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Jun 30, 2021
Ventas Q2 2021 Earnings Report
Ventas delivered strong second quarter results driven by occupancy and net operating income growth.
Key Takeaways
Ventas reported strong second quarter results, driven by significant occupancy improvements and organic net operating income growth in the Senior Housing Operating Portfolio (SHOP) segment, alongside growth in the Office segment and consistent performance in the Triple Net (NNN) segment. The company has delivered five consecutive months of occupancy growth and leads in SHOP.
Strong second quarter results driven by occupancy improvement and NOI growth in SHOP.
Office growth and solid performance in Triple Net (NNN) segment.
Five consecutive months of growth in occupancy and leads in SHOP.
Senior housing is entering a period of highly favorable conditions as occupancy rebounds and supply demand fundamentals improve.
Ventas
Ventas
Ventas Revenue by Segment
Revenue by Segment
Triple-net leased properties Revenue
CapyFin.comResident fees and services Revenue
CapyFin.comIncome from loans & investments Revenue
CapyFin.comInterest and other income Revenue
CapyFin.com Forward Guidance
The Company currently expects to report third quarter 2021 Net Income (Loss) Attributable to Common Stockholders, Nareit FFO and Normalized FFO within the per share ranges of $0.00 - $0.05, $0.61 - $0.65, and $0.70 - $0.74 respectively.
Positive Outlook
- Approximate spot occupancy in the Company’s sequential same-store SHOP business is assumed to increase 150 – 250 basis points from June 30, 2021 to September 30, 2021, creating revenue growth
- A net benefit in the third quarter compared to the second quarter of two cents from “Ardent Activities”.
- Stable performance in the Office and NNN segments.
- The Company continues to expect a total of approximately $1.0 billion in asset sales and loan repayments in 2021 principally in senior housing and medical office properties with proceeds used to reduce near term indebtedness and to fund investment in development.
- Recognition of the receipt by Ventas of a $15 million prepayment fee in connection with Ardent’s redemption of the Ardent 2026 Senior Notes in the third quarter, net of $7 million (at Ventas’s share) of HHS Grants recognized by Ardent in the second quarter.
Challenges Ahead
- creating revenue growth, which is expected to be approximately offset by increasing operating costs due to an additional day in the quarter, higher occupancy, labor, routine seasonal items and potential COVID-19 related expenditures.
- No HHS Grants are assumed to be received in the third quarter.
- Equity Raised and Recent Dispositions
- NOI from Properties Intended for Disposition
- The Company’s current third quarter 2021 guidance excludes any contribution or impact from the pending acquisition of New Senior, which is expected to close during the second half of this year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income