NYSE$VTR

Ventas Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Ventas reported strong Q2 2022 results, with performance at the high end of expectations, driven by SHOP portfolio growth.

Ventas delivered strong results in Q2 2022, driven by attractive year-over-year top and bottom-line growth in its SHOP portfolio. The company's performance benefited from strong demand and expanding pricing power, offsetting anticipated expense growth caused by broad inflationary pressures. Ventas continues to find compelling investment opportunities, with $1.3 billion of investment activity year to date.

  • Net Income (Loss) Attributable to Common Stockholders per share was ($0.11).
  • Normalized Funds from Operations per share was $0.72.
  • Total Company year-over-year same-store cash Net Operating Income growth was 3.5%, above the high end of the guidance range.
  • Senior Housing Operating Portfolio segment year-over-year same-store cash NOI growth of nearly 9%, at the high end of the guidance range, driven by same-store revenue growth exceeding 10%.

Headline financials

Total Revenue

$1.02B

Previous: $919M+11.3%
EPS (adj)

$0.72

Previous: $0.73-1.4%
Capital Expenditures

-$613M

Previous: -$248M-147.4%
Free Cash Flow

-$654M

Previous: -$160M-310.2%
Net Income

-$41.2M

Previous: $88.3M-146.7%
Operating Income

$91.3M

Previous: $86.5M+5.5%
Gross Profit

$447M

Previous: $424M+5.4%
Cash & Equivalents

$127M

Previous: $234M-45.7%
Total Assets

$24.6B

Previous: $23.5B+4.8%
Stock-Based Comp

$6.81M

Previous: $5.39M+26.2%

Revenue & EPS history

Ventas · Revenue · Quarterly

$1.02B

Q2 2022+11.3%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ventas · $819M total across 4 segments · Q2 2022

  • Resident fees and services
    $658M+22.8%
  • Triple-net leased properties
    $149M-6.2%
  • Income from loans and investments
    $10.8M-39.1%
  • Interest and other income
    $1.17M+99.3%

Forward guidance

The Company currently expects to report third quarter 2022 Attributable Net Income (Loss), Nareit FFO and Normalized FFO per share within the following ranges, which include $20 million (or $0.05 per share) of HHS grants received to date in the third quarter 2022.

Tailwinds

  • SHOP same-store cash NOI is expected to grow in the range of 9% to 15% 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 the expected combination of 250 to 300 basis points of occupancy growth and improved rates.
  • Year-over-year revenue growth is expected to be partially mitigated by continued broad inflationary expense pressure.
  • Sequential SHOP cash NOI is expected to outperform pre-pandemic seasonal patterns.
  • Office: Same-store cash NOI growth year-over-year is expected to be driven by contractual escalators and new leasing partially offset by expense growth and frictional vacancy in R&I.

Headwinds

  • Triple-Net: Same-store cash NOI growth year-over-year is driven by previously announced lease resolutions with senior housing triple-net tenants who were materially affected by the COVID-19 pandemic.
  • Interest Rates and Foreign Exchange: Rising interest rates on floating rate debt and a strengthening U.S. Dollar are expected to reduce Normalized FFO by approximately ($0.02) per share in the third quarter versus the second quarter 2022.
  • The Normalized FFO impact of third 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 guidance assumes no material changes in the impact of COVID-19 on the Company’s business. The trajectory and future impact of COVID-19 on various aspects of the business remain highly uncertain and may change rapidly.

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 Q2 2022

Historical avgQ2 2022

+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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