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Ventas' (VTR) Q4 FFO Meet Estimate; Revenues Beat

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Have you been eager to see how Ventas, Inc. (VTR - Free Report) performed in Q4 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 In-Line FFO

Ventas came out with fourth-quarter 2016 adjusted normalized funds from operations (“FFO”) per share of $1.03, in-line with the Zacks Consensus Estimate.

How Was the Estimate Revision Trend?

Ventas has a decent earnings surprise history. Before posting an in-line results in Q4 results, the company delivered positive surprises in three of the trailing four quarters. On occasion, the company posted in-line results. Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.48% in the trailing four quarters.

Ventas, Inc. Price and EPS Surprise
 

Ventas, Inc. Price and EPS Surprise | Ventas, Inc. Quote

Revenue Came In Higher Than Expected

Ventas posted revenues of $875.7 million, which beat the Zacks Consensus Estimate of $843 million. Further, it compared favorably with the year-ago number of $841.3 million.

Key Developments to Note

Ventas expects its 2017 normalized FFO per share outlook in the range of $4.12 – $4.18.

The company anticipates same-store cash net operating income growth of 1.5–2.5% in 2017. Further, Ventas estimates 2017 dispositions of $900 million and intends to use the net proceeds from disposition for reinvestment for scaling the company’s life science and acute care hospital platforms and debt repayment.

What Zacks Rank Says

Ventas has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this VTR earnings report later!

Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. 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.

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