Recent Sell – Care Capital Properties

This will be a quick post about a sale of one of our holdings last week. Normally we do not trade in and out of our holdings, but occasionally a security sale is warranted.

Last week, we sold our position in Care Capital Properties Inc (CCP). Most people may not be aware of this company. The company was a spin-off from Ventas Inc (VTR) last year. Ventas decided to spin-off the skilled nursing facilities (SNF) business segment (except for a few specific properties, so Ventas still runs a few SNFs). We already own another company in the SNF space in the healthcare REIT sector: Omega Healthcare Investors Inc (OHI) and did not want another company overlapping the investment space. In order to simplify our portfolio, we sold our tiny position in CCP.

Full Disclosure: Long OHI, VTR. Our full list of holdings is available here.

Ventas Inc Dividend Increase

Ventas Inc

Ventas Inc (VTR) recently spun-off its skilled nursing facilities into a separate company – Care Capital Properties (CCP). For every 4 shares of VTR, 1 share of CCP was issued. As part of the deal, it was announced that the combined dividends will be 10% higher than VTR’s pre-spinoff dividends. Ventas and Care Capital Properties have kept their promise and declared quarterly dividends of $0.73 for Ventas and $0.57 for Care Capital.

The annualized dividend for Ventas pre-split was $3.16. Post-spin off, the annual dividends are $2.92 for VTR and $2.28 for CCP.

Full Disclosure: Long CCP, VTR. My full list of holdings is available here.