Skilled Nursing REIT Care Capital Hitting Targets, CEO Says

Raymond Lewis, CEO of Care Capital Properties (NYSE: CCP), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.

Care Capital invests with local and regional operators of skilled nursing facilities across the United States. The company spun off from Ventas, Inc. (NYSE: VTR) in 2015.

Fifteen months on from the spinoff, Lewis said the company is “exactly where we hoped we would be at this point.”

Care Capital has invested about $300 million and fixed $1.4 billion in floating rate debt with long-term, staggered maturities, according to Lewis. The company has also built out its standalone infrastructure and made “tremendous progress” in managing its portfolio, Lewis added.

Lewis described skilled nursing as a highly fragmented market that is “ripe for consolidation.”

“The market is very active. We’re finding tremendous amounts of opportunity to support our chosen operators and their growth,” he said.

Meanwhile, Lewis said the recent general election has not altered the company’s prospects.

“The policy tailwinds that are great for our business long term remain intact post-election,” he said. The shift from volume-based reimbursement to value-based reimbursement was a bipartisan initiative, Lewis pointed out.

“That will continue to drive patients into the lowest-cost settings, and there is no lower-cost facility-based setting for care than skilled nursing,” Lewis said.