Ventas (VTR) 8-K Entry into a Material Definitive Agreement

Exhibit 99.1

Ventas, Inc.       10350 Ormsby Park Place, Suite 300       Louisville, Kentucky 40223       (502) 357•9000       (502) 357•9001 Fax

Contacts:	Debra A. Cafaro
	Chairman, President and CEO
	or
	Richard A. Schweinhart
	Executive Vice President and CFO
	(502) 357-9000

VENTAS REPORTS FIRST QUARTER NORMALIZED FFO OF $57.5 MILLION;

First Quarter Normalized FFO Per Share Rises 15 Percent to $0.55 Per Share;

Company Increases 2006 Normalized FFO Guidance to $2.23 to $2.25 Per Share

LOUISVILLE, KY (May 1, 2006) – Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that first quarter 2006 normalized Funds from Operations (“FFO”) rose 41 percent to $57.5 million, compared with $40.7 million in the first quarter of 2005. Normalized FFO per diluted share in the first quarter of 2006 increased 15 percent to $0.55 from $0.48 per diluted share for the comparable 2005 period. In the quarter ended March 31, 2006, the Company had 104.3 million weighted average diluted shares outstanding, compared to 85.4 million weighted average diluted shares outstanding a year earlier.

Results for the first quarter benefited from increased rent resulting from the Company’s accelerated investment activity in 2005 and increased rent from the escalator clauses contained in its existing leases.

“With a 15 percent increase in normalized FFO for the first quarter and continued execution of our strategic growth and development plan, we feel 2006 is off to an excellent start,” Ventas President, Chairman and CEO Debra A. Cafaro said. “We remain focused on our goal of delivering reliable cash flow and superior risk-adjusted returns. As we look ahead to the remainder of the year, we are pleased to increase our guidance for 2006 normalized FFO per share to the higher end of the range of $2.23 to $2.25 per share.”

GAAP NET INCOME

Net income for the quarter ended March 31, 2006 was $29.1 million, or $0.28 per diluted share, compared with net income for the quarter ended March 31, 2005 of $27.6 million, or $0.32 per diluted share.

FIRST QUARTER HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS

• As previously announced, on April 26, 2006, the Company entered into a $500 million unsecured revolving credit facility initially priced at 75 basis points over LIBOR, significantly better than its previous $300 million secured revolving credit facility that was priced at 145 basis points over LIBOR. The new credit facility matures in 2009, subject to a one-year extension at the Company’s option.

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• As previously reported, on March 31, 2006, Ventas completed its purchase of Towne Centre, a 327-unit/bed continuing-care retirement community (CCRC) located in Indiana, in a transaction valued at $29 million. Ventas’s current tenant, Capital Senior Living Corporation (NYSE: CSU) (together with its subsidiaries, “Capital Senior”), was the seller, and Ventas leased the CCRC to Capital Senior at the closing. The triple-net operating lease with Capital Senior has an initial cash yield of 8 percent and is expected to escalate at an average of 2.5 percent per year over the life of the lease. If these annual escalations are achieved, Ventas’s unlevered yield will be 9 percent over the initial ten-year base term of the lease.

• Also in the first quarter of 2006, Ventas purchased one seniors housing facility and three Alzheimer’s facilities for $19.3 million in two separate transactions. The assets are located in California and Florida and contain 194 units/beds. The leases provide Ventas with an initial cash yield of approximately 8.7 percent and an expected unlevered yield over the life of the leases of 10.5 percent.

• Since March 31, 2006, Ventas purchased one seniors housing facility located in Florida for $6.9 million. The asset contains 160 units/beds. The lease provides Ventas with an initial cash yield of approximately 8.5 percent and an expected unlevered yield over the life of the lease of approximately 10 percent.

• With these completed acquisitions, annualized REIT Revenue from Kindred represents approximately 51 percent of the Company’s run rate total revenue, assuming a full year effect of all closed 2006 acquisitions. Annualized revenue from market rate, non-government-reimbursed assets in the Company’s portfolio represents approximately 44 percent of the Company’s annualized revenue on the same basis. Assets leased to Kindred now represent approximately 33 percent of the Company’s total real estate assets, measured on a gross book value basis.

