Ventas (VTR) to acquire New Senior (SNR) in $2.3 billion stock merger.

Ventas (VTR) announced today that it has agreed to acquire New Senior Investment Group (SNR) in an all-stock transaction valued at $2.3 billion.  According to Debra A. Cafaro, Chairman and CEO, "this strategic and accretive acquisition... expands Ventas's position in senior housing at an important inflection the senior housing industry rebounds."

The New Senior portfolio includes 102 independent living communities with 12,404 units located in 36 states.  Ventas said that the portfolio is being valued at a 6% capitalization rate on expected 2022 net operating income, and is expected to be $0.09 to $0.11 accretive to VTR's annual funds from operations per share.  The merger is expected to close in the second half of 2021.

Ventas is a large-cap health care REIT with interests in 1,192 properties located in the United States, Canada, and the United Kingdom. As of March 31, 2021, VTR had a total market capitalization of approximately $32 billion.