Ventas Announces University-Based Research & Innovation Development Pipeline Exceeding $1.5 Billion

  • Enters Agreement with Arizona State University to Develop Class-A
    Research & Innovation Center
  • Extends Exclusive Relationship with Leading University-Focused
    Developer, Wexford Science & Technology, to 2029
  • Large, Attractive Development Pipeline with Top-Tier Research
    Institutions to Create Sustainable Growth and Serve Rapidly Growing
    University Demand

CHICAGO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24VTR&src=ctag” target=”_blank”gt;$VTRlt;/agt;–Ventas, Inc. (NYSE: VTR) announced today a development pipeline in its
attractive university-based Research & Innovation (“R&I”) business
exceeding $1.5 billion in new investments (the “R&I Pipeline”). The R&I
Pipeline will be developed through the Company’s extended, exclusive
partnership with Wexford Science & Technology, LLC, the leading
developer of university-focused real estate solutions. Ventas, in
partnership with Wexford, has reached an agreement to develop a class-A
research and innovation center anchored by Arizona State University
(“ASU”) as the first committed development in the R&I Pipeline. In
total, the R&I Pipeline is expected to be comprised of approximately 10
projects with existing and new university relationships, and will
significantly enhance the Ventas/Wexford market position as the leading
developer of research and innovation-focused Knowledge Communities with
top-tier research universities.

“Our significant Research & Innovation pipeline exceeding $1.5 billion
with top-tier research universities demonstrates the potential and value
of this attractive business segment and positions us for meaningful,
sustainable growth,” said John Cobb, Ventas Executive Vice President and
Chief Investment Officer. “With our partner Wexford, we are the leading
owner and developer of high-quality research and innovation properties
that enable major institutions to advance life-changing research,
innovation, technology and medicine globally. We are pleased to welcome
another respected institution, Arizona State University, to our roster
of university partners.”

“We are delighted to extend our collaborative partnership with Wexford
to harness the power of both firms to expand our development pipeline
and build out our unique and differentiated business to meet the growing
needs of existing and new university partners,” Cobb added.

Wexford will develop and manage the R&I Pipeline projects under its
exclusive relationship with Ventas. The Company currently owns 33
university-based R&I properties managed by Wexford, including one
property under development, with a total investment of $2.1 billion,
including remaining funding commitments on active developments. These
properties are principally anchored by highly ranked research
universities including Brown, Duke, University of Pennsylvania, Wake
Forest, Washington University and Yale.

“The opportunity to strengthen our partnership with Ventas and
accelerate our sizeable pipeline of new opportunities reinforces
Wexford’s position as a preeminent partner of top-tier research
universities in the development and management of our Knowledge
Community platform, which integrates university research,
entrepreneurial activity, corporate engagement and community inclusion
to benefit and amplify economic opportunity and activity in proximity to
our university partners,” said James Berens, Founder and Chief Executive
Officer of Wexford Science and Technology.

First Committed Project with ASU

  • Arizona State University Development: Ventas, in partnership
    with Wexford, has committed to develop a $77 million class-A research
    & innovation center anchored by Arizona State University, a highly
    rated (Moody’s: Aa2) public research university and a new university
    relationship for Ventas. The property will be fully lab-enabled and
    principally be used for academic and commercial research, focused on
    biomedical discovery and innovation in health outcomes. It is
    attractively located within the Phoenix Biomedical Campus (the “PBC”),
    a 30-acre urban innovation district, established by the City of
    Phoenix in the heart of downtown, a premier environment for the growth
    of the Phoenix biomedical and healthcare industries. The PBC currently
    houses 1.5 million square feet of academic, research and clinical
    space and is ultimately expected to support up to 6 million total
    square feet of similar uses when fully developed. The project is
    expected to break ground in the first quarter of 2019 and open in late
    2020.

