buckle up, boys. next thursday could be a lot of fun :0corn
Ventas Shares Rise On Year-Outlook Boost, Sunrise Comments
Last update: 7/30/2009 10:57:33 AM
By Kelly Nolan Of DOW JONES NEWSWIRES </PRE>NEW YORK (Dow Jones)--Shares of health care real estate investment trust Ventas Inc. (VTR) jumped more than 8% on Thursday following the company's boost of its yearly guidance and soothing comments about troubled senior housing tenant Sunrise Senior Living Inc. (SRZ).
As it reported second-quarter earnings, Ventas, which manages senior housing properties, hospitals and medical office buildings, raised its annual outlook for adjusted funds for operations, a key industry figure of performance.
The Chicago company also increased its net operating income expectations for Sunrise, which brings in a sizable portion of the company's revenues.
Before the market opened Thursday, Ventas said its second-quarter FFO fell to $96.6 million from $100.5 million a year earlier. Second-quarter FFO per diluted share decreased to 63 cents from 72 cents.
When using adjusted FFO, it increased to $105.1 million, from $97.8 million a year earlier. Adjusted FFO per diluted share was 68 cents in the second quarter, down slightly from 70 cents a year earlier.
For the year, Ventas said it expects adjusted FFO per share to range between $2.55 and $2.62, an improvement from its previously announced guidance of $2.48 and $2.58 a share.
Ventas also increased its guidance for the Sunrise portfolio of 79 properties, saying it will generate between $122 million and $129 million in NOI for the year, up from its previously announced range of $110 million to $125 million.
That's good news for investors, who have been watching the performance of Sunrise closely, given the liquidity and balance sheet issues that raised questions about the senior housing tenant's future.
Ventas counts on Sunrise for about 17% of its NOI and 41% of its revenue, according to a recent Citigroup estimate.
Also worrisome, senior housing occupancy has suffered amid the downturn as seniors struggle to sell their homes and see their investments dwindle. In some cases, tenants can no longer afford care, forcing them to move back home or find other cheaper housing options.
However, Ventas' Executive Vice President and Chief Investment Officer Ray Lewis said in the earnings call Thursday morning there have been signs of stabilization in Sunrise's occupancy in the second quarter, which was around 87%.
"Occupancy seems to be holding and even improving into July. It's encouraging," Lewis said. But he cautioned: "Although we have increased our Sunrise expectations, we continue to be cautious about second-half economic recovery."
Shares of Ventas were recently trading up 8.5% to $35.59, while Sunrise shares were up 8.7% at $1.75.
-By Kelly Nolan, Dow Jones Newswires; 212-416-2167;
kelly.nolan@dowjones.com
(END) Dow Jones Newswires
, and we know Vinnie can:142smilie ... dogface:nono: :nono: .... NO!!!!
