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Ventas

vtr · NYSE Real Estate
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Industry REIT - Healthcare Facilities
Employees 201-500
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FY2016 Annual Report · Ventas
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Excellence. Sustained.®

2016 Annual Report

EXCELLENCE.  SUSTAINED. 

DELIVERS 25%  
COMPOUND ANNUAL TSR 
FOR 17 YEARS1

TOTAL SHAREHOLDER RETURN (TSR)

4,640%
VENTAS    

1999   2000

2001 

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015 

2016

726%  
BLOOMBERG HEALTHCARE  
REIT INDEX

560%  
MSCI US REIT INDEX

112% 
S&P 500 INDEX

DELIVERS 16%  
TSR IN 2016

GROWTH

5%1 

6%2 

NORMALIZED FFO PER SHARE

DIVIDEND PER SHARE

ATTRACTIVE INVESTMENTS  
AND DISPOSITIONS

$2.6B 3 

ACCRETIVE INVESTMENTS

>$600M

PROFITABLE DISPOSITIONS AND LOAN REPAYMENTS 

 FINANCIAL STRENGTH

5.7x 

NET DEBT TO ADJUSTED PRO FORMA 
EBITDA4 RATIO

4.8x 

FIXED CHARGE COVERAGE

(1) Bloomberg; for the period beginning 12/31/1999 and ending 12/31/2016. Ventas prices adjusted historically for spin-off of skilled nursing facilities (SNF) in 2015.

(1) Represents Comparable normalized Funds From Operations per share growth.

(2) Q4 2016 vs. Q3 2016.
(3) Includes closed and committed investments and new development and redevelopment commitments.

(4) Earnings before interest, taxes, depreciation and amortization.

2            Introduction

2016 Annual Report

2016 Annual Report

Introduction            3

Dear Stakeholder,

In 2016, we solidified our role as the premier provider of capital to leading 
senior living and healthcare providers and research institutions, and delivered 
outstanding total shareholder return of 16 percent. With focused execution of our 
strategic priorities—superior investment activities, opportunistic dispositions and 
thoughtful balance sheet strengthening—we delivered value to our shareholders 
and to our business partners. And, we sustained excellence. 

Atria at Foster Square 
Seniors Housing

DEMOGRAPHICS AND LONGEVITY FUEL DEMAND

7x 

FASTER GROWTH
IN 75+ POPULATION 1

Economic environments  
and public policies change, 
but the inexorable demand for 
more healthcare from a  
rapidly aging population  
powers our business.

10K 

BABY BOOMERS TURN 
65 EACH DAY2

34M 

INDIVIDUALS WILL  
BE 75+ BY 20301

(1) Source: U.S. Census Bureau, Population Division.

(2) Source: Pew Research Center.

$1T 

DOMESTIC 
HEALTHCARE  
REAL ESTATE 
MARKET

5%

10%

15%

39%

n n  Outpatient Facilities / MOB
n n  Hospitals
n n  Private Pay Seniors Housing
n n  Post-Acute Facilities
n n  Life Science / Biotech Facilities 

31%

LONG RUNWAY  
FOR GROWTH

FRAGMENTED 
MARKET RIPE FOR 
CONSOLIDATION WITH 

<15% 

 OF HEALTHCARE 
ASSETS HELD  
BY REITS

Ventas operates at the intersection of two large and dynamic 
industries, healthcare and real estate, which together represent 
almost 40 percent of the $17 trillion U.S. gross domestic 
product. Megatrends of extended life spans, a burgeoning 
senior population marked by the first wave of Baby Boomers 
turning 70 and the increasing need for more healthcare, medical 
research and senior living choices are energizing demand for 
our properties. Our capital and real estate solutions promote 
wellness and enhance longevity by providing places where 
critical care and comfort are delivered, seniors live with dignity 
as their healthcare and social needs are met, and distinguished 
universities conduct groundbreaking research. 

The U.S. senior living and healthcare real estate market is 
enormous—valued at $1 trillion—of which less than 15 percent is 
held by REITs; it is fragmented and ripe for continued investment 
and consolidation. We are just at the beginning of an inevitable 
transition of healthcare assets to efficient long-term owners  
like Ventas and we are excited about these prospects.

