This quarterly report represents an FFO surprise of +2.35%. A quarter ago, it was expected that this seniors housing real estate investment trust would post FFO of $0.82 per share when it actually produced FFO of $0.84, delivering a surprise of +2.44%. Over the last four quarters, the company has surpassed consensus FFO estimates three times. Ventas, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $1.42 billion for the quarter ended June 2025, surpassing the Zacks Conse ...

[Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Ventas reported strong second-quarter 2025 results, driven by significant growth in its Senior Housing Operating Portfolio (SHOP), achieving a **9%** year-over-year increase in Normalized FFO per share to **$0.87** and a **13%** growth in SHOP Same-Store Cash NOI, leading to improved full-year guidance - CEO Debra A. Cafaro highlighted an "unprecedented multiyear growth opportunity in senior housing" driven by secular demand, historically low new supply, and an attractive product offering[3](index=3&type=chunk) Q2 2025 Key Financial Metrics (YoY) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Attributable Net Income per share | $0.15 | +200% | | Normalized FFO per share | $0.87 | +9% | | Total Company Same-Store Cash NOI | N/A | +7% | | SHOP Same-Store Cash NOI | N/A | +13% | - Year to date, the company closed **$1.1 billion** in senior housing investments and settled **16.4 million shares** for gross proceeds of **$1.1 billion**, with **$0.7 billion** of unsettled equity forward sales agreements remaining[7](index=7&type=chunk) [Financial and Operating Results](index=2&type=section&id=Financial%20and%20Operating%20Results) The company's strong Q2 performance was characterized by robust growth in its Senior Housing Operating Portfolio (SHOP), with a **13%** increase in Same-Store Cash NOI, expanded senior housing investments to a **$2 billion** target, and an improved balance sheet with a reduced Net Debt-to-Adjusted EBITDA ratio of **5.6x** [Company-Level Financial Results](index=2&type=section&id=Company-Level%20Financial%20Results) Ventas demonstrated significant earnings growth in Q2 2025, with Attributable Net Income per share increasing by **200%** to **$0.15** and Normalized FFO per share growing by **9%** to **$0.87** year-over-year Q2 2025 Per Share Results vs. Q2 2024 | Metric | Q2 2025 ($/share) | Q2 2024 ($/share) | $ Change ($/share) | % Change | | :--- | :--- | :--- | :--- | :--- | | Attributable Net Income | $0.15 | $0.05 | $0.10 | 200% | | Nareit FFO* | $0.86 | $0.77 | $0.09 | 12% | | Normalized FFO* | $0.87 | $0.80 | $0.07 | 9% | [Senior Housing Operating Portfolio (SHOP) Performance](index=2&type=section&id=Senior%20Housing%20Operating%20Portfolio%20(SHOP)%20Performance) The SHOP segment was a key growth driver, with Same-Store Cash NOI increasing **13%** year-over-year, fueled by an **8%** rise in cash operating revenue, a **5%** increase in Revenue per Occupied Room, and a **240 basis point** improvement in average occupancy - SHOP Same-Store Cash NOI grew **13%** YoY, or **15%** YoY excluding a prior-year property tax refund[9](index=9&type=chunk) - Robust resident demand was observed, with accelerating average occupancy growth intra-quarter and strong net move-ins in June[10](index=10&type=chunk) [External Growth and Investment Strategy](index=2&type=section&id=External%20Growth%20and%20Investment%20Strategy) Ventas is actively pursuing external growth focused on senior housing, having closed **$1.1 billion** in investments year-to-date and increasing its full-year 2025 investment volume expectation from **$1.5 billion** to **$2.0 billion** - The company increased its 2025 investment volume expectation to **$2 billion**, up from the previous estimate of **$1.5 billion**[11](index=11&type=chunk) [Financial Position and Liquidity](index=2&type=section&id=Financial%20Position%20and%20Liquidity) The company strengthened its financial position, improving its Net Debt-to-Further Adjusted EBITDA ratio to **5.6x**, a **0.4x** reduction from year-end 2024, and maintained substantial financial flexibility with **$4.7 billion** in liquidity as of June 30, 2025 - Net Debt-to-Further Adjusted EBITDA ratio improved to **5.6x**, down **0.4x** from year-end 2024, driven by SHOP growth and equity-funded investments[12](index=12&type=chunk) - Total liquidity stood at **$4.7 billion**, including availability under its revolving credit