Ventas, Inc. VTR is scheduled to report third-quarter 2024 results on Oct. 30, after market close. The quarterly results are likely to display year-over-year growth in revenues and normalized funds from operations (FFO) per share.

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In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 80 cents, beating the Zacks Consensus Estimate by 1.3%. The quarterly results reflected better-than-anticipated revenues. Ventas’ same-store cash net operating income increased year over year on strong performance across the portfolio.

Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met in the remaining period, with the average beat being 2.01%. The graph below depicts this surprise history:

 

Ventas, Inc. Price and EPS Surprise

Ventas, Inc. price-eps-surprise | Ventas, Inc. Quote

 

Factors at Play

In the third quarter, Ventas’ senior housing operating portfolio (SHOP) is likely to have benefited from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is generally higher than the average population. With the segment witnessing positive net move-ins, occupancy is expected to have remained high.

The increasing life expectancy of the U.S. population is likely to have fueled the demand for life-science assets. Benefiting from this positive trend, Ventas’ research portfolio is anticipated to have fared well during the to-be-reported quarter.

A well-diversified tenant base with long-term leases is expected to have contributed well to stable rental revenue generation, boosting the top line.

The consensus mark for outpatient medical and research portfolio rental income for the third quarter is pegged at $218.6 million, indicating growth from $226.3 million reported in the year-ago period.

The Zacks Consensus Estimate for third-quarter resident fees and services is pegged at $830.7 million, suggesting an increase from $754.4 million reported in the year-ago period.

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $1.21 billion, implying a 5.1% increase from the prior-year quarter’s reported figure.

Ventas is likely to have continued with its accretive investments in the research portfolio during the quarter, backed by a healthy balance sheet position.

However, the triple-net leased properties segment is likely to be affected during the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter triple-net leased rental income is pegged at $150 million, suggesting a decrease from $159.8 million reported in the year-ago period.