) soared to a new 52-week high of $79.10 on Friday, Apr 19, 2013.
The company, which is scheduled to report its first-quarter 2013
earnings on Apr 26, has been named as one of the World's Most
Admired Real Estate Companies in 2013 in early April. The closing
price of this real estate investment trust (REIT) on Apr 19,
2013, was $79.05, representing a solid year-to-date return of
22.5%. The average trading volume over the last 3 months was
nearly 1.7 million shares.
Ventas has one of the 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, the
company's strategic move in Atria Senior Living augurs well.
Ventas also 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.
Moreover, Ventas' recognition as one of the World's Most Admired
Real Estate Companies in 2013 is based on an annual survey
conducted by FORTUNE and the Hay Group, a global management
consulting firm. The annual survey recognizes the firms that
enjoy the strongest reputations within their industries.
On Feb 15, 2013, Ventas reported better-than-expected
fourth-quarter 2012 results. Its normalized FFO (funds from
operation) came in at 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 figure.
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%.
Ventas is scheduled to report its first-quarter 2013 earnings on
Apr 26, before the opening bell. The Zacks Consensus Estimate for
the company's first-quarter FFO is currently pegged at 99 cents
The company currently carries a Zacks Rank #3 (Hold) and has an
earnings ESP (Read: Zacks Earnings ESP: A Better Method) of
0.00%. Thus we are not sure about an earnings beat when it
reports its first-quarter results.
Estimate Revisions Show Potency
Over the last 60 days, 3 estimates for 2013 have been revised
upward, lifting the Zacks Consensus Estimate by 0.5% to $4.06 per
share. Furthermore, 3 estimates for 2014 have moved higher,
raising the Zacks Consensus Estimate by 1.2% to $4.28 per share.
In addition to Ventas, a number of REITs crafted 52-week highs
recently. This includes
Health Care REIT Inc.
Federal Realty Investment Trust
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.
FED RLTY INV (FRT): Free Stock Analysis
HEALTH CR REIT (HCN): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
VENTAS INC (VTR): Free Stock Analysis Report
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