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Research Alert: CFRA Keeps Buy Opinion On Shares Of Ventas, Inc.
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Research Alert: CFRA Keeps Buy Opinion On Shares Of Ventas, Inc.
May 26, 2025 12:49 AM

01:40 PM EDT, 05/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $4 to $76, reflecting a forward P/FFO of 21.7x our 2025 FFO estimate, a premium to VTR's historical forward three-year average (16.4x) due to favorable demographic tailwinds and continued Senior Housing Operating (SHO) execution. We increase our 2025 FFO estimate by $0.07 to $3.50 and increase 2026 FFO by $0.17 to $3.77. SHO property acquisition costs are rapidly increasing with the cost per unit currently $350K, up from $270 in 2024 (with cap rates in 7% range). Management noted that replacement and new build costs typically start in the $400K range and the company believes that acquisitions remain attractive. Brookdale property transition is going smoothly, as 45 properties move from triple-net least to SHOP operation. Management expects NOI to double from $50 million to $100 million over time and conversions are expected to continue into late 2025, now that VTR has selected the five operators for these properties.

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