Ventas, Inc. (VTR), headquartered in Chicago, Illinois, is a leading real estate investment trust (REIT) enabling exceptional environments that benefit a large and growing aging population. Valued at $25.4 billion by market cap, the company owns seniors housing communities, skilled nursing facilities, hospitals, and medical office buildings in the U.S. and Canada.
Shares of this leading healthcare REIT have outperformed the broader market over the past year. VTR has gained 31.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. However, in 2025, VTR stock is up 1.5%, compared to the SPX’s 3.1% rise on a YTD basis.
Zooming in further, VTR’s outperformance looks more pronounced compared to Real Estate Select Sector SPDR Fund (XLRE). The exchange-traded fund has gained about 9.4% over the past year. However, the ETF’s 3.3% gains on a YTD basis outshine the stock’s returns over the same time frame.
VTR's strong performance is driven by successful senior housing investments totaling $1.4 billion, with $300 million more in the pipeline. The company is well-positioned to benefit from an aging population and increasing healthcare spending by seniors. Ventas is focusing on expanding its outpatient medical and research portfolio to capitalize on growing demand from the 65+ age group, who make more frequent doctor visits. With strategic investments and high-quality tenants, Ventas is poised for steady cash flow growth in the evolving healthcare landscape.
On Oct. 30, VTR shares closed up marginally after reporting its Q3 results. Its FFO of $0.80 matched the analyst estimates. The company’s revenue was $1.24 billion, surpassing Wall Street forecasts of $1.21 billion. VTR expects full-year FFO in the range of $3.14 to $3.18.
For the current fiscal year, ended in December 2024, analysts expect VTR’s FFO to grow 5.7% to $3.16 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 19 analysts covering VTR stock, the consensus is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is more bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”
On Jan. 27, Scotiabank kept a “Sector Perform” rating on VTR and raised the price target to $69, implying a potential upside of 15.5% from current levels.
The mean price target of $70.50 represents an 18% premium to VTR’s current price levels. The Street-high price target of $81 suggests an ambitious upside potential of 35.5%.
