Why did Ventas report a net loss in the first quarter of 2024 after net income a year earlier?

The filing shows a net loss attributable to common stockholders of $14.3 million for Q1 2024, compared with net income of $17.5 million in Q1 2023. The release lists higher interest expense, a $15.7 million shareholder relations matters charge, and higher depreciation and amortization among the expense lines. Total revenues rose to $1.20 billion from $1.08 billion, and the company's non-GAAP Normalized FFO excludes the shareholder relations charge.

How did the senior housing (SHOP) segment perform?

On a Same-Store Cash NOI basis, SHOP grew more than 15% year-over-year, led by the U.S., which grew approximately 18%. Same-Store average occupancy grew 240 basis points year-over-year, accelerating from 170 basis points in Q4 2023, and the company cited demand-driven move-ins and tour volumes above prior-year levels.

Did Ventas change its full-year 2024 guidance?

Yes. The company updated guidance as of May 1, 2024. Normalized FFO per share is now $3.10 to $3.18 (midpoint $3.14), compared with $3.07 to $3.18 (midpoint $3.125) as of February 14, 2024. Nareit FFO per share is now $2.98 to $3.06 (midpoint $3.02), and attributable net income per share is $0.03 to $0.11 (midpoint $0.07).

How is Ventas funding its investments?

The company issued 2.1 million shares under its at-the-market program for gross proceeds of $94 million year to date, and the release states these proceeds have match funded the senior housing investments completed so far. The company also completed debt refinancing, including Cdn$650 million of 5.10% Senior Notes due 2029 raised in March and the extension of its $2.75 billion unsecured revolving credit facility to 2028 at improved pricing.

What is the company's liquidity position?

As of March 31, 2024, Ventas reported $3.4 billion in liquidity, including availability under its unsecured revolving credit facility and cash and cash equivalents on hand. The release states there were no borrowings outstanding under its commercial paper program. Cash and cash equivalents were $632.4 million at March 31, 2024.

VTR 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.

Ventas, Inc. (NYSE: VTR) furnished an 8-K on May 1, 2024 under Item 2.02 attaching its press release reporting first-quarter 2024 results for the quarter ended March 31, 2024.

The company reported a net loss attributable to common stockholders of $14.3 million^a, or ($0.04) per share, compared with net income of $17.5 million, or $0.04 per share, a year earlier. Normalized FFO per share was $0.78, up from $0.74, and Nareit FFO per share was $0.72, down from $0.73. Total Company NOI grew 8.2% year-over-year and Same-Store Cash NOI grew 6.7%, with SHOP Same-Store Cash NOI growing more than 15% led by the U.S., which grew approximately 18%.

Management attributed the performance to accelerating SHOP occupancy, which rose 240 basis points year-over-year in the Same-Store portfolio. Management raised its full-year 2024 guidance. Normalized FFO per share guidance midpoint increased to $3.14^b from $3.125 (range $3.10 to $3.18, versus $3.07 to $3.18 previously), and Nareit FFO per share midpoint rose to $3.02 from $3.00.

The attributable net income per share midpoint was raised to $0.07^c from $0.06. Investment activity was about $350 million of senior housing investments closed or under contract, meeting prior full-year expectations, and the company issued 2.1 million shares under its at-the-market program for $94 million in gross proceeds. As of March 31, 2024, liquidity was $3.4 billion.

The release also disclosed a $15.7 million^d shareholder relations matters expense in the quarter, which the company excluded from Normalized FFO, and a $2.4 million class action settlement by one operator in the SHOP segment. Investors may want to weigh the GAAP net loss against the strong operating growth and the company's non-GAAP presentation.

02—Key points

Key Highlights

Net loss attributable to common stockholders of $(14.3) million, or ($0.04) per share, versus net income of $17.5 million, or $0.04 per share, in Q1 2023.
Normalized FFO per share of $0.78, up from $0.74 a year earlier, an increase of 5%; Nareit FFO per share of $0.72 versus $0.73.
Total Company NOI grew 8.2% year-over-year and Same-Store Cash NOI grew 6.7%.
SHOP Same-Store Cash NOI rose 15.2%, with the U.S. up approximately 18%; SHOP Same-Store average occupancy grew 240 basis points year-over-year.
Full-year 2024 Normalized FFO per share guidance narrowed to $3.10 to $3.18 (midpoint $3.14) from $3.07 to $3.18 (midpoint $3.125); Nareit FFO midpoint raised to $3.02 from $3.00.
Closed or under contract on approximately $350 million of senior housing investments, and issued $94 million of common stock under the at-the-market program year to date.
Liquidity of $3.4 billion as of March 31, 2024; a $2.75 billion unsecured revolver was extended to 2028 and Cdn$650 million 5.10% Senior Notes due 2029 were raised in March.

03—Questions

Frequently Asked Questions

Why did Ventas report a net loss in the first quarter of 2024 after net income a year earlier?
The filing shows a net loss attributable to common stockholders of $14.3 million for Q1 2024, compared with net income of $17.5 million in Q1 2023. The release lists higher interest expense, a $15.7 million shareholder relations matters charge, and higher depreciation and amortization among the expense lines. Total revenues rose to $1.20 billion from $1.08 billion, and the company's non-GAAP Normalized FFO excludes the shareholder relations charge.
How did the senior housing (SHOP) segment perform?
On a Same-Store Cash NOI basis, SHOP grew more than 15% year-over-year, led by the U.S., which grew approximately 18%. Same-Store average occupancy grew 240 basis points year-over-year, accelerating from 170 basis points in Q4 2023, and the company cited demand-driven move-ins and tour volumes above prior-year levels.
Did Ventas change its full-year 2024 guidance?
Yes. The company updated guidance as of May 1, 2024. Normalized FFO per share is now $3.10 to $3.18 (midpoint $3.14), compared with $3.07 to $3.18 (midpoint $3.125) as of February 14, 2024. Nareit FFO per share is now $2.98 to $3.06 (midpoint $3.02), and attributable net income per share is $0.03 to $0.11 (midpoint $0.07).
How is Ventas funding its investments?
The company issued 2.1 million shares under its at-the-market program for gross proceeds of $94 million year to date, and the release states these proceeds have match funded the senior housing investments completed so far. The company also completed debt refinancing, including Cdn$650 million of 5.10% Senior Notes due 2029 raised in March and the extension of its $2.75 billion unsecured revolving credit facility to 2028 at improved pricing.
What is the company's liquidity position?
As of March 31, 2024, Ventas reported $3.4 billion in liquidity, including availability under its unsecured revolving credit facility and cash and cash equivalents on hand. The release states there were no borrowings outstanding under its commercial paper program. Cash and cash equivalents were $632.4 million at March 31, 2024.

04—Continue

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