Condensed Consolidating Information

We have fully and unconditionally guaranteed the obligation to pay principal and interest with respect to the outstanding senior notes issued by the Ventas Issuers. Ventas Capital Corporation is a direct subsidiary of Ventas Realty that was formed in 2002 to facilitate offerings of senior notes and has no assets or operations. None of our other subsidiaries (excluding the Ventas Issuers, the “Ventas Subsidiaries”) is obligated with respect to the Ventas Issuers’ outstanding senior notes.

In connection with the NHP acquisition, our 100% owned subsidiary, NHP LLC, as successor to NHP, assumed the obligation to pay principal and interest with respect to the outstanding senior notes issued by NHP. We, the Ventas Issuers and the Ventas Subsidiaries (other than NHP LLC) are not obligated with respect to any of NHP LLC’s outstanding senior notes.

Contractual and legal restrictions, including those contained in the instruments governing our subsidiaries’ outstanding mortgage indebtedness, may under certain circumstances restrict our ability to obtain cash from our subsidiaries for the purpose of meeting our debt service obligations, including our guarantee of the payment of principal and interest on the Ventas Issuers’ senior notes. Certain of our real estate assets are also subject to mortgages.

The following summarizes our condensed consolidating information as of December 31, 2012 and 2011 and for the years ended December 31, 2012, 2011, and 2010:

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2012



	Ventas, Inc.		Ventas Issuers			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	7,615	$	412,362		$	17,421,966	$	—		$	17,841,943
Cash and cash equivalents	16,734		—			51,174		—			67,908
Escrow deposits and restricted cash	7,565		1,952			96,396		—			105,913
Deferred financing costs, net	757		34,047			7,747		—			42,551
Investment in and advances to affiliates	10,343,664		1,867,251			—		(12,210,915		)	—
Other assets	26,282		4,043			891,360		—			921,685
Total assets	$	10,402,617	$	2,319,655		$	18,468,643	$	(12,210,915	)	$	18,980,000
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—	$	4,570,296		$	3,843,350	$	—		$	8,413,646
Intercompany loans	3,425,082		(4,126,391		)	701,309		—			—
Accrued interest	—		24,045			23,520		—			47,565
Accounts payable and other liabilities	99,631		7,775			887,750		—			995,156
Deferred income taxes	259,715		—			—		—			259,715
Total liabilities	3,784,428		475,725			5,455,929		—			9,716,082
Redeemable OP unitholder and noncontrolling interests	—		—			174,555		—			174,555
Total equity	6,618,189		1,843,930			12,838,159		(12,210,915		)	9,089,363
Total liabilities and equity	$	10,402,617	$	2,319,655		$	18,468,643	$	(12,210,915	)	$	18,980,000

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2011



	Ventas, Inc.		Ventas Issuers			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	309	$	519,042		$	15,712,261	$	—		$	16,231,612
Cash and cash equivalents	2,335		—			43,472		—			45,807
Escrow deposits and restricted cash	1,971		7,513			67,106		—			76,590
Deferred financing costs, net	757		19,239			6,673		—			26,669
Investment in and advances to affiliates	8,612,893		1,728,635			—		(10,341,528		)	—
Other assets	54,415		47,063			789,754		—			891,232
Total assets	$	8,672,680	$	2,321,492		$	16,619,266	$	(10,341,528	)	$	17,271,910
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—	$	2,593,176		$	3,835,940	$	—		$	6,429,116
Intercompany loans	1,204,987		(2,040,590		)	835,603		—			—
Accrued interest	—		12,561			25,133		—			37,694
Accounts payable and other liabilities	86,101		18,162			981,334		—			1,085,597
Deferred income taxes	260,722		—			—		—			260,722
Total liabilities	1,551,810		583,309			5,678,010		—			7,813,129
Redeemable OP unitholder and noncontrolling interests	—		—			102,837		—			102,837
Total equity	7,120,870		1,738,183			10,838,419		(10,341,528		)	9,355,944
Total liabilities and equity	$	8,672,680	$	2,321,492		$	16,619,266	$	(10,341,528	)	$	17,271,910

