(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2013 | |
OR | ||
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO |
Delaware (State or Other Jurisdiction of Incorporation or Organization) | 61-1055020 (I.R.S. Employer Identification No.) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Class of Common Stock: | Outstanding at April 24, 2013: | |
Common Stock, $0.25 par value | 293,165,686 |
Page | ||||
March 31, 2013 | December 31, 2012 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Real estate investments: | |||||||
Land and improvements | $ | 1,764,208 | $ | 1,772,417 | |||
Buildings and improvements | 16,977,860 | 16,920,821 | |||||
Construction in progress | 72,714 | 70,665 | |||||
Acquired lease intangibles | 984,023 | 981,704 | |||||
19,798,805 | 19,745,607 | ||||||
Accumulated depreciation and amortization | (2,803,068 | ) | (2,634,075 | ) | |||
Net real estate property | 16,995,737 | 17,111,532 | |||||
Secured loans receivable, net | 490,107 | 635,002 | |||||
Investments in unconsolidated entities | 94,257 | 95,409 | |||||
Net real estate investments | 17,580,101 | 17,841,943 | |||||
Cash and cash equivalents | 57,690 | 67,908 | |||||
Escrow deposits and restricted cash | 99,225 | 105,913 | |||||
Deferred financing costs, net | 54,079 | 42,551 | |||||
Other assets | 915,826 | 921,685 | |||||
Total assets | $ | 18,706,921 | $ | 18,980,000 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Senior notes payable and other debt | $ | 8,295,908 | $ | 8,413,646 | |||
Accrued interest | 58,086 | 47,565 | |||||
Accounts payable and other liabilities | 910,692 | 995,156 | |||||
Deferred income taxes | 261,122 | 259,715 | |||||
Total liabilities | 9,525,808 | 9,716,082 | |||||
Redeemable OP unitholder and noncontrolling interests | 194,302 | 174,555 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Ventas stockholders' equity: | |||||||
Preferred stock, $1.00 par value; 10,000 shares authorized, unissued | — | — | |||||
Common stock, $0.25 par value; 600,000 shares authorized, 295,823 and 295,565 shares issued at March 31, 2013 and December 31, 2012, respectively | 73,969 | 73,904 | |||||
Capital in excess of par value | 9,904,694 | 9,920,962 | |||||
Accumulated other comprehensive income | 21,828 | 23,354 | |||||
Retained earnings (deficit) | (861,434 | ) | (777,927 | ) | |||
Treasury stock, 3,736 and 3,699 shares at March 31, 2013 and December 31, 2012, respectively | (223,709 | ) | (221,165 | ) | |||
Total Ventas stockholders' equity | 8,915,348 | 9,019,128 | |||||
Noncontrolling interest | 71,463 | 70,235 | |||||
Total equity | 8,986,811 | 9,089,363 | |||||
Total liabilities and equity | $ | 18,706,921 | $ | 18,980,000 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Revenues: | |||||||
Rental income: | |||||||
Triple-net leased | $ | 213,763 | $ | 203,575 | |||
Medical office buildings | 111,146 | 63,965 | |||||
324,909 | 267,540 | ||||||
Resident fees and services | 339,170 | 285,193 | |||||
Medical office building and other services revenue | 3,648 | 5,608 | |||||
Income from loans and investments | 16,103 | 8,036 | |||||
Interest and other income | 1,038 | 47 | |||||
Total revenues | 684,868 | 566,424 | |||||
Expenses: | |||||||
Interest | 79,600 | 68,130 | |||||
Depreciation and amortization | 179,017 | 160,421 | |||||
Property-level operating expenses: | |||||||
Senior living | 230,908 | 195,134 | |||||
Medical office buildings | 36,541 | 20,703 | |||||
267,449 | 215,837 | ||||||
Medical office building services costs | 1,639 | 2,988 | |||||
General, administrative and professional fees | 28,774 | 22,198 | |||||
Loss on extinguishment of debt, net | — | 29,544 | |||||
Merger-related expenses and deal costs | 4,262 | 7,981 | |||||
Other | 4,587 | 1,576 | |||||
Total expenses | 565,328 | 508,675 | |||||
Income before income from unconsolidated entities, income taxes, discontinued operations and noncontrolling interest | 119,540 | 57,749 | |||||
Income from unconsolidated entities | 929 | 317 | |||||
Income tax expense | (1,744 | ) | (11,338 | ) | |||
Income from continuing operations | 118,725 | 46,728 | |||||
Discontinued operations | (5,627 | ) | 43,364 | ||||
Net income | 113,098 | 90,092 | |||||
Net income (loss) attributable to noncontrolling interest | 905 | (534 | ) | ||||
Net income attributable to common stockholders | $ | 112,193 | $ | 90,626 | |||
Earnings per common share: | |||||||
Basic: | |||||||
Income from continuing operations attributable to common stockholders | $ | 0.40 | $ | 0.16 | |||
Discontinued operations | (0.02 | ) | 0.15 | ||||
Net income attributable to common stockholders | $ | 0.38 | $ | 0.31 | |||
Diluted: | |||||||
Income from continuing operations attributable to common stockholders | $ | 0.40 | $ | 0.16 | |||
Discontinued operations | (0.02 | ) | 0.15 | ||||
Net income attributable to common stockholders | $ | 0.38 | $ | 0.31 | |||
Weighted average shares used in computing earnings per common share: | |||||||
Basic | 291,455 | 288,375 | |||||
Diluted | 293,924 | 290,813 | |||||
Dividends declared per common share | $ | 0.67 | $ | 0.62 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Net income | $ | 113,098 | $ | 90,092 | |||
Other comprehensive (loss) income: | |||||||
Foreign currency translation | (2,091 | ) | 1,949 | ||||
Change in unrealized gain on marketable debt securities | 61 | (308 | ) | ||||
Other | 504 | 223 | |||||
Total other comprehensive (loss) income | (1,526 | ) | 1,864 | ||||
Comprehensive income | 111,572 | 91,956 | |||||
Comprehensive income (loss) attributable to noncontrolling interest | 905 | (534 | ) | ||||
Comprehensive income attributable to common stockholders | $ | 110,667 | $ | 92,490 |
Common Stock Par Value | Capital in Excess of Par Value | Accumulated Other Comprehensive Income | Retained Earnings (Deficit) | Treasury Stock | Total Ventas Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 72,240 | $ | 9,593,583 | $ | 22,062 | $ | (412,181 | ) | $ | (747 | ) | $ | 9,274,957 | $ | 80,987 | $ | 9,355,944 | |||||||||||||
Net income (loss) | — | — | — | 362,800 | — | 362,800 | (1,025 | ) | 361,775 | ||||||||||||||||||||||
Other comprehensive income | — | — | 1,292 | — | — | 1,292 | — | 1,292 | |||||||||||||||||||||||
Acquisition-related activity | — | (8,571 | ) | — | — | (221,076 | ) | (229,647 | ) | (9,429 | ) | (239,076 | ) | ||||||||||||||||||
Net change in noncontrolling interest | — | — | — | — | — | — | (5,194 | ) | (5,194 | ) | |||||||||||||||||||||
Dividends to common stockholders—$2.48 per share | — | — | — | (728,546 | ) | — | (728,546 | ) | — | (728,546 | ) | ||||||||||||||||||||
Issuance of common stock | 1,495 | 340,974 | — | — | — | 342,469 | — | 342,469 | |||||||||||||||||||||||
Issuance of common stock for stock plans | 128 | 22,126 | — | — | 2,841 | 25,095 | — | 25,095 | |||||||||||||||||||||||
Change in redeemable noncontrolling interest | — | (17,317 | ) | — | — | — | (17,317 | ) | 4,896 | (12,421 | ) | ||||||||||||||||||||
Adjust redeemable OP unitholder interests to current fair value | — | (19,819 | ) | — | — | — | (19,819 | ) | — | (19,819 | ) | ||||||||||||||||||||
Purchase of OP units | 3 | (1,651 | ) | — | — | 324 | (1,324 | ) | — | (1,324 | ) | ||||||||||||||||||||
Grant of restricted stock, net of forfeitures | 38 | 11,637 | — | — | (2,507 | ) | 9,168 | — | 9,168 | ||||||||||||||||||||||
Balance at December 31, 2012 | 73,904 | 9,920,962 | 23,354 | (777,927 | ) | (221,165 | ) | 9,019,128 | 70,235 | 9,089,363 | |||||||||||||||||||||
Net income | — | — | — | 112,193 | — | 112,193 | 905 | 113,098 | |||||||||||||||||||||||
Other comprehensive loss | — | — | (1,526 | ) | — | — | (1,526 | ) | — | (1,526 | ) | ||||||||||||||||||||
Acquisition-related activity | — | (649 | ) | — | — | — | (649 | ) | 2,596 | 1,947 | |||||||||||||||||||||
Net change in noncontrolling interest | — | — | — | — | — | — | (2,456 | ) | (2,456 | ) | |||||||||||||||||||||
Dividends to common stockholders—$0.67 per share | — | — | — | (195,700 | ) | — | (195,700 | ) | — | (195,700 | ) | ||||||||||||||||||||
Issuance of common stock | 18 | 5,032 | — | — | — | 5,050 | — | 5,050 | |||||||||||||||||||||||
Issuance of common stock for stock plans | — | 525 | — | — | 2,862 | 3,387 | — | 3,387 | |||||||||||||||||||||||
Change in redeemable noncontrolling interest | — | (7,182 | ) | — | — | — | (7,182 | ) | 183 | (6,999 | ) | ||||||||||||||||||||
Adjust redeemable OP unitholder interests to current fair value | — | (17,057 | ) | — | — | — | (17,057 | ) | — | (17,057 | ) | ||||||||||||||||||||
Purchase of OP units | — | (58 | ) | — | — | — | (58 | ) | — | (58 | ) | ||||||||||||||||||||
Grant of restricted stock, net of forfeitures | 47 | 3,121 | — | — | (5,406 | ) | (2,238 | ) | — | (2,238 | ) | ||||||||||||||||||||
Balance at March 31, 2013 | $ | 73,969 | $ | 9,904,694 | $ | 21,828 | $ | (861,434 | ) | $ | (223,709 | ) | $ | 8,915,348 | $ | 71,463 | $ | 8,986,811 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 113,098 | $ | 90,092 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization (including amounts in discontinued operations) | 186,943 | 164,636 | |||||
Amortization of deferred revenue and lease intangibles, net | (3,310 | ) | (5,160 | ) | |||
Other non-cash amortization | (5,329 | ) | (10,108 | ) | |||
Change in fair value of financial instruments | 25 | 33 | |||||
Stock-based compensation | 5,662 | 4,834 | |||||
Straight-lining of rental income, net | (7,865 | ) | (4,890 | ) | |||
Loss on extinguishment of debt, net | — | 29,544 | |||||
Gain on real estate dispositions, net (including amounts in discontinued operations) | (477 | ) | (40,233 | ) | |||
(Gain) loss on real estate loan investments | (340 | ) | 559 | ||||
Income tax expense (including amounts in discontinued operations) | 1,744 | 11,305 | |||||
Loss (income) from unconsolidated entities | 312 | (317 | ) | ||||
Gain on re-measurement of equity interest upon acquisition, net | (1,241 | ) | — | ||||
Other | 2,880 | 3,049 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in other assets | (10,459 | ) | 1,275 | ||||
Increase in accrued interest | 10,530 | 20,452 | |||||
Decrease in accounts payable and other liabilities | (61,868 | ) | (20,110 | ) | |||
Net cash provided by operating activities | 230,305 | 244,961 | |||||
Cash flows from investing activities: | |||||||
Net investment in real estate property | (56,175 | ) | (500 | ) | |||
Purchase of noncontrolling interest | (3,186 | ) | — | ||||
Investment in loans receivable | (2,789 | ) | (22,473 | ) | |||
Proceeds from real estate disposals | 11,250 | 8,847 | |||||
Proceeds from loans receivable | 146,394 | 17,244 | |||||
