NYSE$VTR

Ventas Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Ventas experienced growth in Q3 2022, driven by strong performance in the SHOP segment and overall same-store cash NOI growth.

Ventas reported a net income attributable to common stockholders per share of $0.00 and Normalized FFO per share of $0.76 for Q3 2022. The company's SHOP segment saw a 13% year-over-year increase in same-store cash NOI, contributing to a total company same-store cash NOI growth of 4.8%.

  • Net Income Attributable to Common Stockholders per share was $0.00.
  • Normalized FFO per share was $0.76, including $0.05 per share from HHS grants.
  • Total Company year-over-year same-store cash NOI grew by 4.8%.
  • SHOP segment year-over-year same-store cash NOI grew by 13%, driven by revenue growth of approximately 9%.

Headline financials

Total Revenue

$1.04B

Previous: $976M+6.3%
EPS (adj)

$0.76

Previous: $0.73+4.1%
Capital Expenditures

-$726M

Previous: -$2.53B+71.3%
Free Cash Flow

-$723M

Previous: -$2.47B+70.7%
Net Income

$3.06M

Previous: $62.8M-95.1%
Operating Income

$96.1M

Previous: $63.1M+52.4%
Gross Profit

$466M

Previous: $452M+3.0%
Cash & Equivalents

$145M

Previous: $144M+1.0%
Total Assets

$24.3B

Previous: $25B-3.0%

Revenue & EPS history

Ventas · Revenue · Quarterly

$1.04B

Q3 2022+6.3%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Ventas · $682M total across 3 segments · Q3 2022

  • Resident fees and services
    $669M+19.8%
  • Income from loans and investments
    $12.7M-55.9%
  • Interest and other income
    $489K+17.3%

Forward guidance

The Company expects to report fourth quarter 2022 Attributable Net Income to Common Stockholders, Nareit FFO and Normalized FFO per share and same-store cash NOI growth within the provided ranges.

Tailwinds

  • SHOP same-store cash NOI is expected to grow in the range of 15% to 21% 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 continued strong rate growth and occupancy growth of 100 to 150 basis points.
  • Same-store cash NOI growth year-over-year is expected to be driven by occupancy growth, contractual escalators and favorable expense controls for Office segment.
  • Same-store cash NOI growth is expected to be driven by contractual escalators for Triple-Net segment.
  • The Company is expected to earn its first promote revenue from its third-party institutional capital management business (VIM), approximating $0.01 per share in the fourth quarter.

Headwinds

  • Rising interest rates on floating rate debt and a strengthening U.S. dollar are expected to reduce Normalized FFO by ($0.02) per share in the fourth quarter versus the third quarter 2022.
  • Year-over-year revenue growth is expected to be partially mitigated by continued broad inflationary expense pressure.
  • The Normalized FFO impact of fourth 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 Company does not expect to receive any HHS grants in the fourth 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 Q3 2022

Historical avgQ3 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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