-
Four New Research, Academic and Innovation Projects With Current
and New University Relationships Including University of Pittsburgh
and Drexel University -
Establishes and Expands Knowledge Communities That Enable
Ground-Breaking Research, Academic Medicine and Innovation -
Developments Now Approximate $0.9 Billion of Previously Announced
$1.5 Billion Pipeline -
Expected 7+ Percent Unlevered Cash Yield at Stabilization and
Openings in 2021-22
CHICAGO–(BUSINESS WIRE)–$VTR–Ventas, Inc. (NYSE: VTR) announced today four new developments totaling
approximately $0.8 billion in its university-based Research & Innovation
(“R&I”) business, all in partnership with Wexford Science & Technology,
LLC (“Wexford”), the leading developer of university-focused real estate
solutions. These investments are part of the near-term $1.5 billion R&I
pipeline (the “Pipeline”) of expected new projects previously announced
by Ventas.
These outstanding developments with leading institutions include: 1)
creation of a research, academic medicine and innovation hub anchored by
a new relationship with University of Pittsburgh to house
ground-breaking immunotherapy research in collaboration with the
University of Pittsburgh Medical Center (“UPMC”) and co-located with
UPMC’s Shadyside Hospital; 2) a new development that expands the
flourishing Philadelphia uCity Square Knowledge Community associated
with the University of Pennsylvania; 3) also in uCity Square, a state of
the art College of Nursing and Health Professionals for Drexel
University; and 4) expansion of the vibrant Cortex Innovation Community
associated with Washington University in St. Louis. The projects are 40
percent pre-leased and are expected to generate over a 7 percent cash
yield, and over an 8 percent GAAP yield, upon stabilization.
Ventas has now announced projects totaling $0.9 billion of its Pipeline.
With the previously announced development at Arizona State University,
these projects:
- add 1.5 million square feet to Ventas’s R&I portfolio;
- are 40 percent pre-leased; and
-
are expected to deliver an unlevered cash yield at stabilization of
over 7 percent and an over 8 percent GAAP yield.
“We are excited to announce these outstanding new projects with existing
and new university relationships, which are strong proof points of our
exciting growth opportunity in the Research & Innovation segment,” said
John Cobb, Ventas Executive Vice President and Chief Investment Officer.
“With $0.9 billion of our $1.5 billion development pipeline announced,
we look forward to bringing these projects to successful completion
while we also work to make the balance of our near term pipeline a
reality.”
“Ventas and Wexford are proud to partner with leading research
universities, health systems, academic medical centers, life science
companies and entrepreneurs in the creation of Knowledge Communities and
innovation hubs. We are committed to collaborating with and supporting
these world-class research institutions, pioneers in biomedical
research, academic medicine leaders and innovators as they develop
life-changing therapies, conduct groundbreaking scientific research, and
train clinicians to improve the lives of millions of patients as the
population rapidly ages,” noted Debra A. Cafaro, Ventas Chairman and
Chief Executive Officer.
Including the new developments announced today, Ventas has relationships
with over 15 leading research universities in its R&I portfolio, who
collectively rank in the top 95 percent of all NIH funding and conduct
over 10 percent of all university research and development in the
nation. Pro forma for announced developments, Ventas’s R&I portfolio
will total nearly eight million square feet and is expected to generate
approximately $230 million in annual net operating income upon
stabilization of announced new developments.
New development commitments announced today include:
University of Pittsburgh (“Pitt”) – Immune
Transplant & Therapy Center: The Pitt Immune
Transplant & Therapy Center is an approximately $280 million
trophy-quality historic redevelopment pre-leased to University of
Pittsburgh (Moody’s Aa1) under a long-term lease. It is located adjacent
to the UPMC Shadyside Hospital campus in Pittsburgh. University of
Pittsburgh ranks fourth in the U.S. in funding from the National
Institutes of Health (“NIH”), and is a leader in medical research and
healthcare. This 350,000 square foot development will house the Immune
Transplant and Therapy Center (“ITTC”), a collaboration between
University of Pittsburgh and UPMC to focus on personalized medicine and
the biology of cancer and aging. UPMC has committed to $200 million in
research funding at ITTC.
The development is expected open in two phases, with the first and
second phase expected to be completed in 2021. The full project is 70
percent pre-leased.
Philadelphia – One uCity Square and the College
of Nursing and Health Professions, Drexel University:
These two projects will total $400 million and will add 650,000 square
feet to the thriving Philadelphia University City (“uCity”) submarket, a
leading research, academic, medical, life science and innovation market
where Ventas currently owns four fully leased buildings. Pre-leasing is
currently at 40 percent.
The College of Nursing and Health Professions, Drexel University,
totaling 260,000 square feet, is a state-of-the-art build-to-suit
development that has been approved to be pre-leased to Drexel
University’s College of Nursing and Health Professionals (“CNHP”). It is
designed to include academic and research space. Drexel is moving CNHP
to uCity to enable it to consolidate its academic and research programs,
improve collaboration between CNHP and Drexel’s other colleges and
schools, and provide its CNHP students, faculty and staff with immediate
access to Drexel’s full suite of on campus resources. Ventas expects the
College of Nursing and Health Professions, Drexel University, to open in
2022.
