Ventas Stock Gains 15.5% Year to Date: Will It Continue to Rise?

Shares of Ventas VTR have risen 15.5% year to date compared with the industry’s 0.9% growth.Rising healthcare spending and an aging population will aid Ventas’ senior housing operating portfolio (SHOP). Also, accretive investments in the research portfolio and a solid balance sheet bode well.Last month, the company reported second-quarter 2025 normalized funds from operations (FFO) per share of 87 cents, beating the Zacks Consensus Estimate of 85 cents. The reported figure increased 9% from the prior-year quarter’s tally.Results reflected an increase in same-store cash net operating income (NOI) year over year on strong performance in all segments. The company also raised its guidance for 2025 normalized FFO per share.Analysts seem positive on this healthcare REIT, currently carrying a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 FFO per share has been revised marginally northward to $3.46 over the past month.Image Source: Zacks Investment ResearchFactors Behind VTR’s Stock Price RiseThe senior citizen population is expected to rise in the years ahead. As a result, the national healthcare expenditures of senior citizens, who constitute a major customer base for healthcare services and incur higher healthcare expenditures than the average population, are likely to increase in the upcoming period. With an expectation of a rising senior citizens’ population in the years ahead and low new supply in its markets, Ventas is well-prepared for a compelling multi-year growth opportunity.Ventas’ senior housing portfolio is positioned in markets with favorable demographics, strong net absorption and affordability. Favorable supply-demand fundamentals, well-invested properties and operators supported by its Ventas OI platform are likely to boost growth. The company plans to continue to drive SHOP growth and expand its SHOP footprint with accretive investments. From the beginning of the year through July 30, 2025, VTR has completed investments worth $1.1 billion in senior housing. In 2025, Ventas expects its SHOP segment's same-store cash NOI to grow between 12% and16%.Amid growing outpatient trends, Ventas is committed to capitalizing on this upside within its outpatient medical and research (OM&R) portfolio. The growth in the population aged 65 years and above is driving the increase in outpatient visits, as they make three times more visits to the doctor than the general population. Therefore, the portfolio is well-positioned to capitalize on this rising demand.Ventas is carrying out accretive investments to enhance its research portfolio, which is essential for the delivery of crucial healthcare services and research related to life-saving vaccines and therapeutics. The company owns research centers in life science clusters, with a presence in some of the top-tier research university campuses. With top-rated tenants and long-term leases, its high-quality portfolio assures steady growth in cash flows.Ventas has been making efforts to enhance its liquidity position and financial strength. As of June 30, 2025, the company had approximately $4.7 billion of liquidity. In the second quarter of 2025, its net debt to further adjusted EBITDA improved to 5.6X from 5.7X at the end of the previous quarter. Management expects continued leverage improvement in the balance of this year, driven by senior housing growth.Risks Likely to Affect VTR’s Positive TrendCompetition from national and local operators limits its power to raise rents and drive profitability. Dependence on a few tenants poses key concerns for Ventas. Substantial debt burden adds to its woes.Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Host Hotels & Resorts (HST) and Terreno Realty (TRNO), each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for HST’s 2025 FFO per share is pegged at $1.95, suggesting a year-over-year decrease of 1%.The consensus estimate for TRNO’s 2025 FFO per share stands at $2.61, indicating an increase of 7.9% year over year.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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report Ventas, Inc. (VTR): Free Stock Analysis Report Terreno Realty Corporation (TRNO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks