You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: These materials are available on the Ventas website at www.
I will now turn over the call to Debra A. Cafaro, Chairman and CEO.
The Ventas team is dispersed but unified in spirit as we join you for today's call.
I'd like to provide an overview of our consistent strategy, discuss our third quarter results, highlight how we are driving our research and innovation business forward, describe our competitive advantage and managing institutional third-party capital and touch on the positive senior housing operating trends that continue into October.
Our enterprise continues to benefit significantly from our steady commitment over decades and various cycles to asset class operator and geographical diversification.
We aim to generate reliable growing cash flows from a high-quality diverse portfolio of assets on a strong balance sheet.
We've seen that staying disciplined about diversification has protected the downside and also provided myriad opportunities for our stakeholders.
The current environment is certainly proving out the merits of this strategy.
First, our diversified portfolio is enabling the company to remain strong and stable, despite the disruption occasioned by the COVID-19 pandemic, which has affected our different asset classes and geographies in non-correlated way.
Our medical office, research and innovation business and our healthcare triple-net lease business now represents over half of our enterprise.
During the quarter, these asset classes have continued to perform well and led our third quarter performance, enabling us to deliver $0.75 of normalized FFO per share.
Second, our diversified asset base with five verticals has given us the ability to continue successfully allocating capital over time and through cycles.
For example, following this spinoff of our skilled nursing business, we invested in high quality health systems with [Indecipherable], which is currently performing very well as hospitals have asserted essentiality to the healthcare delivery systems in the U.S. Also, just as we did when we allocated capital to the medical office building business a decade earlier, in 2016, we entered the research and innovation business, and we have found significant opportunities to drive that business forward since then, through both ground up development and asset acquisitions.
The addition of life sciences to our enterprise has provided uplift to our results, our investment activity and our enterprise value.
Two recent examples of the benefit of our diversified strategy include our investment in a $1 billion Class A Trophy Life Science Portfolio located in the Premier South San Francisco Life Science Cluster at a forward cap rate of 5% on cash NOI.
The tenant base is a nice mix of public companies and a diverse group of early to mid-stage life science company.
The South San Francisco market consistently ranks as one of the elite life science clusters.
Spurred by record capital flows into the life science sector, this market has less than 2% lab vacancy, unparalleled access to a large concentration of life science firms and an extensive venture capital network going after the world class talent pool.
We also recently recommenced construction on a 400,000 square foot state-of-the-art Life Sciences project known as One UCity in this thriving research sub market of Philadelphia, bookended by 10 and Drexel.
This project is designed to be LEED certified and total estimated project costs are over $280 million.
Similarly, we've invested on a geographically diversified basis with over 30% of our shop portfolio now in Canada.
Last year, we acquired the high-quality Le Groupe Maurice portfolio in Quebec.
Building on the strong performance LGM has delivered and its history of successfully developing and leasing up senior communities for vibrant older adults.
We are also investing nearly $420 million in ground up development of new consumer focused senior living communities, which are well under way.
We do see areas where we can recycle capital too.
We have recently sold or placed under contract certain portfolios of senior living assets that are not long-term holds for us.
We want to continue making senior housing a key part of our diversified portfolio because of the operational asset class upside post-pandemic, the demographically driven demand that is in front of us and the continued improvement on the supply side.
There remains a strong bid from private capital for senior living, which supports our conclusion.
On the other side of the ledger, through our growing third-party institutional Capital Management Platform, we also continue to diversify our capital sources, augment our investment capacity, expand our footprint, leverage our team and industry expertise and improve our financial flexibility and liquidity, all of which are positive for our public shareholders.
Having additional partners and tools to use at appropriate times and for customized situations, provides a significant competitive advantage for Ventas and as an incremental source of earnings.
We already have over $3 billion in assets under management in our institutional third-party capital management platform.
These forms include our successful open-end funds, launched in March of this year, that has already grown to nearly $2 billion and 2 million square feet in assets under management.
Following the South San Francisco Life Sciences portfolio closing, when we raised over 600 million of discretionary new equity, our fund exceeds $1 billion in equity capital, and continues to have additional committed capital to accommodate new investments.
We've also today announced a new joint venture with GIC, one of the most respected global real estate investors.
This joint venture covers four research and innovation development projects currently in progress with approximately 930 million in estimated project costs.
Our joint venture with GIC may be expanded to over $2 billion with other pre-identified future R&I development projects currently in our pipeline if they go forward.
