NEW YORK (Dow Jones)-Ventas Inc.'s (VTR) third-quarter funds from operations fell, yet topped analysts' expectations, helped in part by rent increases and strength in its medical office building portfolio.

The health care real estate investment trust whose properties include senior housing communities, skilled nursing facilities and hospitals also raised its 2009 adjusted FFO forecast.

The Chicago company, said third-quarter FFO fell to $98.3 million, from $113 million, a year earlier. On a per-share basis, FFO fell to 63 cents a share, from 80 cents a share. Adjusted FFO decreased to 66 cents from 68 cents, a year ago.

Analysts, on average, expected FFO, which is a key industry figure of performance, of 63 cents a share, according to Thomson Reuters.

For the year, the Chicago company said it now expects adjusted FFO per share of $2.62 to $2.65 a share, improving upon its previous view of $2.55 to $2.62 a share.

Health care REITs have seen their shares run up in recent months, as their generally strong balance sheets and potential for acquisitions has caught the attention of many investors. Not to mention, the nature of their cash flows, compared to their peers in the multi-family or office space, for example, has helped them be more resilient in the down economy, said David Aubuchon, analyst at Robert W. Baird & Co.

Ventas, like other health care REITs, has actively boosted its capital and liquidity position by selling stock and notes, and using some of the proceeds to pay off debt.

Even so, senior housing occupancy has been challenged as the recession has held back some seniors from selling homes and in turn postponed their moves into REIT-owned facilities.

Shares closed Wednesday at $39.01 and didn't trade premarket.

-By Veronica Dagher, Dow Jones Newswires; 212-416-2261; veronica.dagher@dowjones.com