Company Updates 2004 Normalized FFO Guidance to $1.78 to $1.80 Per Share
Issues 2005 Normalized FFO Guidance of $1.89 to $1.93 Per Share
LOUISVILLE, KY (October 27, 2004) - Ventas, Inc. (NYSE:VTR) ("Ventas" or the "Company") said today that third quarter 2004 normalized Funds from Operations ("FFO") rose 24 percent to $39.8 million, compared with $32.2 million in the third quarter 2003. Normalized FFO per diluted share in the third quarter 2004 increased 18 percent to $0.47 from $0.40 per diluted share for the comparable 2003 period. In the third quarter ended September 30, 2004, the Company had 84.9 million weighted average diluted shares outstanding, compared to 80.3 million weighted average diluted shares outstanding a year earlier.
Normalized FFO for the nine months ended September 30, 2004 was $111.6 million, or $1.33 per diluted share, a 22 percent increase from $91.3 million, or $1.14 per diluted share, for the comparable 2003 period.
Normalized FFO for all periods excludes the benefit of a $20.2 million reversal of a previously recorded contingent liability, which increased operating income in the first quarter of 2003, an $8.1 million and a $9.0 million gain on sales of common stock of the Company's primary tenant, Kindred Healthcare, Inc. (NYSE:KND) ("Kindred"), which the Company realized during the three and nine months ended September 30, 2003, respectively, and a $1.4 million loss on extinguishment of debt recognized during the third quarter of 2004 due to the Company's refinancing of its credit facility.
The third quarter and first nine months of 2004 benefited from the Company's recent acquisition activity and increased rent from its master lease agreements with Kindred.
"Our shareholders will benefit from another quarter of excellent growth. Normalized FFO rose 18 percent per share and we improved our future earnings power by completing two important capital markets transactions," Chairman, President and CEO Debra A. Cafaro said. "With our new bank facility and senior note offering completed on attractive terms, Ventas has a strong platform to support its further investment in healthcare and senior housing assets and enhance its ability to create long-term value for shareholders."
GAAP NET INCOME
Ventas reported third quarter 2004 net income of $25.3 million, or $0.30 per diluted share. In the third quarter of 2003, Ventas reported net income of $32.2 million, or $0.40 per diluted share, after discontinued operations of $1.8 million, or $0.02 per diluted share, related to the sale of 27 facilities.
Net income for the nine months ended September 30, 2004 was $74.2 million, or $0.88 per diluted share, compared with net income for the nine months ended September 30, 2003 of $85.6 million, or $1.07 per diluted share, after discontinued operations of $4.2 million, or $0.05 per diluted share.
THIRD QUARTER HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
-- Two of Ventas's wholly owned subsidiaries issued $125 million of
6-5/8 percent unsecured senior notes, maturing on October 15, 2014,
locking in the Company's long-term debt costs and giving it greater
capacity to continue its growth and diversification plan. Proceeds were
used to pay down borrowings under the Company's revolving credit
facility.
-- Ventas closed its new $300 million secured revolving credit facility
initially priced at 125 basis points over LIBOR, significantly better
than its previous revolving credit facility which was initially priced
at 275 basis points over LIBOR. The improvement reflects upgrades in
the Company's credit ratings, the success of its diversification
program, increased cash flows and profits, and lower leverage. Ventas
currently has $36.0 million drawn under this facility.
-- Ventas entered into a sale/leaseback transaction with Summerville
Senior Living, Inc. on two assisted living facilities located in Ohio
and Connecticut containing 166 units. The purchase price was
$26.8 million, and cash rent on these investments approximates
9.15 percent, increasing annually by approximately 2.5 percent over the
term of the lease.
-- Ventas also invested $15.7 million in the acquisition of five medical
office buildings (MOBs), one in Texas and four in Florida. The MOBs are
projected to produce a yield in excess of 9 percent. One of these
assets was acquired on October 7, 2004.
