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
building portfolio 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190613005749/en/
Juan Sanabria(877) 4-VENTAS
Ventas (NYSE:VTR)
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