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Mar 31, 2021
Ventas Q1 2021 Earnings Report
Ventas' Q1 2021 earnings were reported, showing better-than-expected financial results driven by SHOP and reliable performance in Office and Triple-Net businesses. Occupancy in SHOP improved, and move-ins exceeded pre-pandemic levels.
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.
Ventas
Ventas
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.