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Ventas Reports Ten Percent Rise in 2007 Normalized FFO Per Common Share to $2.69
Date:2/13/2008

Ventas's 2007 Investments Totaled Approximately $2.2 Billion Ventas Expects 2008 Normalized FFO Per Common Share to Range between $2.75

and $2.82 2008 FIRST QUARTER DIVIDEND INCREASES EIGHT PERCENT TO $0.5125 PER SHARE

LOUISVILLE, Ky., Feb. 13 /PRNewswire-FirstCall/ -- Ventas, Inc. (NYSE: VTR) ("Ventas" or the "Company") said today that full year 2007 normalized Funds from Operations ("FFO") per diluted common share rose ten percent to $2.69, compared to $2.44 last year. Normalized FFO increased 30 percent in 2007 to $330.6 million, compared to $255.2 million in 2006.

Normalized FFO for the fourth quarter of 2007 rose 23 percent to $87.7 million, versus $71.2 million for the fourth quarter of 2006. Normalized FFO per diluted common share in the fourth quarter of 2007 decreased one percent to $0.66, from $0.67 per diluted common share for the comparable 2006 period. FFO per diluted common share, as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), in the fourth quarter of 2007 increased nine percent to $0.75, from $0.69 per diluted common share for the comparable 2006 period. Both periods reflect the increase in annual rent from the Company's tenant Kindred Healthcare, Inc. (NYSE: KND) ("Kindred") that became effective in the third quarter of 2006.

During the fourth quarter and year, the Company benefited from both internal growth and accretive acquisitions, offset by the Company's increase in outstanding shares and general and administrative costs, which are principally related to Ventas's acquisition of Sunrise Senior Living Real Estate Investment Trust ("Sunrise REIT") in 2007.

Weighted average diluted common shares outstanding in the fous, 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. These 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 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 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") and Alterra Healthcare Corporation (together with its subsidiaries, "Alterra") 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 and Alterra; (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 qualified 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, 2007 and for the year ending December 31, 2008; (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 timely delivery of accurate property-level financial results for the Company's properties and the Company's ability to timely and fully realize the expected revenues and cost savings therefrom; (q) factors causing volatility in the Company's 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; (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; and (u) the impact of the Sunrise Senior Living, Inc. strategic review process and accounting, legal and regulatory issues. Many of these factors are beyond the control of the Company and its management.
CONSOLIDATED BALANCE SHEETS As of December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007 and
December 31, 2006

(In thousands, except per share amounts)

December 31, September 30, June 30, March 31, December 31,

2007 2007 2007 2007 2006

Assets

Real estate

investments:

Land $572,092 $564,462 $551,463 $359,104 $357,804

Buildings

and

improve-

ments 5,718,273 5,548,290 5,500,868 3,386,697 3,350,033

6,290,365 6,112,752 6,052,331 3,745,801 3,707,837

Accumulated

depreciation (816,352) (765,598) (718,342) (692,402) (659,584)

Net real

estate

property 5,474,013 5,347,154 5,333,989 3,053,399 3,048,253

Loans

receivable,

net 19,998 35,556 34,792 35,554 35,647

Net real

estate

investments 5,494,011 5,382,710 5,368,781 3,088,953 3,083,900

Cash and cash

equivalents 28,334 28,573 30,138 - 1,246

Escrow deposits

and restricted

cash 54,077 89,807 99,058 80,039 80,039

Deferred

financing

costs, net 22,836 22,280 23,202 17,984 18,415

Notes

receivable-

related

parties 2,092 2,144 2,126 2,484 2,466

Other 115,278 136,106 148,148 96,707 67,734

Total

assets $5,716,628 $5,661,620 $5,671,453 $3,286,167 $3,253,800

Liabilities

and

stockholders'

equity

Liabilities:

Senior notes

payable and

other debt $3,360,499 $3,267,705 $3,284,642 $2,370,418 $2,329,053

Deferred

revenue 9,065 9,665 10,219 7,607 8,194

Accrued

dividend - - - - 41,949

Accrued

interest 20,790 46,752 21,157 45,696 19,929

Accounts

payable and

other accrued

liabilities 173,576 152,753 140,493 122,155 114,012

Deferred

income taxes 297,590 313,987 309,215 30,394 30,394

Total

liabilities 3,861,520 3,790,862 3,765,726 2,576,270 2,543,531

Minority

interest 31,454 26,781 26,622 983 393

Commitments and

contingencies

Stockholders' equity:

Preferred stock,

10,000 shares

authorized,

unissued - - - - -

Common stock,

$0.25 par value;

