- High-Quality Portfolio is Leased by
Leading Universities, Academic Medical Centers and Research
Companies
- Consistent with Ventas’s Strategy to
Drive Reliable Income and Growth from Institutional Quality
Tenants
- Establishes Growth Platform with
Wexford Science & Technology, LLC, the Leading
University-Focused Developer
Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) today
announced that it has completed its previously announced
acquisition of substantially all of the life science and medical
real estate assets of Wexford Science & Technology, LLC
(“Wexford”) from affiliates of Blackstone Real Estate Partners VIII
L.P. for $1.5 billion in cash.
“We are pleased to complete this accretive transaction, which
marks Ventas’s entry into the attractive life science business and
provides even more diversified, reliable income and growth for our
shareholders,” said Ventas Chairman and Chief Executive Officer
Debra A. Cafaro. “With attractive real estate leased by top
universities, academic medical centers and research companies, and
a strategic partnership with leading developer Wexford, the
transaction adds high quality properties and establishes a new
platform for growth. With Wexford’s portfolio, we are further
solidifying Ventas’s position as the leading capital provider at
the intersection of healthcare and real estate.”
The acquired portfolio includes 23 operating properties that
contain 4.1 million square feet, are 97 percent leased and
represent a 2017 cash yield of 6.8 percent. Ventas also acquired
two development assets pre-leased to Duke University and Wake
Forest University that are expected to produce a stabilized
unlevered yield of approximately 7.5 percent. Finally, Ventas
acquired nine development sites principally contiguous to existing
assets, two of which present near term development
opportunities.
Wexford will continue to manage the portfolio. As part of the
acquisition, Ventas also entered into a long term management and
pipeline agreement with Wexford, whereby Ventas will have exclusive
rights to jointly develop future projects with Wexford, which will
be independently owned and operated by its experienced, existing
management team.
“We are delighted to partner with Ventas and we see great
opportunities ahead as we continue to manage our existing
high-quality portfolio,” said Jim Berens, President of Wexford.
“The combination of Wexford’s development expertise and
relationships together with Ventas’s financial strength and
long-term commitment should enable us to serve our clients, develop
exciting new projects and grow our business significantly.”
The transaction is expected to be immediately accretive to the
Company’s normalized funds from operations (“FFO”) per share. The
impact of the transaction is already reflected in the Company’s
2016 normalized FFO per share guidance range of $4.05 to $4.13
issued in its July 29, 2016 press release. Ventas funded the
transaction with $736 million in equity raised in July 2016, cash
on hand and draws on its revolving credit facility.
About Ventas
Ventas, Inc., an S&P 500 company, is a leading real estate
investment trust. Its diverse portfolio of approximately 1,300
assets in the United States, Canada and the United Kingdom consists
of seniors housing communities, medical office buildings, life
science buildings, skilled nursing facilities, specialty hospitals
and general acute care hospitals. 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. More
information about Ventas and Lillibridge can be found at
www.ventasreit.com and www.lillibridge.com.
About Wexford
Wexford Science & Technology, LLC is a real estate company
exclusively focused on partnering with universities, academic
medical centers and research companies. Wexford targets strategic
opportunities with top-tier research universities that are directly
on or contiguous to dense, urban campuses.
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 Securities and Exchange
Commission. 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) 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; (e) the nature and extent of future
competition, including new construction in the markets in which the
Company’s seniors housing communities and medical office buildings
(“MOBs”) are located; (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 borrowing costs as a result
of changes in interest rates and other factors; (h) 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; (i) 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; (j) the Company’s ability
to pay down, refinance, restructure or extend its indebtedness as
it becomes due; (k) the Company’s ability and willingness to
maintain its qualification as a REIT in light of economic, market,
legal, tax and other considerations; (l) final determination of the
Company’s taxable net income for the year ended December 31, 2015
and for the year ending December 31, 2016; (m) 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; (n) 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; (o) changes in exchange
rates for any foreign currency in which the Company may, from time
to time, conduct business; (p) 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; (q) 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; (r) 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; (s) risks
associated with the Company’s MOB portfolio and operations,
including the Company’s ability to successfully design, develop and
manage MOBs and to retain key personnel; (t) the ability of the
hospitals on or near whose campuses the Company’s MOBs are located
and their affiliated health systems to remain competitive and
financially viable and to attract physicians and physician groups;
(u) 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; (v) the impact of market or issuer
events on the liquidity or value of the Company’s investments in
marketable securities; (w) 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; (x) 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
(y) 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.
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Ventas, Inc.Ryan K. Shannon(877) 4-VENTAS
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