VTR

It has been about a month since the last earnings report for Alexandria Real Estate Equities (ARE). Shares have added about 5.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Alexandria Real Estate Equities due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Alexandria reported second-quarter 2026 FFO, as adjusted, per share of $1.73, beating the Zacks Consensus Estimate of $1.65 by 4.9%. FFO declined 25.8% from $2.33 in the year-ago quarter. Revenues fell 13% year over year to $662.8 million but surpassed the consensus estimate of $649 million by 2.1%. The results benefited from leasing volume exceeding 1 million rentable square feet, strong tenant collections and continued development deliveries. Alexandria executed leases covering approximately 1 million RSF, up 60% from 647,356 square feet in the preceding quarter. The total also exceeded the second-quarter 2025 through first-quarter 2026 quarterly average of 952,365 RSF by roughly 87,000 RSF. Lease renewals and re-leasing accounted for 640,998 square feet. Leasing of previously vacant space totaled 329,148 square feet, while development and redevelopment leasing contributed 68,771 square feet. Existing tenants generated 68% of the reported quarter's leasing activity. Rental rates on lease renewals and re-leasing of space declined 0.7% during the second quarter, marking a sharp improvement from the 15% decrease recorded in the first quarter of 2026. On a cash basis, rental rates fell 4.3% compared with a 15.8% decline in the prior quarter. The tenant base continued to support cash-flow visibility. Investment-grade or publicly traded large-cap tenants generated 57% of annual rental revenues. Moreover, 97% of leases contained annual rent escalations, while the weighted-average remaining lease term stood at 7.7 years. Occupancy of operating properties was 86.9% as of June 30, 2026, down from 87.7% at the end of March 2026. The decline reflected previously disclosed lease expirations and the reclassification of space at 3000 Minuteman Road from redevelopment to operating. Executed leases covering 1.4 million RSF have not yet commenced. Including this space, occupancy would have been 90.9%. These leases are expected to generate approximately $69 million in annual rental revenues, with a weighted-average future occupancy date of November 2026. Same-property NOI decreased 10.6% year over year, while same-property NOI on a cash basis declined 8.6%. The drop was due to lower occupancy, primarily reflecting previously disclosed lease expirations with expected downtime. The company’s operating margin was 69%, while the adjusted EBITDA margin came in at 67%. Interest expense increased 16.4% year over year to $64.3 million, reflecting the impact of debt issued at higher rates and the repayment or repurchase of lower-cost borrowings. During the second quarter, Alexandria placed into service a 426,927-RSF development project occupied by Bristol Myers Squibb in San Diego. The property generated incremental annual NOI of $57 million. The company expects projects scheduled for delivery in the second half of 2026 to contribute approximately $42 million in incremental annual NOI. Alexandria ended the second quarter with $3.60 billion of liquidity and a weighted-average remaining debt term of 9.7 years. Only 6% of total debt matures through 2028. Net debt and preferred stock to adjusted EBITDA was 7.0X, while fixed-charge coverage was 3.3X on a quarter-annualized basis. The company is targeting a fourth-quarter 2026 annualized leverage ratio of 5.6 to 6.2. Alexandria expects dispositions, partial-interest sales and other capital sources to help improve leverage during the second half of 2026. Alexandria narrowed its 2026 adjusted FFO guidance to $6.35-$6.45 per share from $6.30-$6.50. The midpoint remained unchanged at $6.40, reflecting greater visibility into full-year results. The company maintained its year-end occupancy outlook of 86.2-87.8%. It also continues to expect same-property NOI to decline 8.5-10.5% and rental rates on renewals and re-leasing to decrease 1-9%. It turns out, estimates revision have trended downward during the past month. At this time, Alexandria Real Estate Equities has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Alexandria Real Estate Equities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Alexandria Real Estate Equities belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Ventas (VTR), has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Ventas reported revenues of $1.73 billion in the last reported quarter, representing a year-over-year change of +21.7%. EPS of $0.14 for the same period compares with $0.87 a year ago. Ventas is expected to post earnings of $0.99 per share for the current quarter, representing a year-over-year change of +12.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ventas. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis Report Ventas, Inc. (VTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Ventas (VTR). Shares have added about 1.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ventas due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Ventas, Inc. before we dive into how investors and analysts have reacted as of late. Ventas reported second-quarter 2026 normalized FFO per share of 97 cents, beating the Zacks Consensus Estimate of 96 cents by 1.04%. The metric increased 9% from the year-ago quarter. Revenues climbed 21.7% year over year to $1.73 billion and surpassed the consensus estimate of $1.67 billion by 3.72%. Growth was led by the SHOP, where same-store cash NOI rose 16.3%. Resident fees and services increased 32% year over year to $1.36 billion, accounting for most of the company’s revenue expansion. The increase reflected both portfolio growth and stronger same-store senior housing performance. Rental income from the OM&R portfolio rose 3.5% to $228.6 million. However, rental income from triple-net leased properties declined 18.2% to $124.9 million. SHOP same-store average occupancy improved 300 bps year over year to 90.9%. Average monthly RevPOR increased 5% to $5,528, supporting an 8.6% rise in same-store cash operating revenues to $979.6 million. Same-store SHOP operating expenses increased 4.9% to $621.1 million, while management fees rose 12.3% to $53.8 million. Revenue growth outpaced these costs, lifting the same-store cash NOI margin by 210 bps to 31.1%. Total company same-store cash NOI advanced 10.3% year over year to $563 million. SHOP remained the primary contributor, with same-store cash NOI increasing 16.3% to $304.7 million. The OM&R portfolio generated same-store cash NOI of $142.7 million, up 4.6%. Its cash operating revenues rose 4.2% to $214.9 million, while the cash NOI margin expanded 30 bps to 66.4%. Triple-net same-store cash NOI increased 3.1% to $115.6 million. Together, gains across all three operating segments supported the company’s double-digit same-store NOI growth. Ventas closed $2.2 billion of senior housing investments during the second quarter, bringing year-to-date investment volume to $3.4 billion. Management expects these investments to enhance the company’s multiyear growth rate and generate attractive financial returns. To fund its 2026 investment activity, Ventas settled 31.4 million shares of common stock under equity forward sales agreements year to date for gross proceeds of $2.6 billion. It also had $1.6 billion of unsettled equity forward sales agreements, bringing total equity capital to $4.2 billion. Net debt to further adjusted EBITDA improved to 4.7 times at quarter-end from 5.0 times sequentially and 5.6 times year-over-year. Management attributed the improvement to SHOP NOI growth and equity-funded senior housing investments. Ventas ended June with $4.9 billion of available liquidity, including credit facility availability, cash and cash equivalents and unsettled equity forward sales agreements outstanding. Cash and cash equivalents totaled $199 million. Management raised its 2026 normalized FFO per-share guidance to $3.85-$3.90 from $3.82-$3.89. The midpoint increased to $3.88 from $3.86, primarily due to higher accretive senior housing investment activity. The company reaffirmed expectations for SHOP same-store cash NOI growth of 15%-17%, supported by occupancy growth of roughly 300 bps and RevPOR growth of about 5%. The updated outlook assumes total company same-store cash NOI growth of 9%-10.5%. The guidance also incorporates approximately $646 million of interest expense at the midpoint. The company raised its 2026 senior housing investment target to $4.5 billion from $3 billion. In the past month, investors have witnessed a upward trend in estimates revision. Currently, Ventas has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Ventas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Ventas belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, SL Green (SLG), has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. SL Green reported revenues of $171.85 million in the last reported quarter, representing a year-over-year change of +16.5%. EPS of -$0.38 for the same period compares with $1.63 a year ago. SL Green is expected to post earnings of $1.50 per share for the current quarter, representing a year-over-year change of -5.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +19.4%. SL Green has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report SL Green Realty Corporation (SLG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Jul. 30, 2026 at 10:00 a.m. ET Senior Vice President, Investor Relations - Bill Grant Chairman and Chief Executive Officer - Debra A. Cafaro Executive Vice President, Senior Housing and Chief Investment Officer - Justin Hutchens Executive Vice President and Chief Financial Officer - Robert Probst Operator: Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to today's Ventas Second Quarter 2026 Earnings Call. [Operator Instructions]. I'd now like to turn the call over to BJ Grant, Senior Vice President, Investor Relations. BJ, you have the floor. Bill Grant: Thank you, Greg. Good morning, everyone, and welcome to the Ventas second quarter 2026 results conference call. Yesterday, we issued our second quarter 2026 earnings release, presentation materials and supplemental information package, which are available on the Ventas website at ir.ventasreit.com. As a reminder, remarks today may include forward-looking statements and other matters. Forward-looking statements are subject to risks and uncertainties, and a variety of topics may cause actual results to differ materially from those contemplated in such statements. For a more detailed discussion of those factors, please refer to our earnings release for this quarter and to our most recent SEC filings, all of which are available on the Ventas website. Certain non-GAAP financial measures will also be discussed on this call, and for a reconciliation of those measures to the most closely comparable GAAP measures, please refer to our supplemental information package posted on the Investor Relations website. And with that, I'll turn the call over to Debra A. Cafaro, Chairman and CEO of Ventas. Debra Cafaro: Thank you, BJ, and happy birthday. Good morning to all of our shareholders and other participants. I'm pleased to welcome you to the Ventas second quarter 2026 earnings call. Ventas delivered excellent results in the quarter, powered by strong growth in our senior housing operating portfolio and accelerating senior housing investment activity. With a decade of powerful demographic demand ahead, we intend to capture the unprecedented multiyear NOI growth and value creation opportunity by growing our SHOP footprint organically and externally and increasing our company growth rate. Since we adopted our 1-2-3 strategy in late 2023, our team has executed it with commitment and excellence to deliver outstanding returns and build our financial strength. We've made enterprise-wide investments in our innovative platform and team to drive our performance and elevate our industry. The results are clear. This quarter, we delivered 10% total company same-property NOI growth. U.S. SHOP led the way with 18% NOI and 360 basis points of occupancy growth year-over-year as we continue to outperform the industry. Our second quarter FFO per share of $0.97 represented 9% year-over-year growth. For the full year, we are again raising our normalized FFO expectations to $3.85 to $3.90 per share, equating to 8% to 10% growth, primarily because of our increased investment activity. The Ventas investment engine is firing on all cylinders. We now expect to complete $4.5 billion of 2026 investments focused on senior housing from $3 billion previously. We are executing at significant scale, and we've completed over $8 billion in investments since the beginning of 2024, adding more than 23,000 units across 174 communities to our SHOP portfolio. Our investment success has been enabled by the integration of our Ventas OI platform with our capital allocation decisions under Justin's leadership. Our #1 capital allocation priority remains U.S. senior housing, particularly acquisitions that combine attractive growth, yield and risk-adjusted return potential. Our investment pipeline is active and actionable, and we're using our competitive advantages to win deals that meet our strategic and financial criteria, including double-digit to mid-teens unlevered IRRs and discounts to replacement costs. The private to public arbitrage opportunity for Ventas and senior housing is compelling, and we intend to use the power of our franchise to aggressively build on our investment momentum. Our investment activities and outlook, of course, are based upon the unprecedented demographic demand for senior housing. The leading edge of the nearly 70 million baby boomers has just begun turning 80 this year, ushering in a decade where the growth rate of the senior population more than doubles. Yet new starts remain at record lows. With demand expected to substantially outrun supply and the persistence of elongated construction time lines and high cost, we foresee an exceptional opportunity for outsized growth and value creation in the coming years. We also expect to make more dispositions of nonstrategic assets in the back half of this year to improve our growth rate and expand our senior housing footprint. The combination of more SHOP investments, strong SHOP internal NOI growth and increased dispositions should make SHOP 60% of our $60 billion enterprise by year-end. In closing, as you look across the investment landscape, Ventas offers investors an attractive combination of hard assets and growth from need-based secular demand, not correlated with the AI economy. With strong property and earnings growth, investment momentum, scale, financial strength and our differentiated platform, we are focused on delivering