UBS Initiates Coverage on Ventas (VTR) Citing SHOP Strength and AFFO Growth

Ventas, Inc. (NYSE:VTR) ranks among the best real estate stocks to invest in. On September 19, UBS began coverage of Ventas, Inc. (NYSE:VTR) with a $73 price target and a Neutral rating. The bank stated that the shares of the healthcare REIT were already appropriately priced into Ventas’s strong senior housing operating portfolio (SHOP), same-store net operating income, and adjusted funds from operations (AFFO) growth trajectory.

Although Ventas, Inc. (NYSE:VTR) will continue to profit from the “unprecedented senior housing backdrop,” UBS pointed out that a number of variables, including its reduced operating exposure in comparison to rivals, seem to limit additional gain.

With Ventas, Inc. (NYSE:VTR) trading at a premium next-twelve-months FFO multiple of 18x compared to its five-year average of 16x, UBS anticipates that the company’s AFFO growth would somewhat slow from 9.5% in 2025 to 8.8% in 2026.

Ventas, Inc. (NYSE:VTR) is a healthcare-focused REIT with a portfolio of roughly 1,400 properties in the United States, Canada, and the United Kingdom, comprising senior living communities, medical office buildings, and life science facilities.

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Disclosure: None. This article is originally published at Insider Monkey.