The Benefits of Aging
In his second "Executive Decision" segment, Cramer spoke with Debra Cafaro, chairman and CEO of Ventas (VTR - Get Report), a real estate investment trust that caters to private-pay housing for seniors. Shares of Ventas currently pay a 3.9% yield.
Cafaro said Ventas is definitely benefiting from America's aging demographics. She noted that the over-85 segment is now one of that fastest-growing segments of their market. Unlike some other senior-oriented REITs, Ventas derives 80% of its revenue from private paying individuals and gets 25% from high-end providers like Sunrise Senior Living (SRZ).
Even with those positive trends, however, Ventas is only seeing occupancy at 90%. Cafaro said ultimately expects to see occupancy between 92% to 96%.Dividends remain an important factor in Ventas' strategy to return capital to shareholders, said Cafaro, which is why the company has raised its dividend by 10% for the past 10 years. Ventas has also purchased an additional $1.7 billion in assets so far in 2012. Cramer said that few companies offer yield, growth and rising revenue but Ventas is one of those companies.
No Huddle OffenseIn his "No Huddle Offense" segment, sounded off on the futures markets, which were decidedly lower after it was announced that the markets would be closed during the hurricane. Cramer said there was a time when a market closure would see the futures trade up, as that meant there would be mutual funds flush with cash chomping at the bit to buy more stocks when the markets reopened. But not so in today's markets, where the election, fiscal cliff and global worries continue to weigh on sentiments, despite the fact that a hurricane has historically been a great catalyst to stimulate GDP growth. That's why Cramer said he'd use the coming market weakness to buy stocks with great earnings and growth, names like Panera Bread (PNRA), Verizon (VZ), Honeywell (HON) and Yahoo (YHOO). To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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