Chicago-based real estate investment trust Ventas held its third-quarter earnings call Friday, and the Murfreesboro, TN-based National HealthCare Corp. reported its earnings in a press release.
Ventas
“We’re very pleased with our enterprise and property results this quarter, led by our [senior housing operating portfolio] growth,” Ventas Chairman and CEO Debra A. Cafaro said during Friday’s earnings call.
The portfolio is benefiting from positive operating leverage, according to J. Justin Hutchens, executive vice president of senior housing.
“SHOP [net operating income] margin expanded 90 basis points in the third quarter due to stronger-than-expected revenue growth that outpaced continued elevated expenses,” he said.
SHOP same-store cash net operating income is expected to accelerate from 13% growth in the third quarter to somewhere between 15% and 20% year-over-year in the fourth quarter, Hutchens said. Increased operating costs will partially mitigate year-over-year revenue growth, however, he added.
Hutchens noted that 99% of the markets in which the real estate investment trust has senior housing properties are free from competitive new starts.
“We have had positive net move-ins for 18 of the past 19 months, and pricing power is consistently demonstrated through in-house rents and street rate increases, all working together to drive NOI growth,” he said.
Cafaro, in a press release issued in conjunction with the earnings call, said that the REIT’s balance sheet is “well-positioned with an outstanding 2023 maturity profile.
“Although we do expect to experience the effects of higher interest rates, we believe Ventas has an advantaged position with demographically driven sustainable demand and an experienced team focused on value creation for shareholders.”
Read more coverage of the earnings call in McKnight’s Senior Living.
National HealthCare Corp.
National HealthCare Corp. reported a 2.1% year-over-year decrease in net operating revenues and government stimulus income for the third quarter — $270.8 million compared with $276.8 million a year ago. The company attributed the difference to the reduction in government stimulus income of $10.4 million during the third quarter compared with the same period a year ago.
Additionally, NHC sold seven skilled nursing facilities in Massachusetts and New Hampshire during the third quarter.
“Excluding the government stimulus income, same-facility net operating revenues increased 3.8% during the third quarter of 2022 compared to the same period a year ago,” the company said.
NHC reported a net loss of $2.4 million in the quarter compared with a net loss of $3.4 million for the same period in 2021.
The company announced Friday that it will pay a quarterly dividend of $0.57 per common share to shareholders of record as of Dec. 30. It will be payable Feb. 1.
