Shares of Ventas (VTR) have gained 34.1% in the past six months compared with the industry's growth of 7.9%. This Chicago-based healthcare real estate investment trust (REIT) is well-positioned to gain from its diverse portfolio of healthcare real estate assets in the key markets of the United States and the U.K. An aging population and the rise in healthcare expenditure by senior citizens are likely to benefit the senior housing operating portfolio (SHOP). The outpatient medical portfolio is expected to ga ...

Ventas, Inc. (VTR) reported second-quarter 2024 normalized funds from operations (FFO) per share of 80 cents, which surpassed the Zacks Consensus Estimate of 79 cents. The reported figure increased 6.7% from the prior-year quarter's tally. Results reflect growth in occupancy in the SHOP same-store portfolio contributing to higher revenue generation. The company has improved its 2024 outlook. VTR clocked in revenues of $1.20 billion in the second quarter, which beat the Zacks Consensus Estimate of $1.19 bill ...

Core Insights - Ventas reported revenue of $1.2 billion for the quarter ended June 2024, reflecting an 8.6% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.19 billion by 0.78% [1] - The company's EPS was $0.80, significantly higher than $0.26 in the same quarter last year, and exceeded the consensus estimate of $0.79 by 1.27% [1] Revenue Breakdown - Rental income from Triple-net leased properties was $153.93 million, slightly above the average estimate of $153.42 million, showing a year-over-year decrease of 0.3% [3] - Rental income from the outpatient medical & research portfolio was $218.85 million, slightly below the average estimate of $219.42 million [4] - Total rental income was reported at $372.79 million, close to the average estimate of $372.84 million, with a year-over-year increase of 0.7% [5] - Resident fees and services generated $817.60 million, exceeding the average estimate of $815.27 million, marking a significant year-over-year increase of 12.8% [6] - Third-party capital management revenues were $4.33 million, below the average estimate of $4.48 million [7] - Income from loans and investments was $1.44 million, lower than the average estimate of $1.67 million, representing a substantial year-over-year decline of 78.1% [8] - Interest and other income reached $4.83 million, below the average estimate of $5.43 million, but showed a remarkable year-over-year increase of 367.5% [9] Net Operating Income (NOI) - NOI from Triple-Net Leased Properties was $150.43 million, slightly below the average estimate of $150.53 million [9] - NOI from SHOP was reported at $214.24 million, exceeding the average estimate of $210.47 million [10] - NOI from the Office Outpatient medical & research portfolio was $146.27 million, above the average estimate of $144.53 million [11] Stock Performance - Ventas shares have returned 5.1% over the past month, outperforming the Zacks S&P 500 composite's return of 1.1% [11] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [11]

分组1 - Ventas reported quarterly funds from operations (FFO) of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, and up from $0.75 per share a year ago, representing an FFO surprise of 1.27% [1] - The company posted revenues of $1.2 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.78%, compared to $1.11 billion in the same quarter last year [2] - Over the last four quarters, Ventas has surpassed consensus FFO estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and future FFO expectations [3] - Ventas shares have increased by approximately 9.2% since the beginning of the year, while the S&P 500 has gained 15.8% [3] - The current consensus FFO estimate for the coming quarter is $0.80 on $1.21 billion in revenues, and for the current fiscal year, it is $3.16 on $4.82 billion in revenues [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other industry is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Ventas is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. The consensus estimate for 'Revenues- Rental income- Triple-net leased' stands at $153.42 million. The estimate indicates a year-over-year chan ...

The consensus mark for outpatient medical and research portfolio rental income for the second quarter is pegged at $219.42 million, indicating growth from $218.88 million reported in the prior quarter and $215.81 million reported in the year-ago period. The Zacks Consensus Estimate for second-quarter resident fees and services is pegged at $815.27 million, suggesting an increase from $813.3 million reported in the prior quarter and $724.61 million in the year-ago period. The Zacks Consensus Estimate for sec ...

Over the past month, shares of this Zacks Rank #3 (Hold) company have risen 5.4% compared with the industry's upside of 1.8%. Competition from national and local healthcare operators may weigh on Ventas. The company's operators contend with peers for occupancy, which could limit its power to raise rents and drive profitability, as well as crack deals at attractive rates. Stocks to Consider The Zacks Consensus Estimate for Paramount Group's 2024 FFO per share has been raised marginally over the past month to ...