Funds held in escrow for future development expenditures | 5,440 | — | |||||
Development project expenditures | (21,588 | ) | (31,274 | ) | |||
Capital expenditures | (19,795 | ) | (10,019 | ) | |||
Other | (78 | ) | (2,137 | ) | |||
Net cash provided by (used in) investing activities | 59,473 | (40,312 | ) | ||||
Cash flows from financing activities: | |||||||
Net change in borrowings under revolving credit facility | (375,916 | ) | (382,398 | ) | |||
Proceeds from debt | 916,871 | 667,330 | |||||
Repayment of debt | (635,793 | ) | (298,801 | ) | |||
Payment of deferred financing costs | (13,808 | ) | (1,793 | ) | |||
Issuance of common stock, net | 5,050 | — | |||||
Cash distribution to common stockholders | (195,700 | ) | (179,253 | ) | |||
Cash distribution to redeemable OP unitholders | (1,151 | ) | (1,112 | ) | |||
Purchases of redeemable OP units | (108 | ) | (233 | ) | |||
Distributions to noncontrolling interest | (1,450 | ) | (1,592 | ) | |||
Other | 2,058 | 565 | |||||
Net cash used in financing activities | (299,947 | ) | (197,287 | ) | |||
Net (decrease) increase in cash and cash equivalents | (10,169 | ) | 7,362 | ||||
Effect of foreign currency translation on cash and cash equivalents | (49 | ) | 55 | ||||
Cash and cash equivalents at beginning of period | 67,908 | 45,807 | |||||
Cash and cash equivalents at end of period | $ | 57,690 | $ | 53,224 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Supplemental schedule of non-cash activities: | |||||||
Assets and liabilities assumed from acquisitions: | |||||||
Real estate investments | $ | 8,839 | $ | 54,881 | |||
Utilization of funds held for an Internal Revenue Code Section 1031 exchange | — | (37,799 | ) | ||||
Other assets acquired | 668 | (5,126 | ) | ||||
Debt assumed | — | 17,734 | |||||
Other liabilities | 6,422 | (6,989 | ) | ||||
Deferred income tax liability | 1,532 | — | |||||
Noncontrolling interests | 1,553 | (3,115 | ) | ||||
Equity issued | — | 4,326 | |||||
Debt transferred on the sale of assets | — | 14,535 |
• | Cash and cash equivalents - The carrying amount of unrestricted cash and cash equivalents reported on our Consolidated Balance Sheets approximates fair value due to the short maturity of these instruments. |
• | Loans receivable - We estimate the fair value of loans receivable using level two and level three inputs: we discount future cash flows using current interest rates at which similar loans with the same maturities and same terms would be made to borrowers with similar credit ratings. Additionally, we determine the valuation allowance for losses, if any, on loans receivable using level three inputs. |
• | Derivative instruments - With the assistance of a third party, we estimate the fair value of derivative instruments, including interest rate caps, interest rate swaps, and foreign currency forward contracts, using level two inputs: for interest rate caps, we observe forward yield curves and other relevant information; for interest rate swaps, we observe alternative financing rates derived from market-based financing rates, forward yield curves and discount rates; and for foreign currency forward contracts, we estimate the future values of the two currency tranches using forward exchange rates that are based on traded forward points and calculate a present value of the net amount using a discount factor based on observable traded interest rates. |
• | Senior notes payable and other debt - We estimate the fair value of senior notes payable and other debt using level two inputs: we discount the future cash flows using current interest rates at which we could obtain similar borrowings. |
• | Redeemable OP unitholder interests - We estimate the fair value of the OP Units using level two inputs: we base fair value on the closing price of our common stock, as units may be redeemed at the election of the holder for cash or, at our option, 0.7866 shares of our common stock per unit, subject to adjustment in certain circumstances. |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Revenues: | |||||||
Rental income | $ | 2,073 | $ | 9,458 | |||
Resident fees and services | 618 | 2,611 | |||||
Interest and other income | — | 1,822 | |||||
2,691 | 13,891 | ||||||
Expenses: | |||||||
Interest | 729 | 3,520 | |||||
Depreciation and amortization | 7,926 | 4,215 | |||||
Property-level operating expenses | 664 | 2,475 | |||||
General, administrative and professional fees | — | 3 | |||||
Other | (524 | ) | 580 | ||||
8,795 | 10,793 | ||||||
(Loss) income before income taxes and gain on sale of real estate assets | (6,104 | ) | 3,098 | ||||
Income tax benefit | — | 33 | |||||
Gain on real estate dispositions, net | 477 | 40,233 | |||||
Discontinued operations | $ | (5,627 | ) | $ | 43,364 |
March 31, 2013 | December 31, 2012 | ||||||||||
Balance | Remaining Weighted Average Amortization Period in Years | Balance | Remaining Weighted Average Amortization Period in Years | ||||||||
(Dollars in thousands) | |||||||||||
Intangible assets: | |||||||||||
Above market lease intangibles | $ | 214,863 | 9.4 | $ | 215,367 | 9.5 | |||||
In-place and other lease intangibles | 769,159 | 23.8 | 766,337 | 23.3 | |||||||
Other intangibles | 33,103 | 8.6 | 33,378 | 8.6 | |||||||
Accumulated amortization | (382,004 | ) | N/A | (352,692 | ) | N/A | |||||
Goodwill | 457,598 | N/A | 490,452 | N/A | |||||||
Net intangible assets | $ | 1,092,719 | 19.6 | $ | 1,152,842 | 19.3 | |||||
Intangible liabilities: | |||||||||||
Below market lease intangibles | $ | 429,633 | 15.2 | $ | 429,907 | 15.3 | |||||
Other lease intangibles | 28,540 | 15.8 | 28,966 | 15.8 | |||||||
Accumulated amortization | (88,442 | ) | N/A | (78,560 | ) | N/A | |||||
Purchase option intangibles | 36,048 | N/A | 36,048 | N/A | |||||||
Net intangible liabilities | $ | 405,779 | 15.2 | $ | 416,361 | 15.3 |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Straight-line rent receivables, net | $ | 128,212 | $ | 120,325 | |||
Unsecured loans receivable, net | 65,009 | 62,118 | |||||
Goodwill and other intangibles, net | 481,038 | 515,429 | |||||
Assets held for sale | 122,684 | 111,556 | |||||
Other | 118,883 | 112,257 | |||||
Total other assets | $ | 915,826 | $ | 921,685 |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Unsecured revolving credit facility | $ | 164,734 | $ | 540,727 | |||
6.25% Senior Notes due 2013 | — | 269,850 | |||||
Unsecured term loan due 2015(1) | 127,282 | 130,336 | |||||
3.125% Senior Notes due 2015 | 400,000 | 400,000 | |||||
6% Senior Notes due 2015 | 234,420 | 234,420 | |||||
Unsecured term loan due 2017(1) | 375,000 | 375,000 | |||||
Unsecured term loan due 2018 | 180,000 | 180,000 | |||||
2.00% Senior Notes due 2018 | 700,000 | 700,000 | |||||
4.00% Senior Notes due 2019 | 600,000 | 600,000 | |||||
2.700% Senior Notes due 2020 | 500,000 | — | |||||
4.750% Senior Notes due 2021 | 700,000 | 700,000 | |||||
4.25% Senior Notes due 2022 | 600,000 | 600,000 | |||||
3.25% Senior Notes due 2022 | 500,000 | 500,000 | |||||
6.90% Senior Notes due 2037 | 52,400 | 52,400 | |||||
6.59% Senior Notes due 2038 | 22,973 | 22,973 | |||||
5.45% Senior Notes due 2043 | 258,750 | — | |||||
Mortgage loans and other(2) | 2,814,030 | 2,880,609 | |||||
Total | 8,229,589 | 8,186,315 | |||||
Capital lease obligations | — | 142,412 | |||||
Unamortized fair value adjustment | 92,465 | 111,623 | |||||
Unamortized discounts | (26,146 | ) | (26,704 | ) | |||
Senior notes payable and other debt | $ | 8,295,908 | $ | 8,413,646 |
(1) | These amounts represent in aggregate the approximate $500.0 million of borrowings outstanding under our unsecured term loan facility. Certain amounts included in the 2015 tranche are in the form of Canadian dollar borrowings. |
(2) | Excludes debt related to a real estate asset classified as held for sale as of March 31, 2013 and December 31, 2012, respectively. The total mortgage debt for this property as of March 31, 2013 and December 31, 2012 was $23.0 million and $23.2 million, respectively, and is included in accounts payable and other liabilities on our Consolidated Balance Sheets. |
Principal Amount Due at Maturity | Unsecured Revolving Credit Facility(1) | Scheduled Periodic Amortization | Total Maturities(1) | ||||||||||||
(In thousands) | |||||||||||||||
2013(2) | $ | 190,394 | $ | — | $ | 38,749 | $ | 229,143 | |||||||
2014 | 292,698 | — | 47,735 | 340,433 | |||||||||||
2015 | 1,068,219 | 164,734 | 38,392 | 1,271,345 | |||||||||||
2016 | 410,917 | — | 31,204 | 442,121 | |||||||||||
2017 | 922,714 | — | 18,995 | 941,709 | |||||||||||
Thereafter(3) | 4,851,972 | — | 152,866 | 5,004,838 | |||||||||||
Total maturities | $ | 7,736,914 | $ | 164,734 | $ | 327,941 | $ | 8,229,589 |
(1) | At March 31, 2013, we had $57.7 million of unrestricted cash and cash equivalents, for $107.0 million of net borrowings outstanding under our unsecured revolving credit facility. Borrowings under our unsecured revolving credit facility mature on October 16, 2015, but may be extended for an additional period of one year at our option, subject to the satisfaction of certain conditions. |
(2) | Excludes $23.0 million of mortgage debt related to a real estate asset classified as held for sale as of March 31, 2013 that is scheduled to mature in 2013. |
(3) | Includes $52.4 million aggregate principal amount of our 6.90% senior notes due 2037 that is subject to repurchase, at the option of the holders, on October 1 in each of the years 2017 and 2027, and $23.0 million aggregate principal amount of 6.59% senior notes due 2038 that is subject to repurchase, at the option of the holders, on July 7 in each of the years 2013, 2018, 2023 and 2028. |
March 31, 2013 | December 31, 2012 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 57,690 | $ | 57,690 | $ | 67,908 | $ | 67,908 | |||||||
Secured loans receivable, net | 490,107 | 487,814 | 635,002 | 636,714 | |||||||||||
Unsecured loans receivable, net | 65,009 | 67,767 | 62,118 | 65,146 | |||||||||||
Liabilities: | |||||||||||||||
Senior notes payable and other debt, gross | 8,229,589 | 8,578,726 | 8,186,315 | 8,600,450 | |||||||||||
Derivative instruments and other liabilities | 25,380 | 25,380 | 45,966 | 45,966 | |||||||||||
Redeemable OP unitholder interests | 129,773 | 129,773 | 114,933 | 114,933 |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Foreign currency translation | $ | 21,350 | $ | 23,441 | |||
Unrealized gain on marketable debt securities | 868 | 807 | |||||
Other | (390 | ) | (894 | ) | |||
Total accumulated other comprehensive income | $ | 21,828 | $ | 23,354 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands, except per share amounts) | |||||||
