文稿案例讲稿04 nhp vtr transcript

FINALTRANSCRIPT

Feb.28.2011/1:30PM,VTR-VentastoAcquireNationwideHealthProperties-JointConferenceCall

©2011ThomsonReuters.

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CORPORATEPARTICIPANTS

DavidSmith

Ventas,Inc.-IR

DouglasPasquale

NationwideHealthProperties-CEO

DebraCafaro

Ventas,Inc.-ChairmanandCEO

CONFERENCECALLPARTICIPANTS

MichaelBilerman

-yst

JerryDoctrow

StifelNicolaus-yst

JeffreySpector

BofAMerrillLynch-yst

RossNussbaum

UBS-yst

RichAnderson

BMOCapitalMarkets-yst

BrianSekino

BarclaysCapital-yst

RobertMains

MorganKeegan&Co.,Inc.-yst

KarinFord

KeyBancCapitalMarkets-yst

PRESENTATION

Operator

Ladiesandgentlemen,thankyouforstandingby. etotoday'sconferencecallandwebcasttodiscussVentas,Inc.'sacquisitionofNationwideHealthProperties.Atthistime,allparticipantshavebeencedinalisten-onlymodeandthefloorwillbeopenforyourquestionsfollowingthepresentation.(OperatorInstructions)Thankyou.IwouldnowliketoturnthecallovertoMr.DavidSmith,pleasegoahead,sir.

DavidSmith-Ventas,Inc.-IR

Goodmorning,and etotheconferencecalltodiscussthecombinationofVentasandNationwideHealthProperties,whichwasannouncedearlierthismorning.PleaserefertotheslidepresentationlocatedonVentas'websiteatandonNHP'swebsiteat Aswestart,letmeexpressthatallprojectionsandpredictions

andcertainotherstatementstobemadeduringthisconferencecallmaybeconsideredforward-lookingstatementswithinthemeaningoftheFederalSecuritieslaws.Theseprojections,predictionsandstatementsarebasedoncurrentbeliefs,aswellasonanumberofassumptionsconcerningfutureevents.Theforward-lookingstatementsaresubjecttomanyrisksanduncertainties,andcontingencies,andstockholdersandothersshouldrecognizethtualresultsmaydiffermateriallyfromVentas'andNHP'pectations,whetherexpressedorimplied.

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Wereferyoutothereportsandother sfiledperiodicallybyVentasandNHPwiththeSecuritiesandExchangeCommissionforadiscussionoftheseforward-lookingstatements,andotherfactorsthatcouldaffecttheseforward-lookingstatements.ManyofthesefactorsarebeyondthecontroloftheCompaniesandtheirmanagement.Theinformationbeingprovidedtodayisasofthisdateonly,andVentasandNHPexpresslydianyobligationtopubliclyupdateorreviseanyforward-lookingstatementstoreflectchangesinexpectations.

PleasenotethatallfiguresforVentasandthecombinedareproformaforVentas'previouslyannouncedtransactiontoacquiresubstantiallyalloftheassetsofprivayownedAtriaSeniorLivingGroupwhichipectedtocloseinAprilof2011.Yourhostfortoday'sconferencecallisDebraA.Cafaro,ChairmanandCEOofVentas.AlsojoiningusisDouglasM.Pasquale,Chairman, andCEOofNHP.Withthat,IwillnowturnthecallovertoDebbie.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Thankyou,David,andgoodmorning,everyone.Itistrulywonderfultojoinyoutodaywithmynewcolleague,DougPasquale,atmyside.IhavegreatrespectforDoug ally,andforeverythingheandhi have plishedatNHP.WeareheretotalkaboutthetransformationalcombinationofVentasandNHPannouncedearliertoday.Thisisatremendouslyexcitingdayforbothcompanies.

