01—Abstract
Summary
Summary of the 8-K filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Ventas, Inc. (NYSE: VTR) reported third-quarter 2024 results for the period ended September 30, 2024, via a press release furnished as Exhibit 99.1 to this Form 8-K.
Attributable net income was $0.05a per share, compared with a loss of $0.18 per share a year earlier. Normalized FFO was $0.80 per share, compared with $0.75, and Nareit FFO was $0.79 per share, compared with $0.73. Total Company NOI grew 4.9% year over year and Same-Store Cash NOI grew 7.6%.
The senior housing operating portfolio (SHOP) Same-Store Cash NOI grew 15.3%, led by average occupancy growth of 350 basis points. The company said it has closed or placed under contract $1.7 billionb of senior housing investments year to date, including approximately $1.4 billion closed and an additional $300 million under contract and expected to close by year end. Ventas issued 19.8 million shares under its at-the-market program for gross proceeds of about $1.1 billion year to date, and reported $4.0 billion of liquidity as of September 30, 2024.
Net Debt to Further Adjusted EBITDA improved to 6.3xc from 6.9x at December 31, 2023. Management raised its full-year 2024 guidance.
Normalized FFO per share is now projected at $3.14 to $3.18d, up from $3.12 to $3.18, and Nareit FFO per share at $3.04 to $3.08, up from $3.02 to $3.08. Attributable net income per share guidance narrowed to $0.09 to $0.13 from $0.07 to $0.13.
02—Key points
Key Highlights
- Q3 2024 Normalized FFO of $0.80 per share, up from $0.75 in Q3 2023; Nareit FFO of $0.79 per share versus $0.73.
- Attributable net income of $0.05 per share in Q3 2024, compared with a loss of $0.18 per share in Q3 2023.
- SHOP Same-Store Cash NOI grew 15.3% year over year, led by average occupancy growth of 350 basis points; total Company Same-Store Cash NOI grew 7.6%.
- Year-to-date senior housing investments of approximately $1.4 billion closed, with $1.7 billion closed or under contract including $300 million expected to close by year end.
- Raised low end of full-year 2024 Normalized FFO guidance to $3.14–$3.18 per share from $3.12–$3.18 and narrowed Nareit FFO guidance to $3.04–$3.08 per share.
- Liquidity of $4.0 billion as of September 30, 2024, including $1.1 billion of cash and cash equivalents.
- Net Debt to Further Adjusted EBITDA improved to 6.3x from 6.9x at December 31, 2023.
03—Questions
Frequently Asked Questions
How did Ventas perform in the third quarter of 2024?
Normalized FFO was $0.80 per share, up from $0.75 a year earlier, and Nareit FFO was $0.79 per share versus $0.73. Attributable net income was $0.05 per share, compared with a loss of $0.18 per share in the prior-year quarter. Total Company NOI grew 4.9% year over year.
What drove the strength in the senior housing portfolio?
The SHOP Same-Store portfolio grew average occupancy by 350 basis points year over year, with the U.S. up 400 basis points and Canada up 200 basis points to a record 96.5%. Combined with rate growth, SHOP total revenue grew 8.7%, and SHOP Same-Store Cash NOI grew 15.3%.
How did Ventas change its full-year 2024 guidance?
The company raised its Normalized FFO per share guidance range to $3.14–$3.18 from $3.12–$3.18, and its Nareit FFO range to $3.04–$3.08 from $3.02–$3.08. Attributable net income per share guidance narrowed to $0.09–$0.13 from $0.07–$0.13.
How is Ventas funding its growth and how strong is its balance sheet?
The company issued 19.8 million shares under its at-the-market program for gross proceeds of approximately $1.1 billion year to date, with 3.4 million shares issuable for about $210 million under forward sales agreements. Net Debt to Further Adjusted EBITDA was 6.3x at September 30, 2024, and liquidity totaled $4.0 billion.
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