Numerator for basic and diluted earnings per share: | |||||||
Income from continuing operations attributable to common stockholders | $ | 117,820 | $ | 47,262 | |||
Discontinued operations | (5,627 | ) | 43,364 | ||||
Net income attributable to common stockholders | $ | 112,193 | $ | 90,626 | |||
Denominator: | |||||||
Denominator for basic earnings per share—weighted average shares | 291,455 | 288,375 | |||||
Effect of dilutive securities: | |||||||
Stock options | 573 | 512 | |||||
Restricted stock awards | 120 | 64 | |||||
OP units | 1,776 | 1,862 | |||||
Denominator for diluted earnings per share—adjusted weighted average shares | 293,924 | 290,813 | |||||
Basic earnings per share: | |||||||
Income from continuing operations attributable to common stockholders | $ | 0.40 | $ | 0.16 | |||
Discontinued operations | (0.02 | ) | 0.15 | ||||
Net income attributable to common stockholders | $ | 0.38 | $ | 0.31 | |||
Diluted earnings per share: | |||||||
Income from continuing operations attributable to common stockholders | $ | 0.40 | $ | 0.16 | |||
Discontinued operations | (0.02 | ) | 0.15 | ||||
Net income attributable to common stockholders | $ | 0.38 | $ | 0.31 |
Triple-Net Leased Properties | Senior Living Operations | MOB Operations | All Other | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | 213,763 | $ | — | $ | 111,146 | $ | — | $ | 324,909 | |||||||||
Resident fees and services | — | 339,170 | — | — | 339,170 | ||||||||||||||
Medical office building and other services revenue | 1,111 | — | 2,537 | — | 3,648 | ||||||||||||||
Income from loans and investments | — | — | — | 16,103 | 16,103 | ||||||||||||||
Interest and other income | — | — | — | 1,038 | 1,038 | ||||||||||||||
Total revenues | $ | 214,874 | $ | 339,170 | $ | 113,683 | $ | 17,141 | $ | 684,868 | |||||||||
Total revenues | $ | 214,874 | $ | 339,170 | $ | 113,683 | $ | 17,141 | $ | 684,868 | |||||||||
Less: | |||||||||||||||||||
Interest and other income | — | — | — | 1,038 | 1,038 | ||||||||||||||
Property-level operating expenses | — | 230,908 | 36,541 | — | 267,449 | ||||||||||||||
Medical office building services costs | — | — | 1,639 | — | 1,639 | ||||||||||||||
Segment NOI | 214,874 | 108,262 | 75,503 | 16,103 | 414,742 | ||||||||||||||
Income (loss) from unconsolidated entities | 187 | (600 | ) | 1,342 | — | 929 | |||||||||||||
Segment profit | $ | 215,061 | $ | 107,662 | $ | 76,845 | $ | 16,103 | 415,671 | ||||||||||
Interest and other income | 1,038 | ||||||||||||||||||
Interest expense | (79,600 | ) | |||||||||||||||||
Depreciation and amortization | (179,017 | ) | |||||||||||||||||
General, administrative and professional fees | (28,774 | ) | |||||||||||||||||
Merger-related expenses and deal costs | (4,262 | ) | |||||||||||||||||
Other | (4,587 | ) | |||||||||||||||||
Income tax expense | (1,744 | ) | |||||||||||||||||
Discontinued operations | (5,627 | ) | |||||||||||||||||
Net income | $ | 113,098 |
Triple-Net Leased Properties | Senior Living Operations | MOB Operations | All Other | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | 203,575 | $ | — | $ | 63,965 | $ | — | $ | 267,540 | |||||||||
Resident fees and services | — | 285,193 | — | — | 285,193 | ||||||||||||||
Medical office building and other services revenue | 1,109 | — | 4,499 | — | 5,608 | ||||||||||||||
Income from loans and investments | — | — | — | 8,036 | 8,036 | ||||||||||||||
Interest and other income | — | — | — | 47 | 47 | ||||||||||||||
Total revenues | $ | 204,684 | $ | 285,193 | $ | 68,464 | $ | 8,083 | $ | 566,424 | |||||||||
Total revenues | $ | 204,684 | $ | 285,193 | $ | 68,464 | $ | 8,083 | $ | 566,424 | |||||||||
Less: | |||||||||||||||||||
Interest and other income | — | — | — | 47 | 47 | ||||||||||||||
Property-level operating expenses | — | 195,134 | 20,703 | — | 215,837 | ||||||||||||||
Medical office building services costs | — | — | 2,988 | — | 2,988 | ||||||||||||||
Segment NOI | 204,684 | 90,059 | 44,773 | 8,036 | 347,552 | ||||||||||||||
Income from unconsolidated entities | 266 | — | 51 | — | 317 | ||||||||||||||
Segment profit | $ | 204,950 | $ | 90,059 | $ | 44,824 | $ | 8,036 | 347,869 | ||||||||||
Interest and other income | 47 | ||||||||||||||||||
Interest expense | (68,130 | ) | |||||||||||||||||
Depreciation and amortization | (160,421 | ) | |||||||||||||||||
General, administrative and professional fees | (22,198 | ) | |||||||||||||||||
Loss on extinguishment of debt | (29,544 | ) | |||||||||||||||||
Merger-related expenses and deal costs | (7,981 | ) | |||||||||||||||||
Other | (1,576 | ) | |||||||||||||||||
Income tax expense | (11,338 | ) | |||||||||||||||||
Discontinued operations | 43,364 | ||||||||||||||||||
Net income | $ | 90,092 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Capital expenditures: | |||||||
Triple-net leased | $ | 13,180 | $ | 4,863 | |||
Senior living | 20,168 | 17,166 | |||||
MOB | 64,210 | 19,764 | |||||
Total capital expenditures | $ | 97,558 | $ | 41,793 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Revenues: | |||||||
United States | $ | 661,488 | $ | 542,823 | |||
Canada | 23,380 | 23,601 | |||||
Total revenues | $ | 684,868 | $ | 566,424 |
As of March 31, 2013 | As of December 31, 2012 | ||||||
(In thousands) | |||||||
Net real estate property: | |||||||
United States | $ | 16,605,758 | $ | 16,711,508 | |||
Canada | 389,979 | 400,024 | |||||
Total net real estate property | $ | 16,995,737 | $ | 17,111,532 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Assets | |||||||||||||||||||
Net real estate investments | $ | 7,463 | $ | 406,350 | $ | 17,166,288 | $ | — | $ | 17,580,101 | |||||||||
Cash and cash equivalents | 3,219 | — | 54,471 | — | 57,690 | ||||||||||||||
Escrow deposits and restricted cash | 6,298 | 1,713 | 91,214 | — | 99,225 | ||||||||||||||
Deferred financing costs, net | 758 | 44,346 | 8,975 | — | 54,079 | ||||||||||||||
Investment in and advances to affiliates | 10,390,975 | 1,867,251 | — | (12,258,226 | ) | — | |||||||||||||
Other assets | 33,907 | 7,322 | 874,597 | — | 915,826 | ||||||||||||||
Total assets | $ | 10,442,620 | $ | 2,326,982 | $ | 18,195,545 | $ | (12,258,226 | ) | $ | 18,706,921 | ||||||||
Liabilities and equity | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Senior notes payable and other debt | $ | — | $ | 4,953,603 | $ | 3,342,305 | $ | — | $ | 8,295,908 | |||||||||
Intercompany loans | 3,704,278 | (4,541,877 | ) | 837,599 | — | — | |||||||||||||
Accrued interest | — | 35,049 | 23,037 | — | 58,086 | ||||||||||||||
Accounts payable and other liabilities | 85,112 | 11,083 | 814,497 | — | 910,692 | ||||||||||||||
Deferred income taxes | 261,122 | — | — | — | 261,122 | ||||||||||||||
Total liabilities | 4,050,512 | 457,858 | 5,017,438 | — | 9,525,808 | ||||||||||||||
Redeemable OP unitholder and noncontrolling interests | — | — | 194,302 | — | 194,302 | ||||||||||||||
Total equity | 6,392,108 | 1,869,124 | 12,983,805 | (12,258,226 | ) | 8,986,811 | |||||||||||||
Total liabilities and equity | $ | 10,442,620 | $ | 2,326,982 | $ | 18,195,545 | $ | (12,258,226 | ) | $ | 18,706,921 |
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 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | 641 | $ | 69,733 | $ | 254,535 | $ | — | $ | 324,909 | |||||||||
Resident fees and services | — | — | 339,170 | — | 339,170 | ||||||||||||||
Medical office building and other services revenue | — | — | 3,648 | — | 3,648 | ||||||||||||||
Income from loans and investments | 103 | 294 | 15,706 | — | 16,103 | ||||||||||||||
Equity earnings in affiliates | 116,075 | — | 250 | (116,325 | ) | — | |||||||||||||
Interest and other income | 37 | 5 | 996 | — | 1,038 | ||||||||||||||
Total revenues | 116,856 | 70,032 | 614,305 | (116,325 | ) | 684,868 | |||||||||||||
Expenses: | |||||||||||||||||||
Interest | (467 | ) | 32,526 | 47,541 | — | 79,600 | |||||||||||||
Depreciation and amortization | 1,077 | 7,432 | 170,508 | — | 179,017 | ||||||||||||||
Property-level operating expenses | — | 102 | 267,347 | — | 267,449 | ||||||||||||||
Medical office building services costs | — | — | 1,639 | — | 1,639 | ||||||||||||||
General, administrative and professional fees | (13 | ) | 5,622 | 23,165 | — | 28,774 | |||||||||||||
Merger-related expenses and deal costs | 2,749 | — | 1,513 | — | 4,262 | ||||||||||||||
Other | 40 | 21 | 4,526 | — | 4,587 | ||||||||||||||
Total expenses | 3,386 | 45,703 | 516,239 | — | 565,328 | ||||||||||||||
Income from continuing operations before income from unconsolidated entities, income taxes and noncontrolling interest | 113,470 | 24,329 | 98,066 | (116,325 | ) | 119,540 | |||||||||||||
Income from unconsolidated entities | — | 287 | 642 | — | 929 | ||||||||||||||
Income tax expense | (1,744 | ) | — | — | — | (1,744 | ) | ||||||||||||
Income from continuing operations | 111,726 | 24,616 | 98,708 | (116,325 | ) | 118,725 | |||||||||||||
Discontinued operations | 467 | 395 | (6,489 | ) | — | (5,627 | ) | ||||||||||||
Net income | 112,193 | 25,011 | 92,219 | (116,325 | ) | 113,098 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 905 | — | 905 | ||||||||||||||
Net income attributable to common stockholders | $ | 112,193 | $ | 25,011 | $ | 91,314 | $ | (116,325 | ) | $ | 112,193 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Rental income | $ | 623 | $ | 67,435 | $ | 199,482 | $ | — | $ | 267,540 | |||||||||
Resident fees and services | — | — | 285,193 | — | 285,193 | ||||||||||||||
Medical office building and other services revenue | — | — | 5,608 | — | 5,608 | ||||||||||||||
Income from loans and investments | 939 | 469 | 6,628 | — | 8,036 | ||||||||||||||
Equity earnings in affiliates | 61,178 | — | 47 | (61,225 | ) | — | |||||||||||||
Interest and other income | 29 | 5 | 13 | — | 47 | ||||||||||||||
Total revenues | 62,769 | 67,909 | 496,971 | (61,225 | ) | 566,424 | |||||||||||||
Expenses: | |||||||||||||||||||
Interest | (724 | ) | 21,120 | 47,734 | — | 68,130 | |||||||||||||
Depreciation and amortization | 709 | 7,631 | 152,081 | — | 160,421 | ||||||||||||||
Property-level operating expenses | — | 123 | 215,714 | — | 215,837 | ||||||||||||||
Medical office building services costs | — | — | 2,988 | — | 2,988 | ||||||||||||||
General, administrative and professional fees | 903 | 6,997 | 14,298 | — | 22,198 | ||||||||||||||
Loss (gain) on extinguishment of debt | — | 29,731 | (187 | ) | — | 29,544 | |||||||||||||
Merger-related expenses and deal costs | 1,365 | — | 6,616 | — | 7,981 | ||||||||||||||
Other | 37 | — | 1,539 | — | 1,576 | ||||||||||||||
Total expenses | 2,290 | 65,602 | 440,783 | — | 508,675 | ||||||||||||||
