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Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that normalized Funds From Operations (“FFO”) for the quarter ended September 30, 2012 increased approximately twelve percent to $284.9 million, from $255.1 million for the comparable 2011 period. Normalized FFO per diluted common share was $0.96 for the quarter ended September 30, 2012, a nine percent increase from $0.88 for the comparable 2011 period. Weighted average diluted shares outstanding for the period rose by two percent to 297.4 million, compared to 290.8 million in the third quarter of 2011.
“Ventas is thriving because of our diversified, high performing portfolio and disciplined execution of our investment and asset management strategy,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “We achieved another quarter of outstanding results and have completed $1.7 billion in investments year to date. Our powerful business model and focused management team continue to deliver consistent strong growth in FFO and cash flow with a strong financial profile and well covered dividend. We are pleased to increase our full year earnings outlook.”
The third quarter’s growth is primarily due to the Company’s $1.7 billion year-to-date acquisitions, including its acquisition of Cogdell Spencer Inc. (“Cogdell”) and 16 private pay senior living communities from affiliates of Sunrise Senior Living, Inc. (NYSE: SRZ) (“Sunrise”). Additionally, Ventas benefited from excellent performance in the Company’s seniors housing operating communities managed by Sunrise and Atria Senior Living, Inc. (“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, year-to-date asset sales and loan repayments, increases in the Sunrise management fee and an increase in weighted average diluted shares outstanding.
The Company also recognized a net gain of $17.0 million in the third quarter of 2012 from real estate activity, which gain is excluded from both normalized FFO and NAREIT FFO (as defined below).