Ventas Stock Rallies 16.3% Year to Date: Will the Trend Last?

Shares of Ventas VTR have risen 16.3% year to date compared with the industry’s 4.4% growth.The company’s diverse portfolio of healthcare real estate assets in the key markets of the United States and the U.K. is well-poised to capitalize on favorable industry fundamentals. The senior housing operating portfolio (SHOP) is likely to benefit from the aging population and rising healthcare expenditures by senior citizens. The outpatient medical portfolio is expected to gain from favorable outpatient visit trends.Ventas’ strategic portfolio rebalancing efforts will likely drive future revenue growth. A healthy balance sheet position is likely to support its growth endeavors.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 two months.Image Source: Zacks Investment ResearchFactors Behind VTR’s Stock Price RiseThe senior citizen population is expected to rise in the years ahead. Ventas is still in the early innings of this multi-year growth opportunity in senior housing, as the population aged 80 years and above is surging, and construction starts have fallen to historic lows. Moreover, the healthcare sector is relatively immune to macroeconomic uncertainty compared with office, retail and apartment companies, as consumers still need to spend on healthcare services while curtailing discretionary purchases. This aspect of the industry provides stability to the company during tough economic conditions and shields it from market volatility.Ventas’ senior housing portfolio is positioned in markets with favorable demographics, strong net absorption and affordability. Since December 2020, the company has expanded its operator base from 10 to 36 as of July 2025, enhancing its ability to grow in high-demand markets. The strategy of converting its lower-occupied triple-net communities to SHOP bolsters the long-term growth potential in the SHOP portfolio. In the second quarter of 2025, Ventas generated 13.3% 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 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 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 July 2025, Ventas sold three properties in its OM&R segment for $9.4 million and acquired five senior housing communities as part of its SHOP segment for $147.7 million.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. 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.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 SL Green Realty SLG and VICI Properties VICI, 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 SLG’s 2025 FFO per share has been raised by around 2% over the past two months to $6.21.The consensus estimate for VICI’s current-year FFO per share has moved marginally northward in the past two months to $2.39.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.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 Ventas, Inc. (VTR): Free Stock Analysis Report SL Green Realty Corporation (SLG): Free Stock Analysis Report VICI Properties Inc. (VICI): 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