Ventas Reports Higher FFO And Cuts Forecasts With Q1 Results

ventas Ventas (the Company) reported last week that first quarter profitability rose 5% and beat analyst’s estimates with a reported “normalized” funds from operations (FFO) of $95.7 million, or 67 cents a share, compared with $91.5 million, or 67 cents a share, in the first quarter of 2008.  Ventas reduce its full-year outlook for normalized FFO to $2.48 to $2.58 a share, down from $2.55 to $2.65.

The company cut the full year forecast due to costs related to a stock and debt offering during the quarter.  Ventas reported updated infomration additional on its liquidity and borrowing capacity as well as the various sales of facilities including:

  • The Company made an investment of $8.8 million in Brookdale Senior Living Inc.’s (NYSE: BKD) (“Brookdale”) $230 million secured revolving line of credit and purchased a skilled nursing facility attached to one of its existing seniors housing assets operated by Brookdale for $10.0 million.
  • As previously announced, in January 2009, Ventas sold four seniors housing assets for an aggregate sale price of $58.7 million, representing an 8.5 percent capitalization rate on rent. Ventas recognized a gain from the sale of approximately $11.2 million in the first quarter of 2009.
  • Ventas sold a hospital, an MOB and one seniors housing asset to the current tenants for $36.8 million in all-cash transactions. The Company recognized a net gain from the sales of approximately $16.3 million in the first quarter of 2009. The sales price represented a 6.8 percent capitalization rate on cash rent.
  • As previously announced, the Company has agreed to sell six underperforming skilled nursing facilities containing 777 beds to Kindred Healthcare Inc. (NYSE: KND) (“Kindred”) for total consideration of $58 million, including a $2.3 million lease termination fee. Kindred has stated that it will classify these facilities in discontinued operations and expects to sell them for $10 million to $15 million.

For more information, visit their 8-k filing here.