Ventas reaches agreements with Kindred Healthcare, ScionHealth

Ventas announced that it has entered into agreements with Kindred Healthcare and its parent companies ScionHealth including regarding the 23 long term acute care hospitals whose lease term is scheduled to mature on April 30, 2025 under the existing Master Lease between Ventas and Kindred. The transactions under the 2024 Kindred Agreements are intended to enhance the facility environment for patient care, strengthen the Kindred Master Lease, provide upside to Ventas and enable Kindred to improve its credit profile. Key terms of the 2024 Kindred Agreements are as follows: The initial annualized cash contractual base rent for the LTACs will be $80M starting May 1, 2025, consistent with the company’s previously announced expectations, and rent will escalate annually by 2.75% through the extended lease maturity date of April 30, 2030. Ventas also has the right to receive additional revenue-sharing rent annually if revenue at these assets exceeds certain thresholds, and ScionHealth has granted Ventas warrants for 9.9% of its common equity exercisable at the pre-transaction value of the common equity. Kindred has agreed to pay full contractual cash rent through April 2025 on the LTACs.