Ventas Reports Eight Percent Increase in Third Quarter
to Record Normalized FFO of $1.12 Per Diluted Share

$1.1 Billion of Acquisitions Closed in Third Quarter

Company Increases 2014 Normalized FFO Guidance to $4.44 to $4.47 Per Diluted Share

$2.9 Billion HCT Acquisition on Track for Year-End Completion

CHICAGO--()--Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that normalized Funds From Operations (“FFO”) for the quarter ended September 30, 2014 increased eight percent to $332.8 million, from $307.2 million for the comparable 2013 period. Normalized FFO per diluted common share was $1.12 for the quarter ended September 30, 2014, an eight percent increase from $1.04 for the comparable 2013 period. Normalized FFO per share grew nine percent in the third quarter of 2014 over the third quarter of 2013, excluding non-cash items, computed on a consistent basis with prior periods. Weighted average diluted shares outstanding for the quarter increased slightly to 296.5 million, compared to 295.2 million in 2013.

“Our momentum to build the leading global brand in healthcare and senior living real estate is bolstered by our steady stream of accretive acquisitions. Our HCT acquisition is on track to close by year end and we have an active pipeline of investment opportunities,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “Our company, built on a balance between consistent superior growth and active enterprise management, continues to benefit from an aging population, a rapidly changing healthcare environment, and an increase in the number of insured individuals. With our record third quarter earnings, the continued expansion of our high-quality customer base, and our diverse, productive portfolio, we are pleased to increase our full-year guidance. Our team looks forward to continuing our long track record of excellence and success for our constituents.”

Ventas’s continued growth in normalized FFO per diluted common share is due primarily to the Company’s accretive investments, net of capital costs, and same-store growth from its high-quality, diverse portfolio.

Normalized FFO for the quarter ended September 30, 2014 excludes the net expense (totaling $28.7 million, or $0.10 per diluted share) from merger-related expenses and deal costs (including integration and transition-related costs), net losses on extinguishment of debt, non-cash changes in the fair value of financial instruments, costs relating to the re-audit of Ventas’s historical financial statements and non-cash amortization of other intangibles, partially offset by non-cash income tax benefit. Normalized FFO for the quarter ended September 30, 2013 excluded the net expense (totaling $3.5 million, or $0.01 per diluted share) from merger-related expenses and deal costs (including integration and transition-related costs) and amortization of other intangibles, partially offset by non-cash income tax benefit and net gains on extinguishment of debt.

Net income attributable to common stockholders for the quarter ended September 30, 2014 was $109.1 million, or $0.37 per diluted common share, including discontinued operations. Net income attributable to common stockholders for the quarter ended September 30, 2013 was $118.3 million, or $0.40 per diluted common share, including discontinued operations. This change in net income attributable to common stockholders compared to third quarter 2013 is primarily due to accretive investments, net of capital costs, and same-store growth in the Company’s portfolio and gains on the sale of real estate, more than offset by higher depreciation and amortization expense, merger-related expenses and deal costs, re-audit-related expenses, non-cash changes in the fair value of financial instruments and loss on extinguishment of debt.

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), for the quarter ended September 30, 2014 increased to $304.1 million, from $303.7 million in the comparable 2013 period. This increase in NAREIT FFO is due primarily to accretive investments, net of capital costs, and same-store growth in the Company’s portfolio, partially offset by higher merger-related expenses and deal costs, re-audit-related expenses, non-cash changes in the fair value of financial instruments and loss on extinguishment of debt. NAREIT FFO per diluted common share for the quarters ended September 30, 2014 and 2013 was $1.03.

PRIVATE PAY SENIORS HOUSING OPERATING PORTFOLIO

4.4 Percent Growth in Third Quarter 2014 NOI in 217 Same-Store Stabilized Communities Versus the Third Quarter of 2013 in Local Currency

At September 30, 2014, the Company’s seniors housing operating portfolio included 270 communities managed by Atria Senior Living, Inc. (“Atria”), Sunrise Senior Living, LLC (“Sunrise”) or Brookdale Senior Living Inc. (“Brookdale”). Third quarter 2014 Net Operating Income (“NOI”) after management fees for this portfolio (in local currency) totaled $132.2 million, an increase of 15 percent over the third quarter of 2013. Average unit occupancy for these 270 communities was 91.4 percent in the third quarter versus 90.3 percent for the 239 total managed seniors housing communities in the second quarter.

Same-store NOI in local currency after management fees grew 4.4 percent and revenue per occupied room (“REVPOR”) grew 2.5 percent in the 217 stabilized private pay seniors housing communities owned by the Company for the full third quarters of 2014 and 2013.

For the twelve stabilized communities located in Canada and managed by Sunrise, NOI in local currency after management fees was $7 million in the third quarter, a nine percent increase sequentially and a 2.9 percent increase over the third quarter of 2013.

THIRD QUARTER HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS

Investments and Dispositions

  • In August 2014, Ventas completed its acquisition of 29 independent living communities located in Canada from Holiday Retirement (“Holiday”) for a purchase price of CAD 957 million. Atria began managing these communities at closing.
  • Since July 1, 2014, Ventas made additional investments with existing customers having an aggregate purchase price of $259 million, excluding development and redevelopment projects and at a first-year cash NOI yield of nearly seven percent. Of these investments, $14 million closed after the end of the third quarter and $118 million were disclosed in the Company’s earnings release dated August 11, 2014.
  • The Company currently has $188 million of development and redevelopment projects underway at an expected stabilized unlevered yield over eight percent.
  • Since July 1, 2014, Ventas sold seven properties for $60 million and received loans receivable repayments of $53 million.
  • The Company expects to close by year end its acquisition of American Realty Capital Healthcare Trust, Inc. (“HCT”) in a stock and cash transaction valued at approximately $2.9 billion. The transaction is expected to be funded with Ventas common stock valued at $67.13 per share (between $1.8 billion and $2.0 billion of the consideration), cash and the assumption of debt. However, this transaction remains subject to various conditions and there can be no assurances as to whether or, if so, when it will close.

