Ventas (NYSE: VTR) is focused on expanding and strengthening its senior housing portfolio with improvements and growth in its operating partners. The company’s SHOP segment has an average occupancy rate of 84% and operating margins of about 27%. With plans to increase occupancy to 88% and margins to 30%, Ventas has identified $140 million of NOI upside. CEO Debra Cafaro anticipates a 24% growth in the target resident base aged 80 and above in the next five years, with favorable market conditions.
Year to date, Ventas has invested $350 million in senior housing, with plans to reach $750 million by year-end. The company is also enhancing its Ventas Operational Insights data platform, leading to improved operational results. Ventas sees a multi-year growth opportunity in its senior housing portfolio, reporting FFO of 80 cents per share in the second quarter of 2024.
With positive results in the second quarter, Ventas’ SHOP segment grew same-store NOI by 15.2% compared to the previous year. The company’s focus on the Ventas Operational Insights platform has led to improved occupancy growth in all communities. Ventas is investing in digital marketing efforts and has seen a significant increase in move-ins.
Looking ahead, Ventas aims to expand its senior housing investments, with visibility on $400 million of opportunities. The company remains optimistic about the strong fundamentals of senior housing and the excellent returns it has seen so far.
