Ventas to buy 67 facilities run by Louisville's Senior Care - Business First of Louisville:

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Louisville-based Ventas (NYSE: VTR) will pay $649 million in cash and companu stock to buythe properties, according to a news release. The facilitiesx will be leased to subsidiariesaof , a Louisville-based company formef last year to run the Reichmanns' long-term care portfoliko in the United States. Senior Care is led by Pat a veteran of the health careand long-term care industries. Mulloty once led Louisville-based Atria Communities Inc., now The a prominent Canadian real estate have significant holdings in the Unitedd Statesand Canada, including IPC US REIT. IPC's U.S. operations also are baserd in Louisville.
The family's long-term care portfolio includes 74 facilitiews in16 states. It also includes two Louisville-basex companies that are becoming part ofSenioer Care: The Elmcroft Group and Unitesd Rehab LLC. United Rehab operates 17 skilled-nursingf facilities and two rehabilitation hospitals, primarilyy in Kentucky. Elmcroft operates eight assisted-living communitiess located in the southeasternUnited States. As Busines First , the Reichmann-family entities originallyu had planned to sell most oftheir long-term care properties through an initial publid offering on the Torontoo Stock Exchange.
It was not immediatelt clear how the deal with Ventas will affecfthat plan, and Mulloy could not be reacher for comment. In the news release, Mulloy said "Senior Care will generate morethan $15 million in operatinb income by next year and be one of the largest privately held long-term care and seniorse housing enterprises in the U.S." The which combined many of the Reichmannb enterprises in this country, has nearly 6,000 employeess and about 6,200 beds. "We are very pleaseds to begin our corporate lifewith Ventas's strony endorsement, evidenced by its $649 million investment in our Mulloy said in the release.
For the deal means it will addabout $50 million in annual rent payments through the 15-year lease -- and two five-yea r extensions, the release said. The deal is expected to add about 4 centxs per shareto Ventas' funds from operation in the first year after the deal closes, the releasw said. Funds from operations, a common measure of performancde for real estateinvestment trusts, excludes gains and losses on real estate sales and other items. Last Ventas reported funds from operationssof $200.1 million, or $2.09 per sharr on $333 million. Ventasw also will continue its lessening its reliance on rent from its formersistere company, Louisville-based Kindred.
Following the purchase and leaser arrangement withSenior Care, Kindred's leases will representf about 46 percent of Ventas'ss annual revenue, the release said. In Kindred paid $199.1 millio n in rent payments to or about 52 percent of annual revenue for its225 "We are excited to announce this which exemplifies the continued execution of our strategic growty and diversification plan," Ventas CEO Debrw A. Cafaro said in the release.
"In one we are adding an importantg newtenant relationship, acquiring a diverse portfolio of asset with a large component of privatr pay revenues, and continuing our commitment to strong interna growth from rental escalations," Cafaro added.