With a market cap of $29.8 billion, Chicago, Illinois-based Ventas, Inc. (VTR) is a leading healthcare real estate investment trust (REIT) with a diverse portfolio of approximately 1,350 properties across the U.S., Canada, and the U.K. Focused on serving the growing aging population, Ventas owns and operates senior housing communities, medical office buildings, life science research centers, and healthcare facilities.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Ventas fits this criterion perfectly. Backed by operational expertise, data-driven insights, and strong financials, Ventas is dedicated to creating environments that help people live longer, healthier, and happier lives.
Shares of the seniors housing REIT are trading nearly 4% below its 52-week high of $71.04. Ventas has increased 15.1% over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 1.7% dip over the same time frame.
In the longer term, Ventas stock is up 15.8% on a YTD basis, outperforming DOWI’s marginal rise. Moreover, shares of VTR have surged 57.3% over the past 52 weeks, compared to DOWI’s 7.9% return over the same time frame.
VTR has been trading mostly above its 50-day and 200-day moving averages since last year.
Shares of VTR climbed 8.3% following its Q4 2024 results on Feb. 12, with an FFO of $0.81 per share topping estimates and rising 6.6% year-over-year. Revenue hit $1.3 billion, beating the estimate and growing 10.5%, driven by 16.9% same-store cash NOI growth in the Senior Housing Operating Portfolio (SHOP) segment and a 310 bps occupancy increase to 87.4%, and 4.4% RevPOR growth.
Strong 2025 guidance projecting normalized FFO per share of $3.35 - $3.46 and 11% - 16% SHOP NOI growth boosted investor confidence. A 6.7% dividend hike to $0.48 per share further fueled the rally.
However, Ventas has lagged behind its rival, Welltower Inc. (WELL), which has surged 63.2% over the past 52 weeks and 18.2% on a YTD basis.
Due to VTR’s outperformance relative to the Dow, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 20 analysts covering the stock, and as of writing, it is trading below the mean price target of $74.74.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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