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Ventas slides as Kindred to exit SNF business

Published 11/08/2016, 09:55 AM
Ventas slides as Kindred to exit SNF business
VTR
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  • Kindred Healthcare is down 33% after missing on earnings, cutting guidance, and announcing its intention to exit the skilled nursing facility business.
  • Ventas (VTR -4.1%) owns 36 SNFs leased by Kindred, and they currently generate annual cash rent of $49M. The two companies have been and are in talks over the terms with which Ventas will consent to the sale of those properties.
  • Ventas Chairman and CEO Debra Cafaro: "This represents an opportunity to continue our de-emphasis of the skilled nursing business that began with our successful spin off of most of our SNF business in 2015." Roughly 4% of Ventas' NOI is currently generated from SNFs.

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