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.

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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.

2025 Guidance by VTR

It projects 2025 normalized FFO per share in the range of $3.35-$3.46, with the midpoint at $3.41. The Zacks Consensus Estimate of $3.39 lies within the guided range.

The total same-store cash NOI growth is estimated to be between 5.5% and 8%. The SHOP segment's same-store cash NOI is anticipated to be between 11% and 16%.

The Outpatient Medical and Research Portfolio segment's same-store cash NOI is expected to be in the range of 2-3%, while the triple-net leased same-store cash NOI is projected between -1.5% and -0.5%.

VTR’s Dividend Raise

Concurrent with its fourth-quarter earnings release, VTR declared its first-quarter 2025 dividend of 48 cents per share, an increase of 6.7% over the prior quarter’s dividend payment. The new dividend will be paid out on April 17 to shareholders on record as of March 31, 2025.

VTR’s Zacks Rank

Ventas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Healthcare REITs

Welltower Inc.’s WELL fourth-quarter 2024 FFO per share of $1.13 outpaced the Zacks Consensus Estimate by a penny. The reported figure improved 17.7% year over year.

Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income increased year over year, driven by SSNOI growth in the SHOP. WELL issued its guidance for 2025.

Healthpeak Properties, Inc. DOC reported a fourth-quarter 2024 FFO as adjusted per share of 46 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. Growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. DOC issued its 2025 guidance.

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.

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