Letmebeginbylingyouwhythistransactionmakessomuchsensefromamacro.Healthcarerealestateisoneofthemostattractiveanddynamicsectorswithintherealestateindustry.Itisalsooneofthelargest,withover$700billioninassets.OursectorservesoneofthefastestgrowingsegmentsoftheUSeconomy,healthcare,whichipectedtoreach20%ofUSGDterthisdecade.Wealsobenefitfromstronglyfavorableindustrysupplydemandfundamentals.

Inshort,thehealthcarerealestatemarketislarge,anditisgrowing.Yet,healthcareREITscollectivelyownlessthan10%ofthemarket.Asaresult,wesee opportunitiesforexpansionandgrowth.Moreover,publicREITs,withtheirlowcosttocapital,arewinninganincreasingshareoftransactionsinthemarketce.OurcombinationwithNHPcreatesthefranchiseinourindustry,withanunrivaledabilitytotapintothicitingopportunity.

Healthcarerealestateisthebeneficiaryofmanypositivetrends.First,demandisgrowingfromthe79millionbabyboomerswhostarttoturn65thisyear.Second,theover85populationisgrowingatthreetimestherateofthegeneralpopulation.Demandforhealthcarerealestateisalsoexpectedtobefueledby32millionuninsuredindividualsgainingaccesstothehealthcaresystem,beginningin2014.Atthesametime,thesupplyofhealthcareassetsisconstrained,withlimitednewdevelopmentduringthepastfewyearsandscarcepermittingactivityinthecurrentenvironment.Thiscombinationofgrowingdemandandlimitedsupplycreatessomeofthebestunderlyingfundamentalsintheentirerealestateindustry.

So,fromourthereisnobettercetoinvesttodaythaninthecombinedVentasNHP.Letmelyouwhy.Webelievethattowininourmarket,themostimportantcriteriaaresizeandscale,portfolioquality,costtocapitaladvantage,balancesheetstrengthandflexibility,internalandexternalgrowth,andsuperiordividendgrowth,andanexperiencedandinvestor-focusedmanagementteam.TogetherwithNHP,Ventaswillbeaclearleaderineachofthesecategories.Withrespecttosizeandscale,thecombinationofVentasandNHPwillcreatetheleadinghealthcareREITintheUnitedStates,andoneofthelargestpublicly-tradedREITsoverall.Together,wewillhaveanequityvalueofapproximay$17billionandenterprisevalueofapproximay$23billion,andVentaswillsolidifyitspositionasthelargestownerofseniorshousingnationally.

Thecombinedwillgenerate$13billionannuallyinNOI,andownmorethan1,300propertiesin47states,theDistrictofColumbiaandtwoCanadianprovinces.Inaddition,wewillhaverelationshipswithover100customers,creatingthebroadestportfolioofanyhealthcareREIT.Withourenhancedscale,wewillbewell-positionedtocompeteforawidespectrumoftransactions,growandinvestinourexistingrelationshipsandminehighreturnredevelopmentopportunitiesinourexistingportfolio.Ourcombinedportfoliowillbehighqualityandboastgreaterdiversificationacrossallkeymeasuresincludinggeography,assettypes,tenant-operatormixandoperatingmodel.

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First,tenantdiversification.Postclosing,nosingletenantoroperatorwillaccountformorethan19%ofourNOI,andourtopthreetenantswillaccountforapproximay46%ofourNOI,improvedfrom66%inourcurrentportfolio.Wewillbeverydiverse,andwewillalsohavetoptenantsandoperatorsincludingAtria,Brookdale,KindredandSunrise.Importantly,ourwillderivefully70%ofourcashflowsfromprivatepayassets,withseniorshousingaccountingforapproximay55%ofNOIandMOBsrepresenting11%.

Fromanoperatingmodelstandpoint,our197AtriaandSunrisehigh-quality,high-growthseniorhousingcommunitieswillmakeup26%ofourNOIs.Theseassetsareanimportantpartofourinternalgrowthstory,andthecombinedwillhavetheabilitytoincreasethoseassetswhilemaintainingexcellentportfoliobalanceandreliability.TogetherwithNHP,wearegainingimportantmarketcoverageintheMOBspaceaswell.Asyouknow,MOBshavebeenaparticularfocusofourssince2007,culminatingintheacquisitionofLillibridgeHealthcareServices.