Since the beginning of 2000, we have delivered industry-leading 
25 percent total return to shareholders, powered by our 
diversified and balanced portfolio. We have produced consistent 
growth and income throughout various economic and regulatory 
cycles; we’ve maintained financial strength and flexibility;  
we’ve been forward thinking and innovative; we’ve allocated 
capital wisely; and we’ve executed our strategy with rigor  
and excellence. 

The Ventas Advantage sets us apart and has enabled our track 
record of consistent success. Our unique combination of high-
quality properties in superior markets, outstanding platforms with 
leading operators and research institutions, and our incredible 
people and culture will continue to fuel our performance and 
sustain excellence going forward.

PUT IT ALL TOGETHER AND  
YOU HAVE THE VENTAS ADVANTAGE 

—OUR SUPERIOR PROPERTIES, 
PLATFORMS AND PEOPLE—
THAT ENABLES US TO PRODUCE CONSISTENT  
GROWTH AND INCOME THROUGH CYCLES.  

2016 Annual Report

Our Properties            5

Alexion Pharmaceuticals Global Headquarters
Life Science and Innovation Center

Enduring Values and Performance 
Our Properties 

Our carefully curated portfolio has 

been built with discipline and intent, 
focused on a balanced mixture of 
properties that will deliver reliable and 
growing cash flows. With our flexible 
and innovative approaches, we invest 
with leading operators across multiple 
asset types—seniors housing, acute 

care facilities, medical office buildings, life science and innovation 
centers, and post-acute care properties—to create growth for our 
business partners and value for our shareholders.  

OUR DIFFERENTIATED, DIVERSE AND HIGH-QUALITY 
PORTFOLIO IS EXPERTLY OPERATED BY LEADING CARE 
PROVIDERS AND RESEARCH INSTITUTIONS

NOI BY PROPERTY TYPE

n n  Seniors Housing Operating (SHOP)
n n  Seniors Housing Triple Net (NNN)
n n  Medical Office Buildings (MOB)
n n   Life Science and Innovation Centers
n n  Skilled Nursing Facilities (SNF)
n n  U.S. Acute Care Hospitals
n n  Loans
n n  International Hospitals
n n  Specialty Hospitals

1%

6%

7%

1%

5%

6%

29%

$2B 
NOI

20%

25%

93%

~1% 

PRIVATE PAY REVENUE

SNF NOI CONTRIBUTION

Totals may not add due to rounding. Excludes sold assets 
and assets intended for disposition. Represents pro forma Q4 2017.

During the year, we continued to elevate the quality and mix 
of our portfolio by creating a new channel for growth when we 
invested $1.5 billion in life science and innovation centers affiliated 
with some of the most revered names in education, scientific 
research and academic medical centers. Our new tenants include 
Yale University, Duke University, Wake Forest University, Penn 
Medicine and Washington University—market leaders that in total 
account for 10 percent of all university life science research and 
development spending in the U.S. We are extremely proud to 
be the owner of assets where these world-class institutions are 
fulfilling their core mission of healthcare-driven research to help 
people live longer and healthier lives.  

Our investment added over 4 million square feet of newly 
constructed real estate to our portfolio, including 14  
LEED-certified buildings, at an excellent risk-adjusted return.  
The properties are well occupied, with the lion’s share of revenues 
coming from universities and other research institutions with 
excellent credit profiles. About 5 percent of our net operating 
income, all private pay, now emanates from our life science  
and innovation centers. We expect to see increasing demand  
from our existing tenant base and from many other universities 
that are seeking efficient capital from an experienced and  
long-term partner. 

These life science properties—with high occupancy levels and 
distinguished tenants—should deliver superior shareholder returns 
through reliable and growing cash flows. 

INVESTED $1.5B IN LIFE SCIENCE  
AND INNOVATION CENTERS

100% 

PRIVATE PAY REVENUE

97% 

SPACE LEASED

73% 

OF REVENUE FROM  
EXCELLENT CREDIT TENANTS

10-YEAR 

WEIGHTED-AVERAGE  
LEASE TERM

6            Our Properties

2016 Annual Report

Our highly productive portfolio of advantaged seniors housing assets 
are in desirable North American markets with leading operators.