One uCity Square, totaling 390,000 square feet, is the next phase of the
Knowledge Community at uCity Square. It follows Ventas’s success, in
partnership with The Science Center, a Philadelphia-based nucleus for
innovation, entrepreneurship and technology commercialization, in the
recently completed 3675 Market Street. Ventas’s four buildings in the
thriving uCity sub-market are nearly 100 percent leased, and the new
project is designed to capture momentum and fill robust leasing demand
in the exciting uCity submarket. It is expected to open in early 2022.
Washington University in St. Louis (“WashU”) –
4210 Duncan: 4210 Duncan is a $115 million, 320,000
square foot development located in the flourishing Cortex Innovation
Community, which is affiliated with WashU (“Cortex”). This new
development adds to Ventas’s successful Cortex R&I portfolio, which
contains four owned buildings totaling over 700,000 square feet, which
are nearly 100 percent occupied. 4210 Duncan will build on this momentum
in the attractive Cortex market by delivering needed additional capacity
to this high-demand market. Cortex is home to WashU Medical and Research
Facilities and Barnes Jewish, as well as a number of high profile, high
credit tenants including Boeing, DuPont, Microsoft and Accenture, which
have been drawn to the Knowledge Community’s highly educated work force.
CBRE recently recognized St. Louis as a top U.S. emerging life science
market. Ventas expects 4210 Duncan to be completed by the end of 2021.
There can be no assurance as to whether, when or on what terms the
investments in the R&I Pipeline will be completed.
About Ventas
Ventas, Inc., an S&P 500 company, is a leading real estate investment
trust. Its diverse portfolio of approximately 1,200 assets in the United
States, Canada and the United Kingdom consists of seniors housing
communities, medical office buildings, university-based research and
innovation centers, inpatient rehabilitation and long-term acute care
facilities, and health systems. Through its Lillibridge
subsidiary, Ventas provides management, leasing, marketing, facility
development and advisory services to highly rated hospitals and health
systems throughout the United States. References to “Ventas” or the
“Company” mean Ventas, Inc. and its consolidated subsidiaries unless
otherwise expressly noted. More information about Ventas and Lillibridge
can be found at www.ventasreit.com and www.lillibridge.com.
About Wexford
Wexford Science & Technology, LLC is a real estate company exclusively
focused on partnering with universities, academic medical centers and
research institutions to develop vibrant, amenity-rich, mixed-use
Knowledge Communities built on a foundation of research, discovery,
entrepreneurial activity, corporate engagement, and community inclusion.
Wexford targets strategic opportunities with top-tier research
universities that are directly on or contiguous to dense, urban
campuses. Currently, thirteen Knowledge Communities are developed or
under development across the United States including: Bio Research and
Development Growth (BRDG) Park (Danforth Plant Science Center) in St.
Louis, MO; The Chesterfield (Duke University) in Durham, NC; Converge
Miami (University of Miami) in Miami, FL; Cortex Innovation Community
(Washington University in St. Louis) in St. Louis, MO; Downtown Crossing
(Yale University) in New Haven, CT; Hershey Center for Applied Research
(Penn State School of Medicine) in Hershey, PA; Innovation Research Park
@ ODU (Old Dominion University) in Norfolk, VA; Phoenix Biomedical
Campus (PBC) Innovation Center (Arizona State University) in Phoenix,
AZ; South Street Landing and the Innovation and Design District (Brown
University, University of Rhode Island) in Providence, RI; uCity Square
(Drexel University, University of Pennsylvania) in Philadelphia, PA;
University of Maryland BioPark (University of Maryland, Baltimore) in
Baltimore, MD; University Technology Park at IIT (Illinois Institute of
Technology) in Chicago, IL; and Wake Forest Innovation Quarter (Wake
Forest University, Wake Forest Baptist Medical Center) in Winston-Salem,
NC. More information about Wexford can be found at www.wexfordscitech.com.
The Company routinely announces material information to investors and
the marketplace using press releases, Securities and Exchange
Commission (“SEC”) filings, public conference calls, webcasts and the
Company’s website at www.ventasreit.com/investor-relations.
The information that the Company posts to its website may be deemed to
be material. Accordingly, the Company encourages investors and others
interested in the Company to routinely monitor and review the
information that the Company posts on its website, in addition to
following the Company’s press releases, SEC filings and public
conference calls and webcasts. Supplemental information regarding the
Company can be found on the Company’s website under the “Investor
Relations” section or at www.ventasreit.com/investor-relations/annual-reports—supplemental-information.
A comprehensive listing of the Company’s properties is available at www.ventasreit.com/our-portfolio/properties-by-stateprovince.
