Ventas Q1 FFO and Revenues Top Estimates, Same-Store Cash NOI Rises

Ventas, Inc. VTR reported first-quarter 2025 normalized funds from operations (FFO) per share of 84 cents, beating the Zacks Consensus Estimate of 82 cents. The reported figure increased 7.7% from the prior-year quarter’s tally.

Results reflect an increase in same-store cash net operating income (NOI), led by higher investments and improved same-store average occupancy in the Senior Housing Operating Portfolio (“SHOP”).

VTR clocked in revenues of $1.36 billion in the first quarter, surpassing the Zacks Consensus Estimate of $1.30 billion. Also, the figure increased 13.2% on a year-over-year basis. The company has raised its investment volume guidance for SHOP segment.

Per Debra A. Cafaro, chairman and CEO of Ventas, “Ventas delivered a strong first quarter of 2025, as we executed on our strategy to capitalize on the unprecedented multiyear growth opportunity in senior housing. We drove double-digit growth in our senior housing operating portfolio (SHOP), which powered our first quarter results.”

VTR’s First Quarter in Detail

In the reported quarter, same-store cash NOI for the total property portfolio (1,207 assets) increased 7.1% to $485.4 million from the prior-year quarter.

Segment-wise, the same-store cash NOI for the SHOP portfolio (527 assets) climbed 13.6% year over year to $220.5 million. Revenues per occupied room (RevPOR) growth of nearly 3.8% resulted in a margin expansion of 150 basis points (bps), aiding the rise in the segment’s same-store cash NOI.

The same-store average occupancy expanded 290 bps year over year to 87% in the first quarter for the SHOP portfolio.

For the outpatient medical and research portfolio (416 assets), same-store cash NOI improved 1.3% year over year to $137.3 million. The uptick was backed by higher annualized average rent and revenue per occupied square foot.

The triple-net leased portfolio’s (264 assets) same-store cash NOI rose 3.2% year over year to $127.6 million.

VTR’s Balance Sheet Position

Ventas exited the first quarter of 2025 with cash and cash equivalents of $182.3 million, down from $897.9 million as of Dec. 31, 2024.

Moreover, it ended the quarter with $2.9 billion of liquidity, down from $3.82 billion as of Dec. 31, 2024. It had a net debt to further adjusted EBITDA ratio of 5.7.

2025 Guidance by VTR

VTR has reaffirmed its previous projection for 2025 normalized FFO per share in the range of $3.35-$3.46, with the midpoint at $3.41. The Zacks Consensus Estimate of $3.44 lies within the guided range.

The total same-store cash NOI growth is estimated to be between 5.5% and 8%. The SHOP segment's same-store cash NOI is anticipated to be between 11% and 16%.

The Outpatient Medical and Research Portfolio segment's same-store cash NOI is expected to be in the range of 2-3%, while the triple-net leased same-store cash NOI is projected between -1.5% and -0.5%.

The company has increased its guidance for investment volume for the senior housing segment to $1.5 billion from the earlier guidance of $1 billion.

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 Healthcare REITs

Welltower Inc.’s WELL first-quarter 2025 FFO per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15. The reported figure improved 18.8% year over year.

Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the seniors housing operating (SHO) portfolio. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Healthpeak Properties, Inc. DOC reported a first-quarter 2025 FFO as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. This compares favorably to the FFO of 45 cents reported in the prior year.

Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income (NOI) was witnessed across the portfolio. However, higher interest expenses affected the results to some extent.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research