Ventas Q4 2024 Earnings Report
Key Takeaways
Ventas delivered strong financial performance in the fourth quarter of 2024, with SHOP portfolio experiencing double-digit growth and the completion of over $2 billion in accretive investments focused on senior housing. The company's Net Debt-to-Further Adjusted EBITDA improved, and the quarterly dividend was increased by 7% due to strong results and a positive outlook.
Ventas delivered strong financial performance and growth in the fourth quarter and full year 2024.
The senior housing operating portfolio (SHOP) grew nearly 16% year-over-year.
The Company closed over $2 billion of investments, substantially all of which are focused on senior housing with attractive financial return expectations.
Ventas’s Net Debt-to-Further Adjusted EBITDA improved to 6.0x as of the end of the fourth quarter 2024.
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Ventas Revenue by Segment
Forward Guidance
Ventas expects to achieve significant NOI growth in the SHOP segment and to benefit from accretive senior housing investment activity in 2025. The Company has included approximately $1 billion of 2025 investments focused on senior housing in its 2025 guidance.
Positive Outlook
- Expect to close approximately $1 billion of senior housing investments, weighted in the first half of 2025
- Expect to dispose of assets for approximately $200 million in net proceeds
- FAD capital expenditures of approximately $285 million at midpoint
- General and administrative expenses of approximately $172 million at midpoint
- Interest and other income of ~$11 million at midpoint
Challenges Ahead
- Net interest expense (i.e., interest expense net of interest and other income) expected to increase ~$32M year-over-year due to refinancing maturing debt at higher rates and lower cash balances
- Interest expense of ~$618 million at midpoint
- Actual results may differ materially from the Company’s expectations depending on factors discussed in the company filings with the Securities and Exchange Commission.
- Guidance is based on a number of assumptions that are subject to change
- Many assumptions are outside the control of the company.