Ventas to Transition 90 Senior Living Communities to Experienced Managers with Strong Local Market Focus
05 Ottobre 2021 - 12:30PM
Business Wire
Transitions Execute on Ventas’s Senior Housing
Strategy
Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) today
announced that it intends to transition operations of 90 senior
living communities owned by Ventas (the “Communities”) that have
been adversely affected by the COVID-19 pandemic to eight
experienced operators (“New Managers”) to best position the
Communities to benefit from the expected cyclical recovery of
senior living. The Communities are currently operated under
management agreements with Eclipse Senior Living (“ESL”), which was
party to the strategic decision behind the transition.
The transitions are designed to execute on the Company’s senior
housing strategy that matches the right asset with the right market
and the right operator. The New Managers are expected to provide
strong local market focus and oversight for the Communities. They
are experienced in middle market assisted living and have strong
geographical overlap. The Communities will be operated by the New
Managers under incentivized management contracts.
The Communities are located in 20 states, principally in markets
with positive forward supply-demand characteristics, which should
position the Communities to recapture value and net operating
income (“NOI”) over time as the COVID-19 pandemic abates and the
industry recovers. The Communities were not contributors to the
Company’s overall NOI or its Senior Housing Operating Portfolio
(“SHOP”) NOI in the second quarter 2021. Ventas expects to incur
certain one-time transition costs and expenses in connection with
the transitions.
Ventas expressed its appreciation to everyone at ESL for their
hard work in managing the Communities. ESL and its key principals
have agreed to facilitate an orderly transition to the New
Managers. ESL is expected to cease operation of its management
business in 2022 following transition of the Communities. Most of
the transitions are expected to be completed by the end of 2021,
subject to final documentation, regulatory approvals and other
customary conditions.
About Ventas
Ventas, an S&P 500 company, operates at the intersection of
two powerful and dynamic industries – healthcare and real estate.
As one of the world’s foremost Real Estate Investment Trusts,
Ventas’s portfolio of approximately 1,300 properties is buoyed by
the demographic tailwind of a large and growing aging population.
Ventas uses the power of capital to unlock the value of senior
living communities, life science, research & innovation
properties, medical office & outpatient facilities and other
healthcare real estate, working with leading care providers,
developers, research, educational and medical institutions,
innovators and healthcare organizations. Ventas has followed a
successful strategy that endures: combining a high-quality
diversified portfolio of properties and capital sources to manage
through cycles, working with industry leading partners, and a
collaborative and experienced team focused on producing consistent
growing cash flows and superior returns on a strong balance sheet,
ultimately rewarding Ventas stakeholders.
Forward Looking Statements
This communication includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include, among others,
statements of expectations, beliefs, future plans and strategies,
anticipated results from operations and developments and other
matters that are not historical facts. Forward-looking statements
include, among other things, statements regarding our and our
officers’ intent, belief or expectation as identified by the use of
words such as “may,” “will,” “project,” “expect,” “believe,”
“intend,” “anticipate,” “seek,” “target,” “forecast,” “plan,”
“potential,” “estimate,” “could,” “would,” “should” and other
comparable and derivative terms or the negatives thereof.
Forward-looking statements are based on management’s beliefs as
well as on a number of assumptions concerning future events. You
should not put undue reliance on these forward-looking statements,
which are not a guarantee of performance and are subject to a
number of uncertainties and other factors that could cause actual
events or results to differ materially from those expressed or
implied by the forward-looking statements. You are urged to
carefully review the disclosures we make concerning risks and
uncertainties that may affect our business and future financial
performance in our filings with the Securities and Exchange
Commission (“SEC”), including those made in the “Risk Factors”
section and “Management’s Discussion & Analysis of Financial
Condition and Results of Operations” section of our most recently
filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
We do not undertake a duty to update these forward-looking
statements, which speak only as of the date on which they are
made.
Certain factors that could affect our future results and our
ability to achieve our stated goals include, but are not limited
to: (a) the impact of the ongoing COVID-19 pandemic, including of
the Delta or any other variant, on our revenue, level of
profitability, liquidity and overall risk exposure and the
implementation and impact of regulations related to the CARES Act
and other stimulus legislation and any future COVID-19 relief
measures; (b) our ability to achieve the anticipated benefits and
synergies from the acquisition of, and the risk of greater than
expected costs or other difficulties related to the integration of,
New Senior Investment Group Inc.; (c) our exposure and the exposure
of our tenants, borrowers and managers to complex healthcare and
other regulation and the challenges and expense associated with
complying with such regulation; (d) the potential for significant
general and commercial claims, legal actions, regulatory
proceedings or enforcement actions that could subject us or our
tenants, borrowers or managers to increased operating costs and
uninsured liabilities; (e) the impact of market and general
economic conditions, including economic and financial market
events, or events that affect consumer confidence, our occupancy
rates and resident fee revenues, and the actual and perceived state
of the real estate markets, labor markets and public capital
markets; (f) our ability, and the ability of our tenants, borrowers
and managers, to navigate the trends impacting our or their
businesses and the industries in which we or they operate; (g) the
risk of bankruptcy, insolvency or financial deterioration of our
tenants, borrowers, managers and other obligors and our ability to
foreclose successfully on the collateral securing our loans and
other investments in the event of a borrower default; (h) our
ability to identify and consummate future investments in or
dispositions of healthcare assets and effectively manage our
portfolio opportunities and our investments in co-investment
vehicles; (i) our ability to attract and retain talented employees;
(j) the limitations and significant requirements imposed upon our
business as a result of our status as a REIT and the adverse
consequences (including the possible loss of our status as a REIT)
that would result if we are not able to comply; (k) the risk of
changes in healthcare law or regulation or in tax laws, guidance
and interpretations, particularly as applied to REITs, that could
adversely affect us or our tenants, borrowers or managers; (l)
increases in our borrowing costs as a result of becoming more
leveraged or as a result of changes in interest rates and phasing
out of LIBOR rates; (m) our reliance on third parties to operate a
majority of our assets and our limited control and influence over
such operations and results; (n) our dependency on a limited number
of tenants and managers for a significant portion of our revenues
and operating income; (o) the adequacy of insurance coverage
provided by our policies and policies maintained by our tenants,
managers or other counterparties; (p) the occurrence of cyber
incidents that could disrupt our operations, result in the loss of
confidential information or damage our business relationships and
reputation; (q) the impact of merger, acquisition and investment
activity in the healthcare industry or otherwise affecting our
tenants, borrowers or managers; and (r) the risk of catastrophic or
extreme weather and other natural events and the physical effects
of climate change.
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Sarah Whitford (877) 4-VENTAS
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