Ventas (VTR) 8-K Ventas Reports 2009 Normalized Ffo of $2.68 Per Diluted Share

Exhibit 99.2

Eberle Medical Office Building — Elk Grove, IL

All amounts shown in this report are unaudited and in U.S. dollars unless otherwise noted.

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Table of Contents

Portfolio Overview
Triple-Net, Managed and Loan Portfolio	1-2
Property Type and Operator Revenue/NOI Concentration Charts	3
Private Pay Owned Asset Composition Trend	4
Revenue Rollover Schedule	5
Company Development Data	6
Triple-Net Leased Portfolio
Same-Store Cash Flow Coverage and Occupancy Comparison	7
Kindred Healthcare Same-Store TTM EBITDARM Coverage Ratios	8
Cash Flow Coverage and Occupancy Trend Charts	9-11
Medical Office Building Portfolio
Year-over-Year and Sequential Quarter Comparison	12
Stabilized Portfolio Net Operating Income and Occupancy Trend Chart	13
Seniors Housing Operating Portfolio
Year-over-Year and Sequential Quarter Comparison	14
Stabilized Portfolio Net Operating Income, Occupancy and Average Daily Rate Trend Charts	15
Consolidated Financial Information
Historical Normalized FFO/Share	16
Capitalization	17
Debt Maturity Information	18-19
Debt Covenants	20-21
Consolidated Financial Statements	22-26
Funds From Operations, Normalized Funds from Operations, and Funds Available for Distribution	27-28
Recently Adopted Accounting Standards	29
Normalized FFO and FAD Guidance for the Year Ending December 31, 2010	30
Net Debt to Pro Forma EBITDA	31

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Owned Portfolio — Overview by Type (Dollars in Millions):¹

																			Annualized									Annualized
						Number										Annualized			Operating			Total			Annualized			Operating			Total
	Number of		Number of			of States/		Ventas		Cash Flow						NNN			Property			Annualized			NNN			Property			Annualized
Property Type	Properties		Beds/Units/Square Feet			Provinces		Investment		Coverage			Occupancy2			Revenue3			Revenue3			Revenue3			NOI3			NOI3			NOI3
Hospital — Stabilized Triple-Net		40		3,517	Beds		17	$	345		2.5	x		57.3	%	$	94		$	0		$	94		$	94		$	0		$	94
Skilled Nursing — Stabilized Triple-Net		187		22,377	Beds		29		809		1.9	x		89.6	%		179			0			179			179			0			179
Seniors Housing — Triple-Net		164		16,689	Units		31		2,256		1.3	x		87.8	%		195			0			195			195			0			195
Seniors Housing — Operating		80		6,553	Units		22		2,034		N/A			88.9	%		0			371			371			0			113			113
Medical Office — Stabilized		21		1,281,357	Square Feet		9		283		N/A			94.7	%		0			37			37			0			24			24
Medical Office — Lease-Up		5		432,742	Square Feet		5		79		N/A			74.4	%		0			9			9			0			6			6
Other — Stabilized Triple-Net		8		122	Beds		1		7		4.7	x		N/A			1			0			1			1			0			1
Total		505					45	$	5,814		1.8	x				$	469		$	417		$	885		$	469		$	143		$	612
																	53	%		47	%		100	%		77	%		23	%		100	%

Loan Portfolio — Overview by Investment (Dollars in Millions):¹

						Borrower/	Effective
	Original		Outstanding		Secured/	Asset	Interest			Annualized
Borrower	Investment		Principal		Unsecured	Type	Rate			Revenue3		Balance Sheet Line
Manor Care	$	99	$	112	Secured	SNF/ALF	5.9		%	$	6	Loans Receivable
HCA		45		50	Unsecured	Hospital		9.6	%		4	Other Assets
Emeritus Senior Living		13		15	Secured	Seniors Housing		12.6	%		2	Loans Receivable
Brookdale Senior Living		9		0	Secured	Seniors Housing	L + 600		bps4		0	Loans Receivable
Other — Secured5		19		14	Secured	Seniors Housing		3.7	%		1	Loans Receivable
Other — Unsecured		14		15	Unsecured	Hospital		9.4	%		1	Other Assets
Total	$	198	$	206						$	14

Owned Portfolio — Overview by State/Province:¹

	Totals					Hospital				Skilled Nursing				Seniors Housing				Medical Office				Other
State/Province	No.		%			No.		Beds		No.		Beds		No.		Units		No.		Sq. Feet		No.		Beds
California		37		7	%		5		455		6		771		26		3,301		0		0		0		0
Pennsylvania		34		7	%		2		115		6		797		24		1,597		2		111,671		0		0
Massachusetts		34		7	%		2		109		26		2,694		6		856		0		0		0		0
Ohio		30		6	%		0		0		12		1,575		16		1,153		2		144,639		0		0
Kentucky		29		6	%		2		424		27		3,054		0		0		0		0		0		0
Florida		26		5	%		6		511		0		0		14		1,454		6		206,533		0		0
Illinois		24		5	%		4		431		1		82		17		2,634		2		164,279		0		0
Indiana		23		5	%		1		59		13		1,867		9		1,001		0		0		0		0
North Carolina		23		5	%		1		124		16		1,802		6		438		0		0		0		0
Texas		21		4	%		7		496		0		0		3		261		3		78,222		8		122
All Other		224		44	%		10		793		80		9,735		123		10,547		11		1,008,755		0		0
Total		505		100	%		40		3,517		187		22,377		244		23,242		26		1,714,099		8		122

1	Totals may not add due to rounding.
2	Occupancy shown for Seniors Housing excludes communities in lease-up. Occupancy for triple-net properties is as of 3Q09 and occupancy for operating properties is as of 4Q09.
3	Annualized fourth quarter Ventas revenue/NOI assuming all events occurred at the beginning of the period. Revenue/NOI reflects Ventas’s portion only for joint venture assets.
4	LIBOR floor of 3%. Excludes upfront fee equating to 0.67% per annum.
5	Outstanding principal is the approximate carrying value.

