(RTTNews) - Healthcare real estate investment trust Ventas, Inc. (VTR: News ) Thursday reported a decline in profit for the third quarter, reflecting higher charges and merger related expenses as well as the absence of a gain realized in the prior-year quarter. The company also raised its normalized FFO guidance for the fiscal 2009.

Net income attributable to shareholders for the quarter declined to $49.80 million or $0.32 per share from $63.77 million or $0.45 per share in the comparable quarter last year.

Results for the quarter include depreciation and amortization charges of $50.18 million and merger-related expenses and deal costs of $5.89 million.

FFO for the quarter was down 13% to $98.3 million, from $113.0 million in the prior year, while FFO per share decreased 21.3% to $0.63, from $0.80 a year earlier due primarily to the reversal of a $23.3 million previously recorded contingent liability, offset by a $6.0 million valuation allowance on real estate mortgage loans receivable recorded during the third quarter of 2008, the company said.

Normalized FFO, which adjusts for special items, was $103.39 million or $0.66 per share, up 7.4% compared to $96.23 million or $0.68 per share in the previous year. Funds available for distribution were $98.36 million or $0.63 per share, compared to $89.94 million or $0.64 per share a year ago.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.63 per share. Analysts' estimates typically exclude special itmes.
Total revenues for the quarter edged up to $235.83 million from $235.12 million last year. Analysts estimated a revenue of $231.90 million for the third quarter.

Rental income rose to $126.00 million from $121.17 million in the previous year. Resident fees and services were $106.51 million, compared to $108.61 million a year ago. Income from loans and investments declined to $3.21 million from $3.43 million last year. Interest and other income were $0.10 million, down from $1.91 million in the previous year.

Total expenses for the quarter were $185.93 million, compared to $195.61 million a year ago.

For the nine-month period, net income increased to $212.41 million or $1.40 per share from $165.07 million or $1.19 per share in the same period of the previous year. FFO for the period was $289.37 million or $1.91 per share, compared to $314.76 million or $2.27 per share in the year ago period. Total revenues for the period rose to $697.26 million from $691.44 million last year.

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