Ventas Inc. Earnings Cheat Sheet: FFO Rises Double-Digits

S&P 500 (NYSE:SPY) component Ventas Inc. (NYSE:VTR) reported its results for the fourth quarter. Ventas is a real estate investment trust, with a portfolio of seniors housing and healthcare properties.

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Ventas Earnings Cheat Sheet for the Fourth Quarter

Results: The company’s funds from operations (FFO) rose 15.6% from the year earlier quarter to 89 cents. It was in line with the consensus estimate. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.

Quoting Management: “Ventas delivered excellent results in 2011, as our portfolio performed well while we successfully integrated over $11 billion of accretive acquisitions,” Ventas Chairman and CEO Debra A. Cafaro said. “We have a highly diversified portfolio approaching 1,400 properties, with nearly 80 percent of our annualized revenues derived from private pay sources, an outstanding balance sheet and an attractive cost of capital. We have positioned Ventas to be a leader in the $1 trillion healthcare real estate market as it consolidates,” she said. “Our proven and dedicated management team will use these powerful attributes to deliver consistent superior total returns to our shareholders.”

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 91 cents per share from 89 cents. For the fiscal year, the average estimate has moved up from $3.25 a share to $3.27 over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com