1

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Owned and Loan Portfolio — Property Type Concentration:¹

	Owned
	Property		Ventas					Annualized					Annualized
Investment Type	Count		Investment		%			Rent/Revenue2		%			Rent/NOI2		%
Seniors Housing		244	$	4,290		71	%	$	565		63	%	$	308		49	%
Skilled Nursing		187		809		13	%		179		20	%		179		29	%
Hospital		40		345		6	%		94		10	%		94		15	%
Medical Office		26		362		6	%		46		5	%		30		5	%
Other		8		7	NM				1	NM				1	NM
Loans		N/A		206		3	%		14		2	%		14		2	%
Total		505	$	6,020		100	%	$	899		100	%	$	625		100	%

Owned and Loan Portfolio — Operator Concentration:¹

	Owned
	Property		Ventas					Annualized					Annualized
Operator/Manager	Count		Investment		%			Rent/Revenue2		%			Rent/NOI2		%
Sunrise Senior Living		79	$	2,033		34	%	$	369		41	%	$	113		18	%
Brookdale Senior Living		84		1,403		23	%		122		14	%		122		19	%
Kindred Healthcare		197		906		15	%		244		27	%		244		39	%
Senior Care		65		621		10	%		52		6	%		52		8	%
Emeritus Senior Living		11		168		3	%		18		2	%		18		3	%
Capital Senior Living		11		158		3	%		14		2	%		14		2	%
NexCore		7		154		3	%		21		2	%		13		2	%
Manor Care		N/A		112		2	%		6		1	%		6		1	%
Formation		11		89		1	%		11		1	%		11		2	%
HCA		1		51		1	%		4	NM				4		1	%
Assisted Living Concepts		8		50		1	%		5		1	%		5		1	%
Grubb and Ellis		5		42		1	%		4	NM				2	NM
All Other		26		233		4	%		30		3	%		22		3	%
Total		505	$	6,020		100	%	$	899		100	%	$	625		100	%

Owned Portfolio — State/Province Concentration:¹

	Owned
	Property		Annualized					Annualized
State/Province	Count		Rent/Revenue2		%			Rent/NOI2		%
California		37	$	113		13	%	$	78		13	%
Illinois		24		94		11	%		69		11	%
Ontario		9		53		6	%		14		2	%
Massachusetts		34		49		6	%		42		7	%
Pennsylvania		34		47		5	%		26		4	%
New Jersey		10		40		5	%		16		3	%
Florida		26		38		4	%		36		6	%
Colorado		16		37		4	%		20		3	%
Georgia		16		30		3	%		17		3	%
New York		14		30		3	%		20		3	%
All Other		285		354		40	%		274		45	%
Total		505	$	885		100	%	$	612		100	%

1	Dollars in millions. Totals may not add due to rounding. NM = not material.
2	Annualized fourth quarter Ventas revenue/NOI assuming all events occurred at the beginning of the period. Operating asset revenue/NOI reflects Ventas’s portion only for joint venture assets.

2

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

¹ Annualized fourth quarter Ventas revenue/NOI assuming all events occurred at the beginning of the period. Operating asset revenue/NOI reflects Ventas’s portion only for joint venture assets. Totals may not add due to rounding.

3

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Private Pay Owned Asset Composition Trend:

¹ Payor source at asset level for Company’s tenants and operators. 3Q2009 is most recent data available. All seniors housing revenue is assumed to be private pay. Totals may not add due to rounding.

4

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Triple-Net and Operating Portfolio Revenue Rollover Schedule Excluding Seniors Housing Operating Communities:¹

				Lease Rollover Year
	Totals			2010			2011			2012			2013			2014			Thereafter
Hospital — Stabilized Triple-Net:
Annualized Revenue	$	94.3			—			—			—		$	46.9			—		$	47.4
Skilled Nursing — Stabilized Triple-Net:
Annualized Revenue		178.8			—			—		$	2.2			70.5		$	2.8			103.3
Seniors Housing — Stabilized Triple-Net:
Annualized Revenue		194.6			—			—			1.7			—			0.5			192.5
Medical Office — Stabilized:
Annualized Revenue2		30.1		$	3.2		$	3.6			2.9			2.4			4.3			13.8
Medical Office — Lease-Up:
Annualized Revenue2		8.4			0.1			0.7			0.2			0.2			0.3			6.9
Other — Stabilized Triple-Net:
Annualized Revenue		1.0			1.0			—			—			—			—			—
Total:
Annualized Revenue	$	507.2		$	4.3		$	4.3		$	6.9		$	119.9		$	7.9		$	363.9
Percent of Total:		100	%		1	%		1	%		1	%		24	%		2	%		72	%

1	Annualized fourth quarter Ventas revenue assuming all events occurred at the beginning of the period. Dollars in millions. Totals may not add due to rounding.
2	Company’s partners’ share has not been eliminated from revenue.

5

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Company Development Data:

							Ventas
		Ventas					Estimated/Actual	Total	Ventas Fixed	Expected
		Ownership		Property	Number of	Actual/Projected	Acquisition	Development	Purchase Price	Stabilized
Status	Property Name	%	MSA	Type	Residents or Beds/Units/Square Feet	Opening Date	Date	Cost1	(incl. FPAC)1	Yield
In Lease-up	Sunrise of Thorne Mills on Steeles	80%	Toronto	IL/AL/ALZ	256 Residents / 229 Units / 210,000 SF	September 2007	December 2007	Cdn $62.8	Cdn $52.7	8.0%-8.5%

¹ Dollars in millions.

