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Sep 30, 2021
Ventas Q3 2021 Earnings Report
Ventas' diversified portfolio showed resilience, driven by growth in life science, medical office, and triple-net portfolios, and sustained demand in senior housing despite COVID-19 and labor market challenges.
Key Takeaways
Ventas reported strong Q3 2021 results with growth in life science, medical office, and healthcare triple net portfolios. Senior housing communities saw sustained demand and revenue growth, with average occupancy up 230 basis points sequentially. The company completed or announced $3.7 billion in strategic investments, including the acquisition of New Senior and a life science project anchored by University of California, Davis. Ventas expects a robust recovery in senior housing and aims to capture benefits from completed investments and external growth opportunities.
Ventas' high-quality diversified portfolio demonstrated strength in the third quarter of 2021 despite the challenges of COVID-19 and a tight labor market.
Average SHOP occupancy grew 230 basis points sequentially and eight consecutive months of occupancy growth through October.
Completed and announced strategic investments of $3.7 billion in 2021, including acquisition of New Senior and UC Davis life science project.
Expects a robust recovery in senior housing as we also capture the benefits of our completed investments and execute on our external growth opportunities
Ventas
Ventas
Ventas Revenue by Segment
Revenue by Segment
Resident 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 fourth quarter 2021 Net Income (Loss) Attributable to Common Stockholders, Nareit FFO and Normalized FFO within the following per share ranges:
Positive Outlook
- Average occupancy for fourth quarter 2021 in the same-store SHOP business is expected to increase 80 to 120 basis points sequentially, reflecting continued demand exceeding pre-pandemic levels tempered by typical seasonal trends.
- Revenue for the same-store SHOP business is expected to grow in the fourth quarter as a result of occupancy increases.
- Stable sequential performance is expected in the Office and NNN segments.
- Receipt of a $13 million fee related to the previously announced acquisition of Kindred Healthcare.
- The Company continues to expect to receive approximately $1.0 billion in proceeds from asset sales and loan repayments in 2021 principally in senior housing, medical office and loan investments with proceeds used to reduce near-term indebtedness.
Challenges Ahead
- Approximately stable NOI is expected in the Company’s sequential same-store SHOP business in the fourth quarter. At the mid-point of the range, revenue growth is assumed to be offset by increasing operating costs, notably including continued elevated labor costs.
- We have assumed that no HHS Grants will be received by the Company in the fourth quarter.
- The guidance assumes no material changes in the impact of COVID-19 on our business.
- The trajectory and future impact of the COVID-19 pandemic, including the impact of the Delta or any other variant, remain highly uncertain and may change rapidly.
- Significant changes or impacts of the pandemic are excluded from our guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income