(Reuters) – Ventas raised the lower end of its forecast for annual funds from operations on Thursday, banking on continued strength for its assisted living and senior housing properties to drive performance.
The demand for senior housing in the United States has been increasing driven by a growing population of people over 65 and rising healthcare expenditure for senior citizens.
Same store net operating income in its senior housing operating portfolio rose 15.2% in the quarter compared to the year-ago quarter.
The company now sees 2024 normalized FFO, a key performance measure for real estate investment trusts (REITs) between $3.12 and $3.18 per share, compared to its previous view of $3.10 to $3.18 per share.
The midpoint of its forecast range was below analysts’ average estimates of $3.17 per share, according to LSEG data.
The Chicago-based healthcare-centric REIT owns and leases senior housing and healthcare properties across the United States and the United Kingdom, including outpatient medical buildings and research centers.
Its normalized second-quarter FFO was 80 cents per share, marginally above the analysts average estimate of 79 cents per share.
Peer Welltower raised its annual funds from operations (FFO) forecast last month betting on steady demand for assisted living and senior housing properties.
(Reporting by Vaibhav Sadhamta; Editing by Tasim Zahid)
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