Ventas, Inc. Reports Strong Growth Despite Recent Stock Drop

Chicago-based Ventas, Inc. (VTR) is a prominent real estate investment trust (REIT) committed to providing strong shareholder returns by creating environments that serve the growing aging population. With a market capitalization of $29.8 billion, Ventas manages numerous senior housing communities, offering essential services to residents.

Performance Comparison

Over the past year, Ventas has exceeded the broader market’s performance. The stock has surged 38.8% over the last 52 weeks and 12.1% year-to-date, significantly outpacing the S&P 500 Index (SPX), which recorded gains of 8.6% this past year and a 3.8% decline in 2025.

Narrowing the comparison further, VTR has also outperformed the iShares Core U.S. REIT ETF (USRT), which posted returns of 8.6% over the past 52 weeks and a YTD dip of 1.1%.

Financial Highlights

Despite strong financial results, Ventas’ stock fell 6.5% during the trading session that followed the release of its Q1 results on April 30. The company reported a 13.6% year-over-year growth in same-store cash net operating income (NOI) and a 13.2% increase in overall revenue, reaching $1.4 billion—surpassing analysts’ expectations. Furthermore, normalized funds from operations (NFFO) climbed 19% year-over-year to $376.7 million.

However, the increase in outstanding shares led to a modest NFFO per share growth of 7.7% year-over-year, raising it to $0.84. Demonstrating confidence in its operations, Ventas has increased its senior housing investment volume for 2025 from $1 billion to $1.5 billion. These new investments will be funded through both asset sales and equity, potentially diluting current shareholders further.

For the fiscal year 2025, Ventas expects a 7.5% year-over-year growth in NFFO per share to $3.43. The company has a solid history of surpassing analysts’ NFFO per share estimates, consistently delivering positive surprises over the last four quarters.

Analyst Ratings and Price Targets

VTR maintains a consensus rating of “Strong Buy.” Among the 20 analysts covering the stock, recommendations include 14 “Strong Buys,” two “Moderate Buys,” and four “Holds.” This is a slight improvement from three months prior when there were 13 “Strong Buy” ratings.

On May 7, RBC Capital analyst Michael Carroll upheld an “Outperform” rating for Ventas and raised the price target to $75. Currently, the mean price target of $75.84 implies a 14.9% premium over current trading levels, while the highest target of $84 suggests a potential upside of 27.3%.

On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All information in this article is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.