Chicago-based Ventas, Inc. (VTR) is a leading real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. With a market cap of $21.6 billion, Ventas operates numerous senior housing communities, providing valuable services to residents. It is expected to announce its Q2 earnings after the market closes on Thursday, August 1.
Ahead of the event, analysts expect Ventas to report Funds from Operations (FFO) of $0.79 per share, up 5.3% from $0.75 per share reported in the year-ago quarter. The company has consistently surpassed or met Wall Street’s FFO estimates over the past four quarters. Its FFO for the last reported quarter grew 5.4% year over year to $0.78 per share, also exceeding the consensus estimates by 5.4%.
Looking ahead to fiscal 2024, analysts expect Ventas to report an FFO per share of $3.16, up 5.7% from $2.99 in fiscal 2023. In fiscal 2025, its FFO per share is expected to grow 6% annually to $3.35.
VTR stock is up 11.5% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 23.6% gains but outperforming the S&P 500 Real Estate Sector SPDR’s (XLRE) 6.3% returns over the same time frame.
Ventas announced its Q1 earnings report on May 1, and VTR stock rose 5.5% in the subsequent trading session, which held strong across subsequent trading sessions. Although the company reported a net loss of $12.5 million primarily due to an increase in property-level operating expenses in the senior housing segment, it reported an 11.4% increase in total revenue to $1.2 billion.
The company is well-positioned to capitalize on the demographic trend of a growing aging population with its senior housing segment, which will help the company achieve stable revenue growth. Additionally, the company has been consistent with its quarterly dividend payouts, which demonstrate its commitment to shareholders.
The consensus estimate on Ventas stock is moderately bullish with a “Moderate Buy” rating. Out of the 18 analysts covering the stock, 10 recommend “Strong Buy,” two advise “Moderate Buy,” and the remaining six analysts are cautiously holding their ground with a “Hold” rating.
The average target price for Ventas stock is $54.26, indicating a potential upside of 1.6% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
