Ventas Sells 22 Underperforming Assets to Kindred Healthcare

Jul 02, 2007, 01:00 ET from Ventas, Inc.

    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
     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
     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
     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.