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Year Ended December 31, 2012



	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	2,538		$	278,367	$	913,155		$	—		$	1,194,060
Resident fees and services	—			—		1,229,479			—			1,229,479
Medical office building and other services revenues	—			—		20,741			—			20,741
Income from loans and investments	2,944			1,630		35,339			—			39,913
Equity earnings in affiliates	322,582			—		828			(323,410		)	—
Interest and other income	476			25		605			—			1,106
Total revenues	328,540			280,022		2,200,147			(323,410		)	2,485,299
Expenses:
Interest	(3,858		)	93,838		203,421			—			293,401
Depreciation and amortization	2,777			36,608		686,596			—			725,981
Property-level operating expenses	—			535		968,807			—			969,342
Medical office building services costs	—			—		9,883			—			9,883
General, administrative and professional fees	3,682			30,317		64,802			—			98,801
Loss (gain) on extinguishment of debt, net	—			39,737		(2,097		)	—			37,640
Merger-related expenses and deal costs	53,120			—		10,063			—			63,183
Other	79			—		6,877			—			6,956
Total expenses	55,800			201,035		1,948,352			—			2,205,187
Income from continuing operations before income from unconsolidated entities, income taxes, discontinued operations and noncontrolling interest	272,740			78,987		251,795			(323,410		)	280,112
Income from unconsolidated entities	—			1,557		16,597			—			18,154
Income tax benefit	6,282			—		—			—			6,282
Income from continuing operations	279,022			80,544		268,392			(323,410		)	304,548
Discontinued operations	83,778			2,296		(28,847		)	—			57,227
Net income	362,800			82,840		239,545			(323,410		)	361,775
Net loss attributable to noncontrolling interest	—			—		(1,025		)	—			(1,025		)
Net income attributable to common stockholders	$	362,800		$	82,840	$	240,570		$	(323,410	)	$	362,800

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Year Ended December 31, 2011



	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	2,471		$	270,745		$	530,239		$	—		$	803,455
Resident fees and services	—			—			868,095			—			868,095
Medical office building and other services revenues	—			—			36,471			—			36,471
Income from loans and investments	6,305			8,570			19,540			—			34,415
Equity earnings in affiliates	231,773			—			1,447			(233,220		)	—
Interest and other income	208			57			952			—			1,217
Total revenues	240,757			279,372			1,456,744			(233,220		)	1,743,653
Expenses:
Interest	(1,897		)	68,153			163,090			—			229,346
Depreciation and amortization	1,714			31,752			414,198			—			447,664
Property-level operating expenses	—			510			646,683			—			647,193
Medical office building services costs	—			—			27,082			—			27,082
General, administrative and professional fees	(5,328		)	29,336			50,529			—			74,537
Loss on extinguishment of debt, net	2,071			8,769			16,764			—			27,604
Litigation proceeds, net	(202,259		)	—			—			—			(202,259		)
Merger-related expenses and deal costs	111,845			—			42,078			—			153,923
Other	778			—			6,492			—			7,270
Total expenses	(93,076		)	138,520			1,366,916			—			1,412,360
Income from continuing operations before income from unconsolidated entities, income taxes, discontinued operations and noncontrolling interest	333,833			140,852			89,828			(233,220		)	331,293
Loss from unconsolidated entities	—			(52		)	—			—			(52		)
Income tax benefit	30,660			—			—			—			30,660
Income from continuing operations	364,493			140,800			89,828			(233,220		)	361,901
Discontinued operations	—			3,881			(2,521		)	—			1,360
Net income	364,493			144,681			87,307			(233,220		)	363,261
Net loss attributable to noncontrolling interest	—			—			(1,232		)	—			(1,232		)
Net income attributable to common stockholders	$	364,493		$	144,681		$	88,539		$	(233,220	)	$	364,493

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Year Ended December 31, 2010



