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Health Care REIT, Inc. Completes Acquisition Of Sunrise Senior Living And Sale Of Management Company

$4.3 Billion Sunrise Real Estate Acquisition:

Since the announcement of the proposed acquisition on August 22, 2012, the company accelerated the buy-out of joint venture partner interests in 100 of the 105 joint venture properties. Health Care REIT acquired five of the joint venture properties located in the United Kingdom in the third quarter of 2012 for $243.5 million. During the fourth quarter of 2012, Sunrise used $580.8 million of loan proceeds from Health Care REIT and its own funds to acquire joint venture partners’ interest in 37 of the 105 joint venture properties and to repay certain secured indebtedness. The loans were converted to owned real estate by the company as of today’s closing. Also during the fourth quarter of 2012, Health Care REIT acquired majority interest in and repaid debt related to five properties located in the United Kingdom for $238.7 million and reached agreement with additional joint venture partners to acquire their interest in 53 of the 105 joint venture properties. The company expects to complete the buyout on these 53 properties on or before July 2013.

Sunrise Property Count Reconciliation:

            Partner                  
Announced Buy-Outs Total Remaining

8/22/12

To Date

As of Today

2013E

Total

Wholly Owned 20 47 67 53 120
Joint Venture

105

(47)

58

(53)

5

Total 125 125 125
 

The aggregate $4.3 billion acquisition amount includes the anticipated assumption of $494.0 million of debt with a blended rate of 5.1%. The assumed debt is net of approximately $2.1 billion of secured debt with a blended rate of 6.0% that was repaid prior to closing or is expected to be repaid through mid-2013. The approximate $3.1 billion in cash required to date to close the loans, the acquisitions and repay secured debt was funded through the company’s 2012 capital raising activity and availability under the company’s new unsecured credit facility.

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