Monday’s news that Ventas plans to acquire New Senior Investment Group in an all-stock transaction valued at approximately $2.3 billion “seems to be an indication that public companies are taking advantage of their cost of equity for the next year and the next several years,” according to Amanda Sweitzer, senior research analyst for healthcare and residential real estate at Baird.

Management teams are creating intermediate returns, she added. 

The merger will see Ventas assume control of New Senior’s portfolio of 102 independent living communities and one continuing care retirement community — a total of 12,404 units across 36 states.

Sweitzer noted that the Ventas–New Senior transaction is similar in nature to Welltower’s planned blockbuster acquisition of 86 communities in Holiday Retirement’s portfolio for $1.58 billion, announced last week.The transaction announced Monday “increases Ventas’ exposure to the powerful recovery in senior housing,” according to Seeking Alpha.