Have you been eager to see how Ventas, Inc. VTR performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Chicago, IL-based healthcare real estate investment trust (“REIT”) earnings release this morning:
An FFO Beat
Ventas came out with third-quarter 2015 normalized funds from operations (“FFO”) per share of $1.09, beating the Zacks Consensus Estimate of $1.06.
The FFO beat was driven by 4.3% year over year growth in same store cash net operating income.
How Was the Estimate Revision Trend?
Ventas has a strong earnings surprise history. Before posting an earnings beat in Q3, the company delivered positive surprises in all the trailing four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.2% in the trailing four quarters.
Revenue Came In Lower Than Expected
Ventas posted revenues of $827.6 million, which lagged the Zacks Consensus Estimate of $902 million. However, it compared favorably with the year-ago number of $704.9 million.
Key Developments to Note:
Ventas has increased its 2015 normalized FFO per share outlook to $4.43 – $4.46 as against $4.39 – $4.45 guided earlier. The new outlook range marks a 7–8% growth in normalized FFO per share from 2014 level, on a comparable basis.
What Zacks Rank Says
Ventas has a Zacks Rank #5 (Strong Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this VTR earnings report later!
Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation and amortization and other non-cash expenses to net income.
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