Ventas, a healthcare REIT, has announced that it has reached mutually beneficial agreements with Brookdale Senior Living. As part of the agreement, 44 large-scale senior housing communities will be converted to Ventas’ Senior Housing Operating Portfolio (SHOP) platform. In addition, rent for 65 communities will increase by 38% and the lease term extended by 10 years.
As a result of this agreement, Ventas plans to sell a total of 11 communities in 2025. Originally set to expire on Dec.31st ,2025,the master lease between Ventas and Brookdale has been partially extended.
According to J.Justin Hutchens,Ventas EVP,”These agreements provide more certainty and successful execution while benefiting residents,families,and allowing us at Ventas,to take advantage of the unprecedented opportunities in senior housing.”
Brookdale also announced separately that this amended triple-net master lease arrangement is expected to significantly increase its cash flows both near- and long-term.The amendment is projected improve cash flows for the operator’s senior living communities by over $15 million in year-end projections for fiscal year ending December31st ,2025.
This announcement was originally published on Connect CRE.