Liquidity, Capital Raising and Balance Sheet

  • In September 2014, Ventas issued and sold CAD 650 million aggregate principal amount of senior notes, with a weighted average interest rate of 3.5 percent and a weighted average maturity of 6.9 years.
  • Currently, Ventas’s debt to total capitalization is 34 percent.
  • The Company’s net debt to Adjusted Pro Forma EBITDA (as defined herein) at September 30, 2014 was 5.8x.
  • Currently, the Company has $1.8 billion of availability under its revolving credit facility and $70 million of cash on hand.

PORTFOLIO UPDATE AND ADDITIONAL INFORMATION

  • Same-store cash NOI growth for the Company’s total portfolio (1,323 assets) was three percent in local currency for the quarter ended September 30, 2014 compared to the third quarter of 2013.
  • Ventas was named a global sector leader in its peer group by the Global Real Estate Sustainability Benchmark (GRESB) for improving the energy efficiency of its seniors housing and medical office building portfolios, which also reduced property operating expenses. Additionally, Ventas ranked in the top half in the financial sector for the Carbon Disclosure Project (CDP).
  • Robert F. Probst will join Ventas as Executive Vice President and Chief Financial Officer on October 27, 2014. He will also be a member of the Company’s executive leadership team and have responsibility for leading the Company’s accounting, treasury, capital markets, investor relations and information technology functions. He served as SVP and CFO for Beam, Inc. from 2008-2014.
  • Melody C. Barnes was appointed as an independent member of the Ventas Board of Directors. She served as the Director of the White House Domestic Policy Council from 2009-2012 and currently is a Vice Provost of New York University.
  • 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/financial-information/supplemental-information.

VENTAS RAISES 2014 NORMALIZED FFO PER DILUTED SHARE GUIDANCE TO $4.44 TO $4.47 WITHOUT HCT, WHICH IS EXPECTED TO CLOSE BY YEAR END

Ventas currently expects its 2014 normalized FFO per diluted share to range between $4.44 and $4.47, an increase from previously announced 2014 guidance of between $4.39 and $4.43 per diluted share. The Company’s improved guidance range constitutes approximately eight to nine percent per share growth in 2014, excluding non-cash items (projected to be $0.12 per diluted share), computed on a consistent basis with prior periods, and seven to eight percent on an as-reported basis. A reconciliation of the Company’s guidance, and the non-cash items, to the Company’s projected GAAP earnings is included in this press release.

The Company’s normalized FFO guidance (and related GAAP earnings projections) for all periods assumes, with certain immaterial exceptions: all of the Company’s tenants and borrowers continue to meet all of their obligations to the Company; full-year same-store NOI growth for the Company’s total portfolio of 3.5 to four percent; full-year 2014 NOI from its 270 managed seniors housing communities of between $512 million and $520 million; and no material changes to applicable foreign currency exchange rates.

The Company’s normalized FFO guidance (and related GAAP earnings projections) for all periods excludes the impact from the closing and funding of its pending acquisition of HCT. It also excludes, other than as specifically stated, (a) net gains on the sales of real property assets, including gain on re-measurement of equity method investments, (b) merger-related costs and expenses, including amortization of intangibles, transition and integration expenses, and deal costs and expenses, (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, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of debt, (d) the non-cash effect of income tax benefits or expenses and derivative transactions that have non-cash mark-to-market impacts on the Company’s income statement, (e) the impact of future unannounced acquisitions or divestitures (including pursuant to tenant options to purchase) and capital transactions, (f) the financial impact of contingent consideration, charitable donations made to the Ventas Charitable Foundation, gains and losses for non-operational foreign currency hedge agreements and changes in the fair value of financial instruments, and (g) expenses related to the re-audit and re-review of the Company’s historical financial statements and related matters.

The Company’s guidance is based on a number of other assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurances that the Company will achieve these results. The Company may from time to time update its publicly announced guidance, but it is not obligated to do so.

THIRD QUARTER CONFERENCE CALL

Ventas will hold a conference call to discuss this earnings release today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The dial-in number for the conference call is (877) 415-3182 (or (857) 244-7325 for international callers). The participant passcode is “Ventas.” The conference call is being webcast live by NASDAQ OMX and can be accessed at the Company’s website at www.ventasreit.com. A replay of the webcast will be available following the call online, or by calling (888) 286-8010 (or (617) 801-6888 for international callers), passcode 61721309, beginning at approximately 2:00 p.m. Eastern Time and will remain for 35 days.

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of more than 1,500 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, skilled nursing facilities, hospitals and other properties. 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.

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 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, including the Company’s pending acquisition of HCT and investments in different asset types and outside the United States; (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 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 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 ending December 31, 2014; (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 or manager, and obligations, including indemnification obligations, the Company may incur in connection with the replacement of an existing tenant or manager; (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, to accurately estimate its costs in fixed fee-for-service projects 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) the Company’s ability to build, maintain and expand its relationships with existing and prospective hospital and health system clients; (v) 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; (w) the impact of market or issuer events on the liquidity or value of the Company’s investments in marketable securities; (x) merger and acquisition 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; (y) the impact of litigation or any financial, accounting, legal or regulatory issues that may affect the Company or its tenants, operators, borrowers or managers; (z) 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; and (aa) the impact of expenses related to the re-audit and re-review of the Company’s historical financial statements and related matters. Many of these factors are beyond the control of the Company and its management.

