S&P revises Ventas view to stable

S&P said it changed its outlook for Ventas Inc. to stable from negative and affirmed its BBB+ issuer rating, citing a robust recovery in its senior housing operating properties.

“Ventas' SHOP assets generated same-property net operating income (NOI) growth of 14.2% (excluding government grants) in the first quarter of 2022, and we project several years of above-average growth for this property type after significant cash flow deterioration during the height of the Covid-19 pandemic,” S&P said in a press release.

The agency said it forecasts Ventas’ adjusted debt to EBITDA to improve to the low-7x area in 2022 before reaching the mid-6x area in 2023.

“We project Ventas' SHOP assets will exhibit continued sequential improvement from the trough in occupancy in March 2021, and that a full recovery to the pre-pandemic occupancy rate is likely to occur in approximately two years,” S&P said.

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