Ventas Inc. Results Earnings Cheat Sheet: FFO Climbs

S&P 500 (NYSE:SPY) component Ventas Inc. (NYSE:VTR) reported results for the third 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 Third Quarter

Results: Normalized Funds from Operations (FFO) of $225.1 million (88 cents a share) vs. $115.4 million (73 cents a share) a year earlier. This is a more than twofold increase. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.

Actual vs. Wall St. Expectations: VTR beat the mean analyst estimate of 82 cents per share.

Quoting Management: “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. “Today we are a stronger Company, with multiple avenues of growth and a diversified portfolio of over 1,300 productive healthcare and seniors housing assets generating $1.4 billion in net operating income, the vast majority of which comes from private pay sources.”

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 fourth quarter has risen to 83 cents per share from 81 cents. In the past month, the average estimate for the fiscal year has fallen from $3.18 per share to $3.16 abs.

Competitors to Watch: Nationwide Health Properties Inc. (NYSE:NHP), Universal Health Realty Income Trust (NYSE:UHT), Senior Housing Properties Trust (NYSE:SNH), National Health Investors Inc (NYSE:NHI), Health Care REIT, Inc. (NYSE:HCN), Medical Properties Trust, Inc. (NYSE:MPW), Omega Healthcare Investors, Inc. (NYSE:OHI), HCP, Inc. (NYSE:HCP), LTC Properties, Inc. (NYSE:LTC), and Healthcare Realty Trust Inc. (NYSE:HR).

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(Source: Xignite Financials)