outperformance and winning together, while advancing our mission of helping people live longer, healthier, happier lives. Our whole Ventas team is in it to win it. And as Justin likes to say, the best is yet to come. Now Justin, I'm pleased to turn the call over to you. J. Hutchens: Thank you, Debbie. I'm pleased to join you today to discuss another quarter of strong execution in shop and investments. Ventas has never been better positioned to capture the multiyear growth opportunity in senior housing. With a differentiated platform, strong balance sheet, outstanding operators and talented team, we remain focused on creating value for residents, operators, team members and shareholders. Our second quarter results reflect the strength of our portfolio the effectiveness of our active asset management platform and the growing contribution of our senior housing acquisitions. Starting with SHOP. We delivered another great quarter. Same-store SHOP NOI increased 16% year-over-year, representing one of the strongest quarterly growth rates in our recent history. NOI growth in the quarter was led by the U.S. with 18%. Occupancy remains the primary driver of our performance. During the second quarter, same-store average occupancy increased 300 basis points year-over-year led by the U.S., which continues to deliver excellent growth with 360 basis points. Within the NIC Top 99 markets, Ventas same-store communities achieved approximately 150 basis points of occupancy outperformance versus industry averages, demonstrating the benefits of our focused operating execution and differentiated platform. More broadly, the key selling season is progressing well. As always, the May through September period remains the most important operating window of the year for senior housing. We started the year strong raise the occupancy guide from 270 bps growth to 300, and now we've entered the key selling season, which is on track so far. RevPOR increased 5% year-over-year and pricing strength was realized across both in-place rent increases and move-in rents led by our highly occupied communities. The combination of the occupancy and RevPOR growth drove nearly 9% same-store revenue growth across the portfolio, at the same time, expense growth moderated. Same-store operating expenses increased 5%, contributing to margin expansion. NOI margins expanded 210 basis points year-over-year to 31% and incremental margin flow-through reached 55%, highlighting the operating leverage embedded in the business as occupancy continues to rise. These results are the outcome of the work being done every day by our operators and the continued execution of the Ventas OI active asset management platform, which is fully deployed across our SHOP portfolio, and we are positioning our AI-ready tech stack to improve the execution of our insights. I'd like to give a special thanks to our operating partners who continue to deliver great results as they embrace our culture of winning together. Atria and Sunrise are leading the U.S. and the Group Maurice continues to lead the way in Canada. Over the last several years, we have built a scalable operating framework that combines data analytics, benchmarking, active asset management and close collaboration with operators to drive performance at the community level. Our teams continue to focus on initiatives with our operators that can create incremental value across hundreds of communities simultaneously. Those efforts include refreshed capital investments, dynamic pricing insights, sales culture enhancements and benchmarking programs throughout our portfolio. One example is our relentless focus on driving occupancy in our portfolio, which is a long runway ahead. Our U.S. senior housing portfolio is 87% occupied of which our non-same store is only 83% by design. We are well positioned in markets with a projected 1,200 basis points of net demand over the next few years. Our Ventas OI platform is deployed across our portfolio where we utilize real-time leading indicators to occupancy growth in partnership with our operators to drive price volume optimization contributing to our occupancy outperformance in the U.S. On the other end of the spectrum is our cultural commitment to achieving 0 lost revenue days in our communities. Working alongside our operators, we are implementing a playbook design to drive occupancy in highly occupied communities by improving execution around resident retention and move-in timing. Today, approximately 10% of our SHOP communities are operating at or near 100% occupancy with 2/3 located in the U.S. This demonstrates both the demand characteristics in our markets and our ability to translate that demand into operating results. It also provides the proof point for the lack of frictional vacancy in senior housing communities. We are currently seeing outperformance in our higher occupied cohort. The community is currently 90% or more occupied delivered 25% NOI growth. This includes about half of our U.S. same-store communities. They have pushed price, occupancy and margin expansion. This performance demonstrates the long runway ahead of reaching stabilization, the top line growth potential and margin expansion opportunities in highly occupied communities as our portfolio continues to grow occupancy. Wrapping up SHOP, I'm pleased to reaffirm our same-store SHOP guidance of 16% NOI growth at the midpoint. As a reminder, the slope and timing of the key selling season is the main determinant to the full year results, and we are in the middle of it right now. Turning to investments. Based on the strength of our closed activity and the attractive senior housing acquisitions that we currently have under contract, we are raising our full year 2026 investment guidance, again, from $3 billion to $4.5 billion. Strong senior housing investment momentum is further expanding our SHOP footprint. Year-to-date, we have completed over $3 billion of investments focused on senior housing across 27 transactions. Further expanding the quality, reach and earnings power of our SHOP portfolio. All of our year-to-date senior housing investments were underwritten to double-digit to mid-teens unlevered IRRs. Together, they have an average expected year 1 yield of 6.6% and required at significant discounts to replacement costs with an average price per unit of $358,000. The senior housing transaction market remains active, and our pipeline continues to offer a broad set of compelling opportunities. While interest in the sector continues to grow among both new and existing sources of capital. Ventas is demonstrating the power of our differentiated competitive approach. Our relationships continue to be a defining advantage. More than 90% of our year-to-date investments were relationship-driven, including off-market transactions and marketed processes involving repeat sellers, existing operating partners or both. These relationships create real process advantages, including the ability to preempt opportunities and compete effectively at the finish line. Each investment is selected through our right market, right asset, right after our framework with a clear focus on enhancing portfolio quality and positioning Ventas for durable long-term growth. Our underwriting is benefiting from our substantial Ventas OI data analytics and allowing for a very efficient close process, which is approximating around 2 months start to finish, which is among the most efficient in the industry. Looking ahead, the senior housing investment opportunity set remains robust. We will continue to use our platform, relationships, data and execution capabilities to source and close attractive investments at scale. In closing, I'm energized by the opportunities ahead. We continue to deliver strong organic growth as we expand our portfolio through accretive investment activity. We are doing so against the backdrop of powerful demographic tailwinds and historically limited new supply, while exercising the strength of our Ventas AI platform to drive outperformance. I couldn't be more excited as we create environments where residents choose to live and enjoy the valuable benefits of senior housing. Bob? Robert Probst: Thank you, Justin, and good morning, everyone. I'll begin with our second quarter financial performance, then discuss our balance sheet and capital activity and conclude with our improved outlook for 2026. Starting with our enterprise results. Ventas delivered another quarter of strong performance and growth. Net income attributable to common stockholders was $0.14 per share. Meanwhile, normalized FFO per share was $0.97, representing 9% year-over-year growth, driven by strong property performance across the portfolio, accretive senior housing investment activity and the continued execution of our 1-2-3 strategy. Total company same-store cash NOI increased 10% year-over-year. Once again, SHOP is the primary driver of our performance, generating 16% same-store cash NOI growth with the balance of our portfolio, all contributing to double-digit growth in our overall same-store property portfolio. Our outpatient medical and research portfolio or OM&R delivered 5% same-store cash NOI growth in the second quarter, led by outpatient medical. After adjusting for cash fee income, our outpatient medical same-store cash NOI increased 3% in the second quarter. This outpatient medical performance was led by a 50 basis point occupancy improvement year-over-year and was supported by strong tenant retention of 88%. Our triple net portfolio generated 3% same-store cash NOI growth in the second quarter, and we expect the triple-net same-store year-over-year NOI growth rate to increase in the second half of the year. Moving on to the balance sheet. Our financial position strengthened again during the quarter. Net debt to EBITDA improved to 4.7x. Our best leverage level in well over a decade, representing a 90 basis point year-over-year improvement and 30 basis point sequential improvement. The continued improvement in leverage demonstrates the power of our organic growth engine and the momentum in our equity funded investments. Year-to-date, we have completed $3.4 billion of investments and have raised $4.2 billion of equity with $1.6 billion currently unsettled. As a result, liquidity of $4.9 billion at the end of the second quarter provides substantial financial flexibility for our investment and refinancing activity. Last, I'll turn to our updated earnings outlook. Given our strong first half performance and continued momentum in external growth, we're once again raising our earnings outlook for 2026. We now expect full year net income to range from $0.58 to $0.63 per share or $0.61 per share at the midpoint. We are once again increasing our full year normalized FFO per share guidance to now range from $3.85 to $3.90, which represents year-over-year growth of 8% to 10%. Our new guidance midpoint of $3.88 is a $0.02 per share improvement from our prior guidance midpoint. Bridging this improvement is a positive $0.03 contribution from higher accretive senior housing investment activity, net of increased capital recycling. This is partially offset by $0.01 from the impacts of higher interest rates and a higher share price. A detailed discussion of our guidance assumptions can be found in our Q2 supplemental and earnings presentation posted to our website. To close, we are very pleased with our second quarter results and our performance through the first half of the year. Ventas is benefiting from a unique combination of powerful demographic tailwinds, industry-leading operating execution, a highly active investment platform and a strong financial position. The entire Ventas team remains focused on executing our strategy, creating value for our shareholders and extending our track record of outperformance. And with that, I'll turn the call back to the operator. Operator: [Operator Instructions] All right. Looks like our first question today comes from the line of Julien Blouin with Goldman Sachs. Julien Blouin: So we've seen others in the sector sell either full OMS portfolios or sell JV stakes in portfolios. -- just given the strength of the interest out there, is there anything holding you back from recycling capital out of outpatient medical and into senior housing -- and how do you think sort of the cap rate on your portfolio would compare to some of the ones that are out there. Debra Cafaro: Good morning, Julien and Debbie here. Thanks for the question. Look, we've always taken the view that we'll strongly consider any transaction that we believe creates long-term value for shareholders, and we've proven that in the past with our SNF disposition and spin-off, we continue to evaluate our portfolio. Our strategy is very focused on expanding our SHOP footprint, and that's exactly what we're doing. And that's how we're really thinking about strategic opportunities. Julien Blouin: Got it. And then Justin, at what level of sort of portfolio-wide same-store shop occupancy, do you think you could start to see same-store RevPOR kind of accelerate towards maybe the 6% or 7% range, let's say, how far from a portfolio-wide sort of RevPOR acceleration do you think you are currently? J. Hutchens: Yes. So I mentioned in my prepared remarks, I talked about this that half of our U.S. SHOP same-store portfolio is 90% occupied or more. That grew NOI 25% year-over-year. The RevPOR is 6%, so it's obviously bringing the average up across the portfolio in terms of NOI growth, in terms of RevPOR growth. Occupancy growth was really strong in that group as well on the better side of our average. And so I think that's really encouraging as you think about 2 things. One of the have a really long runway to go. We're 87% occupied across SHOP. And to know that when we get to that kind of the first phase I'll call it the first destination, which is to break that 90% barrier, there's a lot of growth opportunity that we're proving -- is yet to come. So it's a tremendously large proof point of the growth opportunity in the 90-plus occupied group. Julien Blouin: Got it. Operator: And our next question comes from the line of Jeff Spector with Bank of America. Jeffrey Spector: I'm sorry if I missed this. Can you talk about the occupancy levels from June versus April and May? Was there an acceleration? Or did it maintain the same level of growth? Robert Probst: Sure. So we -- when I said in my remarks were we started the year with a 270 guide. We've raised it to 300 basis points of growth year-over-year. We started the year really strong. We had 310 in the first, we had 300 in the second. So that means we need around 300 for the rest of the year. We have good visibility into the key selling season. It's on track. There's good sales activity on the ground already in the quarter, good occupancy growth already in the quarter, and that's supporting our