The total rent paid by Kindred Healthcare, Louisville, Ky., to Ventas under four leases should increase $33.1 million annually to $239 million, appraisers ruled in a dispute between the two companies. Ventas, a real estate investment trust also based in Louisville, had proposed raising the total annual base rent under the leases $111 million. The four leases cover 39 long-term acute-care hospitals and 186 nursing homes. The appraisers were jointly selected by the two companies in an effort to resolve the dispute. Not only did the appraisers recommend a lower increase in total base rent than Ventas sought, but also they said the 3.5% annual rent escalator in place under the leases was too high. Rents should rise 2.7% annually under three of the leases and between 2.25% and 4% under the fourth lease, the appraisers ruled.Under its agreements with Kindred, Ventas has 30 days to accept the ruling or retain its current total base rent and escalator. Ventas said it was evaluating the appraisers' work and deciding what to do. Kindred, meanwhile, said it was beginning an analysis to determine if it should continue to lease all the properties. -- by Jessica Zigmond
Ruling in Kindred-Ventas lease dispute
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