Cafaro said Ventas is building a "framework for growth," noting that the company has a low cost of capital and a great team in place to both grow organically and through acquisition. Ventas is gaining scale, noted Cafaro, and is improving its balance sheet in the process.
When asked about the company's business and how it relates to debates over Medicare funding and health-care costs, Cafaro explained that Ventas is simply a landlord and the company's senior living centers, for example, are managed by Sunrise Senior Living (SRZ) and other experienced operators. "We collect rents regardless of what happens with Medicare funding," Cafaro added, which is why the company is able to deliver consistent earnings.
Also adding to the company's strength is that Ventas serves the middle of the market, which makes its facilities accessible to middle-income seniors. Cafaro said 80% of her company's revenue stems from private paying tenants and not from government subsidies.
Cramer said he's been remiss in not recommending Ventas before as the company has been terrific for its shareholders. He recommended buying on any weakness.