• The 225 skilled nursing facilities and hospitals leased by the Company to Kindred produced EBITDARM to rent coverage of 2.5 times for the trailing twelve-month period ended December 31, 2005 (the latest date available). Further information detailing these rent coverages by Master Lease and by asset class is contained on a schedule attached to this press release.

• As previously announced, on April 7, 2006, the Company filed an automatic shelf registration statement with the Securities and Exchange Commission relating to the sale from time to time of various debt and equity securities, which will provide the Company with greater flexibility and efficiency in raising debt and/or equity through the capital markets. The Company has no current intention to issue any securities.

• The Company’s debt to total capitalization at March 31, 2006 was approximately 35 percent.

• As of March 31, 2006, Ventas’s enterprise value exceeded $5.3 billion.

• Ventas expects to file its Form 10-Q for the quarter ended March 31, 2006 on or about May 2, 2006.

FIRST QUARTER 2006 RESULTS

Rental revenue for the quarter ended March 31, 2006 was $96.5 million, of which $50.3 million resulted from leases with Kindred. First quarter 2006 expenses totaled $68.7 million and included $28.5 million of depreciation expense and $33.0 million of interest expense. General, administrative and professional fees totaled $6.7 million and included $0.8 million for non-cash stock-based compensation. Property-level operating expenses relating to the Company’s medical office building portfolio for the period were $0.6 million.

VENTAS RAISES NORMALIZED FFO GUIDANCE FOR 2006

Ventas also stated that it expects its 2006 normalized FFO to be between $2.23 and $2.25 per diluted share, increased from its previous guidance of $2.20 to $2.23 per diluted share. If achieved, this projection represents approximately 7 percent growth in normalized FFO per share.

The Company’s normalized FFO guidance for all periods assumes that all of the Company’s tenants and borrowers continue to meet all of their obligations to the Company. In addition, the Company’s normalized FFO

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guidance (and related GAAP earnings projections) excludes gains and losses on the sales of assets and the impact of future, unannounced acquisitions, divestitures (including pursuant to tenant options to purchase) and capital transactions. Its guidance also excludes the future impact of (a) any rent or other amounts derived from the Reset Right, whether through a negotiated resolution with Kindred or the appraisal process set forth in the Master Leases, (b) any expense the Company records for non-cash “swap ineffectiveness” and (c) any expenses related to asset impairment, the write-off of unamortized deferred financing fees, including in connection with the replacement of the Company’s previous secured revolving credit facility with the new $500 million unsecured revolving credit facility, or additional costs, expenses or premiums incurred as a result of early debt retirement.

The Company’s guidance is based on a number of other assumptions, which are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

Reconciliation of the Company’s guidance to the Company’s projected GAAP earnings is provided on a schedule attached to this press release. The Company may from time to time update its publicly announced guidance, but it is not obligated to do so.

FIRST QUARTER CONFERENCE CALL

Ventas will hold a conference call to discuss this earnings release on May 2, 2006, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The conference call is being webcast live by CCBN and can be accessed at the Company’s website atwww.ventasreit.com orwww.earnings.com. An online replay of the webcast will be available at approximately 12:00 p.m. Eastern Time and will be archived for 30 days.

Ventas, Inc. is a leading healthcare real estate investment trust that is the nation’s largest owner of seniors housing and long-term care assets. At the date of this press release, Ventas owns 386 healthcare and seniors housing assets in 42 states. Its diverse portfolio includes 41 hospitals, 200 skilled nursing facilities and 145 seniors housing and other assets. More information about Ventas can be found on its website atwww.ventasreit.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 Ventas, Inc.’s (“Ventas” or the “Company”) and its subsidiaries’ expected future financial position, results of operations, cash flows, funds from operations, dividends and dividend plans, financing plans, business strategy, budgets, projected costs, capital expenditures, competitive positions, 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. Such forward-looking statements are inherently uncertain, and security holders must recognize that actual results may differ from the Company’s expectations. The Company does not undertake a duty to update such 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 depending on a variety of factors discussed in the Company’s filings with the Securities and Exchange Commission. Factors that may affect the Company’s plans or results include without limitation: (a) the ability and willingness of the Company’s operators, tenants, borrowers and other third parties to meet and/or perform the obligations under their various contractual arrangements with the Company; (b) the ability and willingness of Kindred Healthcare, Inc. (together with its subsidiaries, “Kindred”), Brookdale Living Communities, Inc. (together with its subsidiaries, “Brookdale”) and Alterra Healthcare Corporation (together with its subsidiaries, “Alterra”) to meet and/or perform their obligations to indemnify, defend and hold the Company harmless from and against various claims, litigation and liabilities under the Company’s respective contractual arrangements with Kindred, Brookdale and Alterra; (c) the ability of the Company’s operators, tenants and borrowers to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities, including without limitation obligations under their existing credit facilities; (d) the Company’s success in implementing its business strategy and the Company’s ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions or investments, including those in different asset types and outside the United States; (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 cost of borrowing; (h) the ability of the Company’s operators to deliver high quality care and to attract patients; (i) the results of litigation affecting the Company; (j) changes in general economic conditions and/or economic conditions in the

