Home Featured Senior Housing Growth Remains Sluggish, Says Analyst, When Talking Ventas Q2 Numbers

Senior Housing Growth Remains Sluggish, Says Analyst, When Talking Ventas Q2 Numbers

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Ventas Inc. recently revealed results for the second quarter and noted that income from continuing operations per diluted common share for the second quarter 2017 grew 5% to $0.42 compared to the same period in 2016. The increase from the second quarter 2016 was principally due to improved property performance and accretive investments, partially offset by lower non-cash income tax benefits in the current period.

Normalized funds from operations per diluted common share for the second quarter 2017 grew two percent to $1.06 compared to the same period in 2016. The increase from the second quarter 2016 was principally due to improved property performance and accretive investments.

Reported FFO per diluted common share, as defined by the National Association of Real Estate Investment Trusts totaled $1.04. Second quarter 2017 NAREIT FFO per diluted common share resulted from the same items as described for income from continuing operations per diluted common share, excluding the per share impact of depreciation and amortization.

According to Debra Cafaro, the firm’s chairman and CEO, it was a strong quarter with continued execution of strategic priorities. “We continued our strong performance in the second quarter, as we grew earnings, executed on our strategic priorities and reaffirmed our outlook for the full year.”

Cafaro adds that “Our properties performed well and we generated increased cash flow. We are actively expanding our university-based life science business, sponsoring attractive development and redevelopment projects and growing with our customers. Our best-in-class diversified portfolio, leading platforms and cohesive team position us well to deliver continued excellence.”

But analyst, Michael Gorman of BTIG points out that his firm maintains a neutral rating for the REIT, noting that the senior housing portfolio remained sluggish with SSNOI growth of just 0.4%. Moreover, he says, the US portfolio, including primary markets, was down 1.0%. “The unusually strong 11.7%

SSNOI growth from the Canadian portfolio, representing just under 12% of NOI, was the only positive result for the portfolio.”

The company also recently revealed that Todd Lillibridge, president and CEO of Lillibridge Healthcare Services, and EVP Medical Property Operations for Ventas will transition to a new role as senior advisor to the Ventas chairman and CEO in early 2018. Ventas intends to appoint a new leader of the MOB Business and will commence the search process promptly, according to a prepared statement.

Lillibridge is committed to leading the MOB Business in his current capacity until a successor is appointed, and in ensuring a seamless transition of responsibilities to the new CEO, the release says.

Lillibridge joined Ventas in 2010 with the closing of Ventas’s acquisition of LHS. Under his leadership, the MOB Business has grown more than seven times. Broadly acknowledged as one of the nation’s largest medical office portfolios, LHS operates 21+ million square feet of outpatient facilities in more than 250 markets across 32 states. The Lillibridge team serves more than 15,000 physician tenants daily and supports 40 million patient visits each year.