CHICAGO - Ventas, Inc. (NYSE: VTR), an S&P 500 real estate investment trust, announced the launch of a public offering of 10.6 million shares of common stock today. The offering is part of a forward sale agreement, with Wells Fargo (NYSE:WFC) Securities, LLC serving as the underwriter.
The company also plans to provide the underwriter a 30-day option to purchase up to an additional 1.59 million shares. If the option is exercised, Ventas will enter into another forward sale agreement for the additional shares.
Ventas has stated that it will not receive immediate proceeds from the sale of shares by the forward seller to the underwriter. The proceeds from the eventual physical settlement of the forward sale agreement, expected within 12 months, will be used for general corporate purposes. These may include working capital, funding acquisitions and investments, or repaying existing debt.
The forward sale agreement entails Ventas agreeing to sell its shares to the forward purchaser at a price equal to the underwriter's purchase price, subject to adjustments. The forward purchaser or its affiliates will borrow and deliver the shares to the underwriter for sale. Ventas may also opt for cash settlement or net share settlement for some or all of its obligations under the agreement.
The offering's shares may be sold on the New York Stock Exchange, over-the-counter markets, negotiated transactions, or at market prices, as determined by the underwriter.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed.
Ventas is a leading real estate investment trust that focuses on properties serving the aging population, including senior housing communities, outpatient medical buildings, research centers, and healthcare facilities. The company operates approximately 1,350 properties across North America and the United Kingdom (TADAWUL:4280).
The press release includes forward-looking statements, and investors are cautioned not to place undue reliance on them as they involve risks and uncertainties that could cause actual results to differ materially. Investors are encouraged to read the preliminary prospectus supplement and other documents filed with the SEC for more complete information about the company and the offering.
In other recent news, Ventas Inc (NYSE:VTR). reported robust financial results in its Q3 2024 earnings call, with a 7% year-over-year increase in normalized funds from operations (FFO) per share, reaching $0.80. This marks the company's ninth consecutive quarter of double-digit net operating income (NOI) growth, notably a 15% cash NOI growth in its senior housing operating portfolio (SHOP). Ventas has also raised its full-year 2024 guidance for normalized FFO per share and same-store cash NOI, reflecting a favorable macro environment and increasing demand from the aging population. The company has invested $1.7 billion in senior housing across 43 communities this year. Ventas aims to exceed previous occupancy peaks by capitalizing on favorable supply-demand dynamics in the senior housing market and ramping up investments in senior housing. The company anticipates maintaining a strong balance sheet with a net debt to EBITDA ratio of 6.3x and liquidity of $3.1 billion. These are the recent developments in the company's performance and strategy.
InvestingPro Insights
Ventas's recent stock offering announcement comes at a time when the company is experiencing significant market momentum. According to InvestingPro data, Ventas has seen a remarkable 56.25% price total return over the past year, with a 37.6% increase in the last six months alone. This strong performance has pushed the stock to trade near its 52-week high, currently at 95.34% of that peak.
The company's decision to raise capital through a stock offering aligns with its position as a prominent player in the Health Care REITs industry. While Ventas has maintained dividend payments for 26 consecutive years, an InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year. This could explain the need for additional funding to support ongoing operations and potential growth initiatives.
Despite the projected short-term profitability challenges, Ventas's revenue growth remains solid, with a 10.05% increase over the last twelve months as of Q3 2023. The company's market capitalization stands at $27.28 billion, reflecting its significant presence in the real estate investment trust sector.
Investors considering Ventas should note that InvestingPro offers 8 additional tips for this stock, providing a more comprehensive analysis of its financial health and market position. These insights can be particularly valuable given the company's current capital-raising activities and its strategic focus on properties serving the aging population.
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