Ventas Stock Gains 10.9% in Three Months: Will it Continue to Rise?

Shares of Ventas VTR have gained 10.9% over the past three months against the industry’s 1.3% fall.Ventas’ diverse portfolio of healthcare real estate assets in key markets, including the United States and the U.K., is poised to capitalize on favorable industry fundamentals. The senior housing operating portfolio (SHOP) is likely to benefit from the aging population and the rising healthcare expenditures by senior citizens. The outpatient medical (OM) portfolio is expected to gain from the favorable outpatient visit trends. Ventas’ accretive investments to expand its research portfolio also look promising.Analysts seem positive on this Zacks Rank #3 (Hold) REIT. The Zacks Consensus Estimate for 2025 FFO per share has been revised marginally northward to $3.48 over the past two months. Image Source: Zacks Investment Research Let us decipher the possible factors behind the surge in the stock price for this company.The senior citizens’ population is expected to increase in the years ahead. According to Ventas’ third-quarter 2025 earnings presentation, the U.S. population aged 80 years and above is expected to grow 28% over the next five years, driving significant demand for senior housing. Hence, Ventas is well-prepared for a compelling multiyear growth opportunity with an expectation of a rising senior citizens’ population in the years ahead and low new supply in its markets.Ventas’ senior housing portfolio is positioned in markets with favorable demographics, strong net absorption and affordability. This healthcare REIT is experiencing healthy occupancy levels, backed by an acceleration in the SHOP demand. It plans to continue to drive SHOP growth and expand its SHOP footprint with accretive investments. The strategy of converting its lower-occupied triple-net communities to SHOP bolsters the long-term growth potential in the SHOP portfolio. In the third quarter of 2025, Ventas generated 15.9% same-store cash NOI year-over-year growth in the SHOP portfolio.Amid growing outpatient trends, Ventas is committed to capitalizing on this upside within its OM&R portfolio, which includes outpatient medical buildings and research centers. From 2020 to 2030, the 65+ aged population is expected to grow approximately 30%. Therefore, this portfolio is well-positioned to capitalize on this rising demand.Ventas follows a disciplined capital-recycling strategy, through which it disposes of non-core assets and redeploys the proceeds in premium asset acquisitions. Such efforts help the company improve its financial position and address the concerns surrounding the tenant base. In the third quarter of 2025, Ventas sold four properties in its OM&R segment for $9.8 million and five senior housing communities from its SHOP segment for $68.1 million at its share. During the same period, it acquired 20 senior housing communities as part of its SHOP segment for $1.1 billion at its share.Ventas has been making efforts to enhance its liquidity position and financial strength. As of Sept. 30, 2025, the company had approximately $4.1 billion of liquidity. In the third quarter of 2025, its net debt to further adjusted EBITDA improved to 5.3X from 6.3X at the prior-year quarter end. Its access to diverse capital sources through capital recycling, third-party (VIM), on-balance sheet financing and internal cash flow provides ample financial flexibility and is likely to support its growth endeavors.With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.Risks Likely to Affect VTR’s Positive TrendVentas operates in a competitive market and competes with national and local healthcare operators. Also, the company’s operators contend with peers for occupancy. This significantly limits its power to raise rents and drive profitability, as well as crack deals at attractive rates.Moreover, the company has a substantial debt burden, and its total debt as of Sept. 30, 2025, was approximately $12.57 billion. With a high level of debt, interest expenses are likely to remain elevated.Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Digital Realty Trust DLR and OUTFRONT Media OUT, 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 DLR’s 2025 and 2026 FFO per share is pinned at $7.35 and $7.91, respectively. This calls for year-over-year growth of 9.5% for 2025 and 7.6% for 2026.The Zacks Consensus Estimate for OUT’s 2025 and 2026 FFO per share is pegged at $1.94 and $2.15, respectively. This implies year-over-year growth of 7.8% for 2025 and 10.7% for 2026.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.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Ventas, Inc. (VTR): Free Stock Analysis Report Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report OUTFRONT Media Inc. (OUT): 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