Ventas Inc (VTR) Q3 2023 Earnings: Net Loss Per Share of $0. ...
Ventas Inc (NYSE:VTR) reports a net loss per share of $0.18 in Q3 2023, primarily due to non-cash impairments on real estate assets held for sale.
Normalized Funds from Operations (FFO) per share increased by 6% year-over-year to $0.75, excluding HHS grants received in Q3 2022.
Senior Housing Operating Portfolio (SHOP) led the company's growth with significant occupancy increases across all geographies and product types.
Ventas raised its 2023 Normalized FFO per share guidance midpoint.
On November 2, 2023, Ventas Inc (NYSE:VTR) released its third-quarter earnings report for the period ending September 30, 2023. The company reported a net loss per share of $0.18, primarily driven by the recognition of $73 million ($0.18 per share) of non-cash impairments on real estate assets held for sale. Despite this, the company's Normalized Funds from Operations (FFO) per share increased by 6% to $0.75 compared to the prior year, excluding $0.05 per share of HHS grants received in Q3 2022.
Financial Highlights
Ventas reported a Total Company Net Operating Income (NOI) year-over-year growth of 5.1% and Total Company Same-Store Cash NOI year-over-year growth of 7.9%. On a Same-Store Cash NOI basis, SHOP grew more than 18% year-over-year, led by the U.S. which grew approximately 24% year-over-year. This growth was driven by broad-based occupancy gains, RevPOR growth, and moderating operating expense growth, resulting in margin expansion of 230 basis points.
The company's Attributable Net (Loss) Income was ($0.18) per share, a significant change from $0.00 in Q3 2022. The Nareit FFO per share was $0.73, a decrease of 3% from $0.75 in the same period last year. The Normalized FFO per share was $0.75, a decrease of 1% from $0.76 in Q3 2022.
Company Performance and Future Outlook
Ventas's CEO, Debra A. Cafaro, commented on the company's performance, stating,
Ventas delivered a strong third quarter, reflecting attractive property growth across all business segments. Our senior housing operating portfolio (SHOP) led the way, with outstanding occupancy increases from the beginning to the end of the third quarter, across all geographies and product types, including independent living."
The company is well-positioned to capture additional upside, with a high-quality diversified portfolio serving the needs of the nation's large and growing aging population. Ventas has updated its outlook for Attributable Net Income and Nareit FFO per share and increased the midpoint of its Normalized FFO per share guidance for the full year.
Corporate Sustainability and Capital Markets Activity
Ventas continues to demonstrate strong environmental, social, and governance practices, as outlined in its 2022-2023 Corporate Sustainability Report. The company's long-term success is supported by its scale, strong liquidity, and access to multiple sources of attractive capital. Ventas has raised approximately $2.8 billion year-to-date at cash interest rates averaging approximately 4.9%, which has been used to proactively refinance 2023 and 2024 maturing debt and improve the company's floating rate debt exposure.
Explore the complete 8-K earnings release (here) from Ventas Inc for further details.
This article first appeared on GuruFocus.
