Ventas, Inc. (VTR) Q2 2025 Earnings Summary

Executive Summary

Q2 2025 delivered broad-based growth with total revenues of $1.421B, GAAP EPS of $0.15, Nareit FFO/share of $0.86, and Normalized FFO/share of $0.87; SHOP Same-Store Cash NOI rose 13% YoY on 8% cash operating revenue growth and 240 bps average occupancy gain .
Guidance raised: Normalized FFO/share midpoint to $3.44 (from $3.41) and Nareit FFO/share range to $3.38–$3.43; 2025 senior housing investment volume increased to $2.0B (from $1.5B) .
Balance sheet strength improved: Net Debt/Further Adjusted EBITDA fell to 5.6x; liquidity reached $4.7B, aided by equity raised and proactive refinancing of 2025 maturities with $500M senior notes at 5.1% .
Catalysts: multi-year secular demand tailwinds in senior housing, price/volume optimization via Ventas OI™, and pipeline-driven external growth; potential near-term stock reactions tied to SHOP occupancy execution in key selling season and accretive deal timing .

What Went Well and What Went Wrong

What Went Well

SHOP Same-Store Cash NOI up 13% YoY; revenue growth strengthened to 8% YoY, driven by 5% RevPOR and 240 bps average occupancy gains; June sequential occupancy +60 bps with “second highest” monthly move-ins in 5+ years .
Guidance raised again; Normalized FFO/share midpoint to $3.44 and investment volume to $2.0B, funded largely with existing unsettled forward equity commitments, signaling confidence in sustained growth .
Outpatient medical showed leasing momentum (1M sqft executed, 86% retention) and occupancy improvements to 90.1%, positioning for stronger H2 NOI growth .

What Went Wrong

Research (R&I) same-store NOI down ~~1% YoY (~~$100K) due to lower rents on innovation flex tenants; early-stage biotech funding remains uneven despite “glimmers” of improvement .
Dispositions of non-strategic post-acute assets create ~$0.01 FFO headwind per quarter versus Q2, tempering sequential FFO despite SHOP strength .
Competitive acquisition environment led to modest cap-rate compression (year-one yields drifting to low-7% from mid-7%); requires continued platform advantages to maintain low-to-mid-teens unlevered IRRs .

Financial Results

Core P&L and Per-Share Metrics vs Prior Periods and Estimates

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenues ($USD Millions)	$1,287.1	$1,358.1	$1,420.9
GAAP EPS (Attributable Net Income per share)	$0.13	$0.10	$0.15
Nareit FFO per share	$0.85	$0.85	$0.86
Normalized FFO per share	$0.81	$0.84	$0.87
Net Debt / Further Adjusted EBITDA (x)	6.0x	5.7x	5.6x

Actual vs S&P Global Consensus

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue Actual ($USD Millions)	$1,287.1	$1,358.1	$1,420.9
Revenue Consensus Mean ($USD Millions)	$1,254.1*	$1,315.3*	$1,370.3*
GAAP EPS Actual ($)	$0.13	$0.10	$0.15
GAAP EPS Consensus Mean ($)	$0.0507*	$0.0736*	$0.1358*

Values with asterisk (*) retrieved from S&P Global.

Highlights: Q2 2025 beat on both revenue (+$50.6M vs consensus) and EPS (+$0.014 vs consensus)* .

Segment Same-Store Cash NOI Breakdown

Segment	Q2 2024 ($000)	Q1 2025 ($000)	Q2 2025 ($000)	YoY Growth (Q2)
SHOP	$199,460	$220,533	$226,068	13.3%
OM&R	$133,676	$137,344	$135,912	1.7%
NNN	$122,149	$127,561	$123,368	1.0%
Total	$455,285	$485,438	$485,348	6.6%