full year guide expectation of around 300 basis points. with the knowledge that we have a long ways to go really to get through the rest of the key selling season, but so far, so good. Jeffrey Spector: Okay. Great. And then sticking with occupancy, given that has been for us at least the top incoming question from investors, I assume that's just people are debating on things topping out or not. But Justin, of course, you talked about the lift in occupancy. I think you said that the same-store today around 83%, roughly half the community is about above already above 90%. I guess, could you provide a little bit more context around your opening remarks and occupancy over the coming years. I think you also said 10% today at full occupancy, I don't know if you've talked about where you see that reaching 25% or 50% over the coming years? J. Hutchens: I really appreciate the question because it's a mission of ours to prove that stabilization is a much higher number than what we used to think it was traditionally. One of the proof points we talked about was the 90-plus percent occupied communities. Another one I mentioned is the 10% of our portfolio that is at or near 100% occupied. And that group is also delivering very strong NOI growth is benefiting from rate growth even higher around 7% RevPOR and has a 20-plus -- around 20% NOI growth as well in the U.S. And by the way, 2/3 of those in that category are in the U.S. We -- I think everyone knows we have a highly occupied Canada, but our U.S. is demonstrating that we can get all the way to 100% occupied in our communities. That's been a key part of our thesis as we talk about this multiyear growth opportunity. And now it's really pleasing to be able to show these proof points and demonstrate the NOI growth opportunity as we get into these higher occupancy bands. And just a reminder, we're still only 87% across our SHOP portfolio. So -- and you mentioned this the part that's 83% is our nonsame-store. That's about 25% of our NOI right now, 75% is in the same-store. So the 83% has a long runway ahead, combining for 87%, long runway ahead. And when we get to this destination of 90% plus, really strong potential for NOI growth. Debra Cafaro: Justin [indiscernible], I think, has to prove to everyone that in this new paradigm, we can get into the close to 100% occupied over the years. J. Hutchens: Exactly. Operator: And our next question comes from the line of David Rodgers with Raymond James. David Rodgers: Wanted to ask about the SHOP flow-through that's in the presentation. Obviously, you had a nice pickup in occupancy that helped drive a pretty big pickup in the flow-through from the last couple of years and even in the first quarter. you had a similar occupancy improvement, I think, from 24% to 25%, but no real pickup in flow through. So Justin, is it just that you're getting those top 10% of the assets to fold that's kind of driving the incremental component? Is there something operationally that you're doing where you continue to see that flow through improve as we go forward? Just a little bit of color on that would be helpful. J. Hutchens: You bet. So one of the real positive aspects of the senior housing business model is its operating leverage. And what that really refers to is that as occupancies go higher, your expenses become more fixed. So the difference between this year and last year is we're running at a higher occupancy you have more operating leverage you're benefiting from, and then that's producing the opportunity for the better incremental margin that we're seeing. So 55% was good. And we would expect really the opportunity, all things considered equal, the opportunity for that to be even better as we move occupancy over time. David Rodgers: And then maybe a separate follow-up. With regard to investments, obviously, I'd love your opinion on where we are in the development cycle. You talked about discount to replacement costs, rents are below where they need to be to develop. I think from a new development standpoint, you haven't been particularly active. Is that something as you look out over the next couple of years that you can see that gap closing with 5% RevPOR and 300 basis point pick up in margin where you want to be ahead of that curve. So I guess, maybe talk to me about where you think we are maybe in the cycle of development for Ventas in particular? J. Hutchens: Yes. Well, if you don't mind, I'll kind of speak to big picture first. I can talk about us because we're really focused on acquiring in place and growing cash flows. I mean that's our primary focus. But development is going to be needed. I mean Debbie made the point around demand, there's a need for supply over time. The reality is, is that -- there's not a lot of projects that would pencil at this current time. We think that current rents need to be up to 40% higher or even more than that in certain cases, trended rents around 25% higher. So we're a ways off from probably any big wave in development. There's also just construction costs and availability of labor as well as debt and equity cost and availability of capital. One thing on that, though, it's pretty clear that because of those dynamics, the projects that need -- that would -- that could pencil are those that are so disconnected from the market in terms of rent expectations that they would feel comfortable delivering and really introducing a new higher-end product to a market, which is a luxury product. And we see these in our pipeline. I mean, those are the types of projects that developer/operators are trying to bring to market. It's a luxury product. And our primary focus right now is really to continue this acquisition program we've had delivered over $8 billion, and it's projected to deliver $4.5 billion this year, just based on what's been closed or under contract, at really attractive returns and with a really high-quality type of community that we've been acquiring. So we're going to keep that going. Debra Cafaro: And just to top that off, what we do know is that there were a little over 1,000 starts this quarter and there's 2 million people turning 80 just in 2026 and that demographic demand wave continues for a decade. And so when we look ahead, the near to intermediate-term multiyear growth and value creation opportunity is really an exceptional one for us. Operator: And our next question comes from the line of Seth Bergey with Citi. Seth Bergey: I guess just to start off with the kind of increased acquisition guidance and kind of the increased competition in the marketplace. -- the number of deals that you guys are kind of looking at that funnel through to something you closed on changed? And are there certain parts in terms of more stabilized versus value-add deals where you're seeing more competition? And just any color you can give on how pricing has also moved. J. Hutchens: Sure. Yes. So I'm going to kind of start with the end part of your question. Pricing, we've mentioned in previous calls that there's -- the cap rates have drifted down on a year-over-year basis. Well, we've been really steady in the mid-6s in terms of our year 1 yield. And then we've consistently been low double digit to mid-teens unlevered IRRs. And that continues in this next wave of $1 billion that's under contract. 2/3 of that's a value-add product with a higher growth profile. And we're expecting similar yields and similar IRRs in that group. Also, we have a pipeline that's really active. So we have plenty under review and look forward to pressing our advantages moving forward in terms of external growth. And then I think that might have addressed your old question. Did I miss anything? Seth Bergey: Just is kind of less funneling through to close? In terms of the numbers of the deals that you're looking at that. Debra Cafaro: Yes. There's a couple of factors that work. First of all, the market is bringing a lot more assets so that it is -- there's more coming to market and in our relationship-driven pipeline. So that's really important because we have these competitive advantages that Justin mentioned the team experience, the sophistication, the relationships, most importantly, we are winning more than our fair share and expect to continue to. Seth Bergey: Great. And then maybe just a second one on the guidance. the kind of midpoint implies a second half of kind of $0.98 a quarter, and you just did $0.97 in 2Q. I guess, just is there a level of conservatism in there just given that you closed the deal in the second quarter and do you see selling season seems to be going on track? Or are there any offsets we should be thinking about? Robert Probst: Yes, it's Bob. So the increase to the guide, the bridge is driven to a $0.02 net driven by investments up 4 that's $3.4 billion under our belt and roughly $1 billion to go. We also increased our dispositions and loan repayment guidance at a blended 7. And so if you unpack, I called it $0.03 net, if you unpack that, it's $0.04 investments less 1 for the dispositions, and that's all happening in the back half of the year. So that's -- the biggest piece and the last piece is higher interest rates, stronger dollar and our stronger share price, net of $0.01. I mean you're right to say that nets out to $0.98 on average for the back half of the year relative to our $0.97 in the second at the midpoint. Operator: And our next question comes from the line of Vikram Malhotra with Mizuho. Vikram Malhotra: And congrats on the strong print overall. I guess just on that strength, I was wondering what kept you -- I know you're early in the selling season. But what's kind of kept your same-store shop guide intact? Because if you just take your assumptions, you're pretty easily hitting 16%. So I'm wondering, is it comps like in the back half of last year, you had an acceleration. Is it perhaps Canada again, facing tough comps at some with expenses. It seems like you had a very good print. So I'm wondering why not even modestly increase the SHOP guide? J. Hutchens: Well, first of all, we just raised it last quarter. So we did take that stuff already based on the performance we saw playing out. We've proven that in the second quarter. And now we're in the key selling season, and we'll see how that continues to play out. But we already did raise. And now we have a lot of execution ahead of us and things are going well. Robert Probst: And just to underscore, the first half was 16% year-over-year NOI growth. We're holding 16% for the year. So it's pretty straightforward that 16% in the back half is our assumption. Vikram Malhotra: Okay. I guess, just I have high expectations. So second question, you've talked a lot about the senior housing opportunity set and the flow-through that's just now beginning on the incremental margin side. So I'm wondering if you look at the next 2 years, similar to a question at [indiscernible] like positioning the overall portfolio to kind of take that 10% FFO NOI growth as you've seen overall and really translating that into 11%, 12%, 13% FFO and AFFO growth. I'm just looking for updated thoughts on like Canada, you created a lot of value. Can you monetize that medical office slow growth, asset pricing is very good in the private market. Can you monetize that? And then maybe just thoughts on Life Sciences on the university side. Like is there an opportunity set in other businesses to help take this FFO growth trajectory higher. Debra Cafaro: Vikram, it's Debbie. Let me take a couple of shots at that. First of all, we're in our fifth year of double-digit NOI growth from our SHOP portfolio and kind of the best is yet to come. We've got the last couple of years have really shown really good same property growth. As an enterprise, this quarter, it's 10%, the biggest offset to that in the past couple of years, including this year, as Bob just described, is the interest rate curve and FX, et cetera, macro factors, let's call it. And so our strategy is really to continue driving that same property growth led by SHOP. And hopefully get an assist from the -- hopefully get an assist from the macro in terms of the rate environment and so on. The emphasis of our strategy, again, as I said, is to SHOP -- we expect to be already 60% of a $60 billion by the end of this year and our strategy of focusing on aggressively growing that internally and externally continues. So that's how I would answer your question. In terms of Canada, just to touch on that for a minute, I would tell you that our dispositions are really focused on non-SHOP assets. We are doing more, as you saw in the guide. And Canada remains a significant contributor to our enterprise growth. Operator: And our next question comes from the line of Jim Kammert with Evercore ISI. James Kammert: I hope I'm not drilling -- I hope I'm not going too much on dead horse. But Justin, you mentioned again the cohort of the same-store pool is 90% plus occupied. You said certainly are driving 25% NOI growth, which is pretty impressive. But I think you also said it was 6% RevPOR growth for that pool. And I'm just trying to understand how much of this is really pricing versus occupancy? I'm just trying to see, we get to a steady state, I'd say you have mid-90s across a lot of your portfolio, what do you think pricing can look like on an annual basis as you run out of occupancy opportunity? J. Hutchens: Well, that's going to be -- the question that we look forward to answering over time. I can tell you what we're seeing so far. So that the 90% plus group is half the U.S. same-store portfolio. Huge sample, 6% RevPOR the occupancy was even better than the average occupancy reported across the portfolio. So it's benefiting from occupancy and rate growth working together to drive the NOI growth and margin expansion. The -- we know that we get even higher occupied, you get up into that group that's like 99% occupied plus that I mentioned, 7% RevPOR growth. So more pricing power, the scarcity values playing out. Now it's important to note that this is all in an environment that's not as attractive as is what's coming. That's one of the reasons, one of the many -- we keep saying the best is yet to come because we haven't even experienced the best demographic cycle yet. That's just starting now with the baby boomers turning 80, and with deliveries down and starts way down, we have this window of opportunity we've been looking forward to. And the value proposition in senior housing is pretty amazing. And it's utilized regularly by our 90,000-plus residents, 100,000 across the whole portfolio. And we look forward to serving more seniors, and we look forward to demonstrating the value proposition. And with that, does come a price opportunity, we think. James Kammert: Right. Then one small question in detail. On the acquisitions year-to-date, it looks like, on average, it's about a 9% retained interest on