Ventas (NYSE: VTR) closed at $82.04 on October 9 and has returned -2.8% over six months, trailing the 24.3% gain of the Insider Monkey Billionaire Index and the 15.1% gain of the SPDR S&P 500 ETF Trust. The article argues that the payout ratio above 370% is a distortion caused by large real estate depreciation, which is deducted before earnings, while free cash flow of about a billion dollars actually funds the dividend. Revenue grew 21.70% in the latest quarter, helped by senior housing occupancy that is still recovering. However, coverage is thin: the current ratio is 0.30 against $12.92 billion of debt, and ROE of 2.01% sits below ROA of 2.17%. The author says senior housing occupancy is the key swing factor in both directions.
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