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Ventas, Inc. (VTR - Free Report) reported fourth-quarter 2023 normalized funds from operations (FFO) per share of 76 cents, in line with the Zacks Consensus Estimate. The reported figure increased 4.1% from the prior-year quarter’s tally.
Results reflect better-than-anticipated revenues. Also, Ventas’ same-store cash net operating income (NOI) increased year over year on strong performance across the portfolio.
VTR clocked in revenues of $1.16 billion in the fourth quarter, surpassing the Zacks Consensus Estimate of $1.15 billion. Also, the figure increased 10.7% on a year-over-year basis.
Per Debra A. Cafaro, chairman and CEO of Ventas, “We expect unprecedented demand for senior housing in 2024 and subsequent years because of the rapidly growing senior population and the value our communities provide to residents and their families. We are focused on leveraging our differentiated platform to drive continued organic SHOP performance and investing in senior housing to expand our participation in the compelling multiyear growth opportunity that is underway."
In 2023, Ventas reported a normalized FFO per share of $2.99, which remained unchanged from the prior year’s number. Moreover, the reported figure met the Zacks Consensus Estimate. Total revenues of $4.50 billion improved 8.9% year over year and beat the consensus mark of $4.48 billion.
Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,092 assets) increased 6.6% to $416.7 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (463 assets) climbed 15% year over year to $163.5 million, led by the U.S. communities. Revenues per occupied room (RevPOR) growth of nearly 5% resulted in a margin expansion of 180 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
The same-store average occupancy expanded 170 bps year over year to 84.9% in the fourth quarter for the SHOP portfolio.
For the outpatient medical and research portfolio (339 assets), same-store cash NOI improved 2.4% year over year to $125.6 million. The uptick was backed by continued strong performance in the outpatient medical portfolio that witnessed same-store cash NOI growth of more than 2%.
The triple-net leased portfolio’s (290 assets) same-store cash NOI rose 1.4% year over year to $127.6 million.
Balance Sheet Position
Ventas exited fourth-quarter 2023 with cash and cash equivalents of $508.8 million, up from $433.9 million as of Sep 30, 2023.
Moreover, it ended the quarter with $3.23 billion of liquidity and a net debt to further adjusted EBITDA ratio of 6.9.
2024 Outlook
It projects 2024 normalized FFO per share in the range of $3.07-$3.18. This is lower than the Zacks Consensus Estimate of $3.21.
The total same-store cash NOI growth is estimated to be between 5% and 7.5%. The SHOP segment's same-store cash NOI is anticipated to be between 10% and 15%.
The Outpatient Medical and Research Portfolio segment's same-store cash NOI is expected in the range of 2.25-3.25%, while the triple-net leased same-store cash NOI is projected in the band of 1-2%.
Healthpeak Properties, Inc. reported fourth-quarter 2023 FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a whisker. The reported figure rose 4.5% year over year.
Results reflected better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) net operating income was witnessed across the portfolio. The company also issued its 2024 outlook.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2023 FFO per share of $1.82 outpaced the Zacks Consensus Estimate by a penny. However, the reported figure fell 2.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also issued its guidance for 2024 FFO per share.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% year over year.
Results reflected lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supported the results to some extent. ARE also issued its 2024 outlook.
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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Ventas' (VTR) Q4 FFO Meets Estimates, Revenues Rise Y/Y
Ventas, Inc. (VTR - Free Report) reported fourth-quarter 2023 normalized funds from operations (FFO) per share of 76 cents, in line with the Zacks Consensus Estimate. The reported figure increased 4.1% from the prior-year quarter’s tally.
Results reflect better-than-anticipated revenues. Also, Ventas’ same-store cash net operating income (NOI) increased year over year on strong performance across the portfolio.
VTR clocked in revenues of $1.16 billion in the fourth quarter, surpassing the Zacks Consensus Estimate of $1.15 billion. Also, the figure increased 10.7% on a year-over-year basis.
Per Debra A. Cafaro, chairman and CEO of Ventas, “We expect unprecedented demand for senior housing in 2024 and subsequent years because of the rapidly growing senior population and the value our communities provide to residents and their families. We are focused on leveraging our differentiated platform to drive continued organic SHOP performance and investing in senior housing to expand our participation in the compelling multiyear growth opportunity that is underway."
In 2023, Ventas reported a normalized FFO per share of $2.99, which remained unchanged from the prior year’s number. Moreover, the reported figure met the Zacks Consensus Estimate. Total revenues of $4.50 billion improved 8.9% year over year and beat the consensus mark of $4.48 billion.
Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,092 assets) increased 6.6% to $416.7 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (463 assets) climbed 15% year over year to $163.5 million, led by the U.S. communities. Revenues per occupied room (RevPOR) growth of nearly 5% resulted in a margin expansion of 180 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
The same-store average occupancy expanded 170 bps year over year to 84.9% in the fourth quarter for the SHOP portfolio.
For the outpatient medical and research portfolio (339 assets), same-store cash NOI improved 2.4% year over year to $125.6 million. The uptick was backed by continued strong performance in the outpatient medical portfolio that witnessed same-store cash NOI growth of more than 2%.
The triple-net leased portfolio’s (290 assets) same-store cash NOI rose 1.4% year over year to $127.6 million.
Balance Sheet Position
Ventas exited fourth-quarter 2023 with cash and cash equivalents of $508.8 million, up from $433.9 million as of Sep 30, 2023.
Moreover, it ended the quarter with $3.23 billion of liquidity and a net debt to further adjusted EBITDA ratio of 6.9.
2024 Outlook
It projects 2024 normalized FFO per share in the range of $3.07-$3.18. This is lower than the Zacks Consensus Estimate of $3.21.
The total same-store cash NOI growth is estimated to be between 5% and 7.5%. The SHOP segment's same-store cash NOI is anticipated to be between 10% and 15%.
The Outpatient Medical and Research Portfolio segment's same-store cash NOI is expected in the range of 2.25-3.25%, while the triple-net leased same-store cash NOI is projected in the band of 1-2%.
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
Healthpeak Properties, Inc. reported fourth-quarter 2023 FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a whisker. The reported figure rose 4.5% year over year.
Results reflected better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) net operating income was witnessed across the portfolio. The company also issued its 2024 outlook.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2023 FFO per share of $1.82 outpaced the Zacks Consensus Estimate by a penny. However, the reported figure fell 2.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also issued its guidance for 2024 FFO per share.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% year over year.
Results reflected lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supported the results to some extent. ARE also issued its 2024 outlook.
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.