CHICAGO--(BUSINESS WIRE)--Jun. 13, 2019--
Ventas (NYSE: VTR) announced that it has provided $490 million in
financing to subsidiaries of Colony Capital, Inc. (NYSE:CLNY)
(collectively, the parent and its subsidiaries, “Colony”) as part of a
$1.515 billion successful refinancing (the “New Secured Loan”) of
Colony’s prior $1.725 billion consolidated healthcare loan (the
“Refinanced Loan”) maturing in December 2019, which has been repaid and
discharged in full.
Ventas’s tranche of the New Secured Loan, which totals $490 million,
bears interest at LIBOR plus 6.42 percent, representing a current all-in
GAAP rate of 9 percent. The entire $1.515 billion loan has a five-year
term (inclusive of three one-year extension options), bears interest at
a floating rate that currently blends to one-month LIBOR plus 3.33
percent, and provides strong debt service coverage. The New Secured Loan
has a 75 percent loan to value and is supported by a diverse pool of
collateral, including 158 U.S. healthcare properties comprised of
medical office buildings, senior housing properties and other healthcare
assets.
“We are delighted to support Colony’s successful refinancing, which
creates value for both companies. For Ventas, our investment provides
accretion and excellent risk adjusted returns and, for Colony, the
transaction represents an important milestone, enhancing its financial
position with respect to its healthcare portfolio,” said Ventas Chairman
and Chief Executive Officer Debra A. Cafaro. “As we pivot to growth, our
outstanding team is accelerating our investments across our verticals,
which combine to deliver accretion and reliable cash flow growth. With
our recently announced investment with Le Groupe Maurice, continued
progress on our Research & Innovation developments and now the Colony
Capital investment, we have announced over $2.5 billion of investments
year to date.”
Ventas previously held $270 million of the Refinanced Loan, which bore
interest at 8.25 percent. Colony Capital used the proceeds of the New
Secured Loan, newly contributed equity capital and asset sale proceeds
to repay the Refinanced Loan in full.
Ventas expects the investment to be accretive to normalized funds from
operations by five cents per share on an annualized and leverage neutral
basis. Pro forma for the transaction, loans represent a modest 4 percent
of Ventas’s net operating income.
About Ventas
Ventas, Inc., an S&P 500 company, is a leading real estate investment
trust. Its diverse portfolio of approximately 1,200 assets in the United
States, Canada and the United Kingdom consists of seniors housing
communities, medical office buildings, university-based research and
innovation centers, inpatient rehabilitation and long-term acute care
facilities, and health systems. Through its Lillibridge
subsidiary, Ventas provides management, leasing, marketing, facility
development and advisory services to highly rated hospitals and health
systems throughout the United States. References to “Ventas” or the
“Company” mean Ventas, Inc. and its consolidated subsidiaries unless
otherwise expressly noted. More information about Ventas and Lillibridge
can be found at www.ventasreit.com and www.lillibridge.com.
The Company routinely announces material information to investors and
the marketplace using press releases, Securities and Exchange
Commission (“SEC”) filings, public conference calls, webcasts and the
Company’s website at www.ventasreit.com/investor-relations.
The information that the Company posts to its website may be deemed to
be material. Accordingly, the Company encourages investors and others
interested in the Company to routinely monitor and review the
information that the Company posts on its website, in addition to
following the Company’s press releases, SEC filings and public
conference calls and webcasts. Supplemental information regarding the
Company can be found on the Company’s website under the “Investor
Relations” section or at www.ventasreit.com/investor-relations/annual-reports---supplemental-information.
A comprehensive listing of the Company’s properties is available at www.ventasreit.com/our-portfolio/properties-by-stateprovince.