133,651, 133,451,

133,366, 106,314

and 106,137 shares

issued at

December 31,

2007,

September 30,

2007,

June 30,

2007, March 31,

2007 and December

31, 2006,

respectively 33,416 33,371 33,350 26,587 26,545

Capital in

excess of

par value 1,821,294 1,817,809 1,814,637 771,004 766,470

Accumulated

other

comprehensive

income 17,416 6,652 9,482 914 1,037

Retained

earnings

(deficit) (47,846) (13,761) 21,636 (89,591) (84,176)

Treasury

stock, 14, 3,

0, 0 and 0

shares at

December 31,

2007, September

30, 2007,

June 30, 2007,

March 31,

2007 and

December 31,

2006,

respectively (626) (94) - - -

Total

stockholders'

equity 1,823,654 1,843,977 1,879,105 708,914 709,876

Total

liabilities

and

stockholders'

equity $5,716,628 $5,661,620 $5,671,453 $3,286,167 $3,253,800

CONSOLIDATED STATEMENTS OF INCOME

For the Three Months and Years Ended December 31, 2007 and 2006

(In thousands, except per share amounts)

For the Three Months For the Year Ended

Ended December 31, December 31,

2007 2006 2007 2006

Revenues:

Rental income $124,611 $113,408 $483,985 $405,952

Resident fees and services 106,888 - 282,226 -

Interest income from loans

receivable 471 2,641 2,586 7,014

Interest and other income 583 1,888 2,994 2,886

Total revenues 232,553 117,937 771,791 415,852

Expenses:

Interest 55,447 38,582 204,218 136,544

Depreciation and amortization 72,545 31,792 234,061 117,172

Property-level operating expenses 75,395 1,168 198,125 3,171

General, administrative and

professional fees (including non-

cash stock-based compensation

expense of $1,891 and $810 for

the three months ended 2007 and

2006, respectively, and $7,493

and $3,046 for the year ended

2007 and 2006, respectively) 11,506 6,679 36,425 26,136

Foreign currency gain (35) - (24,280) -

Merger-related expenses 652 - 2,979 -

Rent reset costs - - - 7,361

Reversal of contingent liability - - - (1,769)

(Gain) loss on extinguishment of

debt - - (88) 1,273

Total expenses 215,510 78,221 651,440 289,888

Income before income taxes,

minority interest and

discontinued operations 17,043 39,716 120,351 125,964

Income tax benefit 12,968 - 28,042 -

Income before minority interest

and discontinued operations 30,011 39,716 148,393 125,964

Minority interest, net of tax 610 - 1,698 -

Income from continuing operations 29,401 39,716 146,695 125,964

Discontinued operations - 1,081 135,623 5,466

Net income 29,401 40,797 282,318 131,430

Preferred stock dividends and

issuance costs - - 5,199 -

Net income available to common

stockholders $29,401 $40,797 $277,119 $131,430

Earnings per common share:

Basic:

Income from continuing

operations applicable to

common shares $0.22 $0.38 $1.15 $1.21

Discontinued operations - 0.01 1.11 0.05

Net income available to common

stockholders $0.22 $0.39 $2.26 $1.26

Diluted:

Income from continuing operations

applicable to common shares $0.22 $0.38 $1.15 $1.20

Discontinued operations - 0.01 1.10 0.05

Net income available to common

stockholders $0.22 $0.39 $2.25 $1.25

Weighted average shares used in

computing earnings per common share:

Basic 133,300 105,155 122,597 104,206

Diluted 133,685 105,667 123,012 104,731

Dividends declared per common share $0.475 $0.395 $1.90 $1.58

QUARTERLY CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

2006

2007 Quarters Fourth

Fourth Third Second First Quarter

Revenues:

Rental income $124,611 $121,167 $120,057 $118,150 $113,408

Resident fees and

services 106,888 103,938 71,400 - -

Interest income from

loans receivable 471 477 815 823 2,641

Interest and other

income 583 712 1,450 249 1,888

Total revenues 232,553 226,294 193,722 119,222 117,937

Expenses:

Interest 55,447 54,092 55,148 39,531 38,582

Depreciation and

amortization 72,545 70,716 57,994 32,806 31,792

Property-level operating

expenses 75,395 71,382 50,407 941 1,168

General, administrative

and professional fees

(including non-cash

stock-based compensation

expense of $1,891,

$1,768, $1,820, $2,014

and $810, respectively) 11,506 9,315 8,023 7,581 6,679

Foreign currency (gain)

loss (35) 116 (18,575) (5,786) -

Merger-related expenses 652 1,535 792 - -

Gain on extinguishment

of debt - (88) - - -

Total expenses 215,510 207,068 153,789 75,073 78,221

Income before income

taxes, minority

interest and

discontinued operations 17,043 19,226 39,933 44,149 39,716

Income tax benefit 12,968 9,463 5,611 - -

Income before minority

interest and

discontinued operations 30,011 28,689 45,544 44,149 39,716

Minority interest, net

of tax 610 675 408 5 -

Income from continuing

operations 29,401 28,014 45,136 44,144 39,716

Discontinued operations - - 134,661 962 1,081

Net income 29,401 28,014 179,797 45,106 40,797

Preferred stock

dividends and issuance

costs - - 5,199 - -

Net income available to

common stockholders $29,401 $28,014 $174,598 $45,106 $40,797

Earnings per common

share:

Basic:

Income from continuing

operations applicable

to common shares $0.22 $0.21 $0.34 $0.42 $0.38

Discontinued operations - - 1.15 0.01 0.01

Net income available to

common stockholders $0.22 $0.21 $1.49 $0.43 $0.39

Diluted:

Income from continuing

operations applicable

to common shares $0.22 $0.21 $0.34 $0.41 $0.38

Discontinued operations - - 1.14 0.01 0.01

Net income available to

common stockholders $0.22 $0.21 $1.48 $0.42 $0.39

Shares used in computing

earnings per common share:

Basic 133,300 133,205 117,419 106,044 105,155

Diluted 133,685 133,503 117,825 106,775 105,667

Dividends declared per

common share $0.475 $0.475 $0.475 $0.475 $0.395

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2007 and 2006

(In thousands)

2007 2006

Cash flows from operating activities:

Net income $282,318 $131,430

Adjustments to reconcile net income

to net cash provided by operating

activities:

Depreciation and amortization

(including amounts in discontinued

operations) 235,045 119,653

Amortization of deferred revenue and

lease intangibles, net (9,819) (2,412)

Other amortization expenses 2,456 3,253

Stock-based compensation 7,493 3,046

Straight-lining of rental income (17,311) (19,963)

Gain on sale of assets (including

amounts in discontinued operations) (129,478) -

Net gain on sale of marketable equity

securities (864) (1,379)

Loss on extinguishment of debt - 1,273

Reversal of contingent liability - (1,769)

Loss on bridge financing 2,550 -

Income tax benefit (28,042) -

Other 222 488

Changes in operating assets and

liabilities:

Decrease (increase) in other assets 45,712 (41,684)

(Decrease) increase in accrued

interest (4,906) 5,511

Increase in other liabilities 14,434 41,420

Net cash provided by operating activities 399,810 238,867

Cash flows from investing activities:

Net investment in real estate

property (1,348,354) (490,311)

Investment in loans receivable - (191,068)

Proceeds from real estate disposals 157,400 rth quarter of 2007 increased by 28.0 million shares to 133.7 million shares, from 105.7 million shares for the comparable period in 2006.

Normalized FFO for the three months and year ended December 31, 2007 excludes the net benefit (totaling $12.7 million and $47.1 million, respectively) of gains from merger-related currency transactions, income taxes and a gain on the sale of securities, offset by merger-related costs.

Funds Available for Distribution ("FAD") for the fourth quarter of 2007 rose 22 percent to $80.4 million, versus $65.9 million for the fourth quarter of 2006. FAD per diluted common share in the fourth quarter of 2007 decreased three percent to $0.60, from $0.62 per diluted common share for the comparable 2006 period. FAD increased 30 percent in 2007 to $306.9 million, compared to $234.8 million in 2006. FAD per diluted common share rose 11 percent in 2007 to $2.49, from $2.25 in 2006. Year-over-year FAD per diluted common share changed primarily due to the Company's increase in outstanding shares and additional capital expenditures as a result of the Sunrise REIT acquisition and the Company's growing medical office building ("MOB") portfolio, partially offset by higher cash rent on leases that provide for straight-lining of rental income.

"As the top performing healthcare REIT in 2007, Ventas had another excellent year, highlighted by the successful completion of our important Sunrise REIT acquisition. We delivered 12 percent total return to shareholders, built a premier diversified portfolio of seniors housing and healthcare assets and continued to strengthen our high performing team," Ventas Chairman, President and Chief Executive Officer Debra A. Cafaro said. "Our assets are performing well and our balance sheet and liquidity position are strong, which should provide us with excellent opportunities going forward.

