Ventas, Inc. · NYSE:VTR
Ventas — CIBC World Markets Health Care Conference 2002
22 slides from Ventas's conference presentation, Nov 5, 2002
Slide 1: CIBC World Markets Health Care Conference November 2002
AVentas CIBC World Markets Health Care Conference November 2002
Slide 2: Forward Looking Statements
Forward Looking Statements ‘This presentation contains “orward looking statements" within the meaning ofthe federal secures laws, These forward looking latements include, among others, statements of expectations, beliefs, future plans and strategies, antcipated results from ‘operations and developme
Slide 3: Ventas Overview
Ventas Overview Presented by: Debra A. Cafaro President & CEO A Ventas »
Slide 4: Overview
Ventas Overview HL Second largest Healthcare REIT — Nine Months Ended September 30, 2002 recurring EBITDA = $132.8 million — Fiscal Year 2002 FFO guidance = $1.35-$1 36 per share El Large, diversified portfolio of properties * — 220 SNFs with 28,381 beds in 32 states — 44 hospitals with 3,923 beds i
Slide 5: Trans Healthcare Transaction
Trans Healthcare Transaction EE $120 million transaction — Accretive to FY 2003 FFO — $53 million sale/leaseback — 7 properties: § SNFs, 1 ALF, and 1 Rehab. Hospital — 11.25 lease constant — 3% annual rent escalators — Corporate guaranty — $46 million senior loan — 18 properties: 17 SNFs and 1 ALF —
Slide 6: REIT Revenue Mix
Ventas REIT Revenue Mix Estimated Twelve Months ending December 31, 2003 12 By Tenant By State THI Other 63% 11% Petsonal Care 0.4% 27 States 25.1% Hospital 20.4%, Kindred SH 27% 09.1% Total: $208.0 million Total: $208.0 mil Total: 37 States Notes: {Includes THI transaction A Ventas ; 2. Excludes No
Slide 7: Diversified Portfolio of Properties
Diversified Portfolio of Properties Hl Ventas owns properties in 37 states’, reducing its exposure to single state regulatory and reimbursement changes Wy © Nursing Facities (Total: 220) > g Hospitals (Toa: 44) WwW ‘@) L\ Other Healthcare Facilities (Total: 9) Total: 273 Facilities 7 tncdes THI rans
Slide 8: Positive Supply/Demand Fundamentals
Positive Supply/Demand Fundamentals Constrained Supply: El The majority of rental revenues generated in CON states! 2 SNEs Hospitals Total CON 730% 50.4% 65.9% Non-CON 27.0% 49.6% 34.1% TOTAL 100.0% 100.0% 100.0% Increasing Demand: ll 85+ population is fastest growing segment (25% utilization) Hl Ba
Slide 9: Rent is Growing
Ventas Rent is Growing Hl Rent escalators increase cash flow $6 — 7 million per year i Ventas has one-way, one-time right to to “market” in 2006 El KIND Equity stake Annual Escalators * $240.0 $230.0 $220.0 $210.0 $200.0 9190.0 9180.0 9170.0 9160.0 ns) Gin 2001 2002 2003 2004 2005 2008 2007 Actual R
Slide 10: Rent is Reliable
Ventas Rent is Reliable Hi Coverage by Master Lease’ T™ Pro Forma’ EBITDARM EBITDAR) EBITDARM EBITDARY Rent Rent 7 Rent Rent (x) (x) (x) (x) Master Lease 1 248 1.36 231 1.79 Master Lease 2 2.31 1.84 1.86 1.38 Master Lease 3 2.27 1.78 1.80 1.30 Master Lease 4 2.10 1.63 1.64 117 Master Lease 5 (CMBS)
Slide 11: Rent is Reliable
Ventas Rent is Reliable i Kindred Corporate Cash Flow MM Kindred 2002E EBITDAR (Kindred 2003E Adjusted EBITDAR 2 Mi Kindred 2003E Fixed Charges? Cushion $118.0 $600.0 $450.0 $400.0 $350.0 $200.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 ns) in mil Notes: 1. EBITDAR based on Kindred guidance as of July
Slide 12: Rent is Reliable
Ventas Rent is Reliable Hl Principal Tenant is Fully Restructured (NASDAQ: KIND) Actual TTM as of September 90, 2002 LTC Provider (rank by revenues) 4" Largest Annual Revenues $3.3 billion EBITDAR Margins 13.0% Cash an Balance Sheet $285 million Total Debt on Balance Sheet $162 million Number of Fac
Slide 13: Accomplishments
Ventas Accomplishments Y Consistent financial performance v Valuable diversified portfolio v Reduced leverage by $188 million v Upside participation/downside protection for Ventas shareholders — Highest internal growth rate: 7+% YoY — Structural and economic protection to Ventas stakeholders ¥ All-s
Slide 14: Accomplishments
Ventas Accomplishments ¥ Dividend Growth — $0.95 per share projected in 2002 — 2003 dividend increase projected ¥ Recapitalized Balance Sheet — WACD fully fixed < 8.5% 1 — $225 million Investment Grade CMBS @ LIBOR+146 bps — $400 million Ba3/BB- High Yield @ 8.9% — $350 million Secured Credit Facili
Slide 15: Delivers Superior TSR
Ventas Delivers Superior TSR 2000 2001 El 80% Total Shareholder Return Hl 123% Total Shareholder Return EM Top 5 REITs Ell Best Performing Healthcare REIT [ll Top 4% NYSE Companies El Top 5 REITs Price Performance: January 1, 2000 - October 29, 2002 lanc0 ApsOO Jul00Nov00Feb-O1 JunO1 Sep-O1 Deo Apec
Slide 16: Looking Forward
Ventas: Looking Forward
Slide 17: Exit Florida SNFs
Exit Florida SNFs Ell Florida SNFs: 4.3% of Ventas’ 2003E rental revenue El ventas and Kindred plan to exit Florida SNFs El Winwin outcome El Qualified local operators in Florida AA Ventas »
Slide 18: Reimbursement Update
Reimbursement Update @ Medicare SNF Cliffs — Congress to convene a “lame-duck” session in December — 50/50 likelihood of a provider package — $0 - $50 million positive impact to Kindred mm LTAC PPS — Budget neutral — Kindred: 9/2003 AA Ventas »
Slide 19: FFO Guidance
FFO Guidance Ei 2002 FFO = $1.35 - $1.36 per diluted share Ei 2003 FFO $1.80 eae Gua Edtimate $1.40 $1.36 $1.30 $1.25 $1.20 $1.18 $1.13 $1.35 FFO per Diluted Share $1.10 $1.05 $1.00 + 2001 Projected 2002 Projected 2003 AA Ventas »
Slide 20: Goals
Ventas Goals m Drive FFO/Share li Increase Dividend Strengthen Balance Sheet li Reduce WACD @ Develop Infrastructure Diversify with Discipline AA Ventas »
Slide 21: Growth and Diversification Strategy
Growth and Diversification Strategy Healthcare and senior housing assets Tenant diversification by acquiring assets operated by high quality operators Structure and finance acquisitions to further the Company’s stated financial goals of — FFO Accretion — Reduced leverage — Greater fixed charge cover
Slide 22: CIBC World Markets Health Care Conference November 2002
AVentas CIBC World Markets Health Care Conference November 2002
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