Ventas, Inc. (VTR, NYSE)
Industry: REIT - Healthcare Facilities
Annual report, fiscal year 2017


## A VENTAS

## 2017 ANNUAL REPORT
Excellence. Sustained.



## FINANCIAL HIGHLIGHTS

FINANCIAL SUMMARY

<table><tr><td>Income from Continuing Operations per diluted common share</td><td>$1.80</td><td>$1.59</td></tr><tr><td>Normalized Funds from Operations (FFO) per diluted common share</td><td>$4.16</td><td>$4.13</td></tr><tr><td>Reported FFO (NAREIT FFO) per diluted common share</td><td>$4.22</td><td>$4.13</td></tr><tr><td>Net Debt to Adjusted Pro Form EBITDA \( ^{1} \)</td><td>5.7x</td><td>5.7x</td></tr><tr><td>Same Store Net Operating Income (NOI) Growth</td><td>2.5%</td><td>2.7%</td></tr><tr><td>Total Indebtedness to Gross Value</td><td>38%</td><td>38%</td></tr><tr><td>Fixed Charge Coverage</td><td>4.6x</td><td>4.8x</td></tr></table>

CURATED HIGH-QUALITY DIVERSIFIED PROPERTY PORTFOLIO



Record Financial Results



*Excludes share distribution associated with the spin-off of Capital Care Properties (CCP) in 2015



## LETTER
TO STAKEHOLDERS

Two Decades of Excellence. Sustained.

2017 was an outstanding year for Ventas, upholding our two decade history of excellence. Our superior business drove record revenues and cash flow. Our balanced, high-quality portfolio of life science, outpatient, seniors housing and other properties across the healthcare landscape delivered year-over-year earnings growth. We invested in our future, expanded our attractive university-based life science business, improved our financial strength, and profitably disposed of almost $1 billion in assets.

In 2017, we also received numerous prestigious honors recognizing excellence in our important environmental, social and governance (ESG) efforts. We are proud of our inaugural inclusion on the Dow Jones Sustainability North America Index, and our designation as a “Winning Company” on the 2020 Women on Boards Gender Diversity Index. We were also named as one of Fortune’s “2018 World’s Most Admired Companies,” underscoring our industry leadership, commitment to ESG values, exemplary stewardship and world-class team.

Even with all of our achievements, Ventas knows there is so much more opportunity in the large, fragmented real estate healthcare space which continues to be supported by compelling demographic trends. In our highly dynamic market, the opportunities are immense and our position is strong.

In 2018, our 20th anniversary year, we remain relentlessly focused on delivering value to all our stakeholders. Our strategic principles—a diversified portfolio of superior properties across asset classes in our space, operated by leading care providers, innovative premier institutions and partners; financial strength and flexibility; a secure dividend supported by stable and growing cash flows; and leadership built on a foundation of integrity—will continue to produce reliable growth and income.

Ventas has consistently advanced and improved through cycles because we know that every environment provides pathways to create value. Our cohesive and skilled team stays consistently prepared, productive and ready to seize opportunities. With two decades of proven strategic vision, exceptional foresight and innovation, and intelligent, timely capital allocation decisions, we expect to build upon our successful track record long into the future.

Thanks to your ongoing trust and support, Ventas stands ready for the next twenty years.



DEBRA A. CAFARO
Chairman and Chief Executive Officer

VENTAS \( ^{®} \)



## 2017
ACCOMPLISHMENTS

$1.8B

of attractive value-
creating investments
and redevelopment
commitments

~40%
investment growth
in University-
adjacent
Life Science
Platform

100+ LEED \( ^{®} \)  AND ENERGY STAR \( ^{®} \) 

Certified properties
throughout the portfolio

~$1B

in profitable
dispositions

5% YEAR-
OVER-YEAR

increase in
the dividend

80+

community organizations
supported through the
Ventas Charitable Foundation

ONLY Healthcare REIT named in Fortune's

“2018 World’s Most Admired Companies”

Positive gender
diversity
10% higher than
S&P 500 average

(Source: Catalyst.org)

2.5%

Same Store
NOI Growth

2,360%

CEO Tenure TSR
(Source: Bloomberg)

$1.4B

increased
liquidity

Named to
Dow Jones
Sustainability
North America
Index for 1 \( ^{st} \)  time

Note: Data per respective Q4 filings, press releases, supplemental disclosures and earnings conference calls for the years ended December 31, 2017 and 2016, unless otherwise disclosed. This Annual Report contains certain non-GAAP financial measures. Reconciliations of each of these non-GAAP financial measures are available on the Company's website at https://www.ventasreit.com/investor-relations/non-gaap-financial-measures

1) EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization
2) IRF and LTAC: Inpatient Rehabilitation Facility and Long-Term Acute Care
3) Bloomberg: For period beginning 12/31/1999 and ending 12/31/2017. Ventas prices adjusted historically for spin-off of skilled nursing facilities (SNF) in 2015.



## DIRECTORS

Debra A. Cafaro
Chairman and Chief
Executive Officer
Ventas, Inc.

Jay M. Gellert
Former President and
Chief Executive Officer
Health Net, Inc.

Roxanne M. Martino
Managing Partner
OceanM19

Glenn J. Rufrano
Chief Executive Officer
VEREIT, Inc.

## EXECUTIVE OFFICERS

Debra A. Cafaro
Chairman and Chief
Executive Officer

Robert F. Probst
Executive Vice President
and Chief Financial Officer

## ANNUAL MEETING

The Annual Meeting of Stockholders will convene May 15, 2018 at 8:00 a.m. (CDT) at 353 North Clark Street, James C. Tyree Auditorium, Chicago, IL 60654

## STOCK INFORMATION

NYSE Symbol: VTR
As of March 16, 2018, Ventas had
356.3 million shares outstanding.

James D. Shelton
Presiding Director, Ventas, Inc.
Lead Independent Director,
Envision Healthcare

Richard I. Gilchrist
Senior Advisor
The Irvine Company

Walter C. Rakowich
Former Chief Executive Officer
Prologis, Inc.

John D. Cobb
Executive Vice President
and Chief Investment Officer

T. Richard Riney
Executive Vice President,
Chief Administrative Officer,
General Counsel and Ethics
and Compliance Officer

## TRANSFER AGENT & REGISTRAR

EQ Shareowner Services
P.O. Box 64874
St. Paul, MN 55164-0854
(800) 401 1957

INDEPENDENT AUDITORS

KPMG LLP

Melody C. Barnes
Co-Founder and Principal
MB Squared Solutions LLC

Matthew J. Lustig
Head of North America
Investment Banking and Head
of Real Estate and Lodging
Lazard Frères & Co. LLC

Robert D. Reed
Former Senior Vice President
and Chief Financial Officer
Sutter Health

## Todd W. Lillibridge

Executive Vice President,
Medical Property Operations,
and President and
Chief Executive Officer,
Lillibridge Healthcare Services, Inc.

## INFORMATION

Copies of our 2017 Form 10-K and other filings with the Securities and Exchange Commission may be obtained without charge via our website at ventsreit.com

## MEMBER

National Association of Real Estate
Investment Trusts



## VENTAS \( ^{®} \) 

## CORPORATE HEADQUARTERS

500 North
Hurstbourne Parkway
Suite 200
Louisville, KY 40222
(502) 357 9000

353 North Clark Street
Suite 3300
Chicago, IL 60654
(312) 660 3800

2745 North
Dallas Parkway
Suite 570
Plano, TX 75093
(972) 248 9100