proven to be a significant competitive advantage. Our competitive advantage rests on our right market, right asset, right operator framework strengthened by the Ventas OI data analytics and insights platform which is focused both on driving operational performance and investment execution. We choose operating partners for their market-leading care and service, product expertise, leadership close to the community operations and collaborative culture. Our management agreements align our interest and support long-term investment in each community.

In a highly fragmented industry, success requires managing at scale across markets, communities and operators. Ventas OI enables that scale through collaborative oversight combining our team's operating expertise, with proprietary data and best-in-class analytics to inform operational upside, guide refresh capital and refine the portfolio, all in support of delivering outperformance.

We believe this combination of platform, people execution at scale creates a competitive moat that is difficult to replicate and essential in order to successfully grow and operate in the fragmented senior housing industry. It also strengthens relationships and opens growth opportunities for operators who deliver outperformance. We are growing in terms of number of operators and expanding existing relationships with high-performing operators. For instance, we have expanded investments and communities under management with 3/4 of our operators. This includes our top 5 operators who together represent over 60% of our SHOP NOI. I'm proud of our team and grateful to our operating partners for their work every day.

Now turning to investments. We continue to scale our senior housing operating portfolio through market-leading acquisitions. Year-to-date, we've closed $5.2 billion of total investments, focused on senior housing across 37 different transactions. This brings our total external growth since the beginning of 2024 to over $10 billion at cost, which represents more than a 35% expansion of our SHOP footprint.

Our recently closed senior housing investments feature an attractive mix of communities that provide various combinations of in-place cash flow, yields and growth. There are multiple levers to drive outsized growth in these deals. Examples include communities with significant occupancy upside, value-add investments with both occupancy and rate upside, supported by planned near-term CapEx investments, and communities that are local market leaders with demonstrated multiyear track records of high rate growth. These and other factors contribute to generating the projected double-digit to mid-teens 10-year unlevered IRRs, underwritten in each of our deals.

From an initial pricing standpoint, our expected year 1 yields on our senior housing investments are an attractive 6.6% overall. These investments are expected to benefit from the various growth drivers I described contributing to accretive enterprise growth. On average, our senior housing investments year-to-date have a basis of approximately $346,000 per unit, and were acquired at significant discounts to estimated replacement costs.

The U.S. senior housing market is setting new transaction volume records this year, and our pipeline remains very robust. We are one of the largest acquirers of luxury senior housing communities in the U.S. market and are also engaged in numerous off-market discussions with potential sellers and operators on a wide range of attractive opportunities. Our relationship-based approach to sourcing investments, which accounts for over 90% of our investment volume provides meaningful competitive advantages as current and prospective partners are attracted to the Ventas OI platform and our way of doing business. Operators want to work with us.

We're also encouraged that the recent movements in the pricing of debt capital should reinforce our competitive positioning and create further investment opportunities.

To summarize, we continue to offer an attractive value proposition for our residents. We are delivering strong organic growth in SHOP, adding to our footprint through market-leading acquisitions with upside, outperforming industry occupancy benchmarks and continuously elevating the fully deployed Ventas OI platform and the outlook for new investments continues to be as strong as ever. We are confident in our strategy and our team.

Now I'll hand it over to Bob.

Robert Probst

Thank you, Justin, and good morning, everyone. I'll start with our third quarter financial performance, then discuss our balance sheet and conclude with our improved outlook for 2026.

I'm pleased to report another quarter of strong enterprise performance. Normalized FFO was $0.99 per share, representing a 10% increase year-over-year. Driving the growth was total company same-store performance, which increased 11% year-over-year, led by SHOP growth of 16%. I know that the 11% same-store growth rate for the company is a record high and is driven both by the attractive mid-teens growth rate in SHOP and also by SHOP comprising an ever larger proportion of our overall business, consistent with our 123 strategy. Our outpatient medical and research portfolio or OM&R, delivered 2.5% same-store cash NOI growth in the third quarter, led by outpatient medical, which grew 4%. Outpatient medical occupancy increased 10 basis points year-over-year, marking its ninth consecutive quarter of occupancy growth.

Center retention remains strong, supported by tenant satisfaction scores at the 95th percentile. Our research portfolio, which represents a small portion of our NOI, experienced a modest decline in the third quarter as expected. Our triple net portfolio generated over 8% same-store cash NOI growth in the third quarter and was driven by negotiated rent increases.

