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Ventas Completes Initial Phase of Lillibridge Healthcare Services Integration and Announces Key Leadership Roles

^{Published on 2010-10-11 05:40:21 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Ventas, Inc. (NYSE:VTR) (aVentasa or the aCompanya) said today that it has completed the initial phase of the integration of Lillibridge Healthcare Services, Inc. (aLHSa), which it acquired in July 2010, with the announcement of key leadership positions, consolidation of medical office building (aMOBa) business lines and streamlining of corporate functions.

"We are very fortunate to have exceptionally talented individuals working together to grow our medical office building business to enhance shareholder value and serve our hospital and physician clients."

aWea™ve made excellent progress in establishing key reporting relationships and aligning and unifying departments as we become the national leader in medical office building real estate,a Ventas Chairman, President and Chief Executive Officer Debra A. Cafaro said. aWe are very fortunate to have exceptionally talented individuals working together to grow our medical office building business to enhance shareholder value and serve our hospital and physician clients.a

Ventas said the management structure announced at the time of the acquisition remains in place: Todd W. Lillibridge will remain CEO of LHS and EVP of Ventas, reporting to Cafaro. Joseph G. Kurzydym will continue as CFO of LHS, reporting to Lillibridge. His responsibilities include MOB asset management, MOB accounting and reporting and MOB property management. Kurzydym also reports to Ventasa™s CFO for financial matters and Ventasa™s CIO for asset and property management functions.

The Company also said that Vincent M. Cozzi, former VP of Ventas, was promoted to the newly-created position of EVP and Chief Investment Officer of LHS, reporting to Lillibridge. He was also named an SVP of Ventas.

aVince successfully spearheaded Ventasa™s MOB strategy and we are delighted that he will join LHSa™s senior leadership team to expand our MOB business,a Cafaro added.

Kevin M. Geraghty leads the Companya™s consolidated MOB Asset Management team as EVP, LHS, reporting to Kurzydym and Timothy A. Doman, SVP, Ventas Asset Management.

Michael O. Lincoln heads the MOB Hospital Business Development team serving as EVP, Hospital Business Development for LHS. He will continue to report to Lillibridge. James L. Andrews, VP of Ventas, will move to the MOB Hospital Business Development team, reporting to Lincoln.

The Company added that the following areas of MOB responsibility continue under their existing leadership:

• John D. Montgomery, EVP, Facility Development, LHS
• Margie M. McHugh, SVP, LHS Advisory Services
• Charles W. Fendrich III, EVP, Property Management, LHS
• Carla M. Lyons, VP, MOB Marketing

Ventas also said the corporate departments of Information Technology, Human Resources, Legal and Tax are consolidated under the following business heads from Ventas:

• Eric C. Oakley, Director, IT
• Julie M. Dreixler, SVP, Human Resources
• T. Richard Riney, EVP, Chief Administrative Officer and General Counsel
• Brian K. Wood, SVP, Tax

Ventas, Inc., an S&P 500 company, is a leading healthcare real estate investment trust. Its diverse portfolio of nearly 600 assets in 44 states (including the District of Columbia) and two Canadian provinces consists of seniors housing communities, skilled nursing facilities, hospitals, medical office buildings and other properties. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. More information about Ventas and Lillibridge can be found at [ www.ventasreit.com ] and [ www.lillibridge.com ].

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Companya™s or its tenantsa™, operatorsa™, managersa™ or borrowersa™ expected future financial position, results of operations, cash flows, funds from operations, dividends and dividend plans, financing plans, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, merger integration, growth opportunities, dispositions, expected lease income, continued qualification as a real estate investment trust (aREITa), plans and objectives of management for future operations and statements that include words such as aanticipate,a aif,a abelieve,a aplan,a aestimate,a aexpect,a aintend,a amay,a acould,a ashould,a awilla and other similar expressions are forward-looking statements. Such forward-looking statements are inherently uncertain, and security holders must recognize that actual results may differ from the Companya™s expectations. The Company does not undertake a duty to update such forward-looking statements, which speak only as of the date on which they are made.

The Companya™s actual future results and trends may differ materially depending on a variety of factors discussed in the Companya™s filings with the Securities and Exchange Commission. These factors include without limitation: (a) the ability and willingness of the Companya™s tenants, operators, borrowers, managers and other third parties to meet and/or perform their obligations under their respective contractual arrangements with the Company, including, in some cases, their obligations to indemnify, defend and hold harmless the Company from and against various claims, litigation and liabilities; (b) the ability of the Companya™s 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; (c) the Companya™s success in implementing its business strategy and the Companya™s ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions or investments, including those in different asset types and outside the United States; (d) the nature and extent of future competition; (e) the extent of future or pending healthcare reform and regulation, including cost containment measures and changes in reimbursement policies, procedures and rates; (f) increases in the Companya™s cost of borrowing as a result of changes in interest rates and other factors; (g) the ability of the Companya™s operators and managers, as applicable, to deliver high quality services, to attract and retain qualified personnel and to attract residents and patients; (h) the results of litigation affecting the Company; (i) changes in general economic conditions and/or economic conditions in the markets in which the Company may, from time to time, compete, and the effect of those changes on the Companya™s revenues and its ability to access the capital markets or other sources of funds; (j) the Companya™s ability to pay down, refinance, restructure and/or extend its indebtedness as it becomes due; (k) the Companya™s ability and willingness to maintain its qualification as a REIT due to economic, market, legal, tax or other considerations; (l) final determination of the Companya™s taxable net income for the year ended December 31, 2009 and for the year ending December 31, 2010; (m) the ability and willingness of the Companya™s tenants to renew their leases with the Company upon expiration of the leases and the Companya™s ability to reposition its properties on the same or better terms in the event such leases expire and are not renewed by the Companya™s tenants or in the event the Company exercises its right to replace an existing tenant upon default; (n) risks associated with the Companya™s senior living operating portfolio, such as factors causing volatility in the Companya™s operating income and earnings generated by its properties, including without limitation national and regional economic conditions, costs of 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; (o) the movement of U.S. and Canadian exchange rates; (p) year-over-year changes in the Consumer Price Index and the effect of those changes on the rent escalators, including the rent escalator for Master Lease 2 with Kindred Healthcare, Inc., and the Companya™s earnings; (q) the Companya™s ability and the ability of its tenants, operators, borrowers and managers to obtain and maintain adequate liability and other insurance from reputable and financially stable providers; (r) the impact of increased operating costs and uninsured professional liability claims on the liquidity, financial condition and results of operations of the Companya™s tenants, operators, borrowers and managers, and the ability of the Companya™s tenants, operators, borrowers and managers to accurately estimate the magnitude of those claims; (s) the ability and willingness of the lenders under the Companya™s unsecured revolving credit facilities to fund, in whole or in part, borrowing requests made by the Company from time to time; (t) risks associated with the Companya™s recent acquisition of businesses owned and operated by Lillibridge, including its ability to successfully design, develop and manage MOBs and to retain key personnel; (u) the ability of the hospitals on or near whose campuses the Companya™s MOBs are located and their affiliated health systems to remain competitive and financially viable and to attract physicians and physician groups; (v) the Companya™s ability to maintain or expand its relationships with its existing and future hospital and health system clients; (w) risks associated with the Companya™s investments in joint ventures, including its lack of sole decision-making authority and its reliance on its joint venture partnersa™ financial condition;(x) the impact of market or issuer events on the liquidity or value of the Companya™s investments in marketable securities; and (y) the impact of any financial, accounting, legal or regulatory issues that may affect the Company or its major tenants, operators or managers.Many of these factors are beyond the control of the Company and its management.