While maintaining a majority interest in all these projects and receiving market-based compensation, our GIC joint venture enables us to align with a strategic partner, improve our liquidity and financial profile and accelerate our research and innovation development pipeline, including the recent construction commencement of the One UCity project in Philadelphia.
The success of our open-end fund and the GIC partnership demonstrates a tremendous market opportunity within life science, medical office and senior housing real estate Also they are a testament to Ventas's excellent team and investment track record.
Turning to the year-end now, I'd like to provide some key observations about our U.S. senior housing operating portfolio.
Importantly, in the third quarter, our operators continued to build on the improving trend that began in the second quarter.
Our communities demonstrated sustained increases in leads and movements, which continued through October.
While we are sober and clear eyed about the recent increase in COVID-19 cases nationally, to a record level of nearly 120,000 confirmed cases today, we believe in the strength of the senior living business as we look toward the post-pandemic environment.
We are also appreciative that HHS has recognized the crucial role senior living plays in protecting vulnerable older Americans.
HHS has allocated CARES Act funding to the assisted living community to partially mitigate the losses directly suffered because of the COVID-19 pandemic.
Finally, we are encouraged by the progress being made by scientists and doctors on vaccines and treatments for COVID-19.
Older Americans, including our residents, will be prioritized for vaccine distribution slated just behind first responders and frontline healthcare providers.
Most of our operators have already registered with pharmacy distribution sources to administer the COVID-19 vaccine as soon as it becomes available.
An effective, widely distributed vaccine will further improve conditions for a senior housing recovery.
We are glad that we have significant embedded exposure to that upside in our diversified portfolio.
Today, we published our corporate sustainability report that showcases our long-standing commitment to and leadership in ESG.
Among other things, this report discloses our new environmental goals are consistent and growing investments in sustainability improvements in our portfolio, and our principles and practice, which is a series of case studies showing our actions on health and safety and COVID-19 describing our emergency preparedness, and demonstrating our customized framework to achieve greater gender and racial equality and social justice.
In closing, let me reiterate that the long-term demographically driven thesis for healthcare real estate and for Ventas remains in place.
I'm incredibly proud of our Ventas team.
Our consistency and cohesion are great assets for all our stakeholders.
All of us at Ventas have an abiding commitment to stay strong and stable and win the recovery.
I'll start by mentioning the encouraging trends we continue to see in our shop portfolio.
We are pleased to have had our first net positive move in month since the start of the pandemic in October and a majority of our portfolios delivering move ins at levels that are equal to or more than typical levels across the U.S. and Canada.
The underlying demand for need driven senior housing in the U.S. and independent living services in Canada persists.
While we are encouraged about these positive trends, we're mindful that the pandemic causes ongoing uncertainty and choppy waters in the senior housing business.
I will also add that in spite of the near-term pressure on the sector, we remain committed to the senior housing business and excited about the supportive underlying supply demand fundamentals that should persist for years to come.
Now I will review our third quarter senior housing results in the shop and triple-net portfolio and follow that up with some comments on our latest trends and outlook.
First up, the shop, for the quarter, shop results were in line with the company's expectations.
Our 395 assets sequential same-store pool comprising over 90% of our shop NOI, posted cash NOI of 109 million which is effectively flat versus the second quarter.
Average occupancy was 130 basis points lower sequentially with improving trends inter quarter while RevPOR declined 30 basis points and grew 50 basis points in our U.S. and Canadian operating portfolios respectively.
Leading indicators such as leads and movements also saw a consistent and positive trend intra quarter, both in absolute numbers and relative to prior year, highlighting the resilient demand for senior housing.
In September leads and move-ins were 85% and 94%, respectively, as compared to the prior year.
Third quarter revenue declined 3.6% which was offset entirely by 4.5%, lower operating expenses sequentially, primarily driven by lower COVID related expenses.
As a reminder, all COVID-19 impacts including elevated testing, labor, cleaning and supplies costs have been reflected in property operating results.
As with last quarter, I'll highlight our Canadian portfolio, which represents 33% of our shop portfolio and demonstrates the benefits of our diversification and a well-orchestrated public health response.
The 72 communities within our sequential Q3 same-store pool, including our LGM investment was 93.2% occupied, which compares to an average of 93.7% for the second quarter, outperform in the U.S. on an absolute and relative basis.
Same-store cash NOI on a sequential basis grew in Canada by over 10%.
