Peloton Wealth Strategist holding Ventas, Inc. (VTR), completed the spin-off of its skilled nursing facilities as an independent, publicly-traded REIT on August 17, 2015. The new company, named Care Capital Properties (NYSE symbol “CCP”), represents a “pure play” in the rapidly growing market for skilled nursing facilities. After the spin-off, CCP will own 355 skilled nursing facilities across the United States, which will be operated by a group of 41 private regional and local health care providers.
Clients will receive 1 share of CCP for every 4 shares of Ventas they owned at the close of business on August 10. As a result of the share distribution, the market value of VTR shares initially declined approximately 13%, reflecting the receipt of new CCP shares. However, the number of VTR shares held will not change as a result of the transaction.
Ventas expects that the spin-off will be a tax-free event for shareholders, though the sale of any associated fractional shares may result in a capital gain or loss. The cost-basis of newly issued CCP shares will reflect the proportional market value of the CCP shares vs. the VTR shares at the point the shares are distributed. Please refer your tax advisor to page 144 of the CCP Information Statement for further information.
Peloton Wealth Strategists owns the common stock of Ventas, Inc. and Care Capital Properties. The opinions expressed above should be construed as neither investment advice nor a solicitation to buy or sell securities. Peloton Wealth Strategists assumes no liability for losses pursuant to investment actions entered into as a result of opinions expressed herein. Changes in economic and capital market conditions and the unique objectives of each investor should be considered before investing in securities.