Income from continuing operations before income from unconsolidated entities, income taxes and noncontrolling interest | 60,479 | 2,307 | 56,188 | (61,225 | ) | 57,749 | |||||||||||||
Income from unconsolidated entities | — | 317 | — | — | 317 | ||||||||||||||
Income tax expense | (11,338 | ) | — | — | — | (11,338 | ) | ||||||||||||
Income from continuing operations | 49,141 | 2,624 | 56,188 | (61,225 | ) | 46,728 | |||||||||||||
Discontinued operations | 41,485 | 2,111 | (232 | ) | — | 43,364 | |||||||||||||
Net income | 90,626 | 4,735 | 55,956 | (61,225 | ) | 90,092 | |||||||||||||
Net loss attributable to noncontrolling interest | — | — | (534 | ) | — | (534 | ) | ||||||||||||
Net income attributable to common stockholders | $ | 90,626 | $ | 4,735 | $ | 56,490 | $ | (61,225 | ) | $ | 90,626 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 112,193 | $ | 25,011 | $ | 92,219 | $ | (116,325 | ) | $ | 113,098 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Foreign currency translation | — | — | (2,091 | ) | — | (2,091 | ) | ||||||||||||
Change in unrealized gain on marketable debt securities | 61 | — | — | — | 61 | ||||||||||||||
Other | — | — | 504 | — | 504 | ||||||||||||||
Total other comprehensive (loss) income | 61 | — | (1,587 | ) | — | (1,526 | ) | ||||||||||||
Comprehensive income | 112,132 | 25,011 | 90,632 | (116,325 | ) | 111,572 | |||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 905 | — | 905 | ||||||||||||||
Comprehensive income attributable to common stockholders | $ | 112,132 | $ | 25,011 | $ | 89,727 | $ | (116,325 | ) | $ | 110,667 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 90,626 | $ | 4,735 | $ | 55,956 | $ | (61,225 | ) | $ | 90,092 | ||||||||
Other comprehensive loss: | |||||||||||||||||||
Foreign currency translation | — | — | 1,949 | — | 1,949 | ||||||||||||||
Change in unrealized gain on marketable debt securities | (308 | ) | — | — | — | (308 | ) | ||||||||||||
Other | — | — | 223 | — | 223 | ||||||||||||||
Total other comprehensive loss | (308 | ) | — | 2,172 | — | 1,864 | |||||||||||||
Comprehensive income | 90,318 | 4,735 | 58,128 | (61,225 | ) | 91,956 | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (534 | ) | — | (534 | ) | ||||||||||||
Comprehensive income attributable to common stockholders | $ | 90,318 | $ | 4,735 | $ | 58,662 | $ | (61,225 | ) | $ | 92,490 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (26,368 | ) | $ | 51,309 | $ | 205,364 | $ | — | $ | 230,305 | ||||||||
Net cash (used in) provided by investing activities | (47,169 | ) | (5,835 | ) | 112,477 | — | 59,473 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net change in borrowings under revolving credit facility | — | (376,000 | ) | 84 | — | (375,916 | ) | ||||||||||||
Proceeds from debt | — | 758,460 | 158,411 | — | 916,871 | ||||||||||||||
Repayment of debt | (11,420 | ) | — | (624,373 | ) | — | (635,793 | ) | |||||||||||
Net change in intercompany debt | 279,196 | (415,487 | ) | 136,291 | — | — | |||||||||||||
Payment of deferred financing costs | — | (12,160 | ) | (1,648 | ) | — | (13,808 | ) | |||||||||||
Issuance of common stock, net | 5,050 | — | — | — | 5,050 | ||||||||||||||
Cash distribution (to) from affiliates | (17,903 | ) | (238 | ) | 18,141 | — | — | ||||||||||||
Cash distribution to common stockholders | (195,700 | ) | — | — | — | (195,700 | ) | ||||||||||||
Cash distribution to redeemable OP unitholders | (1,151 | ) | — | — | — | (1,151 | ) | ||||||||||||
Purchases of redeemable OP units | (108 | ) | — | — | — | (108 | ) | ||||||||||||
Distributions to noncontrolling interest | — | — | (1,450 | ) | — | (1,450 | ) | ||||||||||||
Other | 2,058 | — | — | — | 2,058 | ||||||||||||||
Net cash provided by (used in) financing activities | 60,022 | (45,425 | ) | (314,544 | ) | — | (299,947 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (13,515 | ) | 49 | 3,297 | — | (10,169 | ) | ||||||||||||
Effect of foreign currency translation on cash and cash equivalents | — | (49 | ) | — | — | (49 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 16,734 | — | 51,174 | — | 67,908 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 3,219 | $ | — | $ | 54,471 | $ | — | $ | 57,690 |
Ventas, Inc. | Ventas Issuers | Ventas Subsidiaries | Consolidated Elimination | Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (2,966 | ) | $ | 70,263 | $ | 177,664 | $ | — | $ | 244,961 | ||||||||
Net cash provided by (used in) investing activities | 8,347 | (15,038 | ) | (33,621 | ) | — | (40,312 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net change in borrowings under revolving credit facility | — | (380,000 | ) | (2,398 | ) | — | (382,398 | ) | |||||||||||
Proceeds from debt | — | 591,384 | 75,946 | — | 667,330 | ||||||||||||||
Repayment of debt | — | (206,500 | ) | (92,301 | ) | — | (298,801 | ) | |||||||||||
Net change in intercompany debt | 219,912 | (22,107 | ) | (197,805 | ) | — | — | ||||||||||||
Payment of deferred financing costs | — | (1,473 | ) | (320 | ) | — | (1,793 | ) | |||||||||||
Cash distribution (to) from affiliates | (37,550 | ) | (36,584 | ) | 74,134 | — | — | ||||||||||||
Cash distribution to common stockholders | (179,253 | ) | — | — | — | (179,253 | ) | ||||||||||||
Cash distribution to redeemable OP unitholders | (1,112 | ) | — | — | — | (1,112 | ) | ||||||||||||
Purchases of redeemable OP units | (233 | ) | (233 | ) | |||||||||||||||
Distributions to noncontrolling interest | — | — | (1,592 | ) | — | (1,592 | ) | ||||||||||||
Other | 565 | — | — | — | 565 | ||||||||||||||
Net cash provided by (used in) financing activities | 2,329 | (55,280 | ) | (144,336 | ) | — | (197,287 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 7,710 | (55 | ) | (293 | ) | — | 7,362 | ||||||||||||
Effect of foreign currency translation on cash and cash equivalents | — | 55 | — | — | 55 | ||||||||||||||
Cash and cash equivalents at beginning of period | 2,335 | — | 43,472 | — | 45,807 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 10,045 | $ | — | $ | 43,179 | $ | — | $ | 53,224 |
• | The ability and willingness of our tenants, operators, borrowers, managers and other third parties to satisfy their obligations under their respective contractual arrangements with us, including, in some cases, their obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; |
• | The ability of our tenants, operators, borrowers and managers to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to third parties, including without limitation obligations under their existing credit facilities and other indebtedness; |
• | Our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments, including investments in different asset types and outside the United States; |
• | Macroeconomic conditions such as a disruption of or lack of access to the capital markets, changes in the debt rating on U.S. government securities, default or delay in payment by the United States of its obligations, and changes in the federal budget resulting in the reduction or nonpayment of Medicare or Medicaid reimbursement rates; |
• | The nature and extent of future competition; |
• | The extent of future or pending healthcare reform and regulation, including cost containment measures and changes in reimbursement policies, procedures and rates; |
• | Increases in our borrowing costs as a result of changes in interest rates and other factors; |
• | The ability of our operators and managers, as applicable, to comply with laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract residents and patients; |
• | Changes in general economic conditions or economic conditions in the markets in which we may, from time to time, compete, and the effect of those changes on our revenues, earnings and funding sources; |
• | Our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due; |
• | Our ability and willingness to maintain our qualification as a REIT in light of economic, market, legal, tax and other considerations; |
• | Final determination of our taxable net income for the year ended December 31, 2012 and for the year ending December 31, 2013; |
• | The ability and willingness of our tenants to renew their leases with us upon expiration of the leases, our ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we exercise our right to replace an existing tenant, and obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; |
• | Risks associated with our senior living operating portfolio, such as factors that can cause volatility in our operating income and earnings generated by those properties, including without limitation national and regional economic conditions, costs of food, materials, energy, labor and services, employee benefit costs, insurance costs and professional and general liability claims, and the timely delivery of accurate property-level financial results for those properties; |
• | Changes in U.S. and Canadian currency exchange rates; |
• | Year-over-year changes in the Consumer Price Index (“CPI”) and the effect of those changes on the rent escalators contained in our leases, including the rent escalators for two of our master lease agreements with Kindred Healthcare, Inc. (together with its subsidiaries, “Kindred”), and our earnings; |
• | Our ability and the ability of our tenants, operators, borrowers and managers to obtain and maintain adequate property, liability and other insurance from reputable, financially stable providers; |
• | The impact of increased operating costs and uninsured professional liability claims on the liquidity, financial condition and results of operations of our tenants, operators, borrowers and managers and the ability of our tenants, operators, borrowers and managers to accurately estimate the magnitude of those claims; |
• | Risks associated with our medical office building (“MOB”) portfolio and operations, including our ability to successfully design, develop and manage MOBs, to accurately estimate our costs in fixed fee-for-service projects and to retain key personnel; |
• | The ability of the hospitals on or near whose campuses our MOBs are located and their affiliated health systems to remain competitive and financially viable and to attract physicians and physician groups; |
• | Our ability to build, maintain and expand our relationships with existing and prospective hospital and health system clients; |
• | Risks associated with our investments in joint ventures and unconsolidated entities, including our lack of sole decision-making authority and our reliance on our joint venture partners’ financial condition; |
• | The impact of market or issuer events on the liquidity or value of our investments in marketable securities; |
