Banking, finance, and taxes

Ventas Gears Up for Secondary Offering

Chris Lange

Published: July 6, 2016 2:59 pm

Last Updated: January 13, 2020 6:01 am

Ventas Inc. (NYSE: VTR) announced the pricing of its secondary offering recently. The company values its 9 million share offering up to $649 million in terms of gross proceeds. There is also an overallotment option for an additional 1.35 million shares. Ventas expects to close the offering by July 11.

The sole underwriter for this offering is JPMorgan.

This company is a leading real estate investment trust. Its diverse portfolio of roughly 1,300 assets in the U.S., Canada and the UK consists of seniors housing communities, medical office buildings, skilled nursing facilities, specialty hospitals and general acute care hospitals. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the U.S.

Ultimately, Ventas intends to use the net proceeds from this offering to fund a portion of the $1.5 billion purchase price of its pending acquisition of the real estate portfolio of Wexford Science & Technology.

Should the pending acquisition not be completed, the company intends to use the net proceeds for working capital and other general corporate purposes, including to fund pending or future acquisitions and investments and to repay indebtedness.

So far in 2016 Ventas has outperformed the broad markets with the stock up about 34% in this time. Over the past 52-weeks the stock is up roughly 24%.

Shares of Ventas were last trading down 1.5% at $72.74, with a consensus analyst price target of $62.54 and a 52-week trading range of $46.87 to $73.83.