Ventas 3Q Non-GAAP FFO 66 Cents, Tops Analysts' Views
October 29 2009 - 8:00AM
Dow Jones News
NEW YORK (Dow Jones)-Ventas Inc.'s (VTR) third-quarter funds
from operations fell, yet topped analysts' expectations, helped in
part by rent increases and strength in its medical office building
portfolio.
The health care real estate investment trust whose properties
include senior housing communities, skilled nursing facilities and
hospitals also raised its 2009 adjusted FFO forecast.
The Chicago company, said third-quarter FFO fell to $98.3
million, from $113 million, a year earlier. On a per-share basis,
FFO fell to 63 cents a share, from 80 cents a share. Adjusted FFO
decreased to 66 cents from 68 cents, a year ago.
Analysts, on average, expected FFO, which is a key industry
figure of performance, of 63 cents a share, according to Thomson
Reuters.
For the year, the Chicago company said it now expects adjusted
FFO per share of $2.62 to $2.65 a share, improving upon its
previous view of $2.55 to $2.62 a share.
Health care REITs have seen their shares run up in recent
months, as their generally strong balance sheets and potential for
acquisitions has caught the attention of many investors. Not to
mention, the nature of their cash flows, compared to their peers in
the multi-family or office space, for example, has helped them be
more resilient in the down economy, said David Aubuchon, analyst at
Robert W. Baird & Co.
Ventas, like other health care REITs, has actively boosted its
capital and liquidity position by selling stock and notes, and
using some of the proceeds to pay off debt.
Even so, senior housing occupancy has been challenged as the
recession has held back some seniors from selling homes and in turn
postponed their moves into REIT-owned facilities.
Shares closed Wednesday at $39.01 and didn't trade
premarket.
-By Veronica Dagher, Dow Jones Newswires; 212-416-2261;
veronica.dagher@dowjones.com