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 the Company’s or its tenants’, operators’,
borrowers’ or managers’ expected future financial condition, results of
operations, cash flows, funds from operations, dividends and dividend
plans, financing opportunities and plans, capital markets transactions,
business strategy, budgets, projected costs, operating metrics, capital
expenditures, competitive positions, acquisitions, investment
opportunities, dispositions, merger or acquisition integration, 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. These forward-looking statements
are inherently uncertain, and actual results may differ from the
Company’s expectations. The Company does not undertake a
duty to update these 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
from expectations depending on a variety of factors discussed in the
Company’s filings with the SEC. These factors include
without limitation: (a) the ability and willingness of the Company’s
tenants, operators, borrowers, managers and other third parties to
satisfy their obligations under their respective contractual
arrangements with the Company, including, in some cases, their
obligations to indemnify, defend and hold harmless the Company from and
against various claims, litigation and liabilities; (b) the ability of
the Company’s tenants, operators, borrowers and managers to maintain the
financial strength and liquidity necessary to satisfy their respective
obligations and liabilities to third parties, including without
limitation obligations under their existing credit facilities and other
indebtedness; (c) the Company’s success in implementing its business
strategy and the Company’s ability to identify, underwrite, finance,
consummate and integrate diversifying acquisitions and investments; (d)
macroeconomic conditions such as a disruption of or lack of access to
the capital markets, changes in the debt rating on U.S. government
securities, default or delay in payment by the United States of its
obligations, and changes in the federal or state budgets resulting in
the reduction or nonpayment of Medicare or Medicaid reimbursement rates;
(e) the nature and extent of future competition, including new
construction in the markets in which the Company’s seniors housing
communities and office buildings are located; (f) the extent and effect
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 borrowing costs as a result of
changes in interest rates and other factors, including the potential
phasing out of the London Inter-bank Offered Rate after 2021; (h) the
ability of the Company’s tenants, operators and managers, as applicable,
to comply with laws, rules and regulations in the operation of the
Company’s properties, to deliver high-quality services, to attract and
retain qualified personnel and to attract residents and patients; (i)
changes in general economic conditions or economic conditions in the
markets in which the Company may, from time to time, compete, and the
effect of those changes on the Company’s revenues, earnings and funding
sources; (j) the Company’s ability to pay down, refinance, restructure
or extend its indebtedness as it becomes due; (k) the Company’s ability
and willingness to maintain its qualification as a REIT in light of
economic, market, legal, tax and other considerations; (l) final
determination of the Company’s taxable net income for the year
ended December 31, 2018 and for the year ending December 31, 2019; (m)
the ability and willingness of the Company’s tenants to renew their
leases with the Company upon expiration of the leases, the Company’s
ability to reposition its properties on the same or better terms in the
event of nonrenewal or in the event the Company exercises its right to
replace an existing tenant, and obligations, including indemnification
obligations, the Company may incur in connection with the replacement of
an existing tenant; (n) risks associated with the Company’s senior
living operating portfolio, such as factors that can cause volatility in
the Company’s operating income and earnings generated by those
properties, including without limitation national and regional economic
conditions, costs of food, materials, energy, labor and services,
employee benefit costs, insurance costs and professional and general
liability claims, and the timely delivery of accurate property-level
financial results for those properties; (o) changes in exchange rates
for any foreign currency in which the Company may, from time to time,
conduct business; (p) year-over-year changes in the Consumer Price Index
or the UK Retail Price Index and the effect of those changes on the rent
escalators contained in the Company’s leases and the Company’s earnings;
(q) the Company’s ability and the ability of its tenants, operators,
borrowers and managers to obtain and maintain adequate property,
liability and other insurance from reputable, financially stable
providers; (r) the impact of damage to the Company’s properties from
catastrophic weather and other natural events and the physical effects
of climate change; (s) the impact of increased operating costs and
uninsured professional liability claims on the Company’s liquidity,
financial condition and results of operations or that of the Company’s
tenants, operators, borrowers and managers, and the ability of the
Company and the Company’s tenants, operators, borrowers and managers to
accurately estimate the magnitude of those claims; (t) risks associated
with the Company’s office building portfolio and operations, including
the Company’s ability to successfully design, develop and manage office
buildings and to retain key personnel; (u) the ability of the hospitals
on or near whose campuses the Company’s medical office buildings are
located and their affiliated health systems to remain competitive and
financially viable and to attract physicians and physician groups; (v)
risks associated with the Company’s investments in joint ventures and
unconsolidated entities, including its lack of sole decision-making
authority and its reliance on its joint venture partners’ financial
condition; (w) the Company’s ability to obtain the financial results
expected from its development and redevelopment projects; (x) the impact
of market or issuer events on the liquidity or value of the Company’s
investments in marketable securities; (y) consolidation activity in the
seniors housing and healthcare industries resulting in a change of
control of, or a competitor’s investment in, one or more of the
Company’s tenants, operators, borrowers or managers or significant
changes in the senior management of the Company’s tenants, operators,
borrowers or managers; (z) the impact of litigation or any financial,
accounting, legal or regulatory issues that may affect the Company or
its tenants, operators, borrowers or managers; and (aa) changes in
accounting principles, or their application or interpretation, and the
Company’s ability to make estimates and the assumptions underlying the
estimates, which could have an effect on the Company’s earnings.
Contacts
Juan Sanabria
(877) 4-VENTAS
