NYSE$VTR

Ventas Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Ventas' Q1 2021 earnings were reported, showing better-than-expected financial results driven by SHOP and reliable performance in Office and Triple-Net businesses. Occupancy in SHOP improved, and move-ins exceeded pre-pandemic levels.

Ventas reported better-than-expected financial results for Q1 2021, driven by strong performance in the Senior Housing Operating Portfolio (SHOP) and the stable performance of the Office and Triple-Net businesses. Occupancy in SHOP improved, and move-ins exceeded pre-pandemic levels in March and April.

  • Strong, diverse and high-quality portfolio delivered better than expected financial results in the first quarter.
  • Occupancy in SHOP improved by 190 basis points from pandemic lows in mid-March through the end of April.
  • Move-ins during April totaled 1,880 residents, the highest number since June 2019.
  • Emerging momentum in SHOP, combined with our high-quality portfolio, leading operators and partners and experienced leadership, position Ventas to win the recovery.

Headline financials

Total Revenue

$910M

Previous: $1.01B-10.1%
EPS (adj)

$0.72

Previous: $0.97-25.8%
Capital Expenditures

-$147M

Previous: -$374M+60.7%
Free Cash Flow

-$203M

Previous: $100M-301.9%
Net Income

-$55.4M

Previous: $475M-111.7%
Operating Income

-$3.07M

Previous: $445M-100.7%
Gross Profit

$432M

Previous: $530M-18.6%
Cash & Equivalents

$170M

Previous: $2.85B-94.0%
Total Assets

$23.6B

Previous: $26.6B-11.5%
Stock-Based Comp

$16.1M

Previous: $10.5M+52.9%

Revenue & EPS history

Ventas · Revenue · Quarterly

$910M

Q1 2021-10.1%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Ventas · $1.15B total across 6 segments · Q3 2023

  • Resident fees and services
    $754M+12.8%
  • Outpatient medical and research portfolio
    $226M
  • Triple-net leased properties
    $160M
  • Third-party capital management revenues
    $5.32M
  • Interest and other income
    $2.75M+463.2%
  • Income from loans and investments
    $1.21M-90.5%

Forward guidance

The Company currently expects to report second quarter 2021 Net Income (Loss) Attributable to Common Stockholders, Nareit FFO and Normalized FFO within certain per share ranges.

Tailwinds

  • Approximate spot occupancy in the Company’s sequential same-store SHOP business (434 assets) is assumed to increase by 150 to 250 basis points from March 31, 2021 through June 30, 2021.
  • At the midpoint of this range, SHOP sequential same-store NOI and revenue are expected to increase modestly.
  • Expenses are expected to be stable (in each case, excluding the impact of HHS Grants in all periods).
  • Customary operating expenses are expected to increase due to increased occupancy, activity levels in the communities and an additional day in the quarter.
  • COVID-19 costs should decrease.

Headwinds

  • The trajectory and future impact of the COVID-19 pandemic remain highly uncertain and can change rapidly.
  • Ventas expects to recycle capital through approximately $1.0 billion in property dispositions across asset classes in the second half of 2021.
  • These actions will further enhance the Company’s portfolio quality, augment financial strength and flexibility and fund new investments, including capital expenditures of $0.5 billion, principally in the Office segment and with Le Groupe Maurice.
  • The Company continues to expect full year 2021 general and administrative expenses to range from approximately $135 million to $140 million.
  • No HHS Grants are assumed to be received in Senior Housing in the second quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.6%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.3%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+13.9%

Q3 2020

Best reaction

-10.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%+3.9%+1.7%
Q4 2025+3.4%+7.3%+6.3%
Q3 2025+6.8%+7.4%+15.5%
Q2 2025+0.5%+2.0%+1.3%
Q1 2025-6.5%-6.1%-8.3%
Q4 2024+8.3%+11.4%+11.6%
Q3 2024-0.8%-2.5%-3.0%
Q2 2024+3.6%+5.0%+14.1%
Q1 2024+4.4%+6.3%+13.5%
Q4 2023-0.6%-1.6%-4.5%
Q3 2023+3.0%+2.3%+9.3%
Q2 2023-7.3%-6.2%-11.1%
Q1 2023-2.1%-2.8%-3.1%
Q4 2022-1.7%-2.0%-13.9%
Q3 2022+5.7%+13.0%+23.7%
Q2 2022-5.1%-1.9%-8.2%
Q1 2022-1.4%-8.9%-2.7%
Q4 2021+1.0%+0.9%+13.4%
Q3 2021-0.5%+3.7%-10.7%
Q2 2021-4.3%-5.1%-6.1%
Q1 2021+1.7%-3.4%+5.1%
Q4 2020+3.5%+7.9%+7.6%
Q3 2020+13.9%+17.8%+20.3%
Q2 2020+7.8%+4.0%+12.8%
Q1 2020+7.2%-1.1%+59.8%
Q4 2019+6.5%+1.1%-63.4%
Q3 2019-10.8%-10.4%-20.8%
Q2 2019+0.1%-0.3%+6.7%
Q1 2019+0.7%+2.8%+10.9%
Q4 2018-1.1%-0.4%-3.8%
Q3 2018+0.6%+2.0%+8.0%
Q2 2018-3.3%-0.9%+2.4%
Q1 2018+8.3%+10.3%+13.0%
Q4 2017-0.9%-2.6%-2.4%
Q3 2017+3.5%+3.2%+5.9%
Q2 2017-0.1%-2.1%+0.7%
Q1 2017-0.2%-2.1%+3.8%
Q4 2016+1.6%-0.2%-2.1%
Q3 2016+2.0%-4.8%-9.3%
Q2 2016+2.7%-1.1%-3.2%
Q1 2016+0.6%
Q4 2015+2.1%
Q3 2015-5.7%
Q2 2015+3.8%
Q1 2015-1.0%
Q4 2014-0.7%
Q3 2014-0.6%
Q2 2014-0.3%
Q1 2014+2.2%
Q4 2013-1.9%
Q3 2013+0.9%
Q2 2013-1.1%
Q1 2013+0.5%
Q4 2012+2.3%
Q3 2012+0.4%
Q2 2012+2.2%
Q1 2012+0.1%
Q4 2011+1.1%
Q3 2011+0.9%
Q2 2011-9.3%
Q1 2011-1.7%
Q4 2010-6.2%
Q3 2010-0.5%
Q2 2010+4.0%
Q1 2009-0.8%
Q1 2010-1.6%
Q4 2007+0.2%
Q4 2009+0.2%
Q3 2008-2.1%
Q3 2009-2.1%
Q2 2008+1.7%
Q2 2009+1.7%
Q4 2008+1.7%

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