 
CONSOLIDATED BALANCE SHEETS
As of September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013
(In thousands, except per share amounts)
         
September 30, June 30, March 31, December 31, September 30,
2014 2014 2014 2013 2013
 
Assets
Real estate investments:
Land and improvements $ 1,937,888 $ 1,848,922 $ 1,867,146 $ 1,855,968 $ 1,856,739
Buildings and improvements 19,664,973 18,591,786 18,658,616 18,457,028 18,383,075
Construction in progress 116,975 93,629 71,862 80,415 79,172
Acquired lease intangibles 1,039,949   1,009,474   1,014,711   1,010,181   1,012,163  
22,759,785 21,543,811 21,612,335 21,403,592 21,331,149
Accumulated depreciation and amortization (3,833,974 ) (3,657,541 ) (3,515,868 ) (3,328,006 ) (3,156,206 )
Net real estate property 18,925,811 17,886,270 18,096,467 18,075,586 18,174,943
Secured loans receivable and investments, net 407,551 414,051 376,074 376,229 400,889
Investments in unconsolidated entities 88,175   89,423   90,929   91,656   91,531  
Net real estate investments 19,421,537 18,389,744 18,563,470 18,543,471 18,667,363
Cash and cash equivalents 64,595 86,635 59,791 94,816 54,672
Escrow deposits and restricted cash 78,746 75,514 76,110 84,657 98,200
Deferred financing costs, net 64,898 63,399 59,726 62,215 55,242
Other assets 1,021,389   1,175,494   943,671   946,335   1,003,881  
Total assets $ 20,651,165   $ 19,790,786   $ 19,702,768   $ 19,731,494   $ 19,879,358  
 
Liabilities and equity
Liabilities:
Senior notes payable and other debt $ 10,469,106 $ 9,602,439 $ 9,481,051 $ 9,364,992 $ 9,413,318
Accrued interest 69,112 56,722 61,083 54,349 62,176
Accounts payable and other liabilities 965,240 975,282 938,098 1,001,515 1,019,166
Deferred income taxes 361,454   256,392   252,499   250,167   248,369  
Total liabilities 11,864,912 10,890,835 10,732,731 10,671,023 10,743,029
 
Redeemable OP unitholder and noncontrolling interests 163,080 169,292 160,115 156,660 171,921
 
Commitments and contingencies
 
Equity:
Ventas stockholders' equity:
Preferred stock, $1.00 par value; 10,000 shares authorized, unissued
Common stock, $0.25 par value; 294,359; 294,358; 294,346; 297,901; and 297,328 shares issued at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively 73,603 73,602 73,599 74,488 74,345
Capital in excess of par value 9,859,490 9,849,301 9,858,733 10,078,592 10,032,285
Accumulated other comprehensive income 16,156 26,255 18,464 19,659 21,293
Retained earnings (deficit) (1,398,378 ) (1,294,048 ) (1,218,967 ) (1,126,541 ) (1,021,628 )
Treasury stock, 32; 0; 3; 3,712; and 3,699 shares at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively (2,075 )   (162 ) (221,917 ) (221,203 )
Total Ventas stockholders' equity 8,548,796 8,655,110 8,731,667 8,824,281 8,885,092
Noncontrolling interest 74,377   75,549   78,255   79,530   79,316  
Total equity 8,623,173   8,730,659   8,809,922   8,903,811   8,964,408  
Total liabilities and equity $ 20,651,165   $ 19,790,786   $ 19,702,768   $ 19,731,494   $ 19,879,358  

 
CONSOLIDATED STATEMENTS OF INCOME
For the three and nine months ended September 30, 2014 and 2013
(In thousands, except per share amounts)
       
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2014 2013 2014 2013
Revenues:
Rental income:
Triple-net leased $ 244,206 $ 218,698 $ 724,778 $ 644,403
Medical office buildings 116,598   114,779   346,711   335,472  
360,804 333,477 1,071,489 979,875
Resident fees and services 396,247 359,112 1,141,781 1,039,876
Medical office building and other services revenue 7,573 4,146 18,240 11,331
Income from loans and investments 14,043 14,448 39,435 45,284
Interest and other income 368   66   814   1,901  
Total revenues 779,035 711,249 2,271,759 2,078,267
Expenses:
Interest 98,469 83,764 277,811 244,635
Depreciation and amortization 201,224 177,038 585,636 524,033
Property-level operating expenses:
Senior living 265,274 244,316 762,993 706,561
Medical office buildings 41,147   40,566   119,827   115,010  
306,421 284,882 882,820 821,571
Medical office building services costs 4,568 1,651 9,565 4,957
General, administrative and professional fees 29,466 28,659 93,638 84,757
Loss (gain) on extinguishment of debt, net 2,414 (189 ) 5,079 (909 )
Merger-related expenses and deal costs 16,749 6,208 37,108 17,137
Other 15,229   4,353   25,321   13,325  
Total expenses 674,540   586,366   1,916,978   1,709,506  
Income before (loss) income from unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interest 104,495 124,883 354,781 368,761
(Loss) income from unconsolidated entities (47 ) 110 549 533
Income tax benefit (expense) 1,887   2,780   (4,820 ) 13,100  
Income from continuing operations 106,335 127,773 350,510 382,394
Discontinued operations (259 ) (9,174 ) 2,517 (36,164 )
Gain on real estate dispositions 3,625     16,514    
Net income 109,701 118,599 369,541 346,230
Net income attributable to noncontrolling interest 569   303   964   1,161  
Net income attributable to common stockholders $ 109,132   $ 118,296   $ 368,577   $ 345,069  
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders, including real estate dispositions $ 0.37 $ 0.43 $ 1.24 $ 1.30
Discontinued operations (0.00 ) (0.03 ) 0.01   (0.12 )
Net income attributable to common stockholders $ 0.37   $ 0.40   $ 1.25   $ 1.18  
Diluted:
Income from continuing operations attributable to common stockholders, including real estate dispositions $ 0.37 $ 0.43 $ 1.23 $ 1.29
Discontinued operations (0.00 ) (0.03 ) 0.01   (0.12 )
Net income attributable to common stockholders $ 0.37   $ 0.40   $ 1.24   $ 1.17  
 