Our outstanding private pay seniors housing portfolio accounts 
for over half of our business. As a leader in seniors housing in 
the U.S. and Canada, our strategy is to focus on well-chosen 
markets with high-quality properties, working with top-notch 
operators who have stellar reputations for providing 
excellent care. 

About 70 percent of our seniors housing operating portfolio 
NOI comes from properties located in high barrier-
to-entry coastal markets with best-in-class operators. 

Increasing demand from a rapidly aging population is spurring 
growth of seniors housing. Families are beginning to recognize the 
strong value proposition that seniors housing offers: community 
living that enables residents to thrive and age gracefully in place. 

SENIORS HOUSING IS DRIVEN BY AN AGING POPULATION 
THAT HAS IMMENSE WEALTH AND SPENDING POWER

40%

OF 85+ COHORT NEED 
HELP WITH 3+ ACTIVITIES 
OF DAILY LIVING1

$12T 

OF WEALTH 
TRANSFER TO BABY 
BOOMERS OVER NEXT 
30-40 YEARS1

>$640K

AVERAGE 75+ 
NET WORTH 2

Our MOB portfolio generates stable and reliable cash 
fl ows, benefi ting from our long-standing relationships with a 
multitude of leading healthcare providers across the country.

With more than 20 million square feet, our outpatient and medical offi ce building business is 
a national portfolio that stretches across 32 states and Washington, D.C. As a market 
leader for more than two decades, we have an in-depth understanding of healthcare, 
physicians, real estate and fi nance. Our MOB assets are prospering from the 
increasing number of people using healthcare services.

Sutter Castro Valley Care Center
Medical Offi ce Building

The Sutter Castro Valley Care Center—100 percent leased to Sutter Health entities—offers 
a wide range of physician services, including an urgent care center that brings together 
patient-centered care, state-of-the-art technology and sophisticated design. Built in 2012 
through a joint venture with Pacifi c Medical Buildings, this 76,000-square-foot building is 
LEED Silver certifi ed.

OUR STELLAR 
MOB PORTFOLIO

96%

AFFILIATED OR 
ON CAMPUS

92% 

TOTAL OCCUPANCY

85%

OF AFFILIATIONS ARE 
INVESTMENT-GRADE 
HEALTH SYSTEMS AND HCA 

20M 

SQUARE FEET

(1) Source: Bank of America Merrill Lynch, Thematic Investing (May 2016).

(2) Source: Federal Reserve Survey of Consumer Finances. 

Focused on Sustainability: Good for the Planet, Good for Our Investors

Atria at Foster Square 
Seniors Housing

Foster Square, our newest ground-
up seniors housing development 
in the desirable San Francisco Bay 
Area, boasts the latest in high-end 
amenities such as a bar, fi tness 
center and theater. 

31

PROPERTIES BUILT TO 
LEED STANDARDS 

69

ENERGY STAR® 
CERTIFIED 
PROPERTIES

“WE LEVERAGE OUR PEOPLE AND PLATFORMS TO IMPLEMENT 
SUSTAINABLE BEST PRACTICES ACROSS OUR HIGH-QUALITY 
PORTFOLIO. TOGETHER WITH OUR OPERATING PARTNERS, WE ARE 
MAKING MEASURABLE PROGRESS IN REDUCING OUR CARBON 
FOOTPRINT AND PROVIDING A HEALTHY ENVIRONMENT FOR THE 
EMPLOYEES, RESIDENTS AND PATIENTS IN OUR BUILDINGS.” 

