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Ventas Reaches Favorable Agreements With Kindred Healthcare on Lease Renewals

  Ventas Reaches Favorable Agreements With Kindred Healthcare on Lease
  Renewals

     Ventas Launches Re-Leasing Program for 60 Skilled Nursing Facilities

Business Wire

CHICAGO -- October 1, 2013

Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) announced today that it
has entered into favorable agreements with its tenant Kindred Healthcare, Inc.
(NYSE: KND) to extend the leases on 48 of the 108 licensed healthcare assets
whose lease term was scheduled to expire on April 30, 2015 (the “2015 Renewal
Assets”). Annual rent on these 48 assets will increase by $15 million
effective October 1, 2014. Additionally, Kindred has agreed to pay Ventas $20
million in connection with the execution of these agreements.

“These agreements create certainty for two-thirds of the existing rent for the
2015 renewals and provide an immediate path for Ventas to re-lease the
remaining assets,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro
said. “Ventas and Kindred worked expeditiously and cooperatively to craft
mutually beneficial arrangements that will enhance value for both companies’
shareholders and reinforce the positive long-term relationship between the
companies,” she added.

The 2015 Renewal Assets consist of 86 skilled nursing facilities (“SNFs”) and
22 long-term acute care hospitals (“LTACs”).

($ in millions)                  Cash   Contractual
                                   Rent     Rent Increase
Facilities                         2013     10/1/14
Renewed (26 SNFs and 22 LTACs)     $78      $15
                                            
60 SNFs                            60       N/A
                                            
                                            
Total                              138      N/A
                                            
Total Rent Renewed as a %
                                            67%
of Total 2013 Annual Rent
                                            

Ventas stated that it is immediately launching its re-leasing program for the
remaining 60 SNFs in the 2015 Renewal Assets (the “Re-leasing Assets”). As
part of their agreements, Ventas and Kindred agreed to accelerate the
expiration of the lease term for the Re-leasing Assets to September 30, 2014.
Kindred has also agreed that Ventas will be entitled to transition the
Re-leasing Assets to new operators prior to September 30, 2014, at no
financial detriment to Ventas.

Ventas’s current annualized net operating income (“NOI”) approximates $1.6
billion. Because the new lease arrangements will take effect in the fourth
quarter of 2014, the Company does not expect them to have a material impact on
2013 or 2014 normalized Funds From Operations (“FFO”). Ventas expects the
transactions described in this Press Release to result in a net $3 million to
($9 million), or $0.01 to ($0.03) per share, impact on Ventas’s normalized FFO
in 2015.

Although the Company expects to successfully re-tenant all of the Re-leasing
Assets prior to the end of 2014, there can be no assurance that the Company
will be able to reposition these assets on a timely basis, if at all, or that
expected normalized FFO and NOI results will be achieved.

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust.
Its diverse portfolio of more than 1,400 assets in 47 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
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 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 Securities and Exchange Commission. 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,
including investments in different asset types and outside the United States;
(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 budget resulting in the reduction or nonpayment of
Medicare or Medicaid reimbursement rates; (e) the nature and extent of future
competition; (f) the extent 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; (h) the ability of
the Company’s 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, 2012 and for the year ending December 31, 2013; (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 U.S. and Canadian currency exchange rates; (p)
year-over-year changes in the Consumer Price Index and the effect of those
changes on the rent escalators contained in the Company’s leases, including
the rent escalators for two of the Company’s master lease agreements with
Kindred Healthcare, Inc., 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 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; (s) risks associated with the
Company’s medical office building (“MOB”) portfolio and operations, including
the Company’s ability to successfully design, develop and manage MOBs, to
accurately estimate its costs in fixed fee-for-service projects and to retain
key personnel; (t) 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; (u) the Company’s ability to build, maintain and expand its
relationships with existing and prospective hospital and health system
clients; (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 impact of market or issuer events on the liquidity or value of the
Company’s investments in marketable securities; (x) 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 the
Company’s tenants, operators, borrowers or managers or significant changes in
the senior management of the Company’s tenants, operators, borrowers or
managers; and (y) the impact of litigation or any financial, accounting, legal
or regulatory issues that may affect the Company or its tenants, operators,
borrowers or managers. Many of these factors are beyond the control of the
Company and its management.

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Contact:

Ventas, Inc.
Lori B. Wittman, 877-4-VENTAS