Weighted average shares used in computing earnings per common share:
Basic 294,030 292,818 293,965 292,308
Diluted 296,495 295,190 296,411 294,788
 
Dividends declared per common share $ 0.725 $ 0.67 $ 2.175 $ 2.01

 
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
         
2014 Quarters 2013 Quarters
Third Second First Fourth Third
 
Revenues:
Rental income:
Triple-net leased $ 244,206 $ 242,726 $ 237,846 $ 232,873 $ 218,698
Medical office buildings 116,598   114,890   115,223   114,635   114,779  
360,804 357,616 353,069 347,508 333,477
Resident fees and services 396,247 374,473 371,061 366,129 359,112
Medical office building and other services revenue 7,573 4,367 6,300 6,478 4,146
Income from loans and investments 14,043 14,625 10,767 12,924 14,448
Interest and other income 368   173   273   146   66  
Total revenues 779,035 751,254 741,470 733,185 711,249
 
Expenses:
Interest 98,469 91,501 87,841 90,274 83,764
Depreciation and amortization 201,224 190,818 193,594 198,042 177,038
Property-level operating expenses:
Senior living 265,274 249,424 248,295 250,123 244,316
Medical office buildings 41,147   39,335   39,345   37,938   40,566  
306,421 288,759 287,640 288,061 284,882
Medical office building services costs 4,568 1,626 3,371 3,358 1,651
General, administrative and professional fees 29,466 31,306 32,866 30,349 28,659
Loss (gain) on extinguishment of debt, net 2,414 2,924 (259 ) 2,110 (189 )
Merger-related expenses and deal costs 16,749 9,599 10,760 4,497 6,208
Other 15,229   4,863   5,229   5,407   4,353  
Total expenses 674,540   621,396   621,042   622,098   586,366  
 
Income before (loss) income from unconsolidated entities, income taxes, discontinued operations, real estate dispositions and noncontrolling interest 104,495 129,858 120,428 111,087 124,883
(Loss) income from unconsolidated entities (47 ) 348 248 (1,041 ) 110
Income tax benefit (expense) 1,887   (3,274 ) (3,433 ) (1,272 ) 2,780  
Income from continuing operations 106,335 126,932 117,243 108,774 127,773
Discontinued operations (259 ) (255 ) 3,031 (115 ) (9,174 )
Gain on real estate dispositions 3,625   11,889   1,000      
Net income 109,701 138,566 121,274 108,659 118,599
Net income attributable to noncontrolling interest 569   168   227   219   303  
Net income attributable to common stockholders $ 109,132   $ 138,398   $ 121,047   $ 108,440   $ 118,296  
 
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders, including real estate dispositions $ 0.37 $ 0.47 $ 0.40 $ 0.37 $ 0.43
Discontinued operations (0.00 ) (0.00 ) 0.01   (0.00 ) (0.03 )
Net income attributable to common stockholders $ 0.37   $ 0.47   $ 0.41   $ 0.37   $ 0.40  
Diluted:
Income from continuing operations attributable to common stockholders, including real estate dispositions $ 0.37 $ 0.47 $ 0.40 $ 0.37 $ 0.43
Discontinued operations (0.00 ) (0.00 ) 0.01   (0.00 ) (0.03 )
Net income attributable to common stockholders $ 0.37   $ 0.47   $ 0.41   $ 0.37   $ 0.40  
 
Weighted average shares used in computing earnings per common share:
Basic 294,030 293,988 293,875 293,674 292,818
Diluted 296,495 296,504 296,245 296,047 295,190

