Appeals Court Upholds Ruling That HCP in Breach of Standstill Agreement
LOUISVILLE, Ky., March 26 /PRNewswire-FirstCall/ -- Ventas, Inc.
(NYSE: VTR) ("Ventas" or the "Company") announced that the Ontario Court of
Appeal upheld the March 6, 2007 decision by the Ontario Superior Court of
Justice declaring that Sunrise Senior Living Real Estate Investment Trust
(TSX: SZR.UN) ("Sunrise REIT") is obligated to comply with its covenants in
its Purchase Agreement with Ventas to enforce Sunrise REIT's rights under its
confidentiality agreement with Health Care Property Investors, Inc. ("HCP").
The Court of Appeal also upheld Ventas's request for a declaration that the
standstill terms in the confidentiality agreement between Sunrise REIT and HCP
are in effect. The Court of Appeal further confirmed that HCP's several
offers, all of which have now been withdrawn, are breaches of its standstill
agreement with Sunrise REIT.
Ventas looks forward to closing its transaction with Sunrise REIT. As
previously announced, Ventas reached a definitive agreement to acquire Sunrise
REIT for Cdn $15.00 cash per unit, which is subject to the approval of the
unitholders of Sunrise REIT.
Ventas, Inc. is a leading healthcare real estate investment trust. Its
diverse portfolio of properties located in 43 states includes independent and
assisted living facilities, skilled nursing facilities, hospitals and medical
office buildings. More information about Ventas can be found on its website
at http://www.ventasreit.com .
This press release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements regarding
Ventas, Inc.'s ("Ventas" or the "Company") and its subsidiaries' expected
future financial position, results of operations, cash flows, funds from
operations, dividends and dividend plans, financing plans, business strategy,
budgets, projected costs, capital expenditures, competitive positions,
acquisitions, investment opportunities, merger integration, growth
opportunities, expected lease income, continued qualification as a real estate
investment trust ("REIT"), plans and objectives of management for future
operations and statements that include words such as "anticipate," "if,"
"believe," "plan," "estimate," "expect," "intend," "may," "could," "should,"
"will" and other similar expressions are forward-looking statements. Such
forward-looking statements are inherently uncertain, and security holders must
recognize that actual results may differ from the Company's expectations. The
Company does not undertake a duty to update such forward-looking statements,
which speak only as of the date on which they are made.
The Company's actual future results and trends may differ materially
depending on a variety of factors discussed in the Company's filings with the
Securities and Exchange Commission. Factors that may affect the Company's
plans or results include without limitation: (a) the ability and willingness
of the Company's operators, tenants, borrowers, managers and other third
parties, as applicable, to meet and/or perform the obligations under their
various contractual arrangements with the Company; (b) the ability and
willingness of Kindred Healthcare, Inc. (together with its subsidiaries,
"Kindred"), Brookdale Living Communities, Inc. (together with its
subsidiaries, "Brookdale") and Alterra Healthcare Corporation (together with
its subsidiaries, "Alterra") to meet and/or perform their obligations to
indemnify, defend and hold the Company harmless from and against various
claims, litigation and liabilities under the Company's respective contractual
arrangements with Kindred, Brookdale and Alterra; (c) the ability of the
Company's operators, tenants, borrowers and managers, as applicable, to
maintain the financial strength and liquidity necessary to satisfy their
respective obligations and liabilities to third parties, including without
limitation obligations under their existing credit facilities; (d) the
Company's success in implementing its business strategy and the Company's
ability to identify, underwrite, finance, consummate and integrate
diversifying acquisitions or investments, including those in different asset
types and outside the United States; (e) the nature and extent of future
competition; (f) the extent of future or pending healthcare reform and
regulation, including cost containment measures and changes in reimbursement
policies, procedures and rates; (g) increases in the Company's cost of
borrowing; (h) the ability of the Company's operators and managers, as
applicable, to deliver high quality services and to attract residents and
patients; (i) the results of litigation affecting the Company; (j) changes in
general economic conditions and/or economic conditions in the markets in which
the Company may, from time to time, compete; (k) the Company's ability to pay
down, refinance, restructure and/or extend its indebtedness as it becomes due;
(l) the movement of interest rates and the resulting impact on the value of
and the accounting for the Company's interest rate swap agreement; (m) the
Company's ability and willingness to maintain its qualification as a REIT due
to economic, market, legal, tax or other considerations; (n) final
determination of the Company's taxable net income for the year ended December
31, 2006 and for the year ending December 31, 2007; (o) the ability and
willingness of the Company's tenants to renew their leases with the Company
upon expiration of the leases, including without limitation Kindred's
willingness to renew any or all of its bundles of leased properties expiring
in 2008, and the Company's ability to relet its properties on the same or
better terms in the event such leases expire and are not renewed by the
existing tenants; (p) risks associated with the proposed acquisition of
Sunrise Senior Living REIT, including the Company's ability to successfully
complete the transaction on the contemplated terms and to timely and fully
realize the expected revenues and cost savings therefrom; (q) developments
relating to the proceedings in the Ontario Superior Court of Justice relating
to the proposed acquisition of Sunrise Senior Living REIT; (r) the movement of
U.S. and Canadian exchange rates; (s) year-over-year changes in the Consumer
Price Index and the effect of those changes on the rent escalators, including
the rent escalator for Master Lease 2 with Kindred, and the Company's
earnings; and (t) the impact on the liquidity, financial condition and results
of operations of the Company's operators, tenants, borrowers and managers, as
applicable, resulting from increased operating costs and uninsured liabilities
for professional liability claims, and the ability of the Company's operators,
tenants, borrowers and managers to accurately estimate the magnitude of such
liabilities. Many of these factors are beyond the control of the Company and
its management.
SOURCE Ventas, Inc.
-0- 03/26/2007
/CONTACT: Joele Frank or Matthew Sherman, both of Joele Frank, Wilkinson
Brimmer Katcher, +1-212-355-4449/
/Web site: http://www.ventasreit.com /
(VTR)
CO: Ventas, Inc.; Sunrise Senior Living Real Estate Investment Trust
ST: Kentucky, Ontario
IN: RLT FIN
SU: LAW
CT-SH
-- CGM021 --
5020 03/26/2007 08:58 EDT http://www.prnewswire.com