Why Ventas Stock Rallied 21% in April
Shares of Ventas (NYSE: VTR) jumped an impressive 21% in April, according to data from S&P Global Market Intelligence. That comes on the heels of a very difficult first quarter, in which the stock of the healthcare-focused real estate investment trust (REIT) dropped 54%. Adding April's gain to that early downdraft leaves the stock off by 44% through the first four months of 2020. Clearly there are bigger things going on.
Ventas has a diversified portfolio of healthcare assets, including senior housing, medical offices, and medical research properties. The latter two businesses should hold up reasonably well, even with the COVID-19 issues the world faces today.
But senior housing is a vastly different story. This business makes up around 55% of the REIT's net operating income. About 60% of that, meanwhile, falls into what is known as senior housing operating portfolio (SHOP) assets. These are properties that Ventas owns and operates (it actually hires others to run the facilities), allowing the performance, for better or worse, to flow through to the REIT.
Source Fool.com