6

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Same-Store Triple-Net Portfolio Trend Data for Properties Owned for the Full 3rd Quarters of 2009 & 2008:^1,2

			Sequential Quarter Comparison												Year-Over-Year Comparison
			3Q09			2Q09									3Q09			3Q08
	Number of		Cash Flow			Cash Flow			3Q09			2Q09			Cash Flow			Cash Flow			3Q09			3Q08
Property Type	Properties		Coverage			Coverage			Occupancy			Occupancy			Coverage			Coverage			Occupancy			Occupancy
Hospital		40		2.5	x		2.5	x		57.3	%		59.2	%		2.5	x		2.5	x		57.3	%		58.0	%
Skilled Nursing		186		1.9	x		1.9	x		89.6	%		89.5	%		1.9	x		2.0	x		89.6	%		89.4	%
Seniors Housing		164		1.3	x		1.3	x		87.8	%		87.0	%		1.3	x		1.3	x		87.8	%		88.4	%
Other		8		4.7	x		5.1	x		N/A			N/A			4.7	x		5.0	x		N/A			N/A
Total		398		1.8	x		1.8	x								1.8	x		1.8	x

Same-Store Triple-Net Portfolio Trend Data for Properties Owned for the Full 2nd and 3rd Quarters of 2009:^1,2

			Sequential Quarter Comparison
			3Q09			2Q09
	Number of		Cash Flow			Cash Flow			3Q09			2Q09
Property Type	Properties		Coverage			Coverage			Occupancy			Occupancy
Hospital		40		2.5	x		2.5	x		57.3	%		59.2	%
Skilled Nursing		187		1.9	x		1.9	x		89.6	%		89.5	%
Seniors Housing		164		1.3	x		1.3	x		87.8	%		87.0	%
Other		8		4.7	x		5.1	x		N/A			N/A
													��
Total		399		1.8	x		1.8	x

1	Third quarter 2009 is most recent quarter available.
2	Cash flow coverages are for trailing twelve months or annualized where the Company’s ownership is for a shorter period.

7

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Kindred Healthcare Same-Store TTM EBITDARM Coverage Ratios:¹

Ventas — Kindred	Number of		Sequential Quarter Comparison						Year-Over-Year Comparison
Master Lease	Properties		3Q09			2Q09			3Q09			3Q08
1		81		2.3	x		2.3	x		2.3	x		2.4	x
2		40		2.0	x		2.0	x		2.0	x		2.0	x
3		36		1.8	x		1.7	x		1.8	x		1.9	x
4		40		2.3	x		2.3	x		2.3	x		2.3	x
Total		197		2.1	x		2.1	x		2.1	x		2.2	x

	Number of
Property Type	Properties		3Q09			2Q09			3Q09			3Q08
Hospital		38		2.5	x		2.5	x		2.5	x		2.5	x
Skilled Nursing		159		1.9	x		1.9	x		1.9	x		2.0	x
Total		197		2.1	x		2.1	x		2.1	x		2.2	x

¹ Coverage reflects the ratio of Kindred’s EBITDARM to rent. EBITDARM is defined as earnings before interest, income taxes, depreciation, amortization, rent and management fees. In the calculation of trailing twelve months EBITDARM, intercompany profit pertaining to services provided by Kindred’s PeopleFirst Rehabilitation Division has been eliminated from purchased ancillary expenses within the Ventas portfolio. Third quarter 2009 is most recent quarter available.

8

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Triple-Net Lease Portfolio Trends:

¹ Cash flow coverages are for trailing twelve months or annualized where the Company’s ownership is for a shorter period. Third quarter 2009 is most recent quarter available.

9

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Triple-Net Lease Portfolio Trends:

¹ Cash flow coverages are for trailing twelve months or annualized where the Company’s ownership is for a shorter period. Third quarter 2009 is most recent quarter available.

10

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Triple-Net Lease Portfolio Trends:

¹ Cash flow coverages are for trailing twelve months or annualized where the Company’s ownership is for a shorter period. Third quarter 2009 is most recent quarter available.

11

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Medical Office Portfolio Statistics:¹

	Year-Over-Year Comparison
	Stabilized						Same-Store Stabilized2,3						Lease-Up
	4Q09			4Q08			4Q09			4Q08			4Q09			4Q08
Number of properties:		21			19			18			18			5			2
Number of square feet:		1,281,357			1,046,828			1,042,728			1,042,728			432,742			181,952
Average occupancy:		94.7	%		95.6	%		94.4	%		95.6	%		74.4	%		58.9	%
Average annual rate per square foot:4	$	30		$	29		$	29		$	29		$	30		$	26
Operating revenue:	$	8.0		$	7.6		$	7.3		$	7.5		$	2.2		$	0.7
Less expenses:		2.7			2.6			2.5			2.6			0.8			0.4
Total NOI:		5.3			4.9			4.8			4.9			1.4			0.4
Less Company’s partners’ share:		0.2			0.4			0.2			0.4			0.2			0.0
Ventas NOI:	$	5.1		$	4.5		$	4.6		$	4.5		$	1.2		$	0.4

	Sequential Quarter Comparison
	Stabilized						Same-Store Stabilized2,3						Lease-Up
	4Q09			3Q09			4Q09			3Q09			4Q09			3Q09
Number of properties:		21			19			18			18			5			4
Number of square feet:		1,281,357			1,046,828			1,042,728			1,042,728			432,742			355,479
Average occupancy:		94.7	%		94.0	%		94.4	%		93.9	%		74.4	%		70.6	%
Average annual rate per square foot:4	$	30		$	29		$	29		$	29		$	30		$	30
Operating revenue:	$	8.0		$	7.3		$	7.3		$	7.3		$	2.2		$	1.8
Less expenses:		2.7			2.5			2.5			2.5			0.8			0.7
Total NOI:		5.3			4.7			4.8			4.7			1.4			1.1
Less Company’s partners’ share:		0.2			0.2			0.2			0.2			0.2			0.1
Ventas NOI:	$	5.1		$	4.5		$	4.6		$	4.5		$	1.2		$	1.0

1	Dollars in millions except for rate data. Totals may not add due to rounding.
2	Includes only those MOBs owned for the full period.
3	Includes only those MOBs owned in both comparison periods.
4	Average annual rate includes CAM adjustments.

12

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Medical Office Stabilized Portfolio Trends:

¹ Total property NOI, does not take into account Company’s partners’ share.

