Ventas Inc. and Kindred Healthcare Inc. entered into agreements for 36 skilled nursing facilities (SNFs) that Ventas owns and Kindred operates.

According to the agreements, Kindred can buy some or all of the SNFs for $700 million (or a pro rata portion of that sum) on or before Oct. 31, 2018. Any SNFs that Kindred doesn’t buy by April 30, 2018, will be renewed until 2025 at the current rent level.

Kindred is buying the facilities as part of its plan to exit the SNF business segment by the end of next year. The company intends to resell the facilities.

The agreements also extend the lease term on eight long-term acute care hospitals that Ventas owns and Kindred operates. The leases, which were up for renewal in 2018 and 2020, have been extended to 2025 at the current rent level.

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