Ventas Board Approves Skilled Nursing Spin-off; Sets Completion for Aug. 17

by Jeff Shaw

CHICAGO — The board of directors of Ventas Inc. (NYSE: VTR) has approved the spinoff of most of its skilled nursing portfolio into an independent, publicly traded REIT called Care Capital Properties Inc. (CCP).

Ventas declared a dividend distribution of one share of CCP common stock for every four shares of Ventas common stock held at the close of business on Aug. 10. The company expects to complete the distribution of CCP common stock to its shareholders after the close of trading on Aug. 17.

Following the distribution, CCP will be listed on the New York Stock Exchange under the symbol “CCP” and will own, acquire and lease primarily skilled nursing facilities across the United States. Ventas will continue to trade on the New York Stock Exchange under the symbol “VTR.”

“Following the completion of the spin, Ventas will have an outstanding portfolio and an enhanced growth profile with an increase in NOI contribution from top-tier operators and industry-leading private pay NOI composition,” said Debra A. Cafaro, Ventas chairman and CEO. “At the same time, we will maintain our diversification, scale, strong balance sheet and excellent dividend and cash flow growth. CCP will have a differentiated external growth strategy focused on attractive investment opportunities with regional and local operators.”

Ventas plans to register the new spin-off as a real estate investment trust (REIT) for income tax purposes.

Centerview Partners and Bank of America Merrill Lynch are serving as financial advisors to Ventas, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor in connection with the spin-off.

Based in Chicago, Ventas is the largest owner of seniors housing properties in the United States.

You may also like