(Reuters) – Healthcare REIT Ventas slightly raised the lower end of its annual funds from operations (FFO) forecast on Wednesday, expecting continued strong performance from its assisted living and senior housing properties.
The company now sees its 2024 normalized FFO to be between $3.14 and $3.18 per share, compared to its previous estimate of $3.12 and $3.18 per share.
However, the midpoint of the new forecast range was slightly below analysts’ average estimate of $3.17 per share.
The Chicago-based healthcare-centric REIT owns and leases senior housing and healthcare properties in the United States and the United Kingdom, including outpatient medical buildings and research centres.
Demand for senior housing is increasing due to an ageing population in the United States and rising healthcare expenditure among senior citizens.
Earlier this week, peer Welltower raised its annual FFO forecast due to resilient demand for senior housing.
Same-store net operating income in company’s senior housing operating portfolio rose 15.3% compared to the quarter a year ago.
In the third quarter, the company’s normalized FFO, a key performance measure for REITs, was 80 cents per share, in line with analysts’ average estimate, according to data compiled by LSEG.
(Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Mohammed Safi Shamsi)
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