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TheStreet Open House

Ventas Reports 19 Percent Increase In Second Quarter 2012 Normalized FFO To $0.95 Per Diluted Share

SECOND QUARTER HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS

Portfolio, Performance and Balance Sheet Highlights

Investments and Dispositions

  • Ventas completed the acquisition of Cogdell and its 71 high-quality MOBs. With this acquisition, Ventas is now the largest owner of MOBs in the U.S. with over 21 million square feet of owned and managed properties.
  • Ventas acquired 16 high-quality, private pay seniors living communities managed by Sunrise for $362 million on May 1, 2012. May and June NOI after management fees totaled $4.4 million for these 16 communities.
  • In addition, during the second quarter of 2012, Ventas invested over $98 million, including $18.2 million in assumed debt, in seniors housing communities at an expected unlevered yield of approximately 7.25 percent.
  • Ventas sold thirteen assets for total consideration of $121.9 million, including a fee of $3 million.
  • The Company has commitments to acquire over $300 million of additional assets during the second half of 2012, subject to various conditions.

Liquidity, Ratings and Balance Sheet

  • The Company issued and sold $600.0 million aggregate principal amount of 4.00 percent senior notes due 2019 in April 2012 and redeemed $225.0 million principal amount of its 6¾ percent senior notes due 2017 in May 2012. Ventas recognized a loss on extinguishment of debt of approximately $10 million in the second quarter of 2012.
  • In June 2012, the Company sold 5,980,000 shares of common stock and received $342.5 million in aggregate proceeds from the sale.
  • The Company currently has approximately $1.6 billion of borrowing capacity available under its unsecured revolving credit facility and approximately $55.4 million in cash and cash equivalents.
  • At June 30, 2012, the Company had $367 million of borrowings outstanding under its unsecured revolving credit facility, approximately $500 million of borrowings outstanding under its unsecured term loan facility, and $52.8 million of cash and cash equivalents.
  • The Company’s debt to total capitalization at June 30, 2012 was approximately 28 percent.
  • The Company’s net debt to Adjusted Pro Forma EBITDA (as defined herein) at June 30, 2012 was 4.9x.

Portfolio & Additional Information

  • The 197 skilled nursing facilities (“SNFs”) and long-term acute care hospitals (“LTACs”) master leased by the Company to Kindred Healthcare, Inc. (NYSE: KND) (“Kindred”) produced EBITDARM (earnings before interest, taxes, depreciation, amortization, rent and management fees) to actual cash rent coverage of 2.0x for the trailing 12-month period ended March 31, 2012 (the latest date available).
  • With respect to the 89 licensed SNFs and LTACs whose current lease to Kindred expires April 30, 2013, Kindred has renewed or entered into a new lease for 35 assets at a total annual rent of $75 million, which represents approximately 60 percent of the total current annual rent of $126 million for the 89 facilities. Ventas is currently marketing for lease to qualified care providers the remaining 54 SNFs whose lease to Kindred expires April 30, 2013. Current annual rent for these 54 SNFs is $57 million, which Ventas believes approximates market rent.
  • Supplemental information regarding the Company can be found on the Company’s website under the “Investor Relations” section or at www.ventasreit.com/investor-relations/financial-information/supplemental-information.

VENTAS RAISES 2012 NORMALIZED FFO PER DILUTED SHARE GUIDANCE TO $3.70 TO $3.74

Ventas currently expects its 2012 normalized FFO per diluted share to range between $3.70 and $3.74, improving its previously announced 2012 guidance (which included the accretive acquisition of Cogdell) of between $3.63 and $3.69 per diluted share. For the full year, Ventas expects average fully diluted shares outstanding to be approximately 295 million. The Company now expects 2012 NOI for its total Sunrise- and Atria-managed seniors housing operating portfolio, including assets acquired in 2012, to be between $375 million and $381 million.

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