Brookdale Senior Living (BKD) and Ventas (VTR) said Thursday they have amended their master lease agreements.

Under the amended agreement, Brookdale's lease on 65 communities has been extended through 2035 at an initial annual rent of $64 million starting in 2026, with a 3% annual escalator, Brookdale said.

Ventas will transition 44 communities to its senior housing operating portfolio beginning September 2025, aiming to enhance occupancy and net operating income through active asset management, Ventas said.

Ventas plans to invest $35 million in capital improvements for the leased properties, starting in 2025, the companies said. Eleven remaining properties will be sold in 2025, with Ventas retaining sale proceeds, Ventas said.

Brookdale said it expects the lease amendments to boost its 2025 cash flows by over $15 million.

Brookdale shares rose more than 2% in early trading while VTR shares were edging 0.8% higher.

Price: 5.07, Change: +0.14, Percent Change: +2.74