Ventas, Inc. (NYSE:VTR) has announced the pricing of public offering of senior notes of $400 million aggregate principal amount. This pricing of the offering is likely to add flexibility to the Chicago, IL-based healthcare real estate investment trust’s (“REIT”) balance sheet.
The notes issued by the Ventas Realty, Limited Partnership, the operating partner of Ventas bear a rate of 3.125% and is due on 2013. Subject to the satisfaction of certain customary closing conditions, the notes sale is slated to be completed on Jun 2, 2016. The company expects to utilize the net proceeds derived from this offering to purchase 1.55% senior notes due 2016 and for various corporate purposes.
Ventas is mainly engaged in the acquisition and ownership of seniors housing and healthcare properties, and leasing them to unaffiliated tenants or operating them through independent third-party managers.
Last month, the company reported first-quarter 2016, normalized funds from operation (“FFO”) of $1.04 per share which surpassed the Zacks Consensus Estimate of $1.02. On a comparable basis, adjusting the effect of spin-offs, normalized FFO for the quarter grew 7% year over year.
The stock presently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail REIT space include Brookfield Canada Office Properties (NYSE:BOXC) , Summit Hotel Properties, Inc. (NYSE:INN) and W. P. Carey Inc. (NYSE:WPC) . All these stocks sport a Zacks Rank #1 (Strong Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
VENTAS INC (VTR): Free Stock Analysis Report
WP CAREY INC (WPC): Free Stock Analysis Report
SUMMIT HOTEL PR (INN): Free Stock Analysis Report
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