Healthcare: Ventas 1Q FFO up 4.6 percent

Healthcare: Ventas 1Q FFO up 4.6 percent

Health care real estate investment trust Ventas Inc. experienced a 4.6 percent first-quarter increase in normalized funds from operations.

Chicago-based Ventas (NYSE: VTR) said normalized funds from operations — a standard measure of profitability for REITs — increased to $95.7 million, or 67 cents per share, from $91.5 million, also 67 cents per share, on fewer shares outstanding, a year ago.
Ventas benefited from rental increases among the company’s triple-net lease properties and higher revenues in the company’s medical office building operating portfolio.

Total revenue increased to $230.9 million from $228.7 million a year earlier.

A consensus of financial analysts polled by Thomson Reuters had predicted earnings of 65 cents per share on revenue of $232 million.

“We had an excellent first quarter, with seven percent growth in our cash flow from operations, and our capital raising activities are building strength on strength,” Ventas president and CEO Debra A. Cafaro said in a news release. “In addition, our recent agreement with our valued tenant Kindred Healthcare to renew its leases for 109 health care assets until 2015 enhances the reliability of our future cash flows and continues our increasingly collaborative relationship with Kindred.”

Louisville-based Kindred announced May 1 it had signed an agreement with Ventas to renew leases on 87 nursing centers and 22 long-term acute care facilities for five years. The original lease was scheduled to expire in April 2010.

Kindred also agreed to buy six Ventas-owned nursing centers it leases from Ventas for $55.7 million.

Ventas, which last year relocated its headquarters to Chicago from Louisville, still maintains operations here.

The REIT owns 507 senior housing and health care properties in 43 states and two Canadian provinces. Its portfolio includes 243 senior housing communities, 193 skilled nursing facilities, 40 hospitals and 31 medical office buildings and other properties.


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