-- With the completed acquisitions, annualized expected rent from Kindred
represents approximately 79 percent of the Company's annualized
expected revenue, assuming a full quarter effect of all acquisitions.
Annualized rent from market rate, non-government reimbursed assets in
the Company's portfolio represents 14 percent of the Company's
annualized expected revenue, on the same basis. These assets include
independent living facilities, assisted living facilities and
medical/office buildings.
-- In addition, assets leased to Kindred now represent 68 percent of the
Company's total assets, measured on a gross book value basis.
-- Ventas said its acquisition pipeline remains active, with approximately
$100 million of additional senior housing and healthcare assets under
contract and/or nonbinding letters of intent. The anticipated yield on
these investments is at least 9 percent. While the Company expects
these acquisitions to close, there can be no assurances that these
transactions will be completed, or if they are completed, when they
might occur.
-- The Company maintained a strong balance sheet at September 30, 2004,
with a third quarter pro forma annualized net debt-to-EBITDA ratio of
3.7 times.
-- Ventas appointed Christopher T. Hannon, Senior Vice President and Chief
Financial Officer of Province Healthcare Company (NYSE:PRV), to its
Board of Directors, where he will serve on the Company's Audit and
Compliance Committee. Hannon's election underscores Ventas's ongoing
commitment to an independent, experienced Board of Directors and best
practices in corporate governance.
-- The 227 skilled nursing facilities and hospitals leased by the Company
to its primary tenant, Kindred, produced EBITDAR to rent coverage of
1.7 times (after management fees) for the trailing twelve month period
ended June 30, 2004 (the latest date available). Further information
detailing these rent coverages is contained on a schedule attached to
this Press Release.
-- Ventas obtained a disbursement of $750,000 from its joint tax escrow
with Kindred, which contains proceeds of various refunds for the
pre-1999 tax periods.
THIRD QUARTER 2004 RESULTS
Rental revenue for the quarter ended September 30, 2004 was $60.7 million, of which $49.0 million (or 80.7 percent) resulted from leases with Kindred. Third quarter expenses totaled $36.3 million, and included $13.3 million of depreciation expense and $16.9 million of interest expense. General and administrative and professional expenses for the 2004 third quarter totaled $4.0 million. Property level operating expenses for the period were $0.4 million.
NINE MONTH 2004 RESULTS
Rental revenue for the nine months ended September 30, 2004 was $172.6 million, of which $144.8 million (or 83.9 percent) resulted from leases with Kindred. Expenses for the nine months ended September 30, 2004 totaled $101.4 million and included $36.2 million of depreciation expense, $49.3 million of interest expense and $12.8 million of general and administrative and professional expenses. Property level operating expenses for the period were $0.9 million.
VENTAS UPDATES 2004 NORMALIZED FFO GUIDANCE AND ISSUES 2005 GUIDANCE
Ventas also stated that it expects 2004 normalized FFO to be between $1.78 and $1.80 per diluted share, updated from the previous guidance of $1.75 to $1.79 per diluted share.
The Company also said it expects to achieve 2005 normalized FFO of between $1.89 and $1.93 per diluted share.
The Company's normalized FFO guidance assumes that all of the Company's tenants and borrowers continue to meet all of their obligations to the Company and that the Company closes all acquisitions currently subject to contract and/or non-binding letters of intent by March 31, 2005. There can be no assurance that these transactions will occur or when they will occur. Any failure or delay in completing these transactions could reduce the amount of 2004 and 2005 FFO that Ventas actually achieves.
In addition to the previously stated assumptions, the Company's normalized FFO guidance (and related GAAP earnings projections) for all periods exclude gains and losses on the sales of assets, and the impact of additional, unannounced future acquisitions, divestitures and capital transactions. Its guidance also excludes the future impact of (a) any expense the Company records for non-cash "swap ineffectiveness," and (b) 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.
The Company's normalized FFO 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. Reconciliation of the Company's normalized FFO 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 normalized FFO guidance, but it is not obligated to do so.
