In This Article:
Ventas, Inc. VTR reported fourth-quarter 2024 normalized funds from operations (FFO) per share of 81 cents, beating the Zacks Consensus Estimate by a penny. The reported figure increased 6.6% from the prior-year quarter’s tally.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Results reflect an increase in same-store cash net operating income (NOI), led by higher Senior Housing Operating Portfolio (“SHOP”) same-store average occupancy. The company issued its guidance for 2025.
VTR clocked in revenues of $1.29 billion in the fourth quarter, surpassing the Zacks Consensus Estimate of $1.26 billion. Also, the figure increased by 10.5% on a year-over-year basis.
Per Debra A. Cafaro, chairman and CEO of Ventas, “Our team delivered the third consecutive year of double-digit growth in our senior housing operating portfolio (SHOP) and completed over two billion dollars of accretive investments focused on senior housing that enhance our growth profile,”
In 2024, Ventas reported a normalized FFO per share of $3.19, rising 6.7% year over year. Moreover, the reported figure beat the Zacks Consensus Estimate marginally. Total revenues of $4.92 billion improved 9.5% year over year and beat the consensus mark of $4.90 billion.
Ventas, Inc. Price, Consensus and EPS Surprise
Ventas, Inc. price-consensus-eps-surprise-chart | Ventas, Inc. Quote
VTR’s Fourth Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,227 assets) increased 8.4% to $476.1 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (525 assets) climbed 16.9% year over year to $207.1 million. Revenues per occupied room (RevPOR) growth of nearly 4.4% resulted in a margin expansion of 190 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
The same-store average occupancy expanded 310 bps year over year to 87.4% in the fourth quarter for the SHOP portfolio.
For the outpatient medical and research portfolio (416 assets), same-store cash NOI improved 2.1% year over year to $134.9 million. The uptick was backed by higher annualized average rent and revenue per occupied square foot.
The triple-net leased portfolio’s (286 assets) same-store cash NOI rose 3.4% year over year to $134 million.
VTR’s Balance Sheet Position
Ventas exited the fourth quarter of 2024 with cash and cash equivalents of $897.9 million, down from $1.10 billion as of Sept. 30, 2024.
Moreover, it ended the quarter with $3.82 billion of liquidity, down from $4.04 billion as of Sept. 30, 2024. It had a net debt to further adjusted EBITDA ratio of 6.0.