) soared to a new 52-week high of $72.20 on Tuesday, Mar 26,
2013, as it gained momentum following decent fourth-quarter 2012
results. The closing price of this real estate investment trust
(REIT) on Mar 26, 2013, was $71.99, representing a solid
year-to-date return of 10.5%.
The stock has further advanced to $72.11 on Mar 27, 2013. The
average trading volume over the last 3 months was nearly 1.0
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left given its strong estimate revisions
following the earnings release.
Ventas has 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 business model with
sufficient competitive edge over its peers.
Moreover, Ventas has a strong balance sheet, which provides its
adequate financial flexibility to aim at high-yielding
acquisitions, high ROI (return on investments) capital projects
and steady dividend payouts. Notably, Ventas increased its
first-quarter 2013 cash dividend by 8% to 67 cents per share.
On Feb 15, 2013, Ventas reported better-than-expected fourth
quarter 2012 results. Its normalized FFO reached 99 cents per
share in the fourth quarter 2012, 2 cents ahead of the Zacks
Consensus Estimate and 10 cents above the prior-year quarter
For full year 2012, the company's normalized FFO came in at $3.80
per share, exceeding the Zacks Consensus Estimate by 1 cent and
significantly ahead of the year-ago figure of $3.37 per share.
The results were aided by the strategic acquisitions made in 2012
and in the prior year, decent performance of its seniors housing
communities and rental escalation from its triple-net lease
Notably, Ventas has now delivered positive earnings surprises in
4 straight quarters with an average beat of 2.4%.
Estimate Revisions Show Potency
Over the last 60 days, 5 estimates for 2013 have been revised
upward, lifting the Zacks Consensus Estimate by 0.5% to $4.06 per
share. Furthermore, 2 estimates for 2014 have moved higher,
raising the Zacks Consensus Estimate by 1.2% to $4.29 per share.
In addition to Ventas, a number of REITs crafted 52-week highs
recently. This includes
Jones Lang LaSalle Incorporated
Duke Realty Corporation
Highwoods Properties Inc.
FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.
DUKE REALTY CP (DRE): Free Stock Analysis
HIGHWOODS PPTYS (HIW): Free Stock Analysis
JONES LANG LASL (JLL): Free Stock Analysis
VENTAS INC (VTR): Free Stock Analysis Report
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