THIRD QUARTER CONFERENCE CALL
Ventas will hold a conference call to discuss this earnings release on Thursday, October 28, 2004, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The conference call is being web cast by CCBN and can be accessed at the Ventas website at http://www.ventasreit.com or http://www.fulldisclosure.com . An online replay of the web cast will be available at approximately 11:00 a.m. Eastern Time and will be archived for thirty (30) days.
Ventas, Inc. is a leading healthcare real estate investment trust that owns healthcare and senior housing assets in 39 states. Its properties include 42 hospitals, 201 skilled nursing facilities, 29 assisted and independent living facilities, 8 medical/office buildings and 8 other healthcare assets. 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 operations, cash flows, funds from operations, dividends and dividend plans, financing plans, business strategy, budgets, projected costs, capital expenditures, competitive positions, 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. Such 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 such forward-looking statements.
Actual future results and trends for the Company may differ materially depending on a variety of factors discussed in the Company's filings with the Securities and Exchange Commission (the "Commission"). Factors that may affect the plans or results of the Company include, without limitation, (a) the ability and willingness of Kindred Healthcare, Inc. ("Kindred") and certain of its affiliates to continue to meet and/or perform their obligations under their contractual arrangements with the Company and the Company's subsidiaries, including without limitation the lease agreements and various agreements entered into by the Company and Kindred at the time of the Company's spin off of Kindred on May 1, 1998 (the "1998 Spin Off"), as such agreements may have been amended and restated in connection with Kindred's emergence from bankruptcy on April 20, 2001, (b) the ability and willingness of Kindred to continue to meet and/or perform its obligation to indemnify and defend the Company for all litigation and other claims relating to the healthcare operations and other assets and liabilities transferred to Kindred in the 1998 Spin Off, (c) the ability of Kindred and the Company's other operators, tenants and borrowers to maintain the financial strength and liquidity necessary to satisfy their respective obligations and duties under the leases and other agreements with the Company, and their existing credit agreements, (d) the Company's success in implementing its business strategy and the Company's ability to identify, underwrite, consummate and integrate diversifying acquisitions or investments, (e) the nature and extent of future competition, (f) the extent of future healthcare reform and regulation, including cost containment measures and changes in reimbursement policies, procedures and rates, (g) increases in the cost of borrowing for the Company, (h) the ability of the Company's operators to deliver high quality care and to attract 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 ability of the Company 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 ability and willingness of the Company 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 ending December 31, 2004, (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, and (p) the impact on the liquidity, financial condition and results of operations of Kindred and the Company's other operators resulting from increased operating costs and uninsured liabilities for professional liability claims, and the ability of Kindred and the Company's other operators to accurately estimate the magnitude of such liabilities. Many of such factors are beyond the control of the Company and its management.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003
(In thousands)
September 30, June 30, March 31, December 31,
2004 2004 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Audited)
Assets
