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Hot off the Press, Big Special Situation News in the Senior Care Sector Could Lead to Big Gains



April 06, 2015 – Comments (0) | RELATED TICKERS: VTR , CTRE , ADK

Interesting special situation news broke this morning when the healthcare REIT Ventas (VTR) announced that it is spinning off its Post-Acute/Skilled Nursing Facility Portfolio into a separate yet to be named company...

I haven't analyzed what this means for Ventas as a company in great detail yet, but Mr. Market likes the news.  In an otherwise down day, VTR's stock is currently up over 3%.  My initial reaction is that it is a positive for Ventas, which should see its multiples grow both it and the SpinCo as they become more specialized and increase their combined dividend by 10% right off the bat.

More importantly, I view this news as being a major positive for the existing smaller REITs in the senior care sector. I currently own a couple of them, CareTrust (CTRE) and  AdCare (ADK)...CONTINUED.

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