Kelly Meissner, Director of Sustainability

~$480M

ACTIVE LEED 
DEVELOPMENT AND 
REDEVELOPMENT PROJECTS

ON TRACK TO MEET OUR ENVIRONMENTAL IMPACT 
REDUCTION TARGETS (2013-2023)

ENERGY AND GREENHOUSE GAS EMISSIONS -10%
WATER -5%     WASTE -4%

 
2016 Annual Report

Our Platforms            9

Enduring  
Relationships 
Our Platforms

O ur leading platforms are the strong, 

long-standing and strategic 
relationships we share with the 
industry’s top care providers, 
researchers and developers.  
We align with successful operators 
who are the best at what they do. 
Then we fund their capital needs as 
they seek growth and expansion. Our strategy is to find, establish 
and build out these advantaged platforms. We bring our expert 
understanding of our partners’ goals, our ability to craft innovative 
and customized capital solutions for their opportunities, and our 
commitment to their strength and stability. 

In 2016, we grew our powerful and scalable acute care  
hospital platform—Ardent Health Services—with our  
commitment of $700 million to enable Ardent to finance 
its acquisition of LHP Hospital Group, Inc. The acquisition, 
completed in early 2017, is a clear demonstration of our strategy 
to fuel our partners’ growth and create attractive risk-adjusted 
returns for our shareholders. Our capital solution of a loan 
provided an attractive return; at the same time we brought 
expertise, relationships and speed to help Ardent win the  
LHP acquisition. The deal is a great fit for Ardent because  
of LHP’s high-quality real estate, strong margins and market 
share, and valuable not-for-profit healthcare relationships.  
Ardent is now a $3 billion revenue business with a diversified 
base of operations in six states. 

We also see tremendous opportunities to deploy capital 
through our exclusive arrangement with our partner Wexford 
Science & Technology, LLC, the leader in university-based life 
science real estate solutions. This year, we are opening two 

Atria Walnut Creek 
Seniors Housing

new assets encompassing 400,000 square feet with significant 
in-place tenancy affiliated with Duke University and Wake Forest 
University. And we recently closed on an acquisition of a stunning 
historic renovation, 100 percent leased by Brown University and 
the Nursing Education Center. The building houses state-of-the-
art facilities for academic, medical and research uses, and will 
serve as a catalyst for redevelopment of the entire area. 

With our ownership of ten sites for future development, and 
increasing demand from existing university clients and other 
established research and development universities, we are 
excited about the future growth of this platform and working  
with our tenants.

Collaborating with operators is an 
important part of our corporate culture. 
We strive to advance their interests 
and support their strategic goals as 
well as our own. 

In 2016, we modified our agreement with well-known seniors 
housing operator Sunrise Senior Living, LLC to provide it with  
long-term stability and confidence in our management  
contract and improved financial terms for our shareholders.  
Most important, these changes enabled Sunrise and its on-site 
teams to focus on doing what they do best—caring for seniors—
and aligned the two companies toward profitable growth. 

While endeavoring to be a good partner and simultaneously 
protecting and benefiting our shareholders, we collaborated  
with our longest-standing operator, Kindred Healthcare, Inc.,  
on its strategic exit from the skilled nursing business. With the 
expected completion of this transaction in 2017, our portfolio mix 
will be further enhanced by reducing the NOI from skilled nursing 
facilities to just 1 percent of our total NOI, completing a process 
that began in 2015 with the value-creating, innovative spin-off of 
Capital Care Properties, Inc. 

Our platforms are about positive collaborations with leading 
operators to invest in their growth, help with dispositions and 
arrange other transactions that enhance the productivity of our 
assets. And we succeed together. 

 
  
Our Platforms            11

INVESTING IN DEVELOPMENT 
AND REDEVELOPMENT 
PROJECTS WILL HELP DRIVE 
OUR FUTURE GROWTH. 

OUR PRUDENT CAPITAL ALLOCATION IS AT THE HEART OF OUR SUCCESS.  
WE LOOK TO INVEST IN OUR FUTURE GROWTH AND HIGH-QUALITY  
ASSET BASE THROUGH SELECTIVE DEVELOPMENT AND REDEVELOPMENT, NOTABLY 
WITH OUR VIBRANT LIFE SCIENCE AND INNOVATION CENTERS AND  
PREMIER SENIOR LIVING COMMUNITIES AND MEDICAL OFFICE BUILDINGS.

