Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Ventas (VTR) - Ventas currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, Ventas shares increased by 1.59%, while the Zacks REIT and Equity Trust - Other industry declined by 0.63% [5] - In a longer timeframe, Ventas shares rose by 14.76% over the past month, significantly outperforming the industry's 2.09% [5] - Over the last three months, shares have increased by 18.73%, and over the past year, they are up 24.08%, compared to the S&P 500's gains of 5.68% and 14.42%, respectively [6] Trading Volume - The average 20-day trading volume for Ventas is 3,396,452 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, four earnings estimates for Ventas have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $3.46 to $3.48 [9] - For the next fiscal year, three estimates have also moved upwards, with no downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, Ventas is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a compelling option for investors seeking growth [11]

REIT Sector Performance - The REIT sector experienced a decline of -4.03% in October, resulting in a year-to-date return of -4.69% for the average REIT, significantly underperforming the broader market indices such as NASDAQ (+4.7%), Dow Jones (+2.6%), and S&P 500 (+2.3%) [1] - The Vanguard Real Estate ETF (VNQ) had a less severe decline of -2.45% in October but has outperformed year-to-date with a return of +2.98% [1] - The spread between the 2026 FFO multiples of large cap REITs (16x) and small cap REITs (12.7x) widened, indicating that investors are paying 26% more for each dollar of FFO from large cap REITs compared to small cap REITs [1] Property Type Performance - In October, micro cap REITs led the sector with the smallest average decline of -2.81%, followed by mid caps (-3.11%), large caps (-4.45%), and small caps (-5.05%) [3] - 14 out of 18 property types averaged negative returns in October, with only 22.22% of property types achieving a positive total return [5] - Office properties had the worst performance at -12.74%, while Hotels (+3.82%) and Data Centers (+2.53%) were the best performers [5][6] Year-to-Date Performance - Year-to-date through October 2025, Office properties (-16.87%), Single Family Housing (-14.94%), and Land (-14.91%) have underperformed, while Health Care (+19.74%) has significantly outperformed [7] - The average P/FFO for the REIT sector declined from 14.1x to 13.5x during October, with 22.2% of property types experiencing multiple expansion [8] Individual Securities - Sotherly Hotels (SOHO) saw a significant increase of +165.00% on October 27th due to an acquisition announcement, with shareholders set to receive $2.25/share, a 152.7% premium [10] - Office Properties Income Trust (OPI) faced a dramatic decline of -88.76% ahead of its delisting and subsequently filed for Chapter 11 bankruptcy, with a year-to-date return of -96.15% [11] Dividend Yield - High dividend yields are a key attraction for investors in the REIT sector, with many REITs trading below their NAV, leading to attractive yields despite potential risks [15]

Core Insights - Ventas (VTR) shares have increased by 16.2% over the past three months, significantly outperforming the industry growth of 1.5% [1] - The company is well-positioned to benefit from rising healthcare spending and an aging population, particularly in its senior housing operating portfolio [1][5] - Ventas reported third-quarter 2025 normalized funds from operations (FFO) per share of 88 cents, exceeding the Zacks Consensus Estimate of 87 cents, marking a 10% increase from the previous year [2][3] Financial Performance - The increase in same-store cash net operating income (NOI) year over year was driven by strong performance in both the senior housing operating portfolio (SHOP) and outpatient medical and research (OM&R) portfolio [3][6] - Ventas has raised its guidance for 2025 normalized FFO per share, with the Zacks Consensus Estimate revised to $3.47 [3] - In the third quarter of 2025, Ventas achieved a 15.9% year-over-year growth in same-store cash NOI within the SHOP portfolio [6][8] Market Dynamics - The U.S. population aged 80 years and above is projected to grow by 28% over the next five years, leading to increased demand for senior housing [5] - Ventas is focusing on markets with favorable demographics, strong net absorption, and affordability, which supports healthy occupancy levels [6] Strategic Initiatives - The company is executing accretive investments to enhance its research portfolio, which is vital for healthcare services and research related to life-saving vaccines and therapeutics [8] - Ventas is following a disciplined capital-recycling strategy, selling non-core assets and reinvesting in premium acquisitions, which improves its financial position [9][10] - In the third quarter of 2025, Ventas sold properties in its OM&R segment for $9.8 million and senior housing communities from its SHOP segment for $68.1 million, while acquiring 20 senior housing communities for $1.1 billion [9] Financial Health - As of September 30, 2025, Ventas had approximately $4.1 billion in liquidity, with improved net debt to further adjusted EBITDA ratio of 5.3X [10] - The company’s access to diverse capital sources provides financial flexibility to support growth initiatives [10]

