How often are the words "retirement," "holiday" and "make money" used in the same sentence?
Great news for shareholders of leading health care REIT Ventas (NYSE: VTR) -- which can do so at the next cocktail party, or anytime they want to impress friends and family!
Here's The News Flash
As recently reported by Business Wire, Ventas has completed the ~$900 million acquisition of 29 retirement communities from Holiday Retirement.
These facilities are more than 90 percent occupied and spread across seven Canadian provinces, although heavily weighted toward Ontario and Alberta.
This is in addition to the June 2014 announcement of the $2.6 billion acquisition of newly listed American Realty Healthcare Trust (NASDAQ: HCT), or ARC Healthcare, slated to close prior to the end of the year. When Ventas reported earnings for the quarter ended June 30, 2014 on August 11 acquisition of the Holiday Retirement portfolio was already baked into increased guidance.
Ventas updated its full-year 2014 normalized FFO guidance, which was increased to $4.39-$4.43 per share from $4.31-$4.37. There you have it, Ventas Inc. is making money off of its Holiday Retirement investment!
Making Money Off Of Baby-Boomers And Their Parents
With more and more "baby-boomers" retiring every day, it is no wonder that the health care REIT sector is also growing by leaps and bounds.
A Deeper Dive Into The Ventas Acquisitions
Ventas anticipates acquiring an additional ~$300 million of ARC Healthcare assets that are in its acquisition pipeline, bringing the value of the deal up to ~$2.9 billion.
The Canadian Holiday Retirement assets are located in markets with relatively high household incomes, which translates into a $4,300 average for each of the occupied senior housing units.
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