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Ventas Reaches Mutually Beneficial Agreements with Brookdale Senior Living
Healthcare REIT Ventas announced Brookdale Senior Living has partially extended the current master lease between the two companies, with mutually beneficial agreements reached.
As part of the agreement, Ventas plans to convert 44 select large-scale senior housing communities to its Senior Housing Operating Portfolio (SHOP) platform, while providing a 38% cash rent increase on 65 communities, with a 10-year lease extension.
Additionally, a total of 11 communities are intended to be sold in 2025. The master lease with Brookdale was originally set to expire on Dec. 31, 2025. “These mutually beneficial agreements allow for more certainty and successful execution, benefit residents and their families and enable Ventas to expand our participation in the unprecedented opportunity in senior housing,” said J. Justin Hutchens, Ventas EVP.
Brookdale separately announced that the amended triple-net master lease arrangement is expected to increase its near- and long-term cash flows significantly. The Ventas lease amendment is expected to improve the senior living communities operator’s 2025 cash flows by more than $15M.