	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	2,409		$	264,250		$	256,680	$	—		$	523,339
Resident fees and services	—			—			446,301		—			446,301
Medical office building and other services revenues	—			—			14,098		—			14,098
Income from loans and investments	5,666			7,789			2,957		—			16,412
Equity earnings in affiliates	258,441			—			1,914		(260,355		)	—
Interest and other income	332			83			69		—			484
Total revenues	266,848			272,122			722,019		(260,355		)	1,000,634
Expenses:
Interest	1,758			47,246			123,470		—			172,474
Depreciation and amortization	1,635			32,771			166,276		—			200,682
Property-level operating expenses	—			519			315,434		—			315,953
Medical office building services costs	—			—			9,518		—			9,518
General, administrative and professional fees	(2,549		)	21,618			30,761		—			49,830
Loss on extinguishment of debt, net	—			8,993			798		—			9,791
Merger-related expenses and deal costs	14,291			—			4,952		—			19,243
Other	219			—			53		—			272
Total expenses	15,354			111,147			651,262		—			777,763
Income from continuing operations before income from unconsolidated entities, income taxes, discontinued operations and noncontrolling interest	251,494			160,975			70,757		(260,355		)	222,871
Loss from unconsolidated entities	—			(664		)	—		—			(664		)
Income tax expense	(5,201		)	—			—		—			(5,201		)
Income from continuing operations	246,293			160,311			70,757		(260,355		)	217,006
Discontinued operations	(126		)	31,088			1,761		—			32,723
Net income	246,167			191,399			72,518		(260,355		)	249,729
Net income attributable to noncontrolling interest, net of tax	—			—			3,562		—			3,562
Net income attributable to common stockholders	$	246,167		$	191,399		$	68,956	$	(260,355	)	$	246,167

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31, 2012



	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	362,800		$	82,840	$	239,545		$	(323,410	)	$	361,775
Other comprehensive income (loss):
Foreign currency translation	—			—		2,375			—			2,375
Change in unrealized gain on marketable debt securities	(1,296		)	—		—			—			(1,296		)
Other	—			—		213			—			213
Total other comprehensive (loss) income	(1,296		)	—		2,588			—			1,292
Comprehensive income	361,504			82,840		242,133			(323,410		)	363,067
Comprehensive loss attributable to noncontrolling interest	—			—		(1,025		)	—			(1,025		)
Comprehensive income attributable to common stockholders	$	361,504		$	82,840	$	243,158		$	(323,410	)	$	364,092

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31, 2011



	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	364,493		$	144,681	$	87,307		$	(233,220	)	$	363,261
Other comprehensive loss:
Foreign currency translation	—			—		(1,944		)	—			(1,944		)
Change in unrealized gain on marketable debt securities	(2,691		)	—		—			—			(2,691		)
Other	—			—		(171		)	—			(171		)
Total other comprehensive loss	(2,691		)	—		(2,115		)	—			(4,806		)
Comprehensive income	361,802			144,681		85,192			(233,220		)	358,455
Comprehensive loss attributable to noncontrolling interest	—			—		(1,232		)	—			(1,232		)
Comprehensive income attributable to common stockholders	$	361,802		$	144,681	$	86,424		$	(233,220	)	$	359,687

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31, 2010



	Ventas, Inc.		Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	246,167	$	191,399	$	72,518		$	(260,355	)	$	249,729
Other comprehensive income (loss):
Foreign currency translation	—		—		6,951			—			6,951
Change in unrealized gain on marketable debt securities	354		—		—			—			354
Other	—		—		(106		)	—			(106		)
Total other comprehensive income	354		—		6,845			—			7,199
Comprehensive income	246,521		191,399		79,363			(260,355		)	256,928
Comprehensive income attributable to noncontrolling interest	—		—		3,562			—			3,562
Comprehensive income attributable to common stockholders	$	246,521	$	191,399	$	75,801		$	(260,355	)	$	253,366

