Real estate investment trust Ventas will sell 36 skilled nursing facilities, owned by Ventas and operated by Kindred Healthcare, to Kindred for $700 million, pending regulatory approvals.
Kindred had previously announced a plan to exit its skilled nursing facilities business, or renew the current lease on its unpurchased facilities through 2025 at the current rent levels.
For the facilities that Kindred operates but doesn't buy from Ventas by April 30, 2018, the leases will be renewed automatically at their current rates.
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There is not yet an indication of when and if the deal will close, but if it does Ventas stands to net about $600 million from the transaction.
So far this year, Kindred's stock has dipped about 45 percent. Shares of Ventas are up 4.1 percent.
In October, Kindred Healthcare completed the sale of 12 long-term acute care hospitals for $27.5 million to a group of entities operating under the name Curahealth, which are affiliates of a private investment fund sponsored by Nautic Partners. Kindred expected that the hospitals would generate combined revenues of about $215 million and break even in terms of profit. Combined, the hospitals have $14 million of annual rent expense.