Real estate
investments:
Land $ 140,969 $ 136,634 $ 132,433 $ 104,300
Building and
improvements 1,333,310 1,299,660 1,233,827 985,881
1,474,279 1,436,294 1,366,260 1,090,181
Accumulated
depreciation (444,859) (431,707) (419,664) (408,891)
Total net
real estate
property 1,029,420 1,004,587 946,596 681,290
Loan receivable,
net 16,309 16,423 16,437 16,455
Total net
real estate
investments 1,045,729 1,021,010 963,033 697,745
Cash and cash
equivalents 3,805 8,880 1,723 82,104
Restricted cash 16,757 18,358 18,984 7,575
Deferred financing
costs, net 11,738 11,423 12,443 13,465
Notes receivable
from employees 3,269 3,251 3,609 3,772
Other 10,047 10,081 7,527 8,189
Total
assets $ 1,091,345 $ 1,073,003 $ 1,007,319 $ 812,850
Liabilities and
stockholders'
equity
Liabilities:
Senior Notes
payable and
other debt $ 853,774 $ 851,675 $ 782,362 $ 640,562
Deferred revenue 13,536 14,204 14,718 15,308
Interest rate
swap agreements 21,133 18,251 32,041 27,868
Accrued dividend - - - 21,614
Accrued interest 15,261 6,718 14,525 5,821
Accounts payable
and other accrued
liabilities 27,074 22,133 19,386 14,968
Deferred income
taxes 30,394 30,394 30,394 30,394
Total
liabilities 961,172 943,375 893,426 756,535
Commitments and
contingencies
Stockholders' equity:
Preferred stock,
10,000 shares
authorized,
unissued - - - -
Common stock,
$0.25 par value;
authorized 180,000
shares; 84,934
shares issued at
September 30,
2004 21,233 21,190 21,157 20,652
Capital in excess
of par value 204,393 201,482 199,945 162,466
Unearned
compensation on
restricted stock (968) (1,235) (1,339) (748)
Accumulated other
comprehensive
loss (13,588) (10,129) (23,341) (18,294)
Retained earnings
(deficit) (64,473) (62,377) (60,740) (56,790)
146,597 148,931 135,682 107,286
Treasury stock,
586 shares at
September 30,
2004 (16,424) (19,303) (21,789) (50,971)
Total
stockholders'
equity 130,173 129,628 113,893 56,315
Total
liabilities and
stockholders'
equity $ 1,091,345 $ 1,073,003 $ 1,007,319 $ 812,850
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three and Nine Months Ended September 30, 2004 and 2003
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Revenues:
Rental income $60,656 $49,355 $172,606 $141,824
Interest income from
loan receivable 763 766 2,274 2,271
Interest and other
income 189 280 772 1,325
Total revenues 61,608 50,401 175,652 145,420
Expenses:
Property level
operating expenses 372 - 869 -
General and
administrative 3,563 3,136 10,947 9,356
Professional fees 484 416 1,854 1,878
Reversal of
contingent liability - - - (20,164)
Amortization of
restricted stock grants 321 309 871 910
Depreciation 13,255 9,952 36,249 29,805
Interest 16,946 14,313 49,266 45,907
Loss on extinguishment
of debt 1,370 - 1,370 -
Swap ineffectiveness - - - 369
Interest on United
States Settlement - - - 4,943
Total expenses 36,311 28,126 101,426 73,004
Operating income 25,297 22,275 74,226 72,416
Gain on sale of
Kindred common stock - 8,117 - 9,039
Income before
discontinued operations 25,297 30,392 74,226 81,455
Discontinued operations - 1,820 - 4,174
Net income $ 25,297 $ 32,212 $ 74,226 $ 85,629
Earnings per common share:
Basic:
Income before
discontinued
operations $0.30 $0.38 $0.89 $1.03
Net income $0.30 $0.41 $0.89 $1.08
Diluted:
Income before
discontinued
operations $0.30 $0.38 $0.88 $1.02
Net income $0.30 $0.40 $0.88 $1.07
Shares used in
computing earnings
per common share:
Basic 84,073 79,389 83,202 79,055
Diluted 84,889 80,258 84,074 79,711
Dividend declared per
common share $0.3250 $0.2675 $0.9750 $0.8025
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2004 and 2003
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
2004 2003
Cash flows from operating activities:
Net income $74,226 $85,629
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation (including discontinued
operations) 36,249 31,837
Amortization of deferred financing costs 3,016 3,068
Amortization of restricted stock grants 871 910
Reversal of contingent liability - (20,164)
Normalized rents (1,728) (115)
Gain on sale of Kindred common stock - (9,039)
