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Why Is Ventas (VTR) Up 3.8% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Ventas, Inc. (VTR - Free Report) . Shares have added about 3.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ventas' FFO and Revenues Surpass Estimates in Q1
Ventas reported first-quarter 2017 normalized FFO of $1.03 per share. The Zacks Consensus Estimate for the same was $1.02. Normalized FFO per share in the prior-year quarter was $1.04.
The quarter witnessed decent growth in same-store cash NOI and quality investments of over $1 billion.
Ventas posted revenues of $883.4 million, which beat the Zacks Consensus Estimate of $872.2 million. It compared favorably with the year-ago number of $852.3 million.
Modest NOI Growth
For the first quarter, same-store cash NOI growth for total portfolio (1,175 assets) was 3.9% on a reported basis. Notably, the same for triple net NOI grew 4.7%, seniors housing operating portfolio same-store NOI grew 2.9% and medical office building portfolio rose 3.7%.
Notable Portfolio Activity
During the quarter, the company invested more than $1 billion. This included around $130 million purchase of a high-quality life science, research and medical complex in Providence, RI. Also, the company arranged a secured credit facility of a $700 million term loan to finance Ardent Health Services’ acquisition of LHP Hospital Group.
Ventas made the commitment to fund around $80 million of development and redevelopment projects.
During and following the quarter, Ventas sold assets and received final repayment on loans receivable for proceeds of $100 million.
Liquidity
The company has upsized its credit facility and presently it has $2.7 billion borrowing capacity under its revolving credit facility and cash in hand.
2017 Outlook
The company reaffirmed its outlook and expects 2017 normalized FFO per share in the range of $4.12 – $4.18. Also, the company anticipates same-store cash NOI growth of 1.5–2.5% in 2017.
Further, Ventas expects dispositions of $900 million in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Ventas' stock has an average Growth Score of 'C', however its Momentum is doing a bit better with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Ventas (VTR) Up 3.8% Since the Last Earnings Report?
A month has gone by since the last earnings report for Ventas, Inc. (VTR - Free Report) . Shares have added about 3.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ventas' FFO and Revenues Surpass Estimates in Q1
Ventas reported first-quarter 2017 normalized FFO of $1.03 per share. The Zacks Consensus Estimate for the same was $1.02. Normalized FFO per share in the prior-year quarter was $1.04.
The quarter witnessed decent growth in same-store cash NOI and quality investments of over $1 billion.
Ventas posted revenues of $883.4 million, which beat the Zacks Consensus Estimate of $872.2 million. It compared favorably with the year-ago number of $852.3 million.
Modest NOI Growth
For the first quarter, same-store cash NOI growth for total portfolio (1,175 assets) was 3.9% on a reported basis. Notably, the same for triple net NOI grew 4.7%, seniors housing operating portfolio same-store NOI grew 2.9% and medical office building portfolio rose 3.7%.
Notable Portfolio Activity
During the quarter, the company invested more than $1 billion. This included around $130 million purchase of a high-quality life science, research and medical complex in Providence, RI. Also, the company arranged a secured credit facility of a $700 million term loan to finance Ardent Health Services’ acquisition of LHP Hospital Group.
Ventas made the commitment to fund around $80 million of development and redevelopment projects.
During and following the quarter, Ventas sold assets and received final repayment on loans receivable for proceeds of $100 million.
Liquidity
The company has upsized its credit facility and presently it has $2.7 billion borrowing capacity under its revolving credit facility and cash in hand.
2017 Outlook
The company reaffirmed its outlook and expects 2017 normalized FFO per share in the range of $4.12 – $4.18. Also, the company anticipates same-store cash NOI growth of 1.5–2.5% in 2017.
Further, Ventas expects dispositions of $900 million in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Ventas, Inc. Price and Consensus
Ventas, Inc. Price and Consensus | Ventas, Inc. Quote
VGM Scores
At this time, Ventas' stock has an average Growth Score of 'C', however its Momentum is doing a bit better with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.