Ventas to Record $129.0 Million Gain
LOUISVILLE, Ky. July 2 /PRNewswire-FirstCall/ -- Ventas, Inc. (NYSE: VTR)
("Ventas" or the "Company") said today that it has sold 22 underperforming
assets to its tenant, Kindred Healthcare, Inc. (NYSE: KND) ("Kindred") for an
aggregate purchase price of $171.5 million. Kindred leased those properties
from Ventas prior to the transactions.
"We are delighted to cooperate with Kindred on these transactions," Ventas
Chairman, President and CEO Debra A. Cafaro said. "These asset sales improve
our portfolio and strengthen our financial profile. Ventas's excellent
balance sheet and diversified seniors housing and healthcare portfolio should
position us well to generate additional value for our shareholders."
Ventas expects to record a gain on the sales of the assets of
approximately $129.0 million in the second quarter. The gain will be excluded
from Funds from Operations (FFO) in accordance with the NAREIT definition of
FFO. The Company has also received from Kindred a $3.5 million lease
termination fee on the sold properties. Current annual cash rent for the sold
properties is $10.6 million and the capitalization rate on the transactions is
approximately 6 percent.
The assets sold to Kindred are located in 15 states and include 21 skilled
nursing facilities with approximately 2,600 beds and one long-term acute care
hospital, located in urban Detroit, that is licensed for 220 beds.
Ventas, Inc. is a leading healthcare real estate investment trust. Its
diverse portfolio of properties located in 43 states and two Canadian
provinces includes seniors housing communities, skilled nursing facilities,
hospitals and medical office and other properties. 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"), Alterra Healthcare Corporation (together with its
subsidiaries, "Alterra") and Sunrise Senior Living, Inc. (together with its
subsidiaries, "Sunrise") 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, Alterra and Sunrise; (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, to attract and retain healthcare
personnel 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
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 acquisition of Sunrise Senior Living REIT
("Sunrise REIT"), including the Company's ability to timely and fully realize
the expected revenues and cost savings therefrom; (q) factors causing
volatility of revenues generated by the properties acquired in connection with
the acquisition of Sunrise REIT, including without limitation national and
regional economic conditions, costs of materials, energy, labor and services,
employee benefit costs and professional and general liability claims; (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- 07/02/2007
/CONTACT: Debra A. Cafaro, Chairman, President and CEO, or Richard A.
Schweinhart, Executive Vice President and CFO, both of Ventas, Inc.
+1-502-357-9000/
/Web site: http://www.ventasreit.com /
(VTR)
CO: Ventas, Inc.; Kindred Healthcare, Inc.
ST: Kentucky
IN: HEA RLT
SU:
SW-JO
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3972 07/02/2007 07:04 EDT http://www.prnewswire.com