Property Name
Description

IN 2016, WE SPENT $150M ON DEVELOPMENT AND REDEVELOPMENT PROJECTS AND 
OUR PROJECT PIPELINE FOR THE NEXT SEVERAL YEARS EXCEEDS $500M. 

Wake Forest Biotech Place
Wake Forest University
Life Science and Innovation Center

Enduring Teamwork 
Our People 

O ur most distinguishing 

characteristic—and our winning 
competitive edge—is our people. 
The Ventas culture is consistent, 
collaborative, cohesive, creative 
and committed to shareholders. 
Our talented, long-tenured and 
highly skilled team sets us apart. 

And because we are always focused on a unified goal,  
we know how to get things done. Our interdisciplinary 
approach towards transactions, asset management, finance, 
capital markets, sustainability and overall governance feeds  
our culture of innovation and imbues it with trust.     

We extend our special culture and commitment to improving 
the world around us through charitable giving and sustainable, 
ethical business practices. We recently enhanced the resources 
we devote to sustainability and our employees undergo 
rigorous training programs on ethics and compliance in keeping 
with our commitment to best practices for environmental, social 
responsibility and governance criteria. 

The Ventas Charitable Foundation supports organizations that 
are important to our employees, customers and communities. 
One of our most significant partnerships is with the Greater 
Chicago Food Depository. As the strategic partner of its 
program to end senior hunger, our commitment supports food 
delivery to 6,500 seniors each month so they will not go hungry 
or be forced to choose between medicines and nutrition.  
Last year our foundation provided grants to more than  
100 local and national organizations, including many where  
our employees are actively involved as volunteers.

2016 Annual Report

Our People            13

Our interdisciplinary teams work collaboratively and focus on value creation.

“EXPERTLY NEGOTIATING A DEAL IS ONE THING,  
BUT OUR SWEET SPOT IS WORKING SEAMLESSLY  
WITH OUR COLLEAGUES ACROSS DEPARTMENTS TO 
ENSURE A GREAT DEAL. THAT’S HOW WE WON THE 
$1.5B ACQUISITION OF PROPERTIES OPERATED BY 
WEXFORD—THE PREMIER DEVELOPER OF UNIVERSITY-
BASED LIFE SCIENCE AND INNOVATION CENTERS.  
OUR EXPERIENCE, SPEED AND FINANCIAL STRENGTH 
ENABLE US TO DO COMPLEX DEALS THAT  
DRIVE GROWTH AND SHAREHOLDER VALUE.”

John D. Cobb
Executive Vice President,  
Chief Investment Officer

“OUR TEAM DESIGNED A FINANCING PLAN 
THAT MADE THE LIFE SCIENCE DEAL EVEN 
MORE VALUABLE. WE RAISED OVER  
$1 BILLION IN THE CAPITAL MARKETS  
ON HIGHLY ATTRACTIVE TERMS AND  
OUR EXECUTION WAS IMPECCABLE.  
IN FACT, WE ISSUED THE BEST  
10-YEAR BOND IN OUR HISTORY.” 

Robert F. Probst
Executive Vice President,  
Chief Financial Officer

14            Our People

2016 Annual Report

GROWTH AND INCOME  
ON A STRONG BALANCE 
SHEET, YEAR AFTER YEAR

8%

DIVIDEND  
PER SHARE GROWTH  
SINCE 2001

11% 

NORMALIZED FFO  
PER SHARE GROWTH  
SINCE 2001

25% 

TOTAL SHAREHOLDER  
RETURN SINCE 2000  

Enduring Competitive Advantage 

Our strong, diverse and independent Board of Directors is part of our  
competitive advantage. Our shareholders benefit greatly from this talented  
group who work diligently on their behalf. In 2016, we refreshed and  
diversified our Board with the election of two highly qualified new directors, 
Roxanne M. Martino and Walter C. Rakowich. Consistent with best practices  
in governance, we improved our average director tenure during 2016 and 
strengthened our capabilities. The Board constantly challenges us to perform,  
to manage risk and to sustain excellence for our shareholders. We are grateful  
for their knowledge, guidance and support.  