• | Merger and acquisition activity in the healthcare and seniors housing industries resulting in a change of control of, or a competitor’s investment in, one or more of our tenants, operators, borrowers or managers or significant changes in the senior management of our tenants, operators, borrowers or managers; and |
• | The impact of litigation or any financial, accounting, legal or regulatory issues that may affect us or our tenants, operators, borrowers or managers. |
• | We paid the first quarterly installment of our 2013 dividend in the amount of $0.67 per share, which represents an 8% increase over the prior year. |
• | We issued and sold $500.0 million aggregate principal amount of 2.700% senior notes due 2020 and $258.8 million aggregate principal amount of 5.45% senior notes due 2043. |
• | We established an “at-the-market” equity offering program through which we may sell up to an aggregate of $750.0 million of our common stock. |
• | We sold assets, including loans, and received final repayment on loans receivable for aggregate proceeds of $156 million. |
As of March 31, 2013 | As of December 31, 2012 | ||||
Investment mix by asset type (1): | |||||
Seniors housing communities | 61.5 | % | 61.2 | % | |
MOBs | 18.9 | 18.6 | |||
Skilled nursing and other facilities | 14.8 | 14.8 | |||
Hospitals | 2.4 | 2.3 | |||
Secured loans receivable, net | 2.4 | 3.1 | |||
Investment mix by tenant, operator and manager(1): | |||||
Atria | 18.0 | % | 17.8 | % | |
Sunrise | 14.8 | 14.8 | |||
Brookdale Senior Living | 10.5 | 10.4 | |||
Kindred | 4.0 | 4.4 | |||
All other | 52.7 | 52.6 |
(1) | Ratios are based on the gross book value of real estate investments (excluding assets classified as held for sale) as of each reporting date. |
For the Three Months Ended March 31, | |||||
2013 | 2012 | ||||
Operations mix by tenant and operator and business model: | |||||
Revenues(1): | |||||
Senior living operations(2) | 50.0 | % | 50.4 | % | |
Kindred | 9.3 | 11.1 | |||
Brookdale Senior Living | 5.8 | 7.0 | |||
All others | 34.9 | 31.5 | |||
Adjusted EBITDA(3): | |||||
Senior living operations(2) | 27.1 | % | 25.7 | % | |
Kindred | 15.1 | 16.9 | |||
Brookdale Senior Living | 9.5 | 12.2 | |||
All others | 48.3 | 45.2 | |||
NOI(4): | |||||
Senior living operations(2) | 26.1 | % | 25.9 | % | |
Kindred | 15.4 | 18.1 | |||
Brookdale Senior Living | 9.5 | 11.4 | |||
All others | 49.0 | 44.6 | |||
Operations mix by geographic location(5): | |||||
California | 14.0 | % | 14.7 | % | |
New York | 10.1 | 10.4 | |||
Texas | 6.5 | 6.1 | |||
Illinois | 4.7 | 5.3 | |||
Massachusetts | 4.3 | 5.0 | |||
All others | 60.4 | 58.5 |
(1) | Total revenues include medical office building and other services revenue, revenue from loans and investments and interest and other income (excluding amounts in discontinued operations). |
(2) | Amounts relate to the actual period of ownership and do not necessarily reflect a full period. |
(3) | “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization (including non-cash stock-based compensation expense), excluding net loss on extinguishment of debt, merger-related expenses and deal costs, net gains on real estate activity and changes in the fair value of financial instruments (including amounts in discontinued operations). |
(4) | “NOI” represents net operating income, which is defined as total revenues, less interest and other income, property-level operating expenses and medical office building services costs (excluding amounts in discontinued operations). |
(5) | Ratios are based on total revenues for each period presented (excluding amounts in discontinued operations). |
For the Three Months Ended March 31, | Increase (Decrease) to Income | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Segment NOI: | ||||||||||||||
Triple-Net Leased Properties | $ | 214,874 | $ | 204,684 | $ | 10,190 | 5.0 | % | ||||||
Senior Living Operations | 108,262 | 90,059 | 18,203 | 20.2 | ||||||||||
MOB Operations | 75,503 | 44,773 | 30,730 | 68.6 | ||||||||||
All Other | 16,103 | 8,036 | 8,067 | > 100 | ||||||||||
Total segment NOI | 414,742 | 347,552 | 67,190 | 19.3 | ||||||||||
Interest and other income | 1,038 | 47 | 991 | > 100 | ||||||||||
Interest expense | (79,600 | ) | (68,130 | ) | (11,470 | ) | (16.8 | ) | ||||||
Depreciation and amortization | (179,017 | ) | (160,421 | ) | (18,596 | ) | (11.6 | ) | ||||||
General, administrative and professional fees | (28,774 | ) | (22,198 | ) | (6,576 | ) | (29.6 | ) | ||||||
Loss on extinguishment of debt | — | (29,544 | ) | 29,544 | 100.0 | |||||||||
Merger-related expenses and deal costs | (4,262 | ) | (7,981 | ) | 3,719 | 46.6 | ||||||||
Other | (4,587 | ) | (1,576 | ) | (3,011 | ) | ( > 100 ) | |||||||
Income before income from unconsolidated entities, income taxes, discontinued operations and noncontrolling interest | 119,540 | 57,749 | 61,791 | > 100 | ||||||||||
Income from unconsolidated entities | 929 | 317 | 612 | > 100 | ||||||||||
Income tax expense | (1,744 | ) | (11,338 | ) | 9,594 | 84.6 | ||||||||
Income from continuing operations | 118,725 | 46,728 | 71,997 | > 100 | ||||||||||
Discontinued operations | (5,627 | ) | 43,364 | (48,991 | ) | ( > 100 ) | ||||||||
Net income | 113,098 | 90,092 | 23,006 | 25.5 | ||||||||||
Net income (loss) attributable to noncontrolling interest | 905 | (534 | ) | (1,439 | ) | ( > 100 ) | ||||||||
Net income attributable to common stockholders | $ | 112,193 | $ | 90,626 | 21,567 | 23.8 |
For the Three Months Ended March 31, | Increase (Decrease) to NOI | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Segment NOI—Triple-Net Leased Properties: | ||||||||||||||
Rental income | $ | 213,763 | $ | 203,575 | $ | 10,188 | 5.0 | % | ||||||
Other services revenue | 1,111 | 1,109 | 2 | 0.2 | ||||||||||
Segment NOI | $ | 214,874 | $ | 204,684 | 10,190 | 5.0 |
Number of Properties at March 31, 2013 (1) | Average Occupancy For the Three Months Ended December 31, 2012 (1) | Number of Properties at March 31, 2012 (2) | Average Occupancy For the Three Months Ended December 31, 2011 (2) | ||||||||
Seniors Housing Communities | 434 | 86.0 | % | 414 | 86.3 | % | |||||
Skilled Nursing Facilities | 367 | 80.9 | 365 | 83.0 | |||||||
Hospitals | 46 | 56.7 | 46 | 55.9 |
(1) | Excludes 34 seniors housing communities and skilled nursing facilities included in investments in unconsolidated entities, one development property that was completed during the three months ended March 31, 2013 and eight other facilities for which we do not receive occupancy information. |
(2) | Excludes 34 seniors housing communities and skilled nursing facilities included in investments in unconsolidated entities, 52 properties sold after March 31, 2012 or classified as held for sale as of March 31, 2013 and eight other facilities for which we do not receive occupancy information. |
For the Three Months Ended March 31, | Increase (Decrease) to Income | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Same-Store Segment NOI—Triple-Net Leased Properties: | ||||||||||||||
Rental income | $ | 207,772 | $ | 203,528 | $ | 4,244 | 2.1 | % | ||||||
Other services revenue | 1,111 | 1,109 | 2 | 0.2 | ||||||||||
Segment NOI | $ | 208,883 | $ | 204,637 | 4,246 | 2.1 |
For the Three Months Ended March 31, | Increase (Decrease) to Income | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Segment NOI—Senior Living Operations: | ||||||||||||||
Total revenues | $ | 339,170 | $ | 285,193 | $ | 53,977 | 18.9 | % | ||||||
Less: | ||||||||||||||
Property-level operating expenses | (230,908 | ) | (195,134 | ) | (35,774 | ) | (18.3 | ) | ||||||
Segment NOI | $ | 108,262 | $ | 90,059 | 18,203 | 20.2 |
For the Three Months Ended March 31, | Increase (Decrease) to Income | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Same-Store Stabilized Segment NOI—Senior Living Operations: | ||||||||||||||
Total revenues | $ | 285,821 | $ | 270,496 | $ | 15,325 | 5.7 | % | ||||||
Less: | ||||||||||||||
Property-level operating expenses | (194,944 | ) | (184,335 | ) | (10,609 | ) | (5.8 | ) | ||||||
Segment NOI | $ | 90,877 | $ | 86,161 | 4,716 | 5.5 |
Number of Properties at March 31, | Average Unit Occupancy For the Three Months Ended March 31, | Average Monthly Revenue Per Occupied Room For the Three Months Ended March 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stabilized communities | 215 | 189 | 91.2 | % | 89.1 | % | $ | 5,508 | $ | 5,352 | |||||||||
Non-stabilized communities | 7 | 9 | 86.6 | 76.6 | 5,086 | 5,240 | |||||||||||||
Total | 222 | 198 | 91.0 | 88.4 | 5,492 | 5,347 | |||||||||||||
Same-store stabilized communities | 188 | 188 | 91.3 | 89.1 | 5,521 | 5,361 |
For the Three Months Ended March 31, | Increase (Decrease) to NOI | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Segment NOI—MOB Operations: | ||||||||||||||
Rental income | $ | 111,146 | $ | 63,965 | $ | 47,181 | 73.8 | % | ||||||
Medical office building services revenue | 2,537 | 4,499 | (1,962 | ) | (43.6 | ) | ||||||||
Total revenues | 113,683 | 68,464 | 45,219 | 66.0 | ||||||||||
Less: | ||||||||||||||
Property-level operating expenses | (36,541 | ) | (20,703 | ) | (15,838 | ) | (76.5 | ) | ||||||
Medical office building services costs | (1,639 | ) | (2,988 | ) | 1,349 | 45.1 | ||||||||
Segment NOI | $ | 75,503 | $ | 44,773 | 30,730 | 68.6 |
For the Three Months Ended March 31, | Increase (Decrease) to Income | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Same-Store Stabilized Segment NOI—MOB Operations: | ||||||||||||||
Rental income | $ | 56,504 | $ | 55,744 | $ | 760 | 1.4 | % | ||||||
Less: | ||||||||||||||
Property-level operating expenses | (17,941 | ) | (17,707 | ) | (234 | ) | (1.3 | ) | ||||||
Segment NOI | $ | 38,563 | $ | 38,037 | 526 | 1.4 |
Number of Properties at March 31, | Occupancy at March 31, | Annualized Average Rent Per Occupied Square Foot for the Three Months Ended March 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stabilized MOBs | 288 | 174 | 91.8 | % | 91.6 | % | $ | 30 | $ | 29 | |||||||||
Non-stabilized MOBs | 14 | 12 | 74.4 | 76.0 | 37 | 35 | |||||||||||||
Total | 302 | 186 | 90.5 | 89.7 | 30 | 30 | |||||||||||||
Same-store stabilized MOBs | 173 | 173 | 90.6 | 91.5 | 30 | 29 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Net income attributable to common stockholders | $ | 112,193 | $ | 90,626 | |||
Adjustments: | |||||||
Real estate depreciation and amortization | 177,739 | 159,519 | |||||
Real estate depreciation related to noncontrolling interest | (2,502 | ) | (1,511 | ) | |||
Real estate depreciation related to unconsolidated entities | 1,646 | 2,175 | |||||
