Ventas recently completed its previously announced $2.6 Billion acquisition of American Realty Capital Healthcare Trust (HCT). HCT’s portfolio spans 147 total properties including medical office buildings (78), seniors housing (46), post-acute/SNF (14), hospitals (7) and land (2). According to HCT’s 2Q14 supplemental, the portfolio produced $163,872,000 of NOI during the previous twelve months (TTM). Based on this figure and the $2.6 Billion price paid, the cap rate was 6.3% for the portfolio. HCT ascribed a gross asset value (mostly paid or book) of $2.1 Billion in their supplemental so the $2.6 Billion price implies a price appreciation of roughly 24%.
By using the NOI reported for each property type, we can work out cap rates for MOBs, seniors housing and others. HCT also reported the gross asset value for each sub- sector of their portfolio. The table below lays out the details, however, you can see that MOBs generated a cap rate of 6.2%.
American Realty Capital Healthcare Trust Portfolio Acquisition by Ventas REIT
| Property Type | Number of Properties | Gross Asset Value* | TTM NOI* | Price VTR Paid** | Acquisition Cap Rate*** |
| Medical Office | 78 | $1,038,994,000 | $79,946,000 | $1,286,465,414 | 6.2% |
| Seniors Housing | 46 | $741,194,000 | $52,081,000 | $917,734,314 | 5.7% |
| Post-Acute | 14 | $150,726,000 | $16,664,000 | $186,626,473 | 8.9% |
| Hospital | 7 | $165,916,000 | $15,233,000 | $205,434,483 | 7.4% |
| Land | 2 | $3,020,000 | -$52,000 | $3,739,315 | |
| Total | 147 | $2,099,850,000 | $163,872,000 | $2,600,000,000 | 6.3% |
Source: Company Filings
*Source: 2Q14 HCT Supplemental, TTM NOI is trailing twelve months through 2Q14.
** Determined by gross asset value as % of total.
*** TTM NOI divided by Price VTR Paid.
