Ventas 3Q FFO improves; raises full-year outlook

The Associated Press

NEWS: Ventas said Friday that a key measure of profitability rose in the third quarter as it continued to invest in its business.

The medical real estate company also boosted its full-year funds from operations outlook above analysts' estimates.

DETAILS: Ventas said that it has closed on $1.3 billion of investments since the start of July. The company acquired seven senior housing communities in the quarter.

NUMBERS: Ventas Inc.'s funds from operations were $303.7 million, or $1.03 per share, for the period ended Sept. 30. That's up from $289.7 million, or 97 cents per share, in the prior-year period.

Excluding merger-related expenses and other items, FFO was $1.04 per share.

Analysts polled by FactSet expected funds from operations of $1.02 per share.

Funds from operations, or FFO, adds such items as amortization and depreciation to net income, and it is considered a key measure of the strength of a real estate investment trust. Amortization and depreciation are accounting tools used to measure the value of a long-term asset over time.

Net income climbed to $118.3 million, or 40 cents per share, from $111.9 million, or 38 cents per share, a year ago.

Revenue rose 12 percent to $712.4 million from $638.7 million, topping Wall Street's estimate of $681.2 million.

FUTURE: Ventas now anticipates 2013 FFO of $4.12 to $4.14 per share. Its prior outlook was for $4.06 to $4.10 per share. Analysts predict FFO of $4.09 per share.

STOCK: The stock closed at $66.02 on Thursday. Year to date, the shares are up 2 percent.