Ventas Q1 2021 Earnings Report
Key Takeaways
Ventas reported better-than-expected financial results for Q1 2021, driven by strong performance in the Senior Housing Operating Portfolio (SHOP) and the stable performance of the Office and Triple-Net businesses. Occupancy in SHOP improved, and move-ins exceeded pre-pandemic levels in March and April.
Strong, diverse and high-quality portfolio delivered better than expected financial results in the first quarter.
Occupancy in SHOP improved by 190 basis points from pandemic lows in mid-March through the end of April.
Move-ins during April totaled 1,880 residents, the highest number since June 2019.
Emerging momentum in SHOP, combined with our high-quality portfolio, leading operators and partners and experienced leadership, position Ventas to win the recovery.
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Forward Guidance
The Company currently expects to report second quarter 2021 Net Income (Loss) Attributable to Common Stockholders, Nareit FFO and Normalized FFO within certain per share ranges.
Positive Outlook
- Approximate spot occupancy in the Company’s sequential same-store SHOP business (434 assets) is assumed to increase by 150 to 250 basis points from March 31, 2021 through June 30, 2021.
- At the midpoint of this range, SHOP sequential same-store NOI and revenue are expected to increase modestly.
- Expenses are expected to be stable (in each case, excluding the impact of HHS Grants in all periods).
- Customary operating expenses are expected to increase due to increased occupancy, activity levels in the communities and an additional day in the quarter.
- COVID-19 costs should decrease.
Challenges Ahead
- The trajectory and future impact of the COVID-19 pandemic remain highly uncertain and can change rapidly.
- Ventas expects to recycle capital through approximately $1.0 billion in property dispositions across asset classes in the second half of 2021.
- These actions will further enhance the Company’s portfolio quality, augment financial strength and flexibility and fund new investments, including capital expenditures of $0.5 billion, principally in the Office segment and with Le Groupe Maurice.
- The Company continues to expect full year 2021 general and administrative expenses to range from approximately $135 million to $140 million.
- No HHS Grants are assumed to be received in Senior Housing in the second quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income