Ventas, Inc. announced it has reached mutually beneficial agreements with Brookdale Senior Living regarding all assets previously under their Master Lease, which was set to expire on December 31, 2025. These agreements provide a clear outcome for Ventas's strategy to drive profitable growth in its senior housing business. The resolution addresses the future of 120 communities.
Under the new terms, 44 select large-scale senior housing communities, representing a majority of the units, will be converted to Ventas’s Senior Housing Operating Portfolio (SHOP) structure starting September 1, 2025. Brookdale has agreed to cooperate in this transition, allowing Ventas to apply its Ventas OI platform to these assets for expected occupancy and NOI upside.
Additionally, 65 senior housing communities will remain in the Master Lease with Brookdale for an extended 10-year term, commencing January 1, 2026. These communities will see an initial cash rent of $64 million, representing a 38% increase over the current cash rent of $48 million for these specific assets, with annual escalations of 3%. The remaining 11 communities are intended for sale in 2025, with Ventas retaining the proceeds.
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