The buy thesis
Ventas Inc. (NYSE:VTR) is a healthcare REIT of supreme quality and it is usually priced as such. However, the recent sell-off provides an opportunity to obtain said quality at a bargain. Fundamentally, Ventas is still thriving with growing earnings, dividends and guidance, yet it has dropped 30% since May 21st and underperformed the S&P by 38% over the past year.
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We believe the current market pricing is consequent to temporary conditions and that substantial capital appreciation will occur upon the cessation of said conditions.
Origin of opportunity
There seem to be 3 temporary conditions driving VTR's underperformance.
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