Ventas Inc (VTR) recently announced that it has completed the acquisition of Cogdell Spencer Inc. Following the takeover, Ventas will get hold of 72 high-quality medical office buildings (MOBs) across the U.S.
Subsequent to the closure of the Cogdell acquisition, Ventas has emerged as the largest owner of MOBs in the U.S., with over 21 million square feet of owned and managed properties. This transaction also increases Ventas’s MOB portfolio from 12% to 15% of its total business. The company is expected to derive potential synergies and cost benefits from its recent acquisitions.
Upon the closing of this deal, the Cogdell MOB portfolio and employees were integrated into Ventas’s Lillibridge Healthcare Services operating platform.Ventas currently has over 60 strong hospital relationships, which places it well for growth and to deliver value to its shareholders.
Ventas reported fourth 2011 funds from operations (FFO) of $359.1 million or $1.24 per share compared with $108.3 million or 68 cents per share in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.
Ventas is one of the top performing healthcare REITs in the U.S., with one of the largest and most diversified portfolios in the healthcare sector with exposure to all types of facilities. The product diversity of the company allows it to capitalize on opportunities in different markets based on individual market dynamics, and provides competitive advantage over its peers.
Ventas currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, HCP, Inc. (HCP) also holds a Zacks #3 Rank.
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