Gain on re-measurement of equity interest upon acquisition, net | (1,241 | ) | — | ||||
Discontinued operations: | |||||||
Gain on real estate dispositions, net | (477 | ) | (40,233 | ) | |||
Depreciation on real estate assets | 7,926 | 4,215 | |||||
FFO | 295,284 | 214,791 | |||||
Adjustments: | |||||||
Change in fair value of financial instruments | 25 | 33 | |||||
Income tax expense | 1,744 | 11,305 | |||||
Loss on extinguishment of debt | — | 29,544 | |||||
Merger-related expenses and deal costs | 4,262 | 7,981 | |||||
Amortization of other intangibles | 256 | 256 | |||||
Normalized FFO | $ | 301,571 | $ | 263,910 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Net income | $ | 113,098 | $ | 90,092 | |||
Adjustments: | |||||||
Interest (including amounts in discontinued operations) | 80,329 | 71,650 | |||||
Loss on extinguishment of debt, net | — | 29,544 | |||||
Taxes (including amounts in general, administrative and professional fees) (including amounts in discontinued operations) | 2,893 | 12,270 | |||||
Depreciation and amortization (including amounts in discontinued operations) | 186,943 | 164,636 | |||||
Non-cash stock-based compensation expense | 5,662 | 4,834 | |||||
Merger-related expenses and deal costs | 4,262 | 7,981 | |||||
Gain on real estate dispositions, net | (477 | ) | (40,233 | ) | |||
Change in fair value of financial instruments | 25 | 33 | |||||
Gain on re-measurement of equity interest upon acquisition, net | (1,241 | ) | — | ||||
Adjusted EBITDA | $ | 391,494 | $ | 340,807 |
For the Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Net income | $ | 113,098 | $ | 90,092 | |||
Adjustments: | |||||||
Interest and other income (including amounts in discontinued operations) | (1,038 | ) | (1,869 | ) | |||
Interest (including amounts in discontinued operations) | 80,329 | 71,650 | |||||
Depreciation and amortization (including amounts in discontinued operations) | 186,943 | 164,636 | |||||
General, administrative and professional fees (including amounts in discontinued operations) | 28,774 | 22,201 | |||||
Loss on extinguishment of debt | — | 29,544 | |||||
Merger-related expenses and deal costs | 4,262 | 7,981 | |||||
Other (including amounts in discontinued operations) | 4,063 | 2,156 | |||||
Income from unconsolidated entities | (929 | ) | (317 | ) | |||
Income tax expense (including amounts in discontinued operations) | 1,744 | 11,305 | |||||
Gain on real estate dispositions, net | (477 | ) | (40,233 | ) | |||
NOI (including amounts in discontinued operations) | 416,769 | 357,146 | |||||
Discontinued operations | (2,027 | ) | (9,594 | ) | |||
NOI (excluding amounts in discontinued operations) | $ | 414,742 | $ | 347,552 |
For the Three Months Ended March 31, | Increase (Decrease) to Cash | |||||||||||||
2013 | 2012 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Cash and cash equivalents at beginning of period | $ | 67,908 | $ | 45,807 | $ | 22,101 | 48.2 | % | ||||||
Net cash provided by operating activities | 230,305 | 244,961 | (14,656 | ) | (6.0 | ) | ||||||||
Net cash provided by (used in) investing activities | 59,473 | (40,312 | ) | 99,785 | > 100 | |||||||||
Net cash used in financing activities | (299,947 | ) | (197,287 | ) | (102,660 | ) | (52.0 | ) | ||||||
Effect of foreign currency translation on cash and cash equivalents | (49 | ) | 55 | (104 | ) | ( > 100 ) | ||||||||
Cash and cash equivalents at end of period | $ | 57,690 | $ | 53,224 | $ | 4,466 | 8.4 | % |
March 31, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Gross book value | $ | 6,952,669 | $ | 6,522,295 | |||
Fair value(1) | 7,369,998 | 6,936,849 | |||||
Fair value reflecting change in interest rates(1): | |||||||
-100 BPS | 7,661,635 | 7,164,166 | |||||
+100 BPS | 6,941,347 | 6,559,949 |
(1) | The change in fair value of our fixed rate debt was due primarily to senior note issuances and repayments made in 2013. |
As of March 31, 2013 | As of December 31, 2012 | As of March 31, 2012 | |||||||||
(Dollars in thousands) | |||||||||||
Balance: | |||||||||||
Fixed rate: | |||||||||||
Senior notes and other | $ | 4,568,543 | $ | 4,079,643 | $ | 2,860,026 | |||||
Mortgage loans and other(1) | 2,384,126 | 2,442,652 | 2,339,269 | ||||||||
Variable rate: | |||||||||||
Unsecured revolving credit facility | 164,734 | 540,727 | 73,419 | ||||||||
Unsecured term loans | 682,282 | 685,336 | 504,721 | ||||||||
Mortgage loans and other(1) | 429,904 | 437,957 | 401,641 | ||||||||
Total | $ | 8,229,589 | $ | 8,186,315 | $ | 6,179,076 | |||||
Percent of total debt: | |||||||||||
Fixed rate: | |||||||||||
Senior notes and other | 55.5 | % | 49.8 | % | 46.3 | % | |||||
Mortgage loans and other(1) | 29.0 | 29.8 | 37.8 | ||||||||
Variable rate: | |||||||||||
Unsecured revolving credit facility | 2.0 | 6.6 | 1.2 | ||||||||
Unsecured term loans | 8.3 | 8.4 | 8.2 | ||||||||
Mortgage loans and other(1) | 5.2 | 5.4 | 6.5 | ||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | |||||
Weighted average interest rate at end of period: | |||||||||||
Fixed rate: | |||||||||||
Senior notes and other | 3.8 | % | 4.0 | % | 5.0 | % | |||||
Mortgage loans and other(1) | 6.1 | 6.1 | 6.1 | ||||||||
Variable rate: | |||||||||||
Unsecured revolving credit facility | 1.4 | 1.5 | 1.4 | ||||||||
Unsecured term loans | 1.6 | 1.6 | 1.7 | ||||||||
Mortgage loans and other(1) | 1.9 | 1.9 | 1.9 | ||||||||
Total | 4.1 | 4.1 | 4.9 |
(1) | The amounts presented above exclude debt related to a real estate asset classified as held for sale as of each date presented. Total mortgage debt for this property as of March 31, 2013, December 31, 2012 and March 31, 2012 was $23.0 million, $23.2 million and $23.8 million, respectively. |
Number of Shares Repurchased(1) | Average Price Per Share | |||||
January 1 through January 31 | 59,163 | $ | 65.88 | |||
February 1 through February 28 | 15,864 | 69.66 | ||||
March 1 through March 31 | 18,785 | 70.84 |
(1) | Repurchases represent shares withheld to pay (a) taxes on the vesting of restricted stock or restricted stock units or on the exercise of options granted to employees under our 2006 Incentive Plan or 2012 Incentive Plan or under the Nationwide Health Properties, Inc. (“NHP”) 2005 Performance Incentive Plan and assumed by us in connection with our acquisition of NHP or (b) the exercise price of options granted to employees under the NHP 2005 Performance Incentive Plan and assumed by us in connection with our acquisition of NHP. The value of the shares withheld is the closing price of our common stock on the date the vesting or exercise occurred (or, if not a trading day, the immediately preceding trading day) or the fair market value of our common stock at the time of exercise, as the case may be. |
Exhibit Number | Description of Document | Location of Document | |
4.1 | Ninth Supplemental Indenture dated as of March 7, 2013 by and among Ventas Realty, Limited Partnership and Ventas Capital Corporation, as Issuers, Ventas, Inc., as Guarantor, and U.S. Bank National Association, as Trustee. | Incorporated by reference to Exhibit 4.2 to our Registration Statement on Form 8-A, filed on March 7, 2013. | |
4.2 | Tenth Supplemental Indenture dated as of March 19, 2013 by and among Ventas Realty, Limited Partnership and Ventas Capital Corporation, as Issuers, Ventas, Inc., as Guarantor, and U.S. Bank National Association, as Trustee. | Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K, filed on March 19, 2013. | |
10.1 | Employment Agreement dated as of October 27, 2010 between Ventas, Inc. and John D. Cobb. | Filed herewith. | |
12.1 | Statement Regarding Computation of Ratios of Earnings to Fixed Charges. | Filed herewith. | |
31.1 | Certification of Debra A. Cafaro, Chairman and Chief Executive Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | Filed herewith. | |
31.2 | Certification of Richard A. Schweinhart, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | Filed herewith. | |
32.1 | Certification of Debra A. Cafaro, Chairman and Chief Executive Officer, pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350. | Filed herewith. | |
32.2 | Certification of Richard A. Schweinhart, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350. | Filed herewith. | |
101 | Interactive Data File. | Filed herewith. |
VENTAS, INC. | ||
By: | /s/ DEBRA A. CAFARO | |
Debra A. Cafaro Chairman and Chief Executive Officer | ||
By: | /s/ RICHARD A. SCHWEINHART | |
Richard A. Schweinhart Executive Vice President and Chief Financial Officer |
Exhibit Number | Description of Document | Location of Document | |
4.1 | Ninth Supplemental Indenture dated as of March 7, 2013 by and among Ventas Realty, Limited Partnership and Ventas Capital Corporation, as Issuers, Ventas, Inc., as Guarantor, and U.S. Bank National Association, as Trustee. | Incorporated by reference to Exhibit 4.2 to our Registration Statement on Form 8-A, filed on March 7, 2013. | |
4.2 | Tenth Supplemental Indenture dated as of March 19, 2013 by and among Ventas Realty, Limited Partnership and Ventas Capital Corporation, as Issuers, Ventas, Inc., as Guarantor, and U.S. Bank National Association, as Trustee. | Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K, filed on March 19, 2013. | |
10.1 | Employment Agreement dated as of October 27, 2010 between Ventas, Inc. and John D. Cobb. | Filed herewith. | |
12.1 | Statement Regarding Computation of Ratios of Earnings to Fixed Charges. | Filed herewith. | |
31.1 | Certification of Debra A. Cafaro, Chairman and Chief Executive Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | Filed herewith. | |
31.2 | Certification of Richard A. Schweinhart, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | Filed herewith. | |
32.1 | Certification of Debra A. Cafaro, Chairman and Chief Executive Officer, pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350. | Filed herewith. | |
32.2 | Certification of Richard A. Schweinhart, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350. | Filed herewith. | |
101 | Interactive Data File. | Filed herewith. |
VENTAS, INC. By: /s/ Raymond J. Lewis Title:Executive Vice President and Chief Investment Officer EMPLOYEE: /s/ John D. Cobb John D. Cobb | |
JOHN D. COBB | ||
Date: | ||
VENTAS, INC. | ||
By: | ||
Title: | ||
Date: |
STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES | ||||
(dollars in thousands) | For the Three Months Ended March 31, 2013 | |||
Income before income from unconsolidated entities, income taxes, discontinued operations and noncontrolling interest | $ | 119,540 | ||
Interest expense | ||||
Senior notes payable and other debt | 79,600 | |||
