Ventas (NYSE: VTR) has upped its expected acquisition pipeline, representing a new “floor” for investments in 2025, not a “ceiling,” according to Ventas Executive Vice President of Senior Housing and Chief Investment Officer Justin Hutchens.

The company recently increased guidance for acquisitions to $1.5 billion, reflecting an active and competitive landscape for new deals. As Hutchens has noted before, the company is seeking to grow its senior housing operating portfolio (SHOP) to comprise half or more of its net operating income (NOI) by year’s end.

“The opportunity set we’re seeing is multiple billions,” Hutchens said Tuesday during a presentation at the Nareit REITweek Conference. “We anticipate to continue to execute on the investment strategy and continue to expand our footprint in senior housing.”

Currently, Ventas has 33 operators managing its properties, “but that will probably grow” as the company adds new communities to its holdings, Hutchens said.

“We’re highly engaged in asset management through our Ventas OI platform. We’re highly engaged in the improvement of the assets through our CapEx Refresh program,” he said. “If you’re going to own this at scale, you really need to have a platform that can back it up.”

The REIT is targeting “high quality” communities with up to 90% occupancy rates and in markets with “strong absorption and strong affordability,” according to Hutchens.

Ventas has funded its acquisitions through a combination of organic growth and equity funding, Executive Vice President and Chief Financial Officer Bob Probst said.

An estimated 70% of the existing pipeline is sourced from the relationships the REIT has with operators.

“We’ve had off market opportunities, where operators are really choosing to work with Ventas,” Hutchens said.

Looking ahead though, Hutchens said he believes the competition for these types of assets is going to increase due to incoming demand profiles.

“This is a red-hot asset class,” he said.

Ventas’ pipeline is factored in through the general growth the REIT is seeing this year, particularly now that the early move-in season is underway. Between March and May alone, its portfolio has seen occupancy gains of 30 to 50 basis points, with 15% growth of net operating income in April due to “the occupancy pricing and labor,” according to Probst.