Ventas Q1 Revenues Rise 24%, Fueled by Medical Office Assets

Ventas, Inc. (NYSE: VTR) announced today that normalized funds from operations (FFO) for the quarter ended March 31, 2013 increased 14.3% to $301.6 million.

Normalized FFO per diluted common share was $1.03 for the first quarter of 2013, a 13% increase from $0.91 for the same period in 2012.

“We are pleased to report that we have sustained excellent results, delivering consistent superior performance to stakeholders,” said Ventas Chairman and CEO Debra A. Cafaro. “Our high-quality and diverse portfolio, our team and our accretive investments all contributed to outstanding FFO and same-store property NOI growth, as well as the increase in our 2013 dividend.”


Net income attributable to common stockholders for the first quarter of 2013 was $112.2 million, or $0.38 per diluted common share.

This $21.6 million increase from the same quarter in 2012 was primarily the result of the increases for normalized FFO, changes in losses on extinguishment of debt and income taxes, partially offset by year-over-year changes in discontinued operations and additional depreciation and amortization, the company said.

First quarter revenues  increased 21% to $684.9 million.


As of March 31, 2013, Ventas’ seniors housing operating portfolio included 220 communities, 125 of which managed by Atria and 95 communities managed by Sunrise. Net operating income after management fees for this portfolio stood at $108.1 million.

For the 195 private-pay senior housing communities owned by Ventas for the full first quarters of 2013 and 2012, average occupancy rose 270 basis points to 91.1%, with NOI after management fees growing 7.3%.

Ventas has reaffirmed its normalized FFO per diluted share guidance in the range of $3.99 to $4.07 for full-year 2013, excluding the impact of unannounced acquisitions, divestitures and capital transactions.

“Our powerful platform, financial strength and liquidity have built a company with an enterprise value exceeding $31 billion that produced total return to shareholders of more than 22 percent year to date and 888 percent over the last decade,” said Cafaro. “We are excited about our future opportunities.”

Written by Jason Oliva

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