Chicago-based real estate investment trust Ventas will make adjustments to its corporate cost structure in response to the COVID-19 pandemic’s impact on the firm, according to a Securities & Exchange Commission filing on Wednesday.
Ventas plans to cut approximately 25% of its corporate staff — nearly 90 positions — across the organization in mid-June. The reductions will “ensure a leaner, more agile organization and to adapt to the current business conditions caused by the pandemic,” Louise Adhikari, the firm’s vice president of marketing and corporate communications, told McKnight’s Senior Living in an email. CEO Debra Cafaro and other executive officers also are voluntarily reducing their base salaries by 20% and 10%, respectively, for the second half of the year.
Adhikari added that many of the eliminated roles are in areas that can be reduced because of process redesign work the firm has done and advanced technologies it has implemented.
“We’re confident we have the people and skills in place that we need to deliver on the historic strengths of Ventas, including capital raising, investment and asset management,” she said.
These steps are part of a broad-based set of initiatives, including previously announced liquidity and capital conservation to provide strength and stability for the firm and its stakeholders in light of the pandemic and uncertain health, business and economic conditions, Ventas said. Unlike some senior housing REITs, however, Ventas has not cut its dividend.
The firm expects that its third quarter annualized general and administrative expenses will be approximately $25 to $30 million lower than its reported 2019 general and administrative expenses.