Transaction Expands Company’s MOB Portfolio to Over 1.6 Million
Square Feet
CHICAGO--(BUSINESS WIRE)--Dec. 3, 2009--
Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that it
has completed the acquisition of three Class “A” medical office
buildings (MOBs), with a total of approximately 239,000 rentable square
feet, for an aggregate purchase price of $62.5 million.
The MOBs are located on hospital campuses of Alexian Brothers Health
System and Adventist Health System, not-for-profit health systems
serving the major metropolitan markets of Chicago, Illinois and Denver,
Colorado. Occupancy in the portfolio exceeds 99 percent, the average
remaining lease term is eight years and the average age of the assets is
five years.
“This transaction enhances both the size and quality of Ventas’s MOB
portfolio, which now comprises more than 1.6 million square feet,”
Ventas Chairman, President and Chief Executive Officer Debra A. Cafaro
said. “In addition, the acquisition increases our private pay revenues
and allows us to grow our relationships with two well-established,
“A-rated” not-for-profit health systems.”
NexCore Group, which developed the MOBs and is an existing partner of
the Company, will continue to provide management and leasing services
for the properties. Ventas Vice President, Acquisitions Vincent M. Cozzi
commented: “We are pleased to expand our relationship with NexCore, a
leading national developer and manager of healthcare properties.”
The purchase price represents an 8.2 percent capitalization rate on
in-place operating income. The transaction is expected to be accretive
to Ventas normalized Funds From Operations (FFO) in 2010. Ventas funded
the acquisition with cash on hand.
Ventas, Inc., an S&P 500 company, 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 the Company’s or its tenants’, operators’,
managers’ or borrowers’ 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, dispositions,
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. These factors include
without limitation: (a) the ability and willingness of the Company’s
operators, tenants, borrowers, managers and other third parties to meet
and/or perform their obligations under their respective contractual
arrangements with the Company, including, in some cases, their
obligations to indemnify, defend and hold harmless the Company from and
against various claims, litigation and liabilities; (b) the ability of
the Company’s operators, tenants, borrowers and managers 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 and other
indebtedness; (c) 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;
(d) the nature and extent of future competition; (e) the extent of
future or pending healthcare reform and regulation, including cost
containment measures and changes in reimbursement policies, procedures
and rates; (f) increases in the Company’s cost of borrowing as a result
of changes in interest rates and other factors; (g) 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; (h) the results of litigation affecting the
Company; (i) changes in general economic conditions and/or economic
conditions in the markets in which the Company may, from time to time,
compete, and the effect of those changes on the Company’s revenues and
its ability to access the capital markets or other sources of funds; (j)
the Company’s ability to pay down, refinance, restructure and/or extend
its indebtedness as it becomes due; (k) the Company’s ability and
willingness to maintain its qualification as a REIT due to economic,
market, legal, tax or other considerations; (l) final determination of
the Company’s taxable net income for the year ending December 31, 2009;
(m) 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 reposition its properties on the same or better terms in the
event such leases expire and are not renewed by the Company’s tenants or
in the event the Company exercises its right to replace an existing
tenant upon default; (n) risks associated with the Company’s senior
living operating portfolio, such as factors causing volatility in the
Company’s operating income and earnings generated by its properties,
including without limitation national and regional economic conditions,
costs of materials, energy, labor and services, employee benefit costs,
insurance costs and professional and general liability claims, and the
timely delivery of accurate property-level financial results for those
properties; (o) the movement of U.S. and Canadian exchange rates; (p)
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; (q) the
Company’s ability and the ability of its operators, tenants, borrowers
and managers to obtain and maintain adequate liability and other
insurance from reputable and financially stable providers; (r) the
impact of increased operating costs and uninsured professional liability
claims on the liquidity, financial condition and results of operations
of the Company’s operators, tenants, borrowers and managers, and the
ability of the Company’s operators, tenants, borrowers and managers to
accurately estimate the magnitude of those claims; (s) 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; (t) the impact of market or issuer
events on the liquidity or value of the Company’s investments in
marketable securities; and (u) the impact of any financial, accounting,
legal or regulatory issues that may affect the Company’s major tenants,
operators or managers. 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