NHPhasalmostfivemillionsquarefeetofmedicalofficebuildings,manyofthemnewlyconstructedClass-ApropertiesinmajorcitiesontheWestCoast.WewillalsosucceedtoNHPsenviablepipelinearrangementwithPacificMedical,includingNHP'srighttoacquireover$1billionofnewlyconstructedmedicalofficebuildingsatadiscounttofairmarketvalue.AddedtoourLillibridgeportfolio,Ventaswillown14millionMOBsquarefeetandintoacoast-to-coastpresenceinmedicalofficebuildings,almostallon-campusandalignedwithleadinghealthsystemsandhospitals.

Finally,Ventas'triplenetleaseswillcontinuetohaveexcellentcashflowcoverageof1.7timesacrossitsdiversifiedportfolioofseniorshousing,skillednursingandhospitalassets.ThiscoverageisconsistentwithVentas'stronghistoricalcashflowcoverage,andleadstostabilityandreliabilityinfuturecashflowsofthecombinedenterprise.Insum,wewillownthemostdiverseandbroadportfolioofassets,customerrelationships,MOBsandseniorhousingoperatingassetsinourbusiness.And,thecombinedwillboastatremendousbalancesheet.Thistransactionwillresultinenhancedfinancialstrengthsandflexibility,andcreatepositiveratingsmomentum.

BothVentasandNHPhaveatrackrecordofprudentbalancesheetmanagement.ThecombinedwillbenefitfromhavingthebestcreditprofileamonglargehealthcareREITs,includingconservativeleverageofapproximayfivetimesnetdebttoEBITDA,lessthan30%ofiterprisevalueconsistingofdebt,lowsecureddebtasapercentageofthefirmandfixedchargecoverageofoverthreetimes.Asaresult,weexpecttoenjoysignificantcostofcapitaladvantagesinthewayoflowerdebtcosts.Theselowerdebtcostswillimproveourearningsaswerefinanceourdebtmaturitiesandfundourfutureacquisitions.

Asaresultofourincreasedsize,scale,qualityandstructureofourportfolio,lowereddebtcosts,thePMBpipelineandourrelationshipswithover100customers,webelievethecombinedwillmaintainVentas'currentattractivegrowthprofile.Hereareafewreasonswhy.First,thecombinedwillhaveadditionalcapacityforinvestmentsinhighergrowthseniorshousingassetsinmanagementstructureslikeourSunriseandAtriaportfolios.Webelievetheseapartment-likecashflowsfromhighqualitycommunitiesinmajormetropolitanmarketscould,overtime,representover30%ofourtotalNOI.WiththeadditionofNHP,ourAtriaandSunrisemanagedcommunitieswillrepresent26%ofourbusiness,creatinganopportunitytoacceleratetheexpansionofthisportionofourbusiness,whilemaintainingasoundbalanceintheoverallbetweentriplenetleases,medicalofficebuildingsandoperatingassets.

Second,webelievewehavetheopportunitytoredeveloporaddtoourexistingassets,mostlyinthe643seniorshousingassetsweown,tocreatehigher-returninglower-riskinvestments.ThecombinedwillcontinuetohavemeaningfulsamestoreNOIgrowthfromcontractualleaseescalationsinourtriplenetleaseportfoliosthathavedeliveredvalueingoodtimesandbad.Andlastbutnotleast,webelievethecombinedacquisitionteamswillbepowerful.InadditiontoVentas'nearly$4billioninacquisitionsannouncedin2010,NHPcompletedover$900millioninacquisitionslastyear.NHPhasnearly$250millionmoreclosedorsettoclosebyquarterend,andanother$250millionindealsinthehopper.