the seller or sellers. Is that any part of some sort of financial alignment you're trying to create with those sellers or just really idiosyncratic that they had tax or other motivations to retain a piece of what they were owning. J. Hutchens: So I want to make sure I'm understanding the question. You're talking about sellers retaining ownership. James Kammert: It looked like your own on your pro rata base is about 91% of the investment. J. Hutchens: Yes. So what you're looking at is actually -- remember, we have our fund that's focused on core plus investments across the various asset classes. We invest in 20% of what the fund invests in. And so you're seeing our share reflected in the sub. And we have -- we did do one joint venture that we talked about last quarter with Revel. We likely do more in the future, but mostly what you're seeing is the share between us and the fund. Operator: And our next question comes from the line of Juan Sanabria with BMO Capital Markets. Juan Sanabria: Just hoping, Justin, maybe you could talk a little bit about Canada and the RevPOR there? And if that should kind of educate us or be a lead for how the U.S. RevPOR could trend or if there's considerations, rent restrictions, whatever in Quebec that may be holding that back? And I know you talked about like the 99% occupancy communities in the U.S. in the report they've had there. But just how Canada could be a lead or not versus how -- relative to how the U.S. could perform? J. Hutchens: Yes. So Canada has some structural differences. First of all, it's 97% occupied. We have a really high-quality portfolio there amongst a few different operators, [indiscernible] maurices consistently to stand out. They're Quebec-based. And there are rent restrictions in place in Quebec. And then there's kind of social barriers around rent as well as in Ontario. So we do experience pretty good RevPOR growth there. One of the reasons it stands out is because we have an independent living product. So you don't really have that re-leasing spread drag that you can experience with assisted living when the higher acuity residents move out and lower acuity residents move in. So the independent living RevPOR is really more stable in rent driven. So pretty good print there. But we don't view it as the indicator for the future in the U.S. What we're looking at for the future opportunity in the U.S. are the examples I gave around the 90% plus and 100% occupied communities, where we're already demonstrating across a huge sample size, higher RevPOR growth. Debra Cafaro: Yes. I mean in the U.S., we're looking at maximizing NOI growth through the calibration of rate and occupancy that Ventas OI is expert at while at the same time, making sure, as Justin said, we're offering that value proposition to seniors. And that's really how we've been growing the portfolio, and we see that continuing as scarcity potentially develops within the U.S. market. Juan Sanabria: And then just as a follow-up. You mentioned kind of focusing on some noncore dispositions. So hoping you could talk a little bit about what's in that bucket kind of why now? And maybe as part of that, I think there was a transaction with Sian and kind of the Kindred entity and how that may fit into that bucket, if at all? Robert Probst: Yes. Well, I'll start with the dispo assumption. Again, we increased that to $700 million. It's really outside of SHOP. So I think the rest of the asset classes and I would call it sort of the nonstrategic type assets in those asset classes, including loan repayments at quite a high yield. So about $100 million or so at 11% in terms of getting a loan repaid a really strong loan. So that's the net $700 million and really focused outside of SHOP. Debra Cafaro: Yes. And substantially all of the $8-plus billion of -- substantially all of the $8-plus billion of investments that we've completed since beginning of '24 have been in SHOP consistent with the strategy. We had a small opportunity to make a well structured investment in terms of a recycled loan capital because of our position in the capital structure and contractual rights, and we took it. Operator: And our next question comes from the line of Michael Goldsmith with UBS. Michael Goldsmith: Can you provide some color on the subsequent investment activity in the for the third quarter. It looks like the yields are relatively healthy at 6.2%, but the price per unit is quite high at $554,000 per unit. Is that still discount or replacement, what are the occupancy at these facilities? What's the profile of these assets? J. Hutchens: Yes. Very good question. There's 3 communities that [indiscernible] in that. And that -- by the way, one of those was purchased by our core plus fund. In fact, the community had the lowest going in cap rate was there. And so our share of that's reflected. And that was a Class A asset in Colorado. We have 2 other really core like assets, 1 in California, 1 in Arizona, and they are really high-quality, strong performers in markets with really strong net demand. Good occupancy and -- but also high RevPOR and high price opportunity -- high price growth opportunity moving forward. And so there's a portion of -- if you step back and just look at the way we've been allocating capital in senior housing, most of it's been going into either high-performing, with upside communities or value-add and there's a portion though that will put into certain markets where we have these really high-quality communities that we think will be market leaders for years to come. And -- these just happen to fall in that category. So I wouldn't read into the 6.2. We're expecting the $1 billion under contract to deliver around a 6.5, consistent with what we've been delivering so far in what we've closed this year. Michael Goldsmith: Got it. And just as a follow-up. I think there was a $300 million health care loan mentioned in the press release. I don't know if we've touched on it on the call. Can you provide a little bit more details around that? Debra Cafaro: Yes. I just touched on it with one, but it's just a recycling of -- we expect some loan repayments. As Bob talked about, we've recycle the capital into a well-structured loan investment based on our position in capital structure and contractual rights that we have. Michael Goldsmith: Got it. Good luck in the back half. Debra Cafaro: Thank you very much. Operator: And from one Michael to another. The next question is from Michael Carroll with RBC Capital Markets. Michael Carroll: Just, I'm going to turn back to the key selling season as you kind of highlighted that the occupancy gains really depends on the timing and the slope of that. So when did the occupancy slope start to inflect this year? And how does that compare versus your expectation in prior years? I mean, does the selling season start when you expected to start? J. Hutchens: Yes. So -- it's a good question. So the key selling season time period, as always, May through September, there is kind of every year is a little different in terms of when you have your bigger months. We happen to have a really strong start to the year ahead of the key selling season. So that was what helped us to have the confidence to raise $270 million to $300 million. And then in the second quarter, we saw evidence that really supported the 300 basis points guide that we gave and what we're seeing so far in the third quarter is good occupancy growth, good sales activity on the ground. And so far, so good in terms of meeting our expectations so far with a lot to play out still. Michael Carroll: Okay. And then should we expect going forward that the occupancy trend will start to track more in line these typical seasonal trends? I mean, albeit probably still well above what it was pre-COVID. I mean, I know the second quarter sequentially is usually up less than it is in the third quarter, just given how that key selling season slope starts. So should we expect that to happen just seems in the prior few years, we just kind of powered right through it. Are we kind of back to that typical seasonal trend of occupancy gains? J. Hutchens: So you make a really good point. and recent seasonality has been a little different. The seasonality certainly still exists. It's just been more muted in the periods outside of the key selling season. The reason for that quite simply could be the higher demand that we're facing. So perhaps we're in a new paradigm. I would expect seasonality to continue. And hopefully, hopefully, we can continue to see the muted seasons outside the key selling season. And we hope to see RevPOR key selling seasons moving forward, too. So we'll see. But we certainly like our opportunity given the demand characteristics and the strength of our platform. Operator: And our next question comes from the line of Richard Anderson with Cantor Fitzgerald. Richard Anderson: So obviously, the bar is high and the market is speaking whether you agree with it, and I'm sure you don't agree with it. It's a little exaggerated. But Justin, you described the selling season so far as being on track and perhaps the market was hoping for a better description. Is there anything underneath that comment that is sort of not particularly exciting to you? Is there anything that you're sort of monitoring? I don't know really how to ask the question more directly than that. When you say it's on track, is it -- is there some hiccups going on behind the scenes that you can talk about? Debra Cafaro: We're excited about 16% growth in SHOP. Robert Probst: Yes, 300 basis points of occupancy growth. I would -- I understand what you're asking, and what I would say is we're seeing broad-based contributions across the portfolio. Our same-store SHOP is same store for a reason. I'll just kind of -- for example, our non-same store is usually in a period of some kind of transition or redevs or the newer acquisitions, the same-store is -- that's the portfolio that it's been with us for a period of time in a form that is really, when it should be most competitive, we're experiencing that across the portfolio. We're seeing good occupancy growth in independent living, assisted living across our markets, across our operators. So no, there's nothing within the portfolio that is of concern. We're really encouraged by the broad-based contributions. Richard Anderson: And fair enough, I mean, you're right about the pace of growth. I just wanted to ask the question. Second, the 25% NOI growth for the 90-plus occupancies. Was that was a U.S. portfolio observation, I assume? J. Hutchens: That's right. Richard Anderson: Okay. And then you said 1% of the portfolio is 100% occupied, and that's a 20% NOI growth story, again, I assume the U.S. So -- is this informing you about the efficient frontier around occupancy? Because I know you have talked about a strategy of pursuing 100% occupied campuses, but maybe this is telling you that the efficient frontier is not 100%, and you shouldn't be really shooting for that, but something in the low to mid-90s. Is that a reasonable mathematical observation? Or is this just a point in time and not -- shouldn't be overly emphasizing it. J. Hutchens: Yes. So the -- when I talked about in my prepared remarks, this cultural commitment to 0 lost revenue days in order to get the performance we're talking about in this 90-plus group, you really have to be stretching to go full. We need as many communities that we can go to 100% occupancy. You have the best opportunity for margin expansion in that group because of the operating leverage in the business. And it's not easy to do, but we have 10% of our portfolio. It's achieving it. We have half our portfolio that's in that -- in the U.S. in the same-store that's in that 90-plus group, and they are contributing a lot of growth in the contributing growth because they're reaching for that ultimate goal of being 100% occupied. So there's an opportunity in this asset class given the lack of frictional vacancy to achieve that result and we're proving it, and the goal would be to get as many communities as full as possible. Operator: And our next question comes from the line of John Kilichowski with Wells Fargo. Unknown Analyst: This is [indiscernible] on for John. So with leverage now down to 4.7x and the balance sheet continues to improve, as you look beyond this year's investment plan, should we assume acquisitions are still primarily equity funded? Or will the funding mix likely become more tilted more balanced, I guess, going forward? Robert Probst: Yes, thanks for the question. I'm very proud and pleased at 4.7x, which is our leverage as of the second quarter. And when you look at unsettled equity, which will be used to fund investments we're in the mid-4s. So that's well over a turn from where we were last year. And the playbook of the strategy has been equitizing investments in senior housing and that is both accretive and delevering and that has been a powerful combination. And given the market backdrop and the situation we have, both in terms of investment opportunities and our cost of capital, I would expect that to continue. So without putting a number on it, we're going to keep running that playbook. Unknown Analyst: Excellent. And just a separate follow-up here. With the Brookdale transition is largely complete at this point. What are you seeing so far, the selling season in terms of leads, move-ins and pricing? And is what you're seeing today still support the opportunity to roughly double NOI over time for that portfolio? J. Hutchens: Yes. So I'll start with the end. We absolutely believe in the opportunity to double the NOI in that portfolio. I want to make sure -- I want to put it in context for those that might not remember what this is. So we have a non-same-store portfolio that's 25% of the NOI and SHOP. That includes acquisitions, transitions, redevs primarily. The former Brookdale communities or large-scale communities that we thought would benefit from an operator change and investment in the asset to better position it and then executing on -- what was a low occupancy in markets that have strong net demand. All of those actions are underway this year. And we'll expect in the future the opportunity to go after that doubling the NOI. We also have opportunities like that across the rest of the non-same-store portfolio as well that we're working on. So those actions are underway and that will really fuel our future growth. Operator: Our next question comes from the line of Rich Hightower with Barclays. Going once, going twice. All right. Our next question comes from the line of Mike Mueller with JPMorgan. Michael Mueller: I guess in the research portfolio, there's some chunky occupancy loss in the quarter. Can you give a little bit of color on what's happening there and what do we expect going to go forward? Robert Probst: Sure. This was