10:18 AM EST, 12/19/2024 (MT Newswires) -- Brookdale Senior Living ( BKD ) and Ventas ( VTR ) said Thursday they have amended their master lease agreements.

Under the amended agreement, Brookdale's lease on 65 communities has been extended through 2035 at an initial annual rent of $64 million starting in 2026, with a 3% annual escalator, Brookdale said.

Ventas ( VTR ) will transition 44 communities to its senior housing operating portfolio beginning September 2025, aiming to enhance occupancy and net operating income through active asset management, Ventas ( VTR ) said.

Ventas ( VTR ) plans to invest $35 million in capital improvements for the leased properties, starting in 2025, the companies said. Eleven remaining properties will be sold in 2025, with Ventas ( VTR ) retaining sale proceeds, Ventas ( VTR ) said.

Brookdale said it expects the lease amendments to boost its 2025 cash flows by over $15 million.

Brookdale shares rose more than 2% in early trading while VTR shares were edging 0.8% higher.

Price: 5.07, Change: +0.14, Percent Change: +2.74