ThesearejustafewreasonswebelievethatVentaswillmaintainastronggrowthrate.WeexpectthatVentaswillcontinuegrowingitsdividendatabove-averagelevelspostclosingwhilemaintainingabestinclasspayoutratio.Wehaveincreasedour

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dividend8%annuallyoagesince2004,andwebelievethatasafe,growingdividendisanimportantcomponentofdeliveringconsistentsuperiortotalreturnstoshareholders.

Ourmanagementteamexiststocreatevalueforstakeholders.Thistransactionrepresentsasignificantmomentinourcorporatehistoryandit'sconsistentwithourfocusoncreatingshareholdervaluethroughreliablegrowingcashflowsfromahigh-qualitydiverseportfolioofseniorshousingassets,prudentriskmanagement,includingmaintaininganexcellentbalancesheet,andexternalgrowth.NHPmarksourseventhmajoracquisitionsince2007andimplementsourstrategicvision.Weareproudthateverytransactionwehavecompletedhasresultedingreatervalueforourshareholders.

Letmeassureyouthatwearelaser-focusedoncompletingbothourpreviouslyannouncedacquisitionsof118assetsfromAtriaSeniorLivingGroupwhichisontracktocloseinAprilofthisyear,aswellastheNHPtransactionwiththesamefocusedexecutionwe'vehadinthepast.Thestrategicbenefitsofthistransactionarenumerousandcompelling.Andthetransactionisimmediayaccretiveanddeleveraging,aswellasdiversifying.SoIstronglybelievethateveryinvestorwillwanttoownthiscombinedenterprise.IwouldliketoturnthecallovertoDoug,whowilldiscussthetransactionfromhispointofview.

DouglasPasquale-NationwideHealthProperties-CEO

Thanks,Debbie.I'mreallyverypleasedtobeherewithyoutocelebratethicitingcombination,whichIbelievecreatestremendousvalueforshareholdersofbothcompanieswithfutureprospectsthataretrulyimpressive.ForshareholdersofNHP,Ventasistherightpartner,bringingtherightvalueattherighttime.LetmelyouwhatImeanbythat.Overeightmonthsago,leadinguptoourannualstrategicnningretreat,IsetouttodeterminehowbesttopositionNHPforthefuturecontinuingtoprovidebestshareholderreturnspossibleoverthecomingdecade.

Wefeltscale,growth,diversification,balancesheetstrengthandcostofcapitalwould eincreasinglyimportantinanindustrywebelievewill eevenmorecompetitive.Whilewewereverypleasedwithour strongperformanceandprospectsforthefuture,weembarkedonathoughtfulandthoroughprocesstocarefullydeterminewhethertherewasapartnerthatcouldaccelerateourstrategicns,enhanceourexistingmarketposition,createasector-leadingformidablecompetitor,andprourshareholdersvaluebothtodayandwellintothefuture,apartnerwiththesamecommitmenttoshareholdervalue,withcomplementaryassetsandastrongfinancialposition.

WefoundallofthatinVentas,makingthisafantasticcombination.Ventassharesourlegacyoffinancialstrengthandtop-tierreturnsforshareholders.Andwhenyouputtogetherourportfoliosandourbalancesheets,youwillhaveathatbenefitsfromstableandgrowingcashflows,increaseddiversification,alowercostofcapitalandanunparalleledabilitytocompeteforthefullrangeofopportunitiesinthemarket,bothlargeandsmall.

Finally,thistransactionisfinanciallycompellingforourshareholders.Ourinvestorswillseevaluetodayaswellassignificantupsidepotentialinthefuture.BasedonVentas'closingstockpriceonFriday,thetransactionrepresentsapremiumofapproximay15%overNHP'sclosingstockprice.ThisvaluationisaresultofallthehardworkofNHP'stalentedemployeesandBoardofDirectorswhoseeffortshavedeliveredsuperiorreturnsforshareholdersformanyyears.

