Ventas Misses Third-Quarter Revenue Estimates
October 23 2015 - 10:31AM
Dow Jones News
By Lisa Beilfuss
Ventas Inc., one of the nation's biggest health-care real-estate
investment trusts, said profit declined in its latest quarter amid
merger and acquisition activity.
The company, which focuses on property in the health-care space
like hospitals and nursing homes, completed its $1.75 billion
acquisition of Ardent Health Services during the quarter and spun
off 355 skilled nursing facilities and outpatient recovery centers
into a new real-estate investment trust.
Including operations that are now classified as discontinued and
including charges associated with the transactions, earnings fell
to $22.9 million, or 7 cents a share, from $109.1 million, or 37
cents a share. Funds from operations were $1.09, down from
$1.12.
Revenue increased 17% to $827.6 million.
Analysts polled by FactSet expected $1.07 in funds from
operations and $840.7 million in revenue.
Operating income in the company's senior housing segment slipped
3.3% to $150.3 million. Analysts at Jefferies said in a note this
week that construction trends for the assisted living sector raises
supply concerns that could pressure healthcare REITs like
Ventas.
But for the year, the Chicago-based company raised its guidance,
citing enhanced growth prospects. Ventas now sees $4.43 to $4.46 in
per-share earnings this year, up from an earlier range of $4.39 to
$4.45 and above the $4.40 analysts have predicted.
Shares in the company, down about 7% this year, were down 2.28%
to $57.05 in early trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 23, 2015 10:16 ET (14:16 GMT)
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