Cafaro: The deals continue Ventas' focus on private-pay.

CHICAGO—American Realty Healthcare Trust‘s 143-property portfolio is trading to Ventas in a $2.6-billion stock and cash deal, the two companies announced Monday morning. Separately, Ventas is also buying a Canadian portfolio of independent living seniors housing communities from Holiday Retirement for $900 million.

Debra A. Cafaro, CEO of Chicago-based Ventas, says the two portfolio acquisitions are “consistent with our stated strategy to be the leading owner of healthcare and senior living properties globally, and position Ventas to continue to deliver growth and consistent superior returns to our shareholders. With the addition of ARC Healthcare and the Canadian seniors housing communities, we are continuing our focus on private-pay assets, expanding our industry-leading MOB footprint and international presence, and increasing our diversification while maintaining a strong credit profile and balance sheet.”

At ARC Healthcare REIT, executive chairman Nicholas Schorsch says the sale to Ventas provides his company’s shareholders “a compelling premium to the company’s listing, tender offer and five day volume weighted average price” prior to Monday’s announcement. Additionally, Schorsch says, “It provides them the opportunity to participate in the future growth of what will become the largest, and in my view, best managed healthcare REIT and sixth largest overall REIT in the country.”

The Holiday portfolio of 29 communities currently is 90% occupied, with margins of approximately 50% percent in markets with above average income and senior population growth rates. When the deal closes, as it’s expected to do in the third quarter, operations for the Holiday portfolio will be transitioned to Atria, bringing that company’s total portfolio of Ventas management properties to 173. The ARC Healthcare REIT deal is expected to close in Q4.