Ventas (VTR) Tops Q2 EPS by 9c, Revenues Beat; Offers Updated FFO Guidance

Ventas (NYSE: VTR) reported Q2 EPS of $0.46, $0.09 better than the analyst estimate of $0.37. Revenue for the quarter came in at $942.3 million versus the consensus estimate of $910.15 million.

“We delivered strong earnings and results in the second quarter, as we grew property cash flows in our high-quality, differentiated portfolio, executed on our strategic priorities and recycled capital from previous successful investments to significantly enhance our strong financial position and increase our liquidity,” said Debra A. Cafaro, Ventas Chairman and Chief Executive Officer. “Our entire Ventas team remains sharply focused on delivering results and positioning the Company to extend its long track record of creating value for shareholders. Building on our achievements and strong performance year-to-date and our continued investment activity, we are pleased to again improve our full year 2018 expectations.”

Second Quarter Financial Performance

• Income from continuing operations per share was $0.37 compared to $0.42 in the same period in 2017. The change from the second quarter 2017 was mainly due to: the recognition of a previously disclosed $21 million, or $0.06 per share, non-cash expense related to the Company’s mutually beneficial agreements with Brookdale Senior Living (BKD) in April 2018 (the “Brookdale Agreement”); and the cumulative impact of using the proceeds of asset divestitures and collection of loans receivable primarily to retire and reduce the Company’s debt balance. These impacts were partially offset by total property portfolio growth and the benefit of $27 million, or $0.08 per share, in prepayment fees (the “Ardent Prepayment Fee”) from the Ardent Loans (defined below).
• Normalized FFO per share grew 2 percent to $1.08 compared to the same period in 2017. The increase from the second quarter 2017 was principally due to the same items as described for income from continuing operations, excluding the impact of the non-cash expense related to the Brookdale Agreement.
• NAREIT FFO per share was $0.98 compared to $1.04 in the same period in 2017. The change from the second quarter 2017 was driven primarily by the same items as described for income from continuing operations.

For earnings history and earnings-related data on Ventas (VTR) click here.

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