Loss on extinguishment of debt 1,370 -
Loss on sale of real estate assets
(included in discontinued operations) - 3,189
Loss on impairment of asset (included in
discontinued operations) - 845
Amortization of deferred revenue (1,886) (2,671)
Non-cash interest on the United States
Settlement - 2,655
Other (1,907) (2,437)
Changes in operating assets and liabilities:
(Increase) decrease in restricted cash (12) 11,923
Increase in other assets (829) (586)
Increase in accrued interest 9,440 6,718
Increase (decrease) in accounts payable
and accrued and other Liabilities 5,745 (3,914)
Net cash provided by
operating activities 124,555 107,848
Cash flows from investing activities:
Net investment in real estate property (280,666) -
Net proceeds from sale of real estate - 61,159
Proceeds from sale of Kindred common stock - 20,223
Proceeds from loan receivable 260 151
Purchase of furniture and equipment (170) (258)
Decrease in proceeds from notes receivable
from employees 503 317
Net cash (used in) provided by
investing activities (280,073) 81,592
Cash flows from financing activities:
Net change in borrowings under revolving
line of credit facility 173,500 (26,450)
Purchase of Senior Notes - (37,366)
Repayment of debt (65,915) (1,897)
Payment on the United States Settlement - (46,647)
Payment of deferred financing costs (2,659) (40)
Issuance of common stock 58,903 10,847
Proceeds from stock option exercises 16,913 -
Cash dividends to stockholders (103,523) (80,247)
Net cash provided by (used in)
financing activities 77,219 (181,800)
Net (decrease) increase in cash and cash
equivalents (78,299) 7,640
Cash and cash equivalents at beginning of period 82,104 2,455
Cash and cash equivalents at end of period $3,805 $10,095
Supplemental schedule of noncash activities:
Assets and liabilities assumed from acquisitions:
Real estate investments $ 103,432 $-
Restricted cash 9,170 -
Other assets acquired 206 -
Debt 105,627 -
Other liabilities assumed 7,181 -
SUPPLEMENTAL DATA
Funds from Operations
FFO and normalized FFO for the three and nine months ended September 30, 2004 and 2003 (in thousands, except per share amounts):
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Net income $ 25,297 $ 32,212 $74,226 $85,629
Adjustments:
Depreciation on
real estate assets 13,153 9,878 35,968 29,603
Other items:
Discontinued operations:
Depreciation on real
estate assets - 286 - 2,032
(Gain) loss on sale of
real estate - (2,065) - 3,189
FFO 38,450 40,311 110,194 120,453
Realized gain on sale of
Kindred common stock - (8,117) - (9,039)
Reversal of contingent
liability - - - (20,164)
Loss on extinguishment
of debt 1,370 - 1,370 -
Normalized FFO $ 39,820 $ 32,194 $ 111,564 $91,250
Per diluted share:
Net income $0.30 $0.40 $0.88 $1.07
Adjustments:
Depreciation on real
estate assets 0.15 0.12 0.43 0.37
Other items:
Discontinued operations:
Depreciation on real
estate assets - 0.01 - 0.03
(Gain) loss on sale
of real estate - (0.03) - 0.04
FFO 0.45 0.50 1.31 1.51
Realized gain on sale of
Kindred common stock - (0.10) - (0.11)
Reversal of contingent
liability - - - (0.26)
Loss on extinguishment
of debt 0.02 - 0.02 -
Normalized FFO $0.47 $0.40 $1.33 $1.14
Projected FFO per diluted share for the year ended:
NEW GUIDANCE PRIOR GUIDANCE GUIDANCE
December 31, December 31, December 31,
2004 2004 2005
Net income $ 1.18 - $ 1.20 $ 1.18 - $1.22 $1.25 - $1.28
Adjustments:
Depreciation
on real estate
assets 0.58 - 0.58 0.57 - 0.57 0.64 - 0.65
FFO 1.76 - 1.78 1.75 - 1.79 1.89 - 1.93
Loss on
extinguishment
of debt 0.02 - 0.02 - - - - - -
Normalized FFO $ 1.78 - $ 1.80 $ 1.75 - $1.79 $1.89 - $1.93
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 an appropriate measure of performance of an equity REIT and uses the National Association of Real Estate Investment Trusts ("NAREIT") definition of FFO. NAREIT defines FFO as net income, computed in accordance with accounting principles generally accepted in the United States ("GAAP"), excluding gains (or losses) from sales of property, plus 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.
