Ventas, Inc.VTR

Ventas, Inc. Fair Value Disclosure

10-KFiled Feb 6, 20263 min read
NOTE 11 – FAIR VALUES OF FINANCIAL INSTRUMENTS

Financial Instruments Measured at Fair Value

The table below summarizes the carrying amounts and fair values of our financial instruments either recorded or disclosed on a recurring basis (dollars in thousands):
 As of December 31, 2025As of December 31, 2024
 Carrying AmountFair ValueCarrying AmountFair Value
Assets:    
Cash and cash equivalents (1)
$741,067 $741,067 $897,850 $897,850 
Escrow deposits and restricted cash (1)
45,070 45,070 59,383 59,383 
Secured loans receivable and investments, net (3)(4)
143,913 146,364 144,872 146,229 
Non-mortgage loans receivable, net (3)(4)(5)
20,827 20,432 28,129 27,640 
Derivative instruments (3)(4)(5)
12,390 12,390 53,100 53,100 
Liabilities:
Senior notes payable and other debt, gross (3)(4)
$13,103,627 $13,429,007 $13,618,802 $13,411,066 
Derivative instruments (3)(6)
5,267 5,267 5,887 5,887 
Temporary Equity:
Redeemable OP Units (2)
$260,672 $260,672 $200,420 $200,420 
______________________________
(1)The carrying amount approximates fair value due to the short maturity of these instruments.
(2)Level 1 within fair value hierarchy.
(3)Level 2 within fair value hierarchy.
(4)Level 3 within fair value hierarchy.
(5)Included in Other assets on our Consolidated Balance Sheets.
(6)Included in Accounts payable and other liabilities on our Consolidated Balance Sheets.    

For a discussion of the assumptions considered, refer to “Note 2 – Accounting Policies.” The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented above are not necessarily indicative of the amounts we would realize in a current market exchange.

Items Measured at Fair Value on a Recurring Basis

Our derivative instrument assets as of December 31, 2025 consist primarily of interest rate swaps and the Scion Warrants. The fair value of our interest rate swaps is based on Level 2 inputs. The Scion Warrants represent a financial interest in a private entity whose fair value is based on Level 3 inputs that reflect significant assumptions including underlying enterprise value, market volatility, duration, dividend rate and risk-free rate. Changes in one or more of these inputs could significantly impact the fair value determination.

Substantially all of our derivative instrument liabilities as of December 31, 2025 consist of interest rate swaps. Their fair value is based on Level 2 inputs.

Other Items Measured at Fair Value on a Nonrecurring Basis
Other items measured at fair value on a nonrecurring basis include assets and liabilities held for sale and real estate assets that are evaluated periodically for impairment (see “Note 5 – Dispositions and Impairments”). We estimate the fair value of assets held for sale and any associated impairment charges based primarily on current sales price expectations, which reside within Level 2 of the fair value hierarchy.

Real estate impairment charges recorded due to our evaluation of recoverability when events or changes in circumstances indicate the carrying amount may not be recoverable are based on company-specific inputs and our assumptions about the marketability of the properties as observable inputs are not available. As such, we have determined that these fair value measurements generally reside within Level 3 of the fair value hierarchy. We estimate the fair value of real estate deemed to not be recoverable using the cost or income approach and unobservable data such as net operating income and estimated capitalization and discount rates, and giving consideration to local and national industry market data including comparable sales.

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 10, 2023
2021Feb 18, 2022
2020Feb 23, 2021
2019Feb 24, 2020
2018Feb 8, 2019
2017Feb 9, 2018
2016Feb 14, 2017
2015Feb 12, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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