facility, cash, and unsettled equity forward sales agreements[13](index=13&type=chunk) [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) Ventas raised its full-year 2025 guidance, increasing the midpoint for Normalized FFO per share from **$3.41** to **$3.44**, reflecting strong SHOP segment performance and increased accretive investment activity, with the total investment target for 2025 raised to **$2.0 billion** Updated Full Year 2025 Per Share Guidance (as of 7/30/2025) | Metric | Previous Guidance (5/28/25) ($/share) | Updated Guidance (7/30/25) ($/share) | | :--- | :--- | :--- | | Attributable Net Income Range | $0.43 - $0.53 | $0.47 - $0.52 | | Nareit FFO Range* | $3.28 - $3.38 | $3.38 - $3.43 | | Normalized FFO Range* | $3.36 - $3.46 | $3.41 - $3.46 | | Normalized FFO Midpoint* | $3.41 | $3.44 | - The guidance increase is primarily driven by NOI growth in the SHOP segment and accretive senior housing investments, partially offset by higher net interest expense[16](index=16&type=chunk) - The guidance now includes the completion of **$2.0 billion** in 2025 investments, an increase from the prior assumption of **$1.5 billion**[16](index=16&type=chunk)[42](index=42&type=chunk)[45](index=45&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position and performance, showing total assets of **$26.5 billion** and total liabilities of **$14.6 billion** as of June 30, 2025, with Q2 total revenues increasing to **$1.42 billion** and net income attributable to common stockholders rising to **$68.3 million** [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Ventas reported total assets of **$26.47 billion**, a slight increase from year-end 2024, with total liabilities decreasing to **$14.55 billion** and total equity increasing to **$11.59 billion** Balance Sheet Summary (in thousands) | Account | June 30, 2025 ($ thousands) | Dec 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Total Assets | $26,474,929 | $26,186,906 | | Total Liabilities | $14,553,769 | $15,047,081 | | Total Equity | $11,592,461 | $10,829,596 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, Ventas generated total revenues of **$1.42 billion**, up from **$1.20 billion** in the prior-year period, with net income attributable to common stockholders reaching **$68.3 million**, or **$0.15** per diluted share Q2 2025 Income Statement Highlights (in thousands) | Account | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | | :--- | :--- | :--- | | Total Revenues | $1,420,893 | $1,200,980 | | Total Expenses | $1,378,235 | $1,220,064 | | Net Income | $71,462 | $21,168 | | Net Income Attributable to Common Stockholders | $68,264 | $19,387 | [Non-GAAP Financial Measures and Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides detailed reconciliations of non-GAAP measures like Funds From Operations (FFO), Net Operating Income (NOI), and Adjusted EBITDA to their GAAP counterparts, offering supplemental views on the company's operating performance, property-level results, and credit strength [Funds From Operations (FFO) Reconciliation](index=12&type=section&id=Funds%20From%20Operations%20(FFO)%20Reconciliation) For Q2 2025, Ventas reconciled Net Income Attributable to Common Stockholders of **$68.3 million** to Nareit FFO of **$395.3 million** and Normalized FFO of **$400.1 million**, with Normalized FFO per share at **$0.87**, a **9%** increase year-over-year Q2 2025 FFO Reconciliation (in thousands, except per share) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | | :--- | :--- | :--- | | Net Income Attributable to Common Stockholders | $68,264 | $19,387 | | Nareit FFO | $395,343 | $317,192 | | Normalized FFO | $400,143 | $329,119 | | Normalized FFO per share | $0.87 | $0.80 | [Full Year 2025 Guidance Reconciliation](index=14&type=section&id=Full%20Year%202025%20Guidance%20Reconciliation) The company provides a reconciliation for its updated 2025 guidance, projecting a Normalized FFO per share range of **$3.41** to **$3.46**, based on **$2.0 billion** in senior housing investments, **~$200 million** in disposition proceeds, and a full-year weighted average diluted share count of **461 million** FY 2025 Guidance Reconciliation (Per Share) | Metric | Low ($/share) | High ($/share) | | :--- | :--- | :--- | | Net income attributable to common stockholders | $0.47 | $0.52 | | Nareit FFO attributable to common stockholders | $3.38 | $3.43 | | Normalized FFO attributable to common stockholders | $3.41 | $3.46 | - Updated guidance assumptions include increased senior housing investment volume to **$2.0 billion** and a slightly higher weighted average share count of **461 million**[42](index=42&type=chunk) [Same-Store Cash NOI Reconciliation](index=16&type=section&id=Same-Store%20Cash%20NOI%20Reconciliation) In Q2 2025, Total Same-Store Cash NOI was **$485.3 million**, a **6.6%** increase year-over-year, led by the SHOP segment's **13.3%** increase to **$226.1 million**, with OM&R and NNN segments growing by **1.7%** and **1.0%** respectively Q2 2025 Same-Store Cash NOI Growth by Segment (YoY) | Segment | Q2 2025 Same-Store Cash NOI ($ thousands) | % Increase | | :--- | :--- | :--- | | SHOP | $226,068 | 13.3% | | OM&R | $135,912 | 1.7% | | NNN | $123,368 | 1.0% | | **Total** | **$485,348** | **6.6%** | [Adjusted EBITDA and Net Debt Reconciliation](index=18&type=section&id=Adjusted%20EBITDA%20and%20Net%20Debt%20Reconciliation) The company's Net Debt to Further Adjusted EBITDA ratio improved sequentially and from year-end 2024, standing at **5.6x** for Q2 2025, compared to **5.7x** in the prior quarter and **6.0x** at year-end 2024, indicating a strengthening credit profile Net Debt / Further Adjusted EBITDA Trend | Quarter Ended | Ratio (x) | | :--- | :--- | | June 30, 2025 | 5.6x | | March 31, 2025 | 5.7x | | December 31, 2024 | 6.0x | [Definitions of Non-GAAP Measures](index=19&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section provides the company's specific definitions for key non-GAAP financial measures such as Adjusted EBITDA, Further Adjusted EBITDA, NOI, Cash NOI, Same-Store, and Constant Currency, crucial for understanding supplemental performance metrics - The company defines NOI as total revenues less property-level operating expenses, third-party capital management expenses, and interest and other income[53](index=53&type=chunk) - Same-store properties are defined as those owned, consolidated, and operational for the full period in both comparison periods, with specific stabilization criteria for newly developed or acquired assets[55](index=55&type=chunk)[56](index=56&type=chunk) [About Ventas and Forward-Looking Statements](index=3&type=section&id=About%20Ventas%20and%20Forward-Looking%20Statements) Ventas is an S&P 500 REIT with approximately **1,400 properties** focused on senior housing, medical buildings, and research centers, with the report including cautionary statements on forward-looking information and outlining risk factors like regulatory changes and macroeconomic conditions - Ventas is a leading S&P 500 REIT with a portfolio of approximately **1,400 properties** in North America and the United Kingdom, focusing on the senior housing and healthcare sectors[20](index=20&type=chunk) - The press release contains forward-looking statements subject to various risks and uncertainties, and the company does not undertake a duty to update them[25](index=25&type=chunk)[26](index=26&type=chunk) - Key risk factors include exposure to governmental regulations, macroeconomic conditions like inflation and interest rates, reliance on third-party managers, and the financial condition of tenants and borrowers[27](index=27&type=chunk)[28](index=28&type=chunk)

Core Insights - Wall Street analysts expect Ventas (VTR) to report quarterly earnings of $0.85 per share, reflecting a year-over-year increase of 6.3% [1] - Revenues are projected to be $1.37 billion, which represents a 14.3% increase from the same quarter last year [1] - The consensus EPS estimate has been revised upward by 0.7% over the past 30 days, indicating a collective reassessment by analysts [1] Revenue Estimates - Analysts estimate 'Revenues- Rental income- Outpatient medical & research portfolio' to be $222.56 million, showing a 1.7% increase from the prior year [4] - 'Revenues- Interest and other income' is expected to be $2.98 million, indicating a significant decrease of 38.2% from the previous year [4] - 'Revenues- Resident fees and services' are projected to reach $977.05 million, reflecting a 19.5% increase year-over-year [5] - 'Revenues- Rental income- Triple-net leased' is estimated at $153.51 million, showing a slight decrease of 0.3% from the year-ago quarter [5] - 'Revenues- Third party capital management revenues' are expected to be $4.38 million, indicating a 1.1% increase from the prior year [6] Other Financial Metrics - Depreciation and amortization is projected to reach $319.33 million [6] - Ventas shares have increased by 3.3% over the past month, compared to a 3.6% increase in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Insights - Ventas (VTR) shares have increased by 11.6% over the past six months, outperforming the industry growth of 6% [1][8] - The company is positioned to benefit from its diverse healthcare real estate portfolio, particularly in the U.S. and U.K., driven by an aging population and increased healthcare spending by seniors [1][4] Company Performance - The senior housing operating portfolio (SHOP) is expected to see significant growth, with same-store cash NOI projected to increase between 11% and 16% by 2025 [4] - The outpatient medical portfolio is anticipated to benefit from favorable trends in outpatient visits, with the population aged 65 and above making three times more visits to doctors than the general population [5] Growth Opportunities - Ventas is making accretive investments to enhance its research portfolio, which is crucial for healthcare services and life-saving research [6] - The company has a liquidity position of $3.6 billion, bolstered by an expanded unsecured credit facility, which supports its growth initiatives [9] Market Trends - The increasing senior citizen population and low new supply in Ventas' markets present a compelling multiyear growth opportunity for the company [4] - The company expects its outpatient medical and research (OM&R) portfolio's same-store cash NOI to grow by 2-3% in 2025 [5]

Group 1 - Ventas, Inc. (NYSE: VTR) is a real estate investment trust (REIT) focused on the health care sector within the real estate industry [1] - The company is positioned to benefit from the aging population and increasing demand for health care facilities [1] - The investment thesis is bullish, indicating a positive outlook for the company's financial performance and stock price appreciation [1] Group 2 - The article emphasizes the importance of having both long-term and short-term trading strategies for individual investors [1] - The author aims to develop winning trades and improve investment results through focused analysis and feedback [1]

Group 1: Zacks Premium and Style Scores Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [2][3] Group 2: Style Scores Categories - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow for sustainable growth [4] - The Momentum Score helps investors capitalize on price trends by assessing one-week price changes and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] Group 4: Stock Highlight - Ventas, Inc. - Ventas, Inc. is a healthcare REIT with investments in 1,406 properties across North America and the U.K. as of March 31, 2025 [11] - Currently rated 3 (Hold) with a VGM Score of B, Ventas has a Momentum Style Score of A, and its shares have increased by 0.6% over the past four weeks [12] - The Zacks Consensus Estimate for Ventas' earnings has risen by $0.02 to $3.45 per share, with an average earnings surprise of 1.2% [12]

Company Overview - Ventas (VTR) is headquartered in Chicago and operates in the Finance sector, with a year-to-date stock price change of 7.23% [3] - The company currently pays a dividend of $0.48 per share, resulting in a dividend yield of 3.04%, which is lower than the REIT and Equity Trust - Other industry's yield of 4.96% and the S&P 500's yield of 1.57% [3] Dividend Analysis - Ventas has an annualized dividend of $1.92, reflecting a 6.7% increase from the previous year [4] - Over the last five years, the company has increased its dividend once on a year-over-year basis, with an average annual increase of 0.37% [4] - The current payout ratio for Ventas is 59%, indicating that the company paid out 59% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Ventas's earnings per share for 2025 is $3.44, which represents a year-over-year earnings growth rate of 7.84% [5] Investment Considerations - Dividends are favored by investors for various reasons, including tax advantages and risk reduction in portfolios [6] - High-yielding stocks may face challenges during periods of rising interest rates, but Ventas is considered a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]