Moving on to our triple-net senior housing portfolio, in the third quarter and through October Ventas received all of its expected triple-net senior housing cash rent.
Our underlying triple-net senior housing portfolio performance continues to be impacted by COVID-19, which we have been collaboratively addressing with our tenant partners.
As a result of our proactive steps to improve coverage through mutually beneficial arrangements with Capital Senior, Holiday, Brookdale and other smaller tenants, our trailing 12 months cash flow coverage for senior housing is 1.4x.
We also expect triple-net senior housing tenants will receive CARES Act funding, which will be a positive development.
Now I'll address recent trends.
As described earlier, demand characteristics supporting senior housing remain solid and leads and move-ins continue to improve since the low point in April and month-over-month in the third quarter.
These trends persisted into October as we experienced net positive move-ins helped in part by selective move in incentives.
Our operators successful execution of screening, protecting and testing protocols has been supporting a living environment that's more open and more robust than earlier in the pandemic.
Currently, 96% of our communities are accepting move-ins.
Moving on to our clinical results.
As a result of the diligent efforts of our operators executing, testing and preventative protocols new resident COVID-19 cases more than 75% better than the peak seen in April, in spite of broader market trends of increased new infection rates among the U.S. general public.
In regards to the Q4 outlook for shop, due to the uncertain environment, it is too hard to predict.
However, we would expect occupancy to soften and we would expect expenses to be relatively flat at the current elevated levels as the health and safety of the residents and frontline caregivers is the biggest priority.
In summary, we are encouraged by the continued improvement and leading indicators through the third quarter and October and we remain committed to the senior housing business moving forward.
We are proud of our operators' efforts in the third quarter to successfully execute COVID-19 related protocols while focusing on the health and safety of frontline caregivers and residents.
With that, I'll hand the call to Pete.
I'll cover the office segment third quarter results and trends.
Our office segment which now represents over 30% of Ventas' NOI continues to produce strong results and show its value proposition and financial strength and missed the pandemic.
MOBs and research and innovation centers, the two lines of business within our office portfolio play a key role in the delivery of crucial healthcare services and research for life saving vaccines and therapeutics.
The Office portfolio continued to provide steady growth delivering 126 million of same-store cash NOI in the third quarter.
This represents a 40 basis points of sequential growth.
You will note that the same-store cash NOI declined 2.2% year-on-year for the third quarter.
However, we lapped a large $4.7 million termination fee in the third quarter of 2019.
normalizing for this fee.
The same-store cash NOI grew 1.5% from the prior year normalizing for the paid parking shortfall and increased cleaning costs due to COVID, same-store cash NOI grew by 2.8%.
In terms of rent receipts, office tenants paid an industry leading 99% of contractual rents in the third quarter in line with the second quarter.
This is without D docs for deferrals, which were de minimis.
Substantially all granted second quarter deferrals that came due have been repaid and new granted, deferrals were negligible.
As of November 6, our tenants have paid more than 99% of October contractual rents.
Receiving 99% of total rent without D docs is a direct reflection of the quality of our tenants and the quality of our buildings.
The solid result underscores the durability and quality of our tenant base.
Remember 88% of MOB NOI is from investment grade tenants or HCA and 97% of our MOB NOI comes from tenants affiliated with major health systems, including some of the nation's most prestigious, not-fort-profit health systems.
Most tenants have received significant amount of federal support through a variety of programs designed to assist healthcare providers in small businesses.
As an example, we estimate that our top 10 Health System tenants have collectively received nearly 5 billion in CARES Act relief and 10 billion in Medicare advanced payments.
For our R&I portfolio 76% of our revenues are received from investment grade organizations and publicly listed companies a very solid foundation.
Third quarter 2020 office occupancy for the same-store portfolio was 91.1%, a sequential decline of 40 basis points due to several small tenants not reopening post COVID.
This was partially offset by the lease up of research and innovation assets associated with the University of Pennsylvania in Philadelphia and Washington University in St. Louis.
Lab space continues to be in high demand and the R&I portfolio is now 97% leased an outstanding result.
Medical office had a record level retention at 90% for the third quarter of 2020 and for the trailing 12 months.
Driven by this retention total office leasing was 1.2 million square feet for the quarter and 2.7 million square feet year to-date.
This is 400,000 square feet higher than our third quarter of 2019 leasing and 300,000 square feet higher than the third quarter 2019 year-to-date leasing.