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markets in which the Company may, from time to time, compete; (k) the Company’s ability to pay down, refinance, restructure and/or extend its indebtedness as it becomes due; (l) the movement of interest rates and the resulting impact on the value of and the accounting for the Company’s interest rate swap agreement; (m) the Company’s ability and willingness to maintain its qualification as a REIT due to economic, market, legal, tax or other considerations; (n) final determination of the Company’s taxable net income for the year ended December 31, 2005 and for the year ending December 31, 2006; (o) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases and the Company’s ability to relet its properties on the same or better terms in the event such leases expire and are not renewed by the existing tenants; (p) the impact on the liquidity, financial condition and results of operations of the Company’s operators, borrowers and tenants resulting from increased operating costs and uninsured liabilities for professional liability claims, and the ability of the Company’s operators, borrowers and tenants to accurately estimate the magnitude of such liabilities; and (q) the value of the Company’s rental reset right with Kindred, which is dependent on a variety of factors and is highly speculative. Many of such factors are beyond the control of the Company and its management.

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Ventas Reports First Quarter Results

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May 1, 2006

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005

(In thousands, except per share amounts)

	March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005
	(Unaudited)			(Audited)			(Unaudited)			(Unaudited)			(Unaudited)
Assets
Real estate investments:
Land	$	298,185		$	295,363		$	295,017		$	277,668		$	153,851
Building and improvements		2,778,262			2,732,533			2,718,128			2,582,567			1,401,609
		3,076,447			3,027,896			3,013,145			2,860,235			1,555,460
Accumulated depreciation		(569,675	)		(541,346	)		(513,098	)		(485,476	)		(467,285	)
Net real estate property		2,506,772			2,486,550			2,500,047			2,374,759			1,088,175
Loans receivable, net		35,870			39,924			52,588			57,540			38,883
Net real estate investments		2,542,642			2,526,474			2,552,635			2,432,299			1,127,058
Cash and cash equivalents		1,466			1,641			5,764			802			1,779
Escrow deposits and restricted cash		61,753			59,667			56,397			51,951			17,764
Deferred financing costs, net		16,844			17,581			17,257			18,314			12,928
Subscriptions receivable		—			—			—			97,020			—
Notes receivable-related parties		2,859			2,841			2,893			2,876			3,234
Other		36,040			30,914			23,184			22,193			11,435
Total assets	$	2,661,604		$	2,639,118		$	2,658,130		$	2,625,455		$	1,174,198
Liabilities and stockholders’ equity
Liabilities:
Senior notes payable and other debt	$	1,854,551		$	1,802,564		$	1,811,319		$	1,832,684		$	877,642
Deferred revenue		9,953			10,540			11,126			11,713			12,298
Interest rate swap agreement		577			1,580			6,177			11,155			9,717
Accrued dividend		—			37,343			37,255			—			30,531
Accrued interest		34,636			14,418			30,432			13,639			18,871
Accounts payable and other accrued liabilities		72,726			74,960			77,316			70,710			28,015
Deferred income taxes		30,394			30,394			30,394			30,394			30,394
Total liabilities		2,002,837			1,971,799			2,004,019			1,970,295			1,007,468
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 10,000 shares authorized, unissued		—			—			—			—			—
Common stock, $0.25 par value; 180,000 shares authorized; 103,850, 103,523,103,226, 99,960 and 85,223 shares issued at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively		25,974			25,927			25,890			25,888			21,306
Capital in excess of par value		694,531			692,650			692,676			696,811			210,216
Unearned compensation on restricted stock		—			(713	)		(1,017	)		(1,301	)		(1,616	)
Accumulated other comprehensive income (loss)		685			(143	)		(942	)		(5,343	)		(3,327	)
Retained earnings (deficit)		(62,308	)		(50,402	)		(60,280	)		(51,746	)		(48,255	)
		658,882			667,319			656,327			664,309			178,324
Treasury stock, 4, 0, 79, 326 and 413 shares at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively		(115	)		—			(2,216	)		(9,149	)		(11,594	)
Total stockholders’ equity		658,767			667,319			654,111			655,160			166,730
Total liabilities and stockholders’ equity	$	2,661,604		$	2,639,118		$	2,658,130		$	2,625,455		$	1,174,198