Turning to the balance sheet. Our net debt to EBITDA of 4.4x is our strongest leverage level in well over a decade and represents nearly a full turn of improvement year-over-year. The strengthening of our credit profile is the result of organic property growth as well as equity funded investments. I would note that this improvement was achieved while delivering attractive normalized FFO per share growth. Year-to-date, we've already closed $5.2 billion of investments focused on senior housing, above the $4.5 billion contemplated in our prior full year guidance. We have funded this investment activity with $4.7 billion of equity capital, together with dispositions and assumed debt. We maintained excellent liquidity of $4.5 billion which gives us flexibility to pursue our robust pipeline of investment opportunities.

Last, I'll turn to our updated earnings outlook. Given our strong year-to-date performance and investment execution, we are once again increasing our earnings outlook for the year. We have raised our net income guidance to $0.64 to $0.67 per share or $0.66 per share at the midpoint. We are increasing our full year normalized FFO per share guidance to now range from $3.87 to $3.90 per share, which represents year-over-year growth of 9% to 10%. The $0.01 improvement in our new guidance midpoint is primarily driven by $0.02 from 2026 senior housing investment activity, partially offset by $0.01 from the impact of higher interest rates and FX. We are reaffirming our same-store cash NOI guidance for each segment and for the total company.

A few comments on our fourth quarter. Our investment pipeline is strong, our guidance only includes closed investments at $5.2 billion at this later stage in the year. I would note that our guidance assumes we refinance maturing debt in the coming months. And finally, we expect the majority of our disposition and loan repayment guidance of $700 million at a 7% yield to close in the fourth quarter. For additional assumptions supporting our guidance, please refer to our Q3 supplemental and earnings presentation posted to our website.

To close, we are very pleased with our performance year-to-date. Our strategy is producing consistent growth, and we remain focused on creating long-term value for our shareholders.

And with that, I'll turn the call back to the operator.

Operator

[Operator Instructions] Your first question comes from the line of Nick Joseph with Citi.

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Nicholas Joseph

You talked about the robust acquisition pipeline. Obviously, we've seen that come through in activity year-to-date as well as the current pipeline. I was hoping you could touch on competition and as interest rates have moved, how that has actually changed kind of your expectation of competition going forward?

J. Hutchens

It's Justin, yes, we've had a really active year, and that's representative of our existing pipeline as well. And our approach has really been to -- first of all, we have very intensive screening of the pipeline. Secondly, we tend to lean in where we have competitive advantages, and those advantages are oftentimes relationship driven. We have a very, very high growth rate with repeat sellers. We have a high growth rate with repeat operators, and that's led to some really attractive acquisition opportunities of luxury senior housing. And so that's how we've been winning.

There's certainly competition in the market. Not everything is the right fit for us. It may be a better home for it. There is -- the impact of interest rates that you mentioned, that could slow down private buyers that may put us in an advantaged position. And then we'll also just see how cap rates settle over time.

Nicholas Joseph

You mentioned the relationship-driven deals. How much do changes in interest rates impact those conversations?

J. Hutchens

Well, the interest in sellers to transact is ongoing. One of the things that happens, and it tends to lag a bit, so we're not really seeing a lot of activity around these types of discussions yet. Is -- there will be discussion around price and what the right cap rate is in the current market, but it's still pretty early.

Operator

Your next question comes from the line of Farrell Granath with Bank of America.

Farrell Granath

First, I wanted to just circle back on the comment that you made about the 7% RevPOR growth and your 95% occupied units. I was curious how much of the NOI or which segments do you currently stand at that 95% level?

J. Hutchens

It's a lot. We have a large portion of our portfolio in that category. We have NOI growth really across the operating metrics that 95% band outperforms the broader portfolio. We also look at it in another way, which is communities that are 100% occupied. And we talked about in the last quarter that we had 10% of our portfolio that we're at or near 100%. That number now is 15% of the portfolio. And that group of communities has outsized RevPOR growth as well. So we're particularly excited about our hypothesis playing out, which communities -- which is that communities can go all the way, 100% occupied. They can deliver higher pricing opportunity at the high occupancy levels and that we can do it at scale.

And so the movement in the underlying portfolio is really exciting. But I think it's also really important to note that we've built our portfolio to have a long runway of occupancy opportunity. The U.S. occupancy is only 89% occupied. So we have this runway ahead and into the demand that Debbie mentioned that really hasn't even played out yet where we can continue with strong occupancy and rate growth.

Farrell Granath

Great. And I guess on that point also, I think I'm just trying to bridge between especially now, obviously, at that 95%, we're seeing 7% or you're seeing over 7% REVPOR or around 7%, where the -- about 92% same-store occupancy and RevPOR was still around 5%. Can you just bridge between expectations for rate growth, I guess, moving forward as maybe that occupancy continues to grow as you fill up more of your communities?

