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Results reflect an increase in same-store cash net operating income (NOI) year over year on strong performance in the senior housing operating portfolio (SHOP), outpatient medical and research (OM&R) portfolio and triple-net leased properties. The company also increased its guidance for 2025 normalized FFO per share.
VTR clocked in revenues of $1.42 billion in the second quarter, surpassing the Zacks Consensus Estimate of $1.37 billion. Also, the figure increased 18.3% on a year-over-year basis.
Per Debra A. Cafaro, chairman and CEO of Ventas, “We are experiencing an unprecedented multiyear growth opportunity in senior housing driven by secular demand from a large and growing aging population, historically low new supply and an attractive product offering that is valuable to seniors. Our advantaged platform enables us to drive performance in our existing communities and make compelling investments in senior housing.”
VTR’s Second Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,158 assets) increased 6.6% to $485.3 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (506 assets) climbed 13.3% year over year to $226.1 million. Average monthly Revenues per occupied room (RevPOR) growth of nearly 5.3% resulted in a margin expansion of 130 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
The same-store average occupancy expanded 240 bps year over year to 87.6% in the second quarter for the SHOP portfolio.
For the OM&R portfolio (403 assets), same-store cash NOI improved 1.7% year over year to $135.9 million. The uptick was backed by higher annualized average rent and revenue per occupied square foot.
The triple-net leased portfolio’s (249 assets) same-store cash NOI rose 1% year over year to $123.4 million.
VTR’s Balance Sheet Position
Ventas exited the second quarter of 2025 with cash and cash equivalents of $614.2 million, up from $182.3 million as of March 31, 2025.
Moreover, it ended the quarter with $4.7 billion of liquidity, up from $2.9 billion as of Mar. 31, 2025. It had a net debt to further adjusted EBITDA ratio of 5.6.
2025 Guidance by VTR
VTR has increased its 2025 normalized FFO per share in the range of $3.41-$3.46 compared with the prior guided range of $3.36-$3.46. The Zacks Consensus Estimate of $3.45 lies within the new guided range.
The total same-store cash NOI growth is estimated to be between 6% and 8%. The SHOP segment's same-store cash NOI is anticipated to be between 12% and 16%.
The OM&R portfolio segment's same-store cash NOI is expected to be in the range of 2.25-2.75%, while the triple-net leased same-store cash NOI is projected between negative 1.0% and negative 0.5%.
The company has increased its guidance for investment volume for the senior housing segment to $2.0 billion from the earlier guidance of $1.5 billion.
Welltower Inc.’s (WELL - Free Report) second-quarter 2025 normalized FFO per share of $1.28 surpassed the Zacks Consensus Estimate of $1.22. The reported figure improved 21.9% year over year.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store NOI increased year over year, driven by same-store NOI growth in the SHOP. WELL increased its guidance for 2025 normalized FFO per share.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.
Results reflected lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. However, higher interest expenses affected DOC’s results to some extent.
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 Q2 FFO and Revenues Top Estimates, Same-Store Cash NOI Rises
Key Takeaways
Ventas, Inc. (VTR - Free Report) reported second-quarter 2025 normalized funds from operations (FFO) per share of 87 cents, beating the Zacks Consensus Estimate of 85 cents. The reported figure increased 9% from the prior-year quarter’s tally.
Results reflect an increase in same-store cash net operating income (NOI) year over year on strong performance in the senior housing operating portfolio (SHOP), outpatient medical and research (OM&R) portfolio and triple-net leased properties. The company also increased its guidance for 2025 normalized FFO per share.
VTR clocked in revenues of $1.42 billion in the second quarter, surpassing the Zacks Consensus Estimate of $1.37 billion. Also, the figure increased 18.3% on a year-over-year basis.
Per Debra A. Cafaro, chairman and CEO of Ventas, “We are experiencing an unprecedented multiyear growth opportunity in senior housing driven by secular demand from a large and growing aging population, historically low new supply and an attractive product offering that is valuable to seniors. Our advantaged platform enables us to drive performance in our existing communities and make compelling investments in senior housing.”
VTR’s Second Quarter in Detail
In the reported quarter, same-store cash NOI for the total property portfolio (1,158 assets) increased 6.6% to $485.3 million from the prior-year quarter.
Segment-wise, the same-store cash NOI for the SHOP portfolio (506 assets) climbed 13.3% year over year to $226.1 million. Average monthly Revenues per occupied room (RevPOR) growth of nearly 5.3% resulted in a margin expansion of 130 basis points (bps), aiding the rise in the segment’s same-store cash NOI.
The same-store average occupancy expanded 240 bps year over year to 87.6% in the second quarter for the SHOP portfolio.
For the OM&R portfolio (403 assets), same-store cash NOI improved 1.7% year over year to $135.9 million. The uptick was backed by higher annualized average rent and revenue per occupied square foot.
The triple-net leased portfolio’s (249 assets) same-store cash NOI rose 1% year over year to $123.4 million.
VTR’s Balance Sheet Position
Ventas exited the second quarter of 2025 with cash and cash equivalents of $614.2 million, up from $182.3 million as of March 31, 2025.
Moreover, it ended the quarter with $4.7 billion of liquidity, up from $2.9 billion as of Mar. 31, 2025. It had a net debt to further adjusted EBITDA ratio of 5.6.
2025 Guidance by VTR
VTR has increased its 2025 normalized FFO per share in the range of $3.41-$3.46 compared with the prior guided range of $3.36-$3.46. The Zacks Consensus Estimate of $3.45 lies within the new guided range.
The total same-store cash NOI growth is estimated to be between 6% and 8%. The SHOP segment's same-store cash NOI is anticipated to be between 12% and 16%.
The OM&R portfolio segment's same-store cash NOI is expected to be in the range of 2.25-2.75%, while the triple-net leased same-store cash NOI is projected between negative 1.0% and negative 0.5%.
The company has increased its guidance for investment volume for the senior housing segment to $2.0 billion from the earlier guidance of $1.5 billion.
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.
Ventas, Inc. Price, Consensus and EPS Surprise
Ventas, Inc. price-consensus-eps-surprise-chart | Ventas, Inc. Quote
Performance of Other Healthcare REITs
Welltower Inc.’s (WELL - Free Report) second-quarter 2025 normalized FFO per share of $1.28 surpassed the Zacks Consensus Estimate of $1.22. The reported figure improved 21.9% year over year.
Results reflect a rise in revenues on a year-over-year basis. The total portfolio same-store NOI increased year over year, driven by same-store NOI growth in the SHOP. WELL increased its guidance for 2025 normalized FFO per share.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.
Results reflected lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) NOI was witnessed across the portfolio. However, higher interest expenses affected DOC’s results to some extent.
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.