We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ventas (VTR) Q2 FFO Beats Estimates on Higher Same-Store NOI
Read MoreHide Full Article
Ventas, Inc. (VTR - Free Report) 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 billion. Also, the figure increased by 8.6% on a year-over-year basis.
Per Debra A. Cafaro, the chairman and CEO of Ventas, “We started 2024 with momentum, which continued in the second quarter as we delivered another quarter of strong results. We are executing on our focused strategy to capture the unprecedented multiyear growth opportunity in senior housing."
Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,080 assets) increased 7.8% to $443.2 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (477 assets) climbed 15.2% year over year to $189.6 million. Higher occupancy of 85.6% compared to 82.4% recorded for the year-ago quarter and revenue per occupied room (RevPOR) growth of 3.9% resulted in a margin expansion of 170 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
For the outpatient medical and research portfolio (337 assets), same-store cash NOI improved 3.3% year over year to $124.1 million, while the cash NOI margin of 67.6% decreased by 30 bps over the same period.
The triple-net leased portfolio’s (266 assets) same-store cash NOI rose 2.6% year over year to $129.4 million.
Portfolio Activity
From the start of the year to Aug 1, 2024, VTR has made investments worth $350 million focused on senior housing. The company plans to make an additional investment of around $400 million.
Balance Sheet Position
Ventas exited the second quarter of 2024 with cash and cash equivalents of $557.1 million, down from $632.4 million as of Mar 31, 2024.
Moreover, it ended the quarter with $3.3 billion of liquidity and a net debt to further adjusted EBITDA ratio of 6.4, improving by 0.3 quarter over quarter.
2024 Outlook
Ventas improved its guidance for 2024.
It now expects 2024 normalized FFO per share in the range of $3.12-$3.18, revised from $3.10-$3.18 guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $3.16, which lies within the guided range.
The total same-store cash NOI growth is now estimated between 6.5% and 8%, upfrom 6%-8% projected earlier. The SHOP segment's same-store cash NOI is now anticipated between 13% and 16%, upfrom the prior guidance of 12-16%.
The Outpatient Medical and Research Portfolio segment's same-store cash NOI is now expected in the range of 2.75-3.25%, upfrom the prior range of 2.50-3.25%, and the estimation for triple-net leased same-store cash NOI is between 1.5-2% compared with 1.25-2% guided earlier.
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2024 FFO per share of $1.77 exceeded the Zacks Consensus Estimate of $1.72. However, the reported figure declined 4.8% year over year.
BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter acted as a dampener. The company also raised its guidance for 2024 FFO per share. BXP currently carries a Zacks Rank #3.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflected better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. The company also revised its 2024 outlook. DOC currently carries a Zacks Rank #4 (Sell).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ventas (VTR) Q2 FFO Beats Estimates on Higher Same-Store NOI
Ventas, Inc. (VTR - Free Report) 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 billion. Also, the figure increased by 8.6% on a year-over-year basis.
Per Debra A. Cafaro, the chairman and CEO of Ventas, “We started 2024 with momentum, which continued in the second quarter as we delivered another quarter of strong results. We are executing on our focused strategy to capture the unprecedented multiyear growth opportunity in senior housing."
Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,080 assets) increased 7.8% to $443.2 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (477 assets) climbed 15.2% year over year to $189.6 million. Higher occupancy of 85.6% compared to 82.4% recorded for the year-ago quarter and revenue per occupied room (RevPOR) growth of 3.9% resulted in a margin expansion of 170 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
For the outpatient medical and research portfolio (337 assets), same-store cash NOI improved 3.3% year over year to $124.1 million, while the cash NOI margin of 67.6% decreased by 30 bps over the same period.
The triple-net leased portfolio’s (266 assets) same-store cash NOI rose 2.6% year over year to $129.4 million.
Portfolio Activity
From the start of the year to Aug 1, 2024, VTR has made investments worth $350 million focused on senior housing. The company plans to make an additional investment of around $400 million.
Balance Sheet Position
Ventas exited the second quarter of 2024 with cash and cash equivalents of $557.1 million, down from $632.4 million as of Mar 31, 2024.
Moreover, it ended the quarter with $3.3 billion of liquidity and a net debt to further adjusted EBITDA ratio of 6.4, improving by 0.3 quarter over quarter.
2024 Outlook
Ventas improved its guidance for 2024.
It now expects 2024 normalized FFO per share in the range of $3.12-$3.18, revised from $3.10-$3.18 guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $3.16, which lies within the guided range.
The total same-store cash NOI growth is now estimated between 6.5% and 8%, upfrom 6%-8% projected earlier. The SHOP segment's same-store cash NOI is now anticipated between 13% and 16%, upfrom the prior guidance of 12-16%.
The Outpatient Medical and Research Portfolio segment's same-store cash NOI is now expected in the range of 2.75-3.25%, upfrom the prior range of 2.50-3.25%, and the estimation for triple-net leased same-store cash NOI is between 1.5-2% compared with 1.25-2% guided earlier.
Ventas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ventas, Inc. Price, Consensus and EPS Surprise
Ventas, Inc. price-consensus-eps-surprise-chart | Ventas, Inc. Quote
Performance of Other REITs
Boston Properties Inc.’s (BXP - Free Report) second-quarter 2024 FFO per share of $1.77 exceeded the Zacks Consensus Estimate of $1.72. However, the reported figure declined 4.8% year over year.
BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter acted as a dampener. The company also raised its guidance for 2024 FFO per share. BXP currently carries a Zacks Rank #3.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.
Results reflected better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. The company also revised its 2024 outlook. DOC currently carries a Zacks Rank #4 (Sell).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.