J. Hutchens

Yes. Yes. So you have all the kind of the levers of rate include the in-house rent increases, you have street rates as well. And then ultimately, what your move-in rents are. And we've seen really good trending in both in-house rent increases and in move-in rents. They've been favorable. That's been supporting the 5% REVPOR growth. I mentioned in my prepared remarks that RevPOR growth over the last 2 years, it was like 4.3% and the 4.7%, and is 5% this year. So we're on this accelerating trend of RevPOR. And that's a direct result of having higher occupied communities and also just managing price opportunity in what is very, very strong underlying affluent markets. So we think that opportunity continues as we continue to publish levers and outperform in a very strong market backdrop.

Operator

Your next question comes from the line of Jim Kammert with Evercore.

James Kammert

Kind of tolling perhaps in his prior comments, Justin. What do you think the portfolio for your portfolio, your best estimate of export versus REVPOR delta being? Because that seems to be a big driver, right? Delta is very important.

J. Hutchens

Well, I mean, that's a good question. So the -- both metrics are a function of occupancy growth. So in this environment, as revenue has been growing, it's been driven by rate and occupancy. RevPOR is around 5%. We've been consistently under 2% on OpEx for side of things. And we're expecting continued occupancy growth as we're only 89% occupied in the U.S. And so that opportunity continues. But what's unique now is that we have more communities in the higher occupied categories that's driving rate. So that's an exciting opportunity. And so I don't know if I have the exact answer to your question in terms of a particular target in mind, but we expect that, that there's opportunity for that spread to widen. And we also expect to see further incremental margin as we move into the upcoming years as well.

James Kammert

I think I phrased it wrong. The opportunity widened, that's what I look for. And then just back to the acquisition environment. I just think it's a skeptic, would the cap rates still continue to compress given there's so much money out there chasing this? And I don't know, just what are you seeing that firms review that you can still obtain these low to mid-teens double-digit IRRs. I'm missing something?

J. Hutchens

Yes, we've had a really, really good run for 3 years straight now of acquiring luxury senior housing that has unlevered IRRs of low double digit to mid-teens. And we've been achieving our underwriting, which is obviously an important component and gives us the confidence to keep going. There -- cap rates will move around a bit. And certainly, with the debt cost of capital going up, that could have some impact to kind of normalized cap rates. There has been a lot of competition. We'll see how that plays out in the upcoming months. But in any event, our pipeline is really active and robust. So we're excited about -- we continue to work on those opportunities and continue the external growth.

Operator

Your next question comes from the line of Jamie Feldman with Wells Fargo.

James Feldman

I guess just still focusing on the expense side. So your margins expanded 190 basis points year-over-year. They slipped 20 basis points sequentially despite occupancy increasing. Just can you talk more about the line item specifically? And maybe more importantly, as we think about next year, it sounds like fundamentals are still very strong. Occupancy should be growing, revenue should be growing, but is there something on the expense side we need to be focused on that might be a bigger drag than we're thinking about? Or just what is your outlook over the next 12 months or so on the expense side?

J. Hutchens

Yes. Thanks for the question. I'm going to start with -- you mentioned the quarters a little bit of slip in margin in the quarter. Our incremental margin was -- has been running kind of low to mid-50s. 2 years ago, that was 43%. So we've had the advantage of occupancy growth and the operating leverage playing out for us. It's a multiyear opportunity. It's never a straight line. The quarter was impacted by -- there's an extra day in the third quarter, and we had utility costs that were a little bit high. So that impacted margin. But the hypothesis remains very much in place. And that is that operating leverage benefits margin and delivers strong incremental margin growth, which all things considered equal, should only improve as we move forward in this market.

Debra Cafaro

Jamie, what was the last thing that you heard Justin saying?

J. Hutchens

I'm just going to summarize what I said before. Are you there?

James Feldman

Yes, I'm here. Yes, I think you had just started to answer, but maybe if you want to start over?

J. Hutchens

All right. We'll see if I do better this time. So first of all, let's talk about incremental margin opportunity in the portfolio, and that's been running kind of low to mid-50s this year. 2 years ago, that was low to mid-40s. So we've had -- the hypothesis is playing out. As occupancy grows, we're benefiting from the operating leverage, we're seeing incremental margin improve. You mentioned the quarter specifically, we had a little bit of slip in margin sequentially. That was driven by an extra day in the third quarter is also higher utility costs.

