Healthcare REIT Ventas reports rise in Q4 FFO

Ventas

14/02/2024 23:20

Feb 14 (Reuters) - Ventas  VTR.N  recorded a 4.1% rise
in its fourth-quarter normalized funds from operations (FFO) on
Wednesday, led by strong demand for its assisted living and
senior housing properties.
    The real estate investment trust (REIT), however, said
growth in its senior housing portfolio in 2024 will likely be
partially offset by higher interest expenses and forecast
full-year normalized FFO below expectations.
    The Chicago-based company said it expects 2024 normalized
FFO in the range of $3.07 to $3.18 per share, compared to
analysts' average estimates of $3.21 per share, according to
LSEG data.
    Shares of the company were down 2.6% in after-the-bell
trading.
    There has been a growing demand for senior housing due to an
ageing U.S. population. Still, new facilities have been slow to
come up in a high-interest rate environment and an uncertain
macroeconomic situation.
    Between 2009 and 2019, the number of people in the U.S. aged
65 and over increased by 14.4 million or 36%, outpacing the 3%
increase for the under-65 population, according to a report from
the U.S. Department of Health and Human Services.
    Elevated interest rates make borrowing expensive for the
company, which owns senior housing and healthcare properties
across the United States and the United Kingdom.
    The company's normalized fourth-quarter funds from
operations were 76 cents per share, above 73 cents a year ago.
    Same-store net operating income from its senior housing rose
15% in the quarter. 

 (Reporting by Puyaan Singh in Bengaluru; Editing by Tasim
Zahid)
 ((Puyaan.Singh@thomsonreuters.com;))