Ventas Earnings: Fourth-Quarter Results and 2024 Outlook Both Relatively in Line With Expectations

Ventas reported fourth-quarter results that were in line with our estimates, leading us to reaffirm our $72 fair value estimate for the no-moat company. Same-store occupancy improved 110 basis points sequentially to 84.9%, better than our estimate of a 40-basis-point sequential gain. Rental rates for the same-store portfolio were up 4.9% year over year, leading to same-store revenue growth of 7.0% that was slightly ahead of our 6.5% estimate. Meanwhile, same-store operating expenses increased by 4.2%, leading to same-store net operating income, or NOI, growth of 14.9% that was slightly better than our 12.8% estimate. Ventas also reported that same-store NOI grew 1.4% for the triple-net senior housing segment, 2.1% for the medical office segment, and 3.5% for the life science segment. Combined, same-store NOI for the total company was up 6.6% in the fourth quarter, in line with our estimate of 6.9% total growth. The company reported normalized funds from operations, or FFO, of $0.76 per share for the fourth quarter, which was a penny better than our $0.75 estimate.