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Ventas Posts Wider-Than-Expected Q4 Loss

Ventas, Inc. (VTR) has delivered mixed results for the fourth quarter of 2021, as earnings missed but revenues surpassed expectations. The company is a real estate investment trust that engages in the acquisition and ownership of senior housing and healthcare properties.

Ventas reported a net loss per share of $0.10, higher than the Street’s loss estimate of $0.03 per share. The company had reported earnings $0.29 per share in the year-ago period.

Revenue climbed 11% to $1.02 billion, beating analysts’ estimates of $999.4 million. The upside can be attributed to higher resident fees and services, along with interest and other income.

In the fourth quarter, same-store cash net operating income (NOI) decreased 6.5% year-over-year to $357.4 million. Segment-wise, same-store cash NOI for Senior Housing Operating Portfolio (SHOP) fell 21.3%. It increased 0.1% and 2.6%, respectively, for triple-net leased and office portfolios.

Debra A. Cafaro, the company’s Chairman and CEO, said, “As we look into 2022, the senior housing recovery is underway, with accelerating demand, strong rate increases and rapidly improving clinical conditions in our communities… Sustained strength in our attractive Medical Office and growing Life Science, Research & Innovation businesses, investment accretion and receipt of HHS Grants also contribute to our positive outlook in the first quarter.”

Outlook

For the first quarter of 2022, the company expects to post net income in the range of $0.07-$0.11 per share. Also, same-store cash NOI is expected to increase between 6% and 9% to $380-$391 million.

Further, Ventas projects first-quarter same-store SHOP revenue to increase about 10% year-over-year. SHOP NOI is expected to grow in the range of 6% to 15%.

Stock Rating

Following the results, BMO Capital analyst Juan C. Sanabria initiated a Hold rating on the stock with a price target of $60, implying 15.5% upside potential to current levels.

Sanabria said, “VTR had strong disposition execution on non-core assets, helping improve its portfolio. Senior housing (SH) demand remains strong with improved pricing, helping to offset labor costs, where we expect conditions to improve.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 6 Buys and 6 Holds. The Ventas stock price prediction of $58.29 implies 12.3% upside potential to current levels. Shares have gained 12.4% over the past year.

Blogger Opinion

TipRanks data shows that financial blogger opinions are 100% Bullish on Ventas, compared to a sector average of 73%.

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