PART I—FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Ventas, Inc.'s Q1 2024 unaudited financials show total assets at **$24.67 billion**, revenues at **$1.20 billion**, and a net loss of **$14.3 million** Consolidated Balance Sheet Summary (in thousands) | Balance Sheet Item | As of March 31, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$24,672,586** | **$24,725,433** | | Net real estate property | $21,550,806 | $21,748,950 | | Cash and cash equivalents | $632,443 | $508,794 | | **Total Liabilities** | **$14,928,709** | **$14,878,392** | | Senior notes payable and other debt | $13,555,194 | $13,490,896 | | **Total Equity** | **$9,458,833** | **$9,544,405** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income Summary (in thousands, except per share amounts) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Total revenues | $1,199,914 | $1,077,245 | | Total expenses | $1,207,416 | $1,065,713 | | Net (loss) income | $(12,540) | $18,912 | | Net (loss) income attributable to common stockholders | $(14,312) | $17,517 | | Diluted EPS | $(0.04) | $0.04 | - Total revenues increased by **11.4% YoY**, driven primarily by a **15.4%** rise in Resident fees and services from the senior housing portfolio[11](index=11&type=chunk) - Total expenses grew by **13.3% YoY**, led by higher property-level operating expenses for senior housing and increased interest expense[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $266,448 | $242,817 | | Net cash used in investing activities | $(144,587) | $(56,280) | | Net cash provided by (used in) financing activities | $4,824 | $(162,107) | | **Net increase in cash, cash equivalents and restricted cash** | **$126,685** | **$24,430** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail business structure, accounting policies, segment performance, tenant concentration, lease negotiations, and capital events NOI Contribution by Segment (Q1 2024) | Segment | Total NOI (in thousands) | Percentage of Total NOI | | :--- | :--- | :--- | | Senior housing operating portfolio (SHOP) | $203,483 | 40.4% | | Outpatient medical and research portfolio (OM&R) | $145,570 | 28.9% | | Triple-net leased properties | $151,630 | 30.1% | | Non-segment | $3,201 | 0.6% | - The company faces significant concentration risk, with properties managed by Atria and Sunrise, and leased to Brookdale, Ardent, and Kindred contributing approximately **19.0%**, **6.1%**, **7.4%**, **6.7%**, and **6.6%** of total NOI, respectively, as of Q1 2024[37](index=37&type=chunk) - Kindred's option to renew the lease for 23 properties (Group 2), representing **5.3%** of total annualized NOI, was extended to May 31, 2024; the portfolio's TTM performance did not exceed the lease rent[43](index=43&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk) - Brookdale has an option to renew its master lease for 121 properties, expiring Dec 31, 2025, by providing notice between June 30, 2024, and November 30, 2024[51](index=51&type=chunk)[53](index=53&type=chunk) - In Q1 2024, the company sold **1.8 million shares** under its ATM program for gross proceeds of **$78.7 million**; an additional **0.3 million shares** were sold in April 2024 for **$14.9 million**[123](index=123&type=chunk)[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024 performance to strong SHOP segment growth, offset by increased interest expense, with robust liquidity [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Q1 2024 total NOI increased **8.2%** to **$503.9 million**, driven by **21.3%** SHOP NOI growth, but higher expenses led to a net loss NOI by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | SHOP | $203,483 | $167,771 | 21.3% | | Outpatient medical and research portfolio | $145,570 | $136,719 | 6.5% | | Triple-net leased properties | $151,630 | $145,943 | 3.9% | | **Total NOI** | **$503,884** | **$465,865** | **8.2%** | - Same-store SHOP NOI increased **15.2% YoY**, driven by a **240 basis point** increase in average occupancy to **84.6%** and a **4.7%** increase in average monthly revenue per occupied room[181](index=181&type=chunk) - Interest expense increased by **$21.9 million YoY** due to higher debt balances (average of **$13.6 billion** vs **$12.4 billion**) and a higher weighted average effective interest rate (**4.32%** vs **4.04%**)[192](index=192&type=chunk) - The company incurred **$15.7 million** in shareholder relations matters related to a proxy campaign for the 2024 annual meeting[198](index=198&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) Normalized FFO attributable to common stockholders increased to **$316.6 million** in Q1 2024, driven by higher SHOP NOI, offset by interest expenses Normalized FFO Reconciliation Summary (in thousands) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net (loss) income attributable to common stockholders | $(14,312) | $17,517 | | Nareit FFO attributable to common stockholders | $292,904 | $294,408 | | **Normalized FFO attributable to common stockholders** | **$316,573** | **$296,871** | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Ventas maintained **$3.4 billion** liquidity as of March 31, 2024, executing key capital activities including new senior notes and credit facility renewal - As of March 31, 2024, the company had **$3.4 billion** in liquidity, including availability under its revolving credit facility and cash on hand, with no commercial paper outstanding[161](index=161&type=chunk) - In February 2024, Ventas Canada issued **C$650.0 million** of **5.10%** Senior Notes due 2029, using proceeds to repay a **C$500.0 million** term loan[228](index=228&type=chunk) - In April and May 2024, the company repaid **$854.0 million** of maturing senior notes[229](index=229&type=chunk) - In April 2024, the company entered into a new amended and restated **$2.75 billion** unsecured revolving credit facility, extending the maturity to April 2028[219](index=219&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate and foreign currency risk, with **94%** of its **$13.6 billion** debt fixed-rate, limiting interest rate exposure Debt Composition as of March 31, 2024 (in thousands) | Debt Type | Balance | Percentage of Total | | :--- | :--- | :--- | | Fixed rate | $12,874,307 | 94.4% | | Variable rate | $757,706 | 5.6% | | **Total** | **$13,632,013** | **100.0%** | - A hypothetical **100 basis point** increase in the weighted average interest rate on the **$757.7 million** of variable rate debt would increase annualized interest expense by approximately **$7.6 million**[264](index=264&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2024[267](index=267&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings or significant developments in previously reported legal proceedings occurred during the quarter - No new material legal proceedings were reported, and there were no material developments in existing proceedings[271](index=271&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) No significant new risk factors were identified in Q1 2024 compared to those disclosed in the 2023 Annual Report on Form 10-K - No significant new risk factors were disclosed in Q1 2024[272](index=272&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **242,820 shares** at **$45.89** per share to satisfy tax withholding for employee restricted stock awards Issuer Purchases of Equity Securities (Q1 2024) | Period | Number of Shares Repurchased | Average Price Per Share | | :--- | :--- | :--- | | January 2024 | 53,885 | $48.54 | | February 2024 | 161,933 | $45.50 | | March 2024 | 27,002 | $42.97 | | **Total** | **242,820** | **$45.89** | - The repurchases represent shares withheld to pay taxes on the vesting of restricted stock and are not part of a publicly announced buyback plan[273](index=273&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) Two executives adopted Rule 10b5-1 trading plans in March 2024 for share sales and potential exercise/sale of expiring options - On March 11, 2024, EVP Peter J. Bulgarelli adopted a Rule 10b5-1 trading plan for the sale of up to **22,500 shares**[276](index=276&type=chunk) - On March 28, 2024, Chairman and CEO Debra A. Cafaro adopted a Rule 10b5-1 trading plan related to expiring options, covering the potential exercise and sale of up to **1,546,317 shares**[277](index=277&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including indentures, amendments to sales agreements, and officer certifications

VENTAS® Earnings Presentation First Quarter 2024 Non-GAAP Financial Measures & Cautionary Statements Non-GAAP Financial Measures This presentation includes certain financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"), such as Nareit FFO, Normalized FFO, Net Operating Income ("NOI"), Same-Store Cash NOI, Same-Store Cash NOI Margin, Same-Store Cash NOI Growth and Net Debt to Further Adjusted EBITDA. Reconciliations of these non-GAAP financial mea ...

Financial Data and Key Metrics Changes - The company reported normalized FFO per share of $0.78 for Q1 2024, representing a 5% year-over-year growth [30] - Total company same-store cash NOI grew nearly 7%, driven by a 15% increase in the SHOP segment [31][34] - The company raised its 2024 normalized FFO guidance to a range of $3.10 to $3.18 per share [14] Business Line Data and Key Metrics Changes - The SHOP portfolio experienced a same-store cash NOI growth of 15.2%, with occupancy increasing by 240 basis points year-over-year [15][19] - The outpatient medical and research segment reported same-store cash NOI growth of nearly 5% [28] - The Kindred lease for 23 LTACs, representing approximately 5% of NOI, showed stable trailing rent coverage [12] Market Data and Key Metrics Changes - The U.S. communities in the SHOP portfolio grew same-store cash NOI by 18%, while the Canadian portfolio delivered 9% year-over-year growth [19] - The occupancy rate in the Canadian portfolio is currently at 95% [19] - The over 80 population is expected to grow by 5 million individuals through 2030, while new construction starts in senior housing are at their lowest in over a decade [8] Company Strategy and Development Direction - The company’s strategy focuses on delivering organic growth in senior housing, capturing value through investments, and driving cash flow throughout the portfolio [6] - The company plans to expand its footprint in senior housing by capturing value-creating investments, having closed or placed under contract about $350 million in investments year-to-date [10][23] - The company aims to optimize its enterprise value and NOI from properties, particularly in light of the upcoming lease maturity with Kindred [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for senior housing, supported by favorable supply-demand fundamentals [8] - The company raised its full-year guidance expectations for the same-store SHOP portfolio, now expecting 12% to 16% NOI growth year-over-year [20] - Management highlighted the potential for 1,000 basis points of occupancy upside in core markets over the next few years [22] Other Important Information - The company extended the maturity of its $2.75 billion revolving credit facility to 2028 with improved pricing [32] - The company raised $650 million in 5-year Canadian senior notes at 5.1% in Q1 2024 [33] - The company expects to spend $250 million in FAD CapEx in 2024 [36] Q&A Session Summary Question: What are the assumptions regarding occupancy potential growth? - Management indicated that there is a significant upside in occupancy, with a focus on supply and demand dynamics in the senior housing sector [38][39] Question: Can you elaborate on the Kindred lease extension? - Management stated that the extension was in the best interest of all parties involved to optimize Ventas' value and NOI [43][45] Question: What is the outlook for acquisitions and funding? - Management emphasized a focus on fee simple acquisitions and highlighted the opportunity presented by existing owners facing refinancing challenges [52][54] Question: How does the company view the potential for occupancy growth? - Management noted that the structural upside for occupancy is significant, with some communities already operating at near full capacity [64] Question: What is the expected impact of the Brookdale lease? - Management indicated that the coverage for Brookdale has been improving, and they are optimistic about the potential outcomes [55][56] Question: How does the company plan to manage transitions with new operators? - Management expressed confidence in their experience with transitions and the expectation of improved performance following operator changes [98]