Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that normalized Funds From Operations (“FFO”) for the quarter ended June 30, 2012 increased approximately 96 percent to $277.8 million, from $141.5 million for the comparable 2011 period. Normalized FFO per diluted common share was $0.95 for the quarter ended June 30, 2012, a 19 percent increase from $0.80 for the comparable 2011 period. Weighted average diluted shares outstanding for the period rose by 64 percent to 292.6 million, compared to 177.9 million in the second quarter of 2011.
“Ventas offers both growth and defense for investors,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “We continued our record of consistent, strong growth in the second quarter, as we delivered exceptional results from our Atria- and Sunrise-managed communities, closed $1.2 billion in accretive acquisitions, maintained a fortress balance sheet and posted record earnings. We are pleased to increase our full-year outlook, reflecting the strength in our business model and execution.”
The second quarter’s substantial growth is primarily due to the Company’s acquisitions, including the May 2011 acquisition of 117 private pay senior living communities managed by Atria Senior Living, Inc. (“Atria”), the July 1, 2011 acquisition of Nationwide Health Properties, Inc. (“NHP”), the April 2012 acquisition of Cogdell Spencer Inc. (“Cogdell”) and the May 2012 acquisition of 16 private pay senior living communities from affiliates of Sunrise Senior Living, Inc. (NYSE: SRZ) (“Sunrise”); excellent performance in the Company’s seniors housing operating communities managed by Sunrise and Atria; rental increases from the Company’s triple-net lease portfolio; and lower weighted average interest rates. These benefits were partially offset by increases in general and administrative expenses, higher debt balances, increases in the Sunrise management fee and a significant increase in weighted average diluted shares outstanding.
The Company also recognized a net gain of $38.6 million in the second quarter of 2012 from real estate dispositions, which gain is excluded from both normalized FFO and NAREIT FFO (as defined below).