"We started 2008 on an outstanding note, with an investment grade credit rating from Standard & Poor's. Th -

Proceeds from sale of securities 7,773 -

Proceeds from loans receivable 15,803 195,411

Capital expenditures (6,372) (368)

Escrow funds returned from an Internal

Revenue Code Section 1031 exchange - 9,902

Other 374 (5,540)

Net cash used in investing activities (1,173,376) (481,974)

Cash flows from financing activities:

Net change in borrowings under

unsecured revolving credit facility 92,300 57,000

Net change in borrowings under

secured revolving credit facility - (89,200)

Net change in borrowings under

Canadian credit facility 84,286 -

Issuance of bridge financing 1,230,000 -

Repayment of bridge financing (1,230,000) -

Proceeds from debt 53,832 449,005

Repayment of debt (184,613) (16,084)

Debt and preferred stock issuance costs (4,300) -

Payment of deferred financing costs (7,856) (4,876)

Issuance of common stock 1,047,318 831

Cash distribution to preferred

stockholders (3,449) -

Cash distribution to common stockholders (282,739) (160,598)

Other 10,870 6,634

Net cash provided by financing activities 805,649 242,712

Net increase (decrease) in cash and

cash equivalents 32,083 (395)

Effect of foreign currency translation on

cash and cash equivalents (4,995) -

Cash and cash equivalents at

beginning of period 1,246 1,641

Cash and cash equivalents at end of period $28,334 $1,246

QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

2006

2007 Quarters Fourth

Fourth Third Second First Quarter

Cash flows from

operating activities:

Net income $29,401 $28,014 $179,797 $45,106 $40,797

Adjustments to

reconcile net income

to net cash provided

by operating activities:

Depreciation and

amortization

(including amounts in

discontinued

operations) 72,544 70,716 58,352 33,433 32,421

Amortization of

deferred revenue and

lease intangibles,

net (3,190) (3,027) (2,998) (604) (603)

Other amortization

expenses 475 322 549 1,110 933

Stock-based

compensation 1,891 1,768 1,820 2,014 768

Straight-lining of

rental income (4,379) (4,326) (4,337) (4,269) (5,228)

Gain on sale of assets

(including amounts in

discontinued

operations) - - (129,478) - -

Net gain on sale of

marketable equity

securities - - (864) - (1,379)

Loss on bridge

financing - - 2,550 - -

Income tax

benefit (12,968) (9,463) (5,611) - -

Realized gain on

foreign currency

hedge - - 5,786 - -

Unrealized gain on

foreign currency hedge - - - (5,786) -

Other (264) 463 (11) 34 (276)

Changes in operating

assets and

liabilities:

Decrease (increase)

in other assets 29,386 25,972 6,931 (16,577) (22,863)

(Decrease) increase

in accrued

interest (27,534) 25,125 (28,245) 25,748 (15,531)

(Decrease) increase

in other

liabilities (33,525) 46,570 (6,542) 7,931 31,445

Net cash provided

by operating

activities 51,837 182,134 77,699 88,140 60,484

Cash flows from

investing activities:

Net investment in real

estate property (54,604) (72,835) (1,190,564) (30,351) (426,278)

Investment in loans

receivable - - - - (34,219)

Proceeds from real

estate disposals - - 157,400 - -

Proceeds from sale of

securities - - 2,701 5,072 -

Proceeds from loans

receivable (525) 643 15,575 110 191,167

Capital expenditures (2,928) (2,242) (1,166) (36) (89)

Other 52 (18) 358 (18) 52

Net cash used in

investing

activities (58,005) (74,452) (1,015,696) (25,223) (269,367)

Cash flows from

financing activities:

Net change in

borrowings under

unsecured revolving

credit facility 45,900 (109,800) 4,700 151,500 (15,300)

Net change in

borrowings under

Canadian credit

facility 127 84,159 - - -

Issuance of bridge

financing - - 1,230,000 - -

Repayment of bridge

financing - - (1,230,000) - -

Proceeds from debt 44,422 1,095 8,315 - 225,400

Repayment of debt (40,838) (12,059) (14,446) (117,270) (3,087)

Debt and preferred

stock issuance costs - - (4,300) - -

Payment of deferred

financing costs (2,322) (131) (4,991) (412) (1,122)

Issuance of common

stock 1,589 (250) 1,045,979 - -

Cash distributions to

preferred stockholders - - (3,449) - -

Cash distributions to

common stockholders (63,486) (63,411) (63,371) (92,471) -

Other 11,165 2,099 3,116 (5,510) 2,303

Net cash (used in)

provided by

financing

activities (3,443) (98,298) 971,553 (64,163) 208,194

Net (decrease) increase

in cash and cash

equivalents (9,611) 9,384 33,556 (1,246) (689)

Effect of foreign

currency translation

on cash and cash

equivalents 9,372 (10,949) (3,418) - -

Cash and cash

equivalents at

beginning of period 28,573 30,138 - 1,246 1,935

Cash and cash

equivalents at end of

period $28,334 $28,573 $30,138 $- $1,246

FUNDS FROM OPERATIONS, NORMALIZED FFO AND FUNDS AVAILABLE

FOR DISTRIBUTION

(In thousands, except per share amounts)

