Real estate investment trust Ventas, Inc. (VTR) Friday said its funds from operations, a figure used by real estate investment trusts to define the cash flow from their operations, for the fourth quarter more than doubled from last year. The quarterly results were boosted by the acquisition of Nationwide Health Properties, Inc.
Excluding certain items, normalized FFO was above Wall Street projections, as also revenues. Further, the board increased the company's first-quarter dividend by 8 percent.
Debra Cafaro, chairman and CEO of the company said, "Ventas delivered excellent results in 2011, as our portfolio performed well while we successfully integrated over $11 billion of accretive acquisitions. We have a highly diversified portfolio approaching 1,400 properties, with nearly 80 percent of our annualized revenues derived from private pay sources, an outstanding balance sheet and an attractive cost of capital."
Funds from Operations for the quarter increased to $359.07 million from $108.29 million in the prior year.
In the fourth quarter, normalized FFO rose 114 percent to $259.34 million from $121.45 million in the prior year. Normalized FFO per share was $0.89, up from $0.77 per share in the year-ago quarter. On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.87 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the fourth quarter improved to $571.4 million from $265.97 million in the same quarter last year, which also exceeded analysts' estimate $565.90 million.
Looking ahead to full year 2012, Ventas now expects normalized FFO per share, excluding the impact of unannounced acquisitions, divestitures and capital transactions, but including completion of its pending acquisition of Cogdell in the second quarter of 2012 on its contractual terms, to range between $3.63 and $3.69 per share.
Analysts are looking for normalized FFO per share of $3.67 for the year.
In addition, the board increased the company's first-quarter dividend by 8 percent to $0.62 per share. The dividend is payable in cash on March 29, 2012 to stockholders of record on March 9, 2012.
VTR closed Thursday's regular trading at $57.6 on the NYSE.
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