Ventas Posts Strong 2024 Earnings Results, Sets Sights on Continued Growth in Senior Housing
Ventas, a leading healthcare real estate investment trust (REIT), has reported strong earnings results for the fourth quarter and full year 2024. The company's Chairman and CEO, Debra A. Cafaro, highlighted the impressive performance during the recent conference call, citing significant growth in senior housing net operating income (NOI) and a substantial increase in normalized funds from operations (FFO) per share.
Ventas delivered full-year normalized FFO per share of $3.19, surpassing the high end of its guidance range. The company's same-store cash NOI grew nearly 16% in the SHOP segment, marking the third consecutive year of double-digit growth. Occupancy rates also improved, with year-over-year occupancy increasing by 300 basis points in Ventas' same-store communities.
Cafaro attributed the strong results to a combination of factors, including compelling secular demand, de minimis supply, and Ventas' advantaged platform in senior housing. The company's data analytics, operator relationships, and experienced team enabled it to capitalize on opportunities and make value-creating investments focused on senior housing.
In 2024, Ventas completed over $2 billion in accretive investments in the SHOP segment, which met its operational and financial criteria. These investments increased the company's participation in the multiyear growth opportunity through expansion of its senior housing portfolio, added accretion, improved FFO per share growth rate, accelerated deleveraging, and created value.
Ventas' scale grew significantly to $2.2 billion in annualized EBITDA in 2024, with SHOP reaching 43% of the company's NOI and leverage improving to enter its long-term targeted range by year-end. The company also achieved nearly 8% total company same-store cash NOI growth in 2024, driven by compounding NOI growth from outpatient medical research and triple net lease portfolios.
Looking forward, Ventas is excited about the opportunities ahead and plans to continue driving SHOP growth and expanding its SHOP footprint with accretive investments focused on senior housing. The company's VIM platform, which has over $5 billion in assets under management since its inception in 2020, will also play a key role in creating value for stockholders.
Ventas' increased quarterly dividend by 7% to stockholders, reflecting the company's commitment to delivering strong returns to its stakeholders. With its momentum and positive outlook, Ventas is well-positioned to capitalize on the multiyear growth opportunity in senior housing and drive long-term value creation for its stockholders.