Core Insights - Ventas, Inc. is a leading real estate investment trust focused on senior housing, with a market cap of $35.2 billion, aiming to deliver strong shareholder returns by catering to the aging population [1] Performance Overview - Ventas has significantly outperformed the broader market, with stock prices increasing by 18.6% over the past 52 weeks and 27.3% year-to-date, compared to the S&P 500 Index's gains of 13.4% and 14.3% respectively [2] - The company has also outperformed the iShares Core U.S. REIT ETF, which saw a marginal increase of 35 basis points in 2025 and a 3.7% decline over the past 52 weeks [3] Financial Results - Following the release of robust Q3 results on October 29, Ventas' stock prices surged by 6.6%. The company reported broad-based demand growth across its senior housing operating portfolio, leading to a $2.2 billion investment in acquisitions during the first three quarters of 2025, expected to boost revenues [4] - In Q3, same-store cash operating revenues grew by 8% year-over-year, contributing to a total revenue increase of 20.4% to $1.5 billion, surpassing consensus estimates by 3.9% [4] - Ventas also reported solid growth in same-store net operating income (NOI) and aggregate NOI, with normalized funds from operations (NFFO) per share increasing by 10% year-over-year to $0.88, beating expectations by 1.2% [5] Future Projections - For the full fiscal year 2025, analysts project an NFFO of $3.46 per share, reflecting an 8.5% year-over-year increase. The company has a strong history of surpassing cash flow estimates, achieving this in each of the past four quarters [6] - Among 22 analysts covering Ventas, the consensus rating is a "Strong Buy," supported by 15 "Strong Buys," two "Moderate Buys," and five "Holds" [6]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Property Ownership and Segments - As of September 30, 2025, Ventas, Inc. owned or had investments in 1,406 properties, including 1,371 reportable segment properties and 35 non-segment properties[163]. - Ventas operates through three reportable business segments: senior housing operating portfolio (SHOP), outpatient medical and research portfolio (OM&R), and triple-net leased properties (NNN)[165]. - The investment mix by asset type as of September 30, 2025, showed senior housing communities at 68.9%, outpatient medical buildings at 18.3%, and research centers at 5.5%[259]. - Total communities increased to 714 in Q3 2025 from 591 in Q3 2024, with average unit occupancy rising to 87.9% from 85.3%[196]. - The company plans to sell or convert 56 properties leased to Brookdale, with 13 properties converted to the SHOP segment during the quarter ended September 30, 2025[260]. Financial Performance - Total Net Operating Income (NOI) for the nine months ended September 30, 2025, was $1,772,310, with the senior housing operating portfolio contributing $853,212 (48.1%), outpatient medical and research portfolio contributing $440,273 (24.8%), and triple-net leased properties contributing $458,360 (25.9%)[167]. - For the nine months ended September 30, 2025, total Net Operating Income (NOI) increased by $240.9 million, or 15.7%, to $1.77 billion compared to $1.53 billion in 2024[221]. - The SHOP segment's NOI rose by $221.5 million, or 35.1%, to $853.2 million, driven by a 24.8% increase in resident fees and services[222]. - For the three months ended September 30, 2025, net income attributable to common stockholders was $66,047 thousand, compared to $19,243 thousand for the same period in 2024, representing a significant increase[253]. - The company reported a net income attributable to common stockholders of $181.2 million for the nine months ended September 30, 2025, compared to $24.3 million in 2024, reflecting a significant increase of $156.9 million[221]. Cash Flow and Liquidity - As of September 30, 2025, the company had $4.1 billion in liquidity, including $3.5 billion available under its unsecured revolving credit facility[176]. - Cash flows from operating activities increased by $219.1 million to $1.175 billion for the nine months ended September 30, 2025, primarily due to growth in the company's SHOP business[301]. - The company expects liquidity needs for the next 12 months to be satisfied through cash flows from operations and other financing sources[266]. - The company has a $3.5 billion unsecured revolving credit facility with no borrowings outstanding as of September 30, 2025[269]. - The company established an at-the-market offering program with a total gross sales price of up to $2.25 billion as of June 2025, with $1.3 billion remaining available for future sales as of September 30, 2025[287][288]. Debt and Interest Rates - As of September 30, 2025, total consolidated debt amounted to $12.66 billion, a decrease from $13.62 billion as of December 31, 2024[312]. - Fixed rate debt represented 90.2% of total debt as of September 30, 2025, compared to 94.2% as of December 31, 2024[318]. - The weighted average interest rate for fixed rate debt was 4.3% as of September 30, 2025, slightly up from 4.2% as of December 31, 2024[318]. - The company’s variable rate debt increased to $1.23 billion as of September 30, 2025, primarily due to the maturity of a $400 million variable to fixed interest rate swap[313]. - A hypothetical 100 basis point increase in the weighted average interest rate would result in an annualized interest expense increase of approximately $12.3 million[315]. Expenses and Taxation - Interest expense increased by $7.7 million in Q3 2025, with a