Vencor To Spin Off $2.5 Billion Trust Fund

Long-term health care provider Vencor Inc. is spinning off a $2.5 billion real estate investment trust, which will own Vencor’s properties.

VenTrust, the new company, will eventually acquire properties to lease to other health care providers. Initially, VenTrust will own all the land and buildings that house Vencor’s 60 hospitals and 309 nursing homes.

The split is designed to boost the flagging stock price of Vencor, which has annual revenues of $3 billion. Bruce Lunsford, Vencor’s chief executive, said both Vencor and VenTrust should have strong growth potential.

Vencor shares rose 9 percent, or $2.25, to close at $26.75 on the New York Stock Exchange. Vencor stock was as high as $45 in 1997.