Morningstar | Ventas and Its Operating Partners Are Well-Positioned for the Future of Healthcare
The top healthcare real estate stands to disproportionately benefit from the Affordable Care Act. With an increased focus on higher-quality care being performed in lower-cost settings, the best owners and operators in the industry that can provide better outcomes while driving greater efficiencies should see demand funneled to them from the best healthcare systems. Additionally, the baby boomer generation is starting to enter its senior years and the 80-plus age population, an age range that spends more than 4 times on healthcare per capita than the national average, should almost double in size over the next 10 years. Long-term, the best healthcare companies are well-positioned to take advantage of these industry tailwinds.In our view, Ventas will benefit from these industry tailwinds due to its portfolio of high quality assets connected to top operators. After disposing of the vast majority of its skilled nursing facilities through the Care Capital Properties spin-off and further sales in 2017 and 2018, the firm is repositioned to benefit from a diversified portfolio of senior housing, medical office buildings, life science and hospitals. Ventas has made a bet on the potential future of healthcare delivery by partnering with Ardent Health Services, an acute-care hospital owner and operator, and partnering with Wexford, a life science operator and developer. While the ultimate scope, scale, and success of these strategies remain to be seen, Ardent and Wexford give Ventas added platforms for consolidation as owners and operators potentially seek an efficient capital partner that can help provide an integrated healthcare infrastructure.Increased national senior housing supply has dragged on the company as growth has slowed, though we remain optimistic about the sector’s longer-term prospects given that construction starts in 2018 are less than half of the peak seen a few years ago and the demographic boon is only a few years away. Despite the possibility of further changes to the ACA, we think any changes will still result in a coordinated value and outcome-based system that will provide Ventas’ current portfolio strong tailwinds.Ventas is a real estate investment trust with a portfolio of seniors housing, research and innovation, and healthcare properties located throughout the United States, Canada and the United Kingdom. The company has three segments: triple-net leased properties, which invests in and owns seniors housing and healthcare properties and leases those properties to healthcare operating companies under triple-net or absolute-net leases; senior living operations, which invests in seniors housing communities and engages independent operators to manage those communities; and office operations, which acquires, owns, develops, leases and manages medical office buildings and research and innovation centers.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.