Profile: Ventas Inc (VTR)
22 Aug 2014
Ventas, Inc., incorporated June 22, 1983, is a real estate investment trust (REIT) with a geographically diverse portfolio of seniors housing and healthcare properties throughout the United States and Canada. As of December 31, 2011, the Company operated through three business segments: triple-net leased properties, senior living operations and MOB operations. As of December 31, 2011, the Company owned 1,378 properties located in 46 states, the District of Columbia and two Canadian provinces, consisting of 678 seniors housing communities; 396 skilled nursing facilities; 47 hospitals; 249 medical office buildings (MOBs), and eight personal care facilities. The Company was in the process of developing three properties as of December 31, 2011. In May 2011, it acquired substantially all of the real estate assets and working capital of Atria Senior Living Group, Inc. (ASLG). In July 2011, it acquired Nationwide Health Properties, Inc. (NHP). In June 2012, the Company sold 12 seniors housing communities to Assisted Living Concepts, Inc. In June 2014, the Company acquired ARC Healthcare. In August 2014, Ventas, Inc. Completes previously announced acquisition of 29 Canadian senior living communities from Holiday Retirement.
As of December 31, 2011, it leased 929 properties (excluding MOBs) to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures, and it engaged independent third parties, such as Atria Senior Living, Inc. (Atria) and Sunrise Senior Living, Inc. (Sunrise), to manage 200 seniors housing communities pursuant to long-term management agreements. As of December 31, 2011, it had ownership interests in 1,378 seniors housing and healthcare properties. As of December 31, 2011, Atria and Sunrise, collectively, provided property management and accounting services with respect to 197 of its seniors housing communities for which the Company pays an annual management fee pursuant to long-term management agreements. During the year ended December 31, 2011, it sold two seniors housing communities and two skilled nursing facilities to tenants exercising purchase options.
The Company’s primary business focuses on acquiring and owning seniors housing and healthcare properties and leasing those properties to unaffiliated tenants or operating those properties through independent third-party managers. Through its Lillibridge Healthcare Services, Inc. (Lillibridge) subsidiary and its ownership interest in PMB Real Estate Services LLC (PMBRES), which the Company acquired in July 2011 in connection with its acquisition of NHP, the Company also provides MOB management, leasing, marketing, facility development and advisory services to hospitals and health systems throughout the United States. In addition, from time to time, the Company makes mortgage loan and other investments relating to seniors housing and healthcare operators or properties.
The Company’s triple-net leased properties segment consists of acquiring and owning seniors housing and healthcare properties in the United States and leasing those properties to healthcare operating companies under triple-net or absolute-net leases that require the tenants to pay all property-related expenses. Its senior living operations segment primarily consists of investments in seniors housing communities located in the United States and Canada, for which the Company engages independent third parties, such as Atria and Sunrise, to manage the operations. Its MOB operations segment primarily consists of acquiring, owning, developing, leasing and managing MOBs. Information provided for all other includes revenues, such as income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to its three business segments. Triple-Net Leased Properties include Kindred Master Leases and Brookdale Senior Living Leases
The Company’s seniors housing communities include independent and assisted living communities, continuing care retirement communities and communities providing care for individuals with Alzheimer's disease and other forms of dementia or memory loss. These communities offer studio, one bedroom and two bedroom residential units on a month-to-month basis primarily to elderly individuals requiring various levels of assistance. Basic services for residents of these communities include housekeeping, meals in a central dining area and group activities organized by the staff with input from the residents. More extensive care and personal supervision, at additional fees, are also available for such needs as eating, bathing, grooming, transportation, limited therapeutic programs and medication administration, which allow residents certain conveniences and enable them to live as independently as possible according to their abilities. These services are often met by home health providers, close coordination with the resident's physician and skilled nursing facilities. Charges for room, board and services are generally paid from private sources.
The Company’s skilled nursing facilities provide rehabilitative, restorative, skilled nursing and medical treatment for patients and residents who do not require the high technology, care-intensive, high cost setting of an acute care or rehabilitation hospital. Treatment programs include physical, occupational, speech, respiratory and other therapies, including sub-acute clinical protocols, such as wound care and intravenous drug treatment. Charges for these services are generally paid from a combination of government reimbursement and private sources.
The Company’s hospitals are operated as long-term acute care hospitals, which have a Medicare average length of stay greater than 25 days and serve medically complex, chronically ill patients who require a high level of monitoring and specialized care, but whose conditions do not necessitate the continued services of an intensive care unit. The operators of these hospitals have the capability to treat patients who suffer from multiple systemic failures or conditions such as neurological disorders, head injuries, brain stem and spinal cord trauma, cerebral vascular accidents, chemical brain injuries, central nervous system disorders, developmental anomalies and cardiopulmonary disorders. All of its long-term acute care hospitals are freestanding facilities. The Company also owns two hospitals focused on providing children's care and five rehabilitation hospitals devoted to the rehabilitation of patients with various neurological, musculoskeletal, orthopedic and other medical conditions following stabilization of their acute medical issues.
The Company’s Medical Office Buildings ( MOBs) are typically multi-tenant properties leased to several different unrelated medical practices, although they can be associated with a large single specialty or multi-specialty group. Tenants include physicians, dentists, psychologists, therapists and other healthcare providers, with space devoted to patient examination and treatment, diagnostic imaging, outpatient surgery and other outpatient services. While MOBs are similar to commercial office buildings, they require more plumbing, electrical and mechanical systems to accommodate physicians' requirements, such as sinks in every room, brighter lights and specialized medical equipment. As of December 31, 2011, it owned or managed more than 14 million square feet of MOBs, a majority of which are on campus, meaning on or near an acute care hospital campus. Its personal care facilities provide specialized care, including supported living services, neurorehabilitation, neurobehavioral management and vocational programs, for persons with acquired or traumatic brain injury.
Suite 3300, 353 N. Clark Street
CHICAGO IL 60654
Company Web Links
- Fitch Affirms Ventas at 'BBB+' After E&Y Dismissal; Re-Audit Timing and Results are Key
- Fitch Affirms Ventas, Inc.'s IDR at 'BBB+' Upon ARC Healthcare & Holiday Retirement Transactions
- Ventas to buy ARC Healthcare in $2.6 billion deal
- UPDATE 1-Ventas to buy ARC Healthcare in $2.6 bln deal
- Ventas to buy ARC Healthcare in $2.6 bln deal