11:41 AM EDT, 09/16/2024 (MT Newswires) -- Ventas ( VTR ) said Monday it entered into agreements with Kindred Healthcare and its parent company ScionHealth to improve the facility environment for patient care.

Under the agreements, the initial annualized contractual base rent for long-term acute care hospitals will be $80 million starting May 1, 2025, with annual escalation by 2.8% through the maturity date of April 30, 2030.

The agreements also cover strengthening Kindred's master lease covering 23 long-term acute care hospitals, providing upside to Ventas ( VTR ) and helping Kindred improve its credit profile.

Ventas ( VTR ) also said it will be eligible for additional revenue-sharing rent conditional on revenue of assets exceeding certain thresholds, and receive ScionHealth's warrants for 9.9% common equity.

Meanwhile, the company also acquired five performing long-term acute care assets for $189 million and these assets will continue to be operated by Kindred under a 10-year lease.

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