Ventas, Inc. · NYSE:VTR
Ventas — Merrill Lynch Health Services Investor Conference 2001
14 slides from Ventas's conference presentation, Apr 11, 2001
Slide 1: Ventas
AVentas
Slide 2: Forward-looking statements
April 11, 2001 The presentations made at the Merrill Lynch Health Services Investor 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,
Slide 3: History and Real Estate Investment Trust
April 11, 2001 ! History " 1998 Ventas Reorganization • Spin-off of Vencor ! 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
Slide 4: 2000-2001 Events
April 11, 2001 ! 2000-2001 Events " Vencor Reorganization • Reorganization Plan Approved March 1 • Vencor Effective Date " Government Settlement • Release for Medicare Billing Issues • Dismissal of all Whistleblower Actions • Extraordinary Result - Broad Release " Debt Restructuring • Long-Term Cred
Slide 5: Ventas Financial Summary
April 11, 2001 ! Ventas Financial Summary " 2000 Results ($'s In Millions) 2000 Net Rental Revenue $ 184.5 Interest Income 9.5 Total Net Revenue $ 194.0 EBITDA $ 173.1 Funds from Operations ("FFO") $ 76.5 FFO per Diluted Share $ 1.12 Health Services Investor Conference 5
Slide 6: Ventas Financial Summary: Annual Rent
April 11, 2001 ! Ventas Financial Summary " Annual Rent • $180.7 Million - May 1, 2001-April 30, 2002 • 3.5% Escalator Per Year ($'s In Millions) FFO Growth 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 " Other Income • Rent • Interest Health Servi
Slide 7: Ventas Financial Summary: Debt
April 11, 2001 ! Ventas Financial Summary " G&A and Professional Fees - $21 Million in 2000 " Ventas Debt • Fixed Obligations - $852 Million of Long-Term Debt - March 31, 2001 » LIBOR Spreads (275-425); LIBOR Fixed at 6% Ventas Debt March 31, 2001 ($ Millions) Maturity Balance Rate Interest Tranche
Slide 8: Key Features: Upside for Ventas Shareholders
April 11, 2001 ! Key Features " Upside for Ventas Shareholders • Re-set Right - 2006 # Unilateral Right to Reset Lease to “Market” • Vencor Equity - 9.99% # Highly speculative valuation # Vencor Bankruptcy Filing Places $439 Million Value on Total Vencor Equity Health Services Investor Conference 8
Slide 9: Key Features: Property Level Fundamentals
April 11, 2001 ! Key Features " Property Level Fundamentals Facility Level Coverage EBITDARM/Rent (1) EBITDAR/Rent (1) SNFs 1.88 x 1.50 x Hospitals 2.28 x 1.88 x Blended 2.03 x 1.64 x (1) Based on 9 month 2000 actual results annualized and 2001 rent levels. • Each property is in this range of covera
Slide 10: Key Features: Net Asset Value
April 11, 2001 ! Key Features " Net Asset Value ($’s In Millions) $1,250.0 $1,011.0 $1,000.0 $936.7 $750.0 $639.0 $610.5 $500.0 $250.0 $0.0 Cap Rate Analysis Per Bed Analysis • Net Asset Value (per share) # Cap Rate $9.33 - $13.67 # Per Bed $8.90 - $14.75 Health Services Investor Conference 10
Slide 11: Key Features: Net Asset Value Assumptions
April 11, 2001 ! Key Features " Net Asset Value Assumptions • Cap Rate Assumptions # SNFs - 10% - 12% # Hospitals - 11% - 13% • Bed Price Assumptions # SNFs - $35-$45k per bed # Hospitals - $130-$160k per bed • $44 Million placed on Vencor Equity (derived from Vencor public filings) • Based on Decem
Slide 12: Areas of Opportunity
April 11, 2001 ! Areas of Opportunity " Reduce Debt Costs • 100 bps Improvement = $8.5 Million ($.12/share) " Cash Flow Pays Down Debt " Vencor Equity • Maximizing Valuation • Appreciation Allows De-levering " Potential for Increased Dividend • Credit Agreement Provides Minimum REIT Dividend # Paydo
Slide 13: Recap
April 11, 2001 ! Recap " Vencor Plan Approved " 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 Vencor Equity
Slide 14: Ventas
AVentas
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