But one thing I can tell you, even in our 17 quarters in a row of double-digit NOI growth, I don't think it's ever been a perfect straight line. This is a multiyear opportunity. All the levers that we're pulling are working, and we're looking forward to continuing those in revenue and expense and ultimately margin. And I don't have any comments on '27 at this stage.

Operator

Your next question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets.

Austin Wurschmidt

Could you just give us an update on the performance of the Brookdale transition assets and kind of an update on the growth outlook there and when those start to enter the same-store pool?

J. Hutchens

Yes, sure. So we have 9 same-store pool that includes 234 communities. That includes 130 acquisitions. There's 104 communities that are in some sort of repositioning action that will set up future growth types of actions you'll see in that group or transitions to new operators, redevelopments. That -- the whole nonsame-store -- the U.S. portfolio, by the way, in SHOP, including on same-store is 89% occupied. So we have a long runway ahead of growth.

The portfolios in the non-same-store group that excluding the acquisitions, on a like-for-like basis, are growing around 120 basis points. And so that's everything in nonsame-store that's like-for-like quarter-to-quarter. They're growing 120 basis points, which sequentially, which is consistent with the same-store. The portfolio asked about, the former Brookdale transition is on the better side of that. So we're encouraged by the momentum we're seeing in that portfolio.

Austin Wurschmidt

And then just going back to kind of the step function in RevPOR. Has more of that step function occurred from in-place rent increases or from street rates? And can you give us a sense how you expect in-place rent increases for the upcoming year to stack up relative to how they stacked up at the beginning of 2026?

J. Hutchens

Yes. So good question. So the primary driver of our REVPOR has been in-house rent increases. We have seen move-in rents lifting as well. And so we're seeing both in-house and move-in rents working together, particularly recently on the move-in rent side. So we're really encouraged by that trending.

In terms of in-house rent increases, we were around 8% last year. It's a little early, but we would expect next year to be around the same or better.

Operator

Your next question comes from the line of Dave Rodgers with Raymond James.

David Rodgers

I wanted to shift to investments and acquisition opportunities. I know in your prepared comments, you did describe some of that opportunity. But can you maybe go a little bit deeper in terms of the range of opportunities between occupancy recovery versus value add and some of the CapEx-oriented assets that you could acquire? And what that range looks like? It seems like you're buying assets that on average look just like the portfolio today. But what's that range look like? And I guess how much more volume could you do if you were to expand out into 1 direction or the other?

J. Hutchens

Well, let me -- maybe the best way to frame that up is to describe what we're buying now and what we have been buying, and I can give you a flavor for the range within that. So if we just look at this year. This year, we've had about 70% of our acquisitions have been luxury local market leaders, 20% ultra-luxury premium product and then 10% as characterized as mid-market leaders. And if you're wondering what luxury senior housing means, this is highly amenitized communities that are in the top decile of their local market. They have high private pay, high net worth, high home equity, high barrier markets and a concierge-level service and a resource style setting. And we've been buying large communities with a continuum of care that offer all of these -- all of these amenities and high-quality options for seniors in their markets.

The types of markets we're entering, I'll just throw out a few, Chestnut Hill, Newton in Boston, the Woodlands in spring in North of Houston. Tucson, Scottsdale, Palm Beach, Naples, Denver, Marietta, Georgia, which is Cap County, the wealthiest part of Atlanta. So we're buying communities that are really well positioned. They have -- they're 89% occupied, so they have a runway of occupancy ahead and particularly well positioned for rate growth. That's been opportunity. The range within that, yes, there's been -- we mentioned a portfolio earlier this year called Revel. There's several kind of smaller one-off communities that are similar, they have occupancy runway.

We have some that are in between that we would probably consider a value add just because they're still in the mid-80% occupancy range. And then we have others that are squarely in the 90% and already delivering rate growth. And our pipeline -- let me just say 1 other thing. Let me tell you what we're not buying. What we're not buying is value-oriented senior housing and we're not buying turnkey development opportunities. And we've seen a lot of those. We've seen them in the U.K. primarily. And the problem with Turnkey, it does offer some growth in your portfolio, but you're paying a stabilized value for it. So the returns are much worse. So they still make sense. So we've been focused on a better risk-adjusted return. We've been focused on an opportunity to drive these low double-digit to mid-teen unlevered IRRs.

And to get to your exact question. We want to do more of everything I just said. And we're seeing those opportunities in our pipeline, and we're encouraged by that and particularly encouraged by the SHOP investment thesis playing out through our operating fundamentals in our own portfolio. So it is -- with better demand in the future.

