Ventas, Inc. · NYSE:VTR
Ventas — UBS Warburg Global Healthcare Services Conference 2001
17 slides from Ventas's conference presentation, Feb 6, 2001
Slide 1: Ventas
AVentas
Slide 2: Forward-looking statements
February 6, 2001 The presentations made at the UBS Warburg Conference, both oral and written, contain “forward looking statements” within the meaning of the federal securities laws. These forward looking statements include, among others, statements of expectations, beliefs, future plans and strategi
Slide 3: History; Business Plan: Survival
February 6, 2001 ! History " 1998 Ventas Reorganization • Spin-off of Vencor ! Business Plan: Survival " Restructure Vencor " Settle $1.3 Billion Department of Justice Investigation/Whistleblower Lawsuits " Restructure $1 Billion Ventas Debt Global Healthcare Services Conference 3
Slide 4: Real Estate Investment Trust
February 6, 2001 ! Real Estate Investment Trust " Geographically Diverse Portfolio Located in 36 States • 216 Skilled Nursing Facilities # 28,000 Beds • 45 Hospitals # 4,000 Beds • 8 Personal Care Facilities " 100% Owned Assets - No Mortgages " Leased on Long-Term Triple Net Basis Global Healthcare
Slide 5: 1999 - 2000 Events
February 6, 2001 ! 1999 - 2000 Events " Vencor Reorganization • Reached Agreement with Vencor and Vencor Creditors on Final Terms of Reorganization Plan # Plan Filed December 2000 # Voting Deadline - February 2001 # Confirmation Hearing - March 1, 2001 # Effective 1H 2001 " Government Settlement • R
Slide 6: 1999 - 2000 Events: Ventas Debt
February 6, 2001 ! 1999 - 2000 Events " Ventas Debt - $1 Billion • New Credit Facility in Place - Rolling Maturities through 2007 # Earliest - December 31, 2002 • No Asset Sales or Dilutive Transactions Global Healthcare Services Conference 6
Slide 7: Ventas Financial Summary: Annual Rent
February 6, 2001 ! Ventas Financial Summary " Vencor Restructuring - Ventas Treatment " Annual Rent - May 1, 2001 - April 30, 2004 • 3.5% Escalator Per Year ($Millions) - All Cash $ 180.7 05/01/01 - 04/30/02 $ 187.0 05/01/02 - 04/30/03 $ 193.6 05/01/03 - 04/30/04 Global Healthcare Services Conferenc
Slide 8: Ventas Financial Summary: Re-set Right and Vencor Equity
February 6, 2001 ! Ventas Financial Summary " Vencor Restructuring - Ventas Treatment • Re-set Right - 2006 # Unilateral Right to Reset Lease to “Market” # Capture Upside in REIT Compliant way • Vencor Equity - 9.99% # Highly speculative valuation # Sensitive to EBITDAR and Vencor Multiple # Vencor
Slide 9: Ventas Financial Summary: Ventas Debt
February 6, 2001 ! Ventas Financial Summary " Ventas Debt • Amortized $87 Million Debt in 2000 # $35 Million Scheduled March 31, 2001 • No Asset Sales or Dilutive Transactions • Fixed Obligations - $852 Million of Long-Term Debt - March 31, 2001 » LIBOR Spreads (275-425); LIBOR Fixed at 6% Ventas De
Slide 10: Ventas Financial Summary: Fixed Obligations
February 6, 2001 ! Ventas Financial Summary " Fixed Obligations • Government Settlement # Ventas Portion - $104 Million » $34 million payable at Vencor Effective Date » $70 million payable quarterly over five (5) years at 6% interest » Level payment schedule - $16 million annual cash flow obligation
Slide 11: Key Features: Internal Revenue Growth
February 6, 2001 ! Key Features " Strong Internal Revenue Growth • 3 1/2% Rent Increase Annually In ($Millons) Date Rent Per Share April 30, 2002 $6.3 $0.09 April 30, 2003 $6.5 $0.09 April 30, 2004 $6.8 $0.10 Global Healthcare Services Conference 11
Slide 12: Key Features: Property Level Fundamentals
February 6, 2001 ! Key Features " Property Level Fundamentals Facility Level Coverage EBITDARM/Rent (1) EBITDAR/Rent (1) SNFs 1.88 x 1.50 x Hospitals 2.28 x 1.88 x Blended 2.03 x 1.64 x (1) Based on 9 month 2000 actual results annualized and 2001 rent levels. • Each property is in this range of cove
Slide 13: Key Features: Net Asset Value
February 6, 2001 ! Key Features " Net Asset Value ($ Millions) $ 1 , 2 5 0. 0 $ 9 66. 9 $ 1 , 000. 0 $ 807 . 9 $ 7 5 0. 0 $ 5 00. 0 $ 5 66. 5 $ 5 3 5 .2 $ 2 5 0. 0 $ 0. 0 C a p R a te A na ly sis P er B ed A na ly sis • NAV per share # Cap Rate $7.80 - $11.70 # Per Bed $8.20 - $14.00 Global Healthca
Slide 14: Key Features: Net Asset Value Assumptions
February 6, 2001 ! Key Features " Net Asset Value Assumptions • Cap Rate Assumptions # 10.5-12.5% SNFs; 11.5-13.5% hospitals • Bed Price Assumptions # $35-$45k per bed SNFs; $130-$160k per bed hospitals • No value placed on Vencor equity • Regulatory barriers to entry limit new supply • Based on 12/
Slide 15: Areas of Opportunity
February 6, 2001 ! Areas of Opportunity " Reduce Debt Costs • 100 bps Improvement = $8.5 Million ($.12/share) " Vencor Equity • Maximizing Valuation • Appreciation Allows De-levering " Potential for Increased Dividend • Credit Agreement Provides Minimum REIT Dividend # Paydown/Re-finance of $78 Mill
Slide 16: Recap
February 6, 2001 ! Recap " Vencor Plan Near Completion " Government Settlement Approved " Ventas Long-Term Debt Restructuring in Place " Ventas Stable and Improving • Strong Cash Flow Growth • Substantial Net Asset Value • Debt Amortization and Potential Rate Reduction • Capture Upside through Venco
Slide 17: Ventas
AVentas
Ventas — UBS Warburg Global Healthcare Services Conference 2001 on 6ix