Ventas Q4 2024: Navigating Contradictions in Senior Housing, Investment Strategy, and Medical Office Occupancy

These are the key contradictions discussed in Ventas' latest 2024Q4 earnings call, specifically including: Senior Housing Occupancy Expectations, Investment Strategy, and Medical Office Building (MOB) Occupancy Trajectory:



Strong Financial Performance and Shareholder Returns:
- Ventas delivered full year normalized FFO per share of $3.19, exceeding the high end of its guidance range.
- The company increased its quarterly dividend by 7%, reflecting its strong financial performance and confidence in future growth.

Senior Housing Growth and Strategic Investments:
- Ventas' senior housing same-store cash NOI grew nearly 16%, marking the third consecutive year of double-digit growth.
- The company completed over $2 billion in accretive investments focused on senior housing, expanding its portfolio and enhancing FFO per share growth rate.

Strong Occupancy and Demand Dynamics:
- Same-store SHOP occupancy increased 300 basis points, driven by strong secular demand and minimal supply growth.
- The surge in the 80+ age group is projected to grow by 28% in the next five years, supporting continued demand for senior housing.

Capital Allocation and Financial Strategy:
- Ventas achieved a net debt-to-EBITDA ratio of 6.0x, entering its long-term targeted range, driven by senior housing growth.
- The company raised $2.2 billion in total equity in 2024, maintaining strong liquidity for future growth opportunities.