Operator

Your next question comes from the line of Ronald Kamdem with Morgan Stanley.

Ronald Kamdem

Just the first one, I just wanted to talk a little bit more about the duration of same-store NOI growth because there's this interplay between sort of occupancy upside and pricing. And if I look at the U.S. portfolio, where occupancy has been growing faster than 300 basis points every year, and you talked about being 89% occupied, so a lot of runway. I guess so my question is like, how should we expect this to play out? Is it -- you stay at this 300 level for a couple of years, then you start pushing pricing? Is it some sort of a mix? Like what's the experience been? And how does that play out?

J. Hutchens

Well, the high-class problem is we get there faster. So it all depends on how the lease-up progresses over time. We know from recent history that in an environment that had less demand, we've had very strong occupancy and rate growth. We're in a period now where we're at the very beginning of the -- beginning of the peak demand. And we're encouraged by what we're seeing. We're seeing improvement in our move-in rent run rate, we're seeing pricing power in our high occupied communities. We're also seeing strong occupancy growth.

So if you look forward, all things considered equal, you would expect a similar runway ahead with a better demand backdrop. And as certain communities, in particular, the profile that we have, we have an opportunity in our markets as market leaders to offer the value proposition of our residents and to drive pricing over time.

Ronald Kamdem

Helpful. And then my follow-up was just as you think about just sort of the disposition side, any updates on maybe monetizing some of the nonsenior housing assets either faster or so forth?

Debra Cafaro

Ron, this is Debbie. I'll take that. Yes. As Bob said, we have about $700 million of dispos in our guidance this year. We're continuing to opportunistically prune the portfolio and recycle capital into SHOP investments, and we intend to continue doing that.

Operator

Your next question comes from the line of Mike Mueller with JPMorgan.

Michael Mueller

Is there any distinction to know today between AL and IL either as it relates to acquisition opportunities or NOI growth potential?

J. Hutchens

Yes. I mean we've seen -- in generally, in our existing portfolio, we've seen stronger occupancy growth in our independent living portfolio. Our footprint both existing and in what we're buying tends to be about half independent living. And then the rest is assisted living with a small portion of that serving residents that have member care needs. And there's been strong demand really across the board. We're seeing it in each product type and across all of our markets, obviously, we put a lot of work to make sure we're in the right markets. And so that -- that's -- but our preference though is generally to have a continuum of care. That's our preferred products, offer independent living, assisted living and member care on a campus or large-scale campuses, and that might include all independent living, for instance, and it's all tracking really well.

Operator

Your next question comes from the line of Georgi Dinkov with Mizuho.

Georgi Dinkov

I had a question on Canada. Do you see any opportunity in the JV assets back. And on U.K., how do you view the opportunity there? And if you can talk about the sequential record decline there?

J. Hutchens

Did you -- I didn't quite hear, did you ask about Canada?

Unknown Executive

Okay.

J. Hutchens

And the U.K.? Okay. I couldn't quite hear you. So first of all, the U.S. has been our main priority, that's where we have most of our footprint SHOP, and that's where our acquisition activity has been directed. We have a really high-performing portfolio in Canada that has high occupancies and delivered consistent growth. We really haven't focused on expanding there. The growth profile in that market isn't as attractive as the U.S. over time. So we've been steering clear of Canada. And then the U.K. is of interest, but it just hasn't been as big of a priority.

Georgi Dinkov

Got it. And is there anything in the life science segment that you would like to call out for the quarter?

Debra Cafaro

It's been -- it's the smallest part of our business, and it's been very consistent.

Operator

Your next question comes from the line of Julien Blouin with Goldman Sachs.

Julien Blouin

Justin, I think you mentioned that you're planning for similar or better in-house rent increases over the next year versus '26. I guess, why could the range of outcomes include similar in-house rent increases? I would have thought, as we sort of get to these higher levels of occupancy, we might be able to push a little bit more. Is the Ventas OI for the platform, indicating any specific factors sort of limiting your ability to push pricing further?

Debra Cafaro

It's early, Julien. This is Debbie. Sorry to jump in for Justin. But it's early -- and we'll be happy to talk in more specifics about it as we know more.

Julien Blouin

Okay. Great. That makes sense. And then maybe moving back to the incremental margin discussion. It sounds like you're seeing -- I guess I wanted to note, is there a meaningful difference between the incremental margins on the 95%-plus occupancy portfolio versus the rest of the portfolio? Are you seeing signs that in the higher occupancy parts of your portfolio, you're in fact, able to move up towards that 70% incremental margin that I think you've mentioned in the past for nearly full properties?

