Ventas(US:VTR)2025-05-01 20:27Property Ownership and Investments - As of March 31, 2025, Ventas, Inc. owned or had investments in 1,406 properties, including 1,372 reportable segment properties and 34 non-segment properties[150]. - 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)[152]. - The investment mix by asset type as of March 31, 2025, showed senior housing communities at 68.4%, outpatient medical buildings at 19.3%, and research centers at 5.2%[217]. - The total number of communities in the SHOP segment increased to 654, with an average occupancy rate of 86.0%, compared to 82.7% in the previous year[176]. Financial Performance - For the three months ended March 31, 2025, the total net operating income (NOI) was $569.3 million, with the senior housing operating portfolio contributing $264.5 million (46.5% of total NOI)[154]. - For the three months ended March 31, 2025, total revenues increased by $2.491 million, or 1.1%, to $221.999 million compared to $219.508 million in the same period of 2024[182]. - As of March 31, 2025, the company reported a net income attributable to common stockholders of $46.9 million, a significant recovery from a net loss of $14.3 million in the same quarter of 2024[174]. - Nareit FFO attributable to common stockholders for Q1 2025 was $378,759, an increase of 29.3% from $292,904 in Q1 2024[208]. - Normalized FFO attributable to common stockholders for Q1 2025 was $376,722, up 19.0% from $316,573 in Q1 2024[208]. Segment Performance - The SHOP segment reported NOI of $264.5 million, a 30.0% increase from $203.5 million in the prior year, driven by higher occupancy and revenue per occupied room[176][177]. - The OM&R segment's NOI remained relatively stable, with a slight increase of 0.3% to $146.0 million compared to $145.6 million in 2024[174]. - The NNN segment's NOI increased by 0.6% to $152.6 million from $151.6 million in the previous year[174]. - Same-Store OM&R segment NOI increased by $2.361 million, or 1.7%, to $140.149 million for the three months ended March 31, 2025, driven by higher rental income[183]. Liquidity and Debt Management - As of March 31, 2025, Ventas had $2.9 billion in liquidity, including $2.75 billion available under its unsecured revolving credit facility[161]. - In April 2025, Ventas amended its unsecured revolving credit facility to increase borrowing capacity from $2.75 billion to $3.5 billion[161]. - The company repaid $450.0 million and $600.0 million of Senior Notes due 2025 in January and February 2025, respectively[162]. - The company had $692.8 million in unconsolidated debt related to investments in unconsolidated real estate entities as of March 31, 2025[271]. - Total debt as of March 31, 2025, was $12,793,021, a decrease from $13,618,802 as of December 31, 2024[268]. Cash Flow and Investments - Net cash provided by operating activities increased by 20.5% to $321,144 for the three months ended March 31, 2025, compared to $266,448 in 2024[258]. - Net cash used in investing activities rose significantly by $739.2 million, totaling $(883,744) for the three months ended March 31, 2025, primarily due to a $731.2 million increase in acquisitions[259]. - The company repaid $1.05 billion in senior notes, contributing to a $154.0 million increase in net cash used in financing activities during the three months ended March 31, 2025[260]. - The company expects liquidity needs for the next 12 months to be satisfied by cash flows from operations and cash on hand[224]. Dividend and Shareholder Value - Ventas aims to generate reliable and growing cash flows to pay regular cash dividends to stockholders and enhance stockholder value[156]. - The company declared a dividend of $0.48 per share during the three months ended March 31, 2025, and intends to pay dividends greater than 100% of its taxable income for 2025[251]. - The company expects cash flows to exceed its REIT taxable income due to depreciation and non-cash deductions, allowing it to meet the 90% distribution requirement[252]. Operational Efficiency - Interest expense decreased by $0.6 million for the three months ended March 31, 2025, attributed to a reduction in overall debt balance[192]. - General, administrative and professional fees increased by $4.4 million for the three months ended March 31, 2025, reflecting an expanded employee base and inflationary increases[194]. - Depreciation and amortization expense increased by $21.3 million for the three months ended March 31, 2025, primarily due to properties acquired after Q1 2024[193]. Market Outlook - The company expects senior housing to benefit from strong supply/demand fundamentals, with robust projected demand growth and low projected supply growth[157]. - The average occupancy rate for senior housing communities increased to 78.9% for the 12 months ended December 31, 2024, compared to 77.8% for the 12 months ended December 31, 2023[188].