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Ventas' (VTR) FFO and Revenues Surpass Estimates in Q1
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Ventas, Inc. (VTR - Free Report) reported first-quarter 2017 normalized funds from operations (FFO) of $1.03 per share. The Zacks Consensus Estimate for FFO per share was $1.02. Normalized FFO per share in the prior-year quarter was $1.04.
Ventas posted revenues of $883.4 million, which beat the Zacks Consensus Estimate of $872.2 million. Further, it compared favorably with the year-ago number of $852.3 million.
Modest NOI Growth
For the first quarter, same-store cash net operating income (NOI) growth for total portfolio (1,175 assets) was 3.9% on a reported basis. Notably, triple net same-store cash 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 net operating income growth of 1.5–2.5% in 2017.
Further, Ventas expects dispositions of $900 million in 2017.
Our Take
Going forward, we believe that Ventas’ adequate size and scale would help it capitalize on opportunities such as increasing healthcare spending, aging population and a rise in insured individuals. However, stiff competition and a projected rise in interest rates keep us concerned.
We now look forward to the earnings releases of GGP Inc. , Vornado Realty Trust (VNO - Free Report) and HCP, Inc. (HCP - Free Report) , which are expected next week.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Ventas' (VTR) FFO and Revenues Surpass Estimates in Q1
Ventas, Inc. (VTR - Free Report) reported first-quarter 2017 normalized funds from operations (FFO) of $1.03 per share. The Zacks Consensus Estimate for FFO per share was $1.02. Normalized FFO per share in the prior-year quarter was $1.04.
Ventas posted revenues of $883.4 million, which beat the Zacks Consensus Estimate of $872.2 million. Further, it compared favorably with the year-ago number of $852.3 million.
Modest NOI Growth
For the first quarter, same-store cash net operating income (NOI) growth for total portfolio (1,175 assets) was 3.9% on a reported basis. Notably, triple net same-store cash 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 net operating income growth of 1.5–2.5% in 2017.
Further, Ventas expects dispositions of $900 million in 2017.
Our Take
Going forward, we believe that Ventas’ adequate size and scale would help it capitalize on opportunities such as increasing healthcare spending, aging population and a rise in insured individuals. However, stiff competition and a projected rise in interest rates keep us concerned.
Ventas, Inc. Price, Consensus and EPS Surprise
Ventas, Inc. Price, Consensus and EPS Surprise | Ventas, Inc. Quote
Currently, Ventas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of GGP Inc. , Vornado Realty Trust (VNO - Free Report) and HCP, Inc. (HCP - Free Report) , which are expected next week.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.Click here for Zacks' secret trade>>