Research Desk Line-up: Healthcare Trust of America Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ventas, Inc. (NYSE: VTR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=VTR, following the Company's reporting of its second quarter fiscal 2017 results on July 27, 2017. The seniors housing real estate investment trust reported a 5% gain in revenue and a 5% growth in net income. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the REIT - Healthcare Facilities industry. Pro-TD has currently selected Healthcare Trust of America, Inc. (NYSE: HTA) for due-diligence and potential coverage as the Company announced on July 31, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Healthcare Trust of America when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on VTR; also brushing on HTA. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=VTR

http://protraderdaily.com/optin/?symbol=HTA

Earnings Reviewed

For the second quarter ended June 30, 2017, Ventas reported revenue of $894.49 million compared to revenue of $848.40 million for Q2 2016. The Company's reported numbers exceeded Wall Street's estimates of $878.8 million.

Ventas' income from continuing operations per diluted common share for Q2 2017 grew 5% to $0.42 compared to income of $0.40 per diluted share in Q2 2016, with growth attributed to improved property performance and accretive investments, partially offset by lower non-cash income tax benefits in the current period.

For the reported quarter, Ventas' FFO per diluted common share as defined by the National Association of Real Estate Investment Trusts (NAREIT FFO), totaled $1.04. The Company's normalized Funds from Operations ("FFO") per diluted common share grew 2% to $1.06 on a y-o-y basis for Q2 2017 principally due to improved property performance and accretive investments and also exceeded analysts' expectations of $1.05 per share.

Portfolio Performance

During Q2 2017, Ventas' same-store total portfolio of 1,114 assets reported cash net operating income (NOI) growth of 1.5% on a y-o-y basis. The Company's same-store cash NOI growth from the triple net leased portfolio increased 2.0%, driven by in-place lease escalations. Ventas' NOI results in Q2 2016 benefited from the receipt of approximately $3 million in cash fee. Excluding the fee, triple net same-store cash NOI grew 3.5% on a y-o-y basis in the reported quarter.

Ventas' seniors housing operating portfolio ("SHOP") grew 0.4% on a y-o-y basis, supported by continued growth in high-barrier markets largely offset by the impact of new deliveries in select markets; and the medical office building ("MOB") portfolio rose 2.2%, driven by gains in occupancy and rate growth.

Recent Highlights

During Q2 2017, Ventas funded investments of approximately $110 million, including $53 million of acquisitions with existing partners in its senior's housing portfolio and $57 million of funding for the Company's share of development and redevelopment projects. To fund investments, the Company issued and sold a total of 1.1 million shares of common stock for net proceeds of $74 million under its "at the market" equity offering program. In addition, the Company sold properties and received final repayments on loans receivable for proceeds of $45 million.

In Q2 2017, Ventas commitment to new development and redevelopment projects with total costs of $188 million including seniors' housing projects in top Metropolitan Statistical Areas with Atria Senior Living and Sunrise Senior Living.

Financial Details

Ventas reported a 5% growth in net cash provided by operating activities of $401.53 million in Q2 2017. The Company's net debt to adjusted pro-forma EBITDA ratio was 5.8x at the end of the reported quarter, a sequential improvement of 0.1x. At the end of Q2 2017, Ventas' fixed charge coverage was 4.6x. The Company had robust liquidity with $2.6 billion of available borrowing capacity and $95 million as cash on hand.

Other Updates

Ventas announced that it continues to expect that it will sell 36 skilled nursing facilities ("SNFs") that are currently operated by Kindred Healthcare, Inc. ("Kindred") to facilitate the latter's previously announced exit from the SNF business. Ventas is expecting gross proceeds of approximately $700 million, representing a 7% yield on current cash rent of $50 million and an 8% GAAP yield. Pro-forma for the transaction, Ventas' percentage of NOI received from SNFs will be 1% of its aggregate NOI. Ventas expects to use proceeds from the sale to repay debt.

Guidance

Ventas continues to project 2017 income from continuing operations per diluted common share in the range of $1.72 and $1.78. Consistent with previously disclosed guidance, the Company expects normalized FFO per diluted common share to range between $4.12 and $4.18. NAREIT FFO per diluted common share is expected to range between $4.10 and $4.19. Upon completion of the SNF transaction, Ventas is expected to record a gain exceeding $600 million, which will increase the Company's net income per diluted common share. The Company continues to expect FY17 same-store cash NOI growth in the band of 1.5% to 2.5%.

Stock Performance

At the closing bell, on Thursday, August 10, 2017, Ventas' stock slipped 1.25%, ending the trading session at $64.80. A total volume of 996.41 thousand shares have exchanged hands. The Company's stock price advanced 4.85% in the past six months. Moreover, the stock gained 3.65% since the start of the year. The stock is trading at a PE ratio of 38.73 and has a dividend yield of 4.78%. The stock currently has a market cap of $23.30 billion.

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SOURCE: Pro-Trader Daily