Ventas Inc. (VTR, Financial) filed Quarterly Report for the period ended 2012-09-30.
Ventas Inc has a market cap of $19.06 billion; its shares were traded at around $63.205 with a P/E ratio of 17.8 and P/S ratio of 10.8. The dividend yield of Ventas Inc stocks is 3.8%. Ventas Inc had an annual average earning growth of 6.1% over the past 10 years. GuruFocus rated Ventas Inc the business predictability rank of 3.5-star.
(1)Total revenues include medical office building and other services revenue, revenue from loans and investments and interest and other income. Revenues from properties sold or classifed as held for sale as of the reporting date are included in this presentation. (2)Amounts attributable to senior living operations for the nine months ended September 30, 2011 include operations related to our Atria-managed assets only for the period from May 12, 2011 (the date of acquisition) through September 30, 2011. Amounts attributable to senior living operations for the nine months ended September 30, 2012 include operations related to the Sunrise-Managed Sixteen Communities only for the period from May 1, 2012 (the date of acquisition) through September 30, 2012. (3)"Adjusted EBITDA" is defined as earnings before interest, taxes, depreciation and amortization (including non-cash stock-based compensation expense), excluding loss on extinguishment of debt, net litigation proceeds, merger-related expenses and deal costs, gains or losses on sales of real property assets and changes in the fair value of financial instruments (including amounts in discontinued operations). (4)"NOI" represents net operating income, which is defined as total revenues, less interest and other income, property-level operating expenses and medical office building services costs (including amounts in discontinued operations). (5)Ratios are based on total revenues for each period presented. Revenues from properties sold or classifed as held for sale as of the reporting date are included in this presentation.
Property-level operating expenses related to the segment include labor, food, utilities, marketing, management and other costs of operating the properties. Property-level operating expenses increased for the three months ended September 30, 2012 over the same period in 2011 primarily due to the properties we acquired subsequent to September 30, 2011 described above, higher labor expenses and higher management fees at the 79 Sunrise-managed communities we acquired in 2007 (the "Original Sunrise-Managed Communities"). Under our management agreements with respect to the Original Sunrise-Managed Communities, the management fee paid to Sunrise was temporarily reduced to 3.75% of revenues generated by the applicable properties for 2011, but reverted to its contractual level of 6% of revenues generated by the applicable properties (with a range of 5% to 7%) for 2012 and subsequent years.
Same-store stabilized senior living operations NOI increased year over year primarily as a result of higher average unit occupancy rates and higher average monthly revenue per occupied room, offset by higher management fees paid with respect to the Original Sunrise-Managed Communities in 2012 due to the reversion back to the contractual rate. Management fee expense for our same-store stabilized communities increased $4.0 million in the third quarter of 2012 over the same period in 2011.
Same-store stabilized senior living operations NOI increased year over year primarily as a result of higher average unit occupancy rates and higher average monthly revenue per occupied room, partially offset by the increase in management fees with respect to the Original Sunrise-Managed Communities due to the reversion back to the contractual rate in 2012. Management fee expense for our same-store stabilized communities increased $10.0 million in the first nine months of 2012 over the same period in 2011.
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Ventas Inc has a market cap of $19.06 billion; its shares were traded at around $63.205 with a P/E ratio of 17.8 and P/S ratio of 10.8. The dividend yield of Ventas Inc stocks is 3.8%. Ventas Inc had an annual average earning growth of 6.1% over the past 10 years. GuruFocus rated Ventas Inc the business predictability rank of 3.5-star.
Highlight of Business Operations:
As of September 30, 2012, we leased 913 properties (excluding MOBs) to healthcare operating companies under "triple-net" or "absolute-net" leases that obligate the tenants to pay all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures, and we engaged independent third parties, such as Atria and Sunrise, to manage 215 seniors housing communities pursuant to long-term management agreements. Our management agreements with Sunrise have terms ranging from 25 to 30 years, commencing as early as 2004 and as recently as 2012. Management fees, including incentive fees, under the Sunrise management agreements can range from 5% to 7% of revenues generated by the applicable properties and, for the nine months ended September 30, 2012, were 6.36% of revenues (including incentive fees). Our management agreements with Atria have terms of ten years, commencing as early as 2011, with successive automatic ten-year renewal periods. The management fee under the Atria management agreements is currently 5% of revenues generated by the applicable properties.(1)Total revenues include medical office building and other services revenue, revenue from loans and investments and interest and other income. Revenues from properties sold or classifed as held for sale as of the reporting date are included in this presentation. (2)Amounts attributable to senior living operations for the nine months ended September 30, 2011 include operations related to our Atria-managed assets only for the period from May 12, 2011 (the date of acquisition) through September 30, 2011. Amounts attributable to senior living operations for the nine months ended September 30, 2012 include operations related to the Sunrise-Managed Sixteen Communities only for the period from May 1, 2012 (the date of acquisition) through September 30, 2012. (3)"Adjusted EBITDA" is defined as earnings before interest, taxes, depreciation and amortization (including non-cash stock-based compensation expense), excluding loss on extinguishment of debt, net litigation proceeds, merger-related expenses and deal costs, gains or losses on sales of real property assets and changes in the fair value of financial instruments (including amounts in discontinued operations). (4)"NOI" represents net operating income, which is defined as total revenues, less interest and other income, property-level operating expenses and medical office building services costs (including amounts in discontinued operations). (5)Ratios are based on total revenues for each period presented. Revenues from properties sold or classifed as held for sale as of the reporting date are included in this presentation.
Property-level operating expenses related to the segment include labor, food, utilities, marketing, management and other costs of operating the properties. Property-level operating expenses increased for the three months ended September 30, 2012 over the same period in 2011 primarily due to the properties we acquired subsequent to September 30, 2011 described above, higher labor expenses and higher management fees at the 79 Sunrise-managed communities we acquired in 2007 (the "Original Sunrise-Managed Communities"). Under our management agreements with respect to the Original Sunrise-Managed Communities, the management fee paid to Sunrise was temporarily reduced to 3.75% of revenues generated by the applicable properties for 2011, but reverted to its contractual level of 6% of revenues generated by the applicable properties (with a range of 5% to 7%) for 2012 and subsequent years.
Same-store stabilized senior living operations NOI increased year over year primarily as a result of higher average unit occupancy rates and higher average monthly revenue per occupied room, offset by higher management fees paid with respect to the Original Sunrise-Managed Communities in 2012 due to the reversion back to the contractual rate. Management fee expense for our same-store stabilized communities increased $4.0 million in the third quarter of 2012 over the same period in 2011.
Same-store stabilized senior living operations NOI increased year over year primarily as a result of higher average unit occupancy rates and higher average monthly revenue per occupied room, partially offset by the increase in management fees with respect to the Original Sunrise-Managed Communities due to the reversion back to the contractual rate in 2012. Management fee expense for our same-store stabilized communities increased $10.0 million in the first nine months of 2012 over the same period in 2011.
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