Debbie Cafaro, CEO of Ventas, acknowledges that financial conditions are tightening, affected by commercial property lending in the banking sector. She confirms the concentration of these loans in smaller banks, as Powell points out, with the majority of this debt held by banks with fewer than 20 employees.
Ventas, which is the second largest owner of senior housing in the US, sees these tighter conditions as an opportunity for external growth. Cafaro explains that this situation allows Ventas to acquire high-quality assets at attractive prices, a strategy that benefits shareholders.
She points out that Ventas predicted the tightening of the market as early as last year. Today, in 2024, the company is capturing prime assets that are generating initial yields of 7% and remarkably high unleveraged rates of return on investment, against a backdrop of strong demographic demand and limited supply.
Ventas, with assets of $35 billion, has strengthened its financial position by raising approximately $5 billion at a rate of 5% or less over the past year. This financial strength enables the company to take full advantage of its role as a buyer in the senior housing market.
No comments:
Post a Comment