CHICAGO--(BUSINESS WIRE)--Feb. 20, 2009--
Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that it
has closed on the sale of Samaritan acute care hospital to affiliates of
the University of Kentucky (“UK”) for $35.0 million in an all cash
transaction. The property is located in Lexington, Kentucky and is
currently operated by UK.
The purchase price represents a 6.8 percent capitalization rate on cash
rent under a lease between UK and Ventas. The sale includes a 50,000
square foot medical office building that was also subject to the lease.
The lease will terminate in connection with the sale. Ventas expects to
record a gain of approximately $18 million on the sale.
“Ventas has excellent liquidity and balance sheet strength,” Ventas
Chairman, President and Chief Executive Officer Debra A. Cafaro said.
“This sale further enhances our strong financial position.”
“Ventas was proud to partner with the University of Kentucky to help it
achieve its objective of serving the Lexington community with
excellence,” added Timothy A. Doman, Senior Vice President of Ventas.
Net cash proceeds to Ventas of $35 million will be used to pay down debt
or for general corporate purposes.
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, medical office buildings and other properties.
More information about Ventas can be found on its website at 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. These
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
these 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, to attract and retain qualified
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 Company’s ability and willingness to maintain its
qualification as a REIT due to economic, market, legal, tax or other
considerations; (m) final determination of the Company’s taxable net
income for the year ended December 31, 2008 and for the year ending
December 31, 2009; (n) 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; (o) risks associated with the Company’s seniors
housing communities managed by Sunrise Senior Living, Inc. (together
with its subsidiaries, “Sunrise”), including the timely delivery of
accurate property-level financial results for the Company’s properties;
(p) factors causing volatility in the Company’s revenues generated by
its seniors housing communities managed by Sunrise, including without
limitation national and regional economic conditions, costs of
materials, energy, labor and services, employee benefit costs and
professional and general liability claims; (q) the movement of U.S. and
Canadian exchange rates; (r) 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; (s) 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 these liabilities; (t) the ability
and willingness of the lenders under the Company’s unsecured revolving
credit facilities to fund, in whole or in part, borrowing requests made
by the Company from time to time; (u) the impact of market or issuer
events on the liquidity or value of the Company’s investments in
marketable securities; and (v) the impact of any financial, accounting,
legal or regulatory issues that may affect Sunrise. Many of these
factors are beyond the control of the Company and its management.
Source: Ventas, Inc.
Ventas, Inc.
David J. Smith
(877) 4-VENTAS