Many of these factors are beyond the control of the company and its management. The information being provided today is as of this date only and Ventas expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any changes and expectations.Please note that quantitative reconciliations between each non-GAAP financial measure contained in this presentation and its most directly comparable GAAP measure as well as the company's supplemental disclosure schedule are available in the investor relations section of our website at www.ventasreit.com. I will now turn the call over to Debra A. Cafaro, Chairman, President and CEO of the company. Debra Cafaro Thanks, David. Good morning to all of our shareholders and participants and welcome to the Ventas 2010 second quarter earnings call. Today the Ventas management team is with me in our Chicago office and we are very pleased to be joined by Todd Lillibridge, our newest colleague. We have a lot of excellent news to cover today, including positive earnings, increased normalized FFO per share guidance, the closing of the Lillibridge acquisition, good results from our operating portfolio of seniors housing and a constructive and active investment outlook. Ventas is delivering on its promise of preserving and creating value for its stakeholders through consistent reliable cash flow growth from a diversified portfolio of productive, healthcare and senior housing assets. We continue to enhance our growth through strategic and accretive acquisitions, while also maintaining a strong and flexible balance sheet. After an overview of results and a discussion of our acquisition of Lillibridge, Ray Lewis will discuss our asset performance and investment strategy and Rick Schweinhart will report on our financial results in detail. After our prepared remarks, we'll be happy to answer your questions. Let's begin with the exciting acquisition of Lillibridge Healthcare Services which closed earlier this month. In one fell swoop, we acquired an interest in 96 medical office buildings. We are now the national leader in the large and growing medical office building sector. Through our wholly owned subsidiary, Lillibridge Healthcare Services, we own and/or manage a 153 medical office and outpatient assets containing $8.6 million square feet located in 20 states.
The combination of Ventas' strong balance sheet and access to capital with Lillibridge's experienced, relationship and integrated capabilities should provide attractive real estate solutions for hospital clients and drive value in our firm.The acquired MOBs have a very desirable profile. They are 92% on campus; all affiliated with single A and double A rated hospitals and health systems. 86% occupied and located in 17 states. The 92 stabilized MOBs in which we acquired an ownership interest are over 87% occupied and the 34 wholly owned stabilized MOBs we purchased are 94% occupied. There is a compelling thesis for investing in the large and growing MOB arena that I'd like to recap today. First, it s $175 billion highly fragmented market. Hospitals remain the largest owners of the asset class which is expected to grow 30% in the next 10 years. We should see increased utilization as the 79 million baby (inaudible) become Medicare eligible starting in 2011, and grow at three times the rate of the overall population. Healthcare reform should also increase demand as roughly 32 million uninsured individuals gain access to the healthcare system. Importantly, healthcare reform will also drive patient care to the lowest cost most clinically appropriate setting which in many cases is an outpatient site. Hospital capital needs should incent hospital owners of MOBs to sell their real estate to more efficient owners like Ventas in order to fund operations and higher yielding capital projects. And finally, well located on campus MOBs tend to deliver long term stable cash flow. Moving from the strategic to the specific let me describe the financial terms of our Lillibridge transaction. Our acquisition price for Lillibridge was $381 million in total. The purchase price represents approximately 15 times expected second half 2010 normalized EBITDA of (inaudible) as an integrated real estate owner and services business. This is in line with and at the low end of the EBITDA multiples of the publicly traded integrated MOB company. Read the rest of this transcript for free on seekingalpha.com