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8-K - FORM 8-K - Ventas, Inc. | c95008e8vk.htm |
Exhibit 99.1
Ventas, Inc. | 111 S. Wacker Drive, Suite 4800 | Chicago, Illinois 60606 | (877) 4-VENTAS | www.ventasreit.com |
Contacts: | David J. Smith | |||
(877) 4-VENTAS |
VENTAS ANNOUNCES PRELIMINARY 2009 NORMALIZED FFO
RESULTS OF $2.67 TO $2.68 PER FULLY DILUTED SHARE
RESULTS OF $2.67 TO $2.68 PER FULLY DILUTED SHARE
Preliminary Results Exceed Prior Guidance Range
CHICAGO, IL (January 26, 2010) Ventas, Inc. (NYSE: VTR) (Ventas or the Company) announced
today preliminary normalized Funds From Operations (FFO) results for the year ended December 31,
2009. These results are being referenced today by Chairman, President and Chief Executive Officer
Debra A. Cafaro at the Jefferies 2010 Global Healthcare Services Conference in New York.
The Company said it expects to report 2009 normalized FFO in the range of $2.67 to $2.68 per
diluted share, exceeding the Companys previously announced guidance range of $2.62 to $2.65 per
diluted share.
Our diversified portfolio of high-quality healthcare and seniors housing assets delivered
excellent cash flows during 2009, and occupancies in our 79 communities managed by Sunrise
continued to trend positively during the fourth quarter, Ventas Chairman, President and Chief
Executive Officer Debra A. Cafaro said. At year end, Ventas had strong liquidity and cash on
hand, a great balance sheet and a hard-working team committed to delivering value to our
stakeholders. We are well positioned as we begin a new year and a new decade.
Net Operating Income after management fees (NOI) for the Companys 79 communities that are
managed by Sunrise Senior Living, Inc. (NYSE: SRZ) is expected to be $130 million to $131 million
for 2009, exceeding the Companys prior NOI guidance of $122 million to $129 million.
As previously disclosed, the Company will release its final fourth quarter and full-year 2009
results on Thursday, February 18, 2010 prior to the opening of trading. Its conference call will
follow at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Consistent with past practices, the
Company intends to provide its initial 2010 normalized FFO per share guidance at that time.
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Ventas Announces Preliminary 2009 Normalized FFO Results
January 26, 2010
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January 26, 2010
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The Companys normalized FFO excludes (a) gains and losses on the sales of assets, (b)
merger-related costs and expenses, deal costs and expenses, and earnout payments, including
expenses relating to the Companys lawsuit against HCP, Inc., (c) the impact of any expenses
related to asset impairment and valuation allowances, the write-off of unamortized deferred
financing fees, or additional costs, expenses, discounts or premiums incurred as a result of early
debt retirement or payment of the Companys debt, (d) the non-cash effect of income tax
benefits, and (e) the reversal of contingent liabilities.
A reconciliation of the Companys preliminary 2009 normalized FFO results to the Companys
preliminary 2009 GAAP earnings is provided on a schedule attached to this press release. All
amounts reported herein are preliminary estimates and are subject to change as the Company
completes its year-end internal review and external audit procedures.
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 Companys 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 Companys 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 Companys actual future results and trends may differ materially depending on a
variety of factors discussed in the Companys filings with the Securities and Exchange Commission.
These factors include without limitation: (a) the ability and willingness of the Companys
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 Companys 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 Companys success in
implementing its business strategy and the Companys 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 Companys cost of
borrowing as a result of changes in interest rates and other factors; (g) the ability of the
Companys 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 Companys revenues and its ability to access the capital markets or other sources of funds; (j)
the Companys ability to pay down, refinance, restructure and/or extend its indebtedness as it
becomes due; (k) the Companys ability and willingness to maintain its qualification as a REIT due
to economic, market, legal, tax or other considerations; (l) final determination of the Companys
taxable net income for the year ended December 31, 2009 and for the year ending December 31, 2010;
(m) the ability and willingness of the Companys tenants to renew their leases with the Company
upon expiration of the leases and the Companys ability to reposition its properties on the same or
better terms in the event such leases expire and are not renewed by the Companys tenants or in the
event the Company exercises its right to replace an existing tenant upon
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Ventas Announces Preliminary 2009 Normalized FFO Results
January 26, 2010
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January 26, 2010
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default; (n) risks
associated with the Companys senior living operating portfolio, such as factors causing volatility
in the Companys 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 Companys earnings; (q) the Companys
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 Companys operators, tenants, borrowers and
managers, and the ability of the Companys operators, tenants, borrowers and managers to accurately
estimate the magnitude of those claims; (s) the ability and willingness of the lenders under the
Companys 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 Companys investments in marketable securities; and (u) the impact of any
financial, accounting, legal or regulatory issues that may affect the Companys major tenants,
operators or managers. Many of these factors are beyond the control of the Company and its
management.
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Ventas Announces Preliminary 2009 Normalized FFO Results
January 26, 2010
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January 26, 2010
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Normalized FFO Per Share Reconciliation for the Year Ended December 31, 20091
Preliminary | ||||||||||||
Results | ||||||||||||
For the Year | ||||||||||||
Ended | ||||||||||||
December 31, 2009 | ||||||||||||
Net income attributable to common stockholders |
$ | 1.72 | - | $ | 1.74 | |||||||
Adjustments: |
||||||||||||
Depreciation and amortization on real estate assets,
depreciation related to noncontrolling interest and
gain/loss on sale of real estate assets, net |
0.84 | - | 0.84 | |||||||||
FFO |
2.56 | - | 2.58 | |||||||||
Adjustments: |
||||||||||||
Income tax benefit/expense, gain/loss on
extinguishment of debt and merger-related
expenses and deal costs, net |
0.11 | - | 0.10 | |||||||||
Normalized FFO |
2.67 | - | 2.68 | |||||||||
Straight-lining of rental income and routine
capital expenditures |
(0.13 | ) | - | (0.13 | ) | |||||||
FAD |
$ | 2.54 | - | $ | 2.55 | |||||||
1) | All amounts reported herein are preliminary estimates and are subject to change as the
Company completes its year-end internal review and external audit procedures. |
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