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Sep 30, 2022
Ventas Q3 2022 Earnings Report
Ventas experienced growth in Q3 2022, driven by strong performance in the SHOP segment and overall same-store cash NOI growth.
Key Takeaways
Ventas reported a net income attributable to common stockholders per share of $0.00 and Normalized FFO per share of $0.76 for Q3 2022. The company's SHOP segment saw a 13% year-over-year increase in same-store cash NOI, contributing to a total company same-store cash NOI growth of 4.8%.
Net Income Attributable to Common Stockholders per share was $0.00.
Normalized FFO per share was $0.76, including $0.05 per share from HHS grants.
Total Company year-over-year same-store cash NOI grew by 4.8%.
SHOP segment year-over-year same-store cash NOI grew by 13%, driven by revenue growth of approximately 9%.
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 expects to report fourth quarter 2022 Attributable Net Income to Common Stockholders, Nareit FFO and Normalized FFO per share and same-store cash NOI growth within the provided ranges.
Positive Outlook
- SHOP same-store cash NOI is expected to grow in the range of 15% to 21% year-over-year.
- Ventas anticipates year-over-year revenue growth of approximately 8% at the midpoint of the same-store cash NOI guidance range, driven by continued strong rate growth and occupancy growth of 100 to 150 basis points.
- Same-store cash NOI growth year-over-year is expected to be driven by occupancy growth, contractual escalators and favorable expense controls for Office segment.
- Same-store cash NOI growth is expected to be driven by contractual escalators for Triple-Net segment.
- The Company is expected to earn its first promote revenue from its third-party institutional capital management business (VIM), approximating $0.01 per share in the fourth quarter.
Challenges Ahead
- Rising interest rates on floating rate debt and a strengthening U.S. dollar are expected to reduce Normalized FFO by ($0.02) per share in the fourth quarter versus the third quarter 2022.
- Year-over-year revenue growth is expected to be partially mitigated by continued broad inflationary expense pressure.
- The Normalized FFO impact of fourth quarter general and administrative expenses is expected to range from approximately $36 million to $38 million.
- The guidance does not assume any new or unannounced material acquisitions or capital markets activities.
- The Company does not expect to receive any HHS grants in the fourth quarter.