Distributions from unconsolidated entities | 2,472 | |||
Earnings | $ | 201,612 | ||
Interest | ||||
Senior notes payable and other debt expense | $ | 79,600 | ||
Interest capitalized | 278 | |||
Fixed charges | $ | 79,878 | ||
Ratio of Earnings to Fixed Charges | 2.52 |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report, any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DEBRA A. CAFARO |
Debra A. Cafaro Chairman and Chief Executive Officer |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report, any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ RICHARD A. SCHWEINHART |
Richard A. Schweinhart Executive Vice President and Chief Financial Officer |
/s/ DEBRA A. CAFARO |
Debra A. Cafaro Chairman and Chief Executive Officer |
/s/ RICHARD A. SCHWEINHART |
Richard A. Schweinhart Executive Vice President and Chief Financial Officer |
SENIOR NOTES PAYABLE AND OTHER DEBT (Details 5) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | |
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Jan. 31, 2013
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Dec. 31, 2012
community
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Debt Disclosure [Abstract] | ||
Number of communities under capital lease | 8 | |
Acquisition of facilities on capital lease | $ 145.0 |
SEGMENT INFORMATION (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
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Mar. 31, 2012
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Capital expenditures | ||
Total capital expenditures | $ 97,558 | $ 41,793 |
Triple-Net Leased Properties
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Capital expenditures | ||
Total capital expenditures | 13,180 | 4,863 |
Senior Living Operations
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Capital expenditures | ||
Total capital expenditures | 20,168 | 17,166 |
MOB Operations
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Capital expenditures | ||
Total capital expenditures | $ 64,210 | $ 19,764 |
SEGMENT INFORMATION (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary information by reportable business segment | For the three months ended March 31, 2013:
For the three months ended March 31, 2012:
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Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment | Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:
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Revenues from external customers by geographic area | Geographic information regarding our operations is as follows:
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Net real estate property by geographic area |
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ACCOUNTING POLICIES (Policies)
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3 Months Ended | ||||||||||||||||||||
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Mar. 31, 2013
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Accounting Policies [Abstract] | |||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include our accounts and the accounts of our wholly owned subsidiaries and the joint venture entities over which we exercise control. All intercompany transactions and balances have been eliminated in consolidation, and our net earnings are reduced by the portion of net earnings attributable to noncontrolling interests. GAAP requires us to identify entities for which control is achieved through means other than voting rights and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. We consolidate investments in VIEs when we are determined to be the primary beneficiary of the VIE. We may change our original assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary. We identify the primary beneficiary of a VIE as the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. We perform this analysis on an ongoing basis. At March 31, 2013, we did not have any unconsolidated VIEs. As it relates to investments in joint ventures, based on the type of rights held by the limited partner(s), GAAP may preclude consolidation by the sole general partner in certain circumstances in which the general partner would otherwise consolidate the joint venture. We assess limited partners’ rights and their impact on the presumption of control of the limited partnership by the sole general partner when an investor becomes the sole general partner, and we reassess if: there is a change to the terms or in the exercisability of the rights of the limited partners; the sole general partner increases or decreases its ownership of limited partnership interests; or there is an increase or decrease in the number of outstanding limited partnership interests. We also apply this guidance to managing member interests in limited liability companies. Redeemable OP Unitholder and Noncontrolling Interests In connection with our acquisition of Nationwide Health Properties, Inc. (“NHP”) in July 2011, we acquired a majority interest in NHP/PMB L.P. (“NHP/PMB”), a limited partnership formed in 2008 to acquire properties from entities affiliated with Pacific Medical Buildings LLC. We consolidate NHP/PMB, as our wholly owned subsidiary is the general partner and exercises control of the partnership. As of March 31, 2013, third party investors owned 2,255,629 Class A limited partnership units in NHP/PMB (“OP Units”), which represented 27.0% of the total units then outstanding, and we owned 6,101,930 Class B limited partnership units in NHP/PMB, representing the remaining 73.0%. At any time following the first anniversary of the date of their issuance, the OP Units may be redeemed at the election of the holder for cash or, at our option, 0.7866 shares of our common stock per unit, subject to adjustment in certain circumstances. We are party by assumption to a registration rights agreement with the holders of the OP Units that requires us, subject to the terms and conditions set forth therein, to file and maintain a registration statement relating to the issuance of shares of our common stock upon redemption of OP Units. As redemption rights are beyond our control, the redeemable OP unitholder interests are classified outside of permanent equity on our Consolidated Balance Sheets. We applied the provisions of ASC Topic 480, Distinguishing Liabilities from Equity, to reflect the redeemable OP unitholder interests at the greater of cost or fair value. As of March 31, 2013 and December 31, 2012, the fair value of the redeemable OP unitholder interests was $129.8 million and $114.9 million, respectively. We recognize changes in fair value through capital in excess of par value, net of cash distributions paid and purchases by us of any OP Units. Our diluted earnings per share (“EPS”) includes the effect of any potential shares outstanding from redemption of the OP Units. Certain noncontrolling interests of other consolidated joint ventures were also classified as redeemable at March 31, 2013 and December 31, 2012. Accordingly, we record the carrying amount of these noncontrolling interests at the greater of (i) their initial carrying amount, increased or decreased for the noncontrolling interest’s share of net income or loss and distributions, or (ii) the redemption value. With respect to these joint ventures, our joint venture partner has certain redemption rights that are beyond our control and the redeemable noncontrolling interests are classified outside of permanent equity on our Consolidated Balance Sheets. We recognize changes in carrying value of redeemable noncontrolling interests through capital in excess of par value. Noncontrolling Interests Other than redeemable noncontrolling interests described above, we present the portion of any equity that we do not own in entities that we control (and thus consolidate) as noncontrolling interests and classify those interests as a component of consolidated equity, separate from total Ventas stockholders’ equity, on our Consolidated Balance Sheets. For earnings of consolidated joint ventures with pro rata distribution allocations, net income or loss is allocated between the partners in the joint venture based on their respective stated ownership percentages. In other instances, net income or loss is allocated between the partners in the joint venture based on the hypothetical liquidation at book value method (the “HLBV method”). We account for purchases or sales of equity interests that do not result in a change of control as equity transactions, through capital in excess of par value. In addition, we include net income attributable to the noncontrolling interests in net income in our Consolidated Statements of Income. |
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Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair value is a market-based measurement, not an entity-specific measurement, and we determine fair value based on the assumptions that we expect market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, GAAP establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy). Level one inputs utilize unadjusted quoted prices for identical assets or liabilities in active markets that we have the ability to access. Level two inputs are inputs other than quoted prices included in level one that are directly or indirectly observable for the asset or liability. Level two inputs may include quoted prices for similar assets and liabilities in active markets, as well as other inputs for the asset or liability, such as interest rates, foreign exchange rates and yield curves, that are observable at commonly quoted intervals. Level three inputs are unobservable inputs for the asset or liability, which are typically based on our own assumptions, as there is little, if any, related market activity. If the determination of the fair value measurement is based on inputs from different levels of the hierarchy, the level within which the entire fair value measurement falls is the lowest level input that is significant to the fair value measurement in its entirety. If the volume and level of market activity for an asset or liability has decreased significantly relative to the normal market activity for such asset or liability (or similar assets or liabilities), then transactions or quoted prices may not accurately reflect fair value. In addition, if there is evidence that a transaction for an asset or liability is not orderly, little, if any, weight is placed on that transaction price as an indicator of fair value. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We use the following methods and assumptions in estimating the fair value of our financial instruments.