J. Hutchens

Yes. So we've talked about -- we kind of refer to it as a rule of thumb at one point in time. And I was talking about really the 50% incremental margin we're seeing now is consistent with what we expected. And as you get into the higher 90% occupancy range, you start seeing higher margin opportunity. And we know that it's not a big sample size of communities that are kind of in that occupancy band that had no occupancy change, still growing occupancy within that group, which is consistent with what I said about having more 100% occupied communities now.

But we know that even in that group, we're seeing around a 70% incremental margin. And obviously, in those that are growing occupancy, it's even better. So it's certainly proving out, and that's going to help lift our overall incremental margin over time.

Julien Blouin

Okay. And if I could fit 1 more in, I was wondering how do you think a more challenging home selling environment will impact the demand from move-ins in IL specifically. I get AL probably a little bit more urgent sort of need motivated move-ins, but I was wondering specific to IL?

J. Hutchens

Yes. So we've had a really consistent year in terms of move-in volume and occupancy growth. And you can argue that there is a lot of potential impacts in the macro environment, obviously, in every way, geopolitical, home market, consumer confidence, and we've just been operating straight through that. So we have confidence in the demand and the value proposition that we offer and the resilience that senior housing has and really haven't seen any impacts yet.

Operator

Your next question comes from the line of Juan Sanabria with BMO Capital Markets.

Juan Sanabria

Just on the expense on SHOP. Just hoping you could talk a little bit about Ventas OI and the initiatives that you have there to maybe lower the export growth, which I think is trending around 2% inclusive of management fees and kind of what the next opportunities that you're working towards may do or help what that export growth?

J. Hutchens

Sure. Yes. So we have -- it's a good opportunity just to remind everybody what Ventas OI is and how we're set up. And so it has -- it's really focus -- the framework of right market, right asset, right operators, the starting point, all the decisions we make around markets assets and operators are supported by our data analytics platform. and the experience that we have here at Ventas and the experience of our operators make good decisions.

The approach we take on the operating side is to -- it guides our CapEx decisions or decision to expand assets. We always have some pruning we're doing in our portfolio and it helps to lead to some of those decisions as well. But the part that I think we believe is most powerful is the support on the operating side. And we're able to take data that most of our operators don't have any visibility into and bring to life for them opportunities on many fronts. And that sales, all the various revenue drivers, sources of leads, including digital leads, benchmarking on an anonymized basis and like products. And that's helped to really bring focus to our communities and help make it easier for operators to prioritize where they can really create value, and expenses are part of that.

So we definitely have a line item review that occurs regularly with our operators. We're always looking for any opportunity to become more efficient. But we are also very focused on the fact that we have a luxury product that we're supporting. And our residents and customers have a certain expectation from us. And so there's no interest whatsoever in shortcutting our service delivery and our care delivery, and that's a balance that we take as we're approaching the expense side of things. But there is certainly an intense focus on it.

Juan Sanabria

And maybe just a bigger picture strategic question. There's a lot of opportunities out there, both on the acquisitions and sales side. It sounds like you're less enthusiastic about Canada to more focused on the U.S. for SHOP. There's seemingly a growing SHOP opportunity in the U.K. And then there's the ability to maybe deemphasize MOBs further by sales or joint ventures. But just curious on what you would have is a key priority for the company or what you're focused on thinking strategically about different moving pieces?

Debra Cafaro

Juan, this is Debbie. We -- since the inception of our 123 strategy, and our actions in acquiring $10 billion of SHOP assets and growing organically, we are 1, 2 and 3 are basically aggressively expanding the percentage of our business at SHOP and managing that optimally as we've talked about outperforming at scale. And that -- the whole company really is focused and driven around those because that's what we believe will deliver the multiyear growth and value creation opportunity.

Operator

Your next question comes from the line of Rich Anderson with Cantor.

Richard Anderson

I had a little bit of PTSD when your phone lines went out earlier. So a question...

J. Hutchens

If it happens again, it was not on purpose.

Richard Anderson

So this is admittedly splitting hairs, but I'm going to ask it because I think it's having an effect on people's perception of the print this morning. For the third quarter, you did 17% same-store NOI growth out of SHOP; last quarter, it was 18%. For the third quarter, year-over-year increase in margin of 190 basis points. Last quarter, it was 210. So my point is if the third quarter is supposed to be the best quarter. And Justin to your point, things move around, it's nonlinear. I get all that. And I am kind of more of the messenger here on this question, but does this sort of indicate that this is where we're plateauing in terms of organic growth potential, margin expansion, all that sort of stuff, given that this third quarter should be the best of all quarters? Or is that a little bit over a bit simplified?

