Analyst Note| Kevin Brown |
No-moat Ventas reported disappointing second-quarter results, though we didn't see anything that would materially affect our $64 fair value estimate. Senior housing same-store occupancy improved 110 basis points sequentially to 77.5%, which is slightly below our 78.3% estimate for the quarter. With lower occupancy, Ventas wasn't able to improve rate growth like we had expected, with the reported figure falling 2.7% compared with our estimate of 0.6% growth. As a result, same-store revenue for the senior housing portfolio fell 7.9% year over year, though that was better than the declines reported the prior four quarters.