FX.co ★ Ventas Q2 Revenue Climbs; Lifts Outlook

Ventas, Inc. (VTR), a prominent real estate investment trust, has reported an uptick in revenue for the second quarter.

For the three months ending June 30, the company recorded Nareit FFO (Funds From Operations) of $317.192 million, or $0.77 per share, down from $412.474 million, or $1.02 per share, during the same period last year. Ventas regards Nareit FFO as a useful metric for investors to compare the operating performance of real estate across different reporting periods and against other companies.

Normalized FFO was reported at $329.119 million, or $0.80 per share, up from $302.345 million, or $0.75 per share, the prior year. Net income, however, decreased to $19.387 million, or $0.05 per share, from $103.453 million, or $0.26 per share, in 2023. The company registered a loss from unconsolidated entities amounting to $1.652 million, compared to a profit of $31.254 million a year earlier. Total expenses rose to $1.220 billion from $1.043 billion in the previous year.

Total revenue saw an improvement, reaching $1.200 billion, compared to $1.106 billion the previous year. Revenue from resident fees and services increased to $817.600 million from $724.614 million last year.

Looking forward to the full year, Ventas has revised its Nareit FFO expectations to between $3.02 and $3.08, up from an earlier forecast of $2.98 to $3.06 per share. Annual normalized FFO per share is now projected to range from $3.12 to $3.18, slightly adjusted from previous guidance of $3.10 to $3.18 per share. The company now anticipates full-year net income per share to fall between $0.07 and $0.13, compared to the prior expectation of $0.03 to $0.11 per share.

According to a poll of eight analysts by Thomson Reuters, the firm is expected to earn $0.05 per share for the quarter, although these estimates typically exclude special items.

The outlook assumes approximately $750 million of investments focused on senior housing, all to be equity-funded without any further investment activity, and plans to dispose of assets for $300 million in net proceeds.