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Key Reasons to Add Ventas Stock to Your Portfolio Right Now
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Key Takeaways
VTR's diversified healthcare portfolio is positioned to benefit from rising spending and aging demographics.
Accretive investments and expanding OM&R operations support portfolio growth and stronger same-store cash NOI.
Ventas' liquidity and improved leverage underscore financial strength as senior housing performance advances.
Ventas, Inc.’s (VTR - Free Report) diverse portfolio of healthcare real estate assets is well-poised to capitalize on rising healthcare spending and an aging population. Also, accretive investments in the research portfolio and a solid balance sheet bode well.
Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for VTR’s 2025 funds from operations (FFO) per share has moved marginally northward over the past month to $2.48.
Shares of this healthcare REIT have gained 11.9% over the past three months against the industry's decline of 1.5%. Given the strength of its fundamentals, there seems to be additional room for this stock’s growth.
Image Source: Zacks Investment Research
Factors That Make Ventas Stock a Solid Pick
Favorable Industry Dynamics: The senior citizen population is expected to rise in the years ahead. As a result, the national healthcare expenditure among senior citizens, who constitute a major customer base for healthcare services and incur higher healthcare expenditures than the average population, is likely to increase in the upcoming period. Ventas is still in the early innings of this multiyear growth opportunity in senior housing, as the 80+ aged population is surging, and construction starts have fallen to historic lows.
Focus on OM&R Portfolio: Amid growing outpatient trends, Ventas is committed to capitalizing on this upside within its outpatient medical and research (OM&R) portfolio, which includes outpatient medical buildings and research centers. The growth in the population of people aged 65 years and above is driving the increase in outpatient visits, as they make three times more visits to the doctor than the general population. From 2020 to 2030, the 65+ population is expected to grow approximately 30%.
VTR’s Accretive Investments: Ventas is carrying out accretive investments to enhance its research portfolio, which is essential for the delivery of crucial healthcare services and research related to life-saving vaccines and therapeutics. The company owns research centers in life science clusters, with a presence in some of the top-tier research university campuses.
With top-rated tenants and long-term leases, its high-quality portfolio assures steady growth in cash flows. In the OM&R portfolio, Ventas generated 3.7% same-store cash NOI growth in the third quarter of 2025. Ventas expects the OM&R portfolio's same-store cash NOI to grow in the range of 2.3-2.7% in 2025.
Balance Sheet Strength: Ventas maintains a healthy balance sheet position. The company has been making efforts to enhance its liquidity position and financial strength. As of Sept. 30, 2025, the company had approximately $4.1 billion of liquidity. In the third quarter of 2025, its net debt to further adjusted EBITDA improved to 5.3X from 6.3X at the prior-year quarter end. Management expects continued leverage improvement in the balance of this year, driven by senior housing growth.
Image: Bigstock
Key Reasons to Add Ventas Stock to Your Portfolio Right Now
Key Takeaways
Ventas, Inc.’s (VTR - Free Report) diverse portfolio of healthcare real estate assets is well-poised to capitalize on rising healthcare spending and an aging population. Also, accretive investments in the research portfolio and a solid balance sheet bode well.
Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for VTR’s 2025 funds from operations (FFO) per share has moved marginally northward over the past month to $2.48.
Shares of this healthcare REIT have gained 11.9% over the past three months against the industry's decline of 1.5%. Given the strength of its fundamentals, there seems to be additional room for this stock’s growth.
Image Source: Zacks Investment Research
Factors That Make Ventas Stock a Solid Pick
Favorable Industry Dynamics: The senior citizen population is expected to rise in the years ahead. As a result, the national healthcare expenditure among senior citizens, who constitute a major customer base for healthcare services and incur higher healthcare expenditures than the average population, is likely to increase in the upcoming period. Ventas is still in the early innings of this multiyear growth opportunity in senior housing, as the 80+ aged population is surging, and construction starts have fallen to historic lows.
Focus on OM&R Portfolio: Amid growing outpatient trends, Ventas is committed to capitalizing on this upside within its outpatient medical and research (OM&R) portfolio, which includes outpatient medical buildings and research centers. The growth in the population of people aged 65 years and above is driving the increase in outpatient visits, as they make three times more visits to the doctor than the general population. From 2020 to 2030, the 65+ population is expected to grow approximately 30%.
VTR’s Accretive Investments: Ventas is carrying out accretive investments to enhance its research portfolio, which is essential for the delivery of crucial healthcare services and research related to life-saving vaccines and therapeutics. The company owns research centers in life science clusters, with a presence in some of the top-tier research university campuses.
With top-rated tenants and long-term leases, its high-quality portfolio assures steady growth in cash flows. In the OM&R portfolio, Ventas generated 3.7% same-store cash NOI growth in the third quarter of 2025. Ventas expects the OM&R portfolio's same-store cash NOI to grow in the range of 2.3-2.7% in 2025.
Balance Sheet Strength: Ventas maintains a healthy balance sheet position. The company has been making efforts to enhance its liquidity position and financial strength. As of Sept. 30, 2025, the company had approximately $4.1 billion of liquidity. In the third quarter of 2025, its net debt to further adjusted EBITDA improved to 5.3X from 6.3X at the prior-year quarter end. Management expects continued leverage improvement in the balance of this year, driven by senior housing growth.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Digital Realty Trust (DLR - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cousins Properties’ 2025 FFO per share is pegged at $2.84, which indicates year-over-year growth of 5.6%.
The Zacks Consensus Estimate for DLR’s full-year FFO per share stands at $7.35, which implies an increase of 9.5% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.