13

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Seniors Housing Operating Portfolio Statistics:¹

	Year-Over-Year Comparison
	Stabilized							Same-Store Stabilized2						Lease-Up
	4Q09				4Q08			4Q09			4Q08			4Q09			4Q08
Number of properties:		78				77			77			77			1			2
Number of units:		6,284				6,220			6,220			6,220			229			293
Resident day capacity:		685,124				677,396			677,948			677,396			23,552			30,728
Average resident occupancy:		88.8	%			90.7	%		88.8	%		90.7	%		77.7	%		63.7	%
Average daily rate / resident fees:	$	174			$	167		$	173		$	167		$	139		$	140
Operating revenue:	$	105.7			$	102.9		$	104.4		$	102.9		$	2.5		$	2.7
Less expenses:		73.0				71.6			72.1			71.6			1.9			1.9
Total NOI:		32.7		��		31.3			32.3			31.3			0.6			0.9
Less Company’s partner’s share:		4.9				4.7			4.8			4.7			0.1			0.2
Ventas NOI:	$	27.8			$	26.6		$	27.5		$	26.6		$	0.5		$	0.7

	Sequential Quarter Comparison
	Stabilized						Same-Store Stabilized2						Lease-Up
	4Q09			3Q09			4Q09			3Q09			4Q09			3Q09
Number of properties:		78			78			78			78			1			1
Number of units:		6,284			6,284			6,284			6,284			229			229
Resident day capacity:		685,124			684,752			685,124			684,752			23,552			23,552
Average resident occupancy:		88.8	%		88.1	%		88.8	%		88.1	%		77.7	%		72.0	%
Average daily rate / resident fees:	$	174		$	173		$	174		$	173		$	139		$	136
Operating revenue:	$	105.7		$	104.2		$	105.7		$	104.2		$	2.5		$	2.3
Less expenses:		73.0			71.2			73.0			71.2			1.9			1.9
Total NOI:		32.7			33.0			32.7			33.0			0.6			0.4
Less Company’s partner’s share:		4.9			4.9			4.9			4.9			0.1			0.1
Ventas NOI:	$	27.8		$	28.1		$	27.8		$	28.1		$	0.5		$	0.3

1	Dollars in millions except for rate data. Totals may not add due to rounding.
2	Includes only those communities stabilized in both comparison periods.

14

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Seniors Housing Stabilized Operating Portfolio Trends:

¹ Total community NOI, does not take into account Company’s partner’s share.

15

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Historical Normalized FFO/Share:¹

¹ See Company’s public filings for a definition of normalized FFO.

16

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Capitalization:

					As of
					December 31,
(In thousands, except per share amounts)					2009
Debt1
Revolving credit facilities					$	8,466
Senior notes						1,109,929
Mortgage debt						1,551,706
Total debt					$	2,670,101
Enterprise Value
Total debt					$	2,670,101
Cash, including cash escrows pertaining to debt						(114,639	)
Net debt						2,555,462
	Number of Shares		Closing Price
Common Stock		156,612	$	43.74		6,850,209
Enterprise Value2					$	9,405,671
Credit Statistics
Debt / Enterprise Value						28	%
Secured Debt / Enterprise Value						16	%
Net Debt / Pro Forma EBITDA3						4.1	x
Pro Forma EBITDA3, annualized					$	625,640

1	Debt balances are net of discounts and fair market value.
2	Total debt plus total equity.
3	EBITDA excludes merger-related expenses and deal costs.

17

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Debt Maturity Schedule:¹

¹ Dollars in millions; data as of December 31, 2009 and excludes normal monthly principal amortization. The Company’s joint venture partners’ pro rata share of total maturities is approximately $143 million.

18

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data
Debt Summary as of December 31, 2009

Debt Maturities and Scheduled Principal Amortization¹

	Credit Facilities					Senior/Convertible Notes						Mortgage Debt					Total Debt
Period	Amount		Rate2			Amount			Rate2			Amount3		Rate2			Amount			Rate2
2010	$	—		—		$	1,375			6.8	%	$	201,607		4.6	%	$	202,982			4.6	%
2011		—		—			230,000			3.9	%		97,505		4.8	%		327,505			4.2	%
2012		8,466		3.0	%		82,433			9.0	%		329,328		6.2	%		420,227			6.7	%
2013		—		—			—			—			168,256		5.9	%		168,256			5.9	%
2014		—		—			71,654			6.6	%		52,567		5.4	%		124,221			6.1	%
2015		—		—			142,669			7.1	%		78,503		6.0	%		221,172			6.7	%
2016		—		—			400,000			6.5	%		204,818		6.1	%		604,818			6.4	%
2017		—		—			225,000			6.8	%		47,403		6.1	%		272,403			6.6	%
2018		—		—			—			—			20,297		6.5	%		20,297			6.5	%
2019		—		—			—			—			257,126		5.9	%		257,126			5.9	%
Thereafter		—		—			—			—			82,654		5.1	%		82,654			5.1	%
Subtotal		8,466		3.0	%		1,153,131			6.3	%		1,540,064		5.7	%		2,701,661			5.9	%
Discounts and Fair Market Value, net		—					(43,202	)					11,642					(31,560	)
Total	$	8,466				$	1,109,929					$	1,551,706				$	2,670,101
Weighted Average Maturity in Years		1.7					5.1						5.3					5.2

Debt Composition¹

	December 31, 2009
	Amount		Rate2			% of Total
Fixed Rate Debt
Senior/Convertible Notes	$	1,153,131		6.3	%		42.7	%
Mortgage Debt		1,324,094		6.3	%		49.0	%
Total Fixed Rate Debt	$	2,477,225		6.3	%		91.7	%
Variable Rate Debt
Credit Facilities	$	8,466		3.0	%		0.3	%
Mortgage Debt		215,970		2.1	%		8.0	%
Total Variable Rate Debt		224,436		2.1	%		8.3	%
Total Debt	$	2,701,661		5.9	%		100.0	%

1	Dollars in thousands.
2	Rates are based on the cash interest paid on the outstanding debt and do not include amortization of discounts, fair market value or debt costs.
3	The Company’s joint venture partners’ pro rata share of total mortgage debt is approximately $159 million.

