Ventas, Inc. reported strong earnings growth for the second quarter ended June 30, 2025, with Normalized FFO per share increasing 9% year-over-year to $0.87. Nareit FFO per share also rose 12% to $0.86 compared to the second quarter of 2024. These results were primarily driven by powerful organic and external growth in the Senior Housing Operating Portfolio (SHOP).
The SHOP segment delivered a 13% year-over-year increase in Same-Store Cash Net Operating Income (NOI), or 15% excluding a $3 million property tax refund received in Q2 2024. SHOP Same-Store Cash Operating Revenue grew 8% year-over-year, composed of 5% Revenue per Occupied Room growth and 240 basis points of average occupancy growth. Resident demand was robust and broad-based during the key selling season.
Ventas has closed $1.1 billion in senior housing investments year-to-date, demonstrating significant external growth momentum. Building on this, the company increased its investment volume expectations for 2025 to $2 billion, a substantial raise from the prior estimate of $1.5 billion. These investments are expected to generate attractive NOI yields and increase the company's multiyear growth rate.
The company's financial strength continued to improve, with Net Debt-to-Further Adjusted EBITDA reducing to 5.6x, a 0.4x reduction from year-end 2024. As of June 30, 2025, Ventas maintained a robust liquidity position of $4.7 billion. The company also improved its full-year 2025 guidance for Normalized FFO per share to a range of $3.41 - $3.46, with the midpoint increasing to $3.44, reflecting continued confidence in its performance.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.