weighted average effective interest rate of 4.59%[210]. - General, administrative and professional fees increased by $5.3 million in Q3 2025, reflecting an expanded employee base and inflation[212]. - The income tax benefit for the three months ended September 30, 2025, was $6.3 million, primarily due to the reversal of valuation allowances against net deferred tax assets[219]. - The income tax benefit for the nine months ended September 30, 2025, was $13.0 million, primarily due to the reversal of valuation allowances against net deferred tax assets[245]. Growth Strategy and Market Conditions - The company aims to generate reliable and growing cash flows to pay regular cash dividends to stockholders and enhance stockholder value[171]. - Ventas focuses on delivering profitable organic growth in senior housing and capturing value-creating external growth in the same sector[170]. - The company expects senior housing to benefit from strong supply/demand fundamentals, with robust projected demand growth and low projected supply growth[172]. - Ventas's performance is influenced by broader macroeconomic factors, including consumer sentiment, interest rates, inflation, and GDP growth[172]. - The company has commitments to develop properties funded through capital from itself and joint venture partners, focusing on maximizing value and maintaining a competitive position[296].

Core Insights - Ventas, Inc. (VTR) reported third-quarter 2025 normalized funds from operations (FFO) per share of 88 cents, exceeding the Zacks Consensus Estimate of 87 cents, marking a 10% increase from the prior-year quarter [1][8] - The company recorded revenues of $1.49 billion, surpassing the Zacks Consensus Estimate of $1.43 billion, and reflecting a year-over-year increase of 20.4% [3][8] - Ventas has increased its guidance for 2025 normalized FFO per share to a range of $3.45-$3.48, compared to the previous range of $3.41-$3.46 [8][9] Financial Performance - Same-store cash net operating income (NOI) for the total property portfolio increased by 7.8% year over year to $475.4 million [5][8] - The senior housing operating portfolio (SHOP) saw a significant increase in same-store cash NOI, climbing 15.9% year over year to $232.4 million, supported by a 4.7% growth in average monthly revenues per occupied room [5][6] - The outpatient medical and research (OM&R) portfolio's same-store cash NOI improved by 3.7% year over year to $138.3 million, while the triple-net leased properties' same-store cash NOI decreased by 2.1% year over year to $104.7 million [6][8] Strategic Outlook - The company aims to capitalize on the growth opportunities in senior housing, driven by an aging population and low supply levels, with expectations of increasing demand and occupancy rates [4][8] - Ventas has increased its investment volume guidance for the senior housing segment to $2.5 billion from the earlier guidance of $2 billion [9] Balance Sheet Position - As of the end of the third quarter, Ventas had cash and cash equivalents of $188.6 million, down from $614.2 million as of June 30, 2025, and total liquidity of $4.1 billion, down from $4.7 billion [7][8]

Financial Data and Key Metrics Changes - The company reported normalized FFO per share of $0.88 for Q3 2025, representing a 10% year-over-year increase [28] - Total company same store cash NOI increased by 8%, driven by a 16% growth in SHOP [28][11] - The company expects year-over-year growth of 9% in normalized FFO per share and 7.5% total company same store cash NOI at the midpoint of improved guidance [12][31] Business Line Data and Key Metrics Changes - The SHOP same store portfolio delivered 16% NOI growth year-over-year, with U.S. communities leading at 19% growth [17] - The Outpatient Medical and Research (OMAR) business reported same store cash NOI growth of 3.7% year-over-year, with outpatient medical occupancy improving to 90.6% [28] - The research business, representing 8% of NOI, saw a decrease in same store cash NOI due to lower rents on certain tenants [28] Market Data and Key Metrics Changes - The U.S. senior housing market is experiencing strong demand, with the over-80 population expected to grow by 28% over the next five years, while supply remains at record lows [10] - The company has closed $2.2 billion in senior housing acquisitions year-to-date, with a robust pipeline of investment opportunities [25] Company Strategy and Development Direction - The company is focused on expanding its private pay senior housing business, with a goal of closing $2.5 billion in investments during 2025 [8][12] - The strategy emphasizes organic growth in the SHOP business and leveraging favorable demographic trends in senior housing [9][10] - The company has transitioned 27 of 45 senior housing communities from triple net to SHOP, expecting significant occupancy and NOI upside [13][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on the growing demand for senior housing, with a strong focus on enhancing the SHOP portfolio [9][16] - The company anticipates continued strong performance in the fourth quarter, driven by robust demand and occupancy growth [57] - Management highlighted the importance of maintaining strong relationships with operators to ensure high-quality service delivery [20] Other Important Information - The company has improved its leverage, with a net debt to EBITDA ratio of 5.3 times, reflecting a full turn improvement from the previous year [29] - The company has over $4 billion in liquidity, supporting growth and financial flexibility [30] Q&A Session Summary Question: Can you discuss the underwriting criteria and potential for lower initial yield requirements? - Management indicated a willingness to be ambitious in growing the senior housing business and is open to acquiring properties with higher growth potential, even if initial yields are lower [34][36] Question: What is the target leverage and how does the company weigh equity and debt for growth? - Management confirmed a strategy of organic growth combined with equity-funded investments, emphasizing the importance of investing in the best assets [39][40] Question: Can you provide updates on the Brookdale SHOP transitions and the planned CapEx? - Management detailed that the transitions are progressing well, with a focus on routine refreshes and minimal disruption to current results [44][46] Question: How does the company view the potential for margin expansion as occupancy increases? - Management noted that as occupancy exceeds 90%, incremental margins could increase significantly, driven by operating leverage and pricing power [48][49] Question: What is the company's strategy regarding potential expansion into the U.K.? - Management stated that while the U.K. is of interest, the primary focus remains on expanding the private pay senior housing business in the U.S. [60] Question: How does the company assess new operator relationships and their fit within the Ventas platform? - Management emphasized the importance of strong operator relationships and the ability to leverage data and analytics to drive performance [118]

Financial Data and Key Metrics Changes - The company reported normalized FFO per share of $0.88 for Q3 2025, representing a 10% year-over-year increase [28] - Total company same store cash NOI increased by 8%, driven by a 16% growth in SHOP [28] - The company expects a year-over-year growth of 9% in normalized FFO per share and 7.5% in total company same store cash NOI at the midpoint of the improved guidance [12][31] Business Line Data and Key Metrics Changes - The SHOP segment achieved a same store cash NOI growth of 16% year-over-year, with U.S. communities leading at 19% growth [17][28] - The Outpatient Medical and Research (OMAR) business reported same store cash NOI growth of 3.7% year-over-year, with outpatient medical occupancy improving to 90.6% [28] - The research business, which represents 8% of the company's NOI, saw a decrease in same store cash NOI by $400,000 year-over-year due to lower rents on certain tenants [28] Market Data and Key Metrics Changes - The U.S. SHOP portfolio is currently 85% occupied, with significant upside potential for occupancy growth [20][23] - The over-80 population is expected to grow by 28% over the next five years, indicating strong demand for senior housing [10] - Senior housing supply is at record lows, with only 1,200 new units started in Q3 2025 [10] Company Strategy and Development Direction - The company is focused on growing its private pay senior housing operating portfolio and anticipates closing $2.5 billion in investments during 2025 [8][12] - The strategy emphasizes organic growth in the SHOP business and capitalizing on favorable demographic trends in senior housing [8][9] - The company has transitioned 27 of 45 senior housing communities from triple net to SHOP, expecting significant occupancy and NOI upside [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on the growing demand for senior housing, with a strong pipeline of investment opportunities [9][12] - The company anticipates continued strong performance in the SHOP segment, with expectations for occupancy growth and improved pricing power [17][18] - Management highlighted the importance of maintaining strong relationships with operators to ensure quality care and performance [20] Other Important Information - The company has raised its total company same store cash NOI growth guidance by 50 basis points to 7.5% year-over-year [31] - The net debt to EBITDA ratio improved to 5.3 times, reflecting a full turn improvement from the previous year [29] - The company has over $4 billion in liquidity as of September 30, supporting growth and financial flexibility [29] Q&A Session Summary Question: Can you discuss the underwriting criteria for acquisitions? - Management indicated that they are ambitious in growing the senior housing business and are open to acquiring properties with lower initial yields if they offer higher growth potential [34][36] Question: What is the target leverage and how do you weigh equity and debt for growth? - Management confirmed a strategy of organic growth plus equity-funded investments, with a focus on investing in the best assets [39][40] Question: Can you provide updates on the Brookdale SHOP transitions? - Management reported that the transitions are progressing well, with a focus on routine refreshes and minimal disruption to current results [44][46] Question: How is the independent living pool performing? - Management noted strong occupancy growth in independent living, particularly in former Holiday communities, contributing positively to overall performance [105][106] Question: What is the outlook for external growth in senior housing? - Management expressed confidence in the ability to continue external growth, citing a strong investment pipeline and favorable market conditions [91][92]