Consistentwiththestrengthofourfranchise,wehaveyetagaindeliveredexcellentresultsforthe2010quarndfullyear,asweannouncetoday,and2011asDebbiesaid,isalreadyofftoaterrificstart.IhavealwayshadgreatrespectforDebbieandVentas,theconsistentsectorleader.I'meagertoworkwiththeentireVenta toensureasmoothtransition,andtocompletethistransactionapeditiouslyaspossible.Debbie,backtoyou.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Thankyou,Doug.Iappreciatethekindwords.Nowlet'sbrieflyreviewthedealterms.WeareacquiringalloftheoutstandingsharesofNHPinastock-for-stocktransactionvaluedat$7.4billion,whichisintendedtobetax-toshareholders.Underthe

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termsofouragreement,NHPshareholderswillreceiveafixedexchangeratioof0.7866sharesofVentascommonstockforeachshareofNHPcommonstocktheyown.

Uponclosingofthetransaction,Ventasshareholdersareexpectedtoownapproximay65%,andNHPshareholdersapproximay35%ofthecombined.Importantly,thetransactionisimmediayaccretivetoFFOandFAD.WealsoexpectthistransactiontogenerateannualoperatingcostsynergiesofabouthalfofNHP'scurrentG&A,orapproximay$15millioninthefirstyearfollowingclosing.

Completionofthetransaction,whichweexpecttooccurinthethirdquarterof2011,issubjecttotheapprovalofshareholdersofbothcompaniesandsatisfactionofothercustomaryclosingconditions.Weareconfidentthatwewillmaintainourstrongtrackrecordofsuccessfullyintegratingacquisitionsandmeetingourtargets.Welookforwardtoleveragingthetalentsofourcombinedorganization.Attheclosingofthetransaction,wewill ethreedirectorsfromNHP,includingDoug,toourexpandedBoard,whichwillbringourBoardtoatotalof13members.

Beforeweopenthecallforyourquestions,IwouldliketoreitewhywearesoexcitedaboutthistransactionwithNHPandthevalueitwillcreateforallstakeholdersofthecombined.Together,wewillhaveincreasedscale,liquidityandaqualityportfolioofdiverseassets,includinga70%privatepayassetbase.Wewillbenefitfromanimprovedcreditprofile,costofcapitaladvantage,andasecureddividendwithsuperiorgrowthpotential.Our dacquisitiontformswillbesecondtonone.Takentogether,thesecompetitiveadvantageswillallowustobuildonoursharedhistoryofsuccesswithintegrity,aswe eliveringsuperiorreturnstoourshareholders.Melissa,withthat,wewillbehappytoopenupthecallforourquestions.

QUESTIONSANDANSWERS

Operator

Thankyou.(OperatorInstructions).YourfirstquestioncomesfromMichaelBilermanofCiti.

MichaelBilerman--yst

Hi,Goodmorning.And(inaudible)isonwithmeaswell.Doug,justaquestionforyouintermsofprocess.Ithinkyoutalkedaboutcomingtotherealizationyourstrategicnabouteightmonthsago,ofwhereyouwantedtogetto,andthatVentaswastherightpartnerandyousortofat talkedaboutthevaluetoshareholdersbothtodaywiththepremiumandthego-forward.Canyoutalkalittleabouttheauctionprocessthatyouran,howmanypeoplewereinvolvedandhowdoyouseethatevolvinertime?

DouglasPasquale-NationwideHealthProperties-CEO

Listen,it'sagreatquestion.DebbieandIjustgotmarried,andthereisnowayIamgoingtorevealmydatinghistory.Weconductedaverythoroughandthoughtfulprocess.NHPasyouknow,isinterrificposition.Andyouwanttotakeactionsthatareasimportantasthisfromapositionofstrength.Andwewerepleasedwithwhatwehaddone,andwewerethrilledaboutourprospects,butasImentioned,wewerereallylookingforwaystoaccelerateintothegreatopportunitiesthatwereaheadofus.DebbieandIhavesharedavisionforalongtimeaboutthefantasticpositionthathealthcarerealestateis.Wethinkit'sthebestsectorinrealestate,asDebbiesaid.It'sagreatopportunity,andsowewentthroughthisprocessandwecouldn'tbemorehappythatweteamedupwithVentas.

