Ventas Inc. announced its second quarter earning that show improvement on many fronts but faces some challenges in the coming quarters between litigation and $18.8 million in total debt maturities remaining in 2009 and
$172.8 million in total debt maturities in 2010. The company reported that its Funds From Operation (FFO) increased 7.6 percent to $105.1 million, from $97.8 million for the comparable 2008 period. The company’s net income attributable to common stockholders for the six months ended June 30, 2009 was $162.6 million, or $1.09 per diluted common share, after discontinued operations of $71.2 million, compared with net income attributable to common stockholders for the six months ended June 30, 2008 of $101.3 million, or $0.74 per diluted common share, after discontinued operations of $31.0 million.
“Strong cash flow and successful capital markets execution contributed to our excellent second quarter, as we continue to build financial strength and liquidity,” Ventas Chairman, President and Chief Executive Officer
Debra A. Cafaro said. “Our high-quality, diversified healthcare and seniors housing assets are performing very well due to demographic and need-driven demand, and Ventas is well positioned to deliver value to our
constituents.
These results included some one time items related to the gain on sale from a previously reported sale of a facility and the company noted that its Sunrise Senior Living (NYSE:SRZ) portfolio showed signs of increased occupancy and lower expense during the quarter. Ventas increased its guidance its 79 high-quality seniors housing assets operated by Sunrise to generate between $122 million and $129 million in NOI for the full year, improving its previously announced range of $110 million to $125 million.
“We are pleased to increase our guidance for both normalized FFO per diluted share and NOI from our Sunrise operating portfolio. Our aim is to deliver strong cash flow while maintaining a best in class balance sheet. That combination should create value for Ventas shareholders.”
Fitch Ratings upgraded Ventas’s unsecured debt rating to BBB from BBB-, with a stable outlook earlier in the month.
For the full earnings release click here.
