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1. Company Snapshot

1.a. Company Description

Ventas, an S&P 500 company, operates at the intersection of two powerful and dynamic industries – healthcare and real estate.As one of the world's foremost Real Estate Investment Trusts (REIT), we use the power of capital to unlock the value of real estate, partnering with leading care providers, developers, research and medical institutions, innovators and healthcare organizations whose success is buoyed by the demographic tailwind of an aging population.For more than twenty years, Ventas has followed a successful strategy that endures: combining a high-quality diversified portfolio of properties and capital sources to manage through cycles, working with industry leading partners, and a collaborative and experienced team focused on producing consistent growing cash flows and superior returns on a strong balance sheet, ultimately rewarding Ventas shareholders.


As of September 30, 2020, Ventas owned or managed through unconsolidated joint ventures approximately 1,200 properties.

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1.b. Last Insights on VTR

Ventas' recent performance was driven by strong Q3 results, with funds from operations (FFO) of $0.88 per share beating estimates. The company's senior housing operating portfolio (SHOP) experienced double-digit growth, fueled by broad-based demand. Ventas also reported higher revenues and same-store cash NOI. Additionally, Sequoia Financial Advisors LLC increased its holdings in the company by 12.2%. The company's diversified tenant base and outpatient medical portfolios also contributed to its growth. Ventas' solid balance sheet and accretive investments further supported its performance.

1.c. Company Highlights

2. Ventas Delivers Strong Q3 2025 Earnings, Driven by SHOP Growth

Ventas reported excellent financial performance in Q3 2025, with normalized FFO per share growing 10% year-over-year to $0.88, beating analyst estimates of $0.87. Total company Same-Store Cash NOI increased 8%, driven by the SHOP segment, which delivered 16% NOI growth year-over-year. The company's SHOP percentage of NOI has increased to represent half of its business, with a significant occupancy and NOI upside potential in its 85% occupied U.S. SHOP portfolio.

Publication Date: Nov -02

📋 Highlights
  • SHOP Segment Growth:: U.S. SHOP Same-Store NOI surged 19% YoY, with 85% occupancy and $2.5B target for 2025 senior housing investments.
  • FFO & NOI Expansion:: Normalized FFO per share rose 10% YoY ($0.88) and full-year guidance raised to 9% growth, with Total Company Same-Store Cash NOI up 8%.
  • Portfolio Reconfiguration:: SHOP now accounts for 50% of total NOI (up 2,000 bps), driven by 215 acquisitions, 157 Triple-Net to SHOP conversions, and 307 community refreshes.
  • Liquidity & Leverage:: Net debt/EBITDA improved to 5.3x (from 6.3x), $4B liquidity, and $2.6B equity raised to fund 2025 investments, with $4.1B invested since mid-2024.
  • Margin & Occupancy Momentum:: SHOP margin expanded 200 bps YoY, with 15% midpoint guidance for Same-Store NOI growth and 800 bps occupancy increase in independent living communities.

Financial Highlights

The company's net debt to EBITDA improved to 5.3x, a full turn from the previous year. Ventas has fully funded its $2.5 billion investment guidance for 2025 with $2.6 billion of equity raised, including $0.5 billion of unsettled equity forwards. The company has over $4 billion of liquidity as of September 30, supporting its growth and financial flexibility.

SHOP Segment Performance

The SHOP segment continues to drive Ventas' growth, with 19% year-over-year NOI growth in the U.S. portfolio. The company's deliberate actions to convert underperforming communities from the Triple-Net structure to SHOP have contributed to the strong performance. As Debra Cafaro stated, "We are doing both, expecting 2025 to be our fourth year of double-digit SHOP NOI growth, and anticipating closing $2.5 billion of private pay U.S. senior housing investments during the year."

Valuation and Outlook

With a P/E Ratio of 583.68 and an EV/EBITDA of 17.17, the market is pricing in significant growth expectations for Ventas. Analysts estimate next year's revenue growth at 9.6%. Given the company's strong Q3 performance and guidance, it appears that Ventas is on track to meet or exceed these expectations. The company's Net Debt / EBITDA ratio of 5.3x is a significant improvement from the previous year, indicating a healthy balance sheet.

Investment Strategy

Ventas is accelerating its senior housing investment activities to expand its SHOP portfolio and increase its enterprise growth rate. The company is targeting unlevered IRRs in the low to mid-teens and using the market asset operator framework to determine where to focus. With a robust pipeline of quality investment opportunities, Ventas is well-positioned to continue delivering superior performance for its shareholders.

3. NewsRoom

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Seniors Housing REITs: Generational Compounding Opportunity

Dec -04

Source: seekingalpha.com

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Ventas (NYSE:VTR) Reaches New 1-Year High – Time to Buy?

