Ventas Reports Nine Percent Increase in Third Quar Ventas Reports Nine Percent Increase in Third Quarter 2012 Normalized FFO to $0.96 Per Diluted Share
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Same-Store Private Pay Seniors Housing Operating Assets NOI Increased Nearly Ten Percent and Occupancy Increases 300 Basis Points Year Over Year
GUIDANCE RAISED FOR FULL YEAR 2012 NORMALIZED FFO PER DILUTED SHARE TO $3.76 TO $3.78
CHICAGO--(BUSINESS WIRE)--Oct. 26, 2012-- Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that normalized Funds From Operations (“FFO”) for the quarter ended September 30, 2012 increased approximately twelve percent to $284.9 million, from $255.1 million for the comparable 2011 period. Normalized FFO per diluted common share was $0.96 for the quarter ended September 30, 2012, a nine percent increase from $0.88 for the comparable 2011 period. Weighted average diluted shares outstanding for the period rose by two percent to 297.4 million, compared to 290.8 million in the third quarter of 2011.
“Ventas is thriving because of our diversified, high performing portfolio and disciplined execution of our investment and asset management strategy,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “We achieved another quarter of outstanding results and have completed $1.7 billion in investments year to date. Our powerful business model and focused management team continue to deliver consistent strong growth in FFO and cash flow with a strong financial profile and well covered dividend. We are pleased to increase our full year earnings outlook.”
The third quarter’s growth is primarily due to the Company’s $1.7 billion year-to-date acquisitions, including its acquisition of Cogdell Spencer Inc. (“Cogdell”) and 16 private pay senior living communities from affiliates of Sunrise Senior Living, Inc. (NYSE: SRZ) (“Sunrise”). Additionally, Ventas benefited from excellent performance in the Company’s seniors housing operating communities managed by Sunrise and Atria Senior Living, Inc. (“Atria”); rental increases from the Company’s triple-net lease portfolio; and lower weighted average interest rates. These benefits were partially offset by increases in general and administrative expenses, higher debt balances, year-to-date asset sales and loan repayments, increases in the Sunrise management fee and an increase in weighted average diluted shares outstanding.
The Company also recognized a net gain of $17.0 million in the third quarter of 2012 from real estate activity, which gain is excluded from both normalized FFO and NAREIT FFO (as defined below).
Normalized FFO for the quarter ended September 30, 2012 excludes the net benefit (totaling $4.8 million, or $0.01 per diluted share) from income tax benefit and gain on extinguishment of debt, partially offset by merger-related expenses and deal costs (including integration costs), mark-to-market adjustment for derivatives and amortization of other intangibles. Normalized FFO for the quarter ended September 30, 2011 excluded the net benefit (totaling $9.2 million, or $0.03 per diluted share) from net litigation proceeds and income tax benefit, partially offset by merger-related expenses and deal costs (including integration costs), loss on extinguishment of debt, amortization of other intangibles and mark-to-market adjustment for derivatives.
Normalized FFO for the nine months ended September 30, 2012 was $826.6 million, or $2.82 per diluted common share, a 15 percent increase per diluted common share from $517.6 million, or $2.45 per diluted common share, for the comparable 2011 period. Normalized FFO for the nine months ended September 30, 2012 excludes the net expense (totaling $86.1 million, or $0.30 per diluted share) from loss on extinguishment of debt, merger-related expenses and deal costs (including integration costs), amortization of other intangibles and mark-to-market adjustment for derivatives, partially offset by income tax benefit.
Net income attributable to common stockholders for the quarter ended September 30, 2012 was $111.9 million, or $0.38 per diluted common share, including expense associated with discontinued operations of $3.4 million, compared with net income attributable to common stockholders for the quarter ended September 30, 2011 of $102.9 million, or $0.35 per diluted common share, including expense associated with discontinued operations of $0.2 million and net litigation proceeds of $85.3 million. This increase in net income attributable to common stockholders is primarily the result of the Company’s acquisitions, a net gain on real estate activity of $17.0 million, lower merger-related expenses and deal costs (including integration costs), a gain on extinguishment of debt and lower mark-to-market adjustment for derivatives, partially offset by higher general and administrative expenses and a lower income tax benefit in 2012.
Net income attributable to common stockholders for the nine months ended September 30, 2012 was $276.5 million, or $0.94 per diluted common share, including discontinued operations of $69.6 million, compared with net income attributable to common stockholders for the nine months ended September 30, 2011 of $171.5 million, or $0.81 per diluted common share, including discontinued operations of $2.0 million and net litigation proceeds of $85.3 million. This increase in net income attributable to common stockholders is primarily the result of the Company’s 2011 and 2012 acquisitions, a net gain on real estate activity of $95.8 million and lower merger-related expenses and deal costs (including integration costs), partially offset by higher general and administrative expenses, higher losses on extinguishment of debt and a lower income tax benefit in 2012.
FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), for the quarter ended September 30, 2012 increased ten percent to $289.7 million, from $264.2 million in the comparable 2011 period. NAREIT FFO per diluted common share for the quarter ended September 30, 2012 increased seven percent to $0.97, from $0.91 in 2011. This increase is primarily due to the factors described above for net income excluding the net impact of gains on real estate activity.
NAREIT FFO for the nine months ended September 30, 2012 increased 59 percent to $740.6 million, from $465.8 million in the comparable 2011 period. NAREIT FFO per diluted common share for the nine months ended September 30, 2011 increased 14 percent to $2.52, from $2.21 in 2011. This increase is primarily due to the factors described above for net income excluding the net impact of gains on real estate activity.
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