Brookdale Declines To Renew 120-community Master Lease With Ventas

BRENTWOOD, Tenn. — Brookdale Senior Living, the largest seniors housing operator in the United States, has declined to exercise its right to renew an existing master lease with real estate investment trust Ventas. 

Covering 120 seniors housing communities, the lease will remain effective through its current term, which ends Dec. 31, 2025. Annual cash rent under the master lease will total $113.6 million in 2025. 

According to a press release issued by Brookdale, the decision was informed by the fact that the portfolio has “historically generated significant negative cash flows.” Additionally, Brookdale has announced that it is open to continuing discussions with Ventas prior to the maturity of the master lease in the event that the two companies could arrive at mutually agreeable terms that would generate cash flow improvements for Brookdale. 

Ventas currently plans to convert some of the seniors housing communities covered by the master lease to the company’s senior housing operating portfolio (SHOP) structure upon the lease’s expiration.

Ventas may also sell, lease or take other actions with a portion of the portfolio. 

As of June 1, Brookdale Senior Living operated 53,812 units across 641 properties nationally, according to the American Seniors Housing Association (ASHA). 

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