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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%.