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Dec 31, 2021
Ventas Q4 2021 Earnings Report
Ventas's fourth quarter results exceeded expectations, driven by strong performance in senior housing and office segments, and strategic investments.
Key Takeaways
Ventas reported fourth-quarter results ahead of expectations, driven by execution amid COVID-19 waves. The company positioned itself to capture upside in senior housing recovery, delivered organic growth in Office and healthcare triple-net, and invested $3.7 billion in senior housing and life science.
Total SHOP portfolio NOI achieved the high end of expectations in Q4 2021.
Same-store average occupancy grew by 200 basis points to 83.4% in Q4 2021 versus Q4 2020.
Medical Office Building (MOB) same-store cash NOI grew 3.4% year-over-year.
Ventas completed or announced $3.7 billion in strategic investments in 2021.
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 first quarter 2022 Net Income (Loss) Attributable to Common Stockholders, Nareit FFO and Normalized FFO per share and same-store Cash NOI growth within the following ranges, which include $33 million (or $0.08 per share) of net HHS Grants received to date in the first quarter 2022
Positive Outlook
- Ventas expects first quarter 2022 year-over-year same-store SHOP revenue to increase approximately 10% versus first quarter 2021.
- SHOP NOI is expected to grow in the range of 6% to 15% in the first quarter 2022, excluding net HHS Grants in all periods, with the range principally a function of operating expense assumptions.
- Average occupancy for the first quarter 2022 in the same-store year-over-year SHOP business of 321 assets is expected to increase approximately 410 basis points at the midpoint of the Company’s expectations versus first quarter 2021.
- Revenue for the same-store SHOP business is expected to grow 10% at the midpoint of the Company’s expectations in the first quarter 2022 as compared to the first quarter 2021 principally through strong in-place rate increases implemented in the first quarter 2022 and improving re-leasing spreads.
- The Office business year-over-year same-store cash NOI is expected to increase approximately 4.5% at the midpoint of the Company’s expectations versus first quarter 2021 due to occupancy growth in MOB and strong expense controls.
Challenges Ahead
- A tight labor market, and increased staff absences due to COVID-19 protocols, have driven elevated labor and agency costs in the first quarter 2022 to date.
- At the guidance midpoint, Ventas expects operating costs to remain elevated through the first quarter even as COVID-19 clinical conditions moderate.
- The Company’s guidance assumes that no additional HHS Grants are received during the quarter.
- The guidance does not assume any new or unannounced material acquisitions or capital markets activities.
- The trajectory and future impact of the COVID-19 pandemic, including the impact of any variant, on various aspects of our business, remain highly uncertain and may change rapidly.
Revenue & Expenses
Visualization of income flow from segment revenue to net income