Morningstar Rating

Stock Research and Analysis

by Todd Lukasik, CFA

Bulls Say

Ventas' strategy allows it to consider a range of opportunities across property type, leasing model, and means of external growth, each of which may be more or less attractive at any point in the commercial real estate cycle.
Ventas estimates that less than 15% of the $1 trillion or greater health-care real estate market is in REITs' hands, providing robust external growth potential.
Ventas enjoys favorable industry tailwinds, including a growing and aging population and regulatory changes that are set to expand the pool of potential participants in the health-care system. Read more 

Bears Say

Health-care inflation has run at a rate roughly 2.5 times general levels of inflation in the economy, which is unsustainable. As health-care inflation is reined in, rent growth at Ventas' facilities will slow.
If market rents fail to increase at the inflation-plus escalation rates generally embedded in Ventas' triple-net leases, tenants will push for lower rents upon lease expiration.
The robust growth initially experienced at Ventas' operating assets has slowed. There is risk that cash flows at these assets could fall in a tough operating environment. Read more 


We assign Ventas an Exemplary stewardship rating. Ventas management has often pushed the envelope within its sector and it has created massive value for shareholders over time, supported by a dividend growth rate that dwarfs its major peers' rate of   Read more 


Recently, Ventas owned interests in roughly 1,600 health-care properties, including senior housing communities (53% of net operating income, or NOI), skilled nursing facilities   Read more 

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