The Pain at Ventas Isn't Over Yet
Ventas (NYSE: VTR) is one of the largest and most diversified healthcare real estate investment trusts (REITs) in the United States. Normally considered a fairly stable sector, it has been anything but since late last year. Now, with COVID-19 quickly spreading across the country, the situation is even worse.
Here's what's going on, and why Ventas still has more rough road ahead of it.
Ventas operates three main types of healthcare properties. The first two, medical office and medical research facilities, are going fairly well. They make up around 30% of the real estate investment trust's net operating income (NOI). In 2019, the medical office segment grew NOI by roughly 4.5%, with medical research assets expanding by a lofty 18% (though off of a smaller base). Looking forward, Ventas has partnered with developers in each of these segments to help ensure a solid pipeline of future growth projects. This portion of the business is doing just fine.
Source Fool.com