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Revenue Recognition | Revenue Recognition Triple-Net Leased Properties and MOB Operations Certain of our triple-net leases, including a majority of the leases we acquired in connection with the NHP acquisition, and most of our MOB leases provide for periodic and determinable increases in base rent. We recognize base rental revenues under these leases on a straight-line basis over the applicable lease term when collectability is reasonably assured. Recognizing rental income on a straight-line basis generally results in recognized revenues during the first half of a lease term exceeding the cash amounts contractually due from our tenants, creating a straight-line rent receivable that is included in other assets on our Consolidated Balance Sheets. At March 31, 2013 and December 31, 2012, this cumulative excess (net of allowances) totaled $128.2 million and $120.3 million, respectively. Four of our five master lease agreements with Kindred (the “Kindred Master Leases”) and certain of our other leases provide for periodic increases in base rent only if certain revenue parameters or other substantive contingencies are met. We recognize the increased rental revenue under these leases as the related parameters or contingencies are met, rather than on a straight-line basis over the applicable lease term. Senior Living Operations We recognize resident fees and services, other than move-in fees, monthly as services are provided. We recognize move-in fees on a straight-line basis over the average resident stay. Our lease agreements with residents generally have a term of 12 months to 18 months and are cancelable by the resident upon 30 days’ notice. Other We recognize interest income from loans, including discounts and premiums, using the effective interest method when collectibility is reasonably assured. We apply the effective interest method on a loan-by-loan basis and recognize discounts and premiums as yield adjustments over the related loan term. We recognize interest income on an impaired loan to the extent our estimate of the fair value of the collateral is sufficient to support the balance of the loan, other receivables and all related accrued interest. When the balance of the loan, other receivables and all related accrued interest is equal to our estimate of the fair value of the collateral, we recognize interest income on a cash basis. We provide a reserve against an impaired loan to the extent our total investment in the loan exceeds our estimate of the fair value of the loan collateral. We recognize income from rent, lease termination fees, development services, management advisory services, and all other income when all of the following criteria are met in accordance with SEC Staff Accounting Bulletin 104: (i) the applicable agreement has been fully executed and delivered; (ii) services have been rendered; (iii) the amount is fixed or determinable; and (iv) collectibility is reasonably assured. Allowances We assess the collectibility of our rent receivables, including straight-line rent receivables, and we defer recognition of revenue if collectibility is not reasonably assured. We base our assessment of the collectibility of rent receivables (other than straight-line rent receivables) on several factors, including, among other things, payment history, the financial strength of the tenant and any guarantors, the value of the underlying collateral, if any, and current economic conditions. If our evaluation of these factors indicates it is probable that we will be unable to recover the full value of the receivable, we provide a reserve against the portion of the receivable that we estimate may not be recovered. We base our assessment of the collectibility of straight-line rent receivables on several factors, including, among other things, the financial strength of the tenant and any guarantors, the historical operations and operating trends of the property, the historical payment pattern of the tenant, and the type of property. If our evaluation of these factors indicates it is probable that we will be unable to receive the rent payments due in the future, we defer recognition of the straight-line rental revenue and, in certain circumstances, provide a reserve against the previously recognized straight-line rent receivable asset for the portion, up to its full value, that we estimate may not be recovered. If we change our assumptions or estimates regarding the collectibility of future rent payments required by a lease, we may adjust our reserve to increase or reduce the rental revenue recognized and/or to increase or reduce the reserve against the previously recognized straight-line rent receivable asset. |
LITIGATION (Details) (Litigation Relating to the Cogdell Acquisition)
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0 Months Ended |
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Dec. 27, 2011
jurisdiction
lawsuit
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Litigation Relating to the Cogdell Acquisition
|
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Loss contingencies | |
Number of lawsuits filed | 7 |
Loss Contingencies, Number of Jurisdictions Lawsuits Filed | 2 |
INTANGIBLES (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
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Intangible assets: | ||
Accumulated amortization | $ (382,004) | $ (352,692) |
Goodwill | 457,598 | 490,452 |
Net intangible assets | 1,092,719 | 1,152,842 |
Remaining weighted average amortization period | 19 years 7 months 6 days | 19 years 3 months 18 days |
Intangible liabilities: | ||
Accumulated amortization | (88,442) | (78,560) |
Purchase option intangibles | 36,048 | 36,048 |
Net intangible liabilities | 405,779 | 416,361 |
Remaining weighted average amortization period | 15 years 2 months 12 days | 15 years 3 months 18 days |
Above market lease intangibles
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Intangible assets: | ||
Intangibles | 214,863 | 215,367 |
Remaining weighted average amortization period | 9 years 4 months 24 days | 9 years 6 months |
In-place and other lease intangibles
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Intangible assets: | ||
Intangibles | 769,159 | 766,337 |
Remaining weighted average amortization period | 23 years 9 months 18 days | 23 years 3 months 18 days |
Other intangibles
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||
Intangible assets: | ||
Intangibles | 33,103 | 33,378 |
Remaining weighted average amortization period | 8 years 7 months 6 days | 8 years 7 months 6 days |
Below market lease intangibles
|
||
Intangible liabilities: | ||
Lease intangibles | 429,633 | 429,907 |
Remaining weighted average amortization period | 15 years 2 months 12 days | 15 years 3 months 18 days |
Other lease intangibles
|
||
Intangible liabilities: | ||
Lease intangibles | $ 28,540 | $ 28,966 |
Remaining weighted average amortization period | 15 years 9 months 18 days | 15 years 9 months 18 days |
ACCOUNTING POLICIES (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Accounting Policies [Abstract] | ||
Straight-line rent receivables | $ 128,212 | $ 120,325 |
Term of resident lease agreements, minimum | 12 months | |
Term of resident lease agreements, maximum | 18 months | |
Notice period to cancel lease agreements by the resident | 30 days |
STOCKHOLDERS' EQUITY (Details) (USD $)
|
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Equity [Abstract] | |||
At-the-market equity offering program, authorized amount | $ 750,000,000 | ||
At-the-market equity offering program, shares issued during period | 72,300 | ||
At-the-market equity offering program, proceeds from sale of stock during period | 5,100,000 | ||
At-the-market equity offering program, payments of stock issuance costs during period | 100,000 | ||
At-the-market equity offering program, remaining authorized offering amount | 744,800,000 | 744,800,000 | |
Accumulated Other Comprehensive Income | |||
Foreign currency translation | 21,350,000 | 21,350,000 | 23,441,000 |
Unrealized gain on marketable debt securities | 868,000 | 868,000 | 807,000 |
Other | (390,000) | (390,000) | (894,000) |
Total accumulated other comprehensive income | $ 21,828,000 | $ 21,828,000 | $ 23,354,000 |
SENIOR NOTES PAYABLE AND OTHER DEBT (Details 4) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 1 Months Ended | ||
---|---|---|---|---|
Feb. 28, 2013
6.25% Senior Notes due 2013
|
Dec. 31, 2012
6.25% Senior Notes due 2013
|
Mar. 31, 2013
5.45% Senior Notes due 2043
|
Mar. 31, 2013
2.700% Senior Notes due 2020
|
|
Debt instruments | ||||
Repayments of senior debt | $ 269.9 | |||
Principal amount of debt issued | 258.8 | 500.0 | ||
Interest rate (as a percent) | 6.25% | 5.45% | 2.70% | |
Public Offering Price as a Percent of Par | 99.942% | |||
Proceeds from issuance of debt | $ 258.8 | $ 499.7 |
DESCRIPTION OF BUSINESS
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Ventas, Inc. (together with its subsidiaries, unless otherwise indicated or except where the context otherwise requires, “we,” “us” or “our”), an S&P 500 company, is a real estate investment trust (“REIT”) with a highly diversified portfolio of seniors housing and healthcare properties throughout the United States and Canada. As of March 31, 2013, we owned more than 1,400 properties, including seniors housing communities, skilled nursing and other facilities, medical office buildings (“MOBs”), and hospitals, in 46 states, the District of Columbia and two Canadian provinces, and we had two new properties under development. Our company is currently headquartered in Chicago, Illinois. We primarily acquire and own seniors housing and healthcare properties and lease our properties to unaffiliated tenants or operate them through independent third-party managers. As of March 31, 2013, we leased 890 properties (excluding MOBs and properties classified as held for sale) to various healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses, including maintenance, utilities, repairs, taxes, insurance and capital expenditures. Kindred Healthcare, Inc. (together with its subsidiaries, “Kindred”) and Brookdale Senior Living Inc. (together with its subsidiaries, “Brookdale Senior Living”) leased from us 182 properties and 148 properties (excluding six properties included in investments in unconsolidated entities), respectively, as of March 31, 2013. As of March 31, 2013, we also engaged independent operators, such as Atria Senior Living, Inc. (“Atria”) and Sunrise Senior Living, LLC (together with its subsidiaries, “Sunrise”), to manage 222 of our seniors housing communities (excluding properties classified as held for sale) pursuant to long-term management agreements. In addition, through our Lillibridge Healthcare Services, Inc. (“Lillibridge”) subsidiary and our ownership interest in PMB Real Estate Services LLC (“PMBRES”), we provide MOB management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. From time to time, we also make secured and unsecured loans and other investments relating to seniors housing and healthcare operators or properties. |