FFO presented herein is not necessarily comparable to FFO presented by other real estate companies due to the fact that not all real estate companies use the same definition. FFO should not be considered as an alternative to net income (determined in accordance with GAAP), as an indicator of the Company's financial performance, as an alternative to cash flow from operating activities (determined in accordance with GAAP) or as a measure of the Company's liquidity, nor is FFO 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 should be examined in conjunction with net income as presented elsewhere in this Press Release.
Pro Forma Net Debt to EBITDA
The following pro forma information considers the effect on net income, interest and depreciation as if the Company had consummated the acquisition of the six properties during the third quarter 2004 as of the beginning of the three month period ended September 30, 2004. The following table illustrates net debt to pro forma earnings before interest, income taxes, depreciation and amortization ("EBITDA") for the three months ended September 30, 2004 (dollars in thousands):
Three Months
Ended
September 30,
2004
Pro forma net income $25,663
Add back:
Pro forma interest 17,264
Pro forma depreciation 12,887
Loss on extinguishment of debt 1,370
Amortization of restricted stock grants 321
Pro forma EBITDA $57,505
Pro forma annualized EBITDA $230,020
Debt $853,774
Cash (3,805)
Restricted cash pertaining to debt (6,992)
Net debt $842,977
Net debt to pro forma annualized EBITDA 3.7x
The Company considers EBITDA a profitability measure which indicates the Company's ability to service debt. The Company considers the Net Debt to 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, 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.
Portfolio of Properties
The following information provides an overview of the Company's portfolio of healthcare properties as of and for the nine months ended September 30, 2004 (dollars in thousands):
As of and for the Nine Months Ended September 30, 2004
# of # of Percent of # of
Portfolio by Type Properties Beds/Units Revenue Revenue States
Healthcare
properties:
Skilled nursing
facilities 201 25,551 $101,197 58.6% 31
Hospitals 42 3,635 53,713 31.1% 19
Senior housing
facilities 29 3,463 14,961 8.7% 13
Other facilities 15 122 2,735 1.6% 4
Total 287 32,771 $172,606 100.0% 39
Other real estate
investments:
Loan receivable 25 1,983 $2,274
Kindred Coverage Ratios
The following is based on data provided by Kindred to the Company or obtained from Kindred's public filings. This information reflects Kindred's EBITDARM and EBITDAR coverage by Master Lease:
TTM (1) TTM (1)
Master EBITDARM EBITDAR
Lease Coverage (2) Coverage (3)
1 2.9 2.2
2 2.7 2.1
3 2.1 1.4
4 1.9 1.3
5 1.9 1.4
Portfolio 2.3 1.7
(1) Trailing Twelve Months EBITDARM and EBITDAR for the period ended
June 30, 2004 (the latest available data provided by Kindred) to the
Company's Trailing Twelve Months cash rental revenue.
(2) Coverage reflects the ratio of Kindred's EBITDARM to rent. EBITDARM
is defined as earnings before interest, income taxes, depreciation,
amortization and rent. In the calculation of Trailing Twelve Months
EBITDARM, intercompany profit pertaining to Kindred's new PeopleFirst
Rehabilitation Division for the six months ended June 30, 2004 has
been eliminated from purchased ancillary expenses within the Ventas
skilled nursing portfolio.
(3) Coverage reflects the ratio of Kindred's EBITDAR to rent. EBITDAR is
defined as earnings before interest, income taxes, depreciation,
amortization and rent but after deducting a five percent management
fee. In the calculation of Trailing Twelve Months EBITDAR,
intercompany profit pertaining to Kindred's new PeopleFirst
Rehabilitation Division for the six months ended June 30, 2004 has
been eliminated from purchased ancillary expenses within the Ventas
skilled nursing portfolio.
Scheduled Maturities of Borrowing Arrangements
The Company's indebtedness has the following maturities as of September 30, 2004 (in thousands):
2004 $ 10,326
2005 4,623
2006 215,562
2007 175,179
2008 1,799
Thereafter 446,285
Total $ 853,774
- END -
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