CHICAGO -- Medical real estate company Ventas Inc. said Friday that its funds from operations grew 12 percent in the third quarter, buoyed by acquisitions.
Ventas invests in, manages, finances and leases real estate used by health care companies. Its holdings include hospitals, skilled nursing facilities and medical office buildings. In April the company bought Cogdell Spencer Inc., which invests in medical office buildings, for $770 million. In May it bought 16 senior living communities from Sunrise Senior Living Inc.
Ventas said its normalized funds from operations rose to $284.9 million, or 96 cents per share, from $255.1 million, or 88 cents per share, a year ago. Analysts polled by Factset expected 93 cents per share.
Funds from operations, or FFO, adds such items as amortization and depreciation to net income, and it is considered a key measure of the strength of a real estate investment trust. Amortization and depreciation are accounting tools used to measure the value of a long-term asset over time.
The company's revenue grew 16 percent, to $642 million from $555.4 million.
Ventas said it now expects to report $3.76 to $3.78 per share in funds from operations in 2012, up from its previous estimate of $3.70 to $3.74 per share. Analysts had expected $3.66 per share on average.
Ventas' shares rose 38 cents to $63.40 in morning trading.