Ventas faces risks from fluctuating interest rates impacting debt obligations, including revolving credit, commercial paper, and mortgages. Legal proceedings, including potential claims and regulatory actions, pose a risk of substantial financial outlay. Tenant defaults, market downturns, and economic conditions affecting occupancy and revenue are also significant concerns. The company's reliance on third-party operators and tenants limits direct control over operations. Compliance with REIT requirements and potential loss of REIT status also presents a risk.
Financial Upside
Ventas anticipates strong demand and low supply in senior housing, driving profitable organic growth. Acquisitions and investments in senior housing, outpatient medical buildings, and other healthcare properties are expected to increase the portfolio and revenue base. The company's "at-the-market" equity offering program and forward sales agreements provide potential for capital raising. Positive occupancy trends and revenue per occupied room in the senior housing segment are expected to boost NOI.
