Ventas, Inc. · NYSE:VTR
Ventas — Merger or Acquisition (July 2016)
17 slides from Ventas's merger presentation, July 2016
Slide 1: Acquisition of Wexford Life Science and Medical Real Estate
EXCELLENCE.SUSTAINED. ACQUISITION OF WEXFORD LIFE SCIENCE AND MEDICAL REAL ESTATE LEASED BY LEADING UNIVERSITIES, ACADEMIC MEDICAL CENTERS AND RESEARCH COMPANIES JULY 2016
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains “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. These forward-looking statements include, among others, statements of ex
Slide 3: Transaction Overview
TRANSACTION OVERVIEW ACQUISITION OF HIGH-QUALITY LIFE SCIENCE AND MEDICAL REAL ESTATE LEASED BY LEADING UNIVERSITIES, ACADEMIC MEDICAL CENTERS AND RESEARCH COMPANIES Ventas to acquire substantially all of the university-affiliated life science and medical real estate of Wexford Science & Technolog
Slide 4: Strategic and Financial Benefits
STRATEGIC AND FINANCIAL BENEFITS Consistent with Ventas’s strategy of driving reliable income and growth from a diversified portfolio Adds 25 new, high-quality properties with long-term leases to highly-rated tenants Establishes new platform for growth in attractive, institutional life science
Slide 5: The Acquisition Will Enhance Ventas's Diversification and Add a Platform for Growth
THE ACQUISITION WILL ENHANCE VENTAS’S DIVERSIFICATION AND ADD A PLATFORM FOR GROWTH Ventas Current Ventas Pro Forma SHOP 31% SHOP 30% SH - NNN 25% Asset Mix SH - NNN 26% Loans & Loans & Other 6% Other 6% SNF 4% SNF 4% Acute Care MOB 20% Acute Care MOB 19% Hosp. 5% Hosp. 5% Specialty Acquired Hosp. 8
Slide 6: The Ventas Advantage
THE VENTAS ADVANTAGE ENSURING EXCELLENCE. SUSTAINED. OUR PEOPLE OUR PROCESSES PEOPLE OUR CULTURE ADVANTAGED REAL ADVANTAGE LEADING ESTATE ASSETS IN OPERATORS ATTRACTIVE PROPERTIES ACROSS THE PLATFORMS MARKETS SITES OF CARE Disciplined capital allocation to create value for shareholders while maintai
Slide 7: High-Quality Operating Portfolio with Institutional-Quality Tenants
PEOPLE HIGH-QUALITY OPERATING PORTFOLIO WITH INSTITUTIONAL-QUALITY TENANTS PROPERTIES PLATFORMS Class A Operating Properties Excellent Amenities for Tenants 4.1 million square feet of purpose- built real estate with average age of 6 years Located campuses on or contiguous to major 13 LEED-cert
Slide 8: Additional Growth from Near-Term Development Properties
PEOPLE ADDITIONAL GROWTH FROM NEAR-TERM DEVELOPMENT PROPERTIES PROPERTIES PLATFORMS W.F. Innovation Quarter – The Chesterfield Bailey Power Plant Property Duke Wake Forest University (Durham, NC) (Winston Salem, NC) Endowment1 $7.3 billion $1.2 billion Life sciences R&D spend2 $868 million $172 mill
Slide 9: Long-Term Reliable Cash Flow Growth
PEOPLE LONG-TERM RELIABLE CASH FLOW GROWTH PROPERTIES PLATFORMS Excellent Credit Profile (by revenue) Excellent Universities credit tenants w/ avg. Aa2 rating Other 73% 67% 27% Investment grade 7% $1bn+ mkt cap 26% Attractive Lease Rollover Profile (by sq. ft.) Weighted average lease term of 10 year
Slide 10: Advantaged Real Estate Contiguous to University and Medical Campuses
PEOPLE ADVANTAGED REAL ESTATE CONTIGUOUS TO UNIVERSITY AND MEDICAL CAMPUSES PROPERTIES PLATFORMS Downtown Crossing Wake Forest Innovation Quarter 100 College Street Biotech Place 100% Winston-Salem 100% 242K New Haven 501K SF leased Wake Forest leased SF Downtown Crossing uCity Square 300 George Str
Slide 11: Enhances Ventas's Relationships with Leading Universities, Academic Medical Centers and Research Companies
PEOPLE ENHANCES VENTAS’S RELATIONSHIPS WITH LEADING UNIVERSITIES, ACADEMIC MEDICAL CENTERS AND RESEARCH COMPANIES PROPERTIES PLATFORMS Geographic Presence and University Affiliations Key Highlights for Leading Tenants MSA with Lillibridge Relationships with 11 top research universities which prese
Slide 12: Wexford Overview
PEOPLE WEXFORD OVERVIEW ESTABLISHES LIFE SCIENCE AND MEDICAL REAL ESTATE PLATFORM FOR GROWTH PROPERTIES PLATFORMS Business Highlights Unique Value Proposition • Reliable, financially strong institutions Wexford is the leading real estate • Long-term commitment to space development company focused
Slide 13: Exclusive Pipeline for Growth
PEOPLE EXCLUSIVE PIPELINE FOR GROWTH PROPERTIES PLATFORMS Wexford is an established life science and medical real estate platform for growth • Ventas experience successfully growing platforms • Exclusive pipeline with Wexford creates significant channel for long-term growth • Several existing develo
Slide 14: Total Addressable Market Opportunity
TOTAL ADDRESSABLE MARKET OPPORTUNITY Growth Opportunities Current Tenants 2014 R&D ($ million) Drexel, Old $4 billion in • Large and fragmented market Dominion, Wake Total Forest place IIT $172 Penn State $88 o $38 billion total university life Duke $250 science R&D spend across +100 $868 Miami univ
Slide 15: Life Science Industry Experiencing Continued Growth
LIFE SCIENCE INDUSTRY EXPERIENCING CONTINUED GROWTH Overview University Life Sciences Research Spending Global life science R&D market is ~$200 billion in CAGR spend Universities & Research institutions have increased R&D spending $38bn +3.6% 12.3K drugs are in R&D pipelines, growing 5.3% since
Slide 16: Life Sciences Real Estate – $50 Billion Market
LIFE SCIENCES REAL ESTATE – $50 BILLION MARKET Overview Life science is ~$50 billion of the $1 trillion healthcare real estate pie Life science facilities are highly specialized facilities used by life science and tech companies to conduct R&D Tenants include: pharmaceutical, biotech, medical
Slide 17: Transaction Highlights Summary
TRANSACTION HIGHLIGHTS SUMMARY Reliable income and growth Advantaged properties with leading tenants Best platforms Disciplined capital allocation: accretion and attractive valuation Environmental, social and governance leadership Reinforces Ventas‘s position as the premier capital provide