) has hiked its net operating income (NOI) expectations for 2012.
The company now anticipates its NOI after management fees to
exceed $386 million as against the prior projection of $383-385
million for its private pay seniors housing communities managed
by Atria and Sunrise.
Ventas also disclosed that fourth quarter same-store occupancy in
these communities climbed both sequentially and year over year.
This increase in guidance for NOI and enhanced occupancy levels
further instill investors' confidence in the company and its
solid operating platform and hence we remain encouraged.
Notably, the preliminary results exclude NOI from communities
purchased in Dec 2012 to maintain consistency with the prior
issued outlook for the same properties. However, it includes NOI
from discontinued operations.
Same store occupancy in the fourth quarter increased 360 basis
points year over year to 91.9%. Further, occupancy in the
same-store portfolio climbed 30 basis points sequentially to
In December, Ventas inked a deal with Atria Senior Living Inc.,
through which Ventas along with the management team of Atria
Senior Living, Inc. gained complete ownership over Atria. The
company also disclosed the accomplishment of new investments
worth $950 million during the fourth quarter. Such strategic
investments augur well going forward.
Ventas, primarily engaged in the business of financing, owning
and leasing healthcare related and senior housing facilities,
boasts one of the largest and most diversified portfolios in the
healthcare sector with exposure to all types of facilities.
The product diversity of the company allows it to capitalize on
opportunities in different markets based on individual market
dynamics, and provides a hard-to-replicate competitive advantage
over its peers. Also, the healthcare sector is relatively immune
to the downturn in the economy, and provides a steady source of
income that insulates the company from short-term market
Ventas is scheduled to release its fourth-quarter 2012 results on
Feb 15, 2013, prior to the opening bell. The Zacks Consensus
Estimate for the company's fourth-quarter earnings is currently
pegged at 97 cents per share.
Zacks Earnings ESP (Expected Surprise Prediction) (Read:
Zacks Earnings ESP: A Better Method
) for Ventas is +1.03% for the fourth quarter. This, along with
its Zacks Rank #2 (Buy), make us confident of a positive earnings
A number of companies that are also performing well in the same
industry and deserve a look include
Digital Realty Trust Inc.
Brandywine Realty Trust
Diamondrock Hospitality Co.
), all carrying Zacks Rank #2 (Buy).
BRANDYWINE RT (BDN): Free Stock Analysis
DIGITAL RLTY TR (DLR): Free Stock Analysis
DIAMONDROCK HOS (DRH): Free Stock Analysis
VENTAS INC (VTR): Free Stock Analysis Report
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