Kindred renews leases with Ventas as profits tumble
Louisville-based Ventas Inc. and Kindred Healthcare Inc. said April 30 they agreed to renew the terms of a lease agreement on 64 facilities owned by Ventas, according to announcements from both companies.The agreement affects a lease agreement that was scheduled to expire on April 30, 2008. Under the terms of the agreement, Kindred also said it will purchase for resale 22 under-performing facilities it currently leases from Ventas.
In related news, Kindred, one of the largest nursing home chains in the United States, disclosed that revenues for the first quarter of 2007 rose, but profits in the period sank. Revenues increased by 11% to $1.1 billion compared to $1 billion in the year-earlier period. Profits plunged by 67% to $8 million from $24 million a year earlier. The company said it sustained a $7.8 million net loss related to a divestiture transaction with Health Care Property Investors Inc.