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Ventas Inc VTR

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ventas Reports Same-Store NOI Below Our Expectations for Each Segment, Leading to Q2 Miss

Kevin Brown Equity Analyst

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. 

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Company Profile

Business Description

Ventas owns a diversified healthcare portfolio of 1,200 in-place properties spread across the senior housing, medical office, hospital, life science, and skilled nursing/post-acute care. The portfolio includes over 40 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to the United States. The firm also owns mortgages and other loans, contributing about 3% of NOI.

Contact
353 North Clark Street, Suite 3300
Chicago, IL, 60654
T +1 877 483-6827
Sector Real Estate
Industry REIT - Healthcare Facilities
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 448

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