2006

2007 Quarters Fourth

Fourth Third Second First Quarter

Net income available to

common stockholders $29,401 $28,014 $174,598 $45,106 $40,797

Adjustments:

Depreciation and

amortization on real

estate assets 72,367 70,549 57,827 32,209 31,172

Depreciation on real

estate assets related

to minority interest (1,391) (1,420) (938) - -

Discontinued operations:

Gain on sale of real estate

assets - - (129,478) - -

Depreciation and

amortization on real

estate assets - - 203 609 612

FFO 100,377 97,143 102,212 77,924 72,581

Gain on foreign currency

hedge - - (18,528) (5,786) -

Preferred stock issuance

costs - - 1,750 - -

Bridge loan fee - - 2,550 - -

Merger-related expenses 652 1,535 792 - -

Gain on sale of securities - - (864) - (1,379)

Income tax benefit (13,342) (9,897) (5,856) - -

Gain on extinguishment of

debt - (88) - - -

Normalized FFO 87,687 88,693 82,056 72,138 71,202

Straight-lining of rental

income (4,379) (4,326) (4,337) (4,269) (5,228)

Capital expenditures (2,927) (2,243) (1,166) (36) (89)

FAD $80,381 $82,124 $76,553 $67,833 $65,885

Per diluted share:

Net income available to

common stockholders $0.22 $0.21 $1.48 $0.42 $0.39

Adjustments:

Depreciation and

amortization on real

estate assets 0.54 0.53 0.49 0.31 0.30

Depreciation on real estate

assets related to minority

interest (0.01) (0.01) (0.01) - -

Discontinued operations:

Gain on sale of real estate

assets - - (1.10) - -

Depreciation and

amortization on real estate

assets - - - 0.01 0.01

FFO 0.75 0.73 0.87 0.73 0.69

Gain on foreign currency

hedge - - (0.16) (0.05) -

Preferred stock issuance

costs - - 0.01 - -

Bridge loan fee - - 0.02 - -

Merger-related expenses 0.00 0.01 0.01 - -

Gain on sale of securities - - (0.01) - (0.01)

Income tax benefit (0.10) (0.07) (0.05) - -

Gain on extinguishment of

debt - - - - -

Normalized FFO 0.66 0.66 0.70 0.68 0.67

Straight-lining of rental

income (0.03) (0.03) (0.04) (0.04) (0.05)

Capital expenditures (0.02) (0.02) (0.01) (0.00) (0.00)

FAD $0.60 $0.62 $0.65 $0.64 $0.62

Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. To overcome this problem, the Company considers FFO and FAD appropriate measures of performance of an equity REIT. 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 property, 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. FAD represents normalized FFO excluding straight-line rental adjustments and capital expenditures.

FFO and FAD presented herein are not necessarily comparable to FFO and FAD presented by other real estate companies due to the fact that not all real estate companies use the same definitions. Neither FFO nor FAD should be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company's financial performance or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is FFO or FAD 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 FAD should be examined in conjunction with net income as presented elsewhere in this press release.

Normalized FFO and FAD Guidance for the Year Ending December 31, 2008

The following table illustrates the Company's normalized FFO and FAD guidance per diluted common share for the year ending December 31, 2008:

GUIDANCE

For the Year

Ending

December 31, 2008

Net income available to common stockholders $1.36 - $1.43

Depreciation and amortization on real estate

assets and depreciation related to

minority interest 1.70 - 1.70

FFO 3.06 - 3.13

Income tax benefit, gain/loss on

foreign currency, and merger-related

expenses, net (0.31) - (0.31)

Normalized FFO 2.75 - 2.82

Straight-lining of rental income and

capital expenditures (0.19) - (0.19)

FAD $2.56 - $2.63

Net Debt to Pro Forma EBITDA

The following pro forma information considers the effect on net income, interest and depreciation of the Company's investments and other capital transactions that were completed during the year ended December 31, 2007, 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 ("EBITDA") (dollars in thousands):

Pro forma net income for the twelve months ended

December 31, 2007 $267,832

Add back:

Pro forma interest (including discontinued

operations) 228,248

Pro forma depreciation and amortization (including

discontinued operations) 291,604

Stock-based compensation 7,493

Gain on extinguishment of debt (88)

Pro forma income tax benefit (54,592)

Pro forma minority interest 2,374

Net gain on real estate disposals (129,478)

Other taxes 1,489

Pro forma EBITDA $614,882

As of December 31, 2007:

Debt $3,360,499

Cash (37,155)

Net debt $3,323,344

Net debt to pro forma EBITDA 5.4 x

The Company considers EBITDA a profitability measure which indicates the Company's ability to service debt. The Company considers the net debt to pro forma EBITDA ratio a useful measure to evaluate the Company's ability to pay its indebtedness. EBITDA presented herein is not necessarily comparable to EBITDA presented by other companies due to the fact that not all companies use the same definition. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company's financial performance or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is EBITDA 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, EBITDA should be examined in conjunction with net income as presented elsewhere in this press release.

