Ventas Inc. (VTR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Ventas Inc. has a market cap of $7.67 billion; its shares were traded at around $48.94 with a P/E ratio of 18.3 and P/S ratio of 8.2. The dividend yield of Ventas Inc. stocks is 4.4%. Ventas Inc. had an annual average earning growth of 4.8% over the past 10 years.VTR is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Chris Davis of Davis Selected Advisers, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
On April 19, 2010, the Centers for Medicare & Medicaid Services (CMS) placed on public display for an expected May 4, 2010 publication its proposed rule updating the prospective payment system for long-term acute care hospitals (LTAC PPS) for the 2011 fiscal year (October 1, 2010 through September 30, 2011). Under the proposed rule, the LTAC PPS standard federal payment rate would decrease by 0.1% in fiscal year 2011, reflecting a 2.4% increase in the market basket index, less a 2.5% adjustment to account for an increase in case-mix in fiscal year 2008 and 2009 that CMS attributes to changes in documentation and coding practices, rather than patient severity. Despite this decrease, CMS estimates that net payments to long-term acute care hospitals under the proposed rule would increase by approximately $41 million, or 0.8%, in fiscal year 2011 due to area wage adjustments, as well as increases in high-cost and short-stay outlier payments.
Total interest expense, including interest allocated to discontinued operations of $0.2 million and $0.9 million for the three months ended March 31, 2010 and 2009, respectively, decreased $2.3 million in the first quarter of 2010 over the same period in 2009, primarily due to a $8.4 million reduction in interest from lower loan balances, partially offset by a $5.5 million increase in interest from higher effective interest rates. Interest expense includes $1.8 million and $1.5 million of amortized deferred financing fees for the three months ended March 31, 2010 and 2009, respectively. Our effective interest rate increased to 6.6% for the three months ended March 31, 2010, from 5.6% for the three months ended March 31, 2009 due to the higher outstanding balances on our revolving credit facilities maintained during the first quarter of 2009 at lower rates during the credit crisis. As a result of the increased interest expense attributable to these revolving credit borrowings at a significantly lower rate, our effective interest rate from the first quarter of 2009 was lower. A decrease in the average Canadian dollar exchange rate had an unfavorable impact on interest expense of $0.3 million for the three months ended March 31, 2010, compared to the same period in 2009.
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Ventas Inc. has a market cap of $7.67 billion; its shares were traded at around $48.94 with a P/E ratio of 18.3 and P/S ratio of 8.2. The dividend yield of Ventas Inc. stocks is 4.4%. Ventas Inc. had an annual average earning growth of 4.8% over the past 10 years.VTR is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Chris Davis of Davis Selected Advisers, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
As of March 31, 2010, approximately 38.9%, 21.7% and 14.0% of our properties, based on the gross book value of real estate investments (including assets held for sale), were managed or operated by Sunrise, Brookdale Senior Living and Kindred, respectively. Approximately 44.7%, 12.6% and 25.2% of our total revenues and 20.8%, 18.7% and 37.4% of our total net operating income (NOI, which is defined as total revenues, less interest and other income and property-level operating expenses) (including amounts in discontinued operations) for the three months ended March 31, 2010 were attributable to senior living operations managed by Sunrise, our leases with Brookdale Senior Living and our master lease agreements with Kindred (the Kindred Master Leases), respectively. Approximately 20.9% of our earnings before interest, taxes, depreciation and amortization (including of non-cash stock-based compensation), excluding merger-related expenses and deal costs and gains and losses on real estate disposals (Adjusted EBITDA) (including amounts in discontinued operations) for the three months ended March 31, 2010 were attributable to our senior living operations managed by Sunrise. Seniors housing communities and skilled nursing facilities constituted approximately 73.9% and 12.5%, respectively, of our portfolio, based on the gross book value of real estate investments (including assets held for sale), as of March 31, 2010. See Non-GAAP Financial Measures for further discussion and reconciliations of NOI and Adjusted EBITDA to our net income, as computed in accordance with U.S. generally accepted accounting principles (GAAP).On April 19, 2010, the Centers for Medicare & Medicaid Services (CMS) placed on public display for an expected May 4, 2010 publication its proposed rule updating the prospective payment system for long-term acute care hospitals (LTAC PPS) for the 2011 fiscal year (October 1, 2010 through September 30, 2011). Under the proposed rule, the LTAC PPS standard federal payment rate would decrease by 0.1% in fiscal year 2011, reflecting a 2.4% increase in the market basket index, less a 2.5% adjustment to account for an increase in case-mix in fiscal year 2008 and 2009 that CMS attributes to changes in documentation and coding practices, rather than patient severity. Despite this decrease, CMS estimates that net payments to long-term acute care hospitals under the proposed rule would increase by approximately $41 million, or 0.8%, in fiscal year 2011 due to area wage adjustments, as well as increases in high-cost and short-stay outlier payments.
Total interest expense, including interest allocated to discontinued operations of $0.2 million and $0.9 million for the three months ended March 31, 2010 and 2009, respectively, decreased $2.3 million in the first quarter of 2010 over the same period in 2009, primarily due to a $8.4 million reduction in interest from lower loan balances, partially offset by a $5.5 million increase in interest from higher effective interest rates. Interest expense includes $1.8 million and $1.5 million of amortized deferred financing fees for the three months ended March 31, 2010 and 2009, respectively. Our effective interest rate increased to 6.6% for the three months ended March 31, 2010, from 5.6% for the three months ended March 31, 2009 due to the higher outstanding balances on our revolving credit facilities maintained during the first quarter of 2009 at lower rates during the credit crisis. As a result of the increased interest expense attributable to these revolving credit borrowings at a significantly lower rate, our effective interest rate from the first quarter of 2009 was lower. A decrease in the average Canadian dollar exchange rate had an unfavorable impact on interest expense of $0.3 million for the three months ended March 31, 2010, compared to the same period in 2009.
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