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Dec 31, 2019
Ventas Q4 2019 Earnings Report
Announced results for the fourth quarter and full year ended December 31, 2019.
Key Takeaways
Ventas, Inc. reported solid enterprise results for Q4 2019, benefiting from its diverse high-quality portfolio and effective capital markets execution. While the Senior Housing business faced challenges, actions are being taken to improve performance and position the company for future success.
Medical Office, Healthcare and Research & Innovation portfolios grew and performed well.
Team is sharply focused on achieving goals and delivering value for stakeholders as they enter 2020.
Well-positioned to benefit from expected improvement in senior housing fundamentals.
Actions are being taken to improve performance and position Ventas for success and growth
Ventas
Ventas
Ventas Revenue by Segment
Revenue by Segment
Triple-net leased properties Revenue
CapyFin.comIncome from loans & investments Revenue
CapyFin.comInterest and other income Revenue
CapyFin.com Forward Guidance
Ventas expects 2020 per share Normalized FFO, Nareit FFO and net income attributable to common stockholders, and same-store cash NOI growth, assuming no new investments and approximately $1.3 billion in divestitures and receipt of loan repayments (inclusive of $0.6 billion in proceeds arising from property contributions to seed the Fund), to range as follows:
Positive Outlook
- Office and NNN Healthcare portfolio to contribute an incremental $0.04 per share to its 2020 Normalized FFO
- Total Senior Housing (NNN and SHOP) portfolio to contribute approximately the same amount per share of Normalized FFO in 2020 as it did in the fourth quarter 2019 annualized.
- Proceeds from the dispositions will be used to fund future growth through investment in $0.6 billion of high-quality developments and redevelopment projects in 2020, principally in the Office segment.
Challenges Ahead
- Full year SHOP year over year same-store NOI growth is projected to be negative in 2020 as a result of the trajectory of the business in the second half of 2019 and the resulting lower occupancy start point in January 2020, together with the impact of cumulative supply.
- Capital recycling, including the anticipated sale of non-core senior housing assets ($0.6 billion), as well as other dispositions and loan repayments ($0.2 billion), is expected to be approximately ($0.05) dilutive to earnings in 2020.
- While the Fund is expected to be accretive to Ventas earnings as it scales assets under management, it will initially be dilutive to the Company by ($0.03) per share in 2020.
- The Company’s 2020 guidance is based on a number of other assumptions that are subject to change and many of which are outside the control of the Company.
- There can be no assurance that the Company will achieve these results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income