 
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2014 and 2013
(In thousands)
  2014   2013
Cash flows from operating activities:
Net income $ 369,541 $ 346,230
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amounts in discontinued operations) 587,176 569,325
Amortization of deferred revenue and lease intangibles, net (14,775 ) (11,159 )
Other non-cash amortization (616 ) (13,376 )
Stock-based compensation 16,792 15,010
Straight-lining of rental income, net (29,644 ) (21,165 )
Loss (gain) on extinguishment of debt, net 5,079 (1,062 )
Gain on real estate dispositions (including amounts in discontinued operations) (17,726 ) (2,241 )
Gain on real estate loan investments (249 ) (3,598 )
Gain on sale of marketable securities (856 )
Income tax expense (benefit) 4,420 (13,100 )
(Income) loss from unconsolidated entities (549 ) 707
Gain on re-measurement of equity interest upon acquisition, net (1,241 )
Other 13,599 6,133
Changes in operating assets and liabilities:
Increase in other assets (3,306 ) (28,132 )
Increase in accrued interest 14,835 14,624
Decrease in accounts payable and other liabilities (24,605 ) (20,670 )
Net cash provided by operating activities 919,972 835,429
Cash flows from investing activities:
Net investment in real estate property (1,184,036 ) (1,358,766 )
Purchase of noncontrolling interest (3,588 ) (7,895 )
Investment in loans receivable and other (66,436 ) (34,717 )
Proceeds from real estate disposals 112,746 29,191
Proceeds from loans receivable 55,573 299,156
Purchase of marketable securities (46,689 )
Proceeds from sale or maturity of marketable securities 21,689 5,493
Funds held in escrow for future development expenditures 2,602 15,189
Development project expenditures (71,375 ) (74,707 )
Capital expenditures (56,235 ) (50,634 )
Other (421 ) (411 )
Net cash used in investing activities (1,236,170 ) (1,178,101 )
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities (153,684 ) (92,586 )
Proceeds from debt 2,007,707 1,766,844
Repayment of debt (905,117 ) (840,532 )
Payment of deferred financing costs (14,946 ) (19,977 )
Issuance of common stock, net 106,002
Cash distribution to common stockholders (640,414 ) (588,770 )
Cash distribution to redeemable OP unitholders (4,214 ) (3,479 )
Purchases of redeemable OP units (317 )
Contributions from noncontrolling interest 2,094
Distributions to noncontrolling interest (6,760 ) (7,614 )
Other (551 ) 7,830  
Net cash provided by financing activities 282,021   329,495  
Net decrease in cash and cash equivalents (34,177 ) (13,177 )
Effect of foreign currency translation on cash and cash equivalents 3,956 (59 )
Cash and cash equivalents at beginning of period 94,816   67,908  
Cash and cash equivalents at end of period $ 64,595   $ 54,672  
 
Supplemental schedule of non-cash activities:
Assets and liabilities assumed from acquisitions:
Real estate investments $ 353,995 $ 221,447
Other assets acquired 3,683 6,526
Debt assumed 228,150 183,848
Other liabilities 19,441 27,583
Deferred income tax liability 110,087 4,849
Noncontrolling interests 11,693

 
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
         
2014 Quarters 2013 Quarters
Third Second First Fourth Third
Cash flows from operating activities:

Net income

$ 109,701 $ 138,566 $ 121,274 $ 108,659 $ 118,599
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amounts in discontinued operations) 201,236 192,064 193,876 200,556 188,393
Amortization of deferred revenue and lease intangibles, net (4,896 ) (4,496 ) (5,383 ) (4,634 ) (4,156 )
Other non-cash amortization 2,312 (963 ) (1,965 ) (3,369 ) (3,975 )
Stock-based compensation 5,381 5,367 6,044 5,643 4,210
Straight-lining of rental income, net (12,413 ) (9,317 ) (7,914 ) (9,375 ) (6,835 )
Loss (gain) on extinguishment of debt, net 2,414 2,924 (259 ) 2,110 (189 )
Gain on real estate dispositions (including amounts in discontinued operations) (3,584 ) (11,705 ) (2,437 ) (1,376 ) (46 )
Gain on real estate loan investments (249 ) (1,458 ) (2,499 )
Income tax (benefit) expense (1,987 ) 2,974 3,433 1,272 (2,780 )
Loss (income) from unconsolidated entities 47 (348 ) (248 ) 1,041 (111 )
Other 7,105 3,418 3,076 2,274 2,261
Changes in operating assets and liabilities:
(Increase) decrease in other assets (14,514 ) 4,967 6,241 27,442 (11,717 )
Increase (decrease) in accrued interest 12,461 (4,379 ) 6,753 (7,818 ) 11,309
Increase (decrease) increase in accounts payable and other liabilities 21,256   (7,791 ) (38,070 ) 38,359   35,277  
Net cash provided by operating activities 324,270 311,281 284,421 359,326 327,741
Cash flows from investing activities:
Net investment in real estate property (912,510 ) (89,660 ) (181,866 ) (78,236 ) (1,075,144 )
Purchase of noncontrolling interest (3,588 ) (6,436 ) (1,771 )
Investment in loans receivable and other (21,948 ) (43,296 ) (1,192 ) (3,246 ) (2,385 )
Proceeds from real estate disposals 60,396 26,200 26,150 6,400 4,901
Proceeds from loans receivable 49,593 4,817 1,163 26,362 81,113
Purchase of marketable securities (21,689 ) (25,000 )
Proceeds from sale or maturity of marketable securities 21,689
Funds held in escrow for future development expenditures 2,602 4,269 3,373
Development project expenditures (26,952 ) (20,475 ) (23,948 ) (21,034 ) (26,423 )
Capital expenditures (20,709 ) (19,392 ) (16,134 ) (30,980 ) (18,175 )
Other (296 )   (125 ) (1,758 )  
Net cash used in investing activities (850,737 ) (167,083 ) (218,350 ) (104,659 ) (1,034,511 )
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities 46,267 (381,705 ) 181,754 (71,443 ) 188,340
Proceeds from debt 1,311,046 696,661 1,000,702 848,389
Repayment of debt (632,391 ) (204,953 ) (67,773 ) (951,960 ) (155,014 )
Payment of deferred financing costs (8,100 ) (6,679 ) (167 ) (11,300 ) (6,980 )
Issuance of common stock, net 35,341 23,618
Cash distribution to common stockholders (213,462 ) (213,479 ) (213,473 ) (213,353 ) (196,540 )
Cash distribution to redeemable OP unitholders (1,452 ) (1,360 ) (1,402 ) (1,561 ) (1,166 )
Purchases of redeemable OP units (342 ) (109 )
Contributions from noncontrolling interest 301
Distributions to noncontrolling interest (1,852 ) (2,671 ) (2,237 ) (1,672 ) (2,569 )
Other 23   (2,215 ) 1,641   788   1,022  
Net cash provided by (used in) financing activities 500,079   (116,401 ) (101,657 ) (214,499 ) 698,991  
Net (decrease) increase in cash and cash equivalents (26,388 ) 27,797 (35,586 ) 40,168 (7,779 )
Effect of foreign currency translation on cash and cash equivalents 4,348 (953 ) 561 (24 ) 30
Cash and cash equivalents at beginning of period 86,635   59,791   94,816   54,672   62,421  
Cash and cash equivalents at end of period $ 64,595   $ 86,635   $ 59,791   $ 94,816   $ 54,672  
 