分组1: Ventas Inc. (VTR) - JPMorgan analyst upgraded Ventas Inc. from Neutral to Overweight and raised the price target to $72 from $70, citing robust internal and external growth, including double-digit same-store net operating income gains and steady acquisitions [1] - Ventas is viewed as more attractively valued compared to peer Welltower, particularly on an implied cap rate basis, despite slightly lower growth potential [2] - The price target increase reflects improved growth visibility, based on a dividend discount model with a 5.25% long-term growth rate and a 95% AFFO payout ratio [3][7] 分组2: Americold Realty Trust Inc. (COLD) - Americold Realty Trust was downgraded from Overweight to Neutral, with a price target cut to $21 from $24 due to weaker throughput volumes and lower occupancy rates [3][4] - The downgrade reflects lower earnings estimates and a higher 11.5% discount rate in the DCF model, indicating increased uncertainty and tempered growth expectations [4] 分组3: Federal Realty Investment Trust (FRT) - Federal Realty Investment Trust was downgraded from Overweight to Neutral, with a price target set at $108, attributed to a reduced focus on development and redevelopment projects [5][6] - Investors are cautious about FRT's strategy of entering new markets by divesting high-quality assets, which may take time to show operational benefits [6][7] 分组4: Lineage Inc. (LINE) - Lineage Inc. was downgraded from Neutral to Underweight, with a price target lowered to $50 from $55, due to a broader preference for other REIT sectors despite the long-term merits of the Lineage platform [7][8] - The cold storage segment is facing lower throughput volumes, impacting occupancy and pricing, with the 2025 AFFO per share outlook falling below management guidance [8]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Investment Rating - The report assigns an "In-Line" industry view for North American REITs [4] Core Insights - Apartment REITs are experiencing fundamental tailwinds with declining deliveries and solid job growth, although there are concerns about potential peaking of new lease rates [2] - Senior housing has shown strong demand, with companies like WELL and AHR actively pursuing acquisitions [6][10] - Industrial fundamentals are better than expected, with a notable slowdown in construction starts, which may serve as a tailwind [11] - Retail leasing remains robust, with capital deployment being a key differentiator among companies [6][39] - The healthcare sector is seeing strong demand in senior housing, with significant acquisition activity reported [10][57] Apartment REITs - AvalonBay Communities reported a +2.3% year-over-year effective rent change for April and May, with occupancy improving to 96.3% [21] - Camden Property Trust is actively recycling capital and has made recent acquisitions [21] - Essex Property Trust noted that job postings are near historical averages, indicating growth potential [22] Senior Housing - Senior housing demand is robust, with occupancy growth exceeding expectations [10][57] - WELL announced $6.2 billion in acquisitions and loan funding through April [57] Industrial - Prologis and EastGroup Properties reported better-than-expected fundamentals, with a focus on occupancy over pricing [11][48] - Construction starts have decreased by 50% from pre-COVID levels, which may benefit the sector [11] Retail - Simon Property Group noted solid leasing activity despite tariff uncertainties [39] - Kimco Realty reported strong leasing activity and has raised guidance due to better-than-expected bad debt collection [39] Healthcare - The healthcare sector is seeing strong demand in senior housing, with AHR acquiring a 187-unit property for $65 million [57] - Ventas raised its 2025 normalized FFO per share guidance by 7% year-over-year [57] Single Family Rentals - American Homes 4 Rent reported a 4.3% growth in new leases for May, with a strong development pipeline [30] - Invitation Homes launched a developer lending program expected to generate $200-300 million annually [31] Storage - Public Storage and Extra Space Storage are experiencing mixed results, with occupancy gains but soft rental rates [32][34] - National Storage Affiliates is targeting positive same-store revenue growth by year-end [36] Office - Highwoods Properties is on track to meet leasing targets, with a strong pipeline of new and renewal prospects [61] - Paramount Group is exploring joint venture opportunities to enhance its portfolio [62] Triple Net REITs - Agree Realty is focusing on recession-resistant retailers and has implemented AI to streamline operations [64] - Realty Income maintains a strong balance sheet and is expanding its European presence [69]