What Management Said

Read the full Q1 2026 transcript ↗

Yesterday, we issued our Q1 2026 earnings release, presentation materials, and supplemental information package, which are available on the Ventas website at ir.ventasreit.com. For a more detailed discussion of those factors, please refer to our earnings release for this quarter and to our most recent SEC filings, all of which are available on the Ventas website. Ventas continues to drive growth and outperformance as a leading participant in the longevity economy. We're already into our fifth consecutive year of double-digit annual growth in our senior housing operating portfolio, or SHOP.

Even more exciting, this year represents a new and positive inflection point when demographic demand jumps and growth remains elevated for over a decade. Our business and team have been built to meet this moment and seize the unprecedented opportunity for multi-year growth and value creation. Our excellent Q1 results and improved full-year outlook demonstrate our competitive advantages, the impact of our differentiated platform, strong execution of our one, two, three strategy, and our momentum. In the quarter, Ventas delivered 9% year-over-year growth in total same-store property NOI and normalized FFO per share.

occupancy increased 370 basis points, fueled by broad-based demand and our Ventas OI initiatives. Accretion from senior housing investment activity further contributed to our growth in the quarter, showing our strategy in action. Notably, our liquidity reached record levels, and our financial position continued to strengthen. We have now increased our 2026 investment volume guidance to $3 billion.

What went well
  • SHOP same-store NOI grew over 15% year-over-year, the start of the fifth consecutive year of double-digit SHOP NOI growth, with NOI margins expanding 170 basis points to 30% and 50% incremental margins.
  • U.S. same-store occupancy increased 370 basis points year-over-year, outperforming the NIC top 99 markets by 150 basis points; overall same-store average occupancy reached 90.4%, up 310 basis points.
  • Normalized FFO of $0.94 per share grew 9% year-over-year, driven by nearly 9% total company same-store property growth and accretive senior housing investments.
  • Completed $1.7 billion of high-quality U.S. senior housing acquisitions year to date, of which more than 90% were relationship driven, over 60% sourced off market, and more than 40% with repeat sellers.
  • Balance sheet strengthened with net debt to EBITDA improving to 5x (a 20 basis point sequential improvement) and record liquidity of $5.5 billion.
What went wrong
  • Operating expenses increased 5.8% year-over-year, largely driven by higher occupancy levels and winter storm-related costs; the full-year OpEx guide was raised from 5% to 5.5%, principally due to volume.
  • The acquired Revel portfolio carried average in-place occupancy in only the mid-70% range, reflecting lease-up underperformance concentrated in more recent deliveries that requires execution to improve.
  • Cap rates have drifted down from the 7% range into the 6% range amid heightened competition and new capital entering the sector, with all-in pricing around 6.5% including Revel.
  • Guidance reflected a $0.01 per share headwind from the higher forward interest rate curve, partially offsetting favorable organic and investment items.

Guidance Changes

MetricPeriodCurrent guidance
Normalized FFO per shareFY2026$3.82-$3.89, $3.86 midpoint (+$0.03)
SHOP same-store NOI growthFY202616% midpoint
Total company same-store cash NOI growthFY2026nearly 10% at midpoint
SHOP occupancy growthFY2026approximately 300 bps
SHOP revenue growthFY2026approximately 8.75%
Senior housing investment volumeFY2026$3 billion
SHOP operating expense growthFY20265.5%