Supplemental schedule of non-cash activities:
Assets and liabilities assumed from acquisitions:
Real estate investments $ 299,713 $ 51,330 $ 2,952 $ 2,508 $ 131,427
Other assets acquired 2,049 1,634 109 3,964
Debt assumed 177,035 51,115 115,246
Other liabilities 15,766 723 2,952 2,285 17,090
Deferred income tax liability 108,961 1,126 332 3,055

               
NON-GAAP FINANCIAL MEASURES RECONCILIATION

Funds From Operations (FFO) Including and Excluding Non-Cash Items1

(Dollars in thousands, except per share amounts)
 
Tentative Estimates
Preliminary and Midpoint
Subject to Change YOY
2013   2014   FY2014 - Guidance   Growth
Q3   Q4   FY   Q1   Q2   Q3   Low   High   '13-'14E
Net income attributable to common stockholders $ 118,296 $ 108,440 $ 453,509 $ 121,047 $ 138,398 $ 109,132 $

492,167

  $

500,163

Net income attributable to common stockholders per share $ 0.40 $ 0.37 $ 1.54 $ 0.41 $ 0.47 $ 0.37 $ 1.66 $ 1.69
 
Adjustments:
Depreciation and amortization on real estate assets 175,591 196,520 716,412 192,043 189,219 199,617 780,255 775,255
Depreciation on real estate assets related to noncontrolling interest (2,719 ) (2,674 ) (10,512 ) (2,644 ) (2,661 ) (2,503 ) (10,234 ) (10,734 )
Depreciation on real estate assets related to unconsolidated entities 1,634 1,641 6,543 1,494 1,495 1,471 6,210 5,710
Gain on re-measurement of equity interest upon acquisition, net (1,241 )
Gain on real estate dispositions (1,000 ) (11,889 ) (3,625 ) (16,514 ) (16,514 )
Discontinued operations:
Gain on real estate dispositions (488 ) (1,376 ) (4,059 ) (1,438 ) (45 ) 41 (1,442 ) (1,442 )
Depreciation and amortization on real estate assets 11,354     2,514     47,806     281     1,247     12     1,540     1,540  
Subtotal: FFO add-backs 185,372 196,625 754,949 188,736 177,366 195,013 759,815 753,815
Subtotal: FFO add-backs per share   $ 0.63     $ 0.66     $ 2.56     $ 0.64     $ 0.60     $ 0.66     $ 2.56     $ 2.54        
FFO $ 303,668 $ 305,065 $ 1,208,458 $ 309,783 $ 315,764 $ 304,145 $

1,251,982

$

1,253,978

4 %
FFO per share   $ 1.03     $ 1.03     $ 4.09     $ 1.05     $ 1.07     $ 1.03     $ 4.22     $ 4.23     3 %
 
Adjustments:
Change in fair value of financial instruments 424 449 (68 ) 109 4,595 4,886 4,386
Non-cash income tax (benefit) expense (2,780 ) 1,272 (11,828 ) 3,433 2,974 (1,987 )

3,000

2,400

(Gain) loss on extinguishment of debt, net (189 ) 2,110 1,048 (810 ) 2,924 2,414 4,528 5,028
Merger-related expenses, deal costs and re-audit costs 6,209 4,497 21,560 10,761 9,602 23,401 51,264 58,764
Amortization of other intangibles 256     255     1,022     256     255     255     1,022     1,022  
Subtotal: normalized FFO add-backs 3,496 8,558 12,251 13,572 15,864 28,678

64,700

71,600

Subtotal: normalized FFO add-backs per share   $ 0.01     $ 0.03     $ 0.04     $ 0.05     $ 0.05     $ 0.10     $ 0.22     $ 0.24        
Normalized FFO $ 307,164 $ 313,623 $ 1,220,709 $ 323,355 $ 331,628 $ 332,823 $ 1,316,682 $ 1,325,578 8 %
Normalized FFO per share   $ 1.04     $ 1.06     $ 4.14     $ 1.09     $ 1.12     $ 1.12     $ 4.44     $ 4.47     8 %
 
