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Ventas' (VTR) Q1 FFO, Revenues Beat Estimates

Have you been eager to see how Ventas, Inc. VTR performed in Q1 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 FFO Beat

Ventas came out with first-quarter 2016 normalized funds from operations (“FFO”) per share of $1.04, beating the Zacks Consensus Estimate of $1.02.

Elevated revenues were primarily responsible for this beat.

How Was the Estimate Revision Trend?

Ventas has a decent earnings surprise history. Before posting a beat in Q1, the company delivered positive surprises in all the trailing four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.74% in the trailing four quarters.

Revenue Came In Higher Than Expected

Ventas posted revenues of $852.3 million, which beat the Zacks Consensus Estimate of $814 million. Further, it compared favorably with the year-ago number of $805.6 million.

Key Developments to Note

Ventas reaffirms its 2016 normalized FFO per share outlook in the range of $4.07 – $4.15, denoting expected growth of 3–5% from 2015 on a comparable basis. Like earlier predication, the company anticipates same-store cash net operating income growth of 1.5–3% in 2016. Further, Ventas estimates 2016 dispositions of $500 million and intends to use the net proceeds from disposition for reinvestment into acquisition 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. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

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

Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation and amortization and other non-cash expenses to net income.

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