Enduring Excellence

As we look ahead to 2017, we are proud to be the leading capital provider at the 
exciting intersection of healthcare and real estate. Our carefully curated portfolio 
and asset mix are balanced and diversified, our operators are the best in their 
respective sectors, and our people lead the industry. We remain confident from 
our long track record of consistent success and performance through cycles, 
humble in the face of the changing times, yet fully energized by the incredible 
opportunities we see in this $1 trillion fragmented market. Thank you for your 
continuing support; we are truly grateful for the trust and capital you place with 
us. The unique Ventas Advantage of superior properties, platforms and people 
will enable us to sustain excellence and outstanding performance for you in the 
years ahead. 

Debra A. Cafaro
Chairman and Chief Executive Officer
March 22, 2017

Modern Healthcare  
names Ventas’s CEO 

ONE OF HEALTHCARE’S

100 

MOST INFLUENTIAL PEOPLE  
FOR THE THIRD TIME

Harvard Business Review  
names Ventas’s CEO 

ONE OF  
THE TOP 50 
BEST- 
PERFORMING  
CEOs IN THE 
WORLD 
FOR THE THIRD 
CONSECUTIVE YEAR 

Forbes  
names Ventas’s CEO 

ONE OF THE  
WORLD’S 100 MOST
POWERFUL  
WOMEN 
IN 2016

 
Supplemental Data 

Funds From Operations (FFO) and Normalized FFO  

Per diluted share (1)

Net Debt to Adjusted Pro Forma EBITDA

Total Portfolio Same-Store Constant Currency Cash NOI

For the Year Ended December 31, 

(In thousands, except per share amounts) 

Income from continuing operations 

Discontinued operations 

Gain on real estate dispositions 

Net income 

Net income attributable to noncontrolling interest 

Net income attributable to common stockholders 

Adjustments:

Real estate depreciation and amortization 

Real estate depreciation related to noncontrolling interest 

Real estate depreciation related to unconsolidated entities 

Loss on re-measurement of equity interest  

upon acquisition, net 

Gain on real estate dispositions 

(Gain) loss on real estate dispositions related to

unconsolidated entities 

Discontinued operations:

Loss (gain) on real estate dispositions 

Real estate depreciation and amortization 

Adjustments:

Change in fair value of financial instruments 

Non-cash income tax benefit 

Loss on extinguishment of debt, net 

Gain on non-real estate dispositions related to

unconsolidated entities 

Merger-related expenses, deal costs and re-audit costs 

Amortization of other intangibles 

NORMALIZED FFO 
attributable to common stockholders 

COMPARABLE NORMALIZED FFO 
attributable to common stockholders 

Weighted average diluted shares 

(1) Per share amounts may not add due to rounding.

2016 

2015 

2016 

2015

For the Year Ended December 31,   

2016 

2015

(Dollars in thousands)

(In thousands)

$ 

554,209   

$ 

389,539 

$  

(922) 

98,203  

651,490  

2,259  

649,231 

 891,985  

  (7,785)  

  5,754   

  —   

   (98,203)  

    (439)  

  1   

  —   

11,103 

18,580 

419,222 

1,379 

417,843 

 887,126 

  (7,906) 

 7,353  

 176  

   (18,580) 

  19 

 (231)  

  79,608   

  62   

   (34,227)   

  2,779   

    (557)  

     28,290  

   1,752    

 460 

 (42,384) 

  15,797 

  — 

   152,344  

  2,058  

1.59  

0.00 

0.28 

1.87 

0.01 

1.86 

 2.56  

  (0.02)  

  0.02 

 — 

   (0.28)  

   0.00  

  0.00 

  — 

 4.13  

  0.00   

   (0.10)   

  0.01   

   0.00  

   0.08  

   0.01    

$ 

1.17

0.03

0.06

1.26

0.00

1.25

2.66

 (0.02)

0.02

0.00

 (0.06)

 0.00

0.00

0.24

 4.09

 0.00

  (0.13)

