Ventas Q2 Revenue Climbs; Lifts Outlook

(RTTNews) - Ventas, Inc. (VTR), a real estate investment trust, reported increased revenue for the second quarter.

For the three-month period to June 30, the company posted Nareit FFO of $317.192 million or $0.77 per share, lower than $412.474 million or $1.02 per share, reported for the same period of last year.

The company believes Nareit FFO can help investors compare the operating performance of a company's real estate across reporting periods and to the operating performance of other companies

Normalized FFO stood at $ 329.119 million or $0.80 per share, compared with $302.345 million or $0.75 per share a year ago. Net income slipped to $19.387 million or $0.05 per share from $103.453 million or $0.26 per share in 2023. Loss from unconsolidated entities was $1.652 million, compared with a profit of $31.254 million a year ago. Total expenses increased to $1.220 billion from $1.043 billion in the previous year.

Total revenue improved to $1.200 billion from previous year's $1.106 billion. Revenue from resident fees and services was up at $817.600 million from previous year's $724.614 million.

Looking ahead, for the full year, Ventas now expects Nareit FFO of $3.02 to $3.08, higher than earlier outlook of $2.98 to $3.06 per share.

Annual normalized per share FFO are now projected to be $3.12 to $3.18, compared with previous guidance of $3.10 to $3.18 per share. The company now expects its full-year net income per share of $0.07 to $0.13, higher than prior expectation of $0.03 to $0.11 per share.

On average, eight analysts polled by Thomson Reuters expect the firm to earn $0.05 per share, for the quarter. Analysts' estimates typically exclude special items.

The outlook assumes around $750 million of investments focused on senior housing, all equity funded without any further investment activity, and dispose of assets for $300 million in net proceeds.