Senior housing and healthcare REIT Ventas announced that it entered an agreement with Kindred Healthcare and its parent, ScionHealth, to buy five long-term acute care (LTAC) facilities and to extend leases on 23 others into 2025.
Early signs of the deal were made public in Ventas's August 2 earnings call. Kindred was already operating 23 LTACs owned by Ventas, as advanced discussions between the two sides continue.
"While a deal is not done and terms could change, we and Kindred are close to a transaction that would result in a 25% to 30% full-year rent reduction on these 23 LTACs starting May 1, 2025," Ventas chairman and CEO Debra Cafaro, said in the call.
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