Scheduled Maturities of Borrowing Arrangements

The Company's indebtedness has the following maturities (in thousands):

As of December

31, 2007

2008 $193,101

2009 605,762

2010 282,138

2011 303,191

2012 527,221

Thereafter 1,436,263

Total maturities 3,347,676

Unamortized fair value adjustment 19,669

Unamortized discounts (6,846)

Senior notes payable and other debt $3,360,499

Sunrise's pro rata share of total maturities is approximately $157.1 million.

Non-GAAP Financial Measures Reconciliation (In thousands, except per share

amounts)

For the Year Ended

December 31,

2007 2006

Net income available to common

stockholders $277,119 $131,430

Adjustments:

Depreciation and amortization on real

estate assets 232,952 115,788

Depreciation on real estate assets

related to minority interest (3,749) -

Discontinued operations:

Gain on sale of real estate assets (129,478) -

Depreciation and amortization on real

estate assets is "BBB-" rating -- our second -- demonstrates the benefits of our financial discipline and our high quality diversified portfolio," Cafaro added. "Our investment grade rating should enhance our access to capital and decrease our borrowing costs, both of which should benefit our shareholders."

BOARD INCREASES QUARTERLY DIVIDEND BY EIGHT PERCENT

Ventas also said that its Board of Directors voted to increase the Company's first quarter 2008 dividend to $0.5125 per share, an increase of eight percent from the 2007 quarterly dividend of $0.475 per share. The first quarter dividend is payable March 28, 2008 to stockholders of record on March 6, 2008.

"We are pleased to share our cash flow growth with our stockholders by increasing our dividend to an annualized rate of $2.05 per share," Cafaro stated.

SUNRISE PORTFOLIO

Total Portfolio

The Company's senior living operating portfolio contains 79 communities in North America that are managed by Sunrise Senior Living, Inc. (NYSE: SRZ) ("Sunrise"). Ventas owns 100 percent of 18 of these communities and has a partnership share of between 75 percent and 85 percent in the remaining 61 communities, with Sunrise owning the minority interest in those 61 communities.

Ventas's partnership share of Net Operating Income after management fees ("NOI") was $28.9 million for those 79 communities for the three months ended December 31, 2007. Total community NOI was $33.7 million for the same period.

72 Stabilized Communities

For the 72 stabilized Sunrise communities, Ventas's share of NOI was $28.0 million for the three months ended December 31, 2007. Total community NOI for the stabilized assets was $32.6 million for the same period. Revenues increased two percent versus third quarter results at the stabilized communities.

Average occupancy of 93 percent and strong revenue performance for these 72 stabilized communities during the fourth quarter demonstrate the quality an 812 2,450

FFO 377,656 249,668

Gain on foreign currency hedge (24,314) -

Preferred stock issuance costs 1,750 -

Bridge loan fee 2,550 -

Merger-related expenses 2,979 -

Gain on sale of securities (864) (1,379)

Income tax benefit (29,095) -

Rent reset costs - 7,361

Reversal of contingent liability - (1,769)

(Gain) loss on extinguishment of debt (88) 1,273

Normalized FFO 330,574 255,154

Straight-lining of rental income (17,311) (19,963)

Capital expenditures (6,372) (368)

FAD $306,891 $234,823

Per diluted share:

Net income available to common

stockholders $2.25 $1.25

Adjustments:

Depreciation and amortization on real

estate assets 1.89 1.11

Depreciation on real estate assets

related to minority interest (0.03) -

Discontinued operations:

Gain on sale of real estate assets (1.05) -

Depreciation and amortization on real

estate assets 0.01 0.02

FFO 3.07 2.38

Gain on foreign currency hedge (0.20) -

Preferred stock issuance costs 0.01 -

Bridge loan fee 0.02 -

Merger-related expenses 0.02 -

Gain on sale of securities (0.01) (0.01)

Income tax benefit (0.24) -

Rent reset costs - 0.07

Reversal of contingent liability - (0.02)

Loss on extinguishment of debt - 0.01

Normalized FFO 2.69 2.44

Straight-lining of rental income (0.14) (0.19)

Capital expenditures (0.05) -

FAD $2.49 $2.25

Contacts: Debra A. Cafaro

Chairman, President and CEO

or

Richard A. Schweinhart

Executive Vice President and CFO

(502) 357-9000

d strength of the Sunrise portfolio and the market for seniors housing.