J. Hutchens

I'm so happy you asked that. So this is -- it was a good quarter. Like I said, in the 17 quarters, we had double-digit NOI growth. I think there's always something we thought could have been better. 17 quarters in a row, we've done this. And I described really how the portfolio is built, the runway ahead, the demand that's coming, the way pricing is playing out and the incremental margin, it's all really as we expected around this journey -- this growth journey that we're on. And there's a long way to go. So we're not even at all bothered about this quarter. What we're focused on is where it's going, and the true trajectory is really positive, and the macro environment is solid and the levers we can pull are proven, and we have a great team and great operators.

Richard Anderson

Okay. So related to that, so hypothetically, let's say you -- your occupancy gain cadence isn't 300 basis points anymore, but it's 200 or 150 or even 0 eventually because you can't go over 100%. So if that means that your rate growth is better in a higher occupied portfolio, can you still maintain that level of bottom line same-store NOI growth? Or does it naturally come down because if the only lever revenue point of view becomes rate over occupancy. So I'm just curious how that math works when you consider incremental margin on new rate increases and all that sort of stuff. If you could just sort of comment on the interplay of all that, that would be great.

Debra Cafaro

I do want to remind you that as we sit here today, we've had 17 quarters under our belt of double-digit NOI growth. We have 89% occupancy in the U.S. We have rate and occupancy working together to drive NOI. And there is this multiyear runway ahead as we're just not even fully into the over-80 population starting to boom and so -- that's what gives us the confidence really about this multiyear growth and value creation opportunity ahead.

I think you're kind of way down the path, even though we do know that higher occupancy levels, as Justin said, RevPOR growth is significantly higher. And that's a lever that we can use as we look forward. But we're in it to win it at this period of time. And as we look forward, we're very optimistic about the setup for us in the competitive advantages and capabilities that the team and the platform bring to continue to try to outperform in senior housing.

J. Hutchens

And I would just say that I'm not in the business of rating questions. But the second question was better because I think that's a more relevant question. It's like where is this going? And I think it's a great question. And when we get there, down the road, we can have some great discussion around how that's all played out.

Debra Cafaro

Yes, and thank you for raising it. It's a good conversation.

Operator

Your next question comes from the line of Michael Carroll with RBC Capital Markets.

Michael Carroll

I wanted to circle back on the margin flow through. I guess, Justin, where is the break line that pushes that margin from 50% to 70%. I mean I was under the impression that was closer to the low 90% range, not the high 90% range. And if you kind of look at the presentation, it looks like Ventas' flow-through marginally increased from 49% in 2025 to about 52% from the past 12 months, even though you saw occupancy kind of jump from the high 80s to the low 90s. I mean is there anything unique in that number? I mean, are you seeing more occupancy gains in the U.S. portfolio that's kind of in the mid-80s, and that's why that increase in that margin flow-through has been a little bit lower than expected?

J. Hutchens

Yes, there's a couple of things. First of all, there's not a bright line. It really depends on the product type you're talking about, and it's relative to price point, places a big role. There is a distribution in our portfolio that has -- we have a lot of runway in occupancy. So that portion of our portfolio that has the long runway is not delivering a stronger margin. The part that is the highest occupied communities. So that -- I do want to clarify 1 point, though. I think it's playing out exactly as we expected. We said low 90s into the 50s. And so that's happening. We would expect as more communities move up in terms of occupancy and our portfolio grows more in terms of occupancy that we'll see the incremental margin to continue to play out.

The -- within the portfolio we can see it so clearly. The incremental margin flow-through is so clearly happening at various occupancy levels, but we have a wide variety of types of communities and markets and et cetera. So I don't really have a bright line for you.

Michael Carroll

Okay. That's helpful. And then...

Debra Cafaro

That's part of the opportunity ahead.

Michael Carroll

Right. And then just switching to the same-store portfolio. Can you kind of some color on how that could potentially change next quarter? I do you -- do those deals that is coming rolling into same store? Do they have better occupancy comparison numbers? I'm just trying to understand how you can hit that roughly 300 basis point occupancy gain in 2026. I mean is there some benefit in there that we can't see in the current same-store pool?

Robert Probst

Mike, it's Bob. I'm going to take that one. I feel like a potted plant over here. So look, you saw an increase in our same-store pool second to third to 600 assets call it, 3/4 of our NOIs in same-store. Justin earlier talked about the non-same-store pool and the composition. We would expect as we move forward to have more and more assets coming into same-store, including in the fourth. And that's contemplated when we give the guide overall to get to the average for the full year. But you'll see that number continue to increase from a very large proportion already.

