What's in the Offing for Ventas Stock This Earnings Season?

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What's in the Offing for Ventas Stock This Earnings Season?

Ventas, Inc. VTR is scheduled to report first-quarter 2026 results on April 27, after market close. The quarterly results are likely to display year-over-year growth in revenues and normalized funds from operations (FFO) per share.

In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 89 cents, meeting the Zacks Consensus Estimate. The quarterly results reflected a year-over-year increase in same-store cash net operating income on strong performance in the senior housing operating portfolio (SHOP) and outpatient medical research (OM&R) portfolio.

Over the preceding four quarters, Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate on three occasions and missed once, with the average beat being 1.49%. The graph below depicts this surprise history:

 

Ventas, Inc. Price and EPS Surprise

Ventas, Inc. Price and EPS Surprise

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

 

Factors at Play

In the first quarter, Ventas’ 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.

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

However, the triple-net leased properties are likely to have been affected during the to-be-reported quarter. Further, high interest expenses are expected to have cast a pall on the company’s performance to some extent.

VTR’s Q1 Projections

The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $1.58 billion, implying a 16.7% increase from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for first-quarter resident fees and services is pegged at $1.22 billion, suggesting an increase from $968.9 million reported in the year-ago period.

The consensus mark for OM&R portfolio rental income for the first quarter is pegged at $228.9 million, indicating an increase from $221.3 million reported in the year-ago period.

Ventas’ activities during the soon-to-be-reported quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for first-quarter FFO per share has increased a cent to 91 cents over the past two months. The figure implies an increase of 8.3% from the year-ago quarter’s reported number.

However, the Zacks Consensus Estimate for first-quarter triple-net leased properties' rental income is pegged at $125 million, suggesting a decrease from $156.1 million reported in the year-ago period.

What Our Quantitative Model Predicts

Our proven model is likely to predict a surprise in terms of FFO per share for Ventas this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

Ventas currently has an Earnings ESP of +0.62% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT industry — BXP, Inc. BXP and Cousins Properties CUZ — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

BXP, scheduled to report quarterly numbers on April 28, has an Earnings ESP of +0.17% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins Properties is slated to report quarterly numbers on April 29. VTR has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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Ventas, Inc. (VTR): Free Stock Analysis Report
 
BXP, Inc. (BXP): Free Stock Analysis Report
 
Cousins Properties Incorporated (CUZ): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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