Kindred logoShares of Louisville-based hospital and nursing home operator Kindred Healthcare rose sharply Monday morning after the company announced a $700 million deal to buy and then sell 36 skilled nursing facilities.

The company had said last week that it was no longer interested in running such facilities. It announced the news at the same time that it reported a $685 million third-quarter loss, which sent shares tumbling.

Kindred said in a press release Monday that it had reached an agreement to acquire from Ventas Inc. 36 skilled nursing facilities for $700 million. Kindred is leasing the facilities from Ventas and plans to sell them by Oct. 31, 2018. Ventas said the facilities, which include 4,363 licensed beds, are generating annual cash rent of $49 million and that Ventas has to consent to any sale or transfer of operations.

Shares of Kindred jumped about 7 percent on the news, while shares of Ventas gained 3.3 percent. The S.&P. 500 was down about 0.3 percent.

Ventas, a Chicago-based real estate investment trust, owns nearly 1,300 senior housing and health care properties in the United States, Canada and the United Kingdom.

Ben-Breier-Kindred-Healthcare.jpg&q=40&maxw=600&maxh=600

Benjamin A. Breier

Kindred CEO Benjamin A. Breier said in the release that the agreement would allow the company to get out of the skilled nursing facility business more quickly.

“While the timing of our exit from the skilled nursing facility business depends on a number of factors, we are targeting completion of the exit prior to the end of 2017,” Breier said.

The company previously had said that it expected the move would save it about $200 million annually, including about $90 million on rent obligations.

Last week, Kindred said that of its four divisions, only the hospital and nursing center units reported declining profitability, in part because of higher labor costs.

Kindred will continue to operate the Ventas facilities as it looks for new buyers or operators.

Beyond the Ventas properties, Kindred owns or leases 51 other nursing centers, with a combined 6,700 beds, and seven assisted living facilities, with a combined 380 beds.

Shares traded for around $7 at noon, up about 7 percent. Still, since the third-quarter announcement, shares were down about 20 percent.