DOW JONES NEWSWIRES
Ventas Inc. (VTR) confirmed its guidance for 2009 funds from
operations and said it plans to sell 8.5 million common shares and
$200 million of senior notes due 2016 to buy back debt.
Shares fell 3.7% to $24.49 after hours; the stock price has
fallen 24% in 2009.
Proceeds from the offerings will be used to fund cash tender
offers for four series of senior notes due 2010, 2012, 2014 and
2015. The total purchase of the note is not to exceed $310
million.
Unused proceeds would go towards paying other debt under its
unsecured revolving credit facilities and for working capital and
other general corporate purposes, including funding acquisitions
and investments.
The common stock offering would increase the number of Ventas'
outstanding shares by 5.9%. The company expects to grant the
underwriters an option to purchase up to 1.28 million shares to
cover overallotments.
In February, Ventas - which owns health-care facilities and
senior-living centers - projected 2009 funds from operations of
$2.55 to $2.65 a share, well below the $2.82 a share Wall Street
expected. FFO is a key measure of profitability for real-estate
investment trusts.
At that time, BMO Capital Markets said that was the first major
"miss" by Ventas since its coverage began in 2003.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com