LOUISVILLE, Ky. (Feb. 12, 2014) — Kindred Healthcare announced that its subsidiaries have completed the previously announced acquisition of real estate associated with two nursing centers that it currently leases from HCP Inc. and its affiliates for approximately $22 million.
Kindred previously announced that it had acquired the real estate associated with seven nursing centers that it had leased from HCP for approximately $61 million.
The annual lease payments for the nine nursing centers were approximately $9 million. Kindred anticipates that the transactions with HCP will be slightly accretive to earnings and cash flow in 2014.
“We are pleased to complete this transaction with HCP, which will improve our capital structure as we move toward the growth phase of our strategic plan,” said Paul J. Diaz, CEO of Kindred. “Owning these facilities improves our financial position but also gives us more flexibility with regard to strategic operating decisions and Integrated Care Market opportunities.”