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What's in the Offing for Ventas Stock This Earnings Season?

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Key Takeaways

  • Ventas is set to report Q3 2026 results Oct. 27, with revenues seen rising 18.3% and FFO per share 11.4%.
  • Senior housing occupancy and long-term leases are expected to support rental revenues and quarterly growth.
  • Triple-net rental income is projected to fall to $125.2M, while high interest expenses may weigh on results.

Ventas, Inc. (VTR - Free Report) is scheduled to report third-quarter 2026 results on Oct. 27, after market close. The quarterly results are likely to show year-over-year growth in revenues and normalized funds from operations (FFO) per share.

In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 97 cents, beating the Zacks Consensus Estimate by a cent. The quarterly results reflected a year-over-year increase in same-store cash net operating income, driven by strong performance in the senior housing operating portfolio (SHOP) and outpatient medical research (OM&R) portfolio.

Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in three of the preceding four quarters and met once, with the average beat being 1.37%. The graph below depicts this surprising history:

Ventas, Inc. Price and EPS Surprise

Ventas, Inc. Price and EPS Surprise

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

 

Factors at Play for VTR

In the third quarter of 2026, Ventas’ SHOP is likely to have benefited from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is generally higher than that of the average population. With the segment witnessing positive net move-ins, occupancy is expected to have remained high.

A well-diversified tenant base with long-term leases is expected to have contributed well to stable rental revenue generation, boosting the top line.

However, the triple-net leased properties are likely to have been affected during the to-be-reported quarter. Further, high interest expenses are expected to have cast a pall on the company’s performance to some extent.

VTR’s Q3 Projections

The Zacks Consensus Estimate for third-quarter 2026 revenues is currently pegged at $1.76 billion, implying an 18.3% increase from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for third-quarter resident fees and services is pegged at $1.39 billion, suggesting an increase from $1.09 billion reported in the year-ago period.

The consensus mark for OM&R portfolio rental income for the third quarter is pegged at $229.5 million, indicating an increase from $226.2 million reported in the year-ago period.

However, the Zacks Consensus Estimate for third-quarter triple-net leased properties' rental income is pegged at $125.2 million, suggesting a decrease from $160.1 million reported in the year-ago period.

Ventas’ activities during the soon-to-be-reported quarter have been inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for third-quarter FFO per share has decreased a cent to 98 cents over the past week. However, the figure implies an increase of 11.4% from the year-ago quarter’s reported number.

What Our Quantitative Model Predicts for VTR

Our proven model predicts a likely surprise in terms of FFO per share for Ventas this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

Ventas currently has an Earnings ESP of +0.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and American Healthcare REIT (AHR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

BXP, which is scheduled to report third-quarter 2026 results on Oct. 27, has an Earnings ESP of +0.04% and a Zacks Rank #3 at present.

American Healthcare REIT is slated to report third-quarter 2026 results on Nov. 5. AHR has an Earnings ESP of +0.60% and a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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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