Kindred, Ventas battle over $95M lease hike

In what has become a public battle, Kindred Healthcare is in a heated dispute with the company that leases it 225 healthcare facilities. Based on feedback from five different property appraisers, Kindred execs came to the conclusion that it is paying roughly $95 million more than it ought to pay to lease the facilities from Ventas Inc.  Not only that, the appraisers said the 3.5 percent rental escalators stipulated in the current lease were higher than the market average. The CEO of Ventas, meanwhile, says that the lease prices were fair and that the properties have increased in value since 2001.

The dispute came about when Ventas exercised its option to re-assess Kindred's lease and adjust it based on market value. Ventas wanted to raise the rate from $111 million to $317 million. When the two sides couldn't come to an agreement, two New York-based appraisers were called in. When they finish their assessment, Ventas will decide how it wants to proceed with the matter.

- read this article from Business First of Louisville
- check out Kindred's press release

Post a comment