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***|
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.