Ventas Inc. (NYSE: VTR) announced firm plans on Thursday for completing the spin-off of a new pure-play skilled nursing real estate investment trust, Care Capital Properties (CCP), further confirming what its leading executives said on a recent call with analysts.
The Chicago-based real estate investment trust’s board of directors has approved the spin-off, and Ventas has declared a record date of August 10, 2015 for the related stock distribution. The dividend distribution will involve one share of CCP common stock for every four shares of Ventas common stock held at the close of business on that date.
Ventas shareholders are not required to take any action to receive the CCP common stock shares, and will not be required to surrender or exchange their Ventas shares, the company stated in a news release. The number of Ventas shares owned by each shareholder will remain the same as a consequence of the distribution.
The distribution of shares is expected to be completed after the close of trading on August 17, after which CCP will be listed on the New York Stock Exchange under the symbol “CCP.”
“This is an exciting time for CCP as we approach our launch as a new public company poised for growth,” said Raymond J. Lewis, who will serve as CEO of CCP. “As an independent company, CCP will be well positioned to use our strong balance sheet, equity currency and access to capital markets to work with our existing operators as well as new regional and local operators to capitalize on the many attractive investment opportunities in the fragmented skilled nursing market.”
Ventas—one of the largest owners of senior housing properties in the country—announced the CCP spin-off in April.
While the new REIT pursues smaller skilled nursing deals, Ventas will continue to be active in deals involving larger senior living portfolios, company leaders have said.
CCP already has a board of directors in place and is actively bidding on deals, positioning itself to be an active player as soon as the spin-off is completed, Lewis said last week in a conference call on Ventas’ earnings in the second quarter of 2015.
“We are pleased to announce this significant step toward completing the spin-off of CCP, a pure play skilled nursing REIT,” said Ventas Chairman and CEO Debra Cafaro of the board approval, in a prepared statement. “This transaction brings significant benefits to both Ventas and CCP.”
Written by Tim Mullaney