Stanford University reports FY 2011 financial results

Stanford University reported its financial results for fiscal year 2011 (FY2011), which ended Aug. 31, 2011. Consolidated net assets increased $3.7 billion, or 17 percent, to end the year at $25.1 billion. Consolidated results include the university, Stanford Hospital and Clinics, and Lucile Salter Packard Children's Hospital at Stanford. Net assets include the value of the endowment, expendable funds, plant facilities and other assets, less debt and other liabilities.

"Excellent investment returns, generous support from donors and cost-saving measures implemented in response to the recent economic downturn were instrumental in creating strong financial results for the university in FY2011," said Randy Livingston, vice president for business affairs and chief financial officer. "Despite these positive results, though, Stanford has not lost sight of the impending risks ahead: The outlook for federal research funding remains uncertain, investment markets remain volatile due to continued global economic malaise, and health care reform is upon us."

Net assets of the university, excluding the hospitals, increased 16 percent, to $22.6 billion. The university's endowment rose in value by 19 percent over the past year to approximately $16.5 billion. The growth in endowment resulted from strong investment gains, endowment gifts and other funds transferred into endowment, offset by the annual payout for university operations. Payout from the endowment declined 8 percent to $785 million in FY2011. The reduction in payout was the second year of an action implemented following the economic downturn. Endowment payout in FY2011 was equal to 5.7 percent of the endowment value at the beginning of the fiscal year.

The university ended the year with a surplus from operations of $257 million, compared to $210 million in the prior year. Revenues were $3.8 billion, up $260 million or 7 percent over the prior year. The net assets of the hospitals, which are each separate legal entities, increased $589 million to $2.6 billion in FY2011. The hospitals had a combined operating surplus of $259 million.

FY2011 results were reported to the university's Board of Trustees on Dec. 12 and are posted on the Stanford bondholder web pages (

Information in this press release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements." In this respect, the words "estimate," "project," "anticipate," "expect," "intend," "believe" and similar expressions are intended to identify forward-looking statements. A number of important factors affecting the university's business and financial results could cause actual results to differ materially from those stated in the forward-looking statements.

Lisa Lapin, University Communications: (650) 725-8395,