19

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Debt Covenants:

	Credit Facilities
	Required	12/31/09
Total Liabilities / Gross Asset Value	Not greater than 60%		38	%
Secured Debt / Gross Asset Value	Not greater than 30%		22	%
Unsecured Debt / Unencumb. Gross Asset Value	Not greater than 60%		27	%
Fixed Charge Coverage	Not less than 1.75x		3.2	x
Unencumbered Interest Coverage	Not less than 2.00x		5.1	x

	Bonds due 2012
	Required	12/31/09
Incurrence of Debt	Not greater than 60%		31	%
Incurrence of Secured Debt	Not greater than 40%		10	%
Total Unencumbered Assets	Not less than 150%		369	%
Consolidated Income Available for Debt Service to Debt Service	Not less than 2.00x		5.1	x

20

Ventas, Inc.
Fourth Quarter 2009 Supplemental Data

Debt Covenants:

21

CONSOLIDATED BALANCE SHEETS
As of December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008
(In thousands, except per share amounts)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2009			2009			2009			2009			2008 *
Assets
Real estate investments:
Land	$	557,276		$	557,123		$	552,712		$	554,286		$	555,015
Buildings and improvements		5,722,837			5,641,309			5,603,042			5,592,051			5,593,024
Construction in progress		12,508			8,611			18,319			21,176			12,591
		6,292,621			6,207,043			6,174,073			6,167,513			6,160,630
Accumulated depreciation		(1,177,911	)		(1,126,516	)		(1,075,293	)		(1,036,617	)		(987,691	)
Net real estate property		5,114,710			5,080,527			5,098,780			5,130,896			5,172,939
Loans receivable, net		131,887			125,410			125,106			130,076			123,289
Net real estate investments		5,246,597			5,205,937			5,223,886			5,260,972			5,296,228
Cash and cash equivalents		107,397			70,889			46,523			95,806			176,812
Escrow deposits and restricted cash		39,832			96,477			94,470			38,275			55,866
Deferred financing costs, net		29,252			27,804			29,569			29,935			22,032
Other		193,167			186,203			176,413			168,858			220,480
Total assets	$	5,616,245		$	5,587,310		$	5,570,861		$	5,593,846		$	5,771,418
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	2,670,101		$	2,615,142		$	2,616,304		$	2,942,401		$	3,136,998
Deferred revenue		4,315			4,628			5,305			6,307			7,057
Accrued interest		17,974			35,481			16,952			42,121			21,931
Accounts payable and other accrued liabilities		186,130			175,125			164,659			161,775			168,198
Deferred income taxes		253,665			254,622			255,175			255,570			257,499
Total liabilities		3,132,185			3,084,998			3,058,395			3,408,174			3,591,683
Commitments and contingencies
Equity:
Ventas stockholders’ equity:
Preferred stock, $1.00 par value; 10,000 shares authorized, unissued		—			—			—			—			—
Common stock, $0.25 par value; 156,627, 156,605, 156,539, 143,453 and 143,302 shares issued at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively		39,160			39,155			39,138			35,867			35,825
Capital in excess of par value		2,573,039			2,570,146			2,565,933			2,267,440			2,264,125
Accumulated other comprehensive income (loss)		19,669			15,080			(1,411	)		(18,322	)		(21,089	)
Retained earnings (deficit)		(165,710	)		(139,478	)		(109,012	)		(117,124	)		(117,806	)
Treasury stock, 15, 0, 0, 2 and 15 shares at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively		(647	)		—			(5	)		(53	)		(457	)
Total Ventas stockholders’ equity		2,465,511			2,484,903			2,494,643			2,167,808			2,160,598
Noncontrolling interest		18,549			17,409			17,823			17,864			19,137
Total equity		2,484,060			2,502,312			2,512,466			2,185,672			2,179,735
Total liabilities and equity	$	5,616,245		$	5,587,310		$	5,570,861		$	5,593,846		$	5,771,418

* Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

22

CONSOLIDATED STATEMENTS OF INCOME
For the three months and year ended December 31, 2009 and 2008
(In thousands, except per share amounts)

	For the Three Months					For the Year
	Ended December 31,					Ended December 31,
	2009		2008 *			2009		2008 *
Revenues:
Rental income	$	127,193	$	122,673		$	501,087	$	481,368
Resident fees and services		108,205		105,609			421,058		429,257
Income from loans and investments		3,279		3,474			13,107		8,847
Interest and other income		349		697			842		4,226
Total revenues		239,026		232,453			936,094		923,698
Expenses:
Interest		44,607		50,603			178,503		204,450
Depreciation and amortization		52,075		53,982			200,911		230,881
Property-level operating expenses		78,443		76,447			302,813		306,944
General, administrative and professional fees (including non-cash stock-based compensation expense of $2,667 and $2,160 for the three months ended 2009 and 2008, respectively, and $11,882 and $9,976 for the year ended 2009 and 2008, respectively)		8,220		11,158			38,830		40,651
Foreign currency loss (gain)		19		(11	)		50		(162	)
(Gain) loss on extinguishment of debt		—		(2,858	)		6,080		(2,398	)
Merger-related expenses and deal costs		1,565		1,332			13,015		4,460
Total expenses		184,929		190,653			740,202		784,826
Income before reversal of contingent liability, income taxes, discontinued operations and noncontrolling interest		54,097		41,800			195,892		138,872
Reversal of contingent liability		—		—			—		23,328
Income tax benefit		367		1,720			1,719		15,885
Income from continuing operations		54,464		43,520			197,611		178,085
Discontinued operations		314		14,631			71,749		47,202
Net income		54,778		58,151			269,360		225,287
Net income attributable to noncontrolling interest, net of tax		697		621			2,865		2,684
Net income attributable to common stockholders	$	54,081	$	57,530		$	266,495	$	222,603
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	0.35	$	0.30		$	1.28	$	1.25
Discontinued operations		0.00		0.10			0.47		0.34
Net income attributable to common stockholders	$	0.35	$	0.40		$	1.75	$	1.59
Diluted:
Income from continuing operations attributable to common stockholders	$	0.35	$	0.30		$	1.27	$	1.25
Discontinued operations		0.00		0.10			0.47		0.34
Net income attributable to common stockholders	$	0.35	$	0.40		$	1.74	$	1.59
Weighted average shares used in computing earnings per common share:
Basic		156,296		142,963			152,566		139,572
Diluted		156,692		143,047			152,758		139,912
Dividends declared per common share	$	0.5125	$	0.5125		$	2.0500	$	2.0500

* Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

23

QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)

