Ventas Selects Discovery Senior Living to Operate its 15 Communities

Ventas, Inc. VTR recently announced the selection of Discovery Senior Living to oversee its operations of 15 senior living communities located in multiple U.S. states.

The transition indicates an extension of a multi-year, performance-oriented partnership between the two companies and strengthens a shared commitment to operational excellence and long-term value creation.

The 15 communities will be incorporated into three of Discovery’s Management Companies ("ManCos"), which include Integral Senior Living, Discovery Management Group and Terrabella Senior Living. Each ManCo is structured to enhance performance by utilizing in-depth market insights and specialized operating practices and programs for each community, all while being bolstered by Discovery's shared services infrastructure, centralized systems, and teams dedicated to clinical, marketing, and business optimization.

Since 2021, the partnership between Ventas and Discovery has developed consistently, based on strong operational performance, collaboration and alignment. The 15 communities, which were formerly managed under a triple-net lease structure, have significant potential for higher occupancy.

Discovery is set to assume operations for specific communities this September, with all communities expected to transition by the end of 2025. As the transition unfolds, Ventas and Discovery continue to be closely aligned in terms of operational excellence, resident satisfaction and long-term value creation.

Conclusion

Discovery creates exceptional living environments for seniors. By selecting Discovery Senior Living to operate 15 communities, Ventas expresses its confidence in Discovery's ability to achieve success.

Ventas’ diverse portfolio of healthcare real estate assets in the key markets of the United States and the United Kingdom is well-poised to capitalize on the favorable industry fundamentals. With long-term leases and agreements, its high-quality portfolio assures steady growth in cash flows.

In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 5.3% against the industry's decline of 0.7%.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts HST and W.P. Carey WPC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for HST’s 2025 FFO per share has moved a cent northward to $1.95 over the past week.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has moved 2 cents downward to $4.87 over the past week.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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