as expected. There were a few tenants that didn't renew in the portfolio. It is net-net-net, a $900,000 impact year-over-year. Pretty much in line with our expectation. I would emphasize that the second quarter in research is likely to reflect the balance of the year given that those move-outs. So that's in short. Michael Mueller: Got it. Okay. And then I guess looking at the U.S. SHOP portfolio, you had the biggest year-over-year occupancy gas and rev growth in the markets that you classified as other markets. So can you give a little color in perfect falls into those buckets of what's happening on the ground there that makes them relatively stronger? J. Hutchens: Yes. So there is -- we've got the primary secondary in other markets. Obviously, I mean last year, secondary was outperforming. This year, we have really strong growth across primary and other. Other does have a lot of our independent living product that's either holiday or a holiday like community and they're delivering really strong growth for us this year in terms of occupancy and NOI growth. And so that's been a really big contributor for us. Operator: And our next question comes from the line of Michael Stroyeck with Green Street. Michael Stroyeck: Maybe going back to the development topic. I appreciate the comments on where you think rents need to go. Where do you think development yields are actually at today? And where do they need to be, in your opinion, for development to make a bit more sense. J. Hutchens: Yes. So the kind of the standard underwriting and the development yield spread is around 150 to 200 basis points. So call it, 8% yield or sales. So there's -- and that's usually what we use in our assumptions. We'll run sensitivities down to 7 and just to use our -- the judgment in terms of what could happen in terms of development actually penciling, but that's the standard we're using, if you're wondering. Michael Stroyeck: And I guess where do you think yields are at today? Like how far away are we from that 8%? J. Hutchens: We're investing across the $4.5 billion we're investing at $6.5 billion. So if you put the -- the $150 million to $200 million on top of that. So now you're at 8% to 8.5%. And that's just the standard underwriting you'd see -- you'd expect a development yield spread of 150 to 200 basis points over the expected year 1 yields and investments? Michael Stroyeck: Sorry, I guess I meant more based on where rents are today, like where do you think a development yield would be? And how far away is it from that 8% development be required... Debra Cafaro: Go ahead, Justin. J. Hutchens: Yes. I think here's another way to get -- so another way there -- the way we would look at it is what would a developer expect in terms of return, we think that's around 8% and give or take, someone might reach for a lower yield, some might be more comfortable higher than that, but let's just call it 8%. And then it's what are the trended rents need to be in order to achieve that. And we think that's at least 25% higher, which means it's largely not achievable. The projects don't pencil to what developers would seek in terms of their they're typically underwritten yields. The exception I mentioned earlier could be a luxury product, where they're introducing a much higher price point and entering a market as a [indiscernible] leader, certain developers have land banks out there that can help that even though they're higher barrier markets. So that's the that's maybe the exception we'll see first, but we're not expecting any big waves of new development announcements. However, we are really low in terms of starts right now. So it's hard to imagine it getting much lower. So we'll see what happens. Michael Stroyeck: Okay. Understood. And maybe just one on dispositions. How long should we expect elevated levels of dispositions? Is this just a second half of 2026 story? Or could we see multiple years of pruning the portfolio? Robert Probst: Yes. It's Bob. I would -- if you go back and look at time, $500 million is not a -- it's a normal kind of average. So we're slightly above that. But I would say it's in the neighborhood of what we would do just in terms of upgrading the portfolio and improving the overall growth rate. Good hygiene is the way I'd describe it. So this is uptake. Operator: And our next question comes from the line of Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Great. I'll be quick. I know we're running long here. I just want to talk a little bit more about expenses. I think that obviously, the guidance is unchanged. Just a little color whether it's some of the labor costs. Just what do you think is the opportunity you're sort of breaking that expense curve, both the total same-store number as well as sort of expense or operating room. Debra Cafaro: Ron, yes, one thing just to note is that the portfolio is delivering about 9% revenue growth. So I do want to start there. J. Hutchens: Yes. So yes, really good revenue growth. The expense growth that you see at 5% is really volume driven. Our OpEx [indiscernible] is around 1.5%. So you're -- and that's because of the operating leverage and that kicks in this business model. So the guide we have is 5.5%. We had a first quarter that was impacted by weather, had elevated expenses in the first quarter, 5.8%, we're back in line with moderate expense growth around 5%, and we left room in our guide for some expense growth in the second half of the year, which will be volume-driven but also very efficient to my point, because there's margin expansion that would come with that. Ronald Kamdem: And then my second one is just to circle back to sort of the [indiscernible] conversation. I think the presentation said the financial impact was already contemplated in guidance. Can you just provide any color of what that financial impact is? Because it seems like a good outcome that should have been beneficial. Robert Probst: It is a good outcome. And the principal driver is the loan. We show the rate, the $300 million at, call it, 10.5% effective rate. So that's the key driver and that was contemplated in previous guidance, as you say. Operator: And our final question today comes from the line of Omotayo Okusanya with Deutsche Bank. Omotayo Okusanya: I just wanted to go back to Rich Anderson's question, this kind of idea of kind of lost the expectation. Again, some of your peers have done some large transformative transactions to have more shop exposure to ultimately accelerate the earnings growth profile -- how do you guys kind of think about that again, things are going great. Earnings are clearly accelerating, but it feels like the market is rewarding the names who are getting bigger faster in shop, if I may use those words. I'm just kind of curious how you're thinking about that strategically. Debra Cafaro: It's Debbie. Thanks for the question. Look, Billy Jan King said pressure is a privilege. And I believe that we have high expectations of ourselves we're delivering really great results, and we have this multiyear NOI growth and value creation opportunity ahead, and we've organized the company to really capitalize on that. So we're all excited about what the future holds. We're building SHOP to be 60% of our portfolio by the end of this year on a $60 billion enterprise. The investment engine is firing on all cylinders, SHOP's delivering 16% NOI growth. We feel very optimistic about our prospects in the future and value creation for all of our stakeholders, and we're very focused on our performance at scale. So we will keep focused on executing the strategy with excellence and delivering outsized returns over a multiyear time horizon. Operator: All right. Thank you for the question. And ladies and gentlemen, that does conclude the Q&A session. So I will now turn the call back over to Chairman and CEO, Debra Cafaro, for closing remarks. Debbie? Debra Cafaro: Thanks so much. I want to thank all of our participants for joining us this morning. We really appreciate your interest in and support of the company. Hope you have a great rest of the summer, and we look forward to seeing you soon. Operator: Thanks, Debbie. And ladies and gentlemen, that does conclude today's call. Thank you all for joining, and you may now disconnect. Have a great day, everyone. Before you buy stock in Ventas, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ventas wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ventas (VTR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Ventas, Inc.? Here are five stocks we like better. Ventas raised its 2026 outlook after strong second-quarter results, with normalized FFO reaching $0.97 per share and full-year guidance increasing to $3.85–$3.90 per share. The company also raised its 2026 investment target to $4.5 billion, primarily for senior housing. Senior housing operating portfolio performance led growth: U.S. SHOP NOI increased 18% year over year, occupancy rose 360 basis points, and same-store SHOP NOI grew 16%. Ventas maintained its 16% SHOP NOI growth target while lifting its occupancy-growth expectation to 300 basis points. Balance-sheet strength improved, with net debt to EBITDA falling to 4.7 times, the lowest level in more than a decade. Ventas plans to fund further investments through capital recycling, including approximately $700 million of dispositions and loan repayments focused on nonstrategic assets. Why Welltower's Growth Story Might Outrun Its Rich Valuation Ventas (NYSE:VTR) raised its 2026 investment and earnings outlook after reporting second-quarter growth led by its senior housing operating portfolio, or SHOP, as occupancy gains and rent growth lifted property-level results. Chairman and Chief Executive Officer Debra A. Cafaro said the company generated 10% total-company same-property net operating income, or NOI, growth in the quarter. U.S. SHOP NOI rose 18% year over year, accompanied by 360 basis points of occupancy growth, she said. Normalized funds from operations, or FFO, increased 9% from a year earlier to $0.97 per share. → Microsoft Just Flipped the AI Spending Narrative Overnight 6 largest healthcare REITs to buy and how to invest The company increased its full-year normalized FFO guidance to a range of $3.85 to $3.90 per share, representing projected growth of 8% to 10%. Ventas also lifted its expected 2026 investment volume to $4.5 billion from $3 billion, primarily focused on senior housing. Executive Vice President, Senior Housing and Chief Investment Officer Justin Hutchens said same-store SHOP NOI increased 16% year over year during the second quarter, with the U.S. portfolio contributing 18% growth. Same-store average occupancy rose 300 basis points across the portfolio and 360 basis points in the U.S. → 2 Unique Space ETFs That Could Upend the Industry Analysts See Strong Upside Trade for Undervalued REITs Within NIC’s top 99 markets, Ventas’ same-store communities outperformed industry occupancy averages by about 150 basis points, according to Hutchens. Revenue per occupied room, or RevPOR, increased 5%, reflecting both in-place rent increases and higher move-in rents. Same-store revenue grew nearly 9%, while operating expenses increased 5%. That combination expanded NOI margins by 210 basis points to 31%, while incremental margin flow-through reached 55%. → MarketBeat Week in Review – 07/27- 07/31 Hutchens said the company’s U.S. senior housing portfolio is 87% occupied, while its non-same-store portfolio is 83% occupied. The non-same-store group represents about 25% of SHOP NOI and includes acquisitions, transitions and redevelopment projects. Ventas is maintaining its same-store SHOP NOI growth outlook of 16% at the midpoint. The company raised its full-year occupancy-growth target to 300 basis points from 270 basis points after a strong start to the year, and management said the May-through-September key selling season was tracking in line with its expectations. Hutchens highlighted performance at more highly occupied communities as evidence of further opportunity. The approximately half of U.S. same-store communities that were at least 90% occupied posted 25% NOI growth and 6% RevPOR growth. About 10% of the company’s SHOP communities were at or near full occupancy, and those U.S. properties were producing about 7% RevPOR growth and roughly 20% NOI growth, he said. Ventas completed more than $3 billion of senior housing-focused investments across 27 transactions year to date, Hutchens said. The investments were underwritten to double-digit to mid-teens unlevered internal rates of return, had an average expected first-year yield of 6.6%, and were acquired at an average price of $358,000 per unit. The company expects to complete approximately another $1 billion of investments under contract, with that group expected to produce yields and returns similar to its completed investments. About two-thirds of that pending activity is value-add product with a higher growth profile, Hutchens said. More than 90% of year-to-date investments were relationship-driven, including off-market transactions and transactions involving repeat sellers or existing operating partners. Hutchens said Ventas’ underwriting and data capabilities have helped the company close transactions in about two months from start to finish. Cafaro said Ventas has completed more than $8 billion of investments since the beginning of 2024, adding more than 23,000 units across 174 communities to its SHOP portfolio. The company expects SHOP to represent 60% of its $60 billion enterprise by the end of 2026. Management said demographic demand and limited new supply continue to support its senior housing strategy. Cafaro said the leading edge of the nearly 70 million baby boomers began turning 80 in 2026, while new senior housing construction starts remain at record lows. On development, Hutchens said Ventas is primarily focused on acquiring in-place cash flows rather than developing new properties. He said current rents would generally need to be at least 25% higher for projects to generate the roughly 8% development yield that developers may seek, though luxury projects in select markets could be exceptions. Chief Financial Officer Robert Probst said net debt to EBITDA improved to 4.7 times at the end of the second quarter, the company’s lowest leverage level in more than a decade. That was a 90-basis-point improvement from a year earlier and a 30-basis-point sequential improvement. Ventas completed $3.4 billion of investments year to date and raised $4.2 billion of equity, including $1.6 billion that remained unsettled at quarter-end. Liquidity totaled $4.9 billion. The updated normalized FFO guidance midpoint of $3.88 per share is $0.02 above the prior midpoint. Probst said higher senior housing investment activity, net of additional capital recycling, contributed $0.03 per share to the improvement. That was partly offset by $0.01 per share from higher interest rates and a higher share price. The company increased its disposition and loan repayment assumptions to $700 million, with sales expected to focus on non-SHOP and non-strategic assets. Probst characterized the disposition activity as portfolio “hygiene” intended to improve the company’s growth rate. Management said approximately $100 million of anticipated loan repayments carry an 11% yield. Ventas’ outpatient medical and research portfolio, known as OMAR, generated 5% same-store cash NOI growth in the second quarter. After adjusting for cash fee income, outpatient medical same-store cash NOI growth was 3%, supported by a 50-basis-point occupancy improvement and 88% tenant retention. The triple-net portfolio generated 3% same-store cash NOI growth, and Probst said the company expects the portfolio’s year-over-year NOI growth rate to increase in the second half. In the research portfolio, Hutchens said several tenants did not renew leases, producing an expected year-over-year NOI impact of about $900,000. He said the second-quarter run rate in research is expected to reflect the remainder of the year. Ventas, Inc (NYSE: VTR) is a real estate investment trust (REIT) that specializes in healthcare-related real estate. The company acquires, owns and manages a diversified portfolio of properties serving the healthcare continuum, including senior housing communities, skilled nursing facilities, medical office buildings, life science and research centers, and other properties leased to healthcare providers and operators. Ventas generates revenue through long-term leases, property management and selective development activities focused on meeting the real estate needs of the healthcare sector. Ventas' business model combines property ownership with active asset management and capital markets activity. