As part of Kindred Healthcare's plan to exit the skilled nursing facility business, the Louisville, Ky.-based company has inked agreements to purchase the 36 SNFs it currently leases from Ventas, a Chicago-based real estate investment trust.
Under the agreements, Kindred has the option to acquire the real estate for all 36 properties for $700 million. Through Oct. 31, 2018, Kindred has the right to find purchasers for the Ventas properties, and Kindred has the flexibility to pay Ventas as it sells these properties. Under the agreements, Kindred may also choose to renew the current lease on any unpurchased SNFs through April 30, 2025.
"We are pleased with these mutually beneficial agreements with Ventas that allow us to fully exit the skilled nursing facility business in an expedited manner," said Kindred President and CEO Benjamin A. Breier. "While the timing of our exit from the skilled nursing facility business depends on a number of factors, we are targeting completion of the exit prior to the end of 2017."
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