Ventas Books $60.9 Million In Tax Benefits In Nine Months As Third-Quarter Earnings Per Share Slip
Reversals of tax reserves, not property income, account for the nine-month profit gain, while impairments rose to $110.0 million.
Ventas, which owns senior housing communities, medical office buildings and other healthcare real estate, booked $60.9 million in income tax benefits over the first nine months of 2026, against $13.0 million a year earlier, according to its 10-Q filed Wednesday. That swing is larger than the entire rise in nine-month profit, and third-quarter earnings per share still fell.
The tax line outruns the profit gain
Net income attributable to common stockholders reached $191.9 million for the nine months, from $181.2 million a year earlier, a rise of $10.7 million. The tax benefit grew by far more than that, so the gain would not exist without it.
The filing attributes the benefits primarily to reversing valuation allowances, reserves held against deferred tax assets, at certain taxable subsidiaries. Those were partly offset by new allowances at other subsidiaries.
In the third quarter, a $19.3 million tax benefit, up from $6.3 million, sat beside net income attributable to common stockholders of $65.4 million, down from $66.0 million. Diluted earnings per share slipped to $0.13 from $0.14. Normalized funds from operations, the REIT profit measure that strips out items such as tax benefits, rose 10% per share to $0.99, the company's earnings release said.
Impairments climb, depreciation swells
Real estate impairments, write-downs of property carrying values, reached $110.0 million for the nine months, from $85.4 million. Senior housing accounted for $74.7 million of this year's total. In the third quarter alone they were $49.7 million, against $28.3 million.
The explanation shifted slightly from the prior quarter. Then, the filing cited "a change in our intent to hold or a change in the expected future cash flows." Now it says the charges were "attributable to changes in our intent to hold certain assets or decreases in their expected future cash flows."
Depreciation and amortization rose $209.8 million for the nine months, with $196.5 million tied to recent acquisitions and $24.6 million to higher impairments.
A senior housing buying spree
Senior housing operations drove the business. Segment net operating income rose 41.6% for nine months to $1.21 billion, and the segment made up 58.6% of the total. Triple-net leased income fell 19.7%, largely as communities converted to the operated segment.
Ventas bought 101 senior housing communities for $3.9 billion in the nine months, then 13 more in October for $803.5 million. It funded much of this by settling 47.3 million shares under forward sales agreements for net proceeds of $3.9 billion, and total debt fell to $12.4 billion from $13.0 billion at year-end.
In October it also sold one senior housing community and seven outpatient medical properties for $135.8 million and expects a $77.4 million gain, and repaid $450.0 million of 3.25% notes at maturity. Ventas had a market value of $42.7 billion as of Wednesday's report.
The $77.4 million expected gain from October's sales will land in the fourth quarter, when the company next reports.
Sources
- 10-Q Filing — Ventas Inc. (VTR) — SEC EDGAR
- 10-Q Filing — Ventas Inc. (VTR), Q2 FY2026 filed 2026-07-30 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, q32026earningsrelease.htm) — Ventas Inc., filed 2026-10-27 — SEC EDGAR
- Ventas Q3 FFO & Revenues Beat Estimates on Strong SHOP Growth — Yahoo Finance
- Ventas outlines $3.87-$3.90 2026 normalized FFO per share outlook as SHOP investment closes reach $5.2B (NYSE:VTR) | Seeking Alpha — seekingalpha.com
- Ventas Q3 earnings, revenue beat on senior housing organic growth (VTR:NYSE) | Seeking Alpha — seekingalpha.com
- Ventas (VTR) Reports Q3 Earnings: What Key Metrics Have to Say — Yahoo Finance
- Ventas (VTR) Q3 FFO and Revenues Top Estimates — Yahoo Finance
