Ventas is one of the largest and most diversified healthcare real estate investment trusts in the United States and has enjoyed dividend growth for nine straight years.
The COVID-19 pandemic, however, threatens to snap the Chicago-based REIT’s streak, according to an analysis by The Motley Fool. The senior housing sector, which has been hard hit by the coronavirus, accounts for almost 70% of Ventas’ net operating income. Investors should anticipate future dividend cuts as a result, the author noted.
Last month, Ventas drew $2.75 billion from its revolving line of credit and withdrew its 2020 guidance. Despite these moves to increase liquidity, “if the COVID-19 pandemic has a lingering impact on the senior housing sector, that won’t be enough to stave off a dividend cut,” the analysis said.