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’,
borrowers’ or managers’ expected future financial condition, results of
operations, cash flows, funds from operations, dividends and dividend
plans, financing opportunities and plans, capital markets transactions,
business strategy, budgets, projected costs, operating metrics, capital
expenditures, competitive positions, acquisitions, investment
opportunities, dispositions, merger or acquisition 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 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
from expectations depending on a variety of factors discussed in the
Company’s filings with the SEC. These factors include
without limitation: (a) the ability and willingness of the Company’s
tenants, operators, borrowers, managers and other third parties to
satisfy 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 tenants, operators, 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 and investments; (d)
the accuracy of estimates and assumptions that the Company used to
underwrite its acquisition of the interests in the joint venture with Le
Group Maurice and to determine the projected impact and benefits
(including financial) of the transaction, and the potential for the
Company’s estimates or assumptions, as well as the expected impact and
benefits, to change as additional information becomes available; (e)
macroeconomic conditions such as a disruption of or lack of access to
the capital markets, changes in the debt rating on U.S. government
securities, default or delay in payment by the United States of its
obligations, and changes in the federal or state budgets resulting in
the reduction or nonpayment of Medicare or Medicaid reimbursement rates;
(f) the nature and extent of future competition, including new
construction in the markets in which the Company’s seniors housing
communities and office buildings are located; (g) the extent and effect
of future or pending healthcare reform and regulation, including cost
containment measures and changes in reimbursement policies, procedures
and rates; (h) increases in the Company’s borrowing costs as a result of
changes in interest rates and other factors, including the potential
phasing out of the London Inter-bank Offered Rate after 2021; (i) the
ability of the Company’s tenants, operators and managers, as applicable,
to comply with laws, rules and regulations in the operation of the
Company’s properties, to deliver high-quality services, to attract and
retain qualified personnel and to attract residents and patients; (j)
changes in general economic conditions 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, earnings and funding
sources; (k) the Company’s ability to pay down, refinance, restructure
or extend its indebtedness as it becomes due; (l) the Company’s ability
and willingness to maintain its qualification as a REIT in light of
economic, market, legal, tax and other considerations; (m) final
determination of the Company’s taxable net income for the year
ended December 31, 2018 and for the year ending December 31, 2019; (n)
the ability and willingness of the Company’s tenants to renew their
leases with the Company upon expiration of the leases, the Company’s
ability to reposition its properties on the same or better terms in the
event of nonrenewal or in the event the Company exercises its right to
replace an existing tenant, and obligations, including indemnification
obligations, the Company may incur in connection with the replacement of
an existing tenant; (o) risks associated with the Company’s senior
living operating portfolio, such as factors that can cause volatility in
the Company’s operating income and earnings generated by those
properties, including without limitation national and regional economic
conditions, costs of food, 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; (p) changes in exchange rates
for any foreign currency in which the Company may, from time to time,
conduct business; (q) year-over-year changes in the Consumer Price Index
or the UK Retail Price Index and the effect of those changes on the rent
escalators contained in the Company’s leases and the Company’s earnings;
(r) the Company’s ability and the ability of its tenants, operators,
borrowers and managers to obtain and maintain adequate property,
liability and other insurance from reputable, financially stable
providers; (s) the impact of damage to the Company’s properties from
catastrophic weather and other natural events and the physical effects
of climate change; (t) the impact of increased operating costs and
uninsured professional liability claims on the Company’s liquidity,
financial condition and results of operations or that of the Company’s
tenants, operators, borrowers and managers, and the ability of the
Company and the Company’s tenants, operators, borrowers and managers to
accurately estimate the magnitude of those claims; (u) risks associated
with the Company’s office buildingportfolio and operations,
including the Company’s ability to successfully design, develop and
manage office buildings and to retain key personnel; (v) the ability of
the hospitals on or near whose campuses the Company’s medical office
buildings are located and their affiliated health systems to remain
competitive and financially viable and to attract physicians and
physician groups; (w) risks associated with the Company’s investments in
joint ventures and unconsolidated entities, including its lack of sole
decision-making authority and its reliance on its joint venture
partners’ financial condition; (x) the Company’s ability to obtain the
financial results expected from its development and redevelopment
projects; (y) the impact of market or issuer events on the liquidity or
value of the Company’s investments in marketable securities; (z)
consolidation activity in the seniors housing and healthcare industries
resulting in a change of control of, or a competitor’s investment in,
one or more of the Company’s tenants, operators, borrowers or managers
or significant changes in the senior management of the Company’s
tenants, operators, borrowers or managers; (aa) the impact of litigation
or any financial, accounting, legal or regulatory issues that may affect
the Company or its tenants, operators, borrowers or managers; and (bb)
changes in accounting principles, or their application or
interpretation, and the Company’s ability to make estimates and the
assumptions underlying the estimates, which could have an effect on the
Company’s earnings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190613005749/en/
Source: Ventas, Inc.
Juan Sanabria
(877) 4-VENTAS