|($ in millions)||Cash Rent||Contractual Rent Increase|
|Renewed (26 SNFs and 22 LTACs)||$78||$15|
|Total Rent Renewed as a % of Total 2013 Annual Rent|
Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) announced today that it has entered into favorable agreements with its tenant Kindred Healthcare, Inc. (NYSE: KND) to extend the leases on 48 of the 108 licensed healthcare assets whose lease term was scheduled to expire on April 30, 2015 (the “2015 Renewal Assets”). Annual rent on these 48 assets will increase by $15 million effective October 1, 2014. Additionally, Kindred has agreed to pay Ventas $20 million in connection with the execution of these agreements. “These agreements create certainty for two-thirds of the existing rent for the 2015 renewals and provide an immediate path for Ventas to re-lease the remaining assets,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “Ventas and Kindred worked expeditiously and cooperatively to craft mutually beneficial arrangements that will enhance value for both companies’ shareholders and reinforce the positive long-term relationship between the companies,” she added. The 2015 Renewal Assets consist of 86 skilled nursing facilities (“SNFs”) and 22 long-term acute care hospitals (“LTACs”).
Ventas stated that it is immediately launching its re-leasing program for the remaining 60 SNFs in the 2015 Renewal Assets (the “Re-leasing Assets”). As part of their agreements, Ventas and Kindred agreed to accelerate the expiration of the lease term for the Re-leasing Assets to September 30, 2014. Kindred has also agreed that Ventas will be entitled to transition the Re-leasing Assets to new operators prior to September 30, 2014, at no financial detriment to Ventas.