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Why Is Ventas (VTR) Up 7.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Ventas (VTR - Free Report) . Shares have added about 7.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ventas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Ventas’ Q3 FFO & Revenues Top Estimates, Same-Store Cash NOI Rises

Ventas reported third-quarter 2025 normalized 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 reflected an increase in same-store cash NOI year over year, driven by strong performance in the SHOP and 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.

Ventas 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.

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.

Balance Sheet Position

Ventas exited 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

Ventas 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 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Ventas has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ventas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Ventas is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, W.P. Carey (WPC - Free Report) , a stock from the same industry, has gained 3.3%. The company reported its results for the quarter ended September 2025 more than a month ago.

W.P. Carey reported revenues of $429.02 million in the last reported quarter, representing a year-over-year change of +8%. EPS of $0.64 for the same period compares with $1.18 a year ago.

For the current quarter, W.P. Carey is expected to post earnings of $1.25 per share, indicating a change of +3.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

W.P. Carey has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.


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