										Fourth
	2009 Quarters									Quarter
	Fourth		Third		Second		First			2008*
Revenues:
Rental income	$	127,193	$	125,939	$	125,084	$	122,871		$	122,673
Resident fees and services		108,205		106,515		103,399		102,939			105,609
Income from loans and investments		3,279		3,214		3,333		3,281			3,474
Interest and other income		349		99		108		286			697
Total revenues		239,026		235,767		231,924		229,377			232,453
Expenses:
Interest		44,607		43,646		44,156		46,094			50,603
Depreciation and amortization		52,075		50,329		48,826		49,681			53,982
Property-level operating expenses		78,443		76,338		72,564		75,468			76,447
General, administrative and professional fees (including non-cash stock-based compensation expense of $2,667, $3,078, $3,078, $3,059, and $2,160, respectively)		8,220		9,657		10,355		10,598			11,158
Foreign currency loss (gain)		19		32		5		(6	)		(11	)
Loss (gain) on extinguishment of debt		—		—		5,975		105			(2,858	)
Merger-related expenses and deal costs		1,565		5,894		3,502		2,054			1,332
Total expenses		184,929		185,896		185,383		183,994			190,653
Income before income taxes, discontinued operations and noncontrolling interest		54,097		49,871		46,541		45,383			41,800
Income tax benefit		367		410		395		547			1,720
Income from continuing operations		54,464		50,281		46,936		45,930			43,520
Discontinued operations		314		149		42,247		29,039			14,631
Net income		54,778		50,430		89,183		74,969			58,151
Net income attributable to noncontrolling interest, net of tax		697		625		802		741			621
Net income attributable to common stockholders	$	54,081	$	49,805	$	88,381	$	74,228		$	57,530
Earnings per common share:
Basic:
Income from continuing operations attributable to common stockholders	$	0.35	$	0.32	$	0.30	$	0.32		$	0.30
Discontinued operations		0.00		0.00		0.27		0.20			0.10
Net income attributable to common stockholders	$	0.35	$	0.32	$	0.57	$	0.52		$	0.40
Diluted:
Income from continuing operations attributable to common stockholders	$	0.35	$	0.32	$	0.30	$	0.32		$	0.30
Discontinued operations		0.00		0.00		0.27		0.20			0.10
Net income attributable to common stockholders	$	0.35	$	0.32	$	0.57	$	0.52		$	0.40
Weighted average shares used in computing earnings per common share:
Basic		156,296		156,250		154,441		143,091			142,963
Diluted		156,692		156,516		154,510		143,145			143,047
Dividends declared per common share	$	0.5125	$	0.5125	$	0.5125	$	0.5125		$	0.5125

* Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

24

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2009 and 2008
(In thousands)

	2009			2008 *
Cash flows from operating activities:
Net income	$	269,360		$	225,287
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amounts in discontinued operations)		201,254			235,754
Amortization of deferred revenue and lease intangibles, net		(6,669	)		(9,344	)
Other amortization expenses		6,353			3,994
Stock-based compensation		11,882			9,976
Straight-lining of rental income		(11,879	)		(14,652	)
Loss (gain) on extinguishment of debt		6,080			(168	)
Net gain on sale of real estate assets (including amounts in discontinued operations)		(67,305	)		(39,026	)
Income tax benefit		(1,719	)		(15,885	)
Reversal of contingent liability		—			(23,328	)
Provision for loan losses		—			5,994
Other		(91	)		614
Changes in operating assets and liabilities:
Increase in other assets		(1,514	)		(3,541	)
(Decrease) increase in accrued interest		(3,957	)		1,100
Increase in other liabilities		20,306			3,132
Net cash provided by operating activities		422,101			379,907
Cash flows from investing activities:
Net investment in real estate property		(45,715	)		(53,801	)
Investment in loans receivable		(13,803	)		(108,826	)
Purchase of marketable debt securities		—			(63,680	)
Proceeds from real estate disposals		58,542			104,183
Proceeds from loans receivable		8,028			135
Proceeds from sale of investments		5,000			—
Capital expenditures		(13,798	)		(16,359	)
Other		—			2,092
Net cash used in investing activities		(1,746	)		(136,256	)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities		(292,873	)		73,366
Proceeds from debt		365,682			140,262
Repayment of debt		(525,173	)		(416,896	)
Payment of deferred financing costs		(16,655	)		(3,857	)
Issuance of common stock, net		299,201			408,540
Cash distribution to common stockholders		(314,399	)		(288,849	)
Contributions from noncontrolling interest		1,211			—
Distributions to noncontrolling interest		(9,869	)		(15,732	)
Other		2,695			7,187
Net cash used in financing activities		(490,180	)		(95,979	)
Net (decrease) increase in cash and cash equivalents		(69,825	)		147,672
Effect of foreign currency translation on cash and cash equivalents		410			806
Cash and cash equivalents at beginning of period		176,812			28,334
Cash and cash equivalents at end of period	$	107,397		$	176,812
Supplemental schedule of non-cash activities:
Assets and liabilities assumed from acquisitions:
Real estate investments	$	67,781		$	33,967
Utilization of escrow funds held for an Internal Revenue Code Section 1031 exchange		(64,995	)		—
Other assets acquired		—			1,684
Debt assumed		—			34,629
Deferred taxes		—			—
Other liabilities		62			337
Noncontrolling interest		2,724			685
Debt transferred on the sale of assets		38,759			6,917

* Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

25

QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

													Fourth
	2009 Quarters												Quarter
	Fourth			Third			Second			First			2008*
Cash flows from operating activities:
Net income	$	54,778		$	50,430		$	89,183		$	74,969		$	58,151
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amounts in discontinued operations)		52,092			50,347			48,907			49,908			54,974
Amortization of deferred revenue and lease intangibles, net		(1,518	)		(1,564	)		(1,729	)		(1,858	)		(2,142	)
Other amortization expenses		2,058			1,921			1,766			608			376
Stock-based compensation		2,667			3,078			3,078			3,059			2,160
Straight-lining of rental income		(2,918	)		(2,971	)		(3,052	)		(2,938	)		(3,437	)
Loss (gain) on extinguishment of debt		—			—			5,922			158			(105	)
Net gain on sale of real estate assets (including amounts in discontinued operations)		(294	)		(120	)		(39,020	)		(27,871	)		(13,157	)
Income tax benefit		(367	)		(410	)		(395	)		(547	)		(1,720	)
Other		(178	)		99			(169	)		157			(90	)
Changes in operating assets and liabilities:
Decrease (increase) in other assets		2,763			(5,703	)		(262	)		1,688			(2,247	)
(Decrease) increase in accrued interest		(17,507	)		18,529			(25,169	)		20,190			(24,324	)
Increase (decrease) in other liabilities		7,328			14,419			2,526			(3,967	)		9,660
Net cash provided by operating activities		98,904			128,055			81,586			113,556			78,099
Cash flows from investing activities:
Net investment in real estate property		(21,987	)		(4,370	)		(10,971	)		(8,387	)		(6,514	)
Investment in loans receivable		(6,430	)		—			—			(7,373	)		(10,000	)
Proceeds from real estate disposals		740			1,188			—			56,614			45,804
Proceeds from loans receivable		120			207			6,051			1,650			13
Proceeds from sale of investments		5,000			—			—			—			—
Capital expenditures		(6,614	)		(3,156	)		(158	)		(3,870	)		(4,185	)
Other		—			—			—			—			1,770
Net cash (used in) provided by investing activities		(29,171	)		(6,131	)		(5,078	)		38,634			26,888
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities		(1,417	)		(1,528	)		(202,882	)		(87,046	)		245,582
Proceeds from debt		61,480			3,087			291,914			9,201			129,903
Repayment of debt		(8,642	)		(13,515	)		(428,659	)		(74,357	)		(333,750	)
Payment of deferred financing costs		(3,233	)		—			(3,855	)		(9,567	)		(3,202	)
Issuance of common stock, net		—			—			299,201			—			—
Cash distribution to common stockholders		(80,313	)		(80,271	)		(80,269	)		(73,546	)		(73,468	)
Contributions from noncontrolling interest		576			329			306			—			—
Distributions to noncontrolling interest		(2,373	)		(2,472	)		(3,610	)		(1,414	)		(10,400	)
Other		692			(3,454	)		1,808			3,649			235
Net cash used in financing activities		(33,230	)		(97,824	)		(126,046	)		(233,080	)		(45,100	)
Net increase (decrease) in cash and cash equivalents		36,503			24,100			(49,538	)		(80,890	)		59,887
Effect of foreign currency translation on cash and cash equivalents		5			266			255			(116	)		1,002
Cash and cash equivalents at beginning of period		70,889			46,523			95,806			176,812			115,923
Cash and cash equivalents at end of period	$	107,397		$	70,889		$	46,523		$	95,806		$	176,812
Supplemental schedule of non-cash activities:
Assets and liabilities assumed from acquisitions:
Real estate investments	$	59,326		$	148		$	—		$	8,307		$	(4,611	)
Utilization of escrow funds held for an Internal Revenue Code Section 1031 exchange		(55,700	)		—			—			(9,295	)		—
Other assets acquired		—			(82	)		—			82			1,163
Debt assumed		—			—			—			—			—
Deferred taxes		—			—			—			—			(650	)
Other liabilities		1,948			—			—			(1,886	)		(3,234	)
Noncontrolling interest		1,677			67			—			980			436
Debt transferred on the sale of assets		—			—			—			38,759			6,917

* Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

26

ANNUAL FUNDS FROM OPERATIONS, NORMALIZED FFO AND FUNDS AVAILABLE FOR DISTRIBUTION
(In thousands, except per share amounts)

	For the Year
	Ended December 31,
	2009			2008 *
Net income attributable to common stockholders	$	266,495		$	222,603
Adjustments:
Depreciation and amortization on real estate assets		200,221			230,158
Depreciation on real estate assets related to noncontrolling interest		(6,349	)		(6,251	)
Discontinued operations:
Gain on sale of real estate assets		(67,305	)		(39,026	)
Depreciation and amortization on real estate assets		347			4,873
FFO		393,409			412,357
Merger-related expenses and deal costs		13,015			4,460
Income tax benefit		(3,459	)		(17,616	)
Loss (gain) on extinguishment of debt		6,080			(2,398	)
Reversal of contingent liability		—			(23,328	)
Provision for loan losses		—			5,994
Normalized FFO		409,045			379,469
Straight-lining of rental income		(11,879	)		(14,652	)
Routine capital expenditures		(8,067	)		(8,128	)
Normalized FAD	$	389,099		$	356,689
Per diluted share(1):
Net income attributable to common stockholders	$	1.74		$	1.59
Adjustments:
Depreciation and amortization on real estate assets		1.31			1.65
Depreciation on real estate assets related to noncontrolling interest		(0.04	)		(0.04	)
Discontinued operations:
Gain on sale of real estate assets		(0.44	)		(0.28	)
Depreciation and amortization on real estate assets		0.00			0.03
FFO		2.58			2.95
Merger-related expenses and deal costs		0.09			0.03
Income tax benefit		(0.02	)		(0.13	)
Loss (gain) on extinguishment of debt		0.04			(0.02	)
Reversal of contingent liability		—			(0.17	)
Provision for loan losses		—			0.04
Normalized FFO		2.68			2.71
Straight-lining of rental income		(0.08	)		(0.10	)
Routine capital expenditures		(0.05	)		(0.06	)
Normalized FAD	$	2.55		$	2.55

(1)	Per share amounts may not add due to rounding.
*	Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

27

QUARTERLY FUNDS FROM OPERATIONS, NORMALIZED FFO AND FUNDS AVAILABLE FOR DISTRIBUTION
(In thousands, except per share amounts)