Operator

Your next question comes from the line of Michael Stroyeck with Green Street.

Michael Stroyeck

Maybe 1 more question on the flow-through margin topic. All else equal on the occupancy front, how does that flow through compare on some of your more luxury type assets relative to maybe some lower price point properties? Is there a meaningful difference?

J. Hutchens

Yes. I mean they're -- I'll say that our luxury independent living has very high margin, and it kind of living as really high operating leverage. So you're -- you would see probably your strongest incremental flow-through there. Your -- we have very high price point assisted living as well, but some of it also delivers really high level of care. So there's costs associated with that. But generally, you're going to see better margin with higher RevPOR, and there's certainly a relationship there. And the ultimate driver across the board is operating leverage.

I'll also say that I mentioned earlier that what we're buying, being 70% luxury and 20% ultra premium luxury, there's a meaningful REVPOR uplift that's coming through the acquisitions as well.

Michael Stroyeck

Got it. Okay. And then 1 just on maybe the regulatory environment in the U.S. Have you seen any legislation arise across your markets, either on rent regulation or anything on the labor side? And I guess, how do you think about the long-term risk of the space becoming incrementally more regulated? Is just the sheer amount of seniors utilizing senior housing growth?

Debra Cafaro

Well, one of the things we've always appreciated about senior housing is that it's a consumer-driven product in that seniors and their families are choosing to live there because of the valuable benefits that it provides. And are relatively comparable to what a senior would pay living at home and having some amount of services. So we are obsessively focused about our operators delivering kind of quality care, providing a great value proposition for seniors and their families. And this is the wealthiest generation in history, the baby boomers as they start to enter our markets. And so we -- it's a state-by-state matter. There really hasn't been anything that's gained material traction around really limiting access or revenue opportunities at our communities. But we are very conscious of making sure that what we're delivering is worth the price that people are paying. And that's what's really important in consumer-driven products.

Operator

Your next question comes from the line of Alex Fagan with Baird.

Unknown Analyst

Just one for me. Can you kind of talk about the opportunity for more expansion projects and how Ventas is positioning itself to participate in the next development cycle?

Debra Cafaro

Good one. Justin?

J. Hutchens

Yes. Yes, absolutely. So we have a lot of opportunity. We are -- we've been evaluating our own portfolio over the past year or so. And we have expansion projects that are planned. And some of those, you're just adding a structure. We have 1 -- I think it's highlighted in our supplemental somewhere, Quincy Place, that's a pretty big project, $30 million or so. We're adding cottages next to a community that is now 100% occupied. And so high demand opportunity to really just expand a winning product in what's already proven to be a strong market. And we're looking -- there's dozens of opportunities across our portfolio where we found an opportunity and that we're making plans to proceed.

Operator

Your next question comes from the line of Rich Hightower with Barclays.

Richard Hightower

Just one for me as well on the few things tight here. So Justin, I think in your prepared comments, you sort of briefly alluded to the debt market potentially creating opportunities for more transaction volume in '27. I assume that has to do with sort of the 2021 vintage of loans on a lot of these assets. But just given the growth in NOI and SHOP, what's the likelihood that really you'd be competing against the market for refinancing where the equity is still -- is still good, and there's no sort of compelling reason to sell necessarily next year?

Debra Cafaro

I'm going to grab that one. Just -- the point that we want to make is that -- we have -- as you know, we have significant competitive advantages that we won't repeat here in the investment market. A lot of our deals are relationship-oriented, among other things. And of course, we have significant financial strength and flexibility. What we're saying is the move -- the global move in rates and the volatility in the capital markets makes us an even more desirable counterparty in an acquisition. We do have that financial strength. People know we know what we're doing. We can close. They don't have to wait for someone -- a different buyer to get a mortgage or line up their financing.

And so coupled with all of our other existing advantages being a long-term, very knowledgeable counterparty and ACTR in the space. I mean that just adds to the competitive advantages that have given us the momentum to close $5 billion so far this year. And it just makes us incrementally more popular if that were possible. So that's how I would describe what we were getting at.

So operator, do we have any other questioners in the queue. Okay. All right. Well, we appreciate everyone's time this morning. And as always, we appreciate your interest in the company. We're really glad that we were able to deliver a strong quarter, and we very much look forward with the opportunities we have ahead, and to see you in the fall. Thank you.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.