Ventas Earnings Surge On Acquisition, Company Raises Outlook

Ventas Inc. (NYSE: VTR) reported an increase in normalized funds from operations (FFO) to $255.1 million, or $0.88 per diluted share, for the third quarter ended September 30, up 20.5% from the previous year’s $115.4 million, or $0.73 per diluted share during the third quarter of 2010.

Net income attributable to common stockholders for the quarter was $102.9 million, or $0.35 per diluted common share, compared to $57.9 million, or $0.37 per diluted common share, including discontinued operations of $0.5 million in the same period in 2010.

The company attributed its strong performance during the quarter in large part to two acquisitions.


“Our outstanding third quarter performance benefited greatly from the acquisitions of Nationwide Health Properties and Atria, which were accretive to earnings, expanded and diversified our portfolio, and improved our balance sheet and credit ratings,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said.

Additionally, Ventas closed a new $2 billion unsecured revolving credit facility, which matures in October 2015, and which the company may increase or extend over time.

The company now holds a portfolio of more than 1,300 healthcare and seniors housing assets generating $1.4 billion in net operating income, the vast majority being from private pay sources, Cafaro said.


Normalized FFO for the nine months ended September 30, 2011 was $517.6 million, or $2.45 per diluted common share, a 16.1 percent increase per diluted common share from $332.5 million, or $2.11 per diluted common share, for the comparable 2010 period.

Ventas raised its outlook for the year to FFO per diluted share between $3.34 and $3.36, an improvement upon its previously announced 2011 guidance of between $3.17 and $3.23 per diluted share. The company said this increase is the result of the acquisition of NHP and includes approximately $0.12 of second half non-cash normalized FFO per diluted share.

Written by Elizabeth Ecker

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