Non-cash items included in normalized FFO:
Amortization of deferred revenue and lease intangibles, net (4,156 ) (4,634 ) (15,793 ) (5,383 ) (4,496 ) (4,896 ) (18,359 ) (19,359 )
Other non-cash amortization, including fair market value of debt (3,975 ) (3,369 ) (16,745 ) (1,965 ) (963 ) 2,312 (51 ) (551 )
Stock-based compensation 4,210 5,643 20,653 6,044 5,367 5,381 22,000 23,300
Straight-lining of rental income, net (6,835 )   (9,375 )   (30,540 )   (7,914 )   (9,317 )   (12,413 )   (37,767 )   (39,267 )
Subtotal: non-cash items included in normalized FFO (10,756 ) (11,735 ) (42,425 ) (9,218 ) (9,409 ) (9,616 ) (34,177 ) (35,877 )
Subtotal: non-cash items included in normalized FFO per share   $ (0.04 )   $ (0.04 )   $ (0.14 )   $ (0.03 )   $ (0.03 )   $ (0.03 )   $ (0.12 )   $ (0.12 )      
Normalized FFO, excluding non-cash items $ 296,408 $ 301,888 $ 1,178,284 $ 314,137 $ 322,219 $ 323,207 $ 1,282,505 $ 1,289,701 9 %
Normalized FFO per share, excluding non-cash items   $ 1.00     $ 1.02     $ 3.99     $ 1.06     $ 1.09     $ 1.09     $ 4.32     $ 4.35    

9

%
Weighted average diluted shares 295,190 296,047 295,110 296,245 296,504 296,495 296,550     296,550  
 
1 Totals and per share amounts may not add due to rounding. Per share quarterly amounts may not add to annual per share amounts due to material changes in the Company’s weighted average diluted share count, if any.

Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers FFO and normalized FFO to be appropriate measures of operating performance of an equity REIT. In particular, the Company believes that normalized FFO is useful because it allows investors, analysts and Company management to compare the Company’s operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences caused by unanticipated items and other events such as transactions and litigation. In some cases, the Company provides information about identified non-cash components of FFO and normalized FFO because it allows investors, analysts and Company management to assess the impact of those items on the Company’s financial results.

The Company uses the NAREIT definition of FFO. NAREIT defines FFO as net income (computed in accordance with GAAP) excluding gains (or losses) from sales of real estate property, including gain on re-measurement of equity method investments, and impairment write-downs of depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. The Company defines normalized FFO as FFO excluding the following income and expense items (which may be recurring in nature): (a) merger-related costs and expenses, including amortization of intangibles, transition and integration expenses, and deal costs and expenses, including expenses and recoveries relating to acquisition lawsuits; (b) 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, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of the Company’s debt; (c) the non-cash effect of income tax benefits or expenses and derivative transactions that have non-cash mark-to-market impacts on the Company’s income statement; (d) except as specifically stated in the case of guidance, the impact of future acquisitions or divestitures (including pursuant to tenant options to purchase) and capital transactions; (e) the financial impact of contingent consideration, charitable donations made to the Ventas Charitable Foundation, gains and losses for non-operational foreign currency hedge agreements and changes in the fair value of financial instruments; and (f) expenses related to the re-audit and re-review of the Company’s historical financial statements and related matters.

FFO and normalized FFO presented herein may not be identical to FFO and normalized FFO presented by other real estate companies due to the fact that not all real estate companies use the same definitions. FFO and normalized FFO should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company’s financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are FFO and normalized FFO necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and normalized FFO should be examined in conjunction with net income as presented elsewhere herein.

 

NON-GAAP FINANCIAL MEASURES RECONCILIATION

Net Debt to Adjusted Pro Forma EBITDA

 

The following information considers the pro forma effect on net income, interest, depreciation and merger-related expenses and deal costs of the Company’s investments and other capital transactions that were completed during the three months ended September 30, 2014, as if the transactions had been consummated as of the beginning of the period. The following table illustrates net debt to pro forma earnings before interest, taxes, depreciation and amortization (including non-cash stock-based compensation expense), excluding gains or losses on extinguishment of debt, income or loss from noncontrolling interest and unconsolidated entities, merger-related expenses and deal costs, expenses related to the re-audit and re-review of our historical financial statements, net gains on real estate activity and changes in the fair value of financial instruments (including amounts in discontinued operations) (“Adjusted Pro Forma EBITDA”) (dollars in thousands):

 
Net income attributable to common stockholders $ 109,132
Pro forma adjustments for current period investments, capital transactions and dispositions (7,321 )
Pro forma net income for the three months ended September 30, 2014 101,811
Add back:
Pro forma interest 103,739
Pro forma depreciation and amortization 212,072
Stock-based compensation 5,381
Gain on real estate dispositions (3,584 )
Loss on extinguishment of debt, net 2,414
Loss from unconsolidated entities 47
Noncontrolling interest 606
Income tax expense 337
Change in fair value of financial instruments 4,595
Other taxes 245
Pro forma merger-related expenses, deal costs and re-audit costs 21,109  
Adjusted Pro Forma EBITDA 448,772  
Adjusted Pro Forma EBITDA annualized $ 1,795,088  
 
 
As of September 30, 2014:
Debt $ 10,469,106
Cash, adjusted for cash escrows pertaining to debt and debt related to assets held for sale (46,753 )
Net debt $ 10,422,353  
 
Net debt to Adjusted Pro Forma EBITDA 5.8   x

 
NON-GAAP FINANCIAL MEASURES RECONCILIATION 1, 2
NOI by Segment
(In thousands)
         
2014 Quarters 2013 Quarters
Third Second First Fourth Third
Revenues
 
Triple-Net
Triple-Net Rental Income $ 244,206 $ 242,726 $ 237,846 $ 232,873 $ 218,698
 
Medical Office Buildings
Medical Office - Stabilized 103,780 101,795 101,259 100,492 101,023
Medical Office - Lease up 6,767 6,839 7,324 7,529 7,213
Medical Office - Other 6,051   6,256   6,640   6,614   6,543
Total Medical Office Buildings - Rental Income 116,598   114,890   115,223   114,635   114,779
Total Rental Income 360,804 357,616 353,069 347,508 333,477
 