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ventas Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Normalized FFO per share: $0.97 for Q2 2026, representing 9% year-over-year growth. Full-year 2026 normalized FFO per share guidance: Raised to $3.85 to $3.90, equating to 8% to 10% year-over-year growth. Total company same-store cash NOI growth: 10% year-over-year in Q2 2026. US SHOP same-store NOI growth: 18% year-over-year in Q2 2026. Total SHOP same-store NOI growth: 16% year-over-year in Q2 2026. US SHOP same-store occupancy growth: 360 basis points year-over-year in Q2 2026. Total SHOP same-store average occupancy growth: 300 basis points year-over-year in Q2 2026. SHOP RevPOR growth: 5% year-over-year in Q2 2026. SHOP same-store revenue growth: Nearly 9% year-over-year in Q2 2026. SHOP same-store operating expense growth: 5% year-over-year in Q2 2026. SHOP NOI margin: 31% in Q2 2026, expanding 210 basis points year-over-year. SHOP incremental margin flow-through: 55% in Q2 2026. Outpatient Medical and Research (OM&R) same-store cash NOI growth: 5% year-over-year in Q2 2026. Outpatient Medical same-store cash NOI growth (adjusted for cash fee income): 3% year-over-year in Q2 2026. Triple Net same-store cash NOI growth: 3% year-over-year in Q2 2026. Net income attributable to common stockholders: $0.14 per share in Q2 2026. Full-year 2026 net income per share guidance: $0.58 to $0.63. Net debt to EBITDA: 4.7 times at the end of Q2 2026. 2026 investment guidance: Raised to $4.5 billion, focused on senior housing. Year-to-date 2026 investments completed: Over $3 billion focused on senior housing across 27 transactions. Average expected year one yield on 2026 senior housing investments: 6.6%. Average price per unit on 2026 senior housing investments: $358,000. Warning! GuruFocus has detected 9 Warning Sign with VTR. Is VTR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ventas Inc (NYSE:VTR) delivered 10% total company same-property NOI growth in Q2 2026, driven by strong senior housing performance. US SHOP NOI grew 18% year-over-year with 360 basis points of occupancy growth, outperforming the industry. The company raised its full-year 2026 investment guidance to $4.5 billion, up from $3 billion, reflecting strong acquisition momentum. Net debt to EBITDA improved to 4.7x, the best leverage level in over a decade, indicating strengthened financial position. Normalized FFO per share guidance was raised to $3.85-$3.90, representing 8%-10% year-over-year growth. The company faces headwinds from higher interest rates and a stronger dollar, which partially offset earnings growth. Occupancy in the non-same-store SHOP portfolio remains lower at 83%, indicating a longer runway to stabilization. The research portfolio experienced occupancy loss due to tenant non-renewals, impacting year-over-year performance. Expense growth, though moderating, remains volume-driven and could pressure margins if not managed carefully. The key selling season for senior housing is still underway, creating uncertainty in achieving full-year occupancy targets. Q: With leverage now down to 4.7 times and the balance sheet continuing to improve, should we assume acquisitions are still primarily equity funded going forward?A: Robert Probst, Executive Vice President and Chief Financial Officer: We are very proud of the 4.7 times leverage. With unsettled equity, we are in the mid-4s, which is well over a turn from last year. The playbook of equitizing senior housing investments has been both accretive and delevering, a powerful combination. Given the market backdrop, our investment opportunities, and our cost of capital, we expect this strategy to continue. Q: Can you provide some color on the subsequent investment activity in the third quarter? The yields look healthy at 6.2%, but the price per unit is quite high at $554,000. Is that still a discount to replacement cost?A: J. Justin Hutchens, Executive Vice President - Senior Housing, Chief Investment Officer: The three communities in that group include a Class A asset in Colorado purchased by our core-plus fund, and two other core-like assets in California and Arizona. They are high-quality, strong performers in markets with strong net demand, with high RevPOR and price growth opportunity. We expect the $1 billion under contract to deliver around a 6.5% yield, consistent with what we have delivered this year. Q: You mentioned the 90%+ occupied cohort is driving 25% NOI growth. How much of this is pricing versus occupancy? As you run out of occupancy opportunity, what do you think pricing can look like on an annual basis?A: J. Justin Hutchens, Executive Vice President - Senior Housing, Chief Investment Officer: The 90%+ group, which is half the US same-store portfolio, is benefiting from both occupancy and rate growth. We see 6% RevPOR growth in that group, and in the 99%+ occupied group, we see 7% RevPOR growth, demonstrating more pricing power as scarcity value plays out. This is all in an environment that is not as attractive as what is coming, as the best demographic cycle is just starting with baby boomers turning 80. Q: Given the strength of interest in the sector, is there anything holding you back from recycling capital out of outpatient medical and into senior housing?A: Debra Cafaro, Chairman and CEO: We have always taken the view that we will strongly consider any transaction that creates long-term value for shareholders, as we have proven in the past. We continue to evaluate our portfolio, but our strategy is very focused on expanding our SHOP footprint, and that is how we are thinking about strategic opportunities. Q: The midpoint of your guidance implies a second-half FFO of $0.98 per quarter, versus $0.97 in Q2. Is there conservatism in that, or are there offsets we should consider?A: Robert Probst, Executive Vice President and Chief Financial Officer: The $0.02 net increase to the guide is driven by $0.04 from higher investments, partially offset by $0.01 from higher dispositions and loan repayments, and another $0.01 from higher interest rates and a stronger share price. The $0.98 average for the back half is consistent with our $0.97 in the second quarter at the midpoint. Q: You mentioned the key selling season is on track. Is there anything underneath that comment that is not particularly exciting? Any hiccups?A: J. Justin Hutchens, Executive Vice President - Senior Housing, Chief Investment Officer: We are seeing broad-based contributions across the portfolio. Our same-store SHOP is experiencing good occupancy growth in independent living, assisted living, across our markets and operators. There is nothing within the portfolio that is of concern; we are really encouraged by the broad-based contributions. Q: With the Brookdale transition largely complete, what are you seeing in the selling season in terms of leads, move-ins, and pricing? Does it still support the opportunity to roughly double NOI over time?A: J. Justin Hutchens, Executive Vice President - Senior Housing, Chief Investment Officer: We absolutely believe in the opportunity to double the NOI in that portfolio. The former Brookdale communities are large-scale communities that we thought would benefit from an operator change and investment. All of those actions are underway this year, and we expect the opportunity to go after that doubling of NOI in the future. Q: You have done over $8 billion in investments since the beginning of 2024. With increased competition, has the number of deals funneling through to close changed? How has pricing moved?A: J. Justin Hutchens, Executive Vice President - Senior Housing, Chief Investment Officer: Cap rates have drifted down year-over-year, but we have been steady in the mid-6s for year-one yield and consistently low double-digit to mid-teens unlevered IRRs. The $1 billion under contract is two-thirds value-add with a higher growth profile, and we expect similar yields and IRRs. The market is bringing more assets, and with our competitive advantages, we are winning more than our fair share. Q: You mentioned the 10% of your portfolio that is at or near 100% occupancy. Is the efficient frontier for occupancy in the low-to-mid 90s, or should you be shooting for 100%?A: J. Justin Hutchens, Executive Vice President - Senior Housing, Chief Investment Officer: To get the performance we see in the 90%+ group, you have to be stretching to go full. We need as many communities as possible to go to 100% occupancy for the best margin expansion opportunity due to operating leverage. It is not easy, but we have 10% of the portfolio achieving it. Given the lack of frictional vacancy, the goal is to get as many communities as full as possible. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CHICAGO, July 29, 2026--(BUSINESS WIRE)--Ventas, Inc. (NYSE: VTR) ("Ventas" or the "Company") today reported results for the second quarter ended June 30, 2026. CEO Remarks "Ventas’s momentum continued in the second quarter. We delivered strong enterprise results, executing on our strategy to capture the unprecedented opportunity in senior housing through powerful organic and external growth in our Senior Housing Operating Portfolio," said Debra A. Cafaro, Ventas Chairman and CEO. "Demographic demand is strong and getting stronger as the baby boomers begin turning 80 this year. Meanwhile, new supply remains at historic lows, setting up a compelling multiyear runway for growth and value creation. "Our portfolio and platform are built to meet this moment, and we continue to expand our senior housing footprint," Cafaro continued. "We are increasing our 2026 investment volume expectations to $4.5 billion, after completing over $3 billion of attractive U.S. senior housing investments year to date and growing our active, actionable investment pipeline. Our differentiated platform, experience, industry relationships and scale are competitive advantages driving Ventas’s outperformance and elevating our industry to better serve a large and growing aging population. "We are again raising our full year earnings guidance primarily because of our increased investment activity. The Ventas team remains focused on winning together and delivering for our stakeholders as we enable exceptional environments that help people live longer, healthier, happier lives," Cafaro concluded. Second Quarter and Other 2026 Highlights Net Income Attributable to Common Stockholders ("Attributable Net Income") per share of $0.14 Normalized Funds From Operations* ("Normalized FFO") per share of $0.97, an increase of 9% year-over-year Total Company Net Operating Income* ("NOI") year-over-year growth of 17% and Total Company Same-Store Cash NOI* year-over-year growth of 10% On a Same-Store Cash NOI* basis, the senior housing operating portfolio ("SHOP") grew 16% year-over-year, with Same-Store Cash Operating Revenue* growth of 9% and Same-Store Cash NOI margin* growth of 210 basis points Year to date, the Company closed $3.4 billion of investments focused on senior housing with attractive financial return expectations, consistent with its Right Market, Right Asset, Right OperatorTM strategy To fund its 2026 investment activity, the Company settled 31.4 million shares of common stock under equity forward sales agreements year to date for gross proceeds of $2.6 billion, and currently has $1.6 billion of unsettled equity forward sales agreements, totaling $4.2 billion in equity capital *Some of the financial measures throughout this press release are non-GAAP measures. Refer to the Non-GAAP Financial Measures Reconciliation tables at the end of this press release for additional information and a reconciliation to the most directly comparable GAAP measure. Second Quarter 2026 Company Results For the Second Quarter 2026, reported per share results were: SHOP Growth In the second quarter, SHOP Same-Store Cash NOI increased 16% year-over-year, led by Same-Store Cash Operating Revenue growth of 9% and 210 basis points of Same-Store Cash NOI margin expansion. Same-Store Cash Operating Revenue growth of 9% included revenue per occupied room ("RevPOR") growth of 5% and average occupancy growth of 300 basis points year-over-year. U.S. SHOP Same-Store Cash NOI increased 18% year-over-year and average occupancy grew 360 basis points year-over-year. Investment Activity Ventas closed $2.2 billion of investments focused on senior housing in the second quarter and $3.4 billion year to date. The Company expects these investments to increase its growth rate on a multiyear basis and generate attractive financial returns. The Company is increasing its investment volume expectations for 2026 to $4.5 billion of investments focused on senior housing, up from the prior guidance of $3 billion. Financial Strength and Flexibility The Company’s Net Debt-to-Further Adjusted EBITDA* strengthened to 4.7x as of the end of the second quarter, representing nearly a full turn improvement from the prior year. The improvement was driven by SHOP NOI growth and equity-funded