KPIs

KPI	Q2 2025	Context
SHOP Same-Store Cash Operating Revenue growth	8% YoY	Driven by 5% RevPOR growth and 240 bps avg occupancy gains
SHOP June sequential occupancy	+60 bps	Second-highest monthly move-ins in 5+ years
OM outpatient occupancy	90.1%	+20 bps seq and +30 bps YoY; strong leasing (1M sqft), 86% retention
Liquidity	$4.7B	Revolver, cash, and unsettled forward equity
Net Debt / Further Adjusted EBITDA	5.6x	Improved from 6.0x at YE 2024 and 5.7x in Q1
Senior housing investments YTD	$1.1B	Target raised to $2.0B for 2025
Equity raised YTD	$1.1B settled (16.4M shares); $0.7B unsettled forwards outstanding
Weighted average diluted shares (FY guidance)	461M (current) vs 460M (prior)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Attributable Net Income/share	FY 2025	$0.43–$0.53; midpoint $0.48	$0.47–$0.52; midpoint $0.50	Narrowed; midpoint raised
Nareit FFO/share	FY 2025	$3.28–$3.38; midpoint $3.33	$3.38–$3.43; midpoint $3.41	Raised
Normalized FFO/share	FY 2025	$3.36–$3.46; midpoint $3.41	$3.41–$3.46; midpoint $3.44	Midpoint raised
Senior housing investment volume	FY 2025	$1.5B	$2.0B	Raised
G&A expense	FY 2025	~$172M midpoint	~$178M midpoint	Raised
Interest expense	FY 2025	~$618M midpoint	~$615M midpoint	Lowered
Interest & other income	FY 2025	~$11M midpoint	~$15M midpoint	Raised
Weighted avg diluted shares	FY 2025	460M	461M	Raised
Disposition proceeds	FY 2025	~$200M	~$200M	Maintained
FAD capex	FY 2025	~$285M midpoint	~$285M midpoint	Maintained

Bridge drivers: +$0.02 from lower net interest expense; +$0.01 from increased senior housing investments; FX/G&A/other net neutral .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Ventas OI™/Price–Volume Optimization	Emphasis on data-driven rate and occupancy execution; 11 consecutive quarters of double-digit SHOP NOI growth	Stronger execution with dynamic pricing and higher move-in rents; RevPOR +5% YoY; June move-ins near record	Improving
Senior housing supply–demand	Record-low starts (Q1), secular demand from 80+ cohort	Starts ~2,000 units in Q2; multi-year occupancy/NOI runway	Strengthening tailwinds
Outpatient medical	Steady compounding; escalators ~3%; aim for higher occupancy	Occupancy 90.1%, 1M sqft leasing, 86% retention; escalators ~3%	Improving
Research (R&I)	Stable credit tenant base; early-stage biotech challenged	Same-store NOI down <1%; funding “glimmers” but uneven	Mixed
External growth/returns	$2.8B closed since 2024; yields ~7.7%; low–mid-teens IRRs	$1.1B YTD closed; year-one yields ~7.2%; IRRs remain low–mid-teens	Competitive; still accretive
Brookdale conversion	Plan to convert 45 NNN to SHOP; double NOI over time	Transitions begin H2; majority impact in 2026; operators engaged; portfolio 78% occupied	Execution underway

Management Commentary

“We are experiencing an unprecedented multiyear growth opportunity in senior housing driven by secular demand... and historically low new supply.” – Debra A. Cafaro, Chairman & CEO
“Our SHOP communities in the U.S. delivered 18% same-store cash NOI growth in Q2, adjusting for a tax refund... June move-ins reached their second highest level of any month in over five years.” – Management prepared remarks .
“We’ve raised our full-year 2025 senior housing investment volume guidance to $2 billion... with low to mid-teens unlevered IRR expectations.” – Management prepared remarks .
“We expect today’s significant supply constraints to persist... elongate Ventas’ multi-year occupancy and NOI growth opportunity well into the future.” – Management prepared remarks .

Q&A Highlights

SHOP occupancy trajectory: sequential June +60 bps; July expected “as good or better,” sustaining strong selling season momentum .
Acquisition market: hit-rate sustained despite rising competition; year-one yields drifting to low-7% but IRRs remain low–mid-teens on newer, higher-quality assets in strong markets .
Outpatient medical: historical max occupancy ~95%; current ~90–91% with ~3% escalators; goal to push closer to structural upper bound .
Brookdale conversion modeling: transitions sprinkled in Q4 2025, bulk financial impact in 2026; goal to double NOI over time with refresh capex and aligned operator agreements .
Guidance phasing: H2 growth led by SHOP; sequential headwinds from dispositions (~$0.01/quarter) and higher refinance rates offset by lower net interest expense .

Estimates Context

Q2 2025 results exceeded S&P Global consensus: Revenue $1.4209B vs $1.3703B*; GAAP EPS $0.15 vs $0.1358*; continuing a pattern of beats in Q1 and Q4 2024 (both revenue and EPS)* .
Implications: Consensus likely to move up for FY Normalized FFO and SHOP NOI given raised midpoint and stronger-than-expected June/July occupancy momentum; watch for estimate revisions around OM outpatient acceleration and R&I stabilization .