Strategic Benefits and Highlights

  • Executes on Ventas’s Commitment to Significantly Accelerate its
    University-Based Research & Innovation Growth and Solidifies Leading
    Market Position with Top-Tier Research Universities:
    Including the
    greater than $1.5 billion R&I Pipeline, Ventas’s university-based R&I
    investments will more than double from its initial investment in 2016
    to a pro forma investment exceeding $3.5 billion.
  • Generates Strong Risk-Adjusted Returns with Highly-Rated
    Institutions:
    Expected stabilized yields on the R&I Pipeline range
    from 6.5 to 8 percent with new properties, long-term leases and
    creditworthy tenants. Projects in the R&I Pipeline are expected to
    have significant pre-leasing activity prior to commencing construction.
  • Expands Partnerships with Existing Universities and Adds New
    University Relationships:
    Including the Company’s newly-formed
    relationship with ASU, the 14 universities in Ventas’s buildings
    account for 10 percent of all university research and development
    spending in the United States. Ventas expects the R&I Pipeline to add
    affiliations with similar-caliber institutions to the Company’s
    existing portfolio in the near term. In addition, Ventas expects to
    expand its footprint on the campuses of existing university
    relationships.
  • Extends Ventas’s Exclusive Relationship with Wexford: Ventas
    and Wexford’s extended, exclusive pipeline agreement through 2029
    positions Ventas to further accelerate its forward pipeline of
    projects and maintain its leading market position with R&I centers at
    top-tier universities.

There can be no assurance as to whether, when or on what terms the
investments in the R&I Pipeline will be completed.

About Ventas

Ventas, Inc., an S&P 500 company, is a leading real estate investment
trust. Its diverse portfolio of approximately 1,200 assets in the United
States, Canada and the United Kingdom consists of seniors housing
communities, medical office buildings, university-based research and
innovation centers, inpatient rehabilitation and long-term acute care
facilities, health systems and skilled nursing facilities. 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. References to “Ventas” or
the “Company” mean Ventas, Inc. and its consolidated subsidiaries unless
otherwise expressly noted. More information about Ventas and Lillibridge
can be found at www.ventasreit.com
and www.lillibridge.com.

About Wexford

Wexford Science & Technology, LLC is a real estate company exclusively
focused on partnering with universities, academic medical centers and
research institutions to develop vibrant, amenity-rich, mixed-use
Knowledge Communities built on a foundation of research, discovery,
entrepreneurial activity, corporate engagement, and community inclusion.
Wexford targets strategic opportunities with top-tier research
universities that are directly on or contiguous to dense, urban
campuses. Wexford has developed thirteen Knowledge Communities across
the United States, including: ASU Innovation Center (Arizona State
University) in Phoenix, AZ; the Bio-Research & Development Growth (BRDG)
Park (Danforth Plant Science Center) in St. Louis, MO; Cortex Innovation
Community (Washington University in St Louis) in St. Louis, MO; Downtown
Crossing (Yale University) in New Haven, CT; Hershey Center for Applied
Research (Penn State School of Medicine) in Hershey, PA; Innovation
Research Park @ODU (Old Dominion University) in Norfolk, VA; The South
Street Landing and the Innovation Building (Brown University, University
of Rhode Island) in Providence, RI; Chesterfield (Duke University) in
Durham, NC; uCity Square (University of Pennsylvania, Drexel University)
in Philadelphia, PA; University of Maryland BioPark in Baltimore, MD;
Converge Miami (University of Miami) in Miami, FL; University Technology
Park at IIT (Illinois Institute of Technology) in Chicago, IL; and Wake
Forest Innovation Quarter in Winston-Salem, NC. More information about
Wexford can be found at www.wexfordscitech.com.

The Company routinely announces material information to investors and
the marketplace using press releases, Securities and Exchange Commission
(“SEC”) filings, public conference calls, webcasts and the Company’s
website at www.ventasreit.com/investor-relations.
The information that the Company posts to its website may be deemed to
be material. Accordingly, the Company encourages investors and others
interested in the Company to routinely monitor and review the
information that the Company posts on its website, in addition to
following the Company’s press releases, SEC filings and public
conference calls and webcasts. Supplemental information regarding the
Company can be found on the Company’s website under the “Investor
Relations” section or at www.ventasreit.com/investor-relations/annual-reports—supplemental-information.
A comprehensive listing of the Company’s properties is available at www.ventasreit.com/our-portfolio/properties-by-stateprovince.

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 Company’s or its tenants’, operators’,
borrowers’ or managers’ expected future financial condition, results of
operations, cash flows, funds from operations, dividends and dividend
plans, financing opportunities and plans, capital markets transactions,
business strategy, budgets, projected costs, operating metrics, capital
expenditures, competitive positions, acquisitions, investment
opportunities, dispositions, merger or acquisition integration, growth
opportunities, expected lease income, continued qualification as a real
estate investment trust (“REIT”), plans and objectives of management for
future operations and statements that include words such as
“anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,”
“may,” “could,” “should,” “will” and other similar expressions are
forward-looking statements.
These forward-looking statements are
inherently uncertain, and actual results may differ from the Company’s
expectations.
The Company does not undertake a duty to update
these forward-looking statements, which speak only as of the date on
which they are made.

