UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 4, 2011
VENTAS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware |
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1-10989 |
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61-1055020 |
(State or Other Jurisdiction |
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(Commission |
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(IRS Employer |
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111 S. Wacker Drive, Suite 4800, Chicago, Illinois |
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60606 | ||
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrants Telephone Number, Including Area Code: (877) 483-6827
Not Applicable
Former Name or Former Address, if Changed Since Last Report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On August 4, 2011, Ventas, Inc. (the Company) issued a press release announcing its results of operations for the quarter ended June 30, 2011. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated in this Item 2.02 by reference.
The press release states that the Companys normalized funds from operations (FFO) for the quarter ended June 30, 2011 was $141.5 million, or $0.80 per diluted common share, as compared to $111.9 million, or $0.71 per diluted common share, for the quarter ended June 30, 2010. The Companys net income attributable to common stockholders for the quarter ended June 30, 2011 was $19.7 million, or $0.11 per diluted common share, as compared to $58.1 million, or $0.37 per diluted common share (after discontinued operations of $5.9 million), for the comparable period in 2010. FFO, as defined by the National Association of Real Estate Investment Trusts, for the second quarter of 2011 was $100.6 million, or $0.57 per diluted common share, as compared to $101.3 million, or $0.64 per diluted common share, for the second quarter of 2010.
For the six months ended June 30, 2011, the Companys normalized FFO was $262.6 million, or $1.54 per diluted common share, as compared to $217.1 million, or $1.38 per diluted common share, for the six months ended June 30, 2010. The Companys net income attributable to common stockholders for the six months ended June 30, 2011 was $68.7 million, or $0.40 per diluted common share, versus $110.7 million, or $0.70 per diluted common share (after discontinued operations of $6.6 million), for the comparable period in 2010. NAREIT FFO for the first half of 2011 was $201.6 million, or $1.19 per diluted common share, as compared to $204.3 million, or $1.30 per diluted common share, for the first half of 2010.
The press release also states that the Company currently expects its normalized FFO for the year ending December 31, 2011 to be between $3.17 and $3.23 per diluted common share. The Company expects its net income attributable to common stockholders for 2011 to be between $0.53 and $0.71 per diluted common share.
FORWARD-LOOKING STATEMENTS
This Current Report on Form 8-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Companys or its tenants, operators, managers or borrowers expected future financial position, results of operations, cash flows, funds from operations, dividends and dividend plans, financing plans, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, merger integration, growth opportunities, expected lease income, continued qualification as a real estate investment trust (REIT), plans and objectives of management for future operations and statements that include words such as anticipate, if, believe, plan, estimate, expect, intend, may, could, should, will and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and security holders must recognize that actual results may differ from the Companys expectations. The Company does not undertake a duty to update these forward-looking statements, which speak only as of the date on which they are made.
The Companys actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Companys filings with the Securities and Exchange Commission. These factors include without limitation: (a) the ability and willingness of the Companys tenants, operators, borrowers, managers and other third parties to meet and/or perform their obligations under their respective contractual arrangements with the Company, including, in some cases, their obligations to indemnify, defend and hold harmless the Company from and against various claims, litigation and liabilities; (b) the ability of the Companys tenants, operators, borrowers and managers to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to third parties, including without limitation obligations under their existing credit facilities and other indebtedness; (c) the Companys success in implementing its business strategy and the Companys ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions or investments, including the Nationwide Health Properties, Inc. transaction and those in different asset types and outside the United States; (d) macroeconomic conditions such as a disruption of or lack of access to the capital markets, changes in the debt rating on U.S. government securities, default and/or delay in payment by the United States of its obligations, and changes in the federal budget resulting in the reduction or nonpayment of Medicare or Medicaid reimbursement rates; (e) the nature and extent of future competition; (f) the extent of future or pending healthcare reform and regulation, including cost containment measures and changes in reimbursement policies, procedures and rates; (g) increases in the Companys cost of borrowing as a result of changes in interest rates and other factors; (h) the ability of the Companys operators and managers, as applicable, to deliver high quality services, to attract and retain qualified personnel and to attract residents and patients; (i) changes in general economic conditions and/or economic conditions in the markets in which the Company may, from time to time, compete, and the effect of those changes on the Companys revenues and its ability to access the capital markets or other sources of funds; (j) the Companys ability to pay down, refinance, restructure and/or extend its indebtedness as it becomes due; (k) the Companys ability and willingness to maintain its qualification as a REIT due to economic, market, legal, tax or other considerations; (l) final determination of the Companys taxable net income for the year ended December 31, 2010 and for the year ending December 31, 2011; (m) the ability and willingness of the Companys tenants to renew their leases with the Company upon expiration of the leases and the Companys ability to reposition its properties on the same or better terms in the event such leases expire and are not renewed by the Companys tenants or in the event the Company exercises its right to replace an existing tenant upon default; (n) risks associated with the Companys senior living operating portfolio, such as factors causing volatility in the Companys operating income and earnings generated by its properties, including without limitation national and regional economic conditions, costs of materials, energy, labor and services, employee benefit costs, insurance costs and professional and general liability claims, and the timely delivery of accurate property-level financial results for those properties; (o) the movement of U.S. and Canadian exchange rates; (p) year-over-year changes in the Consumer Price Index and the effect of those changes on the rent escalators, including the rent escalator for Master Lease 2 with Kindred Healthcare, Inc., and the Companys earnings; (q) the Companys ability and the ability of its tenants, operators, borrowers and managers to obtain and maintain adequate liability and other insurance from reputable and financially stable providers; (r) the impact of increased operating costs and uninsured professional liability claims on the liquidity, financial condition and results of operations of the Companys tenants, operators, borrowers and managers, and the ability of the
Companys tenants, operators, borrowers and managers to accurately estimate the magnitude of those claims; (s) risks associated with the Companys medical office building (MOB) portfolio and operations, including its ability to successfully design, develop and manage MOBs, to accurately estimate its costs in fixed fee-for-service projects and to retain key personnel; (t) the ability of the hospitals on or near whose campuses the Companys MOBs are located and their affiliated health systems to remain competitive and financially viable and to attract physicians and physician groups; (u) the Companys ability to maintain or expand its relationships with its existing and future hospital and health system clients; (v) risks associated with the Companys investments in joint ventures and unconsolidated entities, including its lack of sole decision-making authority and its reliance on its joint venture partners financial condition; (w) the impact of market or issuer events on the liquidity or value of the Companys investments in marketable securities; and (x) the impact of any financial, accounting, legal or regulatory issues or litigation that may affect the Company or its major tenants, operators or managers. Many of these factors are beyond the control of the Company and its management.
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Shell Company Transactions.
Not applicable.
(d) Exhibits:
Exhibit |
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Description |
99.1 |
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Press release issued by the Company on August 4, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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VENTAS, INC. |
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Date: August 4, 2011 |
By: |
/s/ Kristen M. Benson | |
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Kristen M. Benson | |
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Vice President and | |
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Senior Securities Counsel | |