Ventas Q1 Normalized FFO Rises; Reaffirms 2014 Normalized FFO Per Share Outlook

(RTTNews) - Ventas Inc. (VTR) said that normalized Funds From Operations or FFO for the first-quarter quarter ended March 31, 2014 increased seven percent to $323.4 million, from $301.6 million for the comparable 2013 period. Normalized FFO per common share was $1.09, a six percent increase from $1.03 for the comparable 2013 period. Analysts polled by Thomson Reuters expected the company to report earnings of $1.07 per share for the quarter. Analysts' estimates typically exclude special items.

Normalized FFO per share grew seven percent in the first quarter of 2014, excluding non-cash items, computed consistent with prior periods.

Ventas's continued growth in normalized FFO per common share is due primarily to the Company's 2013 investments, same-store growth in its seniors housing operating and triple-net leased portfolios and receipt of fees and other payments. These benefits were partially offset by higher debt balances, increases in general and administrative expenses and asset sales and loan repayments since the end of the first quarter of 2013.

Net income attributable to common stockholders for the quarter was $121.0 million, or $0.41 per share, up from $112.2 million, or $0.38 per share in the prior year. The prior year result included expense associated with discontinued operations of $8.4 million. This $8.9 million increase in net income attributable to common stockholders in 2014 over the prior year was primarily the result of the Company's continued growth and receipt of fees and other payments.

FFO, as defined by the National Association of Real Estate Investment Trusts or NAREIT, for the quarter ended March 31, 2014 increased five percent to $309.8 million, from $295.3 million in the comparable 2013 period. This increase in NAREIT FFO is due primarily to the factors described above for net income attributable to common stockholders. NAREIT FFO per diluted common share for the quarter ended March 31, 2014 also increased five percent to $1.05, from $1.00 in 2013.

Total revenues for the quarter grew to $741.47 million from the prior year's $682.91 million. Wall Street expected revenues of $725.56 million.

Ventas continues to expect its 2014 normalized FFO per share, excluding the impact of unannounced additional acquisitions, divestitures and capital transactions, to range between $4.31 and $4.37. The Company's guidance range represents approximately 5.5 to seven percent per share growth in normalized FFO, excluding non-cash items (projected to be $0.10 per share), computed consistent with prior periods. Analysts polled by Thomson Reuters expected the company to report earnings of $4.37 per share for fiscal 2014.