We also saw a positive space utilization trends that mirrored admissions in surgery volumes reported by the health systems.
These trends have continued through October.
As an example, paid parking is more than doubled from the depths of COVID but as recovered to 65% to 70% of pre-COVID levels, climbing but still below historical levels.
As Debbie mentioned, we are pleased to have added three R&A buildings in South San Francisco.
Since going under contract, we have signed a large renewal and are experiencing a high level of leasing activity.
This gives us confidence that our occupancy will soon build from the current state which is already 96% leased.
During the third quarter, we received the results of our annual tenant satisfaction survey.
I am pleased to report that this year's results were significantly higher than in prior years.
In fact, when compared to other MOB portfolios by an independent third-party, our tenant satisfaction is in the top quartile.
One of our highest rated scores was how our team supported our tenants during the pandemic.
These essential field personnel who serve our tenants on-site during the pandemic, have done a terrific job.
We are grateful for their effort and commitment.
And we continue to focus on the health and safety of these personnel and our tenants.
In sum, our tenant satisfaction, leasing, NOI and cash receipts were positive during the third quarter, a clear build from the second quarter and we look forward to continuing the normalization of healthcare in research operations as we entered 2021.
With that, I'll pass the baton to Bob.
I'll touch on our healthcare triple-net lease portfolio before I close with some enterprise level commentary.
During the third quarter, our healthcare triple-net assets showed continued strength and resilience as evidenced by receiving 100% of third quarter, October and November from our total healthcare tenants.
Further trailing 12 months EBITDARM cash flow coverage for the second quarter of '20, related to the available information improved sequentially for all of our healthcare triple-net asset classes despite COVID-19.
Both acute and post-acute providers have had early access to significant government funding to create liquidity and to mitigate losses related to the pandemic.
Acute care hospitals trailing 12-month coverage was a strong 3.1x in the second quarter.
Nationally hospital inpatient admissions and surgeries continue to rebound in Q3 and third quarter admissions approached over 90% of prior year levels.
Arden continues to perform extremely well despite the challenging market conditions and is benefiting from over 90% of its hospitals residing in jurisdictions that are open for elective procedures.
Herbs and health tax coverage improved 20 basis points to 1.5x in Q2 on the heels of government funding and significantly improved census.
Health tax have increasingly proved their importance in the care continuum, with or without COVID.
And finally, within our loan portfolio, our Colony, Holiday and Brookdale loans are all fully current.
Turning to our third quarter financial performance, and let me start with Q3 GAAP net income, which includes $0.06 in non-cash charges as a result of COVID impacts.
Most notably the write-off of straight-line rents across five tenants, with Genesis being the largest.
These tenants are now on a cash basis and represent approximately 50 million of annual cash rent, notwithstanding the write-offs, all these tenants are current, and we will endeavor to collect all our contractual rents going forward.
These non-cash charges are excluded from third quarter normalized FFO.
We provided additional information in our supplemental on page 34.
In terms of normalized FFO per share, we delivered $0.75 in Q3 2020 versus $0.77 in the second quarter.
Shop and office NOI were stable sequentially, with the $0.02 reduction in FFO in the third quarter, as compared to the second described by the Brookdale rent reset in the third quarter.
In the third quarter, we saw the results of the decisive actions taken earlier in the year to ensure a strong and stable Ventas.
These included reducing our corporate cost structure by 25%, resulting in 30 million in annualized SG&A savings in Q3.
We are also active in managing our balance sheet and liquidity, including paying down substantially all borrowings under our revolving credit facility, successfully tendering for 236 million of near-term bonds and issuing under our ATM to help fund the South San Francisco investments.
Net-net, we feel good about our financial flexibility.
Our liquidity is strong at 3.2 billion between available revolver capacity and cash on hand as of November 5.
We have limited near-term debt maturities, access to diversified capital sources, strong fixed charge coverage and debt to gross asset value just 37%.
To close, we're pleased with our performance in the quarter and the continuing improving trends in senior housing.
The entire Ventas team is sharply focused on taking the actions that will enable us to win the recovery when the pandemic is finally behind us.
Before we start with Q&A, we're limiting each caller to one question with one follow-up to be respectful to everyone on the line.
Also given the fact that we continue to be remote, I'd ask Debbie to do her Roethlsberger impression and quarterback our QA.

user
ventas inc - qtrly ffo $0.75.

assistant