Ventas Deal: Senior Care REITs a Promising Investment

Could nursing home REITs become a new investment trend? Image: LOLren/Flickr

Ventas Inc., the nation’s biggest owner of senior housing, bought Nationwide Health Properties, a real estate investment trust specializing in senior housing and long-term care facilities, for $5.8 billion today. Ventas already owns 55,000 senior beds and housing units in 44 states and Canada. Bloomberg has more:

The deal will form the largest health-care REIT in the U.S., according to the statement. Property deals are rising in the industry as real estate values recover. HCP Inc., currently the biggest U.S. health-care REIT by market value, agreed in December to buy 338 properties from Carlyle Group’s HCR ManorCare Inc. for $6.1 billion.

“The really big growth driver in health care is acquisitions,” Craig Guttenplan, an analyst at CreditSights in London. said in a telephone interview. “This is kind of a one- off deal to make them more competitive in the private market.”

Health care is the single-largest industry in the U.S. based on contribution to gross domestic product, HCP said on its website. The industry will account for about 20 percent of the economy by 2019, Ventas said in a January presentation.

By leasing their properties to health care operators, Ventas is positioned to cash in big time on retiring baby boomers. It is now the biggest health care REIT in the United States. And with average prices per (nursing home) bed hovering around record highs, senior care REITs are looking promising as an everyday investment, too.

Other recent stories

NYSE, Deutsche Boerse Merge

Deutsche Boerse and the New York Stock Exchange have merged, creating the biggest stock exchange in the world. Reuters has more about the $10 billion deal: The new company, which has yet to be named and will be incorporated in Amsterdam,… Read more

Insider Trading Scandal: Latest Target Made $820,000 off Insider Trades

As part of a continuing crackdown, federal prosecutors are charging four hedge fund employees–three portfolio managers and an analyst–with insider trading. Former SAC Capital Advisors portfolio managers Noah Freeman and Donald Longueuil are… Read more

Investors Use Twitter to Follow Stock Market’s Mood

A hedge fund has created a trading model that lets investors gauge the stock market’s mode via Twitter. Bloomberg has the story: The Derwent Absolute Return Fund Ltd., set to start trading in February with an initial 25 million pounds ($39… Read more

The 10 Funniest Business and Finance Moments of 2010

This is a post by ‘Tis the season for year-in-review stories. Here’s our contribution to your reading and viewing lists: a look at the funniest moments in business and finance. 10. Tim Geithner Still Can’t Sell His… Read more

A Chart of the Tax Deal

From the White House, no less: Here’s a chart found on The American depicting the proportion of taxes the top earners in the US pay, barring any fancy accounting using C-corporations, I assume. Hat tip to Roark:… Read more

iSoftStone: Bring on the Chinese IPO Bubble, Baby

Chinese tech companies’ US IPO have been erupting into a storm of money lately. IT services company iSoftStone, which targets the banking, energy, communications, and tech industries with its consulting and services, is the NYSE’s latest… Read more

Activist Investor Bids for Barnes & Noble, Borders Merger

Activist investor Bill Ackman, who owns 37% of Borders through his Pershing Square Capital Management, has indicated willingness to finance a merger between Borders and Barnes & Noble. The New York Times reports: Mr. Ackman, the largest… Read more

Norway Investigates Muhammad Yunus’ Grameen Bank

Image: World Economic Forum/Flickr Nobel Laureate and Grameen Bank founder Muhammad Yunus is under investigation for diverting nearly $100 million in grant money from microcredit lender Grameen Bank, for which the money was intended, to Grameen… Read more

Gold: A Key Hedge Against International Uncertainty

This is a guest post by Day Trade Listings. It seems that you can’t pick up your newspaper or turn on your television without seeing an over extended European country being bailed out, or some new stimulus being implemented. This week… Read more

The 17 Things Worrying Investors This Week

This is a post by Since the 1930’s, when Benjamin Graham created the concept of Mr. Market, investors have been trying to figure out what’s worrying the stock market at any given moment. Oddly, no one has ever kept a list of… Read more

General Motors (Stock Symbol: GM) Goes Public

Watch the latest video at General Motors (GM) started trading at $35 on the New York Stock Exchange this morning, after an initial stock offering of $33 per share. The Wall Street Journal has more on GM’s unique… Read more

Book Review: All the Devils Are Here: The Hidden History of the Financial Crisis

Wall Street seems to float in an ether above Main Street, ubiquitous but at the same time untouchable. So translating the fog behind the 2008 financial crisis into language everyone can understand is a daunting task. In their new book, All the… Read more

John Elway Throws $15mil into Ponzi Scheme

Former Broncos quarterback John Elway and his business partner invested 15 million with hedge fund manager Sean Mueller. It later turned out that Mueller’s company “only had $9.5 million in assets in April and $45 million in liabilities,”… Read more

15 Religious Swindles That Shame the Holy Name

What crime combines billions in annual earnings, sneaky accounting, a lack of media coverage, and the good Lord himself? Religious fraud. Conning the faithful, it turns out, is a lucrative art. Christian leaders alone stole more than $27 billion… Read more