We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Revenues came in at $1.66 billion, up 22% year over year and above the Zacks Consensus Estimate of $1.54 billion by 4.58%. Results were powered by the senior housing operating portfolio (SHOP), while the company ended the quarter with $5.5 billion of liquidity.
VTR’s Revenue Mix Shift Drove the Q1 Upside
A key theme in the quarter was the mix shift toward senior housing revenue. Resident fees and services rose to $1.29 billion from $968.9 million a year ago, reflecting a 33.4% year-over-year jump and driving most of the topline expansion.
In contrast, rental income from triple-net leased properties declined 21.2% year over year to $123.1 million. Rental income from the outpatient medical and research (OM&R) portfolio grew 4% year over year to $230.1 million, providing incremental support alongside the expansion in resident fees.
VTR’s SHOP Operations Showed Strong Demand Trends
Within SHOP, same-store operating metrics pointed to improving demand and pricing. Same-store average unit occupancy increased 310 basis points (bps) year over year to 90.4%, while average monthly Revenues per Occupied Room (RevPOR) grew 5% to $5,512.
Revenue growth was paired with manageable cost pressure. Same-store SHOP operating expenses increased 5.8% year over year to $616.9 million, while management fees rose 9.9% to $51 million. The combined effect was an expansion in same-store cash net operating income (NOI) margin to 30.0%, up 170 bps year over year.
VTR’s Same-Store Cash NOI Increased Across Segments
At the total company level, same-store cash NOI increased 8.7% year over year to $543.1 million, supported by gains in each major segment. SHOP same-store cash NOI increased 15.4% to $286.9 million, remaining the major contributor to growth.
The OM&R portfolio also posted improvement, with same-store cash NOI rising 2.4% year over year to $141.4 million. The triple-net leased portfolio showed modest growth, with same-store cash NOI up 1.6% year over year to $114.9 million.
VTR Maintained Balance Sheet Capacity for Growth
Ventas exited the quarter with net debt to further adjusted EBITDA of 5.0x, reflecting continued balance-sheet improvement alongside growth in SHOP NOI and equity-funded senior housing investments. The company reported $5.5 billion of liquidity as of March 31, 2026, supporting Ventas’s growth and financial flexibility.
Funding actions during the quarter were meaningful. Ventas settled 10.6 million shares under equity forward sales agreements for net proceeds of $0.8 billion, and noted $1.6 billion of unsettled equity forward sales agreements outstanding, bringing total equity capital raised toward expected 2026 investment activity to $2.4 billion. Cash and cash equivalents were $183.6 million at quarter-end.
VTR Raises 2026 Guidance and Steps Up Investment Plan
Management lifted its 2026 outlook following the strong start to the year. Normalized FFO per share guidance was raised to a range of $3.82-$3.89, with the midpoint increased to $3.86 from $3.83 previously. The Zacks Consensus Estimate of $3.85 lies within the guided range.
Ventas increased its 2026 senior housing investment volume expectation to $3 billion from $2.5 billion.
The increase in the company’s guidance is primarily the result of higher property performance led by SHOP and accretion from investment activity, partly offset by market expectations for higher interest rates.
SL Green Realty Corp. (SLG - Free Report) delivered first-quarter 2026 FFO per share of 84 cents, down 40% from $1.40 in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.06.
Net rental revenues came in at $166 million, up 14.9% year over year and ahead of the Zacks Consensus Estimate of $163 million. The revenue beat arrived alongside record first-quarter leasing volume across SLG’s Manhattan office portfolio.
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core FFO per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. Results were supported by robust leasing activity.
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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Ventas Q1 FFO & Revenues Beat Estimates on Strong SHOP Results
Key Takeaways
Ventas, Inc. (VTR - Free Report) delivered first-quarter 2026 normalized funds from operations (FFO) per share of 94 cents, beating the Zacks Consensus Estimate of 91 cents by 3.3%. The metric increased 9.3% from 86 cents in the prior-year quarter.
Revenues came in at $1.66 billion, up 22% year over year and above the Zacks Consensus Estimate of $1.54 billion by 4.58%. Results were powered by the senior housing operating portfolio (SHOP), while the company ended the quarter with $5.5 billion of liquidity.
VTR’s Revenue Mix Shift Drove the Q1 Upside
A key theme in the quarter was the mix shift toward senior housing revenue. Resident fees and services rose to $1.29 billion from $968.9 million a year ago, reflecting a 33.4% year-over-year jump and driving most of the topline expansion.
In contrast, rental income from triple-net leased properties declined 21.2% year over year to $123.1 million. Rental income from the outpatient medical and research (OM&R) portfolio grew 4% year over year to $230.1 million, providing incremental support alongside the expansion in resident fees.
VTR’s SHOP Operations Showed Strong Demand Trends
Within SHOP, same-store operating metrics pointed to improving demand and pricing. Same-store average unit occupancy increased 310 basis points (bps) year over year to 90.4%, while average monthly Revenues per Occupied Room (RevPOR) grew 5% to $5,512.
Revenue growth was paired with manageable cost pressure. Same-store SHOP operating expenses increased 5.8% year over year to $616.9 million, while management fees rose 9.9% to $51 million. The combined effect was an expansion in same-store cash net operating income (NOI) margin to 30.0%, up 170 bps year over year.
VTR’s Same-Store Cash NOI Increased Across Segments
At the total company level, same-store cash NOI increased 8.7% year over year to $543.1 million, supported by gains in each major segment. SHOP same-store cash NOI increased 15.4% to $286.9 million, remaining the major contributor to growth.
The OM&R portfolio also posted improvement, with same-store cash NOI rising 2.4% year over year to $141.4 million. The triple-net leased portfolio showed modest growth, with same-store cash NOI up 1.6% year over year to $114.9 million.
VTR Maintained Balance Sheet Capacity for Growth
Ventas exited the quarter with net debt to further adjusted EBITDA of 5.0x, reflecting continued balance-sheet improvement alongside growth in SHOP NOI and equity-funded senior housing investments. The company reported $5.5 billion of liquidity as of March 31, 2026, supporting Ventas’s growth and financial flexibility.
Funding actions during the quarter were meaningful. Ventas settled 10.6 million shares under equity forward sales agreements for net proceeds of $0.8 billion, and noted $1.6 billion of unsettled equity forward sales agreements outstanding, bringing total equity capital raised toward expected 2026 investment activity to $2.4 billion. Cash and cash equivalents were $183.6 million at quarter-end.
VTR Raises 2026 Guidance and Steps Up Investment Plan
Management lifted its 2026 outlook following the strong start to the year. Normalized FFO per share guidance was raised to a range of $3.82-$3.89, with the midpoint increased to $3.86 from $3.83 previously. The Zacks Consensus Estimate of $3.85 lies within the guided range.
Ventas increased its 2026 senior housing investment volume expectation to $3 billion from $2.5 billion.
The increase in the company’s guidance is primarily the result of higher property performance led by SHOP and accretion from investment activity, partly offset by market expectations for higher interest rates.
VTR’s Zacks Rank
Ventas currently carries a Zacks Rank #2 (Buy). 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
SL Green Realty Corp. (SLG - Free Report) delivered first-quarter 2026 FFO per share of 84 cents, down 40% from $1.40 in the year-ago quarter. The figure missed the Zacks Consensus Estimate of $1.06.
Net rental revenues came in at $166 million, up 14.9% year over year and ahead of the Zacks Consensus Estimate of $163 million. The revenue beat arrived alongside record first-quarter leasing volume across SLG’s Manhattan office portfolio.
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core FFO per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. Results were supported by robust leasing activity.
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.