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MichaelBilerman--yst

AndthenDebbie,justfromaofaccretion,canyoutalkalittlebitabout,youmentioned$15millionofsynergies,butIgottoassumethatthereisprettymuchsignificanttransactioncostsandchangeofcontrolontheNHPside,andthenjustgoingthroughNHP'sresultsthismorning,thereisobviouslythereducedrentfromHearthstonewhichisalmostabouthalfofthesynergiesfornextyear,andbasedonthemultiplethatyouarepaying,itwouldseemthatthereis--youtalkedaboutitbeingimmediayaccretive,canyougetthroughthemathastohowthatis,especiallywhenyoulayerinallthetransactioncostsyouneedtofinanceandwheretheFFOis.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Okay.WehaveatremendouscosttocapitaladvantageatVentas.Wewereabletousethatinthestock-for-stockrelativevaluedealinordertomakethetransactionbothaccretiveanddeleveraging.Ifyou--wehaveunderwrittenthecontractualcashflowsgoingforward,andbelievethatwearepayingaboutan18times2011FFOpre-synergynumberwhichis--wearequitecomfortablewith.Andthatdoescreateaccretion.

MichaelBilerman--yst

So,whatarethetransactioncostsingettingthere,andIguessistheFFOadjustedfortheHearthstonerentreduction?

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Absoluy.Wehaveunderwrittenthegoing-forwardcashflowsofthewhichaswementioned,NHPhascompletedover$900millionofacquisitionslastyearandthenalmost$250millionsettoclosethisquarndthenanother$250millionsortofinthehopper.So,webelievethatwiththesynergiesandwiththepricethatwepaidwiththecosttocapitaladvantagewehave,wewillbeabletomakethistransactionfinanciallyaccretiveandattractiveforourshareholdersaswellasNHP's.

MichaelBilerman--yst

Transactioncosts?

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Asinanypublic ,thetransactioncostswillbesignificant.Wehaveobviouslymodeledthosecostsintothego-forwardandtheresultsremainthesame.Accretive.

MichaelBilerman--yst

Thankyou.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Thankyou.

Operator

YournextquestioncomesfromJerryDoctrowofStifelNicolaus.

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JerryDoctrow-StifelNicolaus-yst

Thankyou.Isthereabreakupfee?

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Yes.Wehaveanexcellentmergeragreementandabreakupfeeofabout$175million,whichis3%oftheequityvalue.

JerryDoctrow-StifelNicolaus-yst

Okay.AndthenDebbie,justalittlebroader,soasyouthinkoftheworldgoingforwardandsortofhealthcareREITsandyouaregrowingfromalotbiggerbase,butIthinkifIunderstoodwhatyouweresaying,youstillbelieveyoucangetthesamekindofgrowththatVentasisgettingsortofpre-acquisitions.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Yes.

JerryDoctrow-StifelNicolaus-yst

So,maybealittlemorecoloronhowyouseesortofthe--ifyouwill,theone-offdealsversusthe opportunityforotherstrategicthings.Itsoundedlikeyouwerelingaboutstepupyourseniorhousing.Nowthatitwillbedownto26upto30,ifIunderstood.Justalittlemorecolorabouthowyoudrivegrowth.Oneofthequestionsofinvestorsisgoingtobe,howdoesthisbehemothnowsortofgrow.Arethereothersectorslikelifescienceyougetinto,justanymorecolortherewillbehelpful.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Wellagain,Idobelievethatwearecreatingsomethingofajuggernaut,andthat'sapositivething.Wearecombiningreallysomegreatstrengthsparticularlyaroundtheacquisitiontformwherewehavelargecomplexanyleveldealexperiencewiththisbeingourseventhonesince2004.NHPhasgreattenantrelationshipswhichisaproprietarypipeline,ifyouwill,andagreatacquisitionteamthathasspecializedinreallyregionalqualityacquisitionsthathavebeenhigheryieldingandexcellentrisk-adjustedreturns.