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May 1, 2006

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Three Months Ended March 31, 2006 and 2005

(In thousands, except per share amounts)

(Unaudited)

	For the Three Months Ended March 31,
	2006		2005
Revenues:
Rental income	$	96,505	$	62,536
Interest income from loans receivable		968		652
Interest and other income		341		612
Total revenues		97,814		63,800
Expenses:
Interest		32,957		16,976
Depreciation		28,470		13,220
Property-level operating expenses		622		552
General, administrative and professional fees (including non-cash stock-based compensation expense of $758 and $420, respectively)		6,631		5,440
Total expenses		68,680		36,188
Income before discontinued operations		29,134		27,612
Discontinued operations		—		(39	)
Net income	$	29,134	$	27,573
Earnings per common share:
Basic:
Income before discontinued operations	$	0.28	$	0.33
Net income	$	0.28	$	0.33
Diluted:
Income before discontinued operations	$	0.28	$	0.32
Net income	$	0.28	$	0.32
Shares used in computing earnings per common share:
Basic		103,751		84,657
Diluted		104,300		85,400
Dividends declared per common share	$	0.395	$	0.36

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May 1, 2006

QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	First Quarter 2006		2005 Quarters
			Fourth			Third			Second			First
Revenues:
Rental income	$	96,505	$	96,274		$	93,569		$	72,340		$	62,536
Interest income from loans receivable		968		1,284			1,573			1,492			652
Interest and other income		341		745			791			1,120			612
Total revenues		97,814		98,303			95,933	��		74,952			63,800
Expenses:
Interest		32,957		33,612			32,263			22,730			16,976
Depreciation		28,470		28,695			27,694			18,239			13,220
Property-level operating expenses		622		706			677			641			552
General, administrative and professional fees (including non-cash stock-based compensation expense of $758, $574, $471, $506 and $420, respectively)		6,631		6,996			6,580			6,059			5,440
Loss on extinguishment of debt		—		1,376			—			—			—
Net gain on swap breakage		—		(981	)		—			—			—
Net proceeds from litigation settlement		—		(15,909	)		—			—			—
Contribution to charitable foundation		—		2,000			—			—			—
Total expenses		68,680		56,495			67,214			47,669			36,188
Income before net loss on real estate disposals and discontinued operations		29,134		41,808			28,719			27,283			27,612
Net loss on real estate disposals		—		—			—			(175	)		—
Income before discontinued operations		29,134		41,808			28,719			27,108			27,612
Discontinued operations		—		5,413			2			(40	)		(39	)
Net income	$	29,134	$	47,221		$	28,721		$	27,068		$	27,573
Earnings per common share:
Basic:
Income before discontinued operations	$	0.28	$	0.40		$	0.28		$	0.31		$	0.33
Net income	$	0.28	$	0.46		$	0.28		$	0.31		$	0.33
Diluted:
Income before discontinued operations	$	0.28	$	0.40		$	0.28		$	0.30		$	0.32
Net income	$	0.28	$	0.45		$	0.28		$	0.30		$	0.32
Shares used in computing earnings per common share:
Basic		103,751		103,542			103,081			88,574			84,657
Diluted		104,300		104,176			103,880			89,350			85,400
Dividends declared per common share	$	0.395	$	0.36		$	0.36		$	0.36		$	0.36
Discontinued operations:
Rental income	$	—	$	230		$	202		$	202		$	203
Interest and other income		—		165			—			—
Interest		—		81			154			196			196
Depreciation		—		15			46			46			46
Income (loss) before gain on sale of real estate		—		299			2			(40	)		(39	)
Gain on sale of real estate		—		5,114			—			—			—
Discontinued operations	$	—	$	5,413		$	2		$	(40	)	$	(39	)

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Ventas Reports First Quarter Results

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May 1, 2006

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2006 and 2005

(In thousands)

(Unaudited)

	For the Three Months Ended March 31,
	2006			2005
Cash flows from operating activities:
Net income	$	29,134		$	27,573
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation (including amounts in discontinued operations)		28,470			13,266
Amortization of deferred financing costs		770			890
Stock-based compensation		758			420
Straight-lining of rental income		(4,950	)		(880	)
Amortization of deferred revenue		(603	)		(636	)
Other		(177	)		(1,046	)
Changes in operating assets and liabilities:
(Increase) decrease in escrow deposits and restricted cash		(2,086	)		8,194
Increase in other assets		(405	)		(703	)
Increase in accrued interest		20,218			10,128
(Decrease) increase in accounts payable and accrued and other liabilities		(1,973	)		859
Net cash provided by operating activities		69,156			58,065
Cash flows from investing activities:
Net investment in real estate property		(48,354	)		(31,139	)
Investment in loans receivable		—			(27,818	)
Proceeds from loans receivable		4,070			997
Other		(231	)		966
Net cash used in investing activities		(44,515	)		(56,994	)
Cash flows from financing activities:
Net change in borrowings under revolving credit facility		52,600			23,300
Proceeds from debt		2,074			—
Repayment of debt		(2,687	)		(1,145	)
Issuance of common stock		253			2,255
Proceeds from stock option exercises		1,360			699
Cash distribution to stockholders		(78,383	)		(27,498	)
Other		(33	)		(268	)
Net cash used in financing activities		(24,816	)		(2,657	)
Net decrease in cash and cash equivalents		(175	)		(1,586	)
Cash and cash equivalents at beginning of period		1,641			3,365
Cash and cash equivalents at end of period	$	1,466		$	1,779
Supplemental schedule of non-cash activities:
Assets and liabilities assumed from acquisitions:
Real estate property investments	$	—		$	12,110
Escrow deposits and restricted cash		—			248
Debt assumed		—			12,309
Other liabilities		—			49

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Ventas Reports First Quarter Results

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May 1, 2006

QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	First Quarter 2006			2005 Quarters
				Fourth			Third			Second			First
Cash flows from operating activities:
Net income	$	29,134		$	47,221		$	28,721		$	27,068		$	27,573
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation (including amounts in discontinued operations)		28,470			28,710			27,740			18,286			13,266
Amortization of deferred financing costs		770			998			1,058			945			890
Stock-based compensation		758			574			471			506			420
Straight-lining of rental income		(4,950	)		(5,895	)		(5,558	)		(1,954	)		(880	)
Amortization of deferred revenue		(603	)		(1,034	)		(1,143	)		(684	)		(636	)
Loss on extinguishment of debt		—			1,358			—			—			—
(Gain) loss on sale of assets (including amounts in discontinued operations)		—			(5,114	)		—			175			—
Net gain on swap breakage		—			(981	)		—			—			—
Other		(177	)		(497	)		(577	)		(578	)		(1,046	)
Changes in operating assets and liabilities:
(Increase) decrease in escrows deposits and restricted cash		(2,086	)		6,994			(3,085	)		(1,983	)		8,194
(Increase) decrease in other assets		(405	)		(1,330	)		5,197			(8,560	)		(703	)
Increase (decrease) in accrued interest		20,218			(16,014	)		17,232			(5,671	)		10,128
(Decrease) increase in accounts payable and accrued and other liabilities		(1,973	)		(2,788	)		1,324			14,567			859
Net cash provided by operating activities		69,156			52,202			71,380			42,117			58,065
Cash flows from investing activities:
Net investment in real estate property		(48,354	)		(9,592	)		(98,181	)		(450,641	)		(31,139	)
Proceeds from real estate disposals		—			295			—			1,121			—
Investment in loans receivable		—			—			—			(19,515	)		(27,818	)
Proceeds from loans receivable		4,070			13,084			5,431			762			997
Other		(231	)		(563	)		(671	)		423			966
Net cash (used in) provided by investing activities		(44,515	)		3,224			(93,421	)		(467,850	)		(56,994	)
Cash flows from financing activities:
Net change in borrowings under revolving credit facility		52,600			(6,700	)		(60,500	)		94,100			23,300
Proceeds from debt		2,074			200,000			—			400,000			—
Repayment of debt		(2,687	)		(212,823	)		(12,321	)		(5,699	)		(1,145	)
Issuance of common stock		253			126			97,144			2,439			2,255
Proceeds from stock option exercises		1,360			2,102			2,681			1,337			699
Cash distribution to stockholders		(78,383	)		(37,255	)		—			(61,090	)		(27,498	)
Payment of swap breakage fee		—			(2,320	)		—			—			—
Other		(33	)		(2,679	)		(1	)		(6,331	)		(268	)
Net cash (used in) provided by financing activities		(24,816	)		(59,549	)		27,003			424,756			(2,657	)
Net (decrease) increase in cash and cash equivalents		(175	)		(4,123	)		4,962			(977	)		(1,586	)
Cash and cash equivalents at beginning of period		1,641			5,764			802			1,779			3,365
Cash and cash equivalents at end of period	$	1,466		$	1,641		$	5,764		$	802		$	1,779
Supplemental schedule of non-cash activities:
Assets and liabilities assumed from acquisitions:
Real estate property investments	$	—		$	10,598		$	54,729		$	854,134		$	12,110
Escrow deposits and restricted cash		—			331			1,361			32,204			248
Other assets acquired		—			—			54			1,506			—
Debt assumed		—			10,768			51,456			466,641			12,309
Other liabilities		—			161			4,688			28,377			49
Issuance of common stock		—			—			—			392,826			—

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Ventas Reports First Quarter Results

Page 10

May 1, 2006

FUNDS FROM OPERATIONS AND NORMALIZED FFO

(In thousands, except per share amounts)

	First Quarter 2006		2005 Quarters
			Fourth			Third		Second		First
Net income	$	29,134	$	47,221		$	28,721	$	27,068	$	27,573
Adjustments:
Depreciation on real estate assets		28,329		28,557			27,576		18,144		13,129
Loss on real estate disposals		—		—			—		175		—
Other items:
Discontinued operations:
Gain on sale of real estate		—		(5,114	)		—		—		—
Depreciation on real estate assets		—		15			46		46		46
FFO		57,463		70,679			56,343		45,433		40,748
Loss on extinguishment of debt		—		1,376			—		—		—
Contribution to charitable foundation		—		2,000			—		—		—
Net proceeds from litigation settlement		—		(15,909	)		—		—		—
Net gain on swap breakage		—		(981	)		—		—		—
Bridge loan commitment fee		—		—			—		402		—
Normalized FFO	$	57,463	$	57,165		$	56,343	$	45,835	$	40,748
Per diluted share:
Net income	$	0.28	$	0.45		$	0.28	$	0.30	$	0.32
Adjustments:
Depreciation on real estate assets		0.27		0.28			0.26		0.21		0.16
Loss on real estate disposals		—		—			—		—		—
Other items:
Discontinued operations:
Gain on sale of real estate		—		(0.05	)		—		—		—
Depreciation on real estate assets		—		—			—		—		—
FFO		0.55		0.68			0.54		0.51		0.48
Loss on extinguishment of debt		—		0.01			—		—		—
Contribution to charitable foundation		—		0.02			—		—		—
Net proceeds from litigation settlement		—		(0.15	)		—		—		—
Net gain on swap breakage		—		(0.01	)		—		—		—
Bridge loan commitment fee		—		—			—		—		—
Normalized FFO	$	0.55	$	0.55		$	0.54	$	0.51	$	0.48

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 an appropriate measure of performance of an equity REIT. The Company uses the National Association of Real Estate Investment Trusts (“NAREIT”) definition of FFO. NAREIT defines FFO as net income, computed in accordance with U.S. generally accepted accounting principles (“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.