 0.05

 —

 0.46

  0.01 

Net income attributable to common stockholders 

           207,637   

Income from continuing operations 

Discontinued operations 

Gain on real estate dispositions 

Net income 

Net income attributable to noncontrolling interest 

Pro forma adjustments for current period investments,  
capital transactions and dispositions 

Pro forma net income attributable to common stockholders 

for the three months ended December 31, 2016 

Add back: 

Interest 

Depreciation and amortization 

Stock-based compensation 

Gain on real estate dispositions 

Loss on extinguishment of debt, net 

Income from unconsolidated entities, net of Ventas share  
of EBITDA from unconsolidated entities 

Net income attributable to noncontrolling interest,   

$ 

 142,575

Income from continuing operations 

$  554,209 

$  389,539

 (167)

  66,424  

   208,832  

    1,195   

Adjustments: 

Interest and other income 

Interest 

Depreciation and amortization 

General, administrative and professional fees 

Loss on extinguishment of debt, net 

   (876)   

    419,740 

    898,924   

     126,875    

      2,779     

 (1,052)

 367,114 

  894,057 

   128,035  

    14,411  

Merger-related expenses and deal costs 

       24,635      

     102,944   

                9,623 

Other 

        9,988       

      17,957

(Income) loss from unconsolidated entities 

        (4,358)       

       1,420   

Income tax benefit  

(31,343) 

(39,284)

217,260  

107,370   

217,282 

5,073 

(66,424)

1

 4,309 

Reported Segment NOI 

Adjustments: 

Modification fee 

NOI not included in same-store 

Straight-lining of rental income 

Non-cash rental income 

Non-segment NOI 

NOI impact from change in FX 

         2,000,573        

       1,875,141 

     3,500  

  5,200  

    (359,987)   

  (281,808)

   (27,988)   

    (18,383)   

     (101,214)   

     —   

  (33,708)

   (15,456)

   (89,176)

    (3,631)

      (504,072)   

    (418,579)

net of consolidated joint venture partners’ share of EBITDA 

               (3,390)

Income tax benefit  

Change in fair value of financial instruments 

Unrealized foreign currency gains 

Other taxes 

Merger-related expenses, deal costs and re-audit costs 

(2,837)

152

(509)

921

(600)

Same-Store Cash NOI (USD) 

          1,496,501         

        1,456,562

Percentage increase (USD) 

          2.7%          

Adjusted Pro Forma EBITDA 

  478,608 

Less: Modification fee 

      (3,500)   

    (5,200)

Adjusted Pro Forma EBITDA annualized 

$ 

  1,914,432   

Adjusted Same-Store Cash NOI 

$  1,493,001  

$  1,451,362

Adjusted percentage increase 

          2.9%          

FFO attributable to common stockholders 

 1,440,544  

 1,365,408 

Normalized FFO from CCP Spin-off 

—   

 (173,400)  

—   

 (0.52)

$  1,438,643   

 $  1,493,683  

 $ 

4.13   

$ 

4.47

As of December 31, 2016:   

$   1,438,643    

 $   1,320,283   

 $ 

4.13   

$ 

3.95 

Debt 

Cash 

Restricted cash pertaining to debt 

Consolidated joint venture partners’ share of debt 

$     11,127,326

 (286,707)

  (22,324)

   (80,863)

 348,390    

  334,007 

Ventas share of debt from unconsolidated entities 

          122,037

Net debt       

$  10,859,469 

Net debt to Adjusted Pro Forma EBITDA  

5.7x

FFO, normalized FFO, net debt to adjusted pro forma EBITDA and same-store cash NOI presented herein may not be identical to those presented by other real estate companies due to the fact that not all real estate companies use the same 
definitions. FFO, normalized FFO, net debt to adjusted pro forma EBITDA and same-store cash NOI should not be considered as alternatives to net income or income from continuing operations (both determined in accordance with GAAP) as 
indicators of our financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of our liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of our needs.  
We believe that in order to facilitate a clear understanding of our consolidated historical operating results, FFO, normalized FFO, net debt to adjusted pro forma EBITDA and same-store cash NOI should be examined in conjunction with net income and 
income from continuing operations as presented in our Consolidated Financial Statements. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2016 for information about how we define these financial measures and why 
we believe these financial measures are useful to investors.

