) crafted a new 52-week high, touching $81.80 at the end of the
trading session on May 15. The closing price of this real estate
investment trust (REIT) represents a solid year-to-date return of
26.7%. The trading volume for the session was over 1.8 million
Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock
has plenty of upside left, given its strong estimate revisions
over the last 30 days and expected year-over-year funds from
operations (FFO) growth of 17.7% for 2013.
Impressive first-quarter 2013 results - including an earnings
surprise of 4.0% and increase in same store net operating income
- strategic move in Atria Senior Living were the key growth
The company also has a strong balance sheet, which provides it
adequate financial flexibility to aim at high-yielding
acquisitions, high ROI (return on investments) capital projects
and steady dividend payouts. 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 volatility.
On Apr 26, Ventas reported first-quarter normalized FFO of $1.03
per share, 4.0% ahead of the Zacks Consensus Estimate of 99 cents
and 13.2% above the year-ago FFO of 91 cents per share. The solid
results at this REIT were primarily driven by the strategic
investments in 2012.
Moreover, Ventas has now delivered positive earnings surprises
for 4 straight quarters with an average beat of 2.9%.
Estimate Revisions Show Potency
Over the last 30 days, 7 of the 10 estimates for 2013 have been
revised upward, lifting the Zacks Consensus Estimate for FFO per
share by 1.0% to $4.10 per share. For 2014, 4 of the 10 estimates
moved north, helping the Zacks Consensus Estimate FFO per share
advance 0.5% to $4.30 per share.
A number of other REITs also touched 52-week highs this week.
Taubman Centers Inc.
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
DDR CORP (DDR): Free Stock Analysis Report
HCP INC (HCP): Free Stock Analysis Report
TAUBMAN CENTERS (TCO): Free Stock Analysis
VENTAS INC (VTR): Free Stock Analysis Report
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