Performance Breakdown

MetricYoYNote
SHOP same-store NOI over 15% Combination of occupancy growth, pricing strength, operating leverage, and Ventas OI initiatives.
Normalized FFO per share 9% ($0.94) Total company same-store property growth of nearly 9% and accretive senior housing investments.
U.S. same-store occupancy +370 bps Broad-based demand and Ventas OI initiatives; outperformed NIC top 99 markets by 150 bps.
Same-store average occupancy +310 bps to 90.4% Broad-based demand across many operators.
RevPOR 5% In-house rate increases running near 8% plus continued improvement in street rates across geographies, operators, and product types.
SHOP NOI margin +170 bps to 30% Operating leverage with 50% incremental margins.
OMAR same-store cash NOI 2.4% Led by outpatient medical growing 3.1%, with occupancy reaching almost 91% (7th consecutive quarter of occupancy growth).
Triple net same-store cash NOI 1.6% Benefited from the 35% Brookdale cash rent escalator effective January 1, 2026.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Senior housing demand-supply imbalanceDemographic demand accelerating with baby boomers turning 80; supply at historic lows.Nearly 70 million baby boomers start turning 80 in 2026, this group growing nearly 30% over five years; only about 1,500 senior housing units started in Q1, with construction at historic lows and a three-year development cycle.—
Investment environment and competitionIncreased interest in the sector; guidance $2.5 billion.More owners bringing assets to market expanding the pipeline; raised investment guidance to $3 billion (highest in three years); cap rates drifting into 6% range but IRRs holding solid due to value-add deals like Revel.—
Ventas OI platform and operatorsEvolving platform deployed with operators.Fully integrated across all operators (now 44); a competitive moat enabling management of operators at scale in a fragmented sector.—
Brookdale transition (45 communities)45 communities transitioned to SHOP late 2024/early 2025 with ~$50M NOI run rate.All five operators fully integrated, CapEx deployment on track to complete majority by next month; 2026 is the year to put pieces in place with NOI growth opportunity (doubling) in 2027 and beyond.—
Portfolio mix and diversificationSHOP growing as a share of NOI.Senior housing now over 60% of business; other portfolio segments becoming a smaller portion by design under the one, two, three strategy; open to portfolio actions but focused on growing SHOP.—

Q&A Summary

What drove the underperformance of the Revel portfolio at mid-70% occupancy, and what can Ventas OI improve near and long term?
Justin Hutchens explained Revel was built by Wolff Company (a large multifamily developer based in Scottsdale) offering resort-like, highly amenitized luxury independent living; after a slow start they built a talented team. Ventas likes the high asset quality bought below replacement cost, significant operational upside, and immediate sales upside with the team already on the ground, playing into a market with 1,200 basis points of net demand over the next few years.
How would you describe current competition and capital chasing transactions, and have cap rate expectations changed?
Hutchens noted more interest in the sector with new investors, varied PE, owner-operators, other REITs, and institutional capital, yet Ventas raised guidance to $3 billion with high confidence due to its competitive moat (Ventas OI, managing 44 operators at scale, no financing contingency, high liquidity, track record). Cap rates have drifted from 7% into the 6% range (printed around 6.5% all-in including Revel, 6.9% without), expecting high 6% going forward; IRRs remained solid because of value-add deals.
On expenses up 5.8% in Q1, how much is recurring (food/labor) versus temporal (commissions/weather)?
Hutchens clarified the 5.8% was total expenses, much of it weather-related plus some volume impact; the full-year guide is 5.5% including the weather expense and volume impacts. Bob Probst added the principal driver of the OpEx guide moving from 5% to 5.5% is volume.
With occupancy now above 90%, when could incremental margins improve from 50% into the 60%-70% range?
Hutchens said incremental margin has been around 50% for years on the journey from mid-80s to 90% occupancy and guidance assumes the 50s this year. Communities in the 90%+ range with flat year-over-year occupancy deliver a 70% incremental margin; with the U.S. portfolio only 87% occupied, the goal over time is to move as many communities into that category as possible.
Provide an update on the Brookdale transitions and the 45 assets trending toward $50 million of upside.
Hutchens said the 45 large-scale communities in high-demand markets transitioned from the Brookdale lease to SHOP require additional investment; a majority of CapEx will be completed by next month and all five operators are fully integrated and focused on the key selling season. 2026 is the year to put pieces in place, with 2027 and beyond the NOI growth opportunity; they anticipate doubling the roughly $50 million run rate over the next few years.
Are you seeing entrance fees or waitlist revenue given tight markets?
Debra Cafaro emphasized the private-pay consumer-driven value proposition. Hutchens reframed entrance fees as community fees, a long-standing industry pricing element that is now going up given increased demand; waitlists are forming (longest existing in Quebec, Canada, with some now in the U.S.), and deposits are required, supporting better pricing.

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Q1 2026 call
Reported 2026-04-28 · figures from the Ventas, Inc. Q1 2026 earnings call.

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