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Ventas Q3 FFO and Revenues Beat Estimates, Same-Store Cash NOI Rises

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Key Takeaways

  • Ventas reported Q3 normalized FFO of $0.88 per share, up 10% year over year.
  • Revenues rose 20.4% to $1.49 billion, surpassing the consensus estimate.
  • Same-store cash NOI grew 7.8%, led by 15.9% growth in the senior housing portfolio.

Ventas, Inc. (VTR - Free Report) reported third-quarter 2025 normalized funds from operations (FFO) per share of 88 cents, beating the Zacks Consensus Estimate of 87 cents. The reported figure increased 10% from the prior-year quarter’s tally.

Results reflect an increase in same-store cash net operating income (NOI) year over year, driven by strong performance in the senior housing operating portfolio (SHOP) and outpatient medical and research (OM&R) portfolio. However, triple-net leased properties’ same-store cash NOI decreased year over year. The company has increased its guidance for 2025 normalized FFO per share.

VTR recorded revenues of $1.49 billion in the third quarter, surpassing the Zacks Consensus Estimate of $1.43 billion. Also, the figure increased 20.4% on a year-over-year basis.

Per Debra A. Cafaro, chairman and CEO of Ventas, “The company intends to continue to capitalize on the multiyear growth opportunity in senior housing that is fueled by the secular megatrend of a large and growing aging population. We are excited about the opportunities ahead to create value for our stakeholders from increasing senior housing demand, record lows in supply, a high-quality senior housing portfolio with significant occupancy upside and the Company’s competitive advantages.”

VTR’s Third Quarter in Detail

In the reported quarter, same-store cash NOI for the total property portfolio (1,117 properties) increased 7.8% to $475.4 million from the prior-year quarter.

Segment-wise, the same-store cash NOI for the SHOP portfolio (520 properties) climbed 15.9% year over year to $232.4 million. Average monthly Revenues per Occupied Room (RevPOR) growth of nearly 4.7% resulted in a margin expansion of 200 basis points (bps), aiding the rise in the segment’s same-store cash NOI.

The same-store average unit occupancy expanded 270 bps year over year to 89% in the third quarter for the SHOP portfolio.

For the OM&R portfolio (402 properties), same-store cash NOI improved 3.7% year over year to $138.3 million. The uptick was backed by higher annualized average rent and revenue per occupied square foot.

However, the triple-net leased portfolio’s (195 assets) same-store cash NOI decreased 2.1% year over year to $104.7 million.

VTR’s Balance Sheet Position

Ventas ended the third quarter of 2025 with cash and cash equivalents of $188.6 million, down from $614.2 million as of June 30, 2025.

Moreover, it ended the quarter with $4.1 billion of liquidity, down from $4.7 billion as of June 30, 2025. It had a net debt to further adjusted EBITDA ratio of 5.3.

2025 Guidance by VTR

VTR has increased its 2025 normalized FFO per share in the range of $3.45-$3.48 compared with the prior guided range of $3.41-$3.46. The Zacks Consensus Estimate of $3.47 lies within the new guided range.

The total company same-store cash NOI growth is estimated to be between 7% and 8%, compared to prior guidance of 6% and 8%. The SHOP segment's same-store cash NOI is anticipated to be between 14% and 16%, compared to prior guidance of 12% and 16%.

The OM&R portfolio segment's same-store cash NOI is expected to be in the range of 2.3-2.7%, compared to prior guidance of 2.25% and 2.75%. The triple-net leased same-store cash NOI is projected between negative 0.7% and negative 0.3%, compared to prior guidance of negative 1% and negative 0.5%.

The company has increased its guidance for investment volume for the senior housing segment to $2.5 billion from the earlier guidance of $2 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 and EPS Surprise

Ventas, Inc. price-consensus-eps-surprise-chart | Ventas, Inc. Quote

 

Performance of Other Healthcare REITs

Welltower Inc.’s (WELL - Free Report) third-quarter 2025 normalized FFO per share of $1.34 surpassed the Zacks Consensus Estimate of $1.30. The reported figure improved 20.7% year over year.

Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. The company increased its guidance for 2025 normalized FFO per share.

Healthpeak Properties, Inc. (DOC - Free Report) reported third-quarter 2025 FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate of 45 cents. The figure compared favorably with the prior-year quarter’s 45 cents per share.

Results reflected better-than-expected 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.

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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