Ventas, Inc. reported a strong first quarter ended March 31, 2025, with Normalized FFO per share increasing 8% year-over-year to $0.84. Nareit FFO per share saw an even larger increase of 18% to $0.85 compared to the first quarter of 2024. These results were primarily driven by robust performance in the company's Senior Housing Operating Portfolio (SHOP).
The SHOP segment's Same-Store Cash Net Operating Income (NOI) grew by 13.6% year-over-year, fueled by a 7.4% increase in revenue. Average occupancy in the SHOP same-store portfolio rose by 290 basis points year-over-year, with U.S. average occupancy growing by 330 basis points. Revenue per Occupied Room (RevPOR) also increased by 3.8% year-over-year, or 5.0% when adjusted for the leap year impact.
Ventas has closed approximately $900 million in senior housing investments year-to-date, nearly fulfilling its original $1 billion investment guidance for 2025. Due to a growing investment pipeline, the company increased its full-year 2025 guidance for senior housing investment volume to $1.5 billion, up from the previous $1 billion. These investments are expected to generate attractive NOI yields and increase the company's growth rate.
The company's financial strength continued to improve, with Net Debt-to-Further Adjusted EBITDA reaching 5.7x, a 0.3x improvement from year-end 2024. Ventas reaffirmed its full-year 2025 guidance for Normalized FFO per share, maintaining the midpoint at $3.41. This consistent outlook, combined with accelerated investment activity, positions Ventas to capitalize on the multiyear growth opportunity in senior housing.
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