Ithinkyouputthosethingstogetherandthisenterprisereallycandrivefuturegrowth.Ithinkthereallyexcitingthingabouthealthcare,Jerry,isthatwhile,yes,youcansayVentashasachievedtremendousscaleandsizewiththe$23billionenterprisevalue,weareinahugefragmentedgrowingsector.Andso,Icontinuetobelievethatwecanreallyrealizeonalotofopportunitieswithinthehealthcarerealestatespaceaswelookforwardtothisnextdecadeofexcellence.

DouglasPasquale-NationwideHealthProperties-CEO

IthinkDebbiethepenetrationratersforhealthcarerealestaterelativetothetotalpoolofavailablerealestateisrelativelysmallcomparedtotheothersectors,sothereisalotofupside,justasyouweresaying.

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DebraCafaro-Ventas,Inc.-ChairmanandCEO

AndJerryagain,withtheratingsmomentum,Ithinkwewilllowerourcostofdebt.Thatwillinturnobviouslyimproveourrefinancingopportunitiesaswellasthecostaswefundnewacquisitionswhichwillbeavirtuouscircle.Andwebelievewecanincreaseseniorhousingoperatingassetsinthenearterm,because--andwecanstillkeeptheportfolioinexcellentbalance.ThosearejustsomeofthewaysIthinkwecanmaintainagoodgrowthratetodeliverconsistentsuperiorreturns,andcontinuetoincreasethedividendthatisaboveaveragelevels.

JerryDoctrow-StifelNicolaus-yst

Andthencomingbacktoaccretion.Should,thewayweshouldthinkaboutitsinceyoupaidIguessasyouthinkaboutthenumbersandIthinkyousaidyoupaidaboutyourcurrentmultiple.Sotheaccretionwillcomefromprimarilyfromthosesynergies,andthatyouweretalkingabouttakingout,isthattherightwaytothinkaboutit?

DebraCafaro-Ventas,Inc.-ChairmanandCEO

Yes.Weexpectadealtobeabout2%accretiveonanannualbasistoourFFO,andmorethanthatonanFADbasis,becausealotoftheassetsweareacquiringhavecashflowswithno panyingcapitalexpenditurerequirements.Andsothat'showweseetheaccretiongoingforward.

JerryDoctrow-StifelNicolaus-yst

.Thankyou.

DebraCafaro-Ventas,Inc.-ChairmanandCEO

You're e.

Operator

YournextquestioncomesfromJeffSpectorofBancofAmerica.

JeffreySpector-BofAMerrillLynch-yst

Goodmorning.Thankyou.Afewquestions,please.Justquickly,onthe$250millionofNHP'sacquisitionssettocloseandthe

$250millioninthehopper,anyrisktothoseclosing,orwhatyouareworkingon?

DouglasPasquale-NationwideHealthProperties-CEO

Wereallyfeelthatthereisahighprobabilitythatthosewillgetclosed.Weareveryconfidentaboutthat.

JeffreySpector-BofAMerrillLynch-yst

Okay.AndthenDebbie,doesthischangeanythoughtsonyour--howyouarerollingupinintegratingLillibridge?

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DebraCafaro-Ventas,Inc.-ChairmanandCEO

Itdoesn't.Lillibridgeisawholly-ownedintegratedownermanageranddeveloperofon-campusmedicalofficebuildingswithhighlyratedhealthcaresystems.MostofourninemillionsquarefeetofmedicalofficeisintheMidwest.PMBreallyisa-standingdevelopment withwhomNHPhasveryattractiveandenviablecontractualrelationships,toacquireover$1billionofnewlyconstructedMOBsoncampusonthewestcoastforbelowafairmarketvalue.SothoseIthinkwillcontinueoperatingintheircurrentsituation.Andthegreatthingistheyareverycomplimentaryfromageographicalstandpoint.

DouglasPasquale-NationwideHeal