Medical Office Building Services Revenue 5,937   2,722   4,652   4,851   2,530
Total Medical Office Buildings - Revenue 122,535 117,612 119,875 119,486 117,309
 
Triple-Net Services Revenue 1,136 1,145 1,148 1,127 1,116
Non-Segment Services Revenue 500   500   500   500   500
Total Medical Office Building and Other Services Revenue 7,573 4,367 6,300 6,478 4,146
 
Seniors Housing Operating
Seniors Housing - Stabilized 385,511 363,618 361,404 360,064 355,294
Seniors Housing - Lease up 10,109 10,227 9,018 5,422 3,152
Seniors Housing - Other 627   628   639   643   666
Total Resident Fees and Services 396,247 374,473 371,061 366,129 359,112
 
Non-Segment Income from Loans and Investments 14,043   14,625   10,767   12,924   14,448
Total Revenues, excluding Interest and Other Income 778,667 751,081 741,197 733,039 711,183
 
Property-Level Operating Expenses
 
Medical Office Buildings
Medical Office - Stabilized 34,807 33,641 33,545 32,296 34,646
Medical Office - Lease up 2,738 2,733 2,783 2,620 2,830
Medical Office - Other 3,602   2,961   3,017   3,022   3,090
Total Medical Office Buildings 41,147 39,335 39,345 37,938 40,566
 
Seniors Housing Operating
Seniors Housing - Stabilized 256,702 241,380 241,298 245,404 241,319
Seniors Housing - Lease up 7,972 7,473 6,420 4,145 2,392
Seniors Housing - Other 600   571   577   574   605
Total Seniors Housing 265,274   249,424   248,295   250,123   244,316
Total Property-Level Operating Expenses 306,421 288,759 287,640 288,061 284,882
 
Medical Office Building Services Costs 4,568 1,626 3,371 3,358 1,651
 
Net Operating Income
 
Triple-Net
Triple-Net Properties 244,206 242,726 237,846 232,873 218,698
Triple-Net Services Revenue 1,136   1,145   1,148   1,127   1,116
Total Triple-Net 245,342 243,871 238,994 234,000 219,814
 
Medical Office Buildings
Medical Office - Stabilized 68,973 68,154 67,714 68,196 66,377
Medical Office - Lease up 4,029 4,106 4,541 4,909 4,383
Medical Office - Other 2,449 3,295 3,623 3,592 3,453
Medical Office Buildings Services 1,369   1,096   1,281   1,493   879
Total Medical Office Buildings 76,820 76,651 77,159 78,190 75,092
 
Seniors Housing Operating
Seniors Housing - Stabilized 128,809 122,238 120,106 114,660 113,975
Seniors Housing - Lease up 2,137 2,754 2,598 1,277 760
Seniors Housing - Other 27   57   62   69   61
Total Seniors Housing 130,973 125,049 122,766 116,006 114,796
Non-Segment 14,543   15,125   11,267   13,424   14,948
Net Operating Income $ 467,678   $ 460,696   $ 450,186   $ 441,620   $ 424,650
 
1 Amounts above are adjusted to exclude discontinued operations for all periods presented.
2 Amounts above are not restated for changes between categories from quarter to quarter.

 
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(Dollars in thousands)
 
Seniors Housing Operating Portfolio Local Currency NOI
  For the Three Months Ended
September 30,
2014   2013
 
Net Operating Income $ 130,973 $ 114,796
 
Less:
NOI Related to Properties Classified as Held for Sale 27 60
Foreign Currency Adjustment (1,213 ) (254 )
(1,186 ) (194 )
 
Local Currency NOI as Reported $ 132,159   $ 114,990  
 
Percentage Increase 14.9 %
 
Seniors Housing Operating Portfolio Same-Store Stable Local Currency NOI
For the Three Months Ended
September 30,
2014 2013
 
Net Operating Income $ 130,973 $ 114,796
 
Less:
NOI Not Included in Same-Store Stable 19,449 7,042
Foreign Currency Adjustment (1,213 ) (254 )
18,236   6,788  
 
Same-Store Stable Local Currency NOI as Reported $ 112,737   $ 108,008  
 
Percentage Increase 4.4 %

 
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(Dollars in thousands)
 
Seniors Housing Operating Portfolio Local Currency NOI
12 Stable Communities Located in Canada and Managed by Sunrise
  For the Three   For the Three
Months Ended Months Ended
September 30, 2014 June 30, 2014
 
Net Operating Income $ 130,973 $ 125,049
 
Less:

U.S. NOI and Canadian NOI Not Managed by Sunrise

125,183

119,158
Foreign Currency Adjustment (1,213 ) (533 )
123,970   118,625  
 
Local Currency NOI - 12 Stable Communities Located in Canada and Managed by Sunrise $ 7,003   $ 6,424  
 
Percentage Increase 9.0 %
 
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(Dollars in thousands)
 
Seniors Housing Operating Portfolio Local Currency NOI
12 Stable Communities Located in Canada and Managed by Sunrise
  For the Three Months Ended
September 30,
2014   2013
 
Net Operating Income $ 130,973 $ 114,796
 
Less:

U.S. NOI and Canadian NOI Not Managed by Sunrise

125,183

108,246
Foreign Currency Adjustment (1,213 ) (254 )
123,970   107,992  
 
Local Currency NOI - 12 Stable Communities Located in Canada and Managed by Sunrise $ 7,003   $ 6,804  
 
Percentage Increase 2.9 %

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Contacts

Ventas, Inc.
Lori B. Wittman, (877) 4-VENTAS

Contacts

Ventas, Inc.
Lori B. Wittman, (877) 4-VENTAS