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Ventas Discloses ’16 Expectations & Provides ’17 Guidance


Ventas, Inc. VTR disclosed its 2016 expectations and provided preliminary guidance for 2017. Given its diverse and robust portfolio, the company expects to deliver strong 2016 results. Also, in 2017, the company anticipates its strategic actions to enhance shareholders’ value.

For full-year 2016, Ventas anticipates funds from operations (“FFO”) per share to remain at the higher end of the earlier guidance range of $4.10–$4.13. Same store net operating income (“NOI”) is likely to be in the range of 2.5–3%. For 2016, proceeds derived from accelerated dispositions and loan repayments receipts surpassed $600 million, higher than the previous guidance of $500 million. During the year, the company continued to boost its healthy balance sheet and financial position. At year end, its Net Debt to Adjusted Pro Forma EBITDA is expected to improve to 5.7x– 5.8x from 6.1x at year-end 2015. Also, Ventas hiked dividend by 6% and delivered total return of 16% to the shareholders.

In 2017, the company expects to execute its plan to enhance shareholders’ value through strategic disposition of its skilled nursing portfolio, boosting its financial strength, and investing for future growth. In 2017, Ventas expects its normalized FFO to be in the range of $4.12 to $4.18. Same store NOI growth is expected to be in the range of 1.5–2.5%. In the year, the company expects to enhance portfolio quality through strategic dispositions and redeploying capital into higher quality investments. For full-year 2017, the company expects strategic dispositions of $900 million. This includes disposition of $700 million in the second half of the year, in the form of the sale of 36 skilled nursing facilities owned by Ventas.

Shares of Ventas outperformed the Zacks categorized REIT and Equity Trust – Other industry, over the past one year. During the same time span, shares of the company grew 14.8%, whereas the industry gained 14%. Over the past 60 days, its 2016 estimates rose 0.2% to $4.13 per share.

Ventas currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the real estate space include FelCor Lodging Trust Incorporated FCH, The GEO Group, Inc. GEO and Iron Mountain Incorporated IRM. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FelCor Lodging Trust’s 2016 estimates remained unchanged at 89 cents per share, over the past 60 days.

The GEO Group’ 2016 estimates have moved up 1% to $2.94 per share, over the past 60 days.

Iron Mountain Incorporated’s 2016 estimates have remained unchanged at $1.87 per share, over the 60 days.

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