Welltower Integra JV risk not a ‘thesis changer,’ says Morgan Stanley

Morgan Stanley analyst Ronald Kamdem noted that Welltower and its joint venture with Integra Health was the subject of a third party short-seller report on Wednesday, after which the stock finished the day down 4.7%. After speaking with Welltower management, Kamdem noted that Integra will serve as the master tenant in its lease with Welltower and neither Integra nor its parent entity intends to operate any of the 147 skilled nursing facilities. The analyst, who also noted that Integra’s 15% interest will be subordinate to that of Welltower’s, said he sees the JV as a "headline risk but not a thesis changer." He maintains an Overweight rating and $74 price target on Welltower shares.