Housing sector

Ventas’ fourth quarter results improve as senior housing sector recovers from pandemic (NYSE:VTR)

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Sales (NYSE: VCR) Fourth quarter results reflected the recovery in the retirement home industry as rates and revenues increased for the first time since the start of the pandemic. Same-store revenue increased 3.3% year-over-year on higher occupancy and stronger pricing.

Its forecast for the first quarter of normalized FFO per share of $0.76 to $0.80 beats analysts’ average estimate of $0.70. It assumes growth in the company’s total comparable store cash net operating income of 6.0% to 9.0%.

“In the first quarter of 2022, we expect 10% revenue growth from our SHOP (senior housing operating portfolio) business, supported by record prospects. Additionally, supported by favorable supply fundamentals and market demand, we expect sustained SHOP NOI improvement through 202,” said Ventas President and CEO Debra A. Cafaro.

Fourth Quarter Normalized FFO per Share of $0.73, of which $0.015 per Share Benefits from HHS Grants, Exceeds Consensus Estimate of $0.71; the number of Q4 remained unchanged compared to Q3 2021

Still, shares of Ventas (VTR) fell 0.6% in aftermarket trading.

Q4 SHOP average same-store occupancy of 83.4% increased from 82.2% in Q3.

Same-store NOI was stable compared to Q3, including anticipated high labor costs.

Total Q4 spending of $1.09B increased from $1.06B in Q3 and $849.7M in Q4 2020.

Conference call February 18 at 10:00 a.m. ET.

Previously Ventas FFO of $0.73 beat $0.02, Revenue of $1.02 billion beat $76.51 million