Ventas announces new lease with Kindred

Ventas (VTR) and Kindred Healthcare (KND) have entered into a new lease for ten long-term acute care hospitals owned by Ventas, for initial rent of $28M annually commencing May 1, 2013. The new LTAC Lease covers all ten LTACs whose lease term is currently scheduled to expire on April 30, 2013. The new LTAC Lease has an initial term of ten years and contains annual CPI-based escalations ranging from zero to 4 percent. Rent for these ten LTACs for the period from May 1, 2012 through April 30, 2013 is $22M. Because the new LTAC lease with Kindred takes effect in 2013, it will have no impact on Ventas’s 2012 normalized FFO. On a full year basis, the new LTAC Lease is expected to be approximately 2c per share accretive.