Investor Information

Corporate Offices

Annual Meeting

353 North Clark Street
Suite 3300
Chicago, IL 60654
312.660.3800

10350 Ormsby Park Place
Suite 300
Louisville, KY 40223
502.357.9000

2050 Main Street
Suite 260
Irvine, CA 92614
949.718.4400

The Annual Meeting of Stockholders will 
convene May 18, 2017, at 8:00 a.m. 
local (Central) time at 353 North Clark 
Street, James C. Tyree Auditorium, 
Chicago, IL 60654.

Stock Information

Ventas, Inc. is traded on the NYSE
under the ticker symbol “VTR.”
As of March 22, 2017, Ventas had
354.9 million shares outstanding.

Transfer Agent  
and Registrar

Wells Fargo Shareowner Services
P.O. Box 64874
St. Paul, MN 55164-0854
800.468.9716
shareowneronline.com

Information

Copies of our 2016 Form 10-K  
and other filings with the Securities and 
Exchange Commission may be obtained 
without charge by contacting our 
Chicago corporate office or through  
our website at ventasreit.com.

Independent Auditors

Member

KPMG LLP

National Association of  
Real Estate Investment Trusts

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
   
  
  
  
 
 
 
 
          
          
 
 
 
     
     
      
        
            
        
 
              
       
 
 
 
      
 
 
 
 
 
            
        
 
 
            
        
 
 
 
 
 
 
     
  
 
     
  
     
     
 
Directors and Executive Offi cers

Directors

Debra A. Cafaro
Chairman and Chief Executive Offi cer
Ventas, Inc.

James D. Shelton
Presiding Director of Ventas, Inc. 
Former Chairman 
Omnicare, Inc. 

Melody C. Barnes
Co-Founder and Principal 
MB Squared Solutions LLC

Jay M. Gellert
Former President and Chief Executive Offi cer
Health Net, Inc.

Richard I. Gilchrist
Senior Advisor
The Irvine Company

Matthew J. Lustig 
Managing Partner of North American 
Investment Banking and Head of Real Estate, 
Gaming and Lodging
Lazard Freres & Co., LLC 

Roxanne M. Martino
Managing Partner
OceanM19

Douglas M. Pasquale
Chief Executive Offi cer 
Capstone Enterprises Corporation

Walter C. Rakowich
Former Chief Executive Offi cer
Prologis, Inc. 

Robert D. Reed
Former Senior Vice President and
Chief Financial Offi cer
Sutter Health

Glenn J. Rufrano
Chief Executive Offi cer
VEREIT, Inc.

Committees of the Board

Audit and Compliance Committee
Reed (Chair), Rakowich, Rufrano

Executive Committee
Shelton (Chair), Cafaro, Gellert, 
Lustig, Reed

Executive Compensation Committee 
Gellert (Chair), Gilchrist, Martino, Shelton 

Investment Committee
Gilchrist (Chair), Cafaro, Gellert, 
Lustig, Pasquale

Nominating and Corporate
Governance Committee
Shelton (Chair), Barnes, Gilchrist

Executive Offi cers

Debra A. Cafaro
Chairman and Chief Executive Offi cer

John D. Cobb
Executive Vice President 
and Chief Investment Offi cer

Todd W. Lillibridge
Executive Vice President,
Medical Property Operations and
President and Chief Executive Offi cer,
Lillibridge Healthcare Services, Inc.

Robert F. Probst
Executive Vice President 
and Chief Financial Offi cer 

T. Richard Riney
Executive Vice President,
Chief Administrative Offi cer, 
General Counsel and Ethics 
and Compliance Offi cer

Ventas, Inc.  

353 North Clark Street, Suite 3300

Chicago, Illinois 60654

(NYSE: VTR)

VE N TASRE IT.CO M

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of 

approximately 1,300 assets in the United States, Canada and the United Kingdom consists of seniors 

housing communities, medical offi ce buildings, life science and innovation centers, skilled nursing 

facilities, specialty hospitals and general acute care hospitals. 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.