Ventas (VTR) Meets Q3 FFO Estimates, Updates 2017 Guidance

Have you been eager to see how Ventas, Inc. (NYSE:VTR) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Chicago, IL-based healthcare real estate investment trust (REIT) earnings release this morning:

In-line FFO

Ventas came out with normalized funds from operations (FFO) per share of $1.04, meeting the Zacks Consensus Estimate.

Results reflect improved property performance and accretive investments.

How Was the Earnings Surprise Trend?

Ventas has a decent surprise history. Before posting the in-line Q3 FFO, the company delivered positive surprises in three of the trailing four quarters. In the other occasion, the company posted in-line results. This is depicted in the graph below:

Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.22% in the trailing four quarters.

Revenues Came In Higher Than Expected

Ventas posted revenues of $899.9 million, which beat the Zacks Consensus Estimate of $869.4 million. Further, it compared favorably with the year-ago number of $867.1 million.

Key Developments to Note

During the quarter, Ventas funded investments of around $80 million. It also realized approximately $570 million for the sale of 29 of its Kindred Healthcare, Inc skilled nursing facilities (SNFs). However, the company exited the quarter with reduced liquidity.

The company updated its outlook and expects its 2017 normalized FFO per share in the range of $4.13-$4.16. The mid-point of the guidance remains unchanged from the prior guidance as the Kindred SNF sale offsets improved property performance. Also, the company anticipates same-store cash net operating income growth of 2-2.5% in 2017.

What Zacks Rank Says

Ventas has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this VTR earnings report!

Note: 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, Inc. (VTR): Free Stock Analysis Report

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