NYSE$VTR

Ventas Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced results for the fourth quarter and full year ended December 31, 2019.

Ventas, Inc. reported solid enterprise results for Q4 2019, benefiting from its diverse high-quality portfolio and effective capital markets execution. While the Senior Housing business faced challenges, actions are being taken to improve performance and position the company for future success.

  • Medical Office, Healthcare and Research & Innovation portfolios grew and performed well.
  • Team is sharply focused on achieving goals and delivering value for stakeholders as they enter 2020.
  • Well-positioned to benefit from expected improvement in senior housing fundamentals.
  • Actions are being taken to improve performance and position Ventas for success and growth

Headline financials

Total Revenue

$996M

Previous: $923M+7.9%
EPS (adj)

$0.93

Previous: $0.96-3.1%
Capital Expenditures

$157M

Previous: $58.8M+166.4%
Free Cash Flow

$198M

Previous: $305M-35.2%
Net Income

$12.9M

No prior period
Operating Income

$12M

No prior period
Gross Profit

$515M

Previous: $496M+3.9%
Cash & Equivalents

$106M

Previous: $72.3M+47.2%
Total Assets

$24.7B

Previous: $22.6B+9.3%
Stock-Based Comp

$7.25M

Previous: $9.2M-21.2%

Revenue & EPS history

Ventas · Revenue · Quarterly

$996M

Q4 2019+7.9%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ventas · $214M total across 3 segments · Q4 2019

  • Triple-net leased properties
    $191M
  • Income from loans and investments
    $22.4M
  • Interest and other income
    $875K

Forward guidance

Ventas expects 2020 per share Normalized FFO, Nareit FFO and net income attributable to common stockholders, and same-store cash NOI growth, assuming no new investments and approximately $1.3 billion in divestitures and receipt of loan repayments (inclusive of $0.6 billion in proceeds arising from property contributions to seed the Fund), to range as follows:

Tailwinds

  • Office and NNN Healthcare portfolio to contribute an incremental $0.04 per share to its 2020 Normalized FFO
  • Total Senior Housing (NNN and SHOP) portfolio to contribute approximately the same amount per share of Normalized FFO in 2020 as it did in the fourth quarter 2019 annualized.
  • Proceeds from the dispositions will be used to fund future growth through investment in $0.6 billion of high-quality developments and redevelopment projects in 2020, principally in the Office segment.

Headwinds

  • Full year SHOP year over year same-store NOI growth is projected to be negative in 2020 as a result of the trajectory of the business in the second half of 2019 and the resulting lower occupancy start point in January 2020, together with the impact of cumulative supply.
  • Capital recycling, including the anticipated sale of non-core senior housing assets ($0.6 billion), as well as other dispositions and loan repayments ($0.2 billion), is expected to be approximately ($0.05) dilutive to earnings in 2020.
  • While the Fund is expected to be accretive to Ventas earnings as it scales assets under management, it will initially be dilutive to the Company by ($0.03) per share in 2020.
  • The Company’s 2020 guidance is based on a number of other assumptions that are subject to change and many of which are outside the control of the Company.
  • There can be no assurance that the Company will achieve these results.

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 Q4 2019

Historical avgQ4 2019

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro