CONDENSED CONSOLIDATING INFORMATION (unaudited) (Tables)

6 Months Ended

Jun. 30, 2012

CONDENSED CONSOLIDATING INFORMATION (Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

	Ventas, Inc.		Ventas Issuers			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	7,918	$	428,933		$	16,604,931	$	—		$	17,041,782
Cash and cash equivalents		2,717		—			50,086		—			52,803
Escrow deposits and restricted cash		40,867		4,547			69,469		—			114,883
Deferred financing costs, net		757		18,558			6,435		—			25,750
Investment in and advances to affiliates		9,498,718		1,867,145			—		(11,365,863	)		—
Other assets		67,212		4,541			915,290		—			987,043
Total assets	$	9,618,189	$	2,323,724		$	17,646,211	$	(11,365,863	)	$	18,222,261
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—	$	3,212,867		$	3,991,860	$	—		$	7,204,727
Intercompany loans		2,209,248		(2,629,189	)		419,941		—			—
Accrued interest		—		21,099			26,743		—			47,842
Accounts payable and other liabilities		82,251		6,131			971,003		—			1,059,385
Deferred income taxes		271,066		—			—		—			271,066
Total liabilities		2,562,565		610,908			5,409,547		—			8,583,020
Redeemable OP unitholder interests		—		—			116,635		—			116,635
Total equity		7,055,624		1,712,816			12,120,029		(11,365,863	)		9,522,606
Total liabilities and equity	$	9,618,189	$	2,323,724		$	17,646,211	$	(11,365,863	)	$	18,222,261

	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries		Consolidated Elimination			Consolidated
	(In thousands)
Assets
Net real estate investments	$	309		$	519,042		$	15,712,261	$	—		$	16,231,612
Cash and cash equivalents		2,335			—			43,472		—			45,807
Escrow deposits and restricted cash		1,971			7,513			67,106		—			76,590
Deferred financing costs, net		757			19,239			6,673		—			26,669
Investment in and advances to affiliates		8,612,893			1,728,635			—		(10,341,528	)		—
Other assets		54,415			47,063			789,754		—			891,232
Total assets	$	8,672,680		$	2,321,492		$	16,619,266	$	(10,341,528	)	$	17,271,910
Liabilities and equity
Liabilities:
Senior notes payable and other debt	$	—		$	2,593,176		$	3,835,940	$	—		$	6,429,116
Intercompany loans		(68,408	)		(655,914	)		724,322		—			—
Accrued interest		—			12,561			25,133		—			37,694
Accounts payable and other liabilities		86,101			18,162			981,334		—			1,085,597
Deferred income taxes		260,722			—			—		—			260,722
Total liabilities		278,415			1,967,985			5,566,729		—			7,813,129
Redeemable OP unitholder interests		—			—			102,837		—			102,837
Total equity		8,394,265			353,507			10,949,700		(10,341,528	)		9,355,944
Total liabilities and equity	$	8,672,680		$	2,321,492		$	16,619,266	$	(10,341,528	)	$	17,271,910

CONDENSED CONSOLIDATING STATEMENT OF INCOME

	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	634		$	69,872	$	227,066		$	—		$	297,572
Resident fees and services		—			—		304,020			—			304,020
Medical office building and other services revenues		—			—		6,639			—			6,639
Income from loans and investments		951			560		6,641			—			8,152
Equity earnings in affiliates		51,602			—		172			(51,774	)		—
Interest and other income		56			5		4			—			65
Total revenues		53,243			70,437		544,542			(51,774	)		616,448
Expenses:
Interest		(1,513	)		23,932		52,009			—			74,428
Depreciation and amortization		810			13,228		175,311			—			189,349
Property-level operating expenses		—			118		237,276			—			237,394
Medical office building services costs		—			—		3,839			—			3,839
General, administrative and professional fees		2,907			7,114		16,689			—			26,710
Loss on extinguishment of debt		—			9,989		—			—			9,989
Merger-related expenses and deal costs		28,689			—		7,979			—			36,668
Other		(36	)		—		1,546			—			1,510
Total expenses		30,857			54,381		494,649			—			579,887
Income from continuing operations before income from unconsolidated entities, income taxes and noncontrolling interest		22,386			16,056		49,893			(51,774	)		36,561
Income from unconsolidated entities		—			514		—			—			514
Income tax benefit		5,179			—		—			—			5,179
Income from continuing operations		27,565			16,570		49,893			(51,774	)		42,254
Discontinued operations		46,460			584		(15,562	)		—			31,482
Net income		74,025			17,154		34,331			(51,774	)		73,736
Net loss attributable to noncontrolling interest		—			—		(289	)		—			(289	)
Net income attributable to common stockholders	$	74,025		$	17,154	$	34,620		$	(51,774	)	$	74,025

	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	618		$	67,759		$	71,531		$	—		$	139,908
Resident fees and services		—			—			201,307			—			201,307
Medical office building and other services revenues		—			—			9,822			—			9,822
Income from loans and investments		930			7,030			431			—			8,391
Equity earnings in affiliates		61,140			—			426			(61,566	)		—
Interest and other income		39			21			18			—			78
Total revenues		62,727			74,810			283,535			(61,566	)		359,506
Expenses:
Interest		(678	)		15,861			36,860			—			52,043
Depreciation and amortization		414			7,992			71,103			—			79,509
Property-level operating expenses		—			155			144,017			—			144,172
Medical office building services costs		—			—			7,954			—			7,954
General, administrative and professional fees		(6,001	)		9,058			12,497			—			15,554
Loss on extinguishment of debt		—			—			6			—			6
Merger-related expenses and deal costs		55,386			—			421			—			55,807
Other		40			—			(8,096	)		—			(8,056	)
Total expenses		49,161			33,066			264,762			—			346,989
Income from continuing operations before loss from unconsolidated entities, income taxes and noncontrolling interest		13,566			41,744			18,773			(61,566	)		12,517
Loss from unconsolidated entities		—			(83	)		—			—			(83	)
Income tax benefit		6,110			—			—			—			6,110
Income from continuing operations		19,676			41,661			18,773			(61,566	)		18,544
Discontinued operations		—			911			279			—			1,190
Net income		19,676			42,572			19,052			(61,566	)		19,734
Net income attributable to noncontrolling interest		—			—			58			—			58
Net income attributable to common stockholders	$	19,676		$	42,572		$	18,994		$	(61,566	)	$	19,676

	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	1,258		$	138,225	$	429,726		$	—		$	569,209
Resident fees and services		—			—		589,815			—			589,815
Medical office building and other services revenues		—			—		12,247			—			12,247
Income from loans and investments		1,890			1,029		13,269			—			16,188
Equity earnings in affiliates		112,778			—		219			(112,997	)		—
Interest and other income		85			10		17			—			112
Total revenues		116,011			139,264		1,045,293			(112,997	)		1,187,571
Expenses:
Interest		(2,236	)		45,169		101,123			—			144,056
Depreciation and amortization		1,518			20,949		329,138			—			351,605
Property-level operating expenses		—			241		453,717			—			453,958
Medical office building services costs		—			—		6,827			—			6,827
General, administrative and professional fees		3,810			14,112		30,985			—			48,907
Loss (gain) on extinguishment of debt		—			39,720		(187	)		—			39,533
Merger-related expenses and deal costs		30,053			—		14,596			—			44,649
Other		1			—		3,085			—			3,086
Total expenses		33,146			120,191		939,284			—			1,092,621
Income from continuing operations before income from unconsolidated entities, income taxes and noncontrolling interest		82,865			19,073		106,009			(112,997	)		94,950
Income from unconsolidated entities		—			831		—			—			831
Income tax expense		(6,159	)		—		—			—			(6,159	)
Income from continuing operations		76,706			19,904		106,009			(112,997	)		89,622
Discontinued operations		87,945			1,985		(15,724	)		—			74,206
Net income		164,651			21,889		90,285			(112,997	)		163,828
Net loss attributable to noncontrolling interest		—			—		(823	)		—			(823	)
Net income attributable to common stockholders	$	164,651		$	21,889	$	91,108		$	(112,997	)	$	164,651

	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Revenues:
Rental income	$	1,225		$	134,412		$	143,128		$	—		$	278,765
Resident fees and services		—			—			315,809			—			315,809
Medical office building and other services revenues		—			—			16,779			—			16,779
Income from loans and investments		3,945			8,463			2,068			—			14,476
Equity earnings in affiliates		108,255			—			844			(109,099	)		—
Interest and other income		90			42			24			—			156
Total revenues		113,515			142,917			478,652			(109,099	)		625,985
Expenses:
Interest		(866	)		28,323			65,373			—			92,830
Depreciation and amortization		834			15,994			113,242			—			130,070
Property-level operating expenses		—			299			230,660			—			230,959
Medical office building services costs		—			—			13,490			—			13,490
General, administrative and professional fees		(7,035	)		15,198			22,223			—			30,386
Loss on extinguishment of debt		—			—			16,526			—			16,526
Merger-related expenses and deal costs		61,199			—			1,057			—			62,256
Other		30			—			(8,085	)		—			(8,055	)
Total expenses		54,162			59,814			454,486			—			568,462
Income from continuing operations before loss from unconsolidated entities, income taxes and noncontrolling interest		59,353			83,103			24,166			(109,099	)		57,523
Loss from unconsolidated entities		—			(253	)		—			—			(253	)
Income tax benefit		9,307			—			—			—			9,307
Income from continuing operations		68,660			82,850			24,166			(109,099	)		66,577
Discontinued operations		—			1,531			672			—			2,203
Net income		68,660			84,381			24,838			(109,099	)		68,780
Net income attributable to noncontrolling interest		—			—			120			—			120
Net income attributable to common stockholders	$	68,660		$	84,381		$	24,718		$	(109,099	)	$	68,660

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	74,025		$	17,154	$	34,331		$	(51,774	)	$	73,736
Other comprehensive loss:
Foreign currency translation		—			—		(1,607	)		—			(1,607	)
Change in unrealized gain on marketable debt securities		(403	)		—		—			—			(403	)
Other		—			—		(512	)		—			(512	)
Total other comprehensive loss		(403	)		—		(2,119	)		—			(2,522	)
Comprehensive income		73,622			17,154		32,212			(51,774	)		71,214
Comprehensive loss attributable to noncontrolling interest		—			—		(289	)		—			(289	)
Comprehensive income attributable to common stockholders	$	73,622		$	17,154	$	32,501		$	(51,774	)	$	71,503

	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	19,676		$	42,572	$	19,052		$	(61,566	)	$	19,734
Other comprehensive income (loss):
Foreign currency translation		—			—		560			—			560
Change in unrealized gain on marketable debt securities		(422	)		—		—			—			(422	)
Other		—			—		(23	)		—			(23	)
Total other comprehensive (loss) income		(422	)		—		537			—			115
Comprehensive income		19,254			42,572		19,589			(61,566	)		19,849
Comprehensive income attributable to noncontrolling interest		—			—		58			—			58
Comprehensive income attributable to common stockholders	$	19,254		$	42,572	$	19,531		$	(61,566	)	$	19,791

	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	164,651		$	21,889	$	90,285		$	(112,997	)	$	163,828
Other comprehensive income (loss):
Foreign currency translation		—			—		342			—			342
Change in unrealized gain on marketable debt securities		(711	)		—		—			—			(711	)
Other		—			—		(289	)		—			(289	)
Total other comprehensive (loss) income		(711	)		—		53			—			(658	)
Comprehensive income		163,940			21,889		90,338			(112,997	)		163,170
Comprehensive loss attributable to noncontrolling interest		—			—		(823	)		—			(823	)
Comprehensive income attributable to common stockholders	$	163,940		$	21,889	$	91,161		$	(112,997	)	$	163,993

	Ventas, Inc.			Ventas Issuers		Ventas Subsidiaries			Consolidated Elimination			Consolidated
	(In thousands)
Net income	$	68,660		$	84,381	$	24,838		$	(109,099	)	$	68,780
Other comprehensive income (loss):
Foreign currency translation		—			—		3,059			—			3,059
Change in unrealized gain on marketable debt securities		(1,679	)		—		—			—			(1,679	)
Other		—			—		(36	)		—			(36	)
Total other comprehensive (loss) income		(1,679	)		—		3,023			—			1,344
Comprehensive income		66,981			84,381		27,861			(109,099	)		70,124
Comprehensive income attributable to noncontrolling interest		—			—		120			—			120
Comprehensive income attributable to common stockholders	$	66,981		$	84,381	$	27,741		$	(109,099	)	$	70,004

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(19,090	)	$	103,802		$	376,096		$	—	$	460,808
Net cash used in investing activities		(906,694	)		(17	)		(68,340	)		—		(975,051	)
Cash flows from financing activities:
Net change in borrowings under revolving credit facility		—			(84,500	)		(4,154	)		—		(88,654	)
Proceeds from debt		—			1,184,568			84,747			—		1,269,315
Repayment of debt		—			(521,527	)		(124,195	)		—		(645,722	)
Net change in intercompany debt		935,981			(588,599	)		(347,382	)		—		—
Payment of deferred financing costs		—			(2,600	)		(380	)		—		(2,980	)
Issuance of common stock, net		342,469			—			—			—		342,469
Cash distribution (to) from affiliates		(1,984	)		(91,145	)		93,129			—		—
Cash distribution to common stockholders		(361,957	)		—			—			—		(361,957	)
Cash distribution to redeemable OP unitholders		(2,241	)		—			—			—		(2,241	)
Purchases of redeemable OP units		(611	)		—			—			—		(611	)
Distributions to noncontrolling interest		—			—			(2,907	)		—		(2,907	)
Other		14,509			—			—			—		14,509
Net cash provided by (used in) financing activities		926,166			(103,803	)		(301,142	)		—		521,221
Net increase (decrease) in cash and cash equivalents		382			(18	)		6,614			—		6,978
Effect of foreign currency translation on cash and cash equivalents		—			18			—			—		18
Cash and cash equivalents at beginning of period		2,335			—			43,472			—		45,807
Cash and cash equivalents at end of period	$	2,717		$	—		$	50,086		$	—	$	52,803

	Ventas, Inc.			Ventas Issuers			Ventas Subsidiaries			Consolidated Elimination		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(56,351	)	$	107,843		$	134,808		$	—	$	186,300
Net cash (used in) provided by investing activities		(322,302	)		(500,879	)		78,575			—		(744,606	)
Cash flows from financing activities:
Net change in borrowings under revolving credit facilities		—			99,500			—			—		99,500
Proceeds from debt		—			689,374			14,737			—		704,111
Repayment of debt		—			—			(337,427	)		—		(337,427	)
Net change in intercompany debt		188,002			(407,836	)		219,834			—		—
Payment of deferred financing costs		—			(985	)		(378	)		—		(1,363	)
Issuance of common stock, net		299,926			—			—			—		299,926
Cash distribution from (to) affiliates		7,932			12,882			(20,814	)		—		—
Cash distribution to common stockholders		(201,949	)		—			—			—		(201,949	)
Distributions to noncontrolling interest		—			—			(616	)		—		(616	)
Other		913			—			—			—		913
Net cash provided by (used in) financing activities		294,824			392,935			(124,664	)		—		563,095
Net (decrease) increase in cash and cash equivalents		(83,829	)		(101	)		88,719			—		4,789
Effect of foreign currency translation on cash and cash equivalents		—			101			—			—		101
Cash and cash equivalents at beginning of period		1,083			—			20,729			—		21,812
Cash and cash equivalents at end of period	$	(82,746	)	$	—		$	109,448		$	—	$	26,702