senior housing investments. As of June 30, 2026, the Company had $4.9 billion in liquidity, supporting Ventas’s growth and financial flexibility. Liquidity includes availability under its unsecured credit facilities, cash and cash equivalents and unsettled equity forward sales agreements outstanding. Increased Full Year 2026 Guidance The Company is increasing its guidance for the full year. The Company’s 2026 guidance contains forward-looking statements and is based on a number of assumptions, including those identified later in this press release; actual results may differ materially. Ventas expects to report 2026 per share Attributable Net Income, Nareit FFO and Normalized FFO within the following ranges: Full Year 2026 Guidance Commentary Update The increase in the Company’s guidance is primarily the result of increased accretive senior housing investment activity. Certain additional assumptions are set forth in the appendix. Investor Presentation An Earnings Presentation is posted to the Events & Presentations section of Ventas’s website at ir.ventasreit.com/events-and-presentations. Additional information regarding the Company can be found in its Supplemental posted at ir.ventasreit.com. The information contained on, or that may be accessed through, the Company’s website, including the information contained in the aforementioned Earnings Presentation and Supplemental, is not incorporated by reference into, and is not part of, this document. Second Quarter 2026 Results Conference Call Ventas will hold a conference call to discuss this earnings release on Thursday, July 30, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The dial-in number for the conference call is (888) 330-3576 (or +1 (646) 960-0672 for international callers), and the participant passcode is 7655497. A live webcast can be accessed from the Investor Relations section of www.ventasreit.com. A telephonic replay will be available at (800) 770-2030 (or +1 (609) 800-9909 for international callers), passcode 7655497, after the earnings call and will remain available for 30 days. The webcast replay will be posted in the Investor Relations section of www.ventasreit.com. About Ventas Ventas, Inc. (NYSE: VTR) is an S&P 500 company enabling exceptional environments that benefit a large and growing aging population. With approximately 1,450 properties in North America and the United Kingdom, Ventas occupies an essential role in the longevity economy. The Company’s growth is fueled by its more than 900 senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas aims to deliver outsized performance by leveraging its operational expertise, data-driven insights from its Ventas OITM platform, extensive relationships and strong financial position. The Ventas portfolio also includes outpatient medical buildings, research centers and healthcare facilities. Ventas’s seasoned team of talented professionals shares a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives. Non-GAAP Financial Measures This press release of Ventas, Inc. (the "Company," "we," "us," "our" and similar terms) includes certain financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"), such as Nareit FFO, Normalized FFO, Net Operating Income ("NOI"), Same-Store Cash NOI, Same-Store Cash NOI Growth, Same-Store Cash NOI Margin, Cash Operating Revenue and Net Debt to Further Adjusted EBITDA. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the appendix to this press release. Our definitions and calculations of these non-GAAP measures may not be the same as similar measures reported by other REITs. These non-GAAP financial measures should not be considered as alternatives for, or superior to, financial measures calculated in accordance with GAAP. Cautionary Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, statements of expectations, beliefs, future plans and strategies, anticipated results from operations and developments and other matters that are not historical facts. Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of phrases or words such as "assume," "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "line-of-sight," "outlook," "potential," "opportunity," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Forward-looking statements are based on management’s beliefs as well as on a number of assumptions concerning future events. You should not put undue reliance on these forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements. We do not undertake a duty to update these forward-looking statements, which speak only as of the date on which they are made. We urge you to carefully review the disclosures we make concerning risks and uncertainties that may affect our business and future financial performance, including those made below and in our filings with the Securities and Exchange Commission, such as in the sections titled "Cautionary Statements — Summary Risk Factors" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our subsequent Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K as we file them with the Securities and Exchange Commission. Certain factors that could affect our future results and our ability to achieve our stated goals include, but are not limited to: (a) our exposure and the exposure of our managers, tenants and borrowers to complex and evolving governmental policy, laws and regulations, including relating to healthcare, data privacy, cybersecurity, artificial intelligence, international trade and environmental matters, the impact of such policies, laws and regulations on our and our managers’, tenants’ and borrowers’ business and the challenges and expense associated with complying with such policies, laws and regulations; (b) the impact of market, macroeconomic and general economic conditions on us, our managers, tenants and borrowers and in areas in which our properties are geographically concentrated, including changes in or elevated inflation, interest rates and exchange rates, labor market dynamics and rises in unemployment, tightening of lending standards and reduced availability of credit or capital, events that affect consumer confidence, and the actual and perceived state of the real estate markets and public and private capital markets; (c) our ability, and the ability of our managers, tenants and borrowers, to navigate the trends impacting our or their businesses and the industries in which we or they operate, including their ability to respond to the impact of the U.S. political environment on government funding and reimbursement programs, and the financial condition or business prospect of our managers, tenants and borrowers; (d) our ability to achieve the anticipated benefits and synergies from, and effectively integrate, our completed or anticipated acquisitions and investments; (e) our ability to identify and consummate future investments in healthcare assets and effectively manage our portfolio opportunities and our investments in co-investment vehicles, joint ventures and minority interests; (f) the potential for significant general and commercial claims, legal actions, investigations, regulatory proceedings and enforcement actions that could subject us or our managers, tenants or borrowers to increased operating costs, uninsured liabilities, including fines and other penalties, reputational harm or significant operational limitations, including the loss or suspension of or moratoriums on accreditations, licenses or certificates of need, suspension of or nonpayment for new admissions, denial of reimbursement, suspension, decertification or exclusion from federal, state or foreign healthcare programs or the closure of facilities or communities; (g) our reliance on third-party managers and tenants to operate or exert substantial control over properties they manage for, or lease from, us, which limits our control and influence over such properties, their operations and their performance; (h) our reliance and the reliance of our managers, tenants and borrowers on the financial, credit and capital markets and the risk that those markets may be disrupted or become constrained; (i) the risk of bankruptcy, inability to obtain benefits from governmental programs, insolvency or financial deterioration of our managers, tenants, borrowers and other obligors which may, among other things, have an adverse impact on the ability of such parties to make payments or meet their other obligations to us; (j) our dependency on a limited number of managers and tenants for a significant portion of our revenues and operating income; (k) our exposure to various operational risks, liabilities and claims from our operating assets; (l) our exposure to particular risks due to our specific asset classes and operating markets, such as adverse changes affecting our specific asset classes and the healthcare real estate sector, the competitiveness or financial viability of hospitals on or near the campuses where our outpatient medical buildings are located, our relationships with universities, the level of expense and uncertainty of our research tenants, and the limitation of our uses of some properties we own that are subject to ground lease, air rights or other restrictive agreements; (m) our ownership of properties or operation of business outside of the U.S. that may subject us to different or greater risks than those associated with our domestic operations; (n) the risk that our management agreements or leases are not renewed or are renewed on less favorable terms, that our managers or tenants default under those agreements or that we are unable to replace managers or tenants on a timely basis or on favorable terms, if at all; (o) the risk that the borrowers under our loans or other investments default or that, to the extent we are able to foreclose or otherwise acquire the collateral securing our loans or other investments, we will be required to incur additional expense or indebtedness in connection therewith, that the assets will underperform expectations or that we may not be able to subsequently dispose of all or part of such assets on favorable terms; (p) risks related to the recognition of reserves, allowances, credit losses or impairment charges which are inherently uncertain and may increase or decrease in the future and may not represent or reflect the ultimate value of, or loss that we ultimately realize with respect to, the relevant assets; (q) the risk of exposure to unknown liabilities from our investments in properties or businesses; (r) the impact of merger, acquisition and investment activity in the healthcare industry or otherwise affecting our managers, tenants or borrowers; (s) risks related to development, redevelopment and construction projects, including costs associated with inflation, rising or elevated interest rates, labor conditions and supply chain pressures, and risks related to increased construction and development in markets in which our properties are located, including adverse effect on our future occupancy rates; (t) our current and future amount of outstanding indebtedness, and our ability to access capital and to incur additional debt which is subject to our compliance with covenants in instruments governing our and our subsidiaries’ existing indebtedness; (u) increases in our borrowing costs as a result of becoming more leveraged, including in connection with acquisitions or other investment activity and rising or elevated interest rates; (v) the risk of potential dilution resulting from future sales or issuances of our equity securities; (w) the availability, adequacy and pricing of insurance coverage provided by our policies and policies maintained by our managers, tenants, borrowers or other counterparties; (x) the risks or uncertainties relating to the use of, or inability to take advantage of, the benefits of artificial intelligence by us or our managers, tenants or borrowers; (y) the occurrence of cybersecurity threats and incidents that could disrupt our or our managers’, tenants’ or borrower’s operations, result in the loss of confidential or personal information or damage our business relationships and reputation; (z) the risk of catastrophic or extreme weather and other natural events; (aa) our ability to attract and retain talented employees; (bb) our ability to maintain a positive reputation for quality and service with our key stakeholders; (cc) the limitations and significant requirements imposed upon our business as a result of our status as a REIT and the adverse consequences (including the possible loss of our status as a REIT) that would result if we are not able to comply with such requirements; (dd) the ownership limits contained in our certificate of incorporation with respect to our capital stock in order to preserve our qualification as a REIT, which may delay, defer or prevent a change of control of our company; and (ee) the other factors set forth in our periodic filings with the Securities and Exchange Commission. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values historically have risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers Funds From Operations attributable to common stockholders ("FFO") and Normalized FFO attributable to common stockholders ("Normalized FFO") to be appropriate supplemental measures of operating performance of an equity REIT. The Company believes that the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses on depreciable real estate and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies. The Company believes that Normalized FFO is useful because it allows investors, analysts and Company management to compare the Company’s operating performance across periods on a consistent basis. In some cases, the Company provides information about identified non-cash components of FFO and Normalized FFO because it allows investors, analysts and our management to assess the impact of those items on our financial results. Nareit Funds From Operations Attributable to Common Stockholders ("Nareit FFO") The Company uses the National Association of Real Estate Investment Trusts ("Nareit") definition of FFO. Nareit defines FFO as net income attributable to common stockholders (computed in accordance with GAAP) excluding gains (or losses) from sales of real estate property, including gain (or loss) on re-measurement of equity method investments and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests. Adjustments for unconsolidated entities and noncontrolling interests will be calculated to reflect FFO on the same basis. Normalized FFO Attributable to Common Stockholders ("Normalized FFO") The Company defines Normalized FFO as Nareit FFO excluding the following income and expense items, without duplication: (a) gains and losses on derivatives, net and changes in the fair value of financial instruments; (b) the non-cash impact of income tax benefits or expenses; (c) gains and losses on extinguishment of debt, net including the write-off of unamortized deferred financing fees or additional costs, expenses, discounts, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of our debt; (d) transaction, transition and restructuring costs; (e) amortization of other intangibles; (f) non-cash stock-based compensation expense; (g) net expenses or recoveries related to significant disruptive events; (h) the impact of expenses related to asset impairment and valuation allowances; (i) the financial impact of contingent consideration; (j) gains and losses on non-real estate dispositions and other normalizing items related to noncontrolling interests and unconsolidated entities; and (k) other items set forth in the Normalized FFO reconciliation included herein. Nareit FFO and Normalized FFO presented herein may not be comparable to those presented by other companies, which may define similarly titled measures differently than the Company does. Nareit FFO and Normalized FFO should not be considered as alternatives to net income attributable to common stockholders (determined in accordance with GAAP) as indicators of the Company’s financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, Nareit FFO and Normalized FFO should be examined in conjunction with net income attributable to common stockholders as presented elsewhere herein. Select Guidance Assumptions: The Company’s guidance includes the following investment and disposition assumptions: Additional guidance assumptions include: Select Guidance Assumptions: The Company’s guidance includes the following investment and disposition assumptions: Additional guidance assumptions include: The Company believes that Further Adjusted EBITDA and Net Debt are useful to investors, analysts and Company management because they allow the comparison of the Company’s credit strength between periods and to other real estate companies without the effect of items that by their nature are not comparable from period to period. Adjusted EBITDA The Company defines Adjusted EBITDA as consolidated earnings before interest, taxes, depreciation and amortization (including non-cash stock-based compensation expense, asset impairment and valuation allowances), excluding (a) gains or losses on extinguishment of debt; (b) transaction, transition and restructuring costs; (c) noncontrolling interests’ share of adjusted EBITDA; (d) net gains or losses on real estate activity; (e) gains or losses on re-measurement of equity interest upon acquisition; (f) unrealized foreign currency gains or losses; (g) gains or losses on derivatives, net and changes in the fair value of financial instruments; (h) net expenses or recoveries related to significant disruptive events; and including (x) Ventas’ share of adjusted EBITDA from unconsolidated entities and (y) the impact of other items set forth in the Adjusted EBITDA reconciliation included herein. Further Adjusted EBITDA Further Adjusted EBITDA is Adjusted EBITDA further adjusted for transactions and events that were completed during the period, as if the transaction or event had been consummated at the beginning of the relevant period and considers any other incremental items set forth in the Further Adjusted EBITDA reconciliation included herein. The Company considers NOI and Cash NOI as important supplemental measures because they allow investors, analysts and the Company’s management to assess its unlevered property-level operating results and to compare its operating results with those of other real estate companies and between periods on a consistent basis. NOI The Company defines NOI as total revenues, less interest and other income, property-level operating expenses and third-party capital management expenses. Cash NOI The Company defines Cash NOI as NOI for its reportable business segments (i.e., SHOP, OM&R and NNN), determined on a Constant Currency basis, excluding the impact of, without duplication (i) non-cash items such as straight-line rent and the amortization of lease intangibles, (ii) sold assets, assets held for sale, development properties not yet operational and land parcels and (iii) other items set forth in the Cash NOI reconciliation included herein. In certain cases, results may be adjusted to reflect the receipt of cash payments, fees, and other consideration that is not fully recognized as NOI in the period. Same-Store The Company defines same-store as properties owned, consolidated and operational for the full period in both comparison periods and that are not otherwise excluded; provided, however, that the Company may include selected properties that otherwise meet the same-store criteria if they are included in substantially all of, but not a full, period for one or both of the comparison periods, and in the Company’s judgment such inclusion provides a more meaningful presentation of its segment performance. Newly acquired development properties and recently developed or redeveloped properties in the Company’s SHOP reportable business segment will be included in same-store once they are stabilized for the full period in both periods presented. These properties are considered stabilized upon the earlier of (a) the achievement of 80% sustained occupancy or (b) 24 months from the date of acquisition or substantial completion of work. Recently developed or redeveloped properties in the Company’s OM&R and NNN reportable business segments will be included in same-store once substantial completion of work has occurred for the full period in both periods presented. Our SHOP and NNN that have undergone operator or business model transitions will be included in same-store once operating under consistent operating structures for the full period in both periods presented. Properties are excluded from same-store if they are: (i) sold, classified as held for sale or properties whose operations were classified as discontinued operations in accordance with GAAP; (ii) impacted by significant disruptive events such as flood or fire; (iii) for SHOP, those properties that are currently undergoing a significant disruptive redevelopment; (iv) for OM&R and NNN reportable business segments, those properties for which management has an intention to institute, or has instituted, a redevelopment plan because the properties may require major property-level expenditures to maximize value, increase NOI, or maintain a market-competitive position and/or achieve property stabilization, most commonly as the result of an expected or actual material change in occupancy or NOI; or (v) for SHOP and NNN reportable business segments, those properties that are scheduled to undergo operator or business model transitions, or have transitioned operators or business models after the start of the prior comparison period. Constant Currency To eliminate the impact of exchange rate movements, certain of our performance-based disclosures, including Same-Store NOI for SHOP and NNN, assume constant exchange rates across comparable periods, using the following methodology: the current period’s results are shown in actual reported USD, while prior comparison period’s results are adjusted and converted to USD based on the average monthly exchange rate for the current period. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729045745/en/ Contacts BJ Grant(877) 4-VENTAS

Ventas (VTR) reported $1.73 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 21.7%. EPS of $0.97 for the same period compares to $0.15 a year ago. The reported revenue represents a surprise of +3.72% over the Zacks Consensus Estimate of $1.67 billion. With the consensus EPS estimate being $0.96, the EPS surprise was +1.04%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Ventas performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Interest and other income: $1.78 million versus $1.88 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -69.7% change. Revenues- Resident fees and services: $1.36 billion versus $1.29 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +32% change. Revenues- Income from loans and investments: $6.63 million compared to the $4.31 million average estimate based on three analysts. The reported number represents a change of +50.9% year over year. Revenues- Rental income- Outpatient medical & research portfolio: $228.61 million versus $230.35 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change. Revenues- Rental income- Triple-net leased properties: $124.86 million versus the two-analyst average estimate of $124.21 million. The reported number represents a year-over-year change of -18.2%. Revenues- Rental income: $353.46 million versus $354.18 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -5.4% change. NOI- Senior housing operating portfolio (SHOP): $403.5 million versus the two-analyst average estimate of $381.35 million. Net Earnings Per Share (Diluted): $0.14 versus $0.16 estimated by two analysts on average. NOI- Triple-net leased properties (NNN): $121.71 million compared to the $121.48 million average estimate based on two analysts. NOI- Outpatient medical & research portfolio (OM&R): $151.53 million versus the two-analyst average estimate of $152.09 million. View all Key Company Metrics for Ventas here>>> Shares of Ventas have returned +10.5% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earlier this week, Ventas, Inc. reported its second-quarter 2026 results, with Wall Street having anticipated year-over-year increases in both revenue and normalized funds from operations per share, supported mainly by the senior housing operating and outpatient medical research portfolios despite pressures from triple-net assets and higher interest expenses. An interesting angle is that analysts had slightly raised their earnings forecasts and highlighted the expected strength of senior housing and outpatient assets, signaling growing confidence in these segments as key contributors to Ventas’ performance. We’ll now examine how analysts’ upgraded earnings expectations, backed by confidence in senior housing and outpatient portfolios, influence Ventas’ broader investment narrative. Find 49 companies with promising cash flow potential yet trading below their fair value. To own Ventas, you need to believe in long term demand for senior housing and outpatient healthcare real estate, and the company’s ability to translate that into higher cash flows over time. The upcoming Q2 2026 report, with expectations for higher revenue and normalized FFO per share, speaks directly to the near term catalyst of improving performance in the senior housing and outpatient portfolios, while the biggest immediate risk remains pressure from higher interest costs and weaker triple net rent. Among recent announcements, the most relevant here is Ventas’ April 2026 decision to raise full year net income guidance, only a few months before this earnings release. That earlier upgrade set a higher bar for execution, so the Street’s modestly higher EPS forecasts for Q2 place extra attention on whether senior housing and outpatient assets can offset interest expense and triple net softness and keep earnings tracking that raised outlook. Yet while revenue and FFO expectations look constructive, investors should still be aware that interest coverage remains tight and... Read the full narrative on Ventas (it's free!) Ventas' narrative projects $8.5 billion revenue and $727.1 million earnings by 2029. This requires 11.6% yearly revenue growth and a $466.7 million earnings increase from $260.4 million today. Uncover how Ventas' forecasts yield a $96.80 fair value, a 4% downside to its current price. Three fair value estimates from the Simply Wall St Community span a wide range, from US$33.40 up to about US$119.94 per share. You can weigh these views against the current focus on senior housing and outpatient performance as key drivers of Ventas’ earnings profile and consider how different assumptions here might shape your own expectations. Explore 3 other fair value estimates on Ventas - why the stock might be worth as much as 19% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Ventas research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Our free Ventas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ventas' overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VTR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Ventas, Inc. VTR is scheduled to report second-quarter 2026 results on July 29, after market close. The quarterly results are likely to have displayed 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 94 cents, beating the Zacks Consensus Estimate of 91 cents by 3.3%. The quarterly results reflected a year-over-year increase in same-store cash net operating income on the strong performance of the senior housing operating portfolio (SHOP) and outpatient medical research (OM&R) portfolio. Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in three of the preceding four quarters and met once, with the average beat being 1.70%. The graph below depicts this surprising history: Ventas, Inc. price-eps-surprise | Ventas, Inc. Quote In the second quarter of 2026, 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 that of 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. The Zacks Consensus Estimate for second-quarter 2026 revenues is currently pegged at $1.67 billion, implying a 17.36% increase from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for second-quarter resident fees and services is pegged at $1.29 billion, suggesting an increase from $1.03 billion reported in the year-ago period. The consensus mark for outpatient medical & research (OM&R) portfolio rental income for the second quarter is pegged at $230.4 million, indicating an increase from $220.8 million reported in the year-ago period. Ventas’ activities during the soon-to-be-reported quarter have been adequate to gain analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has increased a cent to 96 cents over the past two months. The figure implies an increase of 10.34% from the year-ago quarter’s reported number. However, the Zacks Consensus Estimate for second-quarter triple-net leased properties' rental income is pegged at $124.2 million, suggesting a decrease from $152.7 million reported in the year-ago period. Our proven model doesn’t conclusively 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 not the case here. Ventas currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT industry, Extra Space Storage EXR 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. EXR, which is scheduled to report quarterly results on July 28, 2026, has an Earnings ESP of +0.39% 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 July 30, 2026. CUZ has an Earnings ESP of +0.45% 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ventas, Inc. (VTR) : Free Stock Analysis Report Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research