Kindred Announces Agreements With Ventas Facilitating Strategic Exit From Skilled Nursing Facility Business

Kindred Healthcare, Inc. ("Kindred" or the "Company") (NYSE:KND) today announced that it has entered into agreements with Ventas, Inc. ("Ventas") (NYSE:VTR) to facilitate the Company's previously announced plan to exit the skilled nursing facility business.

Kindred has initiated a process to sell all of its owned and leased nursing centers, which includes all 36 skilled nursing facilities (the "Ventas Properties") currently leased from Ventas. The agreements with Ventas provide Kindred with the option to acquire the real estate for all of the Ventas Properties for an aggregate consideration of $700 million. The agreements with Ventas also provide that, through October 31, 2018, Kindred has the right to find one or more purchasers of the Ventas Properties. As Kindred locates new owners/operators for the Ventas Properties, in exchange for a payment by Kindred to Ventas of the allocable portion of the $700 million purchase price, Ventas has agreed to convey the applicable Ventas Property to the new owner/operator. At its option, Kindred may also elect to renew the leases for any of the Ventas Properties through April 30, 2025, and transfer them into the single remaining master lease agreement ("Master Lease No. 5").

Benjamin A. Breier, President and Chief Executive Officer of Kindred, commented, "We are pleased with these mutually beneficial agreements with Ventas that allow us to fully exit the skilled nursing facility business in an expedited manner. We expect our exit from the skilled nursing facility business to be accretive to earnings and to substantially improve our cash flow generation and leverage profile going forward. As announced previously, we expect our associated cost realignment initiative to eliminate approximately $70 million to $100 million of costs, which includes approximately $60 million of direct costs associated with our nursing center division with the balance primarily derived from reductions of indirect costs in our shared service support centers. The agreements with Ventas represent an important step forward in the success of this initiative."

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