Monday morning, healthcare real estate investment trust Ventas Inc. (VTR) revealed the sale of 22 of its underperforming assets to its tenant and healthcare services company Kindred Healthcare Inc. (KND) for an aggregate purchase price of $171.5 million, and added that Kindred leased the properties from Ventas prior to the transactions. Further, Ventas said that it expects to record a gain of approximately $129.0 million in the second quarter on the sale of the assets and disclosed that it received a $3.5 million lease termination fee from Kindred on the sold properties.Commenting on the sale, Debra Cafaro, Chairman, President and CEO of Ventas said, We are delighted to cooperate with Kindred on these transactions. These asset sales improve our portfolio and strengthen our financial profile. Ventas's excellent balance sheet and diversified seniors housing and healthcare portfolio should position us well to generate additional value for our shareholders.Louisville, Kentucky-based Ventas said that the gain would be excluded from Funds from Operations or FFO in accordance with the NARIET definition of FFO and added that the current annual cash rent for the sold properties is $10.6 million, while the capitalization rate on the transactions is approximately 6%. The assets are located in 15 states and include 21 skilled nursing facilities with approximately 2,600 beds and one long-term acute care hospital, located in urban Detroit and licensed for 220 beds. Last week, Kindred said that it acquired for resale 22 underperforming facilities previously leased from Ventas for about $171.5 million and added that it will account for operations of the facilities as discontinued operations upon closing. Kindred also stated that it paid a lease termination fee of $3.5 million. Kindred expects to generate proceeds between $80 million and $90 million from the sale of the facilities and related operations, and a total net cash outlay of about $46 million to $52 million. In May, Ventas reported an increase in its net income for the first quarter from the prior year on the back of acquisitions and improved internal growth rate from existing leases. Funds from Operations or FFO increased 26% to $72.1 million from $57.5 million a year-ago. Quarterly normalized FFO per share grew 24% to $0.68 from $0.55 in the comparable quarter of last year. GAAP net income for the quarter increased to $45.1 million or $0.42 per share from $29.1 million or $0.28 per share in the same quarter of the previous year. Total revenues for the quarter reached $121.84 million, up from $97.81 million in the prior year quarter.In April, Kindred Healthcare reported a decline in its net income for the first quarter to $7.83 million or $0.20 per share from $23.96 million or $0.58 per share in the previous-year quarter, despite an 11% increase in revenues. Net income for the quarter includes a loss related to divestiture as well as a loss from discontinued operations, in addition to a charge related to the proposed spin-off of the company's institutional pharmacy business. Income from continuing operations for the quarter declined to $15.70 million or $0.39 per share from $21.94 million or $0.53 per share in the prior-year quarter. Revenues for the quarter increased 11% to $1.14 billion from $1.03 billion in the year-ago quarter.Looking ahead to the second quarter, Kindred had said that it expects to record a loss in the range of approximately $60-$70 million related to the divestiture of the twenty-two facilities that it will acquire from Ventas. Ventas had said that it would use the proceeds from the sale to pay down a portion for the preferred equity tranche of the interim facility it used to fund the acquisition of the Sunrise Senior Living REIT assets, and for other corporate purposes. Ventas said in April that it completed its previously announced acquisition of the assets of Toronto-based Sunrise Senior Living REIT (SZR-UN.TO) for C$1.2 billion in cash and the assumption of all outstanding debt, valuing the total transaction at approximately C$2.26 billion, or US$1.96 billion, and added that all of the issued and outstanding units of Sunrise REIT would be redeemed at a redemption price of C$16.50 per unit. Sunrise Senior Living REIT is the owner of 77 senior-living facilities.VTR closed Friday's regular trading session at $36.25, up $0.19 on a volume of 1.22 million shares. In the 52-week period, the stock has been trading in a range of $33.51-$47.97. KND closed Friday's regular trading session at $30.72, down $0.53 on a volume of 308,600 shares. In the 52-week period, the stock has been trading in a range of $24.46-$36.67.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.