Purpose of the project
A comprehensive benchmarking of energy consumption across our managed portfolio of 275 Medical Office Buildings (MOBs) provided an opportunity to identify additional ways to reduce energy consumption. Within our portfolio, 200 assets qualified for lighting retrofit review, with the first cluster of 44 assets that met the investment thresholds being approved at a cost of $3.3 million. The remaining assets will be evaluated and presented in two tranches as add-on investment opportunities during 2015. Significant savings via lighting retrofits provided the most direct and immediate investment opportunity to eliminate outdated lighting technology with newer, more efficient options, while extending operating life spans and improving interior environments.
Ventas established sustainability guidelines and financial targets to prioritize and guide the investment decision. Each MOB was audited, and a customized plan was created to re-lamp or retrofit the entire building, including both interior and exterior spaces. A business case and a financial analysis of each audit and project proposal was prepared and vetted by leadership, as well as field teams, enabling us to arrive at a consensus on the investment thesis
We anticipate this initiative will re-lamp or retrofit two-thirds of our MOBs, resulting in reduced consumption by 6.9mm kWh/year; equivalent to annual savings of 4,758 metric tons of CO2 emissions across our portfolio.
It’s exciting to look at further opportunities for sustainability projects within the Ventas portfolio that might include investments in lighting, solar, wind, cogeneration, water, roofing, etcetera. Senior management is eager to hear about these new ideas, which provide opportunities to enhance shareholder returns, improve our buildings, and work with our tenant and operating partners.
- Brian Fry, Director, Asset Management