CHICAGO - Ventas, Inc. (NYSE: VTR), a real estate investment trust (REIT), has priced an underwritten public offering of 10,600,000 shares of common stock, aiming for gross proceeds of around $677 million before underwriting discounts and estimated offering expenses. The offering, which includes a forward sale agreement, is anticipated to close on November 15, 2024, subject to standard closing conditions.
Wells Fargo (NYSE:WFC) Securities is serving as the underwriter for the offering and has been given the option to purchase up to an additional 1,590,000 shares of Ventas's common stock within a 30-day period. In the event the option is exercised, Ventas intends to enter into another forward sale agreement with the forward purchaser for the additional shares.
Ventas has entered into a forward sale agreement with Wells Fargo Bank, National Association, with the forward purchaser or its affiliate borrowing an aggregate of 10,600,000 shares of Ventas’s common stock for sale to the underwriter. Ventas is expected to settle the forward sale agreement by delivering shares of its common stock within approximately 12 months from the agreement date. The company may also opt for cash settlement or net share settlement under certain conditions.
The proceeds from the sale of shares will not be immediately received by Ventas. Instead, the company plans to use the net proceeds from the physical settlement of the forward sale agreement for general corporate purposes, which may include acquisitions, investments, repayment of existing debts, and related fees and expenses.
This offering follows Ventas's registration statement and preliminary prospectus supplement filed with the Securities and Exchange Commission (SEC). Potential investors are encouraged to read these documents available on the SEC's website for more detailed information about the company and the offering.
Ventas is known for its portfolio of approximately 1,350 properties in North America and the United Kingdom (TADAWUL:4280), focusing on environments that support the aging population. Its growth is primarily driven by its senior housing communities, alongside outpatient medical buildings, research centers, and healthcare facilities.
The information presented in this article is based on a press release statement from Ventas, Inc.
In other recent news, Ventas Inc (NYSE:VTR). has been making significant strides in its financial performance and strategic initiatives. The company recently announced the launch of a public offering of 10.6 million shares of common stock, part of a forward sale agreement with Wells Fargo Securities, LLC serving as the underwriter. This offering includes an option for the underwriter to purchase an additional 1.59 million shares within a 30-day period. Proceeds from this agreement will be used for general corporate purposes, including working capital, funding acquisitions, investments, and repaying existing debt.
In addition to this, Ventas reported robust financial results in its Q3 2024 earnings call. The company saw 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.
Furthermore, Ventas has made significant investments in senior housing across 43 communities this year, totaling $1.7 billion. The company aims to exceed previous occupancy peaks by capitalizing on favorable supply-demand dynamics in the senior housing market. These are the recent developments in the company's performance and strategy.
InvestingPro Insights
Ventas's recent public offering of 10,600,000 shares aligns with its position as a prominent player in the Health Care REITs industry, as highlighted by InvestingPro Tips. The company's market capitalization of $27.25 billion underscores its significant presence in the sector.
Despite the substantial share offering, Ventas has demonstrated strong financial performance. InvestingPro data reveals a robust revenue growth of 10.05% over the last twelve months, with quarterly revenue growth of 7.95% in Q3 2024. This growth trajectory supports the company's expansion strategy and potential acquisitions mentioned in the article.
Notably, Ventas has maintained dividend payments for 26 consecutive years, according to InvestingPro Tips. This consistency in dividend distribution, coupled with a current dividend yield of 2.79%, may appeal to income-focused investors considering the new share offering.
The company's stock has shown impressive momentum, with a 36.53% price total return over the past six months and a 49.97% return over the past year. Trading near its 52-week high at 95.33% of that level, Ventas appears to be capitalizing on its strong market position with this offering.
While InvestingPro Tips indicate that analysts do not anticipate profitability this year, the company's liquid assets exceeding short-term obligations suggest a stable financial foundation. This liquidity position could provide flexibility in utilizing the proceeds from the share offering for various corporate purposes, as outlined in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The platform provides a total of 14 tips for Ventas, offering a deeper understanding of the company's financial health and market position.
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