Ventas, Inc. VTR is scheduled to report fourth-quarter and full-year 2024 results on Feb. 12, after market shut. The quarterly outcomes are prone to show year-over-year development in revenues and normalized funds from operations (FFO) per share.
See the Zacks Earnings Calendar to remain forward of market-making information.
Within the final reported quarter, this Chicago-based healthcare actual property funding belief (REIT) delivered a normalized FFO per share of 80 cents, in keeping with the Zacks Consensus Estimate. The quarterly outcomes mirrored better-than-anticipated revenues. Ventas’ same-store money web working earnings elevated 12 months over 12 months on sturdy efficiency throughout the portfolio.
Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in two of the trailing 4 quarters and met within the remaining interval, with the common beat being 1.67%. The graph under depicts this shock historical past:
Ventas, Inc. Value and EPS Shock
Ventas, Inc. price-eps-surprise | Ventas, Inc. Quote
Components at Play
Within the fourth quarter, Ventas’ senior housing working portfolio (SHOP) is prone to have benefited from an growing old U.S. inhabitants and an increase in healthcare expenditure by this age cohort, which is usually increased than the common inhabitants. With the phase witnessing constructive web move-ins, occupancy is predicted to have remained excessive.
A well-diversified tenant base with long-term leases is predicted to have contributed effectively to steady rental income technology, boosting the highest line.
Nevertheless, the triple-net leased properties and outpatient medical and analysis portfolio segments are prone to be affected in the course of the to-be-reported quarter.
Additional, excessive curiosity bills are anticipated to have forged a pall on the corporate’s efficiency to some extent.
VTR’s This fall Projections
The Zacks Consensus Estimate for fourth-quarter resident charges and providers is pegged at $850.1 million, suggesting a rise from $775.2 million reported within the year-ago interval.
The Zacks Consensus Estimate for fourth-quarter revenues is presently pegged at $1.26 billion, implying an 8.1% improve from the prior-year quarter’s reported determine.
Nevertheless, the Zacks Consensus Estimate for fourth-quarter triple-net leased rental earnings is pegged at $151.6 million, suggesting a lower from the $155.3 million reported within the year-ago interval.
The consensus mark for outpatient medical and analysis portfolio rental earnings for the fourth quarter is pegged at $220.8 million, indicating decline from $222.1 million reported within the year-ago interval.
Ventas’ actions in the course of the soon-to-be-reported quarter had been insufficient to realize analysts’ confidence. The Zacks Consensus Estimate for fourth-quarter FFO per share has remained unrevised at 80 cents over the previous two months. Nevertheless, the determine implies a rise of 5.3% from the year-ago quarter’s reported quantity.
VTR’s 2024 Projections
For 2024, Ventas expects current-year normalized FFO per share within the vary of $3.14-$3.18. The corporate estimated whole same-store money NOI development between 6.75% and eight.00%. The SHOP phase’s same-store money NOI is projected between 14% and 16%. The Outpatient Medical and Analysis Portfolio phase’s same-store money NOI is predicted within the vary of two.75-3.25%, whereas the estimation for triple-net leased same-store money NOI is projected within the vary of 1.5-2.0%.
For the total 12 months, the Zacks Consensus Estimate for normalized FFO per share is pegged at $3.16. The determine signifies 5.7% development 12 months over 12 months, whereas revenues are projected to extend 8.9% 12 months over 12 months to $4.90 billion.
What Our Quantitative Mannequin Predicts
Our confirmed mannequin doesn’t conclusively predict a beat by way of FFO per share for Ventas this season. The mix of a constructive Earnings ESP and a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain) will increase the possibilities of an FFO beat, which isn’t the case right here.
Ventas presently has an Earnings ESP of 0.00% and carries a Zacks Rank of three. You may uncover the perfect shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Shares That Warrant a Look
Listed here are two shares from the broader REIT sector — Highwoods Properties HIW and Host Resorts & Resorts HST — that you could be wish to think about, as our mannequin exhibits that these have the fitting mixture of parts to report a shock this quarter.
Highwoods Properties, scheduled to report quarterly numbers on Feb. 11, has an Earnings ESP of +0.22% and carries a Zacks Rank of three. You may see the complete list of today’s Zacks #1 Rank stocks here.
Host Resorts is slated to report quarterly numbers on Feb. 19. HST has an Earnings ESP of +1.50% and carries a Zacks Rank of three presently.
Be aware: Something associated to earnings offered on this write-up represents funds from operations (FFO), a broadly used metric to gauge the efficiency of REITs.
Simply Launched: Zacks Prime 10 Shares for 2025
Hurry – you may nonetheless get in early on our 10 high tickers for 2025. Handpicked by Zacks Director of Analysis Sheraz Mian, this portfolio has been stunningly and persistently profitable. From inception in 2012 by means of November, 2024, the Zacks Prime 10 Shares gained +2,112.6%, greater than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed by means of 4,400 firms lined by the Zacks Rank and handpicked the perfect 10 to purchase and maintain in 2025. You may nonetheless be among the many first to see these just-released shares with huge potential.
Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report
Ventas, Inc. (VTR) : Free Stock Analysis Report
Highwoods Properties, Inc. (HIW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
