Kindred, Ventas offer cases for fair market rental value
Kindred Healthcare Inc. and Ventas Inc. are arguing yet again, and this time it's a battle over appraisals.Both companies are making cases for the fair market rental value under four master leases. While Kindred is arguing that the current annual rate of $206 million is overstated by approximately $95 million, Ventas disagrees. It believes a rent increase of $111 million is appropriate.
The companies have agreed on the selection of two appraisers who will make a fair market determination. After they make their determination, Ventas must decide within 30 days whether to opt in to the new rent and escalation schedule or retain its current schedule with a 3.5% annual rent escalation. The two have been involved in a rent dispute since May when Ventas disclosed it would raise Kindred's rates under a one-time option derived from Ventas helping bail Kindred out of bankruptcy proceedings.