Nov -30

Source: defenseworld.net

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Reviewing Ventas (NYSE:VTR) and CareTrust REIT (NYSE:CTRE)

Nov -29

Source: defenseworld.net

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Are You Looking for a Top Momentum Pick? Why Ventas (VTR) is a Great Choice

Nov -27

Source: zacks.com

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B&I Capital AG Acquires 7,350 Shares of Ventas, Inc. $VTR

Nov -27

Source: defenseworld.net

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AlphaCore Capital LLC Makes New Investment in Ventas, Inc. $VTR

Nov -26

Source: defenseworld.net

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The State Of REITs: November 2025 Edition

Nov -18

Source: seekingalpha.com

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Ventas Stock Rallies 16.2% in Three Months: Will It Continue to Gain?

Nov -18

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Senior Housing Operating Portfolio

Expected Growth: 4.5%

Ventas' Senior Housing Operating Portfolio growth of 4.5% is driven by increasing demand for senior living communities, driven by demographics (aging population), need for healthcare services, and rising acuity levels. Additionally, strategic partnerships, investments in technology, and operational efficiencies contribute to the growth.

Outpatient Medical and Research Portfolio

Expected Growth: 4.8%

Ventas' Outpatient Medical and Research Portfolio growth of 4.8% is driven by increasing demand for outpatient services, expansion of healthcare networks, and investments in medical research facilities. Additionally, the shift towards value-based care and aging population demographics contribute to the segment's growth.

Triple-Net Leased Properties

Expected Growth: 5.2%

Ventas, Inc.'s 5.2% growth in Triple-Net Leased Properties is driven by increasing demand for healthcare services, aging population, and strategic acquisitions. Additionally, the company's diversified portfolio, strong tenant credit, and long-term leases contribute to stable cash flows and growth. Furthermore, Ventas' focus on high-quality properties and proactive asset management also support the segment's growth.

Non-Segment

Expected Growth: 4.2%

Ventas, Inc.'s Non-Segment growth of 4.2% is driven by strategic investments in healthcare technology, expansion of medical office buildings, and increasing demand for senior housing. Additionally, the company's focus on diversifying its portfolio and strengthening its balance sheet has contributed to this growth.

7. Detailed Products

Senior Housing

Ventas, Inc. owns and operates senior housing communities that provide independent living, assisted living, and memory care services to seniors.

Medical Office Buildings

Ventas, Inc. owns and operates medical office buildings that provide healthcare services, including outpatient surgery, imaging, and physician practices.

Life Science Properties

Ventas, Inc. owns and operates life science properties that provide laboratory and research space for biotechnology, pharmaceutical, and medical device companies.

Hospital Investments

Ventas, Inc. owns and operates hospitals that provide acute care services, including emergency department, surgical, and rehabilitation services.

Outpatient Facilities

Ventas, Inc. owns and operates outpatient facilities that provide services such as ambulatory surgery, imaging, and physical therapy.

8. Ventas, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ventas, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified portfolio of healthcare properties and its ability to adapt to changing market trends.

Bargaining Power Of Customers

Ventas, Inc.'s customers, primarily healthcare providers, have limited bargaining power due to the company's strong market position and the lack of alternative options for healthcare properties.

Bargaining Power Of Suppliers

Ventas, Inc. relies on a diverse range of suppliers for its operations, but the bargaining power of suppliers is moderate due to the company's scale and negotiating power.

Threat Of New Entrants

The threat of new entrants is low for Ventas, Inc. due to the high barriers to entry in the healthcare real estate industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The healthcare real estate industry is highly competitive, with several large players competing for market share, driving up the intensity of rivalry for Ventas, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.71%
Debt Cost 4.72%
Equity Weight 41.29%
Equity Cost 10.21%
WACC 6.99%
Leverage 142.19%

11. Quality Control: Ventas, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Omega Healthcare

A-Score: 6.8/10

Value: 3.5

Growth: 3.0

Quality: 8.5

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
CareTrust REIT

A-Score: 6.7/10

Value: 2.2

Growth: 4.4

Quality: 7.9

Yield: 9.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Sabra Health Care REIT

A-Score: 6.5/10

Value: 4.1

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Healthcare Realty Trust

A-Score: 5.9/10

Value: 4.4

Growth: 2.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Ventas

A-Score: 5.4/10

Value: 1.3

Growth: 3.6

Quality: 4.2

Yield: 7.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Medical Properties Trust

A-Score: 5.3/10

Value: 6.7

Growth: 0.9

Quality: 3.2

Yield: 10.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

80.61$

Current Price

80.61$

Potential

-0.00%

Expected Cash-Flows