EFTA01388620.pdf

IR October 2016 REITs US REIT 3016 Earnings Preview VTR 9015 2010 3010 2010 &rho Acta MIS MW Do. Cane Pro 30 Guide Poet 30 Guide Dee Cane Normalized FRZI/sh $1 09 SI 04 SI 01 SI 00 5405 44 13 S4 10 Sil 12 Normalized FADish 50 97 50 96 SO 90 5369 • S3 73 5370 Operseclisales MOW Aetna Meal Dee Pre 30 Odds Peet 30 Oulde OB. Teed SS NOIC00wth lush. WO 4 3% 3 5% 2 0% - 3 0% SHOP SS NOI growth (cash. WV) 3 2% 2 1% I 5% • 3 0% SS Avg occupancy ch NM -03% -0 7% 55 Avg monthly REVPOR growth ly/yl 3 5% 39% INN 55 NOI growth (cash. yN) 57% 62% 35%-40% Total Coverage 1.6x 1 7x 1.100 SS NOI growth Rash. Wry) 31% 08% 10% • 20% End occupancy ch tyay) .04% -07% Avg rent pee occupied SI lyrUI 2 6% 09% Note consensus data is based on Thomson corn led data as of 10/14/16 Historcal data has not been r stated Updated views on acute ca e hospitals including sector outlook commentary on the recent debt investment in the Ardent/LHP merger, and plans for further expanding hospital exposure • Expect an update on the six development projects VTR had at the end of 2Q and the two in-process developments acquired from Wexford • Updated outlook for future growth opportunities resulting from the exclusive development agreement with Wexford and the 9 development sites VTR acquired • Update on disposition plans. Our model assumes $300MM in 3Q16 and $75MM in 4Q16 • Update on seniors housing supply in VTR's markets, most notably Atlanta, Denver, San Francisco, arid Sacramento • Updated plans to fully fund the Wexford deal and the new Ardent debt investment after a $450MM senior note issuance in September • Operator update including comments on recent Kindred performance • We are updating our model for the recently announced debt investment to help fund the Ardent operating company merger with LHP and recent financing activity. Our 3Q16 normalized and NAREIT FFO/sh estimates are unchanged. Our 2016 norm and NAREIT FFO/sh estimates are both unchanged at $4.10 and $4.07, respectively. Our 2017 norm. FFO/sh moves to $4.42 from $4.34 and our NAREIT FFO/sh estimate moves to $4.42 from $4.33, which reflect the new $700MM debt investment in 1Q17 and additional debt financing activity in 2H17. Please see Figure 98 for a summary of our full year estimate revisions. Sate* (Minch &roc cryany Ma MOMlOn Page 52 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092272 CONFIDENTIAL SDNY_GM_00238456 EFTA01388620