Updated Aug 6 at 2:14pm ET.
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KeyBanc raised its price target for the company to $275, which is about 17 percent higher than the current price. This move follows a strong quarterly report where the business showed it is successfully raising rents and filling more rooms in its senior housing portfolio.
For a company like this, analyst target increases often reflect confidence that the recovery in senior living is accelerating. While a target is just an estimate, this specific jump suggests the firm sees more room for the stock to rise as the company's profits grow faster than previously expected.
Source: KeyBanc
The company reported quarterly results that show the recovery in senior housing is gaining speed. Its normalized funds from operations, a key measure of cash flow for real estate companies, rose 25 percent compared to the same time last year. This growth was fueled by a 15.5 percent increase in profit from its existing properties, led by its senior housing division.
Occupancy in these buildings rose by 3.3 percentage points, and the company was able to raise rents by over 5 percent. This combination of more residents and higher prices is the core engine for the business. Management also stayed aggressive on growth, closing or committing to over 15 billion dollars in new investments so far this year, which should add more cash flow in the coming quarters.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has a long streak of beating expectations, often by a wide margin. It shows they are consistently under-promising and then outrunning their own forecasts as the senior housing market recovers.
| Expectation | |
|---|---|
| EPS | $0.68 |
| Revenue | $3.58B |