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2012



	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(761	)	$	193,544		$	800,033		$	—	$	992,816
Net cash used in investing activities	(1,364,125		)	(100		)	(805,464		)	—		(2,169,689		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facility	—			92,000			(7,062		)	—		84,938
Proceeds from debt	—			2,364,360			346,045			—		2,710,405
Repayment of debt	—			(521,527		)	(671,496		)	—		(1,193,023		)
Net change in intercompany debt	2,151,815			(2,085,801		)	(66,014		)	—		—
Payment of deferred financing costs	—			(21,404		)	(2,366		)	—		(23,770		)
Issuance of common stock, net	342,469			—			—			—		342,469
Cash distribution (to) from affiliates	(398,071		)	(21,132		)	419,203			—		—
Cash distribution to common stockholders	(728,546		)	—			—			—		(728,546		)
Cash distribution to redeemable OP unitholders	(4,446		)	—			—			—		(4,446		)
Purchases of redeemable OP units	(4,601		)	—			—			—		(4,601		)
Distributions to noncontrolling interest	—			—			(5,215		)	—		(5,215		)
Other	20,665			—			38			—		20,703
Net cash provided by (used in) financing activities	1,379,285			(193,504		)	13,133			—		1,198,914
Net increase (decrease) in cash and cash equivalents	14,399			(60		)	7,702			—		22,041
Effect of foreign currency translation on cash and cash equivalents	—			60			—			—		60
Cash and cash equivalents at beginning of period	2,335			—			43,472			—		45,807
Cash and cash equivalents at end of period	$	16,734		$	—		$	51,174		$	—	$	67,908

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2011



	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash provided by operating activities	$	124,784		$	199,431		$	448,982		$	—	$	773,197
Net cash (used in) provided by investing activities	(618,663		)	(500,879		)	122,103			—		(997,439		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	—			405,000			132,452			—		537,452
Proceeds from debt	(230,000		)	1,069,374			504,266			—		1,343,640
Repayment of debt	—			(206,500		)	(1,182,462		)	—		(1,388,962		)
Net change in intercompany debt	1,363,963			(1,559,518		)	195,555			—		—
Payment of deferred financing costs	—			(19,661		)	(379		)	—		(20,040		)
Issuance of common stock, net	299,847			—			—			—		299,847
Cash distribution (to) from affiliates	(417,763		)	612,798			(195,035		)	—		—
Cash distribution to common stockholders	(521,046		)	—			—			—		(521,046		)
Cash distribution to redeemable OP unitholders	(2,359		)	—			—			—		(2,359		)
Purchases of redeemable OP units	—			—			(185		)	—		(185		)
Distributions to noncontrolling interest	—			—			(2,556		)	—		(2,556		)
Other	2,489			—			2			—		2,491
Net cash provided by (used in) financing activities	495,131			301,493			(548,342		)	—		248,282
Net increase in cash and cash equivalents	1,252			45			22,743			—		24,040
Effect of foreign currency translation on cash and cash equivalents	—			(45		)	—			—		(45		)
Cash and cash equivalents at beginning of period	1,083			—			20,729			—		21,812
Cash and cash equivalents at end of period	$	2,335		$	—		$	43,472		$	—	$	45,807

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2010



	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash provided by operating activities	$	14,092		$	213,295		$	220,235		$	—	$	447,622
Net cash used in investing activities	—			(266,609		)	(35,311		)	—		(301,920		)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities	—			40,000			(11,436		)	—		28,564
Proceeds from debt	—			595,712			1,670			—		597,382
Repayment of debt	—			(244,710		)	(280,050		)	—		(524,760		)
Net change in intercompany debt	(95,762		)	(26,250		)	122,012			—		—
Payment of deferred financing costs	—			(2,647		)	(47		)	—		(2,694		)
Cash distribution from (to) affiliates	405,433			(391,842		)	(13,591		)	—		—
Cash distribution to common stockholders	(336,085		)	—			—			—		(336,085		)
Distributions to noncontrolling interest	—			—			(8,082		)	—		(8,082		)
Other	13,405			—			818			—		14,223
Net cash used in financing activities	(13,009		)	(29,737		)	(188,706		)	—		(231,452		)
Net increase (decrease) in cash and cash equivalents	1,083			(83,051		)	(3,782		)	—		(85,750		)
Effect of foreign currency translation on cash and cash equivalents	—			165			—			—		165
Cash and cash equivalents at beginning of period	—			82,886			24,511			—		107,397
Cash and cash equivalents at end of period	$	1,083		$	—		$	20,729		$	—	$	21,812