In December 2004, FASB issued SFAS No. 123(R), which is a revision to SFAS No. 123 and requires all share-based payments to employees, including stock option grants, to be recognized in the income statement based on their fair values. On January 1, 2006, Ventas adopted SFAS No. 123(R) and is now recognizing compensation cost for all share-based payments to employees granted after that date and for all awards previously granted that remained unvested on that date. While the effect of adoption cannot be predicted at this time because it will depend on levels of share-based payments granted in the future, the effect of this accounting standard on our prior operating results would approximate the effect of SFAS No. 123 as described in the disclosure of pro forma net income and earnings per share set forth above.

February 27, 2006