FFO presented herein is not necessarily comparable to FFO presented by other real estate companies due to the fact that not all real estate companies use the same definition. FFO 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 FFO necessarily indicative of sufficient cash flow to fund all of the Company’s needs.

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Ventas Reports First Quarter Results

Page 11

May 1, 2006

The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO should be examined in conjunction with net income as presented elsewhere in this press release.

Projected Normalized FFO Per Diluted Share for the Year Ending December 31, 2006

The following table illustrates the Company’s projected FFO per diluted share guidance for the year ending December 31, 2006.

	GUIDANCE
	For the Year Ending December 31, 2006
Net income	$	1.14	–	$	1.16
Adjustments:
Depreciation on real estate assets		1.08	–		1.08
FFO	$	2.22	–	$	2.24
Loss on extinguishment of debt		0.01	–		0.01
Normalized FFO	$	2.23	–	$	2.25

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 trailing twelve months ended March 31, 2006, 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, income taxes, depreciation and amortization (“EBITDA”) (dollars in thousands):

Pro forma net income for the trailing twelve months ended March 31, 2006	$	126,501
Add back:
Pro forma interest		142,574
Pro forma depreciation		117,290
Net gain on real estate disposals		(4,939	)
Loss on extinguishment of debt		1,376
Net gain on swap breakage		(981	)
Stock-based compensation		2,309
Pro forma EBITDA	$	384,130
As of March 31, 2006:
Debt	$	1,854,551
Cash		(1,466	)
Restricted cash pertaining to debt		(7,531	)
Escrow deposits pertaining to Section 1031 exchange		(10,075	)
Net debt	$	1,835,479
Net debt to pro forma EBITDA		4.8x

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Ventas Reports First Quarter Results

Page 12

May 1, 2006

The Company considers EBITDA a profitability measure which indicates the Company’s ability to service debt. The Company considers the net debt to EBITDA ratio a useful measure to evaluate the Company’s ability to pay its indebtedness. EBITDA 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 in this press release.

Scheduled Maturities of Borrowing Arrangements

The Company’s indebtedness has the following maturities as of March 31, 2006 (in thousands):

	As of March 31, 2006
2006	$	13,010
2007		157,471
2008		33,020
2009		315,623
2010		265,805
Thereafter		1,069,622
Total	$	1,854,551

Ventas – Kindred Portfolio

The following is based on data provided by Kindred to the Company or obtained from Kindred’s public filings. This information reflects Kindred’s EBITDARM and EBITDAR coverage by Master Lease and by asset class:

Kindred Master Lease	Facility Count	TTM1 EBITDARM Coverage2,4	TTM1 EBITDAR Coverage3,4
1	91	2.5x	1.9x
2	46	2.8x	2.2x
3	43	2.2x	1.5x
4	45	2.3x	1.7x
Portfolio	225	2.5x	1.9x

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Ventas Reports First Quarter Results

Page 13

May 1, 2006

Kindred Asset Class	Facility Count	TTM1 EBITDARM Coverage2,4	TTM1 EBITDAR Coverage3,4
Hospitals	39	3.6x	2.9x
Nursing Homes	186	1.8x	1.2x
Portfolio	225	2.5x	1.9x

¹ Trailing twelve months EBITDARM and EBITDAR for the period ended December 31, 2005 (the latest available data provided by Kindred) to the Company’s trailing twelve months cash rental revenue.

² 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 and Pharmacy Divisions for the twelve months ended December 31, 2005 has been eliminated from purchased ancillary expenses within the Ventas portfolio.

3 Coverage reflects the ratio of Kindred’s EBITDAR to rent. EBITDAR is defined as earnings before interest, income taxes, depreciation, amortization and rent, but after deducting a five percent management fee. In the calculation of trailing twelve months EBITDAR, intercompany profit pertaining to Kindred’s PeopleFirst Rehabilitation and Pharmacy Divisions for the twelve months ended December 31, 2005 has been eliminated from purchased ancillary expenses within the Ventas portfolio.

⁴ Coverage excludes the portion of a one-time $55.0 million Medicare reimbursement settlement and a corresponding one-time special employee recognition payment of $15.0 million allocated by Kindred to the Ventas facilities in the second quarter of 2005.

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