Ventas Partners with Discovery Senior Living to Operate 15 Communities

Ventas has selected Discovery Senior Living to operate 15 senior living communities in the US. The partnership, which began in 2021, aims to improve operational performance and long-term value creation. Discovery will assume operations for specific communities in September, with all communities expected to transition by the end of 2025. Ventas' diverse portfolio of healthcare real estate assets is well-positioned to capitalize on favorable industry fundamentals.

Ventas, Inc. (VTR) has chosen Discovery Senior Living to manage 15 senior living communities across multiple U.S. states. This decision marks an extension of a multi-year partnership between the two companies, aiming to enhance operational performance and long-term value creation. The 15 communities, previously managed under a triple-net lease structure, are expected to see significant potential for higher occupancy rates.

Discovery Senior Living will commence operations for specific communities this September, with a full transition anticipated by the end of 2025. The communities will be integrated into three of Discovery's Management Companies (ManCos): Integral Senior Living, Discovery Management Group, and Terrabella Senior Living. Each ManCo will leverage market insights and specialized operating practices to enhance performance, supported by Discovery's shared services infrastructure and centralized systems.

Since 2021, the partnership between Ventas and Discovery has shown consistent growth based on strong operational performance and collaboration. The transition is expected to improve resident satisfaction and long-term value creation. Ventas' diverse portfolio of healthcare real estate assets, including those in key markets in the United States and the United Kingdom, is well-positioned to capitalize on favorable industry fundamentals. The company's high-quality portfolio ensures steady growth in cash flows, despite recent industry declines.

In the past three months, Ventas' shares have gained 5.3% against an industry decline of 0.7%, reflecting investor confidence in the company's strategic moves. The Zacks Rank #3 (Hold) company is part of a sector that includes other notable players like Host Hotels & Resorts (HST) and W.P. Carey (WPC), each with a Zacks Rank #2 (Buy) [1].

References:
[1] https://finance.yahoo.com/news/ventas-selects-discovery-senior-living-171300801.html