													Fourth
	2009 Quarters												Quarter
	Fourth			Third			Second			First			2008*
Net income attributable to common stockholders	$	54,081		$	49,805		$	88,381		$	74,228		$	57,530
Adjustments:
Depreciation and amortization on real estate assets		51,891			50,164			48,655			49,511			53,809
Depreciation on real estate assets related to noncontrolling interest		(1,653	)		(1,580	)		(1,496	)		(1,620	)		(1,582	)
Discontinued operations:
Gain on sale of real estate assets		(294	)		(120	)		(39,020	)		(27,871	)		(13,157	)
Depreciation and amortization on real estate assets		17			20			83			227			992
FFO		104,042			98,289			96,603			94,475			97,592
Merger-related expenses and deal costs		1,565			5,894			3,502			2,054			1,332
Income tax benefit		(789	)		(797	)		(936	)		(937	)		(2,059	)
Loss (gain) on extinguishment of debt		—			—			5,975			105			(2,858	)
Normalized FFO		104,818			103,386			105,144			95,697			94,007
Straight-lining of rental income		(2,918	)		(2,971	)		(3,052	)		(2,938	)		(3,437	)
Routine capital expenditures		(4,233	)		(2,058	)		(632	)		(1,144	)		(3,660	)
Normalized FAD	$	97,667		$	98,357		$	101,460		$	91,615		$	86,910
Per diluted share(1):
Net income attributable to common stockholders	$	0.35		$	0.32		$	0.57		$	0.52		$	0.40
Adjustments:
Depreciation and amortization on real estate assets		0.33			0.32			0.31			0.35			0.38
Depreciation on real estate assets related to noncontrolling interest		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)
Discontinued operations:
Gain on sale of real estate assets		(0.00	)		(0.00	)		(0.25	)		(0.19	)		(0.09	)
Depreciation and amortization on real estate assets		0.00			0.00			0.00			0.00			0.01
FFO		0.66			0.63			0.63			0.66			0.68
Merger-related expenses and deal costs		0.01			0.04			0.02			0.01			0.01
Income tax benefit		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)
Loss (gain) on extinguishment of debt		—			—			0.04			0.00			(0.02	)
Normalized FFO		0.67			0.66			0.68			0.67			0.66
Straight-lining of rental income		(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
Routine capital expenditures		(0.03	)		(0.01	)		(0.00	)		(0.01	)		(0.03	)
Normalized FAD	$	0.62		$	0.63		$	0.66		$	0.64		$	0.61

(1)	Per share amounts may not add due to rounding.
*	Historical financial statements have been restated to reflect the adoption of FASB guidance relating to the accounting of convertible debt instruments and FASB guidance relating to minority interests (now characterized as noncontrolling interests).

Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. To overcome this problem, the Company considers FFO and normalized FFO and FAD appropriate measures of performance of an equity REIT. The Company uses the NAREIT definition of FFO. NAREIT defines FFO as net income, computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. The Company defines normalized FFO as FFO excluding certain income and expense items as listed below. Normalized FAD represents normalized FFO excluding straight-line rental adjustments and routine capital expenditures.

FFO and normalized FFO and FAD presented herein are not necessarily comparable to FFO and normalized FFO and FAD presented by other real estate companies due to the fact that not all real estate companies use the same definitions. FFO and normalized FFO and FAD should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company’s financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company’s liquidity, nor are FFO and normalized FFO and FAD necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and normalized FFO and FAD should be examined in conjunction with net income as presented elsewhere herein.

The Company’s normalized FFO excludes (a) gains and losses on the sales of assets, (b) merger-related costs and expenses and deal costs and expenses, including expenses relating to the Company’s lawsuit against HCP, Inc., (c) the impact of any expenses related to asset impairment and valuation allowances, the write-off of unamortized deferred financing fees, or additional costs, expenses, discounts or premiums incurred as a result of early debt retirement or payment of the Company’s debt, (d) the non-cash effect of income tax benefits and (e) the reversal of contingent liabilities.

28

Recently Adopted Accounting Standards

On January 1, 2009, the Company adopted Financial Accounting Standards Board (“FASB”) guidance relating to convertible debt instruments that specifies that issuers of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Additionally, on January 1, 2009, the Company adopted FASB guidance which changes the reporting for minority interests, which now must be characterized as noncontrolling interests and classified as a component of consolidated equity. The calculation of income and earnings per share continues to be based on income amounts attributable to the parent and is characterized as net income attributable to common stockholders. As required, all prior period amounts have been restated to reflect the adoption of this new guidance.

29

Normalized FFO and FAD Guidance for the Year Ending December 31, 2010

The following table illustrates the Company’s normalized FFO and FAD per diluted common share guidance for the year ending December 31, 2010:

	GUIDANCE
	For the Year
	Ending
	December 31, 2010
Net income attributable to common stockholders	1.38			–	1.47
Adjustments:
Depreciation and amortization on real estate assets, depreciation related to noncontrolling interest and gain/loss on sale of real estate assets, net	1.28			–	1.28
FFO		2.66		–		2.75
Adjustments:
Income tax benefit/expense, gain/loss on extinguishment of debt and merger-related expenses and deal costs, net	0.03			–	0.00
Normalized FFO		2.69		–		2.75
Straight-lining of rental income and routine capital expenditures	(0.14		)	–	(0.13		)
Normalized FAD	$	2.55		–	$	2.62

30

Net Debt to Pro Forma EBITDA

The following pro forma information considers the effect on net income, interest and depreciation of the Company’s investments and other capital transactions that were completed during the three months ended December 31, 2009, as if the transactions had been consummated as of the beginning of the period. The following table illustrates net debt to pro forma earnings before interest, taxes, depreciation and amortization (“EBITDA”), excluding merger-related expenses and deal costs (dollars in thousands):

Pro forma net income for the three months ended December 31, 2009	$	53,964
Add back:
Pro forma interest (including discontinued operations)		45,014
Pro forma depreciation and amortization (including discontinued operations)		52,863
Stock-based compensation		2,667
Income tax benefit		(366	)
Noncontrolling interest		697
Net gain on real estate disposals		(294	)
Other taxes		300
Merger-related expenses and deal costs		1,565
Pro forma EBITDA	$	156,410
Pro forma EBITDA annualized	$	625,640
As of December 31, 2009:
Debt	$	2,670,101
Cash, including cash escrows pertaining to debt		(114,639	)
Net debt	$	2,555,462
Net debt to pro forma EBITDA		4.1	x

The Company considers EBITDA, excluding merger-related expenses and deal costs, a profitability measure which indicates the Company’s ability to service debt. The Company considers the net debt to pro forma EBITDA ratio a useful measure to evaluate the Company’s ability to pay its indebtedness. EBITDA, excluding merger-related and deal costs, presented herein is not necessarily comparable to EBITDA presented by other companies due to the fact that not all companies use the same definition. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s financial performance or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is EBITDA necessarily indicative of sufficient cash flow to fund all of the Company’s needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, EBITDA should be examined in conjunction with net income as presented elsewhere herein.

31