Seven Communities in Lease-up

Ventas's Sunrise portfolio also contains seven recently developed communities that are in lease-up, including the Company's newly acquired Sunrise at Thorne Mills on Steeles senior living community in Vaughan, Ontario ("Steeles"). Ventas's share of NOI at the development assets was $0.9 million for the three months ended December 31, 2007.

GAAP NET INCOME

Net income available to common stockholders for the quarter ended December 31, 2007 was $29.4 million, or $0.22 per diluted common share, compared with net income for the quarter ended December 31, 2006 of $40.8 million, or $0.39 per diluted common share, after discontinued operations of $1.1 million.

Net income available to common stockholders for the year ended December 31, 2007 was $277.1 million, or $2.25 per diluted common share, after discontinued operations of $135.6 million, compared with net income for the year ended December 31, 2006 of $131.4 million, or $1.25 per diluted common share, after discontinued operations of $5.5 million.

FOURTH QUARTER HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS

-- Ventas's 2007 normalized FFO growth per diluted common share of

ten percent was the sixth consecutive year of double-digit growth.

-- Ventas was the only REIT in the top five performers of the MSCI US REIT

Index for each of the one-, three-, five- and ten-year periods ended

December 31, 2007. For the five-year period ended December 31, 2007,

Ventas delivered a 39 percent compound annual total shareholder return

("TSR"), making it the third best performing REIT in the MSCI US REIT

Index, which had an annualized TSR of 18 percent for the same period.

-- Ventas's investments for the year totaled approximately $2.2 billion,

including the Sunrise REIT acquisition and over $150 million of MOB

acquisitions.

-- Ventas's MOB portfolio now consists of over one million square feet,

and the Company has existing partnerships with four quality MOB

developer-operators.

-- During 2007, Ventas sold one hospital and 21 skilled nursing facilities

to Kindred and received $175.0 million in total cash proceeds,

representing a six percent capitalization rate on rent.

-- As previously announced, Ventas prevailed in a preliminary phase of its

lawsuit against HCP, Inc. ("HCP") pending in the United States District

Court for the Western District of Kentucky, when the Court denied HCP's

motion to dismiss Ventas's lawsuit. The litigation arises from the

Company's 2007 acquisition of Sunrise REIT. The parties have commenced

the discovery phase of the litigation.

Portfolio and Performance Highlights

-- Ventas acquired an 80 percent interest in Steeles. The Steeles

community contains 229 units, with capacity for 256 residents.

Residents began moving in during September 2007, and the community is

now home to 79 new residents and is approximately 31 percent occupied.

It should produce positive NOI by the second half of 2008. The

expected unlevered yield on stabilization should approximate 8 percent

to 8.5 percent.

-- In January 2008, Ventas purchased one seniors housing community located

in Texas for $5.1 million and leased it to an affiliate of Capital

Senior Living Corporation. The asset contains 47 units. The lease

provides Ventas with an initial cash yield of approximately

7.75 percent and an expected unlevered yield over the life of the lease

of approximately 8.6 percent.

-- With these acquisitions and divestiture activity:

-- annualized revenue from Kindred represents approximately 27 percent

of the Company's annualized total revenues;

-- annualized revenue from private-pay, non-government-reimbursed

assets represents 69 percent of the Company's annualized total

revenues, computed on the same pro forma basis;

-- annualized revenue from the Company's operating assets, where rent

is paid directly from residents of the Company's operating seniors

housing communities and MOB tenants, constitutes approximately

45 percent of its annualized total revenues, computed on the same

pro forma basis;

-- assets leased to Kindred represent approximately 15 percent of the

Company's total real estate assets (measured on a gross book value

basis) on its consolidated balance sheet; and

-- annualized revenue for the above computations is determined by

excluding the Company's partner's share in revenue in the numerator

and the denominator.

-- The 203 skilled nursing facilities and hospitals leased by the Company

to Kindred produced EBITDARM (earnings before interest, taxes,

depreciation, amortization, rent and management fees) to actual cash

rent coverage of 2.2 times for the trailing 12-month period ended

September 30, 2007 (the latest date available).

-- Supplemental information regarding Ventas's portfolio of 520 seniors

housing and healthcare assets is available on the Company's website

under the "For Investors" section or at

http://www.ventasreit.com/investors/supplemental.asp.

Balance Sheet, Financing & Capital Markets

-- Ventas's equity market capitalization at December 31, 2007 was

$6.0 billion, an increase from $4.5 billion at December 31, 2006.

-- In January 2008, Ventas raised $191.9 million through the issuance and

sale of 4.5 million shares of its common stock at $42.78 per share,

after deducting the underwriter's discount.

-- Also, in January 2008, Ventas increased to Cdn $105.0 million the

borrowing capacity under its Canadian unsecured revolving credit

facility (the "Canadian Revolving Credit Facility"), from

$90.0 million. Ventas used the additional proceeds to pay off

construction debt that was maturing on one of its Canadian Sunrise

facilities.

-- In February 2008, Standard & Poor's upgraded Ventas's unsecured debt

rating to BBB- from BB+, with a stable outlook. Ventas's unsecured

debt is currently rated BBB- (stable) by Fitch, BBB- (stable) by

Standard & Poor's and Ba1 (stable) by Moody's Investors Service.

-- Liquidity Updates

-- At February 13, 2008, the Company had substantially all of its

$600.0 million unsecured U.S. revolving credit facility available

and Cdn $14.1 million of undrawn availability under the Canadian

Revolving Credit Facility and held $82.4 million in short-term cash

investments.

-- The Company's debt to total capitalization at December 31, 2007 was

approximately 36 percent.

Additional News

-- Skilled nursing facilities received a 3.3 percent increase in Medicare

reimbursement for fiscal year 2008. Long-term acute care hospitals

("LTACs") were the subject of favorable legislation passed in

December 2007 that, among other things, suspends the 25-percent rule

for freestanding LTACs for three years, limits future supply of LTACs

and calls for further review of patient certification criteria for

LTACs. The Centers for Medicare and Medicaid Services (CMS) recently

proposed a three percent net rate increase for freestanding LTACs for

fiscal year 2009, which begins July 1, 2008.

-- Julie M. Dreixler, 46, recently joined Ventas as Senior Vice

President - Human Resources. Ms. Dreixler most recently was Vice

President, Human Resources of Cardinal Health, Inc., and previously

held human resources positions at Sara Lee Coffee & Tea, GE Capital,

Citibank and Chicago Title and Trust Company.

VENTAS ISSUES 2008 NORMALIZED FFO AND FAD GUIDANCE

Ventas currently expects its 2008 normalized FFO to be between $2.75 and $2.82 per diluted common share and FAD to be between $2.56 and $2.63 per diluted common share. Included within the Company's 2008 normalized FFO and FAD range is approximately $8 million to $10 million, or $0.06 to $0.07 per diluted share, of non-cash equity compensation.

The Company's normalized FFO and FAD guidance for all periods assumes that all of the Company's tenants, borrowers and managers continue to meet all of their obligations to the Company. In addition, the Company's normalized FFO and FAD guidance (and related U.S. generally accepted accounting principles ("GAAP") earnings projections) excludes (a) gains and losses on the sales of assets, (b) the impact of future, unannounced acquisitions, divestitures (including pursuant to tenant options to purchase) and capital transactions, (c) merger-related benefits, costs and expenses that are not capitalized under GAAP, including transitional expenses, amortization of fees related to acquisition financing and costs, gains and losses for foreign currency hedge agreements, and expenses relating to the Company's lawsuit against HCP, (d) the impact of any expenses related to asset impairment, the write-off of unamortized deferred financing fees, or additional costs, expenses or premiums incurred as a result of early debt retirement, (e) the non-cash effect of income tax benefits, and (f) dilution, if any, resulting from the Company's convertible notes.

The Company's guidance is based on a number of other assumptions, which 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 assurance that the Company will achieve these results.

A reconciliation of the Company's guidance to the Company's projected GAAP earnings is provided on a schedule attached to this press release. The Company may from time to time update its publicly announced guidance, but it is not obligated to do so.

FOURTH QUARTER CONFERENCE CALL

Ventas will hold a conference call to discuss this earnings release on February 14, 2008, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The conference call is being webcast live by CCBN and can be accessed at the Company's website at http://www.ventasreit.com or http://www.earnings.com. An online replay of the webcast will be available at approximately 12:00 p.m. Eastern Time and will be archived for 30 days.

Ventas expects to file its Form 10-K for the year ended December 31, 2007 on or about February 28, 2008.

Ventas, Inc. is a leading healthcare real estate investment trust. At the date of this press release, Ventas owns 520 seniors housing and healthcare-related properties located in 43 states and two Canadian provinces. Its diverse portfolio includes 254 seniors housing communities, 197 skilled nursing facilities, 42 hospitals and 27 medical office and other properties. More information about Ventas can be found on its website at http://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 Ventas, Inc.'s ("Ventas" or the "Company") and its subsidiaries' expected future financial position, results of operation
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SOURCE Ventas, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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