The Company’s actual future results and trends may differ materially
from expectations depending on a variety of factors discussed in the
Company’s filings with the SEC.
These factors include without
limitation: (a) the ability and willingness of the Company’s tenants,
operators, borrowers, managers and other third parties to satisfy 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 Company’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
Company’s success in implementing its business strategy and the
Company’s ability to identify, underwrite, finance, consummate and
integrate diversifying acquisitions and investments; (d) 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 or state budgets resulting in the reduction or
nonpayment of Medicare or Medicaid reimbursement rates; (e) the nature
and extent of future competition, including new construction in the
markets in which the Company’s seniors housing communities and medical
office buildings (“MOBs”)
are located; (f) the extent and effect
of future or pending healthcare reform and regulation, including cost
containment measures and changes in reimbursement policies, procedures
and rates; (g) increases in the Company’s borrowing costs as a result of
changes in interest rates and other factors, including the potential
phasing out of the London Inter-bank Offered Rate after 2021; (h) the
ability of the Company’s tenants, operators and managers, as applicable,
to comply with laws, rules and regulations in the operation of the
Company’s properties, to deliver high-quality services, to attract and
retain qualified personnel and to attract residents and patients; (i)
changes in general economic conditions or economic conditions in the
markets in which the Company may, from time to time, compete, and the
effect of those changes on the Company’s revenues, earnings and funding
sources; (j) the Company’s ability to pay down, refinance, restructure
or extend its indebtedness as it becomes due; (k) the Company’s ability
and willingness to maintain its qualification as a REIT in light of
economic, market, legal, tax and other considerations; (l) final
determination of the Company’s taxable net income for the year ended
December 31, 2018 and for the year ending December 31, 2019; (m) the
ability and willingness of the Company’s tenants to renew their leases
with the Company upon expiration of the leases, the Company’s ability to
reposition its properties on the same or better terms in the event of
nonrenewal or in the event the Company exercises its right to replace an
existing tenant, and obligations, including indemnification obligations,
the Company may incur in connection with the replacement of an existing
tenant; (n) risks associated with the Company’s senior living operating
portfolio, such as factors that can cause volatility in the Company’s
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; (o) changes in exchange rates for any foreign currency in
which the Company may, from time to time, conduct business; (p)
year-over-year changes in the Consumer Price Index or the UK Retail
Price Index and the effect of those changes on the rent escalators
contained in the Company’s leases and the Company’s earnings; (q) the
Company’s ability and the ability of its tenants, operators, borrowers
and managers to obtain and maintain adequate property, liability and
other insurance from reputable, financially stable providers; (r) the
impact of damage to the Company’s properties from catastrophic weather
and other natural events and the physical effects of climate change; (s)
the impact of increased operating costs and uninsured professional
liability claims on the Company’s liquidity, financial condition and
results of operations or that of the Company’s tenants, operators,
borrowers and managers, and the ability of the Company and the Company’s
tenants, operators, borrowers and managers to accurately estimate the
magnitude of those claims; (t) risks associated with the Company’s MOB
portfolio and operations, including the Company’s 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 Company’s MOBs are located and their affiliated health systems to
remain competitive and financially viable and to attract physicians and
physician groups; (v) risks associated with the Company’s investments in
joint ventures and unconsolidated entities, including its lack of sole
decision-making authority and its reliance on its joint venture
partners’ financial condition; (w) the Company’s ability to obtain the
financial results expected from its development and redevelopment
projects; (x) the impact of market or issuer events on the liquidity or
value of the Company’s investments in marketable securities; (y)
consolidation activity in the seniors housing and healthcare industries
resulting in a change of control of, or a competitor’s investment in,
one or more of the Company’s tenants, operators, borrowers or managers
or significant changes in the senior management of the Company’s
tenants, operators, borrowers or managers; (z) the impact of litigation
or any financial, accounting, legal or regulatory issues that may affect
the Company or its tenants, operators, borrowers or managers; and (aa)
changes in accounting principles, or their application or
interpretation, and the Company’s ability to make estimates and the
assumptions